Tag Archives: GLBT

Roundup: The crash and the cries for stimulus

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It was a tough day on the markets yesterday as stock markets plunged at record levels over panic-selling because of COVID-19, and oil prices cratered while Saudi Arabia and Russia got into a pissing contest. Bill Morneau held a post-market-closing press conference to assure Canadians that there was fiscal room to deal with the situation, but he spoke in frustrating platitudes and generalities as he so often does (because this government is largely incapable of communicating their way out of a wet paper bag), but it needs to be acknowledged that his budget challenge has become a lot more complicated, particularly as the oil shock is going to impact federal revenues as well as Alberta’s. But seriously, the whole Conservative “spent the cupboard bare” narrative is bogus and economically illiterate, and they are actively spreading misinformation about it.

https://twitter.com/kevinmilligan/status/1237104005425139712

Around the same time, Jason Kenney held his own press conference, saying that all options were on the table for dealing with the downturn on the province’s economy – and then immediately ruled out a sales tax, which would stabilize the province’s revenues. Because that might make sense. Rachel Notley says that he should scrap the budget and re-do it, given that its assumptions are now proved to be useless, but other economists say it’s likely not worth it at this point, and it would be better to have a fiscal update in the near future.

And then come the demands for some kind of fiscal stimulus plan, but one of the things they’re pressing is that measures need to be timely. Maclean’s talks to four economists about what they think such a plan could look like for the best impact.

https://twitter.com/kevinmilligan/status/1237235733762473984

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Roundup: Caution – plummeting oil prices

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Oil prices started plummeting Sunday night as a price war opened up in the midst of declining demand due to the COVID-19 outbreak, and this is going to have a huge impact in Canada, not only with Alberta and Saskatchewan, but most especially with Newfoundland and Labrador, whose government relies very heavily on resource revenues. Add to that, this is going to put even more pressure on Bill Morneau and the federal government when it comes to how to deal with reforming fiscal stabilization in the upcoming budget, particularly if it’s also going to mean any kind of rebate for previous years’ stabilization (as Jason Kenney in particular has been demanding, under the misleading term of “equalization rebate,” even though it’s no such thing).

This may also touch off a new round of blaming Justin Trudeau for Alberta’s woes, when the oil prices are going to make things so, so much more painful for the province as they budgeted a ludicrously high amount for oil revenues. One might suggest that it would be a good impetus for the province (and the federal government) to redouble efforts toward diversification and a “just transition” away from the oil economy in that province, because the hopes for “just one more boom” get even further away, or even for the province to finally reform the revenue side of its equation and finally implement a modest sales tax that would stabilize its finances – but I have a feeling that Kenney won’t even contemplate those things. Blaming Trudeau is too easy, and lying to the public is so much easier.

Speaking of lying to the public, as certain other political figures fill the op-ed pages with a bunch of bullshit about how Alberta is “treated like a colony” as the Buffalo Declaration did (and no, I won’t link to the egregious op-ed in question), here is a great thread from professor Melanee Thomas as to why that kind of comparison is not only wrong, but wrong to the point of being actively racist.

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Roundup: The Teck Frontier drama for naught?

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There is a lot of agitation around the Teck Frontier oilsands mine, with the Alberta government and their federal counterparts howling for it to be approved immediately, and environmentalists, and certain other parties (like the Bloc) demanding the federal permits be denied. The problem? That even if it were approved, the CEO says they may not be able to build it because oil prices are too low for it to actually make any money, so this could all be for naught.

Meanwhile, here is Andrew Leach with a thread on its economics, and pushing back on the rhetoric around its emissions profile, wherein Jason Kenney and others have misconstrued what the company has actually said in order to make the project look less emitting that its plans say it will be.

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Roundup: No metric to measure success

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The inevitable has happened with this government’s too-clever-by-half branding of their associate finance minister, and she has essentially been caught out by the easiest trap imaginable. The Conservatives submitted an Order Paper question asking for a definition of “middle class” by which the government could measure the success of its efforts at ensuring their prosperity, and lo, they were told that there is no measure that the government uses. Which is kind of embarrassing for a government that prides itself on data and metrics – that’s one of the reasons why they actually bit the bullet and decided on the Market-Basket Measure of poverty as their official definition, because that allowed them to track the success of their programmes in alleviating it (and yes, programmes like the Canada Child Benefit have had a measurable impact using these kinds of data). But what they can do for poverty, they can’t do for the Middle Class™.

Of course, we all know that it’s because “middle class” isn’t an economic definition to this government, but a feel-good branding exercise. It’s the Middle Class™ And Those Working Hard To Join It, because we all know that everyone thinks they’re middle class (whether or not they have ponies), and most especially people on the wealthier end of the scale in this country. It’s all about a feeling, or a hand-wavey metric about having kids in hockey (an upper-class pursuit in this country). And this lack of a definition is exactly why this minister is the Minister of Middle Class™ Prosperity®, because it means nothing. It’s a trademarked slogan, transparently winking to Canadians about how this is how they plan to address the discontent underlying the populist movements taking place across the government – hoping that if they can reassure these voters that they’re being care of and not left behind, that they’re being heard, that somehow, it’ll keep the populist forces at bay. I’m not sure that it will work, but it’s blatantly happening, so we should all be aware that this is part of their plan.

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Roundup: The reality of negotiation

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As was ever thus, the Twitter Machine erupted with fury and disingenuous outrage when health minister Patty Hajdu told reporters that she couldn’t guarantee that a national pharmacare programme would be in place at the end of the current parliament (for which we don’t know when that will be, as a hung parliament rarely lasts beyond two years.

“Some of that will be predicted by, predicated by, the responses of the provinces and territories,” said Hajdu, because *mind blown* healthcare is largely the domain of the provinces and any pharmacare system would have to be negotiated with them – in particular, a national formulary, which is going to be extremely complicated to ensure that existing plans don’t get left behind or that the new national plan isn’t worse off than any existing ones that it would replace.

What is especially irritating are all of the voices crying out that this just means the Liberals were lying on the campaign trail, which is false and ridiculous – Trudeau spent the campaign not overpromising on this file, but rather kept saying that it was contingent on negotiation with provinces, which is why their fiscal plan only called for a “down payment” on such a programme rather than the whole thing, but nevertheless, the promise was to go by the principles of the Hoskins Report, which they have bene doing thus far. The NDP, by contrast, insisted that this could be done by 2020, and whenever anyone brought up the fact that the provinces may object, the line was largely that why would anyone say no to federal dollars? It’s absurd, of course, because provinces are rightfully afraid that they would be stuck with an expensive programme to run if the federal government suddenly cut out transfers or funds to it because they suddenly had other priorities (which has happened in the past).

And to that end, we have a bunch of premiers who are balking at it, Quebec and Alberta want to be able to opt-out with compensation, and Ontario is instead insisting that the federal government pay for drugs to treat rare diseases – the most expensive kind, and the ones where costs are rapidly escalating. So of course they want the federal government to pay for them rather than to share the burden. It’s predictable, and for anyone to be shocked and appalled that the Liberals have to deal with this reality is really, really tiresome.

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Roundup: Fiscal update and actuarial context

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Finance minister Bill Morneau released his fall economic update yesterday, and it showed that while the economy was doing well – fairly strong growth, very strong job creation (November’s numbers notwithstanding) and wage growth – the deficit was going to get a lot bigger unexpectedly. The reason for it, however, was largely ignored by all of the commentariat, both media and partisan, because the kneejerk response in Canada about any finance story is about the size of the deficit, end of story. The real reason – that low interest rates had forced a hefty actuarial adjustment for government pension plans – was inconvenient for them to force a narrative onto, so they just ignored it and clutched their pearls some more, crying “The deficit! The deficit!” and the Conservatives continued to cheerlead a “made-in-Canada” recession by cherry-picking some very selective economic data that was to the exclusion of the broader trends, because narrative. Here’s economist Kevin Milligan to explain some more.

https://twitter.com/kevinmilligan/status/1206632527244300288

https://twitter.com/kevinmilligan/status/1206633499391709187

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https://twitter.com/kevinmilligan/status/1206637216039964672

https://twitter.com/kevinmilligan/status/1206639670798340096

I would add that while the Conservatives like to rail about how our unemployment figures compare poorly to other countries, it’s a bit of a fool’s errand because we don’t all measure unemployment the same way, and not all of our economies work the same way. Canada has had record low unemployment in recent months, to the point where economists say we are have been at what is essentially “full employment” – in a statistical sense, not to dismiss that there are regions where it’s still a problem, but essentially there’s not a lot of room for more job growth in the economy. But hey, why let reality get in the way of the narrative, right?

In terms of analysis, John Geddes delves into the notion of “endless deficits” and finds that, shockingly, it’s not a cut-and-tried issue, but the real issue is complacency. Certain bank economists think that because the shift in the deficit is on pension obligations, it could force the Bank of Canada to act sooner if there were an economic downturn. Heather Scoffield wonders what kinds of budget promises that Morneau will have to abandon given the bigger deficit figures if they don’t want to lose their debt-to-GDP anchor.

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Roundup: Contemplating compromised committees

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As the summoning of the new Parliament draws ever closer, we’re seeing more stories about the procedural intricacies of the first few sitting days, and the coming confidence vote on or before the 10th because of the Supply cycle and the need to pass the Supplementary Estimates before that date. Fair enough – those can be expected to pass pretty handily because nobody is going to want to head right back to the polls (and I wouldn’t expect the Governor General to grant an immediate election either – the developing convention is waiting at least six months, providing there is another viable governing party, though that would be the real trick given the current seat maths).

This all having been said, there was something in this interview with Pablo Rodriguez, the new Government House Leader, which sticks in my craw, and that’s the talk about possibly undoing the rule changes that prevent parliamentary secretaries from being voting members on Commons committees, and I. Just. Cannot. Even.

While the chances of this happening are fairly slim, given that it would require opposition support and they are unlikely to get it, it’s still crazy-making. This reflex to go super political in a hung parliament is understandable but deeply frustrating because it undermines the whole raison d’être of Parliament, which is to hold the government to account, and committees are one very big piece of the accountability puzzle. Parliamentary secretaries should have no business even being near committees because it undermines their independence. It’s bad enough that under the previous parliament, they were still on the committee in a non-voting capacity, but it still allowed ministers’ offices to attempt to stage manage what went on (to varying degrees, depending on which committee it was). Having the parliamentary secretaries as voting members simply turns committees into the branch plants of ministers’ offices, and we saw this play out for the better part of a decade under Stephen Harper. Committees are not there to simply take orders from the minister and waste everyone’s time, and it would be hugely disappointing if the Liberals returned to that way of thinking simply because it’s a hung parliament. If we think that the only time to let Parliament function properly is if there’s a majority for the government, then it’s a sad state of affairs for our democracy.

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Roundup: Pride vs St. Patrick’s Day

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Andrew Scheer’s new deputy leader, Leona Alleslev, started off her new role with a bang this weekend by doing the media rounds, and when asked about Scheer’s continued refusal to attend Pride parades, Alleslev responded with “Have we asked anybody if they marched in a St. Patrick’s Day parade?”

Oh no she better don’t!

Alleslev apologised several hours later, but by then you had a lot of Conservatives completely outraged that this was the kind of thing that was going to lose them the next election (and renewing the calls for Scheer’s resignation). While the point was made that she shouldn’t have needed to apologise because it was Scheer’s lines she was parroting, it’s difficult to imagine how anyone would have even for a second thought that there was an equivalence to the two. And Scheer’s own campaign communications director started a lengthy tweet thread to show all the various ways in which Scheer paid lip service to every religious and cultural event out there – except Pride, which is something that speaks volumes.

Alleslev also went on to insinuate that those who raised questions about Scheer’s leadership – and the numbers are growing, as are the profile of raising those questions – are somehow being “disloyal” to the party. And this irritates me, because this notion that parties are supposed to be personality cults for leaders is toxic and antithetical to how our system operates. The leader is not the party. The party is more than the person who leads it at any one moment, and it would be great if everyone could get on the same page about this because it’s kind of embarrassing for everyone who is carrying on otherwise.

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Roundup: Holding up a mythical threat

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The first day of the new Cabinet, and Justin Trudeau, along with Chrystia Freeland and Jim Carr, had their first meeting as a group with Calgary mayor Naheed Nenshi, who held up the now-former Bill C-69 as the source of much of the anger in Alberta, and his demands that it be changed. The problem here – and Nenshi acknowledged – is that the pre-existing system that Stephen Harper’s government put into place in 2012 did not work, and Nenshi could list projects being held up by it, which is all the more reason why his strident condemnation of the new assessment system is all the more baffling. Part of the problem here is that the bill – along with the now-former C-48 – have been used as scapegoats for the frustrated economic ambitions of the province. Never mind that C-48 was largely symbolic – there is no pipeline project that would head for the northwest coast of BC, nor is there going to be, and no, Northern Gateway is not going to make a comeback because the obstacles identified by the Federal Court of Appeal were almost certainly insurmountable. And C-69 is in no way a “no more pipelines” law.

I talked to a lot of environmental lawyers on both sides while C-69 was being debated, and the biggest source of unease on the proponent side was the uncertainty as to whether the legislated timelines would have the problem of issues stopping the clock – thus dragging out those timelines – much of which was alleviated when the draft regulations were released. Again, the talk about the carbon budget in the bill was clarified in the regulations, which also alleviated many of their concerns (and caused some on the environmental side ulcers). So while the government is now talking about tweaks to the regulations, that seems more than entirely appropriate for the reality of the situation, and their refusal to scrap the law is entirely rational and just.

The problem becomes fighting the narrative that has been created around this law, and the fact that it has grown into a mythological terror is what they will have to grapple with – and compounding this is the fact that this government has proven itself time and again to be utterly incompetent at communications. For as much as Catherine McKenna did some good work when she was the minister, she kept repeating the tired slogan of “the environment and the economy go together” and other nonsense talking points (and then insisting that she spoke like a regular person), which did nothing to counter the lies being promulgated by Jason Kenney, Andrew Scheer, and others, about what was actually in the legislation. And you can’t fight lies with canned talking points. I wish this government – and the communications geniuses in the PMO most especially – would get that through their heads, which is why trying to placate the anger when it’s being directed at the mythology and not the reality of this legislation is going to be an uphill battle.

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Roundup: Look at all the chimeric ministers

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With the usual bit of pomp and circumstance, the Cabinet has been shuffled in advance of Parliament being summoned. It is bigger by two bodies, there are seven new faces, a few new portfolios – and baffling ones at that – a few being folded back into their original ministries, and yes, gender parity was maintained throughout. The Cabinet committees are also getting a shuffle, which gives you a glimpse at what they see the focus will be, and spoiler alert, it’s very domestic and inward-looking – not much of a surprise in a hung parliament where there are few plaudits or seats to be won on foreign affairs files. It’s also no surprise that it’s Quebec and Ontario-heavy, and largely representing urban ridings, because that’s where the Liberals won their seats.

And thus, the biggest headline is of course that Chrystia Freeland has been moved from foreign affairs to intergovernmental affairs, but with the added heft of being named deputy prime minister – the first time this title has been employed since Paul Martin, and Freeland assures us that it’s going to come with some heft and not just be ceremonial. She’s also retaining the Canada-US file, so that there remains continuity and a steady hand on the tiller as the New NAFTA completes the ratification process. It also would seem to indicate that it gives her the ability to keep a number of fingers in a number of pies, but we’ll have to wait for her mandate letter to see what specifics it outlines, though the expectations that she will have to manage national unity in this somewhat fractious period is a tall order. Jonathan Wilkinson moving to environment has been matched with the expected talk about his upbringing and education in Saskatchewan, so as to show that he understands the prairies as he takes on the environment portfolio. Jim Carr is out of Cabinet officially, but he will remain on a Cabinet committee and be the prime minister’s “special representative” to the prairie provinces, which is supposed to be a less taxing role as he deals with cancer treatments (though I don’t see how that couldn’t be a recipe for high blood pressure, but maybe that’s just me). Two other ministers were demoted – Kirsty Duncan, who will become deputy House Leader, and Ginette Petitpas Taylor, who will become the deputy Whip – though it should be noted that both House Leader and Whip are of added importance in a hung parliament.

The opposition reaction was not unexpected, though I have to say the Conservatives’ talking point was far pissier than I would have guessed – none of the usual “we look forward to working together, but we’ll keep our eyes on you,” kind of thing – no, this was bitter, and spiteful in its tone and language. Even Jason Kenney was classier in his response (but we all know that lasts about five minutes). That’ll make for a fun next few years if they keep this up.

As for some of my own observations, I was struck by the need to name a new Quebec lieutenant, given that Trudeau used to say that they had a Quebec general (meaning him), so no need, and lo, did the Conservatives had meltdowns over it. Likewise, there was thought under the previous parliament that they would eliminate all of those regional development ministers and put them all under Navdeep Bains (whose ministry has rebranded again from Industry, to Innovation, Science and Economic Development, and is now Innovation, Science, and Industry), which kept a lot of the kinds of nepotism that was rampant in those regional development agencies at bay. Now Trudeau has hived off the economic development portfolio into its own ministry, to be headed by Mélanie Joly, but she’ll have six parliamentary secretaries – one for each development agency region, which feels like the whole attempt to break those bonds is backsliding. Science as a standalone portfolio was folded back into Bains’ domain, but the very specific project that Kirsty Duncan was tasked with when she was given the portfolio four years ago was completed, so it made a certain amount of sense. Democratic Institutions is gone, folded back into Privy Council Office and any of its functions Dominic LeBlanc will fulfill in his role as President of the Queen’s Privy Council (which is a role that is traditionally secondary to another portfolio). Trudeau continued to keep his Leader of the Government in the Senate out of Cabinet, which is a mistake, but why listen to me? (I’m also hearing rumours that Senator Peter Harder is on his way out of the job, so stay tuned). The fact that David Lametti got a new oath as minister of justice and Attorney General to reflect the recommendations of the McLellan Report was noteworthy. But overall, my biggest observation is that Trudeau is doubling down on the kinds of chimeric ministries that tend to straddle departments, which makes for difficult accountability and confusing lines of authority on files. The most egregious of the new portfolios was the “Minister of Middle Class™ Prosperity,” which is a fairly bullshit title to attach to the fact that she’s also the Associate Minister of Finance, which should have been significant in the fact that it’s the closest we’ve been to a woman finance minister at the federal level, but dressing it up in this performative hand-waving about the Middle Class™ (which is not about an actual class but about feelings) is all the kinds of nonsense that keeps this government unable to communicate its way out of a wet paper bag, and it’s just so infuriating.

https://twitter.com/sproudfoot/status/1197239923100856321

In hot takes, Chantal Hébert sees the move of Freeland as the defining one of this shuffle, and notes that it could either be just what they need, or it could be a kamikaze mission for Freeland. Susan Delacourt sees the composition of the new Cabinet as one that corrects past mistakes and of taking on lessons learned. Robert Hiltz points to the two polarities of this Cabinet – the farce of the Minister of Middle Class™ Prosperity, and the menace of putting Bill Blair in charge of public safety. Paul Wells makes the trenchant observation that carving up ministries across several ministers has the effect of creating multiple redundancies that will make more central control necessary – and I think he’s right about that. (Also, for fun, Maclean’s timed the hugs Trudeau gave his ministers, which didn’t compare to some from 2015).

https://twitter.com/StephanieCarvin/status/1197245638548869120

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