U.S. ambassador rebukes Ottawa for lack of support

Some tough words for the Canadian government from U.S. Ambassador Paul Cellucci: he blasted the Liberal government for its failure to back the United States' war in Iraq.

Cellucci made his statement during a breakfast speech with Toronto's Bay Street business crowd. "There is disappointment in Washington," he said, "that Canada is not supporting us fully."

Cellucci says there is a long relationship between Canada and the U.S., but at the same time there could be some short-term strains as a result of Canada's position.

The ambassador said if there were ever a real threat to Canadian security the U.S. would be there to help. "There is no security threat to Canada that the United States would not be ready, willing and able to help with. There would be no debate. There would be no hesitation. We would be there for Canada — part of our family," he said.

"And that is why so many in the United States are so disappointed and upset that Canada is not fully supporting us now," he said.

Cellucci took aim at recent remarks by Liberal MPs including a comment about President George W. Bush made last week by Natural Resources Minister Herb Dhaliwal, who said Bush had "let not only Americans, but the world down by not being a statesman."

Cellucci says it's ironic that Ottawa won't do much to control that kind of comment, even though the federal government was critical of the letter he received from Alberta Premier Ralph Klein praising the United States.

"When Mr. Klein issues strong support for the United States, the Canadian government comes down hard on him. When Mr. Dhaliwal makes totally inappropriate remarks about the president of the U.S., they kind of ignore it."

During question period the opposition parties did not ignore Cellucci's comments.

"When will this government do the right thing and back our American friends and allies? Because frankly sir, you are embarrassing us," said Canadian Alliance Leader Stephen Harper.

Prime Minister Jean Chrétien looked annoyed when he rose to answer the question. He said the remarks made by his MPs "show to the people of the world that Canada is an independent country."

Canada is engaged in the so-called "war against terrorism" alongside the United States. Canadian warships are on patrol in the Gulf region.

"The Canadian naval vessels will provide more support to this war in Iraq than most of the 46 countries that are fully supporting our effort there," said Cellucci.

The NDP said that comment proves the government should withdraw those Canadian ships and their crews to show that Canada truly does not support the U.S.-led military action against Iraq.

Arrests in Canadian passport scam

New York - Four men have been arrested in New York on charges that they sold fake Canadian passports.

American officials say the bogus passports were sold to Pakistanis living illegally in the United States so they could fly to Toronto to file refugee claims.

Pakistanis and Saudis in the U.S. had until Friday to be photographed, fingerprinted and interviewed by American authorities.

Police say a Canadian passport can fetch up to $1,000 US on the black market.

When the four were arrested in New York, police also say they seized more than $70,000 US.

Police say there's evidence the money was bound for Pakistan, Jordan, Syria and Lebanon. Those are countries that, the U.S. claims, are hideouts for terrorists.

AIR CANADA Shares at 17-month low on restructuring worries.
Don Newman of CBC's Politics talks with Joseph D'Cruz of the Rotman School of Management. http://www.cbc.ca/stories/2003/03/31/aircan030331

TORONTO--Air Canada shares dropped sharply Monday after reports suggested the beleaguered airline might have to file for protection from its creditors as a condition for getting federal help. The airline's stock fell 40 cents to close $2.10. The shares went as low as $2.02, shattering the previous 52-week low of $2.40. Media reports said the federal government was working on an aid package for Air Canada worth between $300 million and $500 million.

However, the airline would have to demonstrate how desperate its financial situation is by filing for bankruptcy protection under the Companies' Creditors Arrangement Act, the reports said.
A bankruptcy filing allows for a restructuring of the company's debt. But shareholders are worried that a reorganization might leave them out in the cold.
Transport Minister David Collenette left the door open that Ottawa is ready to helped the beleaguered airline.
"We're not interested in a cash bailout, but if we can assist in a restructuring we will do so," Collonette said Monday.
On Friday, an airline analyst at investment dealer Raymond James lowered his target price for Air Canada shares to zero, citing a cash burn rate that could leave it out of money by the summer.
Air Canada has been struggling to cope with a $12-billion debt, falling air traffic, higher fuel prices, tough domestic competition, the fallout from the Sept. 11 attacks, and the war in Iraq.
Air Canada announced 3,600 job cuts earlier this month, saying the Iraq war had made its difficult financial situation worse. It's now trying to slice $650-million from its annual labour bill, but talks with its unions are not going well.

Collins warns of gambling as fundraising

When any Catholic group is doing fundraising, they have to be very careful of the method used to raise money, Archbishop Thomas Collins told the WCR. "They have to make sure the method they use does not harm people," Collins said in a March 19 telephone interview.
"Gambling is becoming bigger and bigger. It raises a very real concern, that different types of gambling might attract people leading them to being addicted."

"It's becoming less and less a minor social entertainment. It has a very real potential of causing harm to people."

Lotteries, raffles and bingo are some of the ways different groups raise funds. The issue came up when Calgary Bishop Frederick Henry made a statement forbidding bingo as a form of fundraising for any Catholic organization in his diocese.

Collins wouldn't go that far. But he did say charitable groups have to look seriously at how they go about fundraising.

"We have to be careful about the methods we use. And even though it is a worthy cause, it does not make much sense to raise money for a worthy cause if in the course of doing it, it causes harm to people."
"And if it's going to cause harm to people, they should stop."

According to Catholic teaching, gambling itself is not always morally wrong.
It can be a form of social entertainment, explained Collins.

"But the thing that is of concern, is that it is increasingly occupying a bigger and bigger portion of people's time, . . . drawing their money."

One reason that people use gambling to raise money is that it is a relatively quick and effective way of raising money.

The archbishop admits, "It is very difficult to find ways to raise money. Nonetheless, even if it is the easiest and quickest way to raise money if it's causing harm, we should not be doing it."

The Catechism of the Catholic Church says, "Games of chance or wagers, are not in themselves contrary to justice. They become morally unacceptable when they deprive someone of what is necessary to provide for his needs and those of others" (n. 2413).
In 1998, the Alberta bishops issued a statement, The False Eden of Gambling, calling on the government, various organizations and the people to seriously consider gambling's moral dimensions.

AIR CANADA
From CBC News April 1, 2003

Montreal — Air Canada's struggle to stay airborne took a dramatic new turn Tuesday as it was granted court protection from its creditors, a move commonly known as filing for bankruptcy protection.

The announcement comes hours after the Toronto Stock Exchange halted trading on the company's shares.

"Air Canada is determined to do all in its power to restructure itself through this process and emerge as a world-class competitive and profitable airline," said an airline affidavit filed with Ontario Superior Court of Justice.

The move clears the way for a major restructuring the airline hopes will allow it to dig itself out from under a mountain of debt.

Air Canada said it has lined up $700 million US in special financing to help keep it operating while it restructures.

Filing for protection under the Companies' Creditors Arrangement Act (CCAA) gives companies time to reorganize their operations and hold talks with their major stakeholders ? creditors, bond-holders, unions and suppliers. While CCAA protection is in place, all creditors are prevented from taking any action against the airline.

Air Canada's protection is in place until May 1, but can be extended.

"I have to think we're probably going to see some fairly significant cuts, in terms of capacity and frequency, and that, of course, is going to mean job cuts," airline analyst Rick Erickson told CBC Newsworld.

The bankruptcy filing comes as the airline faces major debt repayment deadlines and dwindling cash reserves which analysts said might run out in three months. Air Canada has been struggling with almost $13 billion in debt, part of which it acquired in its successful 1999 takeover of Canadian Airlines.

Troubles deepened after the economic downturn in 2000 and 2001 ate into its lucrative business travel.

Then came the attacks of Sept. 11, 2001, which devastated airline business around the world.

Air Canada has also been busy trying to fend off competition from discount upstarts like WestJet and CanJet. A series of price wars hurt its bottom line as it fought for market share with rivals that had much lower labour costs.

High fuel prices didn't help either, and the war in Iraq further cut back on passenger traffic.

On March 20, Air Canada cited the war as one of the reasons why it was cutting 3,600 of its 35,000 jobs. Those cuts were on top of $650 million it wants to slash from its annual labour bill.

US Airways, United Airlines' parent UAL, and Hawaiian Airlines have all filed for Chapter 11 in the United States ? the American equivalent of a CCAA filing. There are also rumours that AMR, parent of American Airlines, is days away from filing for Chapter 11.

The lobby group for U.S. airlines estimates that 10,000 airline jobs disappeared in the first week of the Iraq war.