Tag Archives: Procurement

Roundup: SNC-Lavalin gets a plea bargain

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In an unexpected development yesterday, we learned that SNC-Lavalin took a plea deal from the courts – that one of their divisions would plead guilty for fraud over $5000 in connection to their dubious activities in Libya, pay a fairly hefty $280 million fine over five years, and all of the rest of the charges they were facing were withdrawn, and they wouldn’t face debarment from future contract work for governments. In other words, they largely got what they wanted with the Deferred Prosecution Agreement/Remediation Agreement that they had been agitating and lobbying for, and which spun off the whole Double-Hyphen Affair in the first place.

Could of things – first of all, DPAs are not “get out of jail free” cards like they have often been described as. Had SNC-Lavalin been granted the DPA, they would have had to agreed that they committed wrongdoing, paid a fine which would have included remediation for the wronged parties, and would have a structured monitoring regime put into place to ensure better governance going forward, and it wouldn’t have protected any of their executives from future prosecution. One particular law professor, Jennifer Quaid, noted that even though they weren’t a good candidate for a DPA, it would have actually been more transparent than the plea bargain that they wound up with, there is no guarantee of remediation to wronged parties, and it’s unlikely there will be the same structure imposed, so maybe, just maybe, the DPA was the better plan in the first place.

Jody Wilson-Raybould tweeted out in response that the system worked, while Justin Trudeau said in an interview that he may have acted differently had he known this would have been the outcome, but he was trying to do the best he could at the time. And there are certain people screaming about prosecutorial independence, but I keep going back to the conversation that Wilson-Raybould taped with Michael Wernick, and so much of it was them talking past one another – him looking for an explanation and her not providing one until the end of the conversation when she said that she gave a report to PMO months prior, to which Wernick said “That’s news to me.” This key exchange was completely glossed over in most of the reporting because they fell instead for the juicy quotes that Wilson-Raybould had set up in conducting the conversation the way she did. So much of the communications and relationship breakdown is on full display in that call. (That being said, I remain deeply troubled with how much SNC-Lavalin was stage-managing the legislative process around the DPAs, even if lawyers in the field had been demanding that legislation for a decade because we were behind our comparable Western allies in making these kinds of arrangements available).

Meanwhile, certain journalists want to insist that this doesn’t mean that the story is over because parliamentary committees. Erm, except they would need the support of the Bloc to push forward with them, and they have explicitly stated that they have no interest in doing so. (Also, I am a bit concerned that Elizabeth May was conspiracy theorizing over Twitter regarding who this plea deal is “protecting.”)

On a related note, Wilson-Raybould was chosen by The Canadian Press as their Newsmaker of the Year, and make news she certainly did (and still does).

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Roundup: Mandate letters and the minister for everything

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Yesterday was the day that Justin Trudeau released the mandate letters for his ministers, giving us a glimpse as to what their marching orders will be (which is still a fairly novel transparency and accountability measure in this country, it needs to be said). The National Post counted up some 288 projects listed in those mandates, some of them holdovers from the previous parliament (which isn’t surprising considering that  many of them were fairly ambitious and transformational and were not achievable within four years). But there were also a number of things missing from several of those letters that should have been dealt with – particularly on the justice file.

As with the previous parliament, each of the letters has an identical preamble, advising the ministers to “govern in a positive, open and collaborative way,” because it’s a hung parliament and all of that. In terms of specific points in the letters, there are issues like discussions with province over pharmacare, shortening wait times for airport screenings, tax cuts for green tech companies, reforming the medical assistance in dying laws, advancing international efforts to ban “killer robots,” procuring new fighter jets and modernizing NORAD. One of the more alarming mentions was in Bill Morneau’s letter, advising him to review and possibly modify the financial stress test applied to mortgages, which is a Very Bad Thing, and means that the real estate lobby is winning its air war over the good common sense of the Governor of the Bank of Canada and the Office of the Superintendent of Financial Institutions. (Seriously – there is no excuse for encouraging bad debt).

And then there is Chrystia Freeland’s letter, which is expansive and makes her in essence a “minister of everything” who is assigned to basically work with a number of other ministers to advance their priorities, whether it’s carbon pricing, getting resources to market, breaking down internal trade barriers, facilitating pharmacare talks, working on pan-Canadian childcare, gun control, regional economic development agencies, and advancing reconciliation. This leaves questions as to what exactly Trudeau will be doing while Freeland does all the work – leaving her to either take the fall while Trudeau gets to take the credit. This having been said, it’s just as likely that she wanted a full plate of projects rather than simply spending her weeks heading to provincial capitals to meet with premiers once the New NAFTA is ratified, but she certainly has her work cut out for her, ensuring that enough of these promises are fulfilled before the inevitable early election call that comes in a hung parliament.

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Roundup: A promise weaselled out on

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A very important bill has been introduced in the Senate, that has been attempted on more than a few occasions now, and it’s a sign of a promise that the Liberals weaselled out on in the past. The bill? To restore Parliament’s ability to control government borrowing by way of votes – you know, like Parliament is supposed to do as part of their job of holding government to account by means of controlling the public purse. You see, back in the Harper era, they hid the change in one of their massive omnibus budget bills that stripped Parliament of the ability to vote on new borrowing, and instead turned it over to Cabinet. Senators caught it too late, and the bill passed, and whoops, no more ability for Parliament to hold government to account for it any longer. Senator Wilfred Moore introduced a bill to revert this practice on a couple of occasions, and Senator Joseph Day carried on with it in the previous Parliament, and has just reintroduced it in this one.

https://twitter.com/SenDayNB/status/1204502292076154880

The Liberals were all in favour of this back when they were in opposition, and made a big show about promising to restore this to Parliament – and then they weaselled out on it. What they did instead was introduced a debt ceiling of $1.168 trillion, after which Parliament would need to vote to extend it, and said that Cabinet only needed to report to Parliament every three years about the money it has borrowed, starting in 2020. Let me reiterate – they weaselled out of this promise, and at least there are senators who are alive to why this is important for Parliament.

These are principles that go back to Runnymede, and the Magna Carta in 1215, and made more explicit in 1688 when the king wasn’t able to borrow money without Parliament’s consent. The Conservatives broke this important principle of Parliament for their convenience. That the Liberals have refused to act on their promise to restore it is a black mark against them.

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Roundup: It’s Cabinet Shuffle Day!

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We are now well into Cabinet leak territory, and right now the news is that Chrystia Freeland will indeed be moving – but we don’t know where. We do know that François-Philippe Champagne will replace her at Foreign Affairs, that Pablo Rodriguez will be the new Government House Leader (after we already heard that Steven Guilbeault will take over Canadian Heritage), plus Seamus O’Regan moving to Natural Resources, that Jonathan Wilkinson is taking over Environment and Catherine McKenna will take over Infrastructure. We’re also hearing from Quebec media that Jean-Yves Duclos will take over Treasury Board, and that Mélanie Joly is due for a promotion – but no hint as to what it means otherwise. Still no word on Public Safety, which is a huge portfolio that will need a very skilled hand to deal with in the absence of Ralph Goodale.

https://twitter.com/StephanieCarvin/status/1196922355181924352

https://twitter.com/StephanieCarvin/status/1196922357073489920

https://twitter.com/JenniferRobson8/status/1196959319994056705

Meanwhile, some of the other roles that Trudeau needs to decide who are not in Cabinet will include the whip, parliamentary secretaries, and considerations for committee chairs (though he won’t have the final say on those as they are ostensibly elected by the committees themselves, and it’s the whips who largely determine who will sit on which committee). Committees are especially important in a hung parliament, so this could mean big roles for those who didn’t make it into Cabinet.

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Roundup: Scheer’s risible demands

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Even before the day’s meetings got started, Justin Trudeau offered up a pre-emptive strike against Andrew Scheer’s demands by announcing that Parliament would be summoned on December 5th – immediately after his return from the NATO summit – where they would hold both the Speaker election and the Speech from the Throne on the same day (rather unusually, as they tend to be on subsequent days). When Scheer did meet with Trudeau, he came armed with seven demands, and immediately following that, Trudeau met with Saskatchewan premier Scott Moe, who also moaned that his own demands weren’t being capitulated to.

https://twitter.com/rachaiello/status/1194313181990129665

As for Scheer’s demands, a good many of them are simple non-starters, and others are simply laughable, but let’s walk through them, shall we?

  1. Keep Canada united and strong by launching a task force to study the establishment of a national energy corridor, which could bring Ontario and Quebec hydroelectricity to new markets, open up opportunities for Western Canadian oil and gas, and connect rural communities in Atlantic Canada and the North.
  2. Help Canadians get ahead by offering broad-based tax relief, providing a date for balancing the budget, and proceeding with fair tax-free maternity benefits.
  3. Restore ethics and accountability to government by introducing stronger penalties in the Conflict of Interest Act.
  4. Get the energy sector back to work by tabling a detailed plan, with concrete deadlines, to build the Trans Mountain expansion and repealing Bills C-48 and C-69.
  5. Take real action on the environment by drawing on policies from our Real Plan to Protect the Environment, such as the Green Patent Credit, the Canadian Clean brand, the Green Home Renovation Tax Credit, and ending raw sewage dumps.
  6. Immediately fund regional transit expansion in the GTA, starting with the Ontario Line and Yonge Extension.
  7. Reduce the paperwork burden on Quebecers by adopting a single tax return.

To start with, I’m puzzled as to how Scheer believes that his “national energy corridor” scheme is a national unity project. I mean, I get that he keeps insisting it’s “a win-win,” but if you stop and think about it for thirty seconds, they’re demanding that decades be spent on land negotiations and expropriations involving First Nations and provinces that may not be keen on them, for another decade to be spent building a pipeline that, by the time it’s completed, will be in the middle of massive global decarbonization. That’s some forward thinking. The broad-based tax relief that was in the Liberal platform was better targeted to low-income Canadians than in the Conservatives’, as was their proposal for tax-free maternity benefits; the date for a balanced budget is also somewhat mired in mid-nineties thinking, while the government has chosen a different fiscal anchor that allows them to take advantage of the low-interest rate environment to make investments in Canadians. The demand for a detailed plan with concrete deadlines for the TMX construction is farcical because any delays would be contingent upon the Federal Court’s hearing the concerns of those Indigenous groups who are challenging the most recent consultations, and that’s not something the government has any control over, but never mind that there is pipe going in the ground right now. The repeal of C-69 and C-48 are non-starters, and would do absolutely nothing to benefit the energy sector because the problem is the low world price of oil. Demanding that the government adopt the Conservative non-plan for the environment? Hilarious. Immediately funding the GTA transit expansions? How is it responsible to sign a blank cheque when there is no concrete plan on the table? Seriously, you claim to be the fiscally responsible party. And having Quebec adopt a single tax return? Yeah, if Quebec wants that, they can adopt the federal one. They made the choice for the current system. Is rudimentary critical thinking dead in politics?

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Roundup: Sowing discord and mistrust

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Justin Trudeau began his second day in Quebec with a stop in Trois-Rivières, where the message remained one of electing a progressive government and not opposition, and avoiding speculation on any post-electoral government formations. After several more stops during the day, he finished the day in Montreal with a big rally.

Andrew Scheer was in Brampton to pledge that his first piece of legislation would be to repeal the federal carbon price – never mind that it would simply take a Governor-in-Council order to remove the affected provinces from the law’s Schedule 1. Scheer also insisted that the “modern convention” in Canada is that the party that wins the most seats gets to form government – which is utter bunk, and someone who was Speaker of the House, and who claims great respect for Westminster parliamentary traditions should know. But this is about sowing doubt and poisoning the well so that he can claim that any other configuration is somehow illegitimate, which it’s not. But it’s not like truth is his big strong suit.

Jagmeet Singh started his day in Welland, Ontario, where he stated that “coalition isn’t a dirty word.” Perhaps he should ask Nick Clegg in the UK about how well that worked out for him. Singh also insisted that he could “encourage” provinces with his many healthcare promises (such as making specific hospital pledges), which is pretty much hand-waving.

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Roundup: Confidence and throwing money at problems

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While Justin Trudeau took the day off of campaigning, Andrew Scheer attended the grand opening of a Buddhist temple in Bethany, Ontario, before doing meet-and-greets in Peterborough and Newcastle. There, Scheer said that he was confident in the party’s vetting process, despite having to dump a candidate earlier in the week (given that her homophobic posts go well before the election period).

Jagmeet Singh visited Grassy Narrows, where the local chief is running for the NDP, and pledged more money for drinking water in First Nations communities (although it’s rarely an issue of not enough money, but other capacity challenges, which the current government is addressing – partially why it is taking as long as it is to get movement on some of these challenges, on top of the fact that they took responsibility for a number of drinking water outlets that used to be private and are addressing them as well).

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Roundup: Foreign aid announcement a house of lies

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On what was supposed to have been the date of the Munk debate, Andrew Scheer was in Toronto to have a big press conference about his foreign policy plans, which were conveniently leaked to the Globe and Mail Monday night so that they could dominate the news cycle first thing in the morning – much to the ire of everyone on the campaign bus who pay for the privilege of being there. Scheer’s big headline was his plan to slash foreign aid spending – a blatant pander to the nativist sentiment that falsely has people claiming we should take care of our own before sending “so much money” abroad. After a lengthy diatribe that distorted, misconstrued and outright lied about the Liberal record on foreign policy, Scheer then laid out his four priorities – the slashing of legal aid (allegedly to focus on children in war-torn and poor countries while using more of the money to spend on their other domestic programmes); strengthening our alliances with our “traditional allies” (I’m guessing that means the UK, Australia, and New Zealand) and sending more military aid to Ukraine; targeting regimes like Iran with Magnitsky legislation; and “depoliticizing” military procurement. (Oh, and securing a UN Security Council seat isn’t going to be a priority for him either). But as it turns out, Scheer’s figures about what we are spending on foreign aid right now was one giant lie (and more context in this thread), and one notable example where Scheer couldn’t get a handle on his facts was that money that was sent to Italy was for relief after an earthquake there. His whole part about “depoliticizing” military procurement was just a wholly fictional accounting of the Mark Norman affair and the procurement at the heart of that situation (which was initially a highly political sole-source contract that was designed to save Steven Blaney’s seat). And to top it off, it was clear from this press conference that Scheer has an adolescent’s understanding of foreign aid – and foreign policy in general. But it should be alarming to everyone that someone who is running on “trust” went to the microphones and lied his way through an entire press conference on a policy platform that is in itself a house of lies. This election is getting worse with every passing day.

In Richmond Hill, Justin Trudeau met with some suburban mayors in the GTA to talk about gun control, but just reiterated their existing platform promises around banning assault rifles and finding a way to let cities further restrict handguns (even though these very same mayors all wanted a national handgun ban – so, own-goal there, Liberals).

Jagmeet Singh, meanwhile, remained in Vancouver to talk childcare some more, and this time pledged to let new parents retain full benefits if they take less time for parental leave than is usually allotted.

It’s the TVA debate tonight, so expect a quiet day on the campaign trail in advace of that.

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Roundup: Equalization and Spending

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Over the long weekend, one of the best things that I read was an exploration by economist Trevor Tombe about Alberta’s misplaced anger over the so-called “unfairness” of equalization, as the real issue is the fact that they have disproportionately higher salaries (and fiscal capacity) than everyone else in the country. Meanwhile, Tombe also has a good thread on the history of federal transfers to and from Alberta, and it’s interesting to get some of that perspective.

Meanwhile in Alberta, the McKinnon Report on public expenses was released yesterday, detailing that there needs to be some $600 million in cuts if the budget is to be balanced between 2022-23, and while it notes that it the province needs more stable revenues (*cough*sales tax*cough*), though it didn’t get into their revenue problems, as it wasn’t their mandate. That means that there are going to need to be cuts to healthcare and education. Here are three surprising tidbits from the report (but also ones that I think need to be drilled down into – for example high public servant salaries are not because of cost of living, but competition with the private sector, and high college drop-out rates are likely to do with jobs in the oil patch). More in this thread from Lindsay Tedds.

In reaction, Jason Markusoff points to the fact that the report’s conclusions were predetermined, given that it was created specifically to find cuts as raising revenues was not an option they were allowed to present, and it bears reminding once again that Alberta is in deficit because it chooses to be so – they could raise their revenues and not rely solely on oil royalties anytime they wanted, but they don’t want to (so all of those pundits taking this report as proof that the province has a spending problem are being a bit too cute about it). On a broader perspective, Max Fawcett argues that if Alberta wants to send a message that if they really want to have their issues taken seriously, they need to stop voting Conservative – and then enumerates all of the ways in which the federal Conservatives have taken the province’s votes for granted as they did things that disadvantaged them.

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Roundup: Misleading his recruits

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After some confusion in the Conservative ranks, Andrew Scheer’s Quebec lieutenant, Alain Rayes, is apologising for misleading candidates in the province when he insisted to them that the party considered abortion a settled matter and that they wouldn’t allow any attempt to change the laws. Not so – Scheer’s actual pledge is that the government – meaning Cabinet – would not bring forward any bills, but the backbenches are free to do so, which is why anti-abortion groups have been busy trying to get their supporters nominated as candidates. And now the party and Rayes are saying that he just misheard Scheer’s pledge, which could put some of those Quebec candidates that Rayes recruited in a sticky position because some of them are saying that they decided to run for the Conservatives because they were assured that they weren’t going to touch abortion. Oops.

And this dichotomy of a hypothetical Conservative Cabinet pledges versus its backbenchers is one of those cute ways that Scheer can try to mollify the Canadian public while at the same time assuring his social conservative base that yes, he’s still the party for them, and he’s going to ensure that they have space to put forward legislation. From there, depending on whether or not they have a majority government and if so, how large it is, it comes down to counting votes to see if these kinds of bills have a chance of making it – and the current move in anti-abortion circles is to use backdoor attempts at criminalization through means like trying to create jurisprudence by means of laws that give a foetus personhood status through bills that treat them as such when a pregnant woman is murdered, for example, which they then plan to slowly extend to abortion services. It’s a long-term plan, but one that begins with getting enough anti-abortion candidates nominated and elected, so even though Scheer says his Cabinet won’t introduce these bills, as private members’ bills, they are unlikely to be whipped, and that leaves him to free his caucus to “vote their conscience.”

Of course, if he’s planning to be like Stephen Harper and assert pressure to ensure that these kinds of bills don’t make it through, then his courting of the anti-abortion community is hollow, and he’s lying to them, which will also be something that his base will have to contend with. But the clarification that only a hypothetical Cabinet wouldn’t introduce any anti-abortion measures is too cute by half, and relies on the fact that not enough people appreciate the difference between Cabinet and the backbenches, and why that distinction matters.

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