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What's fuelling the opposition to Northern Gateway and Keystone pipelines?

Written By Unknown on Selasa, 29 April 2014 | 22.39

High-stakes oil pipeline projects have taken a public lashing lately, whether in a plebiscite in British Columbia, more protests in Washington, D.C., or from a former U.S. president and several Nobel laureates coming out strongly against billion-dollar plans to move the diluted  bitumen from Alberta's oil sands to international markets.

The anti-pipeline pressure has been mounting for a while, but observers say that the ramped-up opposition to the Northern Gateway and Keystone XL proposals is no coincidence.

Rather, the turmoil is a result of a confluence of issues ranging from deep-seated environmentalism and concern about climate change to the aggressive tactics of energy companies and governments that want to see the pipes in the ground sooner than later.

Toss in some politics — midterm elections in the U.S. this fall, and anticipation of the federal decision on Enbridge's $5.5-billion Northern Gateway project within a few weeks — and conditions have become ripe for ever more public push-back.

"I certainly don't see any chance of the opposition receding," says Michael Byers, a political science professor at the University of British Columbia who holds a Canada Research Chair in global politics and international law.

On the West Coast, in particular, he says, the roots of protest run deep.

In the psyche

"People in the rest of Canada need to understand the environmental movement was born in British Columbia, and it has a deep history here and is very wide-reaching," says Byers.

"It's almost part of the collective psyche here on the West Coast and that's something that Enbridge clearly did not understand, and that the Harper government at least for its first four or five years did not understand.

"And when you add that to the unextinguished aboriginal rights, and the lack of appropriate consultation that took place, you have almost a perfect storm for opposition to pipelines."

hi-bc-archive-john-carruthers-northern-gateway

Northern Gateway Pipelines president John Carruthers listens during the Northern Gateway hearings in Prince Rupert in December 2012. (Jonathan Hayward/Canadian Press)

In Kitimat, B.C., the coastal community that would serve as the endpoint of Northern Gateway, and the place where supertankers would fill up with Alberta bitumen, residents recently voted "No" to the project.

The plebiscite isn't binding on anyone, but it sent a signal, and left Enbridge with another reminder it might have done things differently in the early days of the project.

"Something we've certainly learned is that we definitely needed an earlier, stronger presence on the ground," says John Carruthers, president of Northern Gateway Pipelines.

"We have had an office in Kitimat since 2008, but I think the key is you have to be there early and you have to be there often to work with people and build trust and provide information about what we are doing to address the concerns."

Changing the route

Carruthers says the company has won support in instances where it has sat down, talked with people and come up with solutions for particular issues such as river crossings.

"We made a number of changes to the route based on public input."

Responding to concerns from aboriginal groups, Enbridge revised 24 crossings, including for the Pembina, Athabasca, Smoky and Murray rivers, according to the joint panel review for the project.

Northern Gateway Vote

Enbridge's Northern Gateway Project would bring diluted bitumen from Alberta to the deepwater port in Kitimat, B.C., where it would be loaded on supertankers and shipped to Asia. (Darryl Dyck/Canadian Press)

Carruthers says that between 2009 and 2013, there were "tens of thousands of exchanges with stakeholders through face-to-face meetings, coffee chats, presentations, public forums, technical meetings, community meetings, Community Advisory Boards, blogs, social media sites, receptions, community investment events, emails, telephone calls, letters, advertisements and website postings."

Enbridge's approach to working with communities is an "evolving process,"  he says. "It doesn't stop with the plebiscite. It doesn't stop with the joint review panel recommendation, or even the decision by the federal government.

"It's ongoing, so there will be continued consultation, discussions, all the way through the process."

However, Byers says there was a lack of serious consultation by Enbridge with the coastal First Nations in the early going, and that "is a mistake that both Enbridge and the Harper government must rue to this day. Essentially that failure to take aboriginal rights seriously in those early years I think created a situation today where the project cannot proceed."

He sees "more sensitivity" being shown around discussions of Kinder Morgan's Trans Mountain project to expand capacity of an existing pipeline running from Alberta through the Fraser Valley to Burnaby, B.C.

"Kinder Morgan has made a significant public outreach effort. The Harper government has not weighed in with the same degree of passion and divisiveness that it did on Northern Gateway."

Another Exxon Valdez?

As Byers sees it, the big issue of climate change figures prominently in this debate, particularly for environmentalists. "But for the person on the street, the concern is about a repeat of the Exxon Valdez." 

"That oil spell happened just north of Kitimat on the southwestern coast of Alaska and people here look at the fact that oil continues to be found along the Alaskan coastline from that spill more than two decades later."

For his part, Byers sees some distinction between the kind of opposition that these pipeline projects in B.C. have garnered with that exerted on TransCanada's $7.6-billion US Keystone XL project, which would pipe Alberta bitumen to the Texan Gulf Coast. "With Keystone XL, the debate is mostly about climate."

A presidential decision on Keystone XL has been delayed again, and won't likely come until after the Nov. 4 midterm elections, which some are seeing as a win for its opponents.

For environmental groups that want fossil fuel production to stop, "slowing down crude infrastructure is actually one of the politically easiest targets," says James Coleman, an assistant professor in the University of Calgary's faculty of law and Haskayne School of Business.

Coleman sees a "dramatic" increase in the push-back against pipelines, something he attributes to several factors, including increased pressure for climate regulation, along with a desire for increased to "takeaway capacity" from Alberta because of the increased production there.

Times change

"People sometimes forget Keystone XL is just the second part. There was an original Keystone pipeline that was approved in the U.S. in 2008 and was defended by President [Barack] Obama's administration," says Coleman.

"But the dramatic thing is that pipeline was approved with no consideration at all of the climate effects of increased oil production."

KXL Protests 20140422

Native Americans, farmers, ranchers and cowboys rally to protest against the Keystone XL pipeline in Washington on Tuesday, April 22, 2014. (Alex Panetta/Canadian Press)

Now, a few years later, he notes, there's a section of the U.S. environmental impact statement on Keystone XL devoted to the greenhouse gas output of increased oilsands production, and President Barack Obama says the key factor determining the project's fate is whether it's going to increase greenhouse gas emissions because of increased oilsands production.

"It's all about climate change. It's not the pipe itself," says Richard Dixon, executive director of  the centre for applied business research in energy and the environment at the University of Alberta in Edmonton.

"The issue is what's going through the pipe," he says, and how that has become a symbol of dealing with climate change.

"It's not about the amount of emissions. I mean, we're one-10th of one per cent of world emissions. It's negligible."

Finding the weak link

Dixon says the opposition to pipelines has become more organized, and that more environmental groups are involved. Environmentalists have also identified the "weak link" energy companies have in their efforts to be sustainable: access to markets.

"So they've focused on that and as they've gained more and more strength, they're able to then focus on the issue of climate change."

That was the focus of a letter signed by former U.S. president Jimmy Carter and a group of Nobel laureates who urged Obama to reject Keystone XL.

The letter sent earlier this month says the president's decision will either signal a "dangerous commitment" to the status quo, or "bold leadership" that will inspire millions counting on him to do the right thing for the climate.

Dixon argues, though, that "if the goal of the environmentalists is to get us off oil, in fact, it's doing the opposite," as the public opposition is prompting energy companies to improve pipeline technology.

"It will make sure that our pipelines are safe so that you can't really complain about them. So that's the irony of it — that it will improve pipeline technology. Quite an irony actually."


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Internet Explorer security bug: How to stay safe

A vulnerability in Internet Explorer could let hackers take over your computer.

The bug has already been used by hackers to attack some U.S. financial firms, cyber-security software maker FireEye said over the weekend.

Here's what you need to know to protect yourself:

What versions of Internet Explorer are affected?

Internet Explorer 6 to 11 – that is, all of them. However, according to FireEye, cyberattacks have been targeting Internet Explorer 9 and higher.

How does this bug allow my computer to be attacked?

If you have an affected browser and visit a booby-trapped website, the bug leaves you vulnerable to a "drive-by install." That means malicious software (malware) can be installed without your knowledge – you don't have to click on anything.

Once the software is installed, others can take control of your computer.  

Typically, Microsoft says, you'd be directed to the website by a link in an email or instant message. The email may appear to come from someone you know and the website may look like a website you normally visit.

Is there a fix?

As of Tuesday, there wasn't. Microsoft said it is investigating, and will "take the appropriate action to protect our customers, which may include providing a solution through our monthly security update release process, or an out-of-cycle-security update, depending on customer needs."

What can I do to protect myself?

  1. Switch to another web browser, such as Mozilla Firefox or Google Chrome. This is one of the recommendations from U.S. and U.K. Computer Emergency Readiness Teams from their national security agencies.
  2. Upgrade from Windows XP to a newer version of Windows. Microsoft ended support for XP earlier this month and will no longer be releasing security patches for it.
  3. Download and install Microsoft's Enhanced Mitigation Experience Toolkit. This is recommended by Microsoft. The toolkit adds extra obstacles to make it more difficult for cyberattacks to make use of software vulnerabilities.
  4. Follow other security best-practices. Microsoft recommends that you:
    • ​​Enable a firewall.
    • Apply all software updates.
    • Install anti-virus and anti-spyware software.
    • Exercise caution when visiting websites and avoid clicking suspicious links or opening email messages from unfamiliar senders.
    • More tips are available here.

What if a new browser and operating system upgrade aren't an option for me?

There are some technical settings you can change to prevent attacks, says internet security company Sophos on its Naked Security blog.

You can turn off Active Scripting in your browser. You can also turn off an Internet Explorer extension called VGX.DLL. If you have XP, Sophos recommends that you unregister VGX.DLL and "never re-register it."


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'Sugar daddy' website links struggling students with older partners

Some Canadian university and college students are paying their way through school with the help of a website featuring "sugar daddies" willing to help pay their bills and loans in exchange for dates.

Seeking Arrangement touts itself as "Canada's No. 1 sugar daddy dating website" and claims to have 130,000 Canadian members who declare themselves as students or graduates trying to pay off their post-secondary debts.

The website involves "sugar babies" making agreements with interested older "sugar daddies" or "sugar mommies."

'It's just nice to be treated to something different and to feel like you're a princess.'- 'Kelly,' Winnipeg college student

An estimated 6,200 of the site's student members are from Manitoba, including a 23-year-old Winnipeg college student who says it linked her with a married man in his 40s who gives her $300 every time they go on a date.

They meet once a week or once every two weeks, she said, adding that some of their dates have been private but many are in public.

"There's places we can go that, like, a 24-year-old guy can't afford," she said in an interview.

"It's just nice to be treated to something different and to feel like you're a princess."

CBC News has agreed to identify the woman as Kelly — not her real name — and not show her face.

Kelly, Seeking Arrangement member

'Kelly,' a 23-year-old college student in Winnipeg, is one of 6,200 Manitobans who have registered with Seeking Arrangement as students or graduates trying to pay off their post-secondary debts. CBC News has agreed not to identify Kelly by her real name. (CBC)

Kelly said she was asked by Seeking Arrangement if she wanted to talk to CBC News about her experience, but she said she was not offered any remuneration by the company.

She said she agreed to be interviewed because she believes the website is a good option for other students who are struggling financially.

"I pay for my tuition myself. I took out a student line of credit. My mom is not able to help me at all. My dad helps sometimes, but he also isn't really able to help me," she explained.

"I worked really hard this summer — like, two jobs. I was working like 8:30 to 4:30 and then I was working five to midnight all summer, so that I could save up money for school."

'Wasn't going to sugar-coat it'

Kelly said she learned about the website on the American TV show Dr. Phil, but she didn't think much about it until her boyfriend — a man close to her own age — broke up with her in February.

Forced to start over financially while juggling schoolwork, she went to the website and created a profile.

'Young women really do have to question what these men are about.'- Marian Morry, University of Manitoba

As part of her profile, she had to include a photograph of herself and state her expectations, including how much financial support she'd want from a prospective partner.

"I put down that I was looking for somebody that I could have fun with … somebody that I could find a connection with, but also somebody who is also able to help me out a little bit when I needed it," she said.

"[I] wasn't going to sugar-coat it. I'm not going to be like, 'Oh, I'm looking for fun and nothing.' It's like I'm on this because I need a little bit of support. And the guys on there know that, too, and they want to help you."

Kelly said she listed her monetary expectations as "negotiable."

Other students on Seeking Arrangement have requested amounts ranging from $1,000 to $10,000 from their sugar daddies, in exchange for other mutually agreed-upon expectations.

Brook Urick

Brook Urick, speaking for Seeking Arrangement and its sister websites, says the online dating service is about 'mutually beneficial' relationships. (CBC)

"Most sugar babies are very optimistic in their lists of what kind of allowances and things they want. Most of the guys on the site aren't going to be forking over $3,000 a month to a sugar baby," Brook Urick, a spokesperson for Seeking Arrangement and its sister websites, told CBC News.

"But there are the girls that, you know, need to pay for college, and they meet someone on the site who's willing to sponsor them and finance that, and they're graduating debt-free."

Urick said the website has far more people seeking financial support than members wanting to provide support. The average age of someone seeking a "sugar daddy" is 26, she added.

The company offers free premium memberships to members who can prove they are a student, while a "sugar daddy" pays a standard membership of about $60 a month, she added.

Manitoba professor shocked

Marian Morry, a psychology professor at the University of Manitoba, said she was shocked to learn some students at the university are seeking sugar daddies.

"The fact that these are men claiming they have lots of money and willing to pay for a date — young women really do have to question what these men are about," she said.

Urick said Seeking Arrangement is about "mutually beneficial" relationships.

It's difficult to accurately determine how many students on Seeking Arrangement come from Manitoba's three largest post-secondary institutions.

Figures provided by the website show that of the 6,200 student members from Manitoba, a small number use current email addresses from the following schools:

  • University of Manitoba: 142.
  • Red River College: 97.
  • University of Winnipeg: 24.

"Basically it's about meeting one another's needs. So the guys on the site are generous, successful businessmen and they don't want to be texting for 24 hours a day and messaging back and forth forever. They just want to have a nice dinner with a nice girl and make it happen quickly," Urick said.

At the same time, she said, "Everyone's always thinking it's some kind of, like, 'pay for play' exchange, and that's definitely not the case. These are romantic relationships, and people are getting involved on an emotional level."

When asked if sex is an expectation during her dates, Kelly replied, "It's not an expectation. It's all about having a connection."

Kelly said she has not told her parents about the website.


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Farmers borrow government cash as grain backlog continues

Western Canadian farmers still stuck with last year's harvest are turning to the government for credit help in record numbers, and insiders fear problems could cascade through the agricultural economy as the new planting season gets under way.

A record-breaking harvest and harsh winter last year overwhelmed Canada's two big railways, backing up the flow of grain from western elevators to ports and leaving farmers with few buyers. Up to C$20 billion ($18.1 billion) worth of crops was stuck in storage as of late March, according to the Canadian government.

Dealers and lenders are softening terms for farmers caught in the unusually severe cash crunch, but some fear it won't be enough to stop a drop in fertilizer and machinery purchases that in turn could limit crop yields and weigh on land prices.

Railways ordered to move grain

Under government order in March, Canadian National Railway Co and Canadian Pacific Railway Ltd have doubled weekly grain traffic, but that's not enough to end a massive glut by the time the next harvest arrives in the world's sixth-biggest wheat-growing country.

"You'll likely see some lasting impact of this transportation crisis," said J.P. Gervais, an economist at Farm Credit Canada (FCC), the country's biggest ag lender. "We're going to feel that into next year and the years after it."

Farmers face an unpalatable choice between deploying debt and savings to fund spring planting on the usual scale, or cutting costs on seed and fertilizer, thus risking smaller returns.

Will Dodd, who farms with his father near Lanigan, Saskatchewan, ran out of storage after being unable to sell or move nearly 90 per cent of last year's harvest.

Until recently, Dodd had 20,000 bushels of barley piled on the ground, rising some 30 feet (9 meters) above the prairie.

"We've never had this kind of problem before," he said.

Unprecedented glut

The farm has dipped into savings to pay for planting and general costs, and also bought two bins costing $21,000 each. Planting his 4,000-acre farm will cost about $750,000.

At times, Dodd has worried he may miss payments on a tractor he bought in the fall before the backlog's magnitude became clear.

"We figure we can make it through about a year, and after that if (cash flow) doesn't improve, we're going to be in trouble."

Farmers have turned to the government like never before. A record 12,739 Western Canadian grain and oilseed farmers used loan guarantees through the federal government's Advance Payments Program in the year ending March 31. The average cash advance was about $128,500 for a total payout of $1.6 billion, the highest ever.

Farmers have long been big borrowers. Total Canadian farm debt has increased every year since 1993, hitting nearly $73 billion in 2012. That trend, based on Statistics Canada data, reflects a long-term rise in land values fuelled by low interest rates and strong grain prices in recent years.

But this winter, Farm Credit's Gervais said he has often heard farmers say they will scale back plans to buy additional land or machinery. Farmland values, which have risen 21 straight years, are likely to slow their ascent, and machinery demand will likely cool by the second half of the year, Gervais said.

Expensive equipment

Cash-strapped farmers may be scouring auctions for more affordable buys, said Manitoba auctioneer Bill Klassen. On April 19, he sold a 35-year-old tractor for $22,000, nearly twice what he expected. A new tractor with similar horsepower costs about $100,000

Ritchie Bros Auctioneers Inc has seen the prices of used seeding equipment dip while demand for grain storage equipment rose, said Simon Wallan, vice-president of agricultural sales.

Rocky Mountain Dealerships Inc, which sells CASE IH farm equipment made by CNH Industrial , is waiting to see if the cash crunch causes lost, or just deferred sales, said chief financial officer David Ascott.

"We think there is enough liquidity in Western Canadian farms to mitigate any short-term cash flow problems. But on the other hand, a lot of equipment demand is related to customer confidence," he said.

The problem hasn't resulted yet in a noticeable number of bankruptcies, as most farmers have an abundance of grain to act as collateral against credit, said Randy James, manager of agriculture in Manitoba for Bank of Montreal, the largest Canadian agricultural lender among chartered banks.

Both FCC and BMO rolled out programs this year to aid farmers against the cash crunch, such as foregoing fees and deferring payments.

But then, it's early to say what will happen.

"The repercussions usually come long after the event takes place," James said.

Some farmers will scrimp on fertilizer and other costs, but others remain in good financial shape after years of strong prices, said Manitoba farmer Doug Chorney, president of the province's Keystone Agricultural Producers association.

Buying on credit

The crunch has led Cargill Ltd, the Canadian arm of the global agribusiness giant, to take the unusual step of teaming with Farm Credit Canada to allow farmers to buy farm supplies now and pay for them after the harvest.

"We've done some unique things that we normally wouldn't to help farmers with the cash flow they will require to plant a crop," said Jeff Vassart, president of Cargill Ltd.

Farmers who can afford fertilizer face an additional problem: railway bottlenecks are also slowing fertilizer movement, and supply is a problem after a shutdown in March at Agrium's Carseland, Alberta nitrogen plant.

"Lack of cash and lack of fertilizer availability is going to affect yields down the road," said Larry Weber, a farm analyst at Weber Commodities in Saskatchewan.

Agriculture Canada said on April 17 it expects about 16 percent less production this year, which would still amount to a big crop.

Statistics Canada reported last week that farmers intended to plant slightly less canola - one of the most expensive crops to grow - surprising the trade that was expecting the second-largest seeding on record.


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Suncor posts record profit on booming oil shipments

Oilsands giant Suncor Energy Inc. has posted record operating earnings as it was able to get more of its crude to market by pipeline and rail.

The Calgary-based company says operating earnings were more than $1.79 billion, or $1.22 per share — widely beating the average analyst expectation of 93 cents, according to estimates compiled by Thomson Reuters

A year earlier, Suncor had operating earnings of $1.37 billion, or 90 cents per share.

Operating revenues, net of royalties, were $10.3 billion, up from $9.8 billion a year earlier.

Net earnings, which account for one-time items, were nearly $1.49 billion, or $1.01 per share, up from $1.09 billion, or 72 cents per share.

Suncor says it was able to capture world pricing on 96 per cent of its oil and gas production during the quarter.

Oil shipments have been arriving at its Montreal refinery by rail, with the expectation of ramping up to 35,000 barrels per day during the second quarter of 2014.

That situation is expected to further improve once Enbridge Inc.'s reversed Line 9 pipeline, which received regulatory approval in March, starts up. Between pipe and rail options, the Montreal refinery should be able to run 100 per cent lower-priced inland crude, rather than having to import it from abroad.

Meanwhile, 70,000 barrels per day have been able to make their way to the lucrative U.S. Gulf Coast market on a recently-opened TransCanada Corp. pipeline starting in Cushing, Okla.

The Gulf Coast pipeline, which started up in January, was originally meant to be part of TransCanada's contentious Keystone XL proposal. But TransCanada opted to go ahead with the southern portion first while the larger and more contentious cross-border segment remained in limbo.

Company-wide production for the quarter was 545,300 barrels of oil equivalent per day in the quarter, down from 596,100 a year earlier, due to the sale of its conventional natural gas business and the shutting in of production in Libya.

However, output in the oilsands was 389,300 barrels per day, up from 357,800 during the corresponding 2013 quarter.

Suncor has raised its expectations for Alberta natural gas prices to $4.50 per gigajoule from $3.86 per gigajoule. Natural gas is a major cost component for oilsands producers like Suncor.


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Foreign worker program suspension leaves Alberta restaurant short-staffed

Written By Unknown on Senin, 28 April 2014 | 22.40

The suspension of the federal foreign workers program is leaving some Calgary restaurants struggling with a labour shortage.

In Alberta, the hungry oil and gas industry has consumed much of the local labour pools and the shortage of workers is particularly affecting the restaurant industry. At one popular Calgary sushi restaurant, the Temporary Foreign Workers Program moratorium could mean big trouble for managers grappling with the high turnover prevalent among local workers.

GLobefish

Roughly 30 per cent of Globefish staff across three locations are foreign workers. (CBC)

"Throughout three locations, 30 per cent of our workers are foreign workers and we depend on them quite a bit," said Amane Kanai, manager at Globefish. "I do hire people [locally] but then they get another job, an office job, in the oil field — it's big in Alberta."

In light of the program suspension, Globefish says it will have to begin closing one day per week to make up for a lack of staff.

Several potential employees from Japan were set to move to Canada to work for the restaurant but now, Kanai says they are in limbo.

"That's a lot of big trouble for us."

This isn't the first time Alberta's food services sector has felt a labour drought.

The province and the Conference Board of Canada have both called for action on the shortage and in 2006, warned the problem was likely to continue over the next 20 years despite high numbers of migrant workers attracted by the booming resource economy.

Within the last decade, employers have been offering wages above minimum wage to try and attract committed workers.

Some, like Globefish, had to start shutting down on certain days.

And while many may be panicking over what the program suspension means for their business, Calgary Conservative MP Joan Crockatt says people should stay calm.

"This isn't a permanent measure," she said. "It's a temporary measure so we can rejig and make corrections as needed."

The decision to suspend the Temporary Foreign Workers Program came on Thursday following a government investigation of allegations raised during a series of CBC News investigations.

In a written statement announcing the suspension, Employment Minister Jason Kenney said "serious concerns" remain following the government's' investigation.

CBC's Go Public team produced a series of stories about how some McDonald's franchisees were allegedly abusing the Temporary Foreign Workers Program.

The CEO of McDonald's Canadian operations, John Betts, called the recent criticism of its use of foreign workers "bullshit" during a private conference call provided to CBC earlier in the week.

"This story has been brewing for a lot of years. And you know at the end of the day we just happen to be the business that got tapped into it and we weren't the first. Obviously, RBC was," said Betts, referring to a previous CBC Go Public story.

He also accused the CBC of being unfair and unbalanced in its reporting of the story, but CBC's director of journalism standards and practices, David Studer, said "CBC News stands by its stories."

The moratorium will remain in place until Kenney's department completes its review.


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If today's an average day, 3 Canadians will die on the job

Today is the National Day of Mourning to remember workers injured, killed or afflicted with an occupational illness while on the job. And if it turns out to be an average day for workplace safety in Canada, three workers will die.

In 2012, the most recent year for official statistics, there were 977 workplace-related fatalities in Canada, according to the Association of Workers' Compensation Boards of Canada. But those numbers only cover workplaces where workers can receive provincial compensation benefits.

"Hundreds more die from under-reported illnesses and occupational diseases that go unrecognized in the compensation systems," says the Canadian Labour Congress, which first established the National Day of Mourning exactly 30 years ago this year.

The AWCBC statistics show that the official number of 2012 fatalities was very close to the average of 972 for the years 2000-2012.

Construction industries accounted for 22 per cent of fatalities, with manufacturing was in second place with 19 per cent.

Health and social service industries accounted for the highest number of injuries on the job, according to the AWCBC. That's 17 per cent of the 245,365 workplace injuries in Canada in 2012.

Manufacturing was second  and construction third on the injuries graph.

The number of work-related injuries has fallen dramatically since the late 1980s, according to federal government and AWCBC statistics. In both 1986 and 1987, there were almost 50 work-related injuries per 1,000 employed workers in Canada, according to federal government calculations. By 2010 that number had fallen to about 15 per 1,000.

The AWCBC numbers, which only cover workplaces under the workers' compensation systems, suggest that ratio likely continued to drop in 2011 and 2012.

The labour movement attributes much of that drop to improving health and safety standards in the workplace.

Nevertheless, an average of 672 workers were injured every day on the job in Canada in 2012, as counted by the AWCBC.


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Internet Explorer bug used by hackers to attack U.S. firms

The U.S. Department of Homeland Security advised computer users to consider using alternatives to Microsoft Corp's Internet Explorer browser until the company fixes a security flaw that hackers have used to launch attacks.

The bug is the first high-profile security flaw to emerge since Microsoft stopped providing security updates for Windows XP earlier this month. That means PCs running the 13-year old operating system could remain unprotected against hackers seeking to exploit the newly uncovered flaw, even after Microsoft figures out how to defend against it.

The United States Computer Emergency Readiness Team, a part of Homeland Security known as US-CERT, said in an advisory released on Monday morning that the vulnerability in versions 6 to 11 of Internet Explorer could lead to "the complete compromise" of an affected system.

"We are currently unaware of a practical solution to this problem," Carnegie Mellon's Software Engineering Institute warned in a separate advisory, that US-CERT linked to in its warning.

Versions 6 to 11 of Internet Explorer dominate desktop browsing, accounting for 55 percent of the PC browser market, according to tech research firm NetMarketShare. Google Inc's Chrome and Mozilla's Firefox account for the majority of the rest of the traffic.

Microsoft disclosed on Saturday its plans to fix the bug in an advisory to its customers posted on its security website, which it said is present in Internet Explorer versions 6 to 11. Those versions dominate desktop browsing, accounting for 55 percent of the PC browser market, according to tech research firm NetMarketShare.

Cybersecurity software maker FireEye Inc said that a sophisticated group of hackers have been exploiting the bug in a campaign dubbed "Operation Clandestine Fox."

FireEye, whose Mandiant division helps companies respond to cyber attacks, declined to name specific victims or identify the group of hackers, saying that an investigation into the matter is still active.

"It's a campaign of targeted attacks seemingly against U.S.-based firms, currently tied to defense and financial sectors," said FireEye spokesman Vitor De Souza on Sunday. "It's unclear what the motives of this attack group are, at this point. It appears to be broad-spectrum intel gathering."

In addition to possibly switching to an alternative web browser, US-CERT advised businesses to consider using a free Microsoft security tool known as EMET, or the Enhanced Mitigation Experience Toolkit, to thwart potential attacks. Security experts say EMET is helpful in staving off attacks, but businesses are sometimes reluctant to use it because it can cause systems to crash due to incompatibility with some software programs.

FireEye and Microsoft have not provided much information about the security flaw or the approach that hackers could use to figure out how to exploit it, said Aviv Raff, chief technology officer of cybersecurity firm Seculert.

Yet other groups of hackers are now racing to learn more about it so they can launch similar attacks before Microsoft prepares a security update, Raff said.

"Microsoft should move fast," he said. "This will snowball."

Microsoft said in a statement to Reuters that it advises Windows XP users to upgrade to one of two most recently versions of its operating system, Windows 7 or 8.


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More education means more money? Not necessarily

The gap between the earnings of a college or university degree graduate and what someone with a high school diploma makes is narrowing, Statistics Canada research released today shows.

According to the data agency, high school grads are making wage gains, while the earnings of holders of a post-secondary school degree are staying flat.

The federal agency's analysis of data compares earnings for the two groups in two different time periods — in 2000 to 2002, and then between 2010 and 2012.

The results were counter-intuitive, in that education didn't lead to greater wage gains.

Between those two periods, men aged 20 to 34 whose highest level of education was a high school diploma saw their salaries increase by nine per cent. Women in the same group saw a rise of 11 per cent.

"In contrast, the average real hourly wages of young male bachelor's degree holders was unchanged, while those of young female bachelor's degree holders increased by five per cent," Statistics Canada said.

College degree holders still earned more than  their lesser-educated peers, but not by as much as during the previous period.

For every $1 a male degree holder earned between 2010 and 2012, a high school grad earned 75 cents. That's up from 68 cents a decade earlier. Meanwhile, a female fresh out of high school earned 74 cents for every dollar a college or university degree holder earned a decade ago, but 10 years later, that ratio increased to 78 cents per dollar.

Statistics Canada says one possible cause for the unexpected finding could be Alberta's oil boom, which has been driving up demand for unskilled labour.

"Increases in economic activity fuelled by the oil boom of the 2000s ― which raised demand for less-educated workers to a greater extent than it did for more-educated ones ― accounted for roughly one-fifth of the narrowing wage differentials among young men and young women," the data agency said.

In recent years, many provinces have moved to increase their minimum wages, and that trend was clearly visible in the data.

About a third of the narrowing of the wage gap for women was directly attributable to that, while on the men's side, there was virtually no impact.

"This was because young female high school graduates were more likely than their male counterparts to have hourly wages at or near the minimum wage rate," the data agency said.

High school grads may be doing comparatively better in terms of salary growth, but as a whole, fewer people are sticking with just a high school diploma, and not going on for more education

There were 42 per cent more women with bachelor's degrees over the decade studied, compared with only five per cent more high school grads. On the men's side, there were 30 per cent more college degree holders, and 16 per cent more high school grads.

Individuals with a higher education were also still much more likely to have a job in the first place.

"While the full-time employment rate of young women with a bachelor's degree remained around 63 per cent," Statistics Canada said, "the rate for young women with a high school diploma declined from 49 per cent to 44 per cent." 

"Likewise, the full-time employment rate of young men with a high school diploma fell from 68 per cent to 61 per cent over the decade, while their counterparts with a bachelor's degree saw their employment rate drop from 72 per cent to 68 per cent.


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PBO says Ottawa on track for balanced budget this fiscal year

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Watchdog says government on track to balance budget this fiscal year

The Canadian Press Posted: Apr 28, 2014 11:26 AM ET Last Updated: Apr 28, 2014 11:26 AM ET

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Foreign worker program abuse won't be tolerated, Jason Kenney warns

Written By Unknown on Minggu, 27 April 2014 | 22.39

The government's decision to impose a moratorium on the fast-food industry's access to the Temporary Foreign Worker Program will send employers "a very clear message" that abuse will not be tolerated, says Employment Minister Jason Kenney.

Kenney's comments came during a news conference in Vancouver on Friday, a day after CBC released an audio recording of the CEO of McDonald's Canada speaking to franchise owners during a private conference call earlier in the week.

"This has been an attack on our brand. This has been an attack on our system. This is an attack on our people. It's bullshit OK! I used those words when I described my conversation with the minister last week. He gets it," McDonald's Canada CEO John Betts is heard saying.

In a written statement on Friday, McDonald's Canada said it acted "swiftly and forcefully" to investigate allegations some of its restaurants has misused the Temporary Foreign Worker Program.

"We do not tolerate any misuse of the [program], any breach of employment standards or any infractions of any kind against our employees," the statement said.

McDonalds also accused CBC News of being unfair and unbalanced in its reporting of the story, saying the network had "relied on a handful of disgruntled individuals, mostly ex-employees, to attempt to tarnish the reputation of one of Canada's leading employers."

 CBC's director of journalism standards and practices David Studer said "CBC News stands by its stories." 

Despite the CEO's claim that Kenney "gets it," the minister today denied any suggestion that he is onside with McDonald's.

"I think that corporation understood very well how serious we were to freeze that corporation's access to the program and they therefore decide to take action unilaterally," Kenney said on Friday.

Kenney said he did not hear the CEO's comments for himself but that he was aware of the media reports about the recording.

"What  I can tell you is that I am happy when any employer takes disciplinary action or to self-police. If indeed this corporation wasn't serious about that, that I find very regretful. And we will not tolerate efforts to skirt the rules of this program, period," Kenney said.

Kenney took aim at employers saying they should raise wages and increase training for Canadians.

Opposition parties react

NDP Leader Tom Mulcair said when members of Parliament return to Ottawa next week, the New Democrats will use their opposition day in the House of Commons on Tuesday to move a motion to address the alleged abuses with the program.

The motion will call on the government to put a moratorium on the use of the program for low-skilled jobs, and request the auditor general to lead an independent review of the program.

Speaking on CBC News Network's Power & Politics on Friday, Mulcair said, "To see McDonald's charging people off their pay to live in apartments owned by them, it's quasi-slavery frankly, and it's absolutely unbecoming [of] a country like Canada."

In an interview scheduled to air Saturday on CBC Radio's The House, Kenney characterized Mulcair's comments as typical of his "tendency towards extreme hyperbole."

Kenney also made it clear that "any abuse of people's rights is totally unacceptable and there must be severe legal consequences."

A foreign worker recruited from Belize accused McDonald's Canada last week of treating him and other workers like "slaves."

The Liberals also filed a motion today calling for the human resources commons committee to hold televised hearings on the problems with the program.

Liberals would like to call Kenney to testify as well as two former longtime waitresses — Sandy Nelson and Shaunna Jennison-Yung — who told CBC News they believed they had lost their jobs to workers hired under the TFW program.

Liberal immigration critic John McCallum asked the auditor general to audit the program on Tuesday, saying it could shed light on whether "the program is being used to displace Canadian workers or drive down wages."

More than just fast-food jobs

Kenney took to Twitter following his announcement Thursday to say that "debate on the TFW Program should be based on facts, not myths." 

Canadian employers hire temporary foreign workers to fill more than just jobs in the food sector and shutting down the program would have negative consequences for the Canadian economy.

Kenney noted that temporary foreign workers make up only two per cent of the 1.1 million people employed in Canadian restaurants.

"Those calling for the TFWP to be 'shut down' should understand that this would be have vast, negative consequences for our economy," Kenney said in a post on Twitter.

"Shutting down the TFWP would be for our trade in services what closing our borders to imports would be to our trade in goods," Kenney said.

The moratorium does not extend to farmers, for instance, who hire foreign workers through the Seasonal Agricultural Worker Program.

"If aspects of TFWP are being abused or are distorting our labour market, let's address them. Let's also have some nuance in the discussion," Kenney said.


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Alleged internet-ad Ponzi scheme that was shut down in U.S. now operating in B.C.

An alleged pyramid scheme that may have defrauded Brazilians and Americans out of more than a billion dollars has surfaced in B.C.

The discovery comes after U.S. regulators shut down the U.S. headquarters of the company behind the alleged scam, which purported to sell voice over internet (VoIP) phone services.

TelexFREE Inc. first took off in Brazil but was shut down after the firm was accused of bilking one million investors out of $1-billion US in just over a year. Many of the investors lost their life savings in the alleged scam.

The company then set up in Massachusetts until U.S. regulators froze millions of dollars of its assets last week and charged the company operators with running a Ponzi scheme. The company denies any wrongdoing and the charges in the U.S. and Brazil have yet to be proven in court.

  • Scroll down to the bottom of this story to read court documents relating to the U.S. charges

Now, CBC has discovered that TelexFREE has set up in Richmond, B.C., as a registered business, with its company address listed as the offices of a lawyer who incorporates new businesses. Two of the individuals listed as the company's directors in Canada, James Merrill and Carlos Wanzeler, are two of the people charged in the U.S.

According to the U.S. Securities and Exchange Commission, in the U.S., TelexFREE's "pyramid scheme" was to sell so-called "memberships that promised annual returns of 200 per cent or more for those who promoted TelexFREE by recruiting new members and placing TelexFREE advertisements on free internet ad sites." 

TelexFREE pyramid graphic

TelexFREE allegedly uses money garnered from new recruits to pay older investors. (CBC)

Memberships cost between $300 US and $1,400 US, and investors  — called "promoters" — who placed the ads for TelexFREE's voice over internet service were promised returns in the form of monthly payments.

But in fact, most investors never got their money back.

"In classic pyramid scheme fashion, TelexFREE is paying earlier investors, not with revenue from selling its VoIP product but with money received from newer investors," the SEC said in an April 17 news release announcing the U.S. charges.

The regulator said TelexFREE's VoIP sales revenues of approximately $1.3 million US from August 2012 through March 2014 were "barely one per cent of the more than $1.1 billion US needed to cover its promised payments to its promoters."

Move into Canada 'bold,' says one observer

One man who almost got lured by the alleged scam and witnessed the collapse of TelexFREE in Brazil is now raising the alarm about the company's presence in Canada.

"Boris" — not his real name —  believes TelexFREE's move into B.C. is a clear attempt to make inroads in Canada and target local investors.

Boris

'Boris' — not his real name — witnessed the collapse of TelexFREE in Brazil. (CBC)

"I think it's a bold manoeuvre by TelexFREE, and it's kind of embarrassing for Canada to let that happen," he told the CBC.

CBC agreed to protect the identity of Boris, who says he fears retaliation from those made rich off TelexFREE.

Boris says he almost invested but decided not to in the end and now wants to warn Canadians.

"Luckily, I was out of it, but some people, they just trust," he said.

Boris said many investors get told about the investment opportunity by friends or family members and are not as lucky as he was in spotting the potential pitfalls.

"I've seen people who lost their houses, their cars, all their money in it," he said.

'You have to take action'

On the firm's Canadian Facebook page, investors appear to be lining up, with more than 7,000 "Likes," as of Friday afternoon. While the company's website in the U.S. has been pulled down, the Canadian version remains up.

Boris wants Canadian regulators to step in.

"I would say you do have to take action. Having an office open in Canada opens doors to a lot of people around the globe to keep investing money in this," he said.

Teresa Mitchell-Banks

Teresa Mitchell-Banks says the B.C. Securities Commission is monitoring the situation carefully. (CBC)

The B.C. Securities Commission, tasked with protecting the investing public, won't reveal if it's investigating TelexFREE.

But director of enforcement Teresa Mitchell-Banks says it is monitoring the situation carefully.

"We would ask people if you are concerned about this company or any other, to please contact us," she said.

None of the allegations have been proven in court.

On mobile? Click here to read the SEC charges against TelexFREE US

Telexfreeseccomplaint (PDF)
Telexfreeseccomplaint (Text)

On mobile? Click here to read the State of Massachusetts allegations against TelexFree US

Administrative Complaint TelexFREE 4 15 14 (PDF)
Administrative Complaint TelexFREE 4 15 14 (Text)


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Corporate Canada pays low taxes but contributes in 'lots of other ways'

Corporate Canada is often derided for not paying its fair share in taxes, but one of its top advocates argues that the corporate income tax rate doesn't give a full picture of how Canadian businesses contribute.

Other features on The Sunday Edition on April 27

Michael's Essay: A new cold war? From Dr. Strangelove to U.S. Air Force General Philip Breedlove.

Chinese labour: Han Dongfang advocates for the legal rights of 700 million Chinese factory workers.

"Nothing personal, but you're a woman": Karin Wells profiles carpenter Kate Braid and others in the group Vancouver Women in Trades.

Tribute to Alistair MacLeod: Michael's on-stage interview with the novelist exactly one year ago.

Erin Shields: The playwright's latest work is about the seedy world of child sex tourism, but it also explores the tensions between men and women, rich and poor, young and old.

"Corporate Canada pays governments in lots of other ways. They pay different levels of governments, they pay property taxes and they pay a variety of fees and charges that in many cases actually exceeds what they pay in corporate income tax," said John Manley, head of the Canadian Council of Chief Executives, in a feature interview with Michael Enright on The Sunday Edition.

Canada's corporate tax rate has been repeatedly cut for more than a decade, and now sits at roughly 25 per cent when combined with provincial tax rates. Activists complain many of the country's largest firms don't pay anywhere near that rate.

The left-leaning advocacy group Canadians for Tax Fairness said they did an analysis of the top 60 companies listed on the Toronto Stock Exchange, and found only four companies paid the full corporate rate. More than half paid less than 10 per cent, and 13 firms paid less than five per cent.

PricewaterhouseCoopers did its own analysis — a survey of the Canadian Council of Chief Executives' roughly 150 members. It was voluntary and only 63 replied. But of those who did, the survey found their businesses paid a total of $19 billion in corporate taxes, plus another $5 billion in various other charges and fees to various levels of government.

"For that small a number of companies, that's about 17 per cent of total federal corporate income tax revenue, so it's a pretty big number," said Manley.

"When you look at the overall numbers ... the amount of corporate income tax coming in to government has, except for the recession years, remained pretty steady."

Trying not to discourage investment

In 2012, the share of federal revenues from corporate taxes was about 13 per cent, while the share from personal income taxes was 49 per cent.

Mr. Manley said striking the right balance is tricky, because relying on people for tax revenues is safer for governments than relying on corporations.

"That's a judgment that every jurisdiction has to make: What's the right level that doesn't discourage investment?" he said. "Investment is clearly more mobile than individuals are."

Corporate tax avoidance strategies have become more prevalent in Canada. In 2011, almost a quarter of Canadian investment abroad wasn't investment at all. Rather, it was money transferred out of Canada to tax havens.

For example, in 2011, Canadian businesses invested $53.3 billion in Barbados, third only to the United States and the United Kingdom. By some estimates, the Canadian government is losing $80 billion a year in tax revenue due to this kind of profit-shifting.

"It's not right," Mr. Manley said. "But figuring out how to fix it without unintended consequences requires really smart people, and the Organization for Economic Co-operation and Development has been working at this for a very long time."

Mr. Manley said the Canadian Council for Chief Executives supports the OECD's efforts, but until the Canadian tax code changes, businesses have every right to take advantage of what the code allows.

"There is no one in Canada who wouldn't avoid paying a tax if there is a legal way to do it," he said. "It doesn't mean it's wrong to minimize your tax. It just means that governments have to get rules in place and make sure everyone is playing by them."

The problem of 'transfer pricing'

Mr. Manley said he believes one of the government's priorities is investigating a corporate tax-avoidance strategy called transfer pricing. This is when a multinational company sells its goods or services to itself internally, between subsidiaries in different countries. It usually involves selling from a branch in a higher-tax country to a branch in a low- or no-tax country to lessen the company's tax payout.

"In my experience, it's one of the things the Canada Revenue Agency examines the most closely. And tax advisers generally tell companies that you have to be really careful about this, because you have to be able to justify what you charge. "

Mr. Manley said that tackling tax reform has always been a challenge for governments. He said when he was finance minister, business leaders would often complain about the corporate tax rate.

"One of the things I would say to them is, if you want really low taxes, try Nigeria. There's no security, there's no infrastructure, the telephone systems don't work, but the taxes are pretty low.

"There's an old saying: 'Don't tax you, don't tax me, tax the guy behind the tree.' Nobody likes to pay. Unfortunately, governments need the money."

Mr. Manley said he recognizes that corporate Canada may have a perception problem over paying its fair share of taxes, and the stakes are quite high.

He says that it shouldn't be perceived as a "general unfairness," because that could lead to "a breakdown in social cohesion."

"We've got a great country. None of us go around with bodyguards and people live pretty well together. But that reality can be fragile. We've seen it break down in other countries. So a sense that everyone is contributing is important to that."


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Women in trades: Veterans say changes needed to boost numbers

The B.C. government is encouraging young women to pursue blue collar careers, but has met with mixed success. The founders of Vancouver Women in Trades recently gathered to discuss the challenges they faced breaking into the trades over the past three decades, as well as some of the things that have changed and what still needs work.

"I got into construction when I was living on a small [west coast] island," says Kate Braid. "And one night at a party I was talking about having to leave, because I couldn't get a job."

It was 1977 and she was in her twenties, daughter of a middle class family from Montreal. "One of the guys said why didn't I go down and apply for a job as a carpenter building the new school."

On CBC radio's The Sunday Edition on April 27 starting at 9 a.m. EDT:

  • Michael Enright's essay: A new Cold War? From Dr. Strangelove to U.S. Air Force General Philip Breedlove.
  • Chinese Labour: Han DongFang advocates for the legal rights of 700 million Chinese factory workers. 
  • "Nothing personal, but you're a woman":  Karin Wells profiles carpenter Kate Braid and others in the group, Vancouver Women in Trades.
  • Corporate tax avoidance: Many of this country's largest companies pay little or no corporate tax. An interview with John Manley, president and CEO of the Canadian Council of Chief Executives.
  • Tribute to Alistair MacLeod: On-stage interview with MacLeod exactly one year ago (April 27, 2013).
  • Erin Shields:  The playwright's latest work is about the seedy world of child sex tourism, but it also explores the tensions between men and women, rich and poor, young and old.

She looked round the little circle of men, and said: "But I can't build anything, for starters. And one of the guys said 'Lie.' And they all nodded as if this was normal … and later I found out that among construction guys it is!"

Kate Braid got hired on at the school. The foreman told her later the guys had been slowing down on the job, "so he figured that even though I'd probably be useless – which I was - they'd speed up just to show off…. But within a week it turned out I was in love with construction."

She loved building forms and pouring cement, loved working 17 floors up, and ultimately loved perfecting her craft. She worked on the tools for 15 years, became a red seal carpenter and started teaching her trade to others.

Braid also took her day's work home with her and wrote it all down every night, two or three single-spaced pages about the frustrations and the triumphs. Her journal became the raw material for 10 books of poetry, memoir and prose, and was the way she coped with the solitary life of a woman in the trades.

There weren't many other women who had forged a path in the trades at the time.

In the '70s when Braid researched the numbers on B.C. trade workers, only 3 per cent of the plumbers, carpenters, welders and other blue collar workers  were women.

Some of them found each other and formed Vancouver Women in Trades – a combination of advocacy and support group that existed from 1979 until 1987.  

When they reunited recently, some of them hadn't seen each other in decades. Besides Braid, there was Marilyn Lanz, a high-pressure welder and the first woman at the Halifax shipyards; Heather Tomsic , Canada's first woman boilermaker; Janet Lane, an avionics mechanic;  Judy Doll, a carpenter and teacher ; and plumber Tamara Pongrancz .

There was some laughing over old photographs, but there was nothing sentimental as they reflected on what Vancouver Women in Trades had meant to them 35 years ago.

"Going to work every day and being the only woman was like going to a foreign country," says Lane. She was the first mechanic hired at Vancouver Sky Train and wrote the manual on how to fix the trains.  "Without Women in Trades I wouldn't have made it."

"The consensus on what we were doing and where we were going to go was really significant in terms of feeling like you were of one mind," adds Doll, the carpenter and senior member of the group.

Kate Braid, Marilyn Lanz

Kate Braid (left) worked in trades for 15 years, became a red seal carpenter and started teaching her trade to others. Welder Marilyn Lanz is still working at her trade in northern B.C. (CBC)

"There weren't many women in the same trade," says Tomsic. "The really amazing part was that we all shared the same joy of the work."  

Welder Marilyn Lanz is still on the tools, still carrying her rod-oven to jobs in northern B.C.

"What it meant for me was to come in from the isolation," she says. "It put some humour in this. If you didn't have that group to show you how to laugh, you would lose your sanity."

"The bathrooms," says Braid. "The foreman told me when I came on, 'You know we don't have bathrooms here.'" That's OK, she answered, she'd just go in the bushes like the guys. "He had a bathroom there within two hours."

"People want to talk about the harassment," adds Braid, "what one friend called 'the haters.' I didn't run into a lot of those guys."

She says it was more the passive criticism: "Who are you what are you doing here … As one guy said to me, nothing personal it's just that you're a woman."

Today there are more women taking trades courses. But when asked whether things are better now Marilyn Lanz simply said, "it's different."

Braid pointed out that the young men in the trades today are not as uncomfortable with women on-site as they were in her day. "I can't help but think that must be having some impact."

Pongrancz , the plumber, says schools have been trying to encourage a shift in the demographics, offering women-in-trades programs for years. She now teaches at British Columbia Institute of Technology.

'Something is stuck. We need a new approach.'- Kate Braid

The B.C. government has also mounted a renewed push to bring more young women into blue collar trades to meet the shortage of skilled workers. 

On International Women's Day this year,  B.C. Labour Minister Shirley Bond  said the province was looking at more than a million job openings in trades and technical operations. "Connecting women with the skilled trades can help put them at the front of the line."

"But yet there's not a really significant increase of woman in the trades is there?,"  says Doll.

She points to the years she spent teaching technical education to Grade 8 boys and girls. At a recent conference of tradeswomen in British Columbia, she says, "one of my students came up to me she said I was in your Grade 8 class."

The rest of the women smiled and said how wonderful that is. "Yes," Doll agrees, "but ONE, only ONE, and I must have taught 2,000."

Braid went back and checked the employment numbers again. In the past 40 years law schools and medical schools have seen the numbers of women go from 10 per cent to more than 50 per cent.

It is not the same in the trades.

"The authorities will tell you there are 10 per cent women in trades now," Braid says, "but when you take hairdressers and chefs out, it's still 3 per cent. Something is stuck. We need a new approach."

[Listen to Karin Wells' full audio documentary, "Nothing Personal, It's Just that you're a Woman," on The Sunday Edition site or in the link at the top-left of this page.]


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CRA fails to create new strategy for cheats after 3-year effort

After a three-year effort, the Canada Revenue Agency has failed to produce a new national strategy to combat the underground economy — despite repeated requests to do so from cash-starved provinces.

The provinces, especially Ontario and British Columbia, have been pressing the agency since late 2010 to update its strategy for extracting taxes from the underground economy, estimated to be worth more than $35 billion annually.

'We seek to detect [underground economy activities] early, to bring taxpayers into compliance quickly and in serious cases of non-compliance the agency files charges.'- CRA spokesman Philippe Brideau

The current guiding document is a decade old, and changes since then — including the advent of cash-register "zapper" technology that conceals sales — have made it increasingly out of date.

The agency regularly audits offenders in three most-active underground sectors, that is, construction, retail trade and food services, including table-waiting staff.

In 2011-12, the last year for which statistics are available, the agency carried out almost 11,000 underground-economy audits, finding more than $300 million in unpaid taxes.

But internal documents from last October show that an updated strategy for targeting the right businesses and workers, with enough resources and agency-wide co-ordination, has eluded officials.

"A number of stakeholders have been consulted, all with varying opinions and suggestions as to what the focus and direction of the strategy should be, such that a strategy has not emerged," says an Oct. 23 report to the CRA's senior management.

The report suggests there were too many differing views among provinces and agency officials about exactly what constitutes the underground economy — and warns against bad targeting.

"The risk of future non-compliance increases if compliance interventions are targeted at the wrong people or if taxpayers feel they are not treated respectfully," it says.

"The CRA has finite resources and deterrents such as audit are costly. As such, deterrents should be focused on the highest-risk UE [underground economy] participants."

The document was obtained by The Canadian Press under the Access to Information Act.

The failure to update a key guidance document echoes a similar finding by Canada's auditor general last fall.

bvi-852

CRA praised for efforts to recover taxes from people who hide money in offshore accounts.

Michael Ferguson's Nov. 26 report to Parliament generally lauded the agency's efforts to recover taxes from people who had hid their money in offshore accounts in Liechtenstein.

But he criticized CRA for using an outdated guide that has failed to keep pace with modern banking practices, especially as they relate to hiding taxable funds offshore.

"The current audit guide for offshore banking is from 2001 and was developed before the agency received large informant leads such as the [Liechtenstein] one in 2007," says his report.

Ferguson noted the agency was developing a "wiki-type" online page to enable its auditors to share information.

A Statistics Canada report commissioned in 2012 estimated that the underground economy has been shrinking somewhat, to 2.3 per cent of GDP in 2009 from 2.9 per cent in 1992.

The types of businesses failing to report taxes are also changing, with more emerging in mining, oil-and-gas extraction and others.

The Canada Revenue Agency, for example, has in recent years targeted the unregulated couriers, paramedics and drivers who work on contract for big resource firms in British Columbia's remote Peace River region.

That two-year probe into tax cheats working in the area's resource sector uncovered almost $2 million in unpaid taxes, and officers levied another half-million dollars in fines and interest.

"Zapper" technology, responsible for up to $3.25 billion in unreported sales, has also been a recent focus, with new sanctions recently implemented by Parliament to combat electronic suppression of sales software.

A spokesman for the agency confirmed that a 2004 document continues to guide tax-collection efforts in the underground economy, but is "complimented by new measures developed in response to emerging risks."

"The CRA makes UE activities a priority," said Philippe Brideau. "We seek to detect it early, to bring taxpayers into compliance quickly and in serious cases of non-compliance the agency files charges."


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Cheap money may be here to stay, Poloz hints

Written By Unknown on Jumat, 25 April 2014 | 22.40

Canadians can expect to enjoy relatively cheap borrowing costs for some time to come — even after the economy returns to full capacity and the Bank of Canada starts hiking interest rates, bank governor Stephen Poloz said Thursday.

But the central banker doesn't think sending that message means people will go on spending sprees.

Poloz says it will likely take until early 2016 before the economy is firing on all cylinders and inflation is back to two per cent. But even when it does Canadians shouldn't expect a sudden increase in interest rates to fight inflation, he told a business group in Saskatoon on Thursday.

"Our economy has room to grow and when we do get home, there is a growing consensus that interest rates will still be lower than we were accustomed to in the past," said Poloz.

"Both because of our shifting demographics and because after such a long period at such unusually low levels, interest rates won't need to move as much to have the same impact on the economy."

Change in tone

The statement represents a slight shift in tone for the central bank, which has for years warned households to be mindful of overextending themselves in the housing market because one day interest rates will need to start rising.

Poloz says the new normal will be lower rates than in the past and people should get used to that.

"Does that mean that they'll go out and borrow more? It could, but I really think that what we're observing is a high level of self-responsibility through this," he said.

"There's all kinds of anecdotal evidence that people are choosing to buy less house than they qualify for because they don't want to overextend themselves, that our banks are underwriting very carefully — making sure that people can service their debt even if interest rates go up before they renew."

The Bank of Canada has kept the overnight rate, which impacts short-term borrowing costs, at one per cent since September 2010, but in essence rates have been well below so-called normal levels since early 2008.

Some economists speculate the bank's overnight rate will settle in at the 2.25 to 2.5 per cent range, more than a full point or more below pre-recession levels.

The super-low borrowing costs are generally acknowledged to have aided the economy through the 2008-09 crisis and soft recovery — stimulating borrowing and spending among Canadians and businesses — but not without costs, including an overheated housing market and record high levels of household debt.

Bad news for savers

As well, it has been a difficult six years for savers who have realized low yields on investments, and it has made it tough for defined benefit pension plans to cover liabilities.

Poloz's speech to the Saskatchewan Trade and Export Partnership focused on the controversial subject of Canada's oil exports and their impact on the dollar and central Canada's manufacturing sector.

Poloz conceded that the strength of resource exports played a role in the appreciation of the loonie over the past decade.

While resource-rich regions benefited the most, all Canadians have shared in the "gift," he said. The bank has calculated that Canada's gross domestic income is about seven per cent higher today than it would have been without the improvement brought on by resource exports, particularly oil, since 2002.

"Yes, when we break this down by region, big benefits are accruing to the three oil-producing provinces (Alberta, Saskatchewan and Newfoundland). But those who suspect GDI (gross domestic income) is falling elsewhere will have to think again," he said.

"Rather, everywhere in Canada, GDI is higher than it would have been without the improvement in terms of our trade."

Poloz says other exports, including food, beverages and tobacco, should also improve as the U.S. market gains momentum. He expects grain shipments to be stronger too as a rail bottleneck that has left a bumper crop sitting in bins across the Prairies eases.

"We have every reason to hope that those logistical issues are on the mend as we sit here, so I'm optimistic about that."

Stronger exports

Export Development Canada has said renewed strength in the United States and in emerging markets, along with a lower loonie, will trigger a rebound in the lagging export sector, particularly in automobiles, building materials and appliances.

Poloz says a sustained recovery "hinges critically" on exports or inflation could drift back down to around one per cent.

The bank has been forecasting stronger exports for about a year. Poloz acknowledges the timing has been difficult to predict, but he says the bank relies on the best data possible.

"The models are based on history — the history has substantially changed because of what we've been through. So we'll continue to do our very best and we do think that all the ingredients are present for this recovery in exporting."


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Did Disney make a marketing blunder with Oscar film Frozen?

First there was Frozen, the movie. Then kids started dressing up as its main characters, Elsa and Anna, Disney's Frozen sold millions of DVDs and its song, Let it Go, won an Oscar.

Yet you'd be hard-pressed to find any Frozen-themed merchandise in toy stores. Parents trying to buy dresses, dolls and toys have been disappointed over the past month, as Disney and its licensees, like Jakks Pacific and Mattel, seem to have sold out of such items. 

Some consumers, meanwhile, have shelled out over $1,500 US each for an Elsa dress on eBay, while others have turned to handmade versions sold on Etsy.

Even Burbank, Calif.-based Disney itself has been surprised by the demand for Frozen products.

"Frozen is a global phenomenon that has truly exceeded expectations on every level," Disney spokeswoman Margita Thompson said in an email to CBC News.

She said Disney, which has been sold out of some products for a month, is racing to restock. Elsa's twinkling blue dress (anxious parents take note) could be back in stock by late April or May, Thompson said.

"Nobody predicted Frozen would be this hot," said Time To Play magazine's editor in chief, Jim Silver.

"It's not like the lights that you can just turn on … it takes three months to get toys to shelves," Silver told CBC.

It seems ludicrous, but even though the Frozen franchise including products has made over $1 billion US, Disney likely left money on the table.

Product shortage could drive sales, prof says

Steve Kates is an associate professor in the Beedie School of Business at B.C.'s Simon Fraser University whose research interests include brand management. He told CBC that he's surprised Disney — which he considers a "quintessential service marketer, right up there with Google and Apple" — made a mistake when it came to ordering enough of the Frozen-themed dresses from its overseas manufacturers.

But a shortage isn't all bad news for the entertainment behemoth, he said.

'Kids want everything ... on the other hand, kids get bored very quick.'- Steve Kates, Simon Fraser University marketing professor

"It causes some consumer frustration," Kates said, "but it could be good because it enhances the perception of value."

In other words, product shortages can drive demand. 

But would a company like Disney intentionally create a shortage?

Kates said it's unlikely a normally risk-averse company like Disney would risk a chance to cash in on the Frozen craze.

"Kids want everything," Kates said.

"On the other, kids get bored very quickly … If [Disney] let the toys trickle out, there'll be another blockbuster."

Frozen could still be popular at Christmas

In Canada, retailers are counting on a continuation of the Frozen boom.

Toys "R" Us spokeswoman Victoria Spada said the chain considers Frozen a "top-trend girls property," and has scaled up orders for merchandise into the fall to satisfy the demand.

"Frozen products will definitely continue to top wish lists, even through the holidays," Spada said in an email.

Frozen's popularity, Spada said, is driven by its characters — Elsa, Anna and the snowman sidekick Olaf (who is popular enough himself to warrant a snow-cone maker). Spada compared Frozen's characters to the animated stars of the Toy Story series that are still on store shelves.

Frozen dominates Amazon.ca bestsellers list:

  • No. 1 bestseller in nusic: Disney's Frozen CD: Music from the Motion Picture 
  • No. 1 bestseller in DVD: Frozen [Blu-ray + DVD + Digital Copy]
  • No. 3 bestseller in DVD alone: Frozen
  • No. 3 bestseller in children's books: A Day in the Sun [A Frozen spinoff]

"It really has to do with the entertainment … the entertainment is driving all the sales," Silver said.

Frozen, owing to its media dominance — it's on Amazon.ca's CD and DVD bestsellers list — has made it into homes and onto repeat. Kids can sing the songs, and aspire to be like the characters at the heart of the movie.

"Girls have fallen in love," Silver said, adding teens and parents are also falling for the film, which is good news for marketers.

"Disney is very good at producing marketer's dreams," Kates said.

While kids are an easy mark — remember fads like Cabbage Patch Kids, Tickle Me Elmo and Pogs? — Disney's latest batch of characters have instantly developed a following that may make them a media mainstay. Already, there are spinoffs including video games and books.

When it comes to buying these products, Kates advises holding out if you're looking for a good price — though explaining supply and demand to your child might be difficult.

"It's a good opportunity to teach kids about patience," he said.


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CRTC mulls cable rule overhaul that may allow custom packages

Canada has moved a step closer to pick-and-pay cable television packages for consumers, with the broadcast regulator revealing its thoughts on how best to open up the industry to more customization.

The Canadian Radio-television and Telecommunications Commission unveiled the latest report in its ongoing series entitled Let's Talk TV, in which it lays out a variety of options to change the rules for how television channels are sold to consumers.

Among them would be to compel cable companies to offer a small, all-Canadian basic service full of local, community and educational programming. That package would be full of channels that are so-called "mandatory carriage." But it could be complemented by an upgrade the CRTC calls "discretionary programming services on a stand-alone basis" — commonly known as the pick-and-pay model, where consumers buy individual channels.

A further part of the plan, in the CRTC's words, would "allow subscribers to build their own custom packages of discretionary programming services (build-your-own-package)."

"Under the proposed approach, distributors would also be allowed to continue to offer discretionary programming services in pre-assembled packages for those Canadians who are satisfied with their current offering," the CRTC said. "Those who are not satisfied with the status quo would be offered alternatives, including the choice of smaller packages or customization on a pick-and-pay basis."

No firm timeline for the proposal has been offered, as the CRTC is currently calling on the general public and industry players to comment on the different options.

The regulator is going through this process because the government asked them to look into the viability of breaking up the current cable TV model of package subscriptions that don't allow for as much customization as is theoretically possible.

"The CRTC report sets out a roadmap to greater channel choice, which is consistent with our commitment to provide Canadian families with the flexibility and choice they want," Heritage Minister Shelley Glover said in a statement. "I want to thank the CRTC for the work they have done in this area and look forward to the next steps they will take to implement their proposed approach."


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Russia's credit rating cut to near 'junk' status

Russia felt the impact of the Ukrainian crisis on its economy on Friday, when ratings agency Standard & Poor's cut its credit grade for the first time in five years and the central bank raised interest rates to keep the sliding currency from fueling inflation.

S&P said in a statement it dropped Russia's rating to one level above "junk status" because the tense situation over Ukraine was causing investors to pull money out of the country.

Russia, it warned, "could see additional significant outflows of both domestic and foreign capital from the Russian economy." S&P said it is keeping a negative outlook, meaning it could downgrade the country again if economic conditions worsen.

Credit ratings are important for the economy because they determine how expensive it will be for a country or company to borrow on international markets and eventually determine how much consumers will be paying for their loans.

As Russia does not borrow much on international bond markets, the impact on its public financing costs is likely to be limited. Russia had 4.4 trillion rubles, or $135 billion CDN, in outstanding government bonds as of April 1. But the downgrade amounts to a warning on the risks of investing in the country and the low grade is surprising for a government that has very low levels of public debt.

Economic indicators have been pointing to problems in Russia's economy.

Investors spooked by the possibility of Western sanctions on Russia's economic interests pulled about $70 billion out of the country in the first three months of the year — more than in all of 2013. Economic growth slowed to 0.8 per cent during that period, sharply worse than earlier forecast while.

And the currency slumped, hitting records lows against the dollar. On Friday, it was down 0.7 per cent at 36.03 rubles per dollar. The ruble's weakness, in turn, has been pushing inflation up in Russia as a lower currency makes imports more expensive.

The Russian Central Bank sought to fight that trend by increasing its main interest rate, the one-week auction rate, by 0.5 percentage points to 7.5 per cent on Friday.

The bank, which had already hiked its rate sharply in March from 5.5 per cent, said in a statement it aimed to keep the inflation rate under 6 per cent this year and does not expect to cut the rate back in the coming months.

The interest rate increase is a double-edged sword — it could help stabilize the currency by attracting foreign investors in search of higher returns, but will also tend to hurt economic growth by making loans more expensive.

Russian Economic Development Minister Alexei Ulyukayev dismissed the S&P ratings cut from BBB to BBB- as "partly politically motivated."

Moscow in March recognized a hastily called referendum in Ukraine's Black Sea peninsula of Crimea and annexed it weeks later, attracting condemnation of the West as well as sanctions targeting individuals. Secretary of State John Kerry on Thursday warned Moscow that unless it took immediate steps to de-escalate the situation, Washington would impose additional sanctions.

Russia's MICEX benchmark was 0.8 per cent down in later afternoon trading on Friday as the markets have been declining for five days in a row.


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The net neutrality battle for equal access vs. pay-for-premium internet

A debate is raging around the world about how all that internet content streaming into billions of households should be managed.

"Net neutrality," the dry and antiseptic term bandied about in this debate, refers to the belief that internet service providers must treat all this traffic equally.

However, many of these ISPs now want new rules that would allow them to charge high-volume content providers extra to get their content to users on a broadband fast lane.

The U.S. has been struggling with the issue for years, with its latest attempt by the Federal Communications Commission expected to dash the hopes of net neutrality advocates. Meanwhile, Brazil, Chile and Europe have taken the opposite approach. 

Here are some of the main elements in the debate. 

What is net neutrality?

Also referred to as "open internet," it's essentially the idea that all content on the internet, regardless of its form or who provides it, should be treated equally by internet providers. Consumers are free to choose what they want to use on the internet, without ISPs restricting or shaping it in any way. Advocates for an "open internet" say the goal is to ensure freedom of expression, enable innovation and promote competition. 

Why are companies fighting against net neutrality?

Internet service providers are pushing for rules that allow them to charge a premium for the use of their fastest broadband. Companies willing to pay for the special service, such as those providing broadband-heavy video or gaming services, would ensure their content gets to their customers faster and without interruption. The extra money paid to ISPs would help pay for improved broadband networks, they say.

What's the debate?

Net neutrality advocates argue that setting up a premium service basically creates a "toll road" for companies with deep pockets. Plus, any special treatment provisions might enable ISPs to decide themselves what content a consumer gets and when, perhaps limiting certain types of content to low-volume hours. Small tech firms and entrepreneurs argue it's discriminatory to create special fast lanes, and could result in fewer startups flourishing.

Large internet and content providers, however, say they need to charge more for high-bandwidth content like video streaming or voice services like Skype. They argue that under net neutrality, the companies taking up the most bandwidth with their content aren't paying their fair share to improve the internet infrastructure.

What countries have net neutrality laws?

On Wednesday, Brazil signed into law a bill of digital rights that protects the privacy of internet users and guarantees equal access. Dubbed its Internet Constitution, the law bans telecommunications companies from charging premium prices for special content.

In 2010, Chile became the first country to create a net neutrality law. The following year, the Netherlands followed suit, with Slovenia joining soon after.

In early April, the European Parliament voted to protect net neutrality. The decision came after the telecom regulator said ISPs were blocking or slowing down services like Skype and Netflix. The bill still needs final sign-off later this year. 

What about the United States?

There's been a years-long battle in the U.S. on net neutrality. The FCC created rules in 2010 that banned broadband providers from prioritizing internet traffic. But a court struck down the rules in January of 2014. It said the FCC contradicted itself by treating internet service providers like a "common carrier," such as a utility like telephones, after it had already deemed them exempt from "common carrier" treatment.

Soon after, Netflix inked a deal with Comcast, the country's largest ISP, to pay extra for preferential treatment of its movie streams.

On Wednesday, the Wall Street Journal revealed that the FCC appears set to reverse its original "open internet" position. New rules by the regulator are expected to allow broadband providers to charge companies for preferential access to the internet fast lanes. However, the FCC reportedly plans to require that the arrangements are "commercially reasonable" and decide that on a case-by-case basis.

FCC chair Tom Wheeler denied the reports that the agency is on track to obliterate the core principle of net neutrality, saying the new rules won't change underlying goals of transparency and won't allow discrimination among users or blocking of lawful content. In a blog, Wheeler said the "commercially reasonable" test will protect consumers and won't harm competition.

Where does Canada stand?

The Canadian Radio-television and Telecommunications Commission (CRTC) has taken a hands-off approach. It established traffic management rules to prevent discrimination and content blocking, but the telecom regulator won't enforce the guidelines. The onus lies on consumers to complain about an unfair practice.

Late last year, Manitoban Ben Klass filed a complaint saying Bell was giving itself an unfair advantage by charging more for Netflix content than its own competing content. The CRTC is currently reviewing that complaint and others related to fair treatment of internet services.


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How medical marijuana growers make sure they're selling quality pot

Written By Unknown on Kamis, 24 April 2014 | 22.39

Medical Marijuana 20140330

Under the Marijuana for Medical Purposes Regulations, producers are subject to compliance and enforcement measures similar to those that regulate producers of other controlled substances. Licensed medical marijuana growers must meet strict security, control and reporting requirements, and are regularly inspected. (Darryl Dyck/Canadian Press)

The recent voluntary recall of medical marijuana from a B.C. producer highlights the growing pains of a burgeoning industry coming to grips with a whole new regulatory process.  

"Commercializing that has been the hurdle," says Mark Gobuty, CEO of The Peace Naturals Project, one of the dozen producers licensed to sell medical marijuana in Canada. "Having an industry that wasn't regulated, where you didn't have the 8-5 shift and seven days a week operation, absolute reporting, cameras everywhere — it's counterculture to cannabis."

"Like anything else there's an evolution because you're working with a regulator who truly isn't intimate with cannabis and they've been ordered to provide safe access."

Under the Marijuana for Medical Purposes Regulations, producers are subject to compliance and enforcement measures similar to those that regulate producers of other controlled substances. Licensed medical marijuana growers must meet strict security, control and reporting requirements, and are regularly inspected.

"You have to safely produce cannabis within a safe working environment within a repeatable procedure and be able to have the wherewithal and credentials and polices and protocols to have everything tested validated and safe," Gobuty said.

In the case of Greenleaf Medicinals, which has since voluntarily stopped selling its product, Health Canada inspectors said they identified issues with processes that affected quality control, which included potential residues from the use of unregistered pesticides, unsanitary production conditions and concerns with testing standards.

Gobuty said all producers are required to have on site a quality assurance manager, who has passed security clearance.  But growers also obligated to do third-party testing, meaning their cannabis is sent to a lab to be tested for any bacteria, fungus, mould, chemical residue or pesticides.

"We have our own testing equipment, we have calibration equipment to confirm our testing equipment is in order and we still send everything to the third-party lab for validation," he said.

Dr. Mehrdad Barghian, CEO of Quality Compliance Laboratories, one of the labs accredited to do quality assurance testing on medical marijuana, said the main focus of their testing is for the amount of cannabidiol (CBD) and tetrahydrocannabinol (THC) in a plant.

The amount of the THC determines the medical purpose of it. A higher THC percentage is better for certain therapeutics, while a lower THC percentage is better for others, Barghian said.

Microbiological testing is conducted to make sure no fungi, salmonella and E. coli have formed, and an analysis is performed to ensure the absence of lead, arsenic, cadmium and mercury, he said.

Buds are also examined to see if any insects or anything unusual is inside the bud.

"The three things that are important are purity, safety and efficacy. They are the three important things to determine quality of any product," Barghian said.

If the cannabis falls short, producers have their remediation techniques. Some will use gamma radiation for get rid of fungus or bacteria. The marijuana will be submitted again for testing, where a producer will receive a pass or fail. If a fail, a producer may try to remediate again, or destroy the plant.

"The guidelines say you can have zero detection of mould, bacteria or fungus," Gobuty said.

But the process is a continual learning curve. When Gobuty first began, it took them four days just to fill out all the reports required, he said.

And then there's the constant discovery of better practices. For example, Gobuty says his staff used to wear lab coats, shoe covering, hair nets and gloves for indoors and outdoors. Now they wear jumpsuits, which they take off and dispose of, just when moving from room to room.

"We are the carriers of the bugs. One little one jumps on your leg in one room and jumps off in the other and suddenly you have a problem in that room."

Gobuty said while Health Canada sets regulations, it doesn't tell producers how to run their operations.

"They don't tell you how to run your drying room. There's procedures. So when you have good manufacturing processes and you have protocols in place, and you follow those protocols, you will know how to successfully dry and dehumidify and cure cannabis.

"Health Canada is not an expert in any of that. What they are an expert in is confirming what you say you're going to do  and then validating your test results."


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