Tag Archives: Auditor General

Roundup: Dredging up deficit panic

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We’ve seen a return of questions in the past few days about the federal deficit – while the Public Accounts have shown that it was a little smaller than projected, it’s still there. The Conservatives hope to make hay over this in the next election, and as part of his “one year to go” speech over the weekend, Andrew Scheer repeated the lines that Stephen Harper mockingly performed over the election about how the Liberals promised just a “tiny little deficit” and well, it doesn’t look like they’ll make balance next year like they initially promised. Mind you, Scheer and his crew also ignores the fact that the Liberals were handed a $70 billion hole in GDP when they took over, so their spending promises are pretty much in line with their promises, but they made the choice to simply borrow to make up the difference – and yes, governing is about choices. Kind of like how the Conservatives chose to underfund a number of major projects in order to achieve the illusion of a balanced budget, that the Liberals had to then pick up the pieces on (Phoenix, Shared Services), and that’s also part of why they’re in the red. But you know – details.

In light of all of this fear-mongering, Kevin Milligan does the math on deficits, and well, it’s not quite the doom we’ve been thinking, as the debate remains trapped in the nineties and isn’t catching up to current realities.

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Meanwhile, Andrew Coyne worries about the deficits, with the recall about how the not-so-big deficits of the seventies suddenly metastasized out of control in the eighties, but he doesn’t math out his fears either.

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Roundup: Another useless voting marathon

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Unless a miracle happens and someone buckles, MPs will still be voting when this post goes live, because the Conservatives decided to demand another marathon vote session on the Estimates in order to prove a point. The point was that they want the government to table a document prepared by the public service about carbon pricing, which allegedly shows the fiscal impact – but it was redacted when released. The Conservatives see this as the smoking gun they need to “prove” that the federal carbon price backstop is a cash grab. Err, except the federal government isn’t keeping the revenues, and the provinces have until this fall to announce how they will be recycling the revenues, whether through tax cuts or whatnot, and lo, the government last month tabled a report that basically showed the efficacy of carbon pricing and that they’re waiting for the provinces to announce what their systems will be.

The Conservatives decided that their pressure tactic would be another round of line-by-line Estimates – because that worked so well the last time when they tried to force a meeting on the Atwal Affair™, only to buckle before votes could go into the weekend, and then they blamed the government for creating their own discomfort. Kind of like blaming someone else for when you hit yourself in the face on purpose to get attention. “You made me do this!” they cried. No, they didn’t, and worse, it was not only tactically incompetent (the votes had nothing to do with the demand then, and it doesn’t this time either), but by overplaying their hand, they voted against line items in the Estimates for things like funding veterans pensions or public services, all of which went into attack lines. And this time, because the government scheduled the vote for 10:30 PM, the fact that the Conservatives forced the 200 votes rather than the single vote means that Liberal MPs can complain that the Conservatives were keeping them from attending Eid celebrations in their ridings at dawn (some of them going so far as to cry Islamophobia). It’s a reach, and both sides are self-righteous about this, but come on.

As for the Conservatives’ demand, well, it’s a lot of disingenuous nonsense because the costs will be determined by how the revenues are recycled, which the federal government has no control over. Poilievre has been trying the semantic arguments that because it’s a federally-imposed tax that they need to know what the impact will be, focusing only on the cost before revenues are recycled, which is again, disingenuous and the precursor to misinformation. And if they were so concerned, they can do the analysis themselves – as Andrew Leach points out. But they don’t want to do that – this is all cheap theatre, performative outrage that the government is “covering up” information that they’re characterising as something it’s not. But as truth and context have become strangers in this parliament, none of this is unexpected.

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QP: Misrepresenting the Fraser Institute

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It being caucus day, all of the leaders were present, and what a day of proto-PMQs it would be.  Andrew Scheer led off, worrying about how much carbon taxes would cost Canadians, and he demanded to know how much it would cost families. Justin Trudeau said he would respond to that in a moment, but first wanted to thank the leader of the opposition, all MPs, and all Canadians for their solidarity in the face of trade difficulties with the US. Scheer said that Conservatives would always support measures to keeping markets open, and then began the smug crowing about Ford’s win in Ontario as a demand to cut carbon taxes. Trudeau reached for a script to decry that the Conservatives didn’t learn anything after ten failed years. Scheer insisted that a growing number of provinces are standing up to carbon taxes, to which Trudeau reminded him that Canadians rejected that approach two-and-a-half years ago, where they did nothing about the environment while having no economic growth to show for it, which contrasted his government’s approach. Scheer switched topics to the irregular border crossers, and Trudeau assured him that the system was working, that all rules were enforced, and didn’t want people to be subject to Conservative fear-mongering. Scheer concern trolled that the government was putting one group of refugees against another — doing exactly the same in his framing — and Trudeau called him out on it, while noting that the previous government cut CBSA and refugee healthcare, and created backlogs that they were still dealing with. Guy Caron led for the NDP, raising the concerns of a BC First Nation that wants to  built a solar farm instead of a pipeline, to which Trudeau took up a script to say that the NDP only listen to those who agree with them, while his government listened and included that particular band. Caron repeated the question in French, and Trudeau read the same response in French. Alexandre Boulerice cited a Cambridge study that cited that the oil bubble would burst between now and 2050, and demanded investments in renewable energy. Trudeau took up a new script to say that they can create jobs while protecting the environment, and listed programmes they have invested in. Murray Rankin reiterated the question on renewables in English, and Trudeau didn’t need a script to retread his usual talking points about creating jobs while protecting the environment. 

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Roundup: Bernier booted from shadow cabinet

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The surprising news last night was that Andrew Scheer had finally had enough and removed Maxime Bernier from his shadow cabinet, reassigning his critic portfolio to Matt Jeneroux. The ostensible reason that Bernier was booted? That he uploaded that chapter from his cancelled book in which he decries the tyranny of Supply Management. Never mind that the chapter was already floated to the Globe and Mail and was published weeks ago, which led to the outcry that had Bernier pull the book until his political retirement. Scheer said that this constituted Bernier breaking his word to caucus on the book, never mind that it was already in the public domain.

A more plausible explanation? That Scheer was getting a lot of heat about Bernier’s views about Supply Management in the face of Trump’s tweets about dairy tariffs that are part of the system, where the government could point to Bernier being on Scheer’s front bench as proof that the Liberals cared more about Supply Management than the Conservatives did. In fact, the swipes about this got increasingly nasty in QP the last few days, to the point that Luc Berthold got right indignant about it when it was thrown in his face yesterday. Add to that, there’s a by-election coming up in a rural Quebec riding, where this is one of those issues that they care a lot about, and Scheer (who is campaigning there later this week with the former Bloc leader who has renounced separatism and taken out a Conservative membership card) wanted to prove that he’s listening to Quebeckers on Supply Management – even though Bernier himself is a Quebecker. (Note: This is also why the Conservatives rarely ask Supply Management questions in English during QP – this is all about pandering for Quebec votes).

I do think that this is further proof that there is little room in the current Conservative party for actual free-market conservatives, and that they are working hard to cravenly embrace right-flavoured populism that is divorced from the values that they claim to espouse (as I wrote a year ago when Scheer first won the leadership). My only question now is whether Bernier will be banished to the nosebleeds along with fellow disgraced caucus member Kellie Leitch.

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Roundup: A strained partisan detente

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There is a strange partisan cold war settling over the nation’s capital, as both government and opposition try to put up a united front against the Trumpocalypse, while at the same time not looking to give up too much advantage, and so they probe areas where their opponents may be weak, but that they won’t look too crassly partisan in exploiting it, kind of like Erin O’Toole did last week when the steel and aluminium tariffs were first announced. The Conservatives and NDP are trying to probe the previous statements about Supply Management “flexibility,” while the Liberals are essentially calling Maxime Bernier a traitor as he starts speaking about his opposition to the system once again. It’s not pretty on either side, and yet here we are.

While Trump has threatened auto tariffs, I’m not sure that’s even remotely feasible given how integrated the whole North American industry is, and those tariffs would not only devastate supply chains, but it would have as many adverse effects on the American industry as it would the Canadian one. Of course, we’re dealing with an uncertainty engine, so we have no idea what he’ll actually do, but hey, the government is working on contingency plans that include further retaliatory measures if these auto tariffs come to pass. As for Trump’s focus on dairy, here’s a look at the size of subsidies that the American dairy industry is awash in. Brian Mulroney, incidentally, thinks this is all a passing storm, for what it’s worth.

Because there are so many more hot takes about developments, Andrew Coyne thinks that there should be debate on how to best retaliate to American threats rather than just rally around the PM. Chantal Hébert notes that Trump has essentially boxed Trudeau in with regards to how he can respond to the threats. Martin Patriquin counsels patience with the Trumpocalypse, so that we don’t go overboard thanks to a few intemperate tweets. Chris Selley notes the sudden burst of solidarity and hopes that they don’t return to bickering over small differences once this crisis passes. Jen Gerson, meanwhile, notes that Trump’s attack are those of a bully trying to pick on a weaker target, but forgets that Canada isn’t weak – we’re just passive aggressive. Gerson was also on Power & Politics(at 1:08:35 in the full broadcast) to say that her genuine fear out of all of this is that it’s all a sideshow designed to turn Canada into some comic enemy for Trump to run against in the upcoming midterms, and I suspect that she’s onto something, and we may be playing into Trump’s hands when if we get self-righteous in our response.

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Roundup: Justifying a belligerent tone

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Two days after the American tariff announcements, and I found myself still struck by the tone that the federal Conservatives have adopted with this, squarely blaming Trudeau rather than the uncertainty engine known as Trump, and engaging in the same kind of disingenuous narrative-building to justify their stance. In particular, they have been trying to claim that when Trudeau made his tour of steel and aluminium plants earlier in the year, that it was a “victory tour,” which is vastly different from how I remember it. Back then, it was about reassurance and the prime minister wanting to tell them that he had their backs and given that the government was ready for these tariffs to happen and had a package of retaliatory measures ready to go, it means that they didn’t take the reprieve for granted – entirely negating the premise of the Conservatives’ attack lines. Not that facts matter. They are also insistent that the Trudeau government has allowed itself to get “distracted” by the feel-good chapters around labour and gender in NAFTA negotiations, which again, is novel if you pay the slightest amount of attention to what’s been going on. But this isn’t about truth – this is about building their narrative that Trudeau is a dilettante who is incompetent and that the Conservatives are the real grown-ups in the room (despite evidence to the contrary). And because people have let Scheer and company lie with impunity on all sorts of files for months now, they feel emboldened to take this course of action, despite how gauche or out of step with other conservative voices in the country it may be, because they see this as their long-term game plan. And we’ll see if any of those voices call them out on it.

As for the impact of the tariffs, it turns out that they could have a far less detrimental impact on Canada’s aluminium industry because it exports more product to the US than we do steel, and America’s own smelters are older and less efficient than Canadian ones, meaning that these tariffs won’t do anything to help support the US industry, and American producers say that they could do more harm than good. Steel, of course, is a different story. The whole tariff issue, meanwhile, could mean that the lock that the American arms industry has on our military procurement may be at an end, and that our Forces may start looking to Europe for equipment instead – something that may actually be more affordable, but the tendency had been to buy from American producers under the guise of “interoperability” with American forces. As for the American companies facing retaliatory tariffs, well, they’re still learning about them, but most don’t seem too concerned. At least not yet. And many Republicans and businesses are lashing out at Trump for the move – including anchors at Fox Business.

In further reaction, Andrew Coyne believes that the sheer size of the US economy means that our retaliation will come to nothing, and even if we coordinate with other countries, we’re unlikely to change Trump’s mind, so better to work to contain the US presidency. Susan Ariel Aaronson suspects that the tariffs will weaken America’s national security interests rather than strengthen them, as Trump has used as the excuse to enact them, while Andrew MacDougall thinks that Trump’s move may benefit Doug Ford, who pledges to lower taxes and cut red tape that may appeal to people who think this can help keep Ontario’s economy competitive.

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Roundup: Trans Mountain and Phoenix

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The government announced yesterday morning that they were going to acquire the Trans Mountain pipeline and the project to twin it from Kinder Morgan – but that this would be a short-term acquisition if another buyer can’t be found before August. In the meantime, a loan would be extended to Kinder Morgan to begin construction immediately. Rachel Notley cheered and said that it’s time for Albertans to pick up tools and get to work on building it. Morneau, incidentally, won’t say what those construction costs will be, as that’s commercially sensitive information that could undermine the process for finding a buyer for the pipeline. As for who some of those buyers might be, here’s a look at that question. The buyout – if it happens – won’t eliminate opposition, but it changes the legal situation for BC in that federal paramountcy is even more prevalent than it was before. BC premier John Horgan says that his fight will carry on, but he’s suddenly saying that this is all because the federal oceans protection plan isn’t good enough, which is…new, and not terribly convincing. As for Indigenous activists, some say that the announcement is tantamount to a “declaration of war,” but other Indigenous communities are seeing this as an opportunity to buy a stake in the pipeline to benefit their communities.

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The Conservatives immediately stated that this was all because of Liberal incompetence, that Kinder Morgan never said they wanted to sell, that they only wanted “certainty,” and then Andrew Scheer engaged in a bunch of revisionist history that falsely claimed that other pipeline projects never got government financing (it’s like he’s never read about the Trans Canada Pipeline construction in the 1950s, not to mention the development of the Hybernia offshore oilfield, or the development of the oilsands themselves). Oh, and Scheer’s definition of “certainty” that he would provide includes forgoing the current environmental assessment bill (has he talked to environmental lawyers or looked at the kinds of court challenges that the Conservative legislation has generated?) and his insistence that they could somehow “assert” federal jurisdiction by means of a declaration or a bill is ridiculous because they already had jurisdiction. The pipeline crosses a provincial boundary, thereby making it federal. Jurisdiction was never seriously in question. His MPs and other federal and provincial mouthpieces have been trying to spin this as some kind of conspiracy that Trudeau is only buying the pipeline in order to take control of it and shut it down so that they can shut down the entire oil sector. Seriously? You expect people to believe that, after Trudeau has staked an enormous amount of political capital on this very move? Really?

In other reaction, Andrew Coyne sees this as not all bad news (though I’m not sure how much more the Liberals could have done to avoid it), while John Ivison sees irony in the government “getting into the pipeline business” on the same day as the Auditor General blasted them for an inability to manage big projects. Tim Harper sees this as a potential precursor to tougher days ahead for Trudeau, while Jason Markusoff notes that this will make it hard for Albertans to sustain the narrative that Ottawa hates them (though by gods, the Conservatives in Ottawa are really trying). Andrew Leach also gives a very detailed analysis of the purchase in Twitter threads here, here, here, and here.

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QP: Investing in assets

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While the prime minister was away after this morning’s major announcement on the government decision to acquire the Kinder Morgan Trans Mountain pipeline, all other leaders were present — for a change. Andrew Scheer led off, mini-lectern on desk, and he railed about the Trans Mountain announcement, before demanding to know that it wouldn’t cost more than the $4.5 billion. Bill Morneau responded with a bit more fire than we usually get from him, decrying the audacity of the Conservatives for demanding the pipeline get built and then complaining when they assured it would be. Scheer offered some revisionist history when it comes to governments paying for pipelines (there is in fact a long history of it), and Morneau reiterated that the project was in the national interest. Scheer played the economic nationalist card in that $4.5 billion going to “Texas” shareholders, and Morneau repeated the points about jobs and the economy. Alain Rayes took over in French, and demanded to know how much it would cost taxpayers, and Morneau repeated that it was important to invest in the project, that their investment ensured it would be completed. After another round of the same, Guy Caron got up to rail that this investment was a betrayal, rather than investing in the clean economy. Morneau said gave the usual line about the environment and the economy going hand-in-hand, and that while they invested in clean energy, this project was still necessary. After another round of the very same, Nathan Cullen got up to ramble sanctimoniously about what was in the public interest, and Morneau reminded him that they went through a robust process, and that people need to respect the rule of law. Caron piled on more sanctimony, and Morneau made points about stepping in between provincial squabbling.

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Roundup: The AG’s vacancy problem

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The Auditor General was on Power Play yesterday to talk about his recent examination of the Great Lakes Pilotage Authority, and how the lack of appointments to the board meant a lack of oversight for the CEO, who then abused his expenses. Michael Ferguson then went on to talk about the greater pattern of unfilled vacancies by this government (which will be the focus of one of his upcoming reports), and it’s a verifiable problem that this government has, in large part because as part of their reform of the system to ensure that more women and minorities were appointed, they changed to a system of seeking out nominees to having people apply for positions. For as much merit as ensuring more diversity among appointees has, the way they’ve handled it has been a gong show.

All of this is well and good to point out, but where I have a problem is where the AG suggests that if governments can’t fill these positions in a timely manner that we should consider a system where these boards have their own nomination committees to make their own appointments. This should raise a major alarm because it’s a sign of creeping technocracy and undermining accountability and responsible government. Government makes these appointments so that there is someone who can be held to account for them. Who is accountable if boards nominate their own members? How do we ensure that they don’t turn into cesspits of nepotism after we worked long and hard to ensure that we have taken patronage out of our current appointment systems?

Unfortunately, this is not a surprise with Ferguson, whose recommendations around an external audit committee for the Senate ignores the detrimental effect that this would have on Parliament’s ability to be self-governing. I do think it’s problematic that you have an officer of parliament who keeps advocating for greater technocracy and the undermining of our parliamentary democracy (and worse, that nobody in the media will dare to call him on it, because apparently we worship auditors general and believe that they can do no wrong). His observations about the problems around appointments are valid, don’t get me wrong. It’s his solutions that are untenable in the extreme.

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Roundup: Justice bill under fire

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The big news over the long weekend was the Liberals’ major criminal justice reform bill, which was tabled at the end of last week. It’s a big bill because it’s a big topic, but also because the government decided to fold in two previous bills that have been languishing on the Order Paper so that they can all get passed at once. One of those bills has clauses that have been overtaken by a previous bill that again, languishes on the Order Paper. And yet, despite this major reform push, one of the biggest problems facing the justice system, mandatory minimum sentences, which are clogging the courts, remain intact because this bill doesn’t address them, and the minister is shrugging in terms of saying the debate is still ongoing with provinces and courts over those. Among changes in this bill are severely limiting preliminary inquiries, which could mean that a number of cases go to trial where they wouldn’t have otherwise given that the point of a preliminary inquiry was to determine whether there was enough evidence to secure a conviction. Another change is to eliminate peremptory challenges in jury selection, something which has gained a lot of attention in the past couple of months after the Gerald Stanley trial in Saskatchewan had an all-white jury.

None of this is without controversy, and defence lawyers are raising the alarm. Lawyers like Michael Spratt say the changes will not speed up trials, and will actually eliminate some procedural fairness from the system. The elimination of peremptory challenges is far more contentious, with some defence lawyers saying it won’t fix anything while another says it could eliminate the current abuses. One law professor calls it a good first step, but lists other recommendations to increase access to justice in remote communities and improve jury selection.

On a related note, it looks like Saskatchewan hasn’t been selecting juries in a way that complies with their own provincial laws. While this may not be enough to cause an appeal in the Stanley trial, which has put much of the focus on the issue of peremptory challenges, it does raise questions about jury selection laws in this country that are part of these reforms.

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