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11-010-XIB |
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Economic events in May CanadaThe federal government tabled its 2006-2007 budget with $30 billion in new spending. Highlights include 28 tax reductions, along with a 1 percentage-point cut in GST to 6% on July 1 and a new employment credit. The Bank of Canada raised its key interest rate a quarter point to 4.25%, its seventh straight hike. Enbridge plans to spend $1.5 billion expanding its oil storage capacity in Alberta. It also proposed a $1 billion northward flowing pipeline (Southern Lights) to transport diluent used to thin bitumen. Production began after an $8.4 billion expansion of Syncrude’s oilsands near Fort McMurray. Hydro-Quebec announced it will invest $25 billion for new power dams over the next 10 years, generating 4,500 megawatts of electricity. Honda revealed plans to build a $154 million engine plant near Alliston. Auto parts maker Linamar is spending over $500 million and creating 2,000 jobs in a major expansion. Agnico-Eagle Mines is investing $400 million over five years to expand gold mines in northern Quebec. WorldShell restored oil output at its Mars platform, the largest in the Gulf of Mexico, nine months after it was hit by hurricane Katrina. |
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