Roundup: Previewing more subsidies and army intervention

Monday’s presser from prime minister Justin Trudeau provided a few more details on the planned wage subsidy, and made it clear that this was no longer just going to target small and medium-sized businesses, but businesses of any size, including those in the charitable and non-profit sectors – provided they see a 30 percent drop in revenues as a result of the pandemic. It’s a very big outlay by government, which is predicated on the notion that once the pandemic is effectively over, it will shorten the time needed to get the economy back in gear. The real details on the programme won’t be unveiled until later today, with ministers Bill Morneau and Mary Ng, but the assurances to businesses not to let their staff go is being signalled very loudly – as was a warning that businesses shouldn’t try to game this subsidy because when the audits are done after this is over, there will be consequences for those who do (though Andrew Coyne makes a very good point about how that may go). Trudeau also noted that the Canadian Forces have been put on alert, and that 24,000 troops who are set to be deployed have already been sequestering themselves so as to avoid any potential infection. The real distinction worth pointing out here, however, is that it’s less that they’re planning on using troops to police quarantine zones, but rather to ensure that they are there to help deal with floods or fires that may happen during this particular period – given that it is the season for floods especially – when communities are at reduced capacity.

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Meanwhile, there does seem to be a sense of frustration and fear among medical providers across the country, particularly with the rationing of personal protective equipment as supply chains are affected. Some doctors are threatening to walk off the job if they can’t get the equipment they need, which is obviously something nobody wants.

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Roundup: A big wage subsidy

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

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

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

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Roundup: Suspended for negotiations

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

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

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

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Roundup: Tightening the border even more

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

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

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

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Roundup: States of public health emergency

States of public health emergency were declared in Ontario, Alberta, BC, and PEI yesterday, and no doubt more to come, while Justin Trudeau mused that there could be situations where the government may have to invoke the Emergencies Act, so things got pretty serious yesterday. Mind you, his ministers who also were facing the media yesterday also stated that they wouldn’t invoke the Emergencies Act without provincial consultation, and there was some explanation on one of the political shows that it would likely only be invoked because there was some kind of gap in the powers available to one level of government or another if the situation worsens. We’ll see. (Here’s more on what invoking it would mean). Trudeau also said that they may need to temporarily recall Parliament (almost certainly with a minimum quorum of 20 MPs) to pass this or any other particular EI or tax measures, so we’ll have to keep an eye out for that in the coming days. Also announced was up to $5000 loans for those who need help returning to Canada or who need assistance if they can’t get back (and some travel insurance is facing restrictions if people don’t return ASAP).

We’re also expecting the first tranche of stabilization or bridge funding today (not “stimulus”), which is expected to be in the range of some $25 billion. As well, the National Post is reporting that CRA will extend the tax filing deadline by a month, which should be also announced later today.

Meanwhile, Heather Scoffield says that Trudeau needs to act fast to help vulnerable workers, and that today’s aid package will determine just how serious he is about his pledge to have Canadians’ backs. Kevin Carmichael looks into the Bank of Canada’s rationale for the emergency rate cut, and the fact that they have thus far been carrying the weight of trying to reassure the markets while we wait for Bill Morneau’s aid package.

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Roundup: Closing the border (mostly)

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.

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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.

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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: Trudeau in isolation

The pace of COVID-19 news was relentless yesterday, culminating in the news that Sophie Grégoire Trudeau had tested positive for the virus following her trip to the UK, and that the prime minister would be isolated for the next two weeks as a result. He’d already announced earlier in the day that he was self-isolating while his wife was undergoing testing, and that he would be working from home, but it also meant the cancellation of the First Ministers Meeting – to be held later today by phone – and the indefinite postponement of said first ministers meeting with Indigenous leaders. Not to be outdone, Jagmeet Singh also announced that he was self-isolating because he was feeling “unwell.” And while more events get cancelled, Peter MacKay and Erin O’Toole have stated they will suspend public campaign activities for the time being (though one suspects that this will simply escalate into a shitpost war online as they battle for votes in that space).

The big question now is whether or not Parliament will suspend for the coming weeks, and there are moves afoot – the Senate has been recalled to sit tomorrow (they usually don’t sit Fridays), and the talk is that the Commons will pass the New NAFTA tomorrow morning, and send it to the Senate immediately for passage so that if there is a decision to suspend, that will be out of the way. And it should be noted that the Senate did to pre-study on the bill while it was still in the Commons, so that will expedite the passage in the Senate, provided that twelve different senators don’t feel the need to give useless Second Reading speeches (because that’s a real danger these days).

Once again, Maclean’s has resources on symptoms and how to get tested.

Meanwhile, Paul Wells gives a decent reading of the year to date, and makes the case that First Ministers’ meetings are pretty useless these days so the cancellation of this one is not a big loss. Heather Scoffield ensures that you know where to place the blame for the markets crashing and wiping out retirement savings. And here’s infectious disease specialist Dr. Isaac Bogoch on what we can expect over the next two weeks.

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Roundup: Pandemics and aid packages

It was a day yesterday, where COVID-19 was declared a pandemic, Justin Trudeau announced a $1 billion aid package to deal with the outbreak, Donald Trump announced travel restrictions from European countries, and the NBA suspended their season (if you care about such things). More and more events are being postponed or cancelled, and the markets have entered Bear Market territory.

(Note: Maclean’s has an updated COVID-19 Q&A here).

As for that $1 billion package the government announced, one of the missing pieces are measures for workers who can’t access EI or sick leave when they are forced to self-isolate, which the government says they’re working on. As for Parliament, it does indeed have a pandemic plan, but it’s still early when it comes to deciding what portions of it need to be activated, and that can include suspending the Chamber’s sittings, but that would require some kind of negotiation with the other parties as to when to pull that trigger, and its duration.

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Meanwhile, Supriya Dwivedi worries that we aren’t warning people enough of the risk coming from the US, given how much of a gong show their healthcare system is. Susan Delacourt takes particular note of Trudeau’s language in asking Canadians to play their part to “flatten the curve” of the spread of the virus. Colby Cosh delves into some of the failure of the US’ centralized Centres for Disease Control in the early stage of the COVID-19 transmission. Heather Scoffield says that adequacy of Trudeau’s $1 billion COVID-19 package won’t last given the state of the economy.

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QP: The fiscal firepower is there

Monday, and major news happening regarding the country’s economic fortunes, but most of the party leaders were absent — Justin Trudeau returning from an event in Toronto, and Andrew Scheer elsewhere. That left Leona Alleslev go lead off, worrying that the country was hurtling toward recession as the stock market crashes before COVID-19. Chrystia Freeland assured her that the government had the fiscal firepower to withstand any downturn and would have measures to help people affected by the virus. Alleslev falsely stated that the economy was grinding to a halt, and concern trolled about Berkshire Hathaway pulling out of a Quebec LNG project, to which Freeland assured her that the government supports the resource sector and that planned projects and those under construction were up from the previous year. Alleslev tried one more time to rail about the state of the economy, and with a very measured tone, Freeland warned her against cheap partisan shots. Gérard Deltell stood up next to repeat the question about the Quebec LNG project, and Freeland repeated that they supported resource projects and there was record private sector investment. Deltell tried again, tying in the rail blockades, but Freeland was undaunted and repeated her response. Alain Therrien led off for the Bloc, and he demanded compensation for the “collateral victims” of the railway crisis, to which a Freeland read that while the blockades did cause problems, they needed to find a lasting solution to the problem through dialogue, and that’s what they’ve been doing. Therrien demanded the government take harder actions at the border regarding COVID-19, to which Freeland explained that there is a global approach, and that they were doing everything in their power to protect Canadians. Jagmeet Singh was up next and demanded help for a Canadians who need to self-isolate, to which Freeland listed EI measures they have taken, and that they are preparing further measures. Singh then falsely claimed that the government cut healthcare to provinces, for which Freeland regaled the House with her visit to Sunnybrook Hospital in Toronto, and that they were coordinating bulk supply purchases with the provinces.

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Roundup: An agreement, and a start to further discussions

On the fourth day of negotiations, federal Crown-Indigenous Relations Minister Carolyn Bennett, her BC counterpart, and the Wet’suwet’en hereditary chiefs have come to an agreement regarding land title rights for Wet’suwet’en territory, which has been an open issue for decades. It will need to be ratified by the Wet’suwet’en nation after a period of consultation, but it is a step. This does not, however, completely solve the issue with the proposed Coastal GasLink pipeline – the vocal group of hereditary chiefs remain opposed (while those in the community who support the project feel they aren’t being heard), but this remains an issue where the community needs to come together and use the feast system under their laws to resolve these disputes, which hasn’t been happening. It will also require further discussions with the RCMP about their operations in their territory, but again, there seems to be some progress made.

Meanwhile, a discussion among legal experts is ongoing regarding the efficacy of using legal injunctions when there are land rights protests going on, because they can be too much of a blunt instrument. Some are suggesting that the injunctions be structured to allow for mediated consultation instead of heavy-handed orders to stop their protests, as has been done in some provinces when it comes to labour disputes. And a prime example of something unhelpful is the bill recently tabled in Alberta to further penalize protesters with heavy fines (which is already likely unconstitutional), but there does seem to be a definite mindset behind that kind of legislation.

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