OTTAWA – As the premiers of Alberta and Saskatchewan prepare to fight Ottawa’s new draft regulations to force through a “net-zero” power grid, legal scholars say it’s iffy who might win a potential constitutional court battle.
“The question really doesn’t really turn on as much where provincial jurisdiction lies as how far you can stretch federal jurisdiction,” said Andrew Leach, a professor of law and economics at the University of Alberta.
On Thursday, after the draft rules were introduced, Saskatchewan Premier Scott Moe it wasn’t feasible for his province to meet the 2035 targets for net zero, a term which means emissions are technically eliminated, after accounting for offset credits.
“Trudeau’s net-zero electricity regulations are unaffordable, unrealistic and unconstitutional. They will drive electricity rates through the roof and leave Saskatchewan with an unreliable power supply,” Moe said.
Alberta Premier Danielle Smith said she is prepared to fight the new regulations in court and her environment minister Rebecca Schulz told a Calgary radio station the UCP government could invoke its sovereignty act, which is meant to shield the province from federal legislation it considers harmful.
University of Calgary law professor Martin Olszynski said the federal government’s regulations, which set up a specific prohibition on greenhouse gases from power production, appear to take advantage of Ottawa’s criminal enforcement powers. He said those powers go beyond what people typically associate with criminality and allow the government to prohibit certain things, such as tobacco advertising or toxic, when it can demonstrate a clear purpose for doing so.
He said there is a lot of precedent going back decades that allows the government to use these powers on a national scale to regulate the environment and he sees an uphill battle for any constitutional challenge.
“The reality I think is that horses left the barn a long time ago, 20 to 30 years ago,” he said. “On the basis of precedent, I think the feds have a pretty good argument.”
“I don’t think anyone can argue for it to be a slam-dunk unconstitutional law,” he said. “I think they’re puffing up a little bit there, frankly.”
Leach said federal governments have used the criminal power to push into areas of provincial constitutional jurisdiction in the past. The Supreme Court has been largely deferential to the Liberals when it comes to jurisdictional reach, such as when it upheld the carbon tax, which Ottawa argued for based on different federal powers.
But Leach said it’s possible the court could find the government has pushed too far this time.
“Probably with today’s Supreme Court, it ends up as valid federal legislation, but I don’t think it’s a slam dunk,” he said.
Leach said the federal government definitely has a role to play in environmental legislation, but courts have usually tried to limit its ability to micromanage the economy.
“What we tend to avoid having federal governments do or giving federal governments the power to do is to micromanage either individual facilities or individual industries,” he said.
Leach and Olszynski both say that probably wouldn’t be the central issue in a case over the electricity regulations.
Leach said the fact the carbon-tax case was not settled with a unanimous decision is proof that there is room for debate on what the government’s powers are when it comes to regulating the environment.
But he said it’s also possible the issue never ends up in a courtroom.
“There’s a lot of bluster right now about what’s going to happen and who’s going to challenge and how is it going to play out,” he said. “There are a lot of pathways both political and legally where this doesn’t end up being challenged.”
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
Companies in this story: (TSX:DOL)
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
Companies in this story: (TSX:TD)
The Canadian Press. All rights reserved.
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