OTTAWA —
Prime Minister Justin Trudeau says he remains confident in Canada’s vaccine supplies despite threats from Europe that it might impose export controls on vaccines produced on that continent.
Speaking to reporters outside his Ottawa residence Tuesday morning, Trudeau said the situation in Europe is worrisome but he is “very confident” Canada is going to get all the COVID-19 vaccine doses promised by the end of March. And despite the sharp decline in deliveries of a vaccine from Pfizer and BioNTech this month, he said Canada will still vaccinate all Canadians who want shots by the end of September.
“We will continue to work closely with Europe to ensure that we are sourcing, that we are receiving the vaccines that we have signed for, that we are due,” Trudeau said.
European Commission President Ursula von der Leyen said in a video statement posted to Twitter Tuesday that Europe will set up a “vaccine export transparency mechanism” so Europe knows exactly how many doses are being produced in the world’s largest trading bloc and where they are being shipped.
“Europe invested billions to help develop the world`s first COVID-19 vaccines to create a truly global common good,” she said. “And now the companies must deliver.”
Europe is also getting smaller shipments from Pfizer than promised, because the company temporarily slowed production at its plant in Belgium so it can be expanded.
AstraZeneca has also warned Europe its first shipments of vaccine will be smaller than expected because of production problems.
But Europe, which invested more than C$4 billion in vaccine development, is demanding the companies fulfil their contracts on time.
“Europe is determined to contribute to this global common good but it also means business,” said von der Leyen.
International Trade Minister Mary Ng said she had spoken to her European counterpart, Valdis Dombrovskis, about the situation and will keep working with Europe to keep the supply chain open.
“There is not a restriction on the export of vaccines to Canada,” Ng said in question period.
Conservative health critic Michelle Rempel Garner accused Ng of playing games with her response, noting the issue isn’t that there is an export ban now, but that Europe is threatening to impose one.
With all of Canada’s current vaccine doses coming from Europe, “that’s a concern,” Rempel Garner said.
“If the Europeans ban exports of vaccines, what’s Plan B for Canada?” she asked.
Both Pfizer and Moderna are making doses of their vaccine in the U.S. and in Europe, but all U.S.-made doses are currently only shipped within the U.S.
Former U.S. president Donald Trump invoked the Defence Production Act last year to prevent export of personal protection equipment. He then signed an executive order in December demanding U.S.-produced vaccines be prioritized for Americans only and threatened to use the act to halt vaccine exports as well.
President Joe Biden has already invoked the act to push for faster production of PPE and vaccines. Though he has not specifically mentioned exports, Biden has promised 100 million Americans will be vaccinated within his first 100 days of office, making the prospects the U.S. shares any of its vaccine supply unlikely.
Canada has contracts with five other vaccine makers, but only two are on the verge of approval here. AstraZeneca, which has guaranteed Canada 20 million doses, needs to finish a big U.S. trial before Health Canada decides whether to authorize it.
Johnson and Johnson is to report results from its Phase 3 trial next week, one of the final things needed before Health Canada can make a decision about it. Canada is to get 10 million doses from Johnson and Johnson, but it is the one vaccine that so far is administered as only a single dose.
Trudeau said AstraZeneca isn’t supplying Canada from its European production lines. A spokeswoman for Procurement Minister Anita Anand said Canada will not say where the other vaccines are coming from because of the concerns about security of supplies.
AstraZeneca and Johnson and Johnson have set up multiple production lines in the United States, the United Kingdom, Europe, India, Australia and Africa. Canada has no current ability to produce either those vaccines or the ones from Pfizer-BioNTech and Moderna. It is entirely reliant on foreign production at the moment.
More than 113,000 people in Canada have received two full doses of either the Moderna or BioNTech vaccine. Another 752,000 have received a single dose.
But the reduction in Pfizer shipments to Canada forced most provinces to slow the pace of injections. Europe, Mexico, Bahrain and Saudi Arabia also have slowed their vaccination campaigns because of the supply limits.
Trudeau said Pfizer CEO Albert Bourla assured him the full shipments will resume in mid-February, and that Canada will get its contracted four million doses by the end of March. He said he spoke to Moderna CEO Stephane Bancel Tuesday morning and was promised Moderna’s shipments of two million doses by March 31 are also on track.
MPs were scheduled to have an emergency debate on Canada’s vaccine program Tuesday night.
This report by The Canadian Press was first published Jan. 26, 2021
Demands for government intervention in Air Canada labour talks could negatively affect airline competition in Canada, the CEO of travel company Transat AT Inc. said.
“The extension of such an extraordinary intervention to Air Canada would be an undeniable competitive advantage to the detriment of other Canadian airlines,” Annick Guérard told analysts on an earnings conference call on Thursday.
“The time and urgency is now. It is time to restore healthy competition in Canada,” she added.
Air Canada has asked the federal government to be ready to intervene and request arbitration as early as this weekend to avoid disruptions.
Comments on the potential Air Canada pilot strike or lock out came as Transat reported third-quarter financial results.
Guérard recalled Transat’s labour negotiations with its flight attendants earlier this year, which the company said it handled without asking for government intervention.
The airline’s 2,100 flight attendants voted 99 per cent in favour of a strike mandate and twice rejected tentative deals before approving a new collective agreement in late February.
As the collective agreement for Air Transat pilots ends in June next year, Guérard anticipates similar pressure to increase overall wages as seen in Air Canada’s negotiations, but reckons it will come out “as a win, win, win deal.”
“The pilots are preparing on their side, we are preparing on our side and we’re confident that we’re going to come up with a reasonable deal,” she told analysts when asked about the upcoming negotiations.
The parent company of Air Transat reported it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31. The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
It attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.
Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.
The recall has so far grounded six aircraft, Guérard said on the call.
“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”
Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.
“We are currently seeing ongoing pricing pressure extending into the winter season,” she added. Air Transat is not planning on adding additional aircraft next year but anticipates stability.
“(2025) for us will be much more stable than 2024 in terms of fleet movements and operation, and this will definitely have a positive effect on cost and customer satisfaction as well,” the CEO told analysts.
“We are more and more moving away from all the disruption that we had to go through early in 2024,” she added.
This report by The Canadian Press was first published Sept. 12, 2024.
