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Trudeau government unveils plans to cut $500 million in spending

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Prime Minister Justin Trudeau’s government unveiled details of its plan to cut $500 million from government spending Thursday — and not all departments are going to be feeling the same impacts.

While some agencies like the Canadian Space Agency and the Invest in Canada Hub will see more than one per cent of their spending frozen and returned to government coffers, 61 departments and agencies don’t appear on the list of government bodies taking cuts.

The government said the cost-cutting initiative excluded agents of Parliament and small organizations with budgets under $25 million a year. But many of those not included on the list of organizations affected — such as the Canadian Air Transport Security Authority, the Canadian Security Intelligence Service and the National Capital Commission — have budgets much higher than $25 million.

While the government is freezing roughly 0.2 per cent of the budgets for some national museums — like the Canadian Museum of Nature and the Canadian Museum for Human Rights — the National Museum of Science and Technology, which spends $39.5 million a year, doesn’t appear on the list of affected institutions.

Of the government departments that do appear on the list, the Department of Finance is taking the smallest hit, with only $827,000 of its $118 billion budget cut — about 0.0007 percent of its estimates.

In the 2023 budget, released in April, Finance Minister Chrystia Freeland said promised reductions in government spending would “represent savings of $15.4 billion over the next five years.”

Deputy Prime Minister and Minister of Finance Chrystia Freeland pushes her hair out of her face during a news conference, Tuesday, November 7, 2023 in Ottawa.
Minister of Finance Chrystia Freeland’s own department took the smallest cut. (Adrian Wyld/The Canadian Press)

In dollar terms, the Department of National Defence (DND) is losing the most money — $211.1 million of the total $500 million cut. That works out to roughly 0.76 per cent of its $27.5 billion spending estimate.

The government’s supplementary estimates, meanwhile, give DND an additional one-time transfer of $1.5 billion — $500 million of it for military aid to Ukraine.

The Treasury Board acknowledged in documents that the impact of the cuts could vary from one department to another.

“Ministers and their departments were given the flexibility to reduce spending across their portfolios,” the department wrote. “As a result, spending reductions may vary among portfolio organizations.”

“This is just the first tranche of the results relating to our spending review,” Treasury Board President Anita Anand told reporters on her way into question period.

“You are going to see additional examples of departments coming forward and it won’t always, in the separate tranches, be precisely equal. But generally speaking, the exercise is for each department to take a look within their departments — not to take all of it from operating budgets, but to look across their spend to see where savings can be had.”

The government has for months touted its plan to rein in spending, trim travel costs and cut the sums spent on professional services by outside contractors. The government also has promised to reduce spending on operations and transfer payments.

On Thursday, Anand tabled supplementary estimates in the House of Commons which include a cut of $500 million to the government’s $443 billion spending estimates.

In the documents made public, the government said the affected departments and organizations would not be able to spend the frozen portions of their budgets, which make up the $500 million that will lapse back to general government revenue at the end of the fiscal year in March.

Anand told reporters that $350 million of the spending cuts will affect outsourcing and contractors. Travel costs are to drop by $150 million.

The government says it wants to see spending on professional services and travel drop by $7.1 billion, and spending on operations and transfer payments drop by $7 billion, over the next five years.

Treasury Board said it worked with departments to identify sustainable spending reductions.

“Departments were asked to review programming and operations to identify where there might be duplication, lower value for money, or misalignment with government priorities,” it wrote. “Proposed reductions identified through these reviews were then submitted to TBS (Treasury Board) for consideration.”

Proposals that required more scrutiny were reviewed by a committee of cabinet ministers, it said.

While this round focused on external contractors and travel, further rounds will look at other types of spending, Anand said.

“You will see in future iterations of our results that there will be additional items that we will table, and then again, it won’t be exactly the same across 68 departments,” she said.

 

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick’s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Rent cap loophole? Halifax-area landlords defend use of fixed-term leases

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HALIFAX – Some Halifax-area landlords say fixed-term leases allow property owners to recoup operating costs they otherwise can’t under Nova Scotia’s rent cap.

Their comments to a legislative committee today are in reaction to plans by the government to extend the five per cent cap on rental increases to the end of 2027.

But opposition parties and housing activists say the bill’s failure to address fixed-term leases has created a loophole that allows large corporate landlords to boost rents past five per cent for new tenants.

But smaller landlords told a committee today that they too benefit from fixed-term leases, which they said help them from losing money on their investment.

Jenna Ross, of Halifax-based Happy Place Property Management, says her company started implementing those types of leases “because of the rent cap.”

Landlord Yarviv Gadish called the use of fixed-term leases “absolutely essential” in order to keep his apartments presentable and to get a return on his investment.

Unlike a periodic lease, a fixed-term lease does not automatically renew beyond its set end date. The provincial rent cap covers periodic leases and situations in which a landlord signs a new fixed-term lease with the same tenant.

However, there is no rule preventing a landlord from raising the rent as much as they want after the term of a fixed lease expires — as long as they lease to someone new.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Former military leader Haydn Edmundson found not guilty of sexual assault

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OTTAWA – Former vice-admiral Haydn Edmundson has been found not guilty of sexual assault and committing an indecent act, concluding a trial that began in February.

Edmundson was head of the military’s personnel in 2021 when he was accused of assaulting another member of the navy during a 1991 deployment.

The complainant, Stephanie Viau, testified during the trial that she was 19 years old and in the navy’s lowest rank at the time of the alleged assault, while Edmundson was an older officer.

Edmundson pleaded not guilty and testified that he never had sexual contact with Viau.

In court on Monday, a small group of his supporters gasped when the verdict was read, and Edmundson shook his lawyer’s hand.

Outside court, lawyer Brian Greenspan said his client was gratified by the “clear, decisive vindication of his steadfast position that he was not guilty of these false accusations.”

Justice Matthew Webber read his entire decision to the court Monday, concluding that the Crown did not meet the standard of proving its case beyond a reasonable doubt.

He cited concerns with the complainant’s memory of what happened more than 30 years ago, and a lack of evidence to corroborate her account.

“There are just too many problems, and I’m not in the business of … declaring what happened. That’s not my job, you know, my job is to just decide whether or not guilt has been proven to the requisite standard, and it hasn’t,” Webber said.

During the trial, Viau testified that one of her responsibilities on board the ship was to wake officers for night watch and other overnight duties, and that she woke Edmundson regularly during that 1991 deployment.

The court has heard conflicting evidence about the wake-up calls.

Viau estimated that she woke Edmundson every second or third night, and she told the court that his behaviour became progressively worse during the deployment.

She testified that he started sleeping naked and that one night she found him completely exposed on top of the sheets.

Viau said she “went berserk,” yelling at him and turning on the lights to wake the other officer sleeping in the top bunk.

That incident was the basis for the indecent act charge.

Webber said he did not believe that Viau could have caused such a disruption on board a navy ship at night without notice from others.

“I conclude that (Viau’s) overall evidence on the allegation that Mr. Edmundson did progressively expose himself to her as being far too compromised to approach proof of those allegations that she has made,” he said in his decision.

Viau alleged that the sexual assault happened a couple of days after her yelling at Edmundson.

She testified at trial that he stopped her in the corridor and called her into his sleeping quarters to talk. Viau said Edmundson kept her from leaving the room, and he sexually assaulted her.

When Edmundson took the stand in his own defence he denied having physical or sexual contact with Viau.

During his testimony, Edmundson also said Viau did not wake him regularly during that deployment because his role as the ship’s navigator kept him on mostly day shifts.

Defence lawyer Brian Greenspan took aim at the Crown’s corroborating witness during cross-examination. The woman, whose name is protected by a court-ordered publication ban, was a friend of Viau’s on the ship.

She testified that she remembered the evening of the assault because she and Viau had been getting ready for a night out during a port visit, and she misplaced her reading glasses. She said Viau offered to go fetch them from another part of the ship but never came back, and that she went looking for her friend.

On cross-examination, the woman explained that she had told all of this to a CBC reporter in early 2021.

Greenspan produced a transcript of that interview that he said suggests the reporter told her key details of Viau’s story before asking her any questions.

Greenspan argued the reporter provided information to the witness and she wouldn’t have been able to corroborate the story otherwise.

In his decision, Webber said the woman’s evidence “cannot be relied upon in any respect to corroborate that evidence of the complainant, because it’s it’s clearly a tainted recollection, doesn’t represent a real memory.”

Edmundson was one of several senior military leaders accused of sexual misconduct in early 2021.

He stepped down from his position as head of military personnel after the accusation against him was made public in 2021. The charges were laid months later, in December 2021.

Edmundson testified that in February 2022, he was directed by the chief of the defence staff to retire from the Armed Forces.

The crisis led to an external review by former Supreme Court justice Louise Arbour in May 2022, whose report called for sweeping changes to reform the toxic culture of the Armed Forces.

The military’s new defence chief, Gen. Jennie Carignan, was promoted to the newly created role of chief of professional conduct and culture in an effort to enact the reforms in the Arbour report.

Outside court, Edmundson declined to comment on whether he was considering legal action against the government or the military.

This report by The Canadian Press was first published Sept. 16, 2024.



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