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VW CEO says EV battery plant planned for Ontario could become one of the world’s largest

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A massive new electric vehicle battery plant in St. Thomas, Ont., is being hailed as a “game changer” for Canada’s auto sector and broader economy, as countries fight to secure investment in clean technologies.

Details of the multibillion-dollar project were announced on Friday at an official welcoming for German automaker Volkswagen to Canada to build what they say could be the largest EV battery plant in the world.

The plant in the southwestern Ontario city is expected to employ up to 3,000 people and create thousands of spinoff jobs. Volkswagen is investing $7 billion to build the plant, according to the Prime Minister’s Office.

The plant will be VW’s largest in North America and has the potential to be the largest VW plant in the world, said Frank Blome, the CEO of PowerCo, the Volkswagen subsidiary that makes batteries for electric vehicles.

“St. Thomas was the capital for trains and Volkswagen is the capital for automotive, so we fit well together,” Blome said on Friday. “Congratulations on outperforming the competition and bringing this factory to St. Thomas.”

The plant will have six production lines and make enough batteries for one million cars every year. VW has plans to make 25 new electric vehicle models in the coming decades, and most of their batteries will come from St. Thomas, Blome said.

Prime Minister Justin Trudeau credited Canadian workers for the largest auto deal in the country’s history and one of the largest industrial parks in all of North America.

Ontario Premier Doug Ford says politics took a back seat in order for federal and provincial officials to land the investment from Volkswagen. (Kate Dubinski/CBC)

“This deal is about workers. It will be worth $200 billion to the Canadian economy over the coming decade,” Trudeau said. He acknowledged that Conservative Leader Pierre Poilievre has come out against the deal, saying the $13 billion in federal subsidies is too much.

“Cleaner environment, a stronger, healthier happier workforce, partnerships with Indigenous peoples, that is how we build a strong economy of the future,” Trudeau said. “Mr Poilievre has said this is a waste of money…. Canada is about building a stronger future for the middle class and their children.”

Trudeau says the project will create up to 30,000 indirect or spinoff jobs.

The federal government agreed to give Volkswagen up to $13 billion in subsidies over the next decade, part of a deal to lure the company to build its first North American electric vehicle battery plant in southern Ontario.

“This is the largest auto investment in the province’s history. It’s a complete turnaround of the auto sector in three years. We’re back. Ontario is back,” said Vic Fedeli, the province’s minister of economic development, job creation and trade.

‘This is the future of our community’

Local business leaders also welcomed the investment. “This plant will dramatically shift the direction of where this community is going,” said Sean Dyke, CEO of the St. Thomas Economic Development Corporation.

“This is the future of our community.”

On top of the billions from Ottawa, Ontario will pay $500 million in “direct incentives” to VW. The province will also invest new funds in St. Thomas and surrounding communities.

Ontario Premier Doug Ford praised the deal and said it was important to put political differences aside to bring investment to the province.

A licence plate on a yellow VW reads, ‘St. Thomas Proud,’ at the unveiling of plans to build an EV battery plant in the southwestern Ontario city. (Kate Dubinski/CBC)

“The cars of the future will be made here in Ontario from start to finish, from the minerals in northern Ontario to the batteries here in St. Thomas, and they’ll be made by Ontario workers,” Ford said.

“We are revitalizing Ontario’s auto sector and making Ontario the auto powerhouse of North America.”

The announcement took place at the Elgin County Railway Museum, with vintage train cars looming over the politicians and executives.

Outside, striking Public Service Alliance of Canada members could be heard chanting as Trudeau praised the workers who will work in the plant.

“Canada has the advantage because of the workers themselves, people who know how to deliver exactly what the world wants,” the prime minister said.

 

VW deal a ‘game changer’ for Canada: Champagne

 

Innovation Minister François-Philippe Champagne says the $13-billion deal with the automaker is going to bring more jobs to St. Thomas, Ont., and represents a ‘generational opportunity.’

“This is more than a gigafactory. It’s an understanding that the future is going to be strong and bring for the people here and the people across the country.”

The plan is for the federal government to provide annual production subsidies to the German automaker and kick in funds for the massive factory in St. Thomas, which is estimated to be the size of 391 football fields, making it the largest factory in Canada.

‘We need to attract industry’

Billions in taxpayer dollars for a profitable automaker like Volkswagen doesn’t make sense at first glance, said one international business expert.

But it does once you consider that Canada is up against the United States’ Inflation Reduction Act, which offers billions in subsidies to companies to build south of the border, said Andreas Schotter, a professor of international strategy at the Ivey School of Business at Western University in London, Ont., and a former marketing sales controller for North America at Volkswagen.

 

Volkswagen to build EV battery plant in Ontario

 

Volkswagen has announced it’s building a major electric vehicle battery factory in St. Thomas, Ont. Slated to open in 2027, the factory is the first of its kind in Canada.

“That Inflation Reduction Act has really pushed up the need to open the pockets wider for attracting investments in green technology and battery plants. Otherwise, the plant would have been put in the United States or Mexico, but likely the U.S.,” he said.

“We need to attract industry,” Schotter said.

“Volkswagen is a global player. Attracting this plant here, from a Canadian perspective, makes sense. Price tag? You pay the price and you get them.”

 

Afternoon Drive6:12Agricultural Cost of a Volkswagen EV Plant

As the saying goes, once agricultural land is lost….it’s gone forever. This week we learned about 1,500 acres of land in St. Thomas, is slotted for industrial investment. Afternoon Drive Host Allison Devereaux spoke to Crispin Colvin, a Vice President from the Ontario Federation of Agriculture.

Bloomberg News first reported the federal subsidy amount. Sources with knowledge of the deal have confirmed the details of the contract with CBC News.

According to details of the deal, federal production support for the plant is expected to range from $8 billion to $13 billion over 10 years. Ottawa is also offering about $700 million in capital expense grants to Volkswagen through its Strategic Innovation Fund.

“This is a game changer for our nation,” Innovation Minister François-Philippe Champagne said, while fielding questions from reporters on Thursday.

 

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B.C. election down to absentee votes as mail-in tally fails to decide closest races

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VICTORIA – The result of British Columbia’s election will come down to the wire on Monday when absentee ballots are counted after a tally of mail-in votes failed to resolve a handful of undecided races.

The provincewide count of late mail-ins is continuing, but the tally of those votes has been completed in the closest races without any shift in the party standings.

Prospects for an NDP government increased on Saturday after the party widened leads in some close races thanks to mail-in ballots and cut back B.C. Conservative margins in others.

The closest undecided riding in the province is Surrey-Guildford, where the NDP has cut the Conservative lead to 12 votes.

With an estimated 226 absentee and special votes still to be counted, Surrey-Guildford could provide David Eby’s NDP with the narrowest of majorities if the lead there flips on Monday.

Elections BC says the tally of more than 22,000 absentee and special votes will be updated hourly on its website from 9 a.m. Monday.

The NDP is elected or leading in 46 seats and John Rustad’s Conservatives in 45, both short of a 47-seat majority, while the Greens could hold the balance of power with two seats.

Recounts are also underway in two ridings where the New Democrats held slim leads after the initial count in the still-undecided Oct. 19 vote.

Elections BC says the results of recounts in Juan de Fuca-Malahat on Vancouver Island and Surrey City Centre that began at 1 p.m. Sunday will be posted online when they are complete.

The Surrey result was expected Sunday, with the Juan de Fuca-Malahat result slated for Monday.

The recounts were triggered because margins of victory after the initial tally were below 100 votes. Counting of mail-in ballots on Saturday widened the NDP lead in Juan de Fuca-Malahat to 106 votes, while the party now leads by 178 in Surrey City Centre.

The provincewide count of mail-in votes was scheduled to finish Sunday.

Meanwhile, Chief Clarence Louie, Tribal Chair of the Syilx Okanagan Nation, issued a statement on Sunday calling for the B.C. Conservative candidate in Juan de Fuca-Malahat to be removed from the party over comments about Indigenous people.

On Friday, the Vancouver Sun published a recording in which a person it identifies as Marina Sapozhnikov calls First Nations people “savages.” The newspaper says the comments came during an election-night conversation with a journalism student.

Louie called the reported comments “abhorrent and racist.”

“These ignorant and hateful comments, which constitute a form of hate speech, have no place in our society. We call on B.C. Conservative Leader, John Rustad, to immediately take a clear and strong stand against hate and racism by removing her from his political party,” Louie said.

Rustad has issued a statement saying he was “appalled and deeply saddened” by the comments and the party is “taking this matter seriously.”

While the makeup of the 93-riding legislature could finally become clear on Monday, judicial recounts could still take place after that if the margin in a riding is less than 1/500th of all votes cast.

In another close race that will come down to absentee ballots, the Conservatives hold a 72-vote lead in Kelowna Centre, where there are an estimated 228 votes left to count.

This report by The Canadian Press was first published Oct. 27, 2024.

The Canadian Press. All rights reserved.



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Frozen waffles from Whole Foods join Canadian recall list over listeria concerns

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OTTAWA – Whole Foods Market is joining the growing list of brands whose frozen waffles have been recalled in Canada this week because of possible listeria contamination.

The Canadian Food Inspection Agency says the newest recall spans the Amazon-owned grocer’s organic homestyle and blueberry waffles sold under the 365 Whole Foods Market label.

The agency says the waffles recalled by Horizon Distributors Ltd. were sold in British Columbia, but may have also made their way to other provinces and territories.

It adds there have been no reported illnesses associated with the waffles, but the agency is conducting a food safety investigation, which it says may lead to the recall of other products.

Dozens of frozen waffles from brands like Compliments, Great Value, Duncan Hines and No Name were recalled earlier in the week over similar listeria concerns.

Food contaminated with Listeria monocytogenes may not look or smell spoiled but can cause vomiting, nausea, persistent fever, muscle aches, severe headache and neck stiffness.

This report by The Canadian Press was first published Oct. 26, 2024.

The Canadian Press. All rights reserved.



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People with disabilities ask feds to restore ‘hope’ and raise benefit amount

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TORONTO – Heather Thompson would love to work.

The 26-year-old dreams of going back to university to study politics and environmental science, and ultimately pursue a career to “try and make things better” in society.

“I’m not the person I want to be yet and I want to be able to achieve certain goals and be a well-rounded, well developed person. But I’m prevented from doing that because I live in legislated poverty,” they said.

Thompson is one of 600,000 working-age Canadians with disabilities that the federal government said it would help lift out of poverty with the Canada Disability Benefit, which takes effect next July. The program is meant as a top-up to existing provincial and territorial income supports.

“We had huge expectations and we had all this hope, like finally we can escape poverty,” Thompson said.

But after last spring’s federal budget revealed that the maximum people will receive per month is $200, the hopes of people like Thompson were dashed. Now, advocates are asking the federal government to reconsider the amount in the months before the benefit rolls out.

Thompson, who uses they/them pronouns, has worked at Tim Horton’s, Staples and a call centre, but said their physical and mental disabilities — including osteoarthritis, which “heavily impacts” their mobility, along with clinical depression and generalized anxiety disorder — have forced them to leave.

They look for jobs, but many require the ability to lift or stand for long periods, which they can’t do. So Thompson lives on $1,449 a month from the Ontario Disability Support Program (ODSP) and shares a house with three roommates in Kingston, Ont., along with Thompson’s 12-year-old emotional support cat, Captain Kirk.

Thompson went to university in 2017, but their mental health issues flared and they had to leave after a semester. Seven years later, they’re still trying to pay that student loan back.

When Bill C-22, which mandated the creation of a Canada Disability Benefit, was passed into law last year, Thompson was “so excited.”

A news release issued by the federal government on June 22, 2023 called the legislation “groundbreaking,” saying the disability benefit would “supplement existing federal and provincial/territorial disability supports, and will help lift working-age persons with disabilities out of poverty.”

It said the benefit would be part of the government’s “disability inclusion action plan” that would “address longstanding inequities that have led to the financial insecurity and exclusion” experienced by people with disabilities.

The government simply hasn’t lived up to its promise, said Amanda MacKenzie, national director of external affairs for March of Dimes Canada, one of the organizations that supported the creation of the benefit.

Now that a public consultation period on the benefit ended last month, she is hoping the government will reconsider and increase the benefit amount in its next budget.

”These are people that are living well under the $30,000 a year mark, for the most part,” MacKenzie said.

“These are the people that you hear about all the time that are saying, ‘I can only have two or one meal a day. I can only afford to take my medication every other day … I can’t support my kids. I can’t help my family. I can’t do anything because you know, I can barely pay my rent,'” she said.

March of Dimes Canada and many people with disabilities all participated in early government consultations about how the federal benefit could be effective in topping up provincial disability support programs to provide a livable income.

”Who were they listening to?” asked Thomas Cheesman, a 43-year-old in Grande Prairie, Alta., receiving provincial disability benefits due to a rare disorder that causes his bones to break down.

“Not one single disabled person would say that this is an adequate program,” he said.

Cheesman was born with Hajdu-Cheney Syndrome and knew he wouldn’t be able to work as long as most people, but managed to work as a chef until he was 39.

At that point, his physical symptoms became so debilitating he had to stop.

“It was just too dangerous between either taking medications to handle pain and being distracted from that, or not being able to function because of the pain,” he said.

Cheesman and his wife, who works as a supervisor at Costco, have three children. Before the Canada Disability Benefit became law, he “did a lot of math” and calculated it would need to total almost $1,000 a month for his family “to have a life outside of poverty.”

In an emailed response to The Canadian Press, the office of Kamal Khera, minister of diversity, inclusion and persons with disabilities, said it was making a $6.1-billion investment “to improve the financial security of over 600,000 persons with disabilities.”

“This is a historic initial investment … and is intended to supplement, not replace, existing provincial and territorial income support measures,” said Khera’s press secretary, Waleed Saleem.

“We also aspire to see the combined amount of federal and provincial or territorial income supports for persons with disabilities grow to the level of Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), to fundamentally address the rates of poverty experienced by persons with disabilities.”

That would mean people with disabilities would get a total monthly income equal to what low-income seniors get from the federal government.

MacKenzie said the lack of adequate financial support for people with disabilities is “not OK,” noting that the money they spend goes back into the economy.

“We tell people with disabilities that what they deserve and what we can afford to give them in society is an existence. It’s not a life,” she said.

For Thompson, that’s “a really hard pill for me to swallow.”

”A lot of people don’t see us as human. They see us as a drain on society,” they said.

”We’re worth investing in.”

This report by The Canadian Press was first published Oct. 26, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.



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