A new passenger and freight rail line would have the potential to stimulate economic growth in communities on Vancouver Island, says the chairman of the Cowichan Valley Regional District.
“When you bring something like a rail corridor back to life and people can see that it is long term and that the investment is long term, you spur all kinds of economic growth around that corridor as well,” Ladysmith Mayor Aaron Stone said Friday. “The biggest challenge is to ensure that we never lose that corridor.”
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A new consultant’s report prepared for the province sets out three levels of service, based on upgrading the Island Rail Corridor. Estimated costs range from $326 million to $729 million for freight and passenger service between Victoria and Courtenay and for a leg that runs to Port Alberni. A commuter service between Langford and Victoria has an estimated price tag of $595 million.
Proponents say those costs could be shaved and the system could be rolled out over many years rather than spending that much money at once.
Others fear there is not enough demand to make it economically viable and taxpayer money would be wasted on an expensive system.
The old E and N rail line was last used to carry passengers in 2011. It ended due to concerns about the condition of the tracks.
Stone said now that the baseline report on the condition of the system has been completed, it’s time to do a business-case analysis of the future of transportation in coming decades.
It could look at everything from migration patterns to Vancouver Island to the potential for savings in infrastructure-maintenance costs from moving freight off trucks and onto rail.
Within the Cowichan Valley Regional District, Stone sees opportunities for housing development as well as a stronger inter-regional economy based on the ability to move goods and services and serve manufacturing operations.
Stone and Nanaimo Mayor Leonard Krog see potential for rail to carry cargo coming in and out of Port Alberni’s deep-sea port, with the line linked to Nanaimo. From there, goods could be shipped to and from the mainland.
Krog is optimistic about the value and future of rail on Vancouver Island.
While the cost is daunting, “you don’t have to build it in a day or a year,” he said — rebuilding the system and getting it up and running in segments is a more logical approach.
“We have just found billions and billions of dollars to support people through a tough time. We can find a few hundred million to ensure that we have the rail.”
A key advantage is that the corridor exists in the first place, he said. “It is an absolutely horrendous undertaking to create a rail system through a populated area. We have it in place — it is irreplaceable,” Krog said.
“You’re not going to do this again.”
Krog favours a multi-use plan for the corridor. Depending on the width available along the route, a rail system could be installed with space allocated for other uses alongside. That could include cyclists and walkers, who already use the corridor regularly.
Parksville Mayor Ed Mayne said some kind of commuter-rail system is needed between Langford and Victoria, but that’s all. He’s not in favour of a rail system to Courtenay, saying there is not enough demand, including freight, to justify the cost.
“There’s no way that it can be economically sustainable, Mayne said. “It’s a romantic idea that people just won’t let go of.”
The future of the corridor has been discussed for many years and nothing has changed, he said.
“That bothers me. We haven’t advanced an inch on this, other than we know that it is way too expensive,” he said.
Courtenay Mayor Bob Wells hasn’t read the new report, but said any benefit from reintroducing rail service to the Comox Valley would likely be through the tourism sector.
“In my mind, there are different business cases for different parts of the Island.”
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
