Tag Archives: Parliamentary Budget Officer

Roundup: Big border closure, big aid package

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

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

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

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

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

https://twitter.com/kevinmilligan/status/1240331137517367298

Good reads:

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

Odds and ends:

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Roundup: Suspension, and abrogation

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

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

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

https://twitter.com/twitscotty/status/1238507963058438144

https://twitter.com/BrettEHouse/status/1238622110760800257

https://twitter.com/BrettEHouse/status/1238622115282157570

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Roundup: Pandemics and aid packages

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It was a day yesterday, where COVID-19 was declared a pandemic, Justin Trudeau announced a $1 billion aid package to deal with the outbreak, Donald Trump announced travel restrictions from European countries, and the NBA suspended their season (if you care about such things). More and more events are being postponed or cancelled, and the markets have entered Bear Market territory.

(Note: Maclean’s has an updated COVID-19 Q&A here).

As for that $1 billion package the government announced, one of the missing pieces are measures for workers who can’t access EI or sick leave when they are forced to self-isolate, which the government says they’re working on. As for Parliament, it does indeed have a pandemic plan, but it’s still early when it comes to deciding what portions of it need to be activated, and that can include suspending the Chamber’s sittings, but that would require some kind of negotiation with the other parties as to when to pull that trigger, and its duration.

https://twitter.com/LindsayTedds/status/1237784525402288128

https://twitter.com/LindsayTedds/status/1237800420178718726

https://twitter.com/LindsayTedds/status/1237800422292639745

https://twitter.com/LindsayTedds/status/1237800424079409152

https://twitter.com/LindsayTedds/status/1237800425899700224

Meanwhile, Supriya Dwivedi worries that we aren’t warning people enough of the risk coming from the US, given how much of a gong show their healthcare system is. Susan Delacourt takes particular note of Trudeau’s language in asking Canadians to play their part to “flatten the curve” of the spread of the virus. Colby Cosh delves into some of the failure of the US’ centralized Centres for Disease Control in the early stage of the COVID-19 transmission. Heather Scoffield says that adequacy of Trudeau’s $1 billion COVID-19 package won’t last given the state of the economy.

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Roundup: Ministers inbound

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The ongoing protests in support of those First Nations hereditary chiefs protesting the Coastal GasLink pipeline have not yet resulted in arrests, raids, or other police action to enforce the court injunctions just yet, and VIA Rail has shut down passenger rail service throughout the country, while CN Rail has shut down their eastern Canadian operations for the time being, and that means temporary layoffs. There has been more government responses now – BC premier John Horgan is setting up new meetings, while Carolyn Bennett is heading to BC to meet with those hereditary chiefs, while Marc Miller will be meeting with the Mohawk leaders setting up the blockades in Central Canada (while Justin Trudeau says he remains apprised of the situation while abroad, and will be returning to Ottawa tonight following the conclusion of the security conference in Munich). Trudeau reached out to one of the First Nations leaders leading a solidarity protest blockading the port in Prince Rupert, and that seems to have worked, as they agreed to dismantle that particular blockade.

Part of what is underlying the response to these protests seems to be an aversion to another Oka crisis – so we’ll see whether there have really been any lessons learned, thirty years later. And police action would inflame the situation, and they seem to be alive to that situation, which is probably a good thing. I have to wonder if part of the response to this isn’t also a bit of a mirror of what we saw recently with the CN Rail strike, where certain voices started immediately howling that Parliament needed to be summoned in order to ram through back-to-work legislation or there would be dire consequences, and the government held off and lo, a resolution came within about eight days. Was there some disruption? Yes. Was the outcome better than if they had taken out the sledgehammer? Undoubtedly. And it would seem to me that similar thinking is underway here. Despite a few middle aged, white male columnists are melting down over, things are not at a crisis level – they are largely inconveniences, which is the point of protest. And by not making things worse, there remains a chance to resolve this in a peaceable manner.

This having been said, the cries that Trudeau is off trying to secure a UN Security Council seat instead of dealing with this “crisis” are myopic and don’t grasp what the seat would do for Canada (articulated in this thread), though I will lay that on this government’s chronic inability to communicate their way out of a wet paper bag. I also suspect that the hereditary chiefs’ attempt to launch a constitutional challenge against the pipeline on an environmental basis is going to blow up in their faces, so I’m not sure either side is doing themselves any particular favours in all of this.

https://twitter.com/EmmMacfarlane/status/1227934187090518022

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Roundup: Rushing a resurrected bill

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The government made good on their promise yesterday to re-introduce Rona Ambrose’s bill on sexual assault training for judges, and to their credit, they tabled an amended bill that does take into account most of the criticisms of the previous version of the bill that likely would have rendered it unconstitutional because it interfered with judicial independence in pretty much every respect. (See my story here). Not that you’d know it from some of the reporting – the CBC in particular has been absolutely allergic in looking into what the objections to the bill were, and why they made it unworkable and unconstitutional, preferring to blame the Senate as being an “old boys’ club” rather than objecting to an unworkable and unconstitutional bill – you know, like they’re supposed to.

But despite every party supporting the bill, that didn’t stop them from getting cute with it. The Conservatives, for example, suggested in Question Period that the government amend the bill so that it also includes training for Parole Board members – which is out of step for the language in the bill. Because, seriously, the Canadian Judicial Council is not going to provide that training, as the bill stipulates that they do for judges. And then Jagmeet Singh decided he too was going to be cute, after QP, and move that the House vote to pass the bill at all stages in one fell swoop, with no scrutiny. The Conservatives blocked that (possibly to put on a show about their floated notion about Parole Board officers), but seriously, Singh was completely offside in moving the motion in the first place.

The previous version of the bill was fatally flawed, but it passed the House of Commons unanimously because it hadn’t been properly studied. They sent it to the Status of Women committee, which has no expertise in the legal system and how it operates, and they focused on survivor-based training, which actually turns out to be problematic because it could potentially bias the training, particularly when it comes to the presumption of innocence before the law. It wasn’t until the bill reached the Senate that its flaws were actually discussed, but hey, it sounded like a good idea so all MPs passed it without thinking. Let me be clear – that’s a terrible way to pass laws, and it’s MPs abandoning their roles. As a former criminal defence lawyer, you would think that Singh might appreciate the problems inherent in the bill, particularly when it comes to bias and judicial independence – the latter of which I challenged him on in a scrum after QP – and he was completely oblivious to it, mouthing platitudes about sexual assault survivors. That’s not how Parliament is supposed to work. It would be great if our opposition parties could do their jobs, but it increasingly feels like it’s too much to ask. (The same goes for you, CBC).

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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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QP: What about infrastructure?

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Tuesday, and all of the leaders were back once again. Andrew Scheer was up first, and he claimed there were “sky high” deficits and taxes and no infrastructure spending to show for it — assertions that were all false. The deficits are actually tiny in comparison to the size of the federal budget, and the tax burden on Canadians is hovering near its lowest point in the post-war period, not to mention the fact that many of the promised infrastructure projects were held up by provinces trying to play politics in advance of the election, and that the hoped-for productivity gains were blunted when provinces didn’t keep up their planned infrastructure spending, and instead rolled it back as the federal government spent more. Justin Trudeau stood up and used a script to list projects that they were approving. Scheer then raised their Supply Day motion about calling in the Auditor General about the infrastructure programme. Trudeau reminded him that the Conservative record was spending on billboards, door knobs and gazebos, while their government was getting things done. Scheer asked again in French, got much the same answer, and Scheer raised the coronavirus and wanted support for Taiwan to get observer status at the WHO. Trudeau avoided the direct question and gave assurances about the coronavirus and collaboration with China. Scheer tried again, and Trudeau reminded them that they shouldn’t play politics with public health crises. Yves-François Blanchet was up for the Bloc, and he once again raised the possibility of aluminium impacting the Quebec market under the New NAFTA, to which Trudeau reminded him there were guarantees in the new agreement that do not exist currently. Blanchet tried again, and Trudeau quoted the aluminium producer association as saying it was a good deal. Jagmeet Singh was up next for the NDP, and he railed about the Volkswagen settlement agreement, calling it a “sweetheart deal.” Trudeau, without script, stated that they are paying a penalty and it was great for the fight against climate change. Singh then railed about a supposed tripling of outsourcing of public service functions, and Trudeau spoke to the balance around procurement. 

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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: Building the Teck narrative

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While some of Jason Kenney’s usual mouthpieces and apologists start agitating for the Teck Frontier oilsands mine, it seems we need yet more reality checks about the project – particularly the economics. Because we have seen on more than one occasion where a project that wasn’t economically viable still achieves mythology status because certain people who think the idea of it is great will lie about its fate in order to suit their narratives *cough*Energy East*cough*. Anyway, here’s Andrew Leach with more.

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Roundup: Singh thinks he has leverage

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Yesterday it was Jagmeet Singh’s turn have his one-on-one with prime minister Justin Trudeau in advance of the Cabinet shuffle and Throne Speech, and Singh came with his own list of priorities and demands – most of them as unrealistic as Andrew Scheer’s. And Singh’s insistence that he was open to voting against the Throne Speech, and that the party was ready to go to another election at any time, was simply precious. Unable to read the room, or calculate the seat maths, Singh apparently thinks he’s going to play kingmaker when there are more willing partners on the dance floor.

To that end, Singh was demanding immediate action on pharmacare, and pretending that Trudeau hasn’t been clear that he plans to implement the Hoskins Report, which called for a universal pharmacare system. The problem is that you can’t have “immediate action” on it, because it’s actually a very complex thing. You can’t actually just say “we’ll pay for all pharmaceuticals” because the costs would be extraordinary, and phasing it in with a single national formulary is actually incredibly challenging to do, especially across all provinces and territories, because they have different formularies currently and you run the risk of reducing people’s existing coverage (as what happened in Ontario when they briefly offered pharmacare for all young people in the province). It’s going to require careful negotiation with the provinces and stakeholders, and Singh’s constant refrain that this can happen immediately is fantasyland – just like his request that they also consider adding dental care in there.

As for some his other demands, the one about more “science-based” targets for emissions reductions is pure buzz-word. Science is not public policy, and you can’t just hand-wave and go “science” because it doesn’t work like that. Demanding the government abandon its judicial review of the Canadian Human Rights Tribunal decision on compensation for Indigenous children in care? As a lawyer, you think he would be sensitive to the concerns of bad precedent – particularly if the Tribunal did exceed their statutory authority. Energy-efficient retrofits? Electrified transit? Green jobs? It’s like they haven’t paid much attention to the Liberal climate plan and what carbon pricing does to create market incentives. Electoral reform? Apparently he didn’t pay attention to the hot garbage report that the parliamentary committee released last parliament. His “super-wealth tax”? The one that would require the government to rewrite the entire tax code to make it conform to American concepts? I’m sure they’ll get right on that. Singh has no leverage, and yet he thinks the government should simply adopt the NDP platform or have the party’s support withheld. I’m sure the government will get right on that.

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