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Economic Events in March CanadaOntario tabled its 2006-07 fiscal year budget with a forecast deficit of $2.4 billion, no new taxes or tax hikes, and increased spending on public transit, health care and education. Alberta released its budget with a projected $4.1 billion surplus, a cut in the corporate tax rate, widespread increases in spending, plus a $1 billion injection into its Heritage Fund. It plans $13 billion in infrastructure construction over the next three years. Quebec announced its budget with spending increased for public transit, health and education, and aid to the forestry sector. The government also announced the construction of a $300 million rail line that will link northern Montreal suburbs to downtown. Manitoba tabled its budget, projecting a $148 million surplus, cuts in both personal and corporate taxes and increased spending on health and education. Newfoundland forecast a $6.2 million surplus budget, its first ever, boosted by offshore energy royalties. The Bank of Canada raised its key interest rate by a quarter point to 3.75% on March 8. Enbridge completed its Spearhead pipeline, moving the first Canadian oil into the Oklahoma hub. Chevron announced it will spend billions to develop five oilsands leases in the Athabasca basin. Shell bought $465 million in land leases outside of the traditional scope of the oilsands. Maple LNG, a Canadian affiliate of two European energy companies, signed deals with Keltic Petrochemicals to develop a liquefied natural gas terminal at Goldboro, NS. Petro-Canada announced production at its Terra Nova oil rig will be cut by 35% in the first quarter due to delays and breakdowns. Enbridge Gas cut its residential natural gas rate by 18% effective April 1 due to warm winter weather. Toyota announced a $50 million auto parts plant to be built in Simcoe, Ontario. WorldThe European Central Bank raised its key interest rate by a quarter point to 2.5%, the highest level in three years. GM reached an early-retirement program with the UAW and parts supplier, Delphi Corp, which offers buyouts from $35,000 (US) to $140,000 (US) for 131,000 workers. |
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