Roundup: Paradise Papers problems

Big explosive revelations yesterday as the Paradise Papers were released – a major document dump on more offshore tax havens and those who use it. Canadian connections include the head of fundraising for the Liberal Party, Stephen Bronfman, whose family trust holds assets there, the family of a former senator, while three former prime ministers – Brian Mulroney, Jean Chrétien and Paul Martin have tangential connections to accounts there, as does the Queen. And while headlines may describe Bronfman as a “close advisor,” the party is disputing that label.

The bigger concern seems to be that Bronfman’s long-time law firm lobbied successive governments against going after more offshore tax havens. (Funnily enough, it was the Conservatives who cut funding for CRA to do this kind of investigative work, while the Liberals reinvested in it). The question for the CRA in all of these revelations is whether these funds were managed in Canada – which would break the rules – or whether they were managed from their offshore locations. CRA, incidentally, says it won’t hesitate to investigate these new revelations, which is consistent with the messages we’ve been hearing from them since they got more money for this kind of work.

As for the Queen’s indirect involvement in this, investments made by her Duchy of Lancaster holdings have an indirect stake in a rent-to-own company accused of exploiting the poor by way of these offshore funds.

And now the political reaction. While the NDP will piously shout a chorus of “we told you that you should be going after offshore tax havens!” the Conservatives have already put out press releases describing this as having to do with cozy friends of the Liberals and that this is somehow hypocritical of their fighting for the middle class – never mind that I didn’t think that Mulroney was a Liberal, or the fact that most of these connections are fairly tangential and that there is no evidence of any wrongdoing. But hey, this is about “Liberal aristocracy” and not the “little guy” that they now profess to fight for. (Remember the days when the Conservatives were the party of Bay Street? Me neither).

And Question Period today? I can pretty much guarantee you that after Andrew Scheer makes his dig about Trudeau not standing up for people of faith after the Governor General’s speech the other night (and four days later, the pundits still haven’t gotten up off of their fainting couches from it), it will be endless rounds of questions about these “Liberal insiders” hiding money offshore, tying Bill Morneau to this by way of the Morneau Sheppel/Barbados conspiracy theory, and Diane Lebouthillier will be up constantly to say that this government is going after tax evaders where the previous government cut funding, and that “the net is closing.”

Continue reading

Roundup: Harper unhappy with NAFTA talks

Stephen Harper has apparently written an angry memo to his clients about the governmetn’s handling of the NAFTA negotiations, accusing them of bungling them by not evaluating American demands seriously (err, you have seen how many of their demands are literal impossibilities, right?) and of ignoring a softwood deal (which officials say was never on the table), and of aligning themselves too much with Mexico when they were the targets of America’s ire. Canadian officials are none too pleased, and consider it a gift to the Trump administration.

Alex Panetta, the Canadian Press reporter who broke the story, has more commentary below.

Paul Wells offered a few thoughts of his own on the news.

Incidentally, the PM has also vocally disagreed with former Conservative minister James Moore’s assertion that trade talks with China are hurting our talks with the Americans.

Continue reading

Roundup: Neglecting a vital institution

Of the things that vex me about our current government, their tacit endorsement of republican sentiment in this country is high on my list. The fact that they have allowed the Conservatives to take up and politicise the monarchist space in the Canadian landscape is shameful, and the fact that they have allowed the position of Canadian Secretary to the Queen to lapse is just one more sign of this particular antipathy. For all that he professes his affection for Her Majesty, Justin Trudeau seems to have a pretty difficult time reflecting that in his government’s particular decisions, and we will pay the price for it. That the work of arranging royal tours and being the link to Buckingham Palace is being left to the bureaucrats in Canadian Heritage is not a good thing. Everything I have heard about the job they do is not only that they are plagued with incompetence when it comes to the actual work of dealing with the Canadian Monarchy, but the tacit acknowledgement of my sources that those very bureaucrats charged with the responsibility are themselves republicans is hugely problematic. That they are the ones offering advice to the government is a very big problem. And that Trudeau appears to be neglecting this very important relationship is worrying. I know that there are monarchist Liberals in the ranks, and I hope very much that they can start to raise a fuss about this, because it’s a very worrying road that we are now on, and this kind of neglect can do lasting damage to our most fundamental institution, which we should all be very concerned about.

Meanwhile, Paul Wells had an exit interview with Governor General David Johnston, and brought up the issue of debating abolishing the monarchy. Johnston, bless him, pointed out that the countries that most satisfy the needs of their people tend to be constitutional monarchies, so we’ve got that going for us.

Continue reading

Roundup: Digs at the current leader

The NDP had their final official leadership debate yesterday in Vancouver, and it was about as exciting as any of their debates have been so far. But scratching beneath the surface, there was an undercurrent that was playing out which was deeply critical of the way that the party has been run under the leadership of Thomas Mulcair, and why they planned to fix it.

One of the points that was noted several times by both Guy Caron and Charlie Angus was that the caucus was being underutilised when it comes to outreach, and furthermore, Angus was very critical about the way in which the grassroots membership was being taken for granted and dictated to rather than giving input into the process. While this is really par for the course in pretty much all parties these days, thanks to top-down leadership styles brought on by the fact that we now run leadership contests as presidential primaries in this country (and the fact that these very same candidates are playing into it with competing policy platforms that were developed by their own teams rather than the grassroots membership), the fact that they hammered away at the caucus being underutilised was something that stuck out for me, because it certainly implies that Mulcair has been running a party-of-one (and yes, those are shades of Stephen Harper you’re seeing). But while Angus and Caron talked about not enough effort being made to translate what was going on in the House of Commons to their base, one has to wonder how they plan to remedy that, and whether we’re going to see an explosion of YouTube clips of MP speeches (which are generally terrible recitations of scripts into the record) attached to more fundraising demands, demonstrating the “good work” that they’re doing in Ottawa.

Meanwhile, here’s Éric Grenier’s analysis of the various endorsements of the candidates, and what the breakdown of them looks like regionally, while Jagmeet Singh dropped a new policy proposal of decriminalising all illicit drug possession as a harm reduction measure, much as Portugal did.

Continue reading

Roundup: A shuffle and a split

So, there was that relatively small cabinet shuffle yesterday, some of which was telegraphed in advance, some of which became the subject of wild speculation as Trudeau seemingly threw in a couple of red herrings for the pundits to go wildly chasing to no end (LeBlanc and Wilson-Raybould especially). In the end, the new faces are Seamus O’Regan at Veterans Affairs and Ginette Petitpas Taylor to Health, while Carla Qualtrough moves to Public Services and Procurement, Kent Hehr takes over sport and disabilities, and in the biggest move, Jane Philpott moves over to a split Indigenous Affairs portfolio, so that Carolyn Bennett now becomes minister of Crown-Indigenous Relations, and Philpott becomes minister of Indigenous Services. While it’s hard to say that Hehr’s move is anything but a demotion, O’Regan’s move is being noted both for his close friendship with Justin Trudeau, as well as his move from rehab to the cabinet table, for what it’s worth. Also of note is the fact that new mandate letters will be forthcoming in the next few weeks, while there was a bit of panic when the old ones were re-issued with new names for the time being.

The real news is the fact that Bennett and Philpott’s joint mandate will be to ultimately dismantle Indigenous and Northern Affairs and to create two separate departments that will move the files toward greater self-governance and be a less paternalistic structure for Indigenous communities to deal with – especially since the current structure does not currently suit the North well for Inuit communities, or Métis. Complaints about the creaky bureaucracy hampering the Indigenous file are constant, and structural reform like this is probably the next logical step in moving those particular files forward, but there are already detractors moaning that this will just mean double the bureaucracy and double the obfuscation. Maybe. I’m also dismayed by commentary from the likes of Hayden King who dismiss what the government has done to date as being symbolism and process. Why that bugs me is because process is important. Democracy is process. Changing the fundamental ways in which things happen – i.e. process – is important can’t just be shrugged off because it doesn’t turn into an instant fix. These kinds of issues are systemic and stubborn, and sometimes changing process to get the wheels turning is actual progress, even if it takes a while to see the results. None of this happens overnight – indeed, dismantling INAC won’t either, and step one is yet another consultation process on what the end goals are going to look like so that they can make the split with those in mind. And no doubt, we’ll hear yet more naysayers, but these are changes that will take time to happen.

AFN National Chief Perry Bellegarde is happy with the change as a next step to dismantling the Indian Act. Susan Delacourt sees Trudeau keeping his friends close in this shuffle, while Chantal Hébert notes that the Canada-US files remain untouched in the shuffle, which points to how Trudeau is targeted isolated problems while looking to stay the course with the NAFTA talks. Paul Wells looks at Jane Philpott as this government’s go-to fixer, while Aaron Wherry notes the two doctors now in charge of the Indigenous portfolios and what that may mean.

Continue reading

Roundup: More tax change caterwauling

Another day, and more moaning about the proposed small business tax changes, which have now been equated to “class warfare”! Yes, a pair of tax lawyers wrote in the Financial Post yesterday about how the ability for small business owners to split their income with stay-at-home spouses was great policy because it was first proposed back in 1966. I kid you not. Fortunately, economist Kevin Milligan is back after a few days offline, and can help sort some of this out.

And then there’s this kind of silly thinking:

Government is not a business. It cannot be run like one, no matter how many times people like to chant it as a slogan. It fundamentally does not operate in the same way, nor can it ever run in even approximately the same way. The absolute fundamental principles do not translate because government has no bottom line. The sooner people grasp this, the sooner we may have more rational discussions on how to better operate government in a sane and rational manner.

Meanwhile, Andrew Coyne is unconvinced by all of the caterwauling about the proposed changes, not seeing the moral advantage that small businesspeople are apparently owed, and suggests instead that the incentives to incorporate be reduced by bringing the topline personal income tax rate and the small business rate closer together.

Continue reading

Roundup: Promised term-limits?

In yesterday’s Hill Times, the question of promised term-limits for Harper appointees in the Senate was discussed, with a variety of responses in return. Some confirmed that they had agreed to an eight-year limit and would try to hew to it, while others said that it was some great myth that they agreed to such a limit when they were appointed, and expressed bafflement as to where the media got such an idea. (Hint: A bunch of senators said that they agreed to it, including Senators Wallin and Duffy). And while some of those senators noted that things changed, and that it wasn’t a realistic promise to keep if it wasn’t applied evenly, I would also add that it would have been an unconstitutional promise (if indeed they had made it).

While there is some fairly clichéd grumbling about how terrible it is that some senators are appointed for thirty-some year terms, the concept of term limits in the Senate is generally a bad one for a number of reasons. First of all, most terms that have been bandied about are too short to be effective. The Senate is the institutional memory of Parliament, given that we have a fairly low rate of incumbency and a high rate of turnover in the House of Commons. Eight year terms are not only too low for much in the way of memory (twelve being better), the bigger problem with eight-year terms is that it would allow a prime minister with two majority mandates to completely turn over the composition of the Chamber, which is a Very Bad Thing when much of the raison d’être of the Senate is to be a check on a majority PM.

The other, bigger point, about having a Senate where they are appointed to age 75 and are difficult to remove is that the tenure allows for institutional independence. If you have term limits – especially shorter ones – it means that you stand a greater likelihood that senators start trying to curry favour with the government toward the end of their term so that they can get some kind of post-senatorial appointment, whether it’s a diplomatic posting or heading a tribunal. By ensuring that they stay until the mandatory retirement age, it means that they aren’t going to be trying to leverage their position for post-senatorial employment because they will beyond the age by which any federally appointed positions will have them. That’s an important consideration that often gets overlooked.

While this debate around whether these senators did or didn’t agree to such a term limit, there is no enforcement mechanism, and as stated earlier, it was an unconstitutional promise so it should be considered moot. As to the point as about senators with very long tenures, that remains something that the government that did the appointing can be held to account for (and indeed should be) if they consistently appoint young senators.

Continue reading

QP: Carbon taxes and foreign takeovers

On a sweltering day in Ottawa, things carried on as usual in the House of Commons. Andrew Scheer led off, railing about carbon taxes killing the manufacturing sector, never mind that in his Ontario example, it was a provincial carbon price. Justin Trudeau hit back with jibes that it was good to see that most of the aconservaties believed in the Paris Accords and that carbon pricing was good for the market. Scheer groused that they would meet the targets without a carbon price, before moving onto the Norsat sale and lack of a comprehensive security screening. Trudeau reminded him that they took the advice of national security agencies. Scheer took a second kick, needling that Trudeau admired Chinese dictatorship too much to care about national security, and Trudeau lashed back that partisan jibes like that were unworthy of this place. Denis Lebel was up next, demanding a non-partisan process to appoint parliamentary watchdogs, and Trudeau noted their new appointments and rattled off some of the diversity of the new reports. Lebel tried again in English, and got the same answer. Thomas Mulcair was up next, asking if the Der Spiegel article was true that the government was backing away from climate goals at the G20. Trudeau insisted that they have been climate leaders and pointed to examples. Mulcair pressed, and Trudeau was unequivocal that he did not say what was in the article. Mulcair then turned to the issue of court cases involving First Nations children and dialled up the sanctimony to 11, and Trudeau noted the memorandum of understanding he signed with the AFN this morning about moving forward on steps. Mulcair demanded that the NDP bill on UNDRIP be adopted, but Trudeau insisted they were moving forward in consultation (never mind that said bill is almost certainly of dubious constitutionality).

Continue reading

Roundup: NDP catch the Corbynite smugness

It was a bit odd, yesterday, watching NDP MP Erin Weir stand up before Question Period to offer congratulations to UK Labour leader Jeremy Corbyn on his “success” during this week’s election, considering that Corbyn lost. Weir considered it an inspiration to their own leadership candidates, each of whom also offered variations thereof over social media. (Andrew Scheer, for the record, also tweeted encouragement to Theresa May for “strong stable leadership” – a veritable echo of Stephen Harper’s 2011 campaign slogan – only to see May’s fortunes crumble).

Of course, this NDP praise of Corbyn ignores the context in which he “won” (by which we mean lost) this week, and that was that Labour’s share of the vote and seat count went up in spite of Corbyn’s leadership and not because of it. Why? Because he’s been an absolute disaster as a party leader, and an even bigger disaster as opposition leader, and in many instances couldn’t even be bothered to do his job in trying to hold the government to account on matters of supply – an appalling dereliction of duty. And this is without getting into Corbyn’s record of being a terrorist sympathizer, someone who took money from Iran’s propaganda networks and whose activist base has a disturbing tendency to anti-Semitism.

Nevertheless, this “success” of Corbyn’s (and by “success” we mean he lost), Twitter was full of mystifying smugness from hard left-wing types, insisting that it meant that Bernie Sanders would have won the general election (never mind that he couldn’t even win the primaries). Yes, the fact that Corbyn managed to motivate the youth vote is something that will need study in the weeks to come, I’m not sure that we can discount the fact that there is a certain naïveté with the youth response to his manifesto promises that was full of holes, and there was a youth response to Sanders as well, which some have attributed to the “authenticity” of his being a political survivor. Can this translate into a mass movement? I have my doubts.

The smugness around his “win” (which, was in fact a loss) however, is a bit reminiscent of the NDP in 2011 when they “won” Official Opposition, and were similarly smug beyond all comprehension about it (so much so that they were going out of their way to break traditions and conventions around things like office spaces in the Centre Block to rub the Liberals’ noses in it). That we’re seeing more of this smugness around a loss make a return is yet another curiosity that I’m not sure I will ever understand.

This all having been said, here’s Colby Cosh talking about what lessons the UK election may have for Canada, including the desire to export brand-Corbyn globally.

Continue reading

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:

Continue reading