Roundup: Closing three loopholes

As expected, Bill Morneau announced three new measures to crack down on tax avoidance by means of self-incorporation by high earners, many of them doctors and lawyers. While the government goes on a 75-day consultation period (to ensure that there are no unintended consequences) in order that the changes can be legislated in the autumn budget implementation bill, here’s economist Kevin Milligan explaining the problem and changes in detail here, plus his Twitter posts on the topic:

Morneau acknowledged that the changes may personally disadvantage him (though two of the three categories didn’t apply to him) – making it clear that he didn’t look into his own situation to ensure that he was being fair and not self-interested in making them.

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Roundup: Divisions of Power at the Council

With the Council of the Federation meeting today in Edmonton, they had a pre-meeting yesterday with some Indigenous leaders – others having opted not to join because they objected to it being “segregated” from broader Council meeting. While I can certainly see their point that they want to be full partners at the table, I have to wonder if this isn’t problematic considering some of the issues that the Council has to deal with – NAFTA renegotiations, inter-provincial trade, marijuana regulations – things that don’t really concern First Nations but that premiers need to hammer out. Two groups did meet – the Congress of Aboriginal Peoples (which generally deals with off-reserve and urban Indigenous Canadians) and the Native Women’s Association of Canada, citing successful talks, while the Assembly of First Nations, Inuit Tapiriit Kanatami, and Métis National Council stayed out of it.

While I’m sympathetic to these Indigenous groups’ desire to have full-fledged meetings with premiers, I’m not sure that the Council is the best place to do it, because they’re not an order of government so much as they’re sovereign organisations that have treaty relationships. While some of their concerns overlap, they don’t have the same constitutional division of powers as the provinces, so a meeting to work on those areas of governance can quickly be sidelined when meetings stay on the topics where areas do overlap with Indigenous groups, like health or child welfare, while issues like interprovincial trade or harmonizing regulations would get left at the sidelines as they’re not areas in which Indigenous governments have any particular constitutional stake. And yes, we need more formalized meetings between Indigenous leaders and premiers, I’m not sure that simply adding them to the Council achieves that, whereas having separate meetings – as was supposed to happen yesterday – would seem to be the ideal forum where they can focus on issues that concern them. Of course, I could be entirely wrong on this and missing something important, but right now, I’m struggling to see how the division of powers aligns in a meaningful way.

Oh, and BC won’t be at the Council table as NDP leader John Horgan is being sworn in as premier today, even though he could have scheduled that date earlier so that he could attend (seeing as this meeting has been planned for months).

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Roundup: A northern populism

Every time I see someone writing about Canadian populist movements and the dismissive concerns that it could never happen here, I always shake my head because it does happen. To an extent, we are living through it right now. The Canadian Press has been doing some surveys to try and discover what the “northern populism” might look like, and while it’s not quite the same as the forces that brought Donald Trump into power, it nevertheless exists here.

Part of the difference we see is that in Canada, those populist forces are less white than they are in the States or in Europe, but the focus remains the same, which are the perceived ills of the liberal (big or small L, take your pick) “elites.” It’s not a secret that the way that Conservatives like Jason Kenney targeted ethno-cultural minority communities was by focusing on socially conservative issues, whether it was their reticence to embrace same-sex marriage, or things like marijuana, those were cues that helped them tap into those communities the ways that other populist movements haven’t, who are too busy dog-whistling to appeal to the more blatant racists. And while there are those undercurrents in Canadian populist movements, for which things like immigration remains a bugaboo, Canadian conservatives have managed to tap into a particular vein of “it’s not our immigrant community that’s the problem, it’s those other immigrants that are,” and that set up a kind of justification that “hey, we can’t be racists because these immigrants don’t approve of that immigration policy,” never mind that yes, immigrants can be intolerant of other racial or ethno-cultural minority groups that aren’t their own.

But populism is not a spent force in Canada. We saw how it operated with Rob Ford, and it’s alive and well in Alberta as they try to harness it into an anti-NDP political party. To an extent, the federal Conservatives and NDP have largely abandoned their own ideological underpinnings to be right or left-flavoured populists, and yes, there is a great deal of populist rhetoric underpinning the Liberal electoral platform, with appeals to this nebulous middle class that has no data to back up their claims (like stagnant wages for one spectacular example). Was Justin Trudeau able to harness it more effectively than his opponents? Yes. Does that mean that the scourge of populism that gave the Americans the Trumpocalypse is absent here? Not at all. That the composition is slightly different is an academic difference, but not reassuring in the least.

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QP: Demands to split the bill

While it was a Monday with the Prime Minister present, the other major leaders weren’t, curiously enough. Alain Rayes led off for the Conservatives, demanding to know when the budget would be balanced. Justin Trudeau reminded him that they had a lot of priorities that they got elected on that they were delivering on after ten years of underinvestment by the previous government. Rayes then wondered why the government wouldn’t split out the Infrastructure Bank out of the budget bill, and Trudeau insisted that it was a centrepiece of the campaign and that there was a need for the Bank and its investments in infrastructure. Rayes tried again, got much the same answer, and then Candice Bergen tried again in English, calling it a slush fund. Trudeau repeated his same points about the need for investment in English, and when Bergen demanded a date for a balanced budget, Trudeau listed the ways in which voters repudiated them in the last election. Ruth Ellen Brosseau led off for the NDP, railing about NAFTA negotiations — including Supply Management, because it wouldn’t be a question from her without Supply Management — and Trudeau insisted that they were looking forward to sitting down with the Americans once negotiations start, but they would defend Canadian interests. After Brosseau asked the same in English and got the same answer, Matthew Dubé demanded that the Infrastructure Bank provisions be split out of the budget bill, and Trudeau noted that it was still a budgetary measure so it wasn’t an abuse of omnibus legislation and that he expected the Senate to pass budget bills passed by the Commons. Dubé switched to French to concern troll about how the Bank affects Quebec, and Trudeau responded that at some point, they needed to deliver on promises, and that was what the Bank was doing for Quebec and Canada.

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Roundup: A swiftly-moving “stalled” bill

An odd narrative has been developing over the past few days about the budget implementation bill being “stuck” in the Senate, and that senators there are “holding it up” as the sitting days in the Commons tick down. And I’m really not sure where this impression comes from because the bill has only been there since Tuesday.

Quite literally, the bill was passed in the Commons on Monday, read in at First Reading in the Senate on Tuesday, passed Second Reading on Wednesday, and had the minister appear at committee on Thursday, and it was later that day that the motion to split the bill was voted on. (The Senate didn’t sit on Friday, for the record). If anyone can please explain how this is “holding it up” or “stuck,” I’m frightfully curious as to how exactly it works.

Justin Trudeau, meanwhile, went on The West Block yesterday and reiterated his praise for the Senate’s work and saying that he expected that this particular attempt to “alter” the budget bill is just “growing pains.” Err, except by altering, they are simply trying to split one section out so that it gets further study, so that the rest of the budgetary elements can get passed, while the section that does need further study gets it. That’s not exactly a major alteration, and they’re not looking to kill that section of it either – just ensure that it’s going to work like it’s supposed to. But then Trudeau insisted that it’s a well-established practice that the Senate always defer to the Commons on money bills.

The hell it is. Constitutionally, the Senate can’t initiate money bills, but that doesn’t mean they simply defer on all of them. Hell, the very first bill they passed in the current parliament were the Supplementary Estimates (which is a money bill), and lo, they had to send it back to the Commons because they forgot to attach a crucial financial schedule to it. Should they have deferred to that flaw? Yes, the Commons is the confidence chamber, and the chamber of “democratic legitimacy,” but Trudeau is conflating a number of different things here, and it’s a bit disappointing because he should know better.

And I will remind everyone that this current Senate, no matter how many bills it sending back with amendments, is still nowhere near as “activist” as the Senate was in the Mulroney days, where they forced him to an election over the free trade agreement and to use the constitutional emergency powers to appoint an additional eight senators in order for him to get the GST passed. The current iteration of the chamber, while they are sending more bills back with amendments, will inevitably defer. That the government is accepting many of those amendments shows that perhaps *gasp!* it was flawed legislation to begin with (not that the Harper government using its illegitimate whip over their senators to pass bills made them any better, because their court record shows they weren’t).

But if we could have fewer terribly media headlines putting forward a patently false narrative about what’s going on in the Senate right now, that would be grand.

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QP: Concern about summer vacations

The day was not as hot as yesterday, but tempers were indeed starting to fray in the House of Commons with the threat of procedural shenanigans hanging in the air. Andrew Scheer led off, saying that the PM was eager to get away for summer vacation but lo, there were all kinds of new taxes. Trudeau noted that his summer vacation plans included touring the various federal parks around the country, which were all free, and oh, he lowered taxes on the middle class. Scheer then switched to French to demand a publicly accessible sex offender registry, to which Trudeau noted the existing system worked just fine. Scheer tried again in English, and got the same answer. Scheer turned to the Norsat sale in French, and Trudeau assured him that they listened to their national security agencies and allies. They went another round of the same in English, before Thomas Mulcair got up to ask the same question in English. Trudeau reiterated his response, and Mulcair insisted the answer was “demonstrably false.” Mulcair hammered away in French, but Trudeau stuck to his points about due diligence. Mulcair then demanded the government adopt the NDP’s proposed nomination process for officers of parliament, but Trudeau insisted that they already adopted a new process that got more meritorious diverse appointments. Mulcair tried again in French, but got the same response.

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QP: At last, the exchange of quips

On a rainy Tuesday in Ottawa, it was all hands on deck in the Commons, with all leaders present for a change. Andrew Scheer led off, noting the anniversary of D-Day, and turned it into a question on fighting ISIS. Trudeau noted the contributions that Canada was making to the fight. Scheer tried mocking Trudeau’s television interview responses about positive spaces in this fight, and Trudeau quipped back that Scheer must not be too busy as opposition leader if he was all caught up on his daytime TV. Scheer batted back that it was the only place he could find Trudeau over the past week, and then railed about new taxes on beer and wine. Trudeau responded that they cut taxes to the middle class. Scheer insisted that wasn’t true, and listed a number of penny ante issues like making Uber pay HST and carbon taxes (which are largely provincial), and Trudeau noted the difference in vision that his government offered. Scheer then veered into a question about the public sex offender registry, and Trudeau called Scheer out for politicising the wrong issues, and said that trying to insinuate the Liberals didn’t care about children and families was shameful. Up next was Thomas Mulcair, who brought up the Madeleine Meilleur nomination and stated that she confirmed in the Senate that she discussed the position with Gerald Butts and Katie Telford — which isn’t what she said. Trudeau reminded him of the open nomination process, and when Mulcair tried to insist that one f them were lying, Trudeau didn’t budge from his points. Mulcair then railed about Trudeau slamming the door on Quebec’s face on their request to discuss the constitution, and Trudeau said that he had other priorities. Mulcair gave it a second go, insisting this was a snub at Quebec alone, and Trudeau reminded him that he says the same thing in English and in French and had no interest in getting into a constitutional quagmire.

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Roundup: Imagining something we already have

Two different reality shows have been made pitches about televising the renovations to 24 Sussex, and some of their reasons for doing so are frankly appalling. On the one hand, one can see the temptation of such a project, both in terms of the drama, the fact that the constant conversation and hate-watching would drive the ratings, or the possibility of some form of public accountability where people would see on their screen what their millions of dollars of tax dollars are paying for (and before you say anything else, I am very dubious about that  $38 million figure being thrown around, because it likely involves a bunch of security bells and whistles that the RCMP have thrown into it that may not actually be necessary but are a bunch of “nice to haves” while they’re blue-skying). And while that’s all well and good, one of the proponents, Lynda Reeves went and put her foot in it.

We already have our “White House equivalent,” and that’s Rideau Hall. It’s where the Head of State resides when she’s in the country, and where her representative lives and conducts his work. And I know that this may be hard for someone like Reeves to grasp, but the prime minister is not a president. He is the head of government, the “first among equals” of the Cabinet, and most emphatically not the head of state. He may have an official residence, but he doesn’t require the equivalent of a White House because his job is not the same, and he has two official offices – one in Langevin Block, and the other in Centre Block (with a temporary replacement being constructed in the West Block as we speak for the decade where the Centre Block will be out of commission). He doesn’t need a live-work space like the White House is.

It’s this kind of intellectual and cultural laziness that is the exact same as people who refer to Sophie Gregoire Trudeau as the “First Lady” when she very much is not. We don’t have a First Lady or a First Family because we have a monarchy, and those roles belong to the Royal Family. The closest thing we have to a “First Lady” other than the Queen (or Prince Philip if you want to qualify the spouse of the Head of State in such a role) is actually the Chatelaine of Rideau Hall, which is the title given to the spouse of the Governor General when the spouse is a woman (which I suppose would be châtelain when the GG is a woman with a male spouse).

So no, Lynda Reeves, we don’t need a symbol similar to the American White House because we already have one. And if we want Canadians to have an image in mind when they close their eyes and imagine what the equivalent is, there are plenty of photos to choose from. Here’s one:

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QP: A failed gotcha moment

With the PM flying back from Italy, Andrew Scheer was still left waiting for his sparring match with Trudeau despite being fired up on caucus day. Scheer led off, mini-lectern on desk, reading the accusation that the Infrastructure Bank was to be used for buying favours of friends. Amarjeet Sohi responded with his well-worn reply that the Bank would free up capital for communities to spend it on other needs. Scheer worried that taxpayers would be left on the hook when loans couldn’t be repaid, and Sohi assured him that only projects in the public interest would go ahead and that they ensured accountability. Scheer read some more concern about risk and the government co-signing loans for the one percent. Sohi reiterated his previous points. Scheer then switched to French to lament the nomination of Madeleine Meilleur, and Mélanie Joly reiterated her usual points about Meilleur’s qualifications. For his last question, Scheer railed about Karla Homolka being found volunteering at a school, and Ralph Goodall fielded the question, noting the robustness of background checks. Thomas Mulcair was up next, railing about Meilleur and demanding a parliamentary inquiry into her appointment process, and Joly gave her standard reply. When Mulcair insisted that there were too many conflicts of interest, Joly noted that committees are independent, and reiterated previous points. Mulcair then changed topics, and demanded a free vote on adopting the Electoral Reform committee report. Karina Gould said it was surprising that the NDP wanted to adopt the report considering that they didn’t even agree with it. Mulcair then changed to the issue of KPMG, and Diane Lebouthillier noted investments in cracking down on tax evasion.

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Roundup: Neglecting our Canadian Sovereign

It was Victoria Day yesterday, which is a uniquely Canadian holiday that both celebrates the “mother” of Confederation, Queen Victoria, as well as acts as the official birthday of the Canadian monarch (no matter when their natural person’s birthday is). You might find it strange to find that in his message for Victoria Day, the Governor General didn’t reference the Queen of Canada at all, but rather the forthcoming Sapphire Jubilee and her being the first British monarch to achieve it.

Why does this matter? Because the Queen of Canada is a separate legal entity from the Queen of the United Kingdom, and because the holiday celebrated the Queen of Canada’s official birthday. Now, there were quibbles with my tweet pointing out the fact that the GG made the omission, but I maintain that the bigger point stands.

And Lagassé is correct in that – the emphasis is curious, and part of a troubling trend from the Canadian government, which has only exacerbated since the Liberals came to power.

While the Conservatives did a lot to bring some of the focus back to the Canadian monarchy after a couple of decades of neglect and the conscious effort to “Canadianize” a number of institutions by dropping their Royal monikers (like the Royal Canadian Navy being changed into “Maritime Command” for example, until the Conservatives restored its original name), they too did their own damage to the institution, primarily when they made the utterly boneheaded decision to pass legislation that when it came to changing the line of succession to include female heirs and those who are Catholics, they merely assented to British legislation rather than amending it in Canada. In other words, they turned what was control over our own Crown and Sovereign, and undid all of the progress we’ve made since the Statute of Westminster in 1931, when the Canadian Crown became separate from the UK Crown, and turned us essentially into Tuvalu when it comes to our relationship with the Crown, and thus far, the Courts have sided with the government when it comes to the challenges of this legislation, because the appreciation of the distinction and the role of the Canadian Crown remains largely ignorant to the vast majority of Canadian society, the judiciary included. (Incidentally, that was another bill that the Commons passed at all stages with no debate, and while it was debated in the Senate rather than veto it and tell the government that the proper way to change the law of succession is by way of constitutional amendment).

Meanwhile, the current government hasn’t named a new Canadian Secretary to the Queen since the last one retired, and has been letting the republican bureaucrats in the Department of Canadian Heritage run roughshod over the relationship with the Royal Family. And because the vast majority of Canadians don’t know any better, we’re slowly killing our distinct Crown and turning ourselves back into a mere colony. So yeah, it does matter that the GG couldn’t get this very basic thing right, and we should be upset about it.

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