Roundup: Blustering through a climbdown

It was a day full of bravado, as Erin O’Toole began the day with a bit of a climbdown, saying they would change the name of their proposed special committee from the blatantly inflammatory “anti-corruption committee” to the “special committee on allegations of misuse of public funds by the government during the COVID-19 pandemic,” which is exactly the same thing (and whose first four letters – which committees abbreviate to – would be SCAM, which is yet another one of their childish tactics). Government House leader Pablo Rodriguez was not mollified, quipping “If you write a book about Frankenstein and call it ‘Cinderella,’ it’s still a book about Frankenstein.” O’Toole then tried to say they would amend their motion to insist that a vote for it was not a vote for an election, to which the government said no dice – you’re saying you don’t have confidence in us, so you get to put your money where your mouth is as this is going to be a confidence vote. And then O’Toole tried to say that he doesn’t have confidence in the government, but doesn’t want an election, and sorry, that’s not how this works. You’re accusing them of corruption and misusing public funds – which is a loss of confidence in a system like ours – and then saying you don’t want an election? Yeah, no. You have confidence and the government governs, or you don’t, in which case the government falls and you go to an election.

There is going to be a monumental amount of chest-thumping and testosterone being hosed across the carpet between the aisles in the Commons today as this comes to a head, but frankly, the government is calling O’Toole out for his bluster and tough talk. The Bloc are also blustering about being in favour of an election, leaving the NDP holding the bag. Jagmeet Singh insisted that this was a “farce” and “stupid” to trigger an election in a pandemic over creating a committee – omitting that the title of the committee implied corruption, which should be a de facto loss of confidence, and the fact that said committee’s terms of reference would give it priority over all other government business, including having ministers, the prime minister, and civil servants being expected to drop everything and appear or produce documents at the committee’s beck-and-call, in the middle of a pandemic where everyone is already stretched. (There was also Conservative sniping that Singh didn’t seem to have a problem with John Horgan calling an early election in the middle of a pandemic). I know the NDP want to play the grown-ups in the room (somewhat ironic after Charlie Angus’ histrionics and theatrics on the WE Imbroglio file), but at least represent the situation for what it is.

Meanwhile, Kady O’Malley’s Process Nerd column explains just how the motion on creating that special committee can be considered a confidence matter. Paul Wells offers some intense snark over the current confidence showdown, and how Trudeau may not be gambling if he’s likely to win another election. Heather Scoffield sees utility in the government’s proposed pandemic spending oversight committee – assuming that it is set up as advertised.

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Roundup: A Thanksgiving stunt

The Conservatives decided to use Thanksgiving Monday for their latest political stunt, which is to demand the creation of an “anti-corruption committee” that they intend to use to get to the bottom of the WE Imbroglio, and they’re ready to use every tool available to them in order to get there.

What makes this a stunt in particular is the abuse of the term “corruption,” which is overly loaded in the context of what happened in the penny-ante nonsense that surrounds the WE Imbroglio. They’ve already extracted more than the usual amount of blood that something like this would engender, both seeing the finance minister resign, and WE Charity’s Canadian operations themselves have largely folded (though not their international footprint) as a result of the spotlight that this put on them. The notion that there is something to hide because of the refusal to turn over the speaking fees collected by members of the Trudeau family, despite their being private citizens, is bordering on witch-hunt territory. And because the Conservatives are calling this an “anti-corruption committee,” any refusal to play along lets them shriek that those people are allowing corruption to happen.

The problem here is that this is nothing like actual corruption that happens in other countries. Hell, there is some pretty damning corruption that happens in some provinces in this country, where specific industries have bought and controlled provincial governments for decades. And by trying to posit that what happened with WE is capital-c corruption both demeans actual corruption that happens, but it imparts false narratives onto the kinds of wrongdoing that took place here, which was about recusals as opposed to shovelling funds to friends, family members, and business associates. But then again, the Conservative playbook has long-since left spin and torque behind in favour of bald-faced lies, so here is where we are.

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Roundup: Alberta’s big budget hole

Alberta released a fiscal update yesterday, and it was pretty abysmal, projecting a record-breaking $24.2 billion deficit. The problem? Was that the province’s finance minister spent much of it lying to the legislature and Albertans about the state of their books going into the pandemic, not to mention not having a real plan for the recovery. But it to put some of the staggering numbers in context, the province is taking in more revenue from gambling, alcohol and cannabis than they are from oil revenues – you know, what they have based their economy on. Meanwhile, their non-existent recovery plan is bro-heavy, and they still insist that they have a spending problem on services rather than a revenue problem from having the lowest tax rate in the country and no sales tax – and you know that’s going to mean the province is looking to slash and burn services, and they’ve already started by picking fights with doctors in the middle of a global pandemic, and those doctors are already shutting down their clinics and moving away. So yeah, Alberta’s got problems.

Economists Andrew Leach and Lindsay Tedds have more, starting with this preview thread by Leach that set the stage for the speech of lies that was to come.

https://twitter.com/LindsayTedds/status/1299171987655327744

https://twitter.com/LindsayTedds/status/1299173816577347584

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Roundup: Freeland precedes a prorogation

The fallout from Bill Morneau’s resignation yesterday culminated in a brief Cabinet shuffle that saw Chrystia Freeland appointed to replace him as finance minister, and Dominic LeBlanc taking over her intergovernmental affairs responsibilities. This makes Freeland the country’s first woman federal finance minister, and there was much back-patting over that particular glass ceiling being shattered. The bigger news, however, was the fact that prime minister Justin Trudeau decided to prorogue Parliament to return on September 23rd – the same week they were intended to return anyway – for a new Speech from the Throne that would outline a new set of priorities for the government in order to focus on rebuilding the economy. Trudeau said that it was the time to move forward rather than revert to the status quo, and that we need bold new solutions rather than being held back by old ways of thinking. He also said that the pandemic was an “unprecedented opportunity,” a chance to build a more resilient Canada, which is healthier, safer, more competitive, more welcoming, and fairer. “This is our moment to change the future for the better,” he declared, adding that the window of opportunity wouldn’t be open for long.

During the Q&A, Trudeau only had praise for Morneau and wouldn’t elaborate on the leaks that happened up to his resignation. Regarding the Governor General, he said that he had confidence in the third-party investigative process launched by PCO. On his children going back to school, he said that they were discussing the matter “actively.” Regarding Freeland’s previous writing on taxing the super-wealthy, Trudeau said that he has been having this conversation with Freeland since he recruited her to politics, which is why the first thing they did was raise taxes on the top one percent, and that they wouldn’t raise taxes at this time. Regarding prorogation, Trudeau tried to differentiate his move with Harper’s 2008 prorogation by saying that while Harper was trying to avoid a confidence vote, he was instead putting one on the table with the Speech (err, except the logic falls apart when you realize that Harper also had a confidence vote following that prorogation, which he survived). He said that they continue to cooperate on any WE investigations, and that they released those thousands of pages of documents to the committee so that they can study them over the next month of fallow period, and that the opposition can keep asking questions when Parliament resumes. And when asked if he would be on the ballot next election, Trudeau said he would be and that he was “excited about the opportunity and the responsibility.”

We also got an extended response from Freeland, beyond her praise for Morneau, both about breaking the glass ceiling around women in the finance portfolio, and the government’s feminist agenda, which was important because of how this crisis has disproportionately affected women. Regarding her own disagreements with Trudeau – because of the narrative being promulgated about Morneau’s ouster – Freeland said that she and the PM had recently reflected “with good humour” on times they disagreed, and that she felt that having those different points of view, with the ability to have open, respectful, candid conversation about them (behind closed doors) brought government to a better decision. So there’s that.

On the subject of prorogation, this is vastly different from 2008, and anyone who tries to compare the two is either being disingenuous or has a comprehension problem. The WE Imbroglio is hardly a scandal – yes, it highlights the PM’s poor judgment, and that should be the cue that it’s time for him to leave, but that’s about it. The attempts by the various committees to find a smoking gun haven’t been able to find one, and several of them are exceeding their mandates in trying to force more investigations. Prorogation won’t end any ongoing committees, but delay them, though I’m really not sure there’s much more to be gained by continuing them, for what it’s worth. This being said, Trudeau proroguing now instead of waiting until the eve of his scheduled Throne Speech is not exactly a smart move given the current pandemic context, because if there is a need for an emergency recall of Parliament for a new legislative measure as a result of said pandemic, they will need to have a Throne Speech before that can happen. While I’m sympathetic to those former staffers who said that the government needs to focus on their Throne Speech and budget, and that the WE stuff was a real distraction from that, I would say too bad – the government made its bed and needs to lay in it. It was unnecessarily provocative and only increases people’s cynicism about Trudeau breaking his promise not to use tactics like these for political gain.

Meanwhile, Heather Scoffield makes note of the juggling act that Freeland will need to employ in order to balance the goals she’s facing, but notes her experience as a working mother will help. Susan Delacourt points out that Freeland is the only “star candidate” of Trudeau’s that is still standing and hasn’t been tarnished along the way.

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Roundup: Taking a personal day

Of all the possible misplays for Justin Trudeau to make at the height of a controversy around his poor choices, ethical blind spots, and insistence that he’s being open and transparent, the first day of a two-day recall of the House of Commons saw him absent with the only excuse on his daily itinerary being a “personal day,” which sent the opposition into a frenzy. It’s not like Trudeau chose this day for the Commons to be recalled and for there to be a proper Question Period – erm, except he did. And then wasn’t present. Way to read the room.

Andrew Scheer had his own attempts to make hay, insisting that if the Liberal backbenchers don’t oust Trudeau (without a mechanism to do so, it should be noted), that they were signalling that they were okay with his “corruption” – never mind that a conflict of interest is not actually corruption, and he’s not exactly someone who should be throwing stones considering that he was forced to resign his own leadership after it was revealed that he was helping himself to party funds to the tune of almost a million dollars.

Meanwhile, the Conservatives are also pushing back against the bill being debated, objecting to the “complexity” of the wage subsidy changes, despite the fact that for there to be a proper phase-out and to ensure it’s more broadly encompassing than the programme was initially, there needs to be added complexity. Their objections won’t matter for much, considering that the Bloc has agreed to support the bill regardless so there are enough votes to go around, but it is a change from bills being supported unanimously at all stages, and something that resembles a sense of normalcy slowly returning to Parliament, which is a good thing.

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Roundup: Some strings attached

Prime minister Justin Trudeau wound up holding an irregular presser yesterday, mid-afternoon instead of late morning, and with a specific purpose in mind – to announce that the federal government had finally come to an agreement with the provinces over the Safe Restart Plan, now pegged at $19 billion rather than the $14 billion initially put on the table. What is noteworthy is that there were still federal strings attached for this money, though some premiers noted that the strings were not as tight as before. The money is to go toward municipalities, transit, contact tracing, personal protective equipment, childcare, and ten days of paid sick leave (so now Jagmeet Singh can pat himself on the back, even though this was BC premier John Horgan’s initiative), and is to last for the next six to eight months, at which point there will be a re-evaluation of where everyone is at. Trudeau also made it official that the Canada-US border will remain closed to non-essential travel until August 21st.

During the Q&A that followed, Trudeau expressed optimism around the vaccine candidate being held up by Chinese customs, and said that in spite of the Russian hacking story, it was important to work with everyone to develop a vaccine and that they were working to get the balance right. When asked if he would appear before committee as invited around the WE Imbroglio, that his House leadership team was looking at the possibilities, but that he also looked forward to taking questions in the Commons next week during the scheduled special sitting day. Chrystia Freeland was asked about what she knew regarding the WE Imbroglio, and she gave a fairly lengthy response about how everyone accepts responsibility for what happened, and apologized, saying that “clearly we made a mistake and we’re going to learn from it,” adding that everyone knew that the PM was connected to WE but didn’t know of his family’s specific financial arrangements, and then added that she still supported the PM and that it was a privilege to serve in his Cabinet. When asked if Quebec had no problems with the strings attached to the billions on the table, Freeland said that they agreed to it like everyone else, and that it was actually a Really Big Deal to get all thirteen provinces and territories to sign onto a deal that includes the municipalities and covered several ministries, saying that it showed that Canadians have understood that we need to work together in this time of crisis.

Shortly after the presser ended, Bardish Chagger and her officials appeared before the Finance committee to discuss the WE Imbroglio. Chagger insisted that nobody in PMO directed her to make an arrangement with WE, but she kept deferring to her officials, which…isn’t really how ministerial responsibility works. There was also talk about how WE had sent an unsolicited proposal to several ministers about a youth programme before this was announced, which WE later came out and said was a youth entrepreneurship programme which had nothing to do with what became the Service Grant programme. This having been said, the senior bureaucrat on the file said that they had three weeks to come up with a programme, and that WE fit the bill for its requirements, which is why they were recommended – and pointed out that potential conflicts are for public office holders to deal with, not bureaucrats (which is true). Up today, the Ethics Committee will begin their own examination into the Imbroglio, so we’ll see if that goes any better.

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Roundup: Bad-faith grievance narratives and faux confusion

The day started off on something of a petulant tone, as Andrew Scheer complained that people were “upset and confused” by prime minister Justin Trudeau’s decision to attend the Black Lives Matter protest in spite of the pandemic, and furthered the bad faith grievance narrative by pointing to the Ottawa restaurant that was fined $880 for opening its patio. Scheer, and other Conservatives, spent the day obscuring the difference between what the federal government is in charge of and what falls under local public health guidelines, and deliberately playing up this “confusion” where none should actually exist – there were public health guidelines that said that if people were going to protest that they should wear masks and social distance, and then self-isolate afterward, if anyone bothered to pay attention.

Trudeau was up shortly thereafter for his daily presser, and he talked at length about those protesting, and people being afraid of the police, and that he promised to deal with systemic racism and listed actions that his government has taken to thus far to deal with it, including mental health resources for the Black community, an anti-racism secretariat and strategy under the Minister of Diversity, and agreed that it’s not enough. He also said that he has been in discussions with Cabinet, as well as the RCMP commissioner, and that he was also raising the issue of body cameras with premiers this week. Trudeau also mentioned that Bill Blair was following through on their commitment to Indigenous policing, and that this week the government would be undergoing a stock-taking on their reconciliation efforts with Indigenous people. He then pivoted to the wage subsidy and other measures being taken to help people, the $14 billion being offered to help provinces with their economic restarts, and finally announced that they had introduced a number of limited exemptions at the border for immediate family members of Canadians to cross – spouses, children, parents of minor children in Canada – but that they must still self-isolate for 14 days upon arrival. During the Q&A, he defended his attending the protests as balancing competing interests.

On body cameras, it looks like the RCMP has agreed to outfit some members with them, but it remains a controversial move, that may be seen as a band-aid solution to deeper problems. (Here’s a good thread by lawyer Michael Spratt to that effect). It’s also pointed out that if we want to shift resources away from the current model of policing, this is a big expense that makes it even harder to do so.

As the talk of the defunding/abolishing police gains momentum, here is a look at how Camden, New Jersey, has been doing an experiment in scrapping their police force and starting over, and some of the more important things to realize in his are that the incentives changed – not judging performance by the number of arrests or tickets issued, and a focus on making connections in communities. Of course, it also says that they haven’t made enough investments in the other community supports that are supposed to underpin this model, so that’s something to think about.

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Roundup: Threats over Keystone XL threats

Back from the Victoria Day long weekend, prime minister Justin Trudeau started off his daily presser by announcing that the government had agreed to extend the partial border closure with the US for another thirty days, before he started talking about how the government was working to expand the eligibility for the Canada Emergency Business Accounts so that more small businesses and entrepreneurs could apply for them. He also made a plea to employers to rehire their workers and use the wage subsidy programme, which is why it’s in place, but I guess we’ll see what kind of uptake that will get. In response to questions, Trudeau said that they were trying working to create a national framework around things like testing and contact tracing before the borders could re-open, but this being areas of provincial jurisdiction, it requires that kind of cooperation. On the subject of the resumption of Parliament, Trudeau was dismissive, citing concerns over MPs who may not be able or willing to head to Ottawa (as though accommodations can’t be made). When asked about the comments by Joe Biden in the US that he would cancel the permits for Keystone XL, Trudeau reminded everyone that he supported the project even before he was prime minister.

On the Keystone XL file, Alberta has recently put a $1.5 billion financial stake, alogn with $6 billion in loan guarantees, in completing said pipeline (after they pleaded poverty on keeping teaching assistants on the payroll and refusing other forms of pandemic aid in order to force them into federal coffers), so they’re threatening legal action, and Jason Kenney is promising to file a trade action if Biden is a) elected, and b) revokes the authorizations. But it also many not be that easy, and Alberta could be on the hook for major losses if this comes to pass.

Good reads:

  • Here’s a deeper look into the commercial rent subsidy programme, where the details are still being negotiated with the provinces before it is finalized.
  • The National Post tried to get a picture of Ontario’s preparations for economic re-opening, and there seem to be a lot more questions than answers.
  • The President of the CMHC says that this pandemic could raise household debt levels and cause a drag on GDP growth. (You don’t say).
  • The Royal Canadian Navy is relying on US Navy drones to help locate the wreckage of the Cyclone helicopter that crashed off the coast of Greece.
  • Here is a look at the challenges of running election campaigns in a time of pandemic (but the piece omits that Saskatchewan needs to have an election this fall).
  • The UK has released a preliminary post-Brexit tariff list, which gives Canada a start in terms of what kind of trade deal we will have to work out by the end of the year.
  • A Toronto attack from three months ago has been reclassified as an incel terrorist attack, which is the first time that incels have been branded as such.
  • Apparently Andrew Scheer discontinued his process to revoke his American citizenship, given he was no longer going to be prime minister.
  • Rona Ambrose has joined the board of directors of a vape company.
  • The leader of the Quebec wing of the Green Party is accusing Elizabeth May of having consolidated power through her “parliamentary leader” role.
  • New Brunswick’s legislature is adapting to in-person sittings by having some MLAs sitting in the visitor galleries to maintain physical distancing.
  • Max Fawcett notes the curious silence from the usual “ethical oil” types about the news that Saudi Arabia is investing in the Alberta oil sands as others pull out.
  • Susan Delacourt delves into how closely the Canadian and American governments have had to work to keep the border closed, in spite of their divergent approaches.
  • My column delves into the Procedure and House Affairs committee report on virtual sittings and finds the fix is in to make virtual elements permanent post-pandemic.

Odds and ends:

https://twitter.com/RoyalFamily/status/1262505806664290305

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Roundup: A bridge loan, not a bailout

It was a bit of a staggered rollout of the message of the day, starting with Bill Morneau and Navdeep Bains in Toronto to announce the creation of the Large Employer Emergency Financing Facility (LEEFF), which is designed to give large employers temporary bridge financing if they can’t get it by other means, but that comes with a great many strings attached, such as ensuring that jobs and collective agreements are maintained, that climate change plans are not affected, and that there are limits to executive compensation, share buybacks, dividends, and on top of that, these companies will need to disclose their financial structures to ensure that they’re not avoiding taxes with offshore banks or shelters.

Justin Trudeau was up shortly thereafter for his daily presser, noting the start of National Nursing Week, before he spoke about enhanced measures for medium-sized businesses, and then reiterated the messages around the LEEFF, citing that these were bridge loans and not bail-outs, and that the government was only to be a lender of last resort. When asked whether this was some kind of attack on oil companies with the focus on environmental plans, Trudeau insisted that many of them had net-zero-by-2050 plans, so this condition should not have been more onerous on them – but that didn’t stop the usual suspects from complaining that this wasn’t the kind of help that the energy sector was looking for.

During the ministerial presser, Chrystia Freeland said that they working with the US to deal with the inevitable increase in cross-border traffic as economies started re-opening, as premiers express reservations around the possibility of visitors once again coming to Canada.

Meanwhile, here’s economist Kevin Milligan on the path of the labour market and the economy, that’s worth thinking about.

https://twitter.com/kevinmilligan/status/1259641163989970945

https://twitter.com/kevinmilligan/status/1259641908436930560

https://twitter.com/kevinmilligan/status/1259642852260278272

https://twitter.com/kevinmilligan/status/1259644740460404736

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Roundup: Possibly a criminal leak

The day got off to a very brow-raising start when someone – meaning almost certainly a minister’s office – leaked StatsCan jobs data ahead of its official release to soften the narrative around it, given that the predicted number of job losses were twice as many as what wound up being reported. This is a big deal – it’s market-moving information that should have criminal consequences for leaking, and yet here we are. And what is particularly galling about this is that I have my suspicions about which minister’s office leaked the information, and it’s one that has been showing a particular pattern of impunity, which is a very bad sign for how this government works – and not to mention how it communicates. Because they can’t communicate their way out of a wet paper bag, someone took it upon themselves to leak sacrosanct data (which, it needs to be reiterated, should not and cannot happen in a gods damned G7 country) in order to spin the narrative. Heads should roll for this.

And then prime minister Justin Trudeau had his daily presser, acknowledging the jobs numbers before he announced that the government would be extending the wage subsidy beyond June in order to keep the (eventual) economic recovery strong, while also announcing that Navdeep Bains would be leading a new industry strategy council. During the Q&A, Trudeau also had to face questions about why nobody can say “Taiwan” when it comes to thanking them for donations of personal protective equipment, so Trudeau did just that, so I guess certain MPs will need to find something else to have a meltdown over next week.

And for the 75th anniversary of VE Day yesterday, the Queen made a televised address in the footsteps of her father.

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