Roundup: Those amended tax proposals

Bill Morneau unveiled his latest tweaks to his tax change proposals in New Brunswick today, and it looks like a pretty serious attempt to continue to close the avenues for tax avoidance by means of using Canadian-Controlled Private Corporations, while at the same time trying not to completely dissuade the use of those corporations to help businesses save for rainy days or mat leaves, etcetera – in other words, that he’s taken the concerns seriously. So here are economists Lindsay Tedds and Kevin Milligan to break down the new proposals.

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Senate QP: Jim Carr disputes your questions

With the cancellation of the Energy East pipeline by its proponent still fresh in the minds of many Canadians, it was natural that an appearance by Natural Resources Minister Jim Carr in the Senate would prompt a lot of questions. It did not disappoint. Senator Larry Smith led off, wondering about the “evaporation” of energy projects in Canada while the Americans continued to ramp up their own projects. Carr disputed that there was an evaporation, and spoke about the approval of three projects that would create 27,000 jobs and that while they recognized the need to reform the regulatory process, they were approving more projects than they were rejecting. On a supplemental, Smith asked what could be done to better advance Canadian energy security through things like pipelines, and Carr disputed a bit with how it was worded, and noted that the government has certain responsibilities, and upon seeing some shaking heads across the aisle, Carr laid out conditions that have changed since the Energy East pipeline was first proposed, including the price of oil and new approved pipelines including Keystone XL.

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Roundup: A reminder of why debate matters

While I haven’t been following the trial in Sudbury around those non-criminal bribery charges related to the provincial by-election, aside from Chris Selley’s columns on the topic, it was something that he tweeted from the courtroom yesterday that piqued my interest because it’s something I deal with a fair amount in writing both about law and politics. Part of the issue raised is that these sections of the law that the trial is proceeding under have never been tested before.

We see these kinds of bills passed not infrequently federally that are passed at all stages with no debate. This is usually where the Senate picks up the slack and does the actual heavy lifting, but not always. Sure, there are a few bills that are relatively non-contentious, related to national parks and such (to think of an example or two off the top of my head), but some that matter – like the changes to royal succession in Canadian law – got no debate in the Commons despite it being a fairly fundamental problem that the law as passed effectively reduced Canada’s status to that of a colony once again.

But the point I make is that the courts will often turn to Parliament for guidance in what it is they should be interpreting. That means looking to debates and committee transcripts to try to divine just what it is that Parliament intended when they passed the bill so that the judge can rule one way or the other in clarifying the meaning. And if you have no such debates – like in this Ontario statute – well, that’s a real problem. It’s also a reason why I will frequently harp on why the Senate matters so much is because they not only will offer some debate in instances where the Commons offers none, but it’s where committee testimony becomes most crucial, especially when it comes to hearing from witnesses that people object to (as happened with the trans rights bill) – because they want it on the record that they heard and dismissed these concerns should they eventually be litigated.

Parliament is supposed to matter, and MPs (and MPPs in this particular instance) do themselves and the province or country they serve a real disservice when they don’t do the job of putting things on the record. And I’ll say that the issue going on in Ontario right now with the bubble law around abortion clinics is another such issue. The provincial Progressive Conservatives offered to pass the bill at all stages – eager to get it off the agenda so that it minimizes the divisions in their ranks on the issue, and the Liberals refused, wanting instead to hear from those it affects. While the cynical calculation is that this is the Liberals playing politics – and to an extent it really is – it’s also the responsible thing to do, so that we get some debate and testimony on the record, so that when this legislation is inevitably challenged, there is a record for the courts to turn to. And yes, that matters beyond the petty politicking.

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Roundup: No conflict to investigate

For all of the ink spilled and concerns trolled in Question Period, the Morneau-Shepell conspiracy theory is turning into a big fat zero for the Conservatives. Why? It seems that for all of the “appearance of conflict of interest” that they’re trying to drum up and selective laying out of facts in true conspiracy theory style (with the added cowardice of hiding behind the so-called “experts” who laid them out in committee testimony), the Conflict of Interest and Ethics Commissioner herself is shrugging it off.

“There does not appear to be reasonable grounds at this time for the Commissioner to launch an examination under the Conflict of Interest Act or an inquiry under the Conflict of Interest Code for Members of the House of Commons,” said the Commissioner’s spokesperson, and added that they won’t bother investigating investigate “if there is no specific information to suggest that a provision of the Act or the Code may have been contravened.”

And guess who isn’t putting up any specific information that would suggest an actual conflict of interest? The Conservatives. They’re still “gathering information,” which is cute, because why bother filing anything formally when you can make all manner of accusations and cast as much aspersion as possible under the protection of the privilege of the House of Commons, that will be reported uncritically? After all, this is “just politics,” and you can worry about the “appearance” of conflicts all you want on flimsy to no evidence, while facing no consequences whatsoever. It’s tiresome, but it’s the kind of sad drama that we seem to be subsisting on rather than substantive debate on the issues and the actual concerns that appeared around those tax proposals. Such is the sad state of affairs these days.

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Roundup: The demise of Energy East

The news that TransCanada decided to cancel their plans for the Energy East pipeline yesterday created a predictable firestorm of reaction, from the gloating of Montreal mayor Denis Coderre, outgoing Saskatchewan premier getting in his last kicks, to the histrionics of the Conservative caucus. The government’s line is market conditions have changed since the project was first proposed – and they’re entirely correct. But that doesn’t stop the rhetoric, either from TransCanada itself, or from the Conservatives, who are peddling some incredulous, mind-boggling lines to vilify the government.

But seriously, there are plenty of charts and graphs that show how the market conditions have changed beyond just the world price of oil (which is a bit part of it), but that the capacity with the other approved pipelines changes the equation for the hole that Energy East would have filled, and it’s no longer clear that it was a clear-cut decision after all.

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Also, it should be mentioned that as much as TransCanada is blaming government regulation, they did balls this up on their own end more than once, and do need to take some of the blame along the way. But why take that blame when you can shake your fist at the government?

And this having been said, there is a proud Alberta tradition that is underlying all of this. Because some zombies refuse to die.

Meanwhile, Paul Wells looks at the current record of the government in trying to attract investment, and wonders if we really are a place that will get the big things built, or if it will all collapse in tears and recriminations, driving investors away.

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QP: Energy East and Barbados

After the Energy East cancellation announcement this morning, you just knew that this would be the fodder for increasingly hysterical denunciations during QP today. Justin Trudeau was present, but Andrew Scheer was not, so it remained to be seen how this would play out.

Lisa Raitt led off instead, mini-lectern on desk, blaming the government for killing Energy East with their ideology. Justin Trudeau responded that it was a business decision, that the project was proposed when oil was $90/barrel and it’s now half that, but that his government had already approved three other pipelines. Raitt accused the government of playing to the interests of countries like Saudi Arabia, and Trudeau shrugged off that suggestion. Raitt then accused him of taking Atlantic Canada for granted with this cancellation. Trudeau countered that they had an Atlantic growth strategy and that it was the previous government that ignored them. Gérard Deltell then took over the condemnation of the loss of Energy East in French, and Trudeau reiterated that conditions have changed, also in French. Deltell then said that Trudeau was responsible for conditions changing, as though Trudeau controls the world price of oil, and Trudeau instead responded about the ways that they have been doing what the market has been asking for, including carbon pricing. Guy Caron was up next, pointing to the recent PBO report on fiscal sustainability, and demanded that healthcare be adequately funded for the provinces. Trudeau touted the investments that they made in mental health and home care. In English, Caron demanded a national strategy for seniors, to which Trudeau listed all of the measures that they have taken. Caron then changed topics to the Phoenix pay system, demanding a refund for it. Trudeau noted that they were working with the public service and the unions to fix the situation, and then there was another round of the same in French.

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QP: Equating Khadr with First Nations

Wednesday, caucus day, and not only was the prime minister in attendance, but we also saw NDP MP Guy Caron named as the party’s “parliamentary leader” in lieu of Jagmeet Singh while he remains seatless (and you can bet that I have a very big problem with this). Andrew Scheer led off, mini-lectern on desk, reading an exhortation about the proposed tax changes in French, condemning the defeat of their Supply Day motion on extending the consultations. Justin Trudeau responded with his usual points about being elected to raise taxes on the wealthy, and that they have listened to Canadians’ concerns as they move ahead with a bill. Andrew Scheer tried to turn the issue into one of touching the PM’s own family fortune, but Trudeau reiterated his talking points. Scheer insisted that the proposals would mean the wealthiest pay less while the middle class pay more — an extremely dubious claim — and Trudeau sounded a bit weary having to repeat himself about their plans to make the tax system fairer. Scheer then moved onto the topic of Omar Khadr, claiming that repatriation was his compensation and that the excuse of saving legal fees didn’t stack up in the face of the court case of that First Nations girls who needed braces. Trudeau reminded Scheer that they don’t only get to defend Canadians’ rights when it’s popular. Scheer asked again in French, and Trudeau responded with prepared points about the programme for uninsured care and that these services would be improved under the new Indigenous Services department. Guy Caron was up next to lead off for the NDP, and he asked about the Environment Commissioner’s report in French, and Trudeau responded first with congratulations to the new NDP leader and Caron’s new role, before giving a brief and bland assurance about the report. Caron asked again in English, and Trudeau gave a longer response about the environment and the economy and they have an ambitious carbon pricing plan coming in. Caron then railed about the Netflix deal and the outsourcing of Canadian culture to American companies. Trudeau assured him that they had faith in our content creators, and when Caron asked again in French, noting the condemnation of the Quebec National Assembly, Trudeau noted that they promised not to raise taxes on the middle class so they wouldn’t go ahead with additional levies.

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QP: Morneau’s five new themes

While the prime minister was off meeting with the premiers and Indigenous leaders, it was also a Supply Day where the Conservatives were demanding an extension of the consultation period for the proposed tax changes. Andrew Scheer led off, mini-lectern on desk, and read his concerns about “local businesses” in French, and how tax changes would doom them. Bill Morneau reminded him that they were listening to Canadians and would ensure that their concerns were being heard. Scheer switched to English to demand that the government vote for their opposition motion on extending the consultation period. Morneau instead listed the five things they’ve heard that they plan to address. After another round of the same from Scheer and Morneau, Gérard Deltell got up to ask in French about the verification of the plans, and Morneau reminded him that they were looking for a fairer system that would encourage investment. Deltell railed that the measures would kill small businesses, but Morneau repeated that they were listening to the consultations. Alexandre Boulerice led for the NDP, railing about Netflix and tax avoidance by big corporations and tax havens, and Diane Lebouthillier reminded him that they were indeed going after tax evaders. Boulerice asked again in English, and Morneau deployed his worn tax fairness talking points. Linda Duncan was up next and raised the concerns laid out in the Environment Commissioner’s reports, and Catherine McKenna listed a number of measures that they were taking. Robert Aubin repeated the question in French, and McKenna reiterated her response in French.

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QP: Statements for Edmonton and Vegas

In the wake of the installation ceremony for Her Excellency, the Right Honourable Julie Payette, Justin Trudeau was not in the Commons for QP, leaving only Andrew Scheer as the leader of note present. Scheer led off, mini-lectern on desk, reading about shock and sadness for the terrorist act in Edmonton over the weekend, and asked for a minister to update the House on the situation. Ralph Goodale read a statement of condemnation for the action and congratulations to the Edmonton Police Service for their actions, and updated on the injured. Scheer then read similar sentiments for the shooting in Las Vegas — minus the part about condemning global terror — and Chrystia Freeland responded with condolences and notes that one Canadian was confirmed killed and consular services were working to help victims and their families. (A second Canadian was later confirmed as having been killed). Scheer then moved onto the proposed tax changes, and Bill Morneau assured him that they were listening and would make changes to the proposals. Maxime Bernier was up next, saying that Morneau was not listening, and then raised the Morneau-Shepell conspiracy theory, and Morneau insisted that they were listening, which was why they engaged in consultations. After another round of the same in French, Alexandre Boulerice railed about the situation in Catalonia, but rather than answer, Bardish Chagger got up to read a statement of congratulations about Jagmeet Singh’s leadership victory. Boulerice asked again, and this time Chrystia Freeland said that Canada was hoping that Spain would act in a democratic manner. Pierre Nantel was up next, railing about the Netflix deal as selling out Canadian culture amidst a rate hike, and Mélanie Joly insisted that it was a good deal and was the first stage in modernising our cultural policies. Nantel and Joly went another round in English, not that the question or answer changed.

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QP: The Morneau-Shepell conspiracy

Shortly after a fire alarm emptied out the Centre Block, and MPs made their way back into the building, Question Period got underway. Andrew Scheer led off, reading a stilted question about the Omar Khadr settlement in French. Justin Trudeau took the chance to take a partisan shot, saying that this was because the previous violated his rights — not mentioning that it was also the fault of previous Liberal governments — and reiterated his previous speech about how he was outraged and hopefully that outrage would ensure that future governments would not violate rights again. Scheer called out that the Liberals were at fault too, and Trudeau modified his response that it was about previous governments (plural) but added that this was not about Khadr, but about the government’s action and they should stand up for rights even when it’s not popular. Scheer then pivoted to the tax change issue, got the usual talking points from Trudeau, and when Scheer tried to skewer this as being one more cost to the middle class, and Trudeau reeled out his points about cutting taxes on the middle class. Scheer made a few digs at Trudeau’s own numbered corporation and his speaking fees before he was made party leader, but Trudeau didn’t take the bait. Pierre Nantel was up for the NDP, and railed about the announcements on cultural industries. Trudeau read a statement that assured him that they had unprecedented investment from Netflix, and that they would ensure that Canadian creators would benefit. Rachel Blaney asked in English, decrying that Facebook and Google were not being made to pay, but Trudeau reiterated his assurances that Canadian producers would benefit from these funds. Nantel repeated the question in scripted English, Trudeau reiterated that this was great news for Canadian cultural industries, and Alexandre Boulerice closed the round by railing that other media companies weren’t being taxed. Trudeau repeated that they were looking to support the industry as it transitions.

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