Roundup: Trying to escape child care obligations

Some Alberta daycare operators are starting “rolling closures” to protest the new funding regime that goes along with the $10/day early learning and child care programme, saying that they’re not getting enough to make ends meet. This is 100 percent a provincial problem—they signed onto the agreement with the federal government, knowing what the funding agreement was and that they had obligations for provincial funding, and that included increasing the wages of the people who work in the sector (because there’s no excuse for it being so low, particularly as there is a gendered element to it).

So what’s Danielle Smith’s response? Aside from denigrating the operators doing these rolling closures, she is trying to blame the federal government, claiming that their spending caused inflation to rise, which is what is making these operators face problems. Which is, of course, bullshit. Federal spending has nothing to do with the rise in inflation (as the Bank of Canada has stated many times over), and even more to the point, this child care programme has been disinflationary (at least for the early years, before the base-year effect kicks in, meaning it’ll be a one-time drop in inflation). Nevertheless, because she’s blaming the federal government, she wants to shake them down for more money, because that’s what provinces do every single time. Thus far, federal ministers are holding firm and pointing out that provinces knew what they signed onto, but legacy media, of course, is once again trying to make this a federal problem.

And this keeps happening. We never hold provinces of the premiers to account for anything. Another good example is social housing—as former minister Sheila Copps pointed out, back in the eighties, the provinces insisted that the federal government get out of housing because it was provincial jurisdiction, and just give them the money, and they knew best how to spend it. And happens every single time, they spend the federal money on other things, and then blame the federal government once things reach a crisis because of their under-spending. Same with healthcare. Because we are allergic to holding premiers to account in this country, and that’s a very real problem.

Ukraine Dispatch:

Russia is refusing to turn over any of the purported POW bodies from that downed plane, because it totally isn’t a psy-op. The head of Ukrainian military intelligence says that he expects the Russian offensive on the eastern front to fizzle out by early spring, by which point they should be exhausted. Lviv in western Ukraine has become the first city to remove all of its Soviet-era monuments.

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QP: Memory-holing past indifference

The prime minister was elsewhere, meeting with the president of the Slovak Republic, who is currently on a state visit to Canada, but his deputy was present for a second day in a row (which is a rarity these days). Pierre Poilievre led off in French, and mocked the prime minister saying that all spending has been absolutely necessary, but noted that a large percentage of consultants hired for ArriveCan resulted in no work done, and demanded the money be recovered. Chrystia Freeland said that Canadians understand that when Conservatives talk about spending, they want to cut things like dental care and child care. Poilievre said that the ArriveCan app was an example of “corruption,” and then railed that the Bloc did an “about face” on their support for Bill C-234, and demanded the government pass it in its original form. Freeland insisted that while she can’t speak for the Bloc, the nation of Quebec understands the need to combat climate change. Poilievre switched to English to repeat that number of ArriveCan contracts were not fulfilled and demanded the money be recouped. Freeland insisted that the Conservatives only want to cut services. Poilievre then pivoted to Trudeau’s vacations, and demanded to know if he paid the “full carbon tax” on each ton of emissions. Freeland asked if he knows how much the heating of Stornoway costs, and that the government was helping people with climate rebates. Poilievre insisted that he pays for his own vacations, and demanded that the government undo the amendments to Bill C-234 and pass it. Freeland pointed out that Poielivre also doesn’t pay rent on Stornoway, and that he wants to take away the climate rebates people rely on.

Alain Therrien led for the Bloc, and decried Quebec’s settlement capacity for immigrants and refugees, and railed that this was impacting housing. Sean Fraser praised the agreement that they came to with Quebec to build more houses. Therrien railed that immigration levels were still going up, and demanded the targets be lowered. Marc Miller pointed out that they already have an agreement with Quebec to manage its immigration levels.

Jagmeet Singh blamed the Liberals for the housing crisis in Toronto, and demanded they capitulate to Olivia Chow’s blackmail. Freeland praised Toronto, and said they were having “constructive conversations” with the city and the provinces, and that they have given more than any previous government. Singh switched to French to decry that the government has called for another investigation into grocery chains rather than taking action. François-Philippe Champagne said that the best solution is for more competition, and that he has asked the Commissioner to use his new powers for this.

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QP: Watch out, the kids are back

The prime minister had not planned to be in the Chamber today, and yet there he was, present for the moment of silence on the Day to Combat Islamophobia, and then stuck around for the Leaders’ Round. Pierre Poilievre led off in French, raised the prime minister’s vacation, and then blamed him for rising rents in Montreal. Trudeau stood up and gave a statement about the Day to Combat Islamophobia in French. Poilievre again blamed the prime minister for students living in shelters and demanded he end inflation and let developers ensure affordable housing. Trudeau noted that the was merely launching personal attacks, and that he voted against actions to help accelerate housing. Poilievre switched to English, and returned to the issue of Trudeau’s vacation, and wanted to know if he paid the “full carbon tax” on the flights he took. Trudeau read that Poilievre has no plan for climate change, while climate change causes droughts, which causes droughts, which rises food prices, and Poilievre has no plan for that. Poilievre called Trudeau a “high-carbon hypocrite,” and Trudeau called out individual Conservatives for voting against things they previously believed in. Poilievre then accused Trudeau of “muzzling” backbencher Ken McDonald and demanded he put his leadership up for review. Trudeau recited how they are working with mayors to build housing, before calling out Leslyn Lewis’ lunch with Christine Anderson.

Yves-François Blanchet led for the Bloc, and he returned to his private little conspiracy theory about the Century Initiative around immigration levels. Trudeau pointed to the need for immigrants, and that the levels are stabilising. Blanchet then demanded better distribution of asylum seekers, and Trudeau insisted that hey were working with provinces. 

Jagmeet Singh rose for the NDP, and he railed about homelessness but it was hard to hear him over Conservative roaring. Trudeau read a script about using every tool they have to ensure housing affordability, such as their announcement that morning. Singh switched to French to decry renovictions, which is a provincial issue. Trudeau read some boilerplate language.

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Roundup: Chow chooses blackmail

Toronto mayor Olivia Chow woke up and chose violence, as the kids say, when it comes to her budget proposals for Toronto. While the 10.5 percent property tax increase is long-overdue for a city whose property taxes remain well below the national average after years of austerity governments who have allowed the city to crumble so they can keep from increasing said property taxes (and this is not unique to Toronto either), she is also calling for an additional measure—federal blackmail. The proposal is called a “federal impacts levy,” or an additional six percent increase ostensibly to cover the costs of providing services for asylum seekers, and is basically holding the federal government at knifepoint, saying pay up or all your safe seats in this city are going to be in jeopardy.

The asylum seeker issue is rife with other levels of government falsely claiming that this is solely a federal responsibility, so they should foot the whole cost. It’s not actually true—the federal government is responsible for refugees once their claims have been approved, but before that point, they generally fall under the social services provided by provinces and municipalities, and the federal government will reimburse a portion of those costs. Of course, premiers like to wash their hands of this because of course they do (and there is a constant rhetorical battle happening in Question Period where the Bloc keep demanding that the federal government owes Quebec some $450 million for the provision of services, again falsely claiming sole federal responsibility), which leaves cities often bearing the burden, and Toronto and Montreal most especially as they get the lion’s share of asylum claimants. There remain questions around Toronto, if they have followed the proper channels to request federal funds for this (I believe there is a need for a certain provincial action to accompany it which may not have been undertaken), but again, they have been given millions of dollars this year for assistance with this.

My bigger concern is the Pandora’s Box that this kind of federal blackmail opens up. While some pundits will declare it to be genius, and on a strategic level, it is a clever way to back the federal government into a corner, but at the same time, this invites other cities or provinces to start adopting this kind of tactic, and even more to the point, it once again leaves the province—whose constitutional responsibility the city is—off the hook for their own underfunding and downloading of services to try and make their own bottom lines look good. We already have provinces who think they can just declare themselves exempt from federal laws, and others who are openly breaking those laws (or at least threatening to under the cover of legal fictions), while the pundit class says it’s the prime minister’s fault, that he made them break the law and behave this way. Chow is now pushing this envelope even further, and I worry about the long-term consequences for this country so that she can solve her short-term problem of being an adult around her city’s fiscal crisis.

Ukraine Dispatch:

Two Russian missiles struck a hotel in Kharkiv, injuring eleven people, many of them journalists. Ukrainian forces have been shifting toward building fortifications and a more defensive posture in recent months. Speaking in Vilnius, Lithuania, president Volodymyr Zelenskyy says that they have shown that Russia can be stopped, but that Ukraine still needs more air defence systems and ammunition. Zelenskyy added that there are “clear signs” of a slowdown in Russia’s defence industry as he called on allied nations to tighten sanctions.

https://twitter.com/defenceu/status/1745019147065721141

https://twitter.com/kyivindependent/status/1745348642100109636

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Roundup: Graphing some drivers of inflation

Just how much are the price of raw materials contributing to headline inflation? Well, the raw materials price index was released yesterday, and economist Stephen Gordon was curious, so he made some graphs.

Things I noticed: While gasoline is a big driver of headline inflation, the prices of wheat and beef are worth taking a look at because of the price spikes. What caused those spikes? Drought. Drought killed 40 percent of the wheat crop in 2021, and also meant a shortage of feed crop for livestock, which meant that ranchers had to cull herds to be able to afford to feed the remaining animals (because importing feed is expensive). This year we also saw more drought, which is having the same effect (and that drought has been persistent in southern Saskatchewan, which has to be in danger of turning into a dustbowl soon). And yes, there is a direct correlation to these more frequent droughts with climate change.

Also worth pointing out is the price of chicken also spiking, which was because of avian flu that meant culling flocks to prevent transmission. Again, that drives up prices. This is just more data to show that it’s not the carbon price driving up food prices—it’s climate change and its knock-on effects.

Ukraine Dispatch:

Ukraine’s largest private energy company says that they need more missile defences to protect power plants in advance of more Russian attacks over the winter. Ukrainian forces have confirmed that they have established several beachheads on the eastern banks of the Dnipro river, which is an important step in the counter-offensive. In Kharkiv region, the government is now building fortified underground schools because of the constant attacks. A Yale study says that more than 2400 Ukrainian children from four occupied regions have been taken to Belarus.

https://twitter.com/zelenskyyua/status/1725490287160529137

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Roundup: “Credible allegations” of an assassination on Canadian soil

It was an unexpected moment after Question Period, when Justin Trudeau returned to the House of Commons, and took advantage of the Statements by Ministers slot in Routine Proceedings to speak on an issue of “national security,” and revealed that credible intelligence from Canadian agencies has found that an agent of the Indian government was likely responsible for the murder of a Sikh leader in British Columbia several months ago. Other opposition leaders expressed their shock, and support for the government in this—being unusually less dickish than usual (until they denied Elizabeth May her own opportunity to speak—the dickishness resumed at that point). It also sounds like the timing of this announcement was earlier than anticipated—the Globe and Mail got a leak and went to confirm it with the government, and were asked if they could hold off publishing for a week, and the Globe said they had 24 hours, so Trudeau was forced to do this now, and not after he returned from the UN General Assembly.

https://twitter.com/StephanieCarvin/status/1703856088238416330

https://twitter.com/StephanieCarvin/status/1703879668842016904

Shortly thereafter, Mélanie Joly and Dominic LeBlanc scrummed in the Foyer and said that a high-ranking Indian diplomat was expelled from the country, and it sounds like the government is considering further measures in the near future. It also sounds like this was being discussed at the G20 meeting in India last week, as both the head of CSIS and Trudeau’s National Security Advisor were on the trip, and suddenly the frostiness with Narendra Modi and the cancelled trade mission make so much more sense, being as this was being pursued in back channels during the summit, not only with Indian officials but also with allied countries including the US and the UK.

For background, here is what we know about the victim, and the timeline of events surrounding the murder. India, predictably, refutes this.

Ukraine Dispatch:

There have been Russian attacks on both Lviv in the west and Kherson in the south. Ukrainian forces say they breached Russian lines near Bakhmut in the east, and have reclaimed two more villages. Six deputy defence ministers were fired, possibly in relation to a corruption scandal.

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Roundup: Open Letters to Tiff Macklem

BC premier David Eby decided he needed to be extra performative yesterday, and wrote an open letter to Bank of Canada Governor Tiff Macklem, urging him not to raise interest rates next month because of the “human cost” of these interest rate hikes—ignoring of course the counterfactual of the effects of unchecked high inflation and the “human cost” that it has over the short and medium term.

What is pretty galling in all of this is that Eby knows better. He was once a pretty good civil liberties lawyer, and he fully knows that the Bank is independent, and that they have a legal mandate that they need to fulfil when it comes to keeping inflation at two percent, and that their main policy tool is the blunt instrument of interest rates. His “I know the Bank is independent but…” spiel was frankly embarrassing, and should not have merited the attention it got from the media, but here we are.

Speaking of, Power & Politics was not only true to form in giving him a soapbox to make his point, and rather than doing their jobs of pointing to the irresponsibility of this kind of move, particularly at a time when you also have Pierre Poilievre warning that he’s going to fire the Governor (with what power?) and threatening the Bank’s independence. It would be great if CBC could do a single economics story properly and not just treat it like an issue to be both-sidesed, but they apparently have zero willingness to do so, and the fact that this Eby interview was that ignorant is a sign that they cannot be bothered to care about economics stories for anything than just trying to plug them into their established narratives, and it’s doing the country an extreme disservice.

Programming Note: I’m taking the full long weekend off, so I’ll see you early next week.

Ukraine Dispatch:

Ukrainian forces have reported some success in the south and east, but I am also tickled by their latest video offering, telling all of those armchair generals to basically shut up because they’ve been doing the heavy lifting on their own. President Volodymyr Zelenskyy says that Ukraine has developed its own long-range weapons that can strike 700 kilometres away, which may have been a sly nod to the attack on Russian airbases that destroyed a number of fighters. The mayor of Kyiv wants to build more fortifications, because there always remains the threat from Russia.

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Roundup: Promising a spending cut—for real this time!

It shouldn’t be a surprise to anyone who has paid attention, but word has come down that new Treasury Board president Anita Anand will be tasking other ministers to find $15.4 billion in spending cuts with a deadline of October 2nd, and they really mean it this time. For realsies. The Liberals have been promising programme spending reviews for years now, but haven’t seemed to show any progress on them, or at least not in any public or transparent way, and that’s generally a problem for any government, and particularly one who has been in power for as long as this one has. Anand’s expertise is in governance, so she might have a chance to pull this off, but the civil service has fought back against Treasury Board presidents trying to make reforms—Scott Brison tried to reform the Estimates process and bring it back into line with the budget cycle, and he lost that battle, and it doesn’t look like any of his successors have even tried since. The other thing here is that $15.2 billion is going to be hard to justify if the military is excluded, but can they actually make cuts (setting aside the lapsed funding they can’t spend because of capacity issues)?

The reaction has pretty much been predictable—public sector unions freaking out, Jagmeet Singh concern trolling that this means “essential services” will be cut, and Pierre Poilievre says the Liberals can’t be trusted to make cuts. (Erm, you remember the Chrétien-Martin era, right?) But for some more practical thinking, here’s Jennifer Robson, who teaches public administration:

https://twitter.com/JenniferRobson8/status/1691613225677144349

Ukraine Dispatch:

Russian missiles have struck Lviv and other parts of western Ukraine, which is far from the fighting, including a factory in Lutsk. In the early hours of Wednesday, Russian drones have been spotted heading for the Izmail port on the Danube River, which threatens more grain shipments. President Volodymyr Zelenskyy was on the front lines in Zaporizhzhia to meet troops there. Meanwhile, farmers in Ukraine are facing the prospect of rock-bottom grain prices if they can’t ship it, which means it’s worth more to store than to sell.

https://twitter.com/zelenskyyua/status/1691510365304102915

https://twitter.com/defenceu/status/1691366868760829953

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Roundup: O’Toole claims privilege over foreign interference

Yesterday in the House of Commons, Erin O’Toole rose on a point of privilege to say that his briefing from CSIS warned of “active” campaigns against him from China in four categories—that they are funding operatives to build propaganda campaigns against him, funding networks to amplify it, using WeChat for that purpose, and run voter suppression against his party and one MP in particular. His claim is that the government’s inability or unwillingness to act on the intelligence of foreign interference impacts his privileges as an MP.

I’m dubious that this constitutes an actual breach of privilege, because frankly, if disinformation campaigns, social media amplification and voter suppression are happening, well, his own party is just as guilty as the Chinese regime of doing exactly the same thing. I also fail to see what the House of Commons can do about addressing this supposed breach of privilege other than vote on sending a strongly-worded rebuke to the regime in Beijing. I also don’t necessarily trust that O’Toole is giving us all of the relevant details because he seemed to be very selective with what he wrote about his meeting with David Johnston on his Substack, and I cannot stress this enough, Erin O’Toole is a serial liar. Unfortunately, because he does it with a solemn tone and not, say, a clown nose and a unicycle, he manages to bamboozle a swath of the pundit class who are convinced that he’s the upstanding guy that they all want him to be rather than who he proved himself to be during his leadership, and that somehow, now that he’s no longer the leader, he’s gone back to being the guy they all want him to be. I don’t get it.

Meanwhile, the NDP used their Supply Day to call on David Johnston to step down so that the government will call a public inquiry. This while Pierre Poilievre is daring Singh to bring down the government, and Singh saying he won’t until trust is restored in elections (which is tactically stupid). The government insists they have confidence in Johnston, but it does raise the point that if everyone but the Liberals vote for this, it becomes politically untenable for the government to maintain the current course of action, even if it’s the right thing to do (because I remain unconvinced that a public inquiry will do absolutely anything more in this situation other than take three years, cost $180 million, and create a media circus with a daily drip of “revelations” that will amount to nothing but will nevertheless fuel said media circus). But this may wind up backing the Liberals into a corner and forcing them to call an inquiry, lest the damage get worse.

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Roundup: Abusing a committee’s mandate

Because our Parliament is made up of deeply unserious people, the Conservatives on the Procedure and House Affairs committee, led by Garnett Genuis, are trying to push investigations of the Trudeau Foundation. The problem? This is far beyond the remit of this committee, and they have absolutely no authority to do what they’re attempting to do. The opposition members of the committee have been blocking Genuis’ motions, but this is absolutely abusing the parliamentary process in order to pursue a bullshit vendetta and conspiracy theory.

For the record, the committee is charged with dealing with the reports of the Auditor General, and ensuring that the government is accountable for implementing them. It’s actually one of the low-key best committees in the House of Commons, which largely does serious and valuable work and has been known to put ministers and deputy ministers on the hot seat in a serious way.

But there is absolutely no connection between the reports of the Auditor General and the Trudeau Foundation. The only government connection that the Foundation has is the endowment, which they remain accountable to the industry minister for maintaining intact. That’s it. Their donations have nothing to do with the government’s business. The Auditor General has no authority to audit the Foundation, and the CRA operates at arm’s length from the government, so the government and certainly not this committee can’t bully them into auditing the Foundation beyond the compliance measures they are already subjected to in order to maintain their non-profit status.  This is simply an attempt to weaponise the committee for the Conservatives’ political gain, and it’s damaging one of the few good committees in the Commons for a bullshit purpose.

Ukraine Dispatch:

Russian forces launched an air raid of “exceptional intensity” on Kyiv in the early morning hours, but damage was limited, mostly because air defences have been working. Over near Bakhmut, Ukrainian forces continue to push Russians back. Meanwhile, president Volodymyr Zelenskyy stopped in London at the end of his brief European tour to get a pledge of more drones and missiles from the UK. Anti-corruption forces in Ukraine seem to have found evidence of bribery in the country’s Supreme Court.

https://twitter.com/zelenskyyua/status/1658183072301342757

https://twitter.com/ukraine_world/status/1658033675072598017

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