Roundup: The WE Imbroglio worsens

Because the Liberals’ capacity for self-harm wasn’t apparent enough already, it seems that they decided to find yet another rake to step on as the WE Imbroglio continues to unfold, and we learned that two of Bill Morneau’s children have done work for WE – one of them as a salaried employee, and no, Morneau also did not recuse himself from any Cabinet discussions or decisions when it came to awarding WE the student service grant contract. Because of course he didn’t.

Within the Liberal ranks, so far only Nathaniel Erskine-Smith – already considered a “maverick” – has come out to say that he’s not keen on what has transpired, which makes me wonder how many other Liberal MPs feel similarly but just aren’t saying out of a sense of loyalty or because they would rather close ranks at a time like this. Of course, if we had a properly functioning Westminster democracy in this country, the caucus could get together and say “You know what – the leader keeps hurting the party with these self-inflicted wounds, so maybe it’s time we find a new leader,” and within a few days, they could have voted out Trudeau and voted on a replacement from within the caucus ranks, and then it would be off to Rideau Hall to swear in a new prime minister, who hopefully wouldn’t be a prone to stepping on those rakes. But we don’t have a properly functioning system because the Liberals and the pundit class back in 1919 decided it was somehow “more democratic” to give the party membership the ability to decide on the leadership, and suddenly the accountability of that leader to his or her caucus was annihilated. Now we have leaders who have centralized all power and authority and who are accountable to no one, so that when they cause trouble for their parties, the caucus is now stuck. (It would also help in keeping the party from becoming a personality cult of the current leader because that leader is easily replaced, but again, that’s no where we’re at in this country, and we are paying the price for it.

As for the Conservatives, they decided that they needed to up the stakes and send a letter to the RCMP to demand a criminal investigation of this contract, under the flimsiest of pretences. It’s ludicrous, of course, but what it allows them to do is to insinuate that the RMCP are investigating when they likely aren’t because they’re not public about what they are and are not investigating, and they can spend the summer asking Trudeau “have the RCMP contacted you yet?” and posting those clips all over their social media channels. We’ve seen this particular play before, and it wasn’t great the first time, and this iteration won’t have improved either. I suspect there is also an element of “lock her up!” as part of their calculation for this, because they know that there is an element of their base that will respond to this bit of red meat, and they can’t help themselves, no matter how corrosive this is to our political discourse, or the long-term the damage that it causes.

Meanwhile, Susan Delacourt hears from Erskine-Smith and other unnamed Liberals who are balking at how closed-off to caucus Trudeau has been, and how that breeds these kinds of problems. Chris Selley marvels at Trudeau’s trilogy of scandals, and the ways in which they are continually minimized.

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Roundup: Trudeau steps on yet another rake

The prime minister’s problems with the now-cancelled WE Charity contract blew up yesterday, as it was revealed that Justin Trudeau’s mother and brother have been paid by WE to speak at events, that his wife had once been paid by them in 2012, all of which contradicts their previous statements that they don’t pay speakers. (Trudeau maintains that he has never been paid). Suddenly this makes the fact that Trudeau didn’t recuse himself from any decisions around that contract at the Cabinet table look very bad, because his family does benefit from the organization, and they’re not just donating their time and profile as had been previously stated. And for WE’s part, they have done themselves no favours by saying that it was their social enterprise arm, ME to WE, which paid them, except for the times when there was a billing error and WE Charity paid them instead. This as more parliamentary committees are (finally) doing their jobs in calling ministers and bureaucrats before them to explain their decisions. And to cap it off, Yves-François Blanchet is now demanding that Trudeau step aside and let Chrystia Freeland run things until everything is cleared up. So that’s something.

It’s hard not to see that the Liberals’ capacity for self-harm knows no bounds, between these self-inflicted wounds and their inability to communicate their way out of a wet paper bag/manage an issue, means that they inevitably make it worse for themselves – which they did yet again today by essentially saying that the only thing that matters is that Trudeau was really concerned about the youth. Seriously? It is not only obvious that Trudeau seems to lack any sense of self-awareness, in part because he has grown up as a kind of celebrity, but it’s also combined by the fact that there clearly isn’t anyone in his office who will stand up to him and say that no, this maybe isn’t a good idea, and no, it’s going to come across well no matter how well-meaning it all is. I mean, the first couple of years in office, Trudeau dismantled any way for the party mechanism to push back against the leader and his office, and that was a fair bit more autonomous than what goes on in PMO. This being said, I will add that our ethics and conflict of interest regime in this country is ludicrous, and subject to the whims of successive Ethics Commissioners, who either read their mandates so narrowly that nothing was ever her problem, except when she took it upon herself to decide who is and is not a family friend of the Aga Khan (that being Mary Dawson), or her replacement, who has invented new statutory interpretation out of whole cloth on numerous occasions to baffling results. None of this excuses Trudeau’s constantly stepping on rakes – he should absolutely know better, but seems incapable of figuring that out.

Meanwhile, Susan Delacourt remarks on how repetitive Trudeau’s ethical lapses are getting, and how every time he promises that he’s learned his lesson – until he does makes yet another blunder. Matt Gurney is baffled at PMO’s tone-deafness on this whole affair. Chris Selley, while boggled at Trudeau’s constant blunders, is even more incredulous at how Andrew Scheer keeps being so bad at responding while creating his own distractions.

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Roundup: Pearl-clutching about the deficit

For the first time this week, prime minister Justin Trudeau held a presser, wherein he praised the agreement with the First Nations on moving ahead with transferring control over child welfare, mentioned the virtual Cabinet retreat that was held over the previous two days, and mentioned that new pandemic modelling was on the way, noting that there are still hot-spots around the country. And then it was the takeaway message of the day – a mere couple of hours away from the fiscal “snapshot” being delivered, Trudeau made the case that they chose to support Canadians rather than leaving them to fend for themselves, and that the cost of doing nothing would have been far greater on both healthcare and the economy. He reiterated that this was not the time for austerity, but that they have been building a “bridges” to a stronger, more resilient Canada, and drove home the point that the federal government took on debt so that ordinary Canadians wouldn’t have to. He pointed to the low debt-to-GDP ratio, and that historically low interest rates mean manageable borrowing costs. And with one final word on Bob Rae being appointed to the UN, he took questions, one of the first of which determined that he didn’t recuse himself when the WE Charity sole-source contract came before Cabinet, which is something the Ethics Commissioner is looking at. He spoke about the necessity of childcare, that Bill Blair has been engaged on the subject or the RCMP and police brutality as part of the broader Cabinet workplan on combatting systemic racism, that they were following the recommendations of the Auditor General on CBSA, and then reiterated again that with historically low debt-servicing costs, it was easier for the federal government to take it on in order to prevent Canadian households from having to do so. When asked about the relationship with Donald Trump, Trudeau once again reiterated that they have concerns about the possibility of new tariffs, and that it will only hurt American industry because they need Canadian aluminium as they can’t produce enough of their own.

And then the fiscal “snapshot.” While Bill Morneau’s pabulum-heavy speech was pretty much all self-congratulation and a recap of measures they’ve taken, the accompanying documents did show a $343 billion deficit projected for this year (though it has been speculated that this was an outer bound limit designed for them to come under), and that the total debt by the end of this fiscal year could be $1.2 trillion – numbers everyone clutched their pearls about while ignoring that the debt-servicing costs continue to decrease even though the size of the debt has increased. There was mention that the wage subsidy is going to be extended, but with modifications on the way “sooner than later,” but there wasn’t much indication about the broader recovery plan thus far.

Of course, the obsessions among all of the media coverage was the deficit and debt figures, because our reporting narratives remain firmly affixed in the mid-1990s, and no one can break free of them – not to mention the hyperbolic mentions about how this was the biggest deficit since the Second World War (never mind that this is a virtually unprecedented global pandemic we’re facing with a demand-side shock that people can’t seem to wrap their heads around). And because the framing devices remain in the 1990s, headlines obsessed that there wasn’t a plan to curb spending – because of course we know how the epidemiology of this pandemic is going to play out until we get a vaccine at some point in the future. But perspective? You need to turn to the economists on Twitter for that.

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Roundup: A confirmation on uttered threats

We got a better read of the charges against the Rideau Hall intruder from last week, including more specifics on the weapons charges – a restricted revolver, a prohibited rifle, and two legal shotguns – as well as confirmation that the uttering threats charge was indeed directed toward the prime minister. This is, of course, in direct contravention to what RCMP sources were leaking to certain journalists last week that he didn’t intend to harm anyone, which never actually was credible at the time, and yet they dutifully reported it anyway.

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What is especially galling is that the RCMP seems to have zero self-awareness that this sort of thing fuels the calls about systemic racism in their organization – doing proper de-escalation and then floating this “not intending to harm” fiction when it’s a white guy with guns as opposed to a Black, Indigenous or otherwise person of colour where they will beat, taze, or outright kill them when they are unarmed. The contrast had been made to the arrest video of Chief Allan Adam video where he was tackled and pummelled for merely mouthing off after police outright harassed him for expired licence plate tags, whereas the intruder was armed and had intent to threaten the prime minister (if not outright assassinate him – that remains for the investigation to conclude and the courts to decide), and he was apparently unharmed after a ninety-minute conversation. The fact that they would float that “no harm” notion when the guy was armed and rammed through the gates pretty much confirms in everyone’s minds that white perpetrators of violence get treated separately and less lethally than anyone else – but they remain oblivious to it. Incredible.

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Roundup: Exit WE

Prime minister Justin Trudeau seems to be making Fridays his campaign stop field trip presser days, and this time it was to a food bank in Gatineau. Trudeau started off by announcing that because of the situation with the new national security law that China had imposed on Hong Kong, they were suspending the extradition treaty to Hong Kong, as well as exports of certain equipment including military equipment. After commenting about how the government was helping food banks during the crisis, he mentioned that they were moving ahead on delayed infrastructure projects, noting that 92 were getting underway in BC. He also said that he would be hosting a two-day virtual Cabinet retreat next week, where discussions would include how to make the country more resilient during future waves of the pandemic. During the Q&A, Trudeau stated that he was disappointed by Air Canada’s service cuts and hoped that they would be restored as the economy recovers. He also made the point that childcare was an important consideration and why it was one of the conditions for the provinces as part of the $14 billion that is still on the table, and that hasn’t been agreed to. Asked about the intruder on the grounds of Rideau Hall, he simply stuck with thanking the RCMP for their response. And with regards to China, Trudeau said that they were taking action regarding the Hong Kong situation, and looking at steps that Canada can take while we are in discussions with our allies.

Of course, Trudeau also addressed the news that shortly preceded his presser that WE Charity had voluntarily pulled out of the Canada Student Grant programme, for which he said that he was disappointed in how it unfolded, but that he would continue to look for ways to give young people opportunities to serve. He stated that he thought WE had more capacity for training and protectively identifying volunteers, and insisted again that it was the public service that reached out to WE and not his office. And a few hours later, the Ethics Commissioner said he would look into this contract on the grounds of whether or not it furthered the private interests of someone (meaning Trudeau’s family), though I’m not sure how exactly volunteering their time and profile is a material benefit when they get no money from it. Then again, this particular Ethics Commissioner has gone out of his way to invent new interpretations of offences to make it look like he’s being tough, so who knows where this will go.

On the subject of WE, new revelations came out in advance of their pulling out, including criminal activity and fraud in their Kenyan operations in 2017, and the fact that they were offering summer camps $25,000 if they brought in over 75 volunteers over a few months. To add to that, others in the charitable sector are raising questions about the assertion that WE was the only group capable of administering the programme given that they lack links with local groups across the country ­– and the government’s own Canada Service Corps could have been used instead. So it’s no wonder that WE looked at what was before them and decided to pull the plug before even more organizations started digging into their activities, and this government didn’t fight them on it, because maybe they’ve learned a lesson or two on issues management. Maybe.

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Roundup: Armed intruder at Rideau Hall

The big excitement for the day was that there was an Incident at Rideau Hall first thing in the morning, as a Canadian Forces member, who was armed, crashed his truck through the gates of the compound and headed over to Rideau Hall on foot, where he was then apprehended by RCMP in what sounds like a two-hour “dialogue.” Apparently he wanted to “send a message” to the prime minister – who wasn’t at home at nearby Rideau Cottage at the time, nor was the Governor General in Rideau Hall (but if you recall, she has consistently refused to move into the residence there, preferring to stay at Rideau Gate). He was arrested without incident, and has apparently made online posts about a supposed COVID-19 conspiracy theory – and it comes just a day after anti-lockdown protests were happening on Parliament Hill, featuring a former has-been wannabe party leader who shall not be named, and some of the images seen on the Hill included those of Trudeau being hanged, while others touted these kinds of COVID conspiracies. So that’s fun.

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Meanwhile, over in Alberta, the rhetoric about the plan to hold a referendum on equalization rolls along, so here is political scientist Melanee Thomas to spill some tea about just exactly what they are talking about, and why the arguments aren’t as clever as they think they are.

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Roundup: Yet more questions about the WE contract

The whole situation with the sole-source contract for WE Charities continues to spiral, as one of the co-founders was found to have claimed that PMO reached out to them shortly after the April announcement on the creation of the student grant programme – only for him to have since retracted and said that he was over-enthusiastic, and it was really a senior bureaucrat from Employment and Skills Development Canada. PMO has also since denied making contact, and senior bureaucrats have stepped up to say it was them, but while that may in fact be the case, it’s still the minister who is responsible for the decision, and I don’t see any minister stepping forward on this. It just goes back to this government’s complete inability to manage their own crisis communications without stepping on six more rakes along the way. It’s complete amateur hour.

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On top of this, it sounds like part of the way in which WE is managing this programme is to offer $12,000 payments to teachers who can recruit 75 to 100 students, and to be their mentors and managers along the way, which is unusual. It also raises the question of how this was what was so imperative about how this organization was the “only one” capable of administering the grant programme if this is how they’re running it. All the more reason for MPs to call an emergency committee meeting and haul the responsible minister and deputy minister before them to answer questions and provide documentation that proves that WE was the only outfit that could meet their criteria – you know, like it’s their job to.

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Roundup: Trudeau slows to a summer pace

Prime minister Justin Trudeau was back at Rideau Cottage yesterday morning, for what he promised would be the last “daily” briefing, though they haven’t been daily for a few weeks now. And there really wasn’t anything new to announce – yet another reminder that the Canadian Emergency Business Account and commercial rent subsidies were good things, that there were still hotspots of pandemic around the country, but that we are making progress – but are not out of the woods yet – and oh, yeah, the New NAFTA comes into force on Wednesday. During the Q&A, Trudeau stated that American chest-thumping over tariffs only hurts them because they need Canadian aluminium as they can’t produce enough of their own. When asked about the Human Rights Watch report on Canadian foreign fighters being held prisoner in Syria, Trudeau insisted that they are preoccupied with the safety of diplomatic personnel in the region, and we don’t have any in Syria, which makes the complicated situation even more complex because most of these prisoners are facing charges. (Not everyone buys this argument). And when asked yet again about We Charities being given that contract, Trudeau again insisted that the advice of the public service was that only they could deliver on the scale that was required, and that some 25,000 students hand applied over the past few days, to prove the point.

A short while later, Dr. Theresa Tam gave her last regular update as well, as those pressers also take on a less daily pace, as well as unveiled new federal modelling numbers, which show that the pandemic is largely under control, but with the warning that people need to keep up good habits around distancing and hygiene, lest flare-ups start happening.

Meanwhile, in Alberta, Jason Kenney and his finance minister unveiled their economic recovery plan, and it was complete with mistruths, and tired magical thinking that tax cuts will automatically create jobs (when these rapid cuts will only benefit existing players rather than attract future ones), or that hectoring tech firms for not upping sticks to relocate to the “cheap rents” of Calgary and lower taxes as being “irresponsible.” So yeah, good luck with that. Meanwhile, here’s Andrew Leach with a bit of a fact check.

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Roundup: More questions about the WE contract

It was another campaign stop – err, media availability field trip for prime minister Justin Trudeau, where he headed to a local brewery that has converted part of their production line to produce hand sanitizer to both highlight that the country is now nearly self-sufficient in the production of personal protective equipment, but also to once again highlight how great the wage subsidy is, and please, for the love of the gods, would employers take advantage of it (and get people off of CERB). He mentioned Thursday’s teleconference with the premiers and the $14 billion that the federal government has put on the table, but the fact that they haven’t apparently taken him up on it would seem to me that this is a bit of public diplomacy on Trudeau’s part to try to get the premiers to take it with the strings attached. From there, he said that the Canadian Forces personnel would start withdrawing from some of the long-term care facilities in Quebec where the Red Cross could step in, but also that the Forces were going to stabilize four more residences. And finally, he gave a shout out to Pride, which is no longer happening in Toronto this weekend because of the pandemic, but it is still nice to have a prime minister that acknowledges it.

During the Q&A, Trudeau said that changes to the wage subsidy were on the way so as not to be a disincentive for companies growing beyond the qualifying criteria – but we’ll see what “soon” means. He stated that they did have a plan in the works to help the Royal Canadian Legion branches that are in danger of closing because of the pandemic, and when asked about the anti-racism statement that all of the First Ministers put out earlier in the week, Trudeau said that they didn’t come to an agreement on systemic racism, but that reporters would have to ask the premiers which ones they were. (Spoiler: It’s Quebec). And then there were the questions about the service grant contract being given to WE Charities. Trudeau said that it was about creating opportunities, and that they needed to have a partner with established networks, and very clearly annunciated that it was the civil service that recommended WE as the only organization capable of delivering those networks on the scale being asked. He also said that while they were covering WE’s costs, the organization wouldn’t be profiting. It’s still pretty dubious, and here’s Alex Usher laying out some of the questions that remain outstanding on this whole affair.

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Roundup: No to hostage diplomacy, yes to dubious administration

Prime minister Justin Trudeau held his no-longer-daily presser at Rideau Cottage today, and finally unveiled the Canada Service Grant programme for student and recent graduate volunteers, where every hundred hours of volunteering earns them $1000. On top of that, he announced some $40 million for Mitacs internships, and 100,000 new summer job placements as the programme has apparently become fully subscribed, along with another 20,000 post-secondary job placements. While the Q&A touched on the problem with the rent subsidies where businesses re-opening can earn too much to qualify, and long-term care – where he bluntly stated that provinces failed to support seniors but that the federal government was happy to help where they could – it was the subject of China’s hostage diplomacy that dominated, as reporter after reporter kept asking him over, and over, and over again about that letter signed by prominent Canadians to essentially capitulate to the Chinese and end the extradition of Huawei CFO Meng Wanzhou in exchange for the release of the Two Michaels. In language that was almost uncharacteristically blunt for Trudeau, he said that he deeply disagreed with the letter-writers, citing that giving in now would send the message to everyone that they could simply kidnap Canadians in order to get diplomatic concessions going forward, and it would endanger the safety of those Canadians going forward.

But back to that Canada Service Grant announcement, because what wasn’t announced during the presser and only came out later was the fact that they have turned over the administration of this grant to WE Charities, which is…problematic, not only because of the personal connection that Trudeau and his wife has with the group. We don’t know what kind of cut WE is getting for doing the work, and the fact that one of their main sources of income – their big stadium events – is off the table for the sake of the pandemic, this almost has the feel of Trudeau doing them a favour because they’ve lost that revenue, which is poor optics. Trust this government to step on a rake and evaporate good will that they’ve accumulated by making this kind of dumb move. It happens over and over again (and yet nobody seems to lose their job over it).

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