Roundup: McCallum’s gambit

A political firestorm kicked off yesterday when it was revealed that our ambassador to China, John McCallum, held a media availability with Chinese-language media on Tuesday and didn’t inform Canadian media, and then he made comments about how Meng Wanzhou had a “strong case,” and laid out some reasons why, including the fact that Donald Trump politicised her arrest. There seemed to be some genuine confusion among the Canadian foreign affairs community about what exactly was going on here, including whether McCallum was freelancing or going on a limb, but during his own media availability later in the day, Trudeau didn’t distance himself from the comments – though he certainly danced around them a fair bit (though parliamentary secretary Arif Virani later went on Power & Politics to say that the government stood behind McCallum). And then the reaction – Erin O’Toole accusing McCallum of throwing the Americans under the bus, and Andrew Scheer insisting that he would fire McCallum if he was prime minister (for what good that would do).

It’s worth remembering that our extradition system always has the element of political discretion, in that the minister of justice has the final say once the court processes are over and have determined whether the case is viable. (Full explanation of the process here). Also, here’s a video of lawyer Michael Spratt explaining the process.

Meanwhile, Andrew Coyne says that McCallum put doubt into peoples’ minds about the rule of law, and will be seen to indicate a preference for the outcome, before wondering if McCallum was just freelancing or buying time with the Chinese. Given the swift media reaction in China, there may be more of the latter than the former in the calculation, but it’s hard to know at this point.

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Roundup: An unexpected shuffle

Yesterday’s Cabinet shuffle came with a few surprises, but the biggest was probably the decision to move Jody Wilson-Raybould from justice to veterans’ affairs – a move which can only be interpreted as a demotion, despite both prime minister Justin Trudeau and Wilson-Raybould making the argument that it was insulting to veterans to think of them as a lesser consideration. Added to that, Wilson-Raybould got defensive and put out a lengthy press release that said she wouldn’t discuss why she was moved, as that’s the prerogative of the prime minister (true), but then went on to laud all of her accomplishments as justice minister (which she bizarrely abbreviated as MOJAG – Minister of Justice and Attorney General, the first time I can recall such an abbreviation being used). The problem, of course, is that there was a lot of talk about how things were not going well in her office. I personally heard from a number of people in the legal community about their concerns about the managerial competence within Wilson-Raybould’s office, particularly around staffing key positions such as the Judicial Affairs Advisor – necessary for the appointment of judges, and a post that was left vacant for months at a time, as the number of vacancies began increasing, and still have a significant backlog in place. There was also a lot of staffing churn within her office, which should be a warning sign that not all is well. And more reports came out yesterday that there had been some tensions around the Cabinet table when it came to Wilson-Raybould, so the fact that she penned a defensive release probably speaks volumes.

As for the other ministerial changes, David Lametti (my Canadian Lawyer profile here) replaced Wilson-Raybould, who replaces Seamus O’Regan at veterans’ affairs, O’Regan moving to Indigenous services to replace Jane Philpott, who in turn replaced the departing Scott Brison. Trudeau added a new portfolio to the mix – rural economic development, under new minister Bernadette Jordan, who is now the Nova Scotian in Cabinet. That portfolio is another one without a ministry, and it looks like it’ll be housed within Innovation, Science and Economic Development, where all of the other regional development ministries are housed, but as with a growing number of portfolios under this government, it’s another minister without a line department of her own, which I find a bit concerning.

Meanwhile, there are so many hot takes on the shuffle, starting with Chantal Hébert, who says the few changes mean it’s steady-as-she-goes for Trudeau before the election. Likewise, Kady O’Malley’s Process Nerd column says these changes highlight that there is little room for experimentation, this late in the current parliament. Mercedes Stephenson echoes the sentiment, with some added details on O’Regan’s time on the veterans file. Paul Wells brings the shade when it comes to the performance of this government, and the inability for any particular minister to make any meaningful changes in the face of bottlenecks of authority in the PMO, and a government too afraid to make any changes so close to an election. Mike Moffatt delivers a thread on the challenges of rural economic development, and why the portfolio might be a good idea after all.

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Roundup: Poking at polarization

The new issue of Maclean’s is focused on political polarisation in Canada, with whole suite of stories and op-eds about the issue, starting with what is perceived to be the problems with the “left” (although this piece is more about the Liberals than the “left”) and the “right” in Canada, though I’m not sure how much relevance those particular classifications have any longer, as they’ve been so bastardised with a focus on populism that is either left or right flavoured (and lo, Anne Kingston makes that point here). And with polling showing that one in four hate their political opponents, and Trudeau especially, they made a point of trying to explore the divide.

Delving in further on the right, Andrew MacDougall looks at the Conservatives’ use of snark and shitposts to try and throw red meat to a base that stayed home in the last election, while Jen Gerson tries to equate the attempts made by Conservatives to tap into the current populist uptick as trying to tap a relief well to prevent a worse explosion – but they are playing a risky game that could infect their politics for a generation. On the other side, Andray Domise points to the “woke Olympics” and shifting social rules that alienate newcomers on the left, while Terry Glavin looks to the yellow vest protests in France (as opposed to Canada) as a sign that populism on the left is becoming indistinguishable from populism on the right.

But amidst this talk of polarisation, Paul Wells offers the piece that is probably most necessary – a reality-check as to the history of polarisation in this county, and how it’s always been there, in very blatant ways, and how we seem to be a country that is constantly battling amnesia as we clutch our pearls about losing our innocence. Not to say that some things haven’t changed, but it’s not like we’re wilting flowers being exposed to some new terrible new vitriol. (It’s like in Question Period, it’s the most behaved MPs have been in decades, possibly ever, and we’re still wringing our hands over it). That said, I think this was a good and timely package from Maclean’s, seeing as we’re entering into an election year and the nonsense on all sides is going to ratchet up to eleven really fast. Being clear-headed about where our politics are going is always a good thing.

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Roundup: A subdued oil price shock

The Bank of Canada decided to hold on raising interest rates yesterday, but there were some very interesting things in the accompanying Monetary Policy Report that haven’t been widely reported on, and much of that was the whole section in the report on the state of the oil industry in Canada. (It’s pages 9 and 10 of the report – PDF here). Essentially, for all of the talk about economic doom for the current state of oil prices and the price differential, this current price shock is affecting the Canadian economy at a quarter of what it did in the 2014-2016 price shock, and there are a couple of reasons for that. One of them is that the oil sector is no longer as big of a part of the Canadian economy as it was then – it’s currently worth 3.5 percent of our GDP, while it was six percent just a few years ago. That’s fairly significant. As well, after the previous price shock, most energy firms are better equipped to handle the low-price environment thanks to innovation, improved efficiency and the fact that they already cut overhead costs. Add to that, our low dollar is providing a buffer effect because it supports non-energy exports and employment. In other words, while it’s softened the economy a little over the past quarter and the current one, this is projected to be shrugged off as the rest of the economy continues to pick up steam, and we’re likely to continue growing at a greater pace, because the rest of the economy continues to be running close to capacity. Even some of the areas of potential slack that have been identified, such as lower-than-expected wage growth, are mostly because the situation in Alberta is dragging down the national average. So perhaps it’s not all doom after all.

One other particular note from the morning was that Bank of Canada Governor Stephen Poloz made a couple of remarks around his hometown of Oshawa, and how it’s managed to weather previous plant closures and how its resilience means it will likely weather the pending closure of the GM plant as well as it did previously.

Meanwhile, Kevin Carmichael walks us through the morning’s decision, and some of the reaction to it.

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QP: Last shout in the Centre Block

For the final QP of 2018, neither the prime minister nor the leader of the opposition were present (though Andrew Scheer did hold a press conference just hours before), leaving it up to Candice Bergen demanded urgent action on the opioid crisis, to which Ginette Petitpas-Taylor said that they were taking it seriously, and as a public heath issue and not a criminal one, which was why they were increasing harm reduction measures that Conservatives resisted. Bergen raised comments that she overheard Bardish Chagger say, apparently minimising the scope of the crisis, to which Chagger said that her comments weren’t meant to minimise the scope of the tragedy and she apologised. Bergen, with a script to follow, demanded Chagger to account for her comments again, and Chagger apologised a second time. Jacques Gourde then got up read the same demand for an apology in French, but Petitpas Taylor got up to talk about the measures they are taking. Gourde stuck to his script and demanded again, and got the same response from Petitpas Taylor. Guy Caron got up next for the NDP, and railed about VIA Rail not choosing Bombardier for its new fleet. Marc Garneau, noting that he had answered this repeatedly, said that Siemens did agree to at least twenty percent of Canadian content in their trains. Caron tried again in French, and Garneau more pointedly listed other investments that VIA made in Quebec. Pierre-Luc Dusseault got up next to demand action from the CRA on tax evasion, to which Diane Lebouthillier forcefully pointed out the investments they made and the number of new audits that have been conducted since they came to power. Peter Julian asked the same thing in English, and Lebouthillier repeated the actions they have been taking.

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Roundup: Huawei, Trump, and the rule of law

The issue around the arrest of Huawei’s CFO in Vancouver last week took a number of turns yesterday, and is proving to be an utter gong show, thanks entirely to Donald Trump. So, to recap, the US ambassador to Canada stated that there was absolutely no political motivation behind the request for the arrest and extradition to the US, but meanwhile in China, a former Canadian diplomat who now works with International Crisis Group was arrested in China for no apparent reason, and there is no confirmation as to whether this is in retaliation for the Huawei arrest. Back in Vancouver, said CFO was granted bail for $10 million with five guarantors while she will await extradition hearings – and she has to surrender her passport, be under 24/7 surveillance and wear an ankle monitor, because she is considered a high flight risk. (Here’s a good backgrounder on all of the issues).

And then, it all went pear-shaped. Why? Because Donald Trump suddenly said that he’d intervene in the case if it helps to get a trade deal with China, which undermines the rule of law that Canada has been operating under and trying to assure Beijing that we’re operating under, and that because we have an independent judiciary with processes to be followed (which they can’t get their heads around because their judicial system is politicised), and all of the evidence around the criminal activities, allegations of fraud and of violating sanctions is apparently all for naught, because the US president has put his foot in it. And lo, Canada is relatively screwed by the whole thing. Hooray.

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QP: Taking allegations outside

While the PM took a personal day after his return from the G20, Andrew Scheer was off in Winnipeg to talk guns and gangs. Pierre Poilievre led off concerned about the PM’s supposed “celebrity lifestyle” that referred to the pre-planned tweet around funds for women and girls’ education, before he suddenly pivoted to Bill C-69, demanding it be scrapped. Amarjeet Sohi reminded him that the system the Conservatives put into place that wasn’t working, so they were working to get a one project-one-review process. Poilievre railed that the PM was at the G20 talking about how there were negative consequences when male construction workers went to rural communities,  before returning to the demand to scrap C-69. Sohi reiterate his response, and when Poilievre went for another, more boisterous round of the same, he got much the same answer. Alain Rayes took over to ask about the report in the National Post about a potential investigation on a land deal that might involve Navdeep Bains and Raj Grewal, to which Bains told him the allegations were false and invited him to repeat them outside of the Chamber. Rayes tried to insist on Liberal connections to the situation, to which Bardish Chagger read a statement that functionally repeated Bains’ response. Guy Caron was up next for the NDP, railing about high-protein milk under Supply Management, to which Lawrence MacAulay deployed his usual lines about defending the system. Caron then turned to the Oshawa closure and demanded action by the government, to which Bains read that the sector was strong, that they had the auto innovation fund if GM wanted to use it. Tracey Ramsey demanded action on Oshawa, to which Bains reiterated his previous response. Ramsey then railed that steel and aluminium tariffs were still in place, to which Mélanie Joly read that the NDP celebrated the deal behind closed doors.

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Roundup: Ginning up the Grewal resignation

As the stories on Raj Grewal’s gambling debts and intended resignation continue to trickle through, a number of them have taken on a vaguely conspiratorial tone. A lot of facts that shouldn’t be out of the ordinary are treated as suspicious for absolutely no reason at all. For example, people keep wondering why he was reassigned from the finance committee in September “with no warning.” Gee, what else happened in September that would have affected committee memberships? Could it have been the fact that the parliamentary secretaries all got shuffled, so committee assignments need to be rejigged? Maybe? And whoa, he asked questions on catching money launderers to law officials and FINTRAC agents during a study on – wait for it – “Confronting Money Laundering and Terrorist Financing: Moving Canada Forward.” Such an amazing coincidence that is totally suspicious. And the latest “revelation” is that Senator Jean-Guy Dagenais says that a retired Mountie told him a year ago that he heard Raj Grewal was under investigation, and he therefore thinks PMO should have known then. Erm, except that neither the OPP nor the RCMP tell the PMO what they’re investigating because they operate at arm’s length, and more to the fact, Grewal was a backbench MP, which I cannot stress enough.

To that end, Kady O’Malley’s Process Nerd column looks at the issue of parties policing MPs’ off-hours, considering the Clement and Grewal situations, while Susan Delacourt cites those same two cases, and wonders if we need to do a better job of screening backbenchers. And I’m pretty dubious because backbenchers are not ministers. They don’t have access to secret materials (Clement, I remind you, is a former minister and thus a member of the Privy Council, and his activities on NSICOP are outside of the usual activities of a backbencher), nor are they public office holders. Their job is to hold government to account – they are not part of the government, and it doesn’t matter what committees they’re on. Treating them as the same thing is not only a gross overreach, but frankly it will give MPs a wrongheaded sense of their place in the system, which is already suffering because of civic illiteracy.

Are Grewal’s debts concerning? Yup. Is it a crisis that he was mentioned in passing as part of an investigation into other suspicious characters? Maybe, but we don’t know enough to say whether it is or not, and the baseless speculation and ginned up allegations aren’t helping. Should Trudeau and the PMO have been more candid from the start about the reasons Grewal was resigning? Probably, and given this government’s inability to communicate their way out of a wet paper bag, their approach once again blew up in their faces. But treating this affair with clickbait headlines and spinning random facts out of context in order to make them seem sinister is bad reporting.

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QP: Grewal and false border numbers

While Justin Trudeau was off to Argentina for the G20, Andrew Scheer was elsewhr, as was Guy Caron, more unusually. Mark Strahl led off, worrying about new revelations about investigations that Raj Grewal may have been swept up into, to which Bardish Chagger responded that last week he made them aware of his serious challenges and treatment, and they hoped he got the help he needed. Strahl didn’t believe her, but Chagger reiterated the response. Strahl got even more incredulous, but Chagger’s response varied only by saying the RCMP operates independently. Luc Berthold tried again in French, and got the same answer in French, and then they went yet another round of the same. Ruth Ellen Brosseau led for the NDP, demanding that the government take action. Patty Hajdu said that it was troubling, but this was a global decision affecting plants in the US and elsewhere, so they were going to help workers where they could. Brosseau then demanded the government not sign the New NAFTA until an oversight clause around milk classes was removed, to which Lawrence MacAulay deployed his well-worn points about defending Supply Management. Tracey Ramsey was worried that we didn’t know what was in the deal and demanded that it not be signed, to which Mélanie Joly stood up to assure her it was a good deal for Canada. Brian Masse, whose rant about the auto sector didn’t reach the question before he got cut off, and Hajdu recited some talking points about their support for the industry through the auto innovation fund.

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Roundup: A sudden dilemma for Singh

Liberal MP Raj Grewal made a surprise announcement last night, that he’s resigning his seat because of “personal and medical reasons,” which the PM later called “serious personal challenges” – a phrase that only raises the number of questions about what it could be. Aside from losing one of the best-dressed MPs on the Hill (Grewal is a frequent recipient of sartorial snaps on this blog), where this announcement gets very interesting is the bind that it places on NDP leader Jagmeet Singh.

Singh had initially stated that he wanted to run in Grewal’s riding during the next election, given that it was his riding provincially (note to non-Ontarians: in this province, the federal and provincial ridings are identical with a couple of exceptions in Northern Ontario), and for almost a year, he kept stating that he was “comfortable” not having a seat and waiting to run in that same Brampton riding in 2019. That is, until his party’s poll numbers started tanking and he realized that he needed to actually be present in Parliament if he hoped to regain any traction. (Also of note, his brother now holds the seat provincially.) But in August, Singh committed to run in Burnaby South, and has been spending some time there campaigning, and recently announced that he found a rental property there.

So this leads us to wonder – will Singh abandon Burnaby South, where he has already expended some effort and expense, or will he decide that since Brampton is now back on the map, that it’s the smarter decision to run in given his roots and history in the riding? This just as Singh learned that he’ll get the byelection in Burnaby South that he’s been (belatedly) demanding in February. So there’s a choice to make, and we’ll likely hear all about it in the coming days. (Also, expect the Conservatives to push conspiracy theories about just how “convenient” it was for Grewal to suddenly resign now, and how this must mean the Liberals really want him in the House because they think it’ll give them some kind of advantage; this line of baseless speculation was proffered on Power & Politics last night and I expect to hear it repeated in the coming days).

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