Tag Archives: Trade

Roundup: Considerations for Teck

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We’ve been hearing a lot about the proposed Teck Frontier oilsands mine in northern Alberta lately, and demands by Jason Kenney and a number of Conservative MPs that its approval be fast-tracked as close to immediate as possible. Energy economist Andrew Leach has a few thoughts on the matter, particularly of how to reconcile Teck in the broader scope.

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QP: Cheerleading a recession

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After this morning’s surprising announcement that Andrew Scheer was resigning as Conservative leader, the PM was in his office but not present for QP (even though he had been in the House to respond to Scheer’s resignation just a couple of hours earlier). After a lengthy ovation, Scheer lamented last month’s job numbers, which I remind you was 100 percent bullshit, particularly his warnings about a “made-in-Canada recession.” Bill Morneau reminded him that while monthly job numbers are important, they would continue to invest in Canadians as that created over a million jobs. In French, Scheer demanded an economic update, and Morneau responded was that one would happen in the coming days. Scheer switched back to English to carry on his lament for the stage of the economy, giving misleading G7 job stats, to which Morneau repeated that their plan to invest was working, and that the economy was on track for the second-highest growth in the G7. Leona Alleslev was up next, and in French, concern trolled about the New NAFTA, and demanded impact assessments for it. Chrystia Freeland reminded her that the existential threat to our economy was now past, and endangering ratification was simply threatening the economy. Alleslev switched to English to worry about “repairing” our relationship with the US, and Freeland stated that the most important thing was ratifying the agreement. Yves-François Blanchet was up next, and he spun a sad tale of steel workers in Ontario being protected but aluminium workers in Quebec were not, to which Freeland reminded him that they got the tariffs repealed, and that the new agreement had 70 percent North American aluminium content requirements. Blanchet sang the praises of economic nationalism, and Freeland warned of the dangers of partisanship. Jagmeet Singh was up next, and demanded the government stop the judicial review of the Human Rights Tribunal compensation order, to which Marc Miller started that they were engaging partners to see that there was the fairest and most comprehensive compensation offered. Singh tried again in English, and Miller listed new measures they are in compliance with, and said that they were sitting down to get compensation right.

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Roundup: Immutable committee math

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In a move that is possibly quite disappointing, the Liberals got unanimous consent yesterday to suspend the sections of the Standing Orders governing the powers of parliamentary secretaries – which could be an issue if they plan to put them back on committees with voting powers and the ability to move motions and so on. Some of you may recall that when this was the standard practice during the Conservative era, these committees simply became branch plants of the ministers’ offices, and everything was stage-managed within an inch of their lives.

However.

I also have it on good authority that this may not be exactly as it seems. Part of the problem is that there is a shortage of warm bodies in the Liberal ranks to fill the committees, particularly if you have a Cabinet of 37 out of 157 seats, and what looks to be a prospective parliamentary secretary list of at least 46 (given that Economic Development with have separate parliamentary secretaries for each regional economic development agency). Then, subtract the Speaker and the Assistant Deputy Speaker, who can’t sit on committees, and that leaves them with 72 MPs (maybe less – a couple may also remain assigned to NSICOP, which pulled them from other committees in the previous parliament) to distribute across 27 standing and joint committees, where the parliamentary math in the current hung parliament would see four Liberal MPs per committee. Quite simply, they don’t have enough.

What I’ve been told by my sources is that what they may wind up doing is allowing parliamentary secretaries to sit as regular committee members on committees that aren’t those aligned with their minister, so that they would essentially be pulling double (or possibly triple) duty, especially if they remain on the committees aligned with their minister in a non-voting capacity. It’s not pretty, but it may be what winds up being necessary if they intend to live up to their promise to keep parliamentary secretaries from being voting members of their interested committees. (Are we ready to start having a discussion about having a more reasonable number of MPs for a country of our size? Because seriously, not having enough bodies is an actual problem that has consequences for the efficacy of the institution).

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QP: All about aluminium

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On the first Wednesday of the new parliament, the prime minister was present and we were due to be treated to the first proto-“Prime Ministers Questions” of the 43rd Parliament. Andrew Scheer led off, and he demanded to know what new concessions the government agreed to with the New NAFTA, to which Justin Trudeau assured him that they got a good deal, particularly around aluminium and automotive rules of origin. Scheer rhymed off that “senior Democrats” said that the Canadians gave up everything asked of them, and Trudeau simply responded with some congratulations to the negotiators on getting a good deal. Scheer then demanded a new fiscal update this week which includes a path to balance, citing a fictional “high-tax, high-regulation” agenda, to which Trudeau recited his worn points about making the choice to invest in Canadians. Scheer then railed that Trudeau was creating a “made in Canada recession” — which was 100 percent pure and unadulterated bullshit — and Trudeau reiterated their choices to invest. Scheer then demanded the government pull out of the Asian Infrastructure Bank as a way to send a message to China, to which Trudeau warned that he hoped the new special committee on China wouldn’t be a vehicle for the opposition to play politics and endanger Canadians. Yves-François Blanchet decried the lack of aluminium protections in the New NAFTA, to which Trudeau started frankly that Blanchet was wrong, and they got guarantees around the use of aluminium in the automotive industry. Blanchet disputed this, and Trudeau repeated his assurances. Jagmeet Singh then took his turn to lament the New NAFTA, to which Trudeau picked up a list to read off improvements. Singh then demanded an immediate universal pharmacare programme, to which Trudeau insisted that they did more than any government in a generation to lower drug prices, and the next step was to sit down with the provinces.

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Roundup: A promise weaselled out on

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A very important bill has been introduced in the Senate, that has been attempted on more than a few occasions now, and it’s a sign of a promise that the Liberals weaselled out on in the past. The bill? To restore Parliament’s ability to control government borrowing by way of votes – you know, like Parliament is supposed to do as part of their job of holding government to account by means of controlling the public purse. You see, back in the Harper era, they hid the change in one of their massive omnibus budget bills that stripped Parliament of the ability to vote on new borrowing, and instead turned it over to Cabinet. Senators caught it too late, and the bill passed, and whoops, no more ability for Parliament to hold government to account for it any longer. Senator Wilfred Moore introduced a bill to revert this practice on a couple of occasions, and Senator Joseph Day carried on with it in the previous Parliament, and has just reintroduced it in this one.

https://twitter.com/SenDayNB/status/1204502292076154880

The Liberals were all in favour of this back when they were in opposition, and made a big show about promising to restore this to Parliament – and then they weaselled out on it. What they did instead was introduced a debt ceiling of $1.168 trillion, after which Parliament would need to vote to extend it, and said that Cabinet only needed to report to Parliament every three years about the money it has borrowed, starting in 2020. Let me reiterate – they weaselled out of this promise, and at least there are senators who are alive to why this is important for Parliament.

These are principles that go back to Runnymede, and the Magna Carta in 1215, and made more explicit in 1688 when the king wasn’t able to borrow money without Parliament’s consent. The Conservatives broke this important principle of Parliament for their convenience. That the Liberals have refused to act on their promise to restore it is a black mark against them.

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QP: Demanding a special committee on China

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With Chrystia Freeland in Mexico City for the New NAFTA signing ceremony, and Justin Trudeau in town but elsewhere, Andrew Scheer was present today and led off by mentioning the first anniversary of the two Canadians being detained in China, and asked for an update as to the efforts being made to secure their release. Karina Gould assured him that they are the government’s absolute priority, and expressed thanks to the allies who have spoken up as well. Scheer then lamented that the government waited six months to file a complaint with the WTO over China over the canola issue, and Marie-Claude Bibeau listed efforts they have made. Scheer was not mollified, and railed that the government was still investing in the Asian Infrastructure Bank, to which Bill Morneau assured him that the Bank benefitted Canadians as much as the countries they invest in. Alain Rayes took over in French, who worried that China was too interested in the Arctic, to which Gould Assured him that they always defend Canadian sovereignty. Rayes returned to the question of the two detained Canadians, and Gould repeated her question in French. Yves-François Blanchet, after being chastised for pointing out the prime minister’s absence, worried about the New NAFTA and that aluminium was not protected under it, to which Gould assured him they were proud of the agreement, and the new NAFTA had strict regulations around the industry. Blanchet railed about workers in Quebec, somewhat rhetorically, to which Gould reiterated that they were defending market access for Canadians. Jagmeet Singh was up next, to repeat his latest demand to target the tax cut different to fund a dental care programme, to which Patty Hajdu said that the dental care idea was worth exploring, and she wanted to work with all members on it. Singh accused her of just saying nice words, and Hajdu reminded him that such a programme would be delivered by the provinces which was why you couldn’t just say you would do it.

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Roundup: Kenney’s shock-and-awe tour

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Jason Kenney is in town on his shock-and-awe tour, with eight ministers and countless staff in tow, intent on making the province’s “Fair Deal” case to their federal counterparts – while those federal ministers smile and nod and say “yes, dear.” Meanwhile, certain credulous journalists and columnists are swallowing Kenney’s presentation whole, as he brings charts and graphs and rattles off figures that they don’t bother to question, never mind that he has a well-known and well documented propensity for lying with these very same facts and figures – and then gets terribly indignant if you call him on it, and will keep reiterating them, bulldozing over his doubters. And we’re going to get even more of that during the media rounds later today – mark my words.

To that end, Kenney’s ever-evolving list of demands continue to be largely unreasonable (as said credulous journalists and pundits nod and say “They’re perfectly reasonable” when they’re not) – things like demanding a solid timeline for the completion of the Trans Mountain pipeline (impossible if there are further court challenges, and Kenney is lying when he says there are mechanisms), along with bringing in First Nations as equity partners (there is little point until the project is completed, which was the whole point of buying the pipeline in the first place – to adequately de-risk it); his $2.4 billion demand for “fiscal stabilization,” some of which he plans to put into remediating orphan wells (never mind the Supreme Court has ruled that these are the responsibility of the companies who owned them); substantial repeals of environmental legislation (because the failed system under Harper that only resulted in litigation worked so well); changing rules so that oil and gas companies can raise revenues (reminder: flow-through shares are de facto federal subsidies); and recognising Alberta’s efforts at methane reduction (I’m going with “trust, but verify” on this one, because Kenney likes to lie about the province’s other carbon reduction efforts). So yeah – “perfectly reasonable.” Sure, Jan.

Bill Morneau, for his part, says he’s willing to talk to his provincial counterparts at their upcoming meeting about fiscal stabilization, but isn’t making promises. While the premiers all signed onto this notion at the Council of the Federation meeting last week, it was because it’s federal dollars and not dealing with equalization which could affect their bottom lines – and Kenney’s supposedly “conciliatory” tone in which he says he’s willing to accept fiscal stabilization changes over equalization is likely a combination of the realization that he’s getting to traction from the other premiers, whose support he would need to make any changes, and the fact that Trudeau publicly called Scott Moe’s bluff on equalization reform when he said that if Moe can bring a proposal forward signed off on by all of the premiers then they would discuss it – something that isn’t going to happen. This all having been said, it also sounds a lot like Kenney wants the rest of Canada to bankroll the province for their decision not to implement a modest sales tax which would not only have solved their deficit but would have provided them with the fiscal stability to help weather the current economic hard times – but that’s an inconvenient narrative. Better to drum up a fake separatist threat and try to play the hero instead.

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QP: New measures not mentioned in the Speech

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The first Monday of the new Parliament, and the prime minister was present but Andrew Scheer was not. That left Leona Alleslev to lead off in French, and she lamented the reported job losses from last month, and demanded a new economic statement with new measures and a balanced budget. Justin Trudeau responded that the first thing they did in 2015 was cut taxes and they were doing so again, and they were supporting Canadians and the economy. Alleslev read the same question in English, and got the same response. Alleslev read more doom, saying that the country was on the verge of recession (reminder: Not according to the Bank of Canada), and Trudeau reminded her of the plan to invest in Canadians, which is what they would continue to do. Erin O’Toole was up next, demanding retaliation against China for the two detained Canadians, being the one-year anniversary of their captivity. Trudeau assured the House that they were continuing to engage the Chinese, and that he had spoken to President Xi directly. O’Toole then raised the protests in Hong Kong, and Trudeau spoke about their support for the one-country two-systems principles and reiterated their calls for de-escalation. Yves-François Blanchet asked about healthcare, and Trudeau responded in general platitudes about the system, and they went for a second round of the same. Jagmeet Singh was up next, and in his new style of alternate French and English sentences, demanded that the upcoming tax cut be more targeted in order to use the savings to pay for national dental care, and Trudeau reminded him of how many people the tax cut would help. Singh demanded increased health transfers, to which Trudeau reminded him that they had worked with the provinces to target specific needs in the last parliament and they would continue to do so in this one.

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QP: Begun, this 43rd Parliament has

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The first Question Period of the 43rd Parliament just happened to be on a Friday, and for the first time in my memory, all of the leaders were present. The PM at Friday QP? Unheard of! And yet, here we are. Andrew Scheer led off in French, mini-lectern reliably on his desk, and he raised this morning’s job numbers and the 71,000 reported job losses, calling it a “crisis.” Justin Trudeau, without script, told him that their plan was about creating jobs and investing. Scheer tried again in English, and Trudeau made points particularly related to the jobs created by the construction of the Trans Mountain pipeline. Scheer insisted that other countries were increasing investments in natural resources, and Trudeau reminded him that blaming foreign activists didn’t get pipelines built. Scheer said that of all the divisions in the country that Trudeau allegedly created, he stated that provincial premiers were united in opposition to Bill C-69, and Trudeau reminded him that the previous Harper environmental regime didn’t work and singled out two projects that continue to face delays. Scheer then worried about a vote around Israel at the UN that he called “anti-Israel,” to which Trudeau took up a script to reiterate the country’s support for Israel. Yves-François Blanchet was up for his federal debut to worry that the government ignored the call by premiers to increase health transfers to the provinces. Trudeau responded that they had committed to some increases related to getting people family doctors and implementing pharmacare. Blanchet then demanded that provincial environmental assessments get priority over federal ones, to which Trudeau spoke about partnerships on the environment. Jagmeet Singh led off for the NDP, and concern trolled that the prime minister was not brave enough to stand up to pharmaceutical companies and implement pharmacare. Trudeau, without notes, said that they were committed to pharmacare but it was an area of provincial jurisdiction and needed negotiation. Switching between English and French in the same question, Singh demanded the government stop taking Indigenous children to court, and Trudeau assured him they were committed to compensation.

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Roundup: The call is coming from inside the caucus room

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The hits just keep coming for Andrew Scheer, as one of his MPs came out vocally against his leadership yesterday. In the wake of the fairly low-key announcement of his Shadow Cabinet, it was quickly noticed that Ed Fast was not on said list, and Fast himself said that he was asked to be part of it and he declined, saying that Scheer should be surrounded by people loyal to his leadership, while Fast has concerns about it. Up until this moment, Scheer’s loyalists were dismissing those vocally and publicly calling for Scheer to step down as being Toronto elites and sore losers that go back to leadership rivals. Fast’s public denouncement puts a lie to this narrative.

Let’s face it – public dissent in caucus is rare because we have virtually eliminated all of the incentives for it. Our bastardized leadership selection process has leaders claiming a “democratic legitimacy” that they use to intimidate MPs into not challenging them, because it goes against the “will of the grassroots” (and to hell with that MP’s voters, apparently). We gave party leaders the power to sign off on nomination forms with the purest of intentions and it quickly got perverted into a tool of blackmail and iron-fisted discipline. Pretty much the only time MPs will speak out is if they have nothing to lose, and Fast is in that position – he could retire tomorrow and be all the better for it. And it’s when the dissent goes public that leaders really need to worry because that means that it’s happening by those inside the caucus room who aren’t saying anything out loud. Provincially, we’ve seen instances of it taking only one or two MLAs coming out publicly for leaders to see the writing on the wall and resign. The caucus may be bigger in Ottawa, but the sentiment is increasingly out in the open – that can’t be sustainable.

Scheer later went to the annual UCP convention in Calgary, where he was predictably given a fairly warm welcome– but he shouldn’t rest on this applause because he doesn’t need to win Alberta – he already has their votes, and they’re not enough to carry the country, no matter how much they increase their vote share. He needs seats in Ontario, Quebec, and Atlantic Canada, and he is having a hard time cracking those areas, in particular because of his social conservatism and the UCP convention isn’t going to be the place to go to get honest feedback about that problem. It’s a bubble, and a trap that becomes too easy to feel that there is nothing wrong if he stays in it too long.

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