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Coronavirus just beginning to hurt Canadian economy

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Business, retail and tourism experts say the new coronavirus has begun to hurt businesses in Canada but its full effects will be evident in the coming months.

Canadian companies that rely on China for processing small components, for raw materials or for tourist dollars will all feel the effects of the virus called COVID-19.

Rocco Rossi, president and CEO of the Ontario Chamber of Commerce, said in a statement on Tuesday that certain sectors, such as manufacturing and airlines, will be hardest hit.

“The outbreak of the coronavirus (COVID-19) has so far had a minimal effect on both the Canadian and Ontario economies. However, given the length of supply chain cycles, we may not see the full impact of the disruption for some months,” Rossi said.

Jim Danahy, CEO of CustomerLAB, a retail consulting firm in Toronto, said the effects will be worse than those of SARS in 2003 because Chinese manufacturing has quadrupled since then.

‘Without it, you just have a bunch of scraps’

Global supply chains mean Canadian products with components made in China may not make it to store shelves, he said.

“What I see happening to Canadian businesses is that they are depending on buying ingredients and raw materials from China, or having their raw materials put together, or in some cases sewn together in China, where maybe very small components in a process come from China, or are processed in China, but without it, you just have a bunch of scraps,” Danahy said.

“You don’t have a finished product and you can’t sell them. You know, a zipper, a button, a logo flash, one ingredient in a food product, these are the kinds of things that will prevent Canadian businesses from selling their own products,” he added.

In cases where Canada sells raw materials to China, China processes the raw materials and then sells finished goods back to Canada, business has also slowed. The coronavirus has shut down factories in China, he said.

“It’s going to be a double-whammy whose impact will be measured at least in months, maybe longer,” Danahy said.

Global supply chain more complex now than during SARS

Danahy said China’s economy is second largest in the world and it’s four times larger now than it was during the SARS crisis. “It is both buying and selling goods,” he said.

“We are seeing a more much complex global supply chain,” he said.

For example, Roger Gingerich, a fashion broker for Maholi Inc., a Canadian company that makes luxury bedding and outerwear, said Maholi down jackets are sewn in Toronto but cannot make it into stores to be sold because each jacket has a branding label that comes from China. That label, a small metal piece, is manufactured in China and appears on the sleeve.

 

‘And right now, our entire production floor, we are awaiting, a simple label … We can’t go any further until this label comes back in,’ Roger Gingerich says. (Lorenda Reddekopp/CBC)

 

“And right now, our entire production floor, we are awaiting a simple label … We can’t go any further until this label comes back in,” he said.

Marion Joppe, a University of Guelph professor in the school of hospitality, food and tourism management, said the coronavirus will hit the Canadian tourism market hard because Canada receives thousands of Chinese visitors every year.

“We get about 700,000 Chinese visitors a year. Of course, Toronto is one of the primary destinations and so is Niagara Falls,” she said.

Joppe said Norman Bethune house in Gravenhurst, Ont. is another important destination. The national historic site is run by Parks Canada. According to the Canadian Encyclopedia, Norman Bethune was a surgeon, inventor and political activist and he is considered a hero in China.

“I’m sure they are not seeing anyone coming by these days,” she said.

 

Marion Joppe, a University of Guelph professor, says the coronavirus will hit the Canadian tourism market hard because Canada receives thousands of Chinese visitors every year. (Karen Whylie)

 

China has imposed severe travel restrictions on its citizens, and the Canadian government has warned citizens to avoid all non-essential travel to China and to avoid all travel to Hubei province, the centre of the outbreak.

Group tours from China have been cancelled and Chinese-Canadians are also not going to China for family visits, Joppe added.

Air Canada, meanwhile, has extended its suspension of flights between Canada and Beijing and Shanghai until March 27. Services to Beijing and Shanghai were suspended in February.

‘Losses could easily double those of 2003’

In an article for The Conversation, an independent source of news from the academic community, Joppe writes: “Depending on how long the restrictions and warnings are in place, losses could easily double those of 2003. The pain will be felt in every industry as tourism’s supply chain involves everything from agriculture and fishing to banking and insurance.

“The hardest hit will be its core industries of accommodation, food and beverage services, recreation and entertainment, transportation and travel services.”

China has locked down several cities in Hubei province where the outbreak hit hardest, halting nearly all transportation and movement except for the quarantine efforts, medical care and delivery of food and basic necessities.

China also may postpone its biggest political meeting of the year, the annual Communisit Party congress due to start in March, to avoid having people travel to Beijing while the virus is still spreading.

One of the automotive industry’s biggest events, China’s biannual auto show, was postponed, and many sports and entertainment events have been delayed or cancelled.
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Eby wants all-party probe into B.C. vote count errors as election boss blames weather

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Premier David Eby is proposing an all-party committee investigate mistakes made during the British Columbia election vote tally, including an uncounted ballot box and unreported votes in three-quarters of the province’s 93 ridings.

The proposal comes after B.C.’s chief electoral officer blamed extreme weather, long working hours and a new voting system for human errors behind the mistakes in last month’s count, though none were large enough to change the initial results.

Anton Boegman says the agency is already investigating the mistakes to “identify key lessons learned” to improve training, change processes or make recommendations for legislative change.

He says the uncounted ballot box containing about 861 votes in Prince George-Mackenzie was never lost, and was always securely in the custody of election officials.

Boegman says a failure in five districts to properly report a small number of out-of-district votes, meanwhile, rippled through to the counts in 69 ridings.

Eby says the NDP will propose that a committee examine the systems used and steps taken by Elections BC, then recommend improvements in future elections.

“I look forward to working with all MLAs to uphold our shared commitment to free and fair elections, the foundation of our democracy,” he said in a statement Tuesday, after a news conference by Boegman.

Boegman said if an independent review does occur, “Elections BC will, of course, fully participate in that process.”

He said the mistakes came to light when a “discrepancy” of 14 votes was noticed in the riding of Surrey-Guildford, spurring a review that increased the number of unreported votes there to 28.

Surrey-Guildford was the closest race in the election and the NDP victory there gave Eby a one-seat majority. The discovery reduced the NDP’s victory margin from 27 to 21, pending the outcome of a judicial review that was previously triggered because the race was so close.

The mistakes in Surrey-Guildford resulted in a provincewide audit that found the other errors, Boegman said.

“These mistakes were a result of human error. Our elections rely on the work of over 17,000 election officials from communities across the province,” he said.

“Election officials were working 14 hours or more on voting days and on final voting day in particular faced extremely challenging weather conditions in many parts of the province.

“These conditions likely contributed to these mistakes,” he said.

B.C.’s “vote anywhere” model also played a role in the errors, said Boegman, who said he had issued an order to correct the results in the affected ridings.

Boegman said the uncounted Prince George-Mackenzie ballot box was used on the first day of advance voting. Election officials later discovered a vote hadn’t been tabulated, so they retabulated the ballots but mistakenly omitted the box of first-day votes, only including ballots from the second day.

Boegman said the issues discovered in the provincewide audit will be “fully documented” in his report to the legislature on the provincial election, the first held using electronic tabulators.

He said he was confident election officials found all “anomalies.”

B.C. Conservative Party Leader John Rustad had said on Monday that the errors were “an unprecedented failure by the very institution responsible for ensuring the fairness and accuracy of our elections.”

Rustad said he was not disputing the outcomes as judicial recounts continue, but said “it’s clear that mistakes like these severely undermine public trust in our electoral process.”

Rustad called for an “independent review” to make sure the errors never happen again.

Boegman, who said the election required fewer than half the number of workers under the old paper-based system, said results for the election would be returned in 90 of the province’s 93 ridings on Tuesday.

Full judicial recounts will be held in Surrey-Guildford and Kelowna-Centre, while a partial recount of the uncounted box will take place in Prince George-Mackenzie.

Boegman said out-of-district voting had been a part of B.C.’s elections for many decades, and explained how thousands of voters utilized the province’s vote-by-phone system, calling it a “very secure model” for people with disabilities.

“I think this is a unique and very important part of our elections, providing accessibility to British Columbians,” he said. “They have unparalleled access to the ballot box that is not found in other jurisdictions in Canada.”

This report by The Canadian Press was first published Nov. 5, 2024.



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Memorial set for Sunday in Winnipeg for judge, senator, TRC chair Murray Sinclair

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WINNIPEG – A public memorial honouring former judge, senator and chair of the Truth and Reconciliation Commission into residential schools, Murray Sinclair, is set to take place in Winnipeg on Sunday.

The event, which is being organized by the federal and Manitoba governments, will be at Canada Life Centre, home of the NHL’s Winnipeg Jets.

Sinclair died Monday in a Winnipeg hospital at the age of 73.

A teepee and a sacred fire were set up outside the Manitoba legislature for people to pay their respects hours after news of his death became public. The province has said it will remain open to the public until Sinclair’s funeral.

Sinclair’s family continues to invite people to visit the sacred fire and offer tobacco.

The family thanked the public for sharing words of love and support as tributes poured in this week.

“The significance of Mazina Giizhik’s (the One Who Speaks of Pictures in the Sky) impact and reach cannot be overstated,” the family said in a statement on Tuesday, noting Sinclair’s traditional Anishinaabe name.

“He touched many lives and impacted thousands of people.”

They encourage the public to celebrate his life and journey home.

A visitation for extended family, friends and community is also scheduled to take place Wednesday morning.

Leaders from across Canada shared their memories of Sinclair.

Premier Wab Kinew called Sinclair one of the key architects of the era of reconciliation.

Prime Minister Justin Trudeau said Sinclair was a teacher, a guide and a friend who helped the country navigate tough realities.

Sinclair was the first Indigenous judge in Manitoba — the second in Canada.

He served as co-chair of the Aboriginal Justice Inquiry of Manitoba to examine whether the justice system was failing Indigenous people after the murder of Helen Betty Osborne and the police shooting death of First Nations leader J.J. Harper.

In leading the Truth and Reconciliation Commission, he participated in hundreds of hearings across Canada and heard testimony from thousands of residential school survivors.

The commissioners released their widely influential final report in 2015, which described what took place at the institutions as cultural genocide and included 94 calls to action.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.



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House of Commons committee looks to recall Tom Clark about New York City condo

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OTTAWA – Members of Parliament studying the federal government’s decision to buy a $9-million luxury condo in Manhattan are preparing to recall Canada’s consul general in New York to answer more questions about his involvement in the purchase.

The Conservatives put forward a motion on Tuesday to have Tom Clark return to the House operations committee. The move was supported by other opposition parties after new information emerged that contradicted his previous testimony.

Clark told the committee in September he had no role whatsoever in the purchase of the new condo, or the sale of the previous residence.

But reporting from Politico on Tuesday indicated Clark raised concerns about the old unit two months after he was appointed to his role as Canada’s representative in New York.

Politico cited documents obtained through access-to-information, which were then shared with other media by the Conservative party.

A May 2023 report from Global Affairs Canada indicates Clark informed government officials the residence needed to be replaced.

“The current (consul general in New York, head of mission) expressed concerns regarding the completion of the … kitchen and refurbishment project and indicated the unit was not suitable to be the (consul general’s) accommodations,” the report reads.

“It does not have an ideal floor plan for (consul general in New York) representational activities.”

The final call on whether Clark will face further questions has not been made, however, because the committee adjourned before the motion went to a vote. The committee’s next meeting is next week.

Tuesday’s meeting featured Foreign Affairs Minister Mélanie Joly as a witness, and she faced questions about Clark’s involvement in the purchase.

“This was not a political decision because this was an operational decision,” Joly told the committee in a testy exchange with Conservative MP Michael Barrett.

“(The committee) had numerous people, officials of mine, that came to see you and said that. So, these are the facts.”

Joly later told the committee she only learned of the decision to purchase a new residence through media reports, even though her chief of staff was notified weeks earlier.

“The department informed my chief of staff once the decision was taken. Because, of course, it was not a political decision,” Joly said.

Shortly before Joly was excused, Conservative MP Stephanie Kusie put forward the motion to recall Clark for two more hours to answer more questions.

Bloc MP Julie Vignola proposed instead to have him testify for only one hour — indicating she would support the motion with that change.

“One hour is more than enough to know whether he lied to us,” Vignola told her colleagues in French.

NDP MP Taylor Bachrach also said he would support the move, given the contrast between the new report and Clark’s testimony about whether he spoke to anyone about a desire to move into a new residence.

“What really irks me is the consul general was so clear in response to repeated questioning at committee,” Bachrach said.

“Mr. Clark said, ‘Never.’ One-word answer, ‘Never.’ You can’t get more unequivocal than that.”

The Liberal government has argued that buying the new residence will save Canadians taxpayers millions of dollars and reduce ongoing maintenance costs and property taxes while supporting future program needs for the consul general.

The former official residence is listed for sale at $13 million, but has yet to be sold.

In her remarks Tuesday, Joly told the committee other like-minded countries have paid more for their Manhattan residences than Canada has — including $11 million for the U.K., and France’s $19 million purchase in 2015.

Joly said among the countries that have residences in New York, only Afghanistan and Bangladesh were not located in Manhattan.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.



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