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Deliveroo and Just Eat deals show politics rules trustbuster – Financial Times

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You can take the man out of politics, but you can’t take politics out of the man. Two big Competition and Markets Authority decisions of the past week — first to wave through Amazon’s investment in Deliveroo and then Takeaway.com’s takeover of Just Eat — have CMA chair and ex-MP Andrew Tyrie’s fingerprints all over them.

Both were controversial cases for the trust buster to take on. Under previous iterations of the competition watchdog, the deals would probably never have been called in.

The CMA’s recently-found desire to be the biggest, baddest regulator in the fightback against the dominance and spread of big tech was no doubt the main reason why Deliveroo’s funding round got stuck in a year-long regulatory review process. The grounds for blocking it looked flimsy. Would Amazon, which stopped delivering takeaways in 2018, have a sudden change of heart if its deal with Deliveroo was blocked and launch a fierce new competitor? Could Deliveroo, with its sideline in corner shop grocery deliveries, constitute a potential competitor to Amazon Fresh? Really?

But once the CMA had made that case for calling in Deliveroo, it was hard-pressed to waive through the Just Eat takeover, a same-sector deal where the acquirer, Takeaway.com, had also recently quit the market.

Andrew Tyrie, CMA Chair and former Conservative MP © PA Archive/PA Images

Covid-19 gets the CMA off the hook. Phew. It would be a bold but deaf regulator that made trouble for the businesses that have enabled restaurants to keep cooking and home-cooks in lockdown to take a night off. Easy to get dewy-eyed and dub them essential to keeping the home fires burning. By giving the Deliveroo deal the (provisional) green light on the grounds that it would fold if not, the watchdog avoided being spatchcocked on the merits of its arguments. And once Deliveroo’s deal was through, it was hard to hold out on Takeaway’s Just Eat tie-up.

In clearing both, the CMA proves to the government that it will not make political problems over points of principle. That does not mean there are not problems with the Deliveroo decision fudge, though.

The CMA has previously been loath to approve deals on the grounds of the “failing firm” defence used by Deliveroo. Plenty of companies laid low by Covid-19 will argue that if Deliveroo clears that hurdle, they should be allowed to tie-up with rivals too. The CMA can’t let them win that argument and keep its tough guy image. The watchdog must balance its political heart with its legal brain if it is to be credible and consistent. Here, the heart has ruled the head.

De Beers draws warmth from Anglo

The diamond industry is on ice, from beginning to middle to end. The market for diamonds — also known as “ice” because their dazzle is cold and they draw heat from warm objects — has been hit hard by coronavirus. De Beers, which with Alrosa of Russia unearths more than two-thirds of the world’s sparklers, has certainly drawn heat from its owner, Anglo American. On Thursday, it lowered production guidance for the year by a fifth.

Last month De Beers canned its regular sale of diamonds in Botswana because buyers from Israel, India and China could not travel. It is unlikely travel will unfreeze in time for the next auction in a month or so.

The market is suffering from top to bottom. Consumers and merchants from Antwerp to China are in lockdown or emerging from it. So too are the cutters in India, who buff up about 90 per cent of all mined gems. Most producers, whether in Southern Africa or Canada, have been forced to put mines on care and maintenance. The longer the lockdowns last, the harder and more expensive it will be for them to ramp production back up.

The market was already fragile. Supply has been abundant. Post-millennial generations are not wedded to solitaires in the way their elders were. Credit-squeezed diamantaires have been working through their inventories rather than buying new stock.

Big miners such as De Beers have put brakes on production. Nonetheless, prices had fallen a fifth over a year even before Covid-19 hit. Signs of improvement in late 2019 evaporated in March. Alrosa said last week that average prices of its rocks fell 17 per cent quarter on quarter.

Alrosa and De Beers can further cut supply to protect prices and weather the cold. Smaller miners with weak balance sheets — notably heavily indebted Petra, which bought its mines Cullinan and Finch from De Beers a dozen years ago — can’t.

Petra complained this month that cheapskates offered silly prices at its latest auction. Overall rough diamond prices offered were down 27 per cent on the previous sale. It planned to withdraw stones to be sold privately or later. However, £500m-plus in debt robs the group of options. In better times, it and rivals would be mopped up in a wave of consolidation. That is unlikely until lockdown lifts and the market thaws.

CMA: cat.rutterpooley@ft.com
Diamonds: kate.burgess@ft.com

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‘Disgraceful:’ N.S. Tory leader slams school’s request that military remove uniform

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HALIFAX – Nova Scotia Premier Tim Houston says it’s “disgraceful and demeaning” that a Halifax-area school would request that service members not wear military uniforms to its Remembrance Day ceremony.

Houston’s comments were part of a chorus of criticism levelled at the school — Sackville Heights Elementary — whose administration decided to back away from the plan after the outcry.

A November newsletter from the school in Middle Sackville, N.S., invited Armed Forces members to attend its ceremony but asked that all attendees arrive in civilian attire to “maintain a welcoming environment for all.”

Houston, who is currently running for re-election, accused the school’s leaders of “disgracing themselves while demeaning the people who protect our country” in a post on the social media platform X Thursday night.

“If the people behind this decision had a shred of the courage that our veterans have, this cowardly and insulting idea would have been rejected immediately,” Houston’s post read. There were also several calls for resignations within the school’s administration attached to Houston’s post.

In an email to families Thursday night, the school’s principal, Rachael Webster, apologized and welcomed military family members to attend “in the attire that makes them most comfortable.”

“I recognize this request has caused harm and I am deeply sorry,” Webster’s email read, adding later that the school has the “utmost respect for what the uniform represents.”

Webster said the initial request was out of concern for some students who come from countries experiencing conflict and who she said expressed discomfort with images of war, including military uniforms.

Her email said any students who have concerns about seeing Armed Forces members in uniform can be accommodated in a way that makes them feel safe, but she provided no further details in the message.

Webster did not immediately respond to a request for comment.

At a news conference Friday, Houston said he’s glad the initial request was reversed but said he is still concerned.

“I can’t actually fathom how a decision like that was made,” Houston told reporters Friday, adding that he grew up moving between military bases around the country while his father was in the Armed Forces.

“My story of growing up in a military family is not unique in our province. The tradition of service is something so many of us share,” he said.

“Saying ‘lest we forget’ is a solemn promise to the fallen. It’s our commitment to those that continue to serve and our commitment that we will pass on our respects to the next generation.”

Liberal Leader Zach Churchill also said he’s happy with the school’s decision to allow uniformed Armed Forces members to attend the ceremony, but he said he didn’t think it was fair to question the intentions of those behind the original decision.

“We need to have them (uniforms) on display at Remembrance Day,” he said. “Not only are we celebrating (veterans) … we’re also commemorating our dead who gave the greatest sacrifice for our country and for the freedoms we have.”

NDP Leader Claudia Chender said that while Remembrance Day is an important occasion to honour veterans and current service members’ sacrifices, she said she hopes Houston wasn’t taking advantage of the decision to “play politics with this solemn occasion for his own political gain.”

“I hope Tim Houston reached out to the principal of the school before making a public statement,” she said in a statement.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Saskatchewan NDP’s Beck holds first caucus meeting after election, outlines plans

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REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.

Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.

She says her priorities will be health care and cost-of-living issues.

Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.

Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.

The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia election: Liberals say province’s immigration levels are too high

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HALIFAX – Nova Scotia‘s growing population was the subject of debate on Day 12 of the provincial election campaign, with Liberal Leader Zach Churchill arguing immigration levels must be reduced until the province can provide enough housing and health-care services.

Churchill said Thursday a plan by the incumbent Progressive Conservatives to double the province’s population to two million people by the year 2060 is unrealistic and unsustainable.

“That’s a big leap and it’s making life harder for people who live here, (including ) young people looking for a place to live and seniors looking to downsize,” he told a news conference at his campaign headquarters in Halifax.

Anticipating that his call for less immigration might provoke protests from the immigrant community, Churchill was careful to note that he is among the third generation of a family that moved to Nova Scotia from Lebanon.

“I know the value of immigration, the importance of it to our province. We have been built on the backs of an immigrant population. But we just need to do it in a responsible way.”

The Liberal leader said Tim Houston’s Tories, who are seeking a second term in office, have made a mistake by exceeding immigration targets set by the province’s Department of Labour and Immigration. Churchill said a Liberal government would abide by the department’s targets.

In the most recent fiscal year, the government welcomed almost 12,000 immigrants through its nominee program, exceeding the department’s limit by more than 4,000, he said. The numbers aren’t huge, but the increase won’t help ease the province’s shortages in housing and doctors, and the increased strain on its infrastructure, including roads, schools and cellphone networks, Churchill said.

“(The Immigration Department) has done the hard work on this,” he said. “They know where the labour gaps are, and they know what growth is sustainable.”

In response, Houston said his commitment to double the population was a “stretch goal.” And he said the province had long struggled with a declining population before that trend was recently reversed.

“The only immigration that can come into this province at this time is if they are a skilled trade worker or a health-care worker,” Houston said. “The population has grown by two per cent a year, actually quite similar growth to what we experienced under the Liberal government before us.”

Still, Houston said he’s heard Nova Scotians’ concerns about population growth, and he then pivoted to criticize Prime Minister Justin Trudeau for trying to send 6,000 asylum seekers to Nova Scotia, an assertion the federal government has denied.

Churchill said Houston’s claim about asylum seekers was shameful.

“It’s smoke and mirrors,” the Liberal leader said. “He is overshooting his own department’s numbers for sustainable population growth and yet he is trying to blame this on asylum seekers … who aren’t even here.”

In September, federal Immigration Minister Marc Miller said there is no plan to send any asylum seekers to the province without compensation or the consent of the premier. He said the 6,000 number was an “aspirational” figure based on models that reflect each province’s population.

In Halifax, NDP Leader Claudia Chender said it’s clear Nova Scotia needs more doctors, nurses and skilled trades people.

“Immigration has been and always will be a part of the Nova Scotia story, but we need to build as we grow,” Chender said. “This is why we have been pushing the Houston government to build more affordable housing.”

Chender was in a Halifax cafe on Thursday when she promised her party would remove the province’s portion of the harmonized sales tax from all grocery, cellphone and internet bills if elected to govern on Nov. 26. The tax would also be removed from the sale and installation of heat pumps.

“Our focus is on helping people to afford their lives,” Chender told reporters. “We know there are certain things that you can’t live without: food, internet and a phone …. So we know this will have the single biggest impact.”

The party estimates the measure would save the average Nova Scotia family about $1,300 a year.

“That’s a lot more than a one or two per cent HST cut,” Chender said, referring to the Progressive Conservative pledge to reduce the tax by one percentage point and the Liberal promise to trim it by two percentage points.

Elsewhere on the campaign trail, Houston announced that a Progressive Conservative government would make parking free at all Nova Scotia hospitals and health-care centres. The promise was also made by the Liberals in their election platform released Monday.

“Free parking may not seem like a big deal to some, but … the parking, especially for people working at the facilities, can add up to hundreds of dollars,” the premier told a news conference at his campaign headquarters in Halifax.

This report by The Canadian Press was first published Nov. 7, 2024.

— With files from Keith Doucette in Halifax

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