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Hoping to rent a car this summer? Good luck – CBC News

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Taylor Raggers and her partner, Will Perry, were looking forward to their honeymoon in Newfoundland this summer before they realized they’d have no way of getting around the province.

The couple, who live in Port Hope, Ont., tried to book a car back in February for a trip they planned to take in late June but were out of luck.

“I probably called five or six places and then anything online that I could find, and they [all had] nothing available,” Raggers said.

The lack of car rentals means Raggers isn’t going to be able to explore Perry’s home province and meet family members living there. Instead, the couple will be hitting the road in their own vehicle for a closer destination: Nova Scotia.

“Will really wanted to show me where his family was from. And I really wanted to see Newfoundland. It’s big on my bucket list,” she said.

Taylor Raggers, right, and her partner, Will Perry, left, shown with their daughter Delilah Perry, were planning on travelling to Newfoundland in June for their honeymoon but couldn’t find a car rental in the province. So they’ve decided to drive their own vehicle to Nova Scotia instead. (Hope Dawn Photography)

History is repeating itself as last summer’s “carpocalypse” makes a return. With travel picking up and more Canadians planning to get out this summer as the pandemic eases, car rental companies are trying to secure more vehicles, said Craig Hirota, vice-president of government relations and member services for the Associated Canadian Car Rental Operators.

“Our best estimates show we’re probably still 15 to 20 per cent down from pre-pandemic numbers,” Hirota said.

Where’s my chip? 

Earlier this month, Statistics Canada released the first in a series of reports on the rental vehicle industry, with the first focusing on British Columbia.

The report found that the size of rental car fleets in the province dropped by more than 30 per cent in 2020. And while fleets started to recover in 2021, they did not return anywhere close to pre-pandemic levels as companies struggled to find vehicles.

A major contributor to the shortage of car rentals is the slow pace of new vehicle production. Car manufacturers have been backlogged on production as they continue to face a semiconductor chip shortage, a part necessary for digital technology.

“That was exacerbated by the fact that our industry had to pare down our fleets … when demand dropped in March 2020,” the start of the COVID-19 pandemic, Hirota said.

Montreal-based car rental company AutoPlateau is experiencing this exact challenge. Gabriel Raymond, who works for the company that is owned by his family, said it had to downsize its fleet when the pandemic hit. Now, as it tries to expand, Raymond said it’s difficult to find cars.

“The car manufacturers are running out of chips for the cars. So car dealers are running out of cars. So car rental companies are not able to renew their fleet,” he said.

Gabriel Raymond, right, shown with his grandfather, Rodrigue Desrosiers, the owner of AutoPlateau, says the car rental company has been helping customers who have been struggling to find car rentals elsewhere. (CBC)

But Raymond said the company has been able to weather the shortage because it keeps vehicles around for longer, opting to fix them up instead of replacing them.

Despite having no marketing budget, he said AutoPlateau has attracted customers who have no luck securing car rentals elsewhere.

“It’s [stressful] because we have a lot of demand coming in from everywhere that we wouldn’t have otherwise because we’re a small company,” Raymond said, adding that the company relies on word of mouth to attract customers.

The shortage of rentals has significantly jacked up the cost of renting a vehicle. According to Statistics Canada, prices for rental vehicles rose by 30 per cent in 2021, while the overall inflation rate sat at 3.4 per cent.

Hirota said the higher cost of renting a car is partly because demand is outpacing supply, and inflation is pushing up the cost of cars and repairs. 

Planning travel this summer

With summer in sight and most COVID-19 restrictions lifted across the country, tourism is expected to pick up again. The World Trade and Tourism Council is forecasting that the contribution to GDP from Canada’s travel and tourism sector could rebound to $157 billion (Cdn) in 2023, just 0.8 per cent below pre-pandemic levels.

That means more travellers, such as Taylor Raggers, will be looking to snatch a car rental.

Raymond recommends that travellers who are hoping to rent a car this summer make plans as soon as possible and to beware of companies that overbook.

“Overbooking, especially in [a] high demand period, means they’re going to put more customers on the same car,” he said.

Some travellers are also turning to a less conventional transportation option: car-sharing.

Similar to Airbnb, car-sharing services allow people to rent out their vehicles to others. American car-sharing company Turo says its services are helping customers secure vehicles amid the rental shortage.

“What we’re seeing is that our Turo hosts are stepping in to fill the void,” said Cedric Mathieu, the vice-president and head of Canada at Turo.

Mathieu said the peer-to-peer model of car-sharing is more flexible than a car fleet model, which faces challenges when it needs to increase or decrease the number of vehicles available for rent.

Cedric Mathieu is the vice-president and head of Canada at Turo, a U.S.-based car-sharing company. Turo currently has more than 50,000 vehicles available in more than 350 cities across Canada. (CBC)

“As the demand started surging back up, we’re able to acquire and convince more hosts to join,” he said.

Turo currently has more than 50,000 vehicles available in more than 350 cities across the country. Most recently, the company has expanded to Newfoundland and Labrador, New Brunswick and Prince Edward Island.

As for when a recovery for the car rental industry can be expected, Hirota of the Associated Canadian Car Rental Operators said it’s hard to predict, given how quickly things can change. But while car manufacturers continue to ramp up production, he said challenges are still likely to persist for the next couple of years.

“I think it’s going to remain a challenge to get vehicles through the coming year and possibly the next year after that,” he said.

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The U.S. wants to ban Juul. Where is Canada on regulating e-cigarettes? – CBC News

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Earlier this week, regulators in the United States ordered Juul to pull its vaping products from the market, dealing a major blow to one of the most powerful players in the industry.

The company is appealing the decision by the U.S. Food and Drug Administration (FDA), asking a federal court to block a government order to stop selling its electronic cigarettes.

While the attempted ban in the U.S. doesn’t directly affect Canada, some health advocates say it raises questions about the slow pace of regulation in this country.

Here’s a closer look at the FDA’s decision and what’s happening in Canada. 

Why was Juul banned?

As part of the FDA’s review process, companies had to demonstrate that their e-cigarettes benefit public health. In practice, that means proving that adult smokers who use them are likely to quit or reduce their smoking, while teens are unlikely to get hooked on them.

In its decision, the FDA said that some of the biggest e-cigarette sellers like Juul may have played a “disproportionate” role in the rise in teen vaping. The agency said that Juul’s application didn’t have enough evidence to show that marketing its products “would be appropriate for the protection of the public health.”

On Friday, the e-cigarette maker asked the court to pause what it called an “extraordinary and unlawful action” by the FDA that would require it to immediately halt its business. The company filed an emergency motion with the U.S. Court of Appeals in Washington as it prepares to appeal the FDA’s decision.

That dispute is far from over. 

Juul products are shown at a vaping store in New York in 2020. The FDA has ordered the company to halt the sale of its products. (Marshall Ritzel/Associated Press)

What about in Canada?

Juul’s vaping products, as well as those sold by other companies, remain available in Canada. 

Health Canada proposed a ban on flavoured vaping products last June. At the time, it cited research indicating that flavoured vaping products are “highly appealing to youth, and that youth are especially susceptible to the negative effects of nicotine – including altered brain development, which can cause challenges with memory and concentration.” 

But after a round of consultations last year, that proposed ban still hasn’t been put into effect. 

WATCH | P.E.I. now has toughest vaping, smoking laws in Canada: 

P.E.I. now has toughest vaping, smoking laws in Canada

2 years ago

Duration 2:06

As of March 1, people have to be 21 to buy vaping or tobacco products in P.E.I., giving the province the highest age limit in the country.

Several provinces and territories have put in place their own limits on flavoured vaping products, citing their appeal to teenagers.

(Juul voluntarily stopped selling many of its flavoured cartridges in 2020 following criticism they were designed to entice youth.)

David Hammond, a public health professor at the University of Waterloo who researches vaping in youth, said banning Juul products in the U.S. won’t necessarily have a significant impact on the industry as a whole, given its declining market share and the variety of products available.

“You know, it’s like a tube of toothpaste. If you press at one point, you just kind of squeeze it to a different spot,” he said.

What does Health Canada say?

“Health Canada has no plans to remove any vaping products from the Canadian market that comply with the Tobacco and Vaping Products Act and the Canada Consumer Product Safety Act,” the agency told CBC News in an email.

The government has recently put in place new restrictions on the sector, including limits on advertising for e-cigarettes and the amount of nicotine in the products. It’s also undergoing a review of the legislation for vaping products that went into effect in 2018.

On its website, Health Canada warns of the risks of e-cigarettes, saying “the potential long-term health effects of vaping remain unknown” and the government continues to investigate “severe pulmonary illness associated with vaping.”

Last week, Health Canada announced another set of proposed regulations that would require vaping companies to disclose information about “sales and ingredients used in vaping products,” to help the government “keep pace with the rapidly evolving vaping market.”

How popular is vaping?

Vaping is popular among young people, with 14 per cent of Canadians between the ages of 15 and 19 having vaped in the last month of 2020, up from six per cent from the same month in 2017, according to the results of the Canadian Tobacco and Nicotine Survey.

Vaping is less popular for adults over the age of 25, with just three per cent reporting that they vaped within the last month in 2020.

Robert Schwartz, a senior scientist at Toronto’s Centre for Addiction and Mental Health, said the regulatory challenge is to strike a balance between making these products available to adults as an alternative to cigarettes, while at the same time limiting their appeal to younger non-smokers.

“We definitely are finding that young people who would not otherwise become cigarette smokers have started to use e-cigarettes and they fairly quickly develop a dependence on them,” said Schwartz.

“Our research is also demonstrating that some adults are able to quit by … using these cigarettes.”

What’s the holdup?

Like Schwartz, Hammond said vaping products could be a useful tool in helping wean smokers off cigarettes. He said it doesn’t make sense to put strict limits on vaping products if cigarettes, which are thought to be more harmful, are still available in corner stores. 

Dr. David Hammond is a public health professor at the University of Waterloo who researches vaping among younger people. (Craig Chivers/CBC)

“I don’t think the answer lies just with how they are regulated,” he said. “I think it lies with the industry and reframing these products as something that a 50-year-old uses to quit smoking and not a 15-year-old grabs on the way to a party.”

Hammond, who sits on Health Canada’s advisory board for vaping products, said the agency could stand to move more quickly given the stakes.

“There’s no doubt these are difficult questions and the market shifts rapidly. But it’s not an area where slow, plodding regulation is a good fit,” he said.

Cynthia Callard, executive director of the advocacy group Physicians for a Smoke-Free Canada, said that, while the context is different in Canada, the FDA decision “is a reminder that governments can and should bar market access to products which cannot be shown to benefit public health.”

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Inflation: Half of Canadians' finances worse than last year – CTV News

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As inflation rates soar to the highest they’ve been in Canada in forty years, nearly half of Canadians say that right now, they’re doing worse financially than they were at this time last year.

A further third say they expect things to get even worse in the coming year, the largest number of people to answer this way in more than a decade.

The numbers come from a new Angus Reid Institute (ARI) survey released Friday, which surveyed more than 5,000 Canadian adults between June 7 and June 13 on their financial standing and struggles.

The results shed light on the plight Canadians are facing coast to coast.

Currently, inflation is at a staggering 7.7 per cent higher than last year, according to Statistics Canada. The inflation rate hasn’t been this high since 1983, the year that Canada Day replaced Dominion Day.

TRENDING DOWN

The percentage of Canadians answering that they are worse off financially now than a year ago has been increasing steadily over the last few years. In 2018, only 29 per cent of Canadians said they were doing worse than the previous year. That number climbed to 32 per cent in the first quarter of 2020, then to 45 per cent in the second quarter of 2022.

It’s now the highest that it has been since ARI started tracking this specific question in 2010.

At the same time, the number of Canadians who said they were doing the same as a year ago plummeted, going from 54 per cent in 2018, to 44 per cent in 2020, to 36 per cent in the second quarter of 2022.

Interestingly, the percentage of Canadians who say they are doing better than the previous year jumped to 23 per cent in 2020, after years of hovering around 13-14 per cent. That number is now at 17 per cent.

When these results are broken down into the household income of the respondents, those who are in the upper echelons of income, making more than $200,000 annually, were much more likely to report that they were doing better than last year financially, at 26 per cent, and the least likely to report that they were doing worse, at 30 per cent.

On the other end of the scale, those making less than $25,000 per year were more likely to say they were worse off this year, at 51 per cent, and less likely to say they were doing better than last year, at 15 per cent — underlining how the rich are hurt less by shifts such as inflation, and the poor keep getting poorer as rising costs hit their wallets.

Only one in five Canadians said they expected things to improve a year from now, while a third anticipated things to get even worse.

“Residents in Saskatchewan voice the most pessimism and least optimism on this question,” the report stated.

COST OF LIVING IS EXORBITANT FOR MANY

Concerns about the cost of simply living is the one that consumes the time and energy of most Canadians, with food, housing and bills driving a huge amount of financial worries across the country.

When asked what the top provincial issues were, with respondents being able to choose up to three options, “cost of living/inflation” was overwhelmingly the most popular selection, with 63 per cent of respondents selecting it as a major issue.

Health care and housing affordability took second and third place at 52 per cent and 31 per cent respectively, with climate change and the environment coming in at fourth with 26 per cent.

“Some regions of the country are under more economic stress than others,” the report stated. “In Atlantic Canada, the cost of living was already higher than most other parts of the country last year. And Newfoundland and Labrador, Nova Scotia, and New Brunswick have experienced higher rates of inflation than other provinces, alongside Manitoba and British Columbia.”

When it comes to the country as a whole, more than half of those who rented said that it’s difficult to afford their rent.

For homeowners, monthly mortgage payments are on the rise after a series of interest rate increase by the Bank of Canada. One quarter of Canadians with a mortgage say prices have already gone up, while another half said they anticipate a price jump. Two thirds say that if their payments increased by $300 a month, they might not be able to afford it anymore.

“The challenge for many, as pandemic-era supports are removed, and some struggle with repayment of the CERB they received, is to avoid debt creation,” the report stated, noting that many Canadians are already struggling with debt.

Two in five Canadians said they had credit card debt.

Of those who scored high on the ARI Economic Stress Index and were classified as “struggling” on that index, 62 per cent had credit card debt, and three-in-five of this group said it would take them more than a year to pay it off.

The Economic Stress Index, created in January, looks at core costs related to quality of life, such as debt, housing and household food costs, as well as the respondents’ anxieties and assessments of their own finances, to map out who is having a harder time.

There are four categories: struggling, uncomfortable, comfortable, and thriving. The proportion of those who are “thriving” has dropped six points since May, while the number of those who “struggling” has risen three points in that time period. Some good news is that 29 per cent of Canadians fit into the “comfortable” category compared to 26 per cent in May.

“A majority in each of the Atlantic provinces fall under the Struggling or Uncomfortable categories,” the report stated, with 55 per cent in Nova Scotia and 64 per cent in Newfoundland and Labrador falling into one of these two categories.

Across the country, in most provinces, more than half of the respondents fell into the one of the bottom two categories, with 64 per cent in Newfoundland and Labrador, 59 per cent in Alberta, 62 per cent in Saskatchewan, 57 per cent in Manitoba, 55 per cent in Nova Scotia and 54 per cent in Ontario. Prince Edward Island was not included in the survey.

“Only in Quebec (61 per cent) and B.C. (52 per cent) do more than half fall into the top two categories on the ESI,” the report stated. “Notably, by Statistic Canada’s CPI, those provinces have the lowest cost of living of any province in the country.”

The province with the single highest percentage of Canadian respondents deemed to be “thriving” was Quebec, with a whopping 30 per cent.

Just over 75 per cent of Canadians said their province had done a poor job of handling inflation.

Around one in three Canadians said their costs due to purchasing gas had increased, while just under half stated that those costs had gone down for them because they were consciously avoiding driving and seeking out other forms of transportation to save money.

FOOD PRICES LEAVING SOME HUNGRY

The report noted that inflation affects some goods more harshly than others.

“Food inflation was 10 per cent in May, higher than the 7.7 per cent inflation rate overall,” the report said.

Just over half of Canadians surveyed reported struggling to make the grocery bill each month, with the report noting that this is seven points higher than last October.

And the lower your tax bracket, the harder it is to put food on the table. Seven out of ten Canadians making less than $25,000 a year said it is difficult to feed themselves and their family, while at least one third of all incomes reported finding it hard to budget for food.

One B.C. resident told The Canadian Press that her grocery bill has more than doubled. Food Banks Canada are concerned that more and more children — who make up a third of those who rely on food banks — could be going hungry this summer as school ends and access to school-based food programs is cut off.

Earlier this month, NDP leader Jagmeet Singh called out MPs for laughing in the House of Commons after he spoke about Canadians being unable to afford groceries. In a video Singh posted of the incident, laughter can be heard after he states that one in four Canadians are going hungry.

“I just mentioned that Canadians are hungry and I hear laughter in the chambers,” Singh said after the Speaker asked him to repeat himself. “They should be ashamed of themselves. Absolutely ashamed.” He stated on social media that those who were laughing were Conservative MPs.

TRUST IN INSTITUTIONS

Amid rising inflation, the Bank of Canada is meant to keep the impact on Canadians to a minimum through policy adjustments, but Canadian trust in this institution is split, according to the survey. While 46 per cent said they trusted the Bank of Canada, 41 per cent said they did not.

When the political leanings of survey respondents were taken into account, the results became more stark: Past supporters of the Conservative party and the People’s Party of Canada were less likely to trust the Bank of Canada, with 59 per cent and 86 per cent indicating this respectively.

The Bank of Canada has admitted that it made missteps, and is now playing catch-up as Canada’s economy overheats.

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Disney, other companies vow to cover employees' out-of-state abortions – CBC News

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The Walt Disney Co., publishing giant Conde Nast and the investment firm JPMorgan Chase were among the major American companies that pledged on Friday to cover travel costs for employees seeking out-of-state abortions, in the wake of the U.S. Supreme Court’s overturn of Roe v. Wade

The ruling did away with the constitutional protection of abortion, leaving the matter to individual states, 13 of which were poised to immediately ban the procedure. 

Florida, home to Walt Disney World, currently prohibits abortions after 15 weeks. Disney’s employee benefits will cover costs for those who need to travel to get health-care, including abortions, a company spokesman said Friday. The company, which recently sparred with state lawmakers over the contentious “Don’t say gay” bill, had previously declined to comment on a potential overturn.

Other major media companies — Sony, Paramount, Comcast, Warner Bros. Discovery and Netflix — also said they will reimburse travel expenses for out-of-state abortions.

Airbnb, Dick’s Sporting GoodsPatagonia made similar pledges. The Gap, in a statement, noted its employee benefits cover abortion and other family planning services, but did not specify travel expenses. 

Top executives at other companies — Meta’s outgoing COO Sheryl Sandberg, Reddit co-founder Alexis Ohanian and Yelp CEO Jeremy Stoppelman — condemned the ruling as a step back for women’s rights. 

“Business leaders must step up to support the health and safety of their employees by speaking out against the wave of abortion bans that will be triggered as a result of this decision, and call on Congress to codify Roe into law,” Stoppelman wrote in a statement.

Whitney Wolfe Herd, CEO of the dating app Bumble, said her company will continue supporting reproductive rights by donating to the ACLU and Planned Parenthood. OkCupid encouraged people to contact their elected representatives, in a post on Instagram.

Apple, Amazon, Tesla, Levi Strauss & Co., Lyft, Starbucks and Microsoft have all previously said that they would also cover travel costs for employees seeking out-of-state health-care. 

In September, Uber said it would cover legal fees for any drivers sued for dropping people off at abortion clinics. That same month, Salesforce offered to help Texas employees relocate, after that state, together with Mississippi, passed “heartbeat bills,” effectively banning early-pregnancy abortions.

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