Roundup: Questioning the housing numbers

The Parliamentary Budget Officer released a report yesterday on the federal government’s programme spending on housing affordability, and I have questions, both on the report, and on the responses to it. On the report itself, I’m having a hard time seeing how this is necessarily within his remit, and not that of the Auditor General. This is not exactly fiscal or macro-economic analysis – it’s evaluating programme spending, which is the Auditor General’s job. (Once again, the PBO is not a “budget watchdog” or a “watchdog” of any kind, per his enabling legislation). This doesn’t appear to have been at the request of any MPs in particular, though this updates his 2019 report which was requested by an unnamed MP at the time, but again, not really his wheelhouse. “Providing economic and financial analysis for the purposes of raising the quality of parliamentary debate and promoting greater budget transparency and accountability” is being taken a little too broadly.

The findings of the report are that the funds allocated to housing are being underspent, but doesn’t really delve into why, other than noting that some of the spending was related to having to renew bilateral agreements with provinces that were allowed to lapse in 2015, and that CMHC’s programmes have both faced “implementation delays” and that their shift toward funding capital contributions instead of affordability supports spread that funding out over the life of projects. Those “implementation delays” probably deserve a lot more exploration – the fact that municipalities in particular aren’t spending the dollars available fast enough because the projects are bottlenecked in their own jurisdictions (and Vancouver is most especially guilty of this) – and that’s a lot of what this report seems to be light on details about. Housing is largely a provincial responsibility, and aside from providing money, the federal government has very few levers at its disposal, and when municipalities can’t get their acts together, that’s not really a problem the federal government can solve.

As for opposition reaction, it was predictable in that it read the PBO’s topline and not much else. The Conservatives complained that the housing plans haven’t met their targets and that they need a plan that “gets homes built,” which again, is pretty hard to do with the very few levers available at the federal level. The NDP, meanwhile, accuse the government of dubious accounting and broken promises, as per usual, again based largely on topline figures and not the fact that many of the problems exist at the provincial and municipal levels. Federal dollars only go so far and can only wield so much influence, and these are details that matter when it comes to implementing promises.

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Roundup: The July job numbers

The Labour Force Survey results for July were released yesterday, and while there was positive job growth, it wasn’t quite as robust as had been expected. The recovery remains uneven, but some of the narratives and commentary aren’t really helping when it comes to adjusting to the reality of this stage of the pandemic (which isn’t even post- yet).

A lot of the narratives are still being driven by the likes of the Canadian Federation of Independent Business, which continues to rail about CERB and its successor suite of benefits that they claim are providing a “perverse incentive” for people to stay home, but that doesn’t seem to fit the reality, which is that the market is shifting. A lot of people who were in these service-industry jobs either moved on during the pandemic because it (and the government benefits) afforded them the opportunity to do so – which is why you have people complaining that their favoured servers at their local watering holes didn’t come back, and you have nineteen-year-olds who just got their Smart Serve certification replacing them. But another narrative is also bubbling up, where we also have a cohort who aren’t willing to go back to what existed beforehand, with the low wages and mistreatment, and a lot of those business owners haven’t made the cognitive leap yet that they can’t keep operating the way they did before. Of course, this is one reason why the CFIB is so up in arms about these benefits – they have a vested interest in things returning to the old normal where labour can be exploitative without consequence, but the current reality is changing that. This could be change happening that will be better for us all overall, if it’s able to take hold – and chances are, this government more than others are more willing to let it happen.

The Conservatives, meanwhile, are insistent that the federal government is “killing job creation,” which is a novel argument considering that they’re not the level of government responsible for the maintenance of public health measures (which has been one of the biggest determinants of economic activity over the course of the pandemic). They’re also keeping up the fiction that a pre-third wave job recovery projection was a “promise” about job creation, again, which was derailed by more public health measures because provinces screwed up their own recoveries by re-opening too soon. All of which is to say that we don’t seem to be capable of having a reasonable conversation about what is happening in the labour market, to the detriment of all of us.

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Roundup: Strings vs no strings for child care dollars

Justin Trudeau was in Montreal yesterday to announce that Quebec would be getting $6 billion over five years for their part of the government’s national child care programmed – but that funding is coming without strings, and that has a few people a little worried. The reason it comes without strings is not because it’s Quebec and they get special treatment (though you’re going to hear that argument), but rather the fact that the province already has a subsidised child care programme for $8.50/day, and meets the federal criteria of their national programme – in other words, they already did the work.

This is where the political pressure within the province will come to play. Premier François Legault was saying that not all of that money will likely be reinvested into the system, but he does this at his own peril – while the province has a system that meets the federal criteria, it’s oversubscribed, and salaries for early childhood educators are considered too low, leading to staff shortages throughout. There is going to be pressure to ensure that the money goes toward fixing these problems – higher wages, training more staff, getting them into place so that the system can grow to meet demand over the next five years, but Legault seems to be underestimating the number of spaces on wait lists, which is why there is concern that the lack of strings will mean it won’t be spent to necessarily fix the problems.

Of course, this is where Alberta’s minister enters the picture and complains that they wanted the same deal – their portion of the federal funds without strings – and were rebuffed. Of course, there is no recognition that Quebec has the system in place that meets the federal requirements, and Alberta does not, nor does there seem to be any hint of recognition within the provincial government that these are investments that pay off in the long run as more women enter into the work force and generate tax revenues greater than what gets spent on those early learning and child care spaces. And given the experience from the pandemic, it’s more important than ever that they build this system.

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Roundup: Beware the lure of a pilot project

You can bet that, as an election looms, that certain parties will start talking up Basic Income again (and this includes the Liberals, given recent party policy votes around it). We’re also hearing from a group of senators who want to push this in spite of evidence that it’s not the best way to go (and they have been vocally dismissing any dissent, no matter how expert). And a bill in the US about Basic Income pilots will add fuel to this particular tire fire. So with that, I turn it over to Dr. Lindsay Tedds, who was on the BC panel that examined the feasibility of Basic Income to break it down:

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But there’s a reason why these kinds of pilot proposals are popular, and that is politics. Alas.

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Roundup: The Languages Commissioner goes rogue

We appear to have another Independent Officer of Parliament who has decided to go rogue, as the Commissioner of Official Languages, Raymond Théberge, has announced that he plans to investigate the nomination process that selected Mary Simon as Governor General, given her lack of French. There are, of course, a whole host of problems with this, starting with the fact that the GG is not a federal bureaucrat and is not included in the Official Languages Act. Her office in Rideau Hall is certainly subject to the Act, and there is no question it will operate bilingually, but Simon herself is not. Furthermore, she is appointed by the Queen on the advice of the prime minister, and the advice that he gets from his appointments committee (as problematic as the current structure may be) is non-binding.

Théberge, in that case, has decided that he’ll investigate the Privy Council Office for their role in supporting said committee and providing advice, which…is a stretch. A very, very big stretch. The whole sham investigation is already outside of his mandate, and more to the point, it is hugely colonial at that, and certainly not exactly befitting the stated goals of decolonization and reconciliation. (There is, of course, the matter of this government’s apparent hypocrisy in how it treated the appointment of Simon and how it treats the appointment of Supreme Court of Canada justices, but that is also not exactly something that Théberge could investigate).

Meanwhile, Philippe Lagassé enumerates these points, explains the role of convention versus legislation in these kinds of appointments, and most especially points to the fact that Théberge might want to better familiarize himself with the Constitution, given that the appointment didn’t violate any Act of Parliament. What a gong show.

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Roundup: Reprieve for Annamie Paul?

After weeks of intense drama (sooo much drama), it looks like the Green Party’s federal council is finally going to back off on holding a vote to challenge Annamie Paul’s leadership, and possibly the review of her party membership as well. Nobody is saying what exactly went on, other than Paul will be holding a press conference in Toronto Centre at some point today, so we’ll see what she has to say for herself.

Meanwhile, one of Paul’s former leadership rivals has helped establish the Green Left, which promises to be a political organization but not a party, and it seems to be largely geared toward Green Party members in order to help them organize and push the party further toward eco-socialism. Whether there is any correlation between the two, or whether it’s simply coincidence, remains to be seen, but perhaps this sorry chapter in the Greens’ history may be drawing to a close – or at least transitioning to a new phase.

As for why this happened in the first place, I think part of the fault rests with how the Greens are structured, which is a hugely decentralized party that gives its leader very little power – which isn’t necessarily a bad thing, but this certainly highlights some of the drawbacks of structure (and which other parties will use as a cautionary tale when it comes to demands that their own leaders relinquish their iron grip on power). But with the Greens, this particular problem is not just with the leader, but with much of their policy development process, which they have opened wide in the name of earning more democracy points, but leads to things like “men’s rights activists” writing swaths of their platform because it’s that open, and without much in the way of adult supervision. This is further compounded by having a leader who doesn’t have a seat, who isn’t planning on running in a winnable seat, and who doesn’t actually understand enough about what her own MPs are doing and how to communicate with them (thus driving one of them to cross the floor). There needs to be a better balance of grassroots empowerment and having a leader who has enough power to do things but is still beholden to the elected members (of which Paul is not one). You can’t just handwave and shout “democracy!” and not have any reasonable give-and-take in the process. Right now the balance is as absent in the Green Party as it is with the other mainstream parties – it’s just tipped in the opposite direction.

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Roundup: Kenney announces his next big distraction

By now you’ve heard that Jason Kenney has announced the referendum questions that Alberta will be voting on in October as part of Kenney’s mass distraction plans. It’s unheard of to have multiple referendum questions – in this case, daylight savings and removing equalisation from the Constitution – on top of an unconstitutional sideshow of Senate “nominee elections,” and yet Kenney is putting these all together with the upcoming municipal elections. This has the bonus for Kenney of muddying the waters of those elections, where more progressive candidates tend to do better, particularly in the cities, and he gets to claim that he saves money by holding them at the same time, but this is a lie. Municipal elections are run by the municipalities themselves, while these referenda and bogus “nominee elections” are held by Elections Alberta, and just because they happen at the same time and can co-locate spaces doesn’t change the fact that it going to cost more.

The thing is, the referendum on equalization won’t actually do anything because even if they sent a message to the rest of Canada and brought everyone to the table to negotiate, the only thing that’s in the Constitution is the principle of equalization – the formula itself is federal legislation, because the programme is paid out of federal general revenues. But Kenney is content to keep lying to the public and pretending that Alberta signs a cheque every year that Quebec cashes and pays for its child care system with (which it doesn’t – they pay for that out of their own taxes, and they reap the direct economic benefits from it as well). As well, the myth that Quebec killed Energy East is being invoked (Quebec had nothing to do with it – the proponent couldn’t fill both Energy East and Keystone XL with their contracts, so Energy East was abandoned as Keystone XL looked like the more likely to reach completion – not to mention that it wouldn’t have actually served the Eastern Canadian market), which is again about stoking a faux sense of grievance. The fact that Kenney is stoking this anti-Quebec sentiment because he thinks it’ll win him points (and hopefully distract the angry mob that is gathering outside his own door) is not lost on Quebeckers when it comes to Kenney’s good friend, Erin O’Toole, looking for votes in the federal election.

But as economist Trevor Tombe keeps saying, Alberta doesn’t need equalization in the same way that Bill Gates doesn’t need social assistance – Alberta is still making way more money than any other province, even with their harder times economically. The province’s deficit is not a result of equalization or money supposedly being siphoned east (again, equalization comes out of federal taxes) – it’s a result of a province that refuses to implement sales taxes or other stable revenue generation, and expecting everyone else to subsidize that choice (while also cutting corporate taxes under the illusion that it would create jobs, but didn’t). This is just Kenney handwaving and shouting “look over there!” because he knows he’s in trouble, and he needs to keep everyone focused on a different enemy. He shouldn’t be rewarded by people falling for it.

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Roundup: Ford’s eagerness to please

The Star had a very interesting, if very infuriating, longread out yesterday, which charted the ways in which Conservative-affiliated lobbyists impacted on the decisions that Doug Ford made over the course of the pandemic – the laundry list of exemptions that kept growing by the day, the fact that the long-term care industry has insulated itself from any and all accountability and is getting their licenses renewed as if the deaths of thousands of seniors aren’t on their hands, the illogical restrictions for small retail but not box store, right up to the illogical closure of playgrounds.

The piece was illuminating not because of the look at lobbying – all of which is legal, above-board, and not the same as we’d understand from an American context of the cartoonish Hollywood portrayals – but rather because of what it shows us about Ford himself. He’s someone out of his depth – his sole experience was a single term as a junior city councillor while he brother was mayor – who was not only struggling to understand his job, but who also has a pathological need to be liked, and to be seen to be doing favours for people he knows. People like these former Conservative staffers and operatives who are now in lobbying firms. It less that these lobbyists are cozy with the provincial Progressive Conservatives – it’s that Ford wants to please them and do them favours because he knows them. That’s why the pandemic in this province turned into such a clusterfuck – because Ford needed to please the people he felt close to.

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Roundup: Nova Scotia makes two for child care

Prime minister Justin Trudeau and Iain Rankin, premier of Nova Scotia, announced yesterday that Nova Scotia was now the second province to sign a new childcare agreement with the federal government under the dollars allocated in Budget 2021, and that it would transition the province to halving current fees by next year, and reducing them to the goal of $10/day by 2026, with commitments along the way for those five years. And crucially, there are federal funds going toward training new early childhood educators, as well as to improve the post-secondary programming around ECE, which are important considerations for expanding the system, especially as one of the federal government’s criteria for that expansion is quality of care.

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This makes it two provinces down, both of them with non-conservative premiers, and it’s speculated that Newfoundland and Labrador will be next. Alberta claims to be “negotiating” around things like flexibility, but there is a bit of a red herring in there – nothing precludes the province from creating additional, more flexible spaces outside of the federal parameters if they feel they need it, but trying to insist this is about “choice” is a false dichotomy – there can be no actual choice if there is only constrained choice available. In other words, it’s not a real choice if there are no spaces available, and the federal government has long recognized that we have a supply-side problem, which is what they are trying to address. Opposing the federal plan because you claim it’s not flexible enough is, frankly, an abdication of responsibility.

The Conservatives, meanwhile, put out an extremely bizarre “backgrounder” yesterday to claim that the Liberals never meet their promises on childcare, and it was both strange and dishonest. Strange in that this is the kind of thing you’d expect to have an NDP header on it and not a Conservative one, but dishonest because they killed the gods damned system that was in place in 2006. Seriously – Paul Martin’s government had signed agreements with all of the provinces in 2006, and money for the first year was starting to flow when the NDP teamed up with the Conservatives and brought the government down, killing the childcare system that had just been established, because the Conservatives preferred to send $100/month to families instead – because “choice.” Oh, and they created tax credits for new childcare spaces, which created approximately zero of them. They vehemently opposed childcare, and still do, so for them to try and say the Liberals haven’t kept their promises when they actively worked against them and killed the programme that was created is just galling.

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Roundup: Cue the emergency committee meeting

It wouldn’t be summer if we didn’t have an emergency committee meeting of some sort, and we got just that yesterday, as the Conservatives triggered the recall of the Access to Information, Privacy and Ethics committee with an eye to opening an investigation into Liberals contracting database services from a Liberal-friendly company, headed by a personal friend of the prime minister’s. The party has claimed that this is for constituency services, and that there is no data going to party databases (as has been the case with the Conservatives and their own constituency data in the past), and that all of the rules have been followed, but the Conservatives have a narrative they need to feed, so there it went.

In the end, it got nowhere. The Liberals managed to stymie the proceedings long enough for the Bloc MP to side with them in opting not to pursue the matter, but along the way, they (correctly) suggested that this is a matter best suited for the Board of Internal Economy, which deals with MPs’ resources and allocations, and these payments have been coming out of MPs’ office budgets. Of course, the Conservatives (and to an extent the NDP) can’t put on a public dog and pony show at BOIE like they could at the ethics committee, so of course they had no interest in pursuing that course of action – especially after the Liberals also wanted the Conservatives’ database practices included in their referring the study to BOIE.

This isn’t to say that there aren’t issues that could be better explored here, the chief of which is that political parties are exempt from privacy legislation, so there aren’t many effective firewalls around the use of constituency files. And hey, that would be something that the Access to Information, Privacy and Ethics committee should be tackling, because it’s right in their mandate! One Conservative MP also suggested that perhaps the House of Commons build their own constituency file management system so that parties don’t have to contract their own systems, which may not be a bad idea – but it’s one that BOIE would tackle, not the ethics committee. And the point of this exercise was about the dog and pony show, not anything of substance, which is one more reason why this particular session has turned toxic.

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