Category: Economic

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Alberta Canada Economic Ft Mac Health

Should There be a Moratorium on New Oilsands Projects? One Group Says Yes!

oilsands projects, moratorium

A group of scientists and academics have jumped on board calls for a moratorium on new oilsands projects until carbon emissions are brought under control. A letter has been sent by the group that argues any new projects in the oilsands area should not be allowed to move forward until plans are in place to ensure that carbon emissions will be curtailed and that wildlife, human health, and treaty rights are protected. According to one part of the letter “Decisions about the development of the vast oil sands deposits in Alberta and elsewhere in North America are among the biggest we face as Canadians and Americans.” Over 100 scientists from several countries signed the letter, including those from Canada, the USA, the U.K., and Australia.

In the letter requesting a moratorium on new oilsands projects unless certain steps are taken there are 10 reasons listed that justify taking this step. Five of the scientists who signed the letter are Order of Canada members. The letter is also critical of the reclamation pace for the industry, the management of pollution, and even the track record the industry has when it comes to consulting with aboriginal groups who may be impacted by a project. In the letter the current monitoring plans and programs are touched on, but the signers believe that current programs and measures are seldom enforced and inadequate. Some of the more well known signers of the letter include University of Alberta biologist Suzanne Bayley, Canada research chair holder in climate change Shawn Marshall, and University of Alberta researcher David Schindler.

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Economic Ft Mac Politics

Enbridge Ads Nixed by Tim Hortons

Tim Hortons, Enbridge ads

Tim Hortons has pulled Enbridge ads which were scheduled to run on the internal television system for the coffee chain. This decision has some Canadians and Fort MacMurray residents fuming. The ads would have been displayed so that customers in line to order and those eating at the coffee shop could see the advertisements. SumOfUs, a group against energy companies, launched a petition to demand that the Enbridge ads be canceled. The group also accused Tim Hortons of being a shill for the Calgary based company. A Tim Hortons spokesperson was not available to comment on the ad cancellation. A franchise representative was responsive to some Twitter users though, and the spokesperson said that all the feedback received is valuable. The spokesperson also confirmed that the Enbridge ads would no longer be displayed on Tims TV.

Many are upset that Tim Hortons pulled the Enbridge ads though, reminding the public that the region depends on the energy companies because this industry plays a vital economic role. Keyano College student Riley Maclean, whose father works for Enbridge, intends to get his coffee from MacDonalds or another local coffee shop instead. Maclean said “In reality it doesn’t make a difference but I suppose at the end of the day the customer has to send a message if they’re not happy with what’s happening.” Brian Jean also had strong words, saying “Energy companies fuel our economy, provide jobs, and adhere to strict environmental standards.” Others felt differently. Contractor Tyler Weaver, who had dealt with the energy company before, said “No one watches the ads and Enbridge is worth billions and billions of dollars. Who cares?”

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Economic

Bank of Canada says risk to financial stability is slightly higher, but system is more resilient

Available as: PDF

The overall risk to financial stability in Canada has risen in the face of lower oil prices, but the resilience of the system continues to improve, the Bank of Canada said today as it released its biannualFinancial System Review (FSR).

The FSR is intended to raise awareness of the key vulnerabilities, possible triggers and risks to the financial system. The Bank’s assessment is that there is a low probability that the risks identified in the FSR will materialize. Policies and regulations are in place to promote the strength and soundness of the Canadian financial system.

Elevated household indebtedness remains an important vulnerability in the financial system, as it was at the time of the December FSR. Imbalances in the housing market, which are closely related to the state of household finances, are another key concern highlighted in the report.

“We judge that the vulnerability associated with household indebtedness is edging higher, and the overall risk to financial stability in Canada is slightly higher than it was at the time of our December FSR,” said Governor Stephen S. Poloz.

The vulnerabilities described in the FSR could amplify and propagate shocks throughout the system if an event were to trigger any of the four major risks to financial stability. The most important domestic risk is a broad-based decline in employment and incomes that would significantly reduce the ability of households to service their debt, leading to a widespread correction in house prices.

The oil price shock has increased the risk to financial stability, the FSR states, by delaying improvements to incomes and economic growth and impacting the housing markets of oil-producing regions. However, the decline in oil prices alone is unlikely to trigger a material risk to the system as a whole. The Bank continues to expect the imbalances in the household sector and housing market to ease as the economy improves.

The other key risks identified in the FSR are sharply higher long-term interest rates, globally and in Canada; stress emanating from China and other emerging-market economies; and financial stress from the euro area.

Governor Poloz said significant reforms under way in the global and domestic financial systems are designed to reduce the likelihood and impact of future turmoil. “There is no question the global financial system is now more resilient, thanks to these reforms,” he said. “So, while risks may have edged higher, safeguards to protect the financial system are stronger than they were before.”

The June 2015 FSR includes two reports summarizing recent work by Bank of Canada staff on specific financial sector policies:

Assessing Vulnerabilities in the Canadian Financial System, and
Canadian Open-End Mutual Funds: An Assessment of Potential Vulnerabilities.

Source:: http://www.bankofcanada.ca/2015/06/press-release-fsr-110615/

      

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Alberta Economic Ft Mac

Restructuring Attempts at Ivanhoe Energy Fail

Ivanhoe Energy, restructuring

The latest reports show that the restructuring attempts at Ivanhoe Energy have failed, and the company has announced the fact that the creditor restructuring talks were not successful and the business is bankrupt. The failed attempt was first reported last week, and the small company in the oilsands region stated that it has worked diligently since a notice was first filed in February. All of the parties involved were not able to agree to a viable restructuring proposal. The court appointed trustee for Ivanhoe Energy is Ernst & Young. The first deadline given for an agreement to be reached was April 21, but this was extended until May 29 in the hopes that everyone could come together and agree on a proposal. This did not happen though.

A spokesperson for Ivanhoe Energy could not be reached for comment about the failure of the restructuring talks. A statement was released last week that read in part “As the efforts by the company and the Proposal Trustee to reach a viable restructuring proposal have not been successful, by operation of the law under the BIA, the company was deemed bankrupt as of 11:59pm MDT on June 1, 2015.” Last year the company issued warnings that a project involving 20,000 barrels a day was being reconsidered because there was a revelatory dispute between the company and the Alberta Energy Regulator. Ivanhoe Energy company shares were delisted by Nasdaq and the Toronto Stock Exchange in February. Now the business is bankrupt, and it is too soon to tell what will happen next.

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Economic Ft Mac

Cutbacks at Keyano College Will Affect Programs and Staff

Keyano College, cutbacks

Keyano College has been forced to cut staffing levels and programs due to the current financial situation, and a dozen academic programs and 18 staff will be cut in order to reduce costs. The programs involved will be suspended, and some may be permanently terminated. The budget issues would also cause 18 staff members to be laid off. Keyano academic vice president Catherine Koch explained “There was no choice in making these decisions. There really wasn’t. These decisions had to be made in order for us to have a budget ready.” Koch discussed provincial regulations which require that the college has a balanced annual budget. Revenue has not kept up with expenses recently, and future expenses that include raises in new collective bargaining agreements have made the cutbacks necessary.

The cutbacks at Keyano College are necessary, and they are another sign that financial difficulty has hit the area hard. Koch explained that tuition and provincial government revenues were not sufficient to fund all of the operational costs for the college so offsets had to be found. “Because (companies) are not spending money on professional development, our training revenues are down. The other revenues that we get through corporate training, and exam fees and things like that, they have fallen off significantly.” Student association president Diana Cretu “Looking at the bigger picture, and looking at potential international student tuition increases, or even mandatory non-instructional fee increases, something needed to be done. The decision to suspend low-enrollment programs comes as a better alternative for our students.”

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Alberta Economic Ft Mac Health

Should Food Subsidy be Available to Fort Chipewyan?

Fort Chipewyan, food subsidy

Should Fort Chipewyan be eligible for a food subsidy? NDP MP Dennis Bevington believes that the community should be eligible for a food subsidy program, and is working to get Fort Chipewyan included. Bevington said “I know from personal experience, people in Fort Chipewyan will take the time to drive all the way to Fort Smith in order to get a load of groceries. That’s a good three-hour drive.” It is no secret that residents in the community often struggle with high food prices, and there is no permanent road access. Both of these factors are qualifying criteria for the food subsidy program. Bevinton resides in Fort Smith, more than 225 kilometres north, but the NDP MP has visited Fort Chipewyan many times, and he has seen the effect of high food prices on the local community.

If Fort Chipewyan becomes eligible for the food subsidy program this would allow local food suppliers and retailers to offset food transportation costs by the receipt of public funds. The goal is to have the subsidy pass down to consumers, who will see lower food prices as a result. Bevington said “We’re after fairness in the system. If they’re entitled to some assistance in that pricing, then they should get it.” Fort McMurray-Cold Lake Liberal candidate Kyle Harrietha said “It’s not a $24 tomato…But the higher priced foods, particularly perishable items, lead to people making different choices than they would in Fort McMurray. Often times, it’s less healthy choices just because of the lack of availability. Any small or medium thing that we can do, including encouraging nutrition and making available more nutritious foods, is a good thing.”