Monthly Archives: November 2018

Roundup: A sudden dilemma for Singh

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Liberal MP Raj Grewal made a surprise announcement last night, that he’s resigning his seat because of “personal and medical reasons,” which the PM later called “serious personal challenges” – a phrase that only raises the number of questions about what it could be. Aside from losing one of the best-dressed MPs on the Hill (Grewal is a frequent recipient of sartorial snaps on this blog), where this announcement gets very interesting is the bind that it places on NDP leader Jagmeet Singh.

Singh had initially stated that he wanted to run in Grewal’s riding during the next election, given that it was his riding provincially (note to non-Ontarians: in this province, the federal and provincial ridings are identical with a couple of exceptions in Northern Ontario), and for almost a year, he kept stating that he was “comfortable” not having a seat and waiting to run in that same Brampton riding in 2019. That is, until his party’s poll numbers started tanking and he realized that he needed to actually be present in Parliament if he hoped to regain any traction. (Also of note, his brother now holds the seat provincially.) But in August, Singh committed to run in Burnaby South, and has been spending some time there campaigning, and recently announced that he found a rental property there.

So this leads us to wonder – will Singh abandon Burnaby South, where he has already expended some effort and expense, or will he decide that since Brampton is now back on the map, that it’s the smarter decision to run in given his roots and history in the riding? This just as Singh learned that he’ll get the byelection in Burnaby South that he’s been (belatedly) demanding in February. So there’s a choice to make, and we’ll likely hear all about it in the coming days. (Also, expect the Conservatives to push conspiracy theories about just how “convenient” it was for Grewal to suddenly resign now, and how this must mean the Liberals really want him in the House because they think it’ll give them some kind of advantage; this line of baseless speculation was proffered on Power & Politics last night and I expect to hear it repeated in the coming days).

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QP: Concern trolling about the media

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While the PM was off to Calgary to sell his fiscal update, Andrew Scheer was absent yet again. Alain Rayes led off, proclaiming that the government was racking up “record” deficits (not sure that’s correct), and demanded a plan for a balanced budget. Bill Morneau insisted that they did have a plan for growth and investment, and that the level of debt was the best in the G7. Rayes tried a second time, and got the same answer. Pierre Poilievre got up next, and said that the Morneau was trying to rewrite history from his deficit promises. Morneau got up and said that Poilievre was repeating buzz-words from first-year economic textbooks, while his government was getting results with growth. Poilievre then concern trolled that the government was buying off the press, to which Morneau said that journalism was vital democracy and they were trying to help the sector in a manner that was independent. Poilievre stated that the government thinks that journalists should shower then with praise, to which Morneau replied that it was insulting to think that journalists could be bought off. Guy Caron was up next for the NDP, decrying the tablet of back to work legislation for Canada Post, to which Morneau said that they tried to get a deal but the economy was starting to suffer. Caron railed that this was a gift not only to Canada Post but also EBay and Amazon, and Morneau responded with some pabulum about supporting small businesses. Karine Trudel and Irene Mathyssen further denounced the move on back-to-work legalisation, to which Patty Hajdu listed the ways they tried to get to a deal, and that the legislation may still give room for bargaining while getting the workers back to work.

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Roundup: Deficits vs spending choices

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It was the autumn fiscal update yesterday, and it should be no surprise that the deficits are going to continue for foreseeable future. It was also notable for the measures that were implemented to compete with the US corporate tax cuts without making similar cuts in Canada, and these were measures that were designed to keep businesses investing in growth rather than simply offering share buybacks or dividends, as we’ve seen in the US. These targeted measures included immediate write-offs of new machinery and equipment, certain clean-energy equipment, and writing off some assets more quickly than before, with the calculated marginal effective tax rate of these measures apparently besting the US’ rates. So there’s that. There were also some tax credits for digital subscriptions in media, and a $600 million fund to offset the cost of hiring staff as part of that. There were also measures around removing internal trade barriers (yet again) and improving supports for businesses looking to export. On top of that, it also noted that the Trans Mountain Pipeline has earned the government $70 million since it bought the pipeline, and is on track to earn it some $200 million per year.

The deficit issue is one that we’ll continue to hear about, and it’s probably more complex than just a “deficits bad” kind of debate to have. On the one hand, the Liberals took government at a time when the books were $70 billion worse off than initially advertised (not to mention the Conservative “surplus” booked a bunch of false savings) so the 2015 promises met a different reality. On the other hand, they are spending any revenue growth rather than paying down the deficit faster, insisting (not incorrectly) that a declining debt-to-GDP figure is a more important measure, and we should remember that the deficits are really quite modest in comparison to the size of our economy. But they are making spending choices, and we should judge them on that. Here’s Kevin Milligan with some more context and analysis:

https://twitter.com/kevinmilligan/status/1065412694709174274

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John Geddes offers his summary of the update, while Andrew Coyne pans the government’s propensity to spend any new revenues it gets rather, meaning that their deficits continue to be by choice rather than necessity. Kevin Carmichael says that in spite of the deficit problems, the most audacious part of the update was the plan to tackle the overhaul of federal regulation. Susan Delacourt notes the difference in tone between the federal fiscal update and that in Ontario last week.

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QP: Praising your own record

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While the PM was present once again for QP, the finance minister was over in the lock-up for the fiscal update, and Andrew Scheer was…elsewhere. Again. Lisa Raitt led off, and true to form, wanted to know when the budget would be balanced. Justin Trudeau stated that no government in history added more to the debt than Stephen Harper, and praised his own record on growth and employment. Raitt tried again, and Trudeau lambasted the Conservative record on deficits and noted the decrease in the debt-to-GDP ratio. Raitt accused Trudeau of being arrogant for breaking promises, and Trudeau listed off the Conservative record of cuts and low growth. Alain Rayes took over to ask again in French, and this time Trudeau picked up a sheet to talk about how many children in Rayes’ riding were being helped by the Canada Child Benefit. Rayes tried one last time, and Trudeau lauded his party’s record of economic growth. Guy Caron was up next, and he railed about the possibility that the government would legislate an end to the Canada Post labour dispute. Trudeau took up a script to read that they believe in collective bargaining, but that legislation was not a step they took lightly, but they were prepare to act. Caron switched to English to ask the same thing, and Trudeau read the French version of his script. Karine Trudel said the reported mail backlogs were exaggerated and that Canada Post was creating an artificial crisis, to which Trudeau remarked, without script, that they were working in partnership with unions, but they were ready to act if they couldn’t come to an agreement. Irene Mathyssen tried one last time in English, and Trudeau insisted that they transformed the relationship between the government and organised labour.

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Roundup: Saudi oil and AG reports

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While the issue of Saudi Arabia continues to make headlines, Chrystia Freeland insisted that she doesn’t consider the case closed and more sanctions are being contemplated. She also said in QP yesterday that no future export permits will be granted to the kingdom (in reference to the LAVs we’ve been selling to them).

Of course, when I tweeted this, my reply column filled up with a bunch of indignant people who demanded to know when we would stop buying Saudi oil and use Alberta oil in Eastern Canada instead. Let me assure you that it’s never going to happen. If we don’t buy Saudi oil, it won’t impact their bottom line in the slightest. The amount we import from them is a rounding error on their books. Add to that, Energy East was never about domestic supply – it was about export via the long route. If by some miracle, a future Andrew Scheer government not only built said pipeline and they demanded that Eastern Canada start using Alberta oil, he would essentially be demanding that Alberta take a $10/barrel discount on that oil, because economics. I seem to recall a former prime minister who remains demonised in Alberta to this day because he wanted to ensure domestic supply, which would mean Alberta got a lower price for their barrels. Why would Scheer want to repeat that very same policy, but wrapped in an “ethical oil” cloak?

Auditor General’s report

Yesterday was the fall report of the Auditor General, and there were reports on:

  • The fighter jet procurement programme got a spanking, and particular attention was paid to the retention problems around pilots and mechanics.
  • Security at many of our embassies is falling behind; the government blames the Harper era for lack of investment.
  • The military isn’t stamping out harassment as quickly as it should because there is no coordination in its programmes, resulting in a number of gaps.
  • There is a lack of both a strategy and budget for rural Internet connectivity.
  • CRA gives people inconsistent treatment, and where you live can determine how friendly your local regional tax office is.
  • Inmates eligible for parole are being kept in prison for longer than necessary because of a lack of halfway houses and parole officers.
  • The lack of coordination between departments means the government may not even know which historic buildings they own.

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QP: Ignoring the Auditor General

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While the prime minister was present today, no doubt still jet-lagged from his international summits, Andrew Scheer was off in Vancouver to make a policy announcement for the election that is still nearly a year way. Lisa Raitt led off, demanding to know the the date the budget will be balanced. Justin Trudeau picked up a script to read about how great their policies including the Canada Child Benefit was, while unemployment was at its lowest rate in 40 years. Raitt said that Canadians’ choice was to keep deficits to $10 billion for year, and this time Trudeau eschewed a script to decry the last years of the Harper government, which nickel-and-dimed veterans and made cuts while his government invested in Canadians. Raitt listed tax credits that were cancelled, and Trudeau noted that those non-refundable tax credits weren’t available to low-income Canadians whereas the CCB was better off for those Canadians. Alain Rayes took over, asked the same again, and Trudeau reiterated this points about low unemployment and enhanced growth in French. Rayes reiterated the demand for a date, and Trudeau reminded him how much debt Harper left as a legacy. Guy Caron was up next for the NDP, raising the Auditor General’s report on CRA not going after rich corporations. Trudeau took up a script to praise the report and said that CRA would examine their internal processes to ensure fairness and uniformity. Caron asked again in English, and Trudeau read a list of investments made in the CRA to ensure more off-shore audits were completed. Alexandre Boulerice raised a report that said Canada’s climate policies would rise global temperatures (somewhat out of context), and Trudeau read a script to say that things were not fine and listed actions that the government was taking. Boulerice switched to French to demand more action, and Trudeau, sans script, insisted that they were taking action to fight climate change.

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Roundup: Not an election issue to fight over

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The leader of the Independent Senators Group seems to have inserted himself into the political discussion by demanding to know where parties stand on the issue of Senate appointments in advance of the next election. Senator Woo’s concerns seem to be that he doesn’t want people to “unwittingly” vote for a party that doesn’t conform to their views on the Senate. I’m going to go ahead and say that this was probably a mistake because it’s very easy to construe that he’s looking to shill for the Liberals since they are the only ones to are half-arsing the issue of Senate modernization, at least in this particular bastardized vision of a completely “independent” Chamber that is more likely to be problematic than anything.

In case you were wondering, the Conservatives say they don’t have a firm position yet, but their democratic institutions critic says she prefers the Harper system of appointing candidates voted on in “consultative elections” – you know, the ones that the Supreme Court of Canada said were unconstitutional because they were attempting to do through the backdoor what they couldn’t to through the front door. Oh, and they support a partisan Senate because they have a “very strong Senate group.” And the NDP, well, they’re still insisting that they want to abolish the Senate, never mind that they will never, ever, get the unanimous support of the provinces to do so. That leaves Senator Woo holding the bag for the Liberals by default, which isn’t a good look if he wants to keep insisting that he’s independent from the Liberals.

And those of us who think that maybe the Senate is better off with Liberals, Conservatives and a group of crossbenchers in roughly equal numbers? Who are we supposed to vote for? I suspect we’re SOL, unless the Liberals decide to change their tune after their “experiment” in a totally independent Senate starts to blow up in their faces and they can’t get bills passed (in part because their Government Leader – err “representative” – doesn’t want to do his job), but yeah. I’m not sure this is an election issue to fight over because nobody knows what they’re doing and we’re going to find ourselves cleaning up the mess made in this institution for a generation to come.

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QP: Lies versus pabulum, part eleventy-seven

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While Justin Trudeau was not present today, just off of a plane from France, Singapore and Papua New Guinea. That said, Andrew Scheer was not present today either, for whatever reason. Alain Rayes led off, worried that the budget would not balance in 2019. Bill Morneau responded with a question of his own — where are we now? He went on to extol the low unemployment rates and the investments to grow the economy. Rayes repeated the question, and Morneau responded that the Conservatives only wanted to make cuts while the Liberal approach was working for growth. Rayes concerned trolled that the budget was “collapsing” under the weight of deficits, but Morneau retorted with the Conservative record of debts and low growth, while they have turned the growth rate around. Candice Bergen took over to ask again in English, railing that the Liberals were irresponsible, to which Morneau repeated his pabulum points in English about low unemployment and high growth. Bergen tried one last time, and Morneau noted the reduction in small business taxes and the lowest level of debt-to-GDP in the G7. Guy Caron was up next for the NDP, and he worried about the pressure to cut corporate taxes to follow the US example. Morneau said that it was necessary to strike a balance to ensure tax fairness and competitiveness, and that was the approach they were taking. Caron worried about corporate “dead money,” and Morneau reiterated his points about striking the right balance. Peter Julian worried about record levels of personal debt and demanded that they end “corporate giveaways,” to which Morneau assured him that they were investing in Canadians by means like the Canada Child Benefit. Julian demanded investments in pharmacare, to which Ginette Petitpas Taylor recited the implementation on the consultations that would produce a report in the spring.

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Roundup: Fiscal update spin incoming

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This week is the federal government’s autumn fiscal update, and we’ve already seen a pre-emptive push by the Conservatives to try and set a narrative about the government’s deficit. Andrew Scheer took time out yesterday to hold a press conference to say that he plans to force a vote that would demand that the government set a date for a balanced budget. And yes, the shitposts over social media have already begun.

So, a few things to keep in mind this week about the narratives that will be spun:

  • The Conservatives will insist that they left the Liberals with a surplus and a “strong economy.” That’s not entirely true – the “surplus” was on paper and it included a lot of “savings” that the Conservatives falsely booked that never came to pass (e.g. Shared Services Canada, Phoenix). The Liberals will also point to stagnant growth rates.
  • There was a $70 billion hole between the fiscal situation that the Liberals found themselves in compared to the 2015 budget the Conservatives ran the election on. This would have been there regardless of who won the election. The Liberals had a choice to make – honour their spending promises, or honour their promise to balance the budget. They chose the former, and their spending has been largely in line with what was promised.
  • There is no debt crisis looming. The debt-to-GDP ratio is declining, and is the best in the Western world. Government debt is not like credit card debt, so equating the two in shitposts like Scheer does only serves to sow confusion and is a dishonest attempt to look like the government is “bankrupt.” Also remember that much of the deficit spending under this government has been at a time when interest rates were at historic lows, which is not credit card interest rates.

https://twitter.com/kevinmilligan/status/1064271285511811072

You can also expect a bunch of calls this week to cut corporate taxes like they did in the US, citing competitiveness, but again, there are things to remember about those US tax cuts – namely that their deficit is currently around $1 trillion, that those cuts are the economic equivalent of a sugar rush for which there are few long-term gains being made, and most of those cuts resulted in larger corporate dividends and share buy-backs rather than re-investment in companies or workforces. There’s a reason why Bill Morneau hasn’t jumped on this, and we’ll see what his response will be.

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Roundup: Endorsing the Brexitshambles

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In case you haven’t been paying attention, Britain is currently in a state of utter omnishambles as they try to deal with Brexit. A potential deal that was reached resulted in Cabinet resignations, and some very real threats not only to Theresa May remaining as PM, but possibly toppling the government as a whole. It’s lunacy over there right now. Back here in Canada, Andrew Scheer has decided that this was the right time to reiterate his support for Brexit. Because “sovereignty.”

While Scheer can bang on about how much control the UK gave up to the EU, and repeating falsehoods like the canard about the EU having regulations around the curvature of bananas, he both ignores that the EU has created a peace that has been unknown in Europe for centuries, and the fact that much of the Brexit campaign was fuelled by straight-up xenophobia. It’s this latter aspect that is particularly relevant because it’s part of a pattern we’re seeing with Conservatives, as John Geddes pointed out a couple of months ago – that they have this inability to orient themselves in a plausible way with the current nationalist populist trends in conservatism globally. Add to that, there is this naïve notion that they can somehow play with just enough extremism without it going into outright xenophobia or racism (and we’re especially seeing this playout with Maxime Bernier who blows the xenophobia tuba and then acts bewildered that white nationalists start showing up in his new party). But you can’t play with “just enough” extremism, because you can’t actually contain it. And when you wink about things enough times, you can’t act shocked and surprised when your adherents spell out what you were saying – like that post from a riding association Facebook account that posted Harjit Sajjan’s photo with the tagline “this is what happens when you have a Cabinet based on affirmative action.” They’ve only stated repeatedly that ministers in the Liberal cabinet are only there to fill quotas (whereas everyone in the Conservative Cabinet was there “on merit,”) but the moment someone puts Sajjan’s face next to that, well no, that’s totally not what they meant at all. Sure, Jan. And that’s why you can’t actually claim that Brexit is all about “sovereignty,” because it absolutely wasn’t. You can’t divorce the inflated sovereignty concern trolling from the xenophobia – it’s the same mentality as trying to assert that you can use “just enough” extremism for your political ends, but not go all the way.

Meanwhile, Andrew Coyne remains boggled by Scheer’s continued endorsement of Brexit, and wonders if he’s trying to appropriate some of its populist nationalism (the aforementioned “just enough” extremism).

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