These companies got Ontario taxpayer money for tourism losses during pandemic

OTTAWA – Members of Parliament studying the federal government’s decision to buy a $9-million luxury condo in Manhattan are preparing to recall Canada’s consul general in New York to answer more questions about his involvement in the purchase.

The Conservatives put forward a motion on Tuesday to have Tom Clark return to the House operations committee. The move was supported by other opposition parties after new information emerged that contradicted his previous testimony.

Clark told the committee in September he had no role whatsoever in the purchase of the new condo, or the sale of the previous residence.

But reporting from Politico on Tuesday indicated Clark raised concerns about the old unit two months after he was appointed to his role as Canada’s representative in New York.

Politico cited documents obtained through access-to-information, which were then shared with other media by the Conservative party.

A May 2023 report from Global Affairs Canada indicates Clark informed government officials the residence needed to be replaced.

“The current (consul general in New York, head of mission) expressed concerns regarding the completion of the … kitchen and refurbishment project and indicated the unit was not suitable to be the (consul general’s) accommodations,” the report reads.

“It does not have an ideal floor plan for (consul general in New York) representational activities.”

The final call on whether Clark will face further questions has not been made, however, because the committee adjourned before the motion went to a vote. The committee’s next meeting is next week.

Tuesday’s meeting featured Foreign Affairs Minister Mélanie Joly as a witness, and she faced questions about Clark’s involvement in the purchase.

“This was not a political decision because this was an operational decision,” Joly told the committee in a testy exchange with Conservative MP Michael Barrett.

“(The committee) had numerous people, officials of mine, that came to see you and said that. So, these are the facts.”

Joly later told the committee she only learned of the decision to purchase a new residence through media reports, even though her chief of staff was notified weeks earlier.

“The department informed my chief of staff once the decision was taken. Because, of course, it was not a political decision,” Joly said.

Shortly before Joly was excused, Conservative MP Stephanie Kusie put forward the motion to recall Clark for two more hours to answer more questions.

Bloc MP Julie Vignola proposed instead to have him testify for only one hour — indicating she would support the motion with that change.

“One hour is more than enough to know whether he lied to us,” Vignola told her colleagues in French.

NDP MP Taylor Bachrach also said he would support the move, given the contrast between the new report and Clark’s testimony about whether he spoke to anyone about a desire to move into a new residence.

“What really irks me is the consul general was so clear in response to repeated questioning at committee,” Bachrach said.

“Mr. Clark said, ‘Never.’ One-word answer, ‘Never.’ You can’t get more unequivocal than that.”

The Liberal government has argued that buying the new residence will save Canadians taxpayers millions of dollars and reduce ongoing maintenance costs and property taxes while supporting future program needs for the consul general.

The former official residence is listed for sale at $13 million, but has yet to be sold.

In her remarks Tuesday, Joly told the committee other like-minded countries have paid more for their Manhattan residences than Canada has — including $11 million for the U.K., and France’s $19 million purchase in 2015.

Joly said among the countries that have residences in New York, only Afghanistan and Bangladesh were not located in Manhattan.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.

TORONTO – An Ontario judge says any outstanding issues regarding a proposed $32.5 billion settlement between three major tobacco companies and their creditors should be solvable in the coming months.

Ontario Superior Court Chief Justice Geoffrey Morawetz has released his reasons for approving a motion last week to have representatives for creditors review and vote on the proposal in December.

One of the companies, JTI-Macdonald Corp., said last week it objects to the plan in its current form and asked the court to postpone scheduling the vote until several issues were resolved.

The other two companies, Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd., didn’t oppose the motion but said they retained the right to contest the proposed plan down the line.

The proposal announced last month includes $24 billion for provinces and territories seeking to recover smoking-related health-care costs and about $6 billion for smokers across Canada and their loved ones.

If the proposed deal is accepted by a majority of creditors, it will then move on to the next step: a hearing to obtain the approval of the court, tentatively scheduled for early next year.

In a written decision released Monday, Morawetz said it was clear that not all issues had been resolved at this stage of the proceedings.

He pointed to “outstanding issues” between the companies regarding their respective shares of the total payout, as well as debate over the creditor status of one of JTI-Macdonald’s affiliate companies.

In order to have creditors vote on a proposal, the court must be satisfied the plan isn’t “doomed to fail” either at the creditors or court approval stages, court heard last week.

Lawyers representing plaintiffs in two Quebec class actions, those representing smokers in the rest of Canada, and 10 out of 13 provinces and territories have expressed their support for the proposal, the judge wrote in his ruling.

While JTI-Macdonald said its concerns have not been addressed, the company’s lawyer “acknowledged that the issues were solvable,” Morawetz wrote.

“At this stage, I am unable to conclude that the plans are doomed to fail,” he said.

“There are a number of outstanding issues as between the parties, but there are no issues that, in my view, cannot be solved,” he said.

The proposed settlement is the culmination of more than five years of negotiations in what Morawetz has called one of “the most complex insolvency proceedings in Canadian history.”

The companies sought creditor protection in Ontario in 2019 after Quebec’s top court upheld a landmark ruling ordering them to pay about $15 billion to plaintiffs in two class-action lawsuits.

All legal proceedings against the companies, including lawsuits filed by provincial governments, have been paused during the negotiations. That order has now been extended until the end of January 2025.

In total, the companies faced claims of more than $1 trillion, court documents show.

In October of last year, the court instructed the mediator in the case, former Chief Justice of Ontario Warren Winkler, and the monitors appointed to each company to develop a proposed plan for a global settlement, with input from the companies and creditors.

A year later, they proposed a plan that would involve upfront payments as well as annual ones based on the companies’ net after-tax income and any tax refunds, court documents show.

The monitors estimate it would take the companies about 20 years to pay the entire amount, the documents show.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.

OTTAWA – The Federal Court of Appeal has dismissed a bid by the Prince Edward Island Potato Board to overturn a 2021 decision by the federal agriculture minister to declare the entire province as “a place infested with potato wart.”

That order prohibited the export of seed potatoes from the Island to prevent the spread of the soil-borne fungus, which deforms potatoes and makes them impossible to sell.

The board had argued in Federal Court that the decision was unreasonable because there was insufficient evidence to establish that P.E.I. was infested with the fungus.

In April 2023, the Federal Court dismissed the board’s application for a judicial review, saying the order was reasonable because the Canadian Food Inspection Agency said regulatory measures had failed to prevent the transmission of potato wart to unregulated fields.

On Tuesday, the Appeal Court dismissed the board’s appeal, saying the lower court had selected the correct reasonableness standard to review the minister’s order.

As well, it found the lower court was correct in accepting the minister’s view that the province was “infested” because the department had detected potato wart on 35 occasions in P.E.I.’s three counties since 2000.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.