Roundup: A big wage subsidy

For his Friday presser, prime minister Justin Trudeau had big headlines but few details – that the government was going to boost the wage subsidy for small and medium-sized businesses to 75 percent from the originally announced ten, along with a few other tax deferral measures to help businesses retain their liquidity. The details, however, aren’t going to be released until around Monday, but Trudeau stated that it was more important to get the message out that this help was on the way so that they would ensure that these businesses retained their employees (or even re-hire them) rather than lay them off so that they can collect EI or the new emergency benefit for the duration. Speed over perfection is the new motto of the times. (On a side note, Andrew Scheer was going around taking credit for this subsidy, when I know for a fact it was other people working behind the scenes, but Scheer needs to try and justify his existence).

This announcement came in the wake of a new PBO report that estimated the size of the deficit based on the measures that had been announced to that point, but what was particularly significant was that his modelling was that physical distancing would be in effect until August, which sent the various reporters into apoplexy, as they started demanding to know how long that Trudeau thought that current conditions were going to last – as though that was a question he could reasonably answer at a time where the Quarantine Act has only just been enforced, and we have returning snowbirds who think that these rules don’t apply to them, and where it’s still too soon to see how much of an effect the current measures have had. Quebec is seeing a spike in cases because their spring break was two weeks ahead of everyone else’s in the country, and it’s showing up in the data now.

It was also worthwhile noting that Bill Morneau and Stephen Poloz had another joint press conference today – Morneau to reiterate some of the messaging around the new wage subsidy, and Poloz to take questions about the emergency rate cut that the Bank of Canada announced shortly beforehand, where they cut rates to 0.25 percent, which is as low as they’re going to go, but to also engage in quantitative easing (which is not actually printing money as he spelled out). Their joint appearance seems to be remain under the aegis of trying to reassure the public and the markets that our fiscal heavyweights are on the case, but when this is all over, we will need to see our parliamentarians examining the relationship to ensure that monetary policy truly remained independent and not coordinated with fiscal policy, no matter how dire the economic situation.

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Roundup: Militarizing borders and needling protectionism

I’m not sure that anyone knew what today’s outburst of insanity was going to be when Justin Trudeau held his daily presser, wherein he reiterated the approval of the new emergency response benefit, spoke about the G20 conference call earlier that morning, the formal appointment of Kirsten Hillman as Canadian ambassador to the US, warning of a text message scam posing as the government offering benefits, and the invocation of the Quarantine Act. It wasn’t until the questions that the day’s obsessions came to the fore. One of them – what the government could do about credit card interest rates during this crisis – was fairly tame (for which Trudeau stated they were talking to the banks), but two other stories in dominated. The first was news that the Americans wanted to deploy some 1500 troops near the Canada-US border, to which Trudeau said that they were aware of the discussion, but he had vigorously opposed any such move to militarize our border – something which would make no sense to do. (The Americans later dropped the idea).

The other story that carried through the day was one (which I shall not link to because of the underlying Sinophobia) about Canada’s decision to send medical equipment to China back in February, when they were trying to contain the spread of the outbreak there. It was the perfectly sensible thing to do, we lived up to our global obligations, and the focus at the time was very much trying to contain the spread, while we maintained proper stockpiles within Canada at a time when the risk of transmission was low. Add to that, China has since sent more supplies to Canada than we sent to them. But that didn’t stop hay from being made by Conservatives, both from Andrew Scheer himself, as well as the guy running Erin O’Toole’s campaign, and it’s troubling how these kinds of narratives can turn toxic. “Canada First” is the kind of thing that becomes dark really quickly, and we should try to discourage this kind of thing before it goes septic.

Chris Selley, meanwhile, asks some salient questions about the underlying equipment supply problems in Ontario after it congratulated itself on being so prepared, and why there seems to be such a reluctance on the parts of governments (not just Canadian ones) to at least look like they’re angst-ridden about the overreaches they’re asking for.

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Roundup: A negotiated solution

In the end, a compromise was reached – MPs shuffled back into the House of Commons by 3 AM, and had passed the bill by six, after grilling the ministers who were present. Parliament did its job, democracy was saved, and the Conservatives spent the day patting themselves on the back to let you know just how brave they were in saving it. As the bill was over in the Senate on schedule – and it had always been scheduled to reach there yesterday for debate and passage and not on Tuesday, as many hysterical media outlets failed to mention – Trudeau held his daily presser, outlining the measures that were passed within it, which included a streamlining of several of the earlier-announced benefits into a more catch-all $2000/month benefit over the course of four months for anyone who wasn’t working, whether they had been laid off or not. Trudeau also announced new support for journalism (mostly ad revenues) and an acceleration of their tax measures. During the ministerial briefing, more details on supports for Indigenous communities was outlined, and shortly thereafter, Patty Hajdu also announced that the Quarantine Act was being invoked to ensure travellers returning to Canada actually self-isolated, even if it meant the government putting them in a hotel room for two weeks and providing them food.

[Maclean’s has updated their information on symptoms and where to get tested].

The tales of the negotiations are fairly interesting to me, in part because there seem to be breakdowns across the board. The Conservatives went into this saying “no surprises” and were surprised by the outsized spending powers, which they say broke their trust. The Liberals were on the one hand apparently surprised to see them in there (and it’s a question of whether it was the drafters in the Department of Justice who are to blame, or perhaps some of the people in Bill Morneau’s office who seem to operate pretty independently of the minister, if testimony from the Double-Hyphen Affair is to be believed), while also justifying that they needed enhanced powers because of the shifting nature of the pandemic emergency, and how fast everything has been changing. Which mostly just reinforces my own previously published points that if we kept the Skeleton Parliament in place, the government could more easily pass new fiscal measures in short order rather than do the song and dance of recalling MPs while providing more constant oversight while still respecting physical distancing and other protective measures. But who listens to me?

Paul Wells gives his take on the whole affair here, which is well worth your time reading. (My own take on what brought us to this point, in the event that you missed it, is here).

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Roundup: Suspended for negotiations

For his daily presser yesterday, Justin Trudeau first gave some bland assurances about believing in democratic institutions before updating on his conversation with the premiers the day before, stating that now was not the time for the Emergencies Act to be implemented, but it remained the tool of last resort. (He also gave some information on other flights they have secured for stranded Canadians, said that faster testing was coming, and that they’re not ruling out using telecom data to find social gatherings so that they can shut them down). But the drama for the day started moments later when the House of Commons convened for the Skeleton Parliament, and immediately suspended in order to continue negotiations because the Conservatives in particular were not going to let the government give itself the power of unlimited spending without any parliamentary oversight – as well they shouldn’t. Even more to the point, Conservative MP Scott Reid showed up, despite not having been on the leader’s approved list, and posted a 2500-word essay online about why he was going to deny any unanimous consent, why it was improper for his party to try to keep him from being there, and his (proper) concern around Parliament passed three bills sight-unseen in one fell swoop before they suspended. And he’s absolutely right.

While the negotiations carried on for at least the next twelve hours (by the time I gave up waiting and went to bed), it sounded like the government was walking back on some of the measures but a new text of the bill still hadn’t been forthcoming. But that didn’t stop the absolute inane partisanship from all sides, which was not helped at all by ministers like Mélanie Joly saying asinine things like “the parliamentary process is too slow” for the government’s pandemic response, which is utterly infuriating. People defending the government’s move to try and bypass parliament seem to forget that this is how democracy works, and it’s not a bad thing. If they don’t like that, then they can tell the Queen that we’re turning over all power to her because it’s easier that way. And then there were the conspiracy theories that the Conservatives had somehow set up Reid as the weasel so that they could be partisan spoilers over the government’s response, which is so mind-blowingly stupid that I can’t even. Reid, who is on the outs with Scheer, somehow cooked up a scheme to be spoilers? When the government went and put an unconstitutional provision in the bill and expected parliament to swiftly pass it and just trust them? Seriously? And the harrowing cries that this was causing people to die, never mind that the plan was always that the Senate would receive the bill today and that it would get royal assent today, not yesterday. Because why should two centuries of Responsible Government matter? And Westminster parliaments going back to the late 1600s? It’s not like turning over more power to governments in times of fear without proper oversight ever goes badly, right?

Meanwhile, Susan Delacourt has some of the behind-the-scenes details on how those offending passages got into the bill, though I’m not mollified by the notion that this was all to be negotiated because I’ve heard from people at briefings who say that this wasn’t how it was presented to them. Heather Scoffield isn’t reassured by the government’s words, considering they wanted to enhance their spending powers until the end of 2021. Chris Selley praises Scott Reid for standing up for Parliament in the face of a government that would have trod all over its rights.

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Roundup: Civil liberties or delegated taxation authority

Prime minister Justin Trudeau was in Prime Minister Dad mode during yesterday’s presser, telling people to stay home and that “enough is enough,” you’re not invincible, and you’re only putting others’ lives at risk. In terms of announcements, he talked about Parliament passing the emergency fiscal measures, that Farm Credit Canada was opening up funds, that flights were secured for a few countries that have secured their airspace, and that more funds were made available for vaccine and drug testing for COVID-19. He also spoke about his planned call with premiers to better coordinate emergency powers, and clarified that the Emergencies Act was largely about the federal government assuming the powers that provinces or municipalities haven’t enacted – in other words, it’s those levels of government that can suspend civil liberties in this time, and he’s trying to get premiers on the same page.

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For the bulk of the day, all anyone could talk about however was the Emergencies Act, and every journalist in town wanted to know why it hadn’t been invoked yet, and when they would do so. Trudeau, and later Freeland, kept making the point that it was a tool of last resort that would only be used when all other tools have been exhausted, but that doesn’t seem to have deterred anyone – lest of all New Brunswick premier Blaine Higgs, who said that he wanted the federal government to invoke it, either because he’s too reluctant to use the significant powers he has at his disposal provincially and would rather Ottawa do it for him, or because he can’t seem to deal with his fellow premiers to coordinate anything. And while everyone was practically begging the government to start taking away civil liberties, they also lost their minds when it was leaked that the government planned a significant overreach in their fiscal aid legislation that would have essentially given them delegated authority over taxation for up to December 2021 – which is clearly unconstitutional, but hey, they mean well, right? They backed down, but cripes the lack of competence in this government sometimes… (Look for more on this in my column, later today).

Meanwhile, here’s John Michael McGrath explaining why the federal government doesn’t need to invoke the Act, while Justin Ling notes that measures that trample civil liberties generally make problems worse instead of better. Adnan Khan ponders individual liberties versus authoritarianism in a time of crisis. In this thread, Philippe Lagassé explains more about the Act.

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Roundup: Chartering special flights

For his Sunday presser, Justin Trudeau announced formally that the House of Commons was coming back on Tuesday afternoon to pass more emergency legislation, and that Canadian airlines were standing by to help with repatriation efforts. He also made it clear that the existing aid package was just a first step, and that they were actively considering what the next ones would be. He also made a direct address to children in the country, thanking them for their patience with all of this. In the subsequent ministerial presser, Patty Hajdu said that they were hoping for better coordination with provinces this week as to what measures they are taking, so that there will be less of a patchwork across the country. She’s also looking into criminal penalties for travellers who don’t self-isolate, so that could be coming in the next few days.

As for the return of Parliament, the agreement is that about 32 MPs are coming back – which is far more than there should be, given that quorum is 20 – and that they planned to have about four-and-a-half hours of debate on the legislation, and that while there wouldn’t be a formal Question Period, there was going to be time for MPs to ask questions of the ministers present. What we learned later in the day was that the government was sending out special planes to pick up Andrew Scheer, Candice Bergen and Don Plett, which I find highly dubious. There is no reason why they need to be in Ottawa if they weren’t there already (and I find Scheer’s excuse that he went to Regina for March Break to be problematic because he knew they were suspending Parliament before he left and knew full well that they would need to recall it, which is why that was part of the agreement). Now, if they decide they’re going to stay in Ottawa for the duration, then okay, sure, I’ll grudgingly give them a pass, but if they plan on having the government fly them back home after the single day’s sitting, then I’m sorry, but it’s completely irresponsible, not only because it’s modelling poor behaviour when people are being told to stay home unless it’s absolutely necessary for them to be out (and while I will argue that it is necessary for a Skeleton Parliament to be in place, it is not necessary that the Opposition Leader and House Leader be present when others can fill those duties temporarily), it’s also a huge waste of resources – particularly considering that Scheer has made a big deal of how much the current government is “wasteful,” with special websites and social media shitposts about. It’ll be even more galling if he has the government pay for Scheer’s wife and children to be returned to Stornaway with him, given his own particular spending scandal with party funds – particularly if the consideration for having needing Scheer and Bergen there to begin with is simply for the sake of having them be on camera.

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Most senators seem to be taking this more seriously, both in terms of restricting attendance to those within driving distance (Don Plett excepted), but also that they are holding teleconferences with their members to ensure that they fully discuss the legislation so that they can raise any particular concerns if they have them. Would that certain MPs were a bit more responsible in that regard.

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Roundup: Social distance or else

Justin Trudeau’s Saturday presser had a couple of items of news – the first was that the Northwest Territories was shutting its borders to non-essential travel, which was a move Trudeau supported. That was announced just hours before it was announced that the Territory had its first confirmed COVID-19 case. While other provinces may want to contemplate shutting their own provincial borders (which would be incredibly difficult, particularly given Charter rights around freedom of mobility), the Territories are isolated enough and mostly fly-in, so that makes it easier – something you can’t say about the other provinces except maybe for Newfoundland and Labrador (and to an extent PEI, if they closed the Confederation Bridge and halted all ferries). Trudeau also noted that the government was working with airlines to get flights into countries that have closed their airspace in order to get Canadians out, naming Peru and Spain as their first priorities.

The more salient – and perhaps poignant – point was made by Patty Hajdu at the ministerial presser that followed, where she stated bluntly that if Canadians don’t voluntarily do more social distancing, the government may have to implement measures that will start to encroach on their civil liberties – in other words, harsher police enforcement of quarantine orders and orders to shut down the country like we saw in places like Italy. Where a really big concern is where all of these Canadians – snowbirds especially – are returning to the country and we’ll see how many of them properly self-isolate upon their return. There are warnings to the effect of “Go right home, don’t stop for supplies first,” which will be hard for a lot of people, but that message will need to be drilled home effectively.

We also have some news on the return of Parliament on Tuesday, where 30 MPs will come back to pass the extraordinary spending measures and question Bill Morneau about them, followed by the Senate on Wednesday to pass the bill in their chamber. (My look at what this Skeleton Parliament may look like is here).

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Roundup: Tightening the border even more

There was news today from Justin Trudeau in his daily presser (which will happen again today, but I suspect we’ll all be working through the weekends for the foreseeable future), which was not only that the government was working with industry to both increase the capacity at companies which produce medical equipment, and to help other companies retool in order to produce supplies that may be necessary in the near future – something that is akin to a wartime scenario. Trudeau also said that the government had come to an agreement with the United States to essentially suspend the Safe Third Country Agreement, and that for the next 30 days (at which point the agreement sunsets), any irregular border crossers trying to seek asylum in Canada would be returned to the United States.

I have a couple of cynical theories about this move – one of them being that it’s a sop to the Conservatives, who have been crowing about this as other border closures have been taking place. The other theory, which has been put forward by some Washington-based journalists, is that this was in part to offer cover to Donald Trump so that he could take more extreme measures along his southern border. There is also the pragmatist aspect to this – resources are tight with other border closures and screening, so ensuring that there are enough people to man the irregular crossings like Roxham Road, where asylum claimants need to be processed, screened, and now isolated in a federal facility for two weeks, was likely going to stress their resources and capacity. The flip-side of this, however, is that it pushes more people to unmonitored crossings that are further afield, especially now that the weather is warming up, and if they cross there, they won’t be screened and won’t be tracked by public health authorities, and could easily become new vectors for infection – essentially making the government damned if they do, damned if they don’t. The humanitarian aspect of this decision is also a pretty big deal, and does damage to our international reputation, but in this time of crisis, I’m not sure how much anyone is thinking of that, and if it makes it seem like they’re taking action – even if it’s one that will inevitably have more negative consequences than positive ones – then that may be the trade-off for other political considerations at this point in time.

Meanwhile, Here’s an updated Q&A with infectious disease specialist Dr. Isaac Bogoch on COVID-19. Justin Ling worries about the patchwork of information coming from different levels of government as it relates to the pandemic. Ling is also concerned about the government’s tepid response to the pandemic relating to prisoners, and the decision around asylum seekers. Chantal Hébert gives her assessment of how the country’s political leaders are responding to the crisis. Colby Cosh offers some reflections on the state of the pandemic and where it may lead us.

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Roundup: Reassurances and critiques

It was a much calmer day yesterday with little in the way of new announcements – the most noteworthy part of Justin Trudeau’s daily presser was that he was actually on time for possibly the first time ever! Oh, and the border restrictions for non-essential travel will probably only kick in sometime on Friday night, but details were still being worked out. As well, there is still no contemplation of use of the Emergencies Act, but it remains a tool in the box if need be.

With the slower news day in mind, here is economist Kevin Milligan who goes through the criticisms of the government’s massive aid package, and addresses which are fair and which ones may not have all of the considerations therein.

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Roundup: Big border closure, big aid package

As the impact of the pandemic starts to be really felt in Canada, there is a new kind of rhythm starting to take shape in Ottawa, which is essentially that we get our daily press conference with Justin Trudeau, followed by ministerial press conferences, one after the other, and along the way, the daily briefings and pressers from the different provinces creep up in there as well. Today’s Trudeau press conference outlined the agreement to close the Canada-US border to non-essential traffic, and to outline the broad strokes of the $82 billion in economic measures (when you include tax deferrals) designed to help the country cope with the pandemic. He also said that measures specific to the airline industry and oil and gas sector were coming later in the week, including significant measures to remediate orphan wells in Alberta, which means that the federal government has now assumed a chunk of the province’s environmental liabilities, and both the companies that left them and the province that didn’t properly regulate their remediation are going to be let off the hook, so slow clap for that one.

Other measures included in the package were a suspension of federal student loan repayments (made interest-free), and distinctions-based funds for Indigenous communities, along with additional funds for shelters and the homeless. Not everyone is happy with those measures – the small-business lobby says that the measures aren’t enough to stop layoffs because the wage subsidy is only ten percent, which they say isn’t big enough. And in case this weren’t all bad enough, the price that Canadian oil is going for fell to its lowest level ever. So that’s fun.

We also learned that negotiations are ongoing between the parties – and Chambers – to temporarily recall Parliament in order to pass spending measures that were announced yesterday, and that could happen as early as next week, because there is a forty-eight-hour window after the Speaker agrees to the request. Part of the issue is the negotiation around how many MPs to recall – quorum for the Commons is twenty, and fifteen for the Senate – because they want to ensure proportionality. Pablo Rodriguez stated that he also wants to ensure that it’s MPs who don’t have to travel by plane to get here, but Jagmeet Singh was on TV yesterday saying he’s ready to come back, which kind of defeats the purpose, especially if we’re trying to encourage Canadians not to travel.

[Maclean’s has updated their Q&A on symptoms and contacts on where to get help.]

Meanwhile, Heather Scoffield gets a personal perspective on the aid package announced today, while Kevin Carmichael weighs in on the debate around the package – whether it is preferable to favour speed and not precision – by finding that the details are a bit too finnicky, but also notes the “elasticity” of the aid, which can expand or contract as need be as it progresses. In this thread, the Parliamentary Budget Officer finds it not targeted enough (though I’m not sure that it’s his job to weigh in on policy decisions like this). Economist Lindsay Tedds also has some suggestions on how provincial governments can step up given that the federal aid package only goes so far.

https://twitter.com/kevinmilligan/status/1240331137517367298

Good reads:

  • Here’s a look behind-the-scenes of the discussions around closing the Canada-US border.
  • Two new test kits for COVID-19 have been approved for use in Canada, to hopefully speed up testing in provincial labs.
  • The IRB has suspended in-person refugee hearings for the time being, and CBSA has halted deportation orders.
  • Here’s a look into emergency federal procurement rules that can be activated to rapidly source things like medical equipment.
  • The Hill Times got a look into the deals made between parties and caucuses in both chambers to pass those four bills and to suspend Parliament.
  • CBC is suspending their local evening news broadcasts for a central CBC News Network broadcast (in place of Power & Politics), which may breach CRTC rules.
  • It looks like MPs have agreed on a subcommittee of MPs to help guide the Centre Block renovations, including a list of “do not touch” heritage spaces.
  • Jason Kenney introduced an aid package for Alberta given that the province is being hit not only with COVID-19, but also plummeting oil prices.
  • Colby Cosh offers a meditation on the nature of liberal democracy in times of crisis like the one we’re facing.
  • Susan Delacourt notes that the current pandemic means that the government has stopped talking about citizens as “taxpayers” and framing politics as transactions.

Odds and ends:

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