QP: Keeping some fiscal room

Tuesday, and while Justin Trudeau was present today, both Andrew Scheer and Jagmeet Singh were away for whatever the reason. Gérard Deltell led off in French, worrying about the deficit and the loss of jobs in the energy sector, and the general direction of the economy. Trudeau started that they did the work of things like poverty reduction, but they knew to leave room for situations like COVID-19. Deltell worried that they spent the cupboard bare, to which Trudeau reminded him that the Conservatives cut services to veterans and other vulnerable groups while his government has room to manoeuvre. Pierre Poilievre took over in English and listed a number of false metrics around our economy and the state of the deficit, to which Trudeau repeated his answer. Poilievre listed some cherry-picked facts about Conservative budgets, and Trudeau noted that the Conservatives neglected to invest in Canadians. Poilievre then listed a number of disingenuously framed investments by the current government, and Trudeau listed the ways in which Conservatives cut services for Canadians. Yves-François Blanchet was up for the Bloc, and he worried about poor seniors, to which Trudeau listed the measures that his government has taken to date. Blanchet repeated his demand to increase seniors’ purchasing power, and Trudeau reiterated that they have taken plenty of measures. Peter Julian led for the NDP, and he worried about measures for vulnerable workers in the gig economy, to which Trudeau assured him that they would be announcing new measures. Jenny Kwan forcefully read a demand to delay cruise season, to which Trudeau stated that they were working with provinces and sectors to support them in difficult times.

Continue reading

Roundup: The crash and the cries for stimulus

It was a tough day on the markets yesterday as stock markets plunged at record levels over panic-selling because of COVID-19, and oil prices cratered while Saudi Arabia and Russia got into a pissing contest. Bill Morneau held a post-market-closing press conference to assure Canadians that there was fiscal room to deal with the situation, but he spoke in frustrating platitudes and generalities as he so often does (because this government is largely incapable of communicating their way out of a wet paper bag), but it needs to be acknowledged that his budget challenge has become a lot more complicated, particularly as the oil shock is going to impact federal revenues as well as Alberta’s. But seriously, the whole Conservative “spent the cupboard bare” narrative is bogus and economically illiterate, and they are actively spreading misinformation about it.

https://twitter.com/kevinmilligan/status/1237104005425139712

Around the same time, Jason Kenney held his own press conference, saying that all options were on the table for dealing with the downturn on the province’s economy – and then immediately ruled out a sales tax, which would stabilize the province’s revenues. Because that might make sense. Rachel Notley says that he should scrap the budget and re-do it, given that its assumptions are now proved to be useless, but other economists say it’s likely not worth it at this point, and it would be better to have a fiscal update in the near future.

And then come the demands for some kind of fiscal stimulus plan, but one of the things they’re pressing is that measures need to be timely. Maclean’s talks to four economists about what they think such a plan could look like for the best impact.

https://twitter.com/kevinmilligan/status/1237235733762473984

Continue reading

QP: The fiscal firepower is there

Monday, and major news happening regarding the country’s economic fortunes, but most of the party leaders were absent — Justin Trudeau returning from an event in Toronto, and Andrew Scheer elsewhere. That left Leona Alleslev go lead off, worrying that the country was hurtling toward recession as the stock market crashes before COVID-19. Chrystia Freeland assured her that the government had the fiscal firepower to withstand any downturn and would have measures to help people affected by the virus. Alleslev falsely stated that the economy was grinding to a halt, and concern trolled about Berkshire Hathaway pulling out of a Quebec LNG project, to which Freeland assured her that the government supports the resource sector and that planned projects and those under construction were up from the previous year. Alleslev tried one more time to rail about the state of the economy, and with a very measured tone, Freeland warned her against cheap partisan shots. Gérard Deltell stood up next to repeat the question about the Quebec LNG project, and Freeland repeated that they supported resource projects and there was record private sector investment. Deltell tried again, tying in the rail blockades, but Freeland was undaunted and repeated her response. Alain Therrien led off for the Bloc, and he demanded compensation for the “collateral victims” of the railway crisis, to which a Freeland read that while the blockades did cause problems, they needed to find a lasting solution to the problem through dialogue, and that’s what they’ve been doing. Therrien demanded the government take harder actions at the border regarding COVID-19, to which Freeland explained that there is a global approach, and that they were doing everything in their power to protect Canadians. Jagmeet Singh was up next and demanded help for a Canadians who need to self-isolate, to which Freeland listed EI measures they have taken, and that they are preparing further measures. Singh then falsely claimed that the government cut healthcare to provinces, for which Freeland regaled the House with her visit to Sunnybrook Hospital in Toronto, and that they were coordinating bulk supply purchases with the provinces.

Continue reading

Roundup: Caution – plummeting oil prices

Oil prices started plummeting Sunday night as a price war opened up in the midst of declining demand due to the COVID-19 outbreak, and this is going to have a huge impact in Canada, not only with Alberta and Saskatchewan, but most especially with Newfoundland and Labrador, whose government relies very heavily on resource revenues. Add to that, this is going to put even more pressure on Bill Morneau and the federal government when it comes to how to deal with reforming fiscal stabilization in the upcoming budget, particularly if it’s also going to mean any kind of rebate for previous years’ stabilization (as Jason Kenney in particular has been demanding, under the misleading term of “equalization rebate,” even though it’s no such thing).

This may also touch off a new round of blaming Justin Trudeau for Alberta’s woes, when the oil prices are going to make things so, so much more painful for the province as they budgeted a ludicrously high amount for oil revenues. One might suggest that it would be a good impetus for the province (and the federal government) to redouble efforts toward diversification and a “just transition” away from the oil economy in that province, because the hopes for “just one more boom” get even further away, or even for the province to finally reform the revenue side of its equation and finally implement a modest sales tax that would stabilize its finances – but I have a feeling that Kenney won’t even contemplate those things. Blaming Trudeau is too easy, and lying to the public is so much easier.

Speaking of lying to the public, as certain other political figures fill the op-ed pages with a bunch of bullshit about how Alberta is “treated like a colony” as the Buffalo Declaration did (and no, I won’t link to the egregious op-ed in question), here is a great thread from professor Melanee Thomas as to why that kind of comparison is not only wrong, but wrong to the point of being actively racist.

Continue reading

Roundup: Hurt feelings and punitive lessons

There is a vote coming up on Monday, when Parliament returns from the constituency week, which is on the Conservatives’ Supply Day motion to allot the opposition an additional three Supply Days, which the Conservatives are trying to spin as a “lesson” for the Liberals, because they apparently haven’t gotten the memo that it’s a hung Parliament. Also, the Conservatives’ feelings are hurt that their previous Supply Day was moved from a Thursday to a Friday, and they feel like it was being done as “punishment.” Never mind that the rules allow the government to allot a certain number of Supply Days to Wednesdays and Fridays (which are half days), and every government has monkeyed around with Supply Days in the past – most especially the Conservatives.

To that end, I find it particularly galling that Candice Bergen thinks that the Liberals need to take some lessons in humility because it’s a hung parliament, considering how the Conservatives behaved during the minority years. Humility? Conciliatory note? Nope. It was daring the opposition, declaring non-money bills (some of them in the Senate) to be confidence measures, screwing over the other parties by changing the federal rules governing spending limits on leadership campaigns while the Liberals were in the middle of theirs, and it culminated in a finding that the government was in contempt of parliament because of how they were withholding information that parliamentarians had a right to see.

Meanwhile, I would also issue the warning that this kind of stunt, which will further limit the government’s available calendar, will inevitably wind up with the government needing to use time allocation or other similar measures in order to pass time-sensitive legislation. Bergan may think she’s being clever by using these kinds of tactics, but this kind of thing always blows up in someone’s face, and nobody wins in the end.

Continue reading

Roundup: Pallister makes a gamble

Manitoba premier Brian Pallister announced yesterday that he was going to implement a carbon price after all – sort of. In a dare to the federal government, Pallister says he’ll stick with his originally planned $25/tonne price, and not raise it like he’s supposed with the rest of the country, but he would also reduce the province’s PST to compensate. Revenue neutrality can be a very good thing, but the point of having a common carbon price across the country is to have a level playing field so that provinces don’t undercut one another – which Pallister frequently ignores as he instead battles straw men about the efficacy of the province’s environmental plans (many of those mentioned having nothing to do with reducing GHGs).

While Pallister is confident that the Supreme Court of Canada will rule against the federal government on the upcoming carbon price challenges – which is a pretty risky gable to take – he’s daring the federal government to do what they said they would, which is to continue making up the federal carbon price with a separate carbon levy on top of the provincial one, which would continue to be rebated to taxpayers by the CRA. None of this makes much sense as a strategy other than the fact that it lets him proclaim that he’s lowered the PST in order to get the plaudits for that.

Meanwhile, here’s Dylan Robertson with some additional context:

Continue reading

Roundup: Putting Freeland on the case (again)

With more attention turning to what’s happening around COVID-19, prime minister Justin Trudeau has created a new Cabinet committee to handle the situation, and he’s put Chrystia Freeland in charge of it. An important addition to the committee is Kirsty Duncan, who may no longer be in Cabinet but is nevertheless sworn in as a privy councillor, and the fact that she has expertise in pandemics and once studied the Spanish Flu epidemic, so chalk one up for bench strength there. Freeland says the response has to be both “whole of government” and “whole of country,” and her role as intergovernmental affairs minister is certainly part of that – given that provinces deliver healthcare for the bulk of the country – but one suspects this is also about having a reassuring communicator on the issue (because as we all know, this government can’t communicate its way out of a wet paper bag).

To that end, while certain opposition voices are demanding travel restrictions (which are proven not to work) or enhanced screening measures at airports, what we’re hearing from the health minister and the Chief Public Health Officer is largely that containment can only delay an outbreak – which is not a bad thing, because if it can be delayed by six weeks or so, that would get our healthcare system past peak flu season, which frees up beds and resources. And thus far, we have been lucky that all of the cases in this country can be traced to travel-related causes and not community transmission, which means that the measures taken to date have been working, but again, delay is the watchword. It should also be noted that we have largely avoided panic, which is pretty good (torqued headlines about demanding people start stockpiling notwithstanding).

With that in mind, the military has been ordered to being pre-pandemic planning out of an abundance of caution, given that they need to be able to continue to operate in the case of a crisis.

Continue reading

Roundup: Party positions and individual agency

The weaponization of private members’ business continues unabated in Parliament, as the Conservatives put out an attack yesterday that claims that the Liberals want to “legalize” hard drugs because maverick backbencher Nathaniel Erskine-Smith tabled a private members’ bill that calls on the decriminalization of small personal amounts in order to better treat addiction as a public health issue and to not criminalize people with addictions – something that has worked in some countries. The lie, of course, is both in claiming that this was official government policy, and that it was calling for legalization – because who cares about truth or facts when there is fear to be mongered?

The bigger problem here? What it does to how private members’ business is treated in the House of Commons, and more to the point, there is a very big potential for this to blow up in Scheer’s face because of Cathay Wagantall’s sex-selective abortion bill currently on the Order Paper. And yes, let’s not be obtuse about this – the media feeds this particular weaponization, both in how they made this kind of abortion bill an Issue during the election, and how we both demand that MPs be both independent and yet castigate the leader for “losing control” when any MP shows any glimmer of independence. (And for the record, Scheer has not said anything about Wagantall’s bill, other than to have his spokesperson say that he “discouraged” such bills).

https://twitter.com/althiaraj/status/1234901634272178182

I know that everyone is going to be cute about these bills, and how if they get tabled the party “must” support the position because everything is so centrally controlled, and so on, but this is part of what poisons the system. Insisting that everyone be marching in lockstep from other parties ensures that the same insistence is made about your own party, and it removes any agency from MPs. They’re MPs, not gods damned battle droids. If we want drones to simply read speeches into the record and vote according the leader’s office, then why do we even bother with MPs? Why bother with parliament at all? The Conservatives’ release is embarrassing, and they should be ashamed of themselves for it (which of course would imply that they’re capable of shame, but I have my doubts about that one too).

Continue reading

Roundup: Rights, title, and ratification

We got a few more details yesterday about the agreement reached with the Wet’sutwet’en hereditary chiefs on Sunday, despite a few TV hosts somewhat obtusely demanding to know what it meant for the Coastal GasLink pipeline – despite the fact that it was stated over and over again that this agreement did not have anything to do with that, and that the matter was unresolved. The crux of the agreement was an agreement on how rights and title would be extended for the Wet’suwet’en going forward, meaning that with any future projects, there would be clarity as to who would need to be consulted – which means the hereditary chiefs – and given the new impact assessment process that the Liberals instituted (under the infamous Bill C-69), those consultations begin at the earliest possible moment for these project proposals so that affected First Nations can be brought in from the get-go. What I found especially interesting was that Carolyn Bennett said that this was in accordance with UNDRIP principles, as free, prior and informed consent (which again she stressed was not a veto). And one imagines that this kind of agreement would be a template for others when it comes to unceded territory across the country.

As for Coastal GasLink, work apparently resumed on aspects of the project, but given that some of their permits were pulled by the province’s environmental assessment agency with a demand for more consultations, one supposes that the work is on areas that are outside of Wet’suwet’en territory. Meanwhile, one of the elected chiefs who is in favour of the project was doing the media rounds in Ottawa yesterday, and he said that while his people were discussing the ratification of the new agreement, he said that he was also willing to give up the economic benefits of the pipeline is that was what his people decided that they wanted as part of those discussions. We do know that matriarchs who were in support of the project were also in the meeting between Bennett, her BC counterpart and those hereditary chiefs, so the discussion within the community is very much alive, and we’ll see in a couple of weeks when the ratification process is supposed to be concluded, what the future holds for the pipeline.

Continue reading

Roundup: An agreement, and a start to further discussions

On the fourth day of negotiations, federal Crown-Indigenous Relations Minister Carolyn Bennett, her BC counterpart, and the Wet’suwet’en hereditary chiefs have come to an agreement regarding land title rights for Wet’suwet’en territory, which has been an open issue for decades. It will need to be ratified by the Wet’suwet’en nation after a period of consultation, but it is a step. This does not, however, completely solve the issue with the proposed Coastal GasLink pipeline – the vocal group of hereditary chiefs remain opposed (while those in the community who support the project feel they aren’t being heard), but this remains an issue where the community needs to come together and use the feast system under their laws to resolve these disputes, which hasn’t been happening. It will also require further discussions with the RCMP about their operations in their territory, but again, there seems to be some progress made.

Meanwhile, a discussion among legal experts is ongoing regarding the efficacy of using legal injunctions when there are land rights protests going on, because they can be too much of a blunt instrument. Some are suggesting that the injunctions be structured to allow for mediated consultation instead of heavy-handed orders to stop their protests, as has been done in some provinces when it comes to labour disputes. And a prime example of something unhelpful is the bill recently tabled in Alberta to further penalize protesters with heavy fines (which is already likely unconstitutional), but there does seem to be a definite mindset behind that kind of legislation.

Continue reading