Tag: Canadas

  • Canada’s C$80B response to U.S. clean energy push: ‘We will not be left behind’

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    That, along with the attempt of many Western democracies to reduce their “economic reliance on dictatorships,” Freeland said, “represent the most significant opportunity for Canadian workers in the lifetime of anyone here today.”

    Canadian business leaders have long pushed the federal government to mount a competitive response to the U.S. Inflation Reduction Act, which pledged up to $369 billion in clean growth incentives.

    “Without swift action, the sheer scale of U.S. incentives will undermine Canada’s ability to attract the investments needed to establish Canada as a leader in the growing and highly competitive global clean economy. If Canada does not keep pace, we will be left behind,” the budget document reads. “We will not be left behind.”

    A senior government official told reporters the budget attempts to put Canada on roughly equal footing with the U.S. by reducing the cost of investment in clean technology. Canada needs about C$100 billion a year in clean tech investment to meet the government’s goal of achieving net-zero emissions by 2050 — up from current investments of C$15 billion to C$20 billion, the official said.

    The budget unveils two new refundable tax credits, including the 15 percent credit for non-emitting electricity generation. The Liberal government has promised Canada will achieve a net-zero electricity grid by 2035, while demand for clean electricity is projected to double by 2050.

    The government is also announcing a 30 percent tax credit on manufacturing equipment for renewable and nuclear energy projects, zero-emission vehicles and critical mineral extraction and recycling, expected to cost C$11 billion between now and 2035.

    Ottawa is also planning to roll out tax credits for investment in hydrogen, carbon capture, utilization and storage (CCUS) and other clean technologies, including geothermal energy. The official said tax credits are the “workhorse” of the government’s plan to compete with the U.S. “They are clear, they are predictable, they are broad-based and they’re broadly available,” the official said.

    Canada’s plan targets investment in clean technology — a key difference from the Inflation Reduction Act, which offers tax credits for production. The government official said Ottawa was “not convinced” by the Biden administration’s approach, which doesn’t provide any incentive to improve the efficiency of production over time.

    The official also pointed to Canada’s federal carbon pricing regime as a key difference between the two countries’ strategies for driving the low-carbon transition. The budget announces that Canada will use carbon contracts for difference — which offer companies some certainty about the value of carbon credits — as another means to boost clean tech investment without a major outlay of public funds.

    “In contrast, the United States has chosen to rely heavily on new industrial subsidies to reduce its emissions,” the document reads.

    Robert Asselin, senior vice president for policy at the Business Council of Canada, said the government “did as much as they probably could” with the suite of new tax credits.

    “They seem to be fairly well-targeted,” he said. “Whether they’ll have the take-up they want, nobody knows.”

    But Asselin added that Canada has so far not matched the U.S. push for research and development in clean technology.

    The government is also promising to cut down the amount of time it takes to get major projects off the ground, including mines for critical minerals. The budget pledges a “concrete plan to improve the efficiency of the impact assessment and permitting processes” by the end of 2023.

    Ottawa is also pledging a new round of consultations on a possible response to measures in the Inflation Reduction Act that favor U.S. suppliers. The government is considering responding in kind with measures that could restrict the new Canadian tax credits to domestic suppliers.

    Mostafa Askari, chief economist with the Institute for Fiscal Studies and Democracy, said it’s still unclear how the “magnitude” of Canada’s plan compares to the U.S. “It’s very hard to tell,” he said. “But my take on this was this was something they had to do.”

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    ( With inputs from : www.politico.com )

  • Canada’s population marks record-high growth in 2022

    Canada’s population marks record-high growth in 2022

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    Ottawa: The year of 2022 marked the first 12-month period in Canada’s history where population grew by more than 1 million people, and the highest annual population growth rate of 2.7 per cent since 1957, Statistics Canada said.

    Canada’s population was estimated at 39,566,248 on January 1, 2023, after a record population growth of 1,050,110 people from January 1, 2022, to January 1, 2023, the national statistical agency said on Wednesday, adding that international migration accounted for nearly all growth recorded, or 95.9 per cent.

    According to the agency, Canada is by far leading the G7 countries for population growth in 2022, as it has been the case for many years. Moreover, Canada’s population growth rate would put it among the top 20 in the world. Almost all countries with a higher pace of population growth were in Africa, Xinhua news agency reported.

    If it stayed constant in years to come, such a rate of population growth would lead to the Canadian population doubling in about 26 years, the agency said.

    The increase in international migration is related to efforts by the government to ease labour shortages in key sectors of the economy, Statistics Canada said.

    High job vacancies and labour shortages are occurring in a context where population aging has accelerated and the unemployment rate remains near record low. A rise in the number of permanent and temporary immigrants could also represent additional challenges for some regions of the country related to housing, infrastructure and transportation, and service delivery to the population, the agency added.

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    ( With inputs from www.siasat.com )

  • Canada’s GDP increases in January

    Canada’s GDP increases in January

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    Ottawa: Canada’s real gross domestic product (GDP) by industry increased 0.3 per cent in January, the national statistical agency said.

    Statistics Canada said on Tuesday that increases in the mining, quarrying, and oil and gas extraction, wholesale trade, professional, scientific and technical services, and transportation and warehousing sectors were slightly offset by decreases in construction and retail trade, reports Xinhua news agency.

    Real GDP by industry edged down 0.1 per cent in December 2022, following a 0.1 per cent uptick in November.

    Goods-producing industries declined, while service-producing industries remained essentially unchanged, the statistical agency said, updating its December data.

    According to Statistics Canada, GDP data showed that growth in the Canadian economy decelerated for a second straight quarter, edging up 0.2 per cent in the fourth quarter of 2022, the slowest pace of growth since the second quarter of 2021.

    Services-producing industries rose 0.5 per cent in the fourth quarter of 2022, up for a sixth consecutive quarter, while goods-producing industries contracted 0.6 per cent in the fourth quarter.

    Statistics Canada also updated the country’s GDP growth in 2022 to 3.6 per cent from its previous estimate of 3.8 per cent.

    Despite the interest rate hike impact, the removal of Covid-related restrictions, the presence of favourable farming conditions, and subsiding supply-chain issues and semiconductor shortages supported growth in 2022 and the annual economic activity exceeded its 2019 pre-pandemic level, said Statistics Canada.

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    ( With inputs from www.siasat.com )

  • No going back: Canada’s work-from-home MPs fight to preserve virtual Parliament 

    No going back: Canada’s work-from-home MPs fight to preserve virtual Parliament 

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    “Imagine if… [your] employer said you’re allowed to see your kids on Saturday. And we need you to work that day. That’s the current life under the old system,” said Liberal MP Terry Beech, who represents a riding in the western province of British Columbia. “I don’t think any Canadian would see that as reasonable.”

    Since the height of the pandemic, when working remotely was the rule, many members of Parliament have returned to Ottawa on a regular basis, preferring to stand in the House of Commons than to appear on a screen.

    But some have not. POLITICO reached out to a group of MPs who’ve chosen to mostly stay home, based on an analysis of travel expense reports since the last federal election in September 2021.

    Some have had serious health problems, and say working remotely was their only option. Some still worry about contracting Covid. But some, like Beech, say they don’t plan on returning to the way things were.

    Beech and Nathaniel Erskine-Smith, both Liberal MPs with young children, are open about choosing to spend more time away from Ottawa.

    “I’ve spent a large majority of my time in the constituency,” said Erskine-Smith, who lives in Toronto. “If you want serious people, younger people, people who want to be good spouses and be good parents to do this job … there has to be a certain level of flexibility to work remotely.”

    If Parliament went back to fully in-person proceedings, he added, “there is no chance I would run again.”

    This may be a moot point, given that Erskine-Smith is seriously considering a run for the leadership of the provincial Liberal party in Ontario. But he’s not alone. Last fall, NDP MP Laurel Collins, who has a young daughter, told the parliamentary committee considering the future of hybrid Parliament that she wasn’t sure she’d run again after the next election if virtual appearances weren’t an option.

    Beech said the pre-pandemic system was particularly unfair for MPs from western Canada, who travel long distances to Ottawa. As a parliamentary secretary — essentially an assistant to a Cabinet minister — Beech had to be in the House of Commons on Fridays, while many MPs head back to their ridings on Thursday evenings. After arriving home late Friday night, he would have Saturday to see his family and do constituency work, before heading back to Ottawa on Sunday.

    The hybrid Parliament has changed all that. “Managed correctly, you have more time to hit the gym, kiss your wife and pick up your kids from childcare,” he said in written comments to POLITICO. “I have to say I really enjoy attending national caucus meetings on my treadmill from time to time.”

    Beech said his new schedule also allows him to spend more time attending events in his constituency.

    Others view things differently, however. The opposition Conservatives have long called for a full return to in-person proceedings, claiming the hybrid option allows the government to dodge accountability. Still, some within their ranks have relied heavily on virtual appearances and remote voting.

    Conservative MP Todd Doherty said he wants to be back in the House of Commons full-time, but a serious injury has prevented him. Shortly after the 2021 election, he had knee-replacement surgery. Then, during the first week of the parliamentary session, he slipped on a wet floor and damaged his leg so badly he was at risk of losing it. He’s now recovering from a second surgery last December.

    “I took full advantage of hybrid because it was out of necessity,” he said.

    Despite a 17-hour commute between Ottawa and his northern B.C. riding, Doherty said he wants to get back to the way things were. “There’s not many Canadians that can say that they’ve been able to deliver speeches on the floor of the House of Commons,” he said. “And I think there’s nothing that will ever take that place.”

    If hybrid proceedings hadn’t been an option, he said, “I would have made it work. There’s no two ways about it — I would have done the best I could.”

    A few other Conservatives have also been conspicuously absent. Manitoba MP Ted Falk, one of a small group of Conservatives who disappeared from the House of Commons after a Covid vaccination requirement was imposed in the fall of 2021, appears to have spent very few sitting days in Ottawa between the election and the following summer break. Falk did not respond to multiple requests for comment.

    Other MPs say illness or fragile health has kept them on Zoom and out of Ottawa. Liberal MP Parm Bains, who has spent almost no time on Parliament Hill since he was elected as a rookie in 2021, has spoken openly about the dialysis treatment and kidney transplant that have kept him home in Richmond, B.C.

    “If it were not for the hybrid Parliament provisions, I could not have safeguarded my health and kept my commitment to represent my constituents in Parliament,” he wrote in a recent op-ed.

    Hedy Fry, another Liberal MP from B.C., told POLITICO she’s immunocompromised and has been staying home in Vancouver to avoid catching Covid. But Fry, 81, said it isn’t the same as being on the Hill, where she’s been an MP for nearly 30 years. “It has been difficult not to see [my] colleagues,” she said. “You can’t build relationships, either with your constituents or other people, when you’re always on a Zoom with them.”

    Erskine-Smith said there’s likely a “distinction on generational grounds” when it comes to how MPs view remote work.

    Tracking the physical presence of legislators in Parliament is challenging. Unlike with the American proxy voting system, data on remote voting in the House of Commons is not publicly available. Travel expense reports shed light on when MPs are in Ottawa, but they aren’t always up to date and can be difficult to interpret.

    Still, there are other cases that stand out. Liberal MP Serge Cormier, who represents a riding in Atlantic Canada, appears to have spent roughly five sitting days in Ottawa between the fall of 2021 and the summer of 2022. He did not respond to multiple interview requests. Neither did Toronto-area Liberal MP Shaun Chen, who seems to have spent about 10 sitting days in the capital.

    NDP MP Niki Ashton, who represents a remote riding in northern Manitoba, also appears to have been in Ottawa for about 10 sitting days. She did not respond to POLITICO’s requests, though she has previously proclaimed that “a family friendly Parliament means a hybrid Parliament.”

    The decision of some lawmakers to spend much less time in Ottawa raises other questions. Many of the MPs who’ve been more often in their home ridings, including Beech, Erskine-Smith, Doherty, Fry, Chen and Ashton, still claim expenses for apartments or condos in the nation’s capital, often charging between C$1,000 and C$2,500 a month.

    Erskine-Smith said he’s been trying to sell his condo for more than a year. Beech said he needs to keep his home base in Ottawa, even though he’s spending less time there, so that his wife and kids have somewhere to stay when they join him.

    But Doherty said it weighs on him. “It is definitely something that you think about all the time,” he said. “These dollars aren’t ours. These dollars are taxpayer dollars.”

    The Liberal government must now decide whether to propose permanent changes to the rules governing the House of Commons. But in a possible indication of the direction it will take, Government House leader Mark Holland has spoken out forcefully in favor of hybrid provisions. He told the committee last fall about the impact that being a parliamentarian had on his personal life early in his career, including a failed marriage and a suicide attempt.

    Divorce and mental health issues are all too common among federal politicians, Beech told POLITICO. “I am so happy to still be married to my wife… to be able to watch my kids grow up,” he said. “Hybrid needs to stay… the country will be better for it.”



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    ( With inputs from : www.politico.com )

  • Canada’s real GDP grew 3.8% in 2022

    Canada’s real GDP grew 3.8% in 2022

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    Ottawa: Canada’s real gross domestic product (GDP) grew 3.8 percent in 2022, the national statistical agency announced.

    Statistics Canada on Tuesday said that it indicated a 0.4 percent increase in real industry GDP in the fourth quarter of 2022 and a 0.1 percent increase in December, reports Xinhua news agency.

    In December, increases in the retail, utilities, and public sectors were offset by decreases in the wholesale, finance, and insurance, and mining, quarrying, and oil and gas extraction sectors, it said.

    Owing to its preliminary nature, these estimates will be updated on February 28 with the release of the official GDP data for December and the fourth quarter of 2022, Statistics Canada added.

    Canada’s GDP edged up 0.1 percent in November, following the same growth in October.

    Growth in services-producing industries was partially offset by a decline in goods-producing industries, Statistics Canada said, explaining that the removal of travel restrictions and rising interest rates continued to affect certain industries.

    On October 1, 2022, all Covid-19 border restrictions, including vaccination, mandatory use of the ArriveCAN app as well as any testing and quarantine requirements, were removed for all travelers entering Canada by land, air, or sea.

    This removal of restrictions continued to support gains in the transportation and warehousing sector in November.

    Meanwhile, interest rate hikes by the Bank of Canada over the course of 2022 continued to have an effect on the activity at offices of real estate agents and brokers, residential building construction, and legal services which have been trending downward since the spring, Statistics Canada said.

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    ( With inputs from www.siasat.com )