Tag Archives: Bank of Canada

Roundup: Long-term care and quarantine

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Andrew Scheer was out first this morning, saying that he was trying to get some kind of a deal with the government on how to bring parliament back next week as they are scheduled to, and that he wants in-person sittings of some variety to ensure ongoing accountability (and he’s right). But when asked about bringing his family on that flight when they weren’t planning on them being there (and apparently Senator Don Plett had to get a different flight because it was suddenly full with Scheer’s family), he brushed off said questions. He then spent the rest of the day raising “serious concerns” about the WHO and its recommendations (recall that Jason Kenney on Monday accused Dr. Theresa Tam of repeating talking points from the People’s Republic of China), because what the world needs right now is to hew to the Trumpian instincts to undermine international institutions.

Next up was prime minister Justin Trudeau for his daily presser, in which he announced that four planes full of N95 masks have arrived and are in the process of being validated and distributed, before he brought up $130 million of new funding for the northern territories, including more money for healthcare, for Nutrition North, for northern air carriers, and money for the CanNor development agency. He also noted that they were working to enhance the Canada Emergency Business Account programme and were looking into something about commercial rent (though that’s provincial jurisdiction, so not sure what the federal government could do). As if that weren’t enough, he also raised that they were strengthening some of the measures under the Quarantine Act, as well as boosting the capacity of the Canadian Food Inspection Agency, particularly when it comes to ensuring there are more inspectors on the line. Oh, and he didn’t offer any apologies for his trip to Harrington Lake on the weekend, so there was also that. When asked about the issue of long-term care facilities (which is provincial jurisdiction), Trudeau did say they were working with the provinces to see about sending some additional funds to bolster salaries, so there’s also that.

Meanwhile, Vancouver’s city council tried to meet “virtually,” and here’s how that went down, in case anyone thinks it would actually go any better with 338 MPs in parliament.

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Roundup: Dire stats as Parliament is recalled

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It was a very busy morning – first, Statistics Canada released the March job figures, which were dismal – 1.01 million jobs lost, massive reductions in hours worked, but also (which everyone didn’t really report) that most of these jobs will likely come back once the pandemic measures are over with, which is significant. Following that, the federal Chief Public Health Officer, Dr. Theresa Tam, released some of the federal modelling on the course of the pandemic, which put everyone into a hot and bothered state.

When prime minister Justin Trudeau held his daily presser, he largely played the role of empathiser in chief – yes, these are all grim numbers, but we’ll get through them together. More to the point, we could be in this until summer, so it’s time to get used to our new normal, particularly if there are subsequent waves that follow this one (though those ones would likely not be as severe and wouldn’t require the same measures like the current lockdown – hopefully). He did also say that he respected parliament but then started making excuses for why he wanted a virtual one, and nope. Not going to fly, sorry.

It was announced later in the day that Parliament will be back on Saturday – 12:15 for the Commons, 4 for the Senate, which likely means Royal Assent by the time the day is over. That means that we’ll have yet more emergency legislation that gets maybe three hours of “debate” in the House of Commons, and that once again all of the negotiations have been done behind closed doors, and there will be no public record about what kind of amendments were requested and agreed to, which serves no one’s interests, particularly those of Canadians.

[Maclean’s has a new Q&A with Dr. Isaac Bogoch on questions people have about the pandemic]

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Roundup: A need to recall the House again

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The day began not with Justin Trudeau, but rather Andrew Scheer, who pre-emptively held a press conference to say that the emergency legislation passed last week wouldn’t cover the new wage subsidy, before he both took credit for things that I know for a fact he had nothing to do with, and demanded that the government cancel the increase in the federal carbon price (never mind that gasoline prices are at decade lows at the moment and the additional $10/tonne wouldn’t even be noticed) and that the CRA refund all GST and HST collected in the last six months.

When Trudeau held his own presser a short while later, he talked in large generalities about their three-point plan for the economy, with the CERB available as of Monday – and warned that people could get either the wage subsidy or the CERB, but not both – before saying that they were going to have to recall parliament again to pass yet more measures. (Reminder: I’ve been calling on Parliament to keep sitting as a skeleton crew this whole time). During the Q&A portion, Trudeau was again asked how long this was expected to last, to which Trudeau – and later his minsters – repeated that how long this lasts depends on everyone following directions and abiding by physical distancing (which apparently people are having difficulty with as Toronto is enacting even more measures to enforce it). At the ministerial press conference, Patty Hajdu stated that it looks like the federal stockpile for pandemics may not have been adequate in part because successive governments didn’t allocate enough funds to it – as said stockpile is now being distributed to provinces who are facing shortfalls in protective equipment while the government scrambles to source more of it both domestically and from abroad.

Bill Morneau and Mary Ng held their own presser with the details over the wage subsidy programme later in the afternoon, and said that it could be three to six weeks before this gets up and running (and it would have been nice if they could spell out the reasons why rather than just platitudes). The costs of this programme are also going to be very large, and you can bet that fuel calls for people to “restart the economy” sooner.

https://twitter.com/kevinmilligan/status/1245436895250632707

[If you’re following the mask debate, Dr. Theresa Tam outlined some clearer guidelines yesterday].

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Roundup: Supplies, spin, and rent

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Prime minister Justin Trudeau’s daily presser was on the theme of medical supplies – signing agreements with three major medical suppliers in the country, MOUs signed with five other companies, and some 3000 other companies who have volunteered to help the government with those supplies in whatever way they can. Trudeau also noted that they have allocated an additional $2 billion for new personal protective equipment, largely by way of bulk-purchasing, and that more supplies would be arriving within days. As well, the government is tasking its next-generation manufacturing supercluster with scaling-up these kinds of producers to meet the domestic and global demand. Why this became a somewhat fraught issue is because there are places in the country where PPEs are being rationed, and Quebec stating that they were days away from running out – though Trudeau said that in some cases, it may be the medical providers who were rationing because they were trying to preserve supplies for an anticipated surge of cases.

[Here is another Q&A with infectious diseases specialist, Dr. Isaac Bogoch, and a discussion on the current debate about masks.]

Meanwhile, the National Post hears from a bunch of government insiders who claim that the attempt to get the power of taxation without parliamentary approval was about trying to hold leverage of the big banks who have been reluctant to loosen lending requirements, which is an explanation that makes absolutely no sense, and makes me again repeat that there appears to be a cadre of jackasses in Morneau’s office who have been responsible for many of this government’s missteps and woes, and we shouldn’t trust them.

And while I’m on the subject of jackasses, I spent much of yesterday on the Twitter Machine trying to remind people that rent is provincial jurisdiction, so constantly hounding the federal government is a waste of time. This was met with numerous people who insisted that the federal government could invoke the Emergencies Act to claim that power. The mind boggles. Why in the hell would the federal government invoke the tool of last resort to intrude into landlord/tenant legislation when the provinces are perfectly capable of doing so on their own. It makes zero sense. Add to that the people crying out that the federal government should immediately give money to renters, as though there were a mechanism to do so. It’s taking the CRA three weeks to retool their systems to deliver the CERB, which is a pretty breakneck speed to ensure that the system can do what’s being asked of it and hopefully not fail doing it (because their computers are not magic, and you can’t just type “give everyone $2000” and expect it to happen. It’s impossible). And no, there is no analogous funding arrangement to healthcare or post-secondary, as others were trying to claim – those are funding envelopes to provincial governments that come with agreements. They don’t go to individuals, and they are not spending in provincial jurisdiction over the objection of any province. The number of people who seem to think otherwise is astounding.

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Roundup: A big wage subsidy

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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: A negotiated solution

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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: Social distance or else

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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: Closing the border (mostly)

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Another day, more social distancing restrictions put into place, with Ontario recommending that all restaurants (with the exception of take-out and delivery) and bars be shut, Calgary declaring a local state of emergency, and more cases mounting including three more deaths at a care facility in British Columbia. Justin Trudeau held a press conference early in the afternoon, where he declared that the border would be closed to non-citizen/permanent resident travellers – erm, except for Americans (and a few other exceptions) – which seems to be an action mostly to placate the those braying for more “decisive action” at this point given that it’s already in the country, and with all arrivals being told to self-isolate, I’m not sure the point. And the American exception may only be for a couple of more days, in large part because of the complex interconnections between the two countries that this can’t be done unilaterally. It also looks like CBSA has gotten their acts together with better screening questions at airports and airport authorities doing more to ensure proper social distancing than the chaos we saw over the weekend, so better late than never, I suppose.

https://twitter.com/PhilippeLagasse/status/1239615300225679360

https://twitter.com/PhilippeLagasse/status/1239617488188592128

As for the government’s pledge to help people pay their bills and rent, we are expecting more measures to be announced today, and we’ll see what kinds of policy levers they expect to use. On a broader scope, economists are saying that the measures to stabilize the market right now shouldn’t really be described as stimulus because of the nature of the shock, but that the stimulus will come later. Meanwhile, there is talk about the potential for a sharp rebound later in the year, once the temporary shock of the pandemic wears off.

https://twitter.com/kevinmilligan/status/1239604417340428288

Meanwhile, here’s an exploration of the uncharted territory that surrounds the invocation of the Quarantine Actand the Emergencies Act (which replaced the War Measures Act), as some have been suggestion, and how those may be a major test around Canadians’ Charter rights.

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Roundup: Caution – plummeting oil prices

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Oil prices started plummeting Sunday night as a price war opened up in the midst of declining demand due to the COVID-19 outbreak, and this is going to have a huge impact in Canada, not only with Alberta and Saskatchewan, but most especially with Newfoundland and Labrador, whose government relies very heavily on resource revenues. Add to that, this is going to put even more pressure on Bill Morneau and the federal government when it comes to how to deal with reforming fiscal stabilization in the upcoming budget, particularly if it’s also going to mean any kind of rebate for previous years’ stabilization (as Jason Kenney in particular has been demanding, under the misleading term of “equalization rebate,” even though it’s no such thing).

This may also touch off a new round of blaming Justin Trudeau for Alberta’s woes, when the oil prices are going to make things so, so much more painful for the province as they budgeted a ludicrously high amount for oil revenues. One might suggest that it would be a good impetus for the province (and the federal government) to redouble efforts toward diversification and a “just transition” away from the oil economy in that province, because the hopes for “just one more boom” get even further away, or even for the province to finally reform the revenue side of its equation and finally implement a modest sales tax that would stabilize its finances – but I have a feeling that Kenney won’t even contemplate those things. Blaming Trudeau is too easy, and lying to the public is so much easier.

Speaking of lying to the public, as certain other political figures fill the op-ed pages with a bunch of bullshit about how Alberta is “treated like a colony” as the Buffalo Declaration did (and no, I won’t link to the egregious op-ed in question), here is a great thread from professor Melanee Thomas as to why that kind of comparison is not only wrong, but wrong to the point of being actively racist.

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Roundup: Pallister makes a gamble

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Manitoba premier Brian Pallister announced yesterday that he was going to implement a carbon price after all – sort of. In a dare to the federal government, Pallister says he’ll stick with his originally planned $25/tonne price, and not raise it like he’s supposed with the rest of the country, but he would also reduce the province’s PST to compensate. Revenue neutrality can be a very good thing, but the point of having a common carbon price across the country is to have a level playing field so that provinces don’t undercut one another – which Pallister frequently ignores as he instead battles straw men about the efficacy of the province’s environmental plans (many of those mentioned having nothing to do with reducing GHGs).

While Pallister is confident that the Supreme Court of Canada will rule against the federal government on the upcoming carbon price challenges – which is a pretty risky gable to take – he’s daring the federal government to do what they said they would, which is to continue making up the federal carbon price with a separate carbon levy on top of the provincial one, which would continue to be rebated to taxpayers by the CRA. None of this makes much sense as a strategy other than the fact that it lets him proclaim that he’s lowered the PST in order to get the plaudits for that.

Meanwhile, here’s Dylan Robertson with some additional context:

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