QP: Poetry and cheap theatre

While both Justin Trudeau and Andrew Scheer were present, in advance of the government’s apology to persecuted LGBT Canadians, Bill Morneau held a brief press conference an hour before Question Period to say that he couldn’t be in attendance that day, but he refuted the Conservative insinuations being made that he was engaged in insider trading, and suggested that they make the allegations in a forum not protected by parliamentary privilege.

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Scheer led off, mini-lectern on desk, and read some propaganda about CSIS warnings that ISIS was training operatives to come back to Canada, and railed about the government paying for reintegration rather than focusing on security. Trudeau assured him that they took security seriously, and had a broad range of tools to do so. Scheer listed the tough measures the previous government took while accusing the current one of relying on “poetry and podcasts,” which set Trudeau off, and he listed off the Islamophobia and rhetoric that lost the Conservatives the last election. When Scheer tried again, angrier in tone (but still not rid of his smirk or breathy delivery), Trudeau said that it was clear that Stephen Harper’s Conservative parties was alive and well, and he wished them luck with that plan. Scheer then pivoted to whether the PM had trust in Bill Morneau, and Trudeau listed off the great things that Morneau had done. When Scheer listed off the disingenuous items he was attempting to brand Morneau with — including the insinuations of insider trading — to which Trudeau went into lecture mode, saying that they expect the opposition to raise substantive issues but are only getting personal attacks, and the way to judge if there was any substance to them is whether they would repeat them outside the Chamber. Guy Caron was up next for the NDP, and raised the possibility of another Ethics Commissioner investigation, to which Trudeau reiterated that it was too bad they were resorting to personal attacks. After another round of the same, Nathan Cullen got up and laid out a charge of insider trading, uttering the words themselves, but Trudeau basically tut-tutted the exchange and listed accomplishments. Cullen amped up his sanctimony, and Trudeau reminded him that the Ethics Commissioner exists to keep these issues out of the political fray.

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Roundup: Mid-term check-in

Over in Maclean’s, John Geddes put together a deep dive into the current government’s midterm woes, and it’s well worth the read – and it’s a pretty long read too. But once you’re done (seriously, this post isn’t going anywhere), I would want to push back on some of the things that he highlights.

For starters, I think that there is something to be said for a government that is willing to walk back on bad promises, and they made a few. Most notably is electoral reform, and the fact that they could actually take the step of smothering it the cradle is actually something that they should be congratulated for. We dodged a bullet with that one, and I wish that my fellow journalists would get that through their heads. Likewise, Bardish Chagger taking back her plans to “modernise” the way that the House of Commons operates is similarly another dodged bullet – most of her plans were terrible and would make things worse, not better. Casting them as failures does a disservice to the fact that they backed down from bad promises. When it comes to Bill Morneau and his troubles, I think it also bears mentioning that the vast majority of the attacks against his tax proposals (and his own personal ethics situation) are largely unfounded, based on disingenuous framing or outright lies designed to try and wound him. The attacks have largely not been about the policies themselves (even though there were actual problems that should have been asked about more), and I think that bears some mention.

I also think that Geddes doesn’t pay enough attention to some of the backroom process changes that the government has been spearheading, particularly on the Indigenous files – many of the problems mentioned need to have capacity issues addressed before funding is increased because we have seen numerous examples of places where money was shovelled out without that capacity-building being done, and it made situations worse. Is it frustrating that some of this is going slowly? Yes. But some of the ground-up work of reforming how the whole system works, and ensuring that once more money flows that it can be spent effectively is something that we should be talking more about, because process matters. We simply don’t like to talk about it because we labour under this belief that nobody reads process stories, so we ignore them, which is why I think some of the calls about “failures” are premature or outright wrong – things are changing that we can’t immediately see. That doesn’t mean that changes aren’t happening.

Finally, there is a list of major legislation coming down the pipe, and I think it bears reminding that the focus on consultation before making some of these changes is as much about inoculating the government against criticism that was levelled against their predecessors as it was about trying to get some of this complex legislation right. Do they get it right all the time? No. There is a demonstrated record of barrelling ahead on things with good intentions and not properly thinking through the consequences *cough*Access to Information*cough* and when it blows up in their faces, they’re not really sure how to respond because they think that their good intentions count for something. I’m not sure that simply focusing on the perceived inexperience of ministers helps when it comes to trying to meaningfully discuss these issues, but here we are.

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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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