Alberta receives $1.6 billion in government support for slumping Canadian oil prices

   Canada column for Sunday, Dec. 23/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   It is being looked on by some as the Canadian government giving the Alberta oil patch an early Christmas present in the form of a $1.6-billion lifeline in immediate aid.

   The oil-rich province is reeling from record-low Canadian oil prices and roadblocks delaying pipeline expansions to move crude to new overseas markets.

   The government money includes $1 billion to assist companies invest in new technologies and $500 million in commercial financing initiatives over three years.

   There is also $50 million from Canada’s Clean Growth Program that is expected to generate $890 million in investment and $100 million for diversification-related projects.

   “We understand that when Alberta hurts, so does Canada,” said Natural Resources Minister Amarjeet Sohi.

   The aid package that some are calling “corporate welfare,” does little to fix the pipeline issues crippling the province, said Alberta Premier Rachel Notley.

   “We don’t need help finding more markets – we need help moving our product,” she said.

Mike Duffy's lawsuit over dismissal refused by the courts

   Canada column for Sunday, Dec. 16/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   Senator Mike Duffy’s $8-million lawsuit against the Senate has been dismissed by an Ontario Superior Court judge.

   Justice Sally Gomery said that allowing a court to revisit the Senate’s decision to dismiss Duffy on accusations of improper spending would “interfere with the Senate's ability to function as an independent legislative body.”

   He was cleared of criminal wrongdoing in 2016 and launched the lawsuit claiming his constitutional rights were abused in pursuit of a scapegoat during a Senate expenses’ scandal.

   In particular, Duffy, who represents Prince Edward Island, said the disciplinary action to suspend him and cut his pay and benefits before the criminal investigation was completed was “an unprecedented abuse of power.”

   His lawyer, Lawrence Greenspon, said the judge relied on a “centuries-old concept” of parliamentary privilege to rule that protections in the Charter of Rights and Freedoms don’t apply to senators.

   Duffy said he will continue with a similar lawsuit against the Royal Canadian Mounted Police.

Oil patch price turmoil to hammer Canada's economic outlook: Bank of Canada

   Canada column for Sunday, Dec. 9/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   Turmoil in Western Canada’s oil patch hit by low prices is reverberating across the country’s economy.

   Stephen Poloz, Bank of Canada governor, made the comment as the central bank held steady on its trendsetting interest rate upon which banks set their prime lending rates.

   Even so, Poloz said he expects interest rate increases will be coming “over time.”

   The stronger economy allowed the bank to slowly raise rates but the future will hold more gradual increases due to economic developments.

   Leaving the bank rate unchanged at 1.75 percent “remains appropriate for the time being,” Poloz said, but the rate should rise in time to 2.5 to 3.5 percent.

   Key factors are the steep slide in Canadian oil prices due to “geopolitical developments,” uncertainty about global growth, expansion of U.S. shale oil production and a decline in business investment.

   “It is already clear that a painful adjustment is developing for Western Canada and there will be a meaningful impact on the Canadian macro economy,” Poloz said.

Keeping General Motors' plant in Canada is "futile," politicians say

   Canada column for Sunday, Dec. 2/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   Politicians suggest it will be futile to try to convince General Motors to keep its Oshawa, Ontario plant open beyond a year from now.

   The company dropped a bombshell with the announcement the assembly plant just east of Toronto will be closing with the loss of about 3,000 jobs.

   It’s a devastating blow to the city of 170,000 people where GM has produced cars and trucks since 1953.

   GM said it is one of five plants in Canada and the U.S. to close as it restructures to cut costs and focus more on autonomous and electric vehicles.

   It’s a “done deal” and there’s nothing the government can do to change the plan, Ontario Premier Doug Ford said.

   Instead, Ford and the federal government will work to help the affected workers with extended jobless benefits and retraining.

   Unifor president Jerry Dias said his union is losing much of its manufacturing to low-cost labor in Mexico and wants Prime Minister Justin Trudeau to get tough with GM.

   He said the union will put up “the fight of our lives” to keep the plant open.