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Cost of flights to remote communities make groceries unaffordable

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ST. JOHN’S, N.L. –

Two Inuit leaders in Labrador are calling on the Newfoundland and Labrador government to chip in for flights to their fly-in communities as the province becomes the latest to support leisure travel to and from international destinations.

Johannes Lampe, president of the Inuit Nunatsiavut government, and Barry Andersen, the AngajukKak – or mayor – of Makkovik, N.L., say the staggering cost of flights to their communities make the cost of groceries and essential goods out of reach for many.

In Nain, where Lampe lives, a pound of butter at the local store was nearly $10 in May; a two-litre jug of whole milk cost $9.50; a litre of coffee cream was $12.89; and a large pack of laundry detergent pods cost nearly $90.

If the province can support WestJet flights between St. John’s and Europe, it has “a responsibility” to improve air access to Indigenous communities in northern Labrador, and help make food and other basic needs more affordable, Lampe said in a recent interview.

“That responsibility must be taken seriously,” he said. “Labrador Inuit are in dire straits.”

The Inuit leaders were reacting to an announcement last month by Premier Andrew Furey, who said his government would support the St. John’s International Airport Authority in a deal with WestJet to provide direct flights between St. John’s and London, England, beginning in May 2024.

John Gradek, an aviation specialist and lecturer at McGill University, says Lampe is making “very valid comments.” Provinces that provide financial backing for non-stop flights to international destinations walk a “fine line,” and they need to be clear about why they’re using taxpayers’ money to serve a highly specific portion of the population, he said in a recent interview.

Neither the province nor the St. John’s International Airport Authority will say what the agreement entails, nor how much money is involved, but the provincial Tourism Department said the funds come from a pot of $3.75 million, “to support the expansion and development of air access.” The more tickets are sold, the less the airport authority will have to pay out, the department said.

Gradek said the airport authority may have promised a minimum number of ticket sales, with government money filling the gap if the minimum isn’t met.

The Manitoba government also pitches in for WestJet flights between Winnipeg and two American cities: Los Angeles and Atlanta. Since August 2022, the province has contributed $9.8 million to a fund supporting the routes, according to an emailed statement from the provincial government.

The fund was set up “to establish direct air service between Manitoba and international markets that offer significant economic opportunity,” the email said.

Meanwhile, WestJet announced in November that it was once again making a profit since the start of the COVID-19 pandemic, with the first three quarters of this year outpacing earnings from 2019. When asked why WestJet needed public money, Andy Gibbons, the company’s vice-president of external affairs, said he could not comment on specific arrangements.

“Communities often work with airlines to bring connectivity to attract investment opportunities and foster economic development,” Gibbons said in an emailed statement.

Return flights between St. John’s and London in May 2024 are going for as little as $602, according to the airline’s website. Return flights between St. John’s and Nain, however, are about $2,500, according to the website for Air Borealis, which offers passenger and cargo flights to the six fly-in communities along Labrador’s northern coast.

Nain is the northernmost such community and the largest town in Nunatsiavut, with a population of about 1,200 people. Andersen lives in Makkovik, which is further south, but still only accessible by plane in the winter, or by ferry in the warmer months.

Just before Christmas, a regular-size turkey at the grocery store was $78 and a pound of ground meat was $11, he said. When food brought in during the summer months by ferry runs out and is replaced by flown-in goods in the winter, the price will rise further.

“Tea bags, sugar, the stuff you need for baking, it gets really, really, really expensive,” Andersen said in a recent interview.

He said he’s been asking the province to introduce a service like Quebec’s Regional Air Access Program, which allows air travel between smaller, remote regions of the province and larger provincial centres for $500 return, with some conditions. But so far, he feels the provincial government isn’t listening.

“I think with a small population, it’s out of sight, out of mind,” he said.

The provincial Department of Labrador Affairs did not provide a comment or an interview.

This report by The Canadian Press was first published Dec. 29, 2023.

 

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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