Good evening, let’s start with today’s top stories:
The federal government bet big on electricity in the 2023 budget. Finance Minister Chrystia Freeland’s main economic message was that the budget will position Canada to take advantage of a moment in which the U.S. and other democratic allies are seeking to green their economies, while reducing their supply chain dependence on China and Russia. Meanwhile, projections for economic growth have worsened since Freeland’s fall update and the government has abandoned its goal to balance the books within five years.
The key takeaways:
- Funding to fight foreign interference: Ottawa is creating an office to counter foreign interference and giving nearly $50-million to the RCMP to combat harassment of Canadians by powers such as China and Russia.
- Canada’s answer to U.S. green economy subsidies: The federal government is banking on a suite of new tax credits, a clean electricity grid and the carbon tax to spur the transition to a clean economy and counter vast subsidies rolled out by the United States that risk pulling capital south of the border.
- Dental care plan rises in cost: The cost of a national dental care plan has increased sharply from $6-billion over five years to $13-billion.
- Country’s fiscal anchor is under strain: the Canadian economy is expected to stall this year under the weight of higher interest rates and recent turmoil in the U.S. and European banking sectors has increased the odds of a more severe downturn. That, plus a raft of new spending announced today is undermining Finance Minister Chrystia Freeland’s commitment to keep the federal debt-to-GDP ratio on a declining path.
- More aid for Ukraine: Canada is lending another $2.4-billion to Ukraine, bringing total support for Kyiv to more than $8-billion since the war began.
- What does it mean for your wallet?: The Grocery Rebate is a onetime payment of cash to the 11 million lower-income people who receive the GST tax credit. The Tax-Free First Time Home Savings Account, announced in the 2022 budget, will officially launch on April 1. High-income households may end up paying more income tax. And there’s good news for your credit card customer loyalty points. Rob Carrick grades how the budget will affect your finances.
Read more:
- Andrew Coyne: If the government wanted to strangle economic growth, this is the budget it would produce
- Craig Alexander: As governments spend with deficit budgets, Canada’s debt grows in the trillions
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ALSO ON OUR RADAR
Quebec police officer killed: Quebec provincial police officer Sergeant Maureen Breau was killed and a male suspect was shot dead by police during an arrest attempt at a home in the province’s Mauricie region, about 100 kilometres northeast of Montreal, Monday night. The province’s police watchdog said Breau was stabbed while the suspect was being read his rights.
Americans turn to Canada for Ozempic: B.C.’s health minister said that almost one in five patients who were dispensed the diabetes and weight-loss drug from a B.C. pharmacy in January and February are U.S. residents. Of those prescriptions, 95 per cent were written by one or more prescribers who identified themselves as a practitioner from Nova Scotia.
Nashville shooting updates: The 28-year-old former student who killed three children and three adults at a Christian grade school in Nashville on Monday was under a doctor’s care for an “emotional disorder” and had purchased seven guns ahead of the shooting, the city’s police chief said today.
The latest in Asian politics:
- Tibetan leader testifies before U.S. lawmakers: Penpa Tsering, the head of the Tibetan government-in-exile, told a U.S. congressional hearing today that his people and culture will “die a slow death” if China does not change its policies towards them.
- Former Taiwanese president continues historic China trip: Ma Ying-jeou travelled to Nanjing and made a speech saying people on both sides of the strait “belong to the Chinese nation and are descendants of the Chinese people,” and preached unity “to pursue peace, avoid war and revitalize the Chinese nation.” Ma is the first former or sitting Taiwanese leader to visit China since the end of the Chinese civil war in 1949.
Russia targets Ivory Coast to expand military influence in Africa: The Kremlin has made no secret that it has a strong interest in expanding its military influence to new territories in Africa, and any such expansion would come at France’s expense. As of now, Wagner Group, a Russian military contractor with close links to the Kremlin, has replaced France as the main foreign security force in the former French colonies of Mali and Central African Republic.
- Latest in Ukraine: Russian forces are still edging forward in the shattered eastern Ukrainian city of Bakhmut, a Moscow-installed official said on Tuesday, but British intelligence said a Russian tank division had suffered heavy losses in the nearby town of Avdiivka.
Dismissed Israeli defence chief to remain in office: The Israeli defence chief whose firing by Prime Minister Benjamin Netanyahu brought the country’s constitutional crisis to a boil is staying in office until further notice, aides said on Tuesday, suggesting government indecision on how to proceed.
- Marsha Lederman: For this Canadian Jew, my relationship with Israel is complicated
Deadly fire at Mexican migrant centre near U.S. border: Migrants fearing deportation set mattresses ablaze at an immigration detention center in northern Mexico, starting a fire that left at least 40 dead, the president said Tuesday following one of the deadliest incidents ever at an immigration lockup in the country.
MARKET WATCH
Canada’s main stock index ended marginally firmer on Tuesday, led by energy and materials, outperforming Wall Street indexes that struggled under the weight of more profit taking in the technology sector.
The S&P/TSX composite index was up 32.79 points at 19,657.53.
In New York, the Dow Jones industrial average was down 37.83 points at 32,394.25. The S&P 500 index was down 6.26 points at 3,971.27, while the Nasdaq composite was down 52.76 points at 11,716.08.
The Canadian dollar traded for 73.39 cents US compared with 73.09 cents US on Monday.
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TALKING POINTS
The dangers for Canada in Joe Biden’s new deal
“But in his words, both intended and otherwise, it was apparent that while the President was addressing legislators in Ottawa, his thoughts were on the Communist Party in Beijing, and on the threat posed by China’s economic power.” – The Editorial Board
As Credit Suisse fades, is corporate Canada underbanked?
“Just when expansion-focused domestic companies need them most, many of the world’s largest investment banks are pulling back on Canadian coverage.” – Andrew Willis
LIVING BETTER
Canadians are still eating too much sodium, WHO warns. Here’s how to cut back
The world is off-track to achieve agreed upon sodium reduction targets needed to protect against cardiovascular diseases, according to the World Health Organization’s first Global Report on Sodium Reduction. The average global sodium intake is 4,310 mg per day, which far exceeds WHO’s daily sodium intake recommendation of less than 2,000 mg. Most Canadians (six out of 10) still consume too much sodium, an average of 2,760 mg per day. So, how to cut back? Remember that the majority of sodium intake comes from packaged foods and restaurant meals. Bakery products, processed meats and frozen meals are a big contributor to that. Make homemade versions of commercial baked goods, pasta sauces and soup to consume less sodium. Instead of deli meats, roast a turkey breast or chicken for sandwiches and salads.
TODAY’S LONG READ
A symbol of the Estonian diaspora in danger of disappearing
St. Peters Estonian Evangelical Lutheran church, 817 Mount Pleasant Rd., Toronto, built in 1955 by architect Mihkel (Michael) Bach. Though a plan to sell the building has been reversed, heritage advocates say the building is still endangered.Tiiu Roiser/Tiiu Roiser
In her inimitable style, Globe and Mail society columnist Zena Cherry described the Estonian-Finnish wedding of Helvi Vickholm and Jaak Iir on June 16, 1967. But, along with the usual anecdotes and noting of attendees, Ms. Cherry dedicated about a quarter of her allotted ink to the church, St. Peter’s Estonian Evangelical Lutheran, which she opined would “add to any sightseeing tour of the city.
But now, there is a real danger that this 1955 tour de force by architect Mihkel (Michael) Bach (1916-1972) won’t exist for much longer. According to a heritage application prepared by former congregant and Sunday school teacher Tiiu Roiser, St. Peter’s executive committee held a vote in September, 2020 to gauge interest in selling; the building, you see, sits on a valuable piece of midtown real estate and suffers from dwindling attendance. The problem, she wrote, is that “only members who had contributed financially to the church the previous year were invited and allowed to vote” and that “many elderly members may not have fully grasped the enormity and finality of the decision.”
The vote passed. But those in favour of preservation have rallied and are trying to save the masterful piece of modernist, ecclesiastical architecture.
Evening Update is written by Prajakta Dhopade. If you’d like to receive this newsletter by e-mail every weekday evening, go here to sign up. If you have any feedback, send us a note.