Tag Archives: Bank of Canada

Roundup: The Norman trial collapses

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As expected, Crown prosecutors announced yesterday that they were staying the breach of trust charges that had been laid against Vice Admiral Mark Norman regarding the leaks of cabinet confidences related to a shipbuilding project, and people who don’t pay attention to details decided that the timing was suspicious and spun a number of conspiracy theories, many of them around the fact that Andrew Leslie was due to “testify against” the government. (Reality check: Leslie agreed to be a character witness for Norman months ago, and PMO was fully aware and there were no indications that they tried to dissuade him from doing so). With that out of the way, Norman made a statement about bias and presumption of guilt by senior levels of government, and his lawyer, the formidable Marie Henein, threw shade at PMO – stating that while the prosecutors acted independently, she felt PMO was withholding documents for far too long in the process – and the suggestion is that some of the Harper-era documents were what eventually exonerated him (though the Crown attorneys said there was no one piece of evidence that was responsible). As this was happening, Harjit Sajjan announced on his way into caucus that the government would pay Norman’s legal expenses. Norman later met with the Chief of Defence Staff, General Jonathan Vance, who said that with this out of the way, that Norman would be returning to duty soon, though we’ll see if it will be back as vice-chief of defence staff, as the role has since been filled by someone else. There are lingering questions – lots of them – about what happened here, but there aren’t likely to be many answers anytime soon given that the trial for the bureaucrat also charged with leaking information is coming up.

And great Cyllenian Hermes, were there a lot of hot takes on the end of the Norman trial today. Christie Blatchford described Norman’s ordeal, while Andrew Coyne has so many questions. Susan Delacourt and Matt Gurney both point out that this could remove one controversy from Justin Trudeau’s plate before the election, but both point to the lasting reputational damage that this has helped to inflict on Trudeau.

I have a few comments of my own that nobody seems to have brought up – one of them is to point out that the RCMP unit that investigated the leak was apparently the same one who investigated Senator Mike Duffy, and so ballsed up that investigation that we all know how it ended. Perhaps we should question whether this investigative unit is very good at their jobs. The other thing that bothers me in this whole affair was less about the leak than it was about what appears to be a high-ranking military official who balked when Scott Brison, the Treasury Board president, put the process on pause so that they could examine the sole-source contract granted by the previous government (as is the official version of events). Remember that this contract was granted after the House of Commons rose for the summer (and before the election call), and when Senators raised it while they still sat, the government offered no clarity or details, so there was no proper scrutiny at the time. That matters. But whether Brison paused the process to examine it, or to possibly open it for tender, it shouldn’t have been for Norman to work his contacts to try and pressure the government to resume the process (as is the allegation), because that undermines the civilian control of our military. Nobody is talking about his angle, which I think needs a better airing in all of this.

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Roundup: Untenable ideas that get print

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There were a couple of pieces over the weekend that had me scowling a little, mostly because they don’t seem terribly well thought-through when you actually delve in a little. One of them was a piece in Maclean’s that used polling data to posit the idea of a Green Party-NDP merger which is a bit silly because the parties are nothing alike in the slightest. The premise that they both claim to care about the environment and appeal to youth is flimsy on its face, because the Greens aren’t really that “progressive” of a party seeing as the federal party came into being with a lot of disaffected Red Tories in their mix, and if you delve into some of their non-environmental policies, there’s not a lot of millennial progressivity in there. (Seriously, it’s a dog’s breakfast of things, as they discovered in the last election when it turned out that a bunch of their social policies were written by men’s rights activists, given that there is a lack of adult supervision when it comes to policy development in that party). Add to that, the party cultures are essentially night and day – the NDP are centralizing and are about solidarity at all costs (and they rigidly enforce it), while the Greens are decentralized to the point of practical incoherence. I get that there is going to be a bit of a fad in political circles right now that believes that Alberta “proved” that mergers work given the Progressive Conservative + Wildrose Alliance “merger” into the UCP was prototypical, but that would be looking at quantitative data over qualitative – and the UCP is still young.

The other piece that deserves some consternation was Justin Ling’s op-ed that suggested that co-leaders would be a great thing for parties to deal with the problem of presidentialised leadership politics, and look how great it’s working for Quebec Solidaire. Err, except the solution to our presidentialised leadership politics in this country isn’t to share power, but rather to restore the selection and firing process to the hands of caucus. The biggest flaw in Ling’s argument, however, is that it’s antithetical to the way in which our system is structured, which is that it’s about giving advice to the Queen (and by extension, the Governor General/lieutenant governor). That requires a single voice – which is why Cabinet Solidarity is a Thing – and it’s also to create a single point of accountability. If you have dual leadership, then it becomes harder to pin blame. It also has more than enough potential to create factionalisation within parties more than we have already, as different parts of the caucus align themselves behind one co-leader or the other in power struggles. As with so many of these kinds of reform ideas, they sound interesting on the surface, that’s about it.

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Roundup: Vetting judges? Oh noes!

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Yesterday the Globe and Mail had a story about how the current government will run potential judicial nominees through the Liberal party’s voter database as part of the vetting process, which was followed by an analysis of how many appointees were Liberal donors. This first came up weeks ago when yet another Jody Wilson-Raybould-related leak revealed that she was trying to “depoliticize” the appointment process by not providing certain information to PMO when she passed along recommendations, which is a problem – not that it was framed that way. This current story follows up on that, and has a few framing issues of its own. There are a few things to unpack in this, but first of all, I’ll let Adam Goldenberg point out a few issues with this analysis:

https://twitter.com/adamgoldenberg/status/1121013782795497478

https://twitter.com/adamgoldenberg/status/1121013787128156160

https://twitter.com/adamgoldenberg/status/1121013789766369280

https://twitter.com/adamgoldenberg/status/1121024056663400448

With this in mind, I have a few thoughts of my own – first of all is that I think Goldenberg is correct in his reminder that vetting includes political vetting – and the party’s database (as Susan Delacourt noted on Power Play) contains more than who donated – they will collect all manner of information as part of their construction of voter profiles, so it makes sense that they would also run potential appointments through this. (The fact that parties don’t have stringent privacy rules around their databases is a discussion for another day). Why? Because the prime minister is ultimately politically accountable for all Governor-in-Council appointments, and that includes judges. And so long as the prime minister is politically accountable, I think it’s reasonable that his office does whatever vetting they deem necessary – and there’s nothing in here to indicate that they’re checking to ensure that they’re voting for Liberal partisans, which we need to keep in mind.

The other aspect of his story that makes me a bit queasy is the implication that there is favour being shown to Liberal donors – and the math bears out a little bit that while seventy percent of appointees hadn’t donated to anyone, twenty-five percent of them donated to the Liberals, which is disproportionate to other parties. But we also need to remember a few things, the primary one being that we need to stop treating political donations as a bad thing. The donation limits in this country are quite small – you’re not going to bribe someone for $1200, let’s face it – and we donations are a form of engagement. Engagement is a good thing. The more we stigmatize past political donations – and those donations could be for a variety of reasons, such as an acquaintance running in a local campaign, or because they wanted the tax receipt – the more we send the message that engagement is bad, which is the very opposite of what we should be doing in a country where we already have abysmal levels of engagement, whether it’s taking out party memberships, donating, or volunteering (and yes, Samara Canada has done research on this). Pearl-clutching stories like this just reinforce this narrative, which is bad for democracy.

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Roundup: A hung parliament in PEI

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The PEI election did not result in a Green Party majority, because shockingly, the polls were wrong. It did result in a hung parliament, which has never happened before in that province, and yet every single media outlet and then the prime minister himself declared that the progressive conservatives had won a minority. Err, except we don’t know the composition of the next government yet because the lieutenant governor hasn’t invited anyone to form government, and the seat distribution – 12 PC, 8 Green, 6 Liberal – is one where it’s not actually clear that the PCs will form government, as a Green-Liberal coalition remains more than possible. Which isn’t to say that it will happen, but there is a way in which government formation works in a Westminster system, and simply winning the most seats, even if you don’t win a majority, doesn’t mean that you get a chance to form government. It doesn’t work that way! And it would be really great if the media would stop creating this false sense that it works that way, because it doesn’t. And even if the PCs do form government, they will need one of the other parties to prop them up, and that will have a significant effect on the shape of that government. Pre-empting the lieutenant governor’s call simply invites confusion, which we should probably be avoiding.

Happily, the province’s electoral reform referendum also went down in defeat (and this is another place where the urban-rural split will likely be evident). Hopefully this means that the advocates will shut up about it because they keep losing. I know they won’t – they’re convinced that people just don’t understand or are too stupid to realise that PR is so good for them (it’s not), but you would hope that the constant defeats would be some kind of dissuasion.

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Roundup: No contrition

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Despite the Liberals having floated that the notion that Justin Trudeau may be striking a more conciliatory tone over his handling of the Double-Hyphen Affair, when he called an early morning press conference before getting on a plane to Iqaluit (and having to turn back because of weather), Trudeau was decidedly not conciliatory. Or apologetic. But he did say that they were always learning lessons, and this too was one more of them. Of course, I’m not really sure how conciliatory he really could be – he has basically boxed himself into a corner where he can’t admit wrongdoing, because that would mean he undermined the rule of law, but he also has to look like he’s sensitive enough as to why Jody Wilson-Raybould resigned while still trying to brazen it out. It’s one hell of a juggling act, but nobody seems to be buying it. And so, while mouthing words about leadership styles and trying to put forward the notion that Wilson-Raybould didn’t come to him with her concerns where the door was open, one of his soon-to-be departing MPs, Celina Caesar-Chavannes tweeted that she tried to do so, twice, and was apparently rebuffed (and then refused all media entreaties to clarify). So there’s that.

In related content, some Indigenous and Métis leaders say that Wilson-Raybould could have effected real change had she taken over the Indigenous Services portfolio that she rebuffed. Here’s a list of outstanding questions we have after discrepancies between Wilson-Raybould’s testimony, and that of Gerald Butts and Michael Wernick. And since the opposition members of the justice committee have seen fit to recall the committee next week, they may have the opportunity to call past witnesses back…again. The National Postrounds-up the international and Quebec reactions to the ongoing story. And of course there are the premiers of Saskatchewan and Alberta (and Brad Wall) whinging that this shows special consideration for Quebec-based jobs, while conveniently ignoring that Trudeau bought a pipeline and has been shovelling federal dollars into the energy sector of late. Here’s a look at what a 10-year ban on federal contracts could mean for SCN-Lavalin, as they are now lobbying for leniency if they are convicted, and updates to the integrity framework could be flexible enough that they could avoid debarment.

In pundit reaction, Chris Selley is having none of Butts’ explanations for the Cabinet shuffle math. Jason Lietaer offers suggestions as to how Trudeau could have fixed the situation (but that would mean showing contrition, which is risky for him to do). John Geddes makes the point about how Trudeau promised not to centralise power in his office, but certainly appears to have anyway. Robert Hiltz has a hard time figuring out just what lessons Trudeau says he’s learned, given that he seems oblivious to it all.

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Roundup: Feelings over civics

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Over the course of the weekend, I’ve been giving a great deal of thought to the Supreme Court of Canada’s decision in Frank v. Canada (Attorney General), 2019 SCC 1 – the decision about expat voting rights – and I still can’t bring myself to conclude that they the majority got it right. I’ve read over the decision and found myself greatly annoyed by the fact that majority simply shrugged off the very real issue of constituencies and local elections, and that in his concurring reasons, Justice Rowe mentioned them but shrugged them off. And while people will criticise the reasoning and analysis employed by the dissent from Justices Coté and Brown, they at least did pay particular and necessary attention to the issue of constituencies as it relates to our system – and the rationale for the five-year limit (in that it is the constitutional maximum length of a single parliament). And I can’t let this go, because five of seven justices of the Supreme Court failed to properly understand the importance of constituency-based democracy (and I think the Attorney General’s office also bears a particular amount of responsibility for not making the case adequately either).

To reiterate – we vote for local representatives. We don’t vote for parties, or party leaders, no matter what we may have in mind when we go into the ballot box – we mark the X for the local candidate, end of story. For an expat, it’s not the connection to Canada that should be at issue – it’s the connection to the riding, because that’s how we allocate our votes. The dissenting judges got that, but the majority and virtually all of the commentary I’ve seen on the matter ignored it, despite it being the first principle of our electoral system. The Attorney General focused on the “social contract,” which the majority decision hewed to, and there was a lot of talk about feelings and “progressive enfranchisement,” but feelings are not how we allocate votes in this country. Ridings are, and as warm and fuzzy as you feel about Canada, it’s the riding that ultimately matters. I feel like we’re rewarding civic illiteracy on a grand scale with this decision.

To that end, here’s Leonid Sirota offering his analysis of the decision, and University of Ottawa law professor Mike Pal’s thoughts in this thread. And here’s Emmett Macfarlane to pick apart the decision further (though we will disagree on the outcome).

https://twitter.com/EmmMacfarlane/status/1083740974008815617

https://twitter.com/EmmMacfarlane/status/1083743192225177601

https://twitter.com/EmmMacfarlane/status/1083744829278871552

https://twitter.com/EmmMacfarlane/status/1083745335044755456

https://twitter.com/EmmMacfarlane/status/1083747918736023552

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Roundup: A subdued oil price shock

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The Bank of Canada decided to hold on raising interest rates yesterday, but there were some very interesting things in the accompanying Monetary Policy Report that haven’t been widely reported on, and much of that was the whole section in the report on the state of the oil industry in Canada. (It’s pages 9 and 10 of the report – PDF here). Essentially, for all of the talk about economic doom for the current state of oil prices and the price differential, this current price shock is affecting the Canadian economy at a quarter of what it did in the 2014-2016 price shock, and there are a couple of reasons for that. One of them is that the oil sector is no longer as big of a part of the Canadian economy as it was then – it’s currently worth 3.5 percent of our GDP, while it was six percent just a few years ago. That’s fairly significant. As well, after the previous price shock, most energy firms are better equipped to handle the low-price environment thanks to innovation, improved efficiency and the fact that they already cut overhead costs. Add to that, our low dollar is providing a buffer effect because it supports non-energy exports and employment. In other words, while it’s softened the economy a little over the past quarter and the current one, this is projected to be shrugged off as the rest of the economy continues to pick up steam, and we’re likely to continue growing at a greater pace, because the rest of the economy continues to be running close to capacity. Even some of the areas of potential slack that have been identified, such as lower-than-expected wage growth, are mostly because the situation in Alberta is dragging down the national average. So perhaps it’s not all doom after all.

One other particular note from the morning was that Bank of Canada Governor Stephen Poloz made a couple of remarks around his hometown of Oshawa, and how it’s managed to weather previous plant closures and how its resilience means it will likely weather the pending closure of the GM plant as well as it did previously.

Meanwhile, Kevin Carmichael walks us through the morning’s decision, and some of the reaction to it.

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Roundup: Dishonest blame-laying

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As this so-called convoy of “yellow vest” protesters moves eastward toward Ottawa, many of them demanding magic wands to expedite pipeline approvals that won’t actually happen (seriously, trying to fast track and cut corners is what got approvals thrown out in the courts before), I find it exceedingly curious – and a bit alarming – that Jason Kenney refuses to denounce some of the elements that have attached themselves to these “yellow vests,” most especially white nationalists and racists who are trying to use these rallies to agitate against immigration and asylum seekers. Kenney simply waves them off as a “handful” of people with “kooky ideas,” while he takes the intellectually dishonest route of blaming Justin Trudeau and Rachel Notley for Alberta’s oil sector woes, never mind the global supply glut, the shale revolution, and market inertia, or the fact that capacity only became an issue in recent months when production increased – or the fact that when he was in federal cabinet, pipeline projects weren’t making any faster progress either.

Trudeau and Notley didn’t create the problems of consultations on Northern Gateway. They didn’t create the market condition problems for Energy East. They didn’t create the American regulatory issues around Keystone XL. Trudeau bears some responsibility for the consultation issues around the Trans Mountain expansion, but that also has to do with institutional inertia and how bureaucratic Ottawa and the NEB in Calgary thought of Section 35 consultations in spite of successive Supreme Court of Canada rulings. These are broad and, in some cases, intractable problems for which easy solutions don’t exist, no matter what Kenney or Andrew Scheer say. Putting the bulk of the blame on Trudeau and Notley is completely and utterly dishonest, and Kenney knows it. But why does truth matter when you’re trying to stoke anger to win points?

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Roundup: Sorry for the service interruption

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Hey everyone – sorry for the service interruption! Malware sucks. Fortunately, it’s been taken care of and I have new preventative measures to ensure that it won’t happen again in the future, but that also costs me a lot more money to run this site than it used to, so if you can, please consider becoming a patron (and you get some exclusive content to go along with your support). Thanks again for your patience with this.

Good reads:

  • This week’s first ministers’ meeting is expected to get testy, and lo, the oil and gas sector is not explicitly on the agenda (to which Trudeau insists it’ll get discussed).
  • Oh, look! Data on rural work camps and violence against women! It’s something that does happen, despite the Conservatives deriding the association made.
  • Dairy producers are the beneficiaries of import quotas under TPP rules (and lo, I wrote about this being likely two months ago based on the CETA experience).
  • Federal lawyers are objecting to the UCP trying to join the Saskatchewan court challenge on carbon taxes. (It is unusual for opposition parties to be party to a case).
  • A lot of doubt is being raised as to whether the government will actually end arms sales to Saudi Arabia.
  • Apparently Canada’s “feminist” foreign aid policy is too unfocused and spread too thin to have a meaningful effect (not to mention is underfunded).
  • The Commons foreign affairs committee was supposed to have an in-camera meeting with Chinese officials, but that has been cancelled.
  • The Privacy Commissioner is calling for tougher digital privacy laws.
  • Environment Canada is an outlier in that it generally doesn’t track the e-waste of its weather balloons (in part because it’s too costly as we’re a vast country).
  • The CFO of Hwawei was arrested in Vancouver for extradition to the United States, and that could trigger backlash from China.
  • Raj Grewal’s lawyer says that all of Grewal’s gambling loans were from friends and family, and are entirely traceable.
  • Ontario’s chief controller resigned after she refused to sign the Ford government’s attempt to sell the “true” size of the deficit as $15 billion.
  • The New Brunswick premier wants Energy East to be revived, but TransCanada isn’t interested. It’s like there are economics at play!
  • Kevin Carmichael looks at the Bank of Canada’s sudden caution on raising interest rates, in large part because of the oil price shock.
  • Colby Cosh looks into Statistics Canada’s programme of testing municipal wastewater for signs of cannabis consumption.
  • Chantal Hébert looks at the federal-provincial  battles over pipelines, that will play out well after the next election.
  • Chris Selley disputes that there’s a crisis around the French language in Ontario.
  • Andrew Coyne looks at how far Andrew Scheer is willing to go to get the far right vote on the immigration issue as he rails against the UN global migration compact.

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Roundup: A StatsCan privacy check

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While the ongoing issue of Statistics Canada looking for financial transaction data continues, the actual privacy practices in the institution aren’t being adequately explained to Canadians – and they certainly aren’t being represented accurately by the opposition. So with that in mind, here’s professor Jennifer Robson to explain just what she has to go through in order to access data for her research at StatsCan, in order to give you a better sense about how seriously they take this kind of thing.

https://twitter.com/kevinmilligan/status/1059641954021990400

This is why the complaints that the data won’t be secure as it’s being anonymized is pretty specious, and the pearl-clutching that StatsCan would have a person’s SIN is also overblown considering that they already have it – they matched up people’s tax returns with their census forms to ensure that they had accurate data regarding household incomes, and lo, nobody made a peep about that when it happened. Again, this overblown rhetoric around what is being planned about this financial transaction data is not only risible, but it’s actively mendacious (particularly when Conservative MPs keep saying things like this is a project by the Liberal Party or by Justin Trudeau himself). And yes, StatsCan has done a woeful job as to explaining what it needs these data for, and this government is largely too inept to communicate any of that information either. And yet here we are.

Meanwhile, Andrew Coyne points out that while the Conservatives have been spending years attacking StatsCan, the real privacy threat comes from the unregulated use of personal information by political parties, not the country’s statistical agency.

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