QP: Litigating the Kabul evacuation

The Liberal benches were a little over two-thirds full, the opposition benches a little more full than that, and both Trudeau and his deputy were present (Freeland having previously being scheduled to only attend virtually but she was present in the flesh). Erin O’Toole led off, script on his mini-lectern, and he insisted that the government had two years to evacuate our interpreters and workers in Afghanistan, quoted a CSIS report, and railed at the government’s failure. Trudeau insisted that they stood by Afghanistan, and noted their commitment to resettle 40,000 Afghans. O’Toole noted that 1,215 Canadians left in Afghanistan when evacuation operations ended, and Trudeau praised the work to get as many Afghans and Canadians out of the country as possible in August. O’Toole read scoffing remarks from script, and complained that the election was called, while Trudeau reminded him of the speed at which things happened in Afghanistan before once again praising the work of officials on the ground at the time. O’Toole switched to French, and he repeated his first question on the alleged two-year timeline, and Trudeau repeated about the work to get people out, and work with the international community to resettle 40,000 Afghans. O’Toole then read the scripted scoffing remarks in French, and Trudeau repeated his same answer.

Yves-François Blanchet led for the Bloc, and he worried about a potential rule change that would see oil sands tailing ponds being dumped into the Athabasca River. Trudeau read a script about consultations on regulatory changes to ensure safeguards. Blanchet accused the government of being so much in the pockets of the oil and gas industry that it would cause the Conservatives an identity crisis, and a Trudeau read again that they were putting in strict water quality measures in the region.

Jagmeet Singh rose for the NDP, raised the coming fiscal update and the scourge of inflation, and then demanded the puzzling tools of immediate housing supply and lowering cellphone bills—a very curious notion that ignores the causes of this current bout of inflation. Trudeau read a script about what they planned to talk about in the fiscal update. Singh repeated the question in French, and got the French version of the same script.

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QP: From solemn moment to clown show

Following every party’s statements and a moment of silence for the anniversary of the massacre at École Polytechnique, things got underway in earnest. While the prime minister was absent, Chrystia Freeland was present. Candice Bergen led off, script on her mini-lectern, and she asked for an update on the government’s programmes to combat violence against women. Freeland highlighted the importance of the day, and spoke about the “unprecedented” investments in the budget, and then called on all women in the a House to rise for a moment to remember those women. Bergen then pivoted to the topic of inflation and wanted to know what was happening with the Bank of Canada’s inflation target, and Freeland assured her the decision was coming in due course. Bergen was not satisfied, and demanded action on rising prices—though she did not call for price controls. Freeland assured her that they understand the difference between fiscal and monetary policy, and have confidence in the Bank, and that they don’t disparage them like the Conservatives do. Alain Rayes took over in French, and demanded a “concrete plan” to tackle inflation. (Like price controls?) Freeland listed off global inflation figures in response. Rayes repeated his demand for a “concrete plan,” and Freeland responded with praise for the GDP growth and job numbers.

Claude DeBellefeuille also raised the anniversary of École Polytechnique and the current spate of gun violence in Montreal and demanded tougher gun control. Marco Mendicino assured her the are working together with different governments to ensure that everyone can live safely. DeBellefeuille accused the federal government of doing nothing, and Mendicino repeated his assurances and brought up his meetings last week with gun control advocates.

Alexandre Boulerice rose for the NDP, and he raised the scourge of opioid deaths, and demanded decriminalisation of simple possession of drugs. Jean-Yves Duclos noted that they are working at several levels around things like safe supply and support for users, with more to be announced shortly. Gord Johns repeated the demand in English, and Carolyn Bennett repeated Duclos’ answer in English.

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Roundup: Blockbuster jobs numbers—mostly

Statistics Canada released the Labour Force Survey numbers yesterday, and they were very good—four times as many jobs were created as had been forecast by economists. All of the jobs lost during the pandemic have been recovered and more, and unemployment is very nearly as low as it was before the pandemic began (at which point we were at record lows, around statistical “full employment”), and it was even noted that “core-aged” women had their highest ever employment levels. Things are turning around. Mostly.

There are still a lot of vacancies and there is a mismatch between jobs available and the skills that unemployed workers possess, and while the government is pouring money into training, that takes time. And labour shortages mean wages are likely to continue to increase (and if anyone says they’re stagnant, they are either lying or haven’t read the data). As well, productivity has taken a dive over the last quarter, so that will matter as well. Conservatives are claiming that the increase in jobs is as a result of the majority of pandemic benefits ending, but I’m not sure there is a direct comparison that can be made given the skills mismatches that are in the economy (and which pre-date the pandemic, which was one of the reasons why the Bank of Canada, among others, was making a concerted effort to call for inclusive growth). There is work still to do, but the government is feeling pretty good about the data.

Meanwhile, here are some economists’ takes to consider:

https://twitter.com/kevinmilligan/status/1466771813594140675

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Roundup: Who they gave succour to

Cast your minds back to summer of 2018, when prime minister Justin Trudeau attended a Liberal rally in rural Quebec and encountered a woman heckling him about refugees crossing the border at irregular points of entry. As part of this, she demanded to know when Trudeau would support “Québécois de souche,” a term tinged with racism as it applies only to those who descended from the early French settlers, essentially considering anyone without those particular roots to be some kind of contagion upon the state. Trudeau called out her intolerance, and she tried to sue for defamation.

A Quebec Superior Court judge dismissed her case, and pointed out the fact that she had tried to use the incident to make a name for herself among far-right circles, all while claiming that she has empathy because she’s a nurse, and will treat anyone. More to the point, the judge pointed out that she was deliberately trying to provoke the prime minister, and was thus the author of her own misfortune, and in dismissing the case, ordered her to pay legal fees.

So why bring this up? Because if you also think back to when the House of Commons returned shortly after this incident, the Conservatives all rushed to give succour to this woman, and tried to frame her aggressive questions and demands as though she was “just asking about the budget.” No, seriously. Conservative after Conservative stood up in the House of Commons to whine that “if Trudeau doesn’t like your questions, he calls you a racist.” Because in their minds, being called a racist is a worse crime than the actual racism that the woman was displaying. And it goes to show what the party is willing to stand up for, and who they are willing to protect if they think they can score points from it.

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QP: You should read a book or two

While the prime minister was in town, he was not in Question Period today, but his deputy was, so all was not lost. Candice Bergen led off, script in front of her, and she went off on inflation, accusing the finance minster of printing money so that she never runs out of bucks to pass. Chrystia Freeland read contradictory statements from different Conservative and wondered who was right. Bergen selectively quoted economists to assign blame for inflation. Freeland quoted former Bank of Canada governor Stephen Poloz that government spending is not the problem. Bergen was apoplectic and demanded federal action on inflation, to which Freeland again quoted Poloz, and then suggested the Conservatives read a book or two. Alain Rayes took over, and asked about the labour shortage in Quebec. Marco Mendicino, even though it’s no longer his file, reminded him they have been working with Quebec and hit a record high of temporary foreign workers. Rayes went another round, and got the same.

Luc Therrien led off for the Bloc, and raised the Environment Commossioner’s report, and then demanded the government cap the production of fossil fuels. Stephen Guilbeault appeared by video, and reminded him that the Commissioner’s report didn’t capture several new programmes from the government. Therrien was not mollified, and in response, Guilbeault listed measures they have taken that no other government has taken.

Don Davies rose for the NDP, and demanded that the government support lifting patent restrictions on vaccines manufacturing to help the developing world avoid new variants. Harjit Sajjan read about the government’s vaccine donations. Niki Ashton repeated the question in French over video, and François-Philippe Champagne reminded her of Canada’s support for COVAX and other initiatives to deliver vaccines.

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Roundup: Some more inflation fact-checking

Because you know it’s going to come up yet again during Question Period today and through the rest of the week, here are a couple of reality checks around inflation, first from former Bank of Canada governor Stephen Poloz, who will give you all of the reasons why the pandemic spending and stimulus is not what is causing the current bout of transitory inflation.

Next, from economist Stephen Gordon:

So when Erin O’Toole and Pierre Poilievre start sounding off on inflation again, I know whose economic judgment I’ll be listening to (and it won’t be theirs).

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Roundup: Nothing unexpected in the Speech from the Throne

In amidst all of the pomp and ceremony, there was very little that was unexpected out of yesterday’s Speech from the Throne, where Governor General Mary May Simon read the government’s planned agenda, talking about the fact that the pandemic is not yet over, and making high-level promises around climate action, reconciliation, and a nod to the rising cost of living. In a little over half an hour, it was over, and MPs returned to the House of Commons.

Two media narratives largely dominated the coverage the rest of the day: 1) this is basically the election platform, which erm, hello, is pretty much the point, and putting something shiny and new in there while in a hung parliament would be difficult and asking for trouble; and 2) daring the opposition parties to bring down the government, which they won’t do, but reporters will ask leading – if not goading – questions all the same. And because of the requisite chest-thumping that goes along with a hung parliament, we saw both the Conservatives and NDP talking tough about not supporting it (well, the NDP said that the Liberals shouldn’t take their votes for granted even though they pretty much can because the NDP are in no shape to back up their words), and the Bloc essentially acknowledging that they would support it because of course they will. Nobody is going to bring the government down over this and go to another election (because no, there is no other possible government formation possible with the current composition of the Chamber), so the Liberals will pass this, and their fall fiscal update, and one or two of the bills on their priority wish list before they rise for the holidays, and the Conservatives and the NDP will huff and puff about it, but that’s about as much as will happen.

Once the speech was over, the Conservatives immediately launched into a renewed round of procedural shenanigans once they got back to the House of Commons, and before Erin O’Toole read his response to the Address in Reply to the Speech from the Throne. First it was a point of privilege on the unresolved issue from the previous parliament on the Winnipeg Lab documents, in spite of the fact that the committee that wanted them doesn’t exist and the order they made also no longer exists. Then they went after the Clerk and the scurrilous allegations of partisanship (which, according to everyone I’ve spoken to – including Senate Conservatives – is ridiculous and office politics run amok in the House of Commons’ administration). The Speaker tried to cut that off, insisting that it should be dealt with at BoIE, especially as the Clerk cannot defend himself in the Commons, but they kept going after it, which is poor form and a signal that they want blood and they don’t care if they hurt the Clerk in the process. And after that, it was the vaccine mandate and the use of the Board of Internal Economy, demanding a vote on it – erm, which would just expose those who object to said mandate and tar those who object to the procedural use of the BoIE with the same brush, which seems politically foolish to me, but what do I know? (Affirming the vaccine mandate is part of the Liberals’ omnibus motion that would also restore hybrid sittings, for what it’s worth).

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Roundup: Demands to take action on transitory inflation

Inflation was the word of the day again yesterday, as it was the monthly release of Statistics Canada’s Consumer Price Index, and lo, it was once again high – 4.7 percent, which it hasn’t been since February of 2003. But the factors behind it are largely global – energy demand versus supply on the market, the shortage of semiconductor chips that is driving up the cost of vehicles, and locally, labour shortages (much of it because of COVID) is driving up meat prices. Not that these factors matter much to Erin O’Toole.

Here’s the thing – there’s not a lot that the federal government can do about the causes of this current bout of inflation, which, let’s be clear, the Bank of Canada and the majority of analysts still believes is transitory given what’s driving it, so the last thing you want to do is overreact and create more problems in the economy. When it comes to food items, the rising costs of dairy are from supply management reflecting an increase in input costs; meat is being driven up by labour costs; other foods are impacted by droughts and supply chain issues. There’s very little that the federal government can actually do about this, not that it’s stopped O’Toole from demanding that something – anything – be done. But what is that anything? Price controls? Do we need to start practicing “Zap, you’re frozen!” again? Because it feels a lot like we’re heading back to that territory.

In the meantime, Kevin Carmichael puts the figures into context for what the Bank of Canada is likely to do about upcoming interest rate decisions. Mike Moffatt and Ken Boessenkool call on the Bank of Canada to give a clear explanation of what is happening with inflation, because otherwise the Bank will lose its credibility for allowing inflation to run hot when using their tools could do further economic damage if employed at this point. Heather Scoffield worries that the floods and washed-out roads and railways in BC will further drive inflation – though that fear may be somewhat misplaced, as the macroeconomic damage may be limited to a few days.

https://twitter.com/kevinmilligan/status/1461179942880694281

https://twitter.com/kevinmilligan/status/1461181382302973954

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Roundup: O’Toole boots Batters at his peril

The internal strife within the Conservative ranks is getting more pointed, as word came down yesterday that Erin O’Toole had lined up enough caucus members to force out any MP who signed Senator Denise Batters’ petition – thus weaponizing the (garbage) Reform Act to protect the leader rather than curb the leader’s powers – and with that threat in the open, O’Toole then kicked Batters out of caucus.

There are a few things about how this is all going down. First of all, the use of the Reform Act provisions to threaten other caucus members is a completely hypocritical action that would be utterly galling if it were not predictable. If only someone *cough* had warned everyone that this was a garbage piece of legislation that would only be used to insulate leaders and give them freer rein to be more autocratic and to threaten the MPs who get out of line, and literally put a target on the backs of anyone who openly stood against the leader as the Act’s provisions require. Imagine it being abused in exactly the way that someone *cough* warned was likely to happen, no matter what Michael Chong and every talking head pundit in this country gushed over. Funny that.

The other aspect of this is the fact that O’Toole kicking Batters out puts a stake in the party’s self-righteous moralising that they respect strong women and that Justin Trudeau hates them (citing Jody Wilson-Raybould, Jane Philpott and Celina Caesar-Chavannes – but curiously omitting Chrystia Freeland from consideration). It’s even more curious that Senator Michael McDonald said virtually the same things about O’Toole that Batters did, and he didn’t face any sanction. In fact, this has clearly shown that O’Toole will tolerate the anti-vaxxers in his caucus but not someone who wanted the party’s grassroots membership to have a say in his leadership before August 2023 (at which time they would warn that there could be an election at any time so they couldn’t possibly change leaders then). And by kicking Batters out of caucus, she has nothing left to lose. She can join up with the Canadian Senators Group later today (the likeliest place for her to land) and carry on criticising O’Toole and calling on Conservative grassroots members to have their say about his leadership, and O’Toole can’t do anything about it. All of his leverage over her is now gone. If O’Toole thinks that this move solved any of his problems, he’s mistaken.

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Roundup: Repurposed talking points with an inflation bow on top

The Conservatives’ finance critic, Pierre Poilievre, was up to his usual bullshit over the weekend and held a press conference to demand that the government maintain the Bank of Canada’s inflation targeting regime – which was almost certain to happen anyway – but along the way, his line of reasoning became utterly absurd.

For one, Poilievre refuses to acknowledge the facts on the ground about what is driving the current bout of inflationary pressure – instead, it’s a lot of talk about the Bank printing money to finance government debt, which isn’t quite true. Quantitative easing isn’t actually “printing money” – and the Bank has an explainer on their website – and by buying government bonds when they did, they were able to keep interest rates low, rather than requiring them to drive up at a time when there were a lot of governments issuing bonds, as those higher rates could have hurt the economy (or by not issuing the bonds, the government wouldn’t be able to pay for the pandemic benefits people needed, and we would have had other problems instead). Meanwhile, his proposed solutions won’t actually deal with the current bout of transitory inflationary pressures – approving more energy projects will take years to come online, cutting taxes and “red tape” won’t necessarily improve productivity, and his “payroll taxes” are things like CPP and EI, which aren’t taxes, and again, won’t actually do anything about world energy prices or supply chain bottlenecks. Most of his demands are just the same Conservative talking points, repurposed with an inflation bow on top.

https://twitter.com/MikePMoffatt/status/1459645990076653572

https://twitter.com/MikePMoffatt/status/1459670088970391559

And this is the thing – all of the signs are pointing to the fact that while the 4.4 percent headline number sounds scary at first, if we look at where we are trend-wise, we’re not over the target range by much, and we also have to remember that interest rates can be a pretty blunt instrument, and raising them too quickly to tackle inflation that is transitory in nature could have bigger consequences in the economy, and weaken the recovery. Not that these guys pay attention to the counter-factuals, or the facts at all. No, it’s a bunch of talking points that are at least twenty years out of date, if not more, but the problem is that people believe it. (The inflation truthers in my reply column are the worst). And I’m not sure that this government has the rhetorical ability to counter any of it with their happy-clappy pabulum talking points, and that is a problem.

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