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Oil removal work begins on ‘fragile’ Second World War-era wreck in coastal B.C.

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An oil salvage operation is underway on the fragile wreckage of a U.S. army transport ship that sank almost 80 years ago off coastal British Columbia in a race to head off an eruption of thousands of litres of oil that a coast guard official says is “near imminent.”

The Canadian Coast Guard said the 77-metre-long Brigadier General M.G. Zalinski has been burping up “slow but consistent drops of oil” since the fall of 2022 at the shipwreck site in Grenville Channel, part of the Inside Passage off northern B.C.

Jeff Brady, superintendent of marine environmental hazard response in the west for the coast guard, said the discovery comes after 44,000 litres of heavy fuel oil and 319,000 litres of oily water was successfully extracted from the sunken ship in 2013.

An assessment done by the coast guard last year suggests about 27,000 litres of oil remains within the ship, which sits on a rocky shelf about 40 meters below the surface.

Brady said the oil removal work is urgent.

“We’re really well aware of that the marine mammals in the area, aquaculture, all the migratory birds.

“And what we do know about the wreck is that it’s in a deteriorated state, and it’s near imminent that we’re going to have a more significant release from it, and that’s why we’re aggressively launching this operation,” said Brady.

Coast guard crews began diving down to the site — about 1,100 kilometres north of Vancouver along the coast — for more than a week to do safety checks and prepare it for oil removal work, he said.

Built in 1919 by the American Ship Building Co., the Zalinski was initially used as a cargo ship, and in 1941, it was taken over by the U.S. Department of War to an army transport vessel.

The Zalinski was on its way from Seattle to Whittier, Alaska, in 1946, loaded with army supplies and about 700 tonnes of fuel, when it crashed into rock near Pitt Island.

It sank in just 20 minutes, although the 48 crew members aboard were rescued by a nearby tug and a cargo ship.

Since then, Brady said the wreck has been “very slowly” spilling oil.

The sunken ship was mostly forgotten until around 2005, when oil was reported in the channel, he said.

“And during that dive, to our surprise, we found a large Second World War wreck and that really started this progress,” said Brady.

The federal government awarded a $4.9 million contract to U.S.-based company Resolve Marine in October to use an extraction method called “hot tapping” to remove the fuel, the coast guard said in a statement.

Brady said a crew has cut a 10-centimetre hole in the steel plate of the wreckage without spilling any of the oil inside.

“So, imagine you had an aboveground swimming pool, and on the side of that swimming pool you wanted to put a hole through that, but you didn’t want to spill any water, and so that’s a challenging thing to do,” said Brady.

Brady said the oil-removal operation, which will likely last into early November, is being done in collaboration with the nearby Gitga’at and Gitxaala First Nations and wildlife advisers.

Because the Zalinski sank before polluter-pay rules were established, the federal government is paying the $4.9-million cost of the operation.

The coast guard said in a statement that given the “high risk” to the marine ecosystem, and areas of “culture sensitivity” in Grenville Channel and other areas of the Inside Passage, the Government of Canada is paying for the removal of bulk oil.

The coast guard said the contractor will attempt to remove as much of the remaining oil as possible.

Once the operation is finished, Brady said the wreck will be left on the channel floor as it has “deteriorated significantly” with its bones collapsing, said Brady.

“We can’t remove such a sensitive, fragile hull in one piece. And if we did decide to do that, we’d still know that there are little pockets of trace oil throughout the hull and it may not be best for the environment,” said Brady.

“It might be a net environmental benefit to just leave the hull and let it deteriorate in place,” he added.

This report by The Canadian Press was first published Oct. 23, 2024.

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A look at what people are saying about the Bank of Canada’s rate decision

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OTTAWA – The Bank of Canada cut its key policy interest rate by 50 basis points on Wednesday to bring it to 3.75 per cent. Here’s what people are saying about the decision:

“High inflation and interest rates have been a heavy burden for Canadians. With inflation now back to target and interest rates continuing to come down, families, businesses and communities should feel some relief.” — Tiff Macklem, Bank of Canada governor.

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“Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly. For those with variable rate mortgages – who will benefit from the rate drop immediately – or those with fast-approaching loan renewals, today’s announcement is welcome news indeed.” — Phil Soper, president and CEO of Royal LePage.

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“This won’t be the end of rate cuts. Even with the succession of policy cuts since June, rates are still way too high given the state of the economy. To bring rates into better balance, we have another 150 bps in cuts pencilled in through 2025. So while the pace of cuts going forward is now highly uncertain, the direction for rates is firmly downwards.” — James Orlando, director and senior economist at TD Bank.

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“The size of the December rate cut will depend on upcoming job and inflation data, but a 25 basis point cut remains our baseline.” — Tu Nguyen, economist with assurance, tax and consultancy firm RSM Canada.

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“Today’s outsized rate cut is mostly a response to the heavy-duty decline in headline inflation in the past few months. However, the underlying forecast and the Bank’s mild tone suggest that the future default moves will be 25 bp steps, unless growth and/or inflation surprise again to the downside.” — Douglas Porter, chief economist at Bank of Montreal.

This report by The Canadian Press was first published Oct. 23, 2024.

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BoC delivers half percentage point rate cut, says it now must keep inflation at 2%

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OTTAWA – The Bank of Canada delivered a supersized interest rate cut Wednesday in response to the recent decline in inflation, bringing its key policy rate down by half a percentage point.

With annual price growth now around two per cent, the central bank says its job has shifted from lowering inflation to maintaining it around the inflation target.

“We took a bigger step today because inflation is now back to the two per cent target and we want to keep it close to the target,” Governor Macklem said in his opening statement.

Canada’s inflation rate fell to 1.6 per cent in September, solidifying forecasters’ expectations for a larger rate cut. Bigger cuts mean the rate can be lowered faster.

Wednesday marked the central bank’s fourth consecutive interest rate cut since June. Its policy rate now stands at 3.75 per cent, down from a height of five per cent.

The Bank of Canada attributes the slowdown in price growth to shelter price inflation easing, supply outpacing demand in the economy and global oil pricing falling.

It’s now forecasting inflation will remain around the two per cent target throughout its projection horizon, which extends to 2026.

High interest rates have sent a chill through the Canadian economy, slowing growth and loosening the labour market.

The central bank says in its monetary policy report that while layoffs have remained stable, businesses have pulled back on hiring, which has disproportionately affected young people and newcomers.

As interest rates continue to come down, the Bank of Canada is projecting economic growth to pick back up in 2025 and 2026.

Macklem said the central bank expects cutting its key interest rate further, so long as the economy evolves in line with its forecast.

“High inflation and interest rates have been a heavy burden for Canadians. With inflation now back to target and interest rates continuing to come down, families, businesses and communities should feel some relief,” Macklem said.

The Bank of Canada’s next interest rate announcement is scheduled for Dec. 11.

The Canadian Press. All rights reserved.



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Ontario government engineers to withdraw services from Highway 413, Bradford Bypass

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TORONTO – A group of professional engineers plan to soon withdraw services from key Ontario infrastructure projects Highway 413 and the Bradford Bypass as part of a bargaining dispute with the province.

Members of the Professional Engineers Government of Ontario, which represents more than 600 professional engineers and land surveyors who work for the province, started a work-to-rule campaign earlier this month.

Members’ earnings have fallen so far behind that they sometimes earn half of what people in similar positions at municipalities make, their bargaining association said. They are behind the market by 30 to 50 per cent, said president Nihar Bhatt.

So far no meaningful progress has been made in bargaining with the Treasury Board Secretariat even though the engineers have been without a contract for 20 months, Bhatt said. He did not give a specific percentage increase he is looking for but said it is “significant.”

“This bargaining is just the culmination of a decade long of talks on this issue, and suddenly, when they realize how far behind the market they are, they’re like, ‘Oh, these numbers are, like, really big,'” Bhatt said.

“Yeah, they are because you ignored it for a decade, and this is where we are. So that’s the problem and the infrastructure agenda of the province, whether it be new stuff or existing, both need to be overseen by people who know what they’re doing.”

The engineers have been engaging in a work-to-rule campaign, which includes not doing unpaid overtime or working outside of their set hours, but will now be escalating their job action.

Starting in the next few days, a small group of engineers will stop working on the two highway projects that are loudly championed by Premier Doug Ford.

“So right now, the impacts are gonna be felt in the planning and design stages of the projects, which is where both 413 and Bradford Bypass are at,” Bhatt said.

“There are some major milestones coming up in the next few weeks which should impact projects in the long run.”

A spokesperson for Treasury Board President Caroline Mulroney said the government has held numerous bargaining sessions with PEGO since July 2023.

“The government has been negotiating in good faith and will continue to do so,” Liz Tuomi said in a statement, adding that all ministries have continuity plans in case of labour action.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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