Tag Archives: Trade

Roundup: Kenney and Scheer vow to repeat mistakes

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There was a conference in Calgary yesterday called “Energy Relaunch,” during which both Jason Kenney and Andrew Scheer laid out plans for how they propose to get the province’s oil and gas industry “back on track” if they were to form government. The problem is that they seemed to have learned absolutely no lessons from the past few years about where the problems and bottlenecks in the process lie, and what to do about them. Their solutions tended to be to use bigger bulldozers and to gut more legislation, and Kenney more specifically included funding the legal challenges of resource-friendly First Nations communities and targeting “foreign-funded” organisations that opposed development (because it’s all one big conspiracy by the Tides Foundation, and however else makes a convenient scapegoat). But if anyone has paid any attention to the court decisions over the past number of years, especially over Northern Gateway and Trans Mountain, the theme that emerges is that they have been slapped down because successive governments have attempted to cut corners and weasel out of their obligations rather than doing the hard work of proper assessments and consultation with Indigenous communities that would get them the approval they were looking for. The current Liberal government seems to get this fact and is proceeding accordingly when it comes to Trans Mountain, while Scheer and Kenney wail and gnash their teeth about how they didn’t appeal the decision to the Supreme Court of Canada (without articulating what the error in law was), or somehow legislating away the problems (never mind that retroactive legislation will lead to more litigation, and you can’t legislate away your Section 35 duty to consult obligations).

Kenney also promised that if made premier, he would launch a “war room” to counter any critics of the oil sands in real time. The problem is that hasn’t worked to day, and won’t work going forward, but Kenney refuses to grasp that reality.

Energy economist Andrew Leach was also presenting at the event, and has some thoughts as to what he heard as well:

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Roundup: Finishing a ham-fisted job

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In the wake of Karina Gould’s appearance at Senate QP earlier this week, the ISG is reaching out to the media to push the narrative that they desperately need changes to the Parliament of Canada Act in order to “finish the job” of making the Senate “independent,” which has me giving a bit of a resigned sigh because it feels to me a bit like someone climbing onto a steamroller when they’ve barely taking the training wheels off of a bicycle. While there are arguments to be made for changes to the Act, it ignores the fact that it’s actually fairly difficult to do (previous attempts to change the Act have been curtailed because of legal opinions that have stated that it may require the consultation of the provinces), and the fact that it’s probably premature to start making these changes.

While on the one hand, I understand that the ISG is looking to cement changes to the Senate in advance of the election in the event that the Liberals don’t win and a hypothetical Andrew Scheer-led Conservative government starts making partisan appointments again, and they want to protect the gains they’ve made, but on the other hand, they really still haven’t even learned how the Senate operates currently, so demanding changes in advance of that seems a bit precious. The fact that they haven’t managed to figure out some pretty basic procedure (while complaining that it’s being used against them) and then demanding the rulebook be thrown out and rewritten to suit them is problematic, and making what amount to permanent changes to the institution on the basis of what is currently a grand experiment seems completely foolhardy – particularly when they have already negotiated workarounds to most of the issues that are currently irritating them, such as funds for the ISG, while I’m really not sure why the length of vote bells is being treated as a dire circumstance demanding action.

The other thing that bothers me with the interview that Senator Woo gave is that he’s demanding that Trudeau pick up the reins with this modernisation while he’s thus-far been content to let Senators figure it out. Granted, there is an element of “he made this mess and now he’s letting everyone else clean it up” to the whole thing, but I’m not sure I want to trust Trudeau to finish the job of “modernising” the Senate because of the fact that he’s caused significant damage that a future generation is going to have to undo, and along the way, he’s managed to centralise more power within the caucus room as part of his ham-fisted “fix” for a Senate problem that didn’t actually exist. Trying to get him to finish the job may simply be inviting bigger problems that will take even longer to undo.

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QP: Eight questions later…

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With so much news going on, and so many balls to juggle, it was a question as to whether the Conservatives would carry on the tactics they’ve been pursuing the past week or so. Andrew Scheer led off, mini-lectern on desk, and he immediately led off with the falsehood that small and medium-sized business would bear the brunt of the new carbon taxes. Justin Trudeau stated how proud he was of his plan, and they had lowered small business taxes. Scheer tried again, and Trudeau accused the Conservatives of having no plan. Scheer waved around the background documents to claim that the industrial sector is exempt from the same costs as SMEs — deliberately omitting that the rebates are only for trade-exposed sectors — but Trudeau didn’t correct the record. Scheer dug into that same line of questioning, and Trudeau went into a bit of high dudgeon about how Canadians wanted more than opposition but wanted their plan. Scheer tried one last time, and Trudeau again avoided calling bullshit on it, but simply lamented that the Conservatives were unwilling to take climate action. Guy Caron was up next for the NDP, who raised the concerns of BC First Nations opposed to the Trans Mountain pipeline who claim the new process remained rigged. Trudeau picked up a script to read about how the we’re getting the job done. Caron then raised the lack of movement on steel and aluminium tariffs, and Trudeau took up another script to read about how great the New NAFTA was. Tracey Ramsey took over to lament that polling showed people being disappointed with the agreement, and Trudeau assured her that he met with workers in her area who were pleased with the deal. Nathan Cullen returned to the TMX review’s timelines, and Trudeau picked up a script to say that the old process was why the previous government couldn’t get pipelines built.

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QP: Performative carbon outrage

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While Justin Trudeau was off in Toronto to sell his climate rebate plan, Andrew Scheer was back in Ottawa, leading the charge against the idea. And to lead off in QP, he disingenuously suggested that a carbon price would have no effect on the climate (not true), and would only raise costs for families. Dominic LeBlanc responded by touting that they have a plan and the Conservatives did not. Scheer forced a tortured trick-or-treat analogy to insist that large emitters were exempt from the plan — which is a lie — and LeBlanc reiterated his points without correcting the record. They went for another round of the same, and then Scheer reached into his bag of greatest hits to demand the true costs of the climate plan, and LeBlanc hit back that Scheer’s lack of plan wouldn’t be revealed until after the election. Guy Caron was up next for the NDP, and he railed about the concessions in the New NAFTA. Marc Garneau praised the agreement and stated that they were continuing to fight the steel and aluminium tariffs. Caron railed about the exemptions on duties for private couriers but not Canada Post, and Garneau insisted that Canadians were satisfied with the agreement. Alexandre Boulerice heard scorn on the government’s climate targets, and LeBlanc assured him that they were living up to their commitments, and noted the Nobel prize for pricing pollution, which is what the government was doing. Boulerice groused about pipelines, and LeBlanc gave more assurances of their plan.

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Roundup: Dredging up deficit panic

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We’ve seen a return of questions in the past few days about the federal deficit – while the Public Accounts have shown that it was a little smaller than projected, it’s still there. The Conservatives hope to make hay over this in the next election, and as part of his “one year to go” speech over the weekend, Andrew Scheer repeated the lines that Stephen Harper mockingly performed over the election about how the Liberals promised just a “tiny little deficit” and well, it doesn’t look like they’ll make balance next year like they initially promised. Mind you, Scheer and his crew also ignores the fact that the Liberals were handed a $70 billion hole in GDP when they took over, so their spending promises are pretty much in line with their promises, but they made the choice to simply borrow to make up the difference – and yes, governing is about choices. Kind of like how the Conservatives chose to underfund a number of major projects in order to achieve the illusion of a balanced budget, that the Liberals had to then pick up the pieces on (Phoenix, Shared Services), and that’s also part of why they’re in the red. But you know – details.

In light of all of this fear-mongering, Kevin Milligan does the math on deficits, and well, it’s not quite the doom we’ve been thinking, as the debate remains trapped in the nineties and isn’t catching up to current realities.

https://twitter.com/kevinmilligan/status/1053691438829985794

https://twitter.com/kevinmilligan/status/1053692158564163585

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Meanwhile, Andrew Coyne worries about the deficits, with the recall about how the not-so-big deficits of the seventies suddenly metastasized out of control in the eighties, but he doesn’t math out his fears either.

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QP: Trying to lay an obvious trap

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Following statements marking the two fallen soldiers who were killed by terrorists on Canadian soil four years ago, Andrew Scheer led off in French, mini-lectern on desk, reading a demand to deal with returnees from groups like ISIS, and that included demanding support for their opposition motion. Justin Trudeau responded with a statement of support for the police and intelligence services who are looking to bring these people to justice, and that they would support their motion. Scheer switched to English to repeat the demand, saying the government hasn’t done enough, and Trudeau reiterated the response in English. Scheer switched to the Mark Norman case, demanding the records from PMO be released to Norman’s defence, and Trudeau said that he wouldn’t comment on the case as it’s before the courts. Scheer insisted that he didn’t want comment on the case, but wanted to know if he would release the documents, to which Trudeau said that there were all kinds of other things they could ask about but they were fixated on this court case he couldn’t comment on. Scheer took Trudeau up on the invitation to ask about the New NAFTA, and wondered about caps on dairy exports to third countries, but Trudeau simply praised Supply Management and didn’t answer. Guy Caron was up next for the NDP, lamenting that Canada could not meet their GHG targets, to which Trudeau accused the opposition of refusing to accept that the economy and the environment to together. Caron changed to French, and railed about the purchase of the Trans Mountain pipeline, and Trudeau listed investments in environmental protection that they’ve made, and insisted that they would meet their GHG targets. Hélène Laverdière demanded that arms to Saudi Arabia be halted, to which Trudeau picked up a script to read his condemnation for the killing of Jamal Khashoggi, and said that they were working closely with G7 allies. Laverdière switched to English to repeat the demand, and Trudeau read his English version of the script, with new paragraphs on strengthening export permit reviews.

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Roundup: Hitting the one-year mark

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Yesterday marked the one-year point before the next fixed election date, which is one of those things that I find terribly annoying because in a confidence-based system like ours, fixed election dates are anathema to how our system should work. And instead of providing some illusory “stability” for opposition parties to plan for an election when a government could theoretically call for a “snap” election at any point, all a fixed-election date has managed to do is shift the incentives for governments to back-load their programmes and has made the pre-writ period a year-long campaign (at least), much as the election calendar south of the border has done. So yay for that.

https://twitter.com/PhilippeLagasse/status/1054109748310601728

To mark the occasion, Andrew Scheer held a campaign rally to fire up his troops for said year-long campaign, and with it, he predicted it was going to “get nasty,” and repeated the usual canards that “The Media” and the pundits were on the Liberals’ side (which is both ridiculous and factually untrue, and hey, remember how all of those editorial boards endorsed the Conservatives last election? No?). Of course, it should also be remarked that Scheer has a propensity for untruth that is unparalleled in recent memory in Canadian politics, so his lying about the media should come as no surprise, while he spent the day shitposting disingenuous bullshit about the carbon price framework. But remember, it’s the other guys who will be “nasty.”

The other grating thing about the year-long election campaign is that the obsessive interest in polls will only get worse, as the analyses of polls have already begun, never mind that a year is a very long time in politics, and campaigns matter. And yet, that’s where we are and will continue to be until We The Media start covering actual issues instead of polls in our usual flawed way (followed by the usual lamentation about how the polls didn’t predict the outcome and wondering what happened). Wash, rinse, repeat. It’s going to be a slog of a year.

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Roundup: Changing the accounting rules

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There were some fairly big changes announced yesterday, but the way in which it was reported was interesting if you compared coverage. For example, The Canadian Press led with the headline of a $19-billion federal deficit last year, but didn’t explain until the fifth paragraph that the accounting rules had changed, and described it as “confusing matters,” and then engaged in both-sidesism to have the Conservatives rail about the size of the deficit rather than really explain what the changes meant. The Financial Post mentioned the changes in the second paragraph, but focused on the size of the deficit. It was the CBC’s coverage that spent the full story focused on the accounting rules changes and what they mean, and how that affects the reporting of the figures, which has a lot to do with unfunded pension liabilities that are now being put on the books in a transparent manner that the Auditor General has been calling for, for years now. Context like this is important, and it’s disappointing to see it obscured because writing about the deficit figures is sexier without explaining what they mean, so well done there. You’re really serving your readers.

As with any of these stories, however, the best commentary came from some of the best economists on Twitter, who put it all into context. The full Kevin Milligan thread explaining it all is here, but I’ll post some select highlights.

https://twitter.com/kevinmilligan/status/1053342629574828032

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He also busted the myths about the deficit spending by pointing to the $70 billion hole in GDP that the Liberals were left with when they took office, in part because of the oil downturn and technical recession that the Conservative narrative keeps ignoring.

https://twitter.com/kevinmilligan/status/1053393949417586688

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Also, Mike Moffatt points out the significance of those accounting rules around pension liabilities on the reporting of the books.

https://twitter.com/MikePMoffatt/status/1053342822017982465

https://twitter.com/kevinmilligan/status/1053354656384962560

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QP: More Mark Norman insinuations

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While Justin Trudeau was in town but not in Question Period, Andrew Scheer was also away for reasons undisclosed. Candice Bergen led off on the Vice-Admiral Mark Norman issue again, demanding that the government turn over recordings of Cabinet meetings where shipbuilding contracts were discussed. Ralph Goodale got up to respond by reminding her that this is before the courts and they can’t discuss it. Bergen raised the spectre that the government was destroying records because of the Ontario Liberals did in relation to the gas plants scandal. Goodale reminded her of the Standing Orders that state that matters before the courts can’t be discussed. Bergen tried again on the same insinuations, and Goodale said that the government follows the law. Gérard Deltell got up to try again in French, and Goodale reminded him about the independence of the courts. Deltell reminded him that Paul Martin released records for the sponsorship scandal, and Goodale cautioned him that commentary like that was not permitted. Guy Caron was up next for the NDP, demanding expungements instead of pardons for former simple possession convictions. Goodale reminded him that the old system didn’t work which was why they changed it, and that they were putting in a new expedited process for those pardons. Caron asked again in French, and Caron reminded him that the expungements for when the law itself was discriminatory such as when it criminalised people for being gay. Hélène Laverdière got up next, and asked the government to apply the Magnitsky Act on Saudi officials responsible for the disappearance and possible death of Jamal Khashoggi. Chrystia Freeland assured her that they were working with partners to call for answers, but when Laverdière asked again in English, bringing up our arms sales, and Freeland gave a more pointed response about the G7 foreign minister’s statement that she led.

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Roundup: Stuck on the Norman questions

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Yesterday’s somewhat bizarre Question Period, with the Conservatives focusing on a single question around Vice Admiral Mark Norman, certainly got the attention of media outlets, but it wasn’t all positive news, given how they it was also pointed out how they were lacking in any kind of prosecutorial style or killer instinct around it. It was just repetitive. Many of the points they made also didn’t seem to land – such as saying the PM had already “tried and convicted” Norman when he remarked that the courts would sort it out before Norman had even been charged – something that they are trying to use to insinuate that the whole affair is politically motivated.

As a reminder, Norman’s lawyers are looking for records from PMO, PCP, DND, the Department of Public Services and Procurement Canada, the Department of Justice, the Treasury Board, and the Atlantic Canada Opportunities Agency, and that the documents being demanded include cabinet minutes, briefing materials and memos, and some ask for all forms of communication including emails and Blackberry messages. Those have all been deemed Cabinet confidence, which the Canada Evidence Actallows government to keep secret – the danger there, however, being that the court could decide that if the government doesn’t turn them over that the trial isn’t a fair one, and they could dismiss the case. As I remarked in my QP recap, I think the possibilities exist that some form of access could be negotiated that could mean a court-appointed officer could examine them to determine what is relevant as they do in cases of national security-related secrecy (like terrorism trials or people being held on security certificates), because the laundry list being demanded by Norman’s defence could very well be a fishing expedition and they want as broad a swath as possible to try and find something, anything, of use. (It’s also likely that the information is not only Cabinet confidence, but also commercially sensitive, which adds new layers of complication).

The other interesting fact that is still playing out is the fact that another public servant has been named as an alleged leaker, but he has yet to be charged, and this fact is making the Conservative suspicious that this is making Norman out to be a political scapegoat. Or rather, that’s the claim they’re making as they put on their dog and pony show about trying to make this into some kind of a cover-up, but we have nothing to point to this one way or another – just innuendo, which is enough to make political hay out of.

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