Roundup: It’s all coming back to me now

As Jason Kenney continues his bellicose demands for a revival of the Energy East project, it seems that his arguments have a certain familiar ring to them. Wait for it…

Anyone who has paid any attention to the Energy East demands for the past few years will note that there is a definite NEP 2.0 sensibility to them – especially the notion that in the name of “energy security,” we should repurpose this pipeline/build a new segment to the port of Saint John, where there is a single refinery that can handle limited amounts of heavy crude, and that the Irvings should either be forced to accept said Alberta heavy crude at a cost of an additional $10/barrel than they can currently import cheaper, lighter crude from abroad that their current refinery can handle, and that consumers in Atlantic Canada should be made to pay more for their gasoline for the privilege of it coming from Alberta – because I’m not sure that Alberta is going to accept the $10/barrel discount on their crude when they already are suffering from low global oil prices that have made many new oilsands projects economically unviable. Never mind the similarities of this scheme to the original NEP, for which Alberta has created a grand myth about the Great Satan Trudeau (even though the resulting closures in the industry had more to do with the collapse in global oil prices and global recession that happened at the same time) – the cognitive dissonance will not hold.

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Roundup: The Energy East distraction

After wide reporting that Jason Kenney’s poll numbers have been tanking and that he’s currently tied with the provincial NDP, it was predetermined that Kenney was going to have to start coming up with something new to blame the federal government about in order to whip his voter base into a new round of irrational anger. He also, apparently needed to provide some cover to his friend Erin O’Toole after O’Toole’s meeting with the Quebec premier, and so Kenney’s distraction of choice was going to be Energy East, and blaming the federal government for its demise. Of course, that’s not true at all, and energy economist Andrew Leach has the receipts.

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Roundup: PBO on thin ice

Comments made the Parliamentary Budget Officer over the weekend should have him very nervous for his future, as he is straying far beyond his mandate. The PBO, Yves Giroux, was in the media saying that current deficit levels are “unsustainable” within one or two years, which both misreads the current situation, and is venturing into opining on policy choices, which is not his job.

As an Independent Officer of Parliament, he has a certain degree of latitude for doing the job he is tasked with doing, which is to provide costing for proposals on demand by parliamentarians – something which can be a very creative exercise at times – and to provide independent fiscal forecasts of federal budget numbers – also something which has been made redundant because the Department of Finance doesn’t publish their forecasts any longer as the current practice is to take the average of the top twenty private sector forecasts and use those in budget documents. But he’s not invulnerable – Independent Officers can still be fired for cause, and Giroux seems to be flirting with that line.

It’s possible that Giroux doesn’t understand just what he’s doing when he’s answering these media requests, but it’s not the first time that he’s said dumb things in the media, such as a few weeks ago when Bill Morneau resigned that it was akin to “changing pilots mid-flight” (apparently unaware that this is actually standard practice on long-haul flights). He’s supposed to be a lot more circumspect, by virtue of his position, and not offer up any kind of opinion on policy choices. He is not there to second-guess the government and its actions – this is not a technocracy. He is supposed to provide cost estimates when asked, and provide independent forecasts (and as we saw in the election, sometimes he has trouble with the former when he simply put certain parties’ promises on his letterhead without actually doing any analysis of them). Offering opinions on policy choices impacts his ability to be independent, which he should know if he had any particular sense about him. I suspect that someone – perhaps a former PBO who is feeling particularly charitable – needs to pull him aside and to tell him to stop answering all of these media requests, and if he does accept them, to stick to the very narrow contents of his reports. His predecessors largely did not have this problem. Other Officers of Parliament do not have this problem. He needs to undertake to rectify it.

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Roundup: The inertia around solitary

The story of what happened with the panel the government assembled to oversee its supposed elimination of solitary confinement in federal penitentiaries has been a slow-burning story this week, but indicative of some of the incomprehensible ways in which this government operates. The practice of solitary confinement has been declared inhumane and contrary to the Charter by courts across the country, and the government promised to reform it with these “structured intervention units,” but that was already dubious, and unlikely to satisfy the courts – and they knew that, but went ahead with it anyway. A year later, the panel that was supposed to oversee it quit in frustration because they couldn’t get any information they needed to do their work (and the Correctional Investigator gave Correctional Services a pass on this because apparently, they’ve been implementing new software and this has been a problem). But it was only when this story leaked thanks to Senator Kim Pate that Bill Blair sprang into action, promising to reappoint the panel and implement a “work plan” to get them the information.

Well, turns out members of that panel aren’t exactly keen to be reappointed because they’ve been jerked around for a year, and were doing this on a volunteer basis, which cost them a lot of time and money for nothing but headaches. But this all feels like another case of this government meaning well, and talking a good game without doing the actual work involved and then hoping that everything will be forgiven because they have good intentions. That’s not good enough, and yet they keep behaving like that’s all well and good. It’s not.

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Roundup: A curious set of leaks

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

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

https://twitter.com/mattgurney/status/1296952196022571009

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

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Roundup: Outlining the transition steps

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

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

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

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

https://twitter.com/LindsayTedds/status/1296646779639746560

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Roundup: Bill Morneau makes himself a bigger target

As if the WE Imbroglio couldn’t get any more ridiculous, Bill Morneau stepped up to the plate yesterday and drove it to an all new level of lunacy by declaring that he had just repaid some $40,100 in travel costs to WE after they sent him and his wife on tours of some of their operations, and he didn’t realize that they hadn’t been billed for the full costs. WE later said that they were ostensibly free trips because the pair are well-known philanthropists, and these kinds of trips help showcase their work to potential donors. It would also appear that these weren’t reported to the Ethics Commissioner, if I’m reading it correctly, so that means even more problems for Morneau coming at him. (And before you make the joke, no, Morneau did not previously “forget” about his French villa – he incorrectly reported its ownership structure).

Morneau was, of course, appearing at the Finance committee to answer questions on the WE Imbroglio, and this sent Pierre Poilievre and Charlie Angus in particular over the edge. Already there were more questions raised about the contract with WE over the student grant programme because they had signed it with one of the charity’s holding companies, but that may have been about limiting liabilities, so it could be explained away, but it has all become byzantine both from a lack of government candour (shocking, I know), and because the opposition has constructed conspiratorial narratives that have taken any facts and shaped them in the darkest way possible, so as to make it difficult to figure out what is going on.

And this is only going to spiral from here on out. While the Conservatives and Bloc are now howling for Bill Morneau to resign, both Justin Trudeau and his chief of staff, Katie Telford, have agreed to appear at committee at a future date to be negotiated, so that is going to be nothing shy of a circus. And because the circus did not have enough monkeys, conspiracy theorist Vivian Krause also appeared at committee yesterday, for some unknown reason, to assert – with no evidence – that WE was passing along information to the Liberal Party for their voter identification database (which was denied by both WE and the Liberals), and yet this was being brought up in the Commons, and in some irresponsible reporting.

https://twitter.com/acoyne/status/1286029728982478848

Meanwhile, Justin Ling has a broad exploration of the bigger picture of what the whole Imbroglio says about this government and WE, particularly when it comes to the power of branding. Heather Scoffield lists the ways in which Bill Morneau has managed to be off-side because he’s blind to the ethics implications of his decisions. And to remind everyone about this column I wrote a couple of weeks ago about why it was time for Morneau to be shuffled from Cabinet before all of this WE business started up, which really starts to look like it’s untenable that he remain in the position much longer, not only because he can’t communicate, can’t deal with the business community, and now because it’s unavoidable that he is completely blind to his ethical obligations.

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Roundup: A shock-and-awe number

The Conservatives are crowing about their membership numbers in the lead-up to their leadership vote, where some 269,000 Canadians are now eligible to vote – not that they all will, but it’s a shock-and-awe number that they say are bigger than any previous Conservative (or its predecessor parties’) leadership contest – though not quite as large as the Liberal contest that elected Justin Trudeau. And while on paper it’s great that there are so many people who have joined the party, this is one of those traps that have created so many of our problems in this country.

The original sin in Canadian politics was the Liberals’ decision in 1919 to move away from caucus selecting their new leader after Wilfrid Laurier’s death to a delegated convention. From then on, under the guise of being “more democratic,” they ensured that their leaders could henceforth not be held to account by the MPs of their caucus – nor the party, really, because “leadership reviews” are largely bogus exercises (sorry, Thomas Mulcair!). And what ends up happening is that when you have a big number like 260,000 party members, when the leader who winds up being selected in this manner gets into trouble, he or she tells their caucus “I have the democratic legitimacy of these 269,000 votes – the average riding has 75,000 electors. I have the bigger mandate.” It has been the way in which the centralization of power has been justified, and all of abuses of that power have followed.

The other problem is that these kinds of memberships tend to be transactional for the duration of the leadership contest. A good many of these members won’t stick around and to the work of nominations or policy development, which is another reason why these shock-and-awe numbers wind up being hollow in the long run. We do need more people to take out party memberships in this country, but it has to be meaningful engagement, and a leadership contest is not that. It only serves to perpetuate the problems in our system.

 

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Roundup: An apology on the second attempt

It was prime minister Justin Trudeau’s first presser since the WE Imbroglio blew up over the revelations of his family being paid speakers for the charity, and there was a definite note of contrition this time. After hinting that the government would extend the wage subsidy until December with details coming later in the week, a mention of his call earlier in the morning with Donald Trump that touched on tariffs, Black Lives Matter, and China, and a promise on further updates on the Safe Restart Plan with the provinces to come later in the week, Trudeau turned to his mea culpa on the Imbroglio. “I made a mistake in not recusing myself from discussions, and I’m sincerely sorry about not having done that,” Trudeau said. He praised how the government got creative with designing programmes during the pandemic, and how they had worked with a range of partners to make it happen, but he was sorry that he didn’t remove himself from the discussions with WE, and that he was frustrated that youth would have to wait longer to do their party to serve because of the mistakes he made. (I would argue that WE’s plans raised a lot of red flags too, for what it’s worth). When asked if he would appear before committee to discuss what happened, Trudeau was non-committal, but in a hung parliament, he doesn’t have the votes to shield himself this time.

During the Q&A, he said that he pointed out to Trump about the disruptions to the aluminium supply chains and hoped that they wouldn’t see tariffs that would only slow down the economic recovery; he also mentioned that there were ongoing discussions around the border, but the rest of the time was spent reiterating, over and over, that he didn’t have the details on what his family members had been paid by WE and that he should have, and that he did seem to have some reflection that he needed to be careful on this file because of his past activity with the charity but that he didn’t go far enough and should have removed himself entirely from the conversation. Later in the day, Bill Morneau sent out his own apology for his own failure to recuse himself given his daughters’ activities with WE.

For what it’s worth, there seems to be some kind of learning curve because it only took the second try for Trudeau to give an apology rather than stick to talking points aimed at deflection until the conclusion of the Ethics Commissioner’s report, at which point there would be either an apology or admission of some kind of wrongdoing and a promise to do better next time. This time, we managed to skip weeks of such failed damage control, so that’s something, I guess.

Meanwhile, Susan Delacourt finds herself wanting when it comes to Trudeau’s explanation for how the whole thing went down, and hopes that he’s saving it for his discussion with the Ethics Commissioner. Matt Gurney gives credit where credit is due for Trudeau learning enough to make a rapid admission and apology rather than dragging things out for months. Paul Wells is unimpressed with the apology and wants a full accounting of what happened, particularly as it is increasingly evident that things were wrong with the WE contract outside of the apparent conflict of interest, and how those decisions were made need to be aired.

Good reads:

  • Ruh-roh! It looks like the federal government wasn’t enforcing the rules around temporary foreign workers, which allowed outbreaks to occur on farms.
  • Here is some number-crunching on the PM’s daily pressers in the first phase of the pandemic and lockdown, including on his choice of verbs and phrases.
  • The RCMP have charged a Quebec man with calling for Justin Trudeau’s death and the eradication of Muslims.
  • Former Liberal MPs who lost their seats in the last election are waiting to hear about nomination contests so they can be ready to run again.
  • Leona Alleslev has resigned as deputy leader of the Conservatives to more vocally back Peter MacKay, who says that no promises were made for her support.
  • Maclean’s has a profile of Conservative leadership candidate Leslyn Lewis.
  • Jason Kenney is accusing the federal government of preventing Apple from fixing the province’s contact tracing app, which requires iPhones to be unlocked to work.
  • Kady O’Malley’s Process Nerd column looks at the options for calling prime minister Trudeau to committee to testify on the WE Imbroglio.
  • Heather Scoffield is frustrated by the vague answers being given on the extension and amendments to the wage subsidy programme.
  • Colby Cosh recounts how Alberta has abolished its last vestiges of prohibition, by allowing liquor sales in Mormon-centric towns that were still “dry.”

Odds and ends:

For the CBA’s National Magazine, I wrote about Friday’s Supreme Court decision on genetic privacy, and what the broader implications of the ruling are.

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Roundup: Yet more questions about the WE contract

The whole situation with the sole-source contract for WE Charities continues to spiral, as one of the co-founders was found to have claimed that PMO reached out to them shortly after the April announcement on the creation of the student grant programme – only for him to have since retracted and said that he was over-enthusiastic, and it was really a senior bureaucrat from Employment and Skills Development Canada. PMO has also since denied making contact, and senior bureaucrats have stepped up to say it was them, but while that may in fact be the case, it’s still the minister who is responsible for the decision, and I don’t see any minister stepping forward on this. It just goes back to this government’s complete inability to manage their own crisis communications without stepping on six more rakes along the way. It’s complete amateur hour.

https://twitter.com/EmmMacfarlane/status/1278109329279848451

https://twitter.com/EmmMacfarlane/status/1278110217339797514

https://twitter.com/EmmMacfarlane/status/1278111038089674752

On top of this, it sounds like part of the way in which WE is managing this programme is to offer $12,000 payments to teachers who can recruit 75 to 100 students, and to be their mentors and managers along the way, which is unusual. It also raises the question of how this was what was so imperative about how this organization was the “only one” capable of administering the grant programme if this is how they’re running it. All the more reason for MPs to call an emergency committee meeting and haul the responsible minister and deputy minister before them to answer questions and provide documentation that proves that WE was the only outfit that could meet their criteria – you know, like it’s their job to.

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