Roundup: Some actual accountability

If there’s one committee of the House of Commons that I wish I could spend more time following, it’s the Public Accounts committee. It may not be one of the sexier committees tackling the hot issues of the day, but instead, it’s the heart and soul of what parliament is about – holding the government to account. Alas, my day-to-day work means that I don’t have the time to follow it like I did in years gone by, but I try to keep an eye on them when I can.

In the wake of the latest Auditor General’s report, the committee’s vice-chairs – NDP and Liberal, as the Conservatives chair this particular committee, as one might expect for a committee dedicated to holding the government accountable – are vowing that they will hold hearings on each chapter of the latest report (rather than just selected ones) because they are concerned about his level of frustration that departments aren’t keeping their focus on how services are delivered to citizens (rather than their own internal processes), and more than that, they plan to keep calling back senior civil servants to ensure that they’re shaping up. This can only be a good thing.

Over the past few years, that committee has been more stringent in ensuring that they get progress reports from departments on implementing recommendations from AG reports, but now it looks like they’re willing to go a bit further, which is encouraging. This is the kind of work that frankly, we don’t see enough of from MPs, so I’m glad it’s not only getting done, but getting a bit of attention. That can only bode well for parliamentary democracy.

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Roundup: Artificial deadline drama

It’s one of these kinds of stories that I’m already suspicious of – the kind that presuppose that the Senate is going to delay the course of legislation. And lo, the fact that there is a story with Bill Blair out there, shaking his finger at the Senate and warning them not to delay the marijuana legislation, is one that makes me roll my eyes because 1) the Bill still hasn’t passed the Commons, and may not yet for another week; and 2) I have heard zero plans from any senators that this is something that they intend to sit on until any deadlines pass or expire. In fact, I’ve heard pretty much the opposite – that to date, there is an extreme reluctance on the part of those making up the Independent Senators Group to delaying or being perceived to be delaying government bills, and they will provide the statistics to show that they pass bills faster than the House of Commons does as a way to prove that they don’t delay bills.

Oh, but what about the national anthem bill, which Conservative senators are sitting on and deliberately delaying? Well, that’s a private member’s bill, so it is at the mercy of Senate procedure, unlike a government bill – as the marijuana legislation is – which not only takes precedence over other business in the Senate, and which Senator Peter Harder, the Government Leader in the Senate – err, “government representative” could invoke time allocation on, and I’m sure that he would be able to get enough votes for it to pass (grumbling of Conservative senators aside). This having been said, I think that perhaps it may be pushing it for the government to insist that a major piece of legislation like the marijuana bill be passed by the Senate within three weeks given that they took much longer on it, and given that provincial governments have a lot to say on the matter – though I’m hearing that the Senate will likely sit a full week longer than the Commons will before they rise for the Christmas break, meaning that if the Commons passes it by this Friday, it would be four weeks for the Senate to pass it before the break, which is a long time for a bill in the Senate, but not unreasonable. And if the Commons was so concerned about how long it was taking, they would have picked up their own pace on the bill beforehand. They didn’t, and didn’t invoke time allocation on it thus far, meaning that this concern of Blair’s is artificial and used to create some faux drama. People aren’t stupid – creating a problem where one doesn’t exist is just as likely to backfire than it is to try and shame the Senate into doing your bidding.

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QP: Veteran benefits before reruns

Thursday before a constituency week, and not only were the benches starting to thing out, but Elizabeth May was the only leader present, not counting “parliamentary leader” Guy Caron. Conservative Quebec lieutenant Alain Rayes led off, railing about the news that elite soldiers who are ill or injured for more than six months will have their benefits cut off. Diane Lebouthillier — surprisingly (but with neither the veterans affairs minister or his parliamentary secretary present) — answered, saying that there was a six-month grace period, and they got a pay increase and have added benefits. Rayes repeated the question, and this time Kent Hehr, the former minister, offered assurances that veterans were a priority. Rayes offered some added sanctimony for the apparent callous treatment of said troops. Hehr repeated his answer, before Candice Bergen got up to repeat the question in English, and Lebouthillier got back up to repeat her previous answer, noting that the Chief of Defence Staff had reviewed the file. Bergen got back up to try and lump this with the other faux scandals, but Lebouthillier reiterated her answer. Guy Caron got up next, leading for the NDP, demanding to know if CRA had recouped $25 billion of it had simply been identified. Lebouthillier essentially confirmed the latter, saying that they were “on the way” to recouping it. Caron railed that KPMG’s clients were not being named and shamed on the CRA website, but Lebouthillier repeated her response. Alexandre Boulerice got up next to rail about what tax avoidance was considered abusive, but Lebouthillier praised the work that CRA was doing. Boulerice ranted about tax treaties, and Lebouthillier noted that those treaties are now the CRA is able to conduct investigations and lay charges.

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QP: A promise that action is being taken

While the Prime Minister was off to the APEC Summit, the rest of the leaders were present in the Commons for what was likely to be a repeat of yesterday’s gong show. Andrew Scheer led off, mini-lectern on desk, and in French, he read a condemnation of the prime minister’s silence on tax havens, demanding to know when he knew about his fundraiser’s offshore holdings (which said fundraiser disputed). Diane Lebouthillier listed off the measures that the government has taken to combat tax evasion — a billion dollar investment in the CRA, which has led to 980 investigations, 42 criminal investigations of structures abroad, a list of pending criminal charges, and billions in potential recoveries. Scheer reiterated it in English, got the same answer, and when Scheer gave his standard disingenuous talking points about the government going after small businesses while leaving their wealthy friends alone, Lebouthillier reminded them that when they were in power, they didn’t treat tax evasion as a priority. Alain Rayes took over, gave some hand-waving about the Sponsorship Scandal (no, seriously), and Lebouthillier reiterated her list. Rayes complained that CRA wouldn’t publish the tax gap data, and Lebouthillier listed even more facts about combatting tax evasion. Guy Caron was up next, demanding the government stop defending the CRA. Lebouthillier made a quip that she had more expertise than Caron did about fishing (which I’m not sure translated as well in English), and gave her usual rebuttal. Alexandre Boulerice demanded action against tax havens, and Lebouthillier reminded him that it was a priority in her mandate letter, which is why they hired auditors to tackle four jurisdictions per year. Boulerice demanded renegotiated tax treaties, and Lebouthillier listed more actions yielding results. Caron got back up to repeat the demand for renegotiations in English, and Lebouthillier stuck to her guns — and talking points.

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Roundup: Paradise Papers problems

Big explosive revelations yesterday as the Paradise Papers were released – a major document dump on more offshore tax havens and those who use it. Canadian connections include the head of fundraising for the Liberal Party, Stephen Bronfman, whose family trust holds assets there, the family of a former senator, while three former prime ministers – Brian Mulroney, Jean Chrétien and Paul Martin have tangential connections to accounts there, as does the Queen. And while headlines may describe Bronfman as a “close advisor,” the party is disputing that label.

The bigger concern seems to be that Bronfman’s long-time law firm lobbied successive governments against going after more offshore tax havens. (Funnily enough, it was the Conservatives who cut funding for CRA to do this kind of investigative work, while the Liberals reinvested in it). The question for the CRA in all of these revelations is whether these funds were managed in Canada – which would break the rules – or whether they were managed from their offshore locations. CRA, incidentally, says it won’t hesitate to investigate these new revelations, which is consistent with the messages we’ve been hearing from them since they got more money for this kind of work.

As for the Queen’s indirect involvement in this, investments made by her Duchy of Lancaster holdings have an indirect stake in a rent-to-own company accused of exploiting the poor by way of these offshore funds.

And now the political reaction. While the NDP will piously shout a chorus of “we told you that you should be going after offshore tax havens!” the Conservatives have already put out press releases describing this as having to do with cozy friends of the Liberals and that this is somehow hypocritical of their fighting for the middle class – never mind that I didn’t think that Mulroney was a Liberal, or the fact that most of these connections are fairly tangential and that there is no evidence of any wrongdoing. But hey, this is about “Liberal aristocracy” and not the “little guy” that they now profess to fight for. (Remember the days when the Conservatives were the party of Bay Street? Me neither).

And Question Period today? I can pretty much guarantee you that after Andrew Scheer makes his dig about Trudeau not standing up for people of faith after the Governor General’s speech the other night (and four days later, the pundits still haven’t gotten up off of their fainting couches from it), it will be endless rounds of questions about these “Liberal insiders” hiding money offshore, tying Bill Morneau to this by way of the Morneau Sheppel/Barbados conspiracy theory, and Diane Lebouthillier will be up constantly to say that this government is going after tax evaders where the previous government cut funding, and that “the net is closing.”

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Roundup: A surprise by-election win

In the two federal by-elections that took place last night, it was no surprise that the Conservatives won handily in Sturgeon River–Parkland riding that Rona Ambrose used to hold. Mind you, the newly elected MP there, Dane Lloyd, may prove to be uncomfortable given his past history of saying some fairly controversial things, but that’s now Andrew Scheer’s problem to manage. The real surprise, however, was that the Liberals won the Quebec riding of Lac Saint-Jean, the former riding of Denis Lebel. Why is it so surprising? Because for a Conservative riding where the NDP were a close second in the 2015 election, this time around it was a Liberal victory, with the Conservatives barely managing second place, the Bloc in a close third, and the NDP a distant fourth. And this was the Liberals’ weakest Quebec showing in 2015 and a riding that they haven’t held since 1980.

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So can we draw any conclusion from these results? Probably not yet – it’ll probably take a few days to suss out the data and get a sense of what happened on the ground, but it does bear mentioning that the of the three opposition parties, all of them had new leaders, and each of them spent a fair bit of time in the riding over the past couple of weeks, hoping to drum up support. That the Conservatives lost the riding may simply be indicative that the riding was more loyal to Lebel himself than the party he ran for (remember that he was a former mayor from the region), but it can’t be a ringing endorsement of Scheer either. And while the pollsters are all out in force talking about the Liberals’ fall from grace in their polling numbers lately, the fact that the Liberals still managed to win a seat that the Conservatives held, even amidst weeks of headlines about tax changes and Bill Morneau’s assets, in a region where they didn’t have any historic strength, probably still says something about the party’s appeal nationally. Maybe it’s about the collapse of the NDP vote in Quebec, which could possibly be a harbinger of things to come under Jagmeet Singh? Maybe it’s the appeal of sock diplomacy and selfies? Suffice to say, it’s going to be an interesting few days for all of the parties as they figure out what happened, and prepare for the next round of by-elections.

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QP: Statements for Edmonton and Vegas

In the wake of the installation ceremony for Her Excellency, the Right Honourable Julie Payette, Justin Trudeau was not in the Commons for QP, leaving only Andrew Scheer as the leader of note present. Scheer led off, mini-lectern on desk, reading about shock and sadness for the terrorist act in Edmonton over the weekend, and asked for a minister to update the House on the situation. Ralph Goodale read a statement of condemnation for the action and congratulations to the Edmonton Police Service for their actions, and updated on the injured. Scheer then read similar sentiments for the shooting in Las Vegas — minus the part about condemning global terror — and Chrystia Freeland responded with condolences and notes that one Canadian was confirmed killed and consular services were working to help victims and their families. (A second Canadian was later confirmed as having been killed). Scheer then moved onto the proposed tax changes, and Bill Morneau assured him that they were listening and would make changes to the proposals. Maxime Bernier was up next, saying that Morneau was not listening, and then raised the Morneau-Shepell conspiracy theory, and Morneau insisted that they were listening, which was why they engaged in consultations. After another round of the same in French, Alexandre Boulerice railed about the situation in Catalonia, but rather than answer, Bardish Chagger got up to read a statement of congratulations about Jagmeet Singh’s leadership victory. Boulerice asked again, and this time Chrystia Freeland said that Canada was hoping that Spain would act in a democratic manner. Pierre Nantel was up next, railing about the Netflix deal as selling out Canadian culture amidst a rate hike, and Mélanie Joly insisted that it was a good deal and was the first stage in modernising our cultural policies. Nantel and Joly went another round in English, not that the question or answer changed.

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Roundup: An indefensible communications strategy

If you’ve been wondering what the Conservative communications strategy around the planned changes to private corporation taxation, then it’s your lucky day as VICE got a copy of the talking points and then fact-checked them. In short, it’s predicated on a combination of extreme cases, lies of omission, and misdirection – so pretty much what you’d expect if you’ve been paying attention these past few weeks.

All of this is being further exacerbated by a growing number of Liberal MPs who have become victim to their own government being unable to actually articulate what these changes really mean and who have come up with a communications strategy that is more interested in sloganeering than it is on correcting the active misinformation campaign that has been going on, and which isn’t actually fighting back against said misinformation through a series of pointed questions like “How exactly is income sprinkling the thing that’s spurring entrepreneurship/growth/investment?” like keeps being brought up, or “You read the proposal where reinvesting in the business isn’t being additionally taxed, right?” And while sure, there may be some issues with family farms when it comes to capital gains for passing it on from generation to generation, or with the potential compliance burden to ensuring that any of these ongoing measures are actually above-board, those aren’t what we’re hearing. Instead, it’s this nonsensical braying about how small business “deserves” these tax breaks for “risk” (false – risk was never why these differential tax breaks were introduced, but rather, a lower small business tax rate was introduced in 1972 because at the time, they had difficulty getting bank loans). Braying that nobody is pushing back against, and that’s part of the problem.

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Roundup: Arnold Chan and his parliamentary legacy

News was delivered yesterday morning that Liberal MP Arnold Chan has succumbed to cancer and passed away earlier that morning. The news is a blow for Parliament, as Chan was a very decent and well-liked MP who was serious about the dignity of the institution. Back in June, he delivered a speech in Parliament that was viewed at the time as a bit of a farewell (which he insisted that it wasn’t), in which he implored that his fellow MPs not only demonstrate their love of Parliament, but that they demonstrate it by doing things like ending the reliance on talking points.

At the time that Chan made the speech, I wrote a column about its importance, and why more MPs should heed his words. Scripts and talking points have been suffocating our parliament and our very democracy, and it gets worse as time goes on. That Chan could see their inherent problems and try to break the cycle is encouraging, because it hopefully means that other MPs will too. It’s one of the reasons why I hope that as part of honouring Chan’s legacy, MPs will work to do away with the rules in the Commons that have led to the rise of canned speeches, and that we can get to a place where debate is no longer a series of speeches read into the record without actual exchanges, and where MPs actually become engaged in the material rather than just reading the points that their leaders’ offices handed their assistants to write up for them. Parliament should be more than that, and let’s hope that others follow Chan’s lead.

Here are some more remembrances of Chan by his colleagues.

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Roundup: That fictional “crippling tax hike”

This particular exchange dominated my Twitter Machine feed over the weekend. And lo, it’s some of the same tired, disingenuous rhetoric that over this same issue we’ve been talking about for weeks, because apparently, that’s how we roll.

Of course, the point is to be disingenuous and raise a panic so that they can fundraise and data mine over it with this petition that Rempel is pushing, which is a model of political engagement that we really, really need to stop doing in this country, but unfortunately, we’re in the “If it works…” line of thinking, never mind the broader consequences.

Erin O’Toole decided he wanted to get in on the action to complain that these changes would affect “competitiveness.”

Because you know, facts are hard. And hey, Kevin Milligan went through and modelled the impact that those tax changes will actually have, and shockingly, it’s not what the Conservatives are trying to insist will happen. Imagine that.

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Milligan left it with this helpful reminder that questioning is a good thing, but also reminded us that he too can bring the shade.

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