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Temporary boost to GST rebate appropriate amid high inflation: economists

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OTTAWA — The federal government’s newly announced inflation relief for lower-income Canadians through the GST rebate stacks up as a better policy than some of the cash payments issued by provinces, economists say.

After months of mounting political pressure from the NDP to help low- and modest-income Canadians facing a rising cost of living, the federal government officially announced on Tuesday it will double the GST rebate for six months.

Prime Minister Justin Trudeau also announced the federal government will expand eligibility for the one-time top-up of $500 for the Canada Housing Benefit available to renters.

Both were among a slate of measures the government intended to reveal last week, but the announcement was delayed after the death of Queen Elizabeth II.

Michael Smart, an economics professor at the University of Toronto and the co-director of the Finances of the Nation project, said it makes sense to boost the GST rebate to reflect inflation.

“If we promised people in the past that we’re going to give them some support, that amount that we promise should be inflation-adjusted,” Smart said.

The federal government indexes benefits to inflation, but because of a lag in how that is calculated, benefits in 2022 will rise by 2.4 per cent, well below the current inflation rate. In July, the year-over-year inflation rate was 7.6 per cent.

This one-time adjustment provides a temporary fix, Smart said, but a permanent change in how indexation is calculated is necessary.

“There should be a permanent adjustment to the formula (to) make it more responsive to inflation from year to year than it is right now,” he said.

The GST rebate is a means-tested benefit that is phased out based on income and family makeup. For example, the rebate is fully phased out for an individual with no children who makes about $49,200 a year, and at about $58,500 for a couple with two children.

Current recipients of the rebate can expect to receive a lump-sum payment before the end of the year.

Lindsay Tedds, an associate professor of economics at the University of Calgary, said while the new relief is not poorly targeted, it is poorly timed, given that people won’t receive the help until later this year.

“It’s not helping people in real time afford their bills,” Tedds said.

The inflation relief was foreshadowed by former parliamentary budget officer Kevin Page, who earlier this year said the federal government would face mounting pressure coming into the fall to provide help to low-income Canadians.

The federal government, however, is far from being the only government to succumb to this political pressure. Nearly all provincial governments have introduced policies that send aid to Canadians dealing with historically high inflation.

Saskatchewan is giving $500 to all adult residents, for example, while other provinces have sent money to residents below a certain income threshold. In Ontario and Alberta, gas taxes were temporarily slashed.

Economists often caution against providing direct payments to people amid high inflation, especially when sent out indiscriminately, over concern it could feed into even higher prices.

Tedds said any kind of support should aim to maintain consumption levels of low-income Canadians rather than fuel higher consumption.

“(The GST rebate) is targeted to low-income individuals, who are probably the ones most unable to dip into savings or other things to pay for these increased costs. So, it’s unlikely to fuel inflation,” she said.

Smart said some of the measures introduced by the provinces have been politically rather than economically driven.

“There is no need to hand out cash cheques to middle-class Canadians,” he said.

Smart said giving cash to people and raising the deficit will be counterproductive as the Bank of Canada works on reducing inflation through higher interest rates.

As government revenues rise, governments should resist the urge to send that money back out to people, he said.

“We’re all bearing the brunt of inflation. And it’s unfortunate, but what the government — what we all need to do now is get focused on reducing inflation.”

This report by The Canadian Press was first published Sept. 14, 2022.

 

Nojoud Al Mallees, The Canadian Press

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Motorcycle rider dead in crash that closed Highway 1 in Langley, B.C., for hours

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LANGLEY, B.C. – Police in Langley, B.C., say one person is dead in a crash between a car and a motorcycle on Highway 1 that shut down the route for hours.

Mounties say their initial investigation indicates both vehicles were travelling east when they collided shortly before 4:20 a.m. near 240 Street on the highway.

The motorcycle rider died from their injuries.

Highway 1 was closed for a long stretch through Langley for about 11 hours while police investigated.

RCMP say their integrated collision analysis reconstruction team went to the scene.

The Mounties are asking anyone who witnessed the crash or who may have dash-camera footage from the area to call them.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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‘She is dying’: Lawsuit asks Lake Winnipeg to be legally defined as a person

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WINNIPEG – A court has been asked to declare Lake Winnipeg a person with constitutional rights to life, liberty and security of person in a case that may go further than any other in trying to establish the rights of nature in Canada.

“It really is that simple,” said Grand Chief Jerry Daniels of the Manitoba Southern Chiefs’ Organization, which filed the suit Thursday in Court of King’s Bench in Winnipeg.

“The lake has its own rights. The lake is a living being.”

The argument is being used to help force the provincial government to conduct an environmental assessment of how Manitoba Hydro regulates lake levels for power generation. Those licences come up for renewal in August 2026, and the chiefs argue that the process under which those licences were granted was outdated and inadequate.

They quote Manitoba’s Clean Environment Commission, which said in 2015 that the licences were granted on the basis of poor science, poor consultation and poor public accountability.

Meanwhile, the statement of claim says “the (plaintiffs) describe the lake’s current state as being so sick that she is dying.”

It describes a long list of symptoms.

Fish species have disappeared, declined, migrated or become sick and inedible, the lawsuit says. Birds and wildlife including muskrat, beavers, duck, geese, eagles and gulls are vanishing from the lake’s wetlands.

Foods and traditional medicines — weekay, bulrush, cattail, sturgeon and wild rice — are getting harder to find, the document says, and algae blooms and E. coli bacteria levels have increased.

Invasive species including zebra mussels and spiny water fleas are now common, the document says.

“In Anishinaabemowin, the (plaintiffs) refer to the water in Lake Winnipeg as moowaakamiim (the water is full of feces) or wiinaagamin (the water is polluted, dirty and full of garbage),” the lawsuit says.

It blames many of the problems on Manitoba Hydro’s management of the lake waters to prevent it flushing itself clean every year.

“She is unable to go through her natural cleansing cycle and becomes stagnant and struggles to sustain other beings like animals, birds, fish, plants and people,” the document says.

The defendants, Manitoba Hydro and the provincial government, have not filed statements of defence. Both declined to comment on the lawsuit.

Daniels said it makes sense to consider the vast lake — one of the world’s largest — as alive.

“We’re living in an era of reconciliation, there’s huge changes in the mindsets of regular Canadians and science has caught up a lot in understanding. It’s not a huge stretch to understand the lake as a living entity.”

The idea has been around in western science since the 1970s. The Gaia hypothesis, which remains highly disputed, proposed the Earth is a single organism with its own feedback loops that regulate conditions and keep them favourable to life.

The courts already recognize non-human entities such as corporations as persons.

Personhood has also been claimed for two Canadian rivers.

Quebec’s Innu First Nation have claimed that status for the Magpie River, and the Athabasca Chipewyan First Nation in Alberta is seeking standing for the Athabasca River in regulatory hearings. The Magpie’s status hasn’t been tested in court and Alberta’s energy regulator has yet to rule on the Athabasca.

Matt Hulse, a lawyer who argued the Athabasca River should be treated as a person, noted the Manitoba lawsuit quotes the use of “everyone” in the Charter of Rights and Freedoms.

“The term ‘everyone’ isn’t defined, which could help (the chiefs),” he said.

But the Charter typically focuses on individual rights, Hulse added.

“What they’re asking for is substantive rights to be given to a lake. What does ‘liberty’ mean to a lake?

“Those kinds of cases require a bit of a paradigm shift. I think the Southern Chiefs Organization will face an uphill battle.”

Hulse said the Manitoba case goes further than any he’s aware of in seeking legal rights for a specific environment.

Daniels said he believes the courts and Canadians are ready to recognize humans are not separate from the world in which they live and that the law should recognize that.

“We need to understand our lakes and our environment as something we have to live in cohesion with.”

This report by The Canadian Press was first published Sept. 19, 2024.

— By Bob Weber in Edmonton



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MPs want Canadians tied to alleged Russian influencer op to testify at committee

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OTTAWA – MPs on the public safety and national security committee voted unanimously to launch an investigation into an alleged Russian ploy to dupe right-wing influencers into sowing division among Americans.

A U.S. indictment filed earlier this month charged two employees of RT, a Russian state-controlled media outlet, in a US$10-million scheme that purportedly used social media personalities to distribute content with Russian government messaging.

While not explicitly mentioned in court documents, the details match up with Tenet Media, founded by Canadian Lauren Chen and Liam Donovan, who is identified as her husband on social media.

The committee will invite Chen and Donovan to testify on the matter, as well as Lauren Southern, who is among the Tenet cast of personalities.

The motion, which was brought forward by Liberal MP Pam Damoff and passed on Thursday, also seeks to invite civil society representatives and disinformation experts on the matter.

Court documents allege the Russians created a fake investor who provided money to the social media company to hire the influencers, paying the founders significant fees, including through a company account in Canada.

The U.S. Justice Department doesn’t allege any wrongdoing by the influencers.

Following the indictment, YouTube removed several channels associated with Chen, including the Tenet Media channel.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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