Roundup: Exit Butts, leaving uncertainty in his wake

So, mid-Family Day when most people in most provinces of this country were enjoying a day off (federal workers excluded), the latest bombshell in the SNC-Lavalin/Wilson-Raybould drama dropped – that the prime minister’s principal secretary, Gerald Butts, resigned his position. In his resignation letter, he vigorously denied any wrongdoing but was removing himself from the office to defend himself and to keep from being a distraction. Of course, the Conservatives cheered, but insisted that this was the sign of a PMO in crisis, and they would continue to get to the bottom of things at the Justice Committee (despite the fact that they’re limited in what they’re actually able to look into, and they are apparently going to go beyond the bounds of what procedure allows). The NDP, meanwhile, will be using their Supply Day to move a motion to demand an independent inquiry into the whole matter – because what government would welcome a Gomery-style inquiry that has the potential to spin out of control and blow up in their faces?

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It’s not hard to note that this leaves a gap in Trudeau’s office – Butts was his long-time friend and one of the architects of his success. But he was also seen by opponents as this puppet-master figure (RIP all of those “PM Butts” Twitter accounts), and among other observers of politics that he and Katie Telford may have also been a bit of a bottleneck for decisions. We’ll see who Trudeau replaces him with, and if the management style in the PMO changes as a result. We’ll also see if the mood in the caucus changes as well, and it’s been theorized that it’s another reason for the departure – that MPs have been getting restless with the amount of control that Butts has (cue the stories about MPs disgruntled about the way that caucus meetings are being handled, and that they’re afraid to air their views there for fear of being insulted). There are several months before the election, so perhaps this will give them time to right the ship in time. Maybe.

In terms of reaction columns, Susan Delacourt reflects on the Trudeau-Butts power dynamic within the party, and the uncertainty that is left in the wake of the departure. Chantal Hébert notes that Butts’ resignation may deflect the internal friendly-fire, but could leave Trudeau vulnerable on the eve of the election campaign (which is still eight months away!). Likewise, John Ivison hears that there may have been a “riot” at Liberal caucus on Wednesday had Butts not resigned, and this move makes him something of a scapegoat. Paul Wells regales us with the role Butts played as the “senior Liberal insider” in media stories, and how this central role in the PMO was probably not suited to federal politics, which will mean a way of reforming how Trudeau’s government operates.

Amidst this, there are two threads from Philippe Lagassé that you need to read – the first questions the critique that there are too many political staffers running things and that Parliament would work just great if they were gone. (I too find this a problematic assertion given that the bigger problem is the way in which our bastardized leadership contests have inflated the leader and his or her office in the first place). The second is a corrective to the specious lines about the “unelected” nature of the PMO and the power it wields, as people forget that we don’t elect prime ministers or Cabinet – they are appointed positions. Only the House of Commons is elected.

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Roundup: Flippant suggestions stepping on the message – again

There weren’t any official new developments in the SNC-Lavalin/Wilson-Raybould controversy yesterday, but we did get a few more drips of information, like how prime minister Justin Trudeau had a one-way teleconference call with the caucus in the wake of Jody Wilson-Raybould’s departure, with the main message being that he still wished her well and didn’t want her booted from caucus. Not helpful was justice committee chair Anthony Housefather who somewhat flippantly suggested that perhaps Wilson-Raybould was replaced because she didn’t speak French at a time when a great many legal issues are coming up in Quebec – only to apologise later and clarify that he said it in relation to the baseless speculation that is rampant, not because it was a serious suggestion (except he did repeat it in a couple of different interviews, but I’m sure it sounded good in his head at the time). Because this party never ceases to stop stepping all over its own message, and can’t communicate their way out of a wet paper bag. Every. Single. Time.

In the absence of any new developments in the story was looking at where various Liberals are starting to align themselves in relation to Wilson-Raybould’s current status, but that hasn’t stopped the anonymous Liberals from trying to give takes about “crossed wires” and “revisionist feelings” with benefit of the doubt going to Trudeau – or not, in other cases. Northwest Territories MP Michael McLeod points out that Wilson-Raybould’s departure means there is no longer Indigenous representation in Cabinet (expect this to be a factor in the upcoming shuffle). New Brunswick Liberal MP Wayne Long continues to break ranks and say he wants more answers, and good for him for doing his job as a backbencher properly. Oh, and PMO now apparently condemns the smack talk of other anonymous Liberals besmirching Wilson-Raybould’s record following complaints from Indigenous groups that said it was sexist and racist. Elsewhere, a number of Indigenous senators published a letter of support for Wilson-Raybould but also noted that this shouldn’t derail reconciliation, which is more than the work of one minister. (Senator Brazeau was not among them and is trying to make more hay of this).

In related matters, here’s a look at how the way in which the Ethics Commissioner undertook his examination (note that he didn’t investigation) of the matter could mean that he can end it at any point without a public report, and it’s not clear that he really has the scope to undertake such an investigation to begin with. The premier of Quebec is calling for SNC-Lavalin to get that deferred prosecution agreement, surprising no one. Here’s a look at SNC-Lavalin’s history of lobbying on the issue, and why Quebec sees the company as an asset in spite of their poor history.

Meanwhile, Susan Delacourt thinks there are lessons from #MeToo that Trudeau should be drawing from in handling this whole mess, particularly as silence remains on half of the tale. Jen Gerson thinks that it’s time to stop treating SNC-Lavalin with kid gloves, and that their demise may actually benefit a number of other companies who don’t have a history of corruption.

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Roundup: A hard Wilson-Raybould exit

The day got off to a quiet start, with news of an emergency Cabinet meeting (via teleconference), followed by the news that Jody Wilson-Raybould had resigned from Cabinet (but not caucus), and retained a former Supreme Court of Canada justice as a lawyer to figure out what she’s able to say. Trudeau’s office later said that she informed him last night, and that Harjit Sajjan would be temporarily taking over the Veterans Affairs file until someone new can be put into the position. And people noticed that Trudeau didn’t thank Wilson-Raybould for her contributions after the fact either.

When he did face the media later in the day, Trudeau said that he was surprised and disappointed by Wilson-Raybould’s decision, and that he couldn’t understand why she made it. But as is his usual way of doing things, it was all a bit rehearsed, because he repeated those words almost verbatim in response to reporters’ questions. But he also said that if Wilson-Raybould felt like rules weren’t being followed that she should have come to him, and she didn’t. He did also say that he’s trying to figure out the options around what they can say under solicitor-client privilege because they don’t want to have unintended consequences for the two other ongoing court cases related to the SNC-Lavalin matter, which is fair and valid, but he’s already given flat denials about what was reported in the Globe and Mail initially. (Here is a more in-depth explanation of the restrictions she is under when it comes to Cabinet confidence and solicitor-client privilege, neither of which have a time-limit).

The next battleground is going to be the justice committee, which meets today, and the question is how the Liberals are going to decide to go. Trudeau is publicly saying he’s not directing them because that would be against their parliamentary role (and I will say it was mighty galling for Candice Bergen to go on TV yesterday to say that the Liberals direct what happens at committees when they are far more hands-off than the Conservatives ever were, given that they had ministers’ staff directing their committee members when they were in government). The chair, Anthony Housefather, says that he is leaning toward hearing from witnesses on the issue, but he is more likely to do so under an amended motion rather than the one the Conservatives and NDP tabled (in part because of the suggested witness list), not to mention the fact that he’s wary of the whole exercise turning into a partisan gong show rather than a non-partisan way to get some answers. But with this in mind, the Conservatives are doing everything they can to make this a partisan exercise, from Andrew Scheer tweeting out the phone numbers and email addresses of the Liberals on the committee so that people can “demand” they agree to their motion, and the fact that they are putting Pierre Poilievre on the committee as one of their “replacement” members, because “logistics” with the snow storm. It would almost sound to me like they want to do as much as they possibly can to annoy the Liberals and to turn them off from holding any kind of hearings so that the Conservatives can claim they’re participating in a cover-up. Because they would never engage in that kind of concern trolling. (Note that Scheer has also demanded that they “preserve all records” on this, because he is also pushing the narrative that the same Liberals from Queen’s Park who destroyed the gas plant files are now in Ottawa).

As for Wilson-Raybould’s departure, some of the reporting is getting a bit cringe-worthy, particularly how they keep reaching out to her father for comment. I can think of no other ministerial demotion or resignation that sought comment from their parents, for what it’s worth. As well, the fact that the reaction from Indigenous leaders as this being some kind of betrayal also leaves me a bit unsettled because it was no secret that things were not being well managed in Wilson-Raybould’s office in Justice, and the narrative seems to reinforce the notion that it’s not the quality of the job being done, only the symbolism of the person holding the office. That particular lens on what has taken place over the past few days seems to be absent, while Wilson-Raybould is tactical in her silence. Meanwhile, some Cabinet and caucus colleagues are tweeting support for Wilson-Raybould, while others try very much to walk the line.

It’s worth adding that SNC-Lavalin is in the midst of yet another criminal investigation in Quebec regarding their bid for the Cartier Bridge. This while every newspaper in Montreal is running columns wondering why the opposition wants the federal government to let SNC-Lavalin fail – something that will have impacts come the election.

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Meanwhile, Anne Kinston parses Wilson-Raybould’s resignation letter, while Susan Delacourt notes the weight of the silence on what has taken place – and offers us some new information about the shuffle and the discussions with Wilson-Raybould that took place at the time. Paul Wells looks at all of the behind-the-scenes work done by SNC-Lavalin through the past few years, and the way in which they attempt to exert influence in Ottawa, and shows that this seems to be the underlying way things work in Ottawa amidst the government’s talk of a new way of doing things.

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Roundup: Welcoming (another) investigation

And thus, the SNC-Lavalin/Wilson-Raybould drama rolls along (and don’t you dare -gate this, or I will hunt you down and hurt you). The day began on a few different developments – first, that the Ethics Commissioner said he would begin “an examination” into the matter (which everyone stated was an investigation, though for a matter that has involved the parsing of words, I’m not sure that one is equal to the other), and that the Prime Minister said that welcomed the investigation from the Commissioner (possibly because it will take seven to nine months), that he’d spoken with Jody Wilson-Raybould twice over the past couple of day and stated that when they met back in the fall, and that he told her that any decisions around the Public Prosecution Service were hers alone (in the context of the public lobbying that was being done on all sides). And more to the point, he noted that the fact that she’s still in Cabinet should be proof that what’s alleged didn’t happen, as she would have resigned out of principle if she had been pressured, per the Shawcross Doctrine, and if he didn’t have confidence in her, then he wouldn’t have kept her in Cabinet. Oh, and he would ask the current Attorney General to look into the matter of whether he could waive solicitor-client privilege, because it’s not a simple matter (which got legal Twitter buzzing again).

Of course, none of this is proof enough for the opposition parties, who are demanding that the Justice Committee study go ahead, and the meeting is called for Wednesday, though the Chair has said that he’s hesitant because of the way in which the meeting was called, and the fact that he’s afraid of it simply becoming a partisan circus rather than a useful non-partisan exercise in getting to the truth of the matter. Other Liberals, like New Brunswick MP Wayne Long, is hoping the committee does take up the matter because he’s “troubled” by the allegations, while Celina Caesar-Chavannes is coming to Wilson-Raybould’s defence in light of accusations that there is a smear campaign in the works. And as added context to what is at stake, the federal government signed $68 million in new contracts with SNC-Lavalin last year, and they have a stake in some major projects.

Meanwhile, University of Toronto professor Kenneth Jull walks through the benefits and problems with deferred prosecution agreements like SNC-Lavalin has been pushing for. Kady O’Malley’s Process Nerd column goes through procedurally what is likely to happen during Wednesday’s justice committee meeting. Lawyer Michael Spratt sardonically wonders if Wilson-Raybould couldn’t achieve any of the promises in her mandate letter because she was being held back by PMO. Andrew Coyne remains adamant that there has not been a proper denial in any of this mess, as the PM continues to step on his own messaging, like he so often does.

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Roundup: Independence and intense discussions

As we’re still discussing the SNC-Lavalin/Jody Wilson-Raybould issue, we’ll start off with an interview with the Director of Public Prosecutions on her independence from political pressure, and why she opted not to enter into a deferred prosecution agreement with SNC-Lavalin, as well as why their quest for judicial review is foolhardy. Elsewhere, “senior officials” say that intense discussions with Wilson-Raybould on the SNC-Lavalin issue did take place, but that there’s nothing wrong with that. David Lametti took to television to say that he doesn’t see any evidence to warrant the justice committee’s investigation, but it’s up to them to decide. It also sounds like the Liberals on the justice committee are going to turn down the motion to launch an investigation, so expect more howling about this over the week to come.

While we wait for the committee, Andrew Scheer has written to the PM to demand that he waive solicitor-client privilege with Wilson-Raybould, under the ham-handed threat that failure to do so means that he has something to hide. Scheer, it has also been noted, also met with SNC-Lavalin lobbyists on their criminal charge issues and deferred prosecution agreements, but Scheer won’t say what his positions on them are.

Amidst this, there are a few more anonymous Liberal voices grousing about Wilson-Raybould in the media now, saying that she was more about herself than the team, and that she only ever showed up to Indigenous caucus once.

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Meanwhile, University of Ottawa law professor Craig Forcese walks through the public law principles at stake, and the fact that we don’t really know just what is being implied because the terms used interchangeably in the original Globe story all mean different things, which makes the nuance of this situation inherently tricky. Keeping Forcese’s analysis in mind, Susan Delacourt hears from her “senior officials” that the PM still has confidence in Wilson-Raybould and that he plans to meet with her before the next Cabinet meeting, and they continue to dispute the account in the Globe and Mail, citing that if they had attempted undue influence that she would have resigned out of principle, and she did not.

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Roundup: Too big to prosecute?

So, yesterday was a bit of a day, wasn’t it? To recap – the Globe and Mail published a piece that cited unnamed sources that the PMO had leaned on then-justice minister Jody Wilson-Raybould to direct the Director of Public Prosecutions to abandon the prosecution of SNC-Lavalin as part of an ongoing corruption trial (related to Libyan contracts) so that they could take a deferred prosecution agreement instead – basically a plea deal administered by the courts, which the Director had thus far refused to do. (Note: For the Attorney General to make such a direction to Public Prosecutions, it must be done publicly and published in theCanada Gazette. This is not something that can happen on a whim). The story goes that Wilson-Raybould refused, and coincidentally she was shuffled from the post weeks later. Justin Trudeau refuted this, but because he strictly said that he and his office didn’t direct Wilson-Raybould or now David Lametti on this file, everyone parsed that as not saying he didn’t apply pressure, only for Lametti and every other Liberal put out on the file later in the day to add that he didn’t direct or put pressure on them. For what it’s worth.

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Now, I have questions. If the PMO applied this pressure, it would be a Very Bad Thing. And we don’t know if they did or didn’t. However. The Globe story gets out the red ball of yarn and starts pinning lines between different items on the conspiracy map, and some of those items I have a problem with being there. One of those items is that the government passed amendments to the Criminal Code that enabled there to be deferred prosecution agreements back in the spring, and one of the “sources” that the Globe taps insists that this was done solely to benefit SNC-Lavalin. And I have a problem with that. Why? Because I wrote about those provisions back when they were being debated, and I spoke to a number of lawyers who specialise in white collar crime. If this had been solely for the benefit of SNC-Lavalin, I would have expected them to say that this makes no sense in the bigger picture, but they didn’t. Instead, they said that these changes barely had Canada keeping up with other comparable jurisdictions (and in fact, some said that they still kept us behind). The consensus was that these kinds of changes were long overdue. And there is a record of government consultations about this issue that produced a report. For this to be a “direct line” doesn’t hold any water. “Oh, but they lobbied!” Of course, SNC-Lavalin lobbied. It was in their interest to do so. That’s not a revelation, nor is it any indication that the government actually listened to them. They’re also trying to get judicial review of Public Prosecutions’ decision not to offer them a deferred prosecution, but that doesn’t mean they’ll get it either. We also need to remember the size of SNC-Lavalin, and how many thousands of jobs and billions of dollars they have on the line, particularly in Quebec, and if any party thinks that they’d “get tough” on them with that on the line, they’re deluding themselves. (This is part of the problem with oligopolies in Canada).

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There is also the point about Wilson-Raybould in this. Many people, pundits included, are suddenly treating this story as some kind of exoneration for her demotion, and ignoring the fact that there were very real reasons for why she was replaced, many of which had to do with the fact that she wasn’t managing her office competently, and she was making questionable staffing choices in her own office. I have my own unnamed sources in the legal community who can point to her incompetence, and this is now being swept under because she’s suddenly being hailed as a hero – which is another reason why I have some suspicions about the source of this story (and why she hasn’t been in a hurry to offer any denials, only a “no comment”). The Globe story and its reporters are also trying to draw a line in her post-shuffle release about the justice system being free from political interference, but again, this was also taking place in the backdrop of the Meng Wanzhou extradition affair, and questions about the rule of law clanging around, so again, I have doubts that there is a direct connection.

So what next? Well, we can expect another few days of communications incompetence from Trudeau and the government because that’s what they do every single time something blows up on them, and eventually they’ll be forced to be more candid, but by then, everyone will have parsed everything to death and filled in the gaps with their own wild theories. Because this is a government that can’t communicate their way out of a wet paper bag, and they make things worse for themselves every single time. There are demands for a police inquiry or a full public inquiry, but I have my doubts that Trudeau would call one so close to an election – but stranger things have happened.

Meanwhile, Chris Selley points to the shocking levels of cynicism that this whole story displays, while Susan Delacourt notes that the silence around Wilson-Raybould is allowing the “ring of truth” to overshadow a more complicated actual truth (and also hints to possible morale problems in the Liberal caucus). Paul Wells offers some withering analysis of what’s gone on with this, and the way this is reflecting on certain senior PMO staff, which could be a growing problem.

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QP: Lametti on repeat

Following a morning dominated by a salacious tale in the Globe and Mail, Justin Trudeau was off in the GTA (where he denied the allegations in the story), but Andrew Scheer deigned to show up to get some clips of him asking angry questions about that story. And when the time for oral questions was called, Scheer led off, mini-lectern on desk, and he read the allegation in French that the government was pressuring the Attorney General over SNC-Lavalin. David Lametti got up and categorically denied any pressure was applied. Scheer asked again in English, and Lametti stood up to say the allegations were false. Scheer said that wasn’t the question, and asked again, and again Lametti repeated the response. Scheer then asked if the criminal prosecution questions came up as part of SNC lobbying, and Lametti said he wasn’t party to those meetings. Scheer read that SNC lobbied the government 14 times, and Lametti repeated that no directions were given to him or his predecessor. Guy Caron was up next, stated that SNC gave illegal donations to the Liberals in 2006, and now wanted help from the government, and Lametti repeated that the allegations were false. Caron tried again, linking this to Jody Wilson-Raybould being “fired,” and Lametti again repeated the allegations were false. Nathan Cullen got up to repeat the question in English with added sanctimony, and Lametti repeated again that he or his predecessor were not subjected to pressure. Cullen tried again, throwing everything he could manage at the topic, but got the same reply.

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Roundup: Scheer’s own personal Brexit idea

You may have heard the Conservatives making a big push over the past couple of weeks about promising that they would bow to Quebec’s wishes and let them have a single tax return (as in, surrender the federal authority to collect income tax in the province, as opposed to Quebec returning to the system that every other province uses by which the federal government collects all taxes and turns over their provincial share). While the Conservatives portray it as a simple administrative change, and that there wouldn’t even need to be any job losses – just put those 5000 CRA employees in Quebec to work on tax evasion! – it’s really a lot more complicated than that. While Alan Freeman wrote about the history and why it’s naked pandering to Quebec, tax economist Kevin Milligan walks through the complexity, and quite tellingly, notes that this is a Brexit-like proposal from Scheer – bold idea, no proposal of how to implement it. And yes, that is a problem.

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QP: A gaffe and a gotcha

A very a sloppy Tuesday in Ottawa, and the prime minister was present for QP; Andrew Scheer was again absent. Alain Rayes led off, and he launched into an attack against Justin Trudeau because he ruled out a single tax return for Quebec. Trudeau stated that they would defend Quebeckers, including the 5000 people working for CRA in the province. Rayes disputed that this was about jobs, but Trudeau did not let up on that point, and asserted that it meant that the Conservatives didn’t understand the issue. Pierre Poilievre led off with the usual attacks against the prime minister’s family fortune, before railing about the deficit, to which Trudeau reminded him that his assets are in a blind trust, and that it was noteworthy that the Conservatives didn’t ask the previous question in English, because it showed that they weren’t afraid to beggar certain provinces. Poilievre repeated “blind trust” and spun it into an attack that he wanted Canadians to blindly trust him while he ran up the deficit. Trudeau noted that the Conservatives were content to give benefits to millionaires while he was focused on the Middle Class™. Poilievre accused him of class warfare, to which Trudeau reminded him that low income families don’t pay taxes, which he quickly corrected to them not benefitting from non-refuneable tax credits when they don’t pay taxes, before he praised the Canada Child Benefit. Guy Caron was up next for the NDP, and demanded a national pharmacare plan, to which Trudeau picked up a script to read about their advisory council coming up with a report on implementation. Caron railed about private insurance and corporate profits, to which Trudeau reminded him that they didn’t have the report, so they were simply engaged in fear-mongering. Don Davies repeated the question in English, to which Trudeau read the English version of his script. Davies repeated the point about private profits, to which Trudeau accused him of grasping at straws.

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Roundup: The C-69 battle begins

The Senate’s Energy and Environment committee is slated to begin their examination of Bill C-69 today, which promises to be a right gong show as the Conservatives have been pledging to do everything they can to kill the bill, which could mean attempting to delay things as long as possible – which is one reason why they have been aggressively pushing for the committee to hold cross-country hearings. This is being pushed back against by the government whip – err, “liaison,” and the leader of the Independent Senators Group, but that hasn’t stopped the agitation. Conservative Senator Michael MacDonald went so far as to pen an op-ed in the National Post that says the prime minister is trying to “keep the Senate from the people,” which is absurd on its face considering that Trudeau’s hands-off policy on the Senate is one reason why the Chamber is in a bit of disarray at the moment.

Meanwhile, there will be an effort from non-Conservative senators to see amendments to the bill, which could create its own delays as the debates and votes on those amendments could get drawn out for weeks, while the parliamentary calendar ticks down. (For reference, I wrote this piece last week, talking to lawyers on both the environmental and proponent sides of the issue about the kinds of amendments they would like to see). The bill has its issues, no doubt, but the rhetoric around it has reached hyperbolic proportions, and much of the opposition we hear has become based on myth rather than fact or analysis. That’s going to make the Senate’s deliberations more difficult in the weeks ahead, as people will be howling about non-existent segments of the bill, and we’ll hear the daily demands in QP that the bill be withdrawn, never mind that the current system isn’t working and has been the subject of numerous court challenges. I suspect this will become a very nasty fight before the end of spring.

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