About Dale

Journalist in the Canadian Parliamentary Press Gallery

Roundup: From the Bank to Finance

Tongues were set wagging late Sunday night as word came down that the government was planning to appoint Michael Sabia, currently the head of the Canada Infrastructure Bank, to be the new Deputy Minister of Finance. There had been a bit of concern over the last week when it was reported that Freeland was interviewing five candidates to replace her deputy, who had announced his resignation the day after the fiscal update, given that it’s unusual for this to happen in our system. But deputy ministers are Governor-in-Council appointees, so while it’s unusual for ministers to choose their own deputies rather than the Clerk of the Privy Council recommending one to the prime minister, capacity for such decisions do exist. One does wonder, however, what signal this sends to the Infrastructure Bank, given that they just put Sabia in charge a couple of months ago, and now they’re moving him again.

This having been said, it was not unexpected that the outgoing deputy would not last there too much longer, because he too was of the generation in the public service for whom it is 1995 and will always be 1995 – and already the pundit class for whom this is the unifying theory are already chirping about his departure. Why this may turn out to be important is because we are going to have to start thinking out federal finances in a different way as the pandemic moves into recovery mode. Why? Because the old obsessions around debt and deficit (which is the mindset of the 1995 crowd) may lead to more damage than good, and we could see ourselves in a Japan-like situation if we’re not careful. And while yes, there are “guardrails” and planned “anchors” once we’re fully into the recovery stage, it may be time for a fresh mindset in the senior ranks – though given how much attention they put on Sabia when they brought him into the Infrastructure Bank, moving him to Finance right away seems mighty cozy, and this will no doubt launch another round of the current witch hunt going on in committees.

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Good reads:

  • One of Pfizer’s top executives says that Canada could be getting vaccines within 24 hours of Health Canada approval, possibly by the end of this week.
  • Major-General Dany Fortin says they are expecting a constant flow of vaccines into the country by January once approvals are completed.
  • A (small) rise in cases in PEI has the province moving to a “circuit-breaker” lockdown before the cases start rising – like other provinces should have done.
  • An internal review at Global Affairs found no standard process for vetting honorary consuls, and they have since developed a new code of conduct.
  • Speaker Rota reflects on his first year in the big chair, at a time of pandemic, “virtual” and hybrid sittings.
  • Susan Delacourt details how the Liberals are preparing for a possible election in the spring, even though they don’t necessarily want one.
  • Chantal Hébert evaluates Erin O’Toole’s first 100 days as leader, and finds it wanting, not only for the lies, but also the evasion on his own plans.

Odds and ends:

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Roundup: More doses, and a witch hunt

It looks like we’re going to end the week on yet more talk about COVID vaccines, because that’s all we can talk about anymore. The news yesterday was that Canada has upped its orders for the Moderna vaccine (which we are near the front of the line for), which is also significant because these ones, while also a two-dose vaccine, don’t need the same ultra-cold chain that the Pfizer one does, so that will make distribution much easier. As well, the federal government offered some further refinement of the priority advice, to say that residents and staff of long-term care facilities should get the first doses, as well as Canadians over the age of 80, followed by healthcare and personal support workers in contact with patients, followed by Indigenous communities (who are especially susceptible to the virus given the living conditions in many of those communities).

On a similar vein, here is a further exploration of the delays to the National Research Council’s planned vaccine production facility, including the fact that even when this is completed, it’s not built to manufacture mRNA vaccines so again, it won’t help with the Pfizer or Moderna vaccines – but perhaps it can with the AstraZeneca vaccine if it gets approval.

Meanwhile, the Commons ethics committee hauled former MP Frank Baylis before them to answer questions about his company being subcontracted to help build ventilators, and lo, he had perfectly reasonable explanations for all of the things the opposition parties deemed suspicious, and the actual contractor for the ventilators is a Conservative donor, and didn’t even know that Baylis was a former MP when he contacted the company because they had the kind of clean room he needed to assemble the ventilators. But this whole affair has been a ridiculous witch hunt from the start, full of lies and disinformation because they could make the facts line up in a way that looked damning even though they aren’t. But this is the game we’re playing, where truth is the first casualty to cheap point-scoring.

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Roundup: Cutting the expected doses in half

It was another big day for vaccine news, starting with a technical briefing by federal public health officials that gave a bit more clarity on what is happening. Health Canada says we could see approval of the Pfizer vaccine within seven to ten days, while we also got some more information about the roll-out plan, including how the Pfizer and Moderna roll-outs are different, that they have concluded tabletop exercises and found gaps to plug, and that a dry run is scheduled for December 14th, after which they say they will be ready to start receiving vaccines, depending of course on approvals and availability from the manufacturer. But then came the bombshell – raw materials shortages are going to mean that Pfizer has had to cut their expected 2020 production by nearly half, which will mean fewer early vaccine doses to get to healthcare workers and the most vulnerable.

And then there are the provinces. In Quebec, François Legault had to say that his attempted “moral contract” for Christmas was off the table because cases won’t go down, but he also insisted that he wouldn’t have meaningfully done anything different in handling the pandemic, which is bananas. The continued climb of cases in Ontario means that we are likely facing more lockdowns before too long. In Manitoba, Brian Pallister gave a tearful speech about needing to cancel Christmas – but then also stated that it was “unfair” that early doses were being reserved for First Nations (who are especially vulnerable), which is mind-boggling. As for Alberta, where new cases keep breaking records, we got more details on the planned field hospitals (which are not really going just “contingency planning”), and in spite of yesterday’s insistence to the contrary, they are looking at possible military assistance to staff these field hospitals.

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QP: Misleading on the military’s role

While the prime minister and his deputy were around the building, neither were present for QP. In their absence, Erin O’Toole led off, script on his mini-lectern, and citing leaked military documents demanded to know how many people would be vaccinated by the end of March. Patty Hajdu shrugged off the question and praised the vaccine portfolio. O’Toole then made the lame joke that if the American plan was “warp speed,” the best Canada could do was impulse power, but Hajdu reiterated her response. O’Toole worried that the US or France would get back to normal six months before Canada does, to which Hajdu talked about the importance of having different vaccine options because some candidates could be more suited to certain populations over others. O’Toole changed to French to demand the plan, for which Hajdu pointed to what was revealed at this mornings tech briefing. O’Toole then pivoted to the myth of the “decline of French,” and demanded that Quebec’s Bill 101 be extended to federal workplaces, to which Mélanie Joly listed actions her government has taken. Alain Therrien led for the Bloc, and he too demanded the extension of Bill 101, and Joly reiterated that they believe in Bill 101 for its provincial goals and that they are in discussion with the Quebec government. Therrien was unimpressed and listed all of the people making this demand, and Joly insisted that they have demonstrated that they were allies of Francophones. Jagmeet Singh was up next for the NDP, and in French, he spouted some utter nonsense about the government not procuring enough vaccines, to which Hajdu reminded him that they have more than enough doses, and that prioritisation was established nationally and that provinces would refine it further. Singh repeated his accusations in English, and got the same response.

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Roundup: Admission that deadlines will be missed

The federal government announced yesterday that they weren’t going to be able to meet their deadline for fixing all of the boil-water advisories on First Nations reserves, in part because of delays caused by the pandemic. And while they should get some points for at least owning this rather than sending it down the memory hole like their predecessors did, this is yet one more file where they need to do a much better job of communicating what is going on with the file. And Marc Miller is better than many of his fellow ministers, but there needs to be a hell of a lot more candour that about these boil-water advisories, such as each case is unique so you can’t fit the same solution to all of them; it is a huge challenge to build major infrastructure in remote and fly-in communities, and that takes a lot more time to complete a project as a result; that in some communities, the bigger problem is capacity to maintain systems – and in some communities, the problem is that as soon as they train someone to maintain the system, they get a better offer and get poached. Miller did note that in some cases, the state of decay in some of these systems was not adequately appreciated, and that climate change and shorter winters make getting materials up to some communities on ice roads more difficult. The other aspect of note is that there is yet more funding attached to finish the job, as well as better ongoing maintenance and prevention of future advisories, which is all good, but again, they need to communicate what the challenges are, lest we get another round of people who live in cities not being able to appreciate that you can’t throw money at a problem like this and hope it gets fixed overnight.

This being said, there is already talk about broken promises, and the dangers of setting deadlines, and so on. I would note that there should be nothing wrong with setting ambitious targets, and there should also be nothing wrong with adjusting them, but that should be accompanied by candour that lays out why plans need to be adjusted. I think this government underestimates how much goodwill can be gained by frank and honest discussions of projects rather than just sticking to the happy-clappy talking points and other pabulum that they spout, but what do I know?

In pandemic news, the Alberta government has requested field hospitals from the federal government and the Red Cross, but they claim that this is just about contingency planning, and that they haven’t requested personnel for them. Given that infections are out of control in the province, and its hospitals are already at the point of being overwhelmed, you can be pretty sure that this line about it being for a “contingency” is bogus, that they know they need to do this because they refuse to lockdown, and this is just softening the ground.

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QP: Going hard on the CanSino conspiracy theory

It being Wednesday, the prime minister was present and ready to respond to all questions put his way. Erin O’Toole led off, script on his mini-lectern, and he immediately started in on his CanSino conspiracy theory, apparently not understanding how vaccine regulation works, to which Justin Trudeau insisted that they signed on with Moderna and Pfizer before the CanSino deal fell apart, and why they put their eggs in as many baskets as possible. O’Toole said that CSIS was trying to warn the government about CanSino for years, but Trudeau again refuted this. O’Toole quoted an unnamed security analyst to say that China played Canada on the CanSino deal, and Trudeau stated that O’Toole was making stuff up, and that when the CanSino deal fell apart, Canada’s vaccine portfolio went from eight candidates to seven. O’Toole switched to French to claim that other countries will have all of their populations vaccinated by June, but Canada wouldn’t by September, to which Trudeau reminded him that Health Canada was studying four candidates and that there are guarantees for doses for Canadians. O’Toole demanded a plan to give the country “hope,” to which Trudeau said that their plan was to protect Canadians and help the economy weather the storm so that we will emerge from the pandemic in a strong state. Yves-François Blanchet got up next for the Bloc, and he demanded increased health transfers to the provinces, to which Trudeau reminded him that they have been working with the provinces since the pandemic began and have already transferred billions of dollars to them. Blanchet tried again, and got a much more emphatic version of the same answer. Jagmeet Singh was up next for the NDP, and in French, he lamented the lack of a vaccine plan, for which Trudeau reminded him that they have been working with the provinces since the spring to prepare for this. Singh changed to English to decry that the government wouldn’t be able to complete their pledge to end all boil water advisories on time, and read a statement from a First Nations child. Trudeau read a script that they have been working with those communities, and it takes time to overcome decades of neglect.

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Roundup: Moving on child care (again)

The fiscal update and its feminist lens, as well was talk of the “she-cession” has given some people to look a bit more closely at the national early learning and child care proposal that the government is putting forward. And immediately you get those on the left chirping that the Liberals have been promising this for decades but never delivering (which is false – Paul Martin did deliver it, and had agreements signed with every province and money flowing, which Stephen Harper immediately killed thanks to the NDP helping him to bring down Martin’s government), and the Conservatives have resumed their 2004-2006 mantra that taxpayer dollars to child care spaces somehow robs stay-at-home mothers of their choice (also a verifiably bogus argument). Oh, and the Conservatives are also talking about refundable tax credits, which didn’t build a single child care space the last time they tried tax credits, nor will it build any should they form government again. Why? Because there is a supply-side problem, which is going to require federal and provincial investment. The first step of this is in the fiscal update – the immediate creation of a federal secretariat, which will do the work of developing policies for a national universal programme, as well as assisting with the federal-provincial negotiations, because child care is provincial jurisdiction, and the federal government can’t create these spaces without the provinces.

With this in mind, here is Lindsay Tedds and Jennifer Robson about the what is needed to make this a reality.

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QP: Calling out O’Toole’s vaccine misinformation

The Speaker accidentally called out “quarrel questions” instead of oral questions, and that set the stage for the day. Erin O’Toole led off, script in hand, and tried to poke holes in differing statements that different ministers have made on vaccines. Justin Trudeau, appearing by video from home, reminded him that nothing has been approved to date, and that Canada has the most comprehensive portfolio of vaccines. O’Toole then tried to proffer his theory that the government was relying on the CanSino vaccine candidate, and Trudeau told him that he shouldn’t make stuff up. O’Toole pressed on the CanSino theory, and Trudeau repeated that this was not true. O’Toole switched to French to demand a vaccine plan, to which Trudeau stated that they were working with the provinces and experts. O’Toole then raised the CNN reports on China hiding early COVID data before returning to his CanSino theory, and Trudeau repeated that nobody has an approved vaccine to date. Yves-François Blanchet was up next for the Bloc, and he demanded increased health transfers for provinces, to which Trudeau reminded that they have been working with provinces throughout the pandemic and have transferred billions of dollars to them because of it, but he would be speaking with premiers and not the leaders of other parties. Blanchet raised the Quebec government’s objections to new federal programmes, for which Trudeau gave the well-worn line that there is no jurisdiction for the dignity and security of seniors. Jagmeet Singh then led off for the NDP, and he demanded to know which seniors would get the vaccine first, for which Trudeau said they were working with experts to determine who is prioritised on the rollout, with healthcare workers and the most vulnerable. Singh then raised a Manitoba First Nation dealing with a COVID outbreak, and that the Chief has asked for military assistance, to which Trudeau reminded him that they have been working with Indigenous leadership, and that they would continue to do so — but did not really answer the question.

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Roundup: The greater danger of spending too little

Chrystia Freeland unveiled her first economic update yesterday, and much of it was predictable, from the size of the deficit (which every single news source focused on immediately, as though it were still 1995), to the lack of a fiscal anchor while we remain in the pandemic, to the promises for how to build back in a more inclusive and greener manner. One of Freeland’s major points was that there is a greater danger in not spending enough than there is in spending too much – particularly at a time of record low interest rates – and we saw this borne out in the last recession, where the Harper government withdrew stimulus too soon, and the Bank of Canada was forced to keep rates lower for longer and we had a consumer debt crisis as a result. There were “down payments” for the work of getting to national childcare, long-term care and the meeting climate targets, but those are also all areas where they need provincial buy-in, so that’s going to get interesting very fast, especially given the number of hostile premiers that are currently in office. There were also new programmes rolled out for tourism and live events, and plans to extend GST/HST to web giants.

Predictably, the opposition parties were unimpressed. Erin O’Toole spent his response speech lying about what has been done to date, set up a completely false revisionist history of the pandemic, and went on TV to moan that the government “overspent” on CERB – apparently not grasping that the point was to keep people at home so as not to spread the virus (ergo, the Conservative plan is apparently to force people back to work in unsafe conditions so that they can facilitate the spread of said virus). The NDP were also predictable in their demands for wealth and “excess profit” taxes, never mind that they are inchoate concepts that largely don’t work out in practice. This means that we get to go through yet another round of election speculation as people wonder if the opposition will gang up to bring the government down over the inevitable implementing legislation.

Meanwhile, Heather Scoffield remarks on the ambition in the fiscal update, and whether or not the government will have the ability to deliver on any of it. Kevin Carmichael bemoans the lack of a fiscal anchor, but does admit that Freeland is right in that there is a danger of spending too little, or withdrawing stimulus too early (like Stephen Harper did). Paul Wells is disquieted by the lack of details on big items in the update, as well as this government’s propensity to farm out tough decisions to people not in government – which is a problem.

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QP: Deliberately mischaracterizing the vaccine plans

While both the prime minister and finance minister were in town and preparing for the fiscal update, neither were present for QP. Gérard Deltell led off, noting that the fiscal update was coming, but that no economic plan would be worth anything without a vaccine plan. Patty Hajdu responded that they have the best vaccine portfolio and that a fourth candidate has begun its regulatory approval process. Deltell then insisted that the government was too invested in the CanSino candidate and was late in other vaccine candidates, to which Navdeep Bains insisted that they supported Canadian vaccine candidates as part of their plan. Deltell then mischaracterised international vaccine plans to insist that Canada was behind, which Hajdu disputed. Peter Kent took over in English and worried about the plan for economic recovery, to which Sean Fraser reminded him that the federal government made the choice to incur the costs of courses rather than putting it on the backs of people. Kent then worried about the deficit — because apparently it’s still 1995 — and Fraser directed him to the statements by the head of the IMF around what Canada has done. Alain Therrien led for the Bloc and he demanded the vaccine plan, to which Hajdu repeated her lines about the portfolio and the fourth candidate seeking approval. On the follow-up, Hajdu read a statement in French about the doses acquired and working with partners. Jagmeet Singh was up next for the NDP, and in French, he regaled the House with the tale of a woman in Gatineau who works three jobs and needs a vaccine, for which Hajdu repeated her usual lines about the portfolio and the regulatory process. Singh switched to English to make the same demand for the plan, and Hajdu reminded him that provinces have the expertise on this.

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