Roundup: One is less than five

As the whole Bill Morneau issue continues to run on outrage fumes, Conflict of Interest and Ethics Commissioner Mary Dawson’s office has been unhelpful in the least when it comes to trying to put this issue to bed. Two days ago her office said that “fewer than five” ministers held assets indirectly, and when this came up in QP on Wednesday, Trudeau confirmed what certain journalists had noted from the public disclosures – that it was Morneau and Jody Wilson-Raybould, who had since divested those shares. End of story. But no, then Dawson’s office responded to reports in the Globe and Mail that they were somehow “at odds” with the PM over just how many ministers were in such a situation (The Globe? Sensationalize something? Unbelievable!), and that one – Monreau – qualified as “less than five.” And that set the Twitter Machine ablaze, and turned QP in the gong show that it was of demanding to know which five ministers it was, despite the fact that this had already been answered on numerous occasions.

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Yes, the Conflict of Interest and Ethics legislation is a mess that MPs refuse on a continual basis to do anything about when the issues are pointed out. Yes, Mary Dawson herself has largely been seen as unhelpful because she has had a tendency to read her mandate so narrowly that issues brought before her are deemed out of her purview. But as I’ve stated before, it’s rapidly turning into a job that nobody else wants, and given the very narrow criteria for a new one, it’s no wonder that the government is having a hard time filling the post, and we may be stuck with Dawson forever as a result.

 

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Roundup: The stages of scandal

Kady O’Malley has a piece about the five stages of a Canadian political scandal, and wonders just where the current Bill Morneau imbroglio lies along it. While she’s probably not wrong in that it’s likely hovering near the end-point, I would like to just take a moment to point out that most of this whole affair has been fuelled by weak-sauce allegations and conflated facts, and this particular air of desperation as people keep flinging the equivalent of spaghetti against a wall in the hope that something inevitably sticks.

And there is a complete air of desperation in the latest developments in this case. Bill Morneau paying a $200 fine for failing to disclose his stake in the ownership structure of his French villa – he had disclosed the villa itself – was turned into wails that he was a law-breaker, or that the fine was somehow a sanction for a “conflict of interest” that was never a conflict. And the NDP tried to move a motion to get Bill C-27 withdrawn, because they sailed a conspiracy theory that somehow there was a conflict of interest with a bill that they opposed for ideological reasons, in order to come at a different angle of attack on it. And while is no actual conflict with the bill, it keeps being reported uncritically as though there were.

And that’s probably what gets me the most irritated about these so-called political scandals, is that many are started by poor reporting on thin facts that are designed to be sensational, with follow-ups that are bigger and bigger reaches to the point where it’s a series of mind-numbing conspiracy theories being floated, each of which get amplified in QP. For what? I’m failing to see how imaginary scandals are holding government to account. There are so many other issues that have substantive policy issues that should be debated or explored, and we keep chasing these non-stories because we think there’s blood in the water. But by all means, keep chasing this phantom menace. It’s doing our democracy wonders.

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Roundup: Share sales and the sputtering outrage cycle

As the full-blown moral panic into what financial assets cabinet ministers own continues, we see the news that Bill Morneau has indeed sold off his shares in Morneau Shepell, for what it’s worth. Not that it will stop any of the chatter at this point – the outrage cycle continues to exhaust itself, and until some new outrage crops up, we’ll continue hearing about this as it sputters and runs on fumes.

And hey, why not find out what every other cabinet minister owns? The Star did, and I’m not really sure how edifying this whole exercise was in the end. Never mind that once again we’re reaching the point of absurdity with all of this. Are there problems with the ethics and conflict of interest legislation? Probably. Were loopholes identified previously? Yup. Did MPs do anything about it then? Nope. Do they really have an interest in closing any of them now? Probably not (and no, the NDP motion that the government voted down was not indicative of anything because it also contained a bunch of other stuff, as these things so often do, that was designed to embarrass Morneau and the government had they voted for it. Because in politics, we can’t have nice things). And once you add in all of the tall poppy nonsense, we’re left with the same tiresome moralizing that we’re always left with when it comes to “perceived” conflicts that aren’t actually there but which were invented out of whole cloth with the convenient lining up of “facts” that don’t pass the bullshit filter. And then we complain that nobody wants to get involved in politics.

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Meanwhile, the Liberals are pointing out that Andrew Scheer has assets in Real Estate Limited Partnerships that are really only for the wealthy. Predictably, the Conservatives cite that he’s worth only a fraction of Morneau, and then cries of hypocrisy flew from both sides, and the outrage cycle continues to chug along.

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Roundup: Abandoning a fiscal anchor

In yesterday’s National Post, economist Stephen Gordon cast a critical eye on the fall economic update and the government’s excuse for running deficits, and the decision to abandon the fiscal anchor of balanced budgets in favour of a declining debt-to-GDP ratio. And rather than worrying about the non-existent debt-bomb, Gordon is mostly looking for answers why the policy shifted post-election. Fair enough. (He also does the math on how much more a government can spend by shifting the fiscal anchors like the government did here).

Enter fellow economist Kevin Milligan, who digs through and finds an answer. Enjoy.

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Roundup: Not headed for a debt bomb

In light of the fall economic update, and the myriad of concerns about the level of the deficit and lack of a plan to get to balance in the near term, economist Kevin Milligan took us all to school over Twitter yesterday. The main message – that it’s not 1995, and we can’t keep talking about the deficit as though it were.

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Later on, Milligan took exception to the notion that the government has backtracked on their tax reform promises and made the situation worse. Not so, he tells us.

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So there you have it. Armchair punditry on deficits or tax changes (even from some economists) doesn’t necessarily stack up.

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Roundup: Is there meaning to staff changes?

The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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Senate QP: Assurances that there is a comprehensive plan

While the fall economic update was getting underway in the Other Place, justice minister Jody Wilson-Raybould was over in the Red Chamber to answer questions that senators may have of her. Senator Larry Smith led off, raising Bill S-3 and the Senate’s proposed amendments to it, reminding her of a speech she made in 2010 about doing away with all inequities in the Act. Wilson-Raybould said that she was aware and noted that they did have a deadline of December, but that Ministers Bennett and Philpott had a comprehensive plan in place. Smith rose on a supplemental to reiterate the question about the plan, and Wilson-Raybould again noted that they did have a plan to eliminate inequities.

Senator McIntyre asked about the rejection of mandatory minimums under C-46 on impaired driving. Wilson-Raybould said that while she noted the seriousness of impaired driving, mandatory minimums were not a deterrence, but mandatory screening was, which is why they were going ahead with it.

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Roundup: Morneau’s pabulum problem

Oh, Bill Morneau. After weeks of rough treatment, and the last week most especially, it’s no wonder that he was getting a bit testy when the questions kept coming up yesterday. That he snapped at a journalist just got our backs up because how very dare he, and so on. But it’s hard not to see how this is almost entirely a mess of his own making. Not just the fact that he didn’t divest his shares earlier, which make of that what you will – he was still within the law. I find myself ambivalent to the sanctimonious cries that he needs to appear to be whiter-than-white because that’s a Sisyphean task for which there will never be satisfaction short of being reduced to sackcloth and ashes, especially compounded by the oh-so-Canadian reflex of treating him like a tall poppy who must be brought down to size. The Conservative line that he’s a rich guy who can’t understand the woes of the working guy is certainly suffused with that narrative, but that’s also populism for you.

For me, the bigger problem is that so much of this is about the fact that it all goes back to this government’s particular communications problem of responding to everything with a spoonful of pabulum rather than taking their criticisms head-on. When the Conservatives launched into outright falsehoods about the proposed tax changes, Morneau didn’t fight back – he mouthed the same platitudes and shovelled more pabulum in our faces, and the myths metastasised until he was playing defensive when there was no reason for him to. That the CRA bungled their release of the folio on employee discounts just fed into this same problem, and again, the government couldn’t communicate their way out of a wet paper bag there either, sticking to the pabulum lines of not taxing the middle class rather than actually explaining that no, these are very specific circumstances that won’t actually capture retail workers. And given the current questions around his holdings, there are certainly better ways that he could have communicated decisions that were made (including why a blind trust would not have made sense, for example), or why the various conspiracy theories about how legislation or tax changes he’s proposing are apparently for the benefit of his company are patently absurd (because hey, attacking the messenger is always the sign that you’re on the winning side of the argument). But nope. Pabulum. And you would hope that maybe, just maybe, the government will learn that this is not the way to go about communicating, but I doubt it. They’ll probably hold tight and weather this manufactured outrage for another week or so until something else distracts the opposition, and the outrage cycle will start up again over something else, for which the government’s solution will be yet more pabulum. It’s tiresome from all sides. But this is what politics has devolved into.

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Meanwhile, Andrew Coyne castigates Morneau for his poor judgment, while Colby Cosh thinks of him fondly as a great quasi-Albertan for using a numbered company registered in that province, paying taxes there and giving back to the province’s economy.

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Senate QP: Jim Carr disputes your questions

With the cancellation of the Energy East pipeline by its proponent still fresh in the minds of many Canadians, it was natural that an appearance by Natural Resources Minister Jim Carr in the Senate would prompt a lot of questions. It did not disappoint. Senator Larry Smith led off, wondering about the “evaporation” of energy projects in Canada while the Americans continued to ramp up their own projects. Carr disputed that there was an evaporation, and spoke about the approval of three projects that would create 27,000 jobs and that while they recognized the need to reform the regulatory process, they were approving more projects than they were rejecting. On a supplemental, Smith asked what could be done to better advance Canadian energy security through things like pipelines, and Carr disputed a bit with how it was worded, and noted that the government has certain responsibilities, and upon seeing some shaking heads across the aisle, Carr laid out conditions that have changed since the Energy East pipeline was first proposed, including the price of oil and new approved pipelines including Keystone XL.

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Roundup: The good news rollouts

The Liberals’ planned rollout of all kinds of “good news” announcements for Small Business Week – reductions in the small business tax rate by 2019, and changes to their planned amendments to Canadian-Controlled Private Corporation (CCPC) rules to crack down on those who use them to avoid paying taxes – were very nearly overshadowed by a Globe and Mail article that cried out that Bill Morneau hadn’t put his shares into a blind trust after all. As it turns out, this was largely a non-story – Morneau followed the advice of the Ethics Commissioner, who felt that because of his particular share structure that he wouldn’t need a blind trust but an ethics screen instead – though there are some added complications around it (see Glen McGregor’s tweets). This after the “revelation” about Morneau’s French villa – not that he had forgotten to disclose it, because he had already – just that he didn’t disclose the particular ownership structure, which is a French corporate structure not uncommon with the ownership of non-commercial real estate, known as a Société Civile Immobilière. Again, a non-story that the opposition (and certain media outlets) pounced upon, trying to make a bigger deal out of them than was merited.

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And then there was the Prime Minister’s tax cut announcement at that Stouffville restaurant, and the somewhat bizarre behaviour by Trudeau in the Q&A period after where he tried to answer questions directed at Morneau (no doubt trying to keep control of the message and not let it get railroaded by the non-stories about his villa and shares, but it came off as smarmy). And back in Ottawa, his backbench critics seemed mollified by the morning’s announcements, so we’ll see if that holds in the days ahead. (Not to be outdone by all of the Liberal press shenanigans, Andrew Scheer walked out on a press conference when asked about his former campaign manager’s association with Rebel Media.)

Meanwhile, neither Chantal Hébert nor Andrew Coyne are impressed with the theatrics of this government’s attempt to change the channel on the pummelling they’ve received.

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