Roundup: A big wage subsidy

For his Friday presser, prime minister Justin Trudeau had big headlines but few details – that the government was going to boost the wage subsidy for small and medium-sized businesses to 75 percent from the originally announced ten, along with a few other tax deferral measures to help businesses retain their liquidity. The details, however, aren’t going to be released until around Monday, but Trudeau stated that it was more important to get the message out that this help was on the way so that they would ensure that these businesses retained their employees (or even re-hire them) rather than lay them off so that they can collect EI or the new emergency benefit for the duration. Speed over perfection is the new motto of the times. (On a side note, Andrew Scheer was going around taking credit for this subsidy, when I know for a fact it was other people working behind the scenes, but Scheer needs to try and justify his existence).

This announcement came in the wake of a new PBO report that estimated the size of the deficit based on the measures that had been announced to that point, but what was particularly significant was that his modelling was that physical distancing would be in effect until August, which sent the various reporters into apoplexy, as they started demanding to know how long that Trudeau thought that current conditions were going to last – as though that was a question he could reasonably answer at a time where the Quarantine Act has only just been enforced, and we have returning snowbirds who think that these rules don’t apply to them, and where it’s still too soon to see how much of an effect the current measures have had. Quebec is seeing a spike in cases because their spring break was two weeks ahead of everyone else’s in the country, and it’s showing up in the data now.

It was also worthwhile noting that Bill Morneau and Stephen Poloz had another joint press conference today – Morneau to reiterate some of the messaging around the new wage subsidy, and Poloz to take questions about the emergency rate cut that the Bank of Canada announced shortly beforehand, where they cut rates to 0.25 percent, which is as low as they’re going to go, but to also engage in quantitative easing (which is not actually printing money as he spelled out). Their joint appearance seems to be remain under the aegis of trying to reassure the public and the markets that our fiscal heavyweights are on the case, but when this is all over, we will need to see our parliamentarians examining the relationship to ensure that monetary policy truly remained independent and not coordinated with fiscal policy, no matter how dire the economic situation.

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Roundup: Tightening the border even more

There was news today from Justin Trudeau in his daily presser (which will happen again today, but I suspect we’ll all be working through the weekends for the foreseeable future), which was not only that the government was working with industry to both increase the capacity at companies which produce medical equipment, and to help other companies retool in order to produce supplies that may be necessary in the near future – something that is akin to a wartime scenario. Trudeau also said that the government had come to an agreement with the United States to essentially suspend the Safe Third Country Agreement, and that for the next 30 days (at which point the agreement sunsets), any irregular border crossers trying to seek asylum in Canada would be returned to the United States.

I have a couple of cynical theories about this move – one of them being that it’s a sop to the Conservatives, who have been crowing about this as other border closures have been taking place. The other theory, which has been put forward by some Washington-based journalists, is that this was in part to offer cover to Donald Trump so that he could take more extreme measures along his southern border. There is also the pragmatist aspect to this – resources are tight with other border closures and screening, so ensuring that there are enough people to man the irregular crossings like Roxham Road, where asylum claimants need to be processed, screened, and now isolated in a federal facility for two weeks, was likely going to stress their resources and capacity. The flip-side of this, however, is that it pushes more people to unmonitored crossings that are further afield, especially now that the weather is warming up, and if they cross there, they won’t be screened and won’t be tracked by public health authorities, and could easily become new vectors for infection – essentially making the government damned if they do, damned if they don’t. The humanitarian aspect of this decision is also a pretty big deal, and does damage to our international reputation, but in this time of crisis, I’m not sure how much anyone is thinking of that, and if it makes it seem like they’re taking action – even if it’s one that will inevitably have more negative consequences than positive ones – then that may be the trade-off for other political considerations at this point in time.

Meanwhile, Here’s an updated Q&A with infectious disease specialist Dr. Isaac Bogoch on COVID-19. Justin Ling worries about the patchwork of information coming from different levels of government as it relates to the pandemic. Ling is also concerned about the government’s tepid response to the pandemic relating to prisoners, and the decision around asylum seekers. Chantal Hébert gives her assessment of how the country’s political leaders are responding to the crisis. Colby Cosh offers some reflections on the state of the pandemic and where it may lead us.

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Roundup: Reassurances and critiques

It was a much calmer day yesterday with little in the way of new announcements – the most noteworthy part of Justin Trudeau’s daily presser was that he was actually on time for possibly the first time ever! Oh, and the border restrictions for non-essential travel will probably only kick in sometime on Friday night, but details were still being worked out. As well, there is still no contemplation of use of the Emergencies Act, but it remains a tool in the box if need be.

With the slower news day in mind, here is economist Kevin Milligan who goes through the criticisms of the government’s massive aid package, and addresses which are fair and which ones may not have all of the considerations therein.

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Roundup: Big border closure, big aid package

As the impact of the pandemic starts to be really felt in Canada, there is a new kind of rhythm starting to take shape in Ottawa, which is essentially that we get our daily press conference with Justin Trudeau, followed by ministerial press conferences, one after the other, and along the way, the daily briefings and pressers from the different provinces creep up in there as well. Today’s Trudeau press conference outlined the agreement to close the Canada-US border to non-essential traffic, and to outline the broad strokes of the $82 billion in economic measures (when you include tax deferrals) designed to help the country cope with the pandemic. He also said that measures specific to the airline industry and oil and gas sector were coming later in the week, including significant measures to remediate orphan wells in Alberta, which means that the federal government has now assumed a chunk of the province’s environmental liabilities, and both the companies that left them and the province that didn’t properly regulate their remediation are going to be let off the hook, so slow clap for that one.

Other measures included in the package were a suspension of federal student loan repayments (made interest-free), and distinctions-based funds for Indigenous communities, along with additional funds for shelters and the homeless. Not everyone is happy with those measures – the small-business lobby says that the measures aren’t enough to stop layoffs because the wage subsidy is only ten percent, which they say isn’t big enough. And in case this weren’t all bad enough, the price that Canadian oil is going for fell to its lowest level ever. So that’s fun.

We also learned that negotiations are ongoing between the parties – and Chambers – to temporarily recall Parliament in order to pass spending measures that were announced yesterday, and that could happen as early as next week, because there is a forty-eight-hour window after the Speaker agrees to the request. Part of the issue is the negotiation around how many MPs to recall – quorum for the Commons is twenty, and fifteen for the Senate – because they want to ensure proportionality. Pablo Rodriguez stated that he also wants to ensure that it’s MPs who don’t have to travel by plane to get here, but Jagmeet Singh was on TV yesterday saying he’s ready to come back, which kind of defeats the purpose, especially if we’re trying to encourage Canadians not to travel.

[Maclean’s has updated their Q&A on symptoms and contacts on where to get help.]

Meanwhile, Heather Scoffield gets a personal perspective on the aid package announced today, while Kevin Carmichael weighs in on the debate around the package – whether it is preferable to favour speed and not precision – by finding that the details are a bit too finnicky, but also notes the “elasticity” of the aid, which can expand or contract as need be as it progresses. In this thread, the Parliamentary Budget Officer finds it not targeted enough (though I’m not sure that it’s his job to weigh in on policy decisions like this). Economist Lindsay Tedds also has some suggestions on how provincial governments can step up given that the federal aid package only goes so far.

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Good reads:

  • Here’s a look behind-the-scenes of the discussions around closing the Canada-US border.
  • Two new test kits for COVID-19 have been approved for use in Canada, to hopefully speed up testing in provincial labs.
  • The IRB has suspended in-person refugee hearings for the time being, and CBSA has halted deportation orders.
  • Here’s a look into emergency federal procurement rules that can be activated to rapidly source things like medical equipment.
  • The Hill Times got a look into the deals made between parties and caucuses in both chambers to pass those four bills and to suspend Parliament.
  • CBC is suspending their local evening news broadcasts for a central CBC News Network broadcast (in place of Power & Politics), which may breach CRTC rules.
  • It looks like MPs have agreed on a subcommittee of MPs to help guide the Centre Block renovations, including a list of “do not touch” heritage spaces.
  • Jason Kenney introduced an aid package for Alberta given that the province is being hit not only with COVID-19, but also plummeting oil prices.
  • Colby Cosh offers a meditation on the nature of liberal democracy in times of crisis like the one we’re facing.
  • Susan Delacourt notes that the current pandemic means that the government has stopped talking about citizens as “taxpayers” and framing politics as transactions.

Odds and ends:

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Roundup: Suspension, and abrogation

In a week where the news was coming at you like a firehose, Friday was possibly triple that. I literally sent from one press conference to another for a period of five hours. But to start the day off was the news that the House of Commons was indeed going to be suspended for five weeks (really only the loss of two sitting weeks), and they had arranged to complete passage of the New NAFTA implementation bill first thing, which was fine, because they were already on the last scheduled day of debate and the Senate had already done pre-study. What was a problem was the fact that they proposed two – two! – supply bills worth tens of billions of dollars and rammed them through both houses at all stages with zero debate and zero scrutiny, because the House leaders came to an agreement on them. And while absolutely everyone fell all over themselves to talk about how great it was that the parties all came together to ensure that they acted responsibly in suspending parliament (though I think it was premature), the business of supply is the whole gods damned purpose of Parliament. Instead of it being taken seriously, they rolled over on it, and rammed it through, along with another bill to give the government any additional spending authority it needs without parliamentary oversight for the duration of the suspension. Oh, but don’t worry – they’ve ensured that the Auditor General will keep an eye on things after the money has already been spent. Good job on ensuring that the barn door closes after the horses bolt, guys. You’ve totally got the whole gods damned point of Parliament down pat. There were far better options than a wholesale suspension and abrogation of the fundamental responsibility of parliamentarians, but that’s where we are. You get the slowest of slow claps for this particular move.

From then on, it was one after another. Chrystia Freeland and several ministers held a press conference to announce further measures, such as cautioning against all foreign travel, news that they were going to ensure that all international travellers were routed through a smaller number of airports in order to maximize the available resources of CBSA, and the suspension of cruise ship season. Then Justin Trudeau held a presser from outside of Rideau Cottage to update his own situation and to reiterate some of the same messages that were just delivered. And then Bill Morneau, the Governor of the Bank of Canada, and the Superintendent of Financial Institutions held a joint press conference to talk about immediate economic stimulus – including another surprise fifty-point basis cut from the key interest rate – and the promise of yet more fiscal measures to come next week (because they are likely operating flat out and need the weekend to pull the details together). Oh, and the budget date has been postponed until sometime after Parliament resumes, whenever that may be.

Meanwhile, Colby Cosh says that while we’re still awaiting the full impact of COVID-19, the rapid pace of technological development means that this could be the last major global pandemic. Chris Selley cautions about feeling too smug about our healthcare system under the current circumstances. Kevin Carmichael walks through some of the fiscal and monetary measures announced today, and offers thanks to the Bank of Canada for being the rock that Morneau and Trudeau have not been. Heather Scoffield is impressed by the coordination between Morneau, the Bank of Canada and OSFI in staving off “economic hibernation,” and hopes for similar cooperation in combatting COVID-19. Economists Armine Yalnizyan and Jennifer Robson have some suggestions for how to help workers affected by the COVID-19 outbreak. Here’s a thread from Kevin Milligan on the use of EDC and BDC in these kinds of situation.

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Roundup: Trudeau in isolation

The pace of COVID-19 news was relentless yesterday, culminating in the news that Sophie Grégoire Trudeau had tested positive for the virus following her trip to the UK, and that the prime minister would be isolated for the next two weeks as a result. He’d already announced earlier in the day that he was self-isolating while his wife was undergoing testing, and that he would be working from home, but it also meant the cancellation of the First Ministers Meeting – to be held later today by phone – and the indefinite postponement of said first ministers meeting with Indigenous leaders. Not to be outdone, Jagmeet Singh also announced that he was self-isolating because he was feeling “unwell.” And while more events get cancelled, Peter MacKay and Erin O’Toole have stated they will suspend public campaign activities for the time being (though one suspects that this will simply escalate into a shitpost war online as they battle for votes in that space).

The big question now is whether or not Parliament will suspend for the coming weeks, and there are moves afoot – the Senate has been recalled to sit tomorrow (they usually don’t sit Fridays), and the talk is that the Commons will pass the New NAFTA tomorrow morning, and send it to the Senate immediately for passage so that if there is a decision to suspend, that will be out of the way. And it should be noted that the Senate did to pre-study on the bill while it was still in the Commons, so that will expedite the passage in the Senate, provided that twelve different senators don’t feel the need to give useless Second Reading speeches (because that’s a real danger these days).

Once again, Maclean’s has resources on symptoms and how to get tested.

Meanwhile, Paul Wells gives a decent reading of the year to date, and makes the case that First Ministers’ meetings are pretty useless these days so the cancellation of this one is not a big loss. Heather Scoffield ensures that you know where to place the blame for the markets crashing and wiping out retirement savings. And here’s infectious disease specialist Dr. Isaac Bogoch on what we can expect over the next two weeks.

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QP: A day late to the concerns of the nation

After news that the prime minister was in self-isolation after his wife was sick, and Jagmeet Singh also stated that he was self-isolating after feeling “unwell,” the business of parliament carried on. Andrew Scheer led off, mini-lectern on desk, and he gave his best wishes to the PM — for which he got applause — and then demanded more “decisive action” and claimed that passengers arriving from Italy were not screened, ignoring the pertinent information that everyone was screened before they were allowed to board. Chrystia Freeland addressed all Canadians to trust in the advice of medical experts, that things will get worse for it gets better, and that we are well prepared. Scheer raised potential shortages around equipment like ventilators, to which Freeland stated that the federal government was leading a bulk national procurement effort and they were working together with provinces and territories. Scheer lamented the lack of mandatory screening, quarantines or travel restrictions and demanded the evidence for those decisions. Freeland gave a bromide about our public health system, and assured him that enhanced measures were in place, and that they were following the advice of science. Alain Rayes demanded a plan to prevent large public gatherings, and Freeland repeated her first assurance for all Canadians in French. Rayes then demanded more “concrete measures” for workers who lose their jobs as a result of the outbreak, and Freeland read the changes to EI and promise for new measures as necessary. Christine Normandin led off for the Bloc, and after wishing the PM well, she demanded more resources for border screenings, for which Freeland addressed the PM’s situation, that he wasn’t sick but waiting for his wife’s results. Normandin again demanded “real” screening measures, and Freeland again read that they were following all public health advice. Peter Julian led off for the NDP, and again demanded that every worker who has to self-quarantine gets financial resort, to which Freeland reiterated the $1 billion COVID-19 package and that they were rolling out new measures. Rachel Blaney repeated the question with added condescension, to which Freeland calmly repeated the same response.

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QP: Amateur hour conspiracies in the face of a pandemic

Wednesday, caucus day, and while all of the leaders were present, the benches were not nearly as full as they usually are on caucus day. Andrew Scheer led off, mini-lectern on desk, and he immediately blamed Justin Trudeau for the weak economic growth figure, listing a bunch of disingenuous items that counted as “proof.” Trudeau stood up to talk about investing in Canadians, lifting a million people out of poverty while having the strongest balance sheet in the G7. Scheer listed a bunch of things that the government spent on what were framed in a disingenuous way, to which Trudeau reiterated his previous points. Scheer listed yet more false points about Harper’s record versus this one, before demanding tax cuts and the elimination of “red tape,” and Trudeau got a bit indignant in defending the Canada Child Benefit while calling out Scheer for petty politics. Scheer raised the Berskshire Hathaway pullout from the Quebec LNG plan, to which Trudeau reminded him that the very same company just invested in a wind farm in Alberta. Scheer changed to French to then accuse him of striking a secret deal with the Bloc go keep them from re-opening the Double Hyphen Affair in committee, to which Trudeau stated that he defended jobs while standing up for the legal system. Yves-François Blanchet stood up for the Bloc, and stated that they blocked the committee study to prevent another round of people screaming that all Quebeckers were corrupt, before he switched to COVID-19 measures, to which Trudeau reminded him that they have been taking all measures that their scientific advisors stated. Blanchet demanded more border restrictions, daily press briefings and more purchasing power for seniors, and Trudeau reiterated his reassurances. Jagmeet Singh was up next for the NDP, worrying about workers who can’t access EI, and Trudeau assured him that they are working on additional measures. Singh repeated the demand, and Trudeau reiterated that they would be there for all Canadians.

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Roundup: Self-isolating MPs

Yesterday evening, Seamus O’Regan tweeted that after a persistent head cold, he went to his doctor and was self-isolating until he got the results of the COVID-19 test that he got. Around the same time, former Conservative Cabinet minister (and sexting blackmail victim) Tony Clement was on Power & Politics saying that it may be time to think about taking Parliament “digital,” and holding debates and votes remotely for the duration. Yeah, that’s a big nope.

I get that being a politician is a tactile business, and there are concerns that the House of Commons is essentially one big cruise ship, however Parliament needs to happen face-to-face. It’s inconceivable that it could be done remotely because so many of the needed conversations happen off-camera and on the sidelines. That can’t be replicated by everyone working remotely. Should they take additional precautions? Sure – additional hand-washing, practicing social distancing when they take meetings, and so on, but that’s not exactly a big hardship. And it’s not like there aren’t a number of constituency weeks coming up for MPs to hunker down if they need to, and even though it may be a hung parliament, there are more than enough provisions for members from different parties to “pair” absences so that there are no accidental losses of confidence in the meantime (because as much as the Conservatives claim they want an early election, this is largely bravado as their party organization is in chaos and they are in no shape for it, not to mention that neither the Bloc nor the NDP want one either, and they have the votes that count).

The bigger danger, however is contagion – not of the virus, but of the notion that MPs can “work remotely,” which many have been pushing for in the ongoing effort to make Parliament more “family friendly.” But that way lies madness – MPs won’t bother to leave their constituencies, believing they can do more good there (even though constituency work is actually not part of their job description), and without those sideline conversations, it will polarize the environment even more than it already is. Recall how collegiality was shattered after evening sittings were ended and MPs no longer ate dinner together – this would make it that much worse, if they no longer have to look one another in the eye or cross paths. This nonsense needs to be quashed here and now. You can’t Skype Parliament.

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QP: Keeping some fiscal room

Tuesday, and while Justin Trudeau was present today, both Andrew Scheer and Jagmeet Singh were away for whatever the reason. Gérard Deltell led off in French, worrying about the deficit and the loss of jobs in the energy sector, and the general direction of the economy. Trudeau started that they did the work of things like poverty reduction, but they knew to leave room for situations like COVID-19. Deltell worried that they spent the cupboard bare, to which Trudeau reminded him that the Conservatives cut services to veterans and other vulnerable groups while his government has room to manoeuvre. Pierre Poilievre took over in English and listed a number of false metrics around our economy and the state of the deficit, to which Trudeau repeated his answer. Poilievre listed some cherry-picked facts about Conservative budgets, and Trudeau noted that the Conservatives neglected to invest in Canadians. Poilievre then listed a number of disingenuously framed investments by the current government, and Trudeau listed the ways in which Conservatives cut services for Canadians. Yves-François Blanchet was up for the Bloc, and he worried about poor seniors, to which Trudeau listed the measures that his government has taken to date. Blanchet repeated his demand to increase seniors’ purchasing power, and Trudeau reiterated that they have taken plenty of measures. Peter Julian led for the NDP, and he worried about measures for vulnerable workers in the gig economy, to which Trudeau assured him that they would be announcing new measures. Jenny Kwan forcefully read a demand to delay cruise season, to which Trudeau stated that they were working with provinces and sectors to support them in difficult times.

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