Roundup: Saudi oil and AG reports

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

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

Auditor General’s report

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

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

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Roundup: Not an election issue to fight over

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

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

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

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Roundup: Fiscal update spin incoming

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

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

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

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

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

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Roundup: Endorsing the Brexitshambles

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

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

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

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Roundup: An odious historical comparison

While crude prices in Western Canada continue to take a beating (in part because there is a global supply glut in the market and there are questions about why oil prices got as high as they did recently given market conditions), there are other concerns about investors fleeing the country. Not all, mind you – there are still a number of big-ticket energy projects being signed in the country which defies this narrative that’s going on, but I have to pause on some of the overheated rhetoric being bandied about here, because we need to inject some perspective into the conversation.

For one, the lack of infrastructure to tidewater is because there simply wasn’t an economic case for it until recently. It’s hard to complain that we don’t have it when there was no proper rationale for its existence. Same with refineries – it’s a low-margin exercise and refineries cost billions of dollars to build, and the economic case for building more of them has largely not been there. It’s not just because we have tough environmental regulations in Canada that these projects don’t exist – there weren’t the market conditions.

The other thing that really sets off my alarm bells is this pervasive talking point among oil industry boosters that Canada once built railways, so we should therefore be able to build pipelines. This kind of talk should be utterly galling to anyone who has a modicum of understanding of history in this country, because the railways were built by virtual slave labour from China, following the relocation of Indigenous tribes across the prairies due to starvation and inadequate government aid (while there is some debate over how deliberately starvation was used to force compliance). This is not the kind of thing you want to be touting when it comes to building pipelines, particularly if those opposing construction are other Indigenous communities. And as I’ve pointed out repeatedly, it’s not the high bar of environmental regulations that are killing projects – it’s the fact that successive governments and proponents have tried cutting corners to weasel out of their obligations, and that’s what hurts them, not the minimal additional work it would have taken to properly fulfil those obligations. I get that they’re looking for scapegoats during these trying times for the energy sector, and that nobody wants to look in the mirror, but honestly, trying to compare the railways to this current situation is borderline offensive to anyone who has a modicum of historical knowledge.

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Roundup: An oil conundrum

There’s an interesting conundrum happening in Alberta, where the premier and industry leaders are talking about production cuts owing to the supply glut and lack of refining capacity in the US being responsible for near-record lows for Canadian exports. The problem of course is whether the premier should use powers that haven’t been exercised since the days of Peter Lougheed, or if oil companies should voluntarily reduce their own production – and if they do, does this constitute price-fixing? There isn’t any easy solution to any of this, and it’s not just build more pipelines – they would only need to be pipelines to tidewater in order to find markets not hampered by the current refining shutdowns in the US, and that are prepared to take heavy oil and diluted bitumen. It’s also a bit on the unfair side to say that it’s simply “regulatory and political” challenges – as we’ve seen from successive court decisions is that attempts to take shortcuts and to weasel out of obligations is what’s causing delays and to have permits revoked. In other words, part of the problem is self-inflicted, and they try to hand-wave around it by crying “national interest” as though that makes it better.

Here’s a lengthy but good explanatory thread from Josh Wingrove, and it’s well worth paying attention to, because there’s a lot of demagoguery floating around about the issue, and it pays to be informed about why prices are low, and why it’s not something you can wave a magic wand to fix.

https://twitter.com/josh_wingrove/status/1062817943812218894

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Roundup: Parting shots after the furore

As the furore around the transfer of Tori Stafford’s killer dies down now that she has been moved back to another medium-security facility (but not “behind bars” as there aren’t any in women’s institutions in this country), the Conservatives and Conservatives are trying to get parting shots in. While the Conservatives have been demanding apologies from the Liberals because they’re still sore that they were called ambulance chasers, the Liberals’ parting shot was delivered on Friday as Karen McCrimmon, the parliamentary secretary for public safety, let it be known on Power & Politics that other child killers were transferred to healing lodges under the Conservatives. Hold up, said P&P, and while McCrimmon couldn’t give any names, the show went and checked. And lo, since 2011, twenty people convicted of killing a minor have been moved to healing lodges, 14 of them under the Conservatives. Now, we don’t know any of the details of these transfers, and how along they were in their sentences, or anything like that, because the families of the victims didn’t come forward like Stafford’s father did. But it certainly blows the Conservative narrative that this is somehow a Trudeau/Liberal “soft on crime” policy out of the water.

So, a couple of observations: The Conservatives keep insisting that they weren’t the ones who politicised the issue, and yet they are simultaneously patting themselves on the back for “forcing” the government to act, when the government ordered a review within a couple of days of this transfer going public. That sounds an awful lot like politicising it. Their talking heads have also been going onto the talk shows to insist that the Liberals were the ones who started the “name calling” and “insults” first, when it was only after a day of sustained questions that got increasingly graphic and overwrought that Trudeau accused them of ambulance-chasing politics. In other words, they are trying to play victim. There is also a certain amount of utter shamelessness when they insist that things that happened under their watch (the aforementioned killer being transferred from maximum to medium security, or now these other child-killer transfers) are somehow different because we’re talking about the here and now. I get that this is politics, but at some point, one has to wonder why there is a lack of shame around any of what goes on.

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Roundup: Looking for a domestic MS-13

Over the past week, Andrew Scheer has been touting his latest pre-election policy plank, which promises to tackle the problem of gang violence – except it really won’t. His proposals are largely unconstitutional and fall into the same pattern of “tough on crime” measures that are largely performative that do nothing substantive about the underlying issues with violent crime, but that shouldn’t be unexpected. The measures go hand-in-hand with their talking point that the government’s current gun control legislation “doesn’t include the word ‘gangs’ even once,” and how they’re just punishing law-abiding gun owners. And while I will agree with the notion that you can’t really do much more to restrict handgun ownership without outright banning them, it needs to be pointed out that the point about the lack of mention of gangs in the bill is predicated on a lie – the Criminal Code doesn’t talk about “gangs” because it uses the language of “criminal organisations,” to which gangs apply (not to mention that you don’t talk about gangs in gun control legislation – they’re separate legal regimes, which they know but are deliberately trying to confuse the issue over.

I have to wonder if the recent focus on gangs as the current problem in gun crime is that they need a convenient scapegoat that’s easy to point a finger at – especially if you ignore the racial overtones of the discussion. Someone pointed out to me that they’re looking for their own MS-13 that they can demonise in the public eye – not for lack of trying, since they focus-tested some MS-13 talking points in Question Period last year at the height of the irregular border-crossing issue when they were concern-trolling that MS-13 was allegedly sending terrorists across our borders among these asylum seekers. The talking points didn’t last beyond a week or two, but you know that they’re looking to try and score some cheap points with it.

With that in mind, here is defence lawyer Michael Spratt explaining why Scheer’s latest proposal is a house of lies:

Or as another criminal defence lawyer, Dean Embry, puts it, if you’re going to make stuff up on this issue, then why not go all the way?

https://twitter.com/DeanEmbry/status/1062102941123907590

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Roundup: A diminishing vision of a regulator

The Supreme Court of Canada returned their reference decision on the constitutionality of the proposed national securities regulator yesterday, and it was a unanimous green light – because this is a voluntary system, it’s constitutional. You may recall that a previous attempt to create such a national regulator to be imposed by the federal government was found to be unconstitutional, and lo, it didn’t happen. When the previous Conservative government constructed this new voluntary model, Quebec appealed to the SCC, and as we can see, didn’t win the day. And even with this decision, Quebec still says they’re still going to stick with their provincial regulator, thank you very much, and that’s that.

There are a few things to think about in this decision, and in the system as it’s being designed. One of them is that part of the mechanism that makes it acceptable to the Supreme Court is that the regulatory authority is being delegated to a council of ministers, but that may come with more challenges. Because the wait for this decision essentially stalled the work of the new regulatory body, it remains to be seen as to how long it will take to get the new system up and running.

While Andrew Coyne makes the point that this system really makes no sense because it’s not able to deal with the issue of systemic risk, it may be worse than that. I wrote about this proposal for Law Times back in the spring, and even proponents of the national regulator had started to sour on the concept because the proposed system as it was being built essentially let provinces maintain their own particular carve-outs, which increases the complexity and reduces the uniformity of the system across the country. Even more alarming, according to one lawyer I spoke with, is the fact that this sets up a system that is unaccountable, that makes up and enforces its own rules and is self-funding, which seems to go against most good governance norms. So we’ll see where this goes, but the final result certainly looks to be far less than what was initially promised.

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Roundup: A policy reviewed and changed

The government announced that their review of the transfer of inmates to Indigenous healing lodges is complete, and they made some changes to the policy to tighten the conditions. While they wouldn’t say directly, it was confirmed that Tori Stafford’s killer was reassigned from the healing lodge she had been transferred to back to an institution. Cue the self-congratulation from the Conservatives, who assert that the killer is back “behind bars.” But there are a few things we need to unpack here because some of this back-patting is disingenuous.

First of all, these healing lodges are still prisons. Said killer went from one medium-security facility to another medium-security facility. While Andrew Scheer kept insisting that she was moved to a “condo,” he is not only lying about what a healing lodge is, he is also misconstruing what conditions in women’s institutions in this country are like. There are no longer any of the kinds of cells and bars or high walls that you see on television – women’s institutions largely feature campus-like atmospheres, with apartment-like dwellings. Indeed, the facility she’s been transferred to post lodge is described as “a minimum security residential-style apartment unit and residential-style small group accommodation houses for minimum and medium-security inmates in an open campus design model.” So much for the crowing that she’s back behind bars.

There is also the self-congratulation in saying that they embarrassed the government into taking this action, and that this somehow disproves what the government said about not being able to act to transfer her. This is again disingenuous – when it came to light, the government ordered a review, and the policy writ-large was changed. They didn’t order an individual transfer, because that would be abusing their authority to do so. Now, there are some genuine questions as to how appropriate it is to change policies based on a single case, but insisting that they did what the Conservatives asked is not exactly true. Worse, however, is the unmitigated gall of the Conservatives demanding apologies and insisting that it was the Liberals who politicised the issue when they were the ones who decided to start reading the graphic details of Stafford’s murder into the record in the House of Commons. They’re still sore that they’ve been called ambulance chasers, which they insist is some kind of grievous insult, however their behaviour in the Commons around this issue was hardly decorous. An issue was raised, the policy was reviewed and changed, and the process worked. But trying to play victim over it is taking things a little too far.

https://twitter.com/journo_dale/status/1060641966776475648

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