A crude directive for Canadian industry

The Canadian government fears an EU plan to limit fuel emissions will prompt an end to the lucrative oil sands

The Newfoundlanders’ Club is a bar with tartans, lobster traps and live Irish music. It's also the most popular pub in Fort McMurray, a northern Alberta town of 50,000 people.

With hanging photographs of rocky shorelines and small port towns, the pub serves Newfie dishes and beers with a side of nostalgia.

“It's a home away from home,” said cook Shirley Grandy, who moved to Alberta from Marystown, Nfld. seven years ago. “I first came to visit my son when he bought me a ticket. I found work and never went back.”

Fort McMurray is a boomtown at the centre of the oil sands, a collection of semi-solid deposits in northern Alberta comprising the world's second-largest crude oil reserves. Commercial production began in 1967, but thrived as oil prices spiked in the late '70s and early 2000s.

Because the oil is trapped in sand, processing it is much more energy-intensive than other sources. Layers of trees and soil are removed before sand is either scooped up or pumped out with steam. This natural bitumen is then heated with natural gas and extremely hot water to separate oil for processing. The remaining sand, water and oil residue is kept in on-site tailings ponds.

Environment Canada deemed the oil sands the country's fastest-growing source of greenhouse gases in 2010. But the project is staggeringly lucrative, with the provincial and federal governments predicting a $490-billion gain in royalties over the next 25 years. In that same period, an average  450,000 jobs will be added annually, according to an industry-sponsored survey.

This exponential growth is seen in towns like Fort McMurray, where immigration exceeds housing. The town census says population grew 80 per cent from 2000 to 2010.

Statistics Canada began tracking a steady rise in movement from Newfoundland to Alberta in the 1970s. Annual numbers have fluctuated, but estimates place up to 10,000 Newfoundlanders who have moved to northern Alberta in the past decade.

With high-paying jobs and rich scenery, Alberta brings in many from the aging island with dying towns and limited job prospects.

“I would be a millionaire if I were back in Newfoundland,” said Grandy, adding that it's common to hear Newfie accents around town.

But the Canadian government fears EU legislation targeting high-carbon fuels could end the project and its nationwide economic growth.

The EU fuel quality directive was introduced in 2008, legally binding EU oil suppliers to reduce carbon emissions from road transport fuels by 6 per cent of 2010 levels by 2020. The directive is part of a wider effort to eliminate a fifth of EU carbon emissions by the same year.

To enforce the directive, the European Commission has to define the carbon value of various fuels. The commission’s environment committee ordered a study by Stanford University of the oil sands' overall carbon emissions, including extraction and processing.

Published in January 2011, the study found oil sands to have 23 per cent more carbon emissions than conventional sources. In October, the environment committee voted to ascribe this higher emission value to oil sands fuel, deterring suppliers aiming to meet their 6 per cent carbon reduction.

“The directive aims for a discrete measure to differentiate between low- and high-carbon oil,” said Suzanne Dhaliwal, co-founder of the UK Tar Sands Network. The group works with environmental and Aboriginal groups to protest oil sands development.

“It's essential,” said Dhaliwal. “We're heading towards catastrophic climate chaos.”

The Canadian government fears the EU directive will set off a global chain reaction of negatively labelling the oil sands and has defended them since the directive's launch.

In October 2009, cabinet ministers publicly contemplated initiating a World Trade Organization challenge. The directive later became a major sore point in ongoing negotiations for the Canada-European Comprehensive Economic and Trade Agreement.

In December 2009, the federal government launched a “pan-European oil sands advocacy strategy” to “protect and advance Canadian interests.”

A series of freedom-of-information requests by media and advocacy groups revealed a team  including employees of the Department of Foreign Affairs and International Trade. The group monitored activists, responded to negative media coverage and helped oil companies lobby European parliamentarians.

“While Europe is not an important market for oilsands-derived products, Europe legislation/regulation, such as the EU Fuel Quality Directive, has the potential to impact the industry globally,” read an April 2011 email released this week.

The lobbying was discussed at the European Parliament in March 2011, with Finland's former environment minister decrying coercive meetings with key politicians.

“The government of Canada has been lobbying us in a manner that is not acceptable,” said Satu Hassi of the Green Party.

Lobbyists and industry officials now argue the directive singles out oil sands while turning a blind eye to other heavy crude sources like converted shale and coal. But these sources do not apply to the transport-focused directive.

“Canadian producers are supportive of people working to reduce their emissions,” said Canadian Association of Petroleum Producers spokesperson Travis Davies. “But the directive discriminates against a Canadian product.”

Davies noted that certain oil-producing countries like Nigeria are not being targeted by the EU despite using carbon-intensive processes that are illegal in Canada.

“From a policy viewpoint, discriminating against a country like Canada, one that openly publishes its figures, acts as a disincentive to others to publish their information,” he said.

The European Commission's environmental committee will discuss the directive in late February and likely send it to a parliamentary vote.

Canada, which withdrew from the Kyoto Protocol in December, continues to oppose the directive, especially after plans for an American bitumen pipeline were delayed indefinitely.

Two weeks ago, Natural Resources Minister Joe Oliver denounced “radical” and “foreign-funded” environmentalists for opposing oil-sand expansions.

Speaking from her UK office, Dhaliwal described Oliver's comments as “hypocritical.”

“The jobs pay well [...] but aren't stable. Canada should invest in green jobs. The most difficult project of this generation will be weaning ourselves off of oil dependence.”

This was my entry for the 2012 EU-Canada Young Journalist Award, which requires a 1,000-word submission "focusing on a current issue facing the European Union or EU-Canada relations." I didn't win, but I'm glad I entered.

Scarborough MP ‘rammed’ in hit-and-run

Parliament of Canada photo.

A member of Parliament who was “rammed” by an apparently intoxicated hit-and-run driver Friday night is using the incident to speak out against impaired driving.

Rathika Sitsabaiesan, NDP MP for Scarborough-Rouge River, said she suffered a minor back injury while leaving her Scarborough home in the passenger seat of her friend’s car.

See my report in the Toronto Star.

72-hour delays leave Air India passengers frustrated, fuming

Anil Chawla came to Pearson airport Friday at 8:30 a.m. with the aim of flying off to visit relatives in India over Christmas. He left the airport some 12 hours later, unsure when he’d be taking off.

Air India passengers were left frustrated and fuming after Flight 188 to New Delhi was grounded for a second day on Sunday. It was to have departed at around noon on Friday, but has now been rescheduled twice. The current departure is scheduled 72 hours after the original.

See my report in the Toronto Star.

Licence to chill

Man gets house arrest after breaking driving probation

I filed this story for a court-reporting assignment. It's a minor case that normally wouldn't be reported on.

Gonzalo Juarez, 26, was found Tuesday  driving a
Lincoln Navigator in violation of probation arrangements.
Photo from rmroofing.com

A Toronto metal worker has been sentenced to six months of house arrest after once again breaching a court order to not drive.

Gonzalo Juarez, 26, pled guilty Thursday morning to charges of failing to comply with probation and breaching a peace bond.

The father of two appeared at Old City Hall’s provincial courtroom in a green sweater and work jeans. His mother sat in the audience, speaking in hushed Spanish to her son’s lawyer.

The original probation was issued earlier this year after Juarez faced a charge of obstructing a police officer. Issued June 2, the one-year order instructed Juarez not to operate any motorized vehicle or be in a driver's seat without a valid licence. Juarez has since been found driving illegally twice.

His attorney said Juarez uses a pickup truck to transport supplies for his work as a roofer.

“He's hired an employee to drive him around,” Juarez’s lawyer Jeffry House said. “But the last two occasions he was driving were late at night.”

“That is not an exemption,” Justice Melvin Green sighed in response.

Police took Juarez into custody after they found him driving northbound on Dufferin St. Tuesday night in a Lincoln Navigator. During Thursday’s trial, the court noted a number of Highway Traffic Act offences in Juarez’s record, including driving without insurance and driving with a suspended licence.

“The only thing he's done improperly is not paying his fines,” House said, explaining that Juarez could not afford a $5,000 automotive insurance bill but kept driving to support his business.

House told the court his client has a family and a mortgage but no equity on his house. Juarez, father to a 4-year-old and an infant, is listed as owner of R.M. Roofing & Disposal Services.

“This is persistent bad behaviour. It doesn't inspire a lot of confidence,” Green said. “That being said, Mr. Juarez is supportive of his family and is serious about the employment he pursues.”

Green issued Juarez six months of house arrest. For the first three months, Juarez can only leave the house for work, appointments, religious services and medical emergencies. For the remaining three months, he cannot leave his house between the hours of 10 p.m. and 6 a.m.

The judge also applied a condition that if caught driving again, Juarez would face Green and receive the maximum applicable sentence.

Juarez kept silent during the proceedings, except when asked by Green if he wanted to speak.

“I will do my best to follow these conditions. Thank you,” he mumbled.

Juarez met his mother and lawyer outside the courtroom. House explained the probation conditions in Spanish before the two signed a court order and were free to leave.

Juarez left the courthouse in linked arms with his mother, who was holding a pair of car keys.

Toronto City Council opposes Brunswick House expansion

Neighbours say the Brunswick House,
known as "the Brunny," is a roaring
club that brings in vomiting 905ers.
Dylan C. Robertson photo

Toronto councillors voted Tuesday to oppose an Annex night club's expansion plans after numerous complaints from residents.

Earlier this month, Ye Olde Brunswick House applied for a liquor licence to increase its capacity from 502 patrons to 600. Community groups have mobilized against the proposal, complaining about noise, decency and safety concerns.

With billiard tables, concrete floors and large wooden booths, the 18th-century building at 481 Bloor St. W. was originally a student pub located steps from the University of Toronto's main campus. The Brunny, as it is commonly called by students, now only opens its doors Thursday to Saturday, from 10 p.m. to 2:30 a.m.

The club offers cheap drinks and advertises to young people across the GTA, with many coming in from outside the downtown core.

“It's a fun place that everyone knows about,” said Michael Bridge, a fourth-year French student at U of T Scarborough. “Students get a lot of stress; we need that place to relax, some kind of outlet.

Christopher Castillo, a third-year biotechnology student at Durham College in Oshawa, agrees. He visited the bar on weekends this summer and says it's a favourite spot he's willing to travel to.

“It's a great atmosphere; good prices. The music's good and the girls are crazy,” he said.

But Castillo admits the bar can be packed “like a crowded subway station” with lines of 50 people out the front door on weekends. It's because of this overflow that he supports an expansion.

“It's to the advantage of the businesses there,” said Castillo. “You could always not allow them to have more seats, but the customers are there anyways.”

But the Brunswick House has previously been charged with licensing and noise infractions. Local residents say there's little to gain from allowing more people into the club.

“You know when it's Thursday night. Your windows are shaking,” said Balvis Rubess, who has lived on Brunswick St. for 25 years and opposes any expansion of the club.

“We have enough noise and filth,” he said. “I don't think (the club) attracts a respectful clientele and the last thing we need is even more people.”

It's a story echoed by many who live nearby.

“We're totally appalled,” said Peter, a Brunswick St. resident who was uncomfortable giving a last name. “Kids are throwing up on our property every weekend. The whole neighbourhood's trying to get it all to stop.”

Peter said it's “more than just noise and puke” bothering local residents, citing the July 2009 murder of a 23-year-old man who was shot in the alley behind the bar.

Tuesday's motion, brought forth from a Toronto and East York Community Council meeting four weeks ago, was brought forth by Ward 20 councillor Adam Vaughan.

The motion requests the Alcohol and Gaming Commission of Ontario turn down the application, pointing to numerous complaints about “public drunkenness, public urination, vandalism, theft, noise and trespassing.” Incidents of public defecation have also been reported.

“Residents in the area are concerned for their safety because of what they perceive to be an increase in violence and vandalism,” the motion reads. It also asks that the city be made part of any licence appeal proceedings.

Not all patrons of the Brunswick House have witnessed the behaviour residents have complained about.

“I understand the concerns of the residents. My girlfriend lives downtown and gets a lot of noise pollution. So it's double-sided,” Bridge said.

“But it's not my crowd. I hear about (such incidents) later on from friends, but I don't see it with the people I go with,” he said.

The AGCO has yet to make a decision on the application, but condemnation from municipal authorities is often enough to thwart an application.

Brunswick House owner Abbis Mahmoud did not respond to a hand-delivered interview request.

The 18th-century building at 481 Bloor St. W. used to be a student pub, but is now a night club.

The Brunswick House has a posted a copy of its liquor licence application to add 25 per cent more seating.

Residents of the area say the club brings out-of-towners with no interest in the community. Complaints have ranged from vomiting to trespassing and public defecation.

Many residents of Brunswick St. have erected shrubs and gates to prevent intoxicated youth from trespassing. A man was shot to death in the alley behind the club in July 2009.

Police mourn ‘devastating’ loss of two service dogs

Photo courtesy of Toronto Police Service

They’re some of the city’s grittiest crime investigators, sniffing out narcotics, looking for clues at shooting scenes and helping to find missing children.

They are often the unsung heroes of the Toronto Police Service, but they have earned the respect of some of the toughest officers on the force.

Toronto police are mourning two service dogs who died from illness last week.

See my report in the Toronto Star.

Peanut butter to jump by a third in January

Devin Bird grabs a jar of peanut butter while shopping at the Food Basics discount grocery store on Pape Ave.

“It's a good amount of what I need,” says Bird, an out-of-work vegan. “It's got protein. But most of all, it's cheap.”

But it won't be as affordable next year. Like many common foods, peanut butter is on the rise due to rising fuel costs and changes in weather.

With a colder, more humid climate, Canada imports 80 per cent of its peanuts from the U.S. Recent droughts in the country's south have raised peanut prices dramatically. Last month, Canadian peanut butter producers warned customers to expect a 35-40 per cent price jump around January.

It's these kind of price fluctuations that make the job of Toronto's largest food bank even harder.

“It’s a pretty challenging situation,” says executive director Gail Nyberg, of Daily Bread Food Bank.

As cost-effective protein with a long shelf life, peanut butter is listed among the group’s 10 most-needed items.

A jump in its price is a triple threat for her organization. The food bank predicts higher demand from customers and fewer donations from the public, but also less value when its uses from its funds.

When Daily Bread doesn't get enough donations, it purchases food to-the-need at wholesale prices.

Peanut butter cost $14.50 a case last October. The group's current rate is $16.95 and they've been told to expect $19 early next year.

Nyberg says price jumps have become part of running a food bank. Tuna and rice, also among Daily Bread's most-needed foods, have fluctuated drastically in the past two years.

“We’re entering our holiday drive with some pretty lofty goals,” Nyberg says. “We didn’t reach them at Thanksgiving. But we'll try our best.”

The work year's almost over for Joy Carter, spokesperson for the Georgia Peanut Commission.

It's a month after the state's peanut season and Smucker's has just announced its commodity costs have peaked. After raising the price of Jif peanut butter by a third earlier this month, the company predicts no more price hikes.

“This drought started back in the spring and really hurt production,” Carter says. “But this is the reality of farming. You adjust when you see something coming.”

Farmers contract their land around February and often rotate peanut crops with corn and cotton. Like any small business owners, they are granted loans at rates determined by how stable banks deem their investments.

“This year, the corn and cotton crops were given a much higher per-acre loan,” says Leslie Wagner, executive director of Southern Peanut Growers. “This encouraged farmers to have fewer peanut crops”

Higher interest rates, coupled with a drought and rising fuel costs, meant a 13-per-cent drop in peanut production and a boom in sale prices. In the past three decades, the price of peanuts has only reached this year's rate twice.

Though farmers are protected by charging more for cost-intensive crops, such price jumps are a risk for Georgia's $2-billion industry. Universities in the largest peanut-producing state are researching drought-resistant seeds and cost-reduction methods like better irrigation.

Climatologists have linked this summer's drought to the annual La Niña pattern, which has been exacerbated in recent years by exceptionally hot temperatures.

The U.S. drought is part of a series of weather events affecting global food prices, though a comparatively trivial one. Last summer, Russian faced its hottest summer on record. Forests fires engulfed one-third of its grain crop, leading to an 11-month grain export suspension that drove up food prices in countries like Indonesia, where 45 per cent of household income goes to food.

In Canada, consumers only spend about 12 per cent of their income on food. Though the rise in price for peanut butter and other foods will hit those with limited income, Canadians have a variety of sources of protein.And, at least in East York, consumers seem up for the challenge.

“What can you do? Peanut butter's like everything; the cost goes up and up,” says Sonia Alce, eyeing a peanut butter sale poster. “If you love it, you're going to have to stock up.”

“Oil's gone up; everything's gone up,” says Janet Coker, a grandmother on a fixed income. “But you make do. Wages rise too, but not as quickly. You just have to budget and be smart about it.”

Before leaving Food Basics, Bird grabs another jar of peanut butter, on sale at a 75-cent discount.

“I'd normally wait for half-price, but this could be it,” he says. “It's time to stock up.”