While Justin Trudeau remained away at the APEC summit, and with Andrew Scheer elsewhere — despite having been present for caucus just hours before — it was up to Lisa Raitt to lead off QP, and demanded to know if Liberal fundraiser Stephen Bronfman was under CRA investigation for his inclusion in the Paradise Papers. Diane Lebouthillier simply stated that they were treating tax evasion seriously and had invested in fighting them. Raitt stated that since the PM assured reporters that he was satisfied with Bronfman’s explanation, she accused him of interfering with the investigation. No change in Lebouthillier’s answer. Raitt then, incredulously, declared that the PM had “pardoned” Bronfman and railed about separate rules for Liberals than anyone else. Lebouthillier reminded her that she can’t comment on individual cases, but hey, the Conservatives didn’t treat this like a priority. Alain Rayes tried the same lines again in French on two separate occasions, but Lebouthillier remained unmoved, adding in some points about good economic news. Guy Caron was up next, noted his party’s call to bring Bronfman and former Senator Leo Kolber before committee and demanded to know if the Liberals would support them. Lebouthillier assured him that CRA now has the capability to check every tax return. Alexandre Boulerice repeated the question in French, got much the same reply, adding that committees are the masters of their own destiny. Boulerice selectively quoted a couple of Liberal MPs who had noted that there was no demonstrated illegality in the papers, and Lebouthillier repeated the points about investment in the CRA. Caron got back to demand the government change the law to close loopholes, but Lebouthillier reiterated the billion-dollar investment in CRA.
Tag Archives: Bill Morneau
QP: A promise that action is being taken
While the Prime Minister was off to the APEC Summit, the rest of the leaders were present in the Commons for what was likely to be a repeat of yesterday’s gong show. Andrew Scheer led off, mini-lectern on desk, and in French, he read a condemnation of the prime minister’s silence on tax havens, demanding to know when he knew about his fundraiser’s offshore holdings (which said fundraiser disputed). Diane Lebouthillier listed off the measures that the government has taken to combat tax evasion — a billion dollar investment in the CRA, which has led to 980 investigations, 42 criminal investigations of structures abroad, a list of pending criminal charges, and billions in potential recoveries. Scheer reiterated it in English, got the same answer, and when Scheer gave his standard disingenuous talking points about the government going after small businesses while leaving their wealthy friends alone, Lebouthillier reminded them that when they were in power, they didn’t treat tax evasion as a priority. Alain Rayes took over, gave some hand-waving about the Sponsorship Scandal (no, seriously), and Lebouthillier reiterated her list. Rayes complained that CRA wouldn’t publish the tax gap data, and Lebouthillier listed even more facts about combatting tax evasion. Guy Caron was up next, demanding the government stop defending the CRA. Lebouthillier made a quip that she had more expertise than Caron did about fishing (which I’m not sure translated as well in English), and gave her usual rebuttal. Alexandre Boulerice demanded action against tax havens, and Lebouthillier reminded him that it was a priority in her mandate letter, which is why they hired auditors to tackle four jurisdictions per year. Boulerice demanded renegotiated tax treaties, and Lebouthillier listed more actions yielding results. Caron got back up to repeat the demand for renegotiations in English, and Lebouthillier stuck to her guns — and talking points.
Roundup: Trying to score dangerous points
In amidst all of the really bad takes on Governor General Julie Payette’s commentary the other night, I find myself more than a little horrified that the Conservatives have decided to play political games around this. More specifically, they are attacking Payette obliquely by directing their comments at the prime minister, who didn’t leave well enough alone when he said it was great that the GG stood up for science. And great that she did, but this was also in the context of there being a willingness to torque the comments into a bit of a scandal, and to blow them completely out of proportion.
So what did the Conservatives do? It started with a Members’ Statement before QP, where MP Ziad Aboultaif denounced the supposed attack by the PM on people of faith (which isn’t what happened), and was followed up by a Facebook post by Andrew Scheer who said much the same thing – entirely ignoring that Trudeau is a practicing Catholic who has been public about the value that he places on his faith.
But what irks me the most about all of this is that it’s an example where our elected officials keep being cute about our most vital institutions – the Crown – and politicising them in subtle ways. When the Conservatives were in power, it was aggressively giving things a royal re-brand (which, don’t get me wrong, I’m in favour of), but the manner in which it was handled, along with the abdication on the opposition benches of similarly owning the fact that this country is a constitutional monarchy, allowed the media to paint the exercise as a Conservative nostalgia for the days of colonialism, and to tar the whole of our monarchical institutions with a partisan taint. And I fear that Scheer is going down the same path here in trying to stir up controversy around these largely innocuous statements by the GG in order to try and whip up his base. It’s a very dangerous game, especially because Scheer and his entourage have proven themselves to be ham-fisted in pretty much everything that they do, and that increases the chances of this blowing up in everyone’s faces, and the very last thing we need to do is try to politicize the Crown or the GG in this country. So seriously – knock it the hell off. This is not something that’s worth scoring a few cheap partisan points off of. You’ll only hurt everyone in the process.
Meanwhile, Colby Cosh has made one of the only reasonable takes on the Payette comments in noting that we don’t have rulebooks for Governors General, so they should stick to principles about appearing to arbitrate impartially, particularly because of the powers she possesses. And he’s right. And I would also add that it’s why I find the furore overblown – the existence of climate change and evolution are not partisan issues in Canada, so she’s not actually crossing any partisan lines in her comments. My own weekend column delves further into that aspect, as well as the reminder that she’s not actually a figurehead like so many of the pearl clutchers seem to be demanding from their fainting couches.
QP: Deliberately obtuse demands
On a rainy Thursday in the Nation’s Capital, the Prime Minister was away, but the rest of the leaders were present. Andrew Scheer led off, mini-lectern on desk, and raised the Ethics Commissioner’s statement that “less than five” ministers had indirectly-held assets. Bill Morneau rose, accused Scheer of having trouble with numbers, and assured him that they had engaged with the Commissioner. Scheer again demanded names, and Morneau noted that he is aware that the attacks aren’t personal but just a game, which the finances of the country are not. Scheer insisted that this wasn’t a game, but Morneau insisted that Scheer was wrong and knew he was wrong — before he listed how many children got benefits in Scheer’s riding. Scheer demanded to know how he was wrong, and listed disingenuous accusations, to which Morneau said that Scheer was wrong because he disclosed all of his assets. Scheer said that couldn’t be the case if Morneau was fined $200, and Morneau reiterated that Scheer was wrong, and the fine was related to an administrative error while he disclosed his assets. For the NDP, Guy Caron led off by raising the flaws in the Access to Information amendment bill that the Information Commissioner identified. Scott Brison took this one, accusing the NDP of opposing proactive disclosure. Nathan Cullen was up next to demand changes to the bill in his usual sanctimonious tone, and Brison said that he would support and amendment that would require departments to get clearance from the Information Commissioner before refusing any requests related to Indigenous peoples. Cullen got back up with a rambling screed about upholding ethics standards, to which Morneau stood up to reiterate that they work with the Ethics Commissioner. Caron got back up, and repeated the list of alleged ethical failings of the government in French, not that Morneau’s answer changed.
“You’re lying!” Conservatives shout as Morneau says he disclosed all of his assets. #QP
— Dale Smith (@journo_dale) November 2, 2017
Roundup: The stages of scandal
Kady O’Malley has a piece about the five stages of a Canadian political scandal, and wonders just where the current Bill Morneau imbroglio lies along it. While she’s probably not wrong in that it’s likely hovering near the end-point, I would like to just take a moment to point out that most of this whole affair has been fuelled by weak-sauce allegations and conflated facts, and this particular air of desperation as people keep flinging the equivalent of spaghetti against a wall in the hope that something inevitably sticks.
And there is a complete air of desperation in the latest developments in this case. Bill Morneau paying a $200 fine for failing to disclose his stake in the ownership structure of his French villa – he had disclosed the villa itself – was turned into wails that he was a law-breaker, or that the fine was somehow a sanction for a “conflict of interest” that was never a conflict. And the NDP tried to move a motion to get Bill C-27 withdrawn, because they sailed a conspiracy theory that somehow there was a conflict of interest with a bill that they opposed for ideological reasons, in order to come at a different angle of attack on it. And while is no actual conflict with the bill, it keeps being reported uncritically as though there were.
And that’s probably what gets me the most irritated about these so-called political scandals, is that many are started by poor reporting on thin facts that are designed to be sensational, with follow-ups that are bigger and bigger reaches to the point where it’s a series of mind-numbing conspiracy theories being floated, each of which get amplified in QP. For what? I’m failing to see how imaginary scandals are holding government to account. There are so many other issues that have substantive policy issues that should be debated or explored, and we keep chasing these non-stories because we think there’s blood in the water. But by all means, keep chasing this phantom menace. It’s doing our democracy wonders.
QP: Here’s how your riding benefitted!
A rainy Wednesday in Ottawa, and all of the leaders were once again in the Commons, awaiting QP — three days in a row! It’s been a long time since that happened. Andrew Scheer led off, mini-lectern on desk, reading a stilted condemnation of Bill Morneau. Justin Trudeau reminded him that they have an Ethics Commissioner to protect the integrity of the institutions. Scheer insisted that it only works when they disclose, as the villa was not (not entirely true — the villa was disclosed but not the ownership structure), and Trudeau reiterated that they have confidence in the Commissioner. Scheer tried to press on when he learned about the villa’s ownership corporation, and Trudeau reminded him that they have a habit of attacking officers of parliament. Scheer accused the government of “hiding” things from the Commissioner — not really true — and then demanded to know if the Ethics Commissioner was advised of Morneau’s recusals, and Trudeau offered the lecture on the importance of opposition and why it was important to have a Commissioner that was above that. Scheer demanded to know if the Commissioner was advised before Bill C-27 was tabled, and Trudeau reiterated that they work with the Commissioner constantly. Guy Caron was up next, leading for the NDP, and read out statements that Trudeau made about leadership and accountability during the Harper era, and accused him of not living up to his word. Trudeau insisted that he has raised the bar with openness and transparency, and after a second round for the same in French, Marjolaine Boutin-Sweet repeated much the same question in French. Trudeau reminded the House about their move for proactive disclosure that the NDP balked at. Boutin-Sweet repeated the question in English, and got much the same reply.
Conservatives heckle that Trudeau is being holier-than-thou. #QP
— Dale Smith (@journo_dale) November 1, 2017
Roundup: Share sales and the sputtering outrage cycle
As the full-blown moral panic into what financial assets cabinet ministers own continues, we see the news that Bill Morneau has indeed sold off his shares in Morneau Shepell, for what it’s worth. Not that it will stop any of the chatter at this point – the outrage cycle continues to exhaust itself, and until some new outrage crops up, we’ll continue hearing about this as it sputters and runs on fumes.
Somebody sold a pile of Morneau Shepell shares yesterday, after dividend was paid. Busiest trading day in more than a year. pic.twitter.com/QqVxAuNgIb
— Glen McGregor (@glen_mcgregor) October 31, 2017
Can confirm. These are Bill Morneau's shares being sold off yesterday (and today–trade volumes way up again, close to 300,000 shares sold) https://t.co/Poefhr71Vp
— Glen McGregor (@glen_mcgregor) October 31, 2017
Morneau is donating proceeds from difference in share price vs. Oct 19 (~$5 million); the rest goes into a blind trust. https://t.co/1pafeA3nkO
— Glen McGregor (@glen_mcgregor) October 31, 2017
All this to say, we can now refer to Bill Morneau as the *former* owner of shares in his family HR company. https://t.co/rhdKGxj9EB
— Glen McGregor (@glen_mcgregor) October 31, 2017
And hey, why not find out what every other cabinet minister owns? The Star did, and I’m not really sure how edifying this whole exercise was in the end. Never mind that once again we’re reaching the point of absurdity with all of this. Are there problems with the ethics and conflict of interest legislation? Probably. Were loopholes identified previously? Yup. Did MPs do anything about it then? Nope. Do they really have an interest in closing any of them now? Probably not (and no, the NDP motion that the government voted down was not indicative of anything because it also contained a bunch of other stuff, as these things so often do, that was designed to embarrass Morneau and the government had they voted for it. Because in politics, we can’t have nice things). And once you add in all of the tall poppy nonsense, we’re left with the same tiresome moralizing that we’re always left with when it comes to “perceived” conflicts that aren’t actually there but which were invented out of whole cloth with the convenient lining up of “facts” that don’t pass the bullshit filter. And then we complain that nobody wants to get involved in politics.
Every single MP should take a vow of poverty along with their oath of office. Boom, problem solved.
— ishmael n. daro (@iD4RO) October 31, 2017
https://twitter.com/cfhorgan/status/925393091086786560
Meanwhile, the Liberals are pointing out that Andrew Scheer has assets in Real Estate Limited Partnerships that are really only for the wealthy. Predictably, the Conservatives cite that he’s worth only a fraction of Morneau, and then cries of hypocrisy flew from both sides, and the outrage cycle continues to chug along.
https://twitter.com/cfhorgan/status/925377206351564800
In 10 years there will be no actual issues. Political platforms will contain nothing but accusations of hypocrisy in other tribes. https://t.co/OEOvamU9m6
— Chris Selley (@cselley) October 31, 2017
QP: Numbered company vs numbered company
With it being Hallowe’en, we all braced ourselves for terrible themed references and questions. All of the leaders were present, as was Bill Morneau, so it was likely to be another repetitive day. Andrew Scheer led off in French, mini-lectern on desk, raising the comments of the former Commons law clerk about Bill Morneau’s affairs, and Justin Trudeau first noted that the rules were followed, and then reminded them that previous ministers in the former government had similar arrangements. Scheer tried again in English, and got the same response with a more pointed dig at his Scheer’s own financial arrangements. Scheer returned to French to first say that he disclosed his holdings (as did Morneau — seriously), and tried again, and this time Trudeau was far more pointed about the Conservatives attacking the integrity of the Commissioner, and listed the other officers and judges that they attacked while in office. Scheer raised Morneau’s numbered companies, and Trudeau reiterated his previous answer in English. Scheer tried to land a blow about how this was not about the Commissioner but about Morneau himself, but Trudeau decided to go all the way to reminding his opposites that they were the only party to have been found in contempt of Parliament. Guy Caron was up next for the NDP, and raised their demand for the Ethics Commissioner to come before committee, to which Trudeau said that he welcomed any attempt to tighten rules. Linda Duncan was up next, and demanded that the “loopholes” be tightened, for which Trudeau said that the two ministers who held assets indirectly no longer did — pointing to Morneau and Jody Wilson-Raybould. Duncan turned to the issue of methane emissions, and Trudeau pointed out that they were making progress while still growing the economy. Caron tried again in French, and got much the same answer.
The Speaker called our an MP for heckling…who wasn’t present. Oops. #QP
— Dale Smith (@journo_dale) October 31, 2017
QP: Listing numbered companies
As the Centre Block was getting all dressed up for the arrival of the President of Colombia, all of the leaders, permanent or “parliamentary,” were in the Chamber and ready to go. Andrew Scheer led off, mini-lectern on desk, leading off with the Globe & Mail story about four other cabinet ministers who apparently own stocks outside of a blind trust — because the Globe is now the opposition research bureau. Justin Trudeau reminded him that everyone worked with the Ethics Commissioner, and that all of the arrangements matched those used by the previous, Conservative finance minister. Scheer demanded to know who they were, and Trudeau tutted that in order to avoid slinging mud, they relied on the Commissioner to offer guidance. Scheer switched to French to ask the same thing, and got the very same response. Scheer tried again in French, and Trudeau praised the advice of the Commissioner. Scheer tried one last time in English, but had a hard time keeping a straight face as he demanded the names. Trudeau instead responded with a lecture about the need for opposition in a healthy democracy, but they had a Commissioner to keep everyone from slinging mud. Guy Caron was up next to lead for the NDP, and offered some added sanctimony with his demands for the names. Trudeau noted that they were willing to go above and beyond the rules, and that the personal attacks were a distraction from the good news about the economy. After another two rounds of the same, in both English and French, Hélène Laverdière raised the nuclear weapon ban treaty and the Nobel Peace Prize, and the government’s refusal to sign it. Trudeau praised the work of the Prize winners, and noted that they were taking leadership with the fissile materials ban, which included nuclear and non-nuclear states.
Roundup: There is no conflict with Bill C-27
Of the many Morneau Shepell conspiracy theories going around the past few weeks, the one that probably irritates me the most is the Bill C-27 iteration, especially in the way that fellow reporters and pundits will opine on the topic. The theory goes that Bill Morneau is allegedly in an “apparent” conflict of interest because a) when he was with Morneau Shepell, he advocated for the creation of targeted benefit plans; b) when he became finance minister, he sponsored Bill C-27, An Act to amend the Pension Benefits Standards Act, 1985, which allows for the creation of targeted benefit plans in federally regulated sectors, and c) because he still had shares in Monreau Shepell (albeit indirectly) that it would enrich him if the bill passed, and hey, the share price of Morneau Shepell went up when the bill was tabled (never mind that it returned to its former price weeks later). It’s all ludicrous when you actually understand what’s going on, but since the NDP proffered this latest theory as part of Morneau’s alleged misdeeds, it’s been repeated uncritically, and it’s starting to get on my nerves.
First of all, last I checked people get into politics all the time to advance issues that they care about, and Morneau was a recognized expert on pensions. And pension reform was one of the things he was charged with undertaking when he became finance ministers. The pension debate has been going on for years, and targeted benefit plans are a recent iteration that several groups, including CARP, have been advocating for. Now, the NDP are opposed to them because they think that everyone should get a defined benefit plan like was the case in the 1950s, never mind that the actuarial tables don’t actually support them anymore, given that people stopped smoking two packs a day and dying early. (No, seriously – talk to an economist and they’ll tell you that this is a real thing). And Morneau Shepell is just one company that deals with administering these kinds of plans, and C-27 would not mandate them – it would simply give federally regulated industries the option to use them.
But the bigger issue is this notion that it was somehow inappropriate for Moneau personally to sponsor the bill. The problem? That ministers don’t sponsor bills as individuals. Government legislation is put forward on behalf of the government – meaning Cabinet as a whole. A minister sponsors the bill as the office holder because they have to answer for how this bill affects their departments, and in this case, it’s the Department of Finance. If there was a cabinet shuffle tomorrow and someone else became finance minister, it wouldn’t affect the bill because the office holder sponsors it to respond on behalf of the department. It has little to do with Morneau himself, and ministers don’t sponsor bills because they’re interested in the subject matter. (Note: This is why it’s a problem that there is no Government Leader in the Senate to sponsor government bills introduced in the Senate). Trying to say that it was inappropriate for Morneau to sponsor this bill, or that it can’t go ahead under his name, is civically illiterate nonsense, and reporters should know this. But they don’t.
As for Morneau’s shares, if they had been in a blind trust, we would likely still be having this conversation because he would have still been making money on them if they increased in value as they were gradually divested at a pace nobody would know about. A blind trust is not some panacea, but people have glommed onto it like some kind of ethical talisman. That’s likely why Mary Dawson said that an ethics screen was a more appropriate mechanism, and lo, it was established; likewise, it’s why she was apparently surprised by Moreau’s decision to divest his shares – because it’s unnecessary, but a number of pundits have declared that this is the thing to do without necessarily thinking it through. Also, Dawson didn’t say she was “concerned” about C-27, or that she was about to launch an investigation into it – she said she would follow-up with Morneau, and I’m pretty confident that she is going to come back and say that there is no actual issue here.
And this is partially why I’m getting tired of this constant wailing and gnashing of teeth about Morneau’s “apparent” conflicts – because if you actually stop to think about them, there are no apparent conflicts. The “appearance” of conflict has been put forward by people lining up information in a way that looks bad in order to make political gain, and We The Media have been repeating it uncritically rather that running it through a bullshit filter and declaring that yup, this is bullshit. (Most especially the attempts to drag the Bank of Canada and the Bombardier loan into this). But there is also some Tall Poppy Syndrome at work here (Morneau’s wealthy? Well we couldn’t have that!), and this urge by some of the punidtariat to moralize without thinking through the facts, while at the same time the Twitter mobbing ramps up. We really haven’t been doing our jobs here.
My last thought on this is that this is really endearing the Ethics Commissioner position for someone to apply for it. Given the strict requirements, and the fact that this latest episode has demonstrated that MPs can’t get their act together on their own ethics regime (seriously – they adopted this system, refused to change it when the flaws were pointed out, and then turn around an insist that the it’s not enough to just follow the rules that they put into place), I’m increasingly having a hard time imagining someone wanting to take on this job. We may wind up with Mary Dawson in this job forever.