Tuesday 15 August 2023

Lowest social assistance rates in Canada keep many in N.B. in 'deep poverty,' report says

 

 

Lowest social assistance rates in Canada keep many in N.B. in 'deep poverty,' report says

Professor suspects rates are low to force people to work, although many can't

"New Brunswick is the bottom of the barrel."

MacKay, who is on social assistance, said a report that shows New Brunswick's rates are the lowest in Canada is jarring. He said he had not been aware of the differences among provinces.

"I didn't realize the discrepancy — that the same human being, and I am that human being in New Brunswick, receives $8,000 to live on because I really can't make it independently on my own," said MacKay, who's received social assistance since 2016. 

"I thought we're the same human beings and we're all Canadians."

The Welfare in Canada report was put together by the Maytree Foundation, an Ontario non-profit organization that works to eradicate poverty.

Their report uses "four example households" to measure total annual welfare income in Canada in 2022. According to their findings, "all four New Brunswick households were not only living in poverty in 2022, they were living in deep poverty."

In New Brunswick, single people considered employable, like MacKay, received about $8,030 annually. Single people living with a disability received $10,884. As for those with families, a single parent with one child gets $21,657 and a couple with two children $28,664.

Jennefer Laidley, co-author of the report, said the gap between how much social assistance New Brunswickers receive, compared to how much they would need just to get to the poverty line, is the widest compared to all other provinces in Canada. 

Although welfare rates are low across the country, Laidley said, New Brunswickers on social assistance are "living in extremely strained circumstances." 

For a single person deemed employable, the poverty line is $24,395 and the deep income poverty threshold is $18,296. "It would take $10,000 just to get those folks to the deep income poverty line, let alone to or above the poverty line," said Laidley.

Similar to New Brunswick, Nova Scotia is on the lower end, with $9,493 for individuals considered employable and $33,449 for a couple with two kids. Yet, Prince Edward Island's social assistance rates for single people considered employable is $16,861 — double the amount compared to New Brunswick. 

Standing in stark contrast to these numbers is the harsh reality that some New Brunswickers would have received more money through social assistance 20 years ago. According to the report, a person living with a disability would have received $12,469 in 2002. In 2022, they received $10,884. 

Head and shoulders shot of a woman with straight, long brown hair. Tobin LeBlanc Haley, a sociology professor who researches social policy and poverty, said that social assistance is a 'punitive system.' (Toronto Metropolitan University)

And social assistance rates have not kept with the rate of inflation, at least not until this year. 

New Brunswick's Department of Social Development did not respond to requests for an interview, but said via email that social assistance rates are "now indexed to inflation" as of April 2022. 

Tobin LeBlanc Haley, a sociology professor at the University of New Brunswick researching poverty, said that there is "a lack of political will" to raise social assistance rates — not only in New Brunswick, but across Canada. 

Haley said there's an "enduring attitude that people who aren't earning an employment income are not deserving of assistance."

Rates are kept low, she added, so that people are forced to work, even though many living on social assistance face extenuating circumstances that make finding and keeping work more arduous. 

"People aren't working because child care is so expensive, people aren't working because they don't have a functional transportation system in this province," she said. "People aren't working for lots of reasons. Because of ill health, but they don't qualify for extended benefits as having a disability."

Disability plays a role, and not everyone qualifies 

This is the case for MacKay, who said he suffers from invisible disabilities, including a learning disability, which makes him an uncompetitive candidate in many fields. He added it also makes it difficult for him to maintain work. 

And with the rising cost of living, trips to the grocery store have been increasingly stressful.

Prices continue to rise and with "shrinkflation," he's seen many products get smaller in size while prices go up.

"That's crippling when you've really got only a disposable or a variable income, you know, of 100 bucks or 200 bucks a month," he said.

SNAP households are expected to spend about 30 per cent of their own resources on food. In 2023, the estimated average benefit for one person was around $195 per month. MacKay says 'shrinkflation' has made it increasingly stressful to shop on a budget. (Allison Dinner/The Associated Press)

For MacKay, living on a meagre check is also a "social death," where participation in community activities becomes difficult, if not impossible, to afford.

"Live entertainment, movies, shows, things that people can do to get out there, cultural events and stuff. Most people in my building where I live get zero of that," said MacKay, who lives in a rooming house in Moncton. 

Haley called Canada's social assistance programs a "punitive system" and said that "people are being punished for not having access to employment."

"We all require support," said Haley. "We all access transportation systems, we all have this public education right. And social assistance is a public good and it is necessary for a functioning society."

The Department of Social Development said via email that "social assistance is tailored to the individual and the department works with each person on a case-by-case basis to find solutions that meet their needs best."

"There are many different types of support available in addition to the support rates offered through the social assistance program," said the department. This includes a health card covering drug and dental costs, transportation costs to medical appointments, or daycare costs.

But Haley said that these additional programs are beside the point.

"I mean those programs exist across the country," she said. "Those supports are important, and they should be available to every single recipient of social systems." 

She remains hopeful that rates could rise, especially given the province's $862.2 million budget surplus last fiscal year, and another, smaller surplus projected this year

"It would only be the right thing to do," she said. "To take some of our collective surplus and provide that to those of us who need it the most."

"This is an emergency situation," said MacKay. "People die prematurely for lack of income."

ABOUT THE AUTHOR

Rachel DeGasperis is a 2023 CBC News Joan Donaldson Scholar working as a reporter in New Brunswick. She holds a master of journalism degree from Toronto Metropolitan University and a bachelor of arts in political science from the University of Toronto. You can reach her at rachel.degasperis@cbc.ca

CBC's Journalistic Standards and Practices
 
 
 
 

PRESS RELEASE: The Common Front demands significant increases to social assistance rates

From: Common Front for Social Justice NB

August 1, 2023 – For Immediate Release

MONCTON - The Common Front for Social Justice is reacting to Maytree’s recent release of the 2022 edition of Welfare in Canada, in which New Brunswick had the lowest social assistance rates across all categories in all Canadian Provinces.

According to the 2022 report, in New Brunswick, unattached singles considered employable earned $8,031. Their income was 34% behind the average of all provincial rates and 31% behind the average of all Atlantic provincial rates. Unattached singles with a disability earned $10,884. This represented 30% behind the average of all provincial rates and 31% behind the average of all Atlantic provincial rates. Households with children were also behind the average of all provincial and Atlantic provincial rates.

Compared to two measures of poverty, the Market Basket Measure (MBM) and the Deep Income Poverty (MBM-DIP), there were two out of four social assistance categories where New Brunswick was the lowest in Canada. The income for an unattached single adult in Moncton represented only 33% of the MBM and 44% of the MBM-DIP, and the income of a couple with two children in Moncton represented 59% of the MBM and 78% of the MBM-DIP.

“We are demanding the rates be raised above the poverty line. The Maytree report shows that New Brunswickers living in poverty are facing an emergency. As a person living on social assistance, I live the effects of poverty on a daily basis. Social assistance recipients are suffering and can't afford basic necessities. Who can live decently on a little over $8,000 or $10,000? How many people will face dire consequences or die before our government acts? This report is an urgent call for compassionate New Brunswickers to mobilize to prevent people from losing their life due to inadequate income”, said Robert MacKay, Community Co-chair. 

The organization urges government to take the following actions:

  • Raise the social assistance rates above the poverty line in addition to the annual indexation.

  • Abolish the Household Income Policy.

  • Update the application and eligibility process of the Extended Benefits Program, including an updated social definition of disability.

  • Improve access and ability to secure tools to make remaining at home simpler and easier; as well as easy access to appropriate hours of homecare. 

  • Make all government websites accessible for persons with disabilities, including social assistance.

“As the Maytree report shows, social assistance recipients are living well-below the poverty line and in deep poverty. It’s inhumane. Social assistance income has declined these past few years for unattached single households deemed employable or with a disability, and households with children. New Brunswick is in a housing affordability and supply crisis. Homelessness rates are increasing. Our food insecurity rates were the second highest in all provinces in 2022. Poverty is costing the province over $1 billion a year”, said Janelle LeBlanc, Front NB Provincial Coordinator. “The Government of New Brunswick must act swiftly and invest in the social assistance program. If not, more people will continue to suffer and social problems will continue to grow”, she added.

Janelle LeBlanc, Provincial Coordinator

info@frontnb.ca
506-855-8977

236 St George St, Suite 412
Moncton, NB E1C 1W1

 

 https://maytree.com/about-us/mission-and-vision/

Our mission

Maytree is committed to advancing systemic solutions to poverty and strengthening civic communities. We believe the most enduring way to keep people out of poverty is to reimagine and rebuild our public systems to respect, protect, and fulfill the economic and social rights of every person in Canada.

 

Maytree’s media inquiries are handled by:

Markus Stadelmann-Elder
416-944-2627 ext. 284
mselder[at]maytree.com

 
 

Re Social Justice in NB YEA RIGHT Trust that Chucky Leblanc and his buddies such as Dominic Cardy and his old pals in the NDP in Nova Scotia and the British Laour Party know that is a myth EVERYWHERE not just NB

 

Office Marian Mancini, MLA

<mmancinimla@eastlink.ca>
Thu, Apr 27, 2017 at 10:55 AM
To: David Amos <motomaniac333@gmail.com>

Hello David,

Please be advised that Marian Mancini is not reoffering in the next provincial election and the seat for the Dartmouth South MLA is currently vacant.

Bev Doman
Constituency Assistant
Dartmouth South
33 Ochterloney Street, Suite 120
Dartmouth, NS B2Y 4R3
902-406-2301
mmancinimla@eastlink.ca
 
 
David Amos <motomaniac333@gmail.com>Tue, Apr 25, 2017 at 4:47 PM
To: vaccinelawsuit@gmail.com
---------- Forwarded message ----------
From: David Amos <motomaniac333@gmail.com>
Date: Tue, 25 Apr 2017 14:58:07 -0400
Subject: Re Social Justice in NB YEA RIGHT Trust that Chucky Leblanc
and his buddies such as Dominic Cardy and his old pals in the NDP in
Nova Scotia and the British Laour Party know that is a myth EVERYWHERE
not just NB
To: fcjsnb@nbnet.nb.ca, oldmaison <oldmaison@yahoo.com>, jbosnitch
< jbosnitch@gmail.com>, "Dominic.Cardy" <Dominic.Cardy@gnb.ca>, MulcaT
< MulcaT@parl.gc.ca>, "brian.gallant" <brian.gallant@gnb.ca>, PREMIER
< PREMIER@gov.ns.ca>, premier <premier@gnb.ca>, COCMoncton
< COCMoncton@gmail.com>
Cc: canadasndp@ndp.ca, "jean.laroche" <jean.laroche@cbc.ca>,
lenorezannmla@bellaliant.com, marian.mancini@nsndp.ca,
mmancinimla@eastlink.ca, execed@dal.ca, centre@dal.ca, lawinfo@dal.ca,
gsteele@dal.ca, Louis.Beaubien@dal.ca, lisarobertsmla@gmail.com,
denisepetersmla@bellaliant.com
, mlaqueens-shelb@eastlink.ca, David
Amos <david.raymond.amos@gmail.com>
, davewilsonmla
< davewilsonmla@eastlink.ca>

https://www.youtube.com/watch?v=aIP-pVW7qeI
 
 
                                   

New Brunswick Common Front for Social Justice Inc.don't fight for true
Justice in the Courts!
Charles Leblanc
Published on Apr 25, 2017


http://www.cbc.ca/news/canada/nova-scotia/spring-sitting-election-call-mcneil-mandate-cut-short-1.4083199

MLAs don't expect to settle in long as spring sitting begins
House Leader Michel Samson won't commit to keeping legislature sitting
through to budget vote
By Jean Laroche, CBC News Posted: Apr 25, 2017 6:00 AM AT

https://www.dal.ca/content/dam/dalhousie/pdf/faculty/management/execed/Law%20Flyer%20FINAL%20April%2020%202016.pdf

https://www.dal.ca/dept/cfps/news-events/events-calendar/2014/10/08/what_i_learned_about_politics.html

 What I Learned about Politics

GRAHAM STEELE
Former Minister of Finance and Member of the Nova Scotia Legislature

What I Learned About Politics:
Inside the Rise and Collapse of Nova Scotia’s NDP Government

Graham will talk candidly about what it's really like to be a
politician in Canada today. Jane Taber in the Globe & Mail writes "Set
in Nova Scotia, the experiences he describes could be those of any
politician in any legislature in the country, including the House of
Commons”.

Graham can be heard weekly on CBC Nova Scotia television and radio,
along with publishing a weekly CBC blog, commenting on Nova Scotia
politics. His book about his experience in the legislature and
government, titled What I Learned About Politics: Inside the Rise and
Collapse of Nova Scotia’s NDP Government (Nimbus) became an instant
bestseller when it was released in September 2014

Category

Family and friends
Time

Wednesday October 8, 2014 - 12:30 PM

Co-Sponsored with the Political Science Department and the Canadian
International Council

Contact

centre@dal.ca or 902.494.3769

http://frontnb.ca/about-us.asp
Executive Committee 2015-2016

Pauline Richard  -  co-chair

Johanne Petitpas - co-chair

Bill Bastarache - treasurer

Chantal Landry - secretary



Provincial Council 2015-2016

Labour representatives

Sharon Thompson

Daniel Légère

Thérèse Duguay

John Gagnon

Social representatives

Linda McCaustlin

Jerry Francis

Nancy Arseneau

Members-at-large

Eileen Tayes

Luc LeBlanc

Donna Clark

Adrien Léger

Provincial Coordinator

Jean-Claude Basque

Moncton Chapter President

Marilyn Riel-Crossman
 
 

Support Charles LeBlanc’s Legal Fund

Friends of Charles LeBlanc have launched a legal fund to help the well known Fredericton blogger afford a lawyer to fight a summary assault charge. LeBlanc receives social assistance and cannot afford a lawyer on his own. New Brunswick’s legal aid currently does not provide legal services for anyone who is charged with a summary offence.

The fund has raised $3,630 of its $5000 goal.

The NB Media Co-op is donating $100 to the fund and encouraging our members, partners and the wider community to donate to the fund as well.

Donate here.

For more information, please read the story, Friends of Charles LeBlanc denounce rejection of legal aid by Asaf Rashid.

Please share this post.

 

https://nbmediacoop.org/2015/08/25/friends-of-charles-leblanc-aim-to-help-him-afford-a-lawyer/ 

 

Friends of Charles LeBlanc denounce rejection of legal aid

A group called Friends of Justice has started a defence fund to help well known Fredericton blogger Charles LeBlanc afford a lawyer to fight a summary assault charge. LeBlanc receives social assistance and cannot afford a lawyer on his own.

The defence fund site, administered by Friends of Justice, states that the goal of their efforts will be to raise $5,000. They expect the trial to go well beyond the next court date, on August 26, and estimate that legal costs will mount. Friends of Justice says that the fund is independent of LeBlanc and that the money will go towards LeBlanc’s legal costs, not to him directly, with any remainder going towards poverty related charities.

LeBlanc applied for Legal Aid for for his first court appearance in April, but was refused. He appealed in May and was refused a second time.

Leblanc’s supporters have raised concerns over the denial of legal aid to LeBlanc.

“If you’re charged on a summary offence, the likelihood you’ll qualify for legal aid is highly remote,” says Andre Faust, spokesperson of Friends of Justice.

Faust stresses that this is a problem, “The judge has latitude on a summary offence to sentence you for up to 6 months in jail or fine you up to $5000.”

Faust says that in LeBlanc’s case, a judge could lean towards a harsher sentence. “Given that he’s embarrassed people in the structure, there may be what I call judicial bias against him.”

Faust is referring to LeBlanc’s blog, which pulls no punches in its criticism of local police, politicians and government bureaucrats.

“There’s a good chance he could face jail time if he represents himself,” Faust warns.

The concern is well founded. In 2010, Melina Buckley wrote a report for the Canadian Bar Association titled, Moving Forward on Legal Aid.

“The coverage criteria currently in place generally deny legal representation to low-income accused who have been charged with minor offences even though the impact of a criminal record would be extremely serious for them … unrepresented accused are often vulnerable and disadvantaged due to their personal characteristics, low levels of education and literacy, and higher rates of drug and alcohol addiction. Regardless of the seriousness of the charges against them, these individuals cannot adequately advocate for themselves. Many of them end up in prison as a result,” Buckley explains in the report.

The unrepresented fare worse than those with lawyers in both criminal and civil cases, the point being that the unrepresented generally cannot match lawyers in a courtroom. A report by Dr. Jula Hughes and E.L. MacKinnon in 2007, If there were Legal Aid in New Brunswick … a Review of Legal Services in New Brunswick emphasizes the disparity.

“The judges we consulted were unanimous in their conclusion that an unrepresented litigant is much less likely to achieve a favourable outcome than a represented litigant, particularly when self representation was not a choice,” the authors state.

In a comment to the NB Media Coop about LeBlanc’s predicament, Hughes stresses that the lack of legal aid coverage for someone facing a summary charge results in many problems. She says, “(Unrepresented) are not able to effectively participate in a criminal trial, so the consequences are more wrongful convictions, inappropriate pleas, delays, adjournments, longer trials, inappropriate sentences.”

Faust understands what LeBlanc is up against. For his next court appearance on August 26, LeBlanc is expecting to represent himself, as no legal representation has yet been secured.

“Charles has got to go up against an experienced Crown prosecutor who knows the court procedures and worked with judges on many occasions. Charles walks in without having that sophistication. The other handicap that Charles has with self representation is his ADHD (Attention Deficit Hyperactivity Disorder). He can’t focus,” says Faust.

In a statement on his blog, LeBlanc emphatically states, “I told the court many, many times, I’m not a lawyer. I need a lawyer.”

Faust adds, “We believe the allegations are groundless and that Charles has several defences available to him: however, because of his ADHD, lack of legal knowledge and experience he cannot articulate those defences to the court’s satisfaction.”

The defence fund site points out the LeBlanc is at risk of losing everything. “Charles receives an income assistance cheque of $567 per month. He lives in subsidized housing and if he goes to jail, he may end up homeless.”

Supporters of LeBlanc want to make clear that although they are currently putting their energy towards helping LeBlanc afford a lawyer, this issue is not just about LeBlanc.

“At the end of the day, we’re hoping that we can level the playing field,” says Faust. He notes that LeBlanc’s case touches on a number of important social issues. “This is a case that challenges legal aid, poverty and mental health.”

 

https://nbmediacoop.org/2021/03/13/salute-to-jean-claude-basque-common-front-organizer-and-activist-for-over-twenty-years/

Salute to Jean-Claude Basque, Common Front organizer and activist for over twenty years

On behalf of the entire membership of the Common Front for Social Justice as well as the many workers and citizens who have been positively impacted by his tireless activism, we are writing to give a very enthusiastic send-off to Jean-Claude Basque.

Basque has organized and fought for the rights of New Brunswickers for over twenty years. As a founding member of the Common Front and provincial coordinator of the Front for many years, we want to thank Basque for his work and wish him a pleasant retirement.

Basque is a native of Tracadie, New Brunswick and a long-time resident of Moncton. He was active as a labour and social justice advocate fighting for and organizing seasonal workers in northern New Brunswick. Fighting against EI cuts was an important part of the struggle for seasonal workers’ rights and Basque has authored a forthcoming book on the fight for EI.

Basque was also one of the pioneers of the Common Front. Seeing the need for an organization that could be a voice for some of the most marginalized and impoverished citizens in New Brunswick, Basque was one of the driving forces behind the formation of the Common Front for Social Justice in 1997, bringing together trade unionists and social justice activists. Basque’s dedication helped the Common Front persist and grow for the more than twenty years since that we have been working and fighting for low-income workers and people in poverty.

Basque understood the importance of combining activism and mobilization with research and facts. When you saw him in the supermarket, he often had pen and paper in hand, tirelessly tracking price changes affecting basic goods, and calculating food basket inflation rates for local communities. He commissioned and authored many reports and briefs over the years as well. Many of these documents have been used as part of campaigns and to lobby various levels of government and remain available on the Common Front’s website. Basque’s hard work made the Common Front a very credible advocacy group because of this facts-based approach, garnering the attention and respect of media and policymakers.

Basque also emphasized a creative, outside-the-box approach to actions and mobilization. From an art exhibit at Moncton city hall, to voting drives in 2014 targeting people living in poverty, Basque understood that a variety of events, strategies, and actions needed to be taken for the Common Front to reach the diverse public of New Brunswick.

After cuts to the EI system by the Harper government that would leave unemployed workers eating beans for the winter, Basque was instrumental in organizing a number of actions where beans were served up in front of Robert Goguen’s office in Dieppe and Tilly Gordan’s office in Miramichi. The events were dubbed Beans for Federal Minister Finley, and pressured the government to face up to the effects of its decisions.

His friends in the labour movement also remember his indefatigable solidarity. His willingness to participate in pickets on short notice when striking workers needed extra bodies—even in the middle of the coldest winter nights, as he did once for PSAC Canada Post members—did not go unnoticed.

Basque also found time to pursue the creative arts, authoring three novels in his series BecFuté Enquête. He has also published two children’s books, the bilingual Griffette sauve la forêt/Clawdy Saves the Forest and the French-language Le secret de la toison dorée (The Secret of the Golden Fleece).

This year will be the Common Front’s first without Basque’s leadership. We want to wish him a very happy retirement from the Front and to celebrate his contributions to our organization and our province by continuing the hard fight for greater justice and solidarity in society. The COVID-19 pandemic and the subsequent economic and social crises have only vindicated the need to promote solidarity, inclusion, and policies which work towards the elimination of poverty and dignity and justice for all.

Abram Lutes is the provincial coordinator of the Common Front for Social Justice.

 

RE The New Brunswick Common Front for Social Justice I just talked a lady who replaced Abram Lutes and she claimed to have written this document Correct?

 

David Amos

<david.raymond.amos333@gmail.com>
Tue, Feb 7, 2023 at 3:38 PM
To: "Waycott, Stephen" <SWaycott@nbpower.com>, mletson@lawsoncreamer.com, "blaine.higgs" <blaine.higgs@gnb.ca>, "Holland, Mike (LEG)" <mike.holland@gnb.ca>, "Mitchell, Kathleen" <Kathleen.Mitchell@nbeub.ca>, "louis-philippe.gauthier@cfib.ca" <louis-philippe.gauthier@cfib.ca>, "frederic.gionet@cfib.ca" <frederic.gionet@cfib.ca>, "david.sollows@gnb.ca" <david.sollows@gnb.ca>, "Daly, Gerard" <daly@nbnet.nb.ca>, "hanrahan.dion@jdirving.com" <hanrahan.dion@jdirving.com>, "nrubin@stewartmckelvey.com" <nrubin@stewartmckelvey.com>, "coneil@stewartmckelvey.com" <coneil@stewartmckelvey.com>, "lmclements@stewartmckelvey.com" <lmclements@stewartmckelvey.com>, "brudderham@stewartmckelvey.com" <brudderham@stewartmckelvey.com>, "Brandy.Gellner@libertyutilities.com" <Brandy.Gellner@libertyutilities.com>, "dave.lavigne@libertyutilities.com" <dave.lavigne@libertyutilities.com>, "Gilles.volpe@libertyutilities.com" <Gilles.volpe@libertyutilities.com>, "JohnFurey@fureylegal.com" <JohnFurey@fureylegal.com>, "Petrie, Jamie" <JPetrie@nbpower.com>, "Murphy, Darren" <DaMurphy@nbpower.com>, "Crawford, Brad" <BCrawford@nbpower.com>, "Gordon, Laura" <LGordon@nbpower.com>, NBP Regulatory <NBPRegulatory@nbpower.com>, "Young, Dave" <Dave.Young@nbeub.ca>, "Aherrington@lawsoncreamer.com" <Aherrington@lawsoncreamer.com>, "Dickie, Michael" <Michael.Dickie@nbeub.ca>, Veronique Otis <Veronique.Otis@nbeub.ca>, "Colwell, Susan" <Susan.Colwell@nbeub.ca>, "dustin@emrydia.com" <dustin@emrydia.com>, Melissa Curran <Melissa.Curran@nbeub.ca>, "Vincent.musco@bateswhite.com" <Vincent.musco@bateswhite.com>, "richard.williams@gnb.ca" <richard.williams@gnb.ca>, "rdk@indecon.com" <rdk@indecon.com>, "tyler.rajeski@twinriverspaper.com" <tyler.rajeski@twinriverspaper.com>, "darcy.ouellette@twinriverspaper.com" <darcy.ouellette@twinriverspaper.com>, "Hoyt, Len" <len.hoyt@mcinnescooper.com>, "paul.black@twinriverspaper.com" <paul.black@twinriverspaper.com>, "tammy.grieve@mcinnescooper.com" <tammy.grieve@mcinnescooper.com>, "jeff.garrett@sjenergy.com" <jeff.garrett@sjenergy.com>, "shelley.wood@sjenergy.com" <shelley.wood@sjenergy.com>, "dan.dionne@perth-andover.com" <dan.dionne@perth-andover.com>, "pierreroy@edmundston.ca" <pierreroy@edmundston.ca>, "pzarnett@bdrenergy.com" <pzarnett@bdrenergy.com>, "sstoll@stollprofcorp.com" <sstoll@stollprofcorp.com>, NBEUB/CESPNB <General@nbeub.ca>
Cc: motomaniac333 <motomaniac333@gmail.com>, info@frontnb.ca, frontnb@bellaliant.net, "Marco.Mendicino" <Marco.Mendicino@parl.gc.ca>, "kris.austin" <kris.austin@gnb.ca>, "Mark.Blakely" <Mark.Blakely@rcmp-grc.gc.ca>, "martin.gaudet" <martin.gaudet@fredericton.ca>, "Mike.Comeau" <Mike.Comeau@gnb.ca>


BTW I have not heard back from Chief Gaudet or the RCMP and I suspect
I never will


CONTACT US

Janelle LeBlanc, Provincial Coordinator

info@frontnb.ca
506-855-8977

236 St George St, Suite 412
Moncton, NB E1C 1W1

EUB File Number 74613

New Brunswick Energy and Utilities Board
Comments by the New Brunswick Common Front for Social Justice
re: NB Power 2023-2024 General Rate Application
Matter 541
Front commun pour la justice sociale du Nouveau-Brunswick


New Brunswick Common Front for Social Justice
236, rue St George St, Suite 412
Moncton, NB E1C 1W1
(506) 855-8977 - info@frontnb.ca - frontnb.ca

Page 2

The New Brunswick Common Front for Social Justice is providing the
following written
comments and associated evidence for consideration in the Matter 541,
an Order approving the schedule of NB Power rates (“The applicant”)
for the fiscal year 2023-24. This order reflects an eight point nine
per cent (8.9%) increase across all customer classes, effective April
1, 2023, among other recommendations.

The New Brunswick Common Front for Social Justice (FrontNB) works for
more justice, better social policies and greater solidarity within
society. In the long term, we believe that our province must work
toward the elimination of injustices which cause poverty. The FrontNB
submits the applicant’s request for a rate increase should be denied.

Too many people in New Brunswick are struggling to make ends meet with
the rising cost of living and low incomes. From rent to groceries to
utilities increasing in 2022, people living with fixed incomes and low
income workers are falling behind and cannot afford to pay more for
their electricity.

Living in poverty in New Brunswick

In 2020, 7.6% of New Brunswickers, nearly 60 000 people, were
considered low income, thus living in poverty, based on the 2018
Market Basket Measure (MBM)1,2. Persons between the ages of 18 to 64
(9%), over the age of 65 (5.1%) and persons not in economic families
(22.6%) had the highest rates of people living in low income in New
Brunswick. Single elderly folks had the highest percentage of persons
in low income in Canada (15.2%)3.

In 2020, the number of all family units4 in low income in New
Brunswick was 72,900 based on the Census Family Low Income Measure5
(LIM). Single people living alone or with roommates represented most
New Brunswickers in low income: 51,190.

Between 60 000 and 72,900 New Brunswickers were living in poverty in
2020 depending on the measure used (MBM or LIM). Without a doubt, that
number increased in the last two years, following the end of some
federal COVID-19 benefits such as the Canada Emergency Response
Benefit, the Canada Recovery Benefit, the Canada Recovery Caregiving
Benefit and

5 “Families are defined as having low income if their adjusted
after-tax income falls below 50% of the total population median
adjusted after-tax income. Adjusted after-tax income is derived by
dividing census family income by the square root of the census family
size and assigning this value to all persons in the census family.
This adjustment
distributes income among the members of the census family, and takes
into account the economies of scale present in larger families, the
increasing number of people living on their own and the decline in
family size over time.” (Ibid)
4 “Family units include census families and persons not in census
families. Census families are comprised of:
1) couples (married or common-law, including same-sex couples) living
in the same dwelling with or without children, and
2) single parents (male or female) living with one or more children.
Persons who are not matched to a family become persons not in census
families. They may be living alone, with a family to whom they are
related, with a family to whom they are unrelated or with other
persons not in census families.” (Statistics Canada. Table
11-10-0020-01 After-tax low income status of census families based on
Census Family Low Income Measure
(CFLIM-AT), by family type and family composition)
3 Ibid.
2 Ibid
1 Market Basket Measure is “based on the cost of a specific basket of
goods and services representing a modest, basic standard of living. It
includes the costs of food, clothing, shelter, transportation and
other items for a reference family. These costs are compared to the
disposable income of families to determine whether or not they fall
below the poverty line.” (Statistics Canada, Table 11-10-0135-01 Low
income statistics by age, sex and economic family type)

Page 3

the Canada Recovery Sickness Benefit in combination with the inflation
rates skyrocketing across Canada.

Inflation rates and cost of living

Inflation rates soared in New Brunswick in 2022, wreaking havoc on
minimum wage workers, people living in poverty, social assistance
recipients, families, seniors and people with disabilities. The cost
of rent, groceries (+11.0% in December 20226), personal care supplies
(+9.9% in December 20227), gas and utilities rose across the country
and in New Brunswick making it difficult for people to afford basic
necessities. The increase in average hourly wages in December 2022
(+5.1%8) in Canada did not keep up with inflation rates in the country
and in New Brunswick for the same month (6.3%9,10). In addition, New
Brunswick’s average debt per person in last year’s third quarter
increased from the second quarter to $21,937 which is above the
national average. More people used credit cards due to increased cost
of living11.

NB Power has already increased their rates about 2% in April 2022. The
surge in prices and utilities is a disadvantage for New Brunswickers
living in poverty, on a fixed income or low and minimum wage.

New Brunswickers are also having a difficult time paying for one of
the most basic needs: food. PROOF, a food insecurity research program
at the University of Toronto, released its 2021 food insecurity study
last summer and New Brunswick had the second highest rate of food
insecurity in Canada (19%), behind Alberta (20.3%)12. Nineteen per
cent or almost 1 in 5 households were food-insecure in 2021, totalling
to 140,000 individuals or 64,000 households. Most of these households
were moderately to severely food-insecure. PROOF also found that,
“half of the households who were food insecure relied on wages,
salaries, and self-employment. Too many households are unable to make
ends meet through employment, and our social safety net is unable to
protect those in need.13” Food banks were met also with an increase in
demand this
year14. If people in New Brunswick can’t afford food, how can they
cover higher electricity bills?


14 Global News. New Brunswick food banks grapple with increasing
demand, June 3, 2022.
https://globalnews.ca/news/8892866/new-brunswick-food-banks-increasing-demand/
13 Ibid.
12 PROOF. New report finds persistently high rates of food insecurity,
policy action on inadequate income needed,
August 16, 2022.
https://proof.utoronto.ca/2022/new-report-finds-persistently-high-rates-of-food-insecurity-policy-action-on-inadequate-i
ncome-needed/

11 Equifax. Total Consumer Debt Climbs to $2.36 Trillion as Consumers
Lean on Credit Cards, December 6, 2022.
http://bit.ly/3w8YjFS
10 Statistic Canada. Table 2 - Consumer Price Index for the provinces
and for Whitehorse, Yellowknife and Iqaluit -
Not seasonally adjusted.
https://www150.statcan.gc.ca/n1/daily-quotidien/230117/t002a-eng.htm.
Released January
17, 2023.
9 Statistic Canada, 2022. Consumer Price Index, December 2022,
https://www150.statcan.gc.ca/n1/daily-quotidien/230117/dq230117a-eng.htm.
Released January 17, 2023.
8 Statistic Canada. Labour Force Survey, December 2022,
https://www150.statcan.gc.ca/n1/daily-quotidien/230106/dq230106a-eng.htm.
Released January 6, 2023.
7 Ibid.
6 Statistic Canada. Consumer Price Index, December 2022,
https://www150.statcan.gc.ca/n1/daily-quotidien/230117/dq230117a-eng.htm.
Released January 17, 2023

Page 4

Lastly, homelessness was up 66% in Moncton, Saint John and Fredericton
last year15. There is a housing crisis in New Brunswick with lack of
publicly funded housing such as social, coop and non-profit. Many
people find themselves unhoused as they cannot afford rent prices in
many cities and communities across the province with their fixed
income and the current minimum wage. New Brunswickers are being priced
out of living16. The rent cap ended December 31 leaving renters
vulnerable to rent increases - there are reports of tenants receiving
rent increases between 85% and more than 100% from their landlord17.
If people in New Brunswick can’t afford housing, how can they cover
higher electricity bills?

New Brunswick workers cannot make ends meet

The Government of New Brunswick increased the minimum wage from $11.75
in October 2021 to $13.75 in October 2022. While this is welcomed, it
is not considered a living wage. The Human Development Council
considers a living wage to be an average of $20 per hour for New
Brunswick18. These calculations include household expenses such as the
cost of utilities.

In 2020, the Low Income Measure for one person before tax-income was
$30,401 and after taxes was $26,50319. The annual gross income for a
single person working full-time at 40 hours per week at the current
minimum wage ($13.75) in New Brunswick is $28,60020. The net pay after
federal and provincial deductions is $25,807.72. Minimum wage earnings
for one person in New Brunswick end the year with a deficit of $695.28
and are considered low income based on the 2020 Low Income Measure.
Similarly, a couple with one minimum wage and one child also encounter
an annual deficit with the current minimum wage in comparison to the
2020 Low Income Measure21. In addition, New Brunswick had the lowest
median wage ($56,900) in Canada for families, couples and single
persons in 2020 22.

There were more workers earning minimum wage in 2021 (16,500) than
2020 (15,500), thus an increase of low-income workers, including older
workers aged 55+23. According to the Government of New Brunswick's
2022 Minimum Wage Report, in 2021, 52% of minimum wage workers were
over the age of 20, many paying for their own utilities. The majority
of minimum wage earners are women (58%) and over 70% had a high school
diploma or less24.


24 Government of New Brunswick, 2022. New Brunswick Minimum Wage Report, p.3-4.
23 Common Front for Social Justice, 2022. Proposals for the Minimum
Wage Review, p. 2.
22 Statistics Canada. Table 11-10-0190-01 Market income, government
transfers, total income, income tax and
after-tax income by economic family type
21 Common Front for Social Justice, 2022. Proposals for the Minimum
Wage Review, p. 3.
20 Though we are using 40 work hours per week in our calculations, we
know through the data that workers try to
make ends meet on precarious, part-time hours. The province’s own
statistics confirm that 63% of minimum wage
workers worked part-time.
19 Statistics Canada. Low-income measures thresholds (LIM-AT and
LIM-BT) for private households of Canada, 2020.
https://www12.statcan.gc.ca/census-recensement/2021/ref/dict/tab/index-eng.cfm?ID=T2_4.
Released July 13, 2022.
18 Human Development Council, 2022. Living Wages in New Brunswick 2022.
https://sjhdc.ca/wp-content/uploads/2022/10/Living-Wages-in-New-Brunswick-2022.pdf
17 CBC NB. Former MP among tenants shocked by rent more than doubling
in Kent County apartment building,
January 16, 2023.
https://www.cbc.ca/news/canada/new-brunswick/kent-county-rent-increase-vautour-1.6715598
16 919 The Bend. Myriad of reasons for homelessness in Moncton,
September 19, 2022.
https://www.919thebend.ca/2022/09/19/6704/
15 Telegraph Journal. Homelessness is up 66% in N.B.’s three big
cities, July 29, 2022.
https://tj.news/telegraph-journal/101930478


Page 5

Low wage workers are paying more for essential needs and items while
their salaries are not keeping pace with inflation rates. An increase
in electricity rates would disadvantage them even more.

New Brunswickers on fixed income struggling to afford basic necessities

New Brunswickers on fixed income are also suffering. Social assistance
rates in 2021 in New Brunswick are way below the rates in the other
Atlantic provinces:
Table 1: Total yearly social assistance income, 202125
Province Unattached
single
considered
employable
Unattached
single with a
disability
Single parent,
one child
Couple, two
children
PEI $13,838 $15,674 $26,639 $39,686
NL $11,390 $18,226 $25,044 $29,971
NS $8,385 $11,559 $21,134 $30,571
NB $7,499 $10,298 $21,595 $27,177
New Brunswick’s social assistance income is the lowest of all
provinces, including Atlantic Canada, for unattached singles with or
without a disability. For example, the 2020 Market Basket Measure for
a medium population center in New Brunswick is $21,641. If we compare
this measure with the social assistance rates for unattached singles
considered employable and unattached singles with a disability (Table
1), there is a difference of $14,142 and $11,343, respectively. For
people living in Fredericton, the difference is $15,107 and $12,308,
respectively. Social assistance recipients are living well below the
poverty line and in extreme poverty26. They cannot afford any
increases in electricity rates, rent or food.

Conclusion

Tens of thousands of New Brunswickers are facing a financial crisis
due to a low fixed income, low minimum wage, and soaring cost of
living from rent to groceries to personal care products to utilities
such as electricity rates. Homelessness rates are increasing across
the province. New Brunswick has the lowest median wage and social
assistance rates in Canada, and the fifth lowest minimum wage in the
country. More people are working minimum wage jobs, including women
and older workers, who are statistically more likely to live in
poverty. New Brunswick had one of the highest food insecurity rates in
2021 and more people visited food banks than in previous years. People
are being priced out of living in New Brunswick and cannot afford more
increases for their basic needs and essential items, such as electricity.

26 Common Front for Social Justice, 2022. Raise the rates now! Demands
for Social Assistance Reform in New
Brunswick. http://bit.ly/3QOi0w8
25 Maytree, Summary of 2021 welfare incomes across Canada.
https://maytree.com/welfare-in-canada/canada/.
Released in November 2022.


Page 6

Increasing the NB Power rates will disadvantage people living in
poverty and on fixed income, social assistance recipients and low-wage
workers who are already struggling to survive, many of whom are
historically and statistically more likely to live in poverty, like
women and seniors.

The NB Power CEO earnings in the last fiscal year were between
$475,000 to $499,999, some of the highest paid salaries in the
province's various departments and agencies27,28. The salary
disclosure is based on the calendar year ended December 31, 2021. This
salary is about 65 times the social assistance yearly income for
unattached singles considered employable and approximately 47 times
the social assistance yearly income for unattached singles with a
disability. It would be unacceptable to increase rates on the backs of
those who are already struggling to survive.

The FrontNB is asking the New Brunswick Energy and Utilities Board to
deny the applicant’s request for rate increase and find other avenues
to increase their revenues.


---------- Forwarded message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Tue, 7 Feb 2023 14:22:24 -0400
Subject: Re: Matter 486 - NB Mr Hoyt has been a busy lawyer with the EUB
To: "Waycott, Stephen" <SWaycott@nbpower.com>,
mletson@lawsoncreamer.com, "blaine.higgs" <blaine.higgs@gnb.ca>,
"Holland, Mike (LEG)" <mike.holland@gnb.ca>
Cc: "Mitchell, Kathleen" <Kathleen.Mitchell@nbeub.ca>,
"louis-philippe.gauthier@cfib.ca" <louis-philippe.gauthier@cfib.ca>,
"frederic.gionet@cfib.ca" <frederic.gionet@cfib.ca>,
"david.sollows@gnb.ca" <david.sollows@gnb.ca>, "Daly, Gerard"
<daly@nbnet.nb.ca>, "hanrahan.dion@jdirving.com"
<hanrahan.dion@jdirving.com>, "nrubin@stewartmckelvey.com"
<nrubin@stewartmckelvey.com>, "coneil@stewartmckelvey.com"
<coneil@stewartmckelvey.com>, "lmclements@stewartmckelvey.com"
<lmclements@stewartmckelvey.com>, "brudderham@stewartmckelvey.com"
<brudderham@stewartmckelvey.com>,
"Brandy.Gellner@libertyutilities.com"
<Brandy.Gellner@libertyutilities.com>,
"dave.lavigne@libertyutilities.com"
<dave.lavigne@libertyutilities.com>,
"Gilles.volpe@libertyutilities.com"
<Gilles.volpe@libertyutilities.com>, "JohnFurey@fureylegal.com"
<JohnFurey@fureylegal.com>, "Petrie, Jamie" <JPetrie@nbpower.com>,
"Murphy, Darren" <DaMurphy@nbpower.com>, "Crawford, Brad"
<BCrawford@nbpower.com>, "Gordon, Laura" <LGordon@nbpower.com>, NBP
Regulatory <NBPRegulatory@nbpower.com>, "Young, Dave"
<Dave.Young@nbeub.ca>, "Aherrington@lawsoncreamer.com"
<Aherrington@lawsoncreamer.com>, "Dickie, Michael"
<Michael.Dickie@nbeub.ca>, Veronique Otis <Veronique.Otis@nbeub.ca>,
"Colwell, Susan" <Susan.Colwell@nbeub.ca>, "dustin@emrydia.com"
<dustin@emrydia.com>, Melissa Curran <Melissa.Curran@nbeub.ca>,
"Vincent.musco@bateswhite.com" <Vincent.musco@bateswhite.com>,
"richard.williams@gnb.ca" <richard.williams@gnb.ca>, "rdk@indecon.com"
<rdk@indecon.com>, "tyler.rajeski@twinriverspaper.com"
<tyler.rajeski@twinriverspaper.com>,
"darcy.ouellette@twinriverspaper.com"
<darcy.ouellette@twinriverspaper.com>, "Hoyt, Len"
<len.hoyt@mcinnescooper.com>, "paul.black@twinriverspaper.com"
<paul.black@twinriverspaper.com>, "tammy.grieve@mcinnescooper.com"
<tammy.grieve@mcinnescooper.com>, "jeff.garrett@sjenergy.com"
<jeff.garrett@sjenergy.com>, "shelley.wood@sjenergy.com"
<shelley.wood@sjenergy.com>, "dan.dionne@perth-andover.com"
<dan.dionne@perth-andover.com>, "pierreroy@edmundston.ca"
<pierreroy@edmundston.ca>, "pzarnett@bdrenergy.com"
<pzarnett@bdrenergy.com>, "sstoll@stollprofcorp.com"
<sstoll@stollprofcorp.com>, NBEUB/CESPNB <General@nbeub.ca>

---------- Original message ----------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Wed, 27 Jan 2021 00:00:38 -0400
Subject: EUB 486
To: motomaniac333 <motomaniac333@gmail.com>

ACTING CHAIRPERSON: Okay. Thank you. So that being considered, so
those minimum filing requirements that are included in the letter of
January the 19th 2021 by Mr. Letson to the chief clerk will be, at a
minimum, the information that needs to be provided to the chief clerk
prior to the first round of IRs.
Just one comment, Mr. Hoyt, the Board will be retaining an independent
expert which will be Mr. Jason Parent from the Kent Group. And I also
understand that Mr. Parent may have some comment regarding on the
proposed MFR. So if that is an issue, we will be informing the
applicant if there is any other requirements of the minimal filing
requirements once he starts his process of reviewing the information.

Kent Group Ltd.
367 Princess Ave.
London, Ontario
N6B 2A7

Jason.Parent@kalibrate.com
519-672-7000 x 112

Jason Parent is the Managing Director at Kent Group Ltd. His
responsibilities encompass a range of project management roles, as
well as the analysis and reporting of data for our clients. Mr.
Parent’s functional specialties include the areas of regulatory
analysis, petroleum market and price/ margin analysis, forecasting and
performance benchmarking.

Mr. Parent has seventeen years experience in providing consulting and
performance data analysis in the petroleum industry. This industry
expertise is supported by a degree in Business Administration, having
graduated with distinction. Jason plays a vital role in the management
of relationships with our extensive client base, meeting their needs
through a diverse range of services including consulting and custom
project work, development of custom data delivery and reporting, as
well as assisting clients in the development of specific project needs
and deliverables.



Media release January 7, 2021
The New Brunswick Energy and Utilities Board has received an
application from Irving Oil requesting an interim increase to the
wholesale margins for motor fuels and furnace oil of $0.035/litre, as
well as a final order increasing the wholesale margin for motor fuels
from $0.0651/litre to $0.1054/litre and an increase to the wholesale
margin for furnace oil from $0.055/litre to $0.0963/litre.
The Board has set a pre-hearing conference for Monday, January 25 at
9:30 a.m. for the Board to consider the following:
a. Minimum Filing Requirements;
b. The specific process that will be used by the Board to consider
this application;
c. An appropriate filing schedule;
d. Intervenor Requests;
e. Irving Oil’s request for an interim order under section 40 of the
EUB Act, including any written or oral submission of approved
Intervenors; and,
f. Any other relevant issue.
The pre-hearing conference will be held via the Zoom Web Conference
platform. Interested parties can visit the Board’s website at
www.nbeub.ca for details on how to request to intervene.
The application and related documents can be viewed at www.nbeub.ca by
searching Matter number 486.
The Board’s proceedings are open the general public to attend and
observe, and as such, the Board invites any person or organization
interested in observing the proceedings to contact the Board at
general@nbeub.ca to obtain the sign-in information for any of the
upcoming hearings.
For more information contact:
Kathleen Mitchell
506-658-2504

VIA EMAIL
January 19, 2021
Kathleen Mitchell, Chief Clerk
New Brunswick Energy & Utilities Board
PO Box 5001
Saint John, NB E2L 4Y9
Dear Ms. Mitchell:
Re: An Application by Irving Oil Marketing G.P. and Irving Oil
Commercial G.P. (Matter 486), Our File No. 6994-009
Further to the Order of the Energy and Utilities Board (Board) in this
Matter dated January 8, 2021, wherein it indicated that it will
consider, inter alia, minimum filing requirements for this Matter, we
are writing to advise of the Board staff’s recommendations on that
point. To assist in the review of the application, Board staff
recommends the adoption of the following minimum filing requirements:
1) The information related to the factors the Board must consider as
set out at subsection 9(1) of NB Regulation 2006-41:
a. Cost of transporting fuel from New York Harbor
b. Volumes of sales
c. Storage Costs
d. Inventory turnover rates
e. Applicable levies and insurance costs
2) The underlying calculations for the tables found at page 1 of
Appendix A of Exhibit IO 1.02
3) All supporting documentation for the following information
contained on page 2 of Appendix A
a. Terminal fees,
b. Transportation and Port Fees,
c. Working Capital Management and Overhead,
d. Federal Compliance Costs
4) Please provide the total sales

In addition, we advise that Board staff expect to retain an
independent expert to review the application and file evidence in
Matter 486. The expert may have additional recommendations for minimum
filing requirements, and if so, those recommendations will be provided
to all parties prior to the Pre-hearing Conference scheduled for
January 25th, 2021.
We trust you will find this in order.
Yours very truly,
LAWSON CREAMER
Matthew R. Letson (P.C.*), Partner
Direct: (506) 633-3533
mletson@lawsoncreamer.com


Darren Gillis
Irving Oil
10 King Square South
Saint John, NB E2L 0G3
Telephone: (506) 647-4162
Email: darren.gillis@irvingoil.com

Scholten's Grocery
90 Hubbard Road
Fredericton NB E3B 6B4

Chris.Scholten@Scholtens.ca
(506) 459-4643

Jerry.Scholten@Scholtens.ca
(506) 457-0566


Hafsah Mohammad, Organizational Representative
Grassroots NB
114 Somerset Drive
Moncton, NB E1A 3T9
(587) 597 - 2953
nb.grassroots@gmail.com


Jennifer Bueno
Solidarité Fredericton Solidarity Volunteer
Solidarité Fredericton Solidarity
15-215 Main Street, Fredericton, NB, E3A 1E1
(506) 962-0521
jennifer.bueno@unb.ca
Simon Ouellette
Solidarité Fredericton Solidarity
4-122 Aberdeen Street, Fredericton, NB E3R 1R5
(506) 229-6038
ouellette.acadie@gmail.com


Lynaya Astephe, Chair
Leap4wards
1877 Red Head Rd,
Saint John, NB E2P 1J5
[506-653-7959
leap4wards@gmail.com

Aditya Rao, Human Rights Representative
Canadian Union of Public Employees
91 Woodside Lane
Fredericton, NB E3C 0C5
(506) 247-0137
arao@cupe.ca


Abram Lutes,
Provincial Coordinator
New Brunswick Common Front for Social Justice
236 St George St, Suite 412
Moncton, NB E1C 1W1
506-855-8977
frontnb@bellaliant.net






https://www.facebook.com/MerylSartyPPCNBSW/about/

(506) 660-0028

Contact. 506-262-3353 meryl.sarty@gmail.com ...

travis-ppc.nbsw@protonmail.com,

Letters

Mary Milander
Saint John

Denis Y. Boulet

Brent Theriault

Sunny Corner Enterprises Inc
Eric Lloyd President
259 Dalton Ave.
Miramichi, NB
E1V 3C4
Tel: (506) 622-5600
info@sunnycorner.ca

Lorneville Mechanical Contractors Ltd.
75 Stinson Drive
Saint John, NB E2M 7E3
Jim Brewer President
Todd Bethune, CFO
Styve Dumouchel, CEO
(506) 635-8090

New Brunswick Building Trades Council
Jean-Marc Ringuette, President
26 Kiwanis Court
Saint John, NB  E2K 4L2
Phone: (506) 635-1221
jeanmarc@ibew502.ca

https://www.cbc.ca/news/canada/new-brunswick/irving-oil-energy-board-margins-1.5886011

Irving Oil supporters and skeptics lining up on opposite sides of
company price hike request

Energy and Utilities Board holds first hearing into requested
wholesale margin increases today
Robert Jones · CBC News · Posted: Jan 25, 2021 7:26 AM AT

An initial hearing into Irving Oil's request for increases in
petroleum wholesale prices begins today in front of the New Brunswick
Energy and Utilities Board with supporters raising the stark prospect
of the company shutting down if it does not get what it is asking for
and skeptics warning the board against being manipulated.

"We must be cautiously aware that no business is too big to fail,"
read one letter on the issue received and posted publicly last week by
the EUB.

"They are playing the Board,"  read another about the company's application.

New Brunswick adopted petroleum price regulation in 2006 and put the
Energy and Utilities Board in place to oversee it.  Currently
wholesalers are allowed to add 6.51 cents per litre to the price of
motor fuels they handle (gasoline and diesel) and 5.5 cents per litre
to furnace oil.

Irving Oil is applying for a 62.8 per cent (4.09 cent per litre)
increase in the allowed wholesale margin for motor fuels and a 54.9
per cent (3.02 cent per litre) increase in the margin for furnace oil.
New Brunswick's Energy and Utilities Board has scheduled a full
hearing into Irving Oil's request for wholesale petroleum price
increases for March 30. It will hear arguments Monday for and against
an emergency interim increase. (Robert Jones/CBC News)

The increases are substantially more than the 11 per cent growth in
inflation that has occurred since the margins last changed in March
2013, but the company says fundamental changes in the oil industry and
a sudden collapse in demand for petroleum products caused by the
COVID-19 pandemic have rendered those old amounts obsolete.

"Petroleum pricing regulations in New Brunswick were created 15 years
ago," Darren Gillis, Irving Oil chief marketing officer, said in an
affidavit supporting the application. "They did not contemplate the
challenges of the last several years and were not designed to react to
a global pandemic."

If granted in full, the increases would apply to all New Brunswick
wholesalers and would cost consumers about $60 million per year in
higher retail prices.

The Energy and Utilities Board has tentatively scheduled a full
hearing into the matter for the end of March, but in its application
Irving Oil said its situation is dire and it cannot wait that long for
relief.
Irving Oil's Darren Gillis is heading the company's effort to have the
Energy and Utilities Board approve $60 million in increased petroleum
margins for New Brunswick wholesalers. (Irving Oil)

Instead it is asking for 85 per cent of the requested increase on
motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil
(3.0 cents) to be granted immediately pending the outcome of the full
hearing next spring.

"The entire supply chain in under pressure and at risk," Gillis said
in the application. "COVID-19 has exacerbated challenges for the
industry and urgent action is required."

That tone has alarmed supporters of Irving Oil who fear the company is
in trouble. Last week, the company  announced layoffs at its Saint
John refinery and worried suppliers have been mobilizing to urge the
EUB to grant its request in full.

Eric Lloyd is president of Sunny Corner Enterprises Inc., an
industrial construction firm in Miramichi that does business with
Irving Oil.

Lloyd wrote to the EUB to say it "must take action to understand the
economic forces that are stressing a very important contributor to our
economy," and warned it is not "too big to fail" in asking its request
be granted.
Hafsah Mohammad is with the Moncton social justice and climate action
group Grassroots NB, one of several groups registered to oppose Irving
Oil's application. (Tori Weldon/CBC News)

Another Irving supplier, Lorneville Mechanical Contractors Ltd. in
Saint John, also sent a letter expressing concern about the company's
financial health.

"We understand that Irving Oil has identified New Brunswick's highly
regulated fuel pricing system as a challenge to its ability to operate
reliably and sustainably," wrote Lorneville's president Jim Brewer, in
endorsing immediate increases.

Local building trade unions warned the viability of the refinery
itself could hinge on the EUB's decision.

"It would be devastating to lose this asset," wrote union president
Jean-Marc Ringuette in his letter supporting Irving Oil's request.

But others are skeptical.

A number of anti-poverty, union and social justice organizations have
signed up to oppose Irving Oil's application and a clutch of private
citizens, like Saint John resident Mary Milander, also sent letters
opposing  the increase.

"I believe that that the people of Saint John and the whole province
have suffered financially much more than the oil industry during the
pandemic," Milander wrote to the board.
Natural Resources and Energy Development Minster Mike Holland stoked
early controversy about Irving Oil's request by writing a letter to
the Energy and Utilities Board telling it the application should be
dealt with quickly. (Radio-Canada)

Although yet to start, the hearing has already been highly
controversial following news last week that New Brunswick Natural
Resources Minister Mike Holland sent his own letter to the EUB
expressing concerns about Irving Oil's ability to supply products at
current prices.

That led to criticism from all three opposition parties and a call for
Holland to resign from Green Party Leader David Coon. Premier Blaine
Higgs defended Holland's intervention.

The EUB has granted interim relief to applicants in other cases
before, but normally on the condition money collected from consumers
be returned if the increases are later found to be unjustified.

A complicating factor in Irving Oil's application for immediate relief
is that Gillis has acknowledged that other than home heating oil
sales, returning money to customers will not be possible.

"In the unlikely case the permanent increase for motor fuels is lower
than the interim increase, Irving Oil cannot effectively and fairly
rebate the difference," he said.



https://www.cbc.ca/news/canada/new-brunswick/irving-oil-wholesale-petroleum-price-1.5887093


Irving Oil request for 'urgent' wholesale price hike stalls over
redacted evidence

Energy and Utilities Board adjourns to allow groups opposing price
increase to argue for access to evidence
Robert Jones · CBC News · Posted: Jan 25, 2021 5:58 PM AT

Irving Oil Ltd. is applying for a 62.8 per cent (4.09 cent per litre)
increase in the allowed wholesale margin for motor fuels and a 54.9
per cent (3.02 cent per litre) increase in the margin for furnace oil.
  (Devaan Ingraham/Reuters )

Irving Oil's attempt to win immediate wholesale petroleum price
increases from the New Brunswick Energy and Utilities Board stalled
quickly Monday over objections from a variety of community
organizations that too much of the application is based on secret
material.

"The amount of information that is redacted in these documents makes
it very difficult for our organization to meaningfully participate,"
said Abram Lutes with the New Brunswick Common Front for Social
Justice

"It limits our ability to participate meaningfully and to advocate on
behalf of low income workers and people in poverty."

Several other groups expressed similar concerns and the EUB's acting
Chair Francois Beaulieu scheduled a hearing Friday morning to deal
with the objections. That forced a delay in Irving Oil's request for
immediate increases in wholesale petroleum margins at least until next
week.
Francois Beaulieu, acting chair of the Energy and Utilities Board,
scheduled a hearing Friday morning to deal with objections to Irving
Oil's requests. (Graham Thompson/CBC)

"The board will adjourn and we'll await the interveners to file their
objections," said Beaulieu.

Until recently, Irving Oil has shown little outward concern about
petroleum wholesale margins in New Brunswick. Since 2016, it twice
declined to participate in scheduled reviews of the issue by the
board, including the latest one launched in 2019.
COVID-19 has affected business

But the company says the COVID-19 pandemic has hit its business hard,
and it now requires immediate changes.

In prepared remarks for the EUB on Monday that he was ultimately
unable to deliver before proceedings adjourned Irving Oil marketing
president Darren Gillis planned to outline the company's hardships

"We've reduced spending across the company, cancelled projects, and
unfortunately reduced our employee and contractor workforce," said the
prepared remarks.

"Significant sales declines (Jet Fuel, Marine Fuel and Transportation
Fuel) and higher costs are having a serious impact on the entire
supply chain. No one, no company is insulated from the impacts of the
pandemic, including Irving Oil."
Company asks for substantial increases

The company is applying for a 62.8 per cent (4.09 cent per litre)
increase in the allowed wholesale margin for motor fuels and a 54,9
per cent (3.02 cent per litre) increase in the margin for furnace oil.

It is asking that prior to a full hearing in late March,  85 per cent
of the requested increase on motor fuels (3.5 cents) and 99 per cent
of the increase on furnace oil (3.0 cents) be granted immediately

The increases are substantially more than the 11 per cent growth in
inflation that has occurred since the margins last changed in March
2013. But much of Irving Oil's evidence in support of changes that
large is not being publicly shared to protect company operational and
financial information, an immediate sticking point Monday

    Irving Oil supporters and skeptics lining up on opposite sides of
company price hike request

Beaulieu noted the EUB itself along with public intervener Heather
Black and any experts they hire are permitted to view all the
material, but that did little to satisfy several participants.

Hafsah Mohammad with the Moncton social justice and climate action
group Grassroots NB expressed support for Black's role but said more
perspectives on Irving Oil's application are needed

"I think that has a problematic element with one person speaking for
the entire public," said Mohammad.

"I thought that's why there are interveners. If it is solely on
Heather Black I am concerned with just one person being assigned to
this role."
Natural Resources and Energy Development Minister Mike Holland wrote a
letter to New Brunswick's Energy and Utilities Board, in which he said
an Irving Oil application for petroleum price increases should be
dealt with quickly. (Radio-Canada)

Mohammad also pressed Beaulieu to explain his view on a letter sent to
the EUB by Mike Holland, the New Brunswick natural resources and
energy development minister, and its effect on the hearing..

Holland wrote to the board on Jan. 6, one day after Irving Oil filed
its application, to back the company's request for an "expedited"
review.

"I did not have any intention to comment on the letter but if an
intervener does put it forward I'll comment on it," said Beaulieu.

"I'm putting it forward," said Mohammad

Beaulieu said all citizens have a right to send letters to comment on
matters before the board, and he viewed Holland's as just one of many
that have arrived from the public.
Irving oil lawyer concerned over delay

"Any person in the province of New Brunswick can comment on any
proceeding of the board," said Beaulieu  "We're independent and that
will continue."

Irving Oil lawyer Len Hoyt expressed concern about delays in getting
to the request for immediate price increases, but the application is
effectively on hold for a week while the company's reliance on
confidential information is dealt with first

"The urgency and the expediency of this is of upmost importance to my
client." said Hoyt.

About the Author
Robert Jones

Reporter

Robert Jones has been a reporter and producer with CBC New Brunswick
since 1990. His investigative reports on petroleum pricing in New
Brunswick won several regional and national awards and led to the
adoption of price regulation in 2006.

On 2/6/23, Waycott, Stephen <SWaycott@nbpower.com> wrote:
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