Canadian interest rates likely to stay put: Bank of Canada report

   Canada column for Sunday, Oct. 27/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canadians can expect interest rates to stay where they are – or even be cut further – over the next several years, the Bank of Canada said.

   The comment triggered a sell-off of Canadian dollars that pushed the currency almost two cents U.S. lower than a week ago.

   The bank’s monetary policy report also lowered anticipated economic growth.

   “The statement is making it clear we have balanced the risks,” new bank governor Stephen Poloz said.

   Previous bank statements cautioned consumers about over-borrowing but this time it was suggested there could be cuts to the 1-percent key rate that’s been in place for more than three years.

   Continued weakness in exports with restrained spending on machinery and equipment is a major concern keeping inflation below target.

   The bank cited fiscal turbulence in the U.S. and continued weak global demand that have kept Canada’s exports from rebounding.

   A concern for the government has been the risk of reigniting the housing market through increased borrowing that could cause problems for consumers when interest rates begin rising again.

 (For more Canadian news for the week, click "Read More")

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Police investigate more alleged financial irregularities in Senator Mike Duffy case

   Canada column for Sunday, Oct. 13/13

   THE CANADIAN REPORT

   By Jim Fox

   The Mounties have disclosed additional alleged financial improprieties against Conservative Senator Mike Duffy.

   The Senate’s “expenses’ scandal” has widened into a police investigation in which authorities want a judge to allow access to the banking records of Duffy, a former national TV news commentator.

   In a court statement, police said they are looking at new allegations of fraud and breach of trust concerning Duffy giving $65,000 in Senate contracts over four years to a friend who did little actual work.

   As well, Prime Minister Stephen Harper's former chief of staff had a “quite detailed” calendar and notes about Duffy’s travel, meetings and activities that weren’t given to investigators, Corporal Greg Horton wrote in a statement for a judge’s review.

   Nigel Wright, now the former chief of staff, gave $90,000 in March to Duffy, appointed by Harper to the non-elected Senate, to repay questionable housing and travel expenses.

   The Senate had initially asked independent auditors to review Duffy's expenses after allegations he was improperly claiming a house in Prince Edward Island as his main residence.

   The Mounties are also seeking bank records for Conservative Senator Patrick Brazeau in connection with disallowed housing claims.

(Click on Read more for more Canadian news of the week)

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Chocolate lovers can scoop up $50 or more rebate in lawsuit against price-fixing

   Canada column for Sunday, Oct. 6/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   There is sweet news of a $50 rebate for Canadian chocolate lovers as the result of an industry price-fixing scandal.

   The settlement of a class-action lawsuit that alleged price-fixing by four major manufacturers means there will be payback to consumers.

   While denying the allegations, Cadbury Adams Canada Inc., Hershey Canada Inc., Nestle Canada Inc. and Mars Canada Inc., as well as distributor ITWAL Limited, have agreed to pay $23.2 million in compensation.

   Courts in British Columbia, Ontario and Quebec have approved a settlement of $50 to anyone who submits a form – even without receipts – declaring they bought any of the companies’ products between Oct. 1, 2005 and Sept. 30, 2007.

   There is a higher payback for consumers who have receipts for more than $1,000 in products, all with a deadline to file of Dec. 15. The form is here: https://claims-chocolateclassaction.com/FileClaim/ConsumerClaim

   In June, Hershey pleaded guilty to fixing the price of chocolate products in Canada and was fined $4 million. Trials are proceeding against the other companies named.

  (Click on Read more for more Canadian news of the week)

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Alberta murderer gets Canada's stiffest prison term since the death penalty was repealed

   Canada column for Sunday, Sept. 15/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   The toughest prison sentence since Canada’s last execution was given to an Alberta armored car guard who shot four of his fellow workers, three fatally.

   Travis Baumgartner, 22, was sentenced to life in prison with no chance of parole for 40 years.

   Associate Chief Justice John Rooke called it an “unspeakable, outrageous, cowardly and cold-blooded crime . . . all with the simple motive of robbery.”

   A new federal law allows consecutive parole ineligibility periods in multiple murders instead of the previous maximum of 25 years.

   The death penalty was repealed in 1962 and the judge in this case could have imposed a parole wait of up to 75 years.

   Rooke said Baumgartner showed “absolutely no compassion for life,” and shot the workers in the back of the head and ambushed a fourth guard waiting outside in a truck.

   They were filling a cash machine at the University of Alberta campus in Edmonton.

   Baumgartner pleaded guilty to murdering Brian Ilesic, 35, Eddie Rejano, 39, and Michelle Shegelski, 26, and the attempted murder of Matthew Schuman, 26.

   He was arrested in British Columbia at the Canada-U.S. border carrying $400,000 in cash the next day.

   (For more Canadian news of the week, click "Read More" below)

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Two Canadian warships back in British Columbia for repairs after a collision in the Pacific

   Canada column for Sunday, Sept. 8/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   The Royal Canadian Navy has ordered an inquiry into what caused the collision of two warships in the Pacific.

   Something went “dramatically wrong” during a routine training exercise involving the HMCS Algonquin and HMCS Protecteur, said Commodore Bob Auchterlonie.

   It happened during a towing exercise while en route to Hawaii, with the Algonquin bearing the brunt of the damage.

   It had a large gash in the hangar along the port side while the Protecteur had damage to its front end.

   “There is an inherent risk of ships operating together at sea in close proximity, but this sort of incident I've not come across in my career,” Auchterlonie said.

   There were no injuries among the 300 sailors on board each of the ships that have returned to Canadian Forces Base Esquimalt, near Victoria, for repairs.

   The incident has compromised Canada’s naval readiness on the West Coast as a third ship, the frigate HMCS Winnipeg, was rammed by an American fishing trawler last spring and is still out of service.

(To view more of the Canadian news roundup, click "Read More" below)

Canadian senator resigns and repays $231,649 in "improper" expense claims

   Canada column for Sunday, Sept. 1/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   Mac Harb, one of four senators accused of submitting improper expense claims, has resigned and paid back $231,649 to the Canadian government.

   The veteran Liberal politician refunded all of the living-related expenses in question in a scandal that has reopened a debate of whether to abolish the non-elected Senate.

   “My dispute with the Senate committee on Internal Economy made working effectively in the Senate unrealistic,” he said.

   The Mounties continue to investigate Harb’s expenses concerning compensation paid because he said his main residence was outside the capital region.

   Attorney Paul Champ said an independent audit did not determine that Harb violated any rules but the rules themselves weren’t clear.

   Harb, 59, could have remained in the Senate until age 75 and was earlier a Member of Parliament for 15 years.

   Three other senators named in the inappropriate claims’ audits are also being investigated by the police.

   Mike Duffy has paid back $90,172 while Pamela Wallin has returned $38,369 and must repay another $100,000 for improper travel expenses and Patrick Brazeau has been asked to pay back $48,745.

 (For more Canadian news of the week, click Read More)

Canada's Conservative government presses the reset key by taking a break

   Canada column for Sunday, Aug. 25/13

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canada’s government is taking a time-out as Prime Minister Stephen Harper prepares to lead his Conservative party into the next election.

   Harper said his decision to prorogue, or suspend, the current session of Parliament until mid-October is to prepare a new economy-focused agenda.

   The action effectively ended the parliamentary session and killed legislative bills not yet enacted to await a new direction for governing.

   By pressing the reset button, Harper is buying time to deal with stalled political support after a recent shuffling of Cabinet positions and to prepare for his fifth election campaign as leader.

   In the election, expected in 2015, Harper will face a reinvigorated opposition with new leaders – Justin Trudeau for the Liberals and Thomas Mulcair of the New Democratic Party.

   The break also comes when the government deals with the Senate expense-claim scandal.

   Former Conservative Senator Pamela Wallin, now an Independent and Harper appointee, has been told to pay back $138,970 for ineligible travel expense claims.

   The Mounties are investigating Wallin’s claims and those of senators Patrick Brazeau, Mike Duffy and Mac Harb.

   (For more news of the week from Canada, click "Read more")