Tag Archives: Parliamentary Budget Officer

Senate QP: Chagger skirts some issues

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While the official apology to LGBT Canadians carried on in the House of Commons, the Senate moved onto its regularly scheduled ministerial Question Period, with special guest star Bardish Chagger in her role as minister of small business and tourism. That didn’t quite matter to the Conservative leader, Senator Smith, who led off on the ongoing issue of the process to name a new Ethics Commissioner, which Chagger is in charge of, and his concerns with news that four members of the PMO had recused themselves from the process because they were on the PM’s vacation to the Bahamas over Christmas. Chagger noted that she was supposed to be here in her role as minister of small business and tourism, but that being said, she responded that the was an open, transparent, merit-based process in place. When Smith pressed, noting that Chagger had defended the PM on his vacation while she was in charge of this process, Chagger reiterated that there was an open, transparent, merit-based process.

Senator McIntyre asked about the PBO report on the proposed tax changes, and whether she knew in advance what it said. Chagger noted that she read the report at the same time as others, and that the intent of the changes was to close loopholes on places where they are used for high-earners evading taxes but not to punish small businesses, which are the backbone of the economy.

Senator Day asked a question in relation to Chagger’s role as House Leader, and raised the omnibus motion that Chagger moved in June that in part rejected Senate amendments to the budget bill. Day demanded to know what “rights and privileges” the amendments would have violated, and why they would have been passed without debate. Chagger said that they have the utmost respect for the Senate, but didn’t really defend her motion or her actions. Day pressed on the rights and privileges, given there was no debate that spelled out what they were, but Chagger merely said that she would ensure that the Senate’s views were heard.

Senator Cormier asked about the Business Development Bank of Canada, and the needs of the arts and culture sector. Chagger said that she has been working with BDC on several initiatives, and that a whole-of-government approach was being taken, but she was pushing for more recognition of the arts sector.

Senator Lankin asked about taxes on campgrounds and the lack of sufficient answers on the matter to date. Chagger said that CRA was dealing with those cases on a case-by-case basis, and she had asked to be kept informed on the progress.

Senator Batters asked about the lack of details on retroactive tax changes to passive investments (which is not actually right — passive income changes were to be grandfather existing investments). Chagger respectfully disagreed with Batters on her characterization, noted the 73 percent tax rate referred to was not common, and then quoted the PBO report that said that 97 percent of businesses would not be affected.

Senator Greene Raine asked about a programme for tourism packages, which was had their GST rebate application later than expected and less than expected. Chagger said that she would follow up with her on the issue.

Senator Omidvar talked about entrepreneurship among immigrants, and some of the difficulty that they have with navigating the system. Chagger highlighted the accelerated growth service that caters to the needs of entrepreneurs that provides help to get through the hurdles.

Senator McPhedran asked about a fund for women entrepreneurs in the tech sector, particularly for Indigenous women. Chagger agreed that were not doing enough in that sector and they were trying to do better, and they were seeing returns on that fund, and curiously, tied it into the apology to persecuted LGBT Canadians taking place in the Commons, and the loss of potential that took place then and that she doesn’t want to keep taking place now.

Senator Oh asked about Canada-China tourism, and the ability to quickly process visa applications. Chagger said that she was happy to see the numbers from China grow, and gave some praise for the tourism industry before getting around to the visas, and noted the seven new visa centres which were opened and are “working well.”

Overall, it was a fairly mixed bag. On the one hand, Chagger could absolutely give good answers to some questions, and without the same 35-second constraints in the Commons, was able to actually give reasonable answers instead of sound-bites. This having been said, she did have a tendency to dissemble at times, but not quite as much as some of her colleagues, and generally, she would return to the question being posed. But when pressed on one of the most fundamental issues, being Senator Day’s inquiry into just what happened in June with the amendments to the budget bill (during which, I will remind you, Senator Harder compromised his own position in his leading the response from the Senate), and the somewhat alarming manner in which Chagger made her response in the Commons at the time, she remained mute. While it wasn’t too surprising, it was certainly disappointing, especially as it points to the ways in which this government continues to handle the independent Senate that they have promoted.

Sartorially speaking, style citations go out to Senator Lillian Eva Dyck for a black leather jacket with embroidery, a white blouse with a lace collar and a black skirt with a Indigenous floral pattern, as well as to Senator René Cormier for a tailored dark grey suit with a white shirt and patterned tie. Style citations go out to Senator David Richards for a baggy black jacket, taupe slacks, white shirt and black striped tie, and to Senator Pierrette Ringuette for a tan long sweater over a black, white and red patterned dress, with red tights.

QP: No one is above the law

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With the PM off in PEI to deliver a speech and then off to Newfoundland to do a bit of by-election campaigning, Andrew Scheer opted not to show up either. That meant that it was up to Lisa Raitt to lead off, raising the new headlines around Stephen Bronfman, and demanded to know what assurances the PM had received from him. In response, Diane Lebouthillier gave her usual assurances that they are investigating tax evasion and charges were upcoming. When Raitt demanded to know if Bronfman was under investigation — as though the minister could actually answer that — and Lebouthillier reminded her that the previous government, of which Raitt was a member, cut investigations. Raitt then disingenuously suggested that the PM interfered in an investigation — wholly falsely — and Lebouthillier reiterated her assurances. Gérard Deltell got up to repeat the questions in French, to which Lebouthillier reminded him that she can’t comment on any investigation under the law and that they knew that. After another round of the same, Guy Caron got up to also carry on the Bronfman questions, and Lebouthillier dutifully repeated her points about investigations. Caron repeated in English, and Lebouthillier sharply noted that no one was above the law, and nobody was interfering with any investigation. Matthew Dubé was up next to ask about SS7 vulnerabilities with Canadian mobile phones, to which Ralph Goodale said that this was a CSE responsibility, that they work with telecom companies, and if they needed more of a push, they would get it. Dubé demanded legislative updates to protect Canadians’ privacy, and Goodale assured him that a cyber-review was underway and at least three initiatives would be tabled in the coming weeks.

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Roundup: Uncritical about the playwright’s lament

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Toronto playwright Michael Healy apparently took to the Twitter Machine to plead with the government to ditch their talking points and talk like human beings. Aaron Wherry in turn wrote this up as wondering why politicians don’t talk like they’re on the West Wing, but didn’t actually look at the reasons why message control has taken hold – never mind that nobody actually talks like they’re in an Aaron Sorkin production (because honestly, the sanctimony alone…) But in all honesty, it would have been a useful exercise to see why some of this has become entrenched.

For one, part of the problem is the format of Question Period in the Commons, where the strict 35-second clock makes reasonable answers all-but impossible in most cases. I’ve had staffers tell me that they have to prepare scripts, not because their ministers don’t know the subject matter, but because they need to keep it within those 35 seconds and that’s the easiest way. I can’t say that I’m necessarily sold on that – or too sympathetic – but I can see why the temptation is there.

Part of the problem is the way in which branding has taken hold of politics to such a degree that there is a perceived need to drill slogans into people’s brains – things like “Strong, Stable Conservative Majority™,” or “The Middle Class and Those Looking to Join It™.” One of my pet peeves is “The Environment and The Economy Go Together™” because I know that the minister who keeps saying that is capable of answering questions in a reasonable manner and could do so if she stopped delivering that line, but that’s the message that she wants to drive home. Even though we get it.

And part of the problem is the way that We The Media treat frankness – we punish them for it. Witness what happened two weeks ago when Carla Qualtrough went on CTV’s Question Period, and Evan Solomon picked the $1 billion figure for a possible Phoenix price tag out of thin air, and when Qualtrough said, frankly, that she didn’t know but she couldn’t rule it out, suddenly CTV ran with the “billion dollar” headline, and absolutely everyone else followed suit. It’s now stuck to the Phoenix issue in most headlines, never mind that it wasn’t what she actually said, but her moment of frankness is now being treated as some confession that we will tar the issue with. We The Media have been repeating the mendacious and disingenuous framing devices around the interminable Morneau Shepell questions uncritically – and in some cases, fuelling them in a complete absence of fact of context *cough*Globe and Mail*cough* and anything that the ministers say becomes a trap.

So why, then, would any minister want to be frank in their answers, if we’re just going to punish them for it? Unfortunately, we don’t seem to have the self-awareness to process this – that we are part of the problem that drives this issue to turn all government messages into pabulum. We do this to ourselves. Let’s think about that.

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Roundup: The demise of Energy East

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The news that TransCanada decided to cancel their plans for the Energy East pipeline yesterday created a predictable firestorm of reaction, from the gloating of Montreal mayor Denis Coderre, outgoing Saskatchewan premier getting in his last kicks, to the histrionics of the Conservative caucus. The government’s line is market conditions have changed since the project was first proposed – and they’re entirely correct. But that doesn’t stop the rhetoric, either from TransCanada itself, or from the Conservatives, who are peddling some incredulous, mind-boggling lines to vilify the government.

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But seriously, there are plenty of charts and graphs that show how the market conditions have changed beyond just the world price of oil (which is a bit part of it), but that the capacity with the other approved pipelines changes the equation for the hole that Energy East would have filled, and it’s no longer clear that it was a clear-cut decision after all.

Also, it should be mentioned that as much as TransCanada is blaming government regulation, they did balls this up on their own end more than once, and do need to take some of the blame along the way. But why take that blame when you can shake your fist at the government?

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And this having been said, there is a proud Alberta tradition that is underlying all of this. Because some zombies refuse to die.

Meanwhile, Paul Wells looks at the current record of the government in trying to attract investment, and wonders if we really are a place that will get the big things built, or if it will all collapse in tears and recriminations, driving investors away.

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QP: Energy East and Barbados

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After the Energy East cancellation announcement this morning, you just knew that this would be the fodder for increasingly hysterical denunciations during QP today. Justin Trudeau was present, but Andrew Scheer was not, so it remained to be seen how this would play out.

Lisa Raitt led off instead, mini-lectern on desk, blaming the government for killing Energy East with their ideology. Justin Trudeau responded that it was a business decision, that the project was proposed when oil was $90/barrel and it’s now half that, but that his government had already approved three other pipelines. Raitt accused the government of playing to the interests of countries like Saudi Arabia, and Trudeau shrugged off that suggestion. Raitt then accused him of taking Atlantic Canada for granted with this cancellation. Trudeau countered that they had an Atlantic growth strategy and that it was the previous government that ignored them. Gérard Deltell then took over the condemnation of the loss of Energy East in French, and Trudeau reiterated that conditions have changed, also in French. Deltell then said that Trudeau was responsible for conditions changing, as though Trudeau controls the world price of oil, and Trudeau instead responded about the ways that they have been doing what the market has been asking for, including carbon pricing. Guy Caron was up next, pointing to the recent PBO report on fiscal sustainability, and demanded that healthcare be adequately funded for the provinces. Trudeau touted the investments that they made in mental health and home care. In English, Caron demanded a national strategy for seniors, to which Trudeau listed all of the measures that they have taken. Caron then changed topics to the Phoenix pay system, demanding a refund for it. Trudeau noted that they were working with the public service and the unions to fix the situation, and then there was another round of the same in French.

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Roundup: All abuzz about Netflix

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It’s probably not a big surprise that the story for which the most ink (physical or digital, take your pick) was spilled yesterday were the culture policy changes that Mélanie Joly announced, punctuated by the grand announcement that Netflix had committed to spending half a billion dollars over five years on Canadian productions. But in there was also news that there would be no big bailout for the news media in this country, and there would be some funding boosts for the Canada Media Fund, the Canada Music Fund and the Canada Book Fund, and a creative export strategy, along with previously announced reforms of the Copyright Board.

Suffice to say, there’s a fair amount of grumbling from traditional broadcasters that Neflix is essentially getting away with murder, not bound by the same CanCon obligations of traditional broadcasters, nor are other Internet giants like Google and Facebook being asked to contribute to the same content creation funds that traditional media are. And there is some pretty legitimate concerns about this announced Netflix deal because it’s pretty opaque – Netflix will continue to be able to operate as a black box when it comes to their subscriber data, and while Sean Casey went on Power & Politics to insist that the $500 million was new money (given that Netflix had previously told Parliament that they were already spending “hundreds of millions of dollars” in Canada), it really doesn’t seem like that’s anything new given that previous statement. Netflix also says that the money isn’t coming from the recent rate-hike in Canada, but that’s not washing with a number of people. The Financial Post has a fairly comprehensive look at the announcement here, including the fact that the announcement seems to leave a lot of the heavy lifting into the future, which probably shouldn’t be a surprise.

I do think it should be incumbent upon us to remember that Netflix has not been a net benefit to the cultural sector in Canada. The late Denis McGrath used to refer to them as a “parasite” on the Canadian broadcast sector because they put no money into the production of shows that they streamed, encouraging the cord-cutting that starved the very platforms who produced those shows that they later streamed of funding. It’s a complex problem, and a handful of Netflix originals aren’t going to be the panacea for the Canadian film and television industry. If anything, it may hasten the decline.

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QP: The Morneau-Shepell conspiracy

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Shortly after a fire alarm emptied out the Centre Block, and MPs made their way back into the building, Question Period got underway. Andrew Scheer led off, reading a stilted question about the Omar Khadr settlement in French. Justin Trudeau took the chance to take a partisan shot, saying that this was because the previous violated his rights — not mentioning that it was also the fault of previous Liberal governments — and reiterated his previous speech about how he was outraged and hopefully that outrage would ensure that future governments would not violate rights again. Scheer called out that the Liberals were at fault too, and Trudeau modified his response that it was about previous governments (plural) but added that this was not about Khadr, but about the government’s action and they should stand up for rights even when it’s not popular. Scheer then pivoted to the tax change issue, got the usual talking points from Trudeau, and when Scheer tried to skewer this as being one more cost to the middle class, and Trudeau reeled out his points about cutting taxes on the middle class. Scheer made a few digs at Trudeau’s own numbered corporation and his speaking fees before he was made party leader, but Trudeau didn’t take the bait. Pierre Nantel was up for the NDP, and railed about the announcements on cultural industries. Trudeau read a statement that assured him that they had unprecedented investment from Netflix, and that they would ensure that Canadian creators would benefit. Rachel Blaney asked in English, decrying that Facebook and Google were not being made to pay, but Trudeau reiterated his assurances that Canadian producers would benefit from these funds. Nantel repeated the question in scripted English, Trudeau reiterated that this was great news for Canadian cultural industries, and Alexandre Boulerice closed the round by railing that other media companies weren’t being taxed. Trudeau repeated that they were looking to support the industry as it transitions.

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Roundup: No more gimmicky rules

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In her latest installment of her occasional “Dear Process Nerd” column series, Kady O’Malley takes on the subject of heckling, and offers a sympathetic answer about the frustration of MPs who can’t get a word in edgewise given the way in which debates and QP are structured to all but discourage actual debate. And she’s right – that is a very serious problem that we should address. The problem? The solutions that she offered were not solutions.

As is so often the case with people who are looking to reform the system to improve the obvious deficiencies, the instinct is always to implement some new gimmick, and my learned friend is no different in this regard. In this case, O’Malley notes that we should give MPs more time to meaningfully engage with legislation (go on…) but decides that the answer lies in rejigging the daily schedule for un-structured, open-interaction with things like quizzing specific ministers on subjects or Urgent Questions.

And this is the part where I heave a great sigh, because my learned friend as completely missed the mark.

When you identify a problem, you shouldn’t go looking for a new gimmick to try and counterbalance it – you should go looking for the source of the problem and solve it there. In this case, it’s the way in which we started regulating speaking times in Canada so that when we imposed maximum speaking times, we incentivised MPs to use up that whole time. That meant speeches that went up to 40 minutes, then twenty, and the ten minutes allotted for questions and comments wound up being just as rote and scripted more often than not because MPs no longer know how to debate. So why not just tackle that problem instead? Restore the old rules – abolish speaking times and speaking lists, have the Speaker gauge how long MPs should have to speak to a bill or motion based on the number of MPs who want to speak to it, and allow for interruptions for questions in a free-flowing manner, and above all, ban scripts so that MPs will be engaged in the subject matter, talking for probably eight to ten minutes, ensure that there is free-flowing debate throughout, and most of all, it eliminates the impetus to read speeches into the record. Just tacking on new rules and gimmicks has made the situation worse over the years. Strip that away. Get us back to the fundamentals. That will help bring about actual change.

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Roundup: Unexpected PBO problems

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As it turns out, there is another problem with the legislation that turns the Parliamentary Budget Officer into a full-fledged independent officer of parliament rather than his current status as being part of the Library of Parliament – it just so happens that they need to request any information from ministers themselves and not from civil servants. And nobody flagged this issue during study of the bill when it was before Parliament. Oops.

The concern from the PBO is that this could automatically politicise the work, as though that wasn’t already happening. After all, the PBO has become the opposition’s favourite cudgel to bash the government with, and shield by which to hid behind in order to insist that the report comes from the “objective, non-partisan” PBO and therefore is sacrosanct. Not to mention, that the creation of the office has meant that MPs have one more person to fob their homework off onto rather than doing it for themselves. After all, math is hard, and they have better things to do. So will the change have any material effect? Hard to say, given that the bureaucracy has been reluctant to share all of the requested information to date, and a government that is happy with the PBO one day can quickly become a government that is unhappy with him the next, and they could start insisting that all information is cabinet confidence. But they can already do that with information being requested by way of the civil service, so perhaps that’s a moot point. Only time will tell.

Meanwhile, there have been no efforts to rein in the scope of the PBO’s work, which could become a different sort of problem down the road. Ontario’s PBO-equivalent released a report yesterday that seemed to be a little outside of its mandate, leading to indications that perhaps there are problems brewing.

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Roundup: PBO’s platform peril

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Now that the budget implementation bill has passed, the Parliamentary Budget Officer is in the midst of transforming into yet another unaccountable Officer of Parliament that will have a broad mandate and few checks on his actions, given that the government backed down on their attempts to limit the scope of his work. What they didn’t limit was the giving the PBO the mandate to cost election promises by other parties, despite his objections to doing so, and so now his office is being forced to figure out just how they’ll do it. The legislation does make it clear that he’s only to cost individual promises, not their whole campaign, but it’s going to be an enormous amount of work that will be used even more as a cudgel than his work already is, and we can expect an election period being filled with taunts of “See, the PBO says that your plans will cost more than you say and he’s independent,” with the unspoken “Nya, nya!” in there. Oh boy. Anyway, Jennifer Robson has a few more thoughts on the issue.

The bit about a common baseline is possibly important, given that economist Stephen Gordon has been trying to match Liberal election promises to the current budget framework and has found the task to be nigh impossible.

Enforcing common costing baselines may sound like a good idea, but it does make me nervous about campaigns devolving into accounting exercises at the expense of other considerations, including accountability, and that we’ll have repeats of 2008, when we had clear platform commitments shrugged off by reporters going “it’s just so complicated” when a) it wasn’t, and b) it reinforces this “math is hard” narrative that does nobody any favours. But maybe that’s just me.

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