March 2010

[Ally]

As Saudis court Asia, U.S. thirst for Canada`s oil grows deeper

Saudi Arabia is increasingly targeting its oil exports to fast-growing Asian economies, and Canadian producers are picking up the slack as Saudi exports to the U.S. tumble.

During a state visit by Indian Prime Minister Manmohan Singh, Saudi officials this week committed to doubling the volumes the world`s second-largest producer ships to India, where demand is booming.

Saudi Arabia has also increased exports to China, which has overtaken the United States as the kingdom`s top oil customer. Both Asian countries are also working with Saudi Aramco to build refineries to feed their growing appetite for fuel.

At the same time, Saudi exports to the United States plunged last year. By December, monthly U.S. imports from the kingdom were down 40 per cent compared to December, 2008, according to Washington`s Energy Information Administration (EIA).

The rapid shifts in global crude markets underscore the uneven growth between emerging Asian economies and mature developed ones. It also suggests the U.S. may be succeeding in reducing its reliance on Middle East oil – a key policy goal of President Barack Obama as well as his predecessor, George W. Bush.

Read the full article here.

 

[Ally]

Now it`s time to round up all those tax receipts

Now it`s time think about the annual tax-filing season, which culminates with the deadline of midnight April 30. This year, that falls on a Friday.

At this point, it`s too late to change the amount you owe for the 2009 tax year. The last opportunity to lower your taxable income was to make an RRSP contribution by the deadline now passed.

Job one now, then, is rounding up documents. The key one for employees is the T-4 slip.

Hopefully, you`ve been filing away the information slips dribbling in to your mailbox since the year began: RRSP contribution receipts, donation receipts from churches and charities and T-3 and T-5 slips showing taxable investment income earned in 2009.

You won`t receive slips for investments held in RRSPs or tax-free savings accounts, but will receive them for interest, dividends and capital gains generated by non-registered investments. T3s associated with trusts may be issued as late as the end of March, so hold off filing until your receive it.

Read the full article here.

 

[Ally]

Diversify your mortgage as insurance strategy

You can`t decide what to do with your mortgage? The good news is you don`t have to.

Anyone negotiating a mortgage today is labouring over whether to lock in their rate. Yesterday, the Bank of Canada reiterated its pledge to keep its key lending rate at a record low until July, but has not committed to anything past the end of the second quarter. And that has everybody guessing.

It`s tempting to stay variable. The banks are back to discounting and variable rate products tied to the current prime rate of 2.25%, can be negotiated for as low as 1.95%. Meanwhile, if you do want to lock in the rate, you are guaranteed a rate as low as 3.75% for the next five years.

So, what to do? How about going long and short?

York University professor Moshe Milevsky, author of Your Money Milestones, says in many cases, debt diversification does not make sense. For some, it means spreading out their liabilities across everything from mortgage to lines of credit, credit card debt to student loans.

Read the full article here.

 

[Ally]

Bank of Canada hints at rake hites on the horizon

The Bank of Canada took its first steps Tuesday toward returning the country to more normal interest-rate levels by signalling a more hawkish tone on inflation and acknowledging the economy is performing better than expected on "vigorous" consumer demand.

The messages were conveyed in the bank`s latest interest-rate statement, which kept its record-low benchmark rate of 0.25 per cent and pledged to keep it there at least until July.

However, most bank watchers took note of subtle changes in the statement, compared with previous rate announcements, and there was enough there for them to begin the countdown to hikes.

"I suspect [Bank of Canada governor] Mark Carney and company are starting to feel the urge to tighten, not a strong urge now, but an urge nevertheless," said BMO Capital Markets senior economist Michael Gregory

Among the key changes was a declaration from the bank that the risks to its inflation outlook are "roughly balanced," and no longer "tilted slightly to the downside," language that suggests deflation is no longer a concern and that price increases are creeping to a level that may prompt a response.

Read the full article here.

 

[Ally]

Asia acts over fears of property bubble

SINGAPORE - Asian countries fearing a disastrous U.S.-style property bubble are striving to cool down their real-estate markets as the region powers out of the global financial crisis.

Policymakers are worried that excessive exuberance could push property prices far above their real value, only to crash and bring down with them banks that lent money too freely and individuals who borrowed beyond their means.

"It is better to pre-empt a bubble than wait for it to get serious and have to take more drastic measures," Singapore Prime Minister Lee Hsien Loong said last month after the city-state took fresh measures against speculation.

Singapore was one of the countries hit by the 1997-1998 Asian financial meltdown. That crisis followed a property crash, leaving a blighted landscape of unfinished projects across the region and banks gasping for lifelines.

Problems in the U.S. housing market had set off the devastating financial firestorm that swept across the world in late 2008 and lasted well into 2009.

Read the full article here.

 

[Ally]

Federal Budget CommentaryProvided by George Dube & Associates

Hmmmm…. I guess we must wait and see

It is difficult to judge the quality of this budget in our minds, and perhaps that is a good thing given the financial condition of the country. While there were a few surprises, both positive and negative, with one primary exception most changes seem reasonable from a tax perspective. Unquestionably, similar to every budget before and probably every future budget, there were a wide assortment of groups that received funds, and a wide assortment did not receive what they expected. We were of course shocked when the opposition parties did not like the budget, probably the first time this has ever taken place…since the last budget anyway. The focus of the budget clearly was on reeling in the national debt without raising tax rates or reducing provincial transfer payments. Given the enormity of the deficits and status of the economy, there was probably little that could be expected for the 2010-2011 year. The government forecasts that they will essentially have the deficit under control by 2014-15 and presumably a surplus for 2015-16. Then, there will be a national debt to worry about.

The primary methodology of solving the deficit will be waiting for the economy to improve and thus increase taxation – while cutting back or rather holding the growth in many expenditure areas. The hmmmm…wait and see is thus needed to see how over some time whether these plans are realistic. Concerns are well founded given the exceptionally poor ability of the Harper government to hold the line on expenditures before the recession. Further, it took roughly 15 years to progress as a country to the debt level we were at, and only 3 years to completely destroy/reverse all of this progress and make the problem bigger than we started (smaller percentage wise). In our minds, clearly not enough financial preparation for the recession, excessive measures to deal with the recession or more likely some combination of the two.

The purpose of this memo is to highlight some of the areas that we think will affect our clients and friends of the firm. Not all subjects will be addressed, and those that are will be done in a very brief nature. Should you have any questions, please contact Joseph Martins [email protected] or George Dube [email protected] of our office.

Tax rates
There were no changes to personal or corporate tax rates. This upset some who thought that the government should reverse scheduled corporate tax decreases. Fortunately in our opinion there were no changes.

Business taxes
Big Brother is coming
It`s been no secret that I am not a fan of the legislation introduced by Quebec last year related to effectively asking taxpayers to identify themselves for special audits. After again recently ridiculing this legislation at a presentation, I see that the federal government is now looking to implement a similar version, although they claim it will not be as severe as the Quebec changes. Essentially in certain situations taxpayers will be required to identify for the government when they complete an "aggressive" tax transaction and the details thereof. This self-audit process in our mind is quite frightening. Yes the initial targets seem in most cases to be reasonable (such as the "charity" schemes). However, our concern is that this is similar to the original implementation of the General Anti-Avoidance Rule (GAAR) where we were basically told that while the legislation could be interpreted very broadly, as the government, we would never get too carried away and we could trust them (GAAR is the name given to legislation that allows the CRA to examine a transaction or series of transactions and recharacterize the nature of the transactions if the CRA believe there was too much of a tax advantage realized by the transaction(s) despite the fact that they would otherwise be perfectly legal). Well, look what happened in only 20 years. We don`t know whether we are coming or going with respect to GAAR and where the lines are. We went from slightly nervous to draconian. What next, will the government just let individual taxpayers know what they think they should really pay and forgo the bother of the Income Tax Act?Green energy
A handful of changes were made to encourage further investment in assets used in energy generation, conservation and renewable projects through changes to the CCA rates and classes.

Employment insurance premiums
For some reason, a big deal was made out of holding rates steady – which to the best of my recollection has been done pretty consistently each year since I`ve been practicing. Maybe I missed a year or two, but, this is standard practice to announce around December what the rates for the upcoming year will be and then maintain the rates.

Interest on overpaid taxes
To help combat the complaints of the auditor general, the government will reduce the refund interest it provides to those who have overpaid their taxes by two percentage points (the rate is adjusted quarterly based on three month t-bill rates. We can thank the AG in unison now.

Group taxation
A welcome initiative is the future consideration of providing an easier and more acceptable methodology of allowing companies within some form of an associated group to trade losses. In other words, where one company is making $100,000 of profits but a separate company is losing $100,000, currently taxes would be paid by one whereas nothing could happen in the second company. In fairness, it would seem more appropriate to effectively consolidate the net results to produce a nil profit for taxation purposes. While this initiative may go nowhere, we are optimistic that changes will result without us having to complete a handful of techniques to artificially get some or all of the same result.

SIFT (Specified investment flow-through) conversions and losses
Certain partnerships and trusts will be converted to corporations and take advantage of existing rules to where the conversion is done with an existing company that has losses previously generated. The end result is that the losses can be effectively transferred for the combined entity in a manner that could not be achieved where two corporations were to attempt the same. This strategy will no longer be possible.

Personal tax measures

Stock option changes
Three changes have occurred here. First, the $100,000 deferral that some people were allowed to elect at on an annual basis has been eliminated. Not very good. Second, for those that have made these elections in the past and now the options are underwater, the losses will be able to be considered such that the ultimate benefit does not exceed the disposition value of the stock. This is good. Lastly, in some cases a structure existed to allow corporations to receive a deduction for what was effectively an option amount while the individual could receive a 50% deduction. The double dipping will be eliminated for the future. This seems only fair.

Scholarship changes
Generally scholarships can be received tax free. In the future this will not be the case for post-doctoral work as this is non-degree/diploma oriented. Restrictions will also be placed on the amounts where part-time studies are underway such that the tax free portion will be no higher than the tuition and certain direct costs. Exceptions will continue for those in part-time studies due to some forms of physical or mental impairment.

Disability rollovers>Upon death, an RRSP can be transferred on a tax free basis provided certain requirements and limitations are met if the funds are transferred to a registered disability savings plan.Medical disability limitationsCosmetic procedures will no longer qualify for the medical tax credit unless there was for example a need for reconstructive surgery.Shared benefits for Canada Child Tax Benefit, Universal Child Care Benefit and children`s GST/HST Tax Credit
Separate individuals who share custody of a child will be allowed to split the benefits between these as compared to having only one parent claim the amounts.

Universal Child Care Benefit taxed in children`s hands
It will be possible for single parents to have the $100 monthly payments taxed in the children`s hands which would in most cases eliminate any taxes on the payments.

Charities
A host of changes will amongst other things remove the 80% quota disbursement rules and amend other disbursement rules.

Custom tariffs
In order to encourage investment in certain machinery, manufacturers will be subject over time to a reduced or eliminated the tariff on approximately 1,500 different assets.

Electronic notices of assessment or reassessment
Shortly we will be able to receive such notices and others electronically.

International tax changes

Canadian shares owned by non-residents
Many non-residents have to go through a series of steps in order to sell their shares of certain Canadian companies. Some of these rules and related taxes will be removed and some idiosyncrasies within the system fixed.

Non-resident trusts and foreign investment entities
Further changes to a variety of rules introduced over the past several years are newly proposed and the government will be considering through consultations revisions to the latest rules. These rules in combination with those introduced for comment on December 18th, 2009 are expected to settle to a large degree many of the outstanding issues for Canadian taxation of foreign assets. These rules will be quite important to our clients who are for example investing in foreign real estate. We will be providing further guidance on these after April and when the commentary period has concluded. Some of the changes appear positive, some not as positive.

Contact
Phone: 1-866-849-1234
E-mail: [email protected]

 

[Ally]

More Canadians plan to buy a new home by 2010, says RBC study

TORONTO - A new study by the Royal Bank suggests more Canadians are very likely to buy a new home in the next two years.

Ten per cent of the 2,047 people surveyed for the 17th annual RBC home ownership study said they plan to buy a home by 2012 - up from seven per cent two years ago.

The bank says 15 per cent of those in the 18-to-24 bracket say they are very likely to buy - almost double the level recorded in 2009.

The RBC study also found that 91 per cent of Canadian homeowners believe a home is a good investment, the highest level in 12 years.

One-quarter of those surveyed, 26 per cent, said they expect their home to be their primary source of income when they retire.

In addition, 44 per cent of Canadians who plan to buy a new home in the next two years plan to take a fixed rate mortgage.

Read the full article here.

 

[Ally]

Starts continue rebound

The national housing agency says housing starts rebounded in the second half of 2009 and will further strengthen this year.

Canada Mortgage and Housing Corp.`s first-quarter market outlook predicts housing starts will range between 152,000 and 189,300 units in 2010, up from 149,081 in 2009.

And the agency says housing starts will number between 156,400 and 205,600 units in 2011.

In the Toronto Central Metropolitan Area (CMA), housing starts are forecast at 33,700 in 2010, up from 25,949 in 2009. In 2011, starts will be in the 30,300 range, says Ontario senior market analyst Shaun Hildebrand.

CMHC`s chief economist, Bob Dugan, says housing markets will benefit from improving economic conditions and low mortgage rates.

He says recent federal government measures will help moderate housing activity as some potential buyers will have to save a larger down payment or consider less-expensive homes.

Read the full article here.

 

[Ally]

No one`s getting rich

One of the fundamental truths of human nature is that no one ever admits to buying a bum stock. You can hear the evidence at your next dinner party. As the Shiraz pours in and the boasts pour out, you`ll hear people brag about buying penny stocks that tripled in value or making a killing on Brazilian mutual funds. If you took everybody at his or her word, you would retreat to the kitchen and drink yourself into oblivion.

It would be obvious that a) you are cursed with a rare genetic inability to recognize a good investment, and b) that you are falling far, far behind your friends and family.

Before you start drowning your sorrows, let me offer you a swig of reality. Despite all the big talk around you, you are doing better than you think. In fact, if your portfolio has managed to generate more than 3%-a-year returns over the past decade, you are an above-average investor. Surprised? So are most people. But the numbers tell the tale. Based on market averages, a classic portfolio composed of 40% Canadian bonds and 60% stocks (split equally among Canadian, U.S. and international holdings) would have eked out an annual return of 4.4% over the past 10 years.

A 4.4% return isn`t exactly the stuff of dreams, and the sad truth is that most of us didn`t achieve even that mediocre return. Canadians tend to invest through mutual funds and most funds charge a couple of percentage points a year in management fees. Those fees would have reduced that 4.4% return to something more like 2.4%. Yes, you read that right. If you want to grow truly depressed, we could factor in the additional bites of inflation and taxes, but let`s leave that dismal exercise for another time. The point is simply that the past decade has been miserable for investors.

The next decade might be better, but smart investors won`t count on it. They`ll use the lessons gleaned from the past 10 years to ensure that no matter what happens, they`ll be well prepared. The first lesson is that costs matter. If the market is only going to generate a 4% or so return, you don`t want to spend half or more of your meagre profits on fees. Instead of investing through mutual funds that charge you 2% or more in management expense ratios (MERs), you should look for funds that charge 1.5% or less. Better yet, choose exchange-traded funds (ETFs), like the ones from iShares or Claymore Investments. Most will ding you for less than 0.5% a year.

Read the full article here.

 

[Ally]

Thomas Beyer in February Edition of the Western Investor

Please click here for the article.

 

[Ally]

Canada housing starts jump 6.1% in February

OTTAWA — Home construction rose by a more-than-expected 6.1 per cent to 196,700 units in February, Canada Mortgage and Housing Corp. reported Monday.

That was up from 185,400 units in January and above economists` forecasts of 190,000 units for February.

"The gain in February housing starts was concentrated in the multiple starts segment, particularly in Toronto," said CMHC`s chief economist Bob Dugan.

Urban housing starts were up nine per cent from January to 179,100 units on a seasonally adjusted basis, with multiple units rising 19.1 per cent to 89,900 and single starts increasing 0.5 per cent to 89,200 units.

Ontario recorded a 28.6 per cent gain in February, while Atlantic Canada rose 14.3 per cent, the Prairie region increased 10.8 per cent and British Columbia was up eight per cent. Meanwhile, Quebec saw housing starts decline 14.1 per cent.

Read the full article here.

 

[Ally]

Detroit wants to save itself by shrinking

DETROIT - Detroit, the very symbol of American industrial might for most of the 20th century, is drawing up a radical renewal plan that calls for turning large swaths of this now-blighted, rusted-out city back into the fields and farmland that existed before the automobile.

Operating on a scale never before attempted in this country, the city would demolish houses in some of the most desolate sections of Detroit and move residents into stronger neighborhoods. Roughly a quarter of the 139-square-mile city could go from urban to semi-rural.

Near downtown, fruit trees and vegetable farms would replace neighborhoods that are an eerie landscape of empty buildings and vacant lots. Suburban commuters heading into the city center might pass through what looks like the countryside to get there. Surviving neighborhoods in the birthplace of the auto industry would become pockets in expanses of green.

Detroit officials first raised the idea in the 1990s, when blight was spreading. Now, with the recession plunging the city deeper into ruin, a decision on how to move forward is approaching. Mayor Dave Bing, who took office last year, is expected to unveil some details in his state-of-the-city address this month.

"Things that were unthinkable are now becoming thinkable," said James W. Hughes, dean of the School of Planning and Public Policy at Rutgers University, who is among the urban experts watching the experiment with interest. "There is now a realization that past glories are never going to be recaptured. Some people probably don`t accept that, but that is the reality."

Read the full article here.

 

[Ally]

Macroimprudential monetary policy

For some time now global economic theory has been more or less settled on the idea that the best inflation rate is low inflation, at least 2% or possibly even zero. But now, suddenly, the financial world is bristling with the idea that in these troubled times the world economy needs a fresh approach to inflation, even a new target range of, say, 4%.

The source of this proposal is the International Monetary Fund, home of the world`s greatest noodlers on how to impose a sweeping new era of global macroprudential economic regulation aimed at avoiding future economic crises. Few people thought that what the world needed to create economic stability was a steady stream of destabilizing inflation, but now that the IMF has unleashed the idea it has been slowly traveling through the lower reaches of the economic theocracies and is now making its way into the capital markets as a serious policy alternative.

This impausible debate hasn`t yet reached Canada yet, where the Bank of Canada is formally committed to 2% inflation. But if the idea that higher inflation is good policy should gain traction elsewhere in this crazy new Keynesian world, Canadian monetary policy--not to mention the Canadian dollar, fiscal policies and investment strategies--would be thrown for a loop, which is economic jargon for shock and chaos. Do you like your Canadian dollar at US$1.15 or US$1.25?

It all began a month ago when Olivier Blanchard, chief economist of at the IMF, co-authored a paper, Rethinking Macroeconomic Policy, in which he and two colleagues mused about the possible benefits of a deliberately high-inflation policy. The paper mentioned 4% as a specific target, a shocking number in itself. Two European bankers, Alex Weber and Phillipp Hildebrand, tackled the Blanchard proposal in a recent Wall Street Journal commentary (reproduced elsewhere on this page today). As they put it, the IMF`s chief economist is promoting a monetary illusion.

The destructive potential and risks associated with a deliberate unleashing of 4% inflation are alarming enough--money loses half its value every 10 years, robbing citizens and distorting economic calculation. High inflation also threatens currency and price shocks across the global economy. These are grounds enough for rejecting the idea. But there are other equally powerful arguments against the Blanchard inflation regime, arguments embedded in the IMF paper.

Read the full article here.

 

[Ally]

Why financial forecasts fail

Why did no one see the subprime mortgage crisis coming? Because forecasting doesn`t work nearly as well as we`d like to believe. Statistical modeling helps extrapolate patterns from past data, but it doesn`t predict nearly as well.

What are businesses to do, then, in the face of uncertainty? They must aim to be better prepared for disasters.

Think of how the scientific community treats earthquakes. Scientists accept that it`s impossible to predict the timing and location of large earthquakes. And yet the intensity and frequency of earthquakes exhibit remarkably consistent patterns. In any given year there are roughly 134 earthquakes worldwide measuring 6.0 to 6.9 on the Richter scale, with approximately 17 having a value of 7.0 to 7.9 and one having an 8.0 or above.

However, this statistical regularity doesn`t equal predictability. Based on historical data, scientists can say with reasonable confidence that the next 35 years will bring about 44 earthquakes with intensities of 7.5 to 7.6 on the Richter scale. There are places more prone to earthquakes, but still, seismologists don`t know when or where they`ll occur. Will they occur in populated areas? Will they also cause tsunamis? Will they cause large-scale death and destruction?

In the business world, there are two general types of uncertainty: those that can be statistically modeled using normal distributions and those things that cannot. We can see fluxes in a market, but can`t model unexpected events like the steep increase in oil prices in 1973-1974, or more recently in 2007-2008. In general, forecasters treat these events as outliers that they have to ignore, since they can`t model them.

Of course, forecasters have produced excellent work over the years--both practical and academic. They can look at modeled uncertainty that can be assessed with precision and help people make better decisions. It`s simply not set up however to deal with this latter kind of uncertainty, which is also a fact of life in business.

People still have to make decisions based upon what they think will happen. The best advice, then, is to consider these three A`s: accept, assess, and augment.

Read the full article here.

 

[Ally]

Improved jobs data unlikely, StatsCan says

OTTAWA - Canada`s chief statistician said yesterday he wants to produce more and better data to help policy-makers better understand the post-recession labour market, but a budget freeze makes that look unlikely.

Munir Sheikh, an economist and former finance ministry official who now heads Statistics Canada, said he is aware "we have huge gaps between what is needed out there and what we produce."

But without a green light from the government and some extra money, he cannot satisfy an increased demand for more detailed reports on changes in the job market, he told Reuters in an interview.

"You must have seen the new budget, which effectively cuts our budget," he said. "Any cost measures ... have to be absorbed by the departments so we have to think about what is the best way for us to meet this financial challenge."

The Conservative government`s budget, released last Thursday, freezes the budgets of all government departments at 2010-11 levels to help eliminate the budget deficit.

As politicians and researchers grapple to address issues such as falling productivity and a shift away from manufacturing jobs to services, accurate and timely data on factors like job vacancies, hiring and education trends has become more crucial.

Read the full article here.

 

[Ally]

Loonie gains on Aussie dollar

The Canadian dollar is overtaking the Australian dollar among commodity currencies as the safety of Canada`s banking system and ties with the U.S. economy spur investors to buy the loonie.

Options show demand for the right to sell the so-called Aussie and buy the Canadian dollar reached the highest last month in almost a year. A measure of traders` expectations for price fluctuations indicates the loonie is the most secure bet relative to the Australian dollar since July.

At the start of 2010, the Aussie and loonie approached parity with the greenback as the revival in U.S. growth spurred demand for Canada`s energy exports while China`s expansion supported Australia`s iron ore and coal.

The Aussie lost momentum as China restrained lending to cool its economy while crude oil, Canada`s biggest export, surged to US$80 a barrel.

"There`s a tremendous amount of positive sentiment for Canada right now," said Camilla Sutton, director of currency strategy in Toronto at Bank of Nova Scotia, the second-most accurate currency forecaster in the year and a half ended in June, according to data compiled by Bloomberg.

Read the full article here.

 

[Ally]

Ontario drives housing starts to 2008 levels

OTTAWA - New-home construction rose to almost 200,000 units in February, a light at the end of the tunnel for buyers seeking relief from a red-hot sellers` market, analysts say.

Canada Mortgage and Housing Corp. reported yesterday that housing starts climbed 6.1% in February to a seasonally adjusted 196,700 units, the highest level since October 2008, driven largely by a spike in Ontario, where starts soared 28.6% from the month before.

Homebuilders in Ontario and British Columbia are racing to put supply on the market before the harmonized sales tax kicks in on July 1, said economist Pascal Gauthier of TD Economics.

Added pressure is coming from buyers concerned about tighter qualifying standards on mortgages, which take effect April 19, and higher borrowing costs expected in the second half of the year.

But February`s housing starts show that supply is finally firming up at the same time that demand is poised to ease, Mr. Gauthier said.

"Come the second half and into 2011, it`s likely to be a friendlier environment for buyers ... just on the supply/ demand balance," he said.

Read the full article here.

 

[Ally]

Canada`s foreign-born population expected to boom: Statistics Canada diversity report

In 20 years, nearly half (46%) of Canadians over the age of 15 will be born somewhere else in the world, or have at least one foreign-born parent, according to new Statistics Canada diversity projections released this morning.

By 2031, up to 28% of the population could be foreign-born, surpassing the 20th century record set between 1911 and 1931, when 22% of the population was born outside the country, the report notes.

And 47% of second-generation Canadians will belong to a visible minority group — almost doubling the proportion of 24% reported in 2006, when 5.3 million people in Canada belonged to visible minorities.

"Between now and 2031, the foreign-born population of Canada could increase approximately four times faster than the rest of the population," the report says. "The population of foreign-born could reach between 9.8 million and 12.5 million, depending on various immigration assumptions."

The vast majority (96%) of visible minorities are expected to live in Canada`s cities. In Toronto, fully 63% of the population could be made up of visible minorities. The same could be true for more than one half of Vancouver`s population (59%) and 31% of Montreal.
 The South Asian population is expected to remain Canada`s largest visible minority group and could reach 3.2 million people. The Chinese population is expected to grow to up to three million.

Read the full article here.

 

[Ally]

Ottawa may sell offshore oil stake

When a politician says: "that`s a good question," it`s a rule of thumb that he or she is about to blurt out something they didn`t intend to.

Jim Flaherty was knocked off his talking points and bought time by resorting to the telltale phrase during an interview on CBC Radio, when the sale of federal government assets was raised.

"There`s been a lot of work done on that.... That`s a good question (chuckle). We`ve done a lot of work on that, and there`s more to be said about that before too long," the Finance Minister said, in a moment of unusual candour.

It wasn`t entirely shocking news -- last year`s budget was clear about the potential for asset sales in businesses in which the government decided taxpayers didn`t need to hold an ownership stake. This year`s budget reiterated that divestment remains an option. But in the interview, the Finance Minister made clear there are "substantial opportunities" out there and, by his own account, they will be realized before long.

Given this year`s $54-billion deficit, and the government`s distaste for Crown corporations in general, it`s no surprise that the feds want to get out of certain businesses. But they profit only if the sale price exceeds the book value in the public accounts. Taxpayers could pay the price for bad deals for years to come, in the shape of reduced revenue.

Read the full article here.

 

[Ally]

More businesses expect to hire staff in coming months compared to `09

A "fair hiring climate" for Canada is expected in the second quarter of this year, according to an employer survey by staffing agency Manpower.

The results, released today, show a net positive outlook of seven per cent, seasonally adjusted, which is three points weaker than what the prospects were going into the current quarter but six points ahead of the outlook a year ago.

The survey results from about 1,900 employers, before seasonal adjustments, showed 17 per cent planning to add staff between April and June, six per cent expecting to cut, 75 per cent sticking with current head counts and two per cent unsure.

Byrne Luft, vice-president of marketing for Manpower Canada, said the quarter-to-quarter decline does not necessarily point to a weakening hiring climate.

The previous survey was taken near the end of budget cycles for many employers, and many also found they had some extra money left over for hiring, Luft said.

Read the full article here.