Tag Archives: Transfer Payments

Roundup: A surplus thanks to federal funds

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Something jumped out at me yesterday while doomscrolling, which was New Brunswick crowing that they have a bigger-than-expected surplus thanks to all of the additional federal dollars that were sent to the province because of the pandemic. And it stuck in my craw a bit – provinces have been crying poor when it comes to healthcare dollars and around doing things like improving long-term care, and then they turn around and pat themselves on the back for running surpluses as a result of federal dollars. It doesn’t quite add up.

The fact that certain provinces have been using federal pandemic dollars to pad their bottom lines is a problem for Confederation, particularly as these very same provinces are demanding that the federal government turn over even higher healthcare transfers, and justifying it with historically inaccurate talking points about the original share of healthcare spending without also recognizing the other agreements made in the late 1970s. The current federal government is certainly willing to spend the money, but they have also learned that they don’t want to get burned by it like previous governments have. Recall that when the health transfer escalator was at an unsustainable six percent per year, provincial healthcare spending growth was in the low two-percent range, meaning those additional dollars were spent on other things that did not improve the healthcare system. Similarly, when Stephen Harper tried to buy peace with Quebec and sign a huge cheque to correct a fictional “fiscal imbalance,” the provincial government turned around and cut taxes, which wasn’t the intent of said funding, and yet it happened.

It’s with this in mind that Trudeau has promised that there will be strings attached to future health transfers, and he laid out what many of those strings will be in the campaign, whether it’s hiring targets for doctors and nurses, or minimum salaries for long-term care workers. And yes, premiers will bellyache about it, and the opposition parties will take up those cries in the House of Commons, but we have seen repeatedly over this pandemic that the provinces will demand money and then not spend the money they do get. Time for some accountability for dollars – because it’s all coming from the same taxpayer in the end, regardless of which level of government is trying to make their bottom line look better.

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Roundup: Knives out for O’Toole?

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Erin O’Toole’s future is under discussion, as a number of vocal MPs are coming out to support his continued leadership, and former Ontario premier Mike Harris is adding his voice to the call. But this is as other MPs are phoning up journalists, on a not-for-attribution basis, absolutely savaging O’Toole and the fact that he is a lying liar and an opportunist of the highest order, and that ultimately undermined their case during the election. (Threads here and here).

This is going to start resolving itself at the first caucus meeting, whenever that takes place, because it’s when the party is going to have to vote on which provisions of the (garbage) Reform Act they are going to adopt for the 44th parliament, including the provision about having the caucus hold a vote to start a leadership review process. Why this is important is one of the reasons that makes the Act garbage in the first place – it actually makes it harder for caucus to push out a leader because it establishes a threshold of 20 percent of the caucus needing to demand a vote before it can be held. That exposes his critics at a time when he is deciding on critic portfolios and things like committee chairs for opposition-chaired committees, and he can use that fear-or-favour system to punish his critics if they fail to meet that 20 percent threshold. If they didn’t have this threshold or this framework, we’ve seen leaders read the writing on the wall with far fewer MPs/MLAs going public, and resigning as a result. The (garbage) Reform Act provides protection for those leaders where it’s supposed to be putting the fear of caucus into them, and it’s just such a dark irony that once again, attempts to improve the system only make it worse.

And while there are a bunch of voices (especially over on the CBC) who seem to think that Andrew Scheer was pushed out for his loss, they have all apparently forgotten that he resigned, particularly after his use of party funds came to light. Whether that was an excuse is not really the point – it wasn’t simply because he lost the election.

Programming note: I am taking the weekend off of blogging entirely because I am exhausted from the election and need to catch up on some sleep. See you next week.

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Roundup: Sitting on money, waiting for ICU to collapse

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In case it had escaped you that the incompetent murderclowns who run Ontario are incompetent, we learned yesterday that Doug Ford and his merry band of murderclowns sat on the entire $2.7 billion additional health transfer from the federal government that was supposed to go toward the COVID response, and, well, didn’t. This was during the second and third waves, which didn’t need to happen, and they were explicitly warned that reopening would mean disaster, and they did it anyway. They had money to help them improve testing, tracing, and doing things like improving ventilation in schools, and they didn’t. They sat on it to pad their bottom line.

Is there a lesson here? Yes – don’t give provinces more money without strings attached. You would think that this should be obvious, given that before Jim Flaherty unilaterally changed the transfer escalator from six percent to a minimum of three or GDP growth, we know that provinces were not spending that health transfer only on health – the growth in health spending was far below the growth in the health transfer. For them to demand yet more money with no strings attached – particularly for outcomes – while we have examples like Ford here, who are using the money to reduce their deficit in spite of all the lives that could have been saved it was actually deployed meaningfully, there should be no argument. If they want the money, they need to have metrics and outcomes to ensure that it’s being spent on what it’s supposed to be.

Meanwhile in Alberta, the COVID situation has been allowed to deteriorate so badly that ICUs could be overrun in ten days, forcing doctors to triage who gets ventilators and who will be allowed to die. With this in mind, Jason Kenney finally relented and started re-imposing public health restrictions, but in a byzantine and complex manner, and has said they will allow vaccine certificates or a “restriction exemption program,” because they can’t actually call it a vaccine passport or certificate. Kenney also both apologised for the situation and then did not apologise for lifting the restrictions when he did, so that clarifies things. I’m curious to see if this ricochets through the federal campaign – some Conservatives seem to think it will. In either case, Jason Kenney, his health minister and chief medical officer of health all should be resigning for letting this foreseeable tragedy happen on their watch, but we all know that they won’t, because what does accountability matter any longer?

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QP: One last kick at the hybrid can before summer

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For the final sitting day of the spring, the Liberal benches were once again empty save for Mark Gerretsen, the prime minister planning to appear by video from quarantine. Erin O’Toole led off in person, script on his mini-lectern, and he worried that over five years the government has grappled with Operation Honour, and wanted the prime minister to confirm that the defence minister had never hired someone who was found to previously dismissed from an employer for sexual misconduct — obviously laying a trap because he has something he plans to unveil. Trudeau gave praise to Sajjan for his service. O’Toole noted that Trudeau didn’t really answer and gave him another opportunity, and Trudeau praised their work in changing the culture in the military. O’Toole gave him yet another opportunity in French, and Trudeau repeated that they were taking concrete action make this culture change. O’Toole then raised the contracts to Tom Pitfield’s data services company, and wondered if he had been given any other contracts, and Trudeau noted that the casework database their MPs use, it has strict separation from the party database, and warned against cheap attacks. O’Toole raised two other contracts to Pitfield, noted that they were going to crack down on corruption, and wanted the same from the prime minister. Trudeau dismissed the “baseless personal attacks,” and raised the work they were doing for Canadians.

Yves-François Blanchet, in a somber tone, asked the prime minister to reflect on their choice to create two classes of seniors by giving additional benefits for those over 75, and Trudeau recited that they are always there for seniors and that older seniors have greater needs. Blanchet then wanted the prime minster to increase health transfers to promises, and Trudeau reminded him that they have sent billions to the provinces for help in the pandemic, and that eight out of every ten dollars of assistance were federal dollars, but discussions on increasing transfers were coming in the future.

Jagmeet Singh complained that the ultra rich were not being prosecuted for tax evasion while the government was cutting pandemic benefits, for which Trudeau praised the actions they have taken to help Canadians. Singh then decried that the remaining boil-water advisories on First Nations could take five more years and accused this of not being a priority to the government, and Trudeau reminded him of how many advisories they have solved, and that pretending they did nothing was just misleading and cynical politics.

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QP: Believing a phone call could solve it

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On a fairly lovely day in the nation’s capital, the prime minister was present in the House of Commons, with the usual Liberal in attendance, Mark Gerretsen, a couple of rows behind him amid otherwise empty benches.  Erin O’Toole led off in person and in French for a change, and he listed the people who knew about the allegations against General Jonathan Vance, and whether he knew. Justin Trudeau said that they knew there was an allegation but were not privy to details. O’Toole tried again in English, and Trudeau repeated the answer before he embellished with the talking point that when O’Toole himself heard a rumour of allegations against Vance, his staff went to Privy Council Office, and the same process had been followed, while the current government had done more about changing the culture in the armed forces. O’Toole tried yet again, insisting that emails showed that the phrase sexual harassment was used, and Trudeau more forcefully insisted that they did try to investigate but could not go further which was why they were putting more measures into place. O’Toole tried yet again, with more bluster, for which Trudeau started sermonising about doing more for women and marginalised people in the military.

Yves-François Blanchet rose for the Bloc, and insisted that the prime minster could have personally picked up the phone and stopped the Port of Montreal strike, for which Trudeau insisted that if the Bloc wanted to take action on behalf of Quebeckers, and pass the bill so that they can set up a neutral mediation process. Blanchet again insisted that the prime minister needed to pick up the phone, and Trudeau stated that they tried negotiating for two-and-a-half years, and it was for naught, and he demanded support for the bill.

Jagmeet Singh was up next for the NDP, and in French, he demanded the government withdraw the back-to-work legislation for the Port of Montreal, and Trudeau insisted that they did try negotiations, and that this bill would not impose a contract but rather neutral mediation. Singh then switched to English to demand the government improve the federal sickness benefit — oblivious to what that entails — and Trudeau reminded him that the best leave is the one from employers and that the NDP voted against them implementing it for federally-regulated sectors.

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QP: Weaselling over the Port of Montreal strike

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For Monday, there was but a single Liberal on the government benches, and if you guessed that it was Mark Gerretsen, you’d be right. Candice Bergen led off in person, and she raised the testimony last week that the prime minister’s chief of staff knew about the allegations against General Vance. Harjit Sajjan told her that he followed the same process that Erin O’Toole did when he was in Cabinet and heard rumours about Vance that he wanted investigated — which may not be the slam dunk Sajjan may think it is. Bergen then raised the problem of people flying into the US and then driving over the border, which was allowing variants to spread. Omar Alghabra listed the measures, particularly around air travel, that had been implemented, and quarantine measures. Bergen said that Alghabra wasn’t understanding that people were landing in the US and driving up to the border to avoid hotel quarantines, and Alghabra stated that people still need tests before they fly into the US and upon landing. Gérard Deltell took over in French, lamented that the prime minster said he had no regrets over the handling of the pandemic, and demanded more rapid tests, for which Patty Hajdu reminded him that they delivered over 25 million rapid tests to provinces. Deltell railed at the fact that the government seemed to be blaming the provinces and demanded more rapid tests at the border, and Hajdu reminded him of their measures to date, and that they are working with provinces and territories. 

Alain Therrien led for the Bloc, and blamed the federal government for the strike at the Port of Montreal and stated that the government hadn’t sat both parties down (erm, pretty sure federal mediators have been involved), and Pablo Rodriguez reminded him of the importance of the port to all of Quebec. Therrien accused the federal government of dragging their feet on every labour dispute, and Rodriguez hit back accusing the Bloc of not being there for Quebec.

Jagmeet Singh was up for the NDP, and in French, he raised the death of a thirteen year-old over the weekend and demanded more federal action on the pandemic, to which Carla Qualtrough reminded him of federal supports available. Singh amped up his indignation in English, demanding paid sick leave and more vaccinations to hardest hit areas — both of which are provincial jurisdiction — and Qualtrough reiterated that they are doing what they can to get things like paid leave to people who need it.

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QP: Questions from a fantasyland awash in vaccines

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For the first post-budget Porto-PMQs, Justin Trudeau was present and ready to go, with only Mark Gerretsen in the Chamber with him on the Liberal benches – of course. Erin O’Toole led off, script on mini-lectern, and complained that the vaccine rollout was only running at 58 percent capacity due to supply issues, and Trudeau listed the coming millions of doses being delivered by May. O’Toole groused about the “race” against variants, and demanded border closures from hot spot countries, not naming any countries in particular, for which Trudeau stated that we already have some of the strongest border measures in the world, but they would look at other ways to keep Canadian safe based on science and data, but importation was a fraction of cases. O’Toole then accused the government of “stealing vaccines” from the developing world, and Trudeau pointed out that this was disinformation and that O’Toole did not ask about the budget, which must mean he supports it. O’Toole switched to French, and he demanded increased health transfers to the provinces, and Trudeau pointed out that there must be a reason why the Conservative leader only asks about the budget in French, before reciting how much they have sent to provinces. For his final question, O’Toole claimed that the US changed their travel advisory on Canada, and Trudeau pointed out that in all five questions, he peddled falsehoods to score political points.

Yves-François Blanchet was up for the Bloc, and he decried that the were no increased health transfers in the budget, and Trudeau reminded him that they had a meeting with premiers in November that they said that they would increase transfers once they were out of the pandemic, and pointed to the supports they are already delivering. Blanchet stated that they were going against the wishes of the Quebec government and then mentioned their demand for enriched pensions for all seniors, for which Trudeau reminded that they have been delivering for seniors.

Jagmeet Singh led for the NDP, and unusually started off in English to demand the government invoke the Emergencies Act, and Trudeau reminded him that they have been delivering for provinces. Singh read another sob story from someone who lost a family member for COVID, and demanded improved access to paid sick leave — which is provincial jurisdiction in 94 percent of workplaces. Trudeau noted their federal benefit, and said they would continue to have people’s backs.

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Roundup: Flexibility and red lines on child care negotiations

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A day out from the federal budget, we are getting some reaction to the centrepiece proposal of a massive expansion to early learning and child care, particularly from provinces with whom this all needs to be negotiated. It sounds like several of them are welcoming the new funding, and Chrystia Freeland has signalled some willingness for flexibility, but is drawing a red line around keeping fees low, because the whole point of this is to reduce barriers to women getting in the workforce, and high fees are very much a barrier, even when there are available spaces (which is often not the case). And yes, there are already recalcitrant provinces, looking particularly to Alberta and Ontario, and some of their objections are grounded in the fantasyland that there is no such thing as constrained choice. Of course.

For some more context, here is a good interview with Don Giesbrecht, CEO of the Canadian Child Care Federation, which gives a good lay of the land of the current system of bilateral agreements that the federal government has in place with provinces around childcare funding, and yes, there are strings attached to that funding. This new funding will build on those agreements, which is why it’s not entirely out of the blue and building something from the ground-up, but simply taking things up an order of magnitude from where they exist currently.

Meanwhile, my social media has been flooded with salty New Democrats who think that they’ve somehow caught me out in previously pointing out that this is an area of provincial jurisdiction whenever Jagmeet Singh would performatively demand “concrete action” on childcare or the like. For starters, at no time did I declare this Liberal plan a done deal – it has always been presented as being contingent upon negotiation with the provinces, but this time they’ve put money on the table that the provinces will find hard to refuse, especially because we have all seen the effect that this pandemic has had on women in the workforce. That’s a fairly unique set of circumstance that creates a hell of a lot more political pressure than could be applied previously. More to the point, Singh’s rhetoric, and those of his MPs, is largely grounded in Green Lantern Theory, that it’s simply a matter of willpower to overcome jurisdictional interviews, while they will only admit the need for negotiation in written releases or backgrounders and never out loud. This especially goes with making promises that they will “get it done,” as though they can put on their Green Lantern rings and just willpower it to happen, or drafting a federal bill and expecting the provinces to clamour to the sound of free money rather than doing the hard work of negotiation. Real life doesn’t work like that, which is what I have consistently pointed out. If New Democrats can’t understand that criticism, then I can’t help them.

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QP: Gathering clips of vaccine drama

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In the day following the budget, both Justin Trudeau and his deputy, Chrystia Freeland were both present for a rare change of pace in these pandemic times, and it was nice to see both. Erin O’Toole led off, script on mini-lectern, and he immediately blamed the government for the third wave by not having enough vaccines — because they can be procured from thin air. Trudeau reminded him that they have been securing vaccines for Canadians. O’Toole complained about delays for AstraZeneca doses and about the Johnson & Johnson plant being shut down, and demanded the government to go back in time to do something about it, and Trudeau calmly reminded him that they have exceeded their vaccine targets. O’Toole got anger in the demand for more vaccines, and Trudeau reminded him that vaccinations need to be accompanied by strong public health measures, and then noted that the budget must have been so good because O’Toole had no questions on it. O’Toole switched to French to lament that higher, unconditional transfers to provinces aren’t in the budget, for which Trudeau chided him that in English, O’Toole says that the government is spending too much, and in French, says they’re not spending enough. O’Toole accused the government of not helping Canadians with the budget, and Trudeau hit back, citing the programmes that are helping Canadians instead of just choosing to reduce the deficit.

Yves-François Blanchet led for the Bloc, and he denounced the “age-based discrimination” in the budget because the additional assistance to seniors over the age of 75 was not extended to all seniors. Trudeau reminded him that older seniors have higher costs and many worry about exhausting their savings, so older seniors were getting additional help. Blanchet claimed that explanation didn’t make sense, and Trudeau listed the assistance they have given to all seniors.

Jagmeet Singh was up for the NDP, and in French, he groused that the budget didn’t choose to tax the ultra-rich and cut assistance to people, and Trudeau stated that was false, and that their first act as a government was to raise taxes on the one percent, which the NDP opposed, and listed tax measures in the budget. Singh switched to English to decry the situation in Ontario, and demanded the government use the Emergencies Act to implement paid sick leave in the provinces. Trudeau reminded him that they have been working with provinces throughout the pandemic.

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QP: Blaming the lockdowns on vaccines

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With Ontario back under a “stay-at-home order,” the numbers in the Chamber are again back to bare-bones, with the Liberals once again resorting to only keeping Mark Gerretsen in the Chamber and no one else, with only two NDP MPs present, and four Bloc MPs. Additionally, those Bloc MPs stayed out of the Chamber until after the moment of silence for the death of Prince Philip was over, because they really are that petty about our constitutional monarchy. Candice Bergen off for the Conservatives via video, and she recited the party’s bullshit assertion that the lack of vaccines was responsible for the current round of “lockdowns,” which serious people know was never the way out of the second or third waves. Anita Anand replied by pointing out that Canada surpassed their targets for receiving vaccines by over 3.9 million doses. Bergen then lied and claimed that the Americans issued a travel advisory to Canada last week — that advice had been in place for months and is the same as every other country — for which Patty Hajdu reminded everyone that now is not the time to travel. Bergen complained more about “lockdowns,” to which Hajdu reminded her that even with vaccinations underway that people still need to adhere to public health measures, and that the federal government doesn’t determine local advice. Gérard Deltell then took over in French to proffer the ridiculous complaint that the Americans have fully vaccinated ten times more people than Canada has, and insisted the federal government failed. Anand repeated her response about vaccines delivered, and when Deltell condescended to her about the quality of her French before complaining she didn’t answer the question, Anand repeated that vaccines were ahead of target.

For the Bloc, Alain Therrien complained that the government was practicing “predatory federalism” by attaching strings to future transfers in the budget, which Sean Fraser refuted with listing increased transfers to the provinces. Therrien was not convinced, but Pablo Rodriguez discounted his concerns as rumours, as they were working well with the provinces.

Jagmeet Singh led the NDP, and in French, he complained that the third wave was getting worse, and that the federal government needed to improve paid sick leave — which is provincial jurisdiction in 94 percent of workplaces. Rodriguez again responded by reminding him of federal supports and working with the provinces. In English, Singh declared that Ontario is “on fire” and made a pitch for Green Lantern Theory, including so-called federal support for vaccinations, to which Hajdu reminded him that the field hospitals set up in provinces that need it are from the federal government.

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