Of the many Morneau Shepell conspiracy theories going around the past few weeks, the one that probably irritates me the most is the Bill C-27 iteration, especially in the way that fellow reporters and pundits will opine on the topic. The theory goes that Bill Morneau is allegedly in an “apparent” conflict of interest because a) when he was with Morneau Shepell, he advocated for the creation of targeted benefit plans; b) when he became finance minister, he sponsored Bill C-27, An Act to amend the Pension Benefits Standards Act, 1985, which allows for the creation of targeted benefit plans in federally regulated sectors, and c) because he still had shares in Monreau Shepell (albeit indirectly) that it would enrich him if the bill passed, and hey, the share price of Morneau Shepell went up when the bill was tabled (never mind that it returned to its former price weeks later). It’s all ludicrous when you actually understand what’s going on, but since the NDP proffered this latest theory as part of Morneau’s alleged misdeeds, it’s been repeated uncritically, and it’s starting to get on my nerves.
First of all, last I checked people get into politics all the time to advance issues that they care about, and Morneau was a recognized expert on pensions. And pension reform was one of the things he was charged with undertaking when he became finance ministers. The pension debate has been going on for years, and targeted benefit plans are a recent iteration that several groups, including CARP, have been advocating for. Now, the NDP are opposed to them because they think that everyone should get a defined benefit plan like was the case in the 1950s, never mind that the actuarial tables don’t actually support them anymore, given that people stopped smoking two packs a day and dying early. (No, seriously – talk to an economist and they’ll tell you that this is a real thing). And Morneau Shepell is just one company that deals with administering these kinds of plans, and C-27 would not mandate them – it would simply give federally regulated industries the option to use them.
But the bigger issue is this notion that it was somehow inappropriate for Moneau personally to sponsor the bill. The problem? That ministers don’t sponsor bills as individuals. Government legislation is put forward on behalf of the government – meaning Cabinet as a whole. A minister sponsors the bill as the office holder because they have to answer for how this bill affects their departments, and in this case, it’s the Department of Finance. If there was a cabinet shuffle tomorrow and someone else became finance minister, it wouldn’t affect the bill because the office holder sponsors it to respond on behalf of the department. It has little to do with Morneau himself, and ministers don’t sponsor bills because they’re interested in the subject matter. (Note: This is why it’s a problem that there is no Government Leader in the Senate to sponsor government bills introduced in the Senate). Trying to say that it was inappropriate for Morneau to sponsor this bill, or that it can’t go ahead under his name, is civically illiterate nonsense, and reporters should know this. But they don’t.
As for Morneau’s shares, if they had been in a blind trust, we would likely still be having this conversation because he would have still been making money on them if they increased in value as they were gradually divested at a pace nobody would know about. A blind trust is not some panacea, but people have glommed onto it like some kind of ethical talisman. That’s likely why Mary Dawson said that an ethics screen was a more appropriate mechanism, and lo, it was established; likewise, it’s why she was apparently surprised by Moreau’s decision to divest his shares – because it’s unnecessary, but a number of pundits have declared that this is the thing to do without necessarily thinking it through. Also, Dawson didn’t say she was “concerned” about C-27, or that she was about to launch an investigation into it – she said she would follow-up with Morneau, and I’m pretty confident that she is going to come back and say that there is no actual issue here.
And this is partially why I’m getting tired of this constant wailing and gnashing of teeth about Morneau’s “apparent” conflicts – because if you actually stop to think about them, there are no apparent conflicts. The “appearance” of conflict has been put forward by people lining up information in a way that looks bad in order to make political gain, and We The Media have been repeating it uncritically rather that running it through a bullshit filter and declaring that yup, this is bullshit. (Most especially the attempts to drag the Bank of Canada and the Bombardier loan into this). But there is also some Tall Poppy Syndrome at work here (Morneau’s wealthy? Well we couldn’t have that!), and this urge by some of the punidtariat to moralize without thinking through the facts, while at the same time the Twitter mobbing ramps up. We really haven’t been doing our jobs here.
My last thought on this is that this is really endearing the Ethics Commissioner position for someone to apply for it. Given the strict requirements, and the fact that this latest episode has demonstrated that MPs can’t get their act together on their own ethics regime (seriously – they adopted this system, refused to change it when the flaws were pointed out, and then turn around an insist that the it’s not enough to just follow the rules that they put into place), I’m increasingly having a hard time imagining someone wanting to take on this job. We may wind up with Mary Dawson in this job forever.
- Apparently the lesson the Liberals are taking from the Lac Saint-Jean by-election is that they can succeed without a Quebec lieutenant or specific policies to pander.
- As our Sea Kings get set to be retired, there has been an expression of interest from six other parties (including India) to acquire them afterward.
- The government will be setting up winterized trailers near the irregular Quebec border crossing to deal with any migrant arrivals over the winter months.
- The government will be setting the immigration levels at an increased 300,000 next year, and could go higher still. Now comes the job of integrating them.
- The government is set to put more pilot evaluations onto the industry, which has reignited concerns about eroding safety standards.
- Here’s a look at the issue of unfunded pension liabilities, and why it’s hard to strike laws to guarantee them when businesses go bankrupt.
- Here’s a look at how Canada is interacting with the Facebook “election integrity initiative.
- Jason Kenney won the UCP leadership over the weekend, but may have trouble wooing the general population. He’ll seek a seat in a by-election right away.
- Jen Gerson delves deeper in to Kenney’s win and the problem his social conservatism will play in the next election.
- Susan Delacourt writes about Jean Yip, Arnold Chan’s widow, who has decided to seek the nomination to replace him.
- My weekend column responded to the Samara Canada report on heckling, put some context around things, and talked about what they got right and wrong.
Odds and ends:
Nunavut has a general election today, but it will take some time to determine who will form a new government given their consensus-based system.