Roundup: Economists endorse carbon pricing, not the Liberal plan

Yesterday, a group of leading Canadian economists published an open letter about the facts about carbon pricing and the rebates, and debunked several claims that conservatives around the country have been making. It was a good and necessary corrective, but of course, legacy media headlined it as them defending the Liberal plan, which they weren’t doing, particularly because while the Liberal plan includes the carbon levy and rebates, it also is full of regulation and subsidies, which these economics are explicitly not in favour of. But legacy media loves to make this a partisan fight where they have to be on one side or the other. Liberal Party comms didn’t do themselves any favours either on this one.

To that end, here is energy economist Andrew Leach on carbon pricing, and throwing some shade at the PBO’s rather shite report once more.

Meanwhile, a number of premiers demanded to be heard at the House of Commons’ finance committee about the carbon levy, because they think that’ll do them any good, but instead, the Conservative chair of the Government Operations Committee invited them to testify today. The Government Operations Committee has fuck all to do with this file, but apparently, we no longer care about things like committee mandates anymore, so long as you can put on a dog and pony show, and gather clips for social media shitpost videos, that’s all that matters. This shouldn’t be allowed, but this is the state to which our Parliament has now debased itself. Ours is no longer a serious institution for doing serious work. It’s only about content creation, and I cannot stress enough about how absolutely terrifying this is for the future of democracy.

Ukraine Dispatch:

A Ukrainian missile attack struck a Russian naval reconnaissance vessel as well as a large landing warship. Ukraine’s navy says that they have destroyed or disabled a third of the Russian Black Sea fleet over the past two years. Here’s a look at how Ukraine’s burgeoning domestic defence industry is ramping up to provide necessary ammunition for the war. Here’s a great explanation of Ukraine’s use of drone warfare with some excellent infographics.

https://twitter.com/defenceu/status/1772541600591147503

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QP: A late pivot to shouting about Ukraine

It being Wednesday, the prime minister was present to answer all questions, as is his wont, while his deputy was elsewhere. Most of the other leaders were present again today, which is great to see, even if they take up most of the spotlight on Wednesdays. Pierre Poilievre led off in French, and after reciting his slogans, and then took a swipe at the Bloc before accusing the prime minister of stoking inflation with “tax hikes” on April 1st (blatantly untrue), and wondered if they would need an election on carbon pricing. Justin Trudeau recited that the carbon rebates give eight our of ten households more back than they pay, and that Conservatives don’t want to help with affordability or climate change. Poilievre insisted that the PBO said that most families will pay more and be negatively impacted—again, not what he actually said—and then said there was a “second tax” coming to Quebec—also not true—and wondered if the Bloc would support the government on this. Trudeau said that if Poilievre listened to Canadians, he would know the cost of inaction is high on farmers and fishers, while the government’s plan puts more money in people’s pockets. Poilievre switched to English to again recite his slogans and repeat his demand to cut the price increase or face a non-confidence motion, and Trudeau reiterated that the plan puts more money back into the pockets of most Canadians than they spend. Poilievre recited a bunch of falsehoods about the impact of the price, and repeated his demand. Trudeau again stated that the choice is more money in the pockets of Canadians. Poilievre raised the numbers from the PBO, knowing full well they are out of context, and Trudeau again repeated that people get more back than they pay.

Yves-François Blanchet led for the Bloc, and he raised that the National Assembly voted on yet another unanimous motion to demand that Quebec get full powers for immigration, as though that means anything. Trudeau insisted that they were friends with the Quebec government, and Quebec already has more powers regarding immigration than any other province. Blanchet decried that Quebec pays for asylum seekers and demanded a billion dollars in compensation. Trudeau noted that they are compensating Quebec for asylum seekers. 

Blake Desjarlais rose for the NDP, and demanded the government not cut any funds to Indigenous Services, and Trudeau insisted that they have tripled investments and have come to settlement agreements, and that they were still doing the work. Desjarlais decried that this was insufficient, Trudeau reiterated his same points about the investments made.

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Roundup: Making up censorship claims

Facing pressure for dismissing the Online Harms bill before he had even seen it, Pierre Poilievre put out a statement yesterday that said that things like child sexual exploitation or “revenge porn” should be criminal matters, and that police should be involved and not a new “bureaucratic” agency. It’s a facile answer that betrays the lack of resources that law enforcement devotes to these matters, or the fact that when it comes to harassment or hate, many police bodies have a tendency not to believe victims, especially if they are women.

But then Poilievre went one step further, saying “We do not believe that the government should be banning opinions that contradict the Prime Minister’s radical ideology.” I’m not sure where exactly in the bill he sees anything about banning opinions, because he made that part up. More to the point, the provisions in the bill around hate speech quite literally follow the Supreme Court of Canada’s decision in Whatcott, and codifies them, which means the standard is exposing someone to “vilification or detestation” if they are a member of a group that is a prohibited grounds for discrimination. That means that it goes beyond “opinion” one doesn’t like. The minister confirmed that “awful but lawful” content will not be touched, because the standard in the bill is hate speech as defined by the Supreme Court of Canada. And it would seem to me that if the standard of “hate speech is bad” is “radical ideology” in your mind, well then, you are probably telling on yourself.

Speaking of Poilievre making things up, he spent the afternoon loudly proclaiming that the RCMP sent him a letter saying they were investigating ArriveCan. Then he posted the letter on Twitter. The letter doesn’t say they are investigating. It literally says they are assessing all available information. That is not an investigation. That’s deciding if they want to investigate. The fact that he released the letter that doesn’t say they are investigating, and says that it proves they are investigating, feels like a big test of the cognitive dissonance he expects in his followers, which is just one more reason why our democracy is in serious trouble.

Ukraine Dispatch:

As Ukrainian forces withdrew from two more villages near Avdiivka, one of which Russia has claimed the capture of, there are concerns that Russia is stepping up influence operations to scupper international support. President Volodymyr Zelenskyy has landed in Saudi Arabia for meetings related to his peace plan and a push to get prisoners and deportees released from Russia. In Europe, NATO countries have been backing away from statements that French president Emmanuel Macron made about not excluding any options to avert a Russian victory in Ukraine, which were presumed to mean western troops. (Macron said this was about creating “strategic ambiguity.”)

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QP: Brandishing an RCMP letter

Neither the prime minister nor his deputy were present today, though both were back in town (if a bit jet-lagged from their travel over the weekend), while only a few other leaders were present. Pierre Poilievre led off in French, and after reciting some slogans, he said that the RCMP had confirmed that they have opened an investigation into ArriveCan, and tried to tie in the Aga Khan and SNC Lavalin. Dominic LeBlanc said that they have been giving authorities all of the documents they request. Poilievre repeated the question in English, and LeBlanc repeated his same response in English. Poilievre then cited a Food Bank report, and demanded the carbon levy be lifted (which has nothing to do with food price inflation). François-Philippe Champagne deployed his usual “take no lessons” line before saying that Conservatives on the committee were defending the profit margins of food processors, and exhorted then to support Bill C-59. Poilievre tried again, and Champagne patted himself on the back for spearheading the largest reform of competition in history. Poilievre then cited the existence of a dumpster diving Facebook group and blamed it on the carbon price. Sean Fraser got up to list assistance programmes that Poilievre and the Conservatives have voted against.

Alain Therrien led for the Bloc, and he repeated yesterday’s question about federal government spending to give other provinces what Quebec already has, and wanted compensation to opt out of any national pharmacare. Mark Holland said that a bill would be coming soon, and exhorted them not to criticise a bill they haven’t seen. Therrien wanted compensation to Quebec and the ability to opt out of dental care, and Holland insisted this was just trying to pick fights rather than helping people who need it.

Alexandre Boulerice rose for the NDP, and he complained that people in Quebec can’t get a family do form which should be a question for François Legault. Holland said that they were cooperating with provinces, and that it takes time. Don Davies gave a non-Quebec-centric version of the same question, and Holland went on a tear about how the Conservatives would cut while the current government is investing. 

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Roundup: The wrong people taking credit for disinflation

Statistics Canada released the January Consumer Price Index data yesterday, and lo, it shows that inflation is dipping back into the control range at 2.9% annualized, which was lower than anticipated, and fairly broad-based including food prices decelerating to just above the headline number, meaning prices are stabilising finally, and yet somehow, with carbon prices still in place, and the grocery oligopolies not having been subjected to punitive windfall taxes. Imagine that!

In all seriousness, because there were month-over-month price drops in fuel prices in Manitoba thanks to Wab Kinew’s decision to pause gas taxes, and Saskatchewan not collecting the carbon levy, we got a bunch of people who should know better saying stupid things about carbon prices and inflation. Kinew, who has economics training, should especially know better.

Inflation is a year-over-year measure. Carbon prices have a negligible impact on it because it rises at the same level every year, so it’s not inflationary. A one-time drop in prices is also not deflationary or disinflationary because it’s a one-time drop, not sustained or pervasive. If you need a further explainer, economist Stephen Gordon has resurrected this thread to walk you through it.

On the subject of things that are unfathomably dumb, it looks like the CRA has decided to buy Saskatchewan’s transparent legal fiction that the provincial government is the natural gas distributor for the province, in spite of it being against the clear letter of the federal and provincial law, which means that consequences for the province not remitting the carbon levy on heating will be borne by Cabinet and not the board of SaskEnergy. What the hell?

Ukraine Dispatch:

Russian attacks on the northern part of Ukraine killed seven on Tuesday, while Ukraine’s forces say they destroyed 13 out of 19 drones launched by Russia on Wednesday. Ukrainian officials are investigating the Russians shooting three soldiers captured on Sunday. Here is a look at the shattered ruins of Avdiivka. Ukraine’s state arms producer has signed an agreement with a German arms manufacturer to help produce more air defences domestically.

https://twitter.com/ukraine_world/status/1759942168989360468

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QP: Demands to turn over documents

The prime minister was off in Winnipeg for a healthcare announcement with premier Wab Kinew, and his deputy was away in Toronto, while most of the other leaders were also absent. Pierre Poilievre led off in French, and after deploying a half-dozen slogans, he broached the ArriveCan issue and said that he was told that a court order would be required to get a court order for the production of documents, and wanted the government to turn them all over. Jean-Yves Duclos said that the Auditor General did good work in her damning report, and that they have taken steps and more would follow soon, and that they were being transparent and turning over all requested documents to the RCMP and elsewhere. Poilievre switched to English to repeat the allegation that the RCMP needs a production order for records and again demanded that the government simply turn over the documents to the RCMP and committees. Duclos cautioned that Poilievre sounded like he was calling into question the capabilities of the Auditor General. Poilievre repeated his claim and again demanded that all documents related to ArriveCan or GC Strategies be turned over. Dominic LeBlanc insisted that they have been cooperative. Poilievre then quoted Thomas Mulcair on the situation, Poilievre wondered why the NDP were keeping the government in power, but that wasn’t a question to government. LeBlanc got up anyway to insist that they have taken this situation seriously. Poilievre then quoted Sean Fraser, claiming he was attacking himself, and demanded the government start building homes. Soraya Martinez Ferrada got up to pat the government on the back for working with mayors, and said that unlike when Poilievre was minister, they were getting housing built.

Alain Therrien led for the Bloc, and he wanted an expanded investigation into GC Strategies. Duclos reminded him of the scope of urgency in the pandemic, but said it wasn’t an excuse for civil servants not to do their jobs properly. Therrien demanded a “clean sweep” at CBSA, to which Duclos agreed that there needed to be an investigation, several of which are ongoing.

Heather McPherson rose for the NDP, and raised the number of casualties in Gaza, but insisted that the government is keeping up with arms sales (which they haven’t), and called out Rob Oliphant’s leaked comments. Ahmed Hussen insisted that Canada was the first to start offering humanitarian aid. Daniel Blaikie wanted support for the party’s bill on amending EI benefits, and Randy Boissonnault said that the work to modernise the system is ongoing, and this particular issue of women on mat leave being laid off was before the courts.

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QP: Who has more connections to Loblaws lobbyists?

The prime minster was present as is customary for a Wednesday, while his deputy was away. All of the other leaders were present as well for a second day in a row. Pierre Poilievre led off in French, citing rental increases as though that were a federal jurisdiction. Justin Trudeau cited a Conservative MP pointing out that the government has new announcements every day, which Trudeau agreed, that they were rolling out programmes to help Canadians and speed up home building. Poilievre insisted that the government just bloats bureaucracy but doesn’t build houses. Trudeau called him out for insulting mayors and using the homeless as props while offering nothing. Poilievre cited CMHC figures and population estimates for needing another five million units. Trudeau said that they were investing in municipalities to decrease red tape and accelerate building while increasing densification. Poilievre switched to English to repeat his first question, to which Trudeau repeated his same response. Poilievre trotted his line that people can’t live in programmes and announcements, to which Trudeau walked into the trap by pointing to an announcement he made about investments made years ago turned into houses today, and accused Poilievre of insulting mayors and people’s intelligence. 

Yves-François Blanchet led for the Bloc, pointed to the government delaying the expansion of MAiD and that if the Conservatives get in, they will lock it down when the delay expires. Trudeau said that they are upholding fundamental rights and freedoms, but this is a difficult issue that they will “continue to reflect” on. Blanchet wanted the government to adopt Quebec’s request for advance requests, to which Trudeau insisted this was an very difficult decision for them to make as a society.

Jagmeet Singh rose for the NDP, to demand the government support his bill on grocery prices. Trudeau noted that they have measures in the Fall Economic Statement that align with the NDP proposal, and trotted the accusations around Jenni Byrne. Singh switched to French to repeat the demand, and Trudeau repeated his same response. 

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QP: Keeping up the focus on auto thefts

Both the prime minister and his deputy were present today, as were all other leaders, and it wasn’t even a Wednesday. Pierre Poilievre led off in French and complained that CBSA was only inspecting one percent of containers, and demanded that the government do more about it. Justin Trudeau responded that organised crime is largely responsible for car thefts, which is why they sent $121 million to Ontario, which the Conservatives voted against. Poilievre complained that the money was just going to managers, and demanded the government agree to his “plan” of buying new container scanners. Trudeau noted that they had to rehire the border officers that the Conservatives fired when they cut their budget. Poilievre switched to English, and claimed that the Conservatives cut car thefts and Trudeau saw them explode, which is a bit of specious reasoning. Trudeau noted that this would be more credible if the Conservatives didn’t vote against their plans to invest in the border. Poilievre insisted that his plan would scan every single container in the four major ports, to which Trudeau again reminded him that the previous government which Poilievre was part of fires the very boots on the ground he touts. Poilievre then pivoted to the invitation to Yaroslav Hunka to a Toronto event for Volodymyr Zelenskyy and demanded Trudeau resign like the previous Speaker did. Trudeau said that this was a slam against the Ukrainian Canadian Congress, and that it shows the Conservatives no longer support Ukraine.

Yves-François Blanchet led off for the Bloc, and demanded support for a Bloc bill to remove the religious exemption for hate speech. Trudeau said that he agrees that there was no place for hatred and that Canadians need to stand against it no matter how it manifests. Blanchet insisted that law enforcement needs the ability to make those arrests. Trudeau said that they know it’s important to defend the Charter while standing against hate speech and glorification of violence.

Jagmeet Singh rose for the NDP, and demanded the government impose new taxes on grocery giants, and accused them of not being tough because the housing minister got donations from the Sobey’s family. Trudeau read a script about the changes to the Competition Act they have made. Singh repeated his demand and insinuation in French, and got the same scripted response in French.

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QP: An exhausted slugging match over Ukraine

The prime minister was present today, while his deputy was away doing pre-budget consultations. All other leaders were present as well, and it was the day where they decided it was going to be all about them. Pierre Poilievre led off in French, rattled off his slogans, and then worried about the increase in auto thefts, as though that wasn’t a policing issue at the provincial and municipal level. Justin Trudeau noted that the previous government cut budgets for policing and that his government has re-invested, that they’re working with provinces, and that Poilievre’s slogans won’t do anything. Poilievre insisted that they got better results for fewer dollars, and again blamed federal policies for this rise. Trudeau read from a script that they will be holding a national summit on the issue, and that they are getting results from investing in border officers. Poilievre switched to English to repeat his first question with added rhetorical flourish, and Trudeau dismissed Poilievre’s “whipping out empty slogans,” and reiterated the success of CBSA stopping more stolen cars from leaving the country. Poilievre quoted from the press release the government put out, and blamed the federal government for the rise. Trudeau reminded him that in 2015, Harper slashed funding for the RCMP and CBSA, and that he had to clean up the mess, before he got drowned out by the applause on his own side. Poilievre taunted that Trudeau was “losing control of himself” by screaming and yelling, before dismissing the notion of the auto theft summit. Trudeau shrugged off the attacks, said that they included facts in the release and that they were “rolling up their sleeves” to work with partners rather than just making political attacks.

Yves-François Blanchet led for the Bloc, and raised the pause on the MAiD extension, and wanted Quebec to be able to move ahead. Trudeau trotted out the line of this being a “deeply personal issue” and said that they were trying to find the right balance, and that they would be open to suggestions. Blanchet wanted advance directives to be allowed, and Trudeau reiterated that they were continuing to consider this issue.

Jagmeet Singh rose for the NDP, and he tried to call out a Liberal MP for her remark about the housing crisis in Toronto, and wondered if the prime minister would listen to front line workers instead. Trudeau recited that they are working with partners and listed the actions they are taking. Singh switched to French to decry a woman being kicked out of her apartment and said that the government has the power to resolve the real estate crisis. (How? With a Green Lantern ring?) Trudeau repeated his same response in French.

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Roundup: Scott Moe takes another illegal step

Not satisfied with his plan to break federal laws in not remitting the carbon levy for natural gas, Scott Moe decided that he was going to ramp it up by also not collecting it for electric heating, which is going to be a neat trick when it comes to trying to disaggregating it from regular electricity use. He says they’re going to find out how many homes us it and reduce the levy collection by a formula that approximates what it might be, but it’s still ridiculous and is just more of this very bad trend of premiers who think that they can just get away with violating federal law if they feel like it. But it’s not him that’ll be exposed by this—it’s the CEO and board of SaskPower, just like with SaskEnergy, and they’re the ones exposed to criminal liability for breaking federal law, not Moe, and that should be of concern to anyone in these positions.

Of course, it bears repeating that it’s not the carbon price driving up these costs, really—it’s the utility provider. But that won’t stop Moe and the federal Conservatives from lying about the size and effect of carbon prices as a distraction (or legacy media from not calling it out).

Ukraine Dispatch:

Russian missiles struck three towns in Eastern Ukraine—Pokrovsk, Novohrodivka, and Myronhrad, killing two and wounding ten. President Volodymyr Zelenskyy visited troops on the northeast frontlines, and called for the faster construction of fortifications in key areas under threat from Russian forces.

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