Tag Archives: Parliament Hill

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: A failed attempt at fundamental reform

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Fair warning that this is going to be super wonky and a dive into parliamentary nerdery, but it’s important to how our democracy functions. It seems that the government’s attempt to better reconcile our budget cycle and Estimates process has been declared a failure, and the deeply flawed system that has grown up over a number of years has once again returned, and that’s a huge disappointment because it was an important change that they were attempting.

Part of the problem here is that we don’t have a fixed budget date, but the Estimates cycle operates by a fixed calendar. What this has tended to mean is that the budget can be pushed back after the Main Estimates, which means that all of the spending that Parliament is supposed to approve winds up being reflective of the previous year’s budget, and then it’s up to the Supplementary Estimates later in the year to update the spending to what was in this year’s budget – a system that makes it difficult if not impossible to track spending, particularly as the accounting used in the Public Accounts at the end of the fiscal year is different still from both the budget and Estimates. If Parliament’s key function is to study these spending plans and expenditures and hold the government to account over them, it is a nigh-impossible task (which is one more reason why MPs have given up on doing it, and simply turned it over to the Parliamentary Budget Officer, which is a Very Bad Thing). It was Scott Brison’s pet project when he was at Treasury Board to try and better align these cycles, but that was easier said than done, particularly given some of the sclerotic processes within our civil service, and their attempt to try and get some money out the door faster with a $7 billion fund (derided by the Conservatives as a “slush fund” despite there being a list of approved items that accompanied it) never wound up actually working, and much of that money went unspent even though it was supposed to mean things happened faster. It’s a failure all around – both with this government and within the broader civil service.

I am hoping that the Liberals have taken what lessons they can from this and take more steps to rectify some of the problems, including assigning a fixed budget date so that the civil service can adjust their own cycles and processes to reflect this and the Estimates cycle can then reflect what is in the budget (and aligning the Public Accounts with these cycles would also help). This is at the very heart of how our parliament is supposed to operate, and if we can’t get this right, it’s a very, very bad sign for the health of our system.

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Roundup: Urging calm, patience, and police action

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Yesterday was a long and very busy day, as everyone scrambled to get their say on the ongoing protest and blockade situation across the country, with a mounting economic cost to them. First thing in the morning, the AFN National Chief, Perry Bellegarde, and several First Nations leaders held a press conference to ask the Mohawk protesters to dismantle the barricades – not as surrender, but as compassion for those who would soon be affected by shortages – but one of those Mohawk leaders also noted that his band office has been locked out and protesters among his own people say they want him out. A short while later, Justin Trudeau gave a speech in the House of Commons to counsel patience and to reiterate that dialogue remained the best way to resolve the situation – something Andrew Scheer denounced as weak, and he continued to insist that the police end the protests, insisting that this was but a group of “professional protesters” and “radicals” and that the “real” position of the Wet’suwet’en people was for jobs and resource development (even though he later said he hadn’t actually spoken to any of them) – something that both Peter MacKay and Erin O’Toole also echoed, because police action has never gone badly before. Oh, wait. (Marilyn Gladu, for the record, wants the military to step in). Shortly after Trudeau’s speech, he had a meeting with Yves-François Blanchet, Jagmeet Singh, and Elizabeth May, and made a pointed remark that Scheer had not been invited because his remarks were “disqualifying” – which led to Scheer’s agitated breathy and high-pitched performance during QP. Oh, and while all of this was going on, some activists in Victoria tried to perform a “citizen’s arrest” on BC premier John Horgan (and they got arrested instead).

By the time the five o’clock politics shows rolled around, Carolyn Bennett had concluded a meeting with some of the hereditary chiefs – who stated on one of the shows that they wouldn’t actually negotiate until the RCMP were off of their territory – and Marc Miller refused to discuss whether that was on or off the table when asked, leading the pundits to make hay of that. (“He didn’t say no!” is the worst impulse in journalism, guys). Oh, and hilariously, Jody Wilson-Raybould offered her services as a mediator, as though anyone in the government would be willing to trust her. As the day wound down, Saskatchewan premier Scott Moe said he was holding a meeting of premiers today because Trudeau “refused to act” – though I’m not sure what exactly he proposes, unless it’s to try to direct provincial police forces to start cracking skulls, both violating the rule of law and making the situation worse. And that’s where we are.

Meanwhile, here is a good primer written by a lawyer and a law professor about what “rule of law” means and why it’s important – as Scheer and company keep misusing the term. Heather Scoffield sees the business impacts of the blockades and deduces that it will be impossible to resolve them both quickly and peacefully – it would have to be one or the other. Andrew Coyne counsels patience in threating the needle that the protests can both be illegal while still noting that using force will only create martyrs. Matt Gurney worries that if the blockades go on much longer, they could fuel populist anger and damage the cause of reconciliation. Paul Wells attempts to make sense of the day that was, and the Liberals’ high-wire act in the middle of it all.

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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: Ambrose rules out a return

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It was a day of a lot of movement within the Conservative leadership race, with big repercussions to come. Early in the day, we got word that two more names were added to the Conservative race – rookie backbencher Derek Sloan, and failed leadership candidate (and aspiring narcissist) Rick Peterson. Sloan has already come out and said that he’s open to having a debate over abortion, and he’s putting forward this absurd notion that they need to stop being apologetic about being Conservative – which would be great if the party actually put forward conservative ideas like market-based solutions to problems rather than just populist pandering. Shocking. Peterson, meanwhile, is continuing his schtick that his business success is going to translate to political success, even though he did abysmally in the last election and couldn’t secure a nomination to run in the election, which shows you just how profound his organizational skills are. Nevertheless, expect him to position himself as the “Western” candidate in the race.

And then the big bombshell – Rona Ambrose announced that she is officially out of the race. It wasn’t a surprise really, especially as word has been circulating in Conservative circles that she hasn’t made any phone calls or secured any kind of organization while she considered her options. Nevertheless, it now opens the race wide open because a lot of people who had been holding their breath and waiting for Ambrose to make a move can now make their own moves. It also means that currently, Marilyn Gladu is the only woman in the race, which can’t be healthy for the party either. (It also makes me wonder who the Red Tory in this race is going to be, because it’s not actually Peter MacKay).

And just minutes after Ambrose made her announcement, another would-be candidate, former staffer Richard Décarie went on Power Play to expound on his social conservative views. It went as well as can be expected.

While most of the other candidates quickly came out to condemn these comments, there are a few things to note here – Décarie is worth following because he has attracted some organizational heft, particularly from those who were behind Tanya Granic Allen in Ontario, and it’s not insignificant, and when you recall that Brad Trost did come in fourth the last time around. There is a particularly strong social conservative organization within the party, and they do a lot of fundraising and organizing, and that can’t be overlooked when it comes to a leadership race, where those to factors are going to count for a lot more.

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Roundup: Testing names in the field

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Over the weekend, I got a call from a public opinion research company who was doing a survey on the Conservative leadership race. While many of the questions were fairly loaded or leading when it came to things like carbon pricing, and there were a lot of questions relating to just how progressive one thinks a future Conservative leader should be, I was most fascinated by the testing about potential candidates. There was an open-ended opportunity to provide a name that one might think could entice voters to switch to the Conservative party, followed by a list of names where one was invited to rank how much it would make you switch your vote for the Conservatives. That list: Gerard Deltell, former Bank of Canada Governor Mark Carney, Doug Ford, Jason Kenney, Jean Charest, Peter MacKay, Rona Ambrose, Lisa Raitt, Pierre Poilievre, Erin O’Toole, and Christy Clark. The inclusion of Carney is a head-scratcher considering that there was a Big Deal a few years ago about his apparently sniffing around the Liberals about a possible future leadership bid, while the fact that Michael Chong was left out despite his previous leadership run and the fact that he has stated he is seriously considering another go of it. So anyway, make of the list what you will, but those are the names that someone is testing.

Meanwhile, the first “official” declared candidate is Bryan Brulotte, a one-time Progressive Conservative staffer and failed candidate, who is pitching a negative income tax and “luxury tax” in lieu of a carbon price. Pierre Poilievre is also planning to announce his candidacy today, with John Baird chairing his campaign – though one wonders if that will conflict with his post-mortem report on how the party botched the election.

On that note, here’s Jess Morgan’s argument why he would be the absolute worst thing, while Paul Wells sizes up what we know of the race to date, and what kinds of choices the party faces in the process.

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Roundup: Exit Scheer

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The news that blew up all of our days was that of Andrew Scheer’s sudden resignation as leader, despite having stated for nearly two months that he planned to stay on and fight the next election. As this news broke, so did the news that party funds were being used to finance his children’s private school education, and throughout the day there was a lot of back-and-forth as to just who in the party knew about it, and it sounds increasingly like Stephen Harper, the Conservative Fund’s chair, was mighty upset when he learned about it. Oops. Nevertheless, Scheer went before the House of Commons and talked about how this was all about needing to spend more time with his family, and he spun a tale about how he realized he barely knew his teenaged son, and Justin Trudeau and others were very gracious and classy, and offered more humanity to Scheer than he managed to in his time as leader. The caucus also voted to let Scheer stay on as interim leader until his replacement is chosen, but considering how well that went for the NDP, with the embittered Thomas Mulcair poisoning the well, well, you’d think they would know better.

While the group calling itself Conservative Victory that were organizing to pressure Scheer to resign has declared victory, we now begin with all of the breathless speculation as to who will run to replace Scheer, and you can bet that most of the usual names – Raitt, Ambrose, Kenney – won’t. The Star runs through the probable names and their chances of actually running.

And, of course, come all of the hot takes. Justin Ling declares this the end of Scheer’s reign of incompetence. Andrew Coyne notes that Scheer’s departure won’t solve the party’s bigger problems. Matt Gurney makes the point that the party really can’t choose a new leader until they learn the lessons from the last election. Susan Delacourt explores the parallels between Scheer’s departure and that of Joe Clark after his election loss in 1979. Paul Wells gives a fair accounting of Scheer’s self-inflicted wounds, and the huge challenge the party faces in trying to find a leader that will unify the party’s various factions. Robert Hiltz gives his not-so-fond farewell to Scheer with his trademarked acerbic style. My own column on Scheer’s demise looks at how he turned politics into a house of lies, and why his successor will need to rectify that mistake.

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Roundup: Encana and illogical anger

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The big news yesterday was that oil and gas company Encana decided to decamp their headquarters and head to the US under a new name to try and attract more investors there, and Jason Kenney and his ministers freaked out. They railed that this was Trudeau’s fault – despite Encana’s CEO saying otherwise, and despite the fact that there are to be no job losses in Alberta or loss of existing investments – and Kenney upped his demands on Trudeau (including the ludicrous demand that Trudeau fire Catherine McKenna as environment minister). And while the Trudeau blaming gets increasingly shrill and incoherent, there are a few things to remember – that Encana’s stock price has hewed pretty closely to the price of oil, that it lost more value under Harper than it did Trudeau, and that even bank analysts are mystified by the move. Perhaps Kenney’s blame is misplaced – imagine that.

https://twitter.com/kevinmilligan/status/1189992947615289345

There have also been a number of voices making the absurd comparison that governments are quick to help companies like Bombardier and SNC-Lavalin but won’t offer it to oil companies – which ignores that the Harper government also helped those same kinds of companies, while Trudeau bought a pipeline in order to de-risk it and ensure that it gets completed, not to mention that other companies usually asking for loan guarantees and aren’t reliant on oil or commodity prices. There is a lot of false comparison going on in order to nurse this sense of grievance, because that’s what this is really all about.

Meanwhile, here is some additional context on the economic situation in Alberta and Saskatchewan that we shouldn’t overlook as part of this conversation.

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Roundup: New Brunswick dust-up

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The situation in New Brunswick has turned to complete melodrama as it turns out that maybe it wasn’t fourteen former provincial NDP candidates who defected to the Greens, and that maybe it was only eight. Some said they were surprised to see their names on the list, others said that they were under the impression that this was really a discussion about merging with the Greens provincially to form a more progressive alternative party (given that the NDP were wiped out provincially, and it doesn’t help that their former leader crossed over to the provincial Progressive Conservatives and is now sitting as a cabinet minister). All the while, Elizabeth May is taking swipes at Jagmeet Singh for not visiting the province, while she also alleges that the NDP engaged in strong-arm tactics to force some of those former candidates to recant their cross to the Greens (which some deny). Amidst all of this are the allegations that some of this was because these NDP candidates felt that there are people in the province – singling out the Acadiens on the North Shore – would react poorly to Singh, and the howling that this is all about racism.

And it is possible that there is an element of racism in here, and we shouldn’t deny that it does exist in Canadian politics, even if it’s not overt. To that end, Andray Domise writes in Maclean’s that leftist parties in Canada don’t critically engage with issues of race because bigotry can be useful politically and economically, and it’s the kind of thing they should be engaging with but don’t. It’s a fairly damning condemnation of the state of leftist politics in this country, and nobody comes out looking good as a result (though, it should also be noted, that the Greens are not really a leftist party in most respects, and the NDP have turned themselves into left-flavoured populists over successive elections and leaders, so perhaps that makes the point even more trenchant).

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