Roundup: Exit Morneau

After a week of leaks about clashes, finance Bill Morneau took to a lectern late in the day on Monday to announce that he had tendered his resignation, and would be resigning both as minister and as MP. Well, first he did some back-patting over his record and couched the decision by saying that he never planned to serve more than two election cycles, and since the economic recovery would take years, it was better for someone else to step in who could carry the work through. The bombshell out of this was the face-saving gesture that he had put his name forward to be the next secretary general of the OECD, and that he had the PM’s full support in doing so – which is either really cute that he thinks he actually has a chance, or a bit pathetic in that he offered up an excuse that beggared credulity. The Q&A portion had very few answers, but this kind of pabulum is what Morneau was so good at – lots of words, not a lot of substance. When asked about the difference that he was apparently clashing with Trudeau over, Morneau mouthed that there was “vigorous discussion and debate,” and that he hoped that work on the green economy could continue and that he would try to help with the OECD (which he won’t get). He denied that he was pressured to resign, said that when it came to WE, he has been involved in philanthropy for many years and that in hindsight he wished that he had one things differently and recused himself – and yet said nothing about the donor trip he didn’t disclose. He insisted that he still wanted to contribute, and said that at the OECD, he would deal with things like international taxation and digital transformation, and use the expertise he gained as the finance minister of a G7 country to help, but, well, that’s not going to happen and we all know it.

Liberal Sources™ are saying that there won’t be an interim finance minister, though the Orders in Council say that Mona Fortier is already the Acting Minister since Morneau is out of the picture. The leading contenders for the job appear to be Jean-Yves Duclos, Chrystia Freeland, and François-Philippe Champagne.

Meanwhile, Paul Wells describes the strange circumstances that surrounded Morneau’s departure – particularly the leaks to the media about fights that Morneau lost and was gracious about, with added snark about how the departure went down. Heather Scoffield notes the good work Morneau did before agreeing that it was time for him to go. (Look for my own column on Morneau’s departure later today on Loonie Politics).

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Roundup: An investigation into Rideau Hall

It was announced at the end of the day yesterday that the Privy Council Office would be launching a “thorough, independent and impartial” investigation into the claims of harassment and verbal abuse at Rideau Hall, and that this would be done with the cooperation of the Secretary to the Governor General, Assunta Di Lorenzo – whom these same complainants say was Payette’s abusive tag-team partner. Payette later tweeted that she takes workplace harassment “very seriously,” for what that’s worth.

Meanwhile, Philippe Lagassé explains why Governors General need to be uncontroversial and above reproach – which extends to how they comport themselves in office, which this current situation is certainly an example of. He also makes the very salient point that the prime minister needs to be directly involved in fixing this situation one way or the other, which can mean encouraging Payette that it’s time to “spend more time with her family.” Chris Selley longs for the days of a boring GG in office, citing David Johnston as the ideal when compared to the current example (and there is a good chapter on the criteria for selecting a GG in Royal Progress, written by Senator Serge Joyal, with the observation that the women selected for the roles have largely had media presences as opposed to governance experience).

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Roundup: The toxic environment at Rideau Hall

The big news last night was that the CBC had staff on the record about the climate of harassment and verbal abuse that has emerged at Rideau Hall since Julie Payette became Governor General, and her friend Assunta Di Lorenzo her Secretary. It’s not actually surprising – there are three years of stories coming out of Rideau Hall about the atmosphere getting increasingly toxic and that Payette’s behaviour has been mystifying at times – that she doesn’t want to do some of the ceremonial aspects of the job, and wants to have an active hand in portions of the job where she shouldn’t. My own sources have been saying that Payette and Di Lorenzo are “erratic,” and that most people can’t deal with them. Staff has left Rideau Hall in droves. All of the indications are that it’s a sick workplace – but Payette put out a press release saying that this is all news to her because nobody has complained through the official process (which isn’t really a complaint mechanism because it all goes back to Di Lorenzo and ultimately Payette). And if you need convincing, here are three years of stories (thread), including some of my own.

Ultimately, this is Justin Trudeau’s responsibility because he appointed her without due diligence that she would be suitable for the role. The fact that he did away with the vice-regal appointments committee in order to listen to his own inner cadre about Payette as a choice is pretty much the exact kind of thing we’re seeing with the WE Imbroglio playing out right now – nobody bothered to exercise critical judgment, and instead all went along nodding and drinking more of the Kool-Aid, and lo, a bad decision was made – and one that ultimately damaged one of our parliamentary institutions. It also is now up to Trudeau to do something about the situation, whether it’s managing Payette and Di Lorenzo and working on a plan to transition them out, or if they won’t go, calling up the Queen and asking her to dismiss Payette (which is a last resort because the first rule of constitutional monarchy is you don’t get the Queen involved). Any way you look at this, it’s not good, and it’s yet another black mark on Trudeau’s record.

Here’s Philippe Lagassé on the options available to dealing with Payette. And if you want to know more about the former vice-regal appointments commission and the role of the Secretary to the Governor General, and why Di Lorenzo’s appointment has been a problem from the start, read my chapter in Royal Progress: Canada’s Monarchy in the Age of Disruption, and learn more about it.

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Roundup: A brief return to the Commons

The Commons will be meeting today in an actual, real sitting and not an abbreviated strange hybrid committee, in order to pass Bill C-20 on disability payments, which they say is in an improved format from their previous attempt in C-17 (which one presumes is now withdrawn from the Order Paper). The bill also includes the changes to the wage subsidy that were announced on Friday, and it sounds like will also have the changes to court system timelines that were previously announced and part of C-17, but the text of the bill won’t be out until the Commons actually sits. We also know that the bill will pass, because the Bloc have agreed to everything, and this means a motion that will see the bill essentially passed at all stages with a couple hours’ worth of speeches in lieu of actual debate or legislative processes, which is less than ideal. We’ll also have a proper Question Period today, so we can look forward to that, and all of the questions on the WE Imbroglio that will come with it. The Senate has not yet announced when they will be meeting to pass it on their end, which may not be until later in the week.

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Roundup: Feigned confusion and a filibuster

As anticipated, the government unveiled their reforms to the wage subsidy programme yesterday, which included more of a sliding scale for revenue drops and how much support businesses could get before the subsidy phases out, which helps ensure that businesses don’t reach a “cliff” in terms of restart growth only to have that support ripped away at an arbitrary level. This has the business community both applauding the government for responding to concerns, while also moaning that it’s so complicated now, which has some economists rolling their eyes. It also looks like the government that insisted they don’t like abusive omnibus bills is rolling the legislation for these changes in with the new-and-improved disability payments, as well as the justice timelines legislation, so that’s something to look forward to when the House comes back next week for a single day.

Meanwhile, the Ethics committee met yesterday to start their own look into the WE Imbroglio (conveniently with many of the same faces who subbed in at the Finance Committee during its hearing), to which the Liberals on the committee, knowing that they don’t have sufficient votes, decided instead to filibuster things, which is not a good look. Their arguments that this undermines the work of the Ethics Commissioner ignores that his role is supposed to support them, not the other way around; the fact that they were blocking a motion to demand the receipts from Margaret and Alexandre Trudeau’s public speaking events from their Speaker’s Bureau going back to 2008 is a little more suspect, and I haven’t heard a reasonable rationale for it or how it relates to the proposed study on how well the conflict-of-interest regime is working. Suffice to say, this isn’t a good look for the Liberals, and there are better ways of beating the Conservatives at their own game than playing into their hands. It’s too bad that they can’t seem to grasp that.

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Roundup: Some strings attached

Prime minister Justin Trudeau wound up holding an irregular presser yesterday, mid-afternoon instead of late morning, and with a specific purpose in mind – to announce that the federal government had finally come to an agreement with the provinces over the Safe Restart Plan, now pegged at $19 billion rather than the $14 billion initially put on the table. What is noteworthy is that there were still federal strings attached for this money, though some premiers noted that the strings were not as tight as before. The money is to go toward municipalities, transit, contact tracing, personal protective equipment, childcare, and ten days of paid sick leave (so now Jagmeet Singh can pat himself on the back, even though this was BC premier John Horgan’s initiative), and is to last for the next six to eight months, at which point there will be a re-evaluation of where everyone is at. Trudeau also made it official that the Canada-US border will remain closed to non-essential travel until August 21st.

During the Q&A that followed, Trudeau expressed optimism around the vaccine candidate being held up by Chinese customs, and said that in spite of the Russian hacking story, it was important to work with everyone to develop a vaccine and that they were working to get the balance right. When asked if he would appear before committee as invited around the WE Imbroglio, that his House leadership team was looking at the possibilities, but that he also looked forward to taking questions in the Commons next week during the scheduled special sitting day. Chrystia Freeland was asked about what she knew regarding the WE Imbroglio, and she gave a fairly lengthy response about how everyone accepts responsibility for what happened, and apologized, saying that “clearly we made a mistake and we’re going to learn from it,” adding that everyone knew that the PM was connected to WE but didn’t know of his family’s specific financial arrangements, and then added that she still supported the PM and that it was a privilege to serve in his Cabinet. When asked if Quebec had no problems with the strings attached to the billions on the table, Freeland said that they agreed to it like everyone else, and that it was actually a Really Big Deal to get all thirteen provinces and territories to sign onto a deal that includes the municipalities and covered several ministries, saying that it showed that Canadians have understood that we need to work together in this time of crisis.

Shortly after the presser ended, Bardish Chagger and her officials appeared before the Finance committee to discuss the WE Imbroglio. Chagger insisted that nobody in PMO directed her to make an arrangement with WE, but she kept deferring to her officials, which…isn’t really how ministerial responsibility works. There was also talk about how WE had sent an unsolicited proposal to several ministers about a youth programme before this was announced, which WE later came out and said was a youth entrepreneurship programme which had nothing to do with what became the Service Grant programme. This having been said, the senior bureaucrat on the file said that they had three weeks to come up with a programme, and that WE fit the bill for its requirements, which is why they were recommended – and pointed out that potential conflicts are for public office holders to deal with, not bureaucrats (which is true). Up today, the Ethics Committee will begin their own examination into the Imbroglio, so we’ll see if that goes any better.

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Roundup: A curious case for declaratory legislation

A curious story showed up on the CBC website yesterday, wherein justice minister David Lametti stated that if it looked like pandemic delays were going to cause criminal trials to essentially “age out” of the court system as a result of the Jordan decision – meaning that once they reach a certain point, they are deemed to be stayed because they took too long and have become unconstitutional – that he would introduce legislation to “clarify” how the Supreme Court’s Jordan decision was to be clarified. It’s curious because it seems to be a bit of a made-up issue – the Jordan decision already stated that the 30-month timeline allowed for exceptional circumstances, and we can all agree that a global pandemic is by definition an exceptional circumstance. This isn’t to say that declaratory legislation isn’t a valid exercise, because it can be – but it just seems wholly unnecessary in this case, when there are other ways that the government could be better dealing with the criminal justice system and juries than worrying about the Jordan timelines.

In any event, here is defence lawyer Michael Spratt with some thoughts on the story:

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Roundup: A shock-and-awe number

The Conservatives are crowing about their membership numbers in the lead-up to their leadership vote, where some 269,000 Canadians are now eligible to vote – not that they all will, but it’s a shock-and-awe number that they say are bigger than any previous Conservative (or its predecessor parties’) leadership contest – though not quite as large as the Liberal contest that elected Justin Trudeau. And while on paper it’s great that there are so many people who have joined the party, this is one of those traps that have created so many of our problems in this country.

The original sin in Canadian politics was the Liberals’ decision in 1919 to move away from caucus selecting their new leader after Wilfrid Laurier’s death to a delegated convention. From then on, under the guise of being “more democratic,” they ensured that their leaders could henceforth not be held to account by the MPs of their caucus – nor the party, really, because “leadership reviews” are largely bogus exercises (sorry, Thomas Mulcair!). And what ends up happening is that when you have a big number like 260,000 party members, when the leader who winds up being selected in this manner gets into trouble, he or she tells their caucus “I have the democratic legitimacy of these 269,000 votes – the average riding has 75,000 electors. I have the bigger mandate.” It has been the way in which the centralization of power has been justified, and all of abuses of that power have followed.

The other problem is that these kinds of memberships tend to be transactional for the duration of the leadership contest. A good many of these members won’t stick around and to the work of nominations or policy development, which is another reason why these shock-and-awe numbers wind up being hollow in the long run. We do need more people to take out party memberships in this country, but it has to be meaningful engagement, and a leadership contest is not that. It only serves to perpetuate the problems in our system.

 

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Roundup: Trudeau steps on yet another rake

The prime minister’s problems with the now-cancelled WE Charity contract blew up yesterday, as it was revealed that Justin Trudeau’s mother and brother have been paid by WE to speak at events, that his wife had once been paid by them in 2012, all of which contradicts their previous statements that they don’t pay speakers. (Trudeau maintains that he has never been paid). Suddenly this makes the fact that Trudeau didn’t recuse himself from any decisions around that contract at the Cabinet table look very bad, because his family does benefit from the organization, and they’re not just donating their time and profile as had been previously stated. And for WE’s part, they have done themselves no favours by saying that it was their social enterprise arm, ME to WE, which paid them, except for the times when there was a billing error and WE Charity paid them instead. This as more parliamentary committees are (finally) doing their jobs in calling ministers and bureaucrats before them to explain their decisions. And to cap it off, Yves-François Blanchet is now demanding that Trudeau step aside and let Chrystia Freeland run things until everything is cleared up. So that’s something.

It’s hard not to see that the Liberals’ capacity for self-harm knows no bounds, between these self-inflicted wounds and their inability to communicate their way out of a wet paper bag/manage an issue, means that they inevitably make it worse for themselves – which they did yet again today by essentially saying that the only thing that matters is that Trudeau was really concerned about the youth. Seriously? It is not only obvious that Trudeau seems to lack any sense of self-awareness, in part because he has grown up as a kind of celebrity, but it’s also combined by the fact that there clearly isn’t anyone in his office who will stand up to him and say that no, this maybe isn’t a good idea, and no, it’s going to come across well no matter how well-meaning it all is. I mean, the first couple of years in office, Trudeau dismantled any way for the party mechanism to push back against the leader and his office, and that was a fair bit more autonomous than what goes on in PMO. This being said, I will add that our ethics and conflict of interest regime in this country is ludicrous, and subject to the whims of successive Ethics Commissioners, who either read their mandates so narrowly that nothing was ever her problem, except when she took it upon herself to decide who is and is not a family friend of the Aga Khan (that being Mary Dawson), or her replacement, who has invented new statutory interpretation out of whole cloth on numerous occasions to baffling results. None of this excuses Trudeau’s constantly stepping on rakes – he should absolutely know better, but seems incapable of figuring that out.

Meanwhile, Susan Delacourt remarks on how repetitive Trudeau’s ethical lapses are getting, and how every time he promises that he’s learned his lesson – until he does makes yet another blunder. Matt Gurney is baffled at PMO’s tone-deafness on this whole affair. Chris Selley, while boggled at Trudeau’s constant blunders, is even more incredulous at how Andrew Scheer keeps being so bad at responding while creating his own distractions.

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Roundup: Pearl-clutching about the deficit

For the first time this week, prime minister Justin Trudeau held a presser, wherein he praised the agreement with the First Nations on moving ahead with transferring control over child welfare, mentioned the virtual Cabinet retreat that was held over the previous two days, and mentioned that new pandemic modelling was on the way, noting that there are still hot-spots around the country. And then it was the takeaway message of the day – a mere couple of hours away from the fiscal “snapshot” being delivered, Trudeau made the case that they chose to support Canadians rather than leaving them to fend for themselves, and that the cost of doing nothing would have been far greater on both healthcare and the economy. He reiterated that this was not the time for austerity, but that they have been building a “bridges” to a stronger, more resilient Canada, and drove home the point that the federal government took on debt so that ordinary Canadians wouldn’t have to. He pointed to the low debt-to-GDP ratio, and that historically low interest rates mean manageable borrowing costs. And with one final word on Bob Rae being appointed to the UN, he took questions, one of the first of which determined that he didn’t recuse himself when the WE Charity sole-source contract came before Cabinet, which is something the Ethics Commissioner is looking at. He spoke about the necessity of childcare, that Bill Blair has been engaged on the subject or the RCMP and police brutality as part of the broader Cabinet workplan on combatting systemic racism, that they were following the recommendations of the Auditor General on CBSA, and then reiterated again that with historically low debt-servicing costs, it was easier for the federal government to take it on in order to prevent Canadian households from having to do so. When asked about the relationship with Donald Trump, Trudeau once again reiterated that they have concerns about the possibility of new tariffs, and that it will only hurt American industry because they need Canadian aluminium as they can’t produce enough of their own.

And then the fiscal “snapshot.” While Bill Morneau’s pabulum-heavy speech was pretty much all self-congratulation and a recap of measures they’ve taken, the accompanying documents did show a $343 billion deficit projected for this year (though it has been speculated that this was an outer bound limit designed for them to come under), and that the total debt by the end of this fiscal year could be $1.2 trillion – numbers everyone clutched their pearls about while ignoring that the debt-servicing costs continue to decrease even though the size of the debt has increased. There was mention that the wage subsidy is going to be extended, but with modifications on the way “sooner than later,” but there wasn’t much indication about the broader recovery plan thus far.

Of course, the obsessions among all of the media coverage was the deficit and debt figures, because our reporting narratives remain firmly affixed in the mid-1990s, and no one can break free of them – not to mention the hyperbolic mentions about how this was the biggest deficit since the Second World War (never mind that this is a virtually unprecedented global pandemic we’re facing with a demand-side shock that people can’t seem to wrap their heads around). And because the framing devices remain in the 1990s, headlines obsessed that there wasn’t a plan to curb spending – because of course we know how the epidemiology of this pandemic is going to play out until we get a vaccine at some point in the future. But perspective? You need to turn to the economists on Twitter for that.

https://twitter.com/kevinmilligan/status/1280933038394875905

https://twitter.com/LindsayTedds/status/1280946657106878464

https://twitter.com/LindsayTedds/status/1280948115911045120

https://twitter.com/LindsayTedds/status/1280935717359644672

https://twitter.com/LindsayTedds/status/1280992891343527936

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