Author Archives: Dale

About Dale

Journalist in the Canadian Parliamentary Press Gallery

Roundup: At long last, the mandate letters

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On what turned out to be the final sitting day of 2021 for the House of Commons, the prime minister finally released the mandate letters for his ministers, nearly three months after the election, and two after they were sworn in to their new jobs. I’m not sure how well I can articulate the utter absurdity of the situation, because there is really no excuse why it took this long (let along why it took him as long as it did to swear in his Cabinet or to summon Parliament). The fact that they were released after the House agreed to rise at the end of the sitting day means that there can be no interrogation of these letters by the opposition until January 31st, which is way too long.

As for the letters themselves, there is a theme among them about building a more inclusive and fair country, and for tangible results to be better communicated to Canadians (you think?). Some of the highlights include:

  • Ordering several ministers to take a harder line on trade tensions with the US
  • Resurrecting legislation on CanCon requirements for the internet and having web giants pay news outlets, as well as modernising the CBC
  • Renewed action to fighting systemic racism, along with a number of initiatives directed toward the Black community
  • Implementing UNDRIP in all decisions
  • Developing a new cyber-security strategy

No doubt more attention will be paid to these letters over the coming days, and we’ll see how much misunderstanding comes from them (recall the line about not creating new permanent spending programmes from Chrystia Freeland’s previous letter which people took to mean all rather than in the context of COVID supports). It also looks like we’re getting talking heads grousing about inclusivity as though it were somehow a distraction from economic growth when inclusive growth is where the country needs to be headed to head off economic challenges plaguing us since before the pandemic.

https://twitter.com/kevinmilligan/status/1471544703212404736

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QP: Deception about deflation

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For the final Question Period of 2021—which was still undetermined as things got underway, as the House Leaders were engaged in a game of chicken—neither the prime minister nor his deputy were present, but the latter would appear virtually. Erin O’Toole led off, script in front of him, and he immediately started off with a lie about deflation, which did happen, and he was presuming it to be a good thing because it would lower prices, when in fact it would have led to a spiral that turned into a depression as businesses couldn’t service their debts. Chrystia Freeland, by video, called this out as misinformation, and noted that Stephen Poloz cited that the government’s actions averted a second Great Depression. O’Toole railed about Freeland’s alleged misinformation during the election campaign and compared her to Donald Trump, and Freeland called O’Toole the leader of flip-flops, and noted that in the election the Conservatives promised even more spending while they were currently railing against it, and that a consistent position might be nice. O’Toole repeated his first question in French, and Freeland repeated the Poloz comments in French. John Barlow got up and railed about the export ban on PEI potatoes and wondered why the agriculture minister was not currently in Washington resolving the situation. Freeland assured him the federal government was working to resolve if and noted she was next to the prime minister when he raised it with Biden, while Conservatives advocate capitulation. Barlow insisted that this has basically destroyed PEI, and Freeland dismissed this as scaremongering, and reassured farmers they were working on it like they did with previous disputes they won on.

Alain Therrien led for the Bloc, and blamed the Quebec teacher who was reassigned for wearing a hijab, railing that she knowingly broke the law and saying otherwise was Quebec bashing. Freeland calmly recited that they stand with Quebeckers who stand up for individual rights and freedoms. Therrien railed that mayors are funding court challenges, accusing them of not understanding secularism or democracy, and Freeland gave some fairly disarming reassurances that the federal government works well with Quebec and the Bloc shouldn’t pick fights.

Peter Julian rose for the Bloc, and in French, he worried that omicron could lead to lockdowns with no supports, to which Freeland made a pitch for MPs to pass Bill C-2 to provide necessary supports. Julian shouted the same question again in English, and Freeland repeated her response in the other official language. 

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Roundup: The inflation stats and what’s behind them

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Rounding out the big economic week was the Consumer Price Index report yesterday (made all the more difficult because Statistics Canada’s website is largely offline as they seal the cyber-vulnerability identified on Friday). The top line figure is that inflation remains at 4.7 percent for a second month in a row, meaning that it hasn’t accelerated into the much higher territory that places like the US are sitting at, and several of the price indicators were flat, which could mean that some prices are starting to stabilise. But it’s still early days, though when you drill down into the numbers, there are really three things that are driving inflation: gasoline, housing costs, and meat.

https://twitter.com/MikePMoffatt/status/1471125492568838152

To be clear, as noted by StatsCan:

  • Oil production continues to remain below pre-pandemic levels though global demand has increased
  • Prices for fresh or frozen beef increased 15.4% year over year in November. Poor crop yields resulting from unfavourable weather conditions have made it more expensive for farmers to feed their livestock, in turn raising prices for consumers

https://twitter.com/stephen_tapp/status/1471120984702922757

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So what is the takeaway here? That these are issues that the federal government has very little control over, and that the Bank of Canada raising interest rates won’t tackle either. And yet, we keep hearing demands for “concrete action” from the federal government on this, as though they could wave a want to fix it. Or if not a magic wand, then wage and price controls? Do we need to bring “Zap, you’re frozen!” out of retirement?

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QP: Competing scripted inflation talking points

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It was akin to Friday attendance in Chamber for everyone but the Conservatives, who were largely present, but the PM was in attendance, which is what counts on a Wednesday. Erin O’Toole led off, script before him, and he decried the cost of living crisis and accused the prime minister of fixing his budget by fuelling inflation. Justin Trudeau read a prepared script of good news talking points from the fiscal update. O’Toole tried and failed to land an attack about pipelines and supply chains, and this time, Trudeau extemporaneously recited the promise to have peoples’ backs. O’Toole raised the report on food inflation, and quipped about the prime minister not thinking about monetary policy, and Trudeau reiterated his usual points about the fact that they were helping Canadians and why investing up-front in ensuring people made it through the crisis was the smart economic thing to do. O’Toole switched to French to decry food inflation, and demanded the government fix it—not specifying how. (Wage and price controls, anyone?) Trudeau noted the health crisis and keeping people safe, which was how to help the economy recover. O’Toole worried the dream of home ownership has vanished, blaming Trudeau for it, and Trudeau praised programmes they have rolled out to help fight the housing crisis.

Yves-François Blanchet led for the Bloc, and he complained about Bob Rae’s comments about Bill 21 and demanded Rae be recalled. Trudeau said that he profoundly disagree with Bill 21, and they would be on the side of Quebeckers who were upset that the teacher lost her job for wearing a hijab. Blanchet railed that Trudeau was condoning “Quebec bashing,” and Trudeau said that Quebeckers like him stand up for individual rights including freedom conscience.

Jagmeet Singh rose for the NDP, and he demanded the federal government give more booster shots, rapid tests, and hiring more nurses—never mind that is all provincial jurisdiction. Trudeau recited concerns about omicron and warned Canadians should reconsider non-essential travel and getting boosters as quickly as possible. Singh repeated the demand in French, and Trudeau said they were already doing that having procured enough shots for all Canadians.

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Roundup: A rosier fiscal update

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There was some drama around the delivery of yesterday afternoon’s fiscal update, as two members of Chrystia Freeland’s staff tested positive for COVID, and while she had not been around them recently, she decided that the prudent course of action was to stay isolated and deliver it virtually rather than in the Chamber. She also made it clear that this was not a budget or a mini-budget, but rather a look at where the nation’s books are, and it was a rosier picture than was anticipated in the spring’s budget.

There are no significant new spending promises in this document, aside from more money being set aside for COVID supports as the omicron variant bears down on us (which includes buying millions more rapid tests for the provinces to deliver—not that most have been good at it so far), as well as the $40 billion being set aside for compensation for Indigenous children in care and to fix the system going forward, and some money to help BC recover from their recent spate of natural disasters, and to reimburse seniors faced with GIS clawbacks. There are also some dollars being put toward reducing immigration backlogs, and helping ports deal with supply-chain snarls. But otherwise, it held the line, surprising some observers who like to chide this government’s profligacy. There was a gender section that laid out in stark terms how the pandemic affected women disproportionately.

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https://twitter.com/LindsayTedds/status/1470873990373601286

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As for opposition reaction, the Conservatives complain there’s nothing in there about inflation…which is the Bank of Canada’s job, and the only thing the federal government could do are wage and price controls. The NDP say there isn’t enough about the clawbacks in there, or not enough other support measures, but with the Bloc pretty much guaranteed to support it, they can afford to look tough in spite of being paper tigers.

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QP: Ignoring the threats of a trade war

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In advance of the fall fiscal update, neither the PM nor the finance minister were absent, but so were all of the other leaders. Michell Rempel Garner led off for the Conservatives, and grumbled that the Americans want Saudi and Iranian oil over Canadian imports, for which Steven Guilbeault reminded her that the world of energy is changing, and that the future was in renewables, and that the record investments were happening in Alberta. Garner needled that she wanted Mary Ng to answer instead of a man to answer for her, for which Ng stood up and took exception to how the question was framed, before asserting that she always stands up for Canadian workers. Rempel Garner accused the government of being happy to offshore jobs to climate destroying countries, and this time François-Philippe Champagne stood up to praise their leadership in clean energy sectors. Gérard Deltell took over in French, and he worried about the American EV tax credit and stated that the government was doing nothing about it, to which Ng reminded him of their threat of retaliatory tariffs that they delivered to the US. Deltell again accused the government of doing nothing, and Ng listed how they have engaged with the US administration.

Alain Therrien rose for the Bloc, and complained that Trudeau was not currently interfering in the fight against Bill 21, and then demanded no interference in court challenges, for which David Lametti recited that nobody should lose their job for how they dress or their religion, and noted the were protests in Chelsea, Quebec, about the removal of a teacher. Therrien then railed that UN Ambassador Bob Rae said that Bill 21 defies the UN Declaration of Human Rights and wanted him recalled, for which Lametti simply asserted that they were monitoring the situation.

Jagmeet Singh suddenly appeared and complained about inflation and the GIS clawbacks, for which Kamal Khera read her talking points about supporting senior and working toward a solution on the clawbacks. Singh then to French to repeat the question, and this time Randy Boissonnault recited a litany of their support programmes.

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Roundup: Freeland is setting her policy own agenda—oh noes!

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The Globe and Mail had a strange hit piece out yesterday that was largely targeted at Chrystia Freeland, but it was kind of all over the place and seemed to be missing the mark on a few different tangents. It was framed around Michael Sabia, the new-ish deputy minister of finance, and the fact that he hasn’t made any headway in reining in spending or coming out with a “growth agenda,” as though we aren’t still in a global pandemic that has required extraordinary government fiscal measures in order to keep the economy from spiralling into a depression, or the fact that the last budget was a growth agenda, but it was focused on inclusive growth rather than tax cuts, which a particular generation cannot wrap their heads around (and the fact that the piece singles out the childcare plan is evidence of this fact).

What was particularly troubling about the piece was the fact that it couldn’t quite decide how it was attacking Freeland. On the one hand, it worried that she was too hands-off in the department, leaving Sabia to manage it while she dealt with big policy items (for which she was attacked in absentia during Question Period yesterday), while at the same time, it is overly concerned that Department of Finance officials aren’t driving policy, but the government is. Which, erm, is kind of how things work in our system. The civil service is supposed to provide fearless advice but also do the work of implementing the policies and directives of their political bosses. That’s the whole point of a democracy—this is not a technocracy where the bureaucrats run the show, and if these sore Finance officials have a problem with that, perhaps they either need a refresher on how this works, or they need to find themselves out of the civil service.

https://twitter.com/kevinmilligan/status/1470409184076185600

None of this is particularly surprising, mind you—there are still too many pundits and journalists who still think it’s 1995 and will always be 1995, because that is the established media narrative by which they must always obey (and this hit piece also touches on the Cult of the Insider narrative as well with all of the anonymous inside sources). And the fact that Freeland is a woman holding the job, and is focusing on things like inclusive growth and not the usual “tax cuts=jobs” agenda frankly makes it too easy for the 1995 narrative to keep being circulated. But it’s not 1995, and perhaps it’s time that We The Media stop pretending otherwise, because this kind of hit piece was frankly something that should not have seen the light of day.

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QP: A scattershot of unfocused sound and fury

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While both Justin Trudeau and Chrystia Freeland were in town and had press events earlier in the morning, neither were present for QP, but neither were any other leader. Candice Bergen led off, script on her mini-lectern, and she demanded a personal apology from Harjit Sajjan for not dealing with sexual misconduct in the Canadian Forces, and Anita Anand, fresh from giving the official apology, stated that said apology was one example of the steps they were taking to work toward a place where there was a safe workplace in the Forces. Bergen then pivoted to the planned CPP premium increase, declaring that it would kill small businesses. Randy Boissonnault shrugged that the Conservatives don’t like the CPP, and he praised it. Bergen accused the government of hating small businesses, and Boissonnault praised the strong economic recovery. Gérard Deltell took over in French to also worry about the CPP increases, and Boisonnault repeated praise for the CPP in French. Deltell specifically raised tourism and hospitality sectors, and demanded the government split Bill C-2 to immediately pass those supports, and Boissonault didn’t bite, and wanted support for the whole bill.

Alain Therrien led for the Bloc, and declared that Bill 21 was democratically passed, and declared that it doesn’t target anyone, to which David Lametti said that nobody should lose their job for wearing a hijab. Therrien demanded that the government declare it would not support court challenges, and Lametti said that there are currently court cases being fought in the province.

Peter Julian rose for the NDP, and in French, demanded an immediate solution to the clawbacks of GIS payments. Kamal Khera declared that they were working on it. Rachel Blaney took over in English to declare that seniors were homeless because of these clawbacks, and Khera read some good news talking points about supports for seniors before repeating that they were working on the clawback issue.

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Roundup: A big economic week ahead

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It’s going to be a very big week in Canadian economics: Today is the day the Bank of Canada has their mandate to target inflation between one and three percent at an average of two percent gets renewed, with some additional language around employment in there (but not a dual mandate). Then Tuesday will be the government’s fiscal update, which isn’t expected to announce too many new things because there simply isn’t time for a budget implementation bill to accompany it. And then Wednesday, Statistics Canada will release the inflation figures for November, and it there remains a possibility it could go higher still before being expected to cool down by mid-next year. Because it’s largely about supply chains, and as the former governor of the Bank of Canada keeps reminding us, it’s not about the political situation or fiscal policy. The counterfactual is that if the government didn’t spend on pandemic supports and the Bank didn’t engage in quantitative easing, we would be in a deflationary depression cycle, and that would have left us all worse off.

With this in mind, here is economist Kevin Milligan with some added context:

https://twitter.com/kevinmilligan/status/1470099272632733696

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https://twitter.com/kevinmilligan/status/1470105479288262657

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Roundup: Limited federal options on Bill 21

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So, the fight over Bill 21 in Quebec is gaining some traction now that there have been real-world consequences, and a bunch of MPs (mostly Conservatives) who previously said nothing about it—and who previously supported odious things like “barbaric cultural practices tip lines” and “Canadian values tests”—are now speaking up and recanting previous positions. Which is good, but while everyone is hoping for some kind of federal response or action on the legislation, I’m not sure there is an actual avenue. Consider this from constitutional law professor Carissima Mathen:

https://twitter.com/AaronWherry/status/1469013986142298114

This is essentially what Justin Trudeau has been saying—he’s opposed to it, but this isn’t the time for the federal government to step in. That time will be when the fight reaches the Supreme Court of Canada, because then they have a legitimate avenue to be an intervenor in the case. Until then, they can say they oppose it—and they have much more so than other parties—but they’re also not making wild symbolic actions that won’t mean anything. And while both Erin O’Toole and Jagmeet Singh say they are personally opposed (and Singh has a legitimate dog in this fight), Singh has been somewhat blank on actions a federal government could take, while O’Toole made it clear he wouldn’t interfere in any way because a) provincial jurisdiction, and b) he’s spent his entire leadership trying to suck up to François Legault and out-Bloc the Bloc, for all of the good it did him in the election. And there are demographic considerations that play into the political calculations as well:

Meanwhile, Chantal Hébert, lays out the political calculations and options for Trudeau and O’Toole when it comes to challenging Bill 21. Paul Wells adds a boatload of more context to the situation both federally and in Quebec, and gives some sharper thoughts as to why the federal government has vanishingly few levers but nevertheless has options.

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