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Closures, tanking oil and uncertainty bombard Alaska's economy – Alaska Public Media News

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Passengers walk a downtown Juneau dock where three cruise ships are tied up June 11, 2017. (Photo by Ed Schoenfeld/CoastAlaska News)

As coronavirus spreads around the world, economic uncertainty is ramping up. Alaska is particularly vulnerable. The state’s economy relies heavily on oil exports and the tourism industry, and both are taking big hits right now.

Thousands of people are out of work this week. And, even if the spread of the virus slows, the summer tourism industry could be in big trouble.

This is the time of year when Alaskans start gearing up for the summer. It is a busy time. And normally, there are a lot of jobs. But this year is different.

“You know, I’m in a really good position with my jobs at this point in time, with what’s currently being affected,” said Colton Welch, sarcastically.

Welch lives in Juneau and works for a company that offers guided hikes and whale watching tours. He makes most of his income in the summer. In the off-season, Welch works as a substitute teacher. That job is on hold right now, because public schools across the state are closed.

Welch says he’s not worried about losing his tourism job. But, he is concerned about the possibility of having an abbreviated season because of disruptions in the cruise industry. And he’s worried about all of the other people who typically come to Alaska for work in the summer.

“Southeast Alaska has this wonderful quality where the people who are really enchanted by it seem to try to make it work,” said Welch. “But I could see some people who really, without any other option…at least in my neck of the woods, I could see that being very problematic.”

State economists say Alaska’s economy will be disrupted by the coronavirus, even if it doesn’t spread here in the same way it has in other states.

“Alaska’s economy is immensely dependent on tourism,” said Mouhcine Guettabi, an economist with the University of Alaska’s Institute of Social and Economic Research. “Therefore we can very realistically expect a non-negligible negative effect on the economy over the next few months.”

Alaska’s economy also relies heavily on the oil industry. And right now, prices are really low. That’s because of tensions between Russia and Saudi Arabia, and low demand as the world tries to fight the spread of the coronavirus. Still, Guettabi says he doesn’t expect to see major job loss in the industry right now. It will depend, he says, on how long prices stay low, and what kind of stimulus packages are implemented.

Guettabi works with another economist, Kevin Berry. Berry studies how people respond to environmental risk. And, he says, the risk of getting sick tends to keep people at home.

“One of the issues is that if there are a lot of people staying home this year, we don’t just get to push trips and activity into the fall, we kind of just miss this season,” said Berry. “Because people are not going to postpone a trip from say, June, and come instead in October or November. They’re just going to not come this year. So the tourism industry is very vulnerable to these sort of behavioral responses where people want to avoid getting sick.”

This very real worry for the future comes as steps to keep people separated and slow the spread of coronavirus are disrupting the economy now.

This week, thousands of employees were laid off as restaurants, bars and breweries across the state were told to end dine-in service. The state mandate also closed entertainment facilities including theaters, gyms and fitness centers, bowling alleys and bingo halls. The order lasts until April 1.

Berry says these policies will cost Alaskans a lot of money. But, he says, doing nothing would cost a lot more.

“We have to always keep in mind the opportunity cost,” said Berry. “Where not closing businesses, not closing schools, not discouraging travel and not sort of discouraging the tourism season could potentially lead to a much larger outbreak, an overwhelming of the healthcare system, and a lot worse consequences.”

Both economists say businesses and employees are going to need help.

“So that this short run, sort of black swan event doesn’t cause a lot of profitable, otherwise healthy businesses to end,” said Berry. “And you can think of similar issues for individuals too. How many waiters, waitresses, cooks and other people who work hourly jobs who are about to see their jobs shut down for a month could potentially end up homeless because of this?”

Both the state and federal governments are looking for ways to help Americans financially.

On Tuesday, Governor Mike Dunleavy announced the creation of an economic stabilization team. The group is tasked with mitigating the impacts of the coronavirus on the state’s economy.

The legislature is also considering different options for helping communities impacted financially.

On Wednesday, the federal government took one step to help mitigate the financial burden of the pandemic. President Trump signed the Families First Coronavirus Response Act into law.

Guettabi says federal action is important, because Alaska doesn’t have a lot of money. He says the state could end up making a big withdrawal from the permanent fund.

Guettabi says leaders need to act quickly.

“There needs to be coordination between the public health response and the potential fiscal response both at the federal, state and local levels,” said Guettabi. “To try to help these businesses, try to help these hourly employees, make sure they’re not being left behind.”

Beyond the tourism industry and business closures, Geuttabi says there are other realms of the economy that are either not doing well already, or could take a hit.

“If we’re looking at a multi-month or year-long recession that could have very significant consequences on the markets in which Alaska sells its resources,” said Geuttabi, referring to resources like fish, another important source of summer jobs and revenue in Alaska.

“And then you couple that with the significant shock that oil has undergone. And Alaska’s economy is being hit from multiple directions,” said Geuttabi. “Tourism, fisheries, oil, through the tension between Russia and Saudi Arabia.”

Plus, Geuttabi says, big declines in the stock market are impacting the permanent fund.

“It’s a precarious time,” said Geuttabi.

How the state emerges will depend on a lot of different factors. But according to Berry, the first step to getting back to normal is happening right now, as leaders invest in fighting the virus and slowing its spread.

Next, he says, it’s important to prevent short-run policies from having long-run negative impacts.

And finally, stimulate the economy and get back to normal as soon as possible.

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Economy

Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Economy

Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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