Apparently, we’re talking equalisation again after it was “revealed” that the current formula was renewed for another five years in the budget implementation bill and nobody cottoned on to the fact. Err, except that it was right there for everyone to see. And so you have a bunch of performative outrage from the likes of Jason Kenney about how this was the “deceitful scrapping of Equalization Renegotiation talks,” which is of course, utter bullshit but he need to create outrage that will drive his base – because if there’s anything that will be guaranteed to drive outrage in the West, it’s the deliberate lies being spread about how equalisation works in order to make themselves look like the victims in all of this (never mind that even in the depths of the recession they had the highest fiscal capacity in the country, and the fact that they have a deficit because they made the political choice to keep taxes low and not implement a PST in Alberta). But why be truthful and talk about the system honestly when you can foment outrage with lies? Way to go there. Sure, you can make the point that there could have been more public discussions around it, but there were discussions at the federal-provincial level, despite what Kenney claims.
This graph in particular is important for understanding the claim that AB didn't receive help during its bad times. It's true, insofar as equalization is concerned, because our overall fiscal capacity remained the highest in Canada. pic.twitter.com/n6GDKZlWEV
— Andrew Leach (@andrew_leach) June 22, 2018
"Even the 2016-17 data reveals very high fiscal capacity for Alberta — higher than all other provinces, at $11,637 per person — even during the depths of its recent recession."
— Andrew Leach (@andrew_leach) June 22, 2018
And finally this table, again from @trevortombe's blog post, lays waste to the Great Equalization Resource Revenue Red Herring (see, GERRH even sounds angry). If resource revenues were excluded, Quebec would get more, not less and Alberta would still be a have province. pic.twitter.com/42EPCUE6u0
— Andrew Leach (@andrew_leach) June 22, 2018
When some today claim AB was left behind during its recession, and should have received something, consider this: even at worst, our economy was stronger than others. We don't get EQ for a good reason. pic.twitter.com/l2Q2eRVVui
— Trevor Tombe (@trevortombe) June 22, 2018
Also, to drive home the point that Alberta is not the have-not province some claim it is, in good times and bad for at least four decades Alberta has had the highest fiscal capacity of any province. pic.twitter.com/qqr9xtJkP8
— Trevor Tombe (@trevortombe) June 22, 2018
This particular share of GDP was chosen by the previous Conservative government under PMSH, of which @jkenney was a Minister. One problem is it's a fixed pool, so even if unnecessary it's paid out. We should talk about these specific things, not pretend the whole thing is unfair.
— Trevor Tombe (@trevortombe) June 22, 2018
This is something where some sensible changes could be made. The pre-set equalization amount isn't ideal, and inconsistent with the core principles put forward by the expert panel on the topic a decade ago https://t.co/ys1C6VzlHO
— Trevor Tombe (@trevortombe) June 22, 2018
"AB has a big deficit; we should get EQ." No. It shouldn't.
Imagine if a province that cut taxes would see Feds come along and fill in the gap. Obvious incentive problems there. So EQ is based on "ability", or, more intuitively, on "economic strength". AB is at the top. #ableg pic.twitter.com/0Jr4piFVR4
— Trevor Tombe (@trevortombe) June 22, 2018
If you're arguing that Alberta should get more from equalization at the expense of one of the provinces represented by the other curves on this chart, you're not arguing for equalization. It's that simple. https://t.co/bpN6BjxFjs
— Andrew Leach (@andrew_leach) June 22, 2018
Which brings us back to the issue of whether or not this change in the budget implementation bill was done underhandedly. Obviously the fact that it was a) in the budget; b) in the budget implementation bill for all to see; and c) raised at committee, clearly it wasn’t being hidden very well if that was the intention. Add to that, there have been ongoing consultations at the ministerial level for months, which again, not exactly being done sneakily. Paul Wells dug into the paper trails and found all of the receipts. And yet it’s being decried as having been done in some underhanded fashion. Why? Because the Globe and Mail reported that this was done “quietly.”
https://twitter.com/AaronWherry/status/1010183605581164545
https://twitter.com/AaronWherry/status/1010186623366164480
A few more facts, for the record:
Officials have been talking since 2014, and held meetings in summer / fall 2017
Was on the agenda and discussed at the December 2017 FinMin meeting
Was in the Budget, AND BIA1 (C-74)
Prov officials were consulted on the draft regs.#cdnpoli https://t.co/UY2oNjA7eG
— Daniel Lauzon (@DanLauzon) June 22, 2018
"Hiding in plain sight"? In addition to Budget 2018 and BIA1, #equalization was on the agenda from the December 2017 meeting. We event sent letters to Ministers confirming Government was moving forward after consultation #cdnpoli pic.twitter.com/RwZqY3nOK1
— Daniel Lauzon (@DanLauzon) June 22, 2018
If this is indicative of any problem, it’s the fact that our opposition parties are not doing their jobs. The Conservatives have long-since outsourced their opposition to the Globeif their QP questions are anything to go by (and confirmed by this latest “outrage”), not to mention the outsourcing of yet more homework to the Parliamentary Budget Officer, and more to the fact, rather than doing their jobs of scrutinising the legislation and the budget, they spent the entire spring session railing about the India trip, inventing much (though not all) of the outrage out of whole cloth, and demanding the “costs” for the carbon tax where much of the data is already publicly available or does not exist where provinces have not yet come up with their plans. But instead, they spent their time trying to invent smoking guns that would “prove” that this government is out to raise taxes to pay for their deficits (again, ignoring that the funds from carbon prices all get returned to the provinces). If you’re the Official Opposition and can’t do your own homework, then what exactly are you doing? You’re in parliament to do a job – not to generate outrage clips for social media. And yet here we are.
https://twitter.com/kevinmilligan/status/1010195426396422144
Good reads:
- Justin Trudeau got fined $100 by the Ethics Commissioner for being too slow to report a gift of sunglasses (valued at $300-$500) from the premier of PEI.
- The National Postdug into those recently-resurfaced allegations that Trudeau had groped a reporter at a festival 18 years ago.
- Here’s a look at how thrifty it’s been that the PM has moved into Rideau Cottage while they figure out what to do with 24 Sussex.
- Chief Justice Richard Wagner held a rare press conference yesterday and spoke about Canada being a moral voice in the world, and leader in the rule of law.
- The government has concluded talks with Davie shipyard to provide three medium icebreakers for the Canadian Coast Guard.
- The government announced new measures to help the North Atlantic Right Whale, and the Southern Resident Killer Whale populations.
- Trump’s tariffs on Canadian softwood lumber is causing a spike in American housing prices. Who would have thought?
- While the Clerk of the Privy Council wants to make it easier to fire non-performing civil servants, people say the powers exist but aren’t being used properly.
- A study shows that the Charter of Quebec Values debate contributed to radicalization in that province, so well done everyone!
- Apparently the Liberals plan to hold their summer caucus retreat somewhere in the Prairies this year.
- Here’s a look at the tough times that Jagmeet Singh has found himself in lately.
- Andrew Coyne mulls over the recent columns on the potential for a snap election.
- Susan Delacourt looks at how Chrystia Freeland became Trudeau’s de factodeputy prime minister.
- Andrew MacDougall worries about what happens with politicians who have no shame and lie (but only focuses on Trump when it also applies to Scheer).
- Colby Cosh delves into the court decision that struck down Alberta’s attempt to protect its craft beer industry with trade barriers.
- My weekend column delves further into the heart of what’s wrong with Question Period, and how we need to fix the structural problems before it can improve.
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