QP: Panic at the passport office

While the prime minster was in town, he was not present for QP, though his deputy was. No other leader was present either, for what it’s worth, and we did learn later in the day that Candice Bergen tested positive for COVID earlier in the week, and has been isolating. Before things got started, the Deputy Speaker returned to what happened yesterday regarding unparliamentary language, and said that reviewing the tapes found no definitive proof if the prime minister actually said anything amidst the noise, but he did hear unparliamentary things on both sides, and he cautioned MPs that it was not acceptable. He also noted that the question on abortion from Sophie Chatel did not have to do with the administrative responsibilities of the government, and such questions will be disallowed in the future. (Famous last words…) He also asserted that for those whose blood pressure is running a little high, it was a beautiful day outside and they should go take a walk.

Luc Berthold led off, worrying about delays at passport offices, and asserted the solution was to have civil servants back at work in their offices. Chrystia Freeland noted that they understand their responsibilities to Canadians, but she could not agree that everything was going wrong in Canada, and the IMF praised our growth. Berthold carried on with the complaints about delays, and again demanded civil servants go back to their offices. Freeland thanked civil servants for their efforts, and that she knew they worked diligently. Berthold insisted that Canadians expected service from civil servants, and once again demanded that civil servants return to their offices. Freeland again repeated that civil servants do exceptional work. Michael Chong took over in English, and worried about another court challenge against Line 5 in Michigan—ignoring that the challenge is coming from Indigenous groups—to which Freeland assured him that they understand the importance of Line 5 and that the government was standing up for our rights including treaty rights with the US. Chong wondered why Canada was in court to fight this challenge, and Freeland repeated the assurances that the government was on the case.

Claude DeBellefeuille led for the Bloc, and she repeated this week’s demand that the federal government turn over the responsibility for immigration to Quebec. Freeland recited the government’s lines that Quebec sets their own targets and that the federal government supports them. DeBellefeuille was not mollified, and repeated the demand, and Freeland repeated her assurances, with a few added figures to quote.

Jenny Kwan rose for the NDP, and she cited the MMIW inquiry listing housing as a contributing factor, blasting the government for not having a dedicated housing strategy for Indigenous women and two-spirit people. Freeland first recognised that today is Red Dress day, and that they agreed that housing is a problem and part of the solution, which is why it was a central part of the budget. Niki Ashton took over, and demanded immediate action in the MMIW inquiry’s calls to justice, and insisted it wasn’t in the budget. Freeland repeated her initial acknowledgment of the day in French, before returning to English to correct that there were investments in this budget.

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Roundup: Words with meanings and obligations

We’re now around day fifty of Russia’s invasion of Ukraine, and four European presidents—Poland, Lithuania, Latvia, and Estonia—visited Kyiv to show their support yesterday. (Some photos of Ukraine here). Ukrainian forces also detained one of Putin’s oligarch allies, which has led to a new round of threats from Russia. The other thing that will make Russia angry? The fact that the Ukrainians sank Russia’s flagship for their Black Sea fleet—the same ship that fired upon the border guards at Snake Island. It’s almost poetic justice.

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Meanwhile, we are getting into a frustrating debate about whether or not to call what’s happening in Ukraine a genocide, and what makes it frustrating is the fact that there are international obligations to do something about it if that’s indeed the case. There is no argument that there are crimes against humanity happening, and those are very, very serious. But “genocide” is a specific legal term with specific intent, and for President Biden to throw the word around and saying that lawyers can sort out the details later isn’t helping, when the term obligates the US to do something about it (which they have danced around in the past because they don’t want to be obligated). And then Justin Trudeau chines in and says it’s “absolutely right” to use the term, which would then obligate Canada to do something about it as well. But we need to stop using the most serious language for things for shock value, because words have meanings, and in this case, obligations as well.

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Closer to home, the Bank of Canada raised its key interest rates by fifty basis points, and has hinted that more rate hikes are on the way, as they have to not only combat inflation with the only tool they have, but they have to fight the perception that they aren’t doing enough to cool inflation (and that latter part is the bigger part of the problem). I’ll be writing more about what’s in the Monetary Policy Report in the coming days, but in the meantime, here are some smart economists giving some reaction.

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Roundup: Sanctions take time to really bite

It’s now around day forty-nine of Russia’s invasion of Ukraine, and it’s carrying on as Putin insists that they will continue until they meet their goals. This as there are unconfirmed reports that chemical weapons were used in an attack in Mariupol, while Russian spokespeople from Donbas were discussing the possibility. That could lead to another escalation in sanctions, and talk of “red lines,” though that didn’t seem to do much good when it happened in Syria. The mayor of Mariupol says that more than 10,000 civilians have been killed as the strategic port city continues being flattened by Russian forces. Ukrainian government officials also say that they have thwarted an attempt by Russian hackers to knock out power to parts of the country, and it’s worth noting that Canada has been providing cyber-security assistance to Ukraine.

On the subject of sanctions, there are lots of questions circulating about how effective they really are if the invasion continues, and it’s one of those things for which it’s not an easy answer. Yes, they’re hurting Russia, but Putin and his inner circle seem fairly insulated from some of the worst of it, in part because they managed to stop the ruble from collapsing entirely. That makes it even more imperative to provide military support to Ukraine so that they can defeat Russia on the battlefield, which will hurt Putin more. This doesn’t mean that we shouldn’t carry on with sanctions, because we should, but they’re at the point where they are hurting us as well, and we had Conservatives demanding exemptions for farmers last week who bought fertilizer from Russia before the conflict began and now don’t want to pay the tariffs associated. But for sanctions to be effective, they will hurt us as well, and people seem to forget that.

As well, this conflict is now going to have an effect on inflation globally, because of the effect of diverting from Russian oil and gas, and from the effect this war has on Ukraine’s ability to produce and export food, as the breadbasket of Europe. Of course, it’s going to continue to be blamed on government spending (never mind that it actually isn’t, and this is a global problem), and the Bank of Canada is going to hike rates this week if only because they need to be seen to be doing something about the problem even if it won’t actually address the root causes of these price increases. Things are messy, and it’s going to take time for everything to work itself out, but what will really help is for Russia to get out of Ukraine.

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Roundup: Trudeau confirms that there are to be strings attached

It’s around day forty-eight of Russia’s invasion of Ukraine, and it appeared to be a fairly quiet day. Well, as quiet as can be in a country where two-thirds of its children have been forced to flee their homes in the past six weeks, which creates plenty of problems for their safety and security as they may be exploited in the confusion. Meanwhile, Russia has tapped a new general to lead its forces in Ukraine, and he’s one with a reputation of particular brutality in leading the Russian troops that acted in support of Syrian dictator Bashar al-Assad, leaving a trail of civilian deaths and human rights violations in his wake. As well, Austria’s chancellor met with Putin, the first European leader to do so since the invasion, and tried to convince him to end the invasion, but he walked away from the meeting without any optimism that the war will end anytime soon.

Closer to home, prime minister Justin Trudeau has confirmed that he’s looking to have strings attached to future health care funds from the federal government, because he’s well aware of the history of provinces that have taken more federal dollars and used them on other things, including tax cuts, and the healthcare system has been left to suffer. Which is the way it should be—if the federal government is giving you money for healthcare, it should be used for just that, and no, that doesn’t mean they’re micro-managing, it means they want accountability for the money they send.

We also got confirmation that provinces are dishonestly ignoring the fact that the agreement in the 1970s to transfer tax points to the provinces in lieu of health transfers. They continue to insist that the federal government only funds 22 percent of their health care systems, but with the tax points, it’s over 33 percent, which is not insignificant considering that provinces are demanding the federal government fund the systems to at least 35 percent—a 35 percent that they don’t count the tax points under. They need to count those tax points, and government and media need to make that clear, rather than media just repeating the premiers’ talking points and both-sidesing it.

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Roundup: Faux concern over a decades-old system

We’re now on or about day forty-seven of Russia’s invasion of Ukraine, and Ukrainian forces are digging in and preparing for a renewed Russian offensive on the eastern and south-eastern portions of the country. UK prime minister Boris Johnson visited with president Volodymyr Zelenskyy in Kyiv over the weekend, to show his support and solidarity in person. Elsewhere over the weekend, Ukraine was trying to ensure humanitarian corridors out of the Donbas region for Ukrainians to evacuate in advance of the coming Russian onslaught in the region.

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Closer to home, we are being subjected to a bunch of nonsense around Canadian content regulations in the context of Bill C-11, which updates the Broadcasting Act to now include streaming platforms like Netflix or Disney+. The particular nonsense? The notion that the CRTC will define what qualifies as Canadian. Erm, except they have been doing this already. They’ve had a well-defined point system for what counts as CanCon since 1984. Nineteen gods-damned eighty-four. This is not new. Extending broadcast regulations to streaming platforms changes absolutely nothing about what counts as Canadian content, because the rules are platform neutral. For decades, production companies needed a 6/10 on the CanCon scale to qualify for tax credits. None of this is new.

The problem, however, is that in the debates over C-11 (and its predecessor in the previous parliament, Bill C-10) you had Conservative MPs trying to make this an issue (and Rachael Thomas, who was then Rachael Harder, was particularly vocal about this). She kept trying to propagate this insane notion that somehow these rules should be in the legislation, which is bonkers because that shouldn’t be the job of Parliament, nor is legislation responsive in the way that regulation is. We have arm’s-length regulators like the CRTC for a reason, which is to de-politicise these kinds of decisions. Sure, everyone comes up with supposedly scandalous examples of why certain things which may sound Canadian on the surface isn’t considered Canadian under the CanCon rules (such as The Handmaid’s Tale series), and it’s only until you look at the points system and think through the rules that you realise that these examples really aren’t that scandalous. The whole point is to ensure that our industry isn’t just a branch plant for American productions who can do it cheaper and get tax credits up here. It’s to ensure that there are incentives for things that are actually Canadian-led and produced, and under Canadian creative control, to get made. You can argue that the rules need to be updated, but let’s not pretend that there is anything new here (and really, The Canadian Press deserves a rap on the knuckles for this kind of framing of the issue).

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QP: Selectively quoting a PBO report that selectively frames an issue

With Justin Trudeau away—first to Mississauga to announce the child care deal in Ontario along with his deputy, then off to Vancouver, none of the other leaders bothered to show up in the House of Commons for Question Period today, so happy Monday to you all. Luc Berthold led off, script in front of him, and in French, he regaled the Commons with a tale of how people approached him in the grocery store about complaints about the rising cost of living, and demanded to now how the prime minister intends to feed Canadian families. Randy Boissonnault accused him of creating economic fiction, and recited Statistics Canada data on the growth of the GDP. Berthold railed about the price of gas and what it was doing for inflation, to which Boisonnault praised the child care agreement with Ontario as an affordability measure. Berthold then switched to health care transfers to provinces and the principles the government were attaching to them, to which Jean-Yves Duclos praised their measures to save Canadians’ lives. Kyle Seeback got up and in English, railed about the Parliamentary Budget Officer’s report on carbon prices, selectively quoting a report that only selectively looks at a portion of the issue, to which Terry Duguid assured him that the PBO stated that most families will get more back in rebates than they pay. Seeback insisted this was wrong, that the PBO stated otherwise, and Duguid repeated his points.

Alain Therrien rose for the Bloc, and he demanded that health transfers have no conditions and blamed the federal government for underfunding provincial health systems, and Duclos recited some good news talking points about the $2 billion for surgery backlogs. Therrien listed federal failures to insist that they had no competence for healthcare, to which Pablo Rodriguez quipped that the Bloc should invest in shirt-making companies because they keep tearing their shirts every day.

Alexandre Boulerice appeared for the NDP by video and wondered about enforcement of sanctions in Canada, to which Mélanie Joly praised the sanctions and the assets that they froze. Heather McPherson repeated the question in English, and Joly repeated her assurances.

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Roundup: Asking the parochial questions

On day fifteen of Russia’s invasion of Ukraine, they bombed a children’s hospital in Mariupol, at a time that it was supposed to be under a ceasefire. And it’s not surprising that Volodymyr Zelenskyy is still insisting on “closing the skies,” but that wouldn’t stop the shelling from artillery and missile batteries on the ground, and yes, it would draw the rest of NATO into a shooting war with a nuclear power. So while he’s justified in asking for the assistance, it would not actually improve the situation and would most likely wind up making things a whole lot worse. To make matters worse, a power outage at Chernobyl means that it could start leaking radiation unless power lines are repaired, which requires a cease-fire in the area, so that’s alarming. And all of the chaos is making it hard for aid efforts, including those by Canadian non-profits to reach those in the country who need it.

Justin Trudeau, Chrystia Freeland, Mélanie Joly and Anita Anand were in Berlin yesterday for more meetings on the situation in Ukraine, and Trudeau vowed that Putin would face justice for his war crimes under the International Criminal Court. He also announced another $50 million worth of military aid being sent to Ukraine, and that he had invited Zelenskyy to address Canada’s Parliament, much as he did the UK’s earlier this week. On a related note, NATO Secretary-General Jens Stoltenberg addressed the Ottawa Defence Conference yesterday and said that while Canada is playing a “leading role” in NATO’s response to the invasion, he is still calling for more military spending (which may not do any good given that our military doesn’t currently have the capacity or personnel to spend its current allotment).

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And then, during a media availability with Freeland and Joly, a CBC reporter demanded to know why they were in Europe for “photo ops” rather than doing important work back home. And I can’t even—especially when he went on about the “taxpayer’s dime” when he tweeted about the exchange, trying to make himself sound put out by being smacked down about it. Aside from the “people are saying” framing, which is both ridiculous and telling, I’m not sure what pressing matters they should be attending to back home. The Commons is on March break this week and next. It’s just such parochial bullshit and the kind of cheap outrage/hairshirt parsimony that the CBC loves to engage in, and we wind up with poorer journalism as a result.

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Roundup: A growing humanitarian crisis

We are now on day fourteen of Russia’s invasion of Ukraine, and some of the big concerns are the growing humanitarian ones—not only the inability to safely get civilians out of cities under bombardment, but the fact that in some of those cities, particularly Mariupol, people are trapped with no electricity, little food, running water, or medical supplies. Meanwhile, president Volodymyr Zelenskyy addressed the British Parliament via video, and called on them for even tougher sanctions against the “terrorist state” Russia. The US has decided to ban all Russian oil and gas, while corporations like McDonald’s and Starbucks have decided to suspend operations in Russia (though more likely because the ruble is nearly worthless and not something they want to be doing business in).

Justin Trudeau was in Latvia for NATO meetings, where he announced that Canada’s mission there would be extended for several more years. NATO Secretary General Jens Stoltenberg also made the point of warning Russia against attacking any supply lines supporting Ukraine within NATO territory, citing that it would trigger Article 5. Poland also floated the idea of sending fighter planes to a US/NATO base in Germany to then somehow send to Ukraine, but the Pentagon nixed the idea as unworkable.

All of this talk, of course, leads to yet more questions about military spending in Canada, and that “two percent of GDP” target, which is a very poor metric.

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QP: Support for Ukraine, but what about “ethical oil”?

While the prime minister was around, and would give a press conference after QP, and make a statement in the Chamber later in the evening, he was not present for QP itself, though his deputy was. Candice Bergen led off, saying that many of the country’s actions were too little too late and demanded the expulsion of the Russian ambassador and to recall ours from Moscow—because they believe diplomacy is a cookie for good behaviour. Chrystia Freeland rose to say that Canadians were united, and that this was about freedom versus tyranny, but didn’t address Bergen’s demand. Bergen said she agreed with the sentiments, and wanted visa-free travel for Ukrainians to Canada, and Freeland rose to address the previous question and noted that there were Russian officials who stood against the regime and she urged those officials in Canada not to be complicit, and said all options were on the table. Bergen demanded that the country end its “dependence” on Russian oil—of which, vanishingly little actually flows into this county—and to send Canadian oil to Europe. Freeland noted that the sanctions on Russia are having an effect, and hurting their oil exports was one way. Luc Berthold took over in French to demand the expulsion of the Russian ambassador, and Freeland took the opportunity to repeat her initial statement about unity in French. Berthold then repeated the demand for visa-free travel, and Freeland recounted news from her own family in Ukraine who decided to stay and fight, and that Canada would support them as well as those fleeing.

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Alain Therrien led for the Bloc, and he gave a paean to the bravery of Ukrainian people, and pledged Bloc support to the government’s actions, and wondered what else they could do to help. Freeland recited her talking points about sanctions hurting “Fortress Russia.” Therrien asked if they can waive visas or take other actions, and Freeland noted that they have already started to welcome Ukrainians, including those currently in Canada and unable to return home.

Alexandre Boulerice led for the NDP by video, and after a false start, and demanded Canada do more to help Ukrainian refugees, to which Freeland assured him they were already doing so in a united fashion. Jenny Kwan took over in English to make the same demand, and Freeland spoke of her pride in the brave resistance of Ukrainians, and said that of course they were helping Ukrainian refugees with more details coming soon.

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QP: Back to inflation

After a number of statements about Black History Month, things got underway, with almost none of the leaders present—Justin Trudeau is still isolating and not planning to attend virtually, and Erin O’Toole has other problems to worry about. Gérard Deltell led off in his stead, worrying about inflation and cited the PBO’s concerns about stimulus spending as though government spending is what’s driving inflation (which it is not). Chrystia Freeland worried that the Conservatives were talking down the economy, and countered it with the good news about the GDP figures that showed complete recovery in advance of omicron. Deltell dismissed this as being cold comfort for the average person, for which Freeland insisted that this was just Deltell focusing on the Conservatives’ partisan interests, and recited that we are projected to have the second highest growth in the G7. Deltell insisted this was “contempt” for Canadians, and Freeland insisted that she does her own grocery shopping, and that facts and data are important and that inflation in Canada is beneath the G7, G20 and OECD averages. Michelle Rempel Garner took over in English to accuse the minster of being out of touch, and Freeland suggested that it was the Conservatives who should apologise for voting against Bill C-2 that are helping support those affected by mockdowns. Rempel Garner called the government out of touch with average Canadians and were fuelling divisions, and told Freeland to “take the temperature down,” and Freeland repeated her response about the supports in C-2.

Yves-François Blanchet rose for the Bloc, and he dissembled for a while before demanding action on the grifter convoy outside. Omar Alghabra stated that he has met with those in the supply chain including the trucking industry and that they would continue moving forward. Blanchet noted that wasn’t his question, and repeated it, for which Freeland thanked him for supporting C-2, and that she agreed that it was important for them to be able to do their work, which is why they trust law enforcement. 

Jagmeet Singh appeared by video, and asked about the blockade at the Coutts border crossing in Alberta and demanded federal action. Alghabra agreed that the blockade needs to end. Singh switched to French to lament housing affordability, and Ahmed Hussen recited this talking points on the National Housing Strategy and the first-time home ownership programme. (Note that shortly after this question, the RCMP moved in on that Coutts blockade and broke it up, for which I half expect Singh to take credit for).

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