QP: Veteran benefits before reruns

Thursday before a constituency week, and not only were the benches starting to thing out, but Elizabeth May was the only leader present, not counting “parliamentary leader” Guy Caron. Conservative Quebec lieutenant Alain Rayes led off, railing about the news that elite soldiers who are ill or injured for more than six months will have their benefits cut off. Diane Lebouthillier — surprisingly (but with neither the veterans affairs minister or his parliamentary secretary present) — answered, saying that there was a six-month grace period, and they got a pay increase and have added benefits. Rayes repeated the question, and this time Kent Hehr, the former minister, offered assurances that veterans were a priority. Rayes offered some added sanctimony for the apparent callous treatment of said troops. Hehr repeated his answer, before Candice Bergen got up to repeat the question in English, and Lebouthillier got back up to repeat her previous answer, noting that the Chief of Defence Staff had reviewed the file. Bergen got back up to try and lump this with the other faux scandals, but Lebouthillier reiterated her answer. Guy Caron got up next, leading for the NDP, demanding to know if CRA had recouped $25 billion of it had simply been identified. Lebouthillier essentially confirmed the latter, saying that they were “on the way” to recouping it. Caron railed that KPMG’s clients were not being named and shamed on the CRA website, but Lebouthillier repeated her response. Alexandre Boulerice got up next to rail about what tax avoidance was considered abusive, but Lebouthillier praised the work that CRA was doing. Boulerice ranted about tax treaties, and Lebouthillier noted that those treaties are now the CRA is able to conduct investigations and lay charges.

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Roundup: Blame Dawson or the system?

As the Bill Morneau imbroglio starts to fade behind the outrage du jour, being the Paradise Papers, Andrew Coyne decided to take another crack at the issue, this time taking a swing at Conflict of Interest and Ethics Commissioner Mary Dawson and her handling – or mishandling – of the whole affair from the beginning. The problem of course is that Coyne’s piece relies heavily on commentary from local civically illiterate crank and guaranteed quote machine Duff Conacher, for whom everything is evil and wrong, and why he hasn’t yet been labelled a vexatious litigant by the courts is beyond me. Regardless, it cannot be denied that yes, Dawson herself is a problem, but not the only problem.

A few days ago, Andrew Potter wrote a piece in the Globe and Mail about the whole sordid history of why we have the Commissioner position in the first place, and why it has always been a problem. And he’s right in pointing out that the point of this position has been politicized from the beginning, but as with so many of our watchdog or “Independent Officer of Parliament” positions these days, they exist as much to deflect problems onto as they do to act as the instrument by which the opposition can use as both a cudgel to launch their attacks, and a shield to hide behind if there is any counter-fire.

And to that end, we can’t simply blame Dawson herself – as much as she is and always has been part of the problem. Much of that lies on MPs themselves, who created the regime, wrote rules that don’t include ethics guidelines, and when presented with the litany of problems with the legislation, shrug and make minor tweaks without addressing the big stuff. And it happens constantly, so when imagined scandals happen, they can scream and rail that just following the rules isn’t good enough, but that the alleged transgressor must have known better and should have exceeded them. Never mind that it’s a nonsense frame to put around issues, but these are also the same rules that those MPs put into place. Saying that the rules they created for themselves aren’t good enough is galling, and one has to constantly ask why they didn’t create rules that were good enough in the first place if they knew that there were problems – and yes, they did know, because Dawson herself identified them. It’s childish politics, and just manages to make a farce out of their feigned outrage (not surprisingly).

Meanwhile, Conacher managed to get a whole piece out of the Star by complaining that the government is wrong in saying there aren’t enough qualified candidates for the Ethics and Lobbying Commissioner positions because he applied for the Lobbying Commissioner position and hasn’t been chosen. Err, that may be a reflection on you, Duff, and this exercise in your ego may be part of the reason why you’re not chosen.

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QP: Decrying a fictitious pardon

While Justin Trudeau remained away at the APEC summit, and with Andrew Scheer elsewhere — despite having been present for caucus just hours before — it was up to Lisa Raitt to lead off QP, and demanded to know if Liberal fundraiser Stephen Bronfman was under CRA investigation for his inclusion in the Paradise Papers. Diane Lebouthillier simply stated that they were treating tax evasion seriously and had invested in fighting them. Raitt stated that since the PM assured reporters that he was satisfied with Bronfman’s explanation, she accused him of interfering with the investigation.  No change in Lebouthillier’s answer. Raitt then, incredulously, declared that the PM had “pardoned” Bronfman and railed about separate rules for Liberals than anyone else. Lebouthillier reminded her that she can’t comment on individual cases, but hey, the Conservatives didn’t treat this like a priority. Alain Rayes tried the same lines again in French on two separate occasions, but Lebouthillier remained unmoved, adding in some points about good economic news. Guy Caron was up next, noted his party’s call to bring Bronfman and former Senator Leo Kolber before committee and demanded to know if the Liberals would support them. Lebouthillier assured him that CRA now has the capability to check every tax return. Alexandre Boulerice repeated the question in French, got much the same reply, adding that committees are the masters of their own destiny. Boulerice selectively quoted a couple of Liberal MPs who had noted that there was no demonstrated illegality in the papers, and Lebouthillier repeated the points about investment in the CRA. Caron got back to demand the government change the law to close loopholes, but Lebouthillier reiterated the billion-dollar investment in CRA.

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QP: A promise that action is being taken

While the Prime Minister was off to the APEC Summit, the rest of the leaders were present in the Commons for what was likely to be a repeat of yesterday’s gong show. Andrew Scheer led off, mini-lectern on desk, and in French, he read a condemnation of the prime minister’s silence on tax havens, demanding to know when he knew about his fundraiser’s offshore holdings (which said fundraiser disputed). Diane Lebouthillier listed off the measures that the government has taken to combat tax evasion — a billion dollar investment in the CRA, which has led to 980 investigations, 42 criminal investigations of structures abroad, a list of pending criminal charges, and billions in potential recoveries. Scheer reiterated it in English, got the same answer, and when Scheer gave his standard disingenuous talking points about the government going after small businesses while leaving their wealthy friends alone, Lebouthillier reminded them that when they were in power, they didn’t treat tax evasion as a priority. Alain Rayes took over, gave some hand-waving about the Sponsorship Scandal (no, seriously), and Lebouthillier reiterated her list. Rayes complained that CRA wouldn’t publish the tax gap data, and Lebouthillier listed even more facts about combatting tax evasion. Guy Caron was up next, demanding the government stop defending the CRA. Lebouthillier made a quip that she had more expertise than Caron did about fishing (which I’m not sure translated as well in English), and gave her usual rebuttal. Alexandre Boulerice demanded action against tax havens, and Lebouthillier reminded him that it was a priority in her mandate letter, which is why they hired auditors to tackle four jurisdictions per year. Boulerice demanded renegotiated tax treaties, and Lebouthillier listed more actions yielding results. Caron got back up to repeat the demand for renegotiations in English, and Lebouthillier stuck to her guns — and talking points.

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Roundup: Is there meaning to staff changes?

The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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Roundup: Holding companies and crying wolf

The fixation on Bill Morneau and his family wealth is becoming mind-numbing, with new conspiracy theories and allegations of conflicts of interest arriving daily. While the Conservatives made him the subject of their Supply Day motion, demanding he produce all documents he shared with the Ethics Commissioner while continuing to promulgate the absurd conspiracy theory that he was pushing through the private corporation tax changes for the benefit of his company, while the NDP crowed about more alleged “appearances” of conflicts with his tabling a pension reform bill that his family company could, in theory, benefit from. And the subject of whether or not he still controls shares in said family company went through the media cycle like a tornado, with confirmation from the Ethics Commissioner in committee testimony that she didn’t tell Morneau to place his shares into a blind trust – because, as it turns out, he doesn’t control them, having already offloaded them into a holding company that he doesn’t control (apparently his wife does), and none of this is subject to current rules under the Conflict of Interest Act. In response to it all, Morneau sent a letter to the Commissioner requesting a meeting to see if there’s anything else he can do to further comply with the rules that he’s already complying with per her advice.

Two things here – one is that the Commissioner has raised this exception to the Act in the past, and when the Act last came up for review in 2014, she flagged it then and it wasn’t acted upon. Guess who was in power then? The Conservatives, who also pushed through all of those changes to various accountability legislation in 2009, along with the NDP. The second point is that we have constantly been bombarded with constant baseless accusations about the “appearance” of a conflict of interest for everything under the sun. And with these various conspiracy theories being put forward, even Occam’s Razor will tell you that the idea that these changes being put forward, either to pensions or private corporation taxation, for the benefit of Morneau’s company are absurd on the face of it. Pension reforms have long been debated, and there are reams of data about the problems that these private corporations are being used for reasons they were not intended to be by wealthy individuals in order to avoid taxation. Trying to use Morneau as an excuse to make the government back off on either is absurd and shows just how debased our ability to debate is in this country if debate is being replaced by personal attack. Never mind the fact that there has been a whole lot of crying wolf. If everything is a conflict, then nothing is a conflict. Sooner or later a wolf will come, and nobody will care anymore, having been completely numbed by the constant cries beforehand.

(Incidentally, Dawson also called on the government to amend their fundraising bill to include parliamentary secretaries as those who must report, for what it’s worth).

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Roundup: The demise of Energy East

The news that TransCanada decided to cancel their plans for the Energy East pipeline yesterday created a predictable firestorm of reaction, from the gloating of Montreal mayor Denis Coderre, outgoing Saskatchewan premier getting in his last kicks, to the histrionics of the Conservative caucus. The government’s line is market conditions have changed since the project was first proposed – and they’re entirely correct. But that doesn’t stop the rhetoric, either from TransCanada itself, or from the Conservatives, who are peddling some incredulous, mind-boggling lines to vilify the government.

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But seriously, there are plenty of charts and graphs that show how the market conditions have changed beyond just the world price of oil (which is a bit part of it), but that the capacity with the other approved pipelines changes the equation for the hole that Energy East would have filled, and it’s no longer clear that it was a clear-cut decision after all.

Also, it should be mentioned that as much as TransCanada is blaming government regulation, they did balls this up on their own end more than once, and do need to take some of the blame along the way. But why take that blame when you can shake your fist at the government?

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And this having been said, there is a proud Alberta tradition that is underlying all of this. Because some zombies refuse to die.

Meanwhile, Paul Wells looks at the current record of the government in trying to attract investment, and wonders if we really are a place that will get the big things built, or if it will all collapse in tears and recriminations, driving investors away.

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QP: Local businesses for local people

With Justin Trudeau off to the United Nations for the rest of the week, we weren’t expecting fireworks, but rather the continued caterwauling about the proposed tax changes, that are sure to doom the whole economy. Andrew Scheer led off, worried about what the tax changes would do to “local businesses,” coincidentally the very new campaign that his party has launched. Bill Morneau reminded him that the changes were about ensuring that the wealthiest Canadians couldn’t use these mechanisms to pay less tax. Scheer talked about two local craft brewers who were “middle class,” and Morneau quipped that he was sure that Scheer was happy to defend the wealthiest Canadians. Scheer wondered how many jobs these measures would create, but Morneau stuck with his points. Alain Rayes then picked up the line of questioning in French, and Morneau insisted, in French, that he was listening and would ensure that the system was fair. After another round of the same, Thomas Mulcair rose for the NDP, worried that th government was looking to do away with the “bilingual bonus” in the public service, to which Dominic LeBlanc assured him that they would ensure a bilingual public service. Mulcair pressed in French, and got much the same response. Mulcair moved onto the topic of Canadians being barred from entering the US post-marijuana legalisation, to which Ralph Goodale reminded him that we can’t dictate to the Americans who they let into their country. Mulcair then asked about cannabis edibles, and Goodale assured him that work was ongoing.

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Roundup: Freeland brings the vague

The morning belonged to Chrystia Freeland yesterday, starting with her speech on NAFTA renegotiation at the University of Ottawa, followed by her appearance before the Commons trade committee to answer questions – however vaguely – about what the country’s priorities were. And while she did list ten things that Canada is looking for (compared the American wish list of 100 items), she didn’t bow to opposition pressure to negotiate in the media, or to lay out which of the items on that list were merely for show, whether that’s the proposed chapter on gender or Indigenous issues. It was driven home several times that yes, Supply Management is going to be defended (no matter how many times the different opposition parties have tried to play the game that only they truly love the system). And as for talk about things like harmonizing regulations – a constant promise that never seems to make much progress no matter which government is in power in either country – it has become clear that this is something that the government began doing their homework on since Trump began raising trade issues in the 2016 US election.

Meanwhile, Paul Wells evaluates Freeland’s deliberate vagueness in what she was trying to convey about the talks, while Andrew Coyne wonders if the Canadian government’s wishlist isn’t a deliberate attempt to sandbag the talks from the start, possibly in the hopes of keeping things status quo.

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Roundup: Concern trolling over tax loopholes

There’s been a great deal of concern trolling going on over the past few days when it comes to the planned changes to self-incorporation to close the tax loopholes found therein. Conservative leader Andrew Scheer tweeted out another of his disingenuous messages yesterday, talking about “hiking taxes” on doctors – who are leading the concern trolling charge against this closure of self-incorporation loopholes – which is not surprising, but nevertheless not exactly the truth about what is going on.

Meanwhile, economist Kevin Milligan has been dismantling the concern trolling arguments with aplomb, so I’ll let him take it from here:

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