With inflation still near its highest level in decades, the federal budget unveiled in Ottawa Tuesday offered a lot of talk about making life more affordable for Canadians — but few details about how it’s all going to work.
One of the biggest items leaked prior to the budget’s release is something the government is calling a “grocery rebate” meant to mitigate the cost of grocery prices that are still rising at an annual rate of more than 10 per cent.
It’s an extended version of the existing GST rebate cheque program, which gives cash payouts to refund GST payments incurred by low-income Canadians.
The government says the rejigged program will put an extra $467 into the pockets of the average family with two kids, and $234 for a single person. Government estimates suggest they think roughly 11 million people will qualify for the program, which is to be doled out via a quarterly cheque or direct deposit.
Strictly speaking, the government isn’t requiring that the money be spent on groceries. But the program’s branding suggests Ottawa hopes it will deliver $2.5 billion in relief where many Canadians need it most — in the checkout aisle.
That’s good news for people like Krystle Kisman, a single mother from Burlington, Ont., for whom putting food on the table has been a major source of stress of late.
“I remember I used to spend $200 every two weeks and I would get double what I’m getting now,” she told CBC News this week. “It’s tough. A lot of times I use my child tax credit towards our food for the month.”
The grocery program is targeted at people like Kisman, who have had to face impossible choices between paying rent and paying for food.
There’s very little else in the budget in the way of direct payments to Canadians to blunt the impact of inflation. But the document is also sprinkled with programs and policy ideas aimed at helping consumers keep a little more of the money they already have.
The beer industry had lobbied hard against a proposed six per cent increase on the excise tax on alcohol, which the government slashed down to just two per cent. (Michelle Both/CBC)
In recent weeks, the beer and alcohol industry has been sounding the alarm about a looming hike to the federal tax on beer, wine and spirits. The so-called excise tax is pegged to inflation, which means it was on track to increase by more than six per cent this weekend — a jump that would have taken the toll to 73 cents on a litre of wine and more than 37 cents for a litre of beer.
Those excise fees are paid by brewers, wine and spirit makers, but the costs filter down for consumers as they add to the cost of doing business, and pushing up retail prices.
The government announced in the budget that it will slash that increase to two per cent for this year, well below the inflation rate.
The budget also aims to rein in some of the more exorbitant costs that some Canadians pay to borrow money. While rates on conventional personal and business loans from major lenders tend to hover between the low single digits for a mortgage to slightly over 10 per cent for other forms of unsecured debt, that’s not true for all types of loans.
That’s why the budget targets what the government calls “predatory lending” by changing loopholes that currently allow some lenders to charge rates as high as 47 per cent per year.
The government says it’s going to amend the Criminal Code to cap those rates at 35 per cent, in line with existing regulations already on the books in Quebec.
The government says it plans to tighten and eliminate some of those loopholes by requiring payday lenders to charge no more than $14 for every $100 borrowed. And says it will consult with the provinces on additional revisions on how to further regulate the payday-lending industry.
Credit card fee reductions
The government also laid out new rules for another source of frustration for small businesses and consumers: credit card fees.
Every time a customer swipes a credit card to pay for a purchase, the vendor pays what’s known as an interchange fee to the credit card company processing the transaction.
In Canada, such fees on some cards can amount to up to three per cent of the purchase price — far higher than they are in jurisdictions where they are capped.
While the budget stops short of imposing such a cap, the government did say it has struck a deal with the major credit companies that will see interchange fees reduced by about 27 per cent for about 90 per cent of the businesses that accept credit cards.
Dan Kelly, president of the Canadian Federation of Independent Business, said the lowering of fees is a good start, but more is needed. “A 27 per cent reduction in small business merchant fees is significant, but more details are needed to determine how many small businesses will benefit from this plan,” he said.
The goverment says it has struck a deal to reduce credit card interchange fees by an average of 27 per cent. (CBC News)
Government estimates suggest the new fee structure will save small businesses $200 million a year, savings that should theoretically filter down to consumers since a court ruling last fall established that merchants are allowed to pass those fees on to consumers directly now.
Credit card fees aren’t the only hidden fee facing scrutiny. Although it offers few details, the government says it wants to crack down on what it calls “junk fees” that get tacked on to goods and services.
The government says it wants to work with the provinces and various regulators to examine things like cellphone roaming charges, ticket fees and excessive baggage fees — just a few examples of the sort of nickel-and-dime fees that annoy consumers.
Travel fees set to increase
But even as the government talks tough about getting rid of hidden fees, it’s actually increasing one that Canadians pay every time they get on a flight.
The Air Travel Security Charge is one of many fees that flyers pay when they buy a plane ticket. The money goes to funding and improving vital airport services like passenger screening and baggage handling.
First implemented in 2002 after the Sept. 11 attacks, the fees have not increased since 2010, when they jumped up by more than 52 per cent to their current level.
The budget has earmarked an extra $1.8 billion to help fix the travel chaos that Canadians have experienced at airports of late, but it will come at a hefty cost for consumers. The Air Travel Security Charge is set to increase by almost 33 per cent next year.
That will bring the added fee on a one-way ticket within Canada to $9.94, on a flight to the U.S. to $16.89, and on a trip overseas to $34.42.
Single mother Krystle Kisman says it has been hard lately to put food on the table for her and her son. The government has beefed up its GST rebate program to target consumers like her for help with their grocery bills. (Nisha Patel/CBC)
Economist Armine Yalnizyan said that, coming from a government claiming to be focused on helping Canadians deal with high inflation, the budget offered little of substance.
“Something is better than nothing,” she said of the grocery rebate program, “but affordability got the short shrift in this budget.”
She said tackling junk fees plays well among voters who can afford to do things like go on vacation and buy concert tickets, but they don’t help with the pain of necessities like food, shelter, and gas.
“They are catering to people who are inconvenienced by problems at the airport and the Taylor Swift crowd and saying ‘we are going to deal with Ticketmaster maybe’ but inconvenience is different than going hungry.”
“You don’t want to worry about inconvenience at a time of basic affordability.”
EDMONTON – The legendary k.d. lang got the band back together at the Canadian Country Music Association awards show.
Lang teamed up with the Reclines for the first time in 35 years to belt out “Big Boned Gal” from their last album together in 1989.
Clad in a blue and green western-style dress, lang strut across the stage in Edmonton to embody the “big boned gal from southern Alberta.”
The awards show saw Alberta’s MacKenzie Porter and Ontario’s Josh Ross take home hardware for being best female and male artists of the year.
Ross also won entertainer of the year and single of the year for “Trouble.”
Ontario artist Jade Eagleson won album of the year for “Do It Anyway.”
The James Barker Band from Woodville, Ont., won fans’ choice and group of the year.
During their acceptance speech, frontman Barker hinted at new music and a possible tour in 2025.
Ross says he and his band play roughly 150 shows every year and are never home, but says taking home entertainer of the year made the hard work worth it.
Porter won for female artist of the year and top video for “Chasing Tornadoes.”
The female artist win ends the five-year streak of Tenille Townes being awarded the coveted hardware.
Porter had been nominated seven times previously for the award in the past decade but hadn’t won until now.
The artist from Medicine Hat, Alta., says it takes a lot of hard work and hustle to succeed as a female in the country music industry and gave a shout out to her fellow singers and her newborn daughter.
Joining the two artists in the winners’ circle was Ontario singer-songwriter Owen Riegling, who won for breakthrough artist of the year.
The show began with American artist and co-host Thomas Rhett being dubbed an honorary Canadian by Edmonton Oilers players Corey Perry and Leon Draisaitl.
Rhett donned an Oilers jersey that was gifted to him by the pair.
This report by The Canadian Press was first published Sept. 14, 2024.
EDMONTON – Ontario country artist Jade Eagleson has won album of the year at the 2024 Canadian Country Music Association Awards in Edmonton.
The singer from Bailieboro, Ont., was up for six awards alongside Alberta’s MacKenzie Porter.
Eagleson took home album of the year for “Do It Anyway” and says he’s thankful to his wife and management team for helping him reach the level he’s at.
The James Barker Band from Woodville, Ont., also won fans’ choice and group of the year at the award show, held in Edmonton.
During their acceptance speech, frontman Barker hinted at new music and a possible tour in 2025.
Another Ontario crooner, Josh Ross, has taken home a trio of awards, receiving entertainer of the year, male artist of the year and single of the year.
He says he and his band play roughly 150 shows every year and are never home, but says taking home entertainer of the year makes the hard work worth it.
Porter took home female artist of the year, ending the five-year streak of Tenille Townes being awarded the coveted hardware.
Porter had been nominated seven times previously for the award in the past decade but hadn’t won until tonight.
The artist from Medicine Hat, Alta., says it takes a lot of hard work and hustle to succeed as a female in the country music industry and gave a shout out to her fellow singers and her newborn daughter.
Joining the two artists in the winners’ circle was Ontario singer-songwriter Owen Riegling, who won for breakthrough artist of the year.
The show began with American artist and co-host Thomas Rhett being dubbed an honorary Canadian by Edmonton Oilers players Corey Perry and Leon Draisaitl.
Rhett donned an Oilers jersey that was gifted to him by the pair.
The return of k.d. lang and the Reclines was expected to be a highlight of the show.
The appearance will mark the first time the Alberta songstress has teamed up with the band in 35 years and is tied to lang’s induction into the Canadian Country Music Hall of Fame.
The awards show is back in Alberta’s capital for the first time since 2014. It was held in Hamilton last year and in Calgary in 2022.
This report by The Canadian Press was first published Sept. 14, 2024.
VANDERHOOF, B.C. – British Columbia Conservatives are promising changes they say will bring more stability to the province’s struggling forest industry.
Leader John Rustad announced his plan for the sector a week before the official launch of the provincial election campaign, saying a Conservative government would do away with stumpage fees paid when timber is harvested and instead put a tax on the final products that are produced.
Rustad said Saturday that under a provincial Conservative government, a small fee may be charged upfront, but the bulk would come at the end of the process, depending on what type of product is created.
He also promised to review how wildfires are managed, as well as streamline the permit process and review what he calls the province’s “uncompetitive cost structure.”
“British Columbia is by far the highest cost producers of any jurisdiction in North America. We need to be able to drive down those costs, so that our forest sector can actually be able to do the reinvestment, to be able to create the jobs and make sure that they’re still there to be able to support our communities,” he said.
The governing New Democrats meanwhile, say eliminating stumpage fees would inflame the softwood lumber dispute with the United States and hurt forestry workers.
In a statement issued by the NDP, Andrew Mercier, the party’s candidate in Langley-Willowbrook, said Rustad failed to support the industry when he was in government under the former BC Liberals.
“Not only will Rustad’s old thinking and recycled ideas fail to deliver, his proposal to eliminate stumpage would inflame the softwood lumber dispute — punishing forestry workers and communities,” Mercier said, accusing Rustad of ignoring the complexity of the challenges facing the industry.
The softwood lumber dispute between the U.S. and Canada stretches back decades. In August, the U.S. Department of Commerce nearly doubled duties on softwood lumber.
International Trade Minister Mary Ng has said Canada has taken steps to launch two legal challenges under the Canada-United States-Mexico Agreement.
Rustad said a provincial Conservative government would push hard to get a deal with the United States over the ongoing dispute “whether it’s with the rest of Canada or by itself.”
He said his party’s proposed changes are in the name of bringing “stability” and “hope” to the industry that has seen multiple closures of mills in rural communities over the last several years.
Most recently, Canfor Corp. decided to shutter two northern British Columbia sawmills earlier this month, leaving hundreds of workers unemployed by the end of the year.
According to the United Steelworkers union, Canfor has closed 10 mills in the province since November 2011, including nine in northern B.C.
Jeff Bromley, chair of the United Steelworkers wood council, said Saturday the idea of changes in favour of taxing the final product has been floated in the past.
He said the finer details of the Conservative plan will be important, but that the system needs to be improved and “new ideas are certainly something I’d be willing to entertain.”
“Something needs to happen, or the industry is just going to bleed and wither away and be a shadow of its former self,” Bromley said.
“Politics aside, if (Rustad) can come up with a policy that enables my members to work, then I would be supportive of that. But then I’m supportive of any government that would come up with policies and fibre for our mills to run. Period.”
When Canfor announced its latest closures, Forests Minister Bruce Ralston said the sector was a “foundational part” of the province and the current NDP government would work to support both local jobs and wood manufacturing operations.
This report by The Canadian Press was first published Sept. 14, 2024
