CANADA ECONOMICS

ECONOMY

Department of Finance Canada. July 13, 2017. IMF Report Says the Government of Canada's Investments Support Middle Class Growth

Ottawa, Ontario – Canada's greatest resource is its people, and investing in the success of middle class Canadians will mean greater and more widely shared economic growth, better infrastructure, and more well-paying jobs in the new economy.

Finance Minister Bill Morneau today welcomed the release of the Staff Report of the International Monetary Fund's (IMF) annual Article IV Mission to Canada. The report notes that the Government of Canada's investments are working to create stronger growth in Canada's economy.

The IMF recognizes Canada's approach of making smart, responsible investments in people, communities and the economy, to create growth that is shared by the middle class and those working hard to join it. Today's report notes that the Canadian economy's renewed momentum is supported by these investments, and that the Canada Infrastructure Bank has the potential to be an important and effective instrument for supporting infrastructure investment and economic growth.

Quote

"I am pleased that the IMF recognizes Canada's approach of investing in people and the economy, and ensuring that the growth we create is widely shared. When you have an economy that works for the middle class, you have a country that works for everyone."

- Bill Morneau, Minister of Finance

INTERNATIONAL TRADE

The Globe and Mail. Reuters. 14 Jul 2017. China’s June trade beats forecasts on robust demand
YAWEN CHEN
RYAN WOO

China posted stronger-thanexpected June trade figures on Thursday, bolstered by firm global demand for Chinese goods and robust appetite for construction materials at home, but local curbs on lending could weigh on imports later this year.
Exports from the world’s second-largest economy rose 11.3 per cent from a year earlier, while imports expanded 17.2 per cent, both beating analysts’ expectations, official data showed.
While exports benefited from solid demand for electronics and industrial goods, an increasing trade surplus, particularly with the United States, may add to trade tensions as U.S. President Donald Trump seeks to boost activity in his country’s manufacturing sector. An increase in trade between China and nuclear-armed North Korea in the first half of the year could also add to diplomatic pressures between Beijing and Washington.
Meanwhile, analysts say economic and political risks could undermine much of the strong trade momentum seen in the first half of this year.
“Looking ahead, we expect export growth to slow on uncertainties in external demand due to rising geopolitical risks and the stronger yuan-U.S. dollar exchange rate in the first half of 2017,” Nomura researchers said in a note after the data release.
China posted a trade surplus of $42.77-billion (U.S.) in June, slightly above analyst forecasts for a surplus of $42.44-billion and wider from May’s $40.81-billion.
Analysts had anticipated June shipments from the world’s largest exporter to have risen 8.7 per cent, in line with May’s growth. Imports were forecast to have climbed 13.1 per cent, easing from the unexpectedly strong 14.8-percent jump in May.
The country’s demand for imports, particularly for industrial commodities such as the iron ore and coal used to feed a construction boom, has remained robust in recent months. This is owing mostly to resilient real estate demand in smaller Chinese cities with lax property rules, as authorities are keen to clear a housing glut.
However, analysts say a slowdown in demand for materials from abroad may already be taking place.
“Looking ahead, exports should continue to do well given the relatively positive outlook for China’s main trading partners,” Julian Evans-Pritchard, China economist at Capital Economics, said in a note. “But we are skeptical that the current pace of imports can be sustained for much longer given the increasing headwinds to China’s economy from policy tightening.”
Many economists still expect Beijing’s intensifying crackdown on unscrupulous lending and a cooling property market to translate to slower growth after a surprisingly optimistic first quarter.
China’s trade surplus with the United States was $25.4-billion in June, up from $22.0-billion in May, official data showed, and its widest since October, 2015, according to a Reuters calculation.
While U.S. demand remains robust, concerns of possible trade frictions between the United States and China appear to be back on the radar. Mr. Trump has described the trade imbalances between the two countries as a “very, very big issue” that he would address.
Washington is also investigating aluminum imports from China under the rarely used Section 232 of the U.S. Trade Expansion Act of 1962 that allows restrictions on imports for reasons of national security. The administration is conducting a separate investigation into steel.
The world’s two biggest economies started their 100 days of trade talks in April and agreed in May to take action by mid-July to increase access for U.S. financial firms and expanding trade in beef and chicken among other steps.

ENERGY

StatCan. 2017-07-14. Supply and disposition of refined petroleum products, April 2017

Refinery receipts of crude oil
7.6 million cubic metres, April 2017
-1.1% decrease (12-month change)

Refinery production
9.1 million cubic metres, April 2017
-0.8% decrease (12-month change)

Refinery domestic sales
8.1 million cubic metres, April 2017
-2.6% decrease (12-month change)

Source(s): CANSIM table 134-0004.

Refinery receipts down

Canadian refineries received 7.6 million cubic metres of crude oil in April, down 1.1% from the same month in 2016.

Chart 1   Chart 1: Refinery receipts of crude oil and equivalent products
Refinery receipts of crude oil and equivalent products



Domestic crude oil receipts rose by 0.4% from April 2016 to 4.7 million cubic metres.

Crude oil imports decreased 3.4% from April 2016 to 2.9 million cubic metres. Imports represented 38.6% of total crude oil received at refineries in Canada.

Crude oil inventories held at refineries totalled 3.7 million cubic metres in April, down 4.5% from the same month in 2016.

Crude oil used in refinery production increases

Total crude oil and equivalent products used in refinery production increased 1.5% from April 2016 to 8.0 million cubic metres. Refineries used more crude bitumen (+13.7%), synthetic crude oil (+2.5%), and conventional light crude oil (+0.6%), while they used less conventional heavy crude oil (-3.2%).

Chart 2   Chart 2: Crude oil used in refinery production
Crude oil used in refinery production



Refinery production and sales fall

Refinery production decreased 0.8% from April 2016 to 9.1 million cubic metres.

Chart 3   Chart 3: Domestic sales of refined petroleum products, by product
Domestic sales of refined petroleum products, by product



Domestic sales of refined petroleum products fell 2.6% to 8.1 million cubic metres. Sales of diesel fuel oil (-9.9%) and motor gasoline (-2.2%) were both down compared with April 2016.

Imports and exports up

Canada imported 1.1 million cubic metres of refined petroleum products in April, up 18.3% from the same month in 2016.

During the same period, exports of refined petroleum products increased 8.4% to 2.3 million cubic metres.

Inventories increase

Closing inventories of refined petroleum products held at refineries increased 2.1% year over year to 7.9 million cubic metres in April.

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/170714/dq170714a-eng.pdf

The Globe and Mail. Reuters. 14 Jul 2017. Brookfield bid for Brazilian power firm hits a snag
GUILLERMO PARRA-BERNAL

The reluctance of Renova Energia SA’s largest shareholder to give up management of the debtladen Brazilian renewable power firm threatens to derail takeover talks with Brookfield Asset Management Inc., three people familiar with the matter said on Thursday.
Power utility Cia Energética de Minas Gerais SA wants to be part of a Brookfield-led turnaround of Renova, two of the people said. The utility known as Cemig owns 34.2 per cent of Renova.
That stance could sink Brookfield’s proposed 1.6 billion real ($634-million) cash offer for control of Renova, the people said. Cemig plans to first sound out interest from distressed debt giant Oaktree Capital Management LP and two other unidentified funds in Renova, two of the people said.
Reuters reported on Friday that Brookfield would buy out the combined 63.5 per cent that Cemig, Light SA and RR Participacoes SA have in Renova for 810 million reais. The Toronto-based company would then pump 800 million reais into Renova to win full management rights.
Cemig, Light and Brookfield declined to comment.
Snubbing Brookfield, which has made a number of high-profile infrastructure and energy takeovers in Brazil in the past year, is “risky for Renova since it faces a heavy repayment calendar and a fragile cash position,” said one of the people, who asked for anonymity because of the sensitivity of the matter.
Renova has struggled with a severe cash crunch over the past few years. Financing conditions for Renova, which was founded in 2001, worsened significantly when a partnership with SunEdison Inc. collapsed weeks before the latter filed for bankruptcy protection in the United States.
Exiting Renova would allow Cemig, Brazil’s No. 3 power utility, to facilitate the refinancing of almost five billion reais of debt maturing this year. This week, chief financial officer Adezio Lima said the part or full sale of Cemig’s and Light’s stakes in Renova could take up to 60 days.
Interest in Brazil’s renewable power industry is growing, especially among foreign investors who see it as a resilient play despite declining electricity consumption and a harsh recession.

INNOVATION

Public Services and Procurement Canada. July 14, 2017. Build in Canada Innovation Program celebrates support of Canadian innovators with launch of new initiative

Gatineau, Quebec - The Government of Canada is committed to growing the economy and strengthening the middle class, as well as helping those working hard to join it. Through the Build in Canada Innovation Program (BCIP), the Government of Canada is investing in Canadian innovators to help them prosper at home and abroad. Since it began in 2010, more than 240 contracts, totalling over $100 million, have been awarded under the program to help Canadian innovators bring their products to market.

Building on this success, the Government of Canada, through Public Services and Procurement Canada, is launching a new pilot called the BCIP Challenges Initiative.

The BCIP Challenges Initiative is a new component of the current program. Departments identify real life needs and challenges that innovators are invited to solve with their products and technologies. Designed to increase the use of late stage innovative technologies by government departments, the program allows Canadian businesses to sell their innovations and contribute to Canada’s economic growth.

The first phase of the pilot announced today consists of challenges issued by departments and focuses on finding innovative ways to protect Canadian soldiers, civilians and infrastructure. Details of these innovation challenges can be found on the web at Canada.ca/Sell-your-innovation.

Quotes

“Building on the success of the Build in Canada Innovation Program, this initiative provides a new way for Canadian businesses to sell their late-stage innovations to government departments. This new demand-based component will help federal organizations find solutions for their operational needs by using state-of-the art technologies developed by homegrown companies.”

Steven MacKinnon

Parliamentary Secretary to the Minister of Public Services and Procurement

Quick Facts

• Created under the umbrella of the BCIP, the pilot is a departure from the Program’s matching model as it will allow government departments to identify selected needs and challenges for Canadian innovators to solve.
• Industry proposals that meet a challenge’s requirements will be selected and purchased for departmental testing.
• The BCIP helps Canadian companies of all sizes move their state-of-the-art goods and services from the lab to the marketplace. A total of 30 departments have participated in the program, and BCIP innovations have experienced an 80% commercialization rate.

NAFTA

Agriculture and Agri-Food Canada. July 13, 2017. Joint Statement of Minister Lawrence MacAulay (Canada) & Secretary Calzada (Mexico) Regarding Bilateral Agriculture Meetings in Calgary, Alberta. Statements

Calgary, Alberta – Canadian Minister of Agriculture and Agri-Food, Lawrence MacAulay, and Mexican Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food, José Calzada, issued the following statement at the conclusion of their bilateral meeting which took place in Calgary, Alberta on July 13, 2017.

Canada and Mexico are committed to creating a more integrated North American market for agriculture to help our respective sectors grow their businesses and remain globally competitive. Together, we have cultivated a robust bilateral agricultural trade relationship that is mature, balanced, and complementary.

Our meeting in Calgary provided a valuable opportunity to reaffirm our commitment to continue collaborating in areas of common interest such as science and technology, which is helping to advance key areas of research including climate change, and developing more disease resistant wheat and potato varieties. As a region and bilaterally, we have also coordinated in the areas of plant and animal health, trade of biotechnology products and improved regulatory cooperation.

We recognized the importance of expanding this type of collaboration, including  through the Canada-Mexico Consultative Committee on Agriculture and the Canada-Mexico Agri-Business Working Group, to help ensure favourable market access conditions and increased trade of our agri-food products within North America and globally.

Canadian agri-food imports from Mexico (CAD$2.4 billion or US$1.8 billion) and Mexican agri-food imports from Canada (CAD$2.1 billion or US$1.6 billion) are balanced and complementary. For example, 95 per cent of all the avocados consumed in Canada are from Mexico. And over 90 per cent of canola seed imported by Mexico is from Canada.

We are stronger together. Working with the United States, we have created a trading relationship that is the envy of the world. The North American Free Trade Agreement (NAFTA) has created a more competitive, prosperous and integrated agriculture and food industry across North America.

Canada, Mexico and the United States recently affirmed their shared commitment to collaboration and open and transparent markets during trilateral agriculture meetings held in Savannah, Georgia, in June 2017.

Our countries will continue to work together to show the world the benefits of an open-trade relationship that grows the economy and supports millions of jobs in North America.

REUTERS. JULY 14, 2017. Mexico industry eyes NAFTA changes to find common ground with Trump
By Dave Graham

MEXICO CITY (Reuters) - Mexican industry is exploring revising trade rules to ensure U.S. workers benefit from a renegotiated North American Free Trade Agreement (NAFTA) to address head-on U.S. President Donald Trump's biggest beef with the treaty.

With talks due to start next month between the United States, Mexico and Canada, Mexican officials have stressed the need to craft a new deal that would strengthen the region against competitors, particularly in Asia.

Trump has threatened to ditch NAFTA if he cannot rework it to the benefit of the United States, arguing it has fueled a trade deficit with Mexico and cost thousands of U.S. jobs.

Mexican officials say a revamped NAFTA must further integrate the region and are awaiting U.S. negotiating objectives, due to be published on or around Sunday.

They point to sectors like autos, where U.S. inputs make up some 40 percent of the value of products imported into the United States from Mexico, while Chinese exports contain only 4 percent, according to the U.S. Center for Automotive Research.

"If we integrate further and make Mexico more competitive versus China ... even if our exports rise, U.S. jobs will rise, because when we export (to the United States), they're exporting too (via U.S. content)," said Jaime Serra, a former trade minister who led the initial NAFTA negotiations for Mexico.

However, mindful that Trump needs to be able to claim a more obvious win from the shake-up, they are also looking at rules governing how much of a product is made in the region.

NAFTA rules of origin stipulate that to qualify for tariff-free access, some products need to be sourced to a certain degree regionally. Cars, a recurring point of attack for Trump, must meet a threshold of 62.5 percent.

Because raising that threshold would not automatically benefit U.S. workers - firms could just expand capacity in Mexico - Trump's trade team want to have some national content rules within the regional framework, Mexican officials say.

'A Tricky Issue'

Moises Kalach, head of the international negotiating arm of Mexico's CCE business lobby, which is coordinating the private sector's role in the renegotiation, said they may explore domestic content rules on certain products.

"It'll be a tricky issue, and we'll have to see case by case," he said.

Kalach declined to say what goods might be eligible. In May, he said a revamped NAFTA might source more work for future product lines from the region.

The Mexican electronics industry wants to increase regional production of some components to reduce reliance on Asia, said Cesar Castro, vice president of electronics industry group Canieti.

About 70 percent of content in electronic goods exported by Mexico to the United States is sourced from Asia, he said, highlighting products that would have a big slice of Chinese content even if manufactured by U.S. companies.

To boost North American output, Canieti is considering a proposal that could see regional content in certain products raised from 5 percent to 50 percent over 10 years, Castro said.

Bargaining Chips

If Mexico's arguments fall flat, however, and Trump threatens to impose punitive tariffs on Mexican-made goods, the sizeable U.S. surplus in services with Mexico could end up as a bargaining chip.

That could complement Mexican efforts to target the big U.S. agricultural surplus with Mexico, which the Trump administration is already feeling pressure to preserve.

Mexico could insist companies such as Amazon.com Inc (AMZN.O) and Netflix Inc (NFLX.O) build servers in the country, said a former Mexican official familiar with discussions, speaking on condition of anonymity.

"As the U.S.'s second biggest market, it's clear we can hit back," said Andres Rozental, a former deputy foreign minister. "(Services are worth) more and more every day."

Reporting by Dave Graham; Editing by Christian Plumb and Lisa Shumaker

GOVERNMENT

​GOVERNMENT OF CANADA. PM. July 13, 2017. Prime Minister Trudeau announces The Queen’s approval of Canada’s next Governor General



Ottawa, OntarioThe Prime Minister, Justin Trudeau, today announced that, on his recommendation, Her Majesty The Queen was pleased to approve the appointment of Ms. Julie Payette as the next Governor General of Canada. Ms. Payette will serve in succession to His Excellency the Right Honourable David Johnston.

The installation ceremony for Ms. Payette will take place in the fall.

Biographical notes. 



Julie Payette is an astronaut, engineer, scientific broadcaster and corporate director.

From 1992 to 2013, Ms. Payette worked as an astronaut and flew two missions in space. She also served many years as CAPCOM (Capsule Communicator) at NASA’s Mission Control Center in Houston, Texas, and was Chief Astronaut for the Canadian Space Agency.

She is well respected for her work in developing policies to promote science and technology. From 2011 to 2013, she worked as a scholar at the Woodrow Wilson International Center for Scholars in Washington, D.C., and was appointed scientific authority for Quebec in the United States. Between July 2013 and October 2016, she served as CEO of the Montréal Science Centre.

Ms. Payette is active in multiple facets of the community. She has produced several scientific outreach short programs on Radio-Canada and is a member of McGill University’s Faculty of Engineering Advisory Board. She has served on the boards of the Montréal Science Centre foundation, Robotique FIRST Québec, Drug Free Kids Canada, and the Montreal Bach Festival. She has long served on the board of Own The Podium, a granting organization dedicated to high performance sport in Canada, and has recently been appointed to the International Olympic Committee Women in Sports Commission. She has served as a Director of Développement Aéroport Saint-Hubert de Longueuil and of the National Bank of Canada.

Ms. Payette is a member of the Ordre des ingénieurs du Québec and a fellow of the International Academy of Astronautics. She obtained an International Baccalaureate from the United World College of the Atlantic in the United Kingdom, a Bachelor of Electrical Engineering from McGill University, and a Master’s in Computer Engineering from the University of Toronto. In addition, Ms. Payette can converse in six languages, holds a commercial pilot license and is an administratrice de sociétés certifiée (ASC is equivalent to the Institute of Corporate Directors, Director [ICD.D] designation).

Ms. Payette has received many distinctions and 27 honorary doctorates. She is a Knight of the Ordre national du Québec and an Officer of the Order of Canada.

VIDEO: https://www.youtube.com/watch?v=mQsiRx_Psco&feature=youtu.be&utm_source=pm_eng&utm_medium=YT&utm_campaign=GG

The Globe and Mail. 14 Jul 2017. ‘I AM HERE TO SERVE ALL CANADIANS’. ONE GIANT LEAP FOR A CANADIAN ASTRONAUT. Former astronaut Julie Payette plans to promote science and knowledge as Canada’s 29th governor-general
DANIEL LEBLANC 


Julie Payette plans to promote ‘tolerance, openness and working together’ as the 29th governor-general

OTTAWA, ON - Julie Payette’s appointment is announced in Ottawa on Thursday.
Former astronaut Julie Payette said she is looking forward to again serving her country – albeit this time on Earth – as she gets ready to promote science and knowledge as Canada’s 29th governor-general.
After going on two space-shuttle missions in 1999 and 2009, Ms. Payette plans to use her position to inspire Canadians to embody core values of “tolerance, openness and working together.”
“It is clear that I am a person who believes fundamentally in facts, evidence, data and science, which supports decisionmaking and allows us to function as a society based on knowledge,” the 53-year-old said after Prime Minister Justin Trudeau confirmed her appointment.
Ms. Payette added that she will develop a full agenda in time for her installation in early fall, pointing out she is “pretty new to the job.”
“I am very happy to have a second chance to represent Canada. I have done so for years as an astronaut in outer space, and now I have the chance to do so again, but this time on Earth,” she said.
Mr. Trudeau asked Ms. Payette during a private meeting in Montreal in June whether she wanted to return to public life and move to Rideau Hall. A single mother, she took a few days to consult with her 14-year-old son before agreeing to serve as the successor to David Johnston.
Appointing a governor-general is the Prime Minister’s prerogative, and federal officials said all it takes is one look at Ms. Payette’s impressive CV to understand why she was perfect for the job. On Thursday, Mr. Trudeau praised Ms. Payette for dedicating her life to “discovery, to dreaming big and to always staying focused on the things that matter most.”
While many celebrated Ms. Payette’s appointment, it still generated questions about the federal government’s failure to name an aboriginal as the Queen’s representative in Canada.
“Some Canadians may be disappointed that today we are not celebrating the appointment of Canada’s first governorgeneral from First Nation, Inuit or Métis decent, and I understand and sympathize with those feelings,” NDP Leader Tom Mulcair said.
Perry Bellegarde, National Chief of the Assembly of First Nations, said Ms. Payette must continue the work of her predecessors, who have built strong relations with First Nations. “There are some who were calling for an Indigenous governor-general and, while we may see that in our lifetime, we know that whoever assumes this position has a duty to uphold the honour of the Crown in all their work, and that includes the long-standing relationship with First Nations,” Mr. Bellegarde said.
Ms. Payette responded to questions on the controversy by pointing to her own long lineage in Canada and her intention to represent all Canadians in her new duties.
“As a 12th-generation Canadian, I’m exactly just that, a Canadian, and I am here to serve all Canadians of all backgrounds, of all walks of life, either new or not so new. It will be my pleasure,” she said.
Mr. Trudeau went on to explain why he picked Ms. Payette, a francophone woman from Montreal, instead of an aboriginal candidate, as many had hoped.
“Reconciliation isn’t just about Indigenous peoples and the Canadian government, it involves non-Indigenous Canadians as well,” Mr. Trudeau said. “I know Ms. Payette will be engaged in the process of reconciliation, inclusion and the creation of opportunities for all in this country.” Mr. Trudeau said that during a trip to Scotland earlier this month, the Queen “graciously approved the appointment of Ms. Julie Payette as the next governor-general of Canada.”
“When I was studying engineering, there was a big poster of Julie on the wall of one of our classes, so I have long known and admired her,” Mr. Trudeau said Thursday. “When we sat down a few weeks ago … we talked about public service, family, responsibilities, our hopes for the country, and it quickly became clear that in terms of values, approach and priorities, I could have profound trust in her to do this job.”
Reaction to Ms. Payette’s appointment has been largely positive.
“As the representative of the Crown in Canada, the governor-general’s role is to perform the Queen’s duties as laid out by the Constitution on her behalf. It is a critical non-partisan role that can have a direct effect on the stability of Canada’s government. Ms. Payette will have the full confidence of our Conservative caucus,” Conservative Leader Andrew Scheer said.
Ms. Payette spent a total of 611 hours in space aboard space shuttle Discovery in 1999 and Endeavour in 2009. She operated the Canadarm and was the first Canadian astronaut to board the International Space Station.



Ms. Payette is fluently bilingual in French and English, speaks four other languages and is a licensed pilot. According to a Montreal newspaper, Ms. Payette’s favourite coffee mug has the following inscription: “Failure is not an option.”

The Globe and Mail. 14 Jul 2017. ‘An inspired choice’ to represent the Queen. Those who have taught and worked with Julie Payette have nothing but praise for a ‘brilliant … hard-working … a bit intense’ woman, John Ibbitson reports
With files from Ingrid Peritz in Montreal

In the late 1980s, Julie Payette asked Graeme Hirst, a computer specialist at the University of Toronto, if she could take one of his courses. The answer was no. Ms. Payette was a graduate student in computer engineering and Prof. Hirst’s field was computer science; she lacked the necessary prerequisites, he told her.
But Ms. Payette “does not take no for an answer,” he recalled Thursday. Not only did she take the course, filling in the prerequisites in her spare time, Prof. Hirst ended up co-supervising her master’s thesis in the area of computational linguistics.
“Brilliant … hard-working … a bit intense,” said Prof. Hirst, describing a student who excelled at whatever she turned her hand to. She was, he thought, a natural choice for Canada’s space program in the 1990s. And he believes she is a natural choice to be Canada’s next governor-general.
Being an astronaut is perfect training for being a governorgeneral. Both must serve as an ambassador for Canada to the world and to Canadians themselves. And both may be called upon to make difficult choices under considerable pressure. Ms. Payette shone in these tasks as an astronaut and will as well as the Queen’s representative in Canada, predicted Prof. Michael Stumm, who taught Ms. Payette at U of T. “She’ll be stupendous.”
Born in Montreal in 1963, the daughter of a theatre accountant and an engineer, Ms. Payette was a stellar student at McGill University, where she came to the attention of Claude Guay, an IBM executive then and now. He hired the student intern after she graduated. “It was clear right away that we had a very gifted individual,” Mr. Guay recalls. “People would rave about the kind of work that she would do. … We were actually very disappointed when she left.”
In Toronto, as well as getting a graduate degree in engineering, Ms. Payette sang for three years in the choir of Tafelmusik, the acclaimed baroque chamber orchestra. She took a copy of their recording of Handel’s Messiah with her into space, “which was very cool,” said choir director Ivars Taurins. Is she competitive? When Mr. Taurins told Ms. Payette that she would be singing with the second, rather than the first, sopranos for Bach’s Mass in B Minor, she practically cried.
Upon graduation, Ms. Payette worked with IBM in Zurich and Bell-Northern Research in Montreal, before becoming one of four chosen from more than 5,000 applicants in 1992 to become an astronaut with the Canadian Space Agency. Marc Garneau, who was one of Canada’s first astronauts, was on the committee that selected her.
“It was a no-brainer to choose her back then,” said Mr. Garneau, who is now the federal Minister of Transport.
Ms. Payette had an impressive background in science and engineering, she was multilingual, a lover of the arts – an articulate, cosmopolitan personality who was curious about the world. “I couldn’t be more pleased” by Prime Minister Justin Trudeau’s decision to recommend Ms. Payette as governor-general, he said in an interview. “It’s an inspired choice.”
As part of her training, Ms. Payette learned Russian (she is also conversant in Spanish, Italian and German and idiomatic in English and French) and earned a pilot’s licence. She flew in 1999 in the space shuttle Discovery to the International Space Station, and again in Endeavour in 2009. From 2000 to 2007, she was chief astronaut of the Canadian Space Agency.
After leaving the agency in 2013, she spent three years as chief operating officer of the Montreal Science Centre, leaving abruptly in 2016. She has also served on various boards, including a board of advisers at McGill’s faculty of engineering. “She’s been looking at science education for quite some time,” said Benoit Boulet, the faculty’s associate dean, and pays particular attention to encouraging women to enter STEM (science, technology, engineering and mathematics) fields.
Personally, Ms. Payette is a “kind, gracious, people kind of person,” Prof. Hirst said. “She was like that as a student and she was like that as an astronaut as well.”
She can be very direct and demanding, setting high standards, not only for herself, but for those she works with. In 2011, Ms. Payette spent a year at the Woodrow Wilson International Center for Scholars in Washington. “She’s a real person,” says David Biette, who was director of the Canada Institute at the time. “She’s not this perfect little butterfly who went up in space … I don’t think she has a lot of patience for bullshit.”
Though the public role of astronaut translates easily into the equivalent role of governor-general, Ms. Payette’s background is in science rather than law. This could leave her in unfamiliar territory when confronted with a challenge, such as the one that governor-general Michaëlle Jean, a former broadcaster, faced in 2008, when Stephen Harper recommended that Parliament be prorogued on the cusp of what would have been his government’s defeat in the Commons. (She accepted his advice.) B.C. Lieutenant-Governor Judith Guichon, a former rancher, faced a similar decision in June when Premier Christy Clark, whose government had been defeated on its Throne Speech, recommended she call an election. (Ms. Guichon declined the advice and turned to NDP Leader John Horgan to form a government.)
That said, governors-general and lieutenant-governors have legal scholars to advise them when such situations occur. And ultimately, “a lot of these things are common sense,” Prof. Stumm observes. “And I can tell you that Julie has a tremendous amount of common sense.”

• BORN: Oct. 20, 1963, Montreal
• MOTHER: Jacqueline, a theatre accountant
• FATHER: André, an engineer
• EDUCATION: International baccalaureate from United World College of the Atlantic in South Wales (1982); Bachelor of electrical engineering, McGill (1986); Master of applied science in electrical and computer engineering, Toronto (1990)
• JOINED CANADIAN SPACE AGENCY ASTRONAUT PROGRAM: 1992
• FIRST FLIGHT: STS-96, a 10-day mission aboard the space shuttle Discovery to the International Space Station (ISS), May 27-June 6, 1999. First Canadian to board ISS.
• SECOND FLIGHT: STS 127, a 16-day mission aboard the space shuttle Endeavour to the International Space Station, July 15-31, 2009. Served as flight engineer and mission specialist 2.
• MARITAL STATUS: Single mother, 14-year-old son
• MUSIC: Plays flute and piano, sang in choirs of Montreal Symphony Orchestra and Tafelmusik Baroque Orchestra
• LANGUAGES: French and English (fluent); Russian, German, Italian and Spanish (conversant)
• ALSO: Enjoys scuba diving, racquet sports, skiing, running. Has a pilot’s licence.

The Globe and Mail. 14 Jul 2017. Viceregal role: A national symbol. Trudeau’s choice embodies all that Canada’s idol should be
CAMPBELL CLARK

If you’re looking to fill the role of a national symbol, it helps to find someone who already is one. For a generation of Canadian school kids, Julie Payette was that kind of national idol, the woman who ignored people who told her she could never be an astronaut and went into space.
The role of the modern governor-general is now to be that kind of symbol: Prime ministers no longer make it a political reward, but attempt to find someone above the fray who represents what Canada is, or aspires to be. So who better than someone who slipped the surly bonds of Earth to touch the heavens using a mechanical arm with Canada written on it?
You can almost hear Prime Minister Justin Trudeau’s entourage rubbing their hands together. Ms. Payette radiates so many things the Liberals want to associate with Mr. Trudeau’s Canada. She embodies science, technology and innovation. She’s a woman who smashed a glass ceiling and could easily astronaut-splain computers and aeronautics to the rest of us in six languages. She can serve, as she has over years of school visits, as an example to young girls with aspirations in science, space or any traditionally male-dominated field. She’s a Quebecker who has succeeded as a representative of Canada.
And yet, Mr. Trudeau’s Liberals can’t expect this appointment to bring them political benefits that carry through the next election. Governors-general are symbols, but for all their viceregal stature, they’re not potent political ones.
The announcement might help the Liberals change the channel from the unpopular $10.5-million settlement paid to Omar Khadr. (Since Mr. Trudeau discussed Ms. Payette’s appointment with the Queen in Scotland on July 5, the timing was not set solely for that purpose.) It might register a little imprint on Mr. Trudeau’s image. But naming a governor-general is not an indelible political symbol that lasts.
Former prime minister Paul Martin’s advisers were also chuffed with themselves in 2005 when Mr. Martin named Michaëlle Jean, a youngish, glamorous, Haitian-born francophone known as a documentary presenter on Quebec TV. But by the time Mr. Martin’s government fell less than four months later, voters weren’t thinking of Ms. Jean.
In matters of governance, the governorgeneral is like a third-string goalie: You want them to be sharp in case it ever really matters, but it rarely does. Their roles are properly constrained by the dictates of constitutional convention. B.C. Lieutenant-Governor Judith Guichon didn’t really have broad discretion to decide if she’d let NDP Leader John Horgan become premier – she could follow constitutional conventions or go rogue. In that regard, the most crucial thing a governor-general needs is an understanding of the limitations of their role.
Does Ms. Payette have that? It’s hard to tell. On Thursday, she didn’t have an answer to questions about the governor-general’s role, but suggested she wanted to promote science and a “knowledge society.” Worthy, but worthy viceregal agendas don’t usually mark the everyday lives of Canadians.
What matters is the political metaphysics: The governor-general’s job is to be the Queen’s representative in Canada, but the modern function is to keep the ceremonial trappings of national authority out of the hands of the prime minister. The PM doesn’t hand out the Order of Canada or wear a uniform and call himself the commander-in-chief, notes Carleton University political scientist Philippe Lagassé. That’s a good thing. It reminds us the politician is supposed to be a national servant, not the nation.
Appointees as governors-general have evolved toward Canadian symbols who are supposed to somehow “reflect the nation back at themselves,” Prof. Lagassé said. British lords initially represented the Queen, then Canadian worthies, then PMs started recommending political veterans. Since Adrienne Clarkson was appointed in 1999, Prof. Lagassé said, there’s “an effort to seek out governors-general who were what we wanted to be.”
Ms. Payette is already a success as that kind of symbol. Opposition leaders praised the choice and even if he won’t win votes, Mr. Trudeau can be pleased.
There’s already a school named after Ms. Payette in Whitby, Ont. In Quebec, she’s a popular figure who will represent Canada. On Thursday, she talked about seeing the glory of Canada from space, but noted there are no borders within it.
Mr. Trudeau won’t find many who will fight about the choice, and when you’re naming a national symbol, that is a big part of success.

CIB

The Globe and Mail. 14 Jul 2017. Pearson airport propels transit-hub plan. Bidding process set to kick off for multibillion-dollar proposal that officials see as potential candidate for Infrastructure Bank cash. Airport authority hired Deloitte to reach out to potential private investors
BILL CURRY

Toronto’s Pearson airport is preparing to seek bidders to design a massive regional transit centre as behind-the-scenes talks heat up with Ottawa, the province and potential private investors.
A source close to the project told The Globe and Mail that the Greater Toronto Airport Authority (GTAA) is preparing to launch a request for proposals to produce an initial concept design of the transit hub.
Government documents obtained by The Globe also show that federal officials view the multibillion-dollar project as a potential candidate for funding through the new $35-billion Canada Infrastructure Bank, which was approved by Parliament in June.
The airport authority has been gradually building support for the idea of establishing Pearson as a second major transit hub – after Union Station – in the Greater Toronto and Hamilton Area. Regional mayors and the Ontario government announced their support for the idea at a news conference in April. In May, Pearson and 10 other airports announced the Southern Ontario Airport Network, which is based in part on shifting smaller regional air traffic away from Pearson as it focuses on larger international flights. Improved transit connections to Pearson are a key part of that plan.
The GTAA has estimated in January that the total cost of the project is at least $11.2-billion. The plan has six transit components, five of which involve extending existing or planned transit lines – such as the Eglinton LRT and Finch LRT – so that they connect to the airport. The most expensive aspect is a contribution to a high-speed rail line that would run from Union Station to the airport and on to Guelph, Kitchener-Waterloo, London, and possibly as far as Windsor. The provincial Ontario government is currently conducting an environmental assessment of the high-speed rail proposal.
A provincial study by former federal transport minister David Collenette released in May indicated that a Toronto-Windsor high-speed rail line alone could cost about $21-billion when socalled “soft” costs are included, such as design work, overhead and contingencies.
The Collenette report said that if only capital costs are measured, a high-speed rail line could be built from Toronto to London for $4-billion.
Extending the line to Windsor would cost an additional $3.4billion.
Janet De Silva, president and chief executive officer of the Toronto Region Board of Trade and a strong advocate of the Pearson transit hub plan, said talks are progressing quickly among municipal, provincial and federal leaders and potential private investors, such as pension funds.
“The momentum around the project is tremendous,” she said in an interview.
The federal government has commissioned and received a confidential study of the potential for fully privatizing Canada’s major airports, including Pearson.
While some airport authorities, including in Ottawa, Calgary and Vancouver, have strongly opposed the idea, the GTAA has signalled that it is open to considering privatization options as a way of attracting private investors to help fund the transit-hub plan.
Ms. De Silva, who previously led Sun Life Financial’s operations in China, said her organization and others need to persuade Canadians of the benefits of private infrastructure investment through options such as the Canada Infrastructure Bank that bring in private investors to projects that tend to have some form of user fee attached.
“One of the pieces that’s going to have to be dealt with, is helping public opinion understand that everything can’t be socalled free,” she said.
“I’ve lived in Asia for 15 years. There just seems to be more cultural acceptance that country assets can be sold so that the capital can be redeployed for other things.
“Here in Canada, there still seems to be a mindset that we need to continue to hold everything for a rainy day. But the challenge is we simply have insufficient revenues to take care of all the needs.”
The GTAA has hired Deloitte to reach out to potential private investors, including Canadian pension funds.
The source said direct meetings between the GTAA and pension funds are likely to take place soon.
The federal infrastructure bank is expected to launch later this year.
Representatives of the GTAA have also held at least 54 meetings with federal officials and MPs this year, according to the federal lobbyist registry.
These included meetings with Finance Minister Bill Morneau, Transport Minister Marc Garneau, Environment Minister Catherine McKenna and senior political aides in ministers’ offices and the Prime Minister’s Office.
A briefing note prepared by officials for federal Infrastructure Minister Amarjeet Sohi ahead of a Dec. 8 meeting with Howard Eng, president and CEO of the GTAA, provides some insight into federal thinking about the Pearson plan.
“The jurisdictional complexities of converging ground transportation at the airport may present an opportunity for the federal government to play a role in supporting a partnership between the GTAA and provincial, municipal and other transportation stakeholders in the development of an intermodal ground-transportation hub,” the officials told the minister.
The note then suggests points that the minister could make if asked by Mr. Eng about funding through the infrastructure bank.
“We have a solid track record in terms of partnerships with the private sector regarding infrastructure,” the note states. “With the bank, we want to bring this partnership to a whole new level.”
Brook Simpson, a spokesperson for Mr. Sohi, said in a statement that Ottawa will work with the GTAA to see how the transit hub plan could fit with federal transit infrastructure programs.
“As for the whether the Canada Infrastructure Bank will look at investing in this project, the bank is now in the process of being set up and once operational, it will decide if an investment is appropriate,” he said.

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LGCJ.: