Tag Archives: Parliamentary Budget Officer

Roundup: Economists endorse carbon pricing, not the Liberal plan

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Yesterday, a group of leading Canadian economists published an open letter about the facts about carbon pricing and the rebates, and debunked several claims that conservatives around the country have been making. It was a good and necessary corrective, but of course, legacy media headlined it as them defending the Liberal plan, which they weren’t doing, particularly because while the Liberal plan includes the carbon levy and rebates, it also is full of regulation and subsidies, which these economics are explicitly not in favour of. But legacy media loves to make this a partisan fight where they have to be on one side or the other. Liberal Party comms didn’t do themselves any favours either on this one.

To that end, here is energy economist Andrew Leach on carbon pricing, and throwing some shade at the PBO’s rather shite report once more.

Meanwhile, a number of premiers demanded to be heard at the House of Commons’ finance committee about the carbon levy, because they think that’ll do them any good, but instead, the Conservative chair of the Government Operations Committee invited them to testify today. The Government Operations Committee has fuck all to do with this file, but apparently, we no longer care about things like committee mandates anymore, so long as you can put on a dog and pony show, and gather clips for social media shitpost videos, that’s all that matters. This shouldn’t be allowed, but this is the state to which our Parliament has now debased itself. Ours is no longer a serious institution for doing serious work. It’s only about content creation, and I cannot stress enough about how absolutely terrifying this is for the future of democracy.

Ukraine Dispatch:

A Ukrainian missile attack struck a Russian naval reconnaissance vessel as well as a large landing warship. Ukraine’s navy says that they have destroyed or disabled a third of the Russian Black Sea fleet over the past two years. Here’s a look at how Ukraine’s burgeoning domestic defence industry is ramping up to provide necessary ammunition for the war. Here’s a great explanation of Ukraine’s use of drone warfare with some excellent infographics.

https://twitter.com/defenceu/status/1772541600591147503

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Roundup: Reasons to oppose a bad judgment

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After the federal government filed their appeal of that Federal Court decision that…strongly suggested to them to appoint more judges (because it certainly wasn’t an order), the lawyer behind that suit has filed a cross-appeal because he wants tougher language and more teeth to it, but it’s not something that the courts can really force a government to do because it’s a Crown prerogative. They have no enforcement mechanism, so I’m not sure what the lawyer here is hoping to accomplish other than to keep getting his name in the papers.

Speaking of papers, I do find it to be a problem that in both the National Post and Toronto Star stories about this cross appeal that neither of them referenced the fact that the primary reason the federal government is appealing the decision is not because it’s useless, but because it’s a complete dog’s breakfast that makes up a constitutional convention from whole cloth and then runs with it. There is plenty of commentary from constitutional scholars out there, Emmett Macfarlane’s being one of the most accessible, but this is a real issue, and no government that is the slightest bit responsible wants bad precedents sitting on the books. It’s one of the reasons why they fought the Canadian Human Rights Tribunal decision on compensation for Indigenous families—they were willing to pay the compensation, but the Tribunal exceeded its authority and they didn’t want that to stand lest it create a precedent (and why that was one of the points of negotiation in the settlement).

Bad precedents, if left unchallenged, create bad case law, and that creates all kinds of problems in the future. Nobody is arguing that this government doesn’t need to make faster appointments, because they absolutely do, and even they recognise that. But this was a bad decision that shouldn’t be allowed to stand.

Ukraine Dispatch:

Russia subjected Kyiv to intense bombardment for the third time in five days, and once again, damage and injuries were mostly from debris from intercepted missiles and drones. Russia also attacked an underground gas storage facility, at a time where there are already rolling blackouts because of attacks on power supplies, as engineers work to restore power, in particular at Kharkiv and Odesa. Meanwhile, Ukraine continues to make drone attacks on Russian refineries.

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Roundup: Eby calls out Poilievre’s baloney factory

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Because the clown show never ends, Pierre Poilievre sent a letter to BC Premier David Eby yesterday, calling on him to not increase the carbon price on April 1st in line with the federal expectation. This after he has been spending months claiming he’ll “axe the tax” in BC if he forms federal government, never mind that it predates the federal system and has frequently been higher than the federal price, and very few have balked at it. Along the way, Poilievre also claimed that BC was just “administering” the federal levy, which again, is not true.

Eby, for his, part, laughed at Poilievre, pointing out that he doesn’t live in Poilievre’s “campaign office and baloney factory,” that BC has long had the price and that if they did stop the increase, it would mean less money for people in the province (who get the rebate back mostly as tax credits and not cash transfers). But seriously, this has broad-based political support in the province, it was brought in by the then-BC Liberals (who are mostly conservatives, some of whom now sit in the federal Conservative caucus), and nobody has time for Poilievre’s performative nonsense.

More to the point, Poilievre likes to play fast and loose when it comes to jurisdiction—he keeps telling Justin Trudeau to butt out of areas of provincial jurisdiction and leave the premiers to run their own provinces (especially around things like odious anti-trans policies), and how he’s writing premiers and trying to get them to do things his way and stand against valid federal laws? How exactly does he think this is going to play if he ever forms government federally? But then again, he’s counting on the cognitive dissonance that he’s training people to accept for them to not notice his inconsistencies or his complete reversals, or when he swallows himself whole, and that remains a very big problem within the population.

Ukraine Dispatch:

A Russian missile struck a residential area in Odesa and at least twenty people have been killed and more than seventy wounded; President Volodymy Zelenskyy has promised a “fair response” against Russia for it. Ukrainian authorities are also evacuating communities in the northern Sumy region after extended periods of shelling. Ukrainian drones damaged another Russian refinery, this time in the Kaluga region. Russians claimed that they repelled another cross-border incursion by Russian rebels in Ukraine. A UN report has found evidence that Russia systematically tortures Ukrainian POWs.

https://x.com/ukraine_world/status/1768642103968485561

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Roundup: Paying too much attention to one senator’s opinion

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Sometimes the way the media cycle operates in weird ways in this city, and yesterday was no exception. On Wednesday, Senator Percy Downe wrote an op-ed that said that the Liberal Party should be having discussions as to whether they think Justin Trudeau should lead them into the next election, and a few people started frothing about it, but a day later, it got particular traction because Pierre Poilievre was using it in Question Period to attack Trudeau, as though Downe was a big name or had a network that was significant.

And that’s the part that mystifies me. Once upon a time, Downe was a chief of staff to Jean Chrétien, but senators haven’t been part of the Liberal caucus since 2014, when Trudeau famously expelled them as pre-emptive damage control in advance of the Auditor General’s (massively flawed) report on the Senate’s expenses, and claimed it was to give them more independence. Furthermore, Downe jumped ship to the fledgeling Canadian Senators Group right after he helped the Senate Liberals transform their caucus into the Progressives, which alienated him from the remaining Liberals in the Senate (who no longer call themselves such in the current environment). I fail to see how he has any kind of sway or influence at all. And when Trudeau was asked about Downe’s comments on his way into Question Period yesterday, he gave a classic “I wish him well” response and laughed it off.

Meanwhile, the attempt to make Mark Carney happen aren’t stopping either, as the Globe and Mail cornered him a climate summit in town this week to demand to know his leadership ambitions and *gasp!* he didn’t say no! Let’s gossip about this more! Never mind that Carney would likely mean the second coming of Michael Ignatieff for the party, if you ignore that he has no political machinery around him that could even support a bid (which he should avoid at all costs because it damages the Bank of Canada and its current governor, whether he likes to believe it or not). But seriously, this whole thing is ridiculous, and I cannot believe how much air time and digital space has been used up on it.

Ukraine Dispatch:

Russian drones have hit civilian targets in Kharkiv region, but no reports of casualties as of when I’m writing this. Ukrainian forces repelled a new Russian assault on Vuhledar in the east.

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Roundup: A “pause” on carbon prices that hands Poilievre a victory

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Prime minister Justin Trudeau announced yesterday afternoon that the federal government would be implementing a “pause” for three years on the carbon price on home heating oil, predominantly used in Atlantic Canada, because he’s in some serious electoral trouble in the region. He also said that enriched carbon price rebates for rural dwellers would be on the way, as well as more incentives for people to switch to heat pumps. The problem? This undermines the whole carbon price scheme, ensures that it no longer is in compliance with the rules that they established, and it hands a propaganda victory to the Conservatives who are crowing that this “proves” that the price is making life unaffordable, and that they’ll kill it outright.

This also handed ammunition to Danielle Smith and Scott Moe, who will now be demanding that natural gas for heating be exempted, because now the programme is explicitly unfair. They’re not wrong, even if they’re acting entirely in bad faith over it. The NDP have joined in, also insisting that all home heating should be exempt from the price, which further undermines it. And you’d better believe that there are problems around the implementation of the heat pump programme, particularly how it rolls out to low-income households who need it the most.

The most galling thing of all, however, is that this is a victory for Irving Oil (and enabled by the provincial price regulators). They deceptively increased prices on their home heating oil and said this was for the “clean fuel standard,” which is bullshit. That standard is not a price—it’s an emissions standard that comes into place gradually, and any increased costs would be what the refineries need to do to meet those standards. This, however, wasn’t well communicated by the government, and of course the narrative got swallowed by the Conservatives calling it “Carbon Tax 2” and a poorly done report from the Parliamentary Budget Officer who framed this like it was a price, and so Irving was able to act in the way it did. And because it’s Irving, and they are more powerful than any of the provincial governments in Atlantic Canada (which is an enormous problem in a democracy), nobody challenged them on this deceptive price increase, and they successfully jammed the federal government into undermining the carbon price, so now it can be picked away at until it’s well and truly dead. Well done, everyone. You’ve just screwed yourselves, your credibility, and ultimately the planet. Slow clap.

Ukraine Dispatch:

President Volodymyr Zelenskyy says that Wednesday’s drone attack near the nuclear power plant in Khmelnitskyi region was likely targeted. Ukrainian officials say the Black Sea corridor is working, particularly now that they’ve chased away the Russian Black Sea Fleet from occupied Crimea. Ukrainian businesses are preparing for the possibility of another winter of attacks on the power grid.

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Roundup: Cancelling an invitation that was never issued

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Danielle Smith is at it again, claiming that accepted “on behalf of the Government of Alberta” an invitation to appear at the federal environment committee next week, and that she was sent a letter “rejecting my attendance.” The problem? It’s yet another load of horseshit from Smith, because she was never invited to the committee. Two of her ministers were invited, and she thought that she could just show up and put on a dog and pony show, but that’s not how committees work. You can’t just invite yourself to appear. The witnesses are agreed to by all parties beforehand and a motion is passed to send the invitations. Even if she’s premier, Smith can’t just attend in place of the invited ministers—again, that’s not how committees work.

https://twitter.com/emmalgraney/status/1712598055885910272

https://twitter.com/EmmaLGraney/status/1712599648609972476

https://twitter.com/EmmaLGraney/status/1712601220232446093

https://twitter.com/EmmaLGraney/status/1712602741120684351

In any case, the meetings were cancelled because it was really about hearing from Suncor’s CEO, and they declined, so the committee abandoned that line of testimony, but in any case, Smith is lying again, and trying to spin this into some kind of federal-provincial flamewar, and people shouldn’t treat her with any level of credulity.

Oh, but wait—The Canadian Press did just that, and the headline on the wire overnight repeats the bullshit that her appearance was cancelled, which again, is not true because she wasn’t invited, and in the meagre text of the piece, it both-sides the whole thing, because of course it does. This is utterly irresponsible of CP, who should know better.

Ukraine Dispatch:

There has been fierce fighting around Avdiivka, as Russians have been moving troops and equipment there to try and make a push to show that they’re still capable of making gains in the country as they lose territory elsewhere in the counter-offensive.

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Roundup: Credulously repeating the 20-year line

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The big story that everyone was credulously repeating yesterday was the Parliamentary Budget Officer’s report on the Stellantis-LG Energy Solutions electric vehicle battery plant, and what he termed to be the “break-even” for the subsidies provided by the federal government and Ontario. To hear the two governments tell the tale, it would have earned back the subsidies within about five years, provided you factor in all of the indirect benefits from it. The PBO says that break-even would take twenty-years, but that didn’t take into account indirect benefits, just the revenues from the plant’s output. While I don’t trust the government’s five-year figure because it’s based on a lot of optimism and fuzzy math, I also don’t trust the PBO’s figures, because he and his office have a demonstrated history of just pulling methodologies out of their collective asses, and calling it a day, no matter how puzzling the results or the presentation.

Legacy media, however, takes the PBO at face-value, every time. “Oh, but he’s politically neutral so he’s credible!” is usually the cry, even though credible economists will tell you that his numbers don’t make sense much of the time (to say nothing of the fact that many of his reports are well outside of his legislated mandate). And if you look at the reporting, The Canadian Press, The Star, and the National Post all just quote from the report in full credulity, with some quotes from MPs or the minister in reaction. Not one of them appeared to try to get a second opinion. The CBC, however, decided to take things one step further and engage in actual journalistic malpractice by getting a quote from Ian Lee—a business studies professor with no expertise or credibility other than the fact that he answers his phone and provides bullshit answers about every topic under the sun—and the gods damned Canadian Taxpayers Federation, an Astroturf organization that exists solely to provide outraged quotes to the media. That’s what passes for getting a second opinion at the national public broadcaster.

Officers of Parliament are not infallible, and this PBO is especially a problem. In fact, one economist I was chatting with yesterday referred to him as the “Ian Lee of PBOs,” which pretty much says it all. It would be great if legacy media would actually take his utterances with a grain of salt, but they won’t, because nobody dares to challenge Officers of Parliament, and that is a problem that has a corrosive effect on our democratic institutions.

Ukraine Dispatch:

No news on the wires about any Russian strikes or the progress of the counter-offensive, but there was talk of Sweden considering donating some of its Gripen fighters to Ukraine. As well, Ukraine’s Antonov, which primarily has been in the business of building cargo planes, has been shifting their focus to building drones as the war carries on.

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Roundup: Another missed opportunity for the Senate

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A mere day after the House of Commons rose for the summer, the Senate did the same after a marathon day of passing most of the bills on its Order Paper, but leaving several key pieces of legislation to languish over the summer. As I do every summer, I remind readers that it used to be normal for senators to sit for at least an extra week in the summer to clear their Order Paper, and at this particular juncture, it would make even more sense for them to do so because they no longer have to compete with the House of Commons for resources, and most especially interpreters.

The biggest bill in question is the gun control bill, which they sent to committee, where it will sit over the summer. What they should have done was use the time and resources that they have now in order to hold a week’s worth of committee hearings, and do the job of scrutinizing the bill. And sure, you’ll get a certain cohort of senators insisting that it “doesn’t make sense” for them to sit when the Commons isn’t, in case they need to make amendments, to which I will remind them that it doesn’t matter if the Commons has risen. If the Senate wants to propose amendments, they can do the study now, propose them, and send it to the House for when they get back in September. If the Government House Leader on the Commons side wants to bellyache and moan that the Senate wants the House to recall at so many tens of thousands of dollars a day, well, too bad. They don’t have to recall. They can deal with the Senate amendments in September. And I will reiterate—it would make much more sense for the Senate to deal with a bill this big and contentious now, when they’re not competing for resources, rather than letting it drag out for months in the fall like they did with a couple of other big and contentious bills.

This is a better use of the time and resources available, and it shows that the Senate isn’t afraid to work hard when the MPs have gone home. It’s too bad nobody can see this plain and obvious PR win for the Senate that’s staring them in the face.

Ukraine Dispatch:

There were overnight missile and drone attacks, largely targeted to Odesa and Kryvy Rih, hitting homes in the latter. Ukrainian forces are reporting “partial success” in their southeast and east operations, as fighting continues. An explosion has damaged the bridge between occupied Crimea and Kherson province, which is partially occupied. President Volodymyr Zelenskyy says that their intelligence services have information that Russia is planning a “terrorist” attack at the Zaporizhzhia nuclear plant and that it will involve the release of radiation, and that Russia is hiding the bodies of those killed by the breach of the Kakhovka dam. Meanwhile, the EU says that Ukraine has completed two of the seven steps necessary for membership, with progress made on other reforms, but tackling corruption remains a concern for Europe.

https://twitter.com/rubrykaeng/status/1671855902830329857

https://twitter.com/defencehq/status/1671756814814265344

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Roundup: A bad report and a bad debate

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The Parliamentary Budget Officer released another one of his highly dubious reports yesterday, this time on the incoming clean fuel regulations. Why is it dubious? Because it’s entirely one-sided and assumes no costs to climate change, and no adaptation on the part of industry in order to bring costs down to meet their obligations under the regulations, which is the whole gods damned point of these kinds of mechanisms. Oh, and this isn’t fiscal policy, so it’s not clear why he’s even doing this kind of report in the first place.

As you may have noticed during Question Period, the Conservatives jumped all over this report and its findings, and when they were questioned, their media staff were over social media accusing people of calling the PBO a liar. Well, it’s not that he’s a liar—it’s bad data, a bad report, and the numbers taken from it were used dishonestly and entirely in bad faith. And the PBO gets the attention he’s looking for, and around and around we go.

Rachel Notley vs Danielle Smith

For the purposes of researching my column last night, I subjected myself to the leaders’ debate in the Alberta election and it was…not great. Yes, lots of people gushed at how nice it was just to have two leaders going head-to-head and not four or five, but we don’t have a two-party system federally (and it’s a bad sign that Alberta has a de facto one provincially).

My not-too-original observations were that Notley was weirdly on the defensive most of the night, while Smith was pretending to be the upstart challenger rather than the incumbent, attacking Notley on her record at every turn when Notley wasn’t effectively throwing many punches herself. Yes, she did well on the healthcare and education portions, but was not effectively countering Smith’s confident bullshit throughout, and that’s a real problem in a lower voter-information environment, where that confidence plays well regardless of the fact that Smith lied constantly with a straight face. On the very day that Smith was found to have broken the province’s Conflict of Interest Act, Notley had a hard time effectively making this point, while Smith claimed vindication because it showed she didn’t directly call Crown prosecutors, while it full-out warned that Smith’s behaviour was a threat to democracy, and Notley could barely say the words.

Programming Note: I am taking the full long weekend off, so expect the next post to be on Wednesday.

Ukraine Dispatch:

There are reports of more air raids in Ukraine early Friday morning. Russians fired 30 cruise missiles against Ukrainian targets in the early morning hours on Thursday, and Ukraine shot down 29 of them, with the one that got through striking an industrial building in Odessa, killing one and wounding two. There were also further gains made around Bakhmut, and even the Wagner Group’s leader says that they have bene in retreat. Meanwhile, president Volodymyr Zelenskyy set up a reintegration council in order to provide advice for the restoration of Ukrainian rule when they liberate Crimean.

https://twitter.com/defenceu/status/1659213321927794693

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QP: Misquoting a bad report on fuel standards

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The prime minister was in Japan for the G7, and his deputy was off in Brampton. Most of the other leaders were also absent, save the leader of the opposition, and Elizabeth May. Pierre Poilievre led off, and in French, he tried spin the upcoming fuel standard as a second carbon “tax” that will punish Quebeckers. Steven Guilbeault said that Quebeckers believe in climate change while the Conservatives don’t. Poilievre said that the federal government was preventing Quebec from building more green hydro, and demanded they scrap this “tax.” Guilbeault said that this wasn’t true, and that refineries who made record profits need to do their fair share. Poilievre switched to English to insist this was all according to the Parliamentary Budget Officer (it’s not), to which Guilbeault quoted from a separate section of the PBO report where he said that he was not looking at the environmental costs, which were real. Poilievre insisted that those costs would not be reduced with a tax, and repeated his overwrought math. Guilbeault said that emissions went down beyond the pandemic lockdowns. Poilievre then switched to his bullshit concern trolling on safe supply and demanded it be ended in favour of treatment. Carolyn Bennett said that the deaths are from poisoned supply, and the BC coroner has said there is no evidence that safe supply had led to any deaths.

Alain Therrien led for the Bloc, and insisted that the government was hiding Chinese interference and demanded a public inquiry. Dominic LeBlanc said said that it was hard to consider a public CSIS report to be “hiding something,” and that they have taken measures to counter it. Therrien demanded an inquiry immediately, to which LeBlanc said that Johnston would make his recommendations around an inquiry next week.

Gord Johns rose for the NDP, and he railed about McKinsey and Company and tried to tie it to the opioid epidemic. Helena Jaczek said there are open fair and transparent procurement processes, and there is an integrity regime. Jenny Kwan railed about corporate landlords and demanded the federal government do something that as clearly in provincial jurisdiction, to which Ahmed Hussen recited his usual talking points on rental assistance.

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