Roundup: Alberta’s big budget hole

Alberta released a fiscal update yesterday, and it was pretty abysmal, projecting a record-breaking $24.2 billion deficit. The problem? Was that the province’s finance minister spent much of it lying to the legislature and Albertans about the state of their books going into the pandemic, not to mention not having a real plan for the recovery. But it to put some of the staggering numbers in context, the province is taking in more revenue from gambling, alcohol and cannabis than they are from oil revenues – you know, what they have based their economy on. Meanwhile, their non-existent recovery plan is bro-heavy, and they still insist that they have a spending problem on services rather than a revenue problem from having the lowest tax rate in the country and no sales tax – and you know that’s going to mean the province is looking to slash and burn services, and they’ve already started by picking fights with doctors in the middle of a global pandemic, and those doctors are already shutting down their clinics and moving away. So yeah, Alberta’s got problems.

Economists Andrew Leach and Lindsay Tedds have more, starting with this preview thread by Leach that set the stage for the speech of lies that was to come.

https://twitter.com/LindsayTedds/status/1299171987655327744

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Roundup: $2 billion unbidden

There was a lot of reaction to the announcement that prime minister Justin Trudeau was giving an additional $2 billion to the provinces to help schools restart safely – unbidden – and those reactions were interesting. Trudeau himself made a point of saying that this was as a result of listening to his backbench Liberal MPs and parents who continued to express concerns, and that it wasn’t requested by premiers, so that’s a political marker right there. It’s also a transfer that is largely without strings – it comes in two tranches, one now, one at the end of the year, and all the provinces need to do between them is to tell Ottawa how they spent the money, so again, it’s a bit of a political test for those premiers – and it’s also giving rise to speculation that this is a sign that Trudeau is in election mode.

Reaction was mixed. Doug Ford expressed gratitude (but also falsely claimed that Ontario’s restart plans were the safest in the country, which is patently absurd), but his education minister – and his opposition critic in the NDP – derided the funds as “late to the game.” Manitoba premier Brian Pallister, for example, was somewhat non-committal, and said he’d take the money, but praised his own government’s efforts. And, hilariously, Jagmeet Singh took credit for it, saying that he had called a press conference to “make an announcement” (read: demand) about more money for schools and lo and behold, the prime minister delivered before that press conference happened. Yeah, okay then.

The complicating factor in all of this is that this is an area of sole provincial jurisdiction and there should be zero expectation for federal dollars, which is why I find myself mystified by all of the people on Twitter (and the Ontario NDP education critic) bemoaning that these funds didn’t flow in June. But if you recall, in June, Trudeau and Chrystia Freeland were negotiating with the provinces for their “Safe Restart Plan,” with $14 billion on the table which included money for schools, so it’s not like it wasn’t being discussed – the provinces were recalcitrant because they didn’t want the strings attached that come with billions of dollars. Eventually, they came to an agreement and it turned into $19 billion, and this $2 billion is on top of that, so it’s not like the federal government has been completely silent. I would also suspect that there is a bit of an implicit rebuke in this new envelope of money because provinces have been dithering on their restart plans, giving confusing options to parents with no time to evaluate them, and more critically, have been unwilling to do the important work of reducing class sizes. One could easily interpret this money as Ottawa telling them – not in so many words – to get their acts together, and they’ll look fairly magnanimous while they’re at it.

https://twitter.com/StandingHannah/status/1298685195579723776

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Roundup: First attempts to define O’Toole

It was not quite ten o’clock Eastern when the Liberals fired their first salvo across Erin O’Toole’s bow. Liberal MP Pam Damoff put out a press release highlighting three of Derek Sloan’s most egregious comments – questioning Dr. Theresa Tam’s loyalties, comparing women’s bodily autonomy to slavery, and calling banning conversion therapy “child abuse” – and said that if O’Toole didn’t repudiate those claims that he was condoning them. It seems the Liberals took a cue from the Conservatives before them and are trying to define the party’s new leader before he can define himself – payback for Stéphane Dion and Michael Ignatieff (tough Justin Trudeau proved resilient to those attempts).

A short while later, O’Toole had his first press conference as leader, where he told people to ignore the Liberal spin, and reiterated parts of his victory speech where he welcomed all kinds of Canadians into the Conservative fold, before he took questions for a whole 15 minutes. To wit, when pressed about how concretely he wants the prime minister to address “Western alienation,” he blustered about support for getting resources to market, as though Trudeau controls the world price of oil. Asked about the social conservatives and Sloan’s comments, O’Toole shrugged them off as an attempt to highlight differences in the context of a leadership but said that he would “have a talk” with Sloan, but gave no indication that Sloan was on thin ice. O’Toole also called himself pro-choice – but in the same breath defended voting for a bill that would give rights to foetuses by claiming it was a “public safety” bill about sentencing, which was the weaselliest thing I have seen in ages. He also said that he supported trans rights more than Trudeau did because he was one of 18 Conservatives that voted for one of the private members’ bills and Trudeau had missed that vote – ignoring of course that said bill died and that Trudeau revived it and passed it in government. He also intimated that it was Trudeau who was trying to force an election, not him, for what that’s worth.

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Meanwhile, here’s a look at some of the raw feelings inside the Peter MacKay camp as the “co-founder” of the party has been repudiated, while O’Toole is rushing to try and unify the party behind his leadership in spite of the things that were said during the campaign.

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Roundup: The O’Toole victory post-mortems

Now that Erin O’Toole has been “decisively” declared the winner of the Conservative leadership contest, all of the analysis has churned out. While O’Toole avoided the media (he’ll have a press conference today instead) and got to work with meetings to solidify his transition to leader, including changes to senior staff, but had a call with the PM, wherein O’Toole was sure to point out in his readout that he raised “western alienation” as a concern he wanted addressed in the Throne Speech – sending a signal to his base on day one.

Here is a reminder of the things that O’Toole promised during his leadership campaign – and caution, a lot of those promises are premised on some eye-popping economic illiteracy. Here are five ridings whose results help tell the story of O’Toole’s rise using the rules of the campaign (you can find the full riding-by-riding breakdown here). Here’s an analysis of who the power players are in O’Toole’s Conservative Party.  Here’s a look into Leslyn Lewis’ campaign and what it signals, but I would put a word of caution for those who insist that this is some kind of turning point for a party that tends to favour old straight white men at all levels – I did notice over the past few months that whenever certain Conservative voters would harass female academics on social media and were called out for it, they would insist they weren’t sexist because they were voting for “a black woman to become prime minister.” I have a sneaking suspicion that Lewis has given a certain amount of cover to these kinds of people, which isn’t really a sign of progress.

Meanwhile, Susan Delacourt lists the things O’Toole will need to address before the party will be ready for an election, which means biding their time. Heather Scoffield sees an opportunity for O’Toole to exploit when it comes to fiscal policy. Aaron Wherry wonders how O’Toole will differentiate himself as leader given the party’s approach to issues. Éric Grenier crunches the numbers to show how the social conservative vote benefitted O’Toole over Peter MacKay. And Paul Wells takes stock of O’Toole, finding him to be little more than a warmed-over Scheer in an era where the political centre in the country has shifted from where the Conservatives believe it to be, which will mean that O’Toole will need to think bigger than he currently seems to have an interest in.

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Roundup: O’Toole on the third ballot

On a third ballot result, Erin O’Toole won the Conservative leadership race. The big event turned into a very big disaster. It was delayed by over six hours because the machine they were using to open the envelopes with ballots started destroying thousands of ballots, and it was well past midnight by the time the first ballot was even announced – far beyond the day’s news cycle and past the deadlines for newspapers’ first editions, which had long since gone to print. While we were waiting, Andrew Scheer gave his farewell speech, which was bitter, and full of jejune understandings of conservatism or the political landscape – he railed against imaginary left-wing straw men, scared up a Bolshevik threat, lied about the media – to the point where he called The Post Millennial and True North (aka Rebel Lite™) as “objective” that more people should pay attention to, which is incredible.

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As for the result, this was very much about the social conservatives flexing their muscles within the party. Both Leslyn Lewis and Derek Sloan got over 35% of the votes combined on the first ballot, and there were places where either of the front-runners came in third to Lewis, and she swept Saskatchewan, where MacKay came in last. And true to form, it was those social conservatives’ down-ballot support that played kingmaker to O’Toole over MacKay, who was inexplicably considered the “last Progressive Conservative standing” (which doesn’t make sense because he was in no way a PC MP, especially if you look at his voting record). O’Toole at least has a seat, so that means he can get to work immediately, but we’ll see how many bruised feelings are in the caucus and party ranks given how the campaign played out, especially given that O’Toole hired a professional shitposter to run his campaign.

For his victory speech, O’Toole graciously thanked his competitors, and thanked the “patriotic Canadians” who made the victory happen. He paid special mention to Quebec, where he won the most votes, and made it clear that he was going to keep Sloan in the fold, in spite of some of his odious statements. O’Toole insisted that he was going to unite the party, before he took pot shots at Trudeau. He said they would be proposing a new “positive Conservative vision,” and that they would be ready for the next election, which could be as early as this fall. And then it was onto the doomsaying about the direction of the country under the Liberals, complete with the economic illiteracy that has marked the modern Conservative party. “The world still needs more Canada – it just needs less Justin Trudeau,” O’Toole said, before insisting that everyone has a home in the Conservative party.

We’ll delve into the entrails of the regional breakdowns of the race, and the particular mechanics of it and how that affected the results, but I will tell you right now that I have little patience for these takes about how this result means that the party’s power is shifting eastward – that’s hard to believe given the concentration of their votes, even though none of the leadership candidates came from there. And frankly, the notion that the party requires someone from Alberta to helm it keeps it blinkered, and insular. That’s not how you build the kind of national party that the country needs.

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Roundup: A curious set of leaks

There was an interesting bit of news out yesterday in that the husband of Trudeau’s Chief of Staff, Rob Silver, was accused of having lobbied officials in Bill Morneau’s office as well as the PMO about making changes to the emergency wage subsidy legislation so that the company he worked for would qualify for it (which they don’t as they are majority-owned by Quebec’s pension plan). Apparently, he was turned down and those officials said that they felt “uncomfortable” by it all, but it’s nevertheless raising questions, and the Lobbying Commissioner is going to review the incident (but it’s likely he fell within the rules of not registering because it falls under the 20 percent threshold). There’s also no suggestion that said PM’s Chief of Staff, Katie Telford, was associated in any of this, nor the PM, but that’s not really what’s interesting about it.

https://twitter.com/mattgurney/status/1296947674046959617

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For the past two weeks, as the leaks about Bill Morneau started coming out in advance of his departure, we also saw a number of warnings over social media about Liberals being their own worst enemies and that now was really not a good time for a civil war within the party. The fact that there were anonymous leaks to both VICE and the National Post about this incident shows that someone is suddenly awfully keen to talk, hoping to possibly embarrass PMO in some way, and considering that the leakers are showing how virtuous they were in standing up to Silver might make one assume that those leakers are loyalists of Morneau who are trying to, if not burnish his reputation, then certainly tarnish his detractors. I do wonder if this is a limited screw-you to Trudeau, because I haven’t yet seen camps loyal to Chrystia Freeland and François-Philippe Champagne forming and trying to oust Trudeau so that one of them can take over just yet. That said, this year has proven to be full of surprises, so we’ll see.

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Roundup: Outlining the transition steps

The government unveiled their planned next steps in income supports for the economic recovery yesterday, starting with an additional month of CERB, after which they will start transitioning people to EI (with relaxed criteria) as well as a new system of support benefits for those who don’t normally qualify for EI, as well as sick benefits. I’m given to understand that part of why they are being transitioned away from CERB has to do with flexibility – the EI computers are more able to handle the ability to allow benefits to flow while a person is still getting incomes than the CRA’s system does, and that is one of the things that are being rolled out here, so that people don’t lose benefits the moment they reach an arbitrary threshold. (More from economist Jennifer Robson in this thread).

Something that came up repeatedly over the day (particularly on certain politics shows), however, was the notion that while the legislative portions of these changes would need to happen fast when Parliament is recalled, that nothing could happen until after a confidence vote on the Speech from the Throne. This is false. Once the Speech has been read by the Governor General, the government can start introducing and debating other bills. They don’t have to simply debate the Reply to the Speech, and they don’t have to have an immediate confidence vote. In fact, they don’t need to have one at all, given that there are other confidence votes coming up in the Supply Cycle. Yes, Trudeau did promise a confidence vote, in what appears to be a dare to the opposition, but that’s not the point here – the point is that they can introduce these measures in Bill C-2, and swiftly pass them before Trudeau has that confidence vote. All of the pearl-clutching that I’m seeing is completely for naught, because people don’t pay attention to process or procedure (and I’m sure a few of them are trying to create an artificial sense of drama).

https://twitter.com/SkinnerLyle/status/1296556887761129476

Meanwhile, a certain senator is grousing that transitioning people to EI is going to be too complicated, so he wants the provinces to start basic income pilots, and I can’t even. Economist Lindsay Tedds has been working on this issue for a long time and has stated that we don’t need more pilots – governments need to simply design programmes that meet their objectives, but it seems that said Senator hasn’t been listening when she’s told him that directly.

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Roundup: Combing the document dump

The mass of WE-related documents were the subject of yesterday’s news fodder, and the fact that they largely corroborated the government’s assertion that the civil servants were the ones who suggested WE Charity be the vehicle to deliver the Canada Student Service Grant programme. They did, however, make a couple of notes that raised eyebrows – one was another communication between Bardish Chagger and the Kielbergers (though she has responded to dispel those concerns, saying it was a general comment she had made as the CSSG was not on her radar at the time), and the other were communications between Bill Morneau’s office and the finance department officials where Morneau’s office were described as “besties” with WE – which doesn’t necessarily prove that this was some orchestrated campaign to benefit WE. There were also documents wherein Jean-Yves Duclos was clearly not comfortable with WE being the only delivery vehicle for the programme because they don’t have sufficient depth in Quebec, though he was being assured otherwise.

To these revelations, and the fact that some of the pages had redactions on them (which is standard for both Cabinet confidences and instances where privacy is involved), the Conservatives and Pierre Poilievre in particular put on a melodramatic press conference full of air quotes and flung pages, and the howling accusation that there was a cover-up in the works. Because we all know that when you don’t find the answers you want, there must be a conspiracy at play. It’s not unexpected, and I’m not sure he won over any converts among the Canadian public, but hey, this is all theatre for him, like so many things in Canadian politics.

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Roundup: Freeland precedes a prorogation

The fallout from Bill Morneau’s resignation yesterday culminated in a brief Cabinet shuffle that saw Chrystia Freeland appointed to replace him as finance minister, and Dominic LeBlanc taking over her intergovernmental affairs responsibilities. This makes Freeland the country’s first woman federal finance minister, and there was much back-patting over that particular glass ceiling being shattered. The bigger news, however, was the fact that prime minister Justin Trudeau decided to prorogue Parliament to return on September 23rd – the same week they were intended to return anyway – for a new Speech from the Throne that would outline a new set of priorities for the government in order to focus on rebuilding the economy. Trudeau said that it was the time to move forward rather than revert to the status quo, and that we need bold new solutions rather than being held back by old ways of thinking. He also said that the pandemic was an “unprecedented opportunity,” a chance to build a more resilient Canada, which is healthier, safer, more competitive, more welcoming, and fairer. “This is our moment to change the future for the better,” he declared, adding that the window of opportunity wouldn’t be open for long.

During the Q&A, Trudeau only had praise for Morneau and wouldn’t elaborate on the leaks that happened up to his resignation. Regarding the Governor General, he said that he had confidence in the third-party investigative process launched by PCO. On his children going back to school, he said that they were discussing the matter “actively.” Regarding Freeland’s previous writing on taxing the super-wealthy, Trudeau said that he has been having this conversation with Freeland since he recruited her to politics, which is why the first thing they did was raise taxes on the top one percent, and that they wouldn’t raise taxes at this time. Regarding prorogation, Trudeau tried to differentiate his move with Harper’s 2008 prorogation by saying that while Harper was trying to avoid a confidence vote, he was instead putting one on the table with the Speech (err, except the logic falls apart when you realize that Harper also had a confidence vote following that prorogation, which he survived). He said that they continue to cooperate on any WE investigations, and that they released those thousands of pages of documents to the committee so that they can study them over the next month of fallow period, and that the opposition can keep asking questions when Parliament resumes. And when asked if he would be on the ballot next election, Trudeau said he would be and that he was “excited about the opportunity and the responsibility.”

We also got an extended response from Freeland, beyond her praise for Morneau, both about breaking the glass ceiling around women in the finance portfolio, and the government’s feminist agenda, which was important because of how this crisis has disproportionately affected women. Regarding her own disagreements with Trudeau – because of the narrative being promulgated about Morneau’s ouster – Freeland said that she and the PM had recently reflected “with good humour” on times they disagreed, and that she felt that having those different points of view, with the ability to have open, respectful, candid conversation about them (behind closed doors) brought government to a better decision. So there’s that.

On the subject of prorogation, this is vastly different from 2008, and anyone who tries to compare the two is either being disingenuous or has a comprehension problem. The WE Imbroglio is hardly a scandal – yes, it highlights the PM’s poor judgment, and that should be the cue that it’s time for him to leave, but that’s about it. The attempts by the various committees to find a smoking gun haven’t been able to find one, and several of them are exceeding their mandates in trying to force more investigations. Prorogation won’t end any ongoing committees, but delay them, though I’m really not sure there’s much more to be gained by continuing them, for what it’s worth. This being said, Trudeau proroguing now instead of waiting until the eve of his scheduled Throne Speech is not exactly a smart move given the current pandemic context, because if there is a need for an emergency recall of Parliament for a new legislative measure as a result of said pandemic, they will need to have a Throne Speech before that can happen. While I’m sympathetic to those former staffers who said that the government needs to focus on their Throne Speech and budget, and that the WE stuff was a real distraction from that, I would say too bad – the government made its bed and needs to lay in it. It was unnecessarily provocative and only increases people’s cynicism about Trudeau breaking his promise not to use tactics like these for political gain.

Meanwhile, Heather Scoffield makes note of the juggling act that Freeland will need to employ in order to balance the goals she’s facing, but notes her experience as a working mother will help. Susan Delacourt points out that Freeland is the only “star candidate” of Trudeau’s that is still standing and hasn’t been tarnished along the way.

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Roundup: Exit Morneau

After a week of leaks about clashes, finance Bill Morneau took to a lectern late in the day on Monday to announce that he had tendered his resignation, and would be resigning both as minister and as MP. Well, first he did some back-patting over his record and couched the decision by saying that he never planned to serve more than two election cycles, and since the economic recovery would take years, it was better for someone else to step in who could carry the work through. The bombshell out of this was the face-saving gesture that he had put his name forward to be the next secretary general of the OECD, and that he had the PM’s full support in doing so – which is either really cute that he thinks he actually has a chance, or a bit pathetic in that he offered up an excuse that beggared credulity. The Q&A portion had very few answers, but this kind of pabulum is what Morneau was so good at – lots of words, not a lot of substance. When asked about the difference that he was apparently clashing with Trudeau over, Morneau mouthed that there was “vigorous discussion and debate,” and that he hoped that work on the green economy could continue and that he would try to help with the OECD (which he won’t get). He denied that he was pressured to resign, said that when it came to WE, he has been involved in philanthropy for many years and that in hindsight he wished that he had one things differently and recused himself – and yet said nothing about the donor trip he didn’t disclose. He insisted that he still wanted to contribute, and said that at the OECD, he would deal with things like international taxation and digital transformation, and use the expertise he gained as the finance minister of a G7 country to help, but, well, that’s not going to happen and we all know it.

Liberal Sources™ are saying that there won’t be an interim finance minister, though the Orders in Council say that Mona Fortier is already the Acting Minister since Morneau is out of the picture. The leading contenders for the job appear to be Jean-Yves Duclos, Chrystia Freeland, and François-Philippe Champagne.

Meanwhile, Paul Wells describes the strange circumstances that surrounded Morneau’s departure – particularly the leaks to the media about fights that Morneau lost and was gracious about, with added snark about how the departure went down. Heather Scoffield notes the good work Morneau did before agreeing that it was time for him to go. (Look for my own column on Morneau’s departure later today on Loonie Politics).

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