Consider it a victory for the concern trolls, particularly those hosting the political shows, who spent four days hounding Senate Speaker Leo Housakos and Senators Carignan and Cowan over a trumped up appearance of conflict of interest because they had a role – and largely a peripheral one – in the establishment of the arbitration process and appointment of Justice Ian Binnie to oversee the Senate arbitration process. While Carignan repaid his staffer’s questioned expenses right away, citing it as an error, both Housakos and Cowan had legitimate differences of opinion with the Auditor General over the expenses he flagged, and both intended to take it to arbitration. Monday morning, they changed course, citing that they didn’t want to taint the process by any appearance of conflict, which if you ask me is a potential tacit admission of guilt, but also weakens any ability for senators to push back against what is looking increasingly to be a series of subjective value judgements made by auditors when it comes to expenses that were flagged. (And I’m not going to go into the way in which the NDP and others are conflating these legitimate grievances with notions of criminality other than to offer the reminder that Thomas Mulcair should be thankful he made the comments about Senator Housakos that he did during QP yesterday were made under privilege, lest he face a libel suit). The fact that members of the media torqued this angle of a conflict of interest – which did not bear itself out in fact – shows how much they feel no compunction or conscience about using the Senate as a punching bag because they feel they have public sentiment on their side – never mind that they were central in creating that public sentiment out of overblown rhetoric and hyperbole. It’s not that all of the AG’s findings will be questionable – the ones that Senator Eaton repaid certainly did not appear to be above board, but as Senator Plett remarks in his explanation for some of the flagged expenses, the auditors’ assessments can lack common sense. Of course, for all the concern trolling, it remains a basic fact that the figure of potentially misspent funds is actually tiny in context – and when you look at it in comparison to spending breaches in the Commons, it doesn’t even compare. But MPs won’t admit that they have a worse record, nor will they open their own books up, but don’t let the hypocrisy surprise you.
Tag Archives: Auditor General
Roundup: Disputing the AG’s claims
The Senate feeding frenzy continues, complete with torqued headlines and inordinate amounts of time being given to the concern trolls in the NDP (who refuse to answer questions on whether they plan to campaign on opening the constitution if they truly believe in abolition). And why not? The Senate is an easy punching bag. More details continue to leak out, despite the fact that the full audit won’t be made public until Tuesday afternoon, which really makes one question who is doing the leaking and what their endgame is. The AG has hinted that it’s not his office doing the leaking, but if I were him, I’d be steaming mad about these leaks which are casting a pall over the report itself, and fuelling this breathless and hysterical coverage that remains to date largely devoid of a great many facts. The concern trolling over the two leaders and the Speaker has been particularly odious, and it’s hard to take these cries of apparent conflict of interest seriously when you look at the facts regarding their actual involvement and what they knew about their spending claims – just because they got requests for additional information, it didn’t mean that they knew they would be in the final report, and none of the three are being accused of any particular criminality. It was also made known that the Prime Minister wouldn’t have known that there were a couple of questioned expenses for Senator Housakos when he was appointed Speaker, but hey, PMO-conspiracy theorists won’t believe it regardless. While Senator Boisvenu stepped down from the Conservative caucus for the investigation, Liberal Senator Colin Kenny put out a release saying his response in the audit will speak for itself. Former Senator Gerry St. Germain disputes that he’s done anything wrong, as did Former Senator Don Oliver, and well, pretty much every one of the nine that were flagged for being egregious. It also bears mentioning that the audit itself cost over $21 million, and found less than a million in questionable spending, and that number is likely to drop dramatically once the arbitration process gets underway and a number of these cases are found to have been value judgements on the part of auditors (and yes, this is an actual problem with the way this was conducted). Some MPs and Senators think that MPs should have their own books looked over, and wouldn’t you know it, there are a whole lot of MPs who resist that notion – particularly the ones who have been so vocal about the Senate allegations. Meanwhile, the lawyers for suspended senators Wallin, Brazeau and Duffy are whinging that it’s not fair that their clients didn’t have access to this arbitration process, but there was a process at the time that they could have availed themselves to. There have been a lot of problems with procedural fairness with the way their cases were handled, and political expediency was the order of the day coming from the government’s side, but that doesn’t actually excuse any of the potential wrongdoing that they are alleged to have done, most of which far exceeds what most of the senators apparently named in the report did.
Roundup: Re-starting the CPP debate
Talk of expanding the Canada Pension Plan was dominating the discussion yesterday, but much of it seemed to be in a bit of a vacuum. To recap, the Conservatives, having largely eschewed any talk of CPP expansion as “job-killing payroll taxes” to date (despite some positive noises having been made by Jim Flaherty at one point), say they’re going to consult on voluntary expansion, but haven’t approached any of the provinces, which they need to do. The Liberals are moving in the direction of making an expansion mandatory, which the NDP have already largely been in favour of. For some context, Maclean’s spoke to a pension expert about the situation, and they reposted an piece from Kevin Milligan about what different expansion models could look like (and it’s also a reminder that none of this is about poor seniors, who are already taken care of by other programmes). The Ottawa Citizen also has a Q&A about the discussion as well. What should also bear mentioning is that voluntary increased contributions, if not done in a certain way, could dramatically increase the administration costs of CPP since it will require individual management of accounts – something that the current system does not currently need. Dramatically increasing costs will make CPP a less efficient vehicle for retirement savings, and may start to look like a commercial pension instead. If the government is insistent on a voluntary expansion as one of a number of options (like TFSAs and pooled registered plans), then this cost factor could be an important determiner in what that could look like.
Roundup: An arbiter and a process in place
The Auditor General was making the media rounds yesterday, largely combating the cheap outrage journalism about the supposed spending issues of his office (which wasn’t a story but hey), and confirmed that about 30 senators would be facing some kind of repayment, fewer than 10 serious enough to merit being forwarded to the RCMP – but of course, ten became the headline number when he said it would be fewer, and the number of five to eight has been suggested by other media outlets, which seems more in line with what he claims. The total number of senators examined was 117 current and former, and it certainly sounds like the majority of cases will be fairly minor in terms of repayments. The Senate announced that they are retaining former Supreme Court Justice Ian Binnie as the independent arbiter on expenses, so that they have a process by which to dispute the AG’s findings if they so choose, and that may be necessary considering the complaints emerging about the lack of knowledge on the part of auditors as to parliamentary functions. This raises the question of fairness – is it fair that these senators will have a process in place, whereas Senators Duffy, Brazeau and Wallin did not, and were suspended without any kind of due process? The answer of course is that no, it’s probably not fair, but this was a fairly consuming crisis at the time, and they were sacrificed on the altar of expediency. Politics is messy business, particularly when you were high-profile appointments and had become a political liability. I’m not sure that it should be reason to forgo having a process going forward, but if all three are found guilty on the charges laid by the RCMP, then will it really matter in the end?
Roundup: Cheap outrage against the AG
The Auditor General is in the news for a couple of reasons, both of which start bordering on the ridiculous. The first is the news about the price tag of the Senate audit, which is said to be approaching $21 million. The AG himself didn’t want to start talking numbers out of context, and to wait for the final report, but this likely has to do with the fact that a number of outside contract staff were brought in to do the audit – which is also what a lot of the process complaints are, particularly since these outside auditors have no idea about what constitutes parliamentary functions, or the bounds of propriety in some cases. (Incidentally, the numbers of senators affected being leaked in this story is far less than those in other reports). The other story is more egregious, but not for the reason you might think. CTV reported that the AG’s office has spent $23,000 over four years on team-building exercises. Mind you, that’s over 600 staff, which basically amounts to an annual pizza lunch, and it’s in the context of a $90 million annual budget, but look – a big number with little context! Scandal! And thus we get to the egregiousness of the cheap outrage that apparently fuels out political media in this country. Who doesn’t love a story where a big number gets presented with inadequate context, and calling it a scandal? Why can’t we be a country that is so cheap and flinty that we are the Ritz-crackers-and-ginger ale crowd? Why should we spend money on anything at all? But no, it’s all OH NOES PIZZA LUNCH and lighting our hair on fire. And then of course, the perennial bugaboo of the Challenger jets, where every time the GG flies somewhere we need to get the CTF on the line to decry how terrible it is that we go and do diplomacy. Sometimes I wonder if we’re really a grown-up country after all.
@robert_hiltz I worked it out to $38 per employee over four years on team building.
— Paul Vieira (@paulvieira) May 26, 2015
Roundup: Trudeau makes a move
After months of anticipation, the Liberals unveiled the first real plank of their policy book yesterday, being their tax plan as it relates to middle class families. By restructuring the current universal childcare benefit, eliminating income splitting, and introducing a new tax bracket on those earning over $200,000 per year, Trudeau has proposed a income tax cut for the “middle class,” along with childcare benefits that will be more means tested than the current system, all under the banner of “fairness.” Immediately the government was apoplectic, and Pierre Poilievre, incredulously, tried to spin it as the Trudeau Tax™ and that somehow eliminating the doubling of TFSAs was a “tax hike” on those earning more than $60,000 per year (never mind that that income was already taxed, and that bracket got the income tax cut). The NDP insisted that the plan wouldn’t give a tax cut to “two-thirds” of Canadians, but when challenged on how they would cut those taxes, they instead pivoted to “childcare!” Emmett Macfarlane is glad there are now concrete proposals to debate, while John Geddes has three questions about the proposal. Kevin Milligan and Lindsay Tedds give more of the economic details and analysis.
Roundup: Hiding behind the top brass
It has not gone unnoticed that the government has not been putting themselves out in front of the release of the Deschamps Report into sexual misconduct in the military, and the opposition is rightly pointing out that there is such a thing as ministerial responsibility, which means that the minister needs to be out in front of this – but he’s not. He’s instead left it up to his parliamentary secretary to deliver some talking points that aren’t actually demonstrating responsibility, and worse yet, they’re almost self-congratulatory as the lines being delivered about how the Chief of Defence Staff ordered the report. Err, so what? The CDS is already pushing back on some of the recommendations by agreeing with eight of the ten “in principle” only, and there is still some level of denial at the top, where they describe that the endemic sexualised culture in the report as simply being the perception of those that Justice Deschamps interviewed. In other words, there needs to be more leadership at the top saying that no, you can’t just shrug this off and do a few things for show – you actually need to push and work at this until there is a genuine culture change. CBC Radio interviewed Major-General Christine Whitecross, who is heading up the response to the report, and she echoed some of that same reluctance, but she did relent on the point that the independent centres for reporting incidents was probably the way to go, but they want to study it some more, both in terms of what our allies have put into place in their own countries, and what resources are available here in Canada, and she is not dismissing it outright, which is at least something.
QP: Vintage Calandra
With the King of Jordan in town, the PM was absent for QP, which is a rarity for a Wednesday. That Justin Trudeau was also absent was unusual and disappointing. Thomas Mulcair led off, asking about the constitutional requirements for Senate appointments, and why he thought Mike Duffy could be counted as a resident of PEI. Paul Calandra insisted that the NDP were trying to make a victim of Duffy, and it was his actions that were on trial. Mulcair pressed, bringing in Senator Carolyn Stewart Olsen, but Calandra brought up the NDP satellite offices. Mulcair accused the government of a cover-up of fraudulent expenses in the Senate — not sure that it was in bounds — but Calandra repeated his response. Mulcair invited Calandra to repeat the utterances outside — which he has, repeated — before asking about the “typical family” example in the budget. Kevin Sorenson decried that the NDP seems to think that anyone making under $60,000 per year is wealthy and needs to pay more taxes. For his last question, Mulcair brought up the Auditor General’s report on First Nation’s healthcare, and Rona Ambrose rose to assure him that action was being taken. Dominic LeBlanc led for the Liberals, returning to Duffy’s constitutional eligibility, to which Calandra repeated the “making a victim” line and then attacked the NDP. In another round in English, Paul Calandra brought in Mac Harb, and Scott Brison closed the round by asking about ad spending versus the Canada Summer Jobs programme. Pierre Poilievre insisted they were creating jobs with “tax cuts, training and trade.”
Um, Calandra has repeated those very utterances *on TV.* Haven't seen any libel suits launched yet. #QP
— Dale Smith (@journo_dale) April 29, 2015
Roundup: An implicit repudiation
It was Auditor General day yesterday, and as usual, there were some stories that didn’t get a lot of attention, like CBSA’s computer systems, and some which are somewhat alarming, like the fact that twenty years later, Health Canada still doesn’t have a real plan to deal with superbugs, that there are some serious deficiencies when it comes to nursing stations with remote First Nations, or that the Royal Canadian Mint and the Office of the Canadian Forces Ombudsman had some spending issues. But the most interesting bits were in two chapters – one on tax expenditures, the other on the release of male offenders from corrections. In essence, both are repudiations of the way that this government has been managing things. Tax expenditures has a lot to do with the mass proliferation of those boutique tax credits that this government likes to throw around in order to target voters, but as the AG points out, it’s done with little scrutiny, and not enough information on them gets back to Parliamentarians to hold that spending to account. (Couple this with the report on Monday about the growth in tax complexity, and it should be a big red flag). As for offenders, too many low-risk offenders are not getting parole when they are eligible, and that makes reintegration harder, and recidivism more likely because they don’t get the monitoring that comes with parole. Add to that, the squeeze on programming resources within prisons and the removal of incentives to do the programming means that too many offenders are being released without having completed their rehabilitation programmes, which is also alarming. It’s also the direct fault of this government and their tough-on-crime policies what have made a virtue of trying to keep people in prisons longer, and then justifying it by saying that they won’t be on the streets to re-offend (never mind that in the vast majority of cases, keeping them in prison longer does more harm than good). And as the AG pointed out, it’s more costly to keep them in prison longer and without gradual release and programming, they get released with a higher chance to re-offend. In other words, we’re paying more to get poorer results because it’s easier to try and get votes by appealing to the sense of retribution rather than rehabilitation. Well done, guys. Slow clap.
The Auditor General is here, and he doesn't look impressed. #cdnpoli pic.twitter.com/xNLz029D1z
— Dale Smith (@journo_dale) April 28, 2015
QP: Taking Paul Martin’s name in vain
In the wake of the Auditor General’s report, and with all of the leaders present, it looked like we might have a decent Question Period for a change. One could hope, anyway. Thomas Mulcair led off, saying that the AG considered the government bad managers, particularly around tax expenditures. Stephen Harper disputed the interpretation of the report, said they would report more, and then slammed the NDP regarding their own high tax plans. Mulcair tied those into the budget and the “giveaways to the wealthy few,” and wondered if Harper thought he was Paul Martin. Harper hit back, saying that if he was Paul Martin, the NDP would be supporting him, before giving praise to his budget measures. Mulcair mumbled something else about Paul Martin before changing the topping to a declaration Mike Duffy may or may not have signed before he was appointed. Harper ignored the question, and praised the TFSA changes. Mulcair quipped “Mike who?” before asking about the appointment of Caroyln Stewart Olsen to the Senate, to which Harper insisted that the Duffy issues were before the court. Mulcair then brought up the Senate invoking privilege to block the release of an internal audit — something the PM has nothing to do with. Harper repeated the response about the matter being before the courts. Justin Trudeau was up next, asking about the money spent on advertising rather than on young entrepreneurs. Harper insisted that an entrepreneurial group was pleased with measures in the budget, and said that the Liberals would take them away. Trudeau repeated it in French, with the twist of job creation for youth, and Harper asserted that the Liberals hate benefits and tax cuts. For his final question, Trudeau accused Harper had changed with his decision to pour so much money into advertising. Harper listed things he claimed the Liberals opposed (but not really).
The Senate invoking privilege has ZERO to do with the PM. The chambers are independent. #QP
— Dale Smith (@journo_dale) April 28, 2015