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WestJet’s retreat from Atlantic Canada pushes the federal government into a corner

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Two hours after WestJet announced on Wednesday that it was curtailing its flights to and from Atlantic Canada, an email went out to all MPs and senators from Liberal MP Chris Bittle, parliamentary secretary to Transport Minister Marc Garneau.

“The COVID-19 pandemic has had a tremendous impact on all aspects of the Canadian economy, but few industries have been more negatively impacted than the air sector,” Bittle wrote in a letter first obtained by Radio-Canada.

“Many of you have reached out to us to share your thoughts about the current impact of COVID-19 on the air sector. At this stage, we would like to hear from all parliamentarians [on] what is required to support a robust air sector in Canada.”

Last month’s throne speech promised “further support for industries that have been the hardest hit, including travel,” and the government’s consultations on support for the air sector apparently were due to start this week.

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While demands for government aid to the air travel sector have been building for months, WestJet’s regional retreat will drive those demands to a new level.

For the federal government, the case for doing something to prop up airlines and airports might be stronger than the case for doing nothing. But even if the government wants — or needs — to intervene, it still has to work out a way to do so that it can defend politically.

Bubble trouble

P.E.I. Premier Dennis King was among those calling on the federal government to take action on Wednesday. But it’s the region’s own “Atlantic bubble” pandemic policy — which imposes registration requirements on travellers from outside of Atlantic Canada and compels them to self-isolate for 14 days upon arrival in the region — that has caused the demand for flights in and out of the region to crater.

The Liberals probably don’t want to be blamed if reductions in air service across the country become permanent. And sure enough, New Brunswick Premier Blaine Higgs told CBC’s Power & Politics that he came away from a conversation with Intergovernmental Affairs Minister Dominic LeBlanc on Wednesday with the impression that “something’s going to happen” for the ailing industry.

 

 

Premiers are expressing concern after WestJet announced it would shut down most of its operations in Atlantic Canada. 9:52

The federal response to the pandemic has not ignored the country’s largest companies. All businesses have been able to access the federal wage subsidy. In May, the Liberals rolled out a targeted loan program known as the Large Employer Emergency Financing Facility (LEEFF).

WestJet has made use of the wage subsidy; Richard Bartrem, VP of marketing communications at WestJet, called it “terrifically helpful.” WestJet has not sought assistance through the LEEFF program.

“The conditions that were placed [on] it just made it unwieldy in terms of our ability to recover from the pandemic,” Bartrem said.

Critics have claimed LEEFF was rolled out too late and offers loans at terms less generous than what is available in the private sector. (When it was introduced, then-finance minister Bill Morneau called the program an option of “last resort” — so it might have been designed to not be popular.)

Only one company has been approved for a LEEFF loan to date, according to the federal government. Not long after the federal government announced that loan to Gateway Casinos (which operates 26 facilities across Canada), Conservative finance critic Pierre Poilievre was on his feet in the House of Commons ripping into the decision as an irresponsible use of public funds.

That’s the risk a government takes whenever it offers help to specific firms or industries — even in the midst of a global economic crisis.

The nationalization route

Transport Minister Marc Garneau has had to fend off questions already about compelling airlines to refund customers for flights that were cancelled by the pandemic.

At the time, Garneau’s stated reason for not forcing airlines to offer refunds seemed practical. Some struggling airlines might have collapsed completely if they were forced to pay back that money, he said. But if (or when) the federal government offers airlines support, the political conflict over refunds will come roaring back.

When Chrystia Freeland became finance minister in August, the National Airlines Council of Canada, which represents major carriers, wrote to her to outline a request for financial support in the form of “loans, loan guarantees or direct assistance.” Airline unions have asked for $7 billion in federal loans.

The airlines also want “a national framework to ease interprovincial travel restrictions … reciprocal border agreements with targeted safe countries” and the deployment of rapid COVID-19 testing.

Other countries have moved already to rescue their national carriers — in some cases through outright nationalization. The German government, for instance, now owns 20 per cent of Lufthansa. In Canada, any nationalization presumably would have to involve both Air Canada and WestJet.

LEEFF’s limitations notwithstanding, the program’s design suggests the government knew that it would have to justify and defend any effort to bail out a major corporate entity. LEEFF loan recipients have to abide by conditions that include restrictions on executive compensation and a requirement for climate-risk disclosure. Perhaps new conditions would help make loans for airlines more politically acceptable.

The political downside to bailouts

But even if the Trudeau government changed the terms of LEEFF to make it more industry-friendly, it still could be left to explain why the airline industry — or any other group of wounded firms — deserves special attention right now.

The Liberals have avoided taking a sector-specific approach to pandemic relief to date. If they start providing sector-specific assistance now, the floodgates will open — other sectors will demand the same assistance, or at least call on the Liberals to explain where they’re drawing the line and why.

The government’s throne speech specifically mentioned one avenue for assistance: supporting regional routes for airlines. “It is essential that Canadians have access to reliable and affordable regional air services,” the speech said. “This is an issue of equity, of jobs, and of economic development.”

That’s a justification for targeted support. Would that be enough?

There’s also the question of timing. As Premier Higgs acknowledged in his interview with Power & Politics, financial support will be of limited use as long as large numbers of people are uncomfortable with the idea of flying — and have nowhere to go.

Free-market disciples might turn their noses up at all of this, but the Trudeau government probably doesn’t see this as the right moment to insist on laissez-faire economics. And perhaps the other federal parties will be reluctant to make the case for doing nothing as well.

For Trudeau, the challenge is to come up with an approach that makes things better — without making his government’s political burden significantly heavier.

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Ontario Legislature keffiyeh ban remains in place – CBC.ca

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Keffiyehs remain banned in the Ontario Legislature after a unanimous consent motion that would have allowed the scarf to be worn failed to pass at Queen’s Park Thursday.

That vote, brought forth by NDP Leader Marit Stiles, failed despite Premier Doug Ford and the leaders of the province’s opposition parties all stating they want to see the ban overturned. Complete agreement from all MPPs is required for a motion like this to pass, and there were a smattering of “nos” after it was read into the record.

In an email on Wednesday, Speaker Ted Arnott said the legislature has previously restricted the wearing of clothing that is intended to make an “overt political statement” because it upholds a “standard practice of decorum.”

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“The Speaker cannot be aware of the meaning of every symbol or pattern but when items are drawn to my attention, there is a responsibility to respond. After extensive research, I concluded that the wearing of keffiyehs at the present time in our Assembly is intended to be a political statement. So, as Speaker, I cannot authorize the wearing of keffiyehs based on our longstanding conventions,” Arnott said in an email.

Speaking at Queen’s Park Thursday, Arnott said he would reconsider the ban with unanimous consent from MPPs.

“If the house believes that the wearing of the keffiyeh in this house, at the present time, is not a political statement, I would certainly and unequivocally accept the express will of the house with no ifs, ands or buts,” he said.

Keffiyehs are a commonly worn scarf among Arabs, but hold special significance to Palestinian people. They have been a frequent sight among pro-Palestinian protesters calling for an end to the violence in Gaza as the Israel-Hamas war continues.

Premier calls for reversal

Ford said Thursday he’s hopeful Arnott will reverse the ban, but he didn’t say if he would instruct his caucus to support the NDP’s motion.

In a statement issued Wednesday, Ford said the decision was made by the speaker and nobody else.

“I do not support his decision as it needlessly divides the people of our province. I call on the speaker to reverse his decision immediately,” Ford said.

WATCH | Ford talks Keffiyeh ban: 

Ford says division over keffiyeh ‘not healthy’

19 hours ago

Duration 1:20

Ontario Premier Doug Ford reiterated Thursday that he does not support Speaker Ted Arnott banning keffiyehs in the Ontario Legislature because they are “intended to be a political statement,” as Arnott said in an email Wednesday.

PC Party MPP Robin Martin, who represents Eglinton–Lawrence, voted against the unanimous consent motion Thursday and told reporters she believes the speaker’s initial ruling was the correct one.

“We have to follow the rules of the legislature, otherwise we politicize the entire debate inside the legislature, and that’s not what it’s about. What it’s about is we come there and use our words to persuade, not items of clothing.”

When asked if she had defied a directive from the premier, Martin said, “It has nothing to do with the premier, it’s a decision of the speaker of the legislative assembly.”

Stiles told reporters Thursday she’s happy Ford is on her side on this issue, but added she is disappointed the motion didn’t pass.

“The premier needs to talk to his people and make sure they do the right thing,” she said.

Robin Martin answers questions from reporters.
PC Party MPP Robin Martin voted against a unanimous consent motion Thursday that would have overturned a ban on Keffiyehs at Queen’s Park. (Pelin Sidki/CBC)

Stiles first urged Arnott to reconsider the ban in an April 12 letter. She said concerns over the directive first surfaced after being flagged by members of her staff, however they have gained prominence after Sarah Jama, Independent MPP for Hamilton Centre, posted about the issue on X, formerly Twitter.

Jama was removed from the NDP caucus for her social media comments on the Israel-Hamas war shortly after Oct. 7. 

Jama has said she believes she was kicked out of the party because she called for a ceasefire in Gaza “too early” and because she called Israel an “apartheid state.”

Arnott told reporters Thursday that he began examining a ban on the Keffiyeh after one MPP made a complaint about another MPP, who he believes was Jama, who was wearing one.

Liberals also call for reversal

Ontario Liberal Leader Bonnie Crombie also called for a reversal of the ban on Wednesday night.

“Here in Ontario, we are home to a diverse group of people from so many backgrounds. This is a time when leaders should be looking for ways to bring people together, not to further divide us. I urge Speaker Arnott to immediately reconsider this move to ban the keffiyeh,” Crombie said.

WATCH | An explainer on the cultural significance of keffiyehs:  

Keffiyeh: How it became a symbol of the Palestinian people

4 months ago

Duration 3:08

Keffiyehs are a common garment across the Arab world, but they hold a special meaning in the Palestinian resistance movement.

Stiles said MPPs have worn kilts, kirpans, vyshyvankas and chubas in the legislature, saying such items of clothing not only have national and cultural associations, but have also been considered at times as “political symbols in need of suppression.”

She said Indigenous and non-Indigenous members have also dressed in traditional regalia and these items cannot be separated from their historical and political significance. 

“The wearing of these important cultural and national clothing items in our Assembly is something we should be proud of. It is part of the story of who we are as a province,” she said.

“Palestinians are part of that story, and the keffiyeh is a traditional clothing item that is significant not only to them but to many members of Arab and Muslim communities. That includes members of my staff who have been asked to remove their keffiyehs in order to come to work. This is unacceptable.”

Stiles added that House of Commons and other provincial legislatures allow the wearing of keffiyehs in their chambers and the ban makes Ontario an “outlier.”

Suppression of cultural symbols part of genocide: MPP

Jama said on X that the ban is “unsurprising” but “nonetheless concerning” in a country that has a legacy of colonialism. “Part of committing genocide is the forceful suppression of cultural identity and cultural symbols,” she said in part. 

Sarah Jama
Sarah Jama, Independent MPP for Hamilton Centre, is pictured here outside her office in the Ontario Legislature wearing a keffiyeh. (Sarah Jama/Twitter)

“Seeing those in power in this country at all levels of government, from federal all the way down to school boards, aid Israel’s colonial regime with these tactics in the oppression of Palestinian people proves that reconciliation is nothing but a word when spoken by state powers,” she said.

Amira Elghawaby, Canada’s Special Representative on Combatting Islamophobia, said on X that it is “deeply ironic” on that keffiyehs were banned in the Ontario legislature on the 42nd anniversary of Canada’s Charter of Rights and Freedoms.

“This is wrong and dangerous as we have already seen violence and exclusion impact Canadians, including Muslims of Palestinian descent, who choose to wear this traditional Palestinian clothing,” Elghawaby said.

Protesters who blocked a rail line in Toronto on Tuesday wear keffiyehs. The protest was organized by World Beyond War on April 16, 2024.
Protesters who blocked a rail line in Toronto on Tuesday are shown here wearing keffiyehs. The protest was organized by World Beyond War on April 16, 2024. (Evan Mitsui/CBC)

Arnott said the keffiyeh was not considered a “form of protest” in the legislature prior to statements and debates that happened in the House last fall.

“These items are not absolutes and are not judged in a vacuum,” he said.

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New Peggys Cove bylaw brought in amidst complaints of unfairness – CBC.ca

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Peggys Cove now has a new bylaw to guide development and protect the iconic fishing village’s heritage, but some say the process to create those rules was unfair.

After more than two years of consultation and five different drafts, this week the province approved a new land-use bylaw that will replace one from 2003.

It aims to preserve the “authentic, traditional fishing village” spirit of the cove, while allowing commercial uses where residents can benefit financially from the thousands of tourists who flock to see the area and lighthouse.

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But Paul Paruch is one of many who have voiced concerns about conflicts of interest with the Peggy’s Cove Commission, which led the process with support from Upland Planning consultants.

“[I’m] very disappointed, let down,” Paruch said Thursday.

Paruch and his wife, Claire, had hoped to see their property zoned commercial, as Claire has run a hotdog stand there for years. The couple bought a home there with plans to retire and also rent it out, Paruch said, which would also not be allowed.

A map of various colours with the Peggy's Cove peninsula and roads
A map of the new land-use for Peggys Cove shows new zoning in red along the main road through the village. The new zoning would enable a mix of residential, commercial and community amenity uses. The yellow-green marked with “R” represents residential zoning, with the olive colour showing conservation areas. (Upland Planning/Peggy’s Cove Commission)

A map of current zoning in Peggys Cove
A 2017 map shows the former zoning rules in Peggys Cove. (Province of Nova Scotia)

The new bylaw addresses everything from dwelling size to regulations on building materials. It also has turned many residential lots along Peggys Point Road into mixed-use “core” zoning that would allow for commercial, residential and community purposes.

Vendors and buskers are no longer allowed in the cove, unless they’re accessory to a special event.

Brian Cottam said the new bylaw is a major blow for him and his wife, Kelly Westhaver. Although an early draft of the bylaw zoned their land at 173 Peggys Point Road as commercial, that changed to residential after other residents voiced concerns about having that zoning so close to the lighthouse.

A sale of $1.3 million fell through on the land because a core designation was a condition of the purchase, Cottam said.

“This sale was going to allow us the ability to relax a little and enjoy life, but that has been stripped away,” he said in an email.

Bylaw ‘effectively expropriates’ private land: lawyer

Another property owner, Eleanor McCain, will be getting the commercial zoning she pushed for to allow for new businesses.

However, a lawyer for McCain did raise concerns about how the conservation zone was applied to the rocky waterfront side of her client’s land and many others in the cove. Nancy Rubin of Stewart McKelvey said in a letter to the commission the move “effectively expropriates” private land without any evidence of why it was needed or if it was based on any scientific studies. 

Paruch, Cottam and McCain have argued the commission members who run their own commercial enterprises, or are connected to businesses in the cove, are in direct conflicts of interest. The commission is made up of residents, the sitting councillor and representatives from the province to make decisions on changes in the area.

Three commission members must be from the community, but where there’s about 40 permanent residents, it is hard to avoid friendships and family ties.

The Nova Scotia ombudsman’s office is investigating the commission following recent complaints. Both Paruch and Cottam said they had hoped this independent report would lead to the province rejecting the proposed bylaw.

But John Campbell, a lifelong cove resident and owner of the Sou’wester Restaurant in the village and other properties, said the bylaw strikes the right balance.

A white man with red hair and a striped shirt stands outside with people standing on white rocks behind him
John Campbell owns the Sou’wester gift shop and restaurant in Peggys Cove. (CBC)

“I think overall it’s going to be a good thing, but you know when you go through a process like this, not everybody’s going to be happy,” Campbell said. 

Campbell said he’s become an “easy target” for the arguments around conflicts of interest, as his daughter Nicole Campbell is commission chair. He said he didn’t get everything he wanted in the new bylaw, pointing out that his request for land to be zoned commercial near the lighthouse was refused.

Campbell agreed that something should change with the makeup of the commission to avoid conflicts in the future, but more analysis should be done on what the fairest approach is.

“It’s a very unique place, Peggys Cove, and you know it’s good to have discussions about it,” Campbell said. “It’s my community that I grew up in, and my closest friends are in, and you know I feel like I could make a living there.”

Economic Development Minister Susan Corkum-Greek said she has faith in the commission’s process, and nothing in the draft report from the ombudsman prevents her from approving the bylaw.

She said the province is also looking at modernizing the legislation governing the commission and the area.

“I think this is an important step, but … it is a first step,” Corkum-Greek told reporters Thursday.

The bylaw will see a new development officer appointed to handle permits and variance requests, while anyone who wants to change their zoning can apply to the commission.

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