BlackBerry signs automotive software deal, Canada Labour Code changes and West Coast pipeline project in focus: Must-read business and investing stories for the week of Sept. 26
Prime Minister Mark Carney rises during Question Period on Parliament Hill on Monday.Adrian Wyld/The Canadian Press
Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis on the biggest headlines, stock tips, personal finance strategies and more.
U.S. not rushing to strike deal with Canada, Washington’s trade envoy says
U.S. Trade Representative Jamieson Greer says there’s no urgency to settle the current trade standoff with Canada.Kylie Cooper/Reuters
The United States isn’t rushing to strike a deal with Canada that would end the trade war because it is still receiving what it needs, U.S. Trade Representative Jamieson Greer said in an interview with CNBC on Friday.
Mr. Greer said there are sporadic conversations with Canada, but stopped short of suggesting there are active negotiations taking place to resolve the dispute.
“We’re still getting what we need from them in terms of oil, gas, potash, all of these things. We’re shipping [agricultural products] back and forth across the border, so there’s still a lot of strong trade between the two countries,” he said. “We’re comfortable with where we are.”
Meanwhile, U.S. President Donald Trump rolled out the red carpet this week to host Chinese President Xi Jinping in Washington by pressing for the world’s two biggest economies to work more closely together to avoid friction as they compete.
Economics of West Coast pipeline in focus ahead of Ottawa major project decision
An oil sands mining facility near Fort McKay, Alta.ED JONES/Getty Images
Ottawa is set to decide on whether to designate a new pipeline from Alberta to the West Coast as a project of national importance. The decision is expected next week, and coincides with a major push by the federal government to diversify exports away from the United States and soothe tensions with Alberta.
If the pipeline gets the designation, giving it a fast track through the regulatory approval process, oil producers would have to consider major new investments to boost production to fill the proposed 1,250-kilometre conduit.
Backers say a new, one-million-barrel-a-day West Coast line would boost Alberta’s ability to get its crude to higher-priced world markets and funnel billions more dollars in royalties into provincial and federal coffers. It would also reduce Canada’s reliance on the U.S. market.
But the plan is contentious, Emma Graney reports. Critics cite potential effects on marine life off the coast and fauna and flora along the route, the risk of an oil spill and broader climate concerns.
Labour code changes will threaten workers’ right to strike, unions warn
Unions and labour experts say the proposed amendments will effectively dilute federal employees’ right to strike by involving a special third-party mediator.Chris Young/The Canadian Press
On Monday, the federal government introduced sweeping legislative changes aimed at speeding up project approvals and limiting supply chain disruptions due to strikes. Part of those changes include additions to the Canada Labour Code to create a new mediation process before Ottawa can intervene to force the resolution of a labour dispute and end a strike or lockout.
“These changes mean the labour minister must meet a higher bar before intervention is possible,” Patty Hajdu, the federal Minister of Jobs and Families, said at a news conference on Monday. “The minister will have to show his or her work and outline why arbitration is necessary.”
The changes are drawing scorn from unions and labour experts. They argue that the minister could, regardless, use the special mediator’s report as a justification to impose the terms of a settlement, undermining the right to strike.
BlackBerry secures $100-million-plus deal for new automotive software, Alloy Kore
Blackberry reported its sixth consecutive profitable quarter on Thursday.MIKE BLAKE/Reuters
BlackBerry Ltd. has secured a US$100-million-plus deal to supply its new Alloy Kore automotive software to Coretura AB, a joint venture between truck-making giants Daimler Truck and Volvo Group. The deal is the first for Alloy Kore and comes before the product’s official market release later this year.
It is one of the largest design wins for the Ottawa-based QNX division, which develops software for systems in vehicles, robotics and medical devices. It was acquired by BlackBerry 16 years ago from car stereo maker Harman International.
BlackBerry also reported stronger-than-expected second-quarter results Thursday and increased its financial forecasts for the second time this year. The Waterloo, Ont.-based company said it generated US$163-million in revenue in the quarter that ended Aug. 31, an increase of 26 per cent from the same period a year ago, driven by an increase in sales from its QNX unit.
Canada’s tax system needs an overhaul
Illustration by Dakota McFadzean
Canada hasn’t gone through a comprehensive review of its tax system in roughly 60 years. The Income Tax Act now runs at more than 3,300 pages, a tangle of measures that’s ensnaring taxpayers and contributing to Canada’s ho-hum productivity growth, which hurts economic growth and wages, critics say.
What the tax system needs isn’t a tune-up but an entire engine redesign, experts argue.
That’s why The Globe and Mail has launched a special series about what comprehensive tax reform should look like called “Tax and Effect.” We asked business leaders and economists for their suggested fixes. We heard about assigning an expiration date to every tax break, trimming tax relief for seniors, and allowing provinces to raise tax to build local infrastructure, among many other recommendations.
Another idea that’s been gaining traction among tax experts: cut personal income taxes across the board and raise sales taxes instead. Some say it could be a crucial move – but massively unpopular if done wrong.
Plus, where do your taxes go? This interactive calculator lets you see how governments are spending your money.
Have a question about Canada’s tax system? On Sept. 29 at 11 a.m. ET, personal economics reporter Erica Alini and editorials editor Patrick Brethour will be answering reader questions. Submit your questions in the box below, or send an e-mail to audience@globeandmail.com.
Prepare for the week ahead with The Globe’s investing calendar.
