Roundup: Harper unhappy with NAFTA talks

Stephen Harper has apparently written an angry memo to his clients about the governmetn’s handling of the NAFTA negotiations, accusing them of bungling them by not evaluating American demands seriously (err, you have seen how many of their demands are literal impossibilities, right?) and of ignoring a softwood deal (which officials say was never on the table), and of aligning themselves too much with Mexico when they were the targets of America’s ire. Canadian officials are none too pleased, and consider it a gift to the Trump administration.

Alex Panetta, the Canadian Press reporter who broke the story, has more commentary below.

Paul Wells offered a few thoughts of his own on the news.

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Incidentally, the PM has also vocally disagreed with former Conservative minister James Moore’s assertion that trade talks with China are hurting our talks with the Americans.

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Roundup: Is there meaning to staff changes?

The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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Roundup: Economic update choices

The fall economic update was released yesterday, and while the rapid pace of economic growth has meant more revenues and a smaller deficit, it also means that the government isn’t going to put too much more effort into getting back to balance anytime soon, keeping the focus on reducing the debt-to-GDP ratio instead (which is going down faster). Instead, finance minister Bill Morneau insisted that they would be “doubling down” on investing in the middle class, mostly by indexing the Canada Child Benefit to inflation earlier than planned, as well as enhancing the Working Income Tax Benefit (and I will note that this part of his speech seemed to be one where Morneau acknowledged that singletons existed and needed a hand up too). There was some additional programme spending in there as well (for more, the National Post outlines eight things in the update).

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While the economy is growing at an enviable pace, it could put the government and the Bank of Canada in a bind as the need to start withdrawing stimulus measures comes to the forefront, and deciding whether fiscal or monetary policy should make the first move. There is also a marked shift between last year’s update and this year’s in that the focus is moving away from longer-term goals to short-term ones (and that could be political reality setting in). Critics accuse the government of using the update to try and change the channel on the recent headlines around Bill Morneau’s assets and disclosures, while Andrew Coyne gives his signature scathing look at the choices of the deficits, and around the rapid growth in government spending.

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Roundup: A surprise by-election win

In the two federal by-elections that took place last night, it was no surprise that the Conservatives won handily in Sturgeon River–Parkland riding that Rona Ambrose used to hold. Mind you, the newly elected MP there, Dane Lloyd, may prove to be uncomfortable given his past history of saying some fairly controversial things, but that’s now Andrew Scheer’s problem to manage. The real surprise, however, was that the Liberals won the Quebec riding of Lac Saint-Jean, the former riding of Denis Lebel. Why is it so surprising? Because for a Conservative riding where the NDP were a close second in the 2015 election, this time around it was a Liberal victory, with the Conservatives barely managing second place, the Bloc in a close third, and the NDP a distant fourth. And this was the Liberals’ weakest Quebec showing in 2015 and a riding that they haven’t held since 1980.

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So can we draw any conclusion from these results? Probably not yet – it’ll probably take a few days to suss out the data and get a sense of what happened on the ground, but it does bear mentioning that the of the three opposition parties, all of them had new leaders, and each of them spent a fair bit of time in the riding over the past couple of weeks, hoping to drum up support. That the Conservatives lost the riding may simply be indicative that the riding was more loyal to Lebel himself than the party he ran for (remember that he was a former mayor from the region), but it can’t be a ringing endorsement of Scheer either. And while the pollsters are all out in force talking about the Liberals’ fall from grace in their polling numbers lately, the fact that the Liberals still managed to win a seat that the Conservatives held, even amidst weeks of headlines about tax changes and Bill Morneau’s assets, in a region where they didn’t have any historic strength, probably still says something about the party’s appeal nationally. Maybe it’s about the collapse of the NDP vote in Quebec, which could possibly be a harbinger of things to come under Jagmeet Singh? Maybe it’s the appeal of sock diplomacy and selfies? Suffice to say, it’s going to be an interesting few days for all of the parties as they figure out what happened, and prepare for the next round of by-elections.

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QP: Conspiracy vs pabulum

There was no Justin Trudeau today, as he was busy with “private engagements” (which later turned out to be visiting the new Stanley Cup monument on Sparks Street), nor Andrew Scheer. Before QP got started, there was a moment of silence for the third anniversary of the Parliament Hill shooting and the deaths of Patrice Vincent and Nathan Cirillo. Moment over, Pierre Poilievre led off, railing that the government was taking away the disability tax credits for diabetics. Diane Lebouthillier read a statement in English that stated that her husband had died from diabetes, and that nothing had changed and that CRA was hiring nurses to help with the application process as well as improve data collection to ensure there were no problems going forward. Poilievre then turned to the Morneau Shepell/Bill C-27 conspiracy theory, demanding to know if Morneau got written permission from the Ethics Commissioner to table the bill. Morneau said that while the opposition was focused on his finance, he was working for the nation. After another round of the same, Gérard Deltell repeated the diabetes question in French, got the same answer from Lebouthillier, and then repeated the C-27 question in French — and got the same response from Morneau in French. Guy Caron was up next, leading for the NDP, and after trying to infantalise Morneau, he demanded to know where his higher ethical standards were. Morneau reiterated that he was focusing on Canadian families and touted the growth rate, and Caron demanded an acknowledgment of wrongdoing in English. Morneau’s answer didn’t change. (Mmm, pabulum). Alexandre Boulerice was up next, reiterating the C-27 conspiracy theory, and Morneau offered more pabulum in response. Boulerice reiterated in French, and got some francophone pabulum.

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Roundup: Morneau’s pabulum problem

Oh, Bill Morneau. After weeks of rough treatment, and the last week most especially, it’s no wonder that he was getting a bit testy when the questions kept coming up yesterday. That he snapped at a journalist just got our backs up because how very dare he, and so on. But it’s hard not to see how this is almost entirely a mess of his own making. Not just the fact that he didn’t divest his shares earlier, which make of that what you will – he was still within the law. I find myself ambivalent to the sanctimonious cries that he needs to appear to be whiter-than-white because that’s a Sisyphean task for which there will never be satisfaction short of being reduced to sackcloth and ashes, especially compounded by the oh-so-Canadian reflex of treating him like a tall poppy who must be brought down to size. The Conservative line that he’s a rich guy who can’t understand the woes of the working guy is certainly suffused with that narrative, but that’s also populism for you.

For me, the bigger problem is that so much of this is about the fact that it all goes back to this government’s particular communications problem of responding to everything with a spoonful of pabulum rather than taking their criticisms head-on. When the Conservatives launched into outright falsehoods about the proposed tax changes, Morneau didn’t fight back – he mouthed the same platitudes and shovelled more pabulum in our faces, and the myths metastasised until he was playing defensive when there was no reason for him to. That the CRA bungled their release of the folio on employee discounts just fed into this same problem, and again, the government couldn’t communicate their way out of a wet paper bag there either, sticking to the pabulum lines of not taxing the middle class rather than actually explaining that no, these are very specific circumstances that won’t actually capture retail workers. And given the current questions around his holdings, there are certainly better ways that he could have communicated decisions that were made (including why a blind trust would not have made sense, for example), or why the various conspiracy theories about how legislation or tax changes he’s proposing are apparently for the benefit of his company are patently absurd (because hey, attacking the messenger is always the sign that you’re on the winning side of the argument). But nope. Pabulum. And you would hope that maybe, just maybe, the government will learn that this is not the way to go about communicating, but I doubt it. They’ll probably hold tight and weather this manufactured outrage for another week or so until something else distracts the opposition, and the outrage cycle will start up again over something else, for which the government’s solution will be yet more pabulum. It’s tiresome from all sides. But this is what politics has devolved into.

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Meanwhile, Andrew Coyne castigates Morneau for his poor judgment, while Colby Cosh thinks of him fondly as a great quasi-Albertan for using a numbered company registered in that province, paying taxes there and giving back to the province’s economy.

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Roundup: The good news rollouts

The Liberals’ planned rollout of all kinds of “good news” announcements for Small Business Week – reductions in the small business tax rate by 2019, and changes to their planned amendments to Canadian-Controlled Private Corporation (CCPC) rules to crack down on those who use them to avoid paying taxes – were very nearly overshadowed by a Globe and Mail article that cried out that Bill Morneau hadn’t put his shares into a blind trust after all. As it turns out, this was largely a non-story – Morneau followed the advice of the Ethics Commissioner, who felt that because of his particular share structure that he wouldn’t need a blind trust but an ethics screen instead – though there are some added complications around it (see Glen McGregor’s tweets). This after the “revelation” about Morneau’s French villa – not that he had forgotten to disclose it, because he had already – just that he didn’t disclose the particular ownership structure, which is a French corporate structure not uncommon with the ownership of non-commercial real estate, known as a Société Civile Immobilière. Again, a non-story that the opposition (and certain media outlets) pounced upon, trying to make a bigger deal out of them than was merited.

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And then there was the Prime Minister’s tax cut announcement at that Stouffville restaurant, and the somewhat bizarre behaviour by Trudeau in the Q&A period after where he tried to answer questions directed at Morneau (no doubt trying to keep control of the message and not let it get railroaded by the non-stories about his villa and shares, but it came off as smarmy). And back in Ottawa, his backbench critics seemed mollified by the morning’s announcements, so we’ll see if that holds in the days ahead. (Not to be outdone by all of the Liberal press shenanigans, Andrew Scheer walked out on a press conference when asked about his former campaign manager’s association with Rebel Media.)

Meanwhile, neither Chantal Hébert nor Andrew Coyne are impressed with the theatrics of this government’s attempt to change the channel on the pummelling they’ve received.

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Roundup: No constraints, please

After Kady O’Malley suggested last week that the Senate adopt some kind of formal mechanisms to prevent the Senate from indefinitely delaying private members’ bills so that they die on the Order Paper, Senator Frances Lankin wrote this weekend that as much as she wants to see some of those bills get passed, she has no desire to adopt any mechanisms that would constrain debate in the Senate. And while I’m sympathetic to O’Malley’s point to an extent, I think Lankin has it right – and it’s good that she said something, because a lot of the newer senators look to her for guidance given that she is a senator who came into the job with previous legislative experience. The reasons why those bills can face delays are varied, but sometimes it’s legitimate that they do, and I think it would be a mistake to put in a mechanism that would essentially force those bills to be passed – especially as that would create an incentive for governments to start trying to pass difficult agenda items as PMBs (as the Conservatives tried to do on more than a few occasions when they were in power).

Meanwhile, Conservative MP Todd Doherty took to YouTube to bully senators into passing his private members’ bill. This is one of those kinds of stories that bothers me because nowhere in the piece does it mention who the sponsor of the bill in the Senate is, nor does it try to reach out to them to ask them about state of the bill and what efforts they are taking in order to see it passed, and that’s a detail that matters. If it is indeed waiting to come up for debate in committee, that’s not out of the ordinary considering that usually committees are bound to deal with government legislation before they deal with private members’ bills, and they’re the masters of their own destiny. Never mind that the bill itself is of dubious merit – these kinds of PMBs that demand “national strategies” for everything under the sun, no matter how worthy the cause, tend to be little more than feel-good bills that have little impact other than moral suasion, because they can’t oblige a government to spend money, and they figure that demanding a national strategy will push a government to take action. They don’t, but it’s all about optics, and Doherty is really pushing that optics angle.

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Roundup: No conflict to investigate

For all of the ink spilled and concerns trolled in Question Period, the Morneau-Shepell conspiracy theory is turning into a big fat zero for the Conservatives. Why? It seems that for all of the “appearance of conflict of interest” that they’re trying to drum up and selective laying out of facts in true conspiracy theory style (with the added cowardice of hiding behind the so-called “experts” who laid them out in committee testimony), the Conflict of Interest and Ethics Commissioner herself is shrugging it off.

“There does not appear to be reasonable grounds at this time for the Commissioner to launch an examination under the Conflict of Interest Act or an inquiry under the Conflict of Interest Code for Members of the House of Commons,” said the Commissioner’s spokesperson, and added that they won’t bother investigating investigate “if there is no specific information to suggest that a provision of the Act or the Code may have been contravened.”

And guess who isn’t putting up any specific information that would suggest an actual conflict of interest? The Conservatives. They’re still “gathering information,” which is cute, because why bother filing anything formally when you can make all manner of accusations and cast as much aspersion as possible under the protection of the privilege of the House of Commons, that will be reported uncritically? After all, this is “just politics,” and you can worry about the “appearance” of conflicts all you want on flimsy to no evidence, while facing no consequences whatsoever. It’s tiresome, but it’s the kind of sad drama that we seem to be subsisting on rather than substantive debate on the issues and the actual concerns that appeared around those tax proposals. Such is the sad state of affairs these days.

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Roundup: No, the Senate can’t fire Lynn Beyak

After another week of sustained outrage about Senator Lynn Beyak, with mounting calls for her resignation, and the exasperated commentary of those Indigenous groups that have tried to educate her as to the reality of the situation that Beyak has seen fit to comment upon, we’ve also started to see articles speculating on ways that the Senate can be rid of her. Those suggestions would be a grievous mistake.

We can all agree that what Beyak has said is odious in the extreme. But the performative outrage that she should be expelled from the Senate does cross a line because as much as we all disagree with Beyak, she hasn’t broken any laws or violated any ethics rules. She may have views that are on their face racist (though she probably doesn’t see them that way – the Conservative senators that I’ve spoken to pretty much consider her a clueless Pollyanna figure who nevertheless has deeply held Christian beliefs that inform her particularly selective world view), but those views are neither illegal nor contrary to the rules of the Senate. And we should be wary of trying to regulate Senators’ speech, because that is a gross violation of parliamentary privilege. We also can’t ignore that Beyak gives voice to an ignorant segment of the population, and when she raises these views publicly, she has given rise to a debate that such a segment of the population isn’t usually exposed to. Simply demanding her removal for it is hugely problematic for all manner of reasons.

Now, the Conservative caucus has taken the steps to minimize her role as much as possible – she is off all committees, and thus marginalized from having any position of influence. Why she remains in caucus is likely because they want to maintain their plurality in the chamber for as long as possible, and with ten current vacancies (and a couple more pending), that will likely change in the coming weeks, but for now, they are looking to maintain their numbers, and Beyak’s remaining in caucus does that for them, however they’ve sidelined her. And once the Independent Senators Group forms the plurality, the Conservatives’ impetus to keep her may change, but they may also hope that she can be redeemed, as it were, with more education (and perhaps a dose of humility). Maybe. Or, this could be an early sign of trying to phase her out, where there can still be some modicum of caucus control over her actions rather than simply turning her loose, which might actually embolden her (because then she’ll be a martyr for the cause). But let’s hope that this is the Senate’s version of phasing her out.

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