Thursday, November 03, 2022

Can anyone block Ontario legislation designed to impose a contract on education workers?

Isaac Callan and Colin D'Mello -

Ontario Premier Doug Ford and members of province's legislature pay tribute to Queen Elizabeth in Toronto on Wednesday September 14, 2022.

Tensions flare over Ontario’s plan to use notwithstanding clause to quash education strike

The Canadian Civil Liberties Association is calling Bill 28 a “catastrophe” for Canadian rights and freedoms and vows to fight the legislation in court.

The Doug Ford government's decision to invoke the rarely used notwithstanding clause to impose a contract on education workers in Ontario has raised eyebrows and ire from as far away as the federal government.

Canada's justice minister and prime minister both condemned the move, and an emergency debate was demanded on Parliament Hill.

But it remains unclear if anyone can — or will — block the province's new anti-strike legislation.

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As unionized education workers across Ontario prepare to strike from Friday "until further notice" over broken contract negotiations, the province is rushing through legislation that will outlaw the strike and impose a contract on them.

The proposed bill — Keeping Students in Class Act — relies on the notwithstanding clause to block challenges from courts and tribunals.

The notwithstanding clause, or Section 33 of the Charter of Rights and Freedoms, gives provincial legislatures or Parliament the ability, through the passage of a law, to override certain portions of the Charter for a five-year term.

In the Ford government's new legislation, the clause is used to protect the bill from potential legal challenges — explicitly overriding Canadian human rights laws.

"The Act is declared to operate notwithstanding sections 2, 7 and 15 of the Canadian Charter of Rights and Freedoms and the Act will apply despite the Human Rights Code," the bill's explanatory note says.

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In government talking points obtained by Global News, Ontario's minister of education is instructed to say that the province does "not take this step lightly."

"We believe the Act, if passed, is justified and would not violate the Charter or Human Rights Code," one bullet point reads, despite the wording of the proposed law.

The talking points argue that the province's hand "has been forced."

"What (Doug Ford) is doing — I think everybody would agree — is something he can do," Andrew McDougall, an assistant professor with the University of Toronto Scarborough, told Global News.

He noted the notwithstanding clause was generally used in "the most extreme situations."

"A lot of people would, I think, say that this particular situation falls short of that and it's an inappropriate use of it even though he might technically be allowed to use it."

Read more:

Canada's justice minister is among those who say a standoff with CUPE does not meet the threshold the clause was designed for.

David Lametti indicated on Tuesday the federal government has the option to challenge Ontario in court but has yet to make a decision on next steps.

“The use of the notwithstanding clause is very serious. It de facto means that people’s rights are being infringed and it’s being justified,” Lametti said.

Canadian Prime Minister Justin Trudeau called its use "wrong."


However, the Ministry of Justice would not explain or elaborate on the potential to intervene — either if it would act or how that might work.

In response to questions from Global News, a spokesperson for the Ministry of Justice condemned Ontario's use of the clause and said the province "must explain" its actions but did not lay out any steps Ottawa might take.

"I will be waiting with great interest to find out if (the minister) comes up with any particular legal argument in the next couple of days," McDougall said.

One option that is theoretically available to the government is the disallowance clause of the constitution. It allows the federal government to overrule and throw out a provincial law within two years of its creation.

Carissima Mathen, a professor with the University of Ottawa's law program, said the clause is not a realistic option for the government.

"It would probably lead to a serious rupture in federal-provincial relations that would be destabilizing for the entire country," she said.

"It is understandable that people would be looking to unorthodox methods to stem a disturbing trend of treating the Charter of Rights as an inconvenience rather than one of Canada’s defining features. Unfortunately, there is not much that the federal government, acting alone, can do about that."

The Prime Minister's Office said Wednesday night that Trudeau and Doug Ford had spoken about Ontario's use of the notwithstanding clause.

A statement said Trudeau "was clear that the preemptive use of the Canadian Charter of Rights and Freedoms’ notwithstanding clause is wrong and inappropriate."

Mathen said the federal government could refer the question of limits to the notwithstanding clause to the Supreme Court of Canada for an advisory opinion or even pass its own legislation "that imposes limits on use of the clause at the federal level, and urge provinces to do the same."

The Canadian Civil Liberties Association — which acknowledges that little can be done to force the Ford government to change course — also indicated Ottawa should consider reopening the constitution to remove the availability of the clause.

Read more:

In Ottawa on Wednesday, the NDP sought and was denied an emergency debate on events at Queen's Park.

“There is a clear interest for this parliament to debate the trampling of constitutional rights and the implication it will have for everyone in Ontario and across the country," stated a letter to the Speaker, signed by NDP MP Matthew Green.

The NDP also introduced an unsuccessful unanimous consent motion Wednesday asking the House of Commons to “reject any intervention aimed at restricting the collective rights of workers to freely negotiate their working conditions.”


Ontario's proposed bill also sets out to limit the ability of tribunals and arbitrators to step in.

It says that an arbitrator, mediator-arbitrator, arbitration board or any administrative tribunal will not be able to make any decisions around the provisions within the proposed law or determine if it flies in the face of the Human Rights Code.

The same parties will not be able to decide if the actions of the government or its ministers are "constitutional or ... in conflict with the Human Rights Code."

The Ontario Human Rights Commission — the province's human rights watchdog — told Global News it had "no comments."

— with files from Global News' Rachel Gilmore

'Dangerous' and 'draconian': Labour experts pan Ontario's notwithstanding clause use

TORONTO — Ontario's pre-emptive use of the notwithstanding clause in legislation intended to prevent a strike by education workers is a dangerous and draconian move that could have implications for labour negotiations across the country, experts say.




The Progressive Conservative government passed legislation Thursday that imposes a contract on education workers with the Canadian Union of Public Employees and bans them from striking. The legislation says the government intends to invoke the notwithstanding clause to keep the eventual law in force despite any constitutional challenges.

It's the first time in Ontario's history, and just the second time in Canadian history, that the controversial clause -- which allows the legislature to override parts of the Canadian Charter of Rights and Freedoms for a five-year term --has been used in back-to-work legislation.

"This intervention is incredibly dangerous because it is basically the government saying, we know we are violating these workers' constitutional rights, and we're going to do it anyways," said Stephanie Ross, the director of McMaster University's school of labour studies.

The use of the notwithstanding clause has roiled unions and shocked observers across the country, who fear it could embolden other governments to quash one of the most powerful pieces of leverage a union has in negotiations, without constitutional recourse.

The move not only has significant implications for other major education unions currently negotiating with the province, but for unions across the country, Ross said.

"I don't think any worker in Ontario or Canada should rest easy with the recourse to the notwithstanding clause to override workers' rights," she said.

While the Saskatchewan government invoked the notwithstanding clause in 1986 in strike-ending legislation, Ontario has taken the unprecedented step to include the clause in legislation before workers hit the picket line.

Education Minister Stephen Lecce has defended the use of the clause, saying it is to prevent disruptions to classroom learning because of strikes or litigation.

Despite the legislation, CUPE has said its 55,000 education workers, including custodians and education assistants, will strike Friday and "until further notice," risking fines imposed in the legislation of up to $4,000 per employee and $500,000 for the union per day.

Mediation between CUPE and the government concluded Thursday with no deal ahead.

Lecce had said he wouldn't negotiate further unless the union cancelled its strike.

In negotiations, the union had asked for annual salary increases of 11.7 per cent for its workers, who it says make on average $39,000 and are among the lowest paid in schools. The government has said the new, imposed four-year deal would give 2.5 per cent annual raises to workers making less than $43,000 and 1.5 per cent raises to all others, though the union has argued those figures are inflated.

The use of back-to-work legislation has been increasingly common since the 1980s, said Charles Smith, co-author of "Unions in Court," a history of the labour movement's engagement with the Charter. He said it eventually led the Supreme Court in 2015 to declare the right to strike as constitutionally protected.

Smith noted a union still must follow several steps before it can legally picket, including negotiations, a strike vote and a strike notice.

He called Ontario's move "extremely heavy-handed" and "draconian."

"The union played by the rules and the government is essentially rewriting those rules in its favour," said Smith, associate professor at St. Thomas More College at the University of Saskatchewan.

The Ontario Liberal government's 2012 back-to-work legislation imposing contracts on striking education workers and teachers was eventually found to have violated bargaining rights, with the government paying millions of dollars in compensation to the unions.

This time around, the government's use of the notwithstanding clause could be seen as a way to avoid those financial costs, said Alison Braley-Rattai, associate professor of labour studies at Brock University.

"It is hard not to read it any other way than wanting to dictate contract terms then not having to pay out the other end for a violation of their Charter rights," she said.

While the union has limited legal routes to contest the law, Braley-Rattai said the move could spark momentum for a larger political response.

"It takes the ability to organize quickly and comprehensively to capitalize upon that spark," she said.

Unions across the country have voiced solidarity with the CUPE education workers, calling on members to support an Ontario-wide protest on Friday and in some cases vowing to walk out themselves.

Canadian Labour Congress president Bea Bruske said in her 30 years in the labour movement, she does not "remember a time when there was this much immediate response to something that egregious."

She said along with joining picket lines, the congress has discussed possible work-to-rule measures.

"With this government, we have no choice but to look at every option possible as a fight back," she said.

"If other provinces adopt this kind of tactic, that's hugely problematic. But what I'm worried about is that it will also embolden employers to use a bully method, rather than coming to the bargaining table to actually be proactive."

Ross, the McMaster professor, said other support measures could include donations to CUPE or partial student and teacher walkouts. There is also the possibility of wildcat strikes -- informal, illegal actions where unionized workers strike without following the formal legal process.

But she said the first test of broader labour movement solidarity in this dispute will come Friday, if scheduled job action goes forward.

"We'll be watching to see not just how mobilized the union itself is but whether or not the broader labour movement comes out in support and in what numbers," Ross said.

This report by The Canadian Press was first published Nov. 3, 2022.

Jordan Omstead, The Canadian Press


Trudeau tells Ford use of notwithstanding clause is 'wrong and inappropriate' in call

Yesterday 

OTTAWA — Prime Minister Justin Trudeau told Ontario Premier Doug Ford on Wednesday that his pre-emptive use of the notwithstanding clause in legislation intended to keep education workers from striking is "wrong and inappropriate."


NDP MP calls for emergency debate on Ford's use of notwithstanding clause© Provided by The Canadian Press

"The Prime Minister emphasized the critical importance of standing up for Canadians’ rights and freedoms, including workers’ rights," Trudeau told Ford, according to a readout of the call provided by the Prime Minister's Office.

"He was clear that the pre-emptive use of the Canadian Charter of Rights and Freedoms' notwithstanding clause is wrong and inappropriate, and should only ever be used in the most exceptional of circumstances."

Ford's office, meanwhile, said the premier told the prime minister that allowing education workers to strike would have an "unacceptable" effect on students after two years of disruptions due to the pandemic.

"He also reiterated that Ontario is determined, if necessary, to pass legislation to keep classrooms open and ensure certainty and stability for parents and students now and in the future," the readout provided by the province said.

The union representing the 55,000 affected education workers in Ontario said it still plans to hold a strike starting Friday and it will continue indefinitely, despite the looming legislation expected to pass Thursday that would make that illegal.

The legislation says the government intends to invoke the notwithstanding clause -- which allows the legislature to override parts of the Canadian Charter of Rights and Freedoms for a five-year term -- to keep the eventual law in force despite any potential constitutional challenges.

The Liberals have been critical of the Ford government this week, with Trudeau previously describing the legislation as outright "wrong."

Earlier Wednesday, Trudeau said his government was looking at its options to respond to Ford's use of the notwithstanding clause.

He made the brief comment in French outside the House of Commons moments after NDP Leader Jagmeet Singh called for more action from the federal government.

Related video: Interim NDP leader Peter Tabuns among 16 MPPs kicked out of Ontario legislature    Duration 2:55    View on Watch

"We’re seeing right now a clear attack on workers, on vulnerable workers and on workers’ rights. There has to be a response," Singh told reporters Wednesday afternoon.

"We're open to any solution to be put on the table and to evaluate if it will work or not and if it will help workers' rights."

Federal Justice Minister David Lametti didn't bite on a question earlier Wednesday about what options might be on the table.

"I'm not going to discuss options here," he said before a Liberal caucus meeting, though there are "a number of different things one might do."

Lametti said the pre-emptive use of the clause is "very serious" and "anti-democratic."

"It guts Canadian democracy," he said. "It means the Charter doesn't exist."

An NDP MP, Matthew Green, called on the House to hold an emergency debate on the issue Wednesday afternoon.

He called Ford's government "authoritarian" and accused the premier of being a "liar" who is misleading Ontarians about the impacts of the choice to use the notwithstanding clause.

"This particular case could present a precedent for provincial governments across the country that might seek to use this to further undermine the collective agreement rights of workers," Green told reporters earlier in the day.

The House deputy Speaker denied the request, saying the conditions for an emergency debate weren't met.

Green also called on the House to unanimously condemn the Ford legislation on Wednesday afternoon, but some Conservative MPs voted down his motion.

Trudeau and others have called on federal Conservatives to respond, but MPs on their way into a Conservative caucus meeting Wednesday morning declined to comment.

The Canadian Union of Public Employees, which is representing the workers, presented a counter-offer late Tuesday night in response to the imposed contract terms in the legislation but has not yet provided details about the proposal.

Ontario's education minister has suggested that there won't be much movement at the bargaining table this week and insisted that any new offer from the union must include cancelling the strike.

This report by The Canadian Press was first published Nov. 2, 2022.

Marie-Danielle Smith, The Canadian Press



GENERAL STRIKE!

Unions express solidarity with education workers planning strike, OPSEU plans walkout

TORONTO — Union members across Ontario are expected to join picket lines in solidarity with education workers planning a strike Friday, with one union saying its workers will also be walking off the job for the day in an expression of support.

Education workers with The Canadian Union of Public Employees are set to begin an indefinite strike that will shut many schools around the province after the government passed legislation Thursday imposing a contract on them. The bill also bans a strike and threatens fines for those who don't comply.

The government's legislation has drawn the ire of several unions, including the Ontario Public Service Employees Union, which said its 8,000 education workers, will stage a walkout Friday in solidarity with CUPE.

OPSEU president JP Hornick said the province's legislation was undemocratic.

"I think that the Ford government picked a fight with a group of workers, primarily women, primarily the lowest paid people in the education sector and thought that he and Lecce would be able to just force them down," she said, referring to Premier Doug Ford and Education Minister Stephen Lecce.


"And what he did was light a spark. And he can't control where that goes."

OPSEU's education workers include education assistants and early childhood educators.

Most of the boards where those members work already planned to close schools on Friday, saying they couldn't operate safely without CUPE members that include custodians, librarians and educational assistants. But at least two boards, in Sudbury and Simcoe County, announced Thursday they would also close schools as a result of OPSEU's planned walkout.


OPSEU's solidarity walkout could escalate tensions in its own negotiations with the government, scheduled to begin later this month.

"(Members) know that the way this legislation is written that it sets a new norm, and it sets the tone for what they can expect in their bargaining," Hornick said.

Meanwhile, the Elementary Teachers' Federation and the Ontario Secondary School Teachers' Federation, who are both in negotiations with the government, said they had no similar solidarity walkout plans but were encouraging members to join CUPE picket lines before and after work.

ETFO's president said the union was lobbying legislators and contacting parents and community groups to rally support for CUPE.

"This is such a flagrant attack on democracy and our democratic rights at this particular time," said Karen Brown.

Related video: Frontline education staff poised to walk off job tomorrowt Time 0:03
Duration 2:51
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"We are working... to examine what are some options, what is available, and how we can continue to support and put pressure on this government."

Other unions have also spoken out in support of CUPE, notably the Labourers' International Union of North America, which endorsed Ford's Progressive Conservatives in the June election.

In response to the planned strike, daycamps have cropped up across Ontario, including some run by operators expressing support for the education workers.

Kristen Dennis, owner of the Leslieville school of dance and music, said she was prepared to hold daycamps for the extent of the strike after Friday's registration filled up in less than 24 hours.

She said she "absolutely" stands with education workers and working parents.

"I kind of felt like a little bit conflicted. I should be out there picketing with the education workers, but instead, we're running this programming," she said.

"We would much rather cancel the program and see some sort of an agreement be reached between the two sides."

Elizabeth Snell, owner of dance and circus arts studio Artists' Play in Toronto, said she cut fees for a daycamp running on Friday and opened more spots than usual for the program that typically runs on school PA days.

"I'm just trying to make it so that it's more affordable and accessible for people that need it. But still fun and engaging for the children," she said, adding she was prepared to hold daycamps for the extent of a strike.

"I support the education workers. I just hope that there can be a clear discussion and that they can come to some sort of agreements," said Snell, who has three school-aged children and whose husband is a teacher.

"It's putting everybody in a bad situation, but I don't think we can be upset at the people wanting to stand their ground."

Education Minister Stephen Lecce said the government had no choice but to proceed with its legislation, which includes the notwithstanding clause that allows the legislature to override parts of the Canadian Charter of Rights and Freedoms for a five-year term.

"For the sake of Ontario's two million students, to keep classrooms open, CUPE has left us with no choice but to pass the Keeping Kids in Class Act," he said.

The government originally offered raises of two per cent a year for workers making less than $40,000 and 1.25 per cent for all others, but says the new, imposed four-year deal would give 2.5 per cent annual raises to workers making less than $43,000 and 1.5 per cent raises for all others.

CUPE has said that framing is not accurate because the raises actually depend on hourly wages and pay scales, so the majority of workers who earn less than $43,000 in a year wouldn't get 2.5 per cent.

CUPE has said its workers, which make on average $39,000 a year, are generally the lowest paid in schools and have been seeking annual salary increases of 11.7 per cent.

- With files from Allison Jones

This report by The Canadian Press was first published Nov. 3, 2022.

Jordan Omstead, The Canadian Press
Ottawa orders Chinese companies to exit three Canadian lithium miners

Naimul Karim -
Financial Post

Industry Minister François-Philippe Champagne said that following a “multi-step national security review process,” the government has asked Sinomine Rare Metals Resources Co., Chengze Lithium International Ltd. and Zangge Mining Investment Co. to divest from Canada’s Power Metals Corp., Lithium Chile Inc. and Ultra Lithium Inc.

Ottawa has ordered three Chinese companies to divest their investments in three Canadian junior lithium miners as it looks to strengthen its hold on this country’s critical minerals projects amid rising demand for the commodities.

Industry Minister François-Philippe Champagne said that following a “multi-step national security review process,” the government has asked Sinomine Rare Metals Resources Co., Chengze Lithium International Ltd. and Zangge Mining Investment Co. to divest from Canada’s Power Metals Corp., Lithium Chile Inc. and Ultra Lithium Inc., respectively.

These steps were taken under section 25.4(1) of the Investment Canada Act (ICA), which gives the government the power to require non-Canadians “to divest themselves of control of” a Canadian business if it believes the investment could be injurious to national security.

“In accordance with the ICA, foreign investments are subject to review for national security concerns, and certain types of investment — such as those in the critical minerals sectors — receive enhanced scrutiny,” Champagne said in a statement. “Therefore, we reviewed a number of investments in Canadian companies engaged in the critical minerals sector, including lithium.”

Calgary-based Lithium Chile said “it was reviewing the options and potential outcomes of the order with Chengze.”

It added that the investment made by Chengze has given Lithium Chile a “significant cash position,” but the government’s order “does not affect” the company’s assets or lithium resources.

“The assets operated by (Lithium Chile) are owned through its South American subsidiaries in Chile and Argentina. The assets operated by the company are not Canadian assets, nor the company’s significant lithium resource,” Lithium Chile said in a statement. “The investment into the company by Chengze, does not equate to a control position, nor does it give Chengze special rights in respect to the outcome or decisions made by the company.”

Lithium Chile said the investments by Chengze in 2022 followed ICA policies and were approved by the TSX Venture Exchange.

The company added that it values the experience and expertise of Chengze and its ability to “efficiently develop its assets.”

Jonathan More, chief executive of Power Metals, said the company was reviewing the matter with legal counsel.

“While we are surprised by Canada’s stance towards Chinese investment into Canada’s critical minerals industry, it clearly shows that they see the opportunity and assets of Power Metals as too valuable for such foreign investment,” he said in a statement.

Patricia Mohr, an economist and former vice-president at the Bank of Nova Scotia, said the government has a tricky situation on its hands since Canada needs to attract foreign investment to its critical mineral industry, but there can be questions about the net benefits for the country when state-owned or controlled enterprises are involved.

“China dominates world supplies of many critical materials … there is some need to prevent supply chain vulnerabilities from affecting industry in Canada and the West, particularly as the electric-vehicle and renewable-energy industries develop,” she said.

Pierre Gratton, chief executive of the Mining Association of Canada, said the industry is very sensitive to both the geopolitical context and the difficult choices the government and its allies are facing.

“Access to capital and markets is essential to allowing Canada to provide responsibly sourced critical minerals required for global decarbonization,” he said.

The government’s orders come days after Canada raised the bar that foreigners must clear to join the country’s critical minerals industry. Any attempt by a state-owned enterprise to purchase assets in the sector can now trigger Part IV.1 of the ICA, which could require an extended review on the grounds that it could be “injurious” to national security.

“These new and strengthened efforts will improve the administration of Canada’s investment review regime. To ensure transparency, we will continue to announce outcomes of such orders going forward,” Champagne said in a statement.

He added that the government’s decisions were based on the advice of “critical minerals subject matter experts, Canada’s security and intelligence community, and other government partners”

The policy shift comes after a parliamentary committee in March said Canada should launch a full security review for every investment by a company influenced by an “authoritarian state,” since that meets the ICA’s threshold of potentially being “injurious to national security.”

Champagne’s decision to opt not to do so in January when Chinese miner Zijin Mining Group Co. Ltd. acquired Neo Lithium Corp., a mining company formerly listed in Canada that owned a lithium project in Argentina, led to controversy.

Former Conservative leader Erin O’Toole criticized the federal government for allowing Zijin Mining to acquire Neo Lithium since the demand for critical minerals such as lithium needed for electric batteries was rising. He said the government had not done a proper security review.

Champagne at the time said the deal was thoroughly reviewed . He also said Neo Lithium’s project would not be mining for lithium hydroxide but lithium carbonate, which Canada would not be relying on to produce electric batteries.


China dominates the electric-vehicle (EV) supply chain through its refining and processing industries, even though most of the metals required by EVs, such as lithium, nickel and cobalt, are mined outside the country.

Democratic countries in North America and Europe have been banding together to offset China’s dominance of the EV supply chain.

For example, Washington’s recently passed Inflation Reduction Act offers a US$7,500 subsidy to encourage the production of EVs in North America, while Minister of Finance Chrystia Freeland has repeatedly stressed the need for “ friendshoring ,” an idea that democratic allies would build supply chains through each other’s economies and tackle the influence of authoritarian regimes in the energy sector.

Zhao Lijian, a spokesperson for China’s foreign ministry, urged Canada to stop suppressing Chinese companies.

“The Canadian side has overstretched the concept of national security and placed arbitrary curbs on normal trade and investment cooperation between China and Canadian companies,” he said at a press conference on Nov. 3. “This is against the principle of market economy and international economic and trading rules the Canadian side has been talking about. It does no good to the development of the target sectors, and hurts the stability of global industrial and supply chains.”


Forced sale of strategic mineral interests important step to boost security: experts


TORONTO — The move by the federal government to force Chinese companies to sell their investments in three critical mineral companies is being called a meaningful and necessary escalation of Canada's defensive posturing on strategic assets.

The order Wednesday from Innovation Minister François-Philippe Champagne, which followed an announcement last week that he would be limiting foreign state-owned companies in the industry, shows the government is responding to a changing world, said Aaron Shull, managing director at the Centre for International Governance Innovation.

"They're on their front foot now," said Shull.

The decision to force Chinese divestment of critical mineral companies Ultra Lithium Inc., Lithium Chile Inc. and Power Metals Corp. comes in sharp contrast to the government allowing a Chinese state-owned investor to take over Neo Lithium Corp. in January without an in-depth security review.

The shift comes as hostile states use every tool short of armed conflict, whether diplomatic, informational, or economic, to advance their interests that are often not aligned with Canada's, said Shull.

"The world is fundamentally different," he said. "Adversarial states are leveraging every aspect of state power that they possibly can."

The timing of the move comes weeks after Deputy Prime Minister Chrystia Freeland gave a speech at the Brookings Institute in Washington, D.C., expanding on the 'friend-shoring' strategy she and U.S. Treasury Secretary Janet Yellen have been speaking about for months, which focuses on the need to close ranks on trade issues with countries whose interests are aligned.

It also comes after the U.S. moved in early October to restrict the exports of microchips and chipmaking equipment to China, as well as restrictions on U.S. citizens working for Chinese chipmakers, as economic actions gain momentum.

"This is all connected. I don't think there's a coincidence here," said Shull.

Canada has taken actions against Chinese state-owned investors in the past, including blocking efforts to take over TMAC Resources Inc. in 2020 and Aecon Group Inc. in 2018, and orders for China Mobile to divest its Canadian affiliate CMLink in late 2021, but this latest move comes as Canada increasingly recognizes mineral production as a security issue.

In announcing the latest decision, Champagne said in a written statement that the government will act decisively when investments threaten national security or critical minerals supply chains.

Critical minerals and metals, such as lithium, cadmium, nickel and cobalt, are essential components of everything from wind turbines and electric cars to laptops, solar panels and rechargeable batteries.

China is the dominant player in critical minerals refining and processing, as well as in the manufacturing supply chain of battery cell components. But China does not produce a lot of the minerals itself, and has instead invested heavily in overseas mines to acquire the raw materials it needs.

This hunger for raw minerals has meant significant investments in Canada's mining sector and helped allow for increased production.

Pierre Gratton, chief executive of the Mining Association of Canada, hinted at the tension between security and economic considerations in an emailed statement, saying that while the industry is very sensitive to the geopolitical context and difficult choices of government, access to capital and markets is also essential to increase production.

Lithium Chile said in a statement that the investments by Chengze Lithium, completed in January and May this year, gave the company a significant cash position, but that the government order doesn't affect the company's operations.

The company says it has already had several companies reach out with interest in acquiring Chengze's block of ownership.

Funding from state-owned firms means influence from the Chinese Communist Party, so Canada has had to move forward with that in full view, said Lawrence Herman, international trade counsel at Herman & Associates.

"You can't run after Chinese money and think it's going to be a panacea for all kinds of financial issues," said Herman, who is also a senior fellow at the C.D. Howe Institute.

The divestment order is an important first step, said Herman, though he thinks more should be done including wider strategic reviews in areas such as technology and cybersecurity.

"This is an important step and it shows, finally, that the federal government is waking up to the threat posed by China."

This report by The Canadian Press was first published Nov. 3, 2022.

Ian Bickis, The Canadian Press

Fiscal Update 2022: 
Canada's Fall Budget: Measures for Homeowners, Students, Low-Income Canadians

Investing.com - 

Canadian Finance Minister Chrystia Freeland presented the fall budget today, tabled in the House of Commons. The budget posted a $30.64 billion deficit earmarked for spending. The number was lower than the $52.8 billion projected last spring, revised lower due to soaring inflation, higher corporate profits and reduced spending.

Canada's Fall Budget: Measures for Homeowners, Students, Low-Income Canadians© Reuters

The budget also included new measures to aid students, low-income Canadians and homeowners struggling to keep pace with the cost of living.

“We are providing targeted inflation relief because that is the right thing to do, but we cannot support every single Canadian in the way we did with emergency measures at the height of the pandemic,” Freeland noted in the foreword to the document.

“To do so would force the Bank of Canada to raise interest rates even higher. It would make life more expensive, for everyone, for longer.”

Today’s update comes amidst a time of sharply rising interest rates, and decades high inflation.

The relatively conservative measures were a far cry from highly liberal pandemic-era spending measures by Trudeau’s liberals. Economists estimate that measures this year have required a further 25 bps of tightening by the Canadian central bank.

Of the $30 billion in new spending spread over six years, $2.7 billion will go towards the Canada Student Loans and Canada Apprentice Loans, making the loans permanently interest free. The money will be earmarked for the next five years

The budget update also earmarked $4 billion over six years to automatically issue advance payments of the Canada Workers Benefit for those who qualified in the previous year. The benefit is intended to support working, low-income individuals and families.

The government also plans to introduce legislation to launch a Tax-Free First Home Savings Account. The measure is expected to help first-time homebuyers save up to $40,000 tax-free, doubling the First-Time Home Buyers’ Tax Credit.

The budget update also proposes a refundable tax credit for investments in green energy, in line with the Liberal’s target for emissions reduction. It is expected to cost $6.7 billion over five year.

The credit covers electricity generation systems, stationary electricity storage systems that do not require the use of fossil fuels, low-carbon heat equipment and industrial zero-emission vehicles.

The federal government will also launch a Canada Growth Fund that promises to pull in billions in new investments to reduce carbon emissions, and put in place a new tax on share buybacks by public corporations. The measure is expected to boost federal revenues by $2.1 billion over five years.

In terms of what’s next for the Canadian economy, the budget presented two outlooks: a baseline scenario on which the government has based its fiscal planning, and a downside scenario that sees the country enter a moderate recession early next year (in line with economist forecasts, and one which - notably - the government has not based its fiscal planning on.

Ottawa aims to balance fiscal restraint with targeted support amid darkening economic outlook

Fall economic statement slashes growth forecasts but predicts budget surplus by 2027

Author of the article: Stephanie Hughes
Publishing date: Nov 03, 2022 
 
Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland released the fall economic statement in Ottawa Thursday. 
PHOTO BY REUTERS/BLAIR GABLE

The federal government is aiming to strike a balance with targeted new supports and fiscal discipline as it charts a course for Ottawa’s finances over the next few years in the face of soaring inflation and a looming economic downturn.

Ottawa acknowledged in its Fall economic statement Thursday that inflation has risen much higher than projected in the Spring Budget, with the latest CPI reading sitting at 6.9 per cent in September. Interest rates around the world have risen sharply this year to combat these price pressures, prompting a global economic slowdown and expectations that Canada would see its own growth stall next year.




The fiscal update slashes growth forecasts for this year and next from its Spring projections. Real gross domestic product is seen slowing to 0.7 per cent in 2023 from the originally forecast 3.1 per cent. GDP this year is expected to grow 3.2 per cent, down from an earlier forecast of 3.9 per cent.

Against this gloomier economic backdrop, the update stressed that fiscal prudence would be important to mitigate the impact of inflation and ensure the government had the capacity to provide targeted support to Canadians.

The government is now expecting the deficit to shrink to $36.4 billion in fiscal 2022-2023 and to reach a $4.5 billion surplus by fiscal 2027-2028.

However, Thursday’s statement also warned of a downside scenario that would see the budgetary balance deteriorating by an average of around $16 billion per year and adding 3.3 percentage points to the federal debt-to-GDP ratio by 2027-2028 if tax revenues fell, program costs were higher than expected, and if public debt charges rose dramatically.




“I am confident that we have the right approach… in this Fall economic statement,” said Deputy Prime Minister Chrystia Freeland during a press conference. “And what we’re announcing today – what we’ve been doing throughout – is to strike a balance between necessary, compassionate support for Canadians and fiscal responsibility.”

A key part of the update was “new support for Canadians who need it most”, or targeted aid for lower-income Canadians to help them cope with the coming downturn and possible recession.

The government said it would automatically advance Canada Workers Benefit payments for Canadians who qualified for the measure last year — a move that is expected to cost $4 billion over six years beginning in 2022/2023. This measure could provide $714 for single workers and $1,231 for a family split between three advance payments to help cope with rapidly rising costs of living.

It also plans to double the goods and services tax credit payment for an estimated 11 million low- and moderate-income Canadians over the next six months in a move expected to provide $2.5 billion in additional support. Single Canadians without children are expected to receive an extra $234, families can get up to an extra $467 and seniors may receive an extra $225 on average.

The government also plans to move ahead on the Canada Dental Benefit it established in partnership with the New Democratic Party to provide payments of up to $1,300 per child under the age of 12 for families without dental coverage making less than $90,000 a year. The legislation was first introduced in September and the government anticipates this will provide support for 500,000 Canadian children as the government develops a national dental care program by 2025.

An investment of $250 million over five years into employment training starting in fiscal 2023-2024 to prepare Canadian workers for a shifting global economy under its Employment and Social Development Canada program.

The government also plans to lower credit card transaction fees for small businesses by negotiating with payment card network and other financial institutions to lower fees. As of Nov. 3, the government is publishing a draft legislative amendment to the Payment Card Networks Act to make this happen. If the industry fails to come up with an agreement over the next few months, the government will push this legislation forward in the new year to regulate credit card transaction fees.

The government earmarked about $1.16 billion for fiscal 2022-2023 for its top-up to the Canada Housing Benefit previously announced on Sept. 13 this year. The government expects this tax-free $500 payment will aid 1.8 million low-income renters, families with an adjusted net income below $35,000 and single Canadians making less than $20,000.

Following the economic statement, the government plans to table legislation to create the new Tax-Free First Home Savings Account, granting would-be first-time homebuyers a new tax-free tool to save up to $40,000, and double the First-Time Home Buyers’ Tax Credit that aims to provide $1,500 in direct support to home buyers.

Once Canada comes out the other side of the anticipated global slowdown next year, Freeland remains optimistic of the country’s economic prospects.

“So far this year, our economic growth has been the strongest in the G7,” Freeland said. “And when we get through the coming global slowdown with the COVID recession behind us, there is no country in the world better-placed than Canada to thrive.”
Fiscal Update 2022: 
Freeland unveils tax credits of 30-40% for investment in clean technology and hydrogen

Incentives aim to keep pace with U.S. Inflation Reduction Act

Author of the article: Naimul Karim
Postmedia News
Publishing date :Nov 03, 2022 
In its fiscal update, Ottawa has unveiled tax credits for clean-energy technology including for wind, solar and water. 
PHOTO BY BRIAN THOMPSON /The Expositor/


Ottawa has proposed new tax credits for investments made in clean technology and hydrogen in its fall economic statement with the aim to keep pace with the financial supports provided to manufacturers in the United States through the recently passed Inflation Reduction Act (IRA).

Under clean technology, it proposed a tax credit of up to 30 per cent of capital costs for investments made in electricity generation systems, such as small modular nuclear reactors and systems that depend on wind, water and solar, in storage such as batteries, in low-carbon heat equipment and in industrial zero-emission vehicles used in mining or construction.

The credit will be available from the first day of next year’s federal budget and will end in 2035.

Investment in the production of clean hydrogen could lead to a tax credit of at least 40 per cent. Work on the level of support needed for production and the appropriate carbon intensity tiers is underway, the statement said. The tax credit would be available as of the day of Budget 2023 and will be phased out after 2030.

“With major investment tax credits for clean technology and clean hydrogen, we will make it more attractive for businesses to invest in Canada to produce the energy that will power a net-zero global economy,” Deputy Prime Minister Chrystia Freeland said in a prepared statement.

Ottawa has also said that companies will need to meet labour conditions that include paying wages based on market conditions and ensuring training opportunities for workers to be eligible for the highest level of the tax credits. This “new approach” to tax credits, was “long overdue” and “entirely reasonable,” Freeland said in a press conference on Thursday.

The tax credits have been announced a day after representatives from the Canadian automotive, steel and manufacturing sectors warned that the IRA will pour billions into the American manufacturing sector over the next few years and could trigger a flight of investment capital south of the border, as well as result in fewer manufacturing jobs.

The bill, which passed the U.S. House of Representatives in August, has little to do with inflation but will result in dramatic changes to the American economy in service of the country’s climate goals through a mix of tax incentives, grants and loan guarantees aimed at boosting clean energy and clean transportation.

The IRA also offers a US$7,500 subsidy meant to encourage the production of electric vehicles in North America, which will benefit Canada.

But the act offers “enormous financial supports to firms that locate their production in the United States — from electric vehicle battery production, to hydrogen, to biofuels, and beyond” and “without new measures to keep pace … Canada risks being left behind,” the fall economic statement said.

The tax credits have been announced at a time when democratic countries in North America, including Canada, have been trying to offset China’s dominance of the battery supply chain for electric vehicles, the demand for which has been on the rise in recent years as nations look to meet their climate targets.

China dominates the EV supply chain through its refining and processing industries even though most of the metals required by EVs, such as lithium, nickel and cobalt, are mined outside the country. On Thursday, Canada ordered three Chinese companies to divest their investments in three Canadian junior lithium miners. Last week, Canada raised the bar that foreigners must clear to join the country’s critical minerals industry.

“We have the natural resources to power the global net-zero transition and to support our allies with their energy security … And our government believes that this ongoing shift is the most significant opportunity for Canadian workers and Canadian businesses in a generation,” Freeland said.

Fiscal Update 2022: 
Ottawa willing to accept lower returns, more risk to put $15-billion growth fund to work

Barbara Shecter -  Financial Post

Deputy Prime Minister and Minister of Finance Chrystia Freeland and Prime Minister Justin Trudeau before delivering the fall economic statement on Parliament Hill in Ottawa.


The federal government’s new $15-billion Canada Growth Fund is prepared to accept a lower return or increase its potential loss exposure in order to stimulate institutional investment in innovation and green projects with risky economic foundations, Ottawa announced Thursday as part of the fall economic update.

The fund, first announced in the April budget, will make what it calls “concessional” investments — in which the return and loss metrics would not be acceptable to classic private equity investors.

“Launching the new Canada Growth Fund … will help bring to Canada the billions of dollars in new private investment required to reduce our emissions, grow our economy and create good jobs,” Finance Minister Chrystia Freeland said, adding that the projects will have meaningful Indigenous participation and meet “the highest” environmental standards.

“From critical minerals, to ports, to energy , we will continue to make it easier for businesses to invest in major projects in Canada.”

The Liberal government has made several attempts to entice pensions and other institutional investors to fund projects to create jobs, improve Canada’s productivity and commercialize intellectual property.

In this latest iteration, the Canada Growth Fund will seek direct investments including co-investments with private investors and bilateral partnerships where the fund will invest in industrial emitters, clean-tech companies and other companies “across low-carbon supply chains” such as those involved in the production of critical minerals .

To “address demand risk and improve project economics,” the fund will also enter contacts to provide revenue for a certain volume of production in cases “where sufficient demand from prospective private buyers is still developing.”

It will provide anchor equity to fund projects in cases where the risk level or capital required would attract limited interest from private capital.

The fund plans to piggyback some of its investments on the pipelines of private funds, but there will also be sponsorships, where the fund identifies opportunities and tries to convene multiple financial and strategic partners.

Investment management teams will target companies and projects with “a reasonable chance to strengthen the development of Canadian workers and generate knowledge that will produce long-term benefits for the Canadian economy beyond those realized directly by the specific investment in the project or company,” according to a background document shared by the Finance Department as part of the economic update.

For example, companies and projects with a focus on intellectual property development and commercialization would be desirable, as would those that demonstrate an ability to improve Canadian competitiveness through new or existing value chains.

Investments will span the capital structure, and could include equity, debt and derivative contracts.

Ottawa said it will expect private investing partners to share in any downside, and will only make the concession investments — such as debt instruments where the Canada Growth Fund earns below-market returns or has higher exposure to loss through low-interest loans or subordinated debt — to the extent necessary to get a worthwhile project or company off the ground.

“While CGF may accept a first-loss position, for example, investors should share in the financial downside of under-performing investments,” according to the document.



What’s more, institutional investors will not be rewarded with “returns in excess of what the private sector requires to proceed with an investment given the level of risk it is bearing.”

Ottawa says the aim of the new fund is to generate returns on an overall rather than individual basis, “recovering its capital on a portfolio basis and recycling its capital base over the long term.”

Over the past seven years, Justin Trudeau and his government have made several attempts to attract Canada’s globally active pension fund investors to finance domestic projects.

In September, for example, industry minister François-Philippe Champagne, said he would be reaching out to large funds about building of dozens of electric battery plants in Canada and leasing them back to the automotive industry, a plan he said would help clear a “bottleneck” by accelerating construction of production facilities to process critical minerals that are abundant in Canada such as lithium, nickel, cobalt, manganese and graphite.

One of the most prominent and least-successful attempts to attract widespread interest from profit-seeking private investors was the creation five years ago of the Canada Infrastructure Bank. The vision behind the $35-billion CIB was to attract $4 to $5 of private money for every dollar invested, but it has fallen well short of that target.

• Email: bshecter@nationalpost.com | Twitter: BatPost
Fiscal Update 2022: 
Ottawa to permanently eliminate student loan interest

Ottawa plans to make permanent its pandemic-era pause on student loan interest in an effort to reduce some of the current financial pressures on young Canadians as the cost of living rises
.



As part of its fall fiscal update tabled Thursday, the federal government outlined plans to permanently eliminate interest on all federal student loans and apprentice loans including loans currently being repaid.

Interest rates will still apply on the provincial portion of a student’s loan.

While this move is helpful for students graduating, said Rebekah Young, director of fiscal and provincial economics at Scotiabank, it is ultimately relief for interest payments on debt rather than money toward tuition or other post-secondary school expenses.

“In the bigger picture, they're still confronting elevated expenditures across the board,” she said.

More than 1.8 million Canadian students owe the federal government a total of $20.5 billion, based on 2019 data from the Government of Canada website, with the average loan balance at about $13,367 at the time of leaving school.

The average undergraduate tuition fee is $6,482 for an academic year as of 2022, according to Statistics Canada, while the average graduate tuition fee is $7,053 as of 2022.

The Liberal government suspended the accumulation of interest on student loans in 2021 due to the effects of the pandemic on graduating students as they entered a unique job market. The measure was set to expire in March.


Related video: Ottawa's pandemic hiring boom adds billions to federal payroll
Duration 2:39  View on Watch
CONSERVATIVE OPPOSITION WANTED PASSPORTS ISSUED FASTER CALLED FOR AN INCREASE IN STAFFING 

The elimination of interest will begin April 1, 2023, the fiscal update said.

An average student loan borrower will save $410 per year as a result of their loan being interest-free, the government said in the fiscal update. (Student loan interest is calculated either at a fixed rate of 2 per cent plus prime, or a variable rate equal to the prime rate.)

The elimination of interest on these loans is estimated to cost of $2.7 billion over five years and $556.3 million ongoing, the federal government said.


The permanent elimination of interest on federal student loans was a Liberal campaign promise during the last federal election.

Young said some may fear the decision could stoke inflation, but that it isn’t be a particularly strong argument as the measure is a relatively small, contained one.

Ottawa said graduating students will still be able to use its repayment assistance plan, allowing them to pause student loan repayment until they are making at least $40,000 per year, and reducing payments for those earning slightly above that amount.

Earlier this week, the zero-payment income threshold for student loans increased from $25,000 to $40,000 for a household of one. The threshold increases based on the size of the household.

This move to tackle student loans comes just a few months after U.S. President Joe Biden announced a decision to cancel $10,000 for most student loan borrowers, and up to $20,000 for those borrowers who received a federal Pell Grant. It has received significant pushback.

The White House said Thursday that it has already approved 16 million requests. Close to 26 million Americans have applied for student loan forgiveness.

This report by The Canadian Press was first published Nov. 3, 2022.

Adena Ali, The Canadian Press
WINTER, IT HAPPENS...EVERY YEAR
Early winter-like storms are just a taste of what's to come, Alberta

Digital Writers - WEATHER NETWORK

Over 20cm of snow still to come across the Prairies

November has only just begun, but by looking at Alberta, you'd think we're already firmly locked into the heart of the winter season. Widespread snowfall warnings covered the region on Wednesday, with as much as 20 cm reported in major cities like Calgary. Though this system will make its way out of the region through Thursday, eyes are already shifting to the back-to-back storm systems ahead. A plunge into frigid cold as well as more snow will continue to keep things rather wintry as we make our way into the first weekend of November. See the timing and impacts, below.



Weekend and beyond: Wintry pattern tightens its grip

Heavy snow blanketed southern Alberta through Wednesday, prompting widespread warnings as conditions quickly deteriorated. While no official totals have been confirmed, between 10-17 cm of snow was recorded in Calgary and surrounding areas, with over 20 cm for the foothill regions.

RELATED: Why the first snowfall of the season can catch drivers by surprise

Calgary police were called to nearly 150 crashes throughout the storm, as drivers navigated one of the first major snowfalls of the season.


WATCH: Wintery blast causes traffic trouble on the Prairies

Unfortunately, for those not quite ready to dive into a full blown winter just yet, the snow and cold felt across Alberta this week is only a taste of what's to come.

Arctic air will plunge south into the region this weekend and continue for most of next week as well. Temperatures will drop into the minus teens, with wind chills making it feel closer to the -20s across parts of Alberta.


Early winter-like storms are just a taste of what's to come, Alberta© Provided by The Weather Network

"After extended summer-like temperatures started the fall season in Alberta, a flip of the switch has put the province into a free fall into deep winter-like weather," says Kelly Sonnenburg, a meteorologist at The Weather Network.

The daytime highs for next week will be 10 to 15°C below seasonal for this time of year, even cold by January and February standards!

Along with the frigid cold, there will be no shortage of snowfall either.


Early winter-like storms are just a taste of what's to come, Alberta© Provided by The Weather Network

Several systems, beginning as early as this weekend, will spread widespread swaths of accumulating snow southern and central Alberta next week. Forecasters are keeping a close eye on a more significant storm system for early and mid next week, one that could bring some heavy snow to the southern Prairies.

PHOTOS: First week of November brings a healthy dose of snow

Be sure to check back for the latest on conditions across the Prairies

Thumbnail image courtesy: Marco - Benalto, Alberta





POLITE TERM FOR;'STUPID'
Nixing mask mandate for schools 'shortsighted': EPSB chair

Hamdi Issawi - Yesterday

Edmonton Public School Board Chair Trisha Estabrooks said a decision to prevent school boards from mandating mask during the COVID-19 pandemic is© Provided by Edmonton Journal

Edmonton Public Schools has no plans to mandate masks for students, but for Alberta’s government to forbid a future order is “shortsighted” amid an ongoing pandemic, a school board trustee says.

Trisha Estabrooks, chairwoman of the Edmonton Public School Board, responded to Premier Danielle Smith’s statement Saturday that the province will not permit further masking mandates for Alberta grade schoolers.

“If there’s anything we’ve learned from this pandemic, it’s that we need to be nimble — we need to be flexible,” Estabrooks said. “I hope the worst of the pandemic is over. But is it?”

The premier’s statement follows the outcome of a judicial review into the United Conservative Party lifting a COVID-19 mask requirement for schools in February.


The Alberta Federation of Labour and five families of immunocompromised children prompted the review, which ultimately saw Court of King’s Bench Justice Grant Dunlop determine that the province acted unreasonably , and that politicians made the decision rather than Dr. Deena Hinshaw, Alberta’s chief medical officer of health.

Dunlop referred to a Feb. 10 news conference when Hinshaw referred a question about the rationale for the decision to Health Minister Jason Copping.

Estabrooks said both the board and superintendent similarly sought answers for the move, adding that it was “unfortunate” the source of the decision wasn’t more transparent.

“Health decisions need to be made by health officials,” she said.

In her statement, Smith cited “well understood,” and “detrimental” effects of mask mandates on the development, mental health and education of school children.

The premier’s office was unable to cite the evidence for those claims at the time, or whether her position against masking rules for students would apply to private schools. Her office did not respond to a followup from Postmedia on Tuesday.


Dunlop’s decision also found nothing preventing school boards from requiring masks in classrooms, despite a past statement to the contrary from Education Minister Adriana LaGrange.

The topic of masking students also follows dozens of “respiratory illness” outbreaks at Edmonton-area schools reported by Alberta Health Services.

With 213 schools in the district, Edmonton Public Schools has seen outbreaks at 41 schools since since the beginning of the 2022-23 year, most of which occurred September, spokeswoman Veronica Jubinville told Postmedia.


Addressing the board of trustees Tuesday, division superintendent Darrel Robertson reported outbreaks at six schools, which is up from only one outbreak reported on Oct. 18.

A Sept. 23 notice on the district’s website indicates Alberta Health Services has returned to a pre-pandemic reporting process, where the health authority investigates an outbreak if a school reports more than 10 per cent of students absent due to an illness.

“By and large, folks are doing a really good job of making sure that kids are staying home — or they’re staying home themselves — when they’re sick,” Robertson told the board. “That is not 100 per cent, though. Of course, we’ve heard stories of asymptomatic COVID.”

Estabrooks said that while COVID-19 undoubtedly plays a part in the outbreaks, there are other respiratory illnesses circulating.


Both students and staff still the have option of wearing masks, she added, and the district is prepared to act on the advice of health officials.


Related
Premier Danielle Smith exploring legal steps to halt school mask mandates