Justin Trudeau continued his tour of southwestern Ontario over the past couple of days, meeting with local mayors and touring a Ford plant, and so on. But while he was talking about moving away from traditional manufacturing while in London, his stop in Windsor spoke about the need to support the auto sector as a pillar to diversify around, which seems to me to be a fairly big hedge since much of the problem with the auto sector is that it pretty much requires the government to keep feeding the beast with ever larger cash subsidies lest those manufacturers relocate elsewhere, which they generally end up doing anyway, while not enough is being done to transition those communities away from the expectation that they’ll get a decent paying job at the auto plant with a pension and benefits. Also, he needs to stop saying that the government put all of their eggs in the oil basket, because it’s like four percent of GDP, so it’s just not true. Another curious statement Trudeau made was that carbon pricing should be up to the provinces, which seems like a fairly fraught proposition because one can rather easily imagine the headaches that having a patchwork of pricing schemes around the country will create – carbon tax in one province, a technology levy in another, and cap-and-trade in yet another, while the federal government tries to book the overall reductions with no real commonality between them.
(1/n) Re: @JustinTrudeau and GHGs: I've worked on GHG policies at fed and prov level – we need a new way to deal with fed/prov on GHGs.
— Andrew Leach (@andrew_leach) January 22, 2015
(2/n) Federal regs end up pleasing the lowest common denominator – coal, autos, oil and gas, EITE, etc. and stringency drops for all.
— Andrew Leach (@andrew_leach) January 22, 2015
(3/n) A new framework, in the spirit of healthcare where fed gov't sets the boundaries, directs traffic, etc, has some promise.
— Andrew Leach (@andrew_leach) January 22, 2015
(4/n) but, in order for it to work, fed gov't needs clear def'ns for stringency, and a tasty carrot or a big stick to make provinces move
— Andrew Leach (@andrew_leach) January 22, 2015
(5/n) Without that, we're in the world we're in now – each province does what it wants to do, and the fed gov't does little else.
— Andrew Leach (@andrew_leach) January 22, 2015
(6/n) So, let's see what details @JustinTrudeau puts on the policies, but this is a good/promising direction for Canada. #cdnpoli
— Andrew Leach (@andrew_leach) January 22, 2015