Tag Archives: Procurement

QP: A narrative of doom

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While Justin Trudeau was in Montreal to pre-meet with some premiers in advance of the first ministers’ conference, Andrew Scheer was present, fresh from being booed by the chiefs at the Assembly of First Nations, and he led off with the false notion that premiers had to resort to threats before the oil and gas sector was on the agenda at the first ministers’ meeting, and surprisingly, Diane Lebouthillier got up to read that they were taking measures to help the workers. Scheer then worried that the Crown lawyers were trying to block the Canadian Taxpayers Federation from intervening at the Saskatchewan carbon tax court challenge, to which Amarjeet Sohi replier that they were trying to fix a broken pipeline system that we inherited from the Harper government — which wasn’t the question. Scheer railed that the government was trying to phase out the energy sector and demanded that Bill C-69 be withdrawn, to which Sohi replied that when the government tried to extend EI supports for laid off workers, the Conservatives voted against it and funding for orphan oil wells. Gérard Deltell worried about the economic turbulence meaning higher interest rates — which, actually, would be a sign of a good economy — and Scott Brison reminded him that when they took office, the country was in a technical recession and the current government turned it around. Deltell tried again, and got the same answer. Guy Caron was up next for the NDP, and raising the Trans Mountain pipeline, wondered when ten government would take its responsibilities to Indigenous communities seriously. Sohi said that they were taking the renewed consultations seriously. Caron worried that Trudeau was dismissive of a First Nations Chief yesterday, to which Philpott got up to defend the PM’s honour. Rachel Blaney took over to rail about “free, prior and informed consent,” and Sohi repeated their renewed consultations. When Blaney repeated the demand that Trudeau apologise to that BC Chief, Philpott again defended the PM.

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QP: Taking allegations outside

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While the PM took a personal day after his return from the G20, Andrew Scheer was off in Winnipeg to talk guns and gangs. Pierre Poilievre led off concerned about the PM’s supposed “celebrity lifestyle” that referred to the pre-planned tweet around funds for women and girls’ education, before he suddenly pivoted to Bill C-69, demanding it be scrapped. Amarjeet Sohi reminded him that the system the Conservatives put into place that wasn’t working, so they were working to get a one project-one-review process. Poilievre railed that the PM was at the G20 talking about how there were negative consequences when male construction workers went to rural communities,  before returning to the demand to scrap C-69. Sohi reiterate his response, and when Poilievre went for another, more boisterous round of the same, he got much the same answer. Alain Rayes took over to ask about the report in the National Post about a potential investigation on a land deal that might involve Navdeep Bains and Raj Grewal, to which Bains told him the allegations were false and invited him to repeat them outside of the Chamber. Rayes tried to insist on Liberal connections to the situation, to which Bardish Chagger read a statement that functionally repeated Bains’ response. Guy Caron was up next for the NDP, railing about high-protein milk under Supply Management, to which Lawrence MacAulay deployed his usual lines about defending the system. Caron then turned to the Oshawa closure and demanded action by the government, to which Bains read that the sector was strong, that they had the auto innovation fund if GM wanted to use it. Tracey Ramsey demanded action on Oshawa, to which Bains reiterated his previous response. Ramsey then railed that steel and aluminium tariffs were still in place, to which Mélanie Joly read that the NDP celebrated the deal behind closed doors.

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Roundup: Notley mandates a cut

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Alberta premier Rachel Notley decided that she will mandate an 8.7 percent production cut, starting on January 1st, in the hopes that it will help to finally drive the price of oil back up, seeing as this is a supply and demand problem and there is too much supply in the system. But as far as “immediate action” goes, waiting another three weeks doesn’t seem very immediate (though I’m not sure what is involved in scaling back production), and it’s not a solution that makes everyone in the market happy given that some players weren’t taking as big of a hit by the large price differential.

Reaction has been swift, and while Jason Kenney says he supports it, he and Andrew Scheer are quick to blame the federal government for the situation. Natural resources minister Amarjeet Sohi responded with a thread that basically said that they inherited most of these problems – and he’s right about that – but he laid out the supports they’ve given the industry. I’m not sure that in the race to pin blame that anyone is looking at the history of the industry – there was no push to sell oil to overseas markets before recently because America was always seen as an easy import market with an insatiable appetite, because nobody saw the shale revolution coming. That’s no one government’s fault, and it’s difficult to turn an industry around in a mere couple of years. And Kenney and Scheer keep insisting that if Trudeau hadn’t killed Northern Gateway or Energy East, things would be just fine – except of course that it’s just as likely that Gateway would still be tied up in interminable court injunctions because it was the more fraught project to begin with, and Energy East wasn’t economically viable once Keystone XL was back in the picture, but why spoil a narrative with facts?

Meanwhile, New Brunswick’s new premier is hoping to revive Energy East, under the belief that it was just regulatory problems that killed it rather than the economics, particularly because the proponent didn’t have enough supply contracts to fill both it and Keystone XL. Also, the proponents who think this will displace foreign oil know that unless they shell out to retool the existing refineries, it won’t actually serve their markets, and that they would also be demanding that Alberta swallow a $10/barrel discount, right?

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Roundup: Island of Unintended Consequences

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Over at Maclean’s, David Moscrop profiled the “new” Senate, and in it was probably the best description of the institution in its present state – the “Island of Unintended Consequences,” as penned by Greg MacEachern of Proof Strategies. And that’s very much true about the state of the Chamber, but unsurprisingly, almost none of those unintended consequences were explored. The bulk of the piece was devoted to the notion that we don’t know how senators will vote anymore and they say they don’t want to defeat bills but who knows *handwavey motion*.

The problem is that it’s not just the uncertainty over how senators will vote – it’s the fact that the people being put in charge in that Chamber don’t really know what they’re doing. The Order Paper is becoming hopelessly behind with bills piling up, and because nobody wants to negotiate and do any of the horse-trading that gets bills passed, it’s getting worse. This has serious implications for the government trying to get their agenda through, but too many senators are busy congratulating themselves on the fact that they’re not whipped that they fail to see the a) that horse-trading is not partisan but rather how things get done; and b) that the pile-up of legislation is going to become a serious problem unless they get their acts together and start getting bills through the system. If you want an unintended consequence, that’s certainly a huge one, and one that Senator Peter Harder seems willing to let happen so that he can get his way with the creation of a “business committee,” which will just fob yet more responsibility off of his desk and onto another small cliques’ plate (but he needs his $1.5 million budget!) and won’t do any of the things he promises when it comes to avoiding the end-of-session legislative pile-up. The fact that the Independents now make up the majority of the chamber, most of them too new to know what they’re doing (and lacking proper mentorship), the Order Paper crisis is happening and they don’t understand that it’s happening. This is a problem, and we need more senators to wake up to it.

Meanwhile, Senator Paula Simons talks about her live-tweeting in the Chamber as a way of de-mystifying its work, thanks to her career as a journalist, and I for one applaud her for it (though I will offer her corrections as she goes along).

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QP: Fighting for Oshawa

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While Justin Trudeau was in town but meeting with the head of Unifor, Andrew Scheer decided to show up for the first time in almost two weeks. Scheer led off, mini-lectern on desk, and he read that he met with workers at the GM plant in Oshawa earlier that morning, before he concern trolled around “massive deficits,” before wondering if the support for workers was factored into the fall economic update (obviously it wouldn’t have been), or if it meant higher deficits. Navdeep Bains responded by saying that they stand up for workers, and touted their innovation fund. Scheer demanded they cancel the carbon tax to protect jobs, to which Bains praised the business environment and the auto sector in Canada. Scheer demanded a second time, and Bains noted new investment in the sector. Gérard Deltell took over to reiterate the demand in French, to which Bains read his bland assurances in French. Deltell listed the various other job losses in other sectors, to which Bains retorted in English about the good economic news that countered those individual challenges. Guy Caron was up next for the NDP, and he worried about the Oshawa news, and got the usual reply from Bains. When Caron demanded that GM repay any funds that the government provided them, Bains assured him that all options were being explored to protect workers. Peter Julian was up next to reiterate the question in English, and Bains took exception to his characterisation of events before listing the economic figures. Julian insisted that the fall economic update was a giveaway to corporations, but Bains again pushed back against the rhetoric and proclaimed about their plans to invest created growth.

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QP: Concern trolling about the media

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While the PM was off to Calgary to sell his fiscal update, Andrew Scheer was absent yet again. Alain Rayes led off, proclaiming that the government was racking up “record” deficits (not sure that’s correct), and demanded a plan for a balanced budget. Bill Morneau insisted that they did have a plan for growth and investment, and that the level of debt was the best in the G7. Rayes tried a second time, and got the same answer. Pierre Poilievre got up next, and said that the Morneau was trying to rewrite history from his deficit promises. Morneau got up and said that Poilievre was repeating buzz-words from first-year economic textbooks, while his government was getting results with growth. Poilievre then concern trolled that the government was buying off the press, to which Morneau said that journalism was vital democracy and they were trying to help the sector in a manner that was independent. Poilievre stated that the government thinks that journalists should shower then with praise, to which Morneau replied that it was insulting to think that journalists could be bought off. Guy Caron was up next for the NDP, decrying the tablet of back to work legislation for Canada Post, to which Morneau said that they tried to get a deal but the economy was starting to suffer. Caron railed that this was a gift not only to Canada Post but also EBay and Amazon, and Morneau responded with some pabulum about supporting small businesses. Karine Trudel and Irene Mathyssen further denounced the move on back-to-work legalisation, to which Patty Hajdu listed the ways they tried to get to a deal, and that the legislation may still give room for bargaining while getting the workers back to work.

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Roundup: Deficits vs spending choices

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It was the autumn fiscal update yesterday, and it should be no surprise that the deficits are going to continue for foreseeable future. It was also notable for the measures that were implemented to compete with the US corporate tax cuts without making similar cuts in Canada, and these were measures that were designed to keep businesses investing in growth rather than simply offering share buybacks or dividends, as we’ve seen in the US. These targeted measures included immediate write-offs of new machinery and equipment, certain clean-energy equipment, and writing off some assets more quickly than before, with the calculated marginal effective tax rate of these measures apparently besting the US’ rates. So there’s that. There were also some tax credits for digital subscriptions in media, and a $600 million fund to offset the cost of hiring staff as part of that. There were also measures around removing internal trade barriers (yet again) and improving supports for businesses looking to export. On top of that, it also noted that the Trans Mountain Pipeline has earned the government $70 million since it bought the pipeline, and is on track to earn it some $200 million per year.

The deficit issue is one that we’ll continue to hear about, and it’s probably more complex than just a “deficits bad” kind of debate to have. On the one hand, the Liberals took government at a time when the books were $70 billion worse off than initially advertised (not to mention the Conservative “surplus” booked a bunch of false savings) so the 2015 promises met a different reality. On the other hand, they are spending any revenue growth rather than paying down the deficit faster, insisting (not incorrectly) that a declining debt-to-GDP figure is a more important measure, and we should remember that the deficits are really quite modest in comparison to the size of our economy. But they are making spending choices, and we should judge them on that. Here’s Kevin Milligan with some more context and analysis:

https://twitter.com/kevinmilligan/status/1065412694709174274

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John Geddes offers his summary of the update, while Andrew Coyne pans the government’s propensity to spend any new revenues it gets rather, meaning that their deficits continue to be by choice rather than necessity. Kevin Carmichael says that in spite of the deficit problems, the most audacious part of the update was the plan to tackle the overhaul of federal regulation. Susan Delacourt notes the difference in tone between the federal fiscal update and that in Ontario last week.

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QP: Praising your own record

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While the PM was present once again for QP, the finance minister was over in the lock-up for the fiscal update, and Andrew Scheer was…elsewhere. Again. Lisa Raitt led off, and true to form, wanted to know when the budget would be balanced. Justin Trudeau stated that no government in history added more to the debt than Stephen Harper, and praised his own record on growth and employment. Raitt tried again, and Trudeau lambasted the Conservative record on deficits and noted the decrease in the debt-to-GDP ratio. Raitt accused Trudeau of being arrogant for breaking promises, and Trudeau listed off the Conservative record of cuts and low growth. Alain Rayes took over to ask again in French, and this time Trudeau picked up a sheet to talk about how many children in Rayes’ riding were being helped by the Canada Child Benefit. Rayes tried one last time, and Trudeau lauded his party’s record of economic growth. Guy Caron was up next, and he railed about the possibility that the government would legislate an end to the Canada Post labour dispute. Trudeau took up a script to read that they believe in collective bargaining, but that legislation was not a step they took lightly, but they were prepare to act. Caron switched to English to ask the same thing, and Trudeau read the French version of his script. Karine Trudel said the reported mail backlogs were exaggerated and that Canada Post was creating an artificial crisis, to which Trudeau remarked, without script, that they were working in partnership with unions, but they were ready to act if they couldn’t come to an agreement. Irene Mathyssen tried one last time in English, and Trudeau insisted that they transformed the relationship between the government and organised labour.

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Roundup: Saudi oil and AG reports

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While the issue of Saudi Arabia continues to make headlines, Chrystia Freeland insisted that she doesn’t consider the case closed and more sanctions are being contemplated. She also said in QP yesterday that no future export permits will be granted to the kingdom (in reference to the LAVs we’ve been selling to them).

Of course, when I tweeted this, my reply column filled up with a bunch of indignant people who demanded to know when we would stop buying Saudi oil and use Alberta oil in Eastern Canada instead. Let me assure you that it’s never going to happen. If we don’t buy Saudi oil, it won’t impact their bottom line in the slightest. The amount we import from them is a rounding error on their books. Add to that, Energy East was never about domestic supply – it was about export via the long route. If by some miracle, a future Andrew Scheer government not only built said pipeline and they demanded that Eastern Canada start using Alberta oil, he would essentially be demanding that Alberta take a $10/barrel discount on that oil, because economics. I seem to recall a former prime minister who remains demonised in Alberta to this day because he wanted to ensure domestic supply, which would mean Alberta got a lower price for their barrels. Why would Scheer want to repeat that very same policy, but wrapped in an “ethical oil” cloak?

Auditor General’s report

Yesterday was the fall report of the Auditor General, and there were reports on:

  • The fighter jet procurement programme got a spanking, and particular attention was paid to the retention problems around pilots and mechanics.
  • Security at many of our embassies is falling behind; the government blames the Harper era for lack of investment.
  • The military isn’t stamping out harassment as quickly as it should because there is no coordination in its programmes, resulting in a number of gaps.
  • There is a lack of both a strategy and budget for rural Internet connectivity.
  • CRA gives people inconsistent treatment, and where you live can determine how friendly your local regional tax office is.
  • Inmates eligible for parole are being kept in prison for longer than necessary because of a lack of halfway houses and parole officers.
  • The lack of coordination between departments means the government may not even know which historic buildings they own.

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Roundup: Not an election issue to fight over

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The leader of the Independent Senators Group seems to have inserted himself into the political discussion by demanding to know where parties stand on the issue of Senate appointments in advance of the next election. Senator Woo’s concerns seem to be that he doesn’t want people to “unwittingly” vote for a party that doesn’t conform to their views on the Senate. I’m going to go ahead and say that this was probably a mistake because it’s very easy to construe that he’s looking to shill for the Liberals since they are the only ones to are half-arsing the issue of Senate modernization, at least in this particular bastardized vision of a completely “independent” Chamber that is more likely to be problematic than anything.

In case you were wondering, the Conservatives say they don’t have a firm position yet, but their democratic institutions critic says she prefers the Harper system of appointing candidates voted on in “consultative elections” – you know, the ones that the Supreme Court of Canada said were unconstitutional because they were attempting to do through the backdoor what they couldn’t to through the front door. Oh, and they support a partisan Senate because they have a “very strong Senate group.” And the NDP, well, they’re still insisting that they want to abolish the Senate, never mind that they will never, ever, get the unanimous support of the provinces to do so. That leaves Senator Woo holding the bag for the Liberals by default, which isn’t a good look if he wants to keep insisting that he’s independent from the Liberals.

And those of us who think that maybe the Senate is better off with Liberals, Conservatives and a group of crossbenchers in roughly equal numbers? Who are we supposed to vote for? I suspect we’re SOL, unless the Liberals decide to change their tune after their “experiment” in a totally independent Senate starts to blow up in their faces and they can’t get bills passed (in part because their Government Leader – err “representative” – doesn’t want to do his job), but yeah. I’m not sure this is an election issue to fight over because nobody knows what they’re doing and we’re going to find ourselves cleaning up the mess made in this institution for a generation to come.

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