Roundup: The expanded deficit

The big news yesterday was of course Bill Morneau’s fiscal update, in which he said that the deficit was slated to rise to $18.4 billion – and then everyone freaked out. But if you take a breath, you’ll see that in there is about $6 billion of wiggle room (or “fudge” as Andrew Coyne called it) when they adjusted down the growth projections of private sector economists – which have been particularly optimistic. As well, much of the current-year deficit is driven by lower revenues rather than new spending, despite what the Conservatives say, which is why the Liberals thought it clever to remark in QP yesterday in response to questions about the deficit that the Conservatives and NDP would be cutting all over the place in order to keep a balanced budget (to which Lisa Raitt, on the evening politics shows, rather indignantly replied “You don’t know that.”)

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As part of the changed fiscal picture, the “savings” the previous government booked for changing public service sick leave is now back in books (not that it would have actually achieved savings in the first place). Stephen Gordon wonders if spending to spur growth is the right policy when this period of low growth may not actually be temporary, but rather might be the new normal. Kevin Milligan on the other hand notes that because it’s so cheap to borrow right now that going into deficit won’t really cost as much in the future, as we are not in the same situation as we were 25 years ago. Maclean’s charts the worsening fiscal situation. Kevin Page has questions about the “holes” in the fiscal update. Morneau also hired Dominic Barton as a growth consultant, which likely means a focus on Asia.

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QP: Endlessly repeating

Thursday, and Trudeau was again not to be seen in the Commons, as he was off in Calgary meeting with industry stakeholders. Not that it’s not important, but he was only in QP one day this week, and that’s something more reminiscent of his predecessor than he promised to be. Rona Ambrose led off, script on mini-lectern, and read a question about the Port of Quebec. Marc Garneau agreed that it was significant, and said they we examining the request being made. Ambrose then raised her concern that Trudeau said that he wouldn’t promise to approve Energy East if the NEB approves it. Bill Morneau responded, chastising the former government for not being able to get resources to tidewater in ten years. Ambrose tried again, and got the same answer. Gérard Deltell was up next, asking about funding for the National Optics Institute, to which Navdeep Bains praised them and promised a timely response to their request. Deltell wondered again about funding, to which Bains listed the various sectors they were helping. Thomas Mulcair was up next, demanding action for residential school victims cut off from compensation by a loophole. Jody Raybould-Wilson assured him that she had instructed her officials to find a resolution. Mulcair turned to the TPP and the issue of drug costs, to which David Lametti assured him that they were undertaking consultations. Mulcair lamented the theoretical affects of the agreement on intellectual property, and Lametti reiterated his response. Mulcair again hammered on the signing of the TPP, and Lametti again reiterated the consultation process.

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Roundup: Bemoaning private meetings

There are times when demands for transparency from the government in all things does perplex me, particularly times when it starts to feel creepily inappropriate. Case in point is the sudden cry of “Oh noes! Justin Trudeau’s itinerary doesn’t list who those private meetings are with!” followed by some handwringing about taxpayer dollars. And then a chorus of “Oh noes! He met with lobbyists!” Because that’s the whole point of lobbying – to meet with officials, and not all lobbying is evil or the exchange of money, gifts or favours for the sake of influence, despite what American television will tell you (though, to be honest, the American version of lobbying – where those lobbyists have been able to be on the floor of the House of Representatives – is excessive). The fact that we can see after the fact that the PM and his staff have met with lobbyists is a sign of the transparency in our reporting mechanism, and I’m sure that there are meetings that should probably be private for all sorts of legitimate reasons. Can we ask questions about it? Sure. Does it mean that we are entitled to be privy to all of the details? I don’t see why. The thing is, sometimes the government relies on private, frank conversations in order to help guide their thinking – kind of like meetings with the Governor General. Sometimes good governance requires a modicum of discretion, and sometimes total transparency makes things worse. Is there a balance to be had? Of course. The fact that we’re getting daily itineraries is a far cry more than what we got under the last guy, and while that can’t simply be the go-to excuse that something is better than nothing, it also behoves us to temper our expectations a little. They don’t have to jump when we say so. I sometimes wonder if there aren’t a few people who don’t realise this and who get bent out of shape when it doesn’t happen. By all means, let’s ask the questions – but let’s also not pretend that the system is broken when we don’t get the answer we’re looking for.

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