Roundup: Budget day highlights

So that was the budget – so close to being balanced, but apparently in a position to run a surplus next year – and just in time for an election, wouldn’t you know? Maclean’s gives you the highlights, like half a billion dollars for the auto sector, departmental freeze, money for bridges in Windsor and Montreal, $1.5 billion over ten years for research, internships and extending student loans to skilled trades, and vague promises to sic the Competition Bureau on those who perpetuate the price gap with the US (as problematic a promise as that is). Mike Moffatt points out how much more complicated the tax credits are getting in this budget, which increases the red tape and regulatory burden that they claim to want to be rid of, as well as nine changes in the budget that are likely to fly under the radar. Stephen Gordon shows how the Conservatives are aggressively reducing the size of government. Kevin Page wishes Jim Flaherty well if he reaches surplus next year and has to figure out what to do with it. And here are Maclean’s five key points from the budget.

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Roundup: The House returns, 2014 edition

The House is back today! Yay! Oh, how I’ve missed you, MPs. Well, most of you, anyway. You can pretty much expect to hear talk on rail safety, Canada Post, more about the unanswered questions of the Senate scandals, and the budget within a couple of weeks (which sounds like will be a lot about damage control from last year’s budget). In fact, we could see a renewed push on the Senate issue if the Auditor General does release an interim report on his audit of the Senate’s financial controls this week as expected. Peter MacKay is also going to have a busy year with having to craft new laws around prostitution, and deal with the Supreme Court case on assisted suicide. Michael Den Tandt says to expect more of the same.

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Roundup: Mourani renounces separatism

Pauline Marois has managed to do something particularly spectacular – she turned Maria Mourani from a dyed-in-the-wool separatist who ran for the leadership of the Bloc Québécois, into an avowed federalist. Indeed, Mourani announced yesterday that she is renouncing separatism and embracing Canada, because the Charter of Rights and Freedoms is the best way to protect minorities and Quebeckers as a whole, as opposed to the proposed Charter of Quebec Values. There remains no word if Mourani will seek to join another party – Thomas Mulcair said that she’d need to run as an NDP candidate before she could sit in their caucus – but it is a pretty big blow for the separatist movement.

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Roundup: No CPP deal (for now)

The provincial and territorial finance minsters met with Jim Flaherty at Meech Lake yesterday, only for Flaherty to turn down the proposal that they were had a fair degree of consensus on. Flaherty insisted that that the global economy was still too fragile to implement this plan (though he did sound like maybe one day in the future he’d be more amenable), which left Ontario talking about going it alone. Ontario was also upset that in the transfer payment listings released that they were the one province destined to take a hit, which seems unprecedented as usually provinces are protected. Oh, but don’t worry, Flaherty says – their economy is growing. Um, okay. Manitoba also says that they may be out some $500 million because the last census took lace during major floods and up to 18,000 residents may have been missed, though StatsCan says that they double-checked their numbers. Going into the discussions were three different models on CPP expansion that were being discussed in the media, for the record.

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Roundup: Fallout from the ITO

In the aftershocks of yesterday’s revelations in the ClusterDuff affair, everyone is still sorting through the pieces, trying to make sense of it all. Kady O’Malley digs into that ITO and finds three particular dangling threads in the documents that are begging for answers (and you really should read this). Aaron Wherry looks into those documents and finds the voice of sanity, Chris Montgomery – one of Marjory LeBreton’s staffers (apparently paid for out of the PCO budget, which seems to be the source of confusion for people who have said that he’s from PCO) who objected to the process and the interference of the PMO in the Senate’s operations. CBC has their own look at Montgomery in this video piece (with text from The Canadian Press). Senators on both sides of the aisle are reeling from the revelations that PMO was trying to pull the strings of the Duffy audit, because they feel strongly about the chamber’s independence – as well they should. That PMO thought that they could get away with it speaks to the level of control that this government is trying to impose on parliament as a whole, and which parliamentarians themselves should be resisting – as clearly a few in the Senate were, much to the PMO’s frustration. The RCMP are questioning the credibility of Senators LeBreton, Tkachuk and Stewart-Olsen based on their interviews with them, and the quality of that testimony. The auditors from Deloitte are going to be hauled before the Internal Economy committee in order to answer pointed questions about the independence of that audit given the revelations that Senator Gerstein was trying to influence it, though Deloitte has come out to say that there was an ethical wall around those auditors to protect their information from any leaks. As part of that revelation, Charlie Angus is casting aspersions that some of Deloitte’s other work may be politically influenced, like the audit of Attawapiskat’s books (though I’ve heard from my own contacts at Aboriginal Affairs that there are definite governance problems in that reserve). The Law Society of BC is also considering an investigation into the conduct of Benjamin Perrin, the former PMO lawyer who is also implicated in this affair.

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Roundup: Taking aim before the by-elections

One almost suspects that the Conservatives are worried about the Trudeau phenomenon in the upcoming by-elections as they continue to mount increasing attacks against him, whose relevance to reality slips further and further away. Today it was Peter MacKay suggesting that Justin Trudeau told schoolchildren that recreational drug use was okay and hay for legalising pot. Um, except that’s not what happened, but rather that at a school event he was asked about it, and Trudeau said that not only should children not use pot because their brains are still developing, but that right now the government’s approach was ineffective. Well done Conservative attack machine operating under MacKay’s name. Meanwhile in Toronto Centre, the NDP put out releases that decried how awful it was that Chrystia Freeland laid off all those journalists when she was at Reuters, but conveniently omitted the line from the story where the Reuters spokesperson specifically said the layoffs were not Freeland’s decision. Added to that, the NDP somehow intimated that they would protect media jobs by rewarding job creation with tax breaks. Erm, corporate taxes are not the woe that is facing the haemorrhaging media industry, and unless they plan to shut down the Internet and start subsidizing newspaper subscriptions, I’m not sure how exactly they’ll protect media jobs.

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Roundup: Appalling arguments about federalism

Day two of the Senate reference hearings at the Supreme Court saw submissions from the rest of the provinces and territories (minus the Yukon) – some of whom had appallingly bad arguments, which the Justices picked apart to their logical ends – as well as Francophone groups and a couple of senators. The Francophone groups, in particular those outside of Quebec, pointed out the Senate’s role in protecting linguistic minorities that wouldn’t stand up the same way during elections. Senator Serge Joyal, however, had the most eloquent of all submissions so far, and as someone who was in the room when they drafted the constitution in 1982 and who helped draft the amending formula to it, he provided some much needed perspective, as well as on the entrenchment of the system of constitutional monarchy and Responsible Government that included two chambers in 1982 (hence why there is no mechanism to abolish the Senate – because it was unthinkable). Paul Wells points out that regardless of the arguments made to date, there is pretty much no chance that the Senate could be abolished, and that the reforms couldn’t happen without a constitutional amendment. Senator Elaine McCoy weighs in after the first day’s submissions, and calls out the government’s reform plans as red herrings.

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Roundup: Flaherty’s frozen economic update

Finance Minister Jim Flaherty delivered his fall economic update in Edmonton yesterday, and faced a grilling inquiry by none other than the Conservative chair of the Finance Committee, James Rajotte. Ooh. Flaherty said that there will be a healthy surplus by 2015, paid for by frozen spending (aka de facto cuts when you factor in inflation), and asset sales that haven’t yet happened (which is one-time income, and not sustainable). Any future pay increases for public servants have to come out of those same frozen department budgets as well, which further limits any increases. As you can imagine, it went over like a lead balloon with the opposition. Flaherty also confirmed that he does plan to run again in 2015, despite his health challenges – for what it’s worth. Economist Stephen Gordon has a hard time seeing how the cuts will replace sluggish revenue growth, and remains sceptical about the projections. Former Parliamentary Budget Officer Kevin Page gives his read of the update, and sees a whole lot of missing information.

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Roundup: Harper’s need for ambiguity

At a business school event, the Prime Minister said that they don’t want foreign takeover rules that are too clear because the government wants room to manoeuvre in the event that some takeover bids aren’t good for the country and need to be blocked. He also said that the free trade deals that they are negotiating with China, India and South Korea aren’t going to be the same as the EU trade deal just agreed to, as they won’t be of the same depth or comprehensiveness.

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Roundup: Signing CETA

From Brussels, Stephen Harper signed the draft Canada-EU Comprehensive Economic and Trade Agreement, opening up agricultural and automotive markets while eliminating almost all tariffs, though a couple of trade-offs will mean pharmaceuticals will get two added years of patent protection. The agreement will spend the next couple of years being ratified by both the various provinces in Canada and the member countries of the EU. The full text isn’t available yet either, but so far the notes are positive – even from the opposition parties including the NDP (though their language was much more cautious than the Liberals’). CBC has some numbers of what this affects, PostMedia looks at potential winners and losers, while Maclean’s Econowatch has ten things to know about it. Maclean’s also has a look at how Jean Charest got the ball rolling on the agreement. Paul Wells notes that this really is a big win for Harper, and will probably be what he becomes known for once he leaves office. John Geddes is reminded of the portents of doom that the Canadian wine industry faced with the original free trade deal with the US – which turned out to be false – and instead heralded an upturn for the industry as they took the need to compete more seriously and got rid of their crappy vines in favour of top hybrids, which is a lesson to the whinging dairy industry. Andrew Coyne says that consumers will be the ultimate winners of CETA.

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