Finance Minister Carole James provides update on worker’s benefit

B.C. worker’s benefit opens

UPDATE: 10:20 a.m.

Applications for the B.C. Emergency Benefit for Workers opened Friday morning, and 16,389 applications were filed in the first 45 minutes.

The one-time payment of $1,000 for those who have lost income due to COVID-19 can be applied for here. British Columbians who are eligible for the Canada Emergency Response Benefit and have not been receiving provincial income assistance or disability assistance will be eligible for the new provincial benefit. 

The Emergency Benefit for Workers program is part of the $5 billion in COVID-19 supports and tax cuts announced by the province in March. 

Those unable to apply online will be able to apply by phone on Monday. More details about the Workers’ Benefit and the other federal and provincial supports can be found here. 

ORIGINAL: 9:25 a.m.

Minister of Finance Carole James will be speaking about the B.C. Emergency Benefit for Workers, as applications for the subsidy become available.

VICTORIA (NEWS 1130) — The national job loss numbers released Thursday are just the beginning, as B.C. Finance Minister Carole James expects unemployment to rise further in the province due to COVID-19.

Statistics Canada reported unemployment across the country rose to 7.8 per cent in March from 5.6 per cent in February — the greatest change in national jobless figures in more than 40 years.

In B.C., the unemployment rate rose to 7.2 per cent from five per cent.

James said job losses in B.C. mirror those reported across Canada, with economists suggesting about 132,000 workers were affected in the province.

“The numbers across the country are very similar to what we are seeing in British Columbia. We’re seeing a real drop in accommodation of food services — that’s hotels, restaurants,” James said.

B.C. is also seeing jobs drop in wholesale and retail trades, as well as tourism, culture, and recreation, specifically movie theatres and sporting events.

The job-loss numbers covered the period of March 15-21, she said.

Finance Minister Carole James commenting on these new employment numbers — says these numbers not “the entire picture,” points out they are from early in pandemic, jobs lost since. Also points out 7.2% unemployment doesn’t include those who were looking for work but now can’t. https://t.co/xBGZS38qYr

— Martin MacMahon (@martinmacmahon) April 9, 2020

B.C. declared a state of emergency just after March 15, and James is impressed and appreciative of the work businesses and employees are putting in to keep the economy going and to be ready for when it recovers.

Regarding programs in the new B.C. COVID-19 action plan, James said many employers are busy, even busier than before.

“I think the measures that we put in place to look at how we fill the gaps from the federal programs, whether it’s looking at reducing down the school tax portion of property tax, whether it’s providing deferrals on payments for businesses, those are going to make a difference to be able to hang on to some of the businesses for the recovery.”

That said, she expects the job loss numbers in April will be higher than in March.

“I certainly think this is going to become more challenging,” she added.

“This is very early in the pandemic and I do believe that we are going to see tougher numbers coming in the next round of statistics that come out.”

She doesn’t know how many more jobs will be lost or when the economy will recover.

“As I said, I don’t have a crystal ball, and no one can really predict when we are going to see that kind of turnaround.”

James said the best economic strategy moving forward is to follow public health advice and help flatten the pandemic curve.

James also said the provincial government is not considering layoffs or pay cuts in the public sector, as a number of employees are now working from home.

“These are difficult times and it is important that we recognize that and we provide the supports as we are doing through our programs for people and businesses who are doing everything they can to hang on through this crisis,” she said.

Earlier this year, Saskatchewan was anticipating a balanced budget. With the coronavirus pandemic having an effect on the world’s economy, however, the province is now bracing for a deficit.

Finance Minister Donna Harpauer says the government is expecting a decline in corporate taxes, personal income tax, PST and oil.

“We’re also concerned about any of our trade dependent industries,” Harpauer said.

“Not that they won’t have products, but with the global marketplace being shut down, we’re a trade-dependent province, and we’re not sure how successful trade will be in this province until boarders are lifted.”

The province isn’t ready to release their projections on how much the deficit will be, but Harpauer promised the number will come in a day or two along with the 2020-21 revenue estimates.

On Tuesday, Moody’s Investors Service projected the province will record moderate deficits of three to 10 per cent of revenues in 2020-21 and 2021-22.

1:19
3 new coronavirus cases reported in Saskatchewan, total rises to 304

More specifically, Moody’s estimates an 8.1 per cent deficit of revenue for 2021. However, without the 2020-21 revenue estimates, it’s unclear how much of an impact 8.1 per cent will be.

The deficit is being attributed to the decline in oil prices, and the coronavirus pandemic which has resulted in higher spending in both health care and social transfer. For example, additional support for small businesses has cost the province $50 million.

Harpauer says it could take years to recover from this year’s deficit, as the province will have to come up with a plan to go back to a balanced budget.

This could mean no new funding in health care, education and social transfers.

“I think that we’re not going to review slashing and burning of programs, we just have to be very mindful and diligent on our spending,” Harpauer said.

“But we’ll be able to get our way out of the deficit position as we move forward.”

Earlier this week, Moody’s maintained Saskatchewan’s Aaa credit rating, citing the province’s $1.3 billion cash surplus and its fiscal position following several years of economic growth.

“That credit rating is very important. It also builds investor confidence in the province.”

Despite a loss in revenue, the province does not expect to cut any money from its $14-billion spending plan for 2020-21 that was submitted to the legislature on March 18.

“We are well-positioned to manage through this challenging time as we provide the additional resources and supports that are needed to address the health and economic challenges of the current pandemic,” Harpauer said.

“Moving forward, our government’s priorities will continue to be the safety, health, and economic well-being of Saskatchewan people.”

Questions about COVID-19? Here are some things you need to know:

Health officials caution against all international travel. All international travellers returning to Saskatchewan are required to self-isolate for 14 days in case they develop symptoms and to prevent spreading the virus to others.

Symptoms can include fever, cough and difficulty breathing — very similar to a cold or flu. Some people can develop a more severe illness. People most at risk of this include older adults and people with severe chronic medical conditions like heart, lung or kidney disease. If you develop symptoms, contact public health authorities.

To prevent the virus from spreading, experts recommend frequent handwashing and coughing into your sleeve. They also recommend minimizing contact with others, staying home as much as possible and maintaining a distance of two metres from other people if you go out.

For full COVID-19 coverage from Global News, click here.

Ontario Finance Minister Rod Phillips said Thursday he wants to see insurance companies giving drivers breaks on their premiums that reflect the “devastating impact” of the COVID-19 pandemic.

He met last week with the CEOs of the major insurance companies and said people are driving less and therefore having fewer collisions.

“The point I made to all of them is we’re in unprecedented times and there’s unprecedented pressure on Ontario families, and of course that includes drivers, and that their responses needed to reflect those times and that we would do what we need to do from a regulatory point of view to get out of the way,” Phillips said. 

Some companies have already announced discounts for customers, including Allstate Insurance Co. of Canada, which is giving all of its drivers a “stay at home payment” of about 25 per cent of their monthly auto premium.

CAA Insurance announced Thursday that a 10-per-cent reduction for a year for both new and existing customers, once they renew, will be automatically applied.

Many other companies are offering to adjust premiums for customers, but Phillips said he would like to see them being proactive.

“I’m waiting for some details — I’ve learned to read the small print when it comes to auto insurance, but I think the initial response has to be one that reflects the challenges people are facing,” Phillips said.

“I reminded the CEOs, as I do with all businesspeople, that the people who they’re dealing with now have been their customers for the last five years and they’ll probably be their customers for the next five years, so it’s very important and we’re all going to remember how people were treated.”

The Insurance Bureau of Canada said its member companies are offering reductions for the next 90 days that could result in $600 million in savings to consumers, and said drivers should contact their insurance representatives.

NDP calls for 3-month discount of 50%

The NDP called on the Ontario government to mandate a three-month, 50-per-cent discount on auto insurance.

“As Ontarians listen to public health experts and stay home as much as possible, there’s little driving and few accidents happening in the province,” said auto insurance critic Tom Rakocevic.

“Drivers should get the benefit of that — not insurance companies.”

Aviva Canada said customers who have stopped driving entirely can reduce their premiums by up to 75 per cent, and people who are driving less may be eligible to save up to 15 per cent.

Most companies are also offering to defer payments for customers in financial difficulty and waive non-sufficient fund fees.

The value of the top corporate finance deals in British Columbia has skyrocketed in recent years, but that growth has almost vanished, according to data collected on Business in Vancouver’s top 100 corporate finance deals list (pages 8 and 10).

In 2018, the value of the average stock and debt deal increased 106% to $369.9 million compared with $179.6 million in 2017.

Over the past year, that growth slowed significantly to 1.5% as the total barely budged to $375.6 million.  While the average deal value on the list grew, the median deal value as well as both the largest and smallest stock and debt deal value fell.

The median deal value dropped 44.4% to $85.3 million in 2019 from $153.6 million in 2018. This suggests that the list’s larger corporate deals grew while smaller deals lower on the list declined in value.

The value of the top mergers and acquisitions (M&As) suffered a similar fate. 

Both their median and average values peaked in 2018 and fell last year. The average M&A deal value dropped 36% to $619.2 million in 2019 down from $968.2 million in 2018. The median M&A deal value fell 56% to $229.4 million in 2019 from $521.5 million in 2018.

The gap between the average M&A value and the median M&A value has grown since 2015, when the median deal value was 75% of the average deal value.

In 2019 the median deal value was 54% of the average deal value. This suggests that bigger deals are getting bigger while smaller deals have remained largely static.

Despite the large decline in the average and median value of the list’s M&As and the drop in the median value of  the biggest stock and debt deals, the average and median value of these deals is still above 2017 levels.

Most of the growth in corporate finance deals occurred in 2018, where the average deal value surged compared with 2017.

The value of deals in 2019 could be a return to more typical levels. The year’s average M&A deal value was 49% larger than the average deal value in 2017.

The growth in that value from 2015 to 2017 was 57.1%.

Podcast: How blockchain could revolutionize green finance in Asia

ADB Institute | March 25, 2020

Policy makers and researchers recently met at ADBI for a workshop examining green infrastructure investment, policy challenges, and economic implications in Asia. Marco Schletz from the United Nations Environment Program Technical University of Denmark Partnership was among the experts featured at the event. Afterwards, Schletz sat down with Asia’s Developing Future to discuss how blockchain and tokenized securities could revolutionize green finance and inclusive development in the region.

The views in this podcast do not necessarily reflect the views and policies of the Asian Development Bank Institute (ADBI).

Read the transcript
bit.ly/2QIe9TH

Policy makers and researchers recently met at ADBI for a workshop examining green infrastructure investment, policy challenges, and economic implications in Asia. Marco Schletz from the United Nations Environment Program Technical University of Denmark Partnership was among the experts featured at the event. Afterwards, Schletz sat down with Asia’s Developing Future to discuss how blockchain and tokenized securities could revolutionize green finance and inclusive development in the region.

Marco Schletz from the United Nations Environment Program Technical University of Denmark Partnership

Blockchain is an innovative data structure that is used to verify and store data across a distributed network of actors. All transactions are collected in so-called blocks. Tokenized securities is an innovative financing mechanism that is based on blockchain technology. Because all transactions are traced on the blockchain and documented, it offers transparency for the entire ecosystem of investors that are part of the investment process. And that makes it possible for everyone to verify that all the transactions are happening, and that the data is true.

It also enables you to disintermediate from commercial banks because you can offer your project on a global base and everyone can participate in it. Whereas in current settings, you’re often depending on your commercial bank as the sole funding opportunity. This also increases liquidity because it is a global investor base, you can basically approach with your project. Tokenized securities are particularly relevant for green assets. If you compare, for example, a green bond with a normal bond, green bonds pay a premium for certification costs and these costs can pose a financial barrier to project development if you look at small and medium-sized projects. So there blockchain technology is very applicable.

Dave Schurman, FirstOntario’s chief operating officer was here this morning with advice on what to do with RRSP’s, pensions and other investments that have been impacted by COVID-19.

The finance minister of the regional state of Germany’s financial centre Frankfurt, Thomas Schaefer, committed suicide.

In a joint statement from police and the public prosecutor’s office on Saturday, Schaefer – who led the finance ministry of Hess for almost a decade – was found dead next to railway tracks near Frankfurt.

Authorities gave no information official motive behind Schaefer’s death, concluding he killed himself due after “extensive crime scene work, the questioning of numerous witnesses, the situation on site and the technical and forensic evaluations and investigations,” Reuters reported.

However, on Sunday, German State governor Volker Bouffier said the Schaefer’s death was linked to the COVID-19 crisis.

Bouffier said Schaefer stressed about whether “it would be possible to succeed in fulfilling the population’s huge expectations, particularly of financial help.”

“I have to assume that these worries overwhelmed him,” Bouffier said, as reported by The Associated Press. “He apparently couldn’t find a way out. He was in despair and left us.”

The 54-year-old Schaefer was expected to succeed Bouffier if he decided not to seek re-election in 2023.

Group of Seven finance chiefs urged oil-producing nations to support international efforts to stabilize world markets rocked by the coronavirus crisis.

The call comes as oil prices are battered both by the collapse in demand caused by shutdowns to combat the virus and a brutal fight for market share that has seen leading exporters ramp up production.

“We call on oil-producing countries to support international efforts to promote global economic stability,” the institution said in a statement.

Crude prices remain near the lowest since 2003, losing about half their value this month because of the sudden halt in transportation and a flood of surplus supply.

Saudi Arabia and Russia are the leading antagonists in a price war following a dispute earlier this month over how to deal with the demand slump shattered their three-year alliance of market management.

The G7’s request follows a range of attempts at mediation that so far have failed to yield results. While oil prices in the US$20s offer consumers some solace as the economy freezes up, they also threaten the viability of producers such as America’s shale drillers.

President Donald Trump said last week he might intervene in the clash between Riyadh and Moscow, while U.S. Energy Secretary Dan Brouillette said on Tuesday that one potential option could be an alliance between the U.S. and the kingdom. The head of the body that regulates Texas’s oil industry has even discussed cooperation with the chief of the OPEC cartel.

VICTORIA (NEWS 1130) – B.C. will likely now have a deficit for the 2019/2020 fiscal year, the provinces finance minister announced Tuesday.

Carole James says the focus remains on protecting the health and safety of all people, but there’s no doubt businesses are taking a hit.

“It’s no question it’s going to have a big impact. It is likely we will have a deficit. I think there’s no question about that. I think the specifics and the numbers, it’s just too early. It’s changing every day. I think that’ll be an economic update that I will need to bring forward,” James said. “I’ll be updating people as we go along, but it’s a little too early to get into the specifics.”

James said details will likely come in an economic update at a later date.

In February, James forecast a modest budget surplus of $203 million.

But the COVID-19 pandemic has changed that.

On Tuesday alone, Ontario, Alberta and B.C. declared a public health emergency. Ontario also announced it’s first coronavirus-related death. In B.C. three COVID-19 related deaths occurred bringing the provinces total to seven.

Prime Minister Justin Trudeau also announced a package of financial supports to help Canadians struggling amid the COVID-19 pandemic could come as early as Wednesday.

B.C. Premier John Horgan said later he hopes any funding update from Ottawa on Wednesday will include detailed measures to help workers worried about losing wages. He also announced the suspension of all K-12 schools in the province until further notice.

Horgan said employment insurance programs in B.C. are now being extended, with support from opposition parties in the Legislature.

Meanwhile, the City of Vancouver followed the advice of B.C. Provincial Health Officer Dr. Bonnie Henry and ordered all restaurants and bars to close on St. Patrick’s Day, to restrict gatherings of 50 people or more.

“Following Dr. Henry’s advice is the very best way we can protect province and our communities and our economy,” James said. “British Columbia has a strong economic foundation. But there is no question that COVID-19 will have global impacts and, of course, British Columbians will have impacts. Our economy in B.C. will be impacted. Our economy in B.C. will be impacted.”

James said the province will to work on an economic strategy to ensure supports and services are in place to protect the health and safety of British Columbians. The province is working with the federal government to bring in immediate relief for people and business, as well as working with the businesses community to build a plan to help B.C. recover