Day One | May 27th 2024
Ottawa
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Chrystia Freeland says capital gains bill will be introduced before summer
The federal government plans to introduce legislation before the House rises for summer to implement its increase in the?inclusion rate for capital gains taxes ?promised in Budget 2024. This change, set to take effect as of June 25, will raise the inclusion rate from one-half to two-thirds on capital gains realized by companies and individuals on gains above $250,000. The government aims to raise approximately $19 billion over five years through these changes, with the revenue intended to offset new spending in areas such as housing and health care. The delay in introducing the legislation has led to criticism from the Opposition, particularly Conservative Leader Pierre Poilievre, who has not provided a clear stance on the issue. Despite calls from major business groups to scrap the tax increase, Prime Minister Justin Trudeau has expressed support for the plan, emphasizing its importance in achieving tax fairness.
Government bill will restore citizenship rights to ‘lost Canadians’
This week,?Immigration Minister Marc Miller ?introduced Bill C-71, or an Act to amend the Citizenship Act for first reading. The bill extends citizenship by descent beyond the first generation, allowing Canadians born abroad to pass on citizenship to their children born outside Canada. This reverses a 2009 change by the Harper government to the Citizenship Act that saw many lose their status under Canadian law. It follows a ruling by the Ontario’s Superior Court of Justice which found it was unconstitutional to deny citizenship to the children of Canadians born abroad. The bill is supported by the NDP and Green Party, with NDP immigration critic speaking at the bills announcement on Thursday.
It's time for Canada to 'step up' on military spending, U.S. senator says
Nearly?two dozen U.S. senators ?have called for increased Canadian military spending, urging Canada to meet the NATO target of spending 2% of GDP on defense by the end of the decade. Senator Kevin Cramer emphasized the need for Canada to step up its contributions, noting that it currently lags behind many NATO allies. The senators' letter to Prime Minister Justin Trudeau warned that Canada's failure to meet this target could harm NATO and the free world. Trudeau acknowledged the need for increased spending and highlighted recent budget increases, although current projections still fall short of the 2% goal.
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Alberta
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Calgary membership surges for Alberta NDP
The Alberta NDP, once predominantly rooted in Edmonton, has undergone a significant transformation, with Calgary now emerging as its membership stronghold . This shift has been seen since the start of the leadership vote, where nearly half of the party's members are now from Calgary, compared to one-quarter from Edmonton. The surge in Calgary's NDP membership, surpassing even the UCP's presence in the city, signals a growing enthusiasm for the party. Notably, Calgary now hosts the highest number of NDP members, with six of the top seven ridings by membership being located there. This shift extends beyond Calgary's borders, with surrounding areas also showing increased NDP support. This shift could present opportunities, particularly for frontrunner Naheed Nenshi. ?As the party navigates this transition, there's speculation on potential shifts in political strategy and ideological orientation, with a greater emphasis on Calgary's corporate culture. ?
Higher than average rent increases in Alberta
Statistics Canada's April Consumer Price Index Report revealed that while national inflation slowed to a three-year low of 2.7 percent, Alberta experienced higher than average increases in rent prices. ?Rent in Alberta soared by 16.2 percent year over year, marking the eighth consecutive month of rent increases surpassing the national level. This surge in rent prices, attributed to strong demand from interprovincial migration seeking affordable housing, has prompted calls for rent caps or freezes. Economists note that the population boom in Alberta, driven by migrants from pricier regions like British Columbia and Ontario, will likely continue to put pressure on housing costs despite anticipated interest rate cuts. Calgary in particular saw the highest inflation rate in Canada at 3.6 percent in April, followed by Halifax and Toronto.
Government proposes Amendments to Bill 20, though many remain unsatisfied
The Alberta government has proposed amendments to Bill 20, the Municipal Affairs Statute Amendment Act, aiming to address concerns about excessive cabinet influence over elected municipal officials and bylaws. ?Municipal Affairs Minister Ric McIver introduced two amendments, one to revoke the power allowing cabinet to remove councillors behind closed doors and instead proposes a public vote for removal in cases of council members deemed unfit. The second amendment sets criteria for cabinet intervention in municipal bylaws, aiming to ensure alignment with the Municipal Government Act (MGA) and provincial policies. Despite these changes, groups like Alberta Municipalities expressed disappointment, citing lack of consultation and continued concerns over government overreach. The government's use of time allocation to limit debate further stirs controversy, with opposition leaders criticizing the move as undemocratic and indicative of governmental entitlement.
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Atlantic Canada
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N.B. Premier ‘furious’ over sex ed presentation; bans group’s school presentations
Premier Blaine Higgs is on the offensive after a Quebec-based sexual health awareness organization presented “clearly inappropriate ” material in at least four high schools across the province. Higgs, a staunch defender of parental rights, issued a statement condemning the presentation which did not fall within the province’s curriculum. The party has also used the incident to rally support and run ads targeting Liberal leader Susan Holt, who previously suggested that parental rights should not be the main election issue.
N.L. Health Minister Tom Osborne announces retirement
After 28 years in the legislature, N.L. Health Minister Tom Osborne?announced ?he will be retiring in July.? First elected in 1996, he served in numerous portfolios in both PC and Liberal cabinets as well as the Speaker from 2015 to 2017. Asked to reflect on his career, Osborne highlighted his role in implementing the province's prescription drug plan and 811 health line, launching curbside recycling and the provincial glucose monitoring program, as well as finishing the Trail of the Caribou. While he plans to stay connected to politics, he did not comment on his future plans.
P.E.I. Opposition parties planning leadership conventions in May 2026
The Liberal Party of P.E.I. and the Green Party of P.E.I. will choose their?next leaders in May 2026 , almost three years after Liberal leader Sharon Cameron and Green leader Peter Bevan-Baker resigned. No candidates have yet declared their intention to run for either position.? The next provincial election isn’t scheduled until 2027, but the gap leaves the King government in a position of strength as both parties seek to rebuild. The Liberals and Greens each have three MLAs in the legislature, with the Liberals serving as the Official Opposition.
Updated living allowance for N.S. post-secondary students
Post-secondary students in Nova Scotia will receive an?increased living allowance beginning this fall through the provincial Student Assistance Program.? The change, which aligns the program with the federal Student Financial Assistance Program, is in addition to a one-time grant for those receiving student assistance and investments in the Atlantic Open Education Resources announced earlier this year.? However, student unions are still pushing for a provincial housing strategy that reduces barriers to securing affordable housing.
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British Columbia
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Relationship between B.C. United Party and Conservative Party turns sour?
A proposed agreement to prevent vote splitting between B.C.'s two right-of-center parties ahead of the upcoming election has collapsed, leading to a contentious exchange between their leaders. ?B.C. United Leader Kevin Falcon accused B.C. Conservative Leader John Rustad of prioritizing personal ambition over the party's interests, while Rustad criticized Falcon for being unreasonable and self-serving. Talks between representatives of both parties involved a proposed non-competition agreement, with Conservatives running in 47 seats and United in 46. Despite common ground, Rustad rejected the offer without making a counter-offer, risking continued NDP governance, according to Falcon. Rustad, however, asserted that United's proposal was unacceptable and reiterated his commitment to fielding candidates in all 93 ridings, expressing disappointment with United's approach and accusing Falcon of previously declining merger talks. The discord highlights the parties' struggle for unity in the face of an imminent election, drawing criticism from NDP officials for their focus on internal disputes rather than addressing public concerns such as inflation, healthcare, and housing.?
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First Nations in B.C. will now be able to purchase land?
The British Columbia government has implemented changes to a law prohibiting First Nations from acquiring land, allowing them to directly purchase and own land in the province. ?Previously, First Nations had to establish a proxy entity, such as a corporation or trust, to buy land. The legislation, effective as of Tuesday, applies only to federally recognized First Nations and aims to remove barriers and costs associated with land ownership. Hugh Braker, a political executive for the First Nations Summit of British Columbia welcomed the move, calling it a relief and a step towards reconciliation, as it eliminates a discriminatory practice from colonial times. The changes facilitate First Nations' access to land for housing and healthcare centers, streamlining processes and reducing financial burdens.?
Surrey police request provincial intervention on policing budget?
The future of Surrey's transition to a municipal police force remains uncertain as the city has yet to approve a budget for 2024. ?Despite losing a court battle to retain the RCMP, the city's rejection of the police board's $141 million budget proposal has prompted the board to seek provincial intervention. The province, which mandated the transition last year, has offered financial assistance, but the city's refusal to approve the budget poses a challenge. The police board emphasizes the importance of collaboration to ensure a smooth transition, while some city officials express hesitance due to cost concerns. With the transition date set for November 29 and ongoing funding disputes, the future of Surrey's policing remains uncertain amidst a nearly two-year-long dispute.?
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Ontario
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Ontario Delivering Choice and Convenience by Expanding the Sale of Alcoholic Beverages Starting this Summer
Beginning in August, Ontario consumers will be able to purchase coolers and other ready-to-drink beverages at grocery stores that currently sell wine or beer . By November 2024, all convenience, grocery, and big-box stores will be permitted to sell ?beer, cider, wine and ready-to-drink alcoholic beverages. The province aims to facilitate a more open and convenient alcohol beverage marketplace, which will add up to 8,500 new stores where consumers can purchase these products. The government has committed to conducting a broader review of taxes and fees on alcoholic beverages by the end of the year.
Ontario Expanding Support for Aspiring Entrepreneurs
The Ontario government is allocating nearly $5 million over the next two years to enhance the Starter Company Plus program, aiding 500 more entrepreneurs in starting or expanding their businesses . This initiative will provide supports such as training, mentoring, and grants up to $5,000 through the Small Business Enterprise Centres. The program, which has already supported over 5,500 businesses and created over 6,300 jobs in the past five years, will now have an annual funding total of $6.5 million.
Ontario Building More Supportive Housing in Ottawa
The Ontario government is providing $9.5 million to support creation of over 100 supportive housing units in Ottawa through the Social Services Relief Fund . The funding is geared towards 102 studio apartments for individuals who experience or at-risk of homelessness, including 24 units for Indigenous people and four units for women.
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Toronto
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Toronto City Council Debates Major Streets Plan
Toronto’s city council has?approved the Major Streets Plan , a proposal aimed at increasing housing supply by relaxing zoning bylaws and allowing buildings up to six storeys high in various parts of the city. The plan was approved by the planning and housing committee earlier this month. While Mayor Chow has expressed support for the change, some groups criticized the proposal for?not going far enough . A city feasibility study previously warned that the 30-unit cap would make housing projects?financially unviable for developers in some areas ; this issue was addressed by a study presented with the plan on Thursday, and the limit was increased to 60 in the version of the plan passed by council.
Report reflects Toronto’s shifting strategy to address homeless encampments
On Wednesday, Toronto city staff released a report to be considered by council, which?could shift the city’s approach to encampments ?to a more outreach-focused strategy. The updated strategy would move away from using law enforcement to remove homeless encampments, working instead to lower barriers for people seeking indoor shelter and looking to recommendations from the Centre for Addiction and Mental Health to improve safety in shelters, while continuing efforts to increase permanent housing options. The report will go before Toronto’s economic and community development committee at its meeting on May 29, and if approved, will go to city council in late June.
Mississauga to elect a new Mayor
Voting has kicked off ?in Mississauga’s mayoral byelection, with early polls opening on Friday. The byelection comes after former mayor Bonnie Crombie resigned to take on her current position as Leader of the Ontario Liberal Party. 20 candidates running for mayor, with polls indicating Carolyn Parrish, a former councillor and MP, as the?front runner . Parrish?halted her participation in debates ?a few weeks ago, stating that she had been “personally threatened ” and did not feel safe appearing at debates. The election will be held on June 10th.
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Quebec
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New report shows French use on the decline in Quebec
A recent?report by the Office québécois de la langue fran?aise (OQLF) indicates a decline in the use of French in Quebec , especially in the workplace. The study reveals that only 56% of workers now use exclusively French at work, down from 60% five years ago. This trend is particularly pronounced among young workers aged 18 to 34 and in bilingual environments where English is increasingly used. Additionally, nearly a quarter of immigrants (24%) use English at work. The report also notes a rise in bilingual greetings and commercial signage not complying with language laws in Montreal . French Language Minister Jean-Fran?ois Roberge says the report doesn't consider recent French Language Charter changes but is open to further actions if needed.
Quebec's plan for agency to manage transit projects quickly draws criticism
Quebec is planning to?establish an independent agency to oversee public transit projects . This move aims to streamline management and ensure efficient project delivery. The decision comes in light of various challenges faced by large-scale transit initiatives, including delays and budget overruns. The new agency will be responsible for managing projects like the Réseau express métropolitain (REM) and others to enhance public transportation infrastructure across the province. This restructuring is intended to improve coordination, reduce bureaucratic hurdles, and foster better execution of transit developments.
Valéry Plante in Hollywood
Montreal?Mayor Valérie Plante is on an economic mission in Los Angeles to attract more TV series and film productions to Montreal . Accompanied by representatives from Montreal’s audiovisual sector, she met with major studios like Warner Bros., Netflix, and Disney. Plante highlighted Montreal's comprehensive ecosystem, technological capabilities, and cost advantages, supported by enhanced tax credits. Despite Montreal’s established reputation, fierce competition from Vancouver and Toronto necessitates ongoing promotion. Additionally, the mission promotes the "On tourne vert" initiative, which encourages sustainable production practices. The initiative has accredited 104 productions since its 2021 launch.
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