Day One | April 22, 2024
Ottawa
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Budget 2024 tries to sell youth a more affordable life with billions in spending
The Liberal government introduced a federal budget focused on young Canadians, aiming to address various issues such as housing affordability and costly concert ticket fees. Despite a stronger-than-expected economy, the $57 billion spending plan includes new taxes targeting the wealthiest individuals. Measures to boost housing supply and accessibility are central, with plans to build more homes and support first-time homebuyers. Additionally, proposals to crack down on fraudulent ticket sellers and improve student financial aid were highlighted. Changes to capital gains taxes are also outlined, expected to generate additional tax revenue over the next six years. However, concerns persist about the impact on business investment and inflation. Opposition parties criticized the budget's spending, with the Conservatives labeling it as wasteful and the NDP expressing reservations.
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Federal budget hikes capital-gains tax on companies and wealthy individuals
The federal government is increasing capital gains taxes for wealthier individuals and businesses to generate revenue for housing and other initiatives. The change raises the inclusion rate on capital gains, affecting both businesses and individuals with gains over $250,000. While the government sees this as addressing inequality, economists warn it could deter investment. Entrepreneurs may benefit from exemptions, but concerns arise over the broader impact, including potential effects on real estate sales and housing affordability. The change is expected to prompt asset sales before implementation in June, with a surge in tax revenue followed by a decline in subsequent years.
After 5 years, Budget 2024 lays out promised small business carbon rebate
The federal government is set to return over $2.5 billion collected through the carbon price's fuel charge to small businesses , fulfilling a commitment made in 2019. Named the Canada Carbon Rebate for Small Businesses, this plan involves direct payments to eligible businesses, described as a "refundable tax credit." Around 600,000 businesses with fewer than 500 employees will benefit. Despite this move, doubts remain about whether this will significantly lower prices amid ongoing cost-of-living concerns. The refund process will require businesses to file their 2023-24 taxes by July 15, 2024. Additionally, the government plans to implement other climate-related measures, including the Clean Electricity Tax Credit, aiming for a net-zero electricity grid by 2035. There's also focus on home heating affordability, with funding earmarked for energy-efficient retrofits and modernizing energy efficiency programs.
Premiers say Ottawa should have consulted with them more before tabling 2024 budget
In a letter released by the Council of the Federation , Canada's 13 provincial and territorial premiers criticized the federal government for inadequate consultation before presenting the 2024 budget. They expressed concerns about the impact of new federal initiatives on provincial budgets, noting limited outreach beforehand. The premiers fear the cost of these programs could burden taxpayers and emphasized the importance of respecting provincial jurisdiction. While acknowledging positive aspects, such as increased defense spending, they stressed the need for collaborative governance to ensure effective implementation of policies.
Poilievre won't commit to keeping new social programs like pharmacare
On Thursday, Conservative Leader Pierre Poilievre criticized the government's budget, questioning the feasibility of proposed programs such as pharmacare and dental care. He accused the government of spreading misinformation about these programs and expressed doubts about their effectiveness. Poilievre also raised concerns about the budget's deficit projection and debt management. In response, Finance Minister Chrystia Freeland defended the budget as a way to tackle housing affordability and fairness, accusing Poilievre of favoring the wealthy over initiatives benefiting younger generations.
NDP leader not saying if ‘fair’ carbon price includes levy on gasoline
Federal NDP Leader Jagmeet Singh avoided directly addressing whether his party's climate policy would include a carbon price on gasoline, emphasizing the need for fairness in such measures. Singh highlighted concerns about the current plan's impact on working-class individuals and suggested that the NDP's stance on fighting climate change remains consistent. However, the specifics of their proposed plan were not clarified despite repeated inquiries from reporters. The NDP's recent voting behavior, including support for a Conservative motion regarding carbon pricing, indicates some divergence from the Liberal government's approach. Singh criticized the reliance on market mechanisms like carbon pricing, citing broader affordability challenges exacerbated by climate-related issues. Prime Minister Trudeau acknowledged the NDP's political challenges in the ongoing carbon price debate. The NDP's climate plan is said to prioritize fairness for workers, accountability for major polluters, and emissions reduction, though detailed proposals are yet to be unveiled.
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Alberta
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Alberta Companies Hesitant Over Federal Capital Gains Tax Hike, Yet Welcoming of New Initiatives
Alberta stakeholders are concerned that the federal government's increase to the capital gains tax announced in the 2024 budget will deter investment from the province. The capital gains inclusion rate for individuals on gains above $250,000, and for all gains for corporations and trusts, will rise to 66% from 50%. The government views the tax increase as a significant revenue source, projecting $19.4 billion over four years. Despite these concerns, stakeholders highlighted some positive news from the budget, including the entrepreneur’s incentive, the inclusion of oil and gas eligibility in the Indigenous Loan Guarantee Program, and the carbon tax refund for small and medium sized businesses.
What You Need to Know
Alberta has finalized the largest water-sharing agreements in the province’s history, focusing on major water users in the Red Deer River, Bow River, and Oldman River sub-basins of the South Saskatchewan River Basin. These agreements, involving municipalities and irrigation districts, aim to reduce water consumption by 5-10% for anticipated summer 2024 demands. Despite proactive steps, concerns about severe drought persist due to a semi-arid climate and subpar snowpack levels. The agreements are designed to adjust in real time, ensuring adaptability in response to fluctuating water availability, while also seeking to preserve environmental sustainability amidst growing water scarcity challenges.
The Alberta government is rebranding its default electricity rate, known as the Regulated Rate Option (RRO), to the "Rate of Last Resort" (RLR) to better reflect its variable nature and encourage consumers to choose potentially more affordable options from retail providers. Nearly 30% of Albertans are on this floating contract, which changes monthly and can range from affordable to extremely costly throughout the year. The change is part of efforts to prevent consumer confusion and financial hardship due to fluctuating electricity bills. Despite these intentions, opposition leader Rachel Notley criticized the move, arguing it could increase rates and adversely affect the most vulnerable Albertans, while doing little to protect against the kind of price spikes seen throughout summer 2023.
The City of Calgary is holding a public hearing to debate a significant rezoning proposal that could increase housing density in established communities. About 650 residents are expected to voice their opinions on amending zoning regulations to allow for a variety of housing types such as duplexes and row houses in older neighborhoods currently zoned for single-family homes. The contentious proposal aims to address the housing affordability crisis, as one-fifth of Calgary households struggle with housing costs. However, the move has sparked division, with supporters citing faster development and increased affordability, while opponents raise concerns over community character and strain on existing infrastructure.
Hundreds attended public meetings hosted by the Canada Pension Plan Investment Board (CPPIB) in Edmonton and Calgary to discuss the current state of the national retirement plan amidst Alberta's consideration of establishing its own provincial pension plan. The CPPIB described the Canada Pension Plan as sustainable for at least 75 years and addressed concerns over government involvement, stating that CPP assets are insulated from political interference. Citizens expressed mixed reactions, with some advocating for the CPP's continued operation without changes, while others expressed skepticism and sought assurances regarding the potential benefits of a provincial alternative. The discussion comes as Alberta awaits an actuarial report to determine the amount the province would receive if it withdrew from the CPP.
The Alberta government has almost completed an agreement for a revised compensation model for family doctors, aimed at attracting and retaining physicians. This effort follows Premier Danielle Smith's commitment to ensure every Albertan has a primary health provider by 2027. However, concerns have been raised by the Alberta Medical Association around ensuring doctors with a smaller number of patients are included, fearing they might be compelled to stop offering comprehensive care if overlooked in the compensation model. The framework details, including specific rates and incentives to encourage doctors to expand their number of patients, are still under discussion, with a rate review committee expected to finalize recommendations in the fall.
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Atlantic Canada
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Atlantic Premiers push for carbon tax rebates for region’s SMEs
Atlantic Premiers have written to Deputy Premier and Minister of Finance Chrystia Freeland and Small Business Minister Rechie Valdez to express their concerns with the federal government’s approach to managing carbon tax rebates for small and medium-sized enterprises (SMEs), urging a one-time payment to support entrepreneurs. According to the Canadian Federation of Independent Business, more than $70 million in stalled rebates is owed to SMEs in the four Atlantic provinces. While the federal government says it is working to return the funds, no deadline has been given for when businesses will begin receiving their payments.
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N.S. Justice Minister resigns following domestic violence comments
Nova Scotia Justice Minister Brad Johns resigned Friday evening, after suggesting that violence against women is not an epidemic, contradicting the Mass Casualty Commission’s final report on the fourth anniversary of the province’s most deadly mass shooting. Johns, a two term MLA, and former municipal councillor had issued a written apology on Thursday and reached out to several shelters across the province, but Opposition Leaders and others had called for his resignation Environment Minister Tim Halman has assumed responsibility for the justice portfolio until a permanent replacement is named.
N.B. Environment Minister Gary Crossman resigns, will not re-offer
Three-term PC MLA Gary Crossman has resigned from Premier Higgs’ cabinet saying in a statement his “personal and political beliefs no longer align in many ways with the direction of our party and government.” Crossman, who’d previously signaled he wouldn’t re-offer in the next provincial election, also plan to step down as an MLA in the coming days. Faytene Grasseschi, an activist, Christian television host and vocal supporter of Policy 713, was acclaimed in December as the PC candidate in the riding of Hampton-Fundy-St. Martins.
New Brunswick housing crisis
The severity of N.B.’s housing crisis has been in the news this week, as the New Brunswick Apartment Owners Association warns about a probable hike in the cost of rent over next year, as landlords pass on fees from a large jump in property taxes on their buildings. As of 2025, old legislation capping the annual increase in property value estimations on which taxes are based will expire, resulting in an estimated 23% spike in property tax fees. N.B. Premier Blaine Higgs discussed the province’s housing crisis in his response to the federal budget release this week, stating that the root cause of the crisis is record immigration levels, beyond growth that the province can sustain. Higgs’ comments sparked backlash from advocates, who suggested that his comments contradicted to previous positive messaging about growth from his government, and that weak rental protections and landlord profiteering are the real issues that must be addressed. In a step to help improve access to housing for the province’s most vulnerable populations, Minister Jill Green has announced that the New Brunswick Housing Corporation will be building 120 supportive housing units to help unhoused people transition back into traditional housing.
Newfoundland and Labrador announces more measures to help child-care providers
The N.L. government is increasing funding available to child care providers, providing an additional $30 a day per space for infant care spaces offered by providers participating in the province's operating grant program; this increase brings that total funding provided by the province to $101 per infant per day. The need for more infant spaces was realized during a review of N.L.’s operating grant program. Other findings that could be addressed are the continuation of two paid leave days for professional development for child-care providers and expanding the number of statutory holidays a provider can receive funding.
Federal budget helps maintain transportation costs throughout Atlantic Canada
Through the federal budget, Ottawa is funding an extension of the freeze on Confederation Bridge tolls through to the end of 2026. It will also freeze the cost of the Wood Island Ferry between P.E.I. and N.S., and contribute $2.5 million to the Ferry Services Contribution Program, which covers ferry service to and from New Brunswick, Nova Scotia, Prince Edward Island, and Eastern Quebec, holding those fares until the end of 2025.
Federal international student study permit allotment doubles in Nova Scotia
Less than a month after announcing how the Houston government would allocate its 12,900 international student study permits between post-secondary institutions, Advanced Education Minister Brian Wong says Nova Scotia has received an additional 7,000 in line with previous years. Colleges and universities have until the end of the month to submit a business case if they would like an additional allocation. However, students face steep costs according to new Statistics Canada data, which found that graduates holding bachelor's degrees from Nova Scotia accumulated an average of $39,100 in student debt — the second-highest out of all provinces.
2,960 patients impacted by Nova Scotia Health privacy breach
A Nova Scotia Health employee has been fired after 2,690 patients had their personal information ‘inappropriately accessed’ at a hospital in Antigonish. According to the health authority , registration, demographic and clinical information was accessed and the matter was referred to the Privacy Commissioner and the RCMP which are currently investigating. Those impacted will be notified.
Nova Scotia Teachers Union reaches tentative agreement with province
A week after Nova Scotia Teachers Union members voted overwhelmingly in favour of a strike mandate, agreement in principle has been reached on a new collective agreement with the province. In an interview, Union president Ryan Lutes said the agreement includes ‘improvements related to workload, classroom conditions and compensation,’ and credited Premier Houston’s direct involvement in moving negotiations forward.
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Crab season begins in N.L., warps up in P.E.I.
With the help of N.L. Premier Andrew Furey, the Fish, Food and Allied Workers Union and the Association of Seafood Producers were able to set a pricing deal early last week, allowing N.L.’s crab fishing season to commence. The deal set the price for the crab fishery at $3.00 per pound, 15 per cent higher than the $2.60 per pound chosen by a government-appointed price-setting panel on April 1. Protests over the previous price had delayed the start of the season by several weeks and caused postponement of the provincial budget release. Meanwhile, P.E.I.’s snow crab season has already wrapped up after an early start. Harvesters were able to catch good yields, and are expecting better prices than last year.
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British Columbia
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B.C. Transfers Ownership Title of Haida Gwaii to Haida Nation in Historic Agreement
The B.C. government and the Council of the Haida Nation have finalized an agreement that officially acknowledges the Aboriginal title of Haida Gwaii, concluding a legal battle initiated over twenty years ago . The deal, termed as a "foundational step" by Indigenous Relations and Reconciliation Minister Murray Rankin, signifies a chosen path of creativity and courage over litigation, ensuring clarity without affecting private properties or existing jurisdictions. Council President Jason Alsop emphasized the agreement's recognition of the Haida's longstanding ties to the land, countering past denials and asserting Haida Gwaii as inherently Haida. The "Rising Tide" agreement, praised by Premier David Eby as groundbreaking, marks a new method of acknowledging Aboriginal title, set to be introduced into legislation as a first in Canada.
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Ivanhoe Cambridge, the owner of Burnaby's Metrotown mall, has unveiled a proposal to build 15 highrise towers on its 35-acre site by 2054, potentially housing 20,000 people in 12,000 units, with 2,000 of these units being affordable rentals as part of the City of Burnaby’s inclusionary rental program. This development would mark the first residential towers built directly on the Metropolis at Metrotown site, with construction spread over seven distinct parcels around the mall. The master plan is still under discussion with the city, and public feedback is being solicited through a new engagement website. The final phase of the redevelopment will address the mall itself post-2054, coinciding with the expiry of leases for significant anchor tenants.
The construction sector in British Columbia is facing significant challenges due to a persistent shortage of workers and ongoing issues with late payments. Industry representatives are calling for government support to address these problems, which are affecting the timely completion of projects and the financial stability of construction firms. The worker shortage is particularly severe, with many companies struggling to find enough skilled labor to meet project demands. Late payments are exacerbating the situation, causing cash flow problems for businesses that are already dealing with the increased costs and delays associated with the labor deficit.
Pro-Palestinian demonstrators orchestrated a blockade at Metro Vancouver's major port terminal, Deltaport, halting operations and container truck access for several hours. Waving Palestinian flags and chanting slogans, the protesters demanded Canadian entities, including terminal operator GCT Canada, cease business with Israel. Although the disruption was significant during the blockade, experts from Simon Fraser University and the Sauder School of Business at UBC suggested that such blockades have limited impact unless they are prolonged. The coordinated protest was part of a global effort to impact economies at major choke points, with similar actions taking place, including one in Chicago at O’Hare International Airport.
After three decades in provincial politics, B.C. MLA Mike de Jong has announced his intention to seek the Conservative Party nomination for the federal riding of Abbotsford-South Langley. His move to federal politics follows a decision not to run for re-election in the provincial sphere this October. De Jong has criticized Prime Minister Justin Trudeau’s fiscal policies and expressed his support for Conservative leader Pierre Poilievre’s commitment to fiscal responsibility. Having held various ministerial roles in B.C. and first elected as an MLA in 1994, de Jong has a long-standing political career, including a recent endorsement of Poilievre's leadership bid within the Conservative Party.
The recent federal budget draws heavily from B.C. Premier David Eby's housing initiatives, particularly mirroring his strategies on affordable housing and land use. A new Canada Rental Protection Fund reflects Eby's own $500 million fund, aiming to secure rental units for affordability. Similarly, the federal Canada Builds program, targeting underutilized federal land for new housing, echoes Eby's B.C. Builds plan, which utilizes public land for constructing affordable units. Federal ministers acknowledge the influence of B.C.'s aggressive housing policies, while urban planning experts suggest B.C. may benefit from "first mover advantage" in receiving federal housing support.
New short-term rental regulations are set to take effect in British Columbia on May 1, 2024, aiming to address the housing crisis by converting short-term rentals into long-term housing. Premier David Eby emphasized that the rules target speculators operating "mini hotels" and will limit short-term rentals to the host's principal residence and one additional unit in areas with populations over 10,000. Data from AirDNA and McGill University highlighted the significant impact of short-term rentals on the housing market, showing that over 19,000 homes are used predominantly for short-term rentals, with the top 10% of hosts earning nearly half of all revenue. The enforcement of these rules includes a compliance unit, potential monetary penalties for non-compliance, and requirements for hosts to display business licenses and platforms to share data with the province.
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Ontario
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Ontario is introducing a new legislation under The Support Children's Futures Act, 2024
The Ontario government has introduced the legislation to further improve the safety, well-being, and privacy of children and youth in care and out-of-home care settings. The Supporting Children’s Futures Act, 2024, will strengthen oversight of foster care and group homes, enhance privacy protections, increase visitation frequency by children's aid societies, expand information requirements for those working with vulnerable children, and ensure awareness of the Ombudsman's office. These changes build on ongoing efforts to improve child and family services, including the Ready, Set, Go program launched in April 2023, which supports youth in the child welfare system with life skills and education opportunities.
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Ontario is investing $1 billion in refurbishing Hydroelectric Stations in Niagara
Minister Todd Smith announced that the infrastructure program, valued at $1 billion, will be in-partnership with Ontario Power Generation and GE Vernoa. The project will span over 15 years and is expected to create 200 skilled jobs. Once completed, it will secure up to 1,700 megawatts (MW) of clean electricity, which is enough to power 1.7 million homes.
Ontario is investing $7.3 million in Milton for skilled training jobs
Ontario is investing $6.4 million to connect primary care teams in the London area
Ontario will use the funding to connect over 23,000 people to primary care teams in the London area, Lambton, and Chatham-Kent . This initiative aligns with Ontario’s goal of connecting 328,000 people to primary care teams.
Ontario has announced additional emergency preparedness funding for municipalities
President of the Treasury Board, Caroline Mulroney, has announced that the government is investing an additional $5 million in communities across the province to assist them in preparing for and responding to emergencies. This funding is being provided through the Community Preparedness Grant.
Ontario is expanding GO Train service across the Greater Toronto Area
Premier Ford announced that the Ontario government is proceeding with adding more than 300 trips per week on the Milton , Lakeshore West, Lakeshore East, Kitchener, and Stouffville lines. This expansion represents a 15 percent increase in weekly trips.
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Toronto
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Councillors Vote to Keep Vacant Home Tax Despite 'Complete Mess', Amid Staff Departures and Reversed Charges
Last week, councillors deliberated on a proposal to eliminate the Vacant Home Tax, which was ultimately rejected by a vote of 5-18 . Instead, they opted to endorse a report from city staff, which thoroughly review and redesign the Vacant Home Tax program for the upcoming year. Toronto Mayor Olivia Chow has openly acknowledged significant flaws in how the city's vacant home tax has been implemented, labeling it a "complete mess." She pointed out that at least one staff member involved in designing the program is no longer with the city. Despite these shortcomings, Chow stressed the tax's importance in tackling the housing shortage crisis by discouraging speculation and increasing housing availability.
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Mayor Chow Wecolmes Housing Investments in Federal Budget, Presses for Subway Car Funding
Toronto Mayor Olivia Chow expressed appreciation for the federal government's housing-focused budget , investments in modular housing and unlocking federal properties for new homes, including in Toronto's Arbo neighborhood. She welcomed initiatives addressing homelessness and asylum processes, noting funding renewals for housing assistance programs for asylum claimants. However, Chow expressed disappointment at the lack of funding for new TTC Line 2 subway cars, stressing ongoing negotiations with Ottawa for replacements. Federal support for Toronto also includes cultural initiatives, repairs to the Toronto Harbourfront Centre, and bolstering the Canadian Security Intelligence Service (CSIS) presence in the city.
Toronto Councillors Push for Overhaul of TDSB Land Sale Rules to Address Housing Crisis
Mayor Olivia Chow's executive committee are urging the provincial government to revise rules for surplus land sales by the Toronto District School Board (TDSB), citing obstacles to public projects, especially housing, due to fair market value requirements. Chow supports repurposing surplus land for housing and community spaces, while TDSB Chair Rachel Chernos Lin notes the need for land sales to fund infrastructure amidst deficits. Former TDSB Chair Bruce Davis proposes using surplus land for affordable housing, especially for education workers. The provincial government emphasizes joint-use projects but insists on fair market values for land sales.
Toronto City Council Approves Increased Parking Fines in Bid to Promote Safety and Reduce Congestion
The Toronto city council approved increases in fines for 125 parking offenses, effective August 1st. This decision followed Coun. Jennifer McKelvie's motion, passed 20 to 1, directing city staff to review parking penalty amounts every five years. McKelvie's motion adjusted fine amounts for safety violations and less egregious offenses, such as parking in a bike lane ($200 fine, up from $150) and failing to pay at a parking machine ($50 fine, up from $30). McKelvie stressed promoting parking regulation adherence for safety and congestion reduction, balancing impacts on businesses during pandemic recovery.
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