Tag Archives: Trade

Roundup: Too big to prosecute?

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So, yesterday was a bit of a day, wasn’t it? To recap – the Globe and Mail published a piece that cited unnamed sources that the PMO had leaned on then-justice minister Jody Wilson-Raybould to direct the Director of Public Prosecutions to abandon the prosecution of SNC-Lavalin as part of an ongoing corruption trial (related to Libyan contracts) so that they could take a deferred prosecution agreement instead – basically a plea deal administered by the courts, which the Director had thus far refused to do. (Note: For the Attorney General to make such a direction to Public Prosecutions, it must be done publicly and published in theCanada Gazette. This is not something that can happen on a whim). The story goes that Wilson-Raybould refused, and coincidentally she was shuffled from the post weeks later. Justin Trudeau refuted this, but because he strictly said that he and his office didn’t direct Wilson-Raybould or now David Lametti on this file, everyone parsed that as not saying he didn’t apply pressure, only for Lametti and every other Liberal put out on the file later in the day to add that he didn’t direct or put pressure on them. For what it’s worth.

https://twitter.com/btaplatt/status/1093545282858614785

Now, I have questions. If the PMO applied this pressure, it would be a Very Bad Thing. And we don’t know if they did or didn’t. However. The Globe story gets out the red ball of yarn and starts pinning lines between different items on the conspiracy map, and some of those items I have a problem with being there. One of those items is that the government passed amendments to the Criminal Code that enabled there to be deferred prosecution agreements back in the spring, and one of the “sources” that the Globe taps insists that this was done solely to benefit SNC-Lavalin. And I have a problem with that. Why? Because I wrote about those provisions back when they were being debated, and I spoke to a number of lawyers who specialise in white collar crime. If this had been solely for the benefit of SNC-Lavalin, I would have expected them to say that this makes no sense in the bigger picture, but they didn’t. Instead, they said that these changes barely had Canada keeping up with other comparable jurisdictions (and in fact, some said that they still kept us behind). The consensus was that these kinds of changes were long overdue. And there is a record of government consultations about this issue that produced a report. For this to be a “direct line” doesn’t hold any water. “Oh, but they lobbied!” Of course, SNC-Lavalin lobbied. It was in their interest to do so. That’s not a revelation, nor is it any indication that the government actually listened to them. They’re also trying to get judicial review of Public Prosecutions’ decision not to offer them a deferred prosecution, but that doesn’t mean they’ll get it either. We also need to remember the size of SNC-Lavalin, and how many thousands of jobs and billions of dollars they have on the line, particularly in Quebec, and if any party thinks that they’d “get tough” on them with that on the line, they’re deluding themselves. (This is part of the problem with oligopolies in Canada).

https://twitter.com/robert_hiltz/status/1093504225944965122

There is also the point about Wilson-Raybould in this. Many people, pundits included, are suddenly treating this story as some kind of exoneration for her demotion, and ignoring the fact that there were very real reasons for why she was replaced, many of which had to do with the fact that she wasn’t managing her office competently, and she was making questionable staffing choices in her own office. I have my own unnamed sources in the legal community who can point to her incompetence, and this is now being swept under because she’s suddenly being hailed as a hero – which is another reason why I have some suspicions about the source of this story (and why she hasn’t been in a hurry to offer any denials, only a “no comment”). The Globe story and its reporters are also trying to draw a line in her post-shuffle release about the justice system being free from political interference, but again, this was also taking place in the backdrop of the Meng Wanzhou extradition affair, and questions about the rule of law clanging around, so again, I have doubts that there is a direct connection.

So what next? Well, we can expect another few days of communications incompetence from Trudeau and the government because that’s what they do every single time something blows up on them, and eventually they’ll be forced to be more candid, but by then, everyone will have parsed everything to death and filled in the gaps with their own wild theories. Because this is a government that can’t communicate their way out of a wet paper bag, and they make things worse for themselves every single time. There are demands for a police inquiry or a full public inquiry, but I have my doubts that Trudeau would call one so close to an election – but stranger things have happened.

Meanwhile, Chris Selley points to the shocking levels of cynicism that this whole story displays, while Susan Delacourt notes that the silence around Wilson-Raybould is allowing the “ring of truth” to overshadow a more complicated actual truth (and also hints to possible morale problems in the Liberal caucus). Paul Wells offers some withering analysis of what’s gone on with this, and the way this is reflecting on certain senior PMO staff, which could be a growing problem.

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QP: Whacking and managing

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Monday on the Hill, and the prime minister was present, but Andrew Scheer was not. Candice Bergen led off, and she demanded to know why Adam Vaughan was not fired from his parliamentary secretary role for his tweet about “whacking” premier Ford. Justin Trudeau said he would get to the question in a minute, but wanted to first pay tribute to the late Auditor General, Michael Ferguson. Bergen said that there would be time for that during ministerial statements, then reiterated the question. Trudeau said that Vaughan had apologised and they were endeavouring to keep debate civil. Bergen tried again, and got the same response. Gérard Deltell was up next to offer his usual questions about the deficit, and Trudeau dutifully recited his memorised talking points about investing in the Middle Class™ over Conservative cuts. Deltell tried again, and Trudeau reminded him they cut taxes. Guy Caron was up next for the NDP, and he demanded to know why oil and gas subsidies were not yet cut, and then railed about the Trans Mountain pipeline, repeating the misreading of the PBO report. Trudeau noted that they were honouring their commitment to cut those subsidies by 2025, and they were balancing the economy and the environment. Caron railed that the government wasn’t doing enough, and Trudeau rattled off the government’s many environmental measures. Murray Rankin took over in English to make the same environmental demand, and Trudeau reiterated his responses in English. Rankin tried again, and Trudeau lectured him that it was irresponsible not to get a proper price for oil while they needed to make investments in renewables. 

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QP: Demanding a tax pledge

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Another snowy day in Ottawa, and things got back underway in the new Chamber, with numerous statements of remembrance for the Quebec City Mosque shooting two years ago. While Justin Trudeau was present today, Andrew Scheer was not, preferring to tweet instead about Google search results he didn’t like. That left Lisa Raitt to lead off, raising the case of Vice-Admiral Mark Norman, and allegations that Scott Brison was withholding personal emails from the courts. Trudeau stood up to read that they were respecting judicial independence and would not comment. Raitt tried again, calling it a “concerning cover-up,” but Trudeau’s response did not change, only he recited the lines from memory. Raitt then moved on to a homily about affordability and wanted assurances that the government wouldn’t raise taxes. Trudeau assured her that they were cutting taxes for the Middle Class™ while they were growing the economy. Alain Rayes took over in French to demand a balanced budget with no tax hikes. Trudeau deployed his lines about growing the economy and helping the Middle Class™. Rayes tried again, and this time Trudeau insisted that they lowered taxes and would not raise them, while the Conservatives preferred tax cuts for the rich, when “trickle down economics doesn’t work.” Peter Julian led off for the NDP, accusing the PM of misleading the House on housing stats. Trudeau delivered some pat lines about their National Housing Strategy that has helped a million Canadians so far. Julian name-dropped the riding of Burnaby to demand new affordable housing, to which Trudeau cautioned him against maligning the refurbishment of existing housing which ensures Canadians have safe and affordable places to live, which is what they were ensuring. Brigitte Sansoucy went into a paean about personal debt and affordable housing, and Trudeau deployed more talking points about the investments they made. Sansoucy then said that he didn’t consider seniors in his response, to which Trudeau deployed his standard talking points about increasing the GIS.

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Roundup: McCallum out

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On Friday night, Justin Trudeau asked for and accepted John McCallum’s resignation as the ambassador to China, not offering specifics as to why, but offering praise of his years of service. The narrative emerged a little later over the weekend that his comments were “unhelpful” in releasing those Canadians detained in the country, and some said that it sent “inconsistent” messages to China (though I’m not sure that’s entirely true – we may be following the rule of law, but if the Americans withdraw their extradition request, that would resolve the situation, and we can’t pretend that extradition requests in Canada aren’t inherently political). Of course, this is also that whole dynamic of what can be said in private versus public, but there you go. Choosing a replacement will also be tricky business, and there are those who say it needs to be a senior bureaucrat who speaks Mandarin, but we’ll see if Trudeau seems to think another political appointee is his preferred route.

Andrew Scheer was quick to rush out and say that it was too late, that he should have been fired at the first instance, which is a bit rich considering that Stephen Harper’s usual practice was to conspicuously ignore these kinds of eruptions, shrug them off, and only months later would he quietly shuffle that person out of whatever job they were in, so that he didn’t look like he made a mistake in appointing them to the job in the first place.

Susan Delacourt hears from her PMO sources that nobody was happy with McCallum’s ouster, and that while they could walk back on comments once, they couldn’t do it a second time. Paul Wells goes through all of the other questions that McCallum’s ouster raises, not only with the state of the Meng incident, but also on the broader foreign policy objectives of this government, and what is left standing from the vision they outlined two years ago.

https://twitter.com/InklessPW/status/1089321523926786048

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Roundup: Feelings over civics

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Over the course of the weekend, I’ve been giving a great deal of thought to the Supreme Court of Canada’s decision in Frank v. Canada (Attorney General), 2019 SCC 1 – the decision about expat voting rights – and I still can’t bring myself to conclude that they the majority got it right. I’ve read over the decision and found myself greatly annoyed by the fact that majority simply shrugged off the very real issue of constituencies and local elections, and that in his concurring reasons, Justice Rowe mentioned them but shrugged them off. And while people will criticise the reasoning and analysis employed by the dissent from Justices Coté and Brown, they at least did pay particular and necessary attention to the issue of constituencies as it relates to our system – and the rationale for the five-year limit (in that it is the constitutional maximum length of a single parliament). And I can’t let this go, because five of seven justices of the Supreme Court failed to properly understand the importance of constituency-based democracy (and I think the Attorney General’s office also bears a particular amount of responsibility for not making the case adequately either).

To reiterate – we vote for local representatives. We don’t vote for parties, or party leaders, no matter what we may have in mind when we go into the ballot box – we mark the X for the local candidate, end of story. For an expat, it’s not the connection to Canada that should be at issue – it’s the connection to the riding, because that’s how we allocate our votes. The dissenting judges got that, but the majority and virtually all of the commentary I’ve seen on the matter ignored it, despite it being the first principle of our electoral system. The Attorney General focused on the “social contract,” which the majority decision hewed to, and there was a lot of talk about feelings and “progressive enfranchisement,” but feelings are not how we allocate votes in this country. Ridings are, and as warm and fuzzy as you feel about Canada, it’s the riding that ultimately matters. I feel like we’re rewarding civic illiteracy on a grand scale with this decision.

To that end, here’s Leonid Sirota offering his analysis of the decision, and University of Ottawa law professor Mike Pal’s thoughts in this thread. And here’s Emmett Macfarlane to pick apart the decision further (though we will disagree on the outcome).

https://twitter.com/EmmMacfarlane/status/1083740974008815617

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Roundup: Brison’s long farewell

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It was a bit of a surprise yesterday morning, as Treasury Board president Scott Brison announced that he was resigning his cabinet position because he decided that after 22 years in elected politics, he had decided he wasn’t going to run again this fall. His reasons were mostly that it was time for something new, and the fact that he now has a young family – something that was largely inconceivable when he first got into politics, then as a Progressive Conservative – though that hasn’t stopped everyone from speculating that this has something to do with the upcoming trial of VADM Mark Norman, given that Norman’s lawyers are trying to insinuate that Brison had tried to politically interfere with the procurement process for the interim naval supply ship. (Brison denies this, and he’s not the one on trial, but here’s a thread on what this decision means on his ability to testify). One can’t also help but noting that this will be a bit of a blow for Trudeau as well, as one of his most experienced and competent ministers will be leaving the Cabinet table, and that will matter given the fact that there are still too many ministers that haven’t quite grown into their responsibilities yet.

This, of course, means that we’re now fully into Cabinet shuffle speculation, given that there is one coming on Monday to replace Brison. Every other member of Cabinet, save Jody Wilson-Raybould, has confirmed that they plan to run again in the next election (and Wilson-Raybould likely will as well – she was out of the country and didn’t respond to questions), so it’s unlikely that anyone else will be dropped at this point, particularly given the last shuffle wasn’t too long ago, so it’s an open question as to who will be tapped to replace Brison, and who will take the Treasury Board file.

On a personal note, Brison played a big part in my early days on the Hill, when I was writing primarily for LGBT outlets. When I was the Ottawa correspondent – and later political editor – for the now defunct Outlooks magazine, I had a monthly segment where I would ask Brison, Senator Nancy Ruth, and NDP MP Bill Siksay (later Randall Garrison after Siksay retired) a question every month to get queer perspectives from the three main parties, and that helped me to grow into the journalist that I am today. He was always generous with his time, and incredibly patient with my rookie status, and I will forever be grateful for that.

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Roundup: A subdued oil price shock

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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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Roundup: A bad case for a dumb idea

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The flirtation with separatist sentiment in Alberta is bringing all the boys to the yard, and suddenly they’re all trying to make a cockamamie case for why this is a real threat. Yesterday it was respected tax economist Jack Mintz who decided to stray way outside of his lane, and insist that Alberta has a better case for this than Great Britain does with Bexit, which is patent nonsense both on its face, and in every single one of his nonsense arguments. And yet, in the rush to pander to the angry sentiment in Alberta and to offer up simplistic solutions and snake oil to what is a series of protracted (and in some cases intractable) problems that require time and patience to resolve. Mintz later went on the CBC to defend his column, and made a bunch of other nonsense arguments that presumes that the US would be a better customer for Alberta oil…despite that the actual pipeline capacity going from Alberta to the US is minimal and don’t think they could easily build more if they can’t even get Keystone XL over the finish line there.

https://twitter.com/EmmMacfarlane/status/1075414877890502656

https://twitter.com/EmmMacfarlane/status/1075415929394102272

Meanwhile, Tyler Dawson makes the case that such a separatist movement not only lacks logic, it also lacks a real leader or the intellectual heft to actually make it something viable. Andrew Leach takes Mintz to task on his assumptions about demand for Alberta oil. Jen Gerson tells Alberta that while they have legitimate grievances, the insistence that Ottawa is simply out to get them risks becoming a pathology, while the separation talk is terrible, and simply burning the system down won’t help anyone. Can I get an amen up in here?

https://twitter.com/EmmMacfarlane/status/1075469089450078208

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Roundup: $1.6 Billion instead of a magic wand

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Yesterday, the federal government announced $1.6 billion in help for the Alberta energy sector – but insisted it’s not a subsidy. $1 billion of it was in loans for exporters to invest in technologies and address working capital needs or exploring new markets; $500 million from to help smaller oil and gas businesses weather the uncertainty, $50 million from the Clean Growth Program, and $100 million in economic diversification projects. It wasn’t something like federal funding for companies to remediate orphan wells, for example. And predictably, Rachel Notley and various other Conservatives immediately dismissed this as not asking for money but wanting “the handcuffs removed,” which seems to me to be code for waving a magic wand to get pipelines built immediately, despite the fact that unless they plan to bulldoze through the Indigenous consultation process, is something the government can’t do. And Andrew Scheer? He went full drama queen with a petulant press release that accused Trudeau of trying to destroy Alberta, sounding very much like a jealous suitor wailing “He can’t love you like I will!”

More to the point, the federal government can’t just ram through the approvals for Trans Mountain, given that the last time they tried to cut corners, the Federal Court of Appeal objected and rescinded their approvals and would do so again, hence why they’re going the route of doing what the court laid out, and that takes time. There is no magic wand. Killing Bill C-69 won’t solve anything because the current system isn’t working, and while the bill is flawed and open to amendment at the Senate, Conservative senators have not consented to any committee hearings before the Senate’s slated (late) return in February (and I have heard various reasons for this, both in opposition to the bill, and because they are pushing back against the committee chair, who they accuse of doing the bidding of Senator Peter Harder). The tanker ban on BC’s north coast? That’s demanded by many of the coastal First Nations. Scrapping the carbon tax? Won’t change anything because it has nothing to do with the oil price differential and oil companies have been asking for a carbon price so that they can have predictability when it comes to climate demands. And then there’s the bogeyman about foreign funded “paid protesters” that the Conservatives blame for everything, despite the fact that they don’t control the courts or the economics of projects. That won’t stop Scheer or Jason Kenney from offering the people of Alberta another vial of snake oil, promising quick approval on pipelines that they can’t actually deliver on.

Meanwhile, amidst more lies and grievance narratives around the federal equalisation programme, Trevor Tombe drops a reality bomb about how the system works and why. Because amidst the demands for magic wands and offering snake oil, the Jason Kenneys of this country will continue to lie about how equalisation works to keep people angry in the hopes of getting electoral advantage for it. We need more people to tell the truth about the system if we’re to keep a lid on the anger and try to do something meaningful to address it rather than simply bow to grievance culture and fabrications.

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Roundup: Starting the Big Move

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Yesterday was the final day that Centre Block was officially in operation. As of today, the big move starts happening, starting with the House of Commons chamber, and will be followed by the other major offices, like the Speaker, the prime minister and leader of the opposition, with the heritage furniture that will continue to be in use. And once that’s done and the building is empty, they can start to open up walls and ceilings to figure out the state of the building, and determine what needs to be done in terms of renovations and restorations, and from that point determine a price tag and timeline. At present, everything is just a guess, so we’ll have to stay tuned. (Here’s a photo gallery of the current House of Commons and Senate, and the new Commons).

The Senate, however, is a different story. Recent testing of the new chamber brought to light the fact that there are acoustic problems related to sound leakage that were first identified two years ago, and despite assurances from Public Works, it wasn’t addressed. That means they have to install new sound baffles which will delay the move by several weeks, which means that there will be even fewer weeks for the Senate to address its full Order Paper in the New Year. Committees can still meet in the meantime, but it seems the Conservatives have decided to engage in some gamesmanship over Bill C-69, which has the Independent senators are complaining about stall tactics.

Meanwhile, here is a lengthy thread looking at the new Senate building, and six facts about the building, its history, and the new renovations.

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