Roundup: Carbon tax figures in context

The Parliamentary Budget Officer released his latest economic and fiscal outlook yesterday, which included some not unexpected things like warnings that the deficit might be larger than anticipated, or that debt servicing charges might start to increase, or that some government programmes may wind up costing more than stated in the budget. All fair game. But it was his analysis of the federal carbon price that really go the Conservatives (and their mouthpieces) excited – and as usual, it was an exercise in cherry-picked numbers that ignored the context of what was actually said.

In this particular case, the headline number was that by 2022, when the full $50/tonne price is implemented, the price could – and one has to stress could– cost the economy 0.5 percent of GDP, or $10 billion. And this had the Conservatives, and Pierre Polievere in particular, whooping at the government about how this was going to kill the economy. The problem is that the report goes on to say that if provincial governments actually recycle those revenues through reducing corporate or personal income taxes, for example, it would nullify that effect. Not that things like context or nuance, or even truth will dissuade a political talking point. University of Calgary economist Trevor Tombe explains more here:

Tombe also found this bit of the report overlooked by other media reports:

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QP: Borders and carbon prices

On a warm and sunny Monday in the nation’s capital, all of the leaders were present, so it was either going to be a really good day…or an insufferable one. Andrew Scheer led off, mini-lectern on desk, and he noted the unfolding situation of an alleged attack in Toronto with a white van running down pedestrians. Justin Trudeau noted that his thoughts were with those affected, and he would update the House as he learned more. Scheer then asked about the number of irregular border crossers affecting those who “wait in line” — except there’s not a line for asylum seekers, there’s a process, and he’s conflating it with immigration. Trudeau noted that Canada is signatory to international conventions, and that any arrivals are processed and that they go through proper security checks. Scheer tried again, and this time Trudeau wondered if Scheer was suggesting that they violate their international obligations. Scheer then turned to the PBO report on carbon pricing, and he cherry-picked one figure that portended doom (where the report stated differently). Trudeau gave a weary sigh, and reminded him that the economy and the environment go together. Scheer tried to insinuate that there was some kind of cover-up about the “economic damage” that a carbon tax would do, and Trudeau hit back that if Scheer was so concerned about secrecy, he should stop censoring Maxime Bernier. Guy Caron was up next for the NDP, and after he made a quick statement about the situation in Toronto, he demanded the immediate implementation of a universal pharmacare programme. Trudeau took up a script to say that the system can be improved and they are consulting on a national pharmacare programme — note that he didn’t say universal. Caron asked again in French, detailing previous Liberal promises, and Trudeau said that the NDP wanted to set up something without a clear plan, which is why his government set up an advisory committee to study and evaluate a universal pharmacare programme (not sure if universal was just a translation issue this time). Rachel Blaney took her own turn to demand pharmacare, and Trudeau repeated his answer about needing a plan, emphasising the digs at the NDP in the process. Blaney tried again, and got the same answer.

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Roundup: Convention resolutions to be forgotten?

Coming out of the Liberal policy convention, the party’s top five resolutions were pharmacare, mental health, decriminalizing small amounts of drug possession, decriminalizing sex work, and protecting pensions. Some of the resolutions are controversial to members of caucus, and there’s no guarantee that any of these will show up in the party platform (or the Order Paper beforehand) despite its what the grassroots members allegedly want (big caveats here given how centralized and top-down this process has become under their new constitution), but maybe there will be pressure to implement them. Maybe. Trudeau doesn’t seem keen on decriminalization talk while the marijuana bill is still being debated (and he’s expending political capital on it).

Their big exciting Obama-connected guest (because that’s what the Liberals and NDP have grasped onto for the past eight or nine years) was David Axelrod, who said that the party needs to show that they are still change-makers and not the status quo, while he and Gerald Butts talked about political life. Dr. Danielle Martin, who makes the case for healthcare in the US, spoke about the need for universal pharmacare in Canada. Among the ministers who got up to speak to delegates, Ahmed Hussen talked about being racially profiled while he encouraged Liberals to combat racism. Trudeau’s own speech to the faithful included its share of digs at the Conservatives as still being the party of Harper, so good thing they can still draw on that particular bogeyman. New party president Suzanne Cowan spoke about how they all needed to be fundraisers going forward. And hey, the rank-and-file members were expressing some particular concerns about the rash of self-inflicted wounds that the party keeps enduring.

And because it wasn’t all sunshine and roses coming out of the convention, MP Francis Drouin is now facing an allegation of sexual assault from an incident that happened during the convention, and he’s put out a statement to say that an allegation has been made and he’s cooperating with the investigation – nothing else. It’s probably worth noting that there were harassment workshops at the convention that both Justin Trudeau and Kent Hehr attended, and the facilitator of said workshops noted that Trudeau simply listened and took notes throughout, which impressed her. So we’ll see what transpires from here.

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QP: Portents of economic doom

 As Justin Trudeau met with Commonwealth Heads of Government in London, and Andrew Scheer spent the day in Quebec, which left Shannon Stubbs to lead off, and she read some declinist fan fiction about the collapse of the Canadian economy because the prime minister allegedly wants to phase out the oil sector. Jim Carr responded by listing some good economic news, including how Alberta is set to lead the country in growth, which the other party apparently couldn’t support. Stubbs read more doom, and Carr responded with the number of approved pipelines that were coupled with their oceans protection plan. Stubbs demanded championing of the sector, but Carr listed that the previous government didn’t get pipelines to tidewater, and that they ignored their constitutional obligations toward Indigenous Canadians. Gérard Deltell took over in French, lamenting IMF forecasts, to which Kirsty Duncan stood up to read some statistics about job growth and economic growth leading the G7. Deltell repeated the demand to champion investment in energy, to which Carr reiterated his lines about the Conservative record in French. Guy Caron was up next for the NDP, accusing the government of kowtowing to Texas oil giants, to which Carr reminded him that they took the lessons of the previous government’s failures and engaged in new consultations, which they felt covered off their Section 35 obligations. Caron reiterated the question in French, and Carr reiterated that their process was different than the Harper government’s, because that one had failed. Nathan Cullen was up next, to repeat the same question in English, with some added sanctimony, and Carr’s repeated response had a bit of exasperation creeping into it, and then they went yet another round of the same.

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Roundup: Bernier’s epiphany

All of the drama yesterday was the news that Maxime Bernier decided to spike his own planned book after his chapter blaming his loss on “fake Conservatives” supporting Andrew Scheer, particularly when the defenders of Supply Management took out memberships to stop Bernier. When he did release a statement late in the day, Bernier basically blamed the media for writing about the controversial stuff, which is kind of ridiculous given that he should have known that questioning the legitimacy of Scheer’s win, and putting in print that he planned to renege on his promise to shut up about Supply Management was going to be trouble no matter what else was in the book. (No word on whether he spent his advance already, as he now will have to refund it).

A couple of observations first: Of course the leadership contest was lousy with “fake Conservatives.” That’s what our leadership contests have become in Canada, given that it’s about trying to get as many new members as possible to bestow enough “democratic legitimacy” on a would-be leader so that they can turn the party into their own personal cult. Until we change the system and restore it to caucus selection, this will only get increasingly worse as time goes on. Part of his analysis that his problem was just defenders of Supply Management as the problem ignores the fact that there were a hell of a lot more people taking out party memberships in order to stop Kellie Leitch (and by extension, Brad Trost and Pierre Lemieux, but mostly Leitch). They didn’t deliver the contest for Michael Chong, and it’s hard to say how many of those ballots wound up going toward Scheer instead of Bernier. Also, Scheer knew that Bernier was going to be mavericky when he made him a critic on an economic portfolio, so he can’t be surprised that this kind of eruption was going to happen. It’s who Bernier is, and it’s kind of surprising that it took this long for Bernier to realize that maybe it’s not a good thing for the image the party is trying to put forward. (On a side note, every time a leader insists that they’ve never been more united, I brace for a defection, because I’ve heard those insistences too many times).

Paul Wells wrote a very good piece about Bernier and the value of loyalty in politics, which most journalists don’t really grasp, which explains why politicians do the things they do, and compromise in the way that they do. It’s one of the things I do think about and probably don’t wrap my head around enough, but it goes back to the way in which people continue to blame the parties for “making” MPs do things they wouldn’t ordinarily do, right up to compromising their beliefs and whatnot. MPs have the choice to do whatever – parties don’t make them, MPs do these things of their own volition. Senators too, for that matter – even when it goes against their best interest, or the normal operations of that chamber. They do it out of loyalty to the leader or the party, take your pick, and while we could have a debate about the effect of method of selection on that loyalty, we need to think more about that lens when we’re having these discussions.

Good reads:

  • In London, Justin Trudeau met with the Queen, as well as Thresa May, New Zealand prime minister Jacinda Arden, as well as Five Eyes partners on a security briefing.
  • Chrystia Freeland is headed back to Washington for some crucial decisions on NAFTA talks.
  • While Kinder Morgan’s CEO says the political battles may mean the pipeline remains untenable, BC says that they will file their court reference within days.
  • The Commons health committee released their study on universal pharmacare, which the health minister says will be the basis of their consultations.
  • In advance of the Liberal convention, the health minister has already rejected the policy resolution to adopt a Portugal-style drug decriminalization scheme.
  • Speaking of the convention, Kent Hehr says he will attend, and attend one of the sexual harassment workshops being offered there.
  • UN climate data shows our GHG emission are decreasing – but not nearly fast enough to meet our Paris targets.
  • A report from the former Inspector General of CSIS was uncovered, showing problems with the way the agency conducts interviews with detainees abroad.
  • The agency that was supposed to create guidelines for service dogs for veterans with PTSD has pulled out of the project unexpectedly.
  • Two Catholic Bishops took to the Hill to defend the Pope’s refusal to apologise for residential schools. One Conservative MP blocked a motion to demand an apology.
  • The RCMP are set for their union certification vote.
  • Pierre Poilievre continues to snipe about the guaranteed minimum income report, and cites Ontario’s model as a bad starting point because of costs.
  • Andrew Coyne looks at the PBO report on guaranteed minimum income, and wonders if three points on the GST is a good deal for eliminating poverty.
  • Chantal Hébert reads the polls and wonders if the pipeline debate is really resonating with Canadians, and whether it will affect Trudeau in the next election.

Odds and ends:

Liberal MP Neil Ellis was taken to hospital for an undisclosed condition.

https://twitter.com/AdamScotti/status/986641462380126208

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QP: Talking to elites

While Justin Trudeau was in London, meeting with Her Majesty the Queen and prime minister Theresa May, Andrew Scheer was in fact present today, in the wake of the salacious news that Maxime Bernier had pulled his book that was critical of his leader. Scheer, mini-lectern on desk, led off by reading some concern about investor confidence in the energy sector, and he claimed that the previous government got Northern Gateway “built.” Jim Carr stood up and stated that it was news to him that Northern Gateway got built, and didn’t in fact get its permits revoked by the Federal Court of Appeal. Scheer then got up rue that Trudeau was in Europe with elites, talking down on the energy sector, and Carr reminded him that just days ago he was here talking up the sector and the Trans Mountain expansion. Scheer insisted that Trudeau told his European audience that he was disappointed that he couldn’t phase out the oil sector tomorrow, but Carr rebutted with his line about how incredulous it was that Scheer took to the microphones on Sunday to decry Trudeau’s announcement after the meeting with the two premiers before Trudeau even made it. Alain Rayes got up to decry Trudeau’s lack of leadership in French, to which Marc Garneau stood up to lay out the support the government had given. Rayes wondered how much of taxpayers’ money would be spent on the project, but Garneau merely reiterated that they considered the project to be in the national interest. Guy Caron was up for the NDP, noted that the Health Committee’s study on universal pharmacare would be tabled later, and demanded action on it. Ginette Petitpas Taylor thanked the committee for their work, and she would consider its finding. Caron demanded immediate action in French, and Petitpas Taylor noted the commitments in the budget toward national (but not universal) pharmacare. Charlie Angus was up next, and demanded to know if the government felt their Section 35 obligations were met with Kinder Morgan, and Carr reminded him of the Supreme Court decision around Northern Gateway around consultations, so they went and consulted further for Trans Mountain. Angus pressed, terming it a “Liberal pipeline,” and Carr reiterated his line about the fact that there may not be unanimity, but there are many Indigenous communities who are in support.

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Roundup: Unconstitutional threats

Alberta’s Bill 12, that would give its energy minister the power to declare what can go in the pipelines that leaves the province, is almost certainly unconstitutional (and I think they’re being too cute by half in saying that it’s not because it doesn’t target BC specifically). It’s way overbroad in terms of the powers it gives the minister, and even if it somehow manages to pass constitutional muster, you can imagine that it would certainly be struck down by the courts for the sheer scope of how arbitrary it is. And in case you think that the pressure tactics of raising gas prices in BC are sound, it’ll likely do more damage to their own producers and refineries, whose supplies and production they are curtailing. So bravo for thinking that cutting off your nose to spite your face is good public policy, guys.

The premier of Saskatchewan, Scott Moe, says that he’s going to pass his own version to back up Alberta in their fight. Because that’s helpful. BC, meanwhile, says that because the bill is blatantly unconstitutional, it’s likely just a political bluff – but if it’s not, they’ll sue Alberta for it, as well they should. Alberta’s minister insists that it’s no bluff. So here we are, with few grown-ups in the room apparently, because they’re lighting their hair on fire to do something, anything, now, now, nowrather than coming up with a measured and reasoned response to the situation. And then there’s Michelle Rempel’s take. Oi.

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Roundup: Jean’s version

Yesterday finally saw that long-anticipated Daniel Jean appearance before the Commons public safety committee, and it was…not explosive. Much of it was simply reiterating everything we’ve heard before – that Jean was sensitive to misinformation that was appearing in media outlets that suggested that RCMP and CSIS didn’t take Jaspal Atwal’s appearance seriously, that there was a possibility this was an attempt to embarrass the Canadian government into looking like they didn’t take Khalistani separatists seriously, and that Jean himself suggested the briefing and PMO simply providing him with a list of journalists to reach out to. And when the Conservatives demanded to know about the “rogue elements in the Indian government” or “conspiracy theory” allegations, Jean corrected that he didn’t say those things.

Now, some of the journalists involved in the briefing are disputing a few details, and in particular the notion that Jean had suggested that perhaps Indian intelligence was involved (which he denied yesterday). And there remains this concern trolling that senior bureaucrats don’t normally go to the media like this so he “must have” been put-up to it by PMO, which I’m not really sure is the case, particularly because as we heard in later releases about Jean’s briefing, and in his testimony yesterday, he highlighted the use of “fake news” and propaganda by hostile outlets, which is why we wanted to correct them as a neutral third-party. This is not really a widespread concern just a few years ago, particularly given the way that it was seen as interfering with elections and whatnot, so it’s not out of the realm of possibility that he wanted to be more proactive about it.

Of course, the real hitch in all of this is that some of the sensationalized reporting around the original briefing, coupled with the torque applied to it by Andrew Scheer and company to the point where the story being proffered in the House of Commons didn’t match reality (which is Scheer’s stock in trade these days) have spun this whole narrative beyond what was a “faux pas,” per Jean. And when Jean’s narrative didn’t match Scheer’s, it was Scheer who tried to insist that Trudeau spoke about the “rogue elements” (he never did – he very studiously avoided any specifics and only said that he supported what Jean said), and that it was up to Trudeau to provide clarity for his apparent contradictions when he didn’t actually make any – it was Scheer himself who put forward a false narrative and has been caught with his pants down over it. But let’s also be clear – a lot of the reporting around this has not been stellar either, between sensationalization and omitting of aspects (like his concern about the misinformation being fed to Canadian media), coupled with a refusal to call Scheer out on his disingenuous framing of the whole thing, has led these false narratives to grow out of control. And they keep getting dragged on longer by things like yet more false claims being piled on, such as with the chickpea tariffs and the allegedly cancelled meeting that never existed, but do we call it out? Not until days later. And some journalists should own up to their role rather than get their backs up (like they did yesterday) so that we can move on from this whole incident because we really do have better things to discuss.

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QP: Not the debunking they were looking for

MPs were almost all wearing jerseys to pay tribute to the Humboldt Broncos on a day where the city was wrecked by an ice storm, while Justin Trudeau was on a official visit in Paris. After a moment of silence for the Broncos, Andrew Scheer led off, mini-lectern on desk and read some hyperbolic doom about the Trans Mountain pipeline expansion. Jim Carr first offered condolences to the people of Humboldt, and then said that the PM has given instructions and that the pipeline would be built. Scheer then listed some cherry-picked “evidence” about how the government has apparently shaken investor confidence in energy projects, to which Carr listed the approved projects. Scheer then switched topics to demand the government repeat the “debunked conspiracy theory” around the Atwal Affair™, and Ralph Goodale first gave his own tribute to the Humboldt Broncos. Scheer repeated the question, demanding that the government apologise to the Indian government, to which Goodale reminded him that the PM previously said he supported what Jean had to say. When Scheer tried to insist that there was a discrepancy — playing cute that he was the one who created that particular narrative and not the PM — to which Goodale reminded him again that he has not yet taken up the briefing that had been offered to him, and that he was remaining deliberately ignorant of the facts in the case. Guy Caron was up next for the NDP, raising Trans Mountain and jurisdictional issues, and Marc Garneau stood up to insist that they had federal jurisdiction as asserted by the Supreme Court of Canada. Caron switched to English to demand a Supreme Court reference on the question, and Carr reminded him that the BC government did approve it, they did not use the same approval process as the Harper government, and that they did unprecedented consultations with Indigenous communities. Charlie Angus then got up to rail that the Indigenous consultations were colonial, and Carr noted that the project was divisive, even within political parties. Angus gave it another go around, and Carr reminded him that they did undertake unprecedented consultations, and that 44 Indigenous communities do have benefit sharing agreements, and also raised the Indigenous-led monitoring committee.

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Roundup: Pallister’s dubious threats

Manitoba premier Brian Pallister is looking to talk tough with the federal government, essentially daring them to increase the carbon price that he’s instituting in his province with a threat to take the federal government to court if they do. This after Pallister’s government already explored the notion of taking the government to court over the imposition of a federal carbon price backstop in the first place, and deciding that it wasn’t something they could win. For reference, Pallister’s government says they’ll implement a $25/tonne carbon tax, and leave it there rather than raise it every year (the point of which is, of course, to drive businesses and consumers to make choices that mean paying fewer of these carbon prices), and Catherine McKenna is basically saying “That’s great, but if your price doesn’t increase in 2020 like it’s supposed to, we’ll charge the difference.” While Pallister is trying to stand with other small-c conservative leaders – most of whom aren’t yet in office – I’m really not sure where he thinks he has the legal footing on this one.

Why does this matter? Well, recall the Environment Commissioner’s report last week that was done in concert with provincial auditors general, and as Paul Wells points out in this excellent piece, they could demonstrate that it wasn’t just the Harper government not doing their part (as McKenna was so quick to focus on), but rather the provinces weren’t doing their part either – especially those who were talking a good game. Nobody is taking this seriously, and the ability to hit our targets gets further away. And in the midst of Wells’ excoriation of these political leaders and their big talk on the environment, he drives home the message that we can’t believe any of them. And he’s right. Which is why we can’t believe Pallister’s rhetoric in this either, as he claims that his province’s plan is better than the federal one, so they shouldn’t have to add the increased carbon tax as part of that. Sorry, but no. The common carbon price across the country is about more than just reductions as it is about preventing carbon leakage to other jurisdictions in the country (and possibly elsewhere, depending on how well its designed), and he should know that. But just like the federal conservatives playing cute with trying to insist that McKenna should be able to tell them exactly how many megatonnes a $50/tonne carbon price will reduce, it’s not how this works. A carbon price is not a scrubber in a smokestack – it’s a market mechanism that is supposed to drive demand and innovation, and it works in jurisdictions where it is implemented properly. It’s not just about a claim that their system with a lower price will be better, which is a claim we shouldn’t believe anyway. It’s time for everyone to play hardball with politicians and these promises, and that means more than just disingenuous questions or demands, but actual accountability for what mechanisms are supposed to do and how they’re being implemented.

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