After being forced to cancel Ministerial Senate QP in the last sitting week because of interminable procedural votes, it was happening this week on a Tuesday instead of the usual Wednesday, with special guest star Finance Minister Bill Morneau. Senator Carignan led off, asking about tax evasion and the Panama Papers, and wondered why the government wasn’t pursing a blacklist for those caught evading taxes. Morneau first thanked the Senate for the opportunity, then said that they are working with other G20 companies to do things like tighten rules around base erosion and tax-shifting, and went on to note the funds in the budget to combat tax evasion. Carignan pressed on the blacklist, and Morneau spoke about the communiqué that came out of the last G20 finance meeting.
Senator Day was up next, and raised testimony from RCMP Commissioner Bob Paulson regarding the need of RCMP for more resources, as well as their plans to investigate the Panama Papers. Morneau didn’t really answer about the funding, and on a supplemental, Day pressed, making the point that in the budget and the Estimates that no additional resources could be found there. Morneau promised to come back to them with further specifics.
Senator Larry Smith asked about TFSAs and low-income earners, for which Morneau promised a look at retirement dignity and while TFSAs were important, the higher limit the previous government raised it to was not going to help the broadest cross-section of Canadians. Smith wanted more details on the plans, and Morneau meandered through the Canada Child Benefit, which helps people when they need it most — when they have children.
Senator Batters lamented the lack of help for Saskatchewan with either EI for oil workers or help for agriculture. Morneau listed measures in the budget, and promised future measures coming in the fall.
Senator Moore raised the section of the budget implementation bill that restores the need for Parliamentary approval for government to borrow money, and the exceptions raised in the section. Morneau first thanked Moore for his efforts in raising the issue over the past few years why this was important, and then noted the changes in terms of allowing cabinet to still authorize borrowing in times of crisis. Moore then asked when they might see a borrowing authority bill since the budget was not going to be balanced. Morneau retreated to some standard lines about investing in a time of low growth while interest rates are historically low. Carignan rose on a supplemental and brought up the surplus figure in the fiscal monitor. Morneau again retreated to his standard lines that the final report would not be available until September, and his officials assured him that there would be a deficit.
Senator Omidvar rose to ask about people who won’t be able to get infrastructure jobs and community benefit agreements as part of the funding to create longer-term benefits of training. Morneau noted that she was a resident of his riding and praised that fact, then spoke about their collaboration with provinces and municipalities, and hoped there was opportunity to engage with these Canadians who were disadvantaged.
Senator Frum asked about the figures of the PBO regarding the deficit. Morneau said he couldn’t comment on how the PBO got his numbers, but walked through some of how they came up their own figures, including IMF projections and trends.
Senator Joyal closed the round by asking about comments by IMF head Christine Lagarde about Canada’s role in the growth of Caribbean tax havens, and whether he would revisit some of those tax treaties. Morneau repeated his previous answer about G20 agreements around common reporting standards and base erosion.
Overall, it was a more sedate QP compared to others, and but there were some pointed questions from the Liberal senators. It was nice also to see one of the new independents get in a question.
Sartorially speaking, snaps go out to Senator Mobina Jaffer for a sharply tailored red dress with a black jacket and belt, and to Senator Serge Joyal for a nattily tailored dark grey suit with a white shirt and dark blue tie. Style citation goes out to Senator Colin Kenny for a medium grey suit with a white shirt and a terrible multicoloured striped tie, and to Senator Nicole Eaton for a black pantsuit with an off-white shirt and black cravat that was a little too eighties for my liking. Special mention to Senator Dennis Patterson for eschewing a jacket to wear a sealskin vest for the final debate on Bill S-208 on seal products, which passed third reading just before QP.