QP: You should read a book or two

While the prime minister was in town, he was not in Question Period today, but his deputy was, so all was not lost. Candice Bergen led off, script in front of her, and she went off on inflation, accusing the finance minster of printing money so that she never runs out of bucks to pass. Chrystia Freeland read contradictory statements from different Conservative and wondered who was right. Bergen selectively quoted economists to assign blame for inflation. Freeland quoted former Bank of Canada governor Stephen Poloz that government spending is not the problem. Bergen was apoplectic and demanded federal action on inflation, to which Freeland again quoted Poloz, and then suggested the Conservatives read a book or two. Alain Rayes took over, and asked about the labour shortage in Quebec. Marco Mendicino, even though it’s no longer his file, reminded him they have been working with Quebec and hit a record high of temporary foreign workers. Rayes went another round, and got the same.

Luc Therrien led off for the Bloc, and raised the Environment Commossioner’s report, and then demanded the government cap the production of fossil fuels. Stephen Guilbeault appeared by video, and reminded him that the Commissioner’s report didn’t capture several new programmes from the government. Therrien was not mollified, and in response, Guilbeault listed measures they have taken that no other government has taken.

Don Davies rose for the NDP, and demanded that the government support lifting patent restrictions on vaccines manufacturing to help the developing world avoid new variants. Harjit Sajjan read about the government’s vaccine donations. Niki Ashton repeated the question in French over video, and François-Philippe Champagne reminded her of Canada’s support for COVAX and other initiatives to deliver vaccines.

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Roundup: Some more inflation fact-checking

Because you know it’s going to come up yet again during Question Period today and through the rest of the week, here are a couple of reality checks around inflation, first from former Bank of Canada governor Stephen Poloz, who will give you all of the reasons why the pandemic spending and stimulus is not what is causing the current bout of transitory inflation.

Next, from economist Stephen Gordon:

So when Erin O’Toole and Pierre Poilievre start sounding off on inflation again, I know whose economic judgment I’ll be listening to (and it won’t be theirs).

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QP: Insufficiently tough about softwood lumber

A single day after the prime minister took all of the questions, he was too busy with “private meetings” to return for a second day in a row, but his deputy was present, so hopefully it would be okay after all. Erin O’Toole led off, script on his mini-lectern, and he moaned about the higher softwood lumber tariffs and called the prime ministers a “pushover.” Chrystia a Freeland read that she was extremely disappointed by the unfair and unwarranted decision by the US, that Trudeau did raise it in Washington last week, as did she, and that it was fuelling America’s inflation. O’Toole accused the Liberals of selling out workers, for which Freeland reminded the Commons that O’Toole publicly called on the government to drop retaliatory measures against other American tariffs, which Canada won. O’Toole then raised the threats over PEI potato exports, and Freeland said she would leave it up to Canadians to judge their successes with the New NAFTA and the 232 tariffs, before she pivoted to addressing PEI farmers, reminding them that she grew up on a farm too, and she was working to resolve the situation. O’Toole then switched to French, and said the government was racking up failures, for which Freeland reiterated that they have been trying to resolve the softwood lumber situation. O’Toole raised the issue of inflation, and Freeland reminded him that this is a global phenomenon as a result of economies restarting, and the government was working to help Canadians.

Alain Therrien led for the Bloc, and demanded that all health transfers be given to provinces without strings, and Freeland assured him that they wanted to work with Quebec. Therrien demanded a public summit with premiers, for which Freeland reminded him of the support they sent to Quebec during the pandemic.

Jagmeet Singh rose for the NDP, and he demanded immediate action on the climate crisis and an end to fossil fuel subsidies, and Freeland stated that she agreed that climate action as urgent and essential and that those subsidies would be phased out next year, and that a raft of independent experts judged the Liberal plan the best. Singh repeated the question in French, and got much the same response. 

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Roundup: Nothing unexpected in the Speech from the Throne

In amidst all of the pomp and ceremony, there was very little that was unexpected out of yesterday’s Speech from the Throne, where Governor General Mary May Simon read the government’s planned agenda, talking about the fact that the pandemic is not yet over, and making high-level promises around climate action, reconciliation, and a nod to the rising cost of living. In a little over half an hour, it was over, and MPs returned to the House of Commons.

Two media narratives largely dominated the coverage the rest of the day: 1) this is basically the election platform, which erm, hello, is pretty much the point, and putting something shiny and new in there while in a hung parliament would be difficult and asking for trouble; and 2) daring the opposition parties to bring down the government, which they won’t do, but reporters will ask leading – if not goading – questions all the same. And because of the requisite chest-thumping that goes along with a hung parliament, we saw both the Conservatives and NDP talking tough about not supporting it (well, the NDP said that the Liberals shouldn’t take their votes for granted even though they pretty much can because the NDP are in no shape to back up their words), and the Bloc essentially acknowledging that they would support it because of course they will. Nobody is going to bring the government down over this and go to another election (because no, there is no other possible government formation possible with the current composition of the Chamber), so the Liberals will pass this, and their fall fiscal update, and one or two of the bills on their priority wish list before they rise for the holidays, and the Conservatives and the NDP will huff and puff about it, but that’s about as much as will happen.

Once the speech was over, the Conservatives immediately launched into a renewed round of procedural shenanigans once they got back to the House of Commons, and before Erin O’Toole read his response to the Address in Reply to the Speech from the Throne. First it was a point of privilege on the unresolved issue from the previous parliament on the Winnipeg Lab documents, in spite of the fact that the committee that wanted them doesn’t exist and the order they made also no longer exists. Then they went after the Clerk and the scurrilous allegations of partisanship (which, according to everyone I’ve spoken to – including Senate Conservatives – is ridiculous and office politics run amok in the House of Commons’ administration). The Speaker tried to cut that off, insisting that it should be dealt with at BoIE, especially as the Clerk cannot defend himself in the Commons, but they kept going after it, which is poor form and a signal that they want blood and they don’t care if they hurt the Clerk in the process. And after that, it was the vaccine mandate and the use of the Board of Internal Economy, demanding a vote on it – erm, which would just expose those who object to said mandate and tar those who object to the procedural use of the BoIE with the same brush, which seems politically foolish to me, but what do I know? (Affirming the vaccine mandate is part of the Liberals’ omnibus motion that would also restore hybrid sittings, for what it’s worth).

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Roundup: A refreshed Cabinet for a new parliament

So, that was the big Cabinet shuffle. It was extensive, and we saw three ministers dropped entirely (not the first time), a few promotions, a few demotions, and a lot more hybrid and chimeric ministries which will make governance a challenge to say the least. Nevertheless, here we are. Some observations:

  • This was not a new Cabinet or ministry – this was just a shuffle. It’s also not a third term or mandate, because we don’t have those in Canada – it’s the third parliament that the current ministry has spanned.
  • Marc Garneau’s exclusion from Cabinet has fuelled rumours he’s about to become ambassador to France. My presumption is that Bardish Chagger’s exclusion is because she is going to be the new Whip, as the old Whip and his deputy are now in Cabinet. Jim Carr’s departure may be health-related.
  • After Trudeau had rather bravely centralized all of the economic development agencies under one roof and didn’t have them beholden to local ministers and the corrupting influence that offers, he has relented and re-established the practice of regional economic development ministers again, and undone the work of trying to clean up the mess they create.
  • The most important portfolios – finance, defence, foreign affairs – are now all held by women. Anita Anand is the second woman defence minister in Canadian history (the first being Kim Campbell), and her background as a law professor specializing in governance can only help in a role where there has been a crisis in civilian oversight. As foreign affairs minister, Mélanie Joly will have to deal with the tensions between the US and China (and our general lack of a coherent foreign policy).
  • Splitting up Public Safety and Emergency Preparedness was a good and necessary thing; giving Bill Blair emergency preparedness and not public safety is an even better thing because Blair was essentially at risk of capture in the role as a former police chief (with a questionable record around actions of the Toronto Police during the G20 to boot).
  • There are nine new faces in this configuration of Cabinet, and more diversity – the first Black woman since Jean Augustine, the first out lesbian minister, and the queerest Cabinet in Canadian history.
  • Putting Steven Guilbeault in environment may yet be a huge disaster given how badly he mismanaged Bill C-10, but Jonathan Wilkinson in natural resources will likely mean a steadier hand on some of those files where the two overlap.
  • Carving off an associate health minister portfolio for Carolyn Bennett to deal with addictions and mental health is a bit of a throwback to when she was the first minister of state for the newly-created Public Health Agency of Canada, back in the Paul Martin era. Jean-Yves Duclos in health – an economist who did a lot of work on poverty reduction – means he’s not going to be fooled by provinces trying to get more money out of the federal government that they plan to spend elsewhere.
  • Trudeau says he plans to lead the Liberals in the next election, but I’m not sure I believe him, and of course he’d say that now. He wouldn’t actually say he plans to leave until it comes time to do so, lest he turn himself into a lame duck without any moral authority to get anything done.

And now, the talking heads. Aaron Wherry hears from a Senior Liberal Source™ that the message of this Cabinet is the need for urgent delivery of promises. Heather Scoffield makes note of the activists leading the environment and housing files. Jason Markusoff highlights the squirming that Jason Kenney and others are doing now that Steven Guilbeault is the environment minister. Althia Raj sees some attempted legacy-building in Trudeau’s choices.

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Roundup: Taking his sweet-ass time to meet caucus

The Liberals are starting to get restless – members of caucus are feeling put out that they haven’t actually had a formal caucus meeting yet post-election, and many of them are champing at the bit to have a closed-door drag out session about what went wrong in the election, and why their own leadership seemed unprepared for it when they called the blood thing in the first place. And telling the Hill Times that they want to know why the party leadership is taking their “sweet-ass time” to call this meeting was the icing on this particular cake.

I’m having a hard time fathoming why it’s taking Trudeau and company so long to get their collective acts together post-election. They made a whole song and dance about how urgently they needed to act while on the campaign trail, only for them to turn around and take said sweet-ass time in both finalising the Cabinet shuffle (and no, the recounts do not account for how long the delay is) as well as their decision to further delay summoning Parliament – and even his planned international travel does not excuse this. They could have had Cabinet sworn in before the Governor General went on her state visit to Germany, and could have summoned Parliament this week, in advance of Trudeau’s planned travel. That would have given them actual time to get committees up and running, and legislation in the system – particularly around the changes to the pandemic benefits – as soon as possible, as opposed to the current trajectory of a three-week sitting that will accomplish very little before they head back to their ridings for the Christmas break.

Additionally, not having a proper caucus meeting by now has reached the point of disrespecting their own MPs. They have things they want to say after the campaign trail, and they should be able to say it – that’s how this system works. It’s a very bad signal that they are being kept away from the leadership like this, because even aside from it betraying all of Trudeau’s talking points about being open and accountable within his own party, that kind of thing will start to fester if it’s not taken seriously. I’m not sure that’s a situation Trudeau wants to go out on in his final tour-de-force as leader.

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Roundup: Not pushing back on referendum disinfo

Because this is occasionally a media criticism blog, I’m going to call out Power & Politics once again for completely dropping the ball, this time on the bullshit “referendum” happing in Alberta. They hosted Bill Bewick, who heads a group in favour of the referendum, and gave him a pretty uncritical interview, with only the barest hints of pushback. Because both-sidesing.

Host David Common pushed back on a mere couple of points – that the referendum won’t actually do anything because it doesn’t obligate the federal government to negotiate anything; and the fact that without equalisation, PEI would need a 30 percent HST to make up the same funding. He even went so far as to egg on Bewick about how much equalisation Ontario pays, as if it was relevant, because no province actually pays equalisation, which is a pretty big thing that Bewick and his bullshit ever got called on. Equalisation is simply federal taxes that come off everyone’s paycheque – that a fraction of those funds get redistributed to some provinces who need help in offering comparable levels of service when they don’t have adequate fiscal capacity. And the key thing to remember is that Alberta may pay more federal taxes because they have the highest salaries in the country – by far – even during the pandemic. Crying that the province has a deficit has nothing to do with equalisation and everything to do with the fact that the provincial government refuses to raise their own revenues by means of a modest sales tax like other provinces have, and the fact that they chose to rely on resource revenues instead. Their deficit is a choice.

I am forced to wonder whether Bewick didn’t get any pushback because the host and/or the producers simply don’t have a clue about the truth, or because they feel bound by the need to both-sides everything and plan to have someone credible on to refute the points in a separate interview later today – because heaven forbid that the host actually push back lest he or she be called out as being biased or partisan. But calling bullshit and pointing out fact shouldn’t be considered bias or partisanship – it should be simple fact-checking, which they can’t seem to be arsed to do at the best of times, let alone in a referendum that is fuelled by misinformation and disinformation coming from official sources trying to make a political wedge out of this. In a case like this, it’s especially incumbent upon the media to play their role in pushing back against a government that is lying to its citizens, but this timidity to do so is a very real problem for our media.

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Roundup: Animating the Double-Hyphen Affair zombie

Because Jody Wilson-Raybould and the corpse of the Double-Hyphen Affair is getting a fresh attempt at necromancy now that her book is being released, we’re going to see a renewed round of questions about what happened. The Conservatives are sending out a bunch of press releases intimating that RCMP is still considering investigating the matter, and Wilson-Raybould herself is calling on the prime minister to allow them to investigate obstruction of justice – because they really want this zombie to wake up and start trying to eat the brain of this campaign.

In response to questions yesterday, Justin Trudeau said he has not been contacted by the RCMP regarding SNC-Lavalin, which…is not actually surprising. I’m not sure what there would be to investigate, really, and why it would be Trudeau they would be investigating. Her own testimony seemed to indicate that the pressure was largely coming from the jackasses who were in Bill Morneau’s office at the time (and it was those same jackasses in Morneau’s office who were letting SNC-Lavalin pull their puppet strings in pushing through the deferred prosecution agreement legislation into the budget implementation bill), and if you actually listen to the whole call with Michael Wernick and not the carefully curated clips that Wilson-Raybould set up in how she steered the conversation, he was looking for information that she had previously sent to PCO, but didn’t reach his desk. There is no actual obstruction of justice happening. The ultimate irony in all of this, however, is that if they had gone ahead and given SNC the deferred prosecution agreement – which it sounds like they wouldn’t have qualified for anyway – the company would have actually faced some consequences. As it was, SNC-Lavalin settled while the case around an executive collapsed and the company got away with a lesser penalty and few, if any, compliance measures, without any interference on anyone’s end.

The worst part of this, however, is that you have columnists who are writing things like “Wilson-Raybould offers a ballot question in an election about nothing,” which is ludicrous. This is not an election about nothing – no election is about nothing. There is plenty at stake in this campaign, but because it’s less so for straight white guys, whom these columnists are, they are blind to it.

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Roundup: False narratives about the Q2 GDP

The figures for second quarter GDP were released yesterday, and they weren’t as good as had been expected. There was a surprise contraction of 1.1% annualized, which caught economists off-guard (and perhaps Statistics Canada as well, as their flash estimate a month previous had still shown growth). The majority of these declines were in the months of April and May because of the third wave, as June had shown robust growth in nearly all sectors as economies around the country re-opened – and those declines were largely in the areas of home resales and exports. To an extent, the home resales was a bit of a correction – after giant increases in previous quarters, most especially Q3 of 2020, the market slowed down.

For Erin O’Toole and Pierre Poilievre, however, these figures were a cataclysmic sign that Trudeau can’t “manage” the economy, and that it’s deficits that are leading to inflation, which is insane. A lot of the weakness is attributable to the Third Wave and its associated lockdowns, and that is squarely the fault of premiers who opened up too soon, reduced restrictions too fast, and then were too slow to re-impose them (and we’re going to get more of that in the oncoming fourth wave). More than anything, it’s reflective that O’Toole and Poilievre aren’t even bothering to read the data beyond the headlines, and are slotting it into pre-arranged talking points which are so divorced from reality that it should be concerning to anyone paying the slightest bit of attention. The fact that Poilievre is goading the Bank of Canada over Twitter is a Very Bad Thing. He’s continuing to politicise them, and feeding into a bunch of poisonous populist narratives, and O’Toole is joining him for the ride. This is a very bad thing for our economy, and it doesn’t matter that they’re doing it all for show and that they probably will keep things status quo should they form government – the fact that they are polarising the debate and riling up these same toxic mobs that have been following Trudeau’s campaign around is absolutely a problem. This kind of rhetoric should be disqualifying for anyone who seeks higher office in this country.

Meanwhile, as you may have heard, Erin O’Toole reiterated his promise to balance the budget without making any cuts (in spite of promising earlier to cut things like the CBC) because he’s going to grow the economy enough. Why does that sound familiar?

https://twitter.com/robert_hiltz/status/1432799152266694657

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Roundup: Singh needs to start giving details

We have seen plenty of coverage thus far in the election about how popular Jagmeet Singh is, and how authentic he seems to his audience, and plenty about his personal likeability, but I am not seeing a lot that is pushing back against the things he is proposing. We have a couple of such examples yesterday, first with his pharmacare proposal. Essentially, the current government has put in the work, and established the Canada Drug Agency transition office, and thus far has signed up one province – Prince Edward Island. The other premiers have all balked at this, including the NDP premier of British Columbia, John Horgan, which I find mighty interesting in the current context. So, just what would Singh do differently? Well, he won’t say. Per the CBC:

When pressed by reporters on how he would get the provinces to sign onto his plan, Singh was light on details but committed to partnering with provincial and territorial governments. “We’d work with provinces and territories, I know it’s going to be hard work, but it’s going to save families money,” he said.

Great. He’ll “partner” with provinces that have thus far said no, and lo, he’ll do it by next year when it’s going to take years to negotiate a national formulary for said programme – something that seems to be a surprise to Singh, if you go by their stunt of a private members’ bill in the previous parliament, where they essentially proposed a framework where the provinces pay for prescription drugs and the federal government will then sign over a cheque. Yeah, it doesn’t really work like that. But I haven’t seen this being hammered home – you can’t just keep handwaving promises, particularly promises in areas of provincial jurisdiction, and not provide details on how you’ll accomplish it, and no, just promising to “work with” those provinces is not good enough. The current government has been doing that, and if you’re going to complain that they haven’t moved fast enough, then you need to explain how you’re going to do it differently. And no, the fact that you’re not Justin Trudeau is not an answer.

But he didn’t stop there. No, he also opined on vaccine passports, saying that the federal government should just go ahead and implement it federally – but again, didn’t say how they should, given that they don’t control the vaccination data because the delivery of healthcare is a provincial jurisdiction. These particular details matter, and you can’t just handwave them away. We need to start pressing Singh for details, because his answers aren’t good enough, and if he’s going to present himself as a serious contender for government, he needs to be asked the implementation questions so that he can answer them – and be made to answer them.

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