The federal government declared victory over a massive backlog of passport applications Tuesday as the social development minister announced that 98 per cent of the delayed applications have now been processed.
Most new passport applications were being processed on time by October, but thousands of people who applied before then still faced excessive delays.
Those delays have finally come to an end, Social Development Minister Karina Gould announced Tuesday.
“The backlog is virtually eliminated,” she declared during a press conference at a cabinet retreat with her fellow ministers in Hamilton, Ont.
The pandemic caused a nearly two-year lull in passport applications, but once people began to travel again, the demand for new passports grew dramatically.
That surge led to long lines and longer waits for travel documents.
Some people are just receiving their passports now, despite the fact that they applied as early as the summer, Gould said before delivering an apology to those who had to wait.
The few people who are still waiting could be held up for several reasons, she said. Some applications are more complex because of things like child-custody issues, for example, while others have been flagged for eligibility or integrity reasons.
“Canadians can have confidence that they should be able to get their passport on time, so long as everything is correct with their application,” she said.
To catch up on the backlog, Service Canada doubled the number of employees processing passports since March, and workers racked up thousands of hours of overtime.
The new workers are expected to stay on to help field future spikes in demand, Gould said.
She said she expects a large number of Canadians to apply in the next few years because the first passports issued with a 10-year expiry date will be due for renewal in July.
Service Canada is expected to process as many as 3.5 million passports this fiscal year, she said, which is double the number of passports processed last year. Between three and five million applications are expected to come in each year for the next few years.
The good news, Gould said, is that Service Canada will be better able to handle that level of demand than it was last spring.
Between 80 and 85 per cent of applications last year came from people who had never had a passport before, which meant they were more complicated to process, she said.
“Whereas what we’re anticipating, particularly for this summer, is a higher level of renewals, and those are much simpler to do,” she told reporters.
Though passport offices are running normally again, Gould still encouraged people who plan to travel to check the expiry dates on their passports and get their applications in early to avoid delays.
This report by The Canadian Press was first published Jan. 24, 2023.
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Inflation in Canada: Finance ministers meet
TORONTO – The two big spending pressures on the federal government right now are health care and the global transition to a clean economy, Deputy Prime Minister and Finance Minister Chrystia Freeland said Friday.
After hosting an in-person meeting with the provincial and territorial finance ministers, Freeland said U.S. President Joe Biden’s Inflation Reduction Act, which includes electric-vehicle incentives that favour manufacturers in Canada and Mexico as well as the U.S., has changed the playing field when it comes to the global competition for capital.
“I cannot emphasize too strongly how much I believe that we need to seize the moment and build the clean economy of the 21st century,” Freeland said during a news conference held at the University of Toronto’s Munk School of Global Affairs and Public Policy.
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“This is a huge economic opportunity.”
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Canada needs to invest in the transition in order to potentially have an outsized share in the economy of the future, she said, or it risks being left behind.
This year in particular will be an important year for attracting capital to Canada, she said, calling for the provinces and territories to chip in.
“This is a truly historic, once-in-a-generation economic moment and it will take a team Canada effort to seize it.”
At the same time, Freeland spoke of the need for fiscal restraint amid economic uncertainty.
“We know that one of the most important things the federal government can do to help Canadians today is to be mindful of our responsibility not to pour fuel on the fire of inflation,” she said.
Freeland said these two major spending pressures, which were among the topics prioritized at Friday’s meeting, come at a time of a global economic slowdown which poses restraint on government spending.
Prime Minister Justin Trudeau is set to meet with the premiers Feb. 7 to discuss a long-awaited deal on health-care spending. The provinces have been asking for increases to the health transfer to the tune of billions of dollars.
Freeland said it’s clear that the federal government needs to invest in health care and reiterated the government’s commitment to doing so but would not say whether she thinks the amount the provinces are asking for in increased health transfers is feasible.
“It’s time to see the numbers,” Quebec Finance Minister Eric Girard said Friday afternoon, in anticipation of the Feb. 7 meeting.
The meeting of the finance ministers comes at a tense time for many Canadian consumers, with inflation still running hot and interest rates much higher than they were a year ago.
The ministers also spoke with Bank of Canada governor Tiff Macklem Friday and discussed the economic outlook for Canada and the world, said Freeland.
“We’re very aware of the uncertainty in the global economy right now,” said Freeland. “Inflation is high and interest rates are high.”
“Things are tough for a lot of Canadians and a lot of Canadian families today and at the federal level, this is a time of real fiscal constraint.”
The Bank of Canada raised its key interest rate again last week, bringing it to 4.5 per cent, but signalled it’s taking a pause to let the impact of its aggressive hiking cycle sink in.
The economy is showing signs of slowing, but inflation was still high at 6.3 per cent in December, with food prices in particular remaining elevated year over year.
Interest rates have put a damper on the housing market, sending prices and sales downward for months on end even as the cost of renting went up in 2022.
Meanwhile, the labour market has remained strong, with the unemployment rate nearing record lows in December at five per cent.
This report by The Canadian Press was first published Feb. 3, 2023.
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