The fall economic update was released yesterday, and while the rapid pace of economic growth has meant more revenues and a smaller deficit, it also means that the government isn’t going to put too much more effort into getting back to balance anytime soon, keeping the focus on reducing the debt-to-GDP ratio instead (which is going down faster). Instead, finance minister Bill Morneau insisted that they would be “doubling down” on investing in the middle class, mostly by indexing the Canada Child Benefit to inflation earlier than planned, as well as enhancing the Working Income Tax Benefit (and I will note that this part of his speech seemed to be one where Morneau acknowledged that singletons existed and needed a hand up too). There was some additional programme spending in there as well (for more, the National Post outlines eight things in the update).
Canada Child Benefit to be indexed as of July 1, 2018; accelerated from previously-promised 2020 index start date. This is a great move!
While the economy is growing at an enviable pace, it could put the government and the Bank of Canada in a bind as the need to start withdrawing stimulus measures comes to the forefront, and deciding whether fiscal or monetary policy should make the first move. There is also a marked shift between last year’s update and this year’s in that the focus is moving away from longer-term goals to short-term ones (and that could be political reality setting in). Critics accuse the government of using the update to try and change the channel on the recent headlines around Bill Morneau’s assets and disclosures, while Andrew Coyne gives his signature scathing look at the choices of the deficits, and around the rapid growth in government spending.
After Kady O’Malley suggested last week that the Senate adopt some kind of formal mechanisms to prevent the Senate from indefinitely delaying private members’ bills so that they die on the Order Paper, Senator Frances Lankin wrote this weekend that as much as she wants to see some of those bills get passed, she has no desire to adopt any mechanisms that would constrain debate in the Senate. And while I’m sympathetic to O’Malley’s point to an extent, I think Lankin has it right – and it’s good that she said something, because a lot of the newer senators look to her for guidance given that she is a senator who came into the job with previous legislative experience. The reasons why those bills can face delays are varied, but sometimes it’s legitimate that they do, and I think it would be a mistake to put in a mechanism that would essentially force those bills to be passed – especially as that would create an incentive for governments to start trying to pass difficult agenda items as PMBs (as the Conservatives tried to do on more than a few occasions when they were in power).
Meanwhile, Conservative MP Todd Doherty took to YouTube to bully senators into passing his private members’ bill. This is one of those kinds of stories that bothers me because nowhere in the piece does it mention who the sponsor of the bill in the Senate is, nor does it try to reach out to them to ask them about state of the bill and what efforts they are taking in order to see it passed, and that’s a detail that matters. If it is indeed waiting to come up for debate in committee, that’s not out of the ordinary considering that usually committees are bound to deal with government legislation before they deal with private members’ bills, and they’re the masters of their own destiny. Never mind that the bill itself is of dubious merit – these kinds of PMBs that demand “national strategies” for everything under the sun, no matter how worthy the cause, tend to be little more than feel-good bills that have little impact other than moral suasion, because they can’t oblige a government to spend money, and they figure that demanding a national strategy will push a government to take action. They don’t, but it’s all about optics, and Doherty is really pushing that optics angle.
While Monday attendance is usual for the PM, he was nowhere to be seen today, instead meeting with Muslim leaders from around the country. Rona Ambrose led off, worried that the Trump administration would be able to see Canada’s defence policy before Canadians would. Harjit Sajjan said that because the policy was determined in consultation with allies, it made sense for them to see it first. Ambrose accused the PM of meeting with Americans in secret over it, and Sajjan reiterated that it was done with broad consultation and be fully costed. Ambrose turned to Wynn’s law, complaining that the government gutted it (despite the fact that the legal community was not in favour of the bill). Jody Wilson-Raybould said that they felt for Wynn’s widow and supported the principles of bail reform, but the bill didn’t pass muster. Ambrose accused her of looking out for the interests of lawyers instead of victims (as though it’s not lawyers navigating the new problems the bill would create), but Wilson-Raybould reiterated her response. Ambrose’s final question was to demand support for her bill on mandatory sexual assault training for judges. Wilson-Raybould was non-committal in her response, just talking about the importance of the issue. (Note that after QP, the government voted to ram the bill through without further debate). Matthew Dubé led for the NDP, worried about the possibility of tolls and service fees for projects funded out of the Infrastructure Bank. Amarjeet Sohi reminded him that they could leverage investment while freeing up government dollars for things like shelters and housing. Rachel Blaney railed about the risks associated with the investments, and Sohi noted pensions funds that invest in infrastructure in other countries, while they were trying to get those dollars to stay in Canada. Blaney then demanded guarantees for fair treatment at the US border (as if that will work for the Americans), and Ralph Goodale said that any incidents should be reported so that they had a statistical record but so far the figures were on the decline. Dubé reiterated in French, and Goodale told him to follow up on individual cases with his office.
Your usual reminder that the legal community was not in favour of Wynn's Law. #QP
So, after the somewhat unexpected reversal of last night, I looked back to something from the past few days to help explain this bit of insanity that we’ve all witnessed. Michelle Rempel heard this from Republican officials late last week when she asked them how this all happened:
2/ "Trump happened b/c it was a crowded field in the primary & PAC money artificially sustained candidates that should have consolidated"
I’m going to wait before I can have much else to say about the power of nativism, and this “drain the swamp” ethos that has taken over so much of the rhetoric in the campaign, and the part that civic ignorance feeds into the politics of resentment that in turn fuels this kind of thing. But wow.
I will say how glad I am once again to live in Canada, with a constitutional monarchy and a system of Responsible Government, with a Supreme Court that isn’t partisan, and with a neutral civil service. Because we’re probably going to be reminded about how important that is in the next few years.
Justin Trudeau will be stopping in Cuba and Argentina on the way to the APEC meeting in Peru, and everyone is recalling his father’s frienship with the Castros.
The government has named a five-person panel to make recommendations regarding overhauling the National Energy Board.
I had hoped that after the last round of appointments that we were done with the vapid narcissistic “everyman/woman” wannabe candidates for the Senate would finally go back into the woodwork, but no, I see that we are indulging them once more in a plaintive wail about how terribly unfair it is that deserving, qualified candidates with decades of community and specialty experience got the nod and not them. Because who wouldn’t want an expert in the field when you could get a hot dog vendor or a draftsman who will totally enrich the legislative experience by…um, well, I’m not really sure. I mean, that’s kind of why we have a House of Commons, right? So that the everyman/woman can run and get their chance to do their part and influence policy and so on? And then the Senate goes over their work to ensure that they haven’t made mistakes with the legislation and that it’s all looking good. You know, that whole sober second thought thing? Still failing to see what value a hot dog vendor is going to add to that process. But oh noes! Elites! To which I simply reply “So what?” Do you, hot dog vendor and draftsman who are complaining to the media that your application was passed over, actually know the role and function of the Senate? Because based on everything you’ve said here, I’m not seeing that indication at all.
than it has so far. 2) That said, anyone appointed to the Senate *should* be "elite" to a certain extent, in terms of their knowledge and
Meanwhile, Senator Peter Harder is coming to the defence of the new appointment system (as he obviously would, being a recipient of its beneficence already), but takes a few gratuitous swipes at the partisans still in the Senate while he’s at it. But there’s a key paragraph in there toward the bottom, where he talks about how Trudeau “voluntarily relinquished one of the traditional levers of power of his political party and of his office” when he expelled his senators from his caucus, and it rankles just a bit. Why? Because Trudeau didn’t so much give up one traditional lever of power so much as he used the show of relinquishing his lever to gain control over a bunch of other levers instead that are less obvious, from centralizing power over the MPs in his caucus with their institutional memory driven from the room, or his now using ministers to meet with individual senators to try to cut deals for support and using Harder’s own empire-building efforts to “colonize” the new independent senators with his offers of “support” and constant attempts to bigfoot the efforts of the Independent Senators Group to establish their own processes. So no, government influence has not been driven from the Senate – it’s just changed forms, and not necessarily as transparent as it was before, and yes, that does matter.
From all accounts, the First Ministers meeting in Vancouver got off to a terse start. Premiers were unhappy over the regional bickering over Energy East and discussions of carbon pricing, while Indigenous groups were grousing that they should also have been at that table when it comes to coming up with a plan on combating climate change. By lunch, word around the place was that Trudeau was digging in his heels and was ready to impose a national carbon price on the provinces if they continued to balk and not work together to come to some kind of framework. And, by those same accounts, something changed after lunch and they struck a more conciliatory tone, and even though the meeting ran overtime, they came up with the Vancouver Declaration on Clean Growth and Climate Change, which was essentially an agreement on process. They have six months now to form four working groups and when they meet again in September, the expectation is that there will be more concrete plans, but carbon pricing mechanisms will be part of it – though there seems to be some indication that somehow carbon capture and storage will be seen as some kind of mechanism related to climate mitigation, despite the fact that thus far it’s been an expensive failure of a concept (but hey, Brad Wall is fully committed to it). And then even more grousing happened from the opposition, where the Conservatives complained that there was too much uncertainty for market investment (though not really if you consider that carbon pricing is coming, which the energy sector has actually been demanding and building into their projections), and the NDP moaning that there are still no targets or timelines (to which one wonders if they would have simply imposed them and told the provinces to deal with it if they were in charge, as with their vaunted plans for a cap-and-trade system despite the fact that BC has a successful carbon tax). So if nobody goes away happy, does that mean it was some measure of success? Perhaps, but one shouldn’t diminish the fact that there was a victory for process, because (and it can’t be stated enough) process matters. Democracy is process. So if you have a process laid out, it means that you can move ahead in a coordinated fashion with a plan and a road map and go from there. That may be an understated ending to the conference, but we’ll have to see what the next six months bring.
The very first Private Members’ Bill up on the docket to be debated is one that give me a real headache, and it’s one that should be disallowed from being voteable, all because of a wee little loophole in the rules. The bill, from Conservative MP Ted Falk, aims to increase the tax rebate which charities receive to match the same level that one gets for political donations. The problem? That this is really an expenditure, and private members’ bills are forbidden to spend money without a royal recommendation (though MPs have gone to increasingly ridiculous lengths in recent years to try and contort logic to pretend that those bills don’t spend money when in fact they do). The even bigger problem? That a loophole currently exists in the rules that makes it technically possible for these bills asking for a tax credit to bypass the spending rules because technically (and under the way that procedure is interpreted) the bill seeks to reduce tax paid, not increase or expend taxes. That’s not actually true, mind you – ask the Auditor General or any decent economist and they’ll tell you in no uncertain terms that tax credits are actually expenditures, and unfortunately there is precedent on Falk’s side, particularly with a certain PMB from Dan McTeague several parliaments ago where he got a tax deduction in under that technicality and it was deemed to be in order. The government repealed the measure in their next budget, but the bill got though when really it shouldn’t have. Unfortunately it opened the door to these kinds of bills that are looking to create new boutique tax credits, and that’s a problem. Our tax code is already thousands of pages, and far too complex. Boutique tax credits are actually terrible policy, but governments have decided that they’re good politics because they feel like they’re rewarding certain groups for certain behaviours, and damn the consequences. The Auditor General has sounded the alarm that these measures aren’t being properly tracked because they’re not deemed expenditures (even though they are), which means that they’re not being given proper parliamentary oversight to ensure that it’s money that’s being well spent – and he found many cases where it’s not. But as Falk is demonstrating, the floodgates are opening, and it won’t be long before the Order Paper is replete with these PMBs demanding new boutique tax credits for everything under the sun, to encourage all manner of behaviour that they deem a social good, under the rubric that they’re not spending any money and thus within the rules. It’s a loophole that Parliament needs to set upon itself to close for the sake of the tax code and parliament’s ability to hold these kinds of spending measures to account. Sadly, one suspects that in their self-interest, MPs won’t make the needed rule change and we can expect this situation to get worse with every passing parliamentary session.
@beisan@kady@ThomasHall17 One caveat to this is C-253, Dan McTeague's PMB, where the Speaker ruled a Royal Recommendation wasn't needed
Plenty of developments in the Senate yesterday, all of them resignation related. Manitoba Senator Maria Chaput resigned due to health concerns, Conservative Senator Irving Gerstein has reached his mandatory retirement age, and Senate Liberal Senator Pierrette Ringuette has resigned from the Senate Liberal caucus to sit as an Independent. As part of the tributes to Gerstein, there were some overwrought statements on the Conservative side about the value of political fundraisers, and I will say that I’m not one of those people who has a kneejerk reaction to fundraisers who get appointed to the Senate. Why? Because these are people who interact with the voters as much as MPs do, and have a pretty good sense of what their issues are (if only to exploit them for political gain). It’s like being aghast that there’s politics in politics. Granted, the tone out of the Conservative Senate caucus these days of “See! There’s nothing wrong with being partisan!” isn’t helping their case any, but on a fundamental level they’re right. They just need to tone it down from an eleven to a two or a three. As for Ringuette, I will note that the fetishised tones being used to describe the “desire for an independent Senate” are as equally overwrought as the Conservatives’ defence of partisanship. I was particularly struck by Ringuette going on Power & Politics and declaring that there’s nothing in the constitution that says that the Senate has to be a partisan body, therefore she and others of that mindset feel that there’s no role for partisanship. Where that argument falls apart is that it’s right in the preamble of the constitution itself – that Canada has a political system like that of the United Kingdom, and last I checked, its upper chamber was also a partisan body (and no, this isn’t an invitation to compare the Senate to the House of Lords, because they are very different institutions, but the principle of the upper chamber remains). People who insist that something isn’t in the constitution (*cough*Elizabeth May*cough*) ignore the unwritten parts of it, which are just as valid as the written parts, and it’s not an adequate defence for how they imagine institutions to function. So while it’s good on Ringuette to want to go her own way, I do think that the conversation around independent senators is still in its early stages, and I have no doubt that there are plenty of surprises on the way.
I’ve written a lot about the problems with private members’ bills, and in my column this week over at Loonie Politics, it came up again given that the lottery for the Order of Precedence was posted. I wrote about it back in the spring when there were a number of problematic ones that the Senate was possibly going to kill (and in some cases did when the clock ran out on them) for good reason – because they were bad bills. While interviewing Liberal Senator George Baker yesterday for a story I was writing, he offered this, which I unfortunately wasn’t able to include in the piece, but every MP should nevertheless read it and take it to heart:
“Here’s a real problem with these private member’s bills: if there’s a fault in the bill, if there’s a word out of place, if there’s an error in the wording or in the intent of a sentence of paragraph – if it’s a private member’s bill, then the Senate is in a quandary because if they amend the bill, then they will in all likelihood be defeating the bill. If you amend a bill in the Senate, if it’s a private member’s bill, it goes back to the Commons and it goes to the bottom of the list for consideration, and then the private member will come to the Senate committee and say you’re going to pass this bill. We had it happen three times in the past two years. They say you’re going to defeat the bill, so the Senate turned around and passed the bill, given the tradition of not defeating something that’s legitimately passed in the House of Commons, and Senate ignored the necessary amendments and they passed bad legislation.”
Baker is absolutely right in that there is a problem – MPs don’t have them drafted very well, and then don’t do their due diligence because these bills are automatically time-allocated by design. That a number of these bills died on the Order Paper in the Senate one hopes might be an object lesson to MPs that they need to do better, but unfortunately, the lesson too many MPs took is that the “unelected and unaccountable Senate” didn’t just rubber-stamp a bill because it passed the Commons. Except, of course, it’s not their job to rubber stamp, and we’ve had an increasing number of bad bills getting through the cracks based on these emotive arguments, and not a few hissy fits along the way *cough*Reform Act*cough*. And now we have bad laws on the books because of it, apparently content to let the courts handle it instead. It’s sad and a little pathetic, to be perfectly honest. We should be demanding out MPs do better, and when they screw up, they need to take their lumps so that they’ll do better next time. Otherwise they won’t learn – or worse, they will take the wrong lesson, and our system will be worse off.
The announcement came down yesterday making it all official – Rosemary Barton has now passed the gauntlet of the competition process and has officially been named the permanent host of CBC’s Power & Politics. It’s not as though she didn’t more than prove herself in spades over the course of the election, with six-days-a-week broadcasts, and sharp coverage, but that Chris Alexander interview, where she shut down one of his tantrums and put him in his place – that has become legendary in political circles already. A senior journalist in this town described her as an “accountability interviewer,” and that’s something that’s been desperately needed in this city, where there has been a certain amount of timidity in the kinds of interviews we’ve seen. Not having a Jeremy Paxman of our own, we’d seen many a political show host in this country tiptoe around members of the Harper government for close to a decade because they often threatened (or instituted) boycotts after one hissy fit or another (John Baird being particularly famous for them), but Barton was having none of that – and it went for opposition MPs as well, like her interview with Thomas Mulcair pretty much on the day she was given the interim job when Evan Soloman’s sudden firing happened, and she didn’t put up with Mulcair’s too-cute-by-half routine. In their release, CBC pointed out her history as a reporter, going back to her starting out as a researcher for the French-language RDI while in Winnipeg, and covering politics in Quebec City – the kinds of chops that her predecessor never had, who relied instead on personality than on hard-won experience in covering the beat. And with Barton’s permanent appointment comes the acknowledgement of the changing face of politics in Canada – the fact that she’s not a middle-aged white male is important in an age of younger MPs, and of gender-equal cabinets, that a younger woman is tougher and more competent in the role than her middle-aged male contemporaries. It’s just too bad that this announcement didn’t happen in June on the heels of Solomon’s departure. (And as for Evan Solomon, it was announced that he’s taking over the afternoon broadcast for Ottawa’s CFRA radio station, because all is apparently forgiven for his ethical lapses).