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.”
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
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.
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