Day One | May 6th 2024
Ottawa
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Capital gains tax changes not included in Freeland’s proposed budget legislation
This week, Finance Minister?Chrystia Freeland ?announced plans to present proposed changes to capital gains taxation as a separate bill in Parliament. By strategically omitting strategic the most contentious aspect of the recent federal budget, the Liberals hope to focus attention on this specific issue and prompt the Conservatives to take a clear position on adjustments to the capital gains inclusion rate. The proposed changes aim to raise more revenue for key priorities such as housing. Despite facing criticism and resistance from businesses and entrepreneurs, Prime Minister Justin Trudeau and Freeland argue that these changes are necessary for fairness across generations and to fund new spending initiatives.
What You Need to Know
Pierre Poilievre: Memo to corporate Canada - fire your lobbyist. Ignore politicians. Go to the people?
In an op-ed in the National Post, Conservative Leader?Pierre Poilievre ?advised corporate Canada to change its approach by directly engaging with the public rather than relying solely on lobbying politicians. Poilievre criticized the Trudeau government's tax policies and highlights the ineffectiveness of traditional lobbying methods. He emphasized the need for businesses to communicate directly with workers, consumers, and retirees to garner support for their interests. Poilievre argued that politicians respond to political incentives, and if there are no consequences for bad decisions, more bad decisions will follow. He cited examples of businesses capitulating to government pressure without standing up for their interests, leading to detrimental outcomes. Poilievre advocated for a shift towards grassroots advocacy, where businesses make their case to the people and earn their support before expecting political action. He stressed the importance of effective communication with ordinary Canadians to influence government policies.
Liberal budget gets green light as Trudeau signals ‘openness’ to NDP demands?
The Liberal government's budget passed through the House of Commons with support from the NDP, avoiding a crisis for Justin Trudeau's minority government.?Jagmeet Singh , leader of the NDP, secured concessions from Trudeau on two key issues: the disability benefit and Jordan's Principle for Indigenous children. The NDP faced criticism from other opposition parties for backing the budget. Singh hinted at potentially withdrawing support in the future if concerns weren't addressed. The budget also includes measures like dental care and pharmacare.
Justin Trudeau announces commissioner to oversee modern Indigenous treaties?
This week,?Prime Minister Justin Trudeau ?announced the creation of a new independent body to oversee modern treaties with Canada’s Indigenous nations. This commissioner for modern treaty implementation will report directly to Parliament, independently reviewing the federal government’s actions and ensuring accountability for its modern treaty obligations. The office of the commissioner will be funded with $10.6 million over four years. The move reflects the government's commitment to fulfilling its obligations under modern treaties and advancing true nation-to-nation and Inuit-Crown relationships. The legislation to establish the commissioner's office will be introduced in Parliament at the end of June, following consultation with Indigenous modern treaty partners. This initiative builds upon the federal government’s modern treaty implementation policy developed with Indigenous partners last year, recognizing the need for independent oversight and accountability.
'We are getting closer' to cutting interest rates, Bank of Canada governor tells MPs
The Bank of Canada ?says they are getting closer to cutting interest rates as inflation shows signs of declining and staying low, according to Governor Tiff Macklem. Macklem told MPs that economic growth has slowed, resulting in an excess supply of goods and stabilized wage increases. He highlighted positive indicators of inflation moving in the right direction, particularly core inflation, which excludes volatile price swings like food and energy. However, Macklem cautioned that interest rates won't return to pre-pandemic levels and any rate reduction would likely be gradual. He noted differences in outlook compared to the U.S. Federal Reserve, emphasizing Canada's ability to set its own monetary policy. Macklem also addressed concerns about government deficits and potential impacts of tax hikes proposed in the federal budget.?
Federal cabinet minister Randy Boissonnault linked to PPE company embroiled in lawsuits?
Global News reports that federal Employment Minister?Randy Boissonnault ?remained listed as a director of a controversial medical supply company, Global Health Imports Corporation (GHI), for over a year while it competed for contracts. Despite being elected and appointed to cabinet, Boissonnault was listed as a director, which is prohibited under federal conflict of interest laws. GHI won contracts worth $8.2 million while Boissonnault was listed as a director. The company faced lawsuits over unpaid bills and unfulfilled deliveries, resulting in Alberta courts ordering GHI to pay over $7.8 million. Boissonnault's office stated he had no involvement in GHI since his election and initiated the process to remove himself as director after inaction from his co-founder. However, experts suggest this could still present a conflict of interest. Boissonnault's office denies any involvement in GHI's business practices.
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Alberta
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Alberta Persists in Preventing Release of Pension Plan Survey Data
The Alberta government has consistently denied requests to release data from public surveys on a potential provincial pension plan, despite multiple freedom of information requests by Postmedia . Finance Minister Nate Horner acknowledged the existence of the data but noted that it was withheld because it was considered incomplete. Legal experts and advocates argue that the government's rationale for not releasing the data is unjustified and goes against the principles of transparency. Additionally, other government departments have released similar survey data, highlighting an inconsistency in the handling of such requests.
What You Need to Know
The Alberta government has unveiled a 15-year Passenger Rail Master Plan to enhance passenger rail service in the province. The plan includes six key components, such as commuter rail systems linking the Calgary and Edmonton airports to their respective downtown cores, regional rail lines connecting the cities to national parks, and a Calgary-Edmonton regional rail line with a transit hub in Red Deer. The plan will be managed by a new Crown corporation and aims to analyze feasibility while prioritizing key projects to meet growing transportation needs. With increasing population and congested highways, Premier Danielle Smith emphasized the importance of rail as a more feasible solution compared to expanding road infrastructure.
Premier Danielle Smith is considering amendments to Bill 20, the Municipal Affairs Statutes Amendment Act 2024, after discussions with mayors and councillors during a government recess highlighted concerns about the bill's broad powers. The proposed legislation, which allows the provincial government to nullify municipal bylaws and remove councillors deemed not in the "public interest," has faced criticism for its lack of clear criteria for such interventions. In response to feedback, Smith announced plans to clarify these terms and introduce amendments. The bill also introduces changes such as banning electronic vote-counting machines and allowing corporate donations.?
As Ontario enacts a ban on cellphones in K-12 classrooms, Alberta has released a survey which considers similar measures, emphasizing the complex nature of cellphone use among students. Alberta Education is exploring various options for managing cellphone use effectively, stressing the importance of digital literacy and responsible online behavior. The Alberta Teachers’ Association supports restricting phones during class to minimize distractions, although they are cautious about blanket policies which could add pressure on school staff. Meanwhile, there continue to be mixed views on how to balance technological benefits against potential negative impacts on student mental health and safety.
The Alberta government has announced significant funding to enhance women's health research and improve infant survival rates, committing $10 million each to the Alberta Women’s Health Foundation and the Calgary Health Foundation. These funds aim to fill longstanding gaps in women's healthcare and support initiatives such as cervical cancer and heart disease research, as well as the development of rapid access clinics and pelvic floor health projects in Calgary. Additionally, Alberta is expanding its newborn screening program to include four new conditions, making it one of the most comprehensive in the country. This expansion is anticipated to dramatically improve early diagnosis and outcomes for affected infants.
The Alberta government continues to actively address the skilled labour shortage in the trades by launching a third phase of its?Alberta is Calling?campaign, offering a $5,000 Moving Bonus to attract workers from British Columbia, Québec, and Ontario. This initiative aims to fill critical job vacancies needed to support a growing economy, particularly in construction and infrastructure. Alberta is experiencing strong job creation, high wages, and GDP growth that outpaces the national average, bolstered by major investments like the Dow Path2Zero project. The campaign will emphasize Alberta's advantages, including a thriving job market, low taxes, and affordable housing.
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Atlantic Canada
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N.S. NDP unveil housing plan during biannual policy convention
Framed as a major plank in her party's next platform, N.S. NDP Leader Claudia Chender?announced ?new housing solutions aimed at combatting the cost-of-living crisis during their biannual policy convention in Halifax.??Titled?Homes Within Reach ,?the plan includes leveraging federal funding by prioritizing the use of prefabricated/modular construction, enabling the expansion of non-profit and co-op housing projects, expanding the Down Payment Assistance Program to 10 percent of the purchase price up to $50,000, and creating a renters’ tax credit for low- and middle-income households.??The plan builds on previously announced commitments including a rental tenancies enforcement branch, vacant land taxes, and investments in public housing.
What You Need to Know
Former Deputy Mayor Pam Lovelace enters Halifax mayoral race?
The race to replace outgoing Halifax Mayor Mike Savage is starting to heat up. On Friday, former deputy mayor and regional councilor for Hammonds Plains-St. Margarets Pam Lovelace?launched ?her campaign citing increasing affordable housing and infrastructure and improving services for rural and suburban areas as priorities.??Clay Bowser, a 27-year-old with a background in information technology, and Nolan Greenough, a 23-year-old U-Haul mechanic. have also?registered ?as unofficial candidates.??Halifax MP Andy Fillmore and municipal councilor Waye Mason have also expressed interest but have yet to formally launch their campaigns. The municipal election will be held on October 19.
Funding for expansion of non-profit daycare spaces in N.S.; none for private providers
The federal government has?refused changes ?to a deal it signed with N.S.’s previous Liberal government, three years ago. N.S.’s education and early childhood development minister, Becky Druhan, had been hoping to convince her federal counterpart to allow N.S. to access Ottawa’s $605-million daycare fund so that private daycare operators within the province could expand. Private daycare operators make up about 55% of N.S.’s daycare sector, and non-profits are the other 45%. On Thursday, the province announced?a new program , with $25 million dedicated to fund new construction or major renovations to create new childcare spaces for non-profit providers. Access to expansion funding for the province’s majority private childcare providers?remains unseen , though Minister Durhan says the government is exploring its options.?
N.B. delays introduction of forced rehab bill
Sherry Wilson, the N.B. Minister responsible for mental health and addictions, has said that?the province will not introduce the Compassionate Intervention Act , a piece of legislation that would allow some people to be forced into addiction treatment against their will, this spring. Wilson has said that the government needs more time to decide on the specifics of the bill. This news was welcomed by both N.B. opposition parties and the New Brunswick Psychiatrists Association, all of whom have expressed concern with the proposal.
Short-term vacation rentals in N.L. must join provincial registry?
The Government of Newfoundland and Labrador is moving forward with amendments to the?Tourist Accommodations Act requiring short-term accommodation hosts who list their primary residences to register with the province. Short-term rental platforms will also be required to remove any listing that is not registered and to share information about their listings in order to provide a more complete picture of the scope of short-term rentals throughout the province.
EUB rules carbon surcharges on fuel in N.B. are too high
Oil companies in N.B. will soon be able to recoup fewer costs from customers to help offset federal clean fuel regulations. The province’s Energy and Utilities Board?ordered ?an adjustment after reviewing the formula first put in place last July.??Customers are expected to see a reduction in the 10 percent range this week when the gas and diesel amounts are recalculated.
Opposition critics say that N.L.’s investment in student assistants doesn’t go far enough
Critics are saying that the $3 million funding allocation in N.L.’s 2024 budget to pay for more than 100 student assistant positions in schools?is not enough ?to address the issues within the province’s classrooms. N.L. NDP Leader Jim Dinn said that the funding won’t go far enough to address issues of violence within classrooms and high student-to-teacher ratios. PC education critic Paul Dinn echoed his brother’s sentiment, saying that the funding doesn’t go far enough.?
Public transit developments in P.E.I.
The P.E.I. government is?investing $1 million to freeze public transit fares , holding prices at the same rate from June 2022 until March 31, 2025. Energy and Climate Action Minister Steven Myers has called the funding provision an investment into reaching the province’s net zero goals. Meanwhile, the municipalities of Charlottetown, Cornwall and Stratford have been working with a consulting group to?develop a plan for an expanded public transit system . After surveying 800 residents, the municipalities found that top priorities are wider service, longer hours, and more frequency. The proposed plan will create less overlap between routes, more connection to the airport and hospital, and on-demand service in parts of Cornwall and Stratford.
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British Columbia
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Trans Mountain pipeline expansion gets green light to open for May 1
The company says the first tanker with crude pumped through upgraded pipeline will leave Burnaby in mid-May .Canada’s energy regulator has finally given the green light to Trans Mountain corporation for the pipeline to begin shipping oil, and May 1st?will be the pipeline’s first day. This announcement is particular momentous because it marks the end of a 12-year journey – the Trans Mountain pipeline was first proposed in 2012 and has been one of the costliest (and controversial) infrastructure projects in recent history. With a commercial start day of May 1st, the first tanker is not expected to load with oil from the new line until the middle-of-May, due to logistics and ship timing. The addition of the Trans Mountain Pipeline will increase the system’s shipping capacity up to 890,000 barrels as well as help improve the price that Canadian oil companies receive.
What You Need to Know
Since Sunday (04/28), London Drugs has closed down its stores across Western Canada due to a cybersecurity incident. This incident has also shut down the company’s phone lines, but pharmacy assistants are still working, to assist individuals with their medication needs. At this point, London Drugs says there is no reason to believe that personal customer or employee data was impacted during the breach. Across Manitoba, and all the way to Vancouver Island, London Drugs has 79 locations that employ more than 8,000 people. As of right now, London Drugs’ online retailer looks to back up and running, but as of the last update on Monday, in-person retailers are still closed. To investigate the incidence, the retailer has hired third-party cybersecurity experts to assist with remediation, a forensic investigation and containment.
One year into the three-year decriminalization project, B.C. asked the federal government for assistance last week in re-criminalizing drug use in public spaces, such as hospitals and public parks. This week, Minister Ya’ara Saks of Mental Health and Addictions announced that they need more information from the B.C. government before she makes a decision regarding B.C.’s demand. After this demand, Conservative Leader Pierre Poilievre has demanded that the Liberal Government refuse Toronto’s proposed decriminalization of drugs, although, Toronto Public Health has decided that in their pilot project, public drug use will remain illegal, as they are continuously monitoring B.C.’s pilot project.?
B.C. secured 8 new sites for its BC Builds program, which is a project that aims to build more middle-income rental housing. The 8 new sites are previously owned by the province, or non-profits or company groups, and then pre-zoned to be built upon. These properties include some in Langley, Kelowna, Kamloops, East Kootenay region and some properties on Vancouver Island. The goal of this project is to build with low-cost financing and to fast-track the build on the rental homes. The program, as of right now, should deliver about 524 additional, and affordable homes to the province.
Port Moody council rescinded a motion supporting a ceasefire in Gaza following allegations of threatening online behavior by Free Palestine activists. The motion, passed 6-1, supported the federal government's call for a ceasefire, humanitarian aid access, release of hostages, and restrictions on arms exports to Israel. Mayor Meghan Lahti and council members faced online harassment and threats, leading to a reconsideration of the motion. Despite the backlash, some councilors stood by their original position, emphasizing the need for peace and dialogue between Jewish and Palestinian residents.
Teal Jones Forestry, the same company that was at the centre of the Fairy Creek logging protests, now seems to be in financial trouble. The company has filed a petition to the B.C. Supreme Court, asking for creditor protection, as it has become increasingly difficult to balance the books. The company is an extremely important and major forestry company within B.C. and has operations in several American states – the goal of the court application is to hold off creditor’s actions until some of their internal revenue sources can be readjusted. The company’s challenges are due to external market factors, but the company previously dealt with many significant issues during the Fairy Creek protests. Within their court application, Teal Jones agrees to possibly selling one of their mills in the U.S, along with some forest land in Haida Gwaii. Thus far, it is unclear how this news will affect the industry and its workers in B.C.
The B.C. government’s rule that aims to limit short-term rentals to a homeowner’s principal residence plus one other secondary suite or dwelling, has come into force on May 1. This rule will affect more than 60 communities, most particularly, the Okanagan region, as well as Kelowna, which saw more than 2 million overnight trips in 2023. This new rule creates uncertainty for tourists, as well as the tourism sector at large, but the B.C. government hopes this rule will free up some much-needed housing for long-term residents. The tourism industry is worried the closure of Airbnb’s will affect the levels of tourism, as the industry provides about $2.4 billion to the economy in Central Okanagan. The rule on Airbnb’s will severely limit the amount and availability of affordable accommodations. However, the provincial government and the hotel industry says this will allow more hotels to open, and for the industry to flourish.
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Ontario
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Ford's Progressive Conservatives win two?by-elections
Ford’s Progressive Conservatives have won both Ontario byelections. ?PC candidate Zee Hamid won the riding of Milton by 2,400 votes, and Steve Pinsonneault secured 57 per cent of the votes in Lambton-Kent-Middlesex. Premier Ford and several caucus members had made frequent stops and announcements in Milton, while Lambton-Kent-Middlesex remains as a party stronghold.?
What You Need to Know
Construction on Highway 413 beginning in 2025
Ontario has reached an agreement with the federal government on environmental protections for construction, meaning that the province is now ready to put shovels in the ground for Highway 413 . The project, a central component of the government’s transport plan for the Greater Golden Horseshoe, is anticipated to create thousands of union jobs and contribute approximately $350 million to provincial GDP. Ongoing work includes evaluating soil composition and bedrock depth, in preparation for a market sounding event in mid-May to discuss technological and strategic methods for efficient construction.?
Ontario introducing new policy to promote the skilled trades
The Ontario government is introducing new policy and legislative measures intended to attract young people to the skilled trades. ?The Ontario Youth Apprenticeship Program will soon have a new stream, called Focused Apprenticeship Skills Training, to allow students in grades 11 and 12 to engage in more apprenticeship learning through additional co-operative education credits. The new measures would also create alternative pathways for people interested in the skill trades who cannot meet certain apprenticeship academic entry requirements.?
Forest access road infrastructure receiving additional $6 million investment
The Ontario government has announced a $6 million top-up to the Provincial Forest Access Roads Funding Program, bringing its total to $59 million for 2024-25 .?This program provides funding for construction and maintenance on 19,500 kilometres of public forest access roads and other essential infrastructure.
Ontario proposing legislative changes to make hiring processes fairer for jobseekers
The Ontario government is proposing an increase to the maximum fines for violating the? Employment Standards Act ?to the highest level in the country . Violations of the ESA include failure to pay wages, penalizing employees for taking parental or pregnancy leave, and paying employees unequally on the basis of gender. Ontario has also proposed requiring large employers to disclose whether a job vacancy exists or not.
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Toronto
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Poll Reveals Toronto Residents Disapprove of Metrolinx's Performance, while Mayor Olivia Chow's Approval Stabilizes
A?recent Liaison Strategies poll ?reveals that nearly two-thirds of Toronto residents expressed dissatisfaction with Metrolinx the provincial agency tasked with transit development in the Greater Toronto Area. The poll highlights that 60 percent of respondents are unhappy, primarily blaming project delays such as the much-anticipated Eglinton Crosstown light rail line, now expected to miss its 2026 completion date. Despite Metrolinx CEO Phil Verster's assurances of progress, public concern remains, fueled by his recent contract extension and salary.
Meanwhile, Mayor Olivia Chow's approval rating has stabilized at 52 percent, slightly declining by one point since March. This follows her initial high approval rating of over 70 percent during the first few months of her tenure after replacing John Tory last summer.?Chow’s popularity took a hit after the council approved a significant 9.5 percent property tax increase in February, and was further strained by the launch of the vacant home tax program and ongoing issues with the TTC.
What You Need to Know
Toronto Faces Uncertainties in Drug Decriminalization Efforts
Toronto's pursuit of drug decriminalization faces uncertainty ?amid provincial resistance and renewed debate sparked by British Columbia's policy revision. Toronto's Medical Officer of Health, Dr. Eileen de Villa, advocates treating addiction as a health issue, emphasizing prevention and treatment. Despite broader intentions than B.C.'s approach, Ontario Premier Doug Ford's resistance suggests a challenging path ahead. Dr. de Villa stresses the necessity of a holistic strategy, noting that final decisions rest with elected officials.
Toronto's Committee Recommends Maintaining E-Scooter Ban
The Infrastructure and Environment Committee of Toronto recommends city council?to continue prohibiting e-scooters , citing safety and accessibility concerns. Despite the province's pilot project for "low-speed vehicles," the committee's stance aligns with disability advocates who view e-scooters as hazards, especially to vulnerable groups. The city council will review this proposal on May 22.
Challenges Await Toronto’s Next Chief Planner Amid Housing Crisis
As Toronto?seeks a new chief planner ?following Gregg Lintern's 2023 retirement, the city faces pressing issues of housing and transit development. The incoming planner will need to address the requirement for 285,000 new homes by 2030, including 65,000 affordable units. With the mayor's enhanced powers, the planner must balance community engagement with policy reforms, ensuring transparent communication to ease public resistance and support urban growth.
Mississauga Mayoral Candidates to Discuss Food Security?
Food Banks Mississauga has organized a debate on May 23, where mayoral candidates will?address rising food insecurity . The network, which provided nearly six million meals last year, anticipates needing over 10 million this year due to a 20% increase in users. This critical discussion comes as twenty candidates compete in the upcoming mayoral byelection.
Proposed Changes to Increase Housing Options in Toronto
City planners recommend allowing more?townhouses and small apartment buildings on major streets ?within Toronto's residential areas to accommodate population growth. This strategy aims to diversify housing options and distribute development more evenly, balancing growth with the preservation of neighborhood character. The proposal is set for review by Toronto's Planning and Housing Committee, highlighting the importance of monitoring its impact on urban development and green spaces.
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