Tag Archives: Pensions

Roundup: A relatively restrained update

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And so, the government tabled their Fall Economic Statement, and lo, it was relatively restrained. There was very little spending, most of it very targeted, nothing about booking particular promised but not yet delivered spending programmes (such as the disability benefit), and most of that spending was geared toward either housing, or some targeted tax breaks. Critics will point out that what is offered for housing is very little given the scale of the crisis, but we also have to remember that the federal government needs to be restrained in its spending so as not to juice growth too much and keep inflation high—several provinces are already doing that, which makes the Bank of Canada’s job much harder, and Freeland seems to be making the effort to do her part not to make things worse.

With this in mind, here are some of the stories that emerged:

  • A overall look, including the deficit situation.
  • Further promising changes to competition law.
  • Using part of the growth fund to guarantee carbon prices for major emitters (as insurance for investments against future government actions).
  • There’s a new voluntary “Mortgage Charter,” and measures to help CHMC revive projects that may have been shelved because of interest rates.
  • Debt-servicing charges are increasing mostly because of how much they needed to take on during the pandemic.
  • Enriching the payroll tax credit for media organizations.
  • The Canadian Press has a list of highlights and five key affordability measures in the update.

Meanwhile, here is some added reaction:

Ukraine Dispatch:

Russians hit a hospital in Selydove in the east, as well as a coal mine, as well as killing one while shelling Kharkiv. More than 10,000 civilians have been killed since the start of Russia’s invasion. The Russians claim to have scuppered more Ukrainian attempts to get footholds on the eastern banks of the Dnipro river. Two Ukrainian lawmakers are under investigation for trying to bribe reconstruction officials, one of them with Bitcoin.

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QP: Hyperventilating about Stellantis

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While the prime minister was present, his deputy was in the lock-up, meeting with reporters about the Fall Economic Statement in advance of its release at 4 PM. All of the other leaders were present, ready to demand to know what was in the update before its release. Pierre Poilievre led off in French, returns to the Scotiabank report he raised yesterday, and blamed the federal government for driving inflation, before demanding a balanced budget in the fiscal update. Justin Trudeau responded that the solution to this difficult period is not austerity, but strategic investments in helping families. Poilievre switched to English to repeat his same question, and lo, got very much the same response from Trudeau. Poilievre blamed the federal government for fast-rising rents, and demanded that the government cap the carbon price until the next election. Trudeau said the solution to rising rents is to build more units, which the government is doing, before mocking Poilievre’s assertion that the government is doing “damage” to Canada through child benefits, child care, or dental care. Poilievre then pivoted to the Stellantis plant and the overblown concern that it would use temporary foreign workers.  Trudeau noted that Poilievre would use any misinformation to denounce plans he doesn’t like, but he didn’t actually debunk the assertion. Poilievre said that no, it was Trudeau who spreading misinformation, and repeated his same overblown and false assertions. Trudeau said it was flat-out false and fear-mongering, but again, didn’t actually explain what the truth was, because of course not.

Yves-François Blanchet lead for the Bloc, and he demanded that the government include an increase in old-age security and an extension to CERB repayments in the economic update. Trudeau noted that they have been increasing payments for seniors, and that they supported those small businesses in COVID, but Blanchet would have to wait a couple of hours. Blanchet wondered if he should send his questions in advance so that he could get a real answer, before he repeated his same demand. Trudeau said he would be happy to send Blanchet a schedule that shows the update is released at 4 PM.

Jagmeet Singh rose for the NDP, and he too raised the spectre of temporary foreign workers at the Stellantis plant, to which Trudeau said that while nobody was surprised that Poilievre would fall prey to disinformation but it was disappointing that Singh did too—but again, didn’t explain the truth. Singh switched to French to demand a competition changes to target grocery giants. Trudeau patted himself on the back for their plan to summon grocery CEOs, and said that there would be competition measures in the economic update.

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Roundup: Alberta is run by children, example eleventy-four

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If you needed any more proof that Alberta is run by a group of petulant children, look no further than finance minister Nate Horner’s appearance on Power & Politics yesterday. While in the midst of grousing that during the (virtual) meeting with Chrystia Freeland earlier in the day on the subject of Alberta’s threats to pull out of the CPP (threats which are fairly transparently a pressure tactic to try and get out of other environmental obligations), and that Freeland was not entertaining any other carbon price exemptions, Horner said that he was going to launch a programme to subsidise anyone who wants to convert to heating oil in order to get the same break on carbon prices.

Heating oil generally costs about three-to-four times the price of natural gas for the same output. That’s the whole reason the “pause” was put into place as a stopgap to get more people switched over to heat pumps, along with a bunch of incentives to do so. If Horner actually thinks that people will pay more for heat in order to avoid paying the carbon price, and coming out at a net loss, for the simple thrill of “owning the libs,” well, that’s pretty much him telling on himself. And it’s so stupid because as the government has belatedly explained, there are actually more people who use heating oil outside of the Atlantic provinces than inside (mostly in northern communities), and they too get the “pause” in order to facilitate the switch over to heat pumps. The problem there, however, is that most of those provinces haven’t come to an agreement with the federal government in order to give the heat pumps for free to low-income households. So that may yet come, but right now, they’re still in full-on tantrum territory.

Ukraine Dispatch:

Russians launched a new wave of overnight attacks across ten of Ukraine’s regions, and the Ukrainian air defences were able to intercept 24 of 38 drones plus a cruise missile. Here is a snapshot of the counter-offensive on various fronts, while Ukrainian troops battle exhaustion as winter approaches.

https://twitter.com/defensiemin/status/1720176662942253228

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Roundup: A focus on heat pumps

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There has been a lot of attention paid to the subject of heat pumps and just what they are over the past few days in light of the government’s “pause” on carbon prices on heating oil in a bid to give people more time to make the conversion, particularly in places like Atlantic Canada. So what are they and why is the government subsidising the transition, going so far as to make them free for low-income households (in provinces where they have an agreement with the provincial government)? The Canadian Press has an explainer on what they are for starters.

There is an issue that the detractors keep raising which is that in particularly cold weather they may be insufficient and a secondary heat source would be necessary. In many places, they use electric heat as that secondary source, particularly given the simultaneous push toward clean electricity generation in this country (some eighty percent already comes from non-emitting sources). We should take heed that Nordic countries, which also have very cold winters, have been making the move to heat pumps for a while now, and the newer models can deal with far colder weather than earlier models, but that doesn’t mean that the transition doesn’t have complications.

https://twitter.com/robtpublic/status/1719579403427213557

You can bet Scott Moe and others will be concern trolling on this, and some of the criticisms do have merit, but it will become a real task to sort out just what is legitimate criticism, and what is being stated in bad faith (because look where it’s coming from). By the same token, the government shouldn’t oversimplify things here, or the scope of the challenge that this conversion may present itself to people who will need more assistance in navigating the other government retrofit programmes that can help them with that transition.

Ukraine Dispatch:

A Russian drone attack hit an oil refinery in the central Kremenchuk region, while Russia also dropped explosives on the Black Sea shipping channels that have been used to transport grain. Ukraine’s commander-in-chief says they are entering into a static and attritional phase of the war, and they need new capabilities including more air power if they want to break out of it. Since the start of the war, more than 260 civilians have died from stepping on landmines, which is more of the lasting damage that invasion like Russia’s leaves behind.

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QP: The Empty Chair gambit makes a return

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Even though the prime minister was in town and in his office, he was not in QP today, and neither was his deputy, and other leaders were absent as well. Pierre Poilievre led off in French, and he complained that Quebeckers would be paying for the fictional “second carbon tax,” and claimed it was to fund the scandal at the clean energy agency. Diane Lebouthillier stood up to ask what plan the Conservatives had for the environment, and then answered that it was nothing. Poilievre tried to be cute about Trudeau not being present, claimed there was “carbon tax chaos” and demanded he cut the carbon price. Fergus gently warned Poilievre not to do indirectly what he can’t do directly, after which Randy Boissonnault asked if the Conservatives would pressure western premiers to sign up to the heat pump programme. Poilievre got on the empty chair tactic and demanded the prime minister answer, and this time Jonathan Wilkinson said that Poilievre was too busy patting himself on his own back to do his homework, and explained about heating oil being a driver of energy poverty which is why they were phasing it out. Poilievre carried on with the empty chair gambit, and this time Boissonnault launched into an attack on the Conservatives not standing up to Danielle Smith for her attack on CPP. Poilievre again railed at the absent prime minister not answering, and demanded support for a motion about removing the carbon price on all heating. Wilkinson pointed out that the government was doing public policy rather than slogans.

Alain Therrien led for the Bloc, and demanded that the government consult with Quebec before announcing their immigration targets later in the day. Mark Miller said that they have been consulting, and that the spoke with the minister, and even if they don’t agree, they were still consulted. Therrien railed that they had not consulted on the “federal targets,” and Miller launched into an explanation about the immigration funding that they provide to the province.

Jagmeet Singh rose for the NDP, and railed about the carbon price “pause,” and demanded the government tax the profits of oil companies to provide relief to all Canadians. Wilkinson suggested that Singh do his homework, disputed that there was an onerous process for the heat pump programme while they fight climate change. Singh repeated the question in French but with an added mention of “the era of Duplessis” for local Quebec flavour, and Wilkinson repeated his answer.

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Roundup: A primer on inflation calculation

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Bank of Canada governor Tiff Macklem testified at the Commons finance committee earlier in the week, and a whole lot of people, including a certain “Food Professor” charlatan and numerous Conservative MPs, demonstrated that they don’t understand math or inflation as they all misconstrued the numbers that Macklem gave. And they’re the same number he has given before—that the carbon price has had a 0.15% effect on inflation, and if you removed it, going from $65/tonne to 0, it would have a temporary effect of reducing inflation by 0.6%.

A whole bunch of people–said charlatan, those MPs—insisted that because 0.6% is 16 percent of the 3.8% of headline inflation, that it means that the carbon price is responsible for 16% of inflation, which is wrong and not how inflation is calculated. Removing it wouldn’t actually mean inflation would go from 3.8% to 3.2% because the carbon price is not driving it. Energy and food prices are doing a lot of the driving there (and food prices are being hugely affected by climate change), and even if it did move to 3.2%, the Bank isn’t going to start lowering interest rates until it reaches the two percent target. Essentially, you’d be killing the carbon price and undoing the work it’s doing to lower emissions on the basis of a bad lie that it has made life unaffordable.

Meanwhile, here’s economist Stephen Gordon breaking down how inflation is calculated, with the inevitable conclusion that the carbon price is just noise—it’s not driving inflation, and it’s better to focus on the things that are.

A threat to democracy

A bunch of people got the vapours yesterday when Mark Miller called Pierre Poilievre a threat to democracy. Apparently these same people have convenient amnesia, or wishful thinking that he’s only kidding in what he’s doing and saying, because nobody learned a gods damned lesson from the Trump years.

Ukraine Dispatch:

While rallying Ukrainian troops, president Volodymyr Zelenskyy counselled patience and not to expect instant success (the latter comment directed primarily toward Western allies). A UN report says that 40 percent of Ukrainians need humanitarian support as a result of the conditions brought about by Russia’s invasion.

https://twitter.com/ukraine_world/status/1719348496640200777

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Roundup: A “dull as hell” House

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Jean Chrétien gave an interview yesterday to mark the 30th anniversary of his election win to form government in 1993, and there’s one part in it that sticks out for me in particular, which was about his time in politics, pre-dating his becoming prime minister, which has to do with the use of television in the Chamber:

“When I became a member of Parliament, there was no TV… In the House of Commons, we had no television. In those days in the House of Commons, we didn’t have the right to read anything. We had to get up and speak. It was fun. Today, they all come with speeches prepared by kids in the office and it is dull as hell, rather than have a real debate like we had in those days.”

This is spot on. It wasn’t just the arrival of the cameras that changed things, it was the relaxation of the rules around prepared speeches. It used to be that you weren’t allowed them, with very limited exceptions—the address in reply to the Speech from the Throne, the budget, and if you needed some particular help with specific facts or figures or translation (because simultaneous interpretation was a later arrival into Parliament). When they relaxed the rule around prepared speeches, it meant MPs started reading speeches into the record; time limits started to mean that they didn’t just speak up to that twenty-minute mark, but they were expected to fill the time entirely, which again, makes for very bad prepared speeches. There’s no actual debate either—during “debate” on a bill, the period for “questions and comments” is usually reserved for recitations of established talking points, with no actual exchange. One question, one response is not actually debate. Without relying on prepared speeches, and actually being allowed to debate, it would have made for actual tension or frisson between them, and to force them to know their material.

The other thing with the arrival of television is how it changed the nature of Question Period. It became very much about trying to a) get on TV, and b) providing clips for the evening news, which is one reason why parties started to do things like asking the same question in English and in French, so that they could get clips for both news services. With the advent of social media, however, the incentives changed again, and it was about creating content for those social feeds, which could include bad behaviour to drive up engagement. This is where we’re at now. It’s not exciting, and like Chrétien says, it’s “dull has hell” because you’re just watching badly scripted performances meant entirely for the consumption of clips. Politics should not be about this.

Ukraine Dispatch:

A civilian was killed in the Kherson region early Wednesday after Russians bombed the area. Russians are ignoring their losses and pressing on at Avdiivka, Debris from downed Russian drones downed power lines near a nuclear plan in the western part of the country, knocking out power for hundreds of people. President Volodymyr Zelenskyy says that Ukraine will strike back if Russia attacks their power grid again this weekend. Here is a look at some Ukrainian sappers who have returned to the job of de-mining after they lost limbs doing the work.

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QP: The worst kind of reading of scripts

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The prime minister and all other leaders were present today, and if anything, it promised to be a sour note all around. Pierre Poilievre led off in French, and he cited a “devastating” report about food bank use, blaming carbon prices. Justin Trudeau took the opportunity to mark the passing for Senator Ian Shugart, the former Clerk of the Privy Council. Poilievre said that Shuguart was his deputy minister and was a great public servant. He then returned to French to quote from the same report on food bank use. Trudeau cited the assistance they have delivered to Canadians, such as the Canada Child Benefit, child care and dental care, while the Conservatives would only those supports. Poilievre switched to English to reiterate his first question about the carbon price. Trudeau praised his government’s record in reducing poverty and reiterated the threat that the Conservatives would only cut supports. Poilievre cited a Nova Scotia quoted in the report and again blamed the carbon price, and Trudeau noted that Poilievre was part of a government that raised the age of retirement, and that it was about time he finally defended the CPP. Poilievre again quoted from the report on housing pressures and demanded more homes. Trudeau said that Poilievre has put forward no plan on housing and he lacks credibility on the file, while the housing minster was currently in BC signing new agreements. 

Yves-François Blanchet led off for the Bloc, and wanted the prime minster to acknowledge that Quebec would be financially viable on their own. Trudeau dismissed this as trying to reopen old fights that have long been settled, and listed off investments the federal government has made in the province. Blanchet again tried to get Trudeau to “admit” the province’s fiscal viability, and Trudeau again talked around the issue about growing the economy in the province together. 

Jagmeet Singh rose for the NDP, and blamed food prices on greedy CEOs, and Trudeau listed more programmes they have rolled out to help Canadians. Singh repeated the question in French, to which Trudeau listed off those programmes en français. 

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Roundup: Stop ignoring the premiers’ role in pharmacare

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Over the weekend, the Star ran a brief interview with Dr. Eric Hoskins, former Ontario health minister and the person that Justin Trudeau initially tasked with writing a report on getting to pharmacare, about the current situation between the government and the NDP over getting to just that. Hoskins says he’s trying to have high-level engagements with both parties, because this could be the last opportunity to get this to work in a long time, but some of that means getting the NDP to back down on their arbitrary timelines (which is more than reasonable considering how much their stupid timeline demands has meant a poor rollout of dental care, because proper implementation can take time).

This having been said, I was struck by the fact that the story completely left out the role of the premiers in this, and I cannot stress this enough, because healthcare delivery is a provincial responsibility, you cannot in any way, shape or form, get to national, universal pharacare without the provinces on board. And no, this isn’t something that they can just opt-in to over time, like the NDP seem to think—they need to be in on it from the ground floor, so that they can shape the direction of the Canada Drug Agency, and negotiate a national formulary rather than just the federal government pulling it out of their asses and, again, expecting the provinces to sign onto it (again, like the NDP seem to think). Hoskin’s whole report premised on the provinces being active participants in the process, because this affects them fundamentally. And it’s the provinces who have been the biggest hold-up for moving forward with this—only PEI has moved ahead, and thanks to the gradual build-up they’ve implemented with the federal government, they have a low-cost co-pay system running in the province, which is a wild step-up from the virtually nothing they at the provincial government level before.

The way that media keep talking about pharmacare is that this is something the federal government will do on high, and will somehow pay for entirely themselves, which again, is not how this would work. The PBO’s report cites a figure that the federal and provincial governments together would be paying (using whatever a methodology that may or may not survive reality), but doesn’t have any breakdown about what the cost-share would be, because of course that would need to be negotiated. It would be great if the national conversation, particularly that is happening in media, could actually include the crucial role of the provinces, but we all know that legacy media is allergic to the issues around jurisdiction, and it means a much worse discourse as a result.

Ukraine Dispatch:

Russian forces intensified their push toward Avdiivka in the east, and Kherson in the south, while six people were killed in a Russian missile strike on a postal distribution centre in Kharkiv. Russian forces claim that they foiled several attempts by Ukrainian forces to cross the Dnipro river near Kherson over the past day. Meanwhile, here is a look at Ukrainians preparing for another winter of attacks on the electricity grid, as they prepare firewood and candles.

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Roundup: Fantasy readings of court decisions

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In the wake of last week’s Supreme Court of Canada decision in the Impact Assessment Act, there has been a lot of fantasy being projected on what the decision said (hint: it’s not what most everyone says, no matter which sentence they’ve cherry-picked). There’s a lot of blame on the Act for projects not moving forward, as even though many of them had approvals in hand already and the economics for those projects didn’t make sense with current oil prices (as many were conceived of when there was a belief that we were reaching peak oil and that prices would start to skyrocket as a result—oops), or as with certain LNG projects that never got off the ground, they couldn’t get buyers to sign contracts for what they hoped to produce. That’s why the handwringing over Qatar supplying Europe with LNG is particularly funny, because we just don’t have the LNG capacity on the east coast—there is no ready supply of natural gas to liquefy, so without another massive pipeline project, it would mean importing product to liquefy and re-sell to the Europeans, which is not exactly a cost-savings for them when they can get it much cheaper from Qatar.

Meanwhile, here’s Andrew Leach calling out these kinds of fantasies, particularly when they’re coming from the Alberta government.

As a bonus, Leach also calls out the excuses for inaction on the energy transition:

Ukraine Dispatch:

No word on any fresh attacks against Ukrainian cities. Meanwhile, artefacts that were stolen from occupied territories were confiscated when they were attempted to be smuggled into the US, and have now been returned to Ukraine.

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