Category Archives: business

business, Politics

Confronting significant trade challenges

Saint John, New Brunswick, is confronting significant trade challenges, with the oil industry bearing the brunt of the impact. The recent imposition of 25% tariffs by the United States on Canadian goods threatens to disrupt the city’s economic stability, particularly affecting its pivotal oil sector.​

Home to Canada’s largest oil refinery, Irving Oil, Saint John’s economy is deeply intertwined with the energy sector. The refinery processes over 320,000 barrels daily, with more than 80% exported to the U.S. These tariffs could lead to increased costs for U.S. consumers and jeopardize energy security across the region. ​

The Atlantica Centre for Energy emphasizes that the integrated energy systems of Atlantic Canada and New England are at risk. The Centre warns that consumers and businesses on both sides of the border may face higher energy prices, undermining the energy security that both regions rely on.

Local leaders express concern over the potential economic repercussions. Fraser Walls, board chair of the Saint John Chamber of Commerce, fears a multi-billion dollar impact on the local economy, noting that in 2023, New Brunswick exported $15.5 billion worth of goods to the U.S., with a significant portion originating from Saint John. ​

The situation underscores the need for collaborative efforts between government and industry leaders to resolve these trade disputes. Protecting Saint John’s economic future requires safeguarding its vital oil industry and maintaining the longstanding trade relationships that have benefited both Canada and the United States.​

 
 
 
 
 
 
 
 
business, Politics

The uncertainty around tariffs

It sounds like the CEO of the Saint John Region Chamber of Commerce, Merrifield, is expressing significant concerns about the economic challenges facing businesses in the region, especially those reliant on exports to the United States. The uncertainty around tariffs has led to anxiety among local businesses, with the trade volume of $15.5 billion last year highlighting how important these exports are to New Brunswick.

The rising costs of materials like steel, aluminum, and energy are also having a substantial impact, leading to higher prices for consumers. Merrifield’s warning about a domino effect suggests that these rising costs could have a cascading impact, especially on industries like construction and small businesses. This could result in higher prices for goods and services, slowdowns in production, and even job losses, further straining the economy in Saint John.

It seems like there is a need for both immediate solutions and long-term strategies to address these challenges, especially as tariff uncertainty continues to hang over businesses that rely on cross-border trade.

business

Irving Paper Amid Rising Energy Costs

Irving Paper Faces Major Challenges Amid Layoffs and Rising Energy Costs

Irving Paper, one of the leading players in the global paper industry, is undergoing some significant shifts as it navigates turbulent times. Recently, the company announced a tough decision: 140 layoffs will take place across its operations. These cuts are a part of broader efforts to streamline operations, but they also reflect the pressures companies face in an increasingly difficult market.

Financial Struggles: Rising Energy Costs

One of the biggest financial burdens the company is dealing with this year is its NB Power bill, which is projected to approach a staggering $100 million. Energy prices have been rising globally, and Irving Paper is feeling the full weight of this, given its energy-intensive operations. The company has been heavily reliant on power for its production processes, and with costs climbing, it’s becoming unsustainable.

A Global Player, But Still Vulnerable

While Irving Paper operates in 60 countries and is one of the largest players in the paper industry, the financial pressures are a stark reminder that even global companies aren’t immune to broader economic forces. Rising energy costs, supply chain disruptions, and a shifting market for paper products are all playing a role in the company’s decision to cut jobs.

Local Impact

For the communities around Irving Paper’s facilities, these layoffs represent a significant blow. The company is a major employer, and these job losses will impact not only workers but also the local economies that depend on its presence. It remains to be seen how the company will support its displaced workers, but the ripple effect will certainly be felt.

The Road Ahead

With the industry facing heightened challenges — from higher energy prices to fluctuating demand for paper — Irving Paper will have to make some tough decisions going forward. It’s unclear how long the company can continue to absorb such high operational costs or what steps it will take next to stabilize. Will it look for alternatives in renewable energy? Will the company push for further restructuring?

These questions remain unanswered, but one thing is clear: even the giants of industry are not immune to the global economic pressures of 2025.

business

NB Power CEO Clark at New Brunswick Legislature – February 27

NB Power CEO Lori Clark Addresses Rising Power Bills at New Brunswick Legislature – February 27

On February 27th, Lori Clark, CEO of NB Power, faced the New Brunswick legislature to address the rising cost of power bills in the province. The public has been grappling with significantly higher electricity rates, a concern that has been growing as many households struggle with the increased financial burden.

Clark explained that the price hikes are primarily driven by the rising cost of energy procurement, including global price increases for fossil fuels like natural gas, as well as the costs associated with NB Power’s own infrastructure and capital projects. With inflation and an unpredictable global energy market, these factors have put immense pressure on the utility, and Clark emphasized that while these hikes are necessary to keep the grid stable, they are far from ideal.

While some legislators were critical of the increases, citing the strain they place on consumers, Clark reassured them that NB Power is doing everything it can to balance the need for sustainability with affordability. She emphasized the utility’s ongoing investment in green energy solutions like wind and solar, which over time could help lower costs and reduce dependence on volatile fossil fuels.

However, Clark also acknowledged that the public’s concern is valid, especially as many families face financial hardship. As a result, NB Power is working with the provincial government to explore options for mitigating the impact on low-income households, such as expanded assistance programs or rebates.

The discussion at the legislature raised a broader question about how New Brunswick can move towards a more sustainable energy future while addressing the immediate financial pressures that many residents face due to the rising cost of living.

What’s clear is that the conversation about power rates in New Brunswick is far from over. With a growing emphasis on renewable energy, efficiency, and better consumer protections, the coming months will likely see more dialogue between NB Power, the government, and the public about the future of the province’s energy landscape.