Day One | May 13th 2024
Ottawa
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Decrease number of temporary residents by making them permanent, federal immigration minister suggests
On Friday, Minister of Immigration, Refugees and Citizenship, Marc Miller suggested that one of the ways Canada plans to reduce the number of temporary residents was by offering some the opportunity to stay permanently, but not all will be eligible. The goal is to decrease the temporary resident population to five per cent of Canada's population over the next three years, down from 6.2 per cent in 2023. Provinces are asked to expand their immigration programs to accommodate those seeking permanent residency. The government is also considering limits on new temporary visas and measures to speed up asylum claim processing. This could lead to labor shortages, and economists suggest a more predictable path to permanent residency to address these issues.
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Ottawa approves B.C.'s request to recriminalize use of illicit drugs in public spaces
The federal government has approved British Columbia's request to recriminalize the use of illicit drugs in public spaces. B.C. Premier David Eby requested this adjustment to the province's decriminalization program, which allows adults to carry small amounts of drugs without facing criminal charges. The new policy, approved by Minister of Addictions and Mental Health Ya'ara Saks, will take effect immediately. While adults can still carry and use drugs in private, they could be arrested for using them in public. This decision comes amidst the ongoing opioid crisis, with officials hoping to provide better access to care and a safer drug supply. Critics, however, have raised concerns about public safety and the effectiveness of decriminalization.
NDP calls out Conservatives for effort to quash pharmacare legislation
The federal New Democrats are criticizing Conservative Leader Pierre Poilievre and his party for attempting to block a bill that could enable millions of Canadians to access birth control and diabetes coverage. NDP House Leader Peter Julian proposed a motion in the House of Commons to expedite the government's pharmacare legislation, Bill C-64, to the committee study stage. The bill includes an interim commitment to provide diabetes medication and birth control coverage through a single-payer system, contingent on provincial and territorial agreement. The Conservatives have opposed the bill, with Conservative MP Stephen Ellis arguing that it offers an inferior pharmacare plan. NDP Leader Jagmeet Singh criticized the Conservatives for blocking the bill, emphasizing the impact of high prescription medication costs on Canadians' health. Health Minister Mark Holland passed a motion to limit debate time on the bill, with the NDP's support. Singh vowed to ensure access to free birth control and diabetes medications using available tools.
Ottawa says Ontario failed to meet affordable housing goals, won’t send funds to province
The federal government is withholding $357 million in affordable housing funding from Ontario and sending it directly to city service managers due to Ontario's failure to commit to building nearly 20,000 housing units. This move bypasses the province and reflects a trend of Ottawa dealing directly with municipalities on housing funding. The dispute arises from how Ontario plans to meet its targets, with Ottawa criticizing the province for lagging behind in building new units and not sharing plan details. Ontario argues it has built and refurbished many units but is being unfairly treated. Minister of Municipal Affairs and Housing Paul Calandra accused the federal government of wanting to "hand out cheques" across Ontario. Minister Fraser said the federal government will deliver the funding directly to service managers to ensure the money flows quickly. The Association of Municipalities of Ontario warned that withholding federal funding would worsen the housing and homelessness crisis. Toronto Mayor Olivia Chow expressed willingness to work with any level of government to access funding for housing.
Bank of Canada warns of steep jump in mortgage payments
The Bank of Canada predicts that homeowners renewing mortgages will face steep payment increases, with median monthly payments for variable rate mortgages jumping over 60%. Despite low residential mortgage defaults, the bank warns that household and business debt servicing poses a risk to financial stability, especially if unemployment rises. Half of the country's mortgages have renewed at higher rates since the bank raised rates in 2022, but future mortgage resets could be more challenging. The report also highlights concerns about leverage in the financial system and risks in the office real estate market, particularly in Toronto. Overall, the bank urges households and businesses to prepare for potential challenges ahead.
Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Six of the countries largest industry organizations are criticizing the federal government's plan to increase the capital gains inclusion rate, calling it "shortsighted" and warning that it will stifle economic growth. They argue that the policy change will limit opportunities and make Canada less competitive and innovative. The government's proposal would increase the inclusion rate on capital gains from 50 per cent to 67 per cent for individuals earning more than $250,000 in capital gains in a year, as well as for all corporations and trusts. The government has defended the plan as a fair way to target Canada's highest earners, but critics argue that its impacts could be more widely felt. The business groups are calling on the government to scrap the inclusion rate increase and instead conduct an independent review of Canada's tax system.
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Alberta
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Spring Emergencies Prompt Alberta to Shift Fixed Election Date from May to October
The Alberta government is proposing to shift the province's fixed election date from spring to fall through Bill 21, the Emergency Statutes Amendment Act, to avoid election campaigns clashing?with emergency situations such as wildfires.?The bill aims to move the election date from May to October to minimize disruptions and improve emergency response efforts. Critics, including Opposition Leader Rachel Notley, argue that the government is exploiting the crisis to extend its time in office. The bill also aims?to streamline emergency management by giving the provincial government greater authority in directing wildfire and water-related emergency responses.
What You Need to Know
During the second Alberta NDP leadership debate in Edmonton, all candidates initially showed unity until former Calgary Mayor Naheed Nenshi had to defend his record against accusations of being anti-union, stemming from a 2019 letter asking the government to bypass union agreements. Fellow leadership candidate and Alberta Federation of Labour President Gil McGowan questioned Nenshi's trustworthiness on union matters. Nenshi refuted claims of being anti-union by emphasizing his commitment to collective bargaining and clarified that his actions as mayor were in opposition to a right-wing council, aiming to prevent the privatization of city services. The debate also featured personal attacks, with Sarah Hoffman questioning Nenshi’s actions related to affordable housing evictions, and various candidates outlining their visions and priorities for leading the party while addressing provincial issues.
The Alberta government has established a new committee to explore methods for accelerating the reclamation of oilsands tailings ponds. The oilsands mine water steering committee, composed of six members including government officials, a former oilsands executive, and academic experts, will suggest policies for quick and safe land reclamation while ensuring the protection of waterways. Environment Minister Rebecca Schulz emphasized the need for collaborative efforts to address the complexities of managing oilsands mine water. This initiative follows other historical attempts to address similar issues, amid critiques about the repeated formation of such committees without substantial resolution to the problem.
Alberta’s unemployment rate rose to 7% in April 2024, according to Statistics Canada’s Labour Force Survey, largely due to population increases outpacing job creation. Despite 10,600 new jobs being added, the unemployment rate climbed as 16,300 people either moved to or were born in the province. Part-time employment grew by 14,000 positions, while full-time jobs decreased by 3,400. Calgary experienced the most significant unemployment rate jump, reaching 7.7%, as a population surge added more job seekers than available employment opportunities.
Calgary city council repealed its single-use items bylaw, ending a brief period where local businesses charged customers for paper and reusable bags to reduce landfill waste. The bylaw faced immediate backlash due to communication failures that left businesses to handle customers’ reactions to the new charges. Although some customers became accustomed to the fees, many were sensitive to the additional costs amid rising prices, and business owners like Nicholas Yee of Holy Grill noted mixed responses. While the policy’s intention was to reduce waste, some restaurant owners were relieved to see its end, and the Canadian Federation of Independent Business emphasized the importance of clear communication for new policies affecting consumers.
A committee of Alberta MLAs has recommended Shawn McLeod as the new ethics commissioner despite opposition from New Democrats, who claim his previous attempt to seek a United Conservative Party (UCP) nomination implies a bias. McLeod, who filed for the UCP nomination in Edmonton-Riverview before the 2019 election but later withdrew, received unanimous support from the committee’s five UCP members, while all four NDP members voted against his appointment. Opposition critic Irfan Sabir argued that McLeod’s past political affiliations undermine public trust, but committee chairman Tany Yao emphasized McLeod's extensive experience and suitability for the role. McLeod has a background as a lawyer, served as deputy minister for labour and immigration, and is a member of the St’uxwtews First Nation.
Jan Novotny, recalling the Soviet tanks in Prague in 1968, protested outside the Alberta legislature against a proposed law granting Premier Danielle Smith's cabinet extensive powers to dismiss local councillors and nullify bylaws. Critics, including Novotny and municipal leaders, are concerned about the government's growing "autocratic" tendencies, noting that such legislation wasn't part of the UCP's campaign platform and bypassed public consultation. University of Alberta political science professor Jared Wesley and other organizations have expressed similar concerns, pointing to other recent moves by the government that suggest a trend towards consolidating power. Despite pushback, Smith insists her government is addressing stakeholder concerns and ensuring proper boundaries. Edmonton city council has also unanimously voted for Mayor Amarjeet Sohi to send a letter urging the Alberta government to withdraw Bills 18 (Provincial Priorities Act) and 20 (Municipal Affairs Statutes Amendment Act) to ensure proper consultation with affected stakeholders. Federal Housing Minister Sean Fraser expressed concerns that the bill could hinder progress made with municipalities and slow down housing development, while Alberta Municipal Affairs Minister Ric McIver promised amendments to clarify how cabinet powers would be used.
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Atlantic Canada
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Federal funding cuts affect Atlantic programming
Funding cuts revealed in the 2024 federal budget are affecting programming offered throughout Atlantic Canada. Newfoundland and Labrador announced it has suspended the Canada-Newfoundland and Labrador Job Grant for employers and workers indefinitely after losing $16.8 million in federal top-ups previously provided under the Labour Market Transfer Agreements. Meanwhile, P.E.I.’s Human Rights Commission will continue to fund a project to encourage discussion of workplace sexual harassment, despite the conclusion of federal funding from the Department of Justice.
What You Need to Know
Premier Blaine Higgs names new Environment Minister Glen Savoie, the MLA for Saint John East, has once again been asked to take on new responsibilities in the Higgs’ government. Already serving as Government House Leader, Minister of Local Government and Minister responsible for La Francophonie, he has also been named Minister of Environment and Climate Change, replacing Gary Crossman who stepped down several weeks ago. The full cabinet list is available here.
N.S. Auditor General finds weak oversight within temporary care and youth home network putting vulnerable children at risk
In a scathing new report, N.S.’ Auditor General Kim Adair found that weak oversight and a lack of regular contact between children and social workers is putting vulnerable children at risk of receiving inadequate care. Between 2021-2023, more than 200 children were placed in unlicenced temporary emergency arrangements, with some staying more than eight months. The Minister of Community Services accepted all 20 recommendations, saying ‘ensuring the safety of children in the province’s care is top of mind.’
N.S. Premier says Northern Pulp Plant is not on his radar
N.S. Premier Tim Houston commented this week that he does not believe the Northern Pulp Plant will ever reopen. The plant has been out of operation since 2020, when the company ceased operations and terminated its unionized workforce, cutting off their access to the company’s pension plan; however, the company has never stated that it is abandoning its Nova Scotia operation. The mill has been polarizing in Nova Scotia, with some supporting it as an employer and source of economic stimulation, and others opposing it as an environmental polluter. When asked about the plant potentially re-opening during a campaign stop in Pictou West, Premier Houston said that the mill was not on his radar and was being brought up by political opponents to stir controversy.
Wendell LaBobe appointed P.E.I.’s first regional chief
Former Lennox Island band councillor Wendell LaBobe has become the Island’s first regional chief, amplifying the voice of P.E.I. Mi’kmaw at the Assembly of First Nations.??He joins Joanna Bernard of N.B., Andrea Paul of N.S., and Brendan Mitchell of N.L.
Labour disruptions likely at N.L. fish plants
After months of protests around free enterprise and fair pricing, N.L.’s fishing industry is once again facing challenges. Four fish plants whose unionized workers are represented by the FFAW have reached impasses as they negotiate new collective agreements with their respective employers.??At issue is the wage gap between minimum wage, which has increased to $15.60 and the plant wage, given cost-of-living challenges.??If agreements are not reached, more than 1,000 workers across the province could be on strike or locked out.
N.B. housing starts lagging
N.B. missed its target for housing starts in 2023, falling behind the rest of the Maritimes. N.S. and P.E.I. have enjoyed housing starts at a rate three times higher than N.B. during the first quarter of 2024, since they adopted a federal policy that N.B. has refused to take up. The policy was announced by Trudeau in 2024 of last year and ceased the 5% GST on construction of new rental buildings. At the time of announcement, Trudeau encouraged provincial governments to follow suit, but N.B. Finance Minister Ernie Steeves rejected the idea as too expensive.
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P.E.I. looking for modular home builder
P.E.I.’s government is looking for a private company to manufacture modular housing units on the island. The province has issued a request for expressions of interest and offered up a government-owned site to housing a manufacturing facility. The winning company must be willing to dedicate the majority of its production to the P.E.I. market for five years. This proposal is one of 20 priorities outlined in P.E.I.’s 2024 – 2029 Housing Strategy, in the hopes that having modular homes produced on the Island will help increase the stock of affordable housing. P.E.I.’s vacancy rates currently sits at 1.1%.
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British Columbia
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Hundreds of jobs affected as Canfor makes cuts in northern B.C.
B.C.'s forestry giant Canfor has announced significant changes impacting communities in northern B.C., affecting hundreds of jobs. They're curtailing a production line at the Northwood pulp mill in Prince George due to a decline in available wood. They're also permanently closing the Polar sawmill in Bear Lake and delaying plans to invest in their Houston facility due to timber shortages. About 400 existing jobs and 200 potential replacements are affected. The Polar sawmill closure means 180 employees will lose jobs in Bear Lake. Additionally, a production line closure at Northwood will impact 220 jobs. In Houston, plans for a new facility are on hold, affecting anticipated 200 jobs. Canfor cites reduced available wood, policy changes, and regulatory complexities for the decisions. The closures follow previous shutdowns in Chetwynd and Houston, resulting in hundreds of lost jobs. Stephen Mackie, from Canfor, points to natural disturbances like beetle infestations and wildfires, along with policy changes, as reasons for reduced wood supply. Blacker blames industry and government mismanagement for the crisis, emphasizing rapid harvesting without adequate planning. B.C. Minister of Forests Bruce Ralston expressed disappointment, pledging support for affected workers and communities, stressing the need to stabilize the sector.
What You Need to Know
The Northern Rockies Regional Municipality is sounding urgent alarms for residents of Fort Nelson, as escalating wildfire threats exacerbated by strong westward winds prompt immediate evacuation advisories. This warning comes amidst a broader landscape of wildfires ravaging areas near Fort McMurray, Grand Prairie, and Flin Flon, resulting in evacuations and road closures. The situation is compounded by widespread poor air quality across Western Canada, as indicated by Environment Canada advisories, intensifying concerns for public health and safety. Forecasts of wind intensification in Fort Nelson further heighten apprehensions, leading to the relocation of emergency centers and emphasizing the critical imperative for evacuation. Meanwhile, in Alberta and Manitoba, wildfires continue to grow, prompting collaborative interprovincial aid efforts to mitigate the escalating crisis and protect affected communities.
Following Ottawa's approval of British Columbia's request, illicit drug use in public spaces is once again deemed illegal, reversing parts of the province's decriminalization initiative. Advocates for harm reduction express concern, arguing that this move will drive drug users underground, increasing the risk of fatal overdoses. Federal Addictions Minister Ya’ara Saks announced the decision, granting immediate authority to police to intervene in instances of drug use in public areas, including hospitals, transit, and parks. Premier David Eby had urgently requested amendments to B.C.'s exemption under federal law, originally granted in January 2023, which had permitted the decriminalization of small drug amounts. Despite the emphasis on addressing the health crisis, officials stress the importance of community safety. B.C. Public Safety Minister Mike Farnworth assures that police interventions will prioritize asking individuals to leave the area, with arrests or drug seizures occurring only in exceptional circumstances.
Suncor Energy Inc. has announced its leasing and operation of Aframax oil tanker ships to transport crude from the recently completed Trans Mountain pipeline expansion to Pacific markets. By managing the tankers directly, Suncor aims to reduce shipping costs and capture full value for the company. The Trans Mountain expansion, now officially operational, provides Canadian oil shippers access to an additional 590,000 barrels-per-day of pipeline capacity, enhancing the profitability of oilsands production for Suncor and the industry as a whole. This development enables future growth opportunities while addressing historical challenges related to export capacity and product pricing. Suncor anticipates delivering crude primarily to California and Asian markets, leveraging its trading capabilities to maximize transaction value. Despite ongoing disputes over toll charges with Trans Mountain Corp., Suncor remains optimistic about the project's potential to drive operational performance and shareholder returns, as evidenced by its record production and refining throughput in the first quarter of 2024.
Concerns about future droughts exacerbating such events prompt calls for proactive measures to protect salmon and trout habitats across British Columbia. Fisheries biologist Tom Rutherford underscores the urgent need for societal action to address the root causes of environmental stressors threatening aquatic ecosystems. Personal testimonies from individuals witnessing the decline in fish populations underscore the emotional and ecological significance of preserving these vital species. 40% of B.C. is already on drought warning, with some areas even reaching level 3, 4 or 5 on the drought scale, which means drought impacts are nearly impossible to avoid. This early drought risk comes after B.C.’s lowest snowpack on record, and this will bring great risk to the life cycle of B.C.’s pacific salmon. A bad drought season for B.C. spells trouble for not only the province’s economy, but also Indigenous communities, and a lack of fish in the river will leave wildlife in B.C., such as bears, hungry.
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Ontario
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Ford government introduces the Working for Workers Five Act
The fifth Working for Workers Act increases the minimum wage to $17.20 and requires employers to disclose whether an open position is vacant. The bill provides new protections for women at work and extends trades apprenticeships to secondary students. It also forces regulated professions to create plans for registering internationally trained workers.
What You Need to Know
Ontario Strengthening Safeguards for Children’s Personal Information
Ontario is promising new legislation to protect kids’ data online. The changes would protect children’s data from being stolen or used for profit aims to meet growing concerns posed by privacy violations and cyber-harassment. Such changes could include age-appropriate standards for school software and strengthening regulations on software procurement by schools. The provincial government will partner with schools, parents, and groups overseeing children to ensure these protections don’t affect the quality of??education or prevent schools from choosing the right tools for the classroom.
Ontario Supporting Young Entrepreneurs
Ontario is investing an extra $1.5 million into its Summer Company program, aimed at supporting an additional 250 youth entrepreneurs in launching and expanding their businesses. This funding brings the total for the program to over $4.7 million for the next two years. Over the past five years, the program has helped over 1,700 businesses across Ontario.
Ontario Connecting Children and Youth to Mental Health Care Close to Home
Ontario is providing an addition $12.5 million for Black children, youth, and their families, in addition to 2SLGBTQIA+ youth, to access mental health services closer to home. The investment will help expand and improve community programs and services, including improving access to counselling and case management, providing supports for suicidality, eating disorders, depression and anxiety, and increasing the number of Black therapists and 2SLGBTQIA+ counsellors.
Ontario Completes Largest Battery Storage Procurement in Canada to Meet Growing Electricity Demand
The Ontario government has completed a record-breaking battery storage procurement to secure a total of 2,195 megawatts of capacity, enough to power the peak demand of 2.2 million homes. This procurement includes 1,784 megawatts of clean energy storage and 411 megawatts of natural gas and biogas.
Canada and Ontario Increasing Access to High-Speed Internet Service in Wellington County
The governments of Ontario and Canada have partnered with Southwestern Integrated Fibre Technology (SWIFT) Inc. to invest $4.4 million in Wellington County for high speed internet. Over 1,700 families, farms, and businesses will receive access via the new investment.
Ontario Connecting People in Lambton County to Mobile Mental Health Services
The provincial government is investing $2.5 million over three years for a new mobile crisis response team in Lambton County to be dispatched for people experiencing homelessness or mental health and addictions crises. The response team will launch later this year and will consist of paramedicine and mental health crisis workers.
Ontario Building More Supportive Housing in Hamilton
The Ontario government is injecting $5 million to help create 43 one-bedroom units for low-income individuals in downtown Hamilton. The announcement comes as part of the Social Services Relief Fund, which has provided over $1.2 billion to help create longer-term housing for vulnerable Ontarians.
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Toronto
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Toronto’s impending infrastructure decline
Toronto requires an extra $26 billion over the next decade to halt the deterioration of its infrastructure. Mayor Olivia Chow is emphasizing the importance of prioritizing maintenance over new projects to prevent escalating costs and diminishing service quality. Even with some financial relief from the upload of infrastructure costs to the province, the city still needs federal funding commitments. The report underscores that a considerable portion of Toronto's assets, including the TTC and Toronto Community Housing, are in poor condition and necessitate $40 billion over ten years for maintenance. Notably, the TTC needs an additional $2.4 billion annually to sustain its good repair state, and without increased funding, a decline in service levels is expected. Moreover, more than 70% of the city's library infrastructure is also in poor or very poor condition, requiring a significant increase in annual maintenance spending to avoid further degradation.
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Toronto's Decriminalization Effort for Illicit Drug Possession Faces Uncertainty Following British Columbia's Policy Reversal
Toronto's effort to decriminalize the possession of illegal drugs for personal use has become uncertain following political debates stirred by British Columbia's reversal of a similar policy. Local officials and experts worry that the application, which has been pending for over two years, is being overshadowed by political considerations rather than its merits, which emphasize public health overcriminalization. The federal response has been slow, with the Minister for Mental Health and Addictions claiming that Toronto's application is "dormant" and awaiting necessary details to meet public health and safety goals. This delay is criticized by advocates who argue that the government's action lacks the urgency needed to address the city's severe overdose crisis, which continues to result in a significant number of deaths annually.
Mississauga mayoral candidate Carolyn Parrish leads the race
Carolyn Parrish, a candidate for mayor in Mississauga, has strengthened her lead in the race. A poll shows Parrish with 28% support among all voters, up from 18% in March. Notably, she has gained support across various demographics, particularly among seniors. Councillor Dipika Damerla follows with 20% of the vote, while Alvin Tedjo holds 17%. The survey, conducted at the end of April, included 907 Mississauga residents, and had a margin of error of plus or minus 3.25%.
Despite overcrowded shelters, Toronto will potentially house refugees in Vaughan hotel
A city committee has approved nearly $86 million in additional funding to aid Toronto's overcrowded shelter system, including support for refugees housed in a Vaughan hotel. The decision comes amid challenges in finding temporary accommodations for the increasing number of refugee claimants, who now make up more than half of the city's shelter population. While the federal government's assistance is acknowledged, housing over 6,350 refugees in Toronto remains a significant challenge, with many relying on shelter hotels due to room shortages.
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