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Quebec to hand out C$500 payments, forecasts C$6.5 billion deficit

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Canada’s Quebec on Tuesday announced payments of C$500 each to residents to counter the rising cost of living ahead of a fall election and said it sees a C$6.5 billion ($5.2 billion) budget deficit for fiscal 2022/23.

The mostly French-speaking province is spending C$3.2 billion on one time payments for 6.4 million Quebecers earning C$100,000 or less in annual income, with inflation expected to surge this year in-part fueled by Russian’s invasion of Ukraine.

“The inflation situation is exceptional,” Finance Minister Eric Girard told reporters in Quebec City. “So, the compensation is exceptional.”

Canada’s most populous provinces are eyeing smaller deficits as their economies recover from the pandemic.

Girard, whose Coalition Avenir Quebec government is facing an October election, denied the C$136 billion budget is politically motivated.

“The need is now so we’re acting now,” said Girard, a former bank executive. “The election is in October.”

Quebec said it is partly banking on an acceleration in economic growth to narrow deficits through fiscal 2027/28 when it aims to reach a balanced budget. Yet the province’s own forecasts show GDP growth will decelerate in the coming years.

The fiscal year starts in April.

After surging 6.3% in 2021 due to a strong recovery from COVID-19, Quebec expects real GDP to rise 2.7% in calendar 2022, 2.0% in 2023 and 1.5% in 2024.

Carlos Leitao, finance critic for Quebec’s opposition Liberals and a former bank economist, said reaching a balanced budget would require tighter controls on spending “after the election,” since growth is expected to slow.

Quebec, Canada’s second-most populous province behind Ontario, would gradually reduce debt, Girard said.

The province sees a C$7.4 billion deficit in 2021-22, compared with the C$6.8 billion projected in November due to higher spending.

Quebec sees its net debt-to-GDP ratio declining from a better-than-expected 42.4% in 2021-22 to 39.8% in 2022-23.

($1 = 1.2568 Canadian dollars)

 

(Reporting By Allison Lampert in Quebec City; Editing by Chris Reese and Alistair Bell)

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Train derailment and spill near Montreal leads to confinement order

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LONGUEUIL, Que. – People in a part of Longueuil, Que., were being asked to stay indoors with their doors and windows closed on Thursday morning after a train derailed, spilling an unknown quantity of hydrogen peroxide.

Police from the city just east of Montreal said it didn’t appear anyone was hurt, although a CN rail official told a news conference that three employees had been taken to hospital as a precautionary measure.

The derailment happened at around 9 a.m. in the LeMoyne area, near the intersection of St-Louis and St-Georges streets. Mathieu Gaudreault, a spokesman for CN rail, said about eight cars derailed at the Southwark rail facility, including four that toppled over.

“As of this morning, the information we have is it’s hydrogen peroxide that was in the rail car and created the fumes we saw,” he said, adding that there was no risk of fire.

François Boucher, a spokesman for the Longueuil police department, said police were asking people in the area, including students at nearby schools, to stay indoors while experts ensure the air is safe to breathe.

“It is as a preventive measure that we encourage people to really avoid exposing themselves unnecessarily,” he told reporters near the scene.

Police and fire officials were on site, as well as CN railworkers, and a large security perimeter was erected.

Officers were asking people to avoid the sector, and the normally busy Highway 116 was closed in the area. The confinement notice includes everyone within 800 metres of the derailment, officials said, who added that it would be lifted once a team with expertise in dangerous materials has given the green light.

In addition to closing doors and windows, people in the area covered by the notice are asked to close heating, ventilation and air exchange systems, and to stay as far from windows as possible.

Gaudreault said it wasn’t yet clear what caused the derailment. The possibilities include a problem with the track, a problem with a manoeuvre, or a mechanical issue, he said.

This report by The Canadian Press was first published Nov. 14, 2024.

The Canadian Press. All rights reserved.



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Nova Scotia election: Liberals promise to improve cellphone services and highways

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HALIFAX – Nova Scotia’s Liberal party is promising to improve cellphone service and invest in major highways if the party is elected to govern on Nov. 26.

Party leader Zach Churchill says a Liberal government would spend $60 million on building 87 new cellphone towers, which would be in addition to the $66 million the previous Progressive Conservative government committed to similar projects last year.

As well, Churchill confirmed the Liberals want to improve the province’s controlled access highways by adding exits along Highway 104 across the top of the mainland, and building a bypass along Highway 101 near Digby.

Churchill says the Liberals would add $40 million to the province’s $500 million capital budget for highways.

Meanwhile, the leaders of the three major political parties were expected to spend much of today preparing for a televised debate that will be broadcast tonight at 6 p.m. local time.

Churchill will face off against Progressive Conservative Leader Tim Houston and NDP Leader Claudia Chender during a 90-minute debate that will be carried live on CBC TV and streamed online.

This report by The Canadian Press was first published Nov. 14, 2024.

The Canadian Press. All rights reserved.



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Hospitality workers to rally for higher wages as hotel costs soar during Swift tour

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TORONTO – A group of hotel service workers in Toronto is set to hold a rally today outside the Fairmont Royal York to demand salary increases as hotel costs in the city skyrocket during Taylor Swift’s concerts.

Unite Here Local 75, the union representing 8,000 hospitality workers in the Greater Toronto Area, says Royal York employees have not seen a salary increase since 2021, and have been negotiating a new contract with the hotel since 2022.

The rally comes as the megastar begins her series of six sold-out concerts in Toronto, with the last show scheduled for Nov. 23.

During show weekends, some hotel rooms and short-term rentals in Toronto are priced up to 10 times more than other weekends, with some advertised for as much as $2,000 per night.

The union says hotel workers who will be serving Swifties during her Toronto stops are bargaining for raises to keep up with the rising cost of living.

The union represents hospitality workers including food service employees, room attendants and bell persons.

This report by The Canadian Press was first published Nov. 14, 2024.

The Canadian Press. All rights reserved.



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