Economy
Indigenous band could have been more help, says judge in Wisconsin Line 5 dispute
Fresh nuts, bolts and fittings are ready to be added to the east leg of the pipeline near St. Ignace as Enbridge prepares to test the east and west sides of the Line 5 pipeline under the Straits of Mackinac in Mackinaw City, Mich. on June 8, 2017. North America’s existential debate about the virtues and dangers of oil and gas pipelines faces a critical test today in Wisconsin. THE CANADIAN PRESS/AP, Detroit News, Dale G Young
By James McCarten in Washington
The Indigenous band in Wisconsin that’s trying to shut down the Line 5 pipeline got a chilly reception Thursday from a federal court judge who is dismayed they aren’t doing more to help Enbridge Inc. avoid an ecological disaster.
The Bad River Band of the Lake Superior Chippewa has asked district court Judge William Conley to order the pipeline shut down, fearing that heavy flooding last month could cause the line to spring a leak on their territory.
But from the outset of Thursday’s hearing, it was clear Conley — who ordered the two sides to work together last fall on finding a solution to their impasse — doesn’t believe the band is holding up its end of the bargain.
“The band has not helped itself by refusing to take any steps to prevent a catastrophic failure,” Conley said as the hearing got underway. “You haven’t even allowed simple steps that would have prevented some of this erosion.”
The day-long hearing ended without a decision on the band’s request for an injunction — and with the clear sense Conley is disinclined to grant one. “It’s an extraordinary request to make when the band is doing nothing,” he said.
But band lawyer Riyaz Kanji said he was pleased during an otherwise discouraging day that the judge gave indications he would establish a threshold for erosion damage that would trigger a shutdown.
“Unfortunately, from our point of view, he didn’t set that today — he’s not shutting it down,” Kanji said. “But we will remain hopeful that he will set a standard that will protect the river and its precious resources.”
Conley, who has already ruled that the band was entitled back in 2013 to revoke permission for the pipeline, was also unwilling to grant the injunction on the grounds that Enbridge no longer has the right to access the area.
“The harder thing to hear was that the judge appears unwilling … to issue an injunction because of Enbridge’s continuing trespass on the band’s lands,” Kanji said.
“It sounds like he’s thinking more in terms of financial penalties.”
In court documents, Enbridge has accused the band of being focused on a single outcome: the permanent closure of the pipeline on their territory “while refusing much less extreme alternative measures.”
The band argues that several weeks of flooding along the Bad River last month has washed away so much of the riverbank and supporting terrain that a breach is “imminent” and a shutdown order more than justified.
Enbridge insists the dangers are being overstated — and even if they were real, the company’s court-ordered contingency plan, which spells out the steps it would take, would be a far more rational solution.
“Enbridge will pre-emptively purge and shut down the line well in advance of any potential rupture,” the company says in its court brief, adding that the area remains under constant 24-hour video surveillance.
“Any flooding and erosion has not, and would not, catch Enbridge by surprise.”
But Enbridge has been rebuffed in its efforts to perform remedial work on the site, which would include using sandbacks and trees to fortify the riverbanks — a decision band chairman Mike Wiggins defended Thursday.
The band has the right under federal law to enforce its own water quality standards, which were “developed by careful evaluation of our relationships, as a people, with different parts of our hydrology in the Bad River watershed,” Wiggins told a news conference after the hearing.
“What was kind of put forward today was, ‘None of that stuff should matter. None of that stuff should exist. When Enbridge came knocking, you should have just let them do whatever they want,'” he said.
“We disagree.”
Heavy flooding that began in early April washed away significant portions of the riverbank where Line 5 intersects the Bad River, a meandering, 120-kilometre course that feeds Lake Superior and a complex network of ecologically delicate wetlands.
The band has been in court with Enbridge since 2019 in an effort to compel the pipeline’s owner and operator to reroute Line 5 around its traditional territory — something the company has already agreed to do.
But the flooding has turned a theoretical risk into a very real one, the band argues, and time is now of the essence. Lawyers for the band and its supporters were scheduled to hold a news conference after the hearing.
Line 5 meets the river just past a location the court has come to know as the “meander,” where the riverbed snakes back and forth multiple times, separated from itself only by several metres of forest and the pipeline itself.
At four locations, the river was less than 4.6 metres from the pipeline — just 3.4 metres in one particular spot — and the erosion has only continued.
The neighbouring state of Michigan, led by Attorney General Dana Nessel, has been waging its own war against Line 5, fearing a leak in the Straits of Mackinac, the ecologically delicate waterway where the pipeline crosses the Great Lakes.
“The alarming erosion at the Bad River meander poses an imminent threat of irreparable harm to Lake Superior which far outweighs the risk of impacts associated with a shutdown of the Line 5 pipeline,” Nessel argues in her brief.
“Without judicial intervention, it is likely that this irreparable harm will be inflicted not only on the band, but also on Michigan, its residents, and its natural resources.”
The economic arguments against shutting down the pipeline, which carries 540,000 barrels of oil and natural gas liquids daily across Wisconsin and Michigan to refineries in Sarnia, Ont., are by now well-known.
Line 5’s defenders, which include the federal government, say a shutdown would cause major economic disruption across the Prairies and the U.S. Midwest, where it provides feedstock to refineries in Michigan, Ohio and Pennsylvania.
It also supplies key refining facilities in Ontario and Quebec, and is vital to the production of jet fuel for major airports on both sides of the Canada-U.S. border, including Detroit Metropolitan and Pearson International in Toronto.
A lengthy statement issued Tuesday by the Canadian Embassy warned of severe economic consequences of shutting down the line, as well as the potential ramifications for bilateral relations.
“The energy security of both Canada and the United States would be directly impacted by a Line 5 closure,” the statement said. Some 33,000 U.S. jobs and US$20 billion in economic activity would be at stake, it added.
“At a time of heightened concern over energy security and supply, including during the energy transition, maintaining and protecting existing infrastructure should be a top priority.”
Talks have been ongoing for months under the terms of a 1977 pipelines treaty between the two countries that effectively prohibits either country from unilaterally closing off the flow of hydrocarbons.
This report by The Canadian Press was first published May 18, 2023.
— With files from The Associated Press
Business
Taxing food is like slapping a surcharge on hunger. It needs to end
This article supplied by Troy Media.
Cutting the food tax is one clear way to ease the cost-of-living crisis for Canadians
About a year ago, Canada experimented with something rare in federal policymaking: a temporary GST holiday on prepared foods.
It was short-lived and poorly communicated, yet Canadians noticed it immediately. One of the most unavoidable expenses in daily life—food—became marginally less costly.
Families felt a modest but genuine reprieve. Restaurants saw a bump in customer traffic. For a brief moment, Canadians experienced what it feels like when government steps back from taxing something as basic as eating.
Then the tax returned with opportunistic pricing, restoring a policy that quietly but reliably makes the cost of living more expensive for everyone.
In many ways, the temporary GST cut was worse than doing nothing. It opened the door for industry to adjust prices upward while consumers were distracted by the tax relief. That dynamic helped push our food inflation rate from minus 0.6 per cent in January to almost four per cent later in the year. By tinkering with taxes rather than addressing the structural flaws in the system, policymakers unintentionally fuelled volatility. Instead of experimenting with temporary fixes, it is time to confront the obvious: Canada should stop taxing food altogether.
Start with grocery stores. Many Canadians believe food is not taxed at retail, but that assumption is wrong. While “basic groceries” are zero-rated, a vast range of everyday food products are taxed, and Canadians now pay over a billion dollars a year in GST/HST on food purchased in grocery stores.
That amount is rising steadily, not because Canadians are buying more treats, but because shrinkflation is quietly pulling more products into taxable categories. A box of granola bars with six bars is tax-exempt, but when manufacturers quietly reduce the box to five bars, it becomes taxable. The product hasn’t changed. The nutritional profile hasn’t changed. Only the packaging has changed, yet the tax flips on.
This pattern now permeates the grocery aisle. A 650-gram bag of chips shrinks to 580 grams and becomes taxable. Muffins once sold in six-packs are reformatted into three-packs or individually wrapped portions, instantly becoming taxable single-serve items. Yogurt, traditionally sold in large tax-exempt tubs, increasingly appears in smaller 100-gram units that meet the definition of taxable snacks. Crackers, cookies, trail mixes and cereals have all seen slight weight reductions that push them past GST thresholds created decades ago. Inflation raises food prices; Canada’s outdated tax code amplifies those increases.
At the same time, grocery inflation remains elevated. Prices are rising at 3.4 per cent, nearly double the overall inflation rate. At a moment when food costs are climbing faster than almost everything else, continuing to tax food—whether on the shelf or in restaurants—makes even less economic sense.
The inconsistencies extend further. A steak purchased at the grocery store carries no tax, yet a breakfast wrap made from virtually the same inputs is taxed at five per cent GST plus applicable HST. The nutritional function is not different. The economic function is not different. But the tax treatment is entirely arbitrary, rooted in outdated distinctions that no longer reflect how Canadians live or work.
Lower-income households disproportionately bear the cost. They spend 6.2 per cent of their income eating outside the home, compared with 3.4 per cent for the highest-income households. When government taxes prepared food, it effectively imposes a higher burden on those often juggling two or three jobs with limited time to cook.
But this is not only about the poorest households. Every Canadian pays more because the tax embeds itself in the price of convenience, time and the realities of modern living.
And there is an overlooked economic dimension: restaurants are one of the most effective tools we have for stimulating community-level economic activity. When people dine out, they don’t just buy food. They participate in the economy. They support jobs for young and lower-income workers. They activate foot traffic in commercial areas. They drive spending in adjacent sectors such as transportation, retail, entertainment and tourism.
A healthy restaurant sector is a signal of economic confidence; it is often the first place consumers re-engage when they feel financially secure. Taxing prepared food, therefore, is not simply a tax on convenience—it is a tax on economic participation.
Restaurants Canada has been calling for the permanent removal of GST/HST on all food, and they are right. Eliminating the tax would generate $5.4 billion in consumer savings annually, create more than 64,000 foodservice jobs, add over 15,000 jobs in related sectors and support the opening of more than 2,600 new restaurants across the country. No other affordability measure available to the federal government delivers this combination of economic stimulus and direct relief.
And Canadians overwhelmingly agree. Eighty-four per cent believe food should not be taxed, regardless of where it is purchased. In a polarized political climate, a consensus of that magnitude is rare.
Ending the GST/HST on all food will not solve every affordability issue but it is one of the simplest, fairest and most effective measures the federal government can take immediately.
Food is food. The tax system should finally accept that.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
Business
Canada Hits the Brakes on Population
The population drops for the first time in years, exposing an economy built on temporary residents, tuition cash, and government debt rather than real productivity
Canadians have been told for years that population decline was unthinkable, that it was an economic death spiral, that only mass immigration could save us. That was the line. Now the numbers are in, and suddenly the people who said that are very quiet.
Statistics Canada reports that between July 1 and October 1, 2025, Canada’s population fell by 76,068 people, a decline of 0.2 percent, bringing the total population to 41,575,585. This is not a rounding error. It is not a model projection. It is an official quarterly population loss, outside the COVID period, confirmed by the federal government’s own data
The reason matters. This did not happen because Canadians suddenly stopped having children or because of a natural disaster. It happened because the number of non‑permanent residents dropped by 176,479 people in a single quarter, the largest quarterly decline since comparable records began in 1971. Permit expirations outpaced new permits by more than two to one. Outflows totaled 339,505, while inflows were just 163,026
That is the so‑called growth engine shutting down.
Permanent immigration continued at roughly the same pace as before. Canada admitted 102,867 permanent immigrants in the quarter, consistent with recent levels. Births minus deaths added another 17,600 people. None of that was enough to offset the collapse in temporary residency. Net international migration overall was negative, at minus 93,668
And here’s the part you’re not supposed to say out loud. For the Liberal‑NDP government, this is bad news. Their entire economic story has rested on population‑driven GDP growth, not productivity. Add more people, claim the economy is growing, borrow more money, and run the national credit card a little harder. When population growth reverses, that illusion collapses. GDP per capita does not magically improve. Housing shortages do not disappear. The math just stops working.
The regional numbers make that clear. Ontario’s population fell by 0.4 percent in the quarter. British Columbia fell by 0.3 percent. Every province and territory lost population except Alberta and Nunavut, and even Alberta’s growth was just 0.2 percent, its weakest since the border‑closure period of 2021
Now watch who starts complaining first. Universities are already bracing for it. Study permit holders alone fell by 73,682 people in three months, with Ontario losing 47,511 and British Columbia losing 14,291. These are the provinces with the largest university systems and the highest dependence on international tuition revenue
You’re going to hear administrators and activists say this is a crisis. What they mean is that fewer students are paying international tuition to subsidize bloated campuses and programs that produce no measurable economic value. When the pool of non‑permanent residents shrinks, departments that exist purely because enrollment was artificially inflated start to disappear. That’s not mysterious. That’s arithmetic.
For years, Canadians were told that any slowdown in population growth was dangerous. The truth is more uncomfortable. What’s dangerous is building a national economic model on temporary residents, borrowed money, and headline GDP numbers while productivity stagnates. The latest StatsCan release doesn’t just show a population decline. It shows how fragile the story really was, and how quickly it unravels when the numbers stop being padded.
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