Six months of protests wrecked Hong Kong's economy. A virus scare is the last thing this city needs - CNN | Canada News Media
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Six months of protests wrecked Hong Kong's economy. A virus scare is the last thing this city needs – CNN

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Officials on Monday said Hong Kong’s economy shrank 1.2% last year as massive pro-democracy protests paralyzed the city’s streets and scared away tourists. GDP shrank 2.9% in the fourth quarter alone. The trade spat between Washington and Beijing compounded the problem, as did concerns about China’s economic growth.
Until recently, the Asian financial hub had reason to hope that 2020 would be better. The demonstrations were becoming less frequent, while an initial trade deal provided some hope that the relationship between the United States and China could improve.
“The US-China phase one trade deal and growth stabilization in China should have been positive for Hong Kong’s near-term economic outlook,” said Tommy Wu, a senior economist at Oxford Economics. “But it has been overshadowed by the coronavirus outbreak.”
Hong Kong now has to worry about how to stave off a dangerous epidemic that spurred government officials to cancel school for weeks, order civil servants to work from home and urge private companies to do the same. Retail stores, theme parks, cultural attractions and other hotspots also remain closed. Crowds are still common, but most people are wearing face masks as a form of protection.

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The coronavirus “will definitely cause a double blow to the economy,” Hong Kong Financial Secretary Paul Chan wrote in a Sunday blog post. He added that the virus “will greatly increase the risk of continued economic contraction this year.”
The Hong Kong government said Monday that the city’s economic outlook this year is “subject to high uncertainties,” including the global economy, trade and the protests. As for the coronavirus outbreak, the government said it would “monitor the situation closely.”
Hong Kong, which has some level of autonomy from mainland China and its own immigration system, has managed to avoid the worst of the outbreak. Only 15 cases have been confirmed in the city, and there have been no deaths. Just over the border in mainland China, the number of confirmed cases totals more than 17,000, while at least 360 people have died.
But the memory of 2003’s SARS crisis looms large in Hong Kong, reminding its people of the toll a serious disease can take on the city. More than 280 of the 774 people who died from SARS were reported in Hong Kong, the highest death toll outside of mainland China. The SARS scare caused the city’s economy to shrink 0.5% in the second quarter before it rebounded later in the year.

A ‘double whammy’ for businesses

Last year’s protest movement led millions of Hong Kongers to take to the streets and demand democratic and police reforms. Some clashes between protesters and police became violent, and tear gas, petrol bombs, rubber bullets and water cannons became part of the city’s new normal.
The protests hit the city’s hospitality and food and beverage industries particularly hard. Many people just stopped going out, fearful that if they strayed too far from home they would find themselves accidentally caught up in a demonstration or cut off from public transportation.
Despite the turmoil, the hospitality industry had been showing signs of recovery in December, according to Allan Zeman, the founder of the property developer Lan Kwai Fong Group.
“It’s kind of a double whammy for Hong Kong,” said Zeman, whose company developed the popular Hong Kong nightlife district Lan Kwai Fong.
“We were hoping that going into the Year of the Rat that this would continue,” he added, referring to this year’s Lunar New Year zodiac. “Suddenly, the coronavirus hit.”
Black Sheep Restaurants, a group that runs more than 20 Hong Kong businesses, echoed that show of progress, along with concerns about the virus.
“Things were on the up at the end of last year and first couple of weeks of [January],” Co-founder Syed Asim Hussain told CNN Business in an email. “However we are now again between a rock and a hard place.”
Hussain said the company’s main concern is the safety of its team. But he added that Black Sheep expects February to be slow, potentially leading to a “financial write off” for the first quarter.
Tourism is another major concern for the city. The protests already took a heavy toll on the industry: The number of people who visited Hong Kong in November plunged by nearly half compared to a year earlier, according to the latest available government figures.
The coronavirus outbreak will likely exacerbate that problem. Most of Hong Kong’s visitors come from mainland China, where many cities have placed their residents on lockdown. Hong Kong has also closed some of its border crossings into the mainland in an attempt to stop the virus from spreading.

Too early to tell

What’s still uncertain is how dramatic and long lasting the effects of the coronavirus will be on Hong Kong’s economy.
Iris Pang, an economist at ING, told CNN Business that she expects retail to be moderately affected by the outbreak, noting that last year’s protests caused those businesses to take a big hit. But she added that ING doesn’t think the virus will have a substantial impact on GDP.
Goldman Sachs on Friday cut its forecast for Hong Kong’s economic growth in the first quarter from 5.6% to 4%. The analysts attributed that in large part to how the virus will impact the city’s tourism, retail, hospitality, and food and beverage industries.
The bank warned that things could get worse, and that a prolonged outbreak could lower full-year economic growth to 5% or less.
Wu, of Oxford Economics, said the virus could have a “drastic” impact on the economy.
“Some sectors are doing better — like supermarkets, drugstores etc. But shopping malls and luxury brands will likely be hit badly,” he said.
Wu added that the problem isn’t just about the lack of tourism in the city, but about how much people who already live in Hong Kong will spend as worries about the spread of the virus grow.
Zeman, of Lan Kwai Fong, the said it’s too early to tell how bad the effects will be, since a lot of businesses are just now getting back to work after the Lunar New Year. The holiday ended last Wednesday, but many in the city typically take the whole week off.
But the government-mandated closures of schools and some public facilities, along with official encouragement that people stay indoors, will likely mean an uncertain future for many businesses.
“It’s not an easy situation, because at the moment, there’s no light at the end of the tunnel,” said Zeman. “I know many of my tenants, I don’t know if they can survive.”
— Sherisse Pham and Michelle Toh contributed to this report.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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