Roundup: A likely missile strike

It was another day of shocking revelations as Justin Trudeau held another press conference yesterday to confirm that intelligence from many sources – including Canada’s own – gave a strong indication that it was indeed a missile that brought down flight 752 outside of Tehran, though it may not have been intentional. He struck a very somber tone, and continued to call for Canada’s participation in the investigation – while Iran’s spokespeople are denying that it was a missile, and so far only limited access is being offered to Canadians (though they are apparently approving the necessary visas for consular access). It’s also important to note that Trudeau specifically referenced Canadian intelligence sources, because it’s less likely (historically speaking) that it would be manipulated for political purposes, than if we simply relied on American intelligence.

Another term cropped up several times yesterday, which was the call for a “credible” investigation – another important consideration as it is likely that Iran may be trying to obfuscate and obscure part of the investigation in order to ensure that they can avoid the culpability for the incident, though we are hearing that lessons learned from crashes like MH17 over Ukraine has helped investigators learn more when one side (Russia, in that case) is not cooperative – and Trudeau did note that he reached out to the prime minister of the Netherlands to learn more about how they dealt with the crash of MH17, as they were the lead investigators there. Maclean’s has a bit more here about investigations and what it may look like.

Meanwhile, Andrew Coyne glumly notes that there is little that Canada can actually do it if is proved that Iran shot down the plane (presumably deliberately as opposed to accidentally), in particular because we have outsourced our defence to the Americans for so long. Likewise, Matt Gurney goes into more detail about just how limited Canada’s options are when it comes to responding to the worst-case situation.

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Roundup: Downed planes and disembarking royals

The big news yesterday was obviously the crash of Flight PS752 outside of Tehran, with some 63 Canadians aboard (about half of those from Edmonton) – a large number owing to the limited travel options to go to Iran because of the loss of diplomatic relations with Canada, as well as US sanctions. Canada is hoping for a role in the investigation, but without any diplomatic relations or consular access, it limits our ability to do so (thanks to the belief of the Harper Conservatives that diplomacy is a cookie for good behaviour and not how countries communicate even when relations are strained). That lack of access will also make repatriating bodies more difficult, especially as Iran doesn’t recognize dual-citizens. In a press conference yesterday, Justin Trudeau would not categorically state that it was or was not a stray missile that brought the aircraft down – it’s still too early and the investigation has only just begun – but there is already talk that it may have been some kind of engine fire. Trudeau also mentioned his call with Donald Trump, but would not offer much in the way of specifics as to whether or not he agreed with the American plan to kill the Iranian general that touched off the attacks on Tuesday night.

Meanwhile, Justin Ling suggests that NATO take Trump’s suggestion and do more heavy-lifting in Iraq. Colby Cosh is reminded of when the Americans accidentally shot down an Iranian plane in 1988. Paul Wells notes how minimally this government seems to have acted in this crisis – and the weeks post-election – and suggests it’s time they get back to work.

Prince Harry and Megan

The other big news, in a day full of news, was the announcement that Prince Harry and Megan, Duchess of Sussex, plan to step down as “senior royals” and split their time with “North America” (which most are reading as Canada) and the UK, and focus more on certain patronages and charitable endeavours while looking to be more financially independent from the royal family (even though that could mean independent from the Sovereign Grant while still getting funded by the Duchy of Cornwall). And then Buckingham Palace said that this was “early days” and they were still discussing things – because it’s going to be a lot of details to work out.

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It has been noted that if Harry in particular wants to go through the Canadian citizenship process, he may have some difficulty given that he doesn’t have a university degree, so that could limit his points – even if they do have connections to Canada. My own half-joking suggestion is that we could set them up in Rideau Hall, because it’s not like anyone is living there currently.

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Roundup: Freeland on tour

For the past two days, Chrystia Freeland has been in Alberta to talk to the mayors of Edmonton and Calgary, as well as premier Jason Kenney, and she is continuing her tour there today, heading to the north of the province, where she grew up. There have been a couple of themes emerging from her tour from those she’s visited – from the mayors, it’s a sense that it’s great that she’s there to listen and hear their concerns, and from Kenney, it’s a bit of a sense of impatience that there haven’t been enough “concrete” actions yet.

I was struck after the meeting with Edmonton’s mayor on Monday about the talk of his trepidation that Kenney’s “Fair Deal” plans would make it harder for cities to deal with the federal government to address their priorities, and that he was looking for some particular assurances – and indeed, we’ve heard for the past couple of years that cities were frustrated that federal dollars weren’t flowing because the provinces were holding things up in what appeared to be some partisan pique (given that most of those provinces now have conservative governments). The federal government has been looking at more ways to deal with cities directly, and this appears to be more confirmation of the need to do just that.

This having been said, I am curious as to when Freeland is going to start further calling Kenney’s bluffs with regard to his “demands” and his threats around them. Justin Trudeau fairly effectively cut the legs out from under Scott Moe’s equalization fairy tales, and one imagines that it’s a matter of time before Freeland starts to – very diplomatically – do much the same with Kenney and some of his utter nonsense. Those “concrete actions” Kenney wants – retroactive fiscal stabilization funds, unrealistic demands related to the former Bills C-48 and C-69 (which are now law) – will eventually need to come to a head and Kenney will huff and puff and claim separatist sentiments will explode, but he doesn’t have too much room to manoeuvre himself – his cuts have proven very unpopular, and the patience of his constituents is going to run out, no matter how much he tries to distract them by fomenting anger at Ottawa. Freeland knows this, and I’ll be curious to see how she manages it.

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Roundup: Testing names in the field

Over the weekend, I got a call from a public opinion research company who was doing a survey on the Conservative leadership race. While many of the questions were fairly loaded or leading when it came to things like carbon pricing, and there were a lot of questions relating to just how progressive one thinks a future Conservative leader should be, I was most fascinated by the testing about potential candidates. There was an open-ended opportunity to provide a name that one might think could entice voters to switch to the Conservative party, followed by a list of names where one was invited to rank how much it would make you switch your vote for the Conservatives. That list: Gerard Deltell, former Bank of Canada Governor Mark Carney, Doug Ford, Jason Kenney, Jean Charest, Peter MacKay, Rona Ambrose, Lisa Raitt, Pierre Poilievre, Erin O’Toole, and Christy Clark. The inclusion of Carney is a head-scratcher considering that there was a Big Deal a few years ago about his apparently sniffing around the Liberals about a possible future leadership bid, while the fact that Michael Chong was left out despite his previous leadership run and the fact that he has stated he is seriously considering another go of it. So anyway, make of the list what you will, but those are the names that someone is testing.

Meanwhile, the first “official” declared candidate is Bryan Brulotte, a one-time Progressive Conservative staffer and failed candidate, who is pitching a negative income tax and “luxury tax” in lieu of a carbon price. Pierre Poilievre is also planning to announce his candidacy today, with John Baird chairing his campaign – though one wonders if that will conflict with his post-mortem report on how the party botched the election.

On that note, here’s Jess Morgan’s argument why he would be the absolute worst thing, while Paul Wells sizes up what we know of the race to date, and what kinds of choices the party faces in the process.

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Roundup: Convention confusion

The Conservatives announced over the weekend that their policy had convention had been postponed to November in order to give more time to their leadership contest – but then had to spend the rest of the day explaining that no, this didn’t mean that the leadership was going to be held in November, and no, they hadn’t made any final decisions on the leadership, and so on. Because it would have been great if they’d actually said that in their press release.

With this in mind, I figured I would do my best to clarify what part of the problem is here, which is that they don’t actually have leadership conventions anymore, but “leadership events” where all of the mailed in ranked ballots get counted up in a dramatic way to try and replicate the fun and excitement of a delegated convention. One might assume that they might try to kill two birds with one stone and have both events at the same time, but we’ll see if that is actually the case.

This having been said, we also need to remember that so long as we have a system where there is direct election of party leaders by their membership, and that those leadership candidates are running on policy slates as though this were an American presidential primary, it starts making party policy conventions into a bit of a farce. Why? Because so long as leaders feel empowered to move ahead with the policies that they have a “democratic legitimacy” to enact, then what does the grassroots policy preferences matters? We’ve seen this erosion across parties for years, and it will continue apace under this Conservative system just as it has with everyone else so long as we keep up this bastardized system of membership votes for leaders.

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Roundup: Lethal overwatch?

There’s been some chatter about a story in the Guardian that purports to show BC RCMP communications that would have allowed for “snipers” and “sterilizing” of Indigenous protests in the province over LNG pipelines – which the minister of Indigenous services wants some answers to, and which the RCMP denies is actually legitimate, citing that the terminology used isn’t consistent with their own, or that some of it is being misinterpreted (in particular “lethal overwatch). To that end, here’s Justin Ling with a bit of context and nuance to consider before you get agitated at what’s being reported, as it may not necessarily be correct.

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Roundup: SNC-Lavalin gets a plea bargain

In an unexpected development yesterday, we learned that SNC-Lavalin took a plea deal from the courts – that one of their divisions would plead guilty for fraud over $5000 in connection to their dubious activities in Libya, pay a fairly hefty $280 million fine over five years, and all of the rest of the charges they were facing were withdrawn, and they wouldn’t face debarment from future contract work for governments. In other words, they largely got what they wanted with the Deferred Prosecution Agreement/Remediation Agreement that they had been agitating and lobbying for, and which spun off the whole Double-Hyphen Affair in the first place.

Could of things – first of all, DPAs are not “get out of jail free” cards like they have often been described as. Had SNC-Lavalin been granted the DPA, they would have had to agreed that they committed wrongdoing, paid a fine which would have included remediation for the wronged parties, and would have a structured monitoring regime put into place to ensure better governance going forward, and it wouldn’t have protected any of their executives from future prosecution. One particular law professor, Jennifer Quaid, noted that even though they weren’t a good candidate for a DPA, it would have actually been more transparent than the plea bargain that they wound up with, there is no guarantee of remediation to wronged parties, and it’s unlikely there will be the same structure imposed, so maybe, just maybe, the DPA was the better plan in the first place.

Jody Wilson-Raybould tweeted out in response that the system worked, while Justin Trudeau said in an interview that he may have acted differently had he known this would have been the outcome, but he was trying to do the best he could at the time. And there are certain people screaming about prosecutorial independence, but I keep going back to the conversation that Wilson-Raybould taped with Michael Wernick, and so much of it was them talking past one another – him looking for an explanation and her not providing one until the end of the conversation when she said that she gave a report to PMO months prior, to which Wernick said “That’s news to me.” This key exchange was completely glossed over in most of the reporting because they fell instead for the juicy quotes that Wilson-Raybould had set up in conducting the conversation the way she did. So much of the communications and relationship breakdown is on full display in that call. (That being said, I remain deeply troubled with how much SNC-Lavalin was stage-managing the legislative process around the DPAs, even if lawyers in the field had been demanding that legislation for a decade because we were behind our comparable Western allies in making these kinds of arrangements available).

Meanwhile, certain journalists want to insist that this doesn’t mean that the story is over because parliamentary committees. Erm, except they would need the support of the Bloc to push forward with them, and they have explicitly stated that they have no interest in doing so. (Also, I am a bit concerned that Elizabeth May was conspiracy theorizing over Twitter regarding who this plea deal is “protecting.”)

On a related note, Wilson-Raybould was chosen by The Canadian Press as their Newsmaker of the Year, and make news she certainly did (and still does).

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Roundup: Competing economic illiteracy

As someone who covers a fair bit of economic stories, the absolute inability of this government to come up with a definition of “middle class” is exhausting – and those of you who read me regularly will know that I will instead use Middle Class™ as a means of showcasing that it’s a meaningless branding exercise. And lo and behold, when challenged to offer up a definition during one of his year-ender interviews, Justin Trudeau said that “Canadians know who’s in the middle class and know what their families are facing and we focus more on the actual issues.” And I died a little bit inside. For a government that keeps insisting they’re all about data, and evidence-based policy, their refusal to offer a meaningful measure of what their core narrative is all about is entirely about branding. By not offering a definition, they don’t have to exclude anyone – because everyone believes they’re middle class (whether they had ponies or not). And more to the point, by not offering a metric, they can’t measure whether they’ve succeeded for failed – it’s only about feelings, which makes their talk of data and evidence all the more hollow.

And then there’s Pierre Poilievre, who, when challenged about the definition of a recession, makes up a bullshit response and thinks it makes him clever. It’s as economically illiterate as the Liberals’ Middle Class™ prevarication, but the fact that the Conservatives keep cheerleading a “made-in-Canada recession” that no economist sees on the horizon, and which they can’t even fit into the actual definition of what a recession is (two consecutive quarters of negative GDP growth) sets a dangerous path of spooking markets. It’s all so stupid, and reckless, but the party’s current path of pathological dishonesty makes them blind to the danger of it all.

On perhaps a related note, Trudeau’s director of communications, Kate Purchase, is leaving to become a senior director at Microsoft, and good luck to her – and she really is one of the nicest staffers and was actually helpful to media in stark contrast to the Harper crew. But I also hope that perhaps this means that her replacement can start ensuring that this government can start communicating its way out of a wet paper bag, because cripes, they have done themselves zero favours over the past four years.

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Roundup: Fiscal update and actuarial context

Finance minister Bill Morneau released his fall economic update yesterday, and it showed that while the economy was doing well – fairly strong growth, very strong job creation (November’s numbers notwithstanding) and wage growth – the deficit was going to get a lot bigger unexpectedly. The reason for it, however, was largely ignored by all of the commentariat, both media and partisan, because the kneejerk response in Canada about any finance story is about the size of the deficit, end of story. The real reason – that low interest rates had forced a hefty actuarial adjustment for government pension plans – was inconvenient for them to force a narrative onto, so they just ignored it and clutched their pearls some more, crying “The deficit! The deficit!” and the Conservatives continued to cheerlead a “made-in-Canada” recession by cherry-picking some very selective economic data that was to the exclusion of the broader trends, because narrative. Here’s economist Kevin Milligan to explain some more.

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I would add that while the Conservatives like to rail about how our unemployment figures compare poorly to other countries, it’s a bit of a fool’s errand because we don’t all measure unemployment the same way, and not all of our economies work the same way. Canada has had record low unemployment in recent months, to the point where economists say we are have been at what is essentially “full employment” – in a statistical sense, not to dismiss that there are regions where it’s still a problem, but essentially there’s not a lot of room for more job growth in the economy. But hey, why let reality get in the way of the narrative, right?

In terms of analysis, John Geddes delves into the notion of “endless deficits” and finds that, shockingly, it’s not a cut-and-tried issue, but the real issue is complacency. Certain bank economists think that because the shift in the deficit is on pension obligations, it could force the Bank of Canada to act sooner if there were an economic downturn. Heather Scoffield wonders what kinds of budget promises that Morneau will have to abandon given the bigger deficit figures if they don’t want to lose their debt-to-GDP anchor.

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Roundup: Considerations for Teck

We’ve been hearing a lot about the proposed Teck Frontier oilsands mine in northern Alberta lately, and demands by Jason Kenney and a number of Conservative MPs that its approval be fast-tracked as close to immediate as possible. Energy economist Andrew Leach has a few thoughts on the matter, particularly of how to reconcile Teck in the broader scope.

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