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Justin Trudeau visits rare earth elements processing plant in Saskatoon
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Prime Minister Justin Trudeau visited a rare earth elements processing plant in Saskatoon Monday as part of a tour to oversee the Canadian supply chain of metals and minerals needed for a greener world.
The world will look to Canada to step up its production of rare earth elements and bolster available supply chains, many of which have been plagued with issues throughout the COVID-19 pandemic and the war in Ukraine, Trudeau said Monday.
“We need, of course, efficiency in our supply chains. But we also really need resilience in our supply chains,” Trudeau said.
“This is an exciting time to be forward-looking at what the world needs from Canada… Canada is extraordinarily well-positioned to succeed in the decades to come.”
In 2020, the World Bank predicted that demand for critical minerals — dozens of metals and minerals like lithium and copper that are used in batteries and clean energy generation — will soar 500 per cent by 2050.
Lithium, graphite, nickel, cobalt, copper and the group of 17 metals and minerals known as rare earth elements are being prioritized for investments in exploration, production and processing as part of Canada’s critical minerals strategy, announced by Natural Resources Minister Jonathan Wilkinson last month.
Critical minerals were also among the issues Trudeau, U.S. President Joe Biden and Mexican President Andrés Manuel López Obrador discussed during their summit last week in Mexico.
Many European countries were forced to pivot from where they supply energy, as Russia — a massive energy producer, particularly for European countries — is not currently reliable due to the war, he explained.
Additionally, the economy is shifting toward greener solutions, such as electric vehicles.
Saskatchewan, a mining hub, has the ability to boost the local supply chain of metals minerals needed for those new technologies, he said.
On Monday, Trudeau and Saskatoon Mayor Charlie Clark toured the Vital Metals facility in Saskatoon, speaking with workers and getting an inside look at the process.
It’s part of the Nechalacho Project that Vital Metals — an Australia-based company — launched last year. The project made the company the first rare earths elements producer in Canada, according to the corporate website.
The metals and minerals are extracted at the Nechalacho mine in N.W.T., before being shipped to Saskatoon to produce a “rare earth carbonate product,” that is then sent to a company based in Norway, the website says.
The federal government recently spent $5 million to help establish processing and production at the Saskatoon facility, according to a news release issued by the government.
“It’s not just about buying from a reliable ally,” Trudeau said.
The tour, in part, is to ensure that Trudeau knows how the whole process works — that it’s done efficiently, in partnership with Indigenous peoples, and that employees work under proper labour practices, he added.
Moe alleges he was not invited to tour
Saskatchewan Premier Scott Moe released a statement Monday welcoming the prime minister, while calling the visit “disappointing, but not surprising.”
Moe said the provincial government has been advocating for more investment into this area of natural resource development, but alleged his government was not made aware that Trudeau was visiting.
Read my statement on the Prime Minister’s visit to Saskatchewan today: <a href=”https://t.co/vUoBKwU2nQ”>pic.twitter.com/vUoBKwU2nQ</a>
—@PremierScottMoe
“It’s disappointing simply because this is one of the points where the province of Saskatchewan and the federal government most certainly do see eye-to-eye,” Moe later told reporters Monday afternoon.
In his statement Monday, Moe pointed out that he led a delegation in Washington, D.C., last month to discuss ways to partner with the United States to provide “elements required for North American energy security.”
Trudeau’s visit was unsurprising because he was likely made aware of those conversations during that meeting, Moe told reporters Monday.
Moe said he didn’t feel slighted by not being invited, but that Monday was a missed opportunity to at least have a discussion about working together on natural resource development in Saskatchewan.
Moe added that when he’s in Ottawa, he informs the prime minister — and he would expect the same.
CBC News twice asked Trudeau twice during a scrum why the premier was not invited.
He dodged the question, saying he was happy to be joined by Clark and John Dorward, Vital Metals’ managing director, during the tour.
The federal government wants to keep working with the Saskatchewan government, particularly toward innovating the economy, Trudeau said.
In a statement sent to news media, Saskatchewan Opposition NDP leader Carla Beck accused the premier of acting childish, opting to play politics instead of working together and promoting potential further investment.
The province, Beck said, must get back to telling the rest of Canada and countries abroad that Saskatchewan has much potential.
FSIN ‘dismayed’ Trudeau did not visit Star Blanket
Trudeau’s agenda in Saskatchewan Monday also drew the ire of the Federation of Sovereign Indigenous Nations (FSIN), which represents the province’s First Nations.
In a statement, the FSIN said it is “dismayed” the prime minister would exclude Star Blanket Cree Nation from his trip.
On Thursday, the community announced findings from recent ground penetrating radar searches at the former Lebret Indian Residential School.
According to the FSIN, Trudeau was invited to attend that event, but declined because he was “waiting to confirm a meeting with the Japanese prime minister.”
“The Prime Minister is without the decency to pay his respects in person to Star Blanket, as they mourn the horrific discovery,” FSIN chief Bobby Camerson said in the statement.
“His lack of respect is hurtful toward all residential school survivors and descendants, who are grappling with how to handle finding the child’s remains and more unmarked graves.”
Cameron said he first learned of Trudeau’s visit to Saskatoon Monday in the press, adding he was “taken aback that their request to attend the residential school announcement wasn’t valued as much as a tour of a rare earth mining processing plant.”
The FSIN said its statement is a formal invitation for Trudeau to visit Star Blanket, 75 kilometres northeast of Regina, in the coming months.
“We want him to see the site. The amount of anomalies is devastating to our people, who wonder how many of our relatives may have died there,” File Hills Qu’appelle Tribal Chair Jeremy Fourhorns said.
“This is a dark part of Canadian history that deserves acknowledgement from the Prime Minister of Canada.”
Trudeau’s first comments at Monday’s tour addressed Star Blanket, calling the discoveries there “heartbreaking” and noting that he spoke with Chief Michael Starr on Friday.
“[I called] to express our ongoing support, whether it’s financial or with resources, as that community moves through the location of remains,” the prime minister said.
“Also of the healing and closure we know is so important in the aftermath of the horrific residential schools that impacted so many people across the province, across the country.”
News
Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca
A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.
In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.
Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.
The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.
However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.
Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.
Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.
“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”
The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.
Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.
We need to be doing everything we can to turn Canada into the best place for entrepreneurs to build 🇨🇦<br><br>What’s proposed in the federal budget will do the complete opposite. Innovators and entrepreneurs will suffer and their success will be penalized — this is not a wealth tax,…
—@harleyf
Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”
Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure.
Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.
The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.
A challenge for investors, founders and workers
The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.
He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.
The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”
He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.
But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.
“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”
As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”
‘One foot on the gas, one foot on the brake’
Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.
“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.
Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.
A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.
“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”
Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.
Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?
Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.
Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.
He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.
“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”
Tech titan says change will only impact richest of the rich
Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.
“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.
“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”
While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.
“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.
“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”
More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.
The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.
Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.
The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.
For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.
That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.
The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.
To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.
The next payment date will take place on May 17.
Keffiyehs remain banned in the Ontario Legislature after a unanimous consent motion that would have allowed the scarf to be worn failed to pass at Queen’s Park Thursday.
That vote, brought forth by NDP Leader Marit Stiles, failed despite Premier Doug Ford and the leaders of the province’s opposition parties all stating they want to see the ban overturned. Complete agreement from all MPPs is required for a motion like this to pass, and there were a smattering of “nos” after it was read into the record.
In an email on Wednesday, Speaker Ted Arnott said the legislature has previously restricted the wearing of clothing that is intended to make an “overt political statement” because it upholds a “standard practice of decorum.”
“The Speaker cannot be aware of the meaning of every symbol or pattern but when items are drawn to my attention, there is a responsibility to respond. After extensive research, I concluded that the wearing of keffiyehs at the present time in our Assembly is intended to be a political statement. So, as Speaker, I cannot authorize the wearing of keffiyehs based on our longstanding conventions,” Arnott said in an email.
Speaking at Queen’s Park Thursday, Arnott said he would reconsider the ban with unanimous consent from MPPs.
“If the house believes that the wearing of the keffiyeh in this house, at the present time, is not a political statement, I would certainly and unequivocally accept the express will of the house with no ifs, ands or buts,” he said.
Keffiyehs are a commonly worn scarf among Arabs, but hold special significance to Palestinian people. They have been a frequent sight among pro-Palestinian protesters calling for an end to the violence in Gaza as the Israel-Hamas war continues.
Premier calls for reversal
Ford said Thursday he’s hopeful Arnott will reverse the ban, but he didn’t say if he would instruct his caucus to support the NDP’s motion.
In a statement issued Wednesday, Ford said the decision was made by the speaker and nobody else.
“I do not support his decision as it needlessly divides the people of our province. I call on the speaker to reverse his decision immediately,” Ford said.
Ontario Premier Doug Ford reiterated Thursday that he does not support Speaker Ted Arnott banning keffiyehs in the Ontario Legislature because they are “intended to be a political statement,” as Arnott said in an email Wednesday.
PC Party MPP Robin Martin, who represents Eglinton–Lawrence, voted against the unanimous consent motion Thursday and told reporters she believes the speaker’s initial ruling was the correct one.
“We have to follow the rules of the legislature, otherwise we politicize the entire debate inside the legislature, and that’s not what it’s about. What it’s about is we come there and use our words to persuade, not items of clothing.”
When asked if she had defied a directive from the premier, Martin said, “It has nothing to do with the premier, it’s a decision of the speaker of the legislative assembly.”
Stiles told reporters Thursday she’s happy Ford is on her side on this issue, but added she is disappointed the motion didn’t pass.
“The premier needs to talk to his people and make sure they do the right thing,” she said.
Stiles first urged Arnott to reconsider the ban in an April 12 letter. She said concerns over the directive first surfaced after being flagged by members of her staff, however they have gained prominence after Sarah Jama, Independent MPP for Hamilton Centre, posted about the issue on X, formerly Twitter.
Jama was removed from the NDP caucus for her social media comments on the Israel-Hamas war shortly after Oct. 7.
Jama has said she believes she was kicked out of the party because she called for a ceasefire in Gaza “too early” and because she called Israel an “apartheid state.”
Arnott told reporters Thursday that he began examining a ban on the Keffiyeh after one MPP made a complaint about another MPP, who he believes was Jama, who was wearing one.
Liberals also call for reversal
Ontario Liberal Leader Bonnie Crombie also called for a reversal of the ban on Wednesday night.
“Here in Ontario, we are home to a diverse group of people from so many backgrounds. This is a time when leaders should be looking for ways to bring people together, not to further divide us. I urge Speaker Arnott to immediately reconsider this move to ban the keffiyeh,” Crombie said.
Keffiyehs are a common garment across the Arab world, but they hold a special meaning in the Palestinian resistance movement.
Stiles said MPPs have worn kilts, kirpans, vyshyvankas and chubas in the legislature, saying such items of clothing not only have national and cultural associations, but have also been considered at times as “political symbols in need of suppression.”
She said Indigenous and non-Indigenous members have also dressed in traditional regalia and these items cannot be separated from their historical and political significance.
“The wearing of these important cultural and national clothing items in our Assembly is something we should be proud of. It is part of the story of who we are as a province,” she said.
“Palestinians are part of that story, and the keffiyeh is a traditional clothing item that is significant not only to them but to many members of Arab and Muslim communities. That includes members of my staff who have been asked to remove their keffiyehs in order to come to work. This is unacceptable.”
Stiles added that House of Commons and other provincial legislatures allow the wearing of keffiyehs in their chambers and the ban makes Ontario an “outlier.”
Suppression of cultural symbols part of genocide: MPP
Jama said on X that the ban is “unsurprising” but “nonetheless concerning” in a country that has a legacy of colonialism. “Part of committing genocide is the forceful suppression of cultural identity and cultural symbols,” she said in part.
“Seeing those in power in this country at all levels of government, from federal all the way down to school boards, aid Israel’s colonial regime with these tactics in the oppression of Palestinian people proves that reconciliation is nothing but a word when spoken by state powers,” she said.
Amira Elghawaby, Canada’s Special Representative on Combatting Islamophobia, said on X that it is “deeply ironic” on that keffiyehs were banned in the Ontario legislature on the 42nd anniversary of Canada’s Charter of Rights and Freedoms.
“This is wrong and dangerous as we have already seen violence and exclusion impact Canadians, including Muslims of Palestinian descent, who choose to wear this traditional Palestinian clothing,” Elghawaby said.
Arnott said the keffiyeh was not considered a “form of protest” in the legislature prior to statements and debates that happened in the House last fall.
“These items are not absolutes and are not judged in a vacuum,” he said.
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