Connect with us

Business

Teck pulling out of oilsands project ‘another straw on the camel’s back’ for Alberta economy: think tank – Global News

Published

 on


The decision by Teck Resources to pull out of a multi-billion-dollar oilsands project in northern Alberta is “not the end of the world,” according to the Canada West Foundation, though it considers it to be “another straw on the camel’s back in terms of Alberta’s economy.”

In a letter addressed to federal Environment and Climate Change Minister Jonathan Wilkinson on Sunday, Teck’s CEO and president Don Lindsay said the company was withdrawing from the proposed $20.6-billion Frontier mine because of the broader conversation around climate change in Canada.


READ MORE:
Teck Resources withdraws application for $20B Frontier oilsands mine

Marla Orenstein, director of the natural resources centre at the Canada West Foundation, said she agreed with some of the points Teck made in its letter, especially when it comes to having “a common environmental plan” for major resource and energy projects in the country.

“They were saying that this country really needs to figure out what it wants in terms of an energy policy: how we reconcile energy development, Indigenous rights and climate issues,” Orenstein said.

Story continues below advertisement

“Those are our big, thorny, hairy issues that we have problems with and we haven’t figured out how to reconcile them yet. We’re desperately looking for leadership from the federal government on how to move forward so that all these things can progress in tandem, and that hasn’t been resolved, not by a long shot.

Tweet This

“And until that is resolved, future projects are likely to get caught up in the same problem.”






2:32
Politicians point fingers after Teck pulls out of $20.6B oilsands project


Politicians point fingers after Teck pulls out of $20.6B oilsands project

Orenstein said many people are disappointed by the end result, both because of the jobs the project was expected to deliver and because the Frontier mine was seen as a project that could reinforce the country’s oil and gas sector as a viable industry. However, she said the company’s decision not to move forward on the project doesn’t mean “oil and gas is finished in Canada.”

“I think that’s far from the truth. There remains a really strong demand for oil and gas products around the world and as long as there is, there’s going to be companies that need to come forward to provide that,” she said.

Story continues below advertisement

For oil and gas company Tundra Process Solutions, the cancellation of the project is another blow to the already struggling industry.

“I saw this as a beacon of hope,” CEO Iggy Domagalisk said. “There were no real projects that were being announced, and to hear that this massive project was being led by a company that has a wonderful environmental record, [and] was going to be built in Alberta for Canada, I thought that was something spectacular.”

Domagalisk said the most “devastating” part is that it wasn’t the government that backed down, but the company behind it.

“To see not even the government cancel it, but the company itself pull out and say that, ‘We don’t believe that we can get this done,’ I think it sends a message to others that they likely think they can’t get it done either,” he said.

‘Investment craves certainty’

While Teck and its mine were seen by some as a “touchstone” for future oil and gas projects, Martin Olszynski, an associate professor with the University of Calgary’s Department of Environmental and Natural Resources Law, said the significance of the decision is being overplayed.

“How much value it has really depends on our politicians right now, and they should be mindful to not make it sound too gloomy because investors will respond to that as well,” Olszynski said.

The Frontier mine isn’t the first oilsands project to go through the regulatory process in the past 10 years and not come to fruition, Olszynski said; Shell’s Jackpine mine expansion and Total’s Joslyn North projects were both approved in the early 2010s and remain dormant.

Story continues below advertisement


READ MORE:
Teck Resources has abandoned its Frontier mine plan. Here are the factors being blamed

Olszynsky said the federal government’s current regulatory process — the Impact Assessment Act and the Canadian Energy Regulator Act, commonly known as Bill C-69 — “provides a benchmark and a guidepost” for potential investors to align their projects with.

“One of the things that investment craves is certainty,” he said.

Tweet This

In Teck’s letter to Wilkinson, Lindsay said that “the promise of Canada’s potential will not be realized until governments can reach agreement around how climate policy considerations will be addressed in the context of future responsible energy sector development.”

“Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very difficult to attract future investment, either domestic or foreign,” Lindsay said.






1:21
Teck Resources supports Canada’s climate change action: Trudeau


Teck Resources supports Canada’s climate change action: Trudeau

Olszynsky said the Alberta government’s environmental regulations are more ambiguous, leading to a policy “back-and-forth” that stood in Teck’s way.

“I do think that the work the federal government is doing right now actually is the work that Teck seems to be asking for. It says: ‘Show us how these projects are going to work within this broader system,’” he said.

Canada ‘struggling’ with getting major projects done

Tim McMillan, CEO of the Canadian Association of Petroleum Producers (CAPP) said Canada has “positioned ourselves as a country that has struggled to get major projects done,” citing the Northern Gateway and Energy East pipelines which were both cancelled after approvals because of policy inconsistencies across provincial lines.

Story continues below advertisement

“I think that puts a cloud over Canada in general,” McMillan said. “Today it’s over the oil and gas sector, but global investors have to look at Canada after announcements like this and ask, ‘Can we build anything here? Is Canada a jurisdiction that wants high-quality projects and capital investment?’

Tweet This

“It’s going to take some work to reposition ourselves for success next time around.”

McMillan said he believes the Frontier mine was viable and that the challenge came when it reached the political stage, adding that stakeholders need to “do some real thinking” about how to move forward with major projects.


READ MORE:
Teck project environmental deal reached between First Nation and Alberta government

“This is a major undertaking — a very large project in Canada,” he said.

“The communities have been involved in this right from the beginning; Indigenous communities have been involved and had support agreements that would see them benefit from this going forward. The science that goes into how the processes work has been under development for years.

“And to go through the joint review panel and the provincial and federal review agencies and have them say, ‘This is a good project and should be approved’ — this has cost over $1-billion and that now evaporates and becomes a writeoff on a balance sheet.”






2:01
Teck project environmental deal reached between First Nation and Alberta government


Teck project environmental deal reached between First Nation and Alberta government

Goldy Hyder with the Business Council of Canada said businesses want a “predictable regulatory regime” and that she believes Canada’s has become less consistent over the past 10 years, instead becoming “very politicized.”

Story continues below advertisement

“Canada has to have the ability to reconcile the environment and the economy,” she said.

“We need to address it and we need to address it together, and that means moving out from the extremes and into the middle to find common ground.

Tweet This

“What would help is if our governments… either get out of the way or make things clear in such a way that they don’t need to be in the process on an ongoing basis. We need to depoliticize our regulatory system.”

— with files from Global’s Adam MacVicar, Adam Toy, Maryan Shah and Mercedes Stephenson

© 2020 Global News, a division of Corus Entertainment Inc.

Let’s block ads! (Why?)



Source link

Business

RBC warns house price correction could be deepest in decades | CTV News – CTV News Toronto

Published

 on


A housing correction, which has already led to four consecutive months of price declines in the previously overheated Greater Toronto Area market, could end up becoming “one of the deepest of the past half a century,” a new report from RBC warns.

New data released by the Toronto Regional Real Estate Board (TRREB) last week revealed that the average benchmark price for a home in the GTA fell six per cent month-over-month in July to $1,074,754.

Sales were also down a staggering 47 per cent from July, 2021.

In a report published on Aug. 4, RBC Senior Economist Robert Hogue said recent data from real estate boards underlines that higher interest rates are beginning to take a “huge toll” on the market.

Hogue said that with further hikes to come, prices will likely continue to slide in the coming months.

That prediction, it should be noted, goes against a report from Royal LePage last month which painted a rosier forecast for sellers in which values would more or less holding for the rest of the year following some declines in the second quarter.

“Our expectations for further hikes by the Bank of Canada—another 75 basis points to go in the overnight rate by the fall— will keep chilling the market in the months ahead,” Hogue said. “We expect the downturn to intensify and spread further as buyers take a wait-and-see approach while ascertaining the impact of higher lending rates. Canada’s least affordable markets Vancouver and Toronto, and their surrounding regions, are most at risk in light of their excessively stretched affordability and outsized price gains during the pandemic.”

The Bank of Canada has hiked the overnight lending rate by 225 basis points since March and has warned that further hikes will be necessary given that inflation remains at a near 40-year high.

In his report, Hogue pointed out that the housing correction “now runs far and wide across Canada” but he said that it is particularly pronounced in the costlier markets of Toronto and Vancouver.

In fact, Hogue said that housing resale activity in Toronto is at its slowest pace in 13 years, outside of the early days of the COVID-19 pandemic.

The stockpile of available homes is also up 58 per cent from a year ago, he noted.

“With more options to choose from and higher interest rates shrinking their purchasing budgets, buyers are able to extract meaningful price concessions from sellers,” he said, pointing out that the average price of a home in the GTA is down 13 per cent from March. “We expect buyers to remain on the defensive in the months ahead as they deal with rising interest rates and poor affordability.”

While Hogue did say that condos in the City of Toronto are likely to remain “relatively more resilient” he said that prices elsewhere will continue to fall for the time being, especially in the 905 belt “where property values soared during the pandemic.”

The July data from TRREB suggested that the average price of a home in the GTA was still up one per cent from July, 2021.

Adblock test (Why?)



Source link

Continue Reading

Business

Commuters face GO transit cancellations, possible strike – CityNews

Published

 on


Adblock test (Why?)



Source link

Continue Reading

Business

Canada Revenue Agency plans email blitz to get Canadians to cash outstanding cheques worth $1.4-billion – The Globe and Mail

Published

 on


The Canada Revenue Agency (CRA) is planning a massive e-mail notification campaign to reach Canadians across the country who have uncashed cheques worth a net $1.4-billion.

The e-mail notifications will target recipients of the Canada child benefit and related provincial and territorial programs, as well as recipients of the GST/HST credits and the Alberta Energy Tax Refund.

The CRA said it plans to send approximately 25,000 e-mails in August, another 25,000 in November and a further 25,000 e-mails by May, 2023.

However, even without receiving an e-mail notification, the agency said a taxpayer can check if they have a cheque by logging into My Account, a secure portal on its website to check if they have an uncashed cheque over a period of six months. It added that representatives can also view uncashed cheques of their clients.

Each year, the CRA said it issues millions of payments to Canadian taxpayers in the form of refund benefits. These payments are issued by either direct deposit or by cheque.

“Over time, payments can remain uncashed for various reasons, such as the taxpayer misplacing the cheque or even a change of address which did not allow for delivery,” the agency said in a statement.

The CRA said since the e-mail notification initiative was first launched in February, 2020, about two million uncashed cheques valued at $802-million were redeemed by May 31, 2022.

The average amount per uncashed cheque is $158 with some of them dating as far back as 1998, the agency said.

As of May, 2022, there were an estimated 8.9 million uncashed cheques with the CRA. In May, 2019, about five million Canadians had an estimated 7.6 million uncashed cheques.

“As government cheques never expire or stale date, the CRA cannot void the original cheque and re-issue a new one unless requested by the taxpayer,” the statement read. “These upcoming e-notifications are to encourage taxpayers to cash any cheques they have in their possession.”

The agency said taxpayers can register for the direct deposit option on its website to receive payments directly into their bank accounts.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Adblock test (Why?)



Source link

Continue Reading

Trending