Friday, January 12, 2024


Bell: Top Alberta doc to Danielle Smith — 'We don't need more chaos'

Opinion by Rick Bell • 

Health Minister Adriana LaGrange, Dr. Paul Parks and Premier Danielle Smith provided an update on the status of ongoing joint work to stabilize primary health care in Alberta at the McDougall Centre in Calgary on Thursday, December 21, 2023.
© Provided by Calgary Sun

Dr. Paul Parks, the Alberta Medical Association president, is in the trenches this day in the emergency room in Medicine Hat and he’s busy.

When he finally has a minute your scribbler wants to know what he has to say about Premier Danielle Smith’s latest comments on the state of health care in Alberta.

Over the holidays, eyeballs sizzled over Smith’s words, no matter the political stripe of the reader.

The premier was not holding back. She saw layers and layers and layers of middle managers at Alberta Health Services and saw a problem.

She saw some managers not solving the problems in the delivery of health care.

She saw people wanting more dough for more than a decade to improve care, getting the cash and then care decreasing.

She said her health minister, Adriana LaGrange, will tour the province’s hospitals, go to the front lines and listen to the workers, find the problems and fire the managers who haven’t been solving those problems.

Smith is not afraid to use the word “fire.”

The premier said she’d seen page after page of managers, 40 pages in Edmonton zone alone.

AHS managers who hadn’t seen the eyeballs of patients in a number of years will have to “pick up their game” and “demonstrate their value.”

For Smith there were bosses and bureaucrats preventing front-line workers from helping people, leaving those workers to deal with a worsening situation.

Smith went on to say she gave managers a year to make some progress and they started moving in that direction but then after the election last year they started back-sliding.

Dr. Parks agrees it is critical to do things differently.

He says if you polled docs about whether they thought something major had to change in AHS operations, 70% or 80% would fully agree.

But Parks adds some of the reason the system “is still going, even though we’re on the brink of collapse, is because we have some amazing people in AHS really keeping the ship afloat in an unbelievably difficult situation.”

“The system is really, truly being stressed. It’s so fragile,” says Parks.

Bell: Danielle Smith to Alberta Health Services managers — shape up or ship out

'As bad as we’ve seen it in 25 years': AMA president sounds alarm as Alberta hospital wait times rise

Alberta Medical Association hopeful AHS overhaul is better for doctors and patients

Alberta breaking up AHS, creating new agencies in health care overhaul

What he hears is the idea of “looking for heads to roll” leads to no managers wanting to “be creative and stick their neck out or pop their head up enough so they’re a target.”

This “paralyzes a lot of key decision makers.”

So, on the one hand, Parks agrees something needs to be shaken up.

“But on the other side, now in a climate where you have the premier saying heads are going to roll do you think there are going to be many in management jumping up and down and making themselves targets even if they have really good ideas?”

Parks says many in the system have frustrations but …

“You can’t just go in and chop off a whole bunch of heads without a real, solid concrete plan as to what you’re going to do to replace them or enable new leaders to fill the void.

“If you’re going to go in and shake up the system then have a plan to replace it when the dust settles.

“We don’t need more chaos.”

Decisions can’t be made and announced with the details left hanging in uncertainty.


Dr. Paul Parks at the McDougall Centre in Calgary on Thursday, December 21, 2023.

Parks urges a sit-down with himself and the new AHS boss and the highest level of the government’s health ministry, among others, to hammer out “an evidence-based and expert-informed plan” to make big changes.

The Alberta Medical Association president wants to make sure two things are crystal clear.

“There are some really good managers who are very constrained by the way Alberta Health Services operates and the way the system currently exists,” says Parks.

“Breaking that logjam and freeing them up to really make local decisions and be creative and really think differently is exactly the goal we share and we want.”

But … there is a but when it comes to finding the good people.

“But coming in with a guillotine and heads will roll is going to make it hard to identify who those people are,” says Parks.

We will see where this goes.

Remember the premier won the leadership of the UCP vowing to fight the Liberal government in Ottawa while, with equal passion, slamming those running the health-care system during the COVID pandemic.

When Smith was asked if what she’s talking about would end up being a big deal her answer is one word.

“Exactly.”

rbell@postmedia.com


Alberta emergency doctors sometimes work for free, medical association says


© Provided by The Canadian Press

EDMONTON — The new president of emergency medicine for the Alberta Medical Association says ER physicians already coping with long hours, staff shortages and jammed waiting rooms are also being obligated, in some cases, to work for free.

Dr. Warren Thirsk says Premier Danielle Smith’s government has yet to follow through on a promise to reimburse emergency room doctors for so-called "good faith" payments.

"There's been lots of excuses, but the bottom line is no one has actually received a penny for those suspended good-faith payments," Thirsk said in an interview.

"On average, every emergency physician in this province is out thousands of dollars for free work."

Good-faith payments reimburse ER doctors when they see patients who don’t have identification and can’t prove an Alberta Health Care Insurance Plan billing number.

Thirsk said the United Conservative government stopped those payments when it ripped up the master agreement with the AMA in early 2020. He said it promised to bring back those payments when the two sides agreed to a new deal in September 2022.

But to date that hasn’t happened, he said.

"I'm legally and morally bound to look after you (if) you’re unidentified (as a patient)," said Thirsk, an emergency room doctor at Edmonton’s Royal Alexandra Hospital.


"(And) I’m going to look after you because it’s the right thing to do no matter what the problem is."

He said ER doctors are paid per patient, and the amount also depends on the diagnosis.

"When the contract was signed (in 2022), one of the conditions was they were going to fix the good faith (payments) right away," said Thirsk.

“And then they found red tape.

“Even now we haven't been paid for good-faith billings.”

Andrea Smith, spokesperson for Health Minister Adriana LaGrange, said the province remains committed to reinstating the good-faith payments.

"Alberta Health has been working on system updates to allow for retroactive payments and this policy is expected to be implemented in the near future," said Smith in a statement.

Provincewide delivery of medical care is handled through Alberta Health Services, with an annual budget close to $17 billion.

AHS, in a memo to staff made public this week, said it is forecasting a budget deficit and is seeking 10 per cent cuts to overtime and outside service delivery to help balance the bottom line.

Alberta, like other jurisdictions, is facing long waits for care and overcrowding in emergency wards.

Thirsk, an emergency room doctor for 25 years, said the problems are founded in a system that views health workers as costs rather than investments.

He said emergency doctors are routinely asked to cover off vacancies and shortages in other jurisdictions, particularly at the hospital in Red Deer.

"It's become a regular thing. We probably get once a month an AHS email asking us to cover a shortfall in Medicine Hat, in Lethbridge, in different cities," he said.

"I think that all the emergency departments across the province are stressed out and are just overcapacity. And I think that that's unfortunately the new situation normal.

"There's probably very few emergency physicians who haven't seen a patient seriously harmed or even die from the gaps in the system, and it's frustrated all of us. There's nowhere to take this."

Asked about the general sentiment he hears from ER colleagues, Thirsk replied: “They want out. Everyone wants out. People are desperate to get out. (They ask) 'How can I get out? What else can I do? This isn't fun anymore.' Those are the quotes I hear right now.”

He said he has little faith a massive restructuring of Alberta Health Services will solve the problem.

This year, Smith’s government aims to dismantle Alberta Health Services to create four agencies linked to specific areas of care — such as acute care and primary care — all answering to LaGrange and cabinet.

Thirsk said the province is creating silos in what needs to be an interdependent system linked to patients rather than specialties.


“As a front-line worker who has no resources to look after the patients in front of me and is apologizing for that every day, I find it incredibly frustrating that we will drop $80 million into an administrative reshuffle,” he said.

“Giving four silos just means you’ve got four different ways to say, 'It’s their problem, not mine.'

“We're on the Titanic, and we're rearranging the proverbial deck chairs.”

This report by The Canadian Press was first published Jan. 11, 2024

Dean Bennett, The Canadian Press


Premier Danielle Smith says she is set to make major changes to Alberta's health system in 2024. In a year-end interview, Smith says she is going to reform the structure of the health system while at the same time trying to keep and find more family doctors. (Dec. 30, 2023) 

IMMUNIZATION IN AN ANTI-VAX PROVINCE
Alberta's immunization campaign raising questions | Watch (msn.com)

Critics of the Alberta government say new documents show the province interfered with this fall’s vaccination campaign. Papers obtained by the Global and Mail say the province told health officials not to mention COVID or influenza, and later a provincial news release removed references to vaccine efficacy and an encouragement to get vaccinated. Now some doctors say the approach has hurt Albertans as hospitals have filled up with sick people. Sarah Komadina has more. 


Opposition calls for Alberta to dump imported fever medicine amid health concerns

The Canadian Press

EDMONTON — Alberta’s Opposition says it’s time to dump once and for all the remaining bottles of imported Turkish children’s fever medicine, given new reports state the liquid clogs hospital feeding tubes and can put newborns at risk of severe illness.

NDP health critic Luanne Metz says Premier Danielle Smith’s government should check with health specialists to see if the medicine can safely be put to use somewhere else in the world but says regardless it's time to end the experiment in Alberta.


“We really should not be using this in our emergency departments,” Metz, who is also a physician, said Wednesday in an interview.

“It's certainly not preferred for a parent, who would get rid of it for sure, and we definitely should not be using it in (feeding) tubes.

“So where might there be a place that this would be a preferred treatment? I can't see it.

“We probably should get rid of it.”

Metz made the comments in light of a Globe and Mail newspaper report published earlier Wednesday.

The story, citing internal government documents, illuminated concerns the imported Turkish acetaminophen, with its higher viscosity, risked clogging feeding tubes for fragile patients.

Also, with its comparatively lower dosage and higher volumes, it put newborns at risk for necrotizing enterocolitis, which can cause damage to their intestines.

Alberta Health Services, in a statement Wednesday, confirmed the acetaminophen, known under the brand name Parol, was banned in neonatal intensive care units last spring and was used for only two months in total before hospitals reverted to the regularly used medicines.


Related video: Alberta's immunization campaign raising questions (Global News)
Duration 2:15   View on Watch

“No patients, including infants requiring neonatal intensive care, were injured or fell ill as a result of its use,” said AHS in the unsigned statement.

The medicine was part of a deal Alberta signed with Istanbul-based Atabay Pharmaceuticals for five million bottles of Parol and the ibuprofen known as Pedifen.

Smith herself announced the purchase at a news conference in late 2022, promising to alleviate a domestic shortage of children’s fever medication.

The purchase was immediately beset by delays as the province sought regulatory approval from Health Canada and sorted out packaging and warning labels.

By the time most of the first shipment of 1.5 million bottles had arrived in the spring of 2023, the domestic fever medication shortage was over.

The rest of the shipment never arrived.

Of those 1.5 million bottles, only about 9,000 were sent to hospitals and 4,700 to pharmacies in what critics have labelled a $75-million boondoggle, with taxpayers out tens of millions.

As soon as the medicine arrived, there were concerns that the comparatively lower dosage concentration of the Turkish medicine increased the risk of dosage errors. Pharmacists had to keep the medicine behind the counter to make sure customers who bought it were aware of the dosage change.

By the summer of 2023, AHS had already advised staff to switch back to the pre-existing medicines. However, last fall Health Minister Adriana LaGrange said Parol and Pedifen were not on the scrap heap, but would be kept in reserve for future emergencies.

LaGrange, asked Wednesday in an email if the Turkish medication could still be used in an emergency, declined to answer.

Instead she directed questions to Alberta Health Services.

AHS, in its statement, also declined to confirm the future of the two medicines while referring to them in the past tense.

“The additional supply of children’s pain medication provided assurance, long-term, for our stock of acetaminophen in AHS facilities at a time of a global shortage and high demand,” it said.

The clock is already ticking on the remaining supply. The Pedifen is set to expire in November 2025 and the Parol two months after that.

LaGrange, in her statement, reiterated past comments that the province bought the medicine with the best of intentions.

“We acted out of compassion and concern at a time when you could not find children’s medication on the shelves,” LaGrange wrote.

This report by The Canadian Press was first published Jan. 10, 2024.

Dean Bennett, The Canadian Press
‘Waiting 20 hours’: Overwhelmed ERs causing patients to suffer, CMA says

Story by Katie Dangerfield • 

Paramedics transfer patients to the emergency room triage but have no choice but to leave them in the hallway due to an at capacity emergency room at the Humber River Hospital during the COVID-19 pandemic in Toronto.
© THE CANADIAN PRESS/Nathan Denette


Global News
‘The waiting room was packed’: Canada’s ERs overflow as wait times surge
Duration 2:00   View on Watch

Patients in some parts of the country are waiting more than 20 hours to receive emergency room care and the Canadian Medical Association (CMA) is warning that unless major systemic changes are made, the problem will keep unfolding.

In a statement released Thursday, the CMA warned that Canadian emergency rooms are experiencing overflow due to a combination of staffing shortages, overcrowding and inadequate access to team-based primary care. This situation, it said, is leaving hospital emergency departments inadequately equipped to handle the surge of patients with influenza, COVID-19, or respiratory syncytial virus (RSV) during this time of the year.

"As a physician practicing in Canada, I'm deeply concerned about the crisis we're seeing in our emergency departments," Kathleen Ross, president of the CMA told Global News. "Long wait times, increasing surges in respiratory illnesses, staffing shortages across the country are really making it hard for Canadians to access urgent care when they need it."


Global News
Kids’ emergency rooms are crunched in Canada, here’s what parents should know
Duration 2:01   View on Watch

Emphasizing that emergency rooms should not serve as replacements for walk-in clinics or family doctors, the CMA highlighted the pressing need for solutions due to Canada's ongoing primary care crisis.

A CMA survey released in August found that one in five Canadians said they don’t have a family doctor. As a result, many of these people have had to resort to seeking care in emergency rooms, exacerbating the issue of overcrowding.

And now that it's the heart of cold and flu season, Ross warns that crowded emergency rooms will only intensify.

"There has been a rise in the crisis in our emergency departments over the last several weeks, with our holiday season and the rise in incidents of respiratory illnesses," she said. "We have to take into account that physicians and nurses working in these departments are also susceptible to illnesses, and we are facing increased staffing shortages."

On Wednesday, British Columbia's health minister, Adrian Dix, said 10,435 patients — a record number — were in hospital Tuesday night, many of them with a respiratory illness.

Emergency rooms elsewhere in the country were also over capacity as rates of influenza and respiratory syncytial virus, or RSV, which can be serious for infants and older adults, have climbed steadily.

In Quebec, emergency rooms were at 137 per cent capacity on average, with Health Minister Christian Dubé saying about 1,900 people a day were visiting ERs, double the number compared to last year.


Dubé said almost half of the daily emergency room visits are for non-urgent ailments that could be treated at a primary care clinic or doctor's office but that it may be tough to get an appointment.



"During respiratory illness season, (we) see surges in crisis in our emergency departments with more patients than we can treat at any given time," Ross explained. "However, this crisis across Canada, with sustained pressures, sustained challenges with staffing and increased numbers of respiratory illnesses... is also contributing to a situation that is clearly unsustainable and quite frankly, dangerous."

She said not only have patients had to wait more than 20 hours, but also some Canadians have died waiting to be seen in emergency rooms.

In its Thursday statement, the CMA said it believes it is well past time to transform and rebuild Canada's health-care system, including investing in team-based primary care.

Team-based primary care involves a group of health-care professionals, such as doctors, nurses, pharmacists and social workers, who collaborate closely to provide comprehensive and patient-centered care.

The CMA said it believes this approach to healthcare will help offset crowded emergency rooms, as these care teams will be able to see more patients and provide optimal care.

Another critical change required, Ross said, is for all provinces to sign on to the bilateral health-care funding agreements.

Global News
Federal government signs agreement to commit $355 million to Nova Scotia’s health-care system  Duration 2:15    View on Watch

In February 2023, Ottawa announced a health funding deal worth $196.1 billion over 10 years to the provinces and territories, including $46.2 billion in new money. So far, only a few provinces have signed onto the deal, including B.C., Alberta, Prince Edward Island and Nova Scotia.

"It is critically important at this time that governments across the country work together and sign on to the bilateral agreements that we heard about over the last year. Get additional dollars on the table," Ross expressed. "I would like to see every bilateral agreement between provinces and territories in Canada signed by the end of January. So the dollars that we need to improve our health-care system get out the door."

-- With files from Global News' Katherine Ward and the Canadian Press
Canada finance minister, Honda met on potential EV project


FILE PHOTO: An employee works on the Honda CR-V vehicle on the assembly line at the production facilities of Honda Canada Manufacturing in Alliston, Ontario, Canada March 16, 2022. 
Cole Burston/File Photo© Thomson Reuters

By Ismail Shakil and Steve Scherer

OTTAWA (Reuters) -Canada's Finance Minister Chrystia Freeland said on Thursday she met with Honda Motor representatives about locating a potential almost 2-trillion-yen ($13.7 billion) electric vehicle plant in the country.

"I had a meeting with Honda and it's a company that has been a very important investor in Canada," Freeland told reporters in Toronto, adding that other government officials also had meetings with the Japanese automaker.

"That's a very important relationship, and our work with them is ongoing," Freeland said, without specifying when the meetings took place.

Freeland added that there had been various meetings between Honda and government officials in different departments.

On Sunday, Japan's Nikkei news group reported that Honda is looking at multiple potential sites for the plant, including next to an existing automobile factory in Alliston, Ontario.

The report said Honda expects to make a decision by the end of 2024 and bring the new facility online as early as 2028.

Canada has wooed companies involved in all levels of the EV supply chain to safeguard the future of its manufacturing heartland in Ontario as the world seeks to cut carbon emissions.

Prime Minister Justin Trudeau last year said that Canada was looking for more "targeted" investments after the government gave hefty subsidies to Volkswagen and Stellantis-LG Energy Solution for their planned battery gigafactories.

Honda, Japan's second-biggest car maker, announced on Tuesday plans to launch a new electric vehicle series from 2026, as it plays catch-up with global rivals in the shift to battery-powered cars.

Honda has been slow to step up sales of electric vehicles. The automaker, with partner LG Energy Solution, in 2022 announced Ohio as the site of a planned $4.4 billion joint venture battery plant.

(Reporting by Ismail Shakil, Promit Mukherjee and Steve Scherer in Ottawa; Editing by Chris Reese and Nick Zieminski)

World added 50% more renewable energy but more needed: IEA

Story by AFP  • 

A field of solar panels in China, which the IEA dubs 'the world's renewables powerhouse'



The world added 50 percent more renewable energy capacity in 2023 over the previous year but more is needed in the battle against climate change, the International Energy Agency said Thursday.

The increase was the fastest growth rate in the past two decades and the 22nd year in a row that renewable capacity additions set a new record, the Paris-based IEA said.

The rise was driven by China, the planet's biggest emitter of greenhouse gases but also what the IEA called "the world's renewables powerhouse".

Massively scaling up the deployment of solar and wind power while winding down the use of fossil fuels is crucial to achieving the goal of limiting global warming to 1.5 degrees Celsius from pre-industrial levels.



Renewable energy: development accelerating but still insufficient© Anibal MAIZ CACERES

But the world is not on pace to reach the goal of tripling renewable capacity by 2030, a target agreed by nearly 200 nations at the UN's COP28 climate summit in Dubai last month, the IEA said.

The COP28 agreement also called for "transitioning away" from fossil fuels, but without setting a timeline and short of a "phase-out" demanded by many nations but opposed by oil giant Saudi Arabia.

Global renewable capacity is expected to increase 2.5 times from 2022 levels by the end of the decade, the agency's annual report on the sector found.

"It's not enough yet to reach the COP28 goal of tripling renewables, but we're moving closer –- and governments have the tools needed to close the gap," IEA Executive Director Fatih Birol said.

Birol said onshore wind and solar panels were less expensive now than fossil fuel plants in most countries.

"The most important challenge for the international community is rapidly scaling up financing and deployment of renewables in most emerging and developing economies," he said.

"Success in meeting the tripling goal will hinge on this," Birol added.

- All-time highs -

The agency, which advises developed countries on energy policy, said renewable capacity reached almost 510 gigawatts last year, with solar photovoltaics (PV) accounting for three-quarters of additions worldwide.

China commissioned as much solar PV last year as the entire world did in 2022, while the country's wind power additions rose by 66 percent year-on-year.

Increases in Europe, the United States and Brazil "also hit all-time highs", the energy watchdog said.

Prices for solar PV devices fell by 50 percent in 2023 compared to the previous year.

The IEA said costs are expected to fall further as global manufacturing capacity is forecast to significantly exceed demand by the end of 2024.

The wind industry, however, is facing "a more challenging environment due to a combination of ongoing supply chain disruption, higher costs and long permitting timelines", the report said.

- 'Not fast enough' -

Dave Jones, global insights programme director at the Ember think tank, said the sector's 2023 growth "makes it clear that a tripling of renewables is entirely achievable".


"We are increasingly on track not only for a peaking of fossil fuel use this decade, but for sizable falls in fossil fuel use," Jones said.

"2024 will be the year that renewables changed from a nuisance for the fossil fuel industry, to an existential threat," he added.

Dean Cooper, global energy lead at conservation group WWF, said renewable energy generation was increasing "fast but not fast enough".

"We will not avert climate catastrophe while fossil fuels continue to be burned," he said.

"Those who want to see a liveable planet should increase pressure on their government to convert words into action by demanding they urgently transform their energy systems," he said.

cho/lth/js

Thursday, January 11, 2024

ALBERTA

First Nations, Métis settlements join forces for deal backed by Indigenous Opportunities Corporation

PETRO POLITRICKS

The Alberta Indigenous Opportunities Corporation (AIOC) has expanded its reach into northern Alberta with oil and gas infrastructure assets.

The newly-formed Wapiscanis Waseskwan Nipiy (WWN) Limited Partnership comprises nine First Nations and three Métis settlements that are participating for the first time in a transaction backed by AIOC.

The $150 million loan guarantee, which is AIOC’s second largest commitment in its seven deals to date, was announced Dec. 13. It will allow WWN to acquire an 85 per cent non-operated working interest in Clearwater Infrastructure Limited Partnership for a purchase price of $146.2 million.

Clearwater is a partnership between WWN and Tamarack Valley Energy Ltd. Tamarack owns an interest in midstream assets, such as strategic oil batteries, gas process facilities and key in-field pipelines located in Nipisi, West Marten Hills, Marten Hills and Perryvale in Alberta.

According to law firm MLT Aitkens, which is representing WWN, this is the first time an AIOC transaction has been with an exploration and production company and the first time an AIOC transaction has been involved in the acquisition of a majority interest in infrastructure assets.

Tamarack says it will transfer $172 million of “certain Clearwater midstream assets” to the Clearwater partnership. Under the terms of the agreements, Tamarack has made a 16-year take-or-pay (TOP) commitment for average volumes of 29,000 barrels of oil per day.  TOP is a provision in a purchase contract that guarantees the seller a minimum portion of the agreed-on payment if the buyer does not follow through with buying the full amount.

The nine First Nations to form the partnership are Driftpile Cree, Peerless Trout, Kapawe’no, Sawridge, Sucker Creek, Swan River, Whitefish Lake 459, Loon River and Duncan’s, along with the Métis settlements of East Prairie, Peavine and Gift Lake.

Sucker Creek and Duncan’s First Nations were also included in a second AIOC deal announced in December. They joined with Sturgeon Lake and Horse Lake First Nations and Aseniwuch Winewak Nation of Canada to form the Niyanin Nations LP.

Niyanin Nations received a loan guarantee of about $20.5 million to partner as investors with NuVista Energy Ltd. in a 15-megawatt cogeneration unit at the Wembley Gas Plant in the County of Grande Prairie. The Niyanin and NuVista partnership will own a majority interest in the cogeneration project, which will generate electricity and useable heat.

Chana Martineau, CEO for AIOC, would not disclose the projected revenues for either deal, saying only that the “revenue needs to be meaningful for the communities.”

She also would not disclose whether the two new partnerships had the Indigenous nations sharing equally in the revenue.

With AIOC providing more than $680 million in loan guarantees directly impacting 42 Indigenous groups, Martineau says projected revenues for total projects are “north of $30 million” annually. However, she cautioned that there were a number of factors that go into projections.

“I’m thrilled for these new nations to join the AIOC family of supported communities. These ones (were) very special to me, especially after the wildfires in the spring in this region. To be able to support two deals in this sector is very, very important,” said Martineau.

Many of the communities that are part of the two deals declared local states of emergency during the spring wildfires and were impacted by evacuations, loss of homes and structures, and electricity.

That AIOC announced two loan guarantee deals within days of each other in December was coincidental, says Martineau, as negotiations can take anywhere from six months to a full year.

“We’ve got more deals in the funnel,” she added, but wouldn’t disclose how many deals or in what sectors. “These are similar to mergers and acquisitions type transactions (and) sometimes they fall apart at the last minute.”

Martineau, who joined the board in November 2021 before becoming CEO in July 2022, wouldn’t say how many potential deals have fallen apart, only that AIOC has been “pretty fortunate” to have committed partners on both sides of the table.

What helps the process, she adds, is that AIOC is involved from the beginning and able to “give our views about the credit worthiness of the transaction.”

As for money Indigenous nations may have lost on deals that didn’t come to fruition, Martineau notes that AIOC provides capacity grants for things like legal support, due diligence work and tax structuring so Indigenous nations can participate without a lot of upfront cash.

In 2023, three deals were closed. That’s the most in a single year since the AIOC was formed in 2019 to support Indigenous participation in natural resource projects. The Crown corporation was an election promise made by former United Conservative Party premier Jason Kenney.

Martineau says it took time to set up the AIOC infrastructure, including developing policies, procedures, and finance functions.

In February 2022, AIOC’s mandate was expanded to include projects and related infrastructure in the agricultural, transportation and telecommunications sectors. However, none of the projects supported to date include those new sectors.

Martineau says she is asking partners to be patient.

“When you're looking at investing in new sectors, you need to learn the sectors. You need to understand the corporate partners, you need to understand what the opportunities are, what the risks are… because (with) each deal, we're breaking new ground here. These are new types of partnerships,” she said.

“We need to look at and see ‘how do we do this in a way that works for all three parties—the corporate partner, the Indigenous partners and the government of Alberta loan guarantee’. It takes some, I'll call it corporate creativity, to come to the table in a way that makes sense for all three parties. It's not a cookie cutter approach.”

But more than time is needed, says Martineau. Personnel is also required, especially as AIOC’s loan guarantee capacity of $1 billion was doubled earlier this year and will rise to $3 billion as of 2024-2025.

“We've asked the government for some more resources. We don't know if that'll get approved,” said Martineau, noting that the 15 full-time employees AIOC currently has “will be just fully deployed coming up here in the next two months.”

The government’s new fiscal year with a new budget begins April 1.

Presently AIOC has a posting for a director of talent management, who will work on recruitment strategies. As well, experts have been contracted for short-term service.

“We can contract experts to help us, but we have a very small budget where we are very mindful of taxpayer dollars and so we try to do this as efficiently as we can. We've been measured in our growth,” said Martineau.

Martineau anticipates green energy development will come onto AIOC’s radar once the province lifts the moratorium imposed last August on approvals of projects in the sector. The Alberta Utilities Commission is expected to make recommendations in March on how to move forward.

Once more Martineau wouldn’t say if there are any existing applications for renewable energy projects on the books.

“We are looking to broaden our impact in in all ways, so different types of industries even and different types of energy projects… We have a lot of latitude.... We have sectors, but we have a broad reach across those sectors and so we'd like to help expand our scope. We are building out our team and our capacity in order to do that,” she said.

“We're supporting the industries that Indigenous communities are looking to invest in to the best that we can.”

Windspeaker.com

By Shari Narine, Local Journalism Initiative Reporter, Windspeaker.com, Windspeaker.com

Panama Canal drought forces Maersk to start using 'land bridge' for Oceania cargo


In an advisory to clients, Maersk informed shipping customers that vessels that use the Panama Canal will no longer be traversing the canal with freight from Oceania (Australia and New Zealand) because of the ongoing water situation.

The latest water level issues for the canal come as it is expected to receive additional vessel traffic as ocean carriers avoid the Red Sea due to the ongoing Houthi attack risk.

Forty percent of all U.S. container traffic travels through the Panama Canal every year, which in all, moves roughly $270 billion in cargo annually.



View of stranded boats at Alhajuela Lake during the summer drought, in Colon province, 50 km north of Panama City, Panama, on April 21, 2023. The Alhajuela lake is one of the main lakes that supplies water to the locks of the Panama Canal and is at its lowest level of recent years.© Provided by CNBC

The Panama Canal drought conditions have led shipping giant Maersk to inform clients this week that vessels with freight from Oceania (Australia and New Zealand) will no longer traverse the canal because of the ongoing low water levels. Maersk will be servicing the client's containers by using a "land bridge."

Instead of going through the Panama Canal, the vessels would call the Ports of Balboa, Panama, on the Pacific side — dropping off cargo heading for Latin America and North America and picking up cargo heading for Australia and New Zealand. The Port of Manzanillo, Panama, on the Atlantic side, will be used for dropping off cargo heading for Australia and New Zealand and picking up cargo heading for Latin and North America. Once at the port, containers would be loaded or unloaded and would then move via an existing rail over a distance of 80 kilometers across Panama to be picked up by another vessel. The change in service covers two transits per week, according to Maersk.

A severe drought has led to water depth and weight restrictions on ships passing through the Panama Canal, and additional container surcharges imposed by ocean carriers on shippers for months.

"Based on current and projected water levels in Gatun Lake, the Panama Canal Authority (ACP) has needed to make reductions to the amount and weight of vessels that can pass through the canal. Whilst we continue to work closely with the ACP, moderating and aligning our operations to fit the changes, we have made changes to services to ensure that our customers are impacted as minimally as possible," Maersk's client advisory stated.

Maersk emphasized there would be no delays for Northbound cargo stopping in Philadelphia and Charleston. Companies like McDonald's import their Wagyu Beef from Australia and use this route to import their beef into the East Coast.

For the Southbound vessels, Maersk cautioned customers may experience some delays.

The company is also eliminating the shipping route to Cartagena, Columbia.

The Panama Canal Authority has increased the number of transit slots to 24 daily this month after first announcing a reduction of vessel transits to 18 in February. But this is far below the daily transits of 36.

The Panama Canal is popular for East Coast trade because it is faster than other options. The shipping time for ocean cargo from Shenzhen, China, to Miami, Florida, using the Suez Canal takes 41 days. Traveling through the Panama Canal takes only 35 days. The latest water level issues for the canal come as it is expected to receive additional vessel traffic as ocean carriers avoid the Red Sea due to the ongoing Houthi attack risk, with Maersk among shippers that recently had to halt Red Sea traffic.

Forty percent of all U.S. container traffic travels through the Panama Canal every year, which in all, moves roughly $270 billion in cargo annually.

Late December to April is traditionally Panama's dry season.

According to the PCA, it takes around 50 million gallons of fresh water to move a vessel through one of the locks. The Panamax locks lose more water compared to the Neo-Panamax lock. The Neo-Panamax locks have a water recovery system which can reclaim 60% of the water used during a vessel's transit through the locks. The Panamax lanes do not have the water-recapturing ability of the Neo-Panamax locks.

Maersk stressed that as a whole it is not bypassing the Panama Canal, but its decision related to the Oceania freight will impact the declining cargo volume passing through the Panama Canal. In 2023, it was reported 510 million tons of cargo traversed the canal, which was eight million tons less than 2022. Even with the decrease in volumes, the Canal Authority reported record revenue from October 2022 to September 20, 2023. Surcharges and other charges added to cross the canal fueled the revenue increase. From October 1, 2022- September 30, 2023, the PCA received $3.3 billion. That was $319 million higher than a year earlier.

The Panama Canal Authority said its multimodal transportation system is a way that maritime customers, such as Maersk, and the PCA itself can cope with the impacts of climate variability worldwide and the current water shortage at the canal. "We will continue to support Maersk's operations. ... We are focused on delivering both short- and long-term solutions for our customers, for when climate anomalies affect our operations," it said in a statement to CNBC.


CNBC VIDEO
What the Panama Canal is doing to fight a severe drought challenge


    Ukraine lists world's largest fast-food chain as sponsor of war

    Story by Nataliia Direyeva • 

    Photo: Fast-food franchise Subway (wikipedia.org)© RBC-Ukraine (CA)

    Ukraine has included the American multinational fast-food franchise Subway in the list of international sponsors of the war. The company continues its business operations in Russia, according to the National Agency for the Prevention of Corruption (NAPC).

    The Agency noted that over 500 Subway network restaurants (Subway AP LLC) continue to operate in the aggressor country, paying hundreds of thousands of dollars in taxes to the Russian budget.

    "The Subway brand also actively advertises its activities through sanctioned Russian social networks and delivers food through 'Yandex' services, which cooperate with the state and law enforcement agencies of the aggressor country," the statement said.

    NAPC highlighted that after the start of Russia's large-scale invasion of Ukraine, the company did not report any reduction in its activities in the aggressor country. There were also no attempts by Subway's management to condemn the Kremlin's war.

    About the company

    Subway is one of the world's largest fast-food restaurant chains.

    According to Statista platform data, in 2023, this global quick-service restaurant brand had 36,592 stores worldwide. In other words, Subway had more restaurants worldwide in a year than any other network.

    Subway's activities in Russia

    The company has been operating in Russia for over 20 years, creating around 6,000 jobs and having 550 restaurants in 122 cities. The Russian Subway network is currently the third largest in Europe by the number of outlets, after the United Kingdom and Germany.


    A distinctive feature of Subway's business is that it operates on a franchise system, meaning there is a large network of legally independent entities operating under the Subway brand, generating income, and paying taxes. In Russia, the Subway network franchise is owned by the company Subway Russia Service Company, headquartered in St. Petersburg.

    "Subway stated that all restaurants in the country are independently owned and operated by local and master franchisees, so the restaurants remain open in Russia. This statement regarding the inability to influence its franchisees does not correspond to reality and is essentially misleading," noted NAPC.

    War sponsors

    NAPC is an organization that checks private companies for integrity, including whether they sponsor the war against Ukraine. Thus, during Russia's full-scale invasion, a list of International sponsors of war was created.

    Companies that did not leave the Russian market, conduct business, and pay taxes in Russia, thereby financing the war, were included in this list. For example, the globally renowned Nestle corporation was included. It is one of the world's largest food product manufacturers.

    It was also recently reported that Ukraine included the Viciunai Group in the list of international war sponsors. This company manufactures crab sticks under the Vici brand.
    Second Wells Fargo branch employees vote in favor of a union
    Story by Reuters •

    FILE PHOTO: A Wells Fargo logo is seen in New York City, U.S.
     REUTERS/Stephanie Keith/File Photo© Thomson Reuters

    NEW YORK (Reuters) - Wells Fargo employees at a branch in Daytona, Florida, voted in favor of joining a union on Thursday, making it the second branch at the bank to do so.

    Last month employees at Wells Fargo's Albuquerque, New Mexico, branch voted to join the union. Elections at a branch in California are expected to be held later this month.

    With the unionization effort at its branches, Wells Fargo, has become one of the first major U.S. lender to have a unionized workforce.

    "We’re incredibly proud of the Daytona Beach Wells Fargo workers for joining their colleagues in Albuquerque in a successful union vote,” said Committee for Better Banks organizing director Nick Weiner.

    The Daytona Beach employees voted 4-1 in favor of joining the Communications Workers of America's Wells Fargo Workers United (WFWU), the union said.

    "Now with a true seat at the table, we look forward to negotiating improvements to staffing, workloads, pay inequities, and many other issues," said Corinne Jefferson, a personal banker at Wells Fargo’s Daytona Beach branch on International Speedway.

    Some other employees at a branch in Bethel, Alaska, withdrew from the unionization effort last month.

    Recent unionization campaigns across the U.S. have led to tense showdowns between employees and corporate behemoths. Lucrative deals clinched by unions such as the United Auto Workers, which secured record pay hikes for employees, have bolstered unionization efforts.

    (Reporting by Nupur Anand in New York and Mrinmay Dey in Bengaluru; Editing by Leslie Adler)

    BIDENOMICS

    Wall Street little changed after inflation, labor market data


    Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 9, 2024. REUTERS/Brendan McDermid/File Photo© Thomson Reuters

    By Chuck Mikolajczak


    NEW YORK (Reuters) -U.S. stocks closed little changed on Thursday as news of hotter-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by the Federal Reserve this year, but a fall in Treasury yields kept declines in check.

    In a choppy session, equities opened higher and the benchmark S&P 500 briefly surpassed its record closing high of 4,796.56, hit in January 2022, before erasing initial gains.

    After ending 2023 with a strong rally, stocks have struggled to find upward momentum, with the S&P 500 up only 0.21% on the year, as mixed economic data and Fed officials' comments have led investors to scale back expectations for the timing and size of any rate cuts from the U.S. central bank this year.

    The U.S. Labor Department reported that consumer prices rose more than expected in December, with Americans paying more for shelter and healthcare. A separate report showed the number of people filing new claims for unemployment benefits unexpectedly fell last week to 202,000.

    "They're just understanding it for what it was. The thing that pushed it up was primarily shelter," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.

    "Nobody believes that is going to be a persistent go-forward problem apart from inflation, so the thing that drove the 'hot print' was something that everybody's kind of discounting."

    Comments from some Fed officials have pushed back on potential rate cuts. On Thursday, Cleveland Fed President Loretta Mester and Richmond Fed President Tom Barkin said consumer price data for December did little to assure them inflation is now on a steady track back to the central bank's 2% target, with more information needed before any decision to begin reducing rates.

    At 4:11 p.m. the Dow Jones Industrial Average rose 15.29 points, or 0.04%, to 37,711.02. The S&P 500 lost 3.21 points, or 0.07%, at 4,780.24 and the Nasdaq Composite gained just 0.54 points, at 14,970.19.

    A fall in Treasury yields helped keep losses for equities in check, after an auction of $21 billion in 30-year bonds was well received.

    "People are still worried about supply in the Treasury market. ... Is there going to be sufficient demand to soak that all up? And especially at the long end, the real fear is at the long end and the auction today, it was just perfect," said Ladner.

    Microsoft briefly overtook Apple as the world's most valuable company, after the iPhone maker's shares dropped nearly 4% since the year began due to concerns over falling demand. Microsoft's shares rose 0.49%, while Apple shed 0.32%.

    Nearly all of the S&P 500's 11 major sectors declined, with only energy and technology in positive territory, up 0.16% and 0.44%, respectively.

    Crypto stocks reversed early gains and tumbled, with names such as Coinbase off 6.7%, Bitfarms down 13.33% and Riot Platforms 15.82% lower. The U.S. securities regulator approved the first U.S.-listed exchange-traded funds (ETF) to track spot bitcoin late on Wednesday.

    Citigroup fell 1.77% after a filing showed the lender booked about $3.8 billion in combined charges and reserves that will erode its fourth-quarter earnings, due to be reported on Friday.

    Other banks including fell, with JPMorgan Chase, down 0.42%, Bank of America, down 1.33% and Wells Fargo off 0.08% ahead of their earnings reports on Friday.

    Declining issues outnumbered advancers for a 1.3-to-1 ratio on the NYSE and a 1.8-to-1 ratio on the Nasdaq.

    The S&P index recorded 40 new 52-week highs and one new low, while the Nasdaq recorded 109 new highs and 138 new lows.

    Volume on U.S. exchanges was 11.41 billion shares, compared with the 12.27 billion average for the full session over the last 20 trading days.

    (Reporting by Chuck Mikolajczak; Editing by Richard Chang)


    Climate disclosures: corporations underprepared for tighter new standards, study of 100 companies reveals

    THE CONVERSATION
    Published: January 11, 2024 



    Companies and the carbon emissions that they generate are one of the key drivers of anthropogenic climate change. Because of this, however, they also hold precious potential of curbing its severity. The 2021 Glasgow Pact stated that rigorous sustainability reporting standards that will push companies to disclose information about their impact on the environment as well as climate change’s impact on their operations are essential. For this reason, it supported the creation of the International Sustainability Standards Board (ISSB), a new branch of the International Financial Reporting Standards (IFRS) Foundation, which aims to develop a robust set of financial-related sustainability-reporting criteria.

    In June 2023, the ISSB issued its first two standards, IFRS S1, General Requirements for Disclosure of Sustainability-Related Financial Information and IFRS S2, Climate-Related Disclosures. The second focuses solely on climate change-related issues, requiring companies to disclose information around four aspects of their activities: governance, strategy, risk management, and metrics and targets. The standard requires information about the company’s governance body responsible for oversight of climate-related risks and opportunities, as well as quantitative disclosures (in particular, greenhouse-gas emissions).

    The standards have gained support from many global bodies, including the G7, the G20, the International Organization of Securities Commissions, and the Financial Stability Board. Although no country has yet adopted them, many are expected to endorse or require them in the near future. Countries such as the UK and Brazil are moving toward this direction. Also, the European Commission confirmed that climate-related disclosures of the European Sustainability Reporting Standards exhibit a high degree of alignment with second IFRS standard, and EU-based companies will have to adopt them in 2024.
    Are companies ready for this transition?

    At the end of March 2022, the ISSB issued drafts of the two standards. Our study explored the ex ante level of firms’ adherence with climate-related disclosures by capturing disclosure levels against those proposed as to be required by the draft IFRS S2 (known as ED IFRS S2). Our year of analysis was the financial year 2021, i.e., the year immediately prior to the publication of the draft. We purposely focused on 100 large international companies in sectors with high carbon emissions, comprising 50 from the chemicals and 50 from the construction materials sectors.




    Due to their size, such companies are under increasing pressure from consumers, shareholders, regulators and NGOs to report on their climate-related risks and opportunities. To carry out our analysis, we built a research instrument based on the ED IFRS S2 and scored the firms’ publicly available reports, ranging from annual, sustainability to integrated reports.
    Variations in reporting

    Our findings indicate that, on average, the companies analysed disclose around 39% of the items they would be required to reveal under the ED IFRS S2. When we zoom into the four categories of the ED IFRS S2 “core content”, we find that companies engage much more with climate-related disclosures about their governance processes (around 60%) but much less with strategy and risk management disclosures (around 36% and 35%, respectively).

    For metrics and targets, companies disclosed more of their climate-related targets than reporting their metrics (i.e., outcomes) with average levels around 67% and 35%, respectively. In other words, companies are found to be more vocal about their future plans (i.e., their future targets) than they are about their actual achievements so far (i.e., metrics). The moderate overall level of companies’ forecasted adherence with the draft standard does not allow us to draw a direct conclusion. Nevertheless, a closer look to the findings reveals some additional insights with important implications about the application of IFRS S2:

    It draws heavily from the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. When we focus specifically on the “new” items (those not included in the 2017 TCFD recommendations), we find that the related average disclosure score drops to about 25%.


    Many “new” items relate to the effects of climate-related risks and opportunities on financial statements. Our evidence indicates that climate-related disclosures appear disconnected from the financial statements. This is consistent with our previous studies on companies from the extractives sector that report very low levels of engagement with climate-related financial disclosures in their financial statements. For example, whether climate change affects companies’ accounting policies, their financial performance, and their cash flows.


    Companies use various locations to disclose their climate-related information with limited cross-referencing between their various reports. On average, 50% of the items disclosed are found in the annual reports, about 25% are found in sustainability reports only, and around 15% in other reports only (e.g., CDP response). The absence of cross-referencing potentially hinders the connectivity (and hence the usefulness) of the disclosures scattered among different reports.


    About 50% of the companies have, at least, some parts of their climate-related disclosures assured by a third party. The assurance refers primarily to the metrics disclosed and to a much lower extent to the narratives.
    More challenges ahead

    This fast-changing corporate reporting landscape brings new challenges for companies, regulators, standard setters, and users:

    Having contrasted the suggested requirements in the ED IFRS S2 and in the final version of IFRS S2, we note few differences that, however, do not alter the requirements in substance. If anything, IFRS S2 is more prescriptive and thus more “demanding” for companies.


    Future disclosure. Based on forecasted disclosure levels, companies face considerable changes to their reporting when the two standards are adopted, or made mandatory, at a country level.


    New standards on the horizon. The ISSB is considering a number of other sustainability-related topics such as biodiversity, ecosystems and ecosystem services; human capital; and human rights for its future standards. There is still a long way ahead for the ISSB to cover such a multidimensional topic satisfactorily. At the same time, companies may find it particularly challenging to collect all the necessary information for adequately disclosing their sustainability-related activities/impact when the full set of IFRS sustainability standards is completed.


    Materiality. According to IFRS S1, companies shall disclose sustainability disclosures that have financial implications for them and their financial capital providers. Nevertheless, the magnitude of various climate-related risks (especially the physical ones) companies, potentially, face inherently cannot easily be reliably measured. Hence, the reliability of these disclosures may be questioned.


    Audit and assurance. Neither IFRS S1 nor S2 requires assurance of disclosures, although they recommend verification for some items (such as the volume of direct and indirect greenhouse gas emissions). Nevertheless, companies are required to disclose material sustainability-related financial information which is likely to be subject to the audit process. It is unclear how the audit of this extra financially material information will be performed.


    Integrated reporting. The intention of ISSB is to integrate financial and sustainability reporting, following the Integrated Reporting Framework. However, very few companies engage with disclosures directly connected to their financial statements. Without change in reporting, the ISSB’s purpose to provide integrated sustainability-related financial reporting standards may be undermined.


    Standards competition. Although the ISSB has received support from many jurisdictions, other countries (namely the EU block and the US) are working on separate projects (e.g., European Sustainability Reporting Standards). While the current “polyphony” helps to improve the quality of sustainability reporting standards, companies may find themselves being subject to multiple reporting requirements. Moreover, users may find it difficult to compare companies’ performance that report against different Standards. Without global comparability, sustainability reporting may fail its very purpose.


    Authors
    Diogenis Baboukardos
    Associate professor in accounting, management control and economics, Audencia
    Evangelos Seretis
    Lecturer in accounting, University of Glasgow
    Fanis Tsoligkas
    Associate professor in management, accounting, finance & law, University of Bath
    Ioannis Tsalavoutas
    Professor in accounting and finance, University of Glasgow
    Richard Slack
    Professor of accounting, Durham University

    Disclosure statement

    Our research project was funded by the Association of Chartered Certified Accountants in the UK.

    Our research project was funded by the Association of Chartered Certified Accountants in the UK

    Our research project was funded by the Association of Chartered Certified Accountants in the UK

    Ioannis Tsalavoutas does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.


    Durham University provides funding as a founding partner of The Conversation UK.

    University of Glasgow and University of Bath provide funding as members of The Conversation UK.

    Audencia provides funding as a member of The Conversation FR.




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