Tag Archives: Budget 2017

Roundup: Disingenuous leadership promises

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In the wake of the unity vote in Alberta on the weekend, there were a number of developments around the United Conservative Party yesterday morning, starting with the fact that one of the other PC leadership candidates who lost to Jason Kenney left the party, citing that it wasn’t going to be centrist enough. Meanwhile, the Wildrose house leader, Nathan Cooper, was named interim leader of the united party, while they get their Elections Alberta paperwork sorted. (Incidentally, the leadership is supposed to be decided by October 28th and the legislature not recalled until October 30th).

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Brian Jean also tendered his resignation as Wildrose party leader, and made a bid for UCP leader by mid-afternoon. And that’s where some of the fun/frustration sets in.

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These were two statements that Jean made, but they’re among the most problematic.  For starters, his promise on the carbon tax should be taken with a giant shaker of salt because by the time there’s an election in Alberta, there will be a federally mandated carbon price, and it would make absolutely no sense for a hypothetical Jean-led UCP government to withdraw the provincial tax only to be hit with a federal one that is designed roughly the same way – especially when the oil industry in Alberta has largely been behind the tax process because it offers them predictability and price measures that they can work with. And if Jean thinks that there will be a Scheer-led Conservative government federally who will cut the federal carbon tax, well, that sound a lot like counting chickens before they’re hatched.

The promise around equalization is even more nonsensical because there’s nothing that a referendum would actually accomplish. Equalization is a federal programme that comes out of the consolidated revenue fund. Alberta doesn’t write a cheque to Ottawa, who then turns it over to Quebec. Equalization comes out of the income taxes that everyone pays to the federal government, and is used to ensure that all provinces – especially those who don’t have a lot of revenue-generating potential – can offer roughly equal levels of services for things like healthcare. Alberta is a rich province. Its incomes are well above those in the rest of the country, and hence, they pay more income tax. That’s it. That’s how equalization works. If he thinks that he can somehow hold is breath and withhold paying, well, he’s utterly mistaken, and to promise otherwise is disingenuous, populist bilge. He can’t change the constitution either, so good luck with that. Sadly, because nobody actually explains to people how equalization works, people end up believing Jean’s nonsense.

Incidentally, Jason Kenney is expected to announce his UCP leadership bid this Saturday. Colby Cosh takes on the coming leadership contest here (and it’s a pretty cracking read).

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Roundup: Taking it to American media

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This wailing and gnashing of teeth going on about whether or not the Conservatives may have damaged NAFTA renegotiations by going to the American media to bellyache about the Omar Khadr settlement is kind of tiresome, but I have to wonder if some of the angst or even analysis on this isn’t misplaced. While sure, there are points to be made about how going there is a bit of hypocrisy going on, where Andrew Scheer insists that it’s totally different for the Conservatives to go down about Khadr while at the same time saying it was “treasonous” for Thomas Mulcair to go to Washington to decry pipelines doesn’t pass the credibility test, I also don’t think that Scheer can credibly claim that If the Khadr payment hurts NAFTA that it’s Trudeau’s fault because it comes off as petulant.

Roland Paris gave some additional thoughts here:

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There was an additional comment (that I can’t find to cite) that what’s more suspicious is the fact that the Conservatives had to go to the States to drum up outrage over Khadr because they weren’t getting much traction on it in Canada, as they were already preaching to the converted. I think that’s a fairly trenchant observation, and I have to wonder if it’s also because they chose particular American outlets that won’t offer pushback to their points that are factually wrong, which they wouldn’t get in Canada. Certainly Rosemary Barton wouldn’t abet the same kind of disingenuous commentary that Michelle Rempel pushed, and I think that’s also part of what we should take away from the exercise, beyond the fact that this performative outrage could backfire and cause problems with NAFTA in the age of the Uncertainty Engine taking more cues from Fox & Friends than he does with his officials.

Meanwhile, Paul Wells sees little trouble for Liberals in the polls post-Khadr settlement, so it seems like there’s little backlash (as those who were against Khadr seem unlikely to change their votes). Kady O’Malley meanwhile wonders if dragging the Americans into the Khadr file isn’t going too far.

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Roundup: Promised term-limits?

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In yesterday’s Hill Times, the question of promised term-limits for Harper appointees in the Senate was discussed, with a variety of responses in return. Some confirmed that they had agreed to an eight-year limit and would try to hew to it, while others said that it was some great myth that they agreed to such a limit when they were appointed, and expressed bafflement as to where the media got such an idea. (Hint: A bunch of senators said that they agreed to it, including Senators Wallin and Duffy). And while some of those senators noted that things changed, and that it wasn’t a realistic promise to keep if it wasn’t applied evenly, I would also add that it would have been an unconstitutional promise (if indeed they had made it).

While there is some fairly clichéd grumbling about how terrible it is that some senators are appointed for thirty-some year terms, the concept of term limits in the Senate is generally a bad one for a number of reasons. First of all, most terms that have been bandied about are too short to be effective. The Senate is the institutional memory of Parliament, given that we have a fairly low rate of incumbency and a high rate of turnover in the House of Commons. Eight year terms are not only too low for much in the way of memory (twelve being better), the bigger problem with eight-year terms is that it would allow a prime minister with two majority mandates to completely turn over the composition of the Chamber, which is a Very Bad Thing when much of the raison d’être of the Senate is to be a check on a majority PM.

The other, bigger point, about having a Senate where they are appointed to age 75 and are difficult to remove is that the tenure allows for institutional independence. If you have term limits – especially shorter ones – it means that you stand a greater likelihood that senators start trying to curry favour with the government toward the end of their term so that they can get some kind of post-senatorial appointment, whether it’s a diplomatic posting or heading a tribunal. By ensuring that they stay until the mandatory retirement age, it means that they aren’t going to be trying to leverage their position for post-senatorial employment because they will beyond the age by which any federally appointed positions will have them. That’s an important consideration that often gets overlooked.

While this debate around whether these senators did or didn’t agree to such a term limit, there is no enforcement mechanism, and as stated earlier, it was an unconstitutional promise so it should be considered moot. As to the point as about senators with very long tenures, that remains something that the government that did the appointing can be held to account for (and indeed should be) if they consistently appoint young senators.

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Roundup: Closing three loopholes

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As expected, Bill Morneau announced three new measures to crack down on tax avoidance by means of self-incorporation by high earners, many of them doctors and lawyers. While the government goes on a 75-day consultation period (to ensure that there are no unintended consequences) in order that the changes can be legislated in the autumn budget implementation bill, here’s economist Kevin Milligan explaining the problem and changes in detail here, plus his Twitter posts on the topic:

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Morneau acknowledged that the changes may personally disadvantage him (though two of the three categories didn’t apply to him) – making it clear that he didn’t look into his own situation to ensure that he was being fair and not self-interested in making them.

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Roundup: A lack of scrutiny

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While again noting that I don’t often write about provincial matters, sometimes they can be a microcosm or a vanguard of broader themes happening in different legislatures across the country, including the federal parliament, and this item out of Queen’s Park raises alarm bells because it is a telling sign. The province’s Financial Accountability Office – the provincial equivalent of the Parliamentary Budget Officer – tabled his annual report that essentially states that there’s not enough scrutiny happening within the legislature. And yes, that’s a very big problem.

While I am a bit surprised that his office is being underutilized, the fact that backbenchers aren’t doing the work of scrutinizing the actions of Cabinet – particularly on budget matters – is not unique to the province. Here in Ottawa, we see too many instances of MPs passing the Estimates with the barest of glances, and when ministers appear before committee to discuss them, they are generally bombarded with questions about issues of the day rather than what’s in the Estimates. That most of the scrutiny of the Estimates now happens in the Senate is Ottawa’s saving grace – something that provinces like Ontario can’t claim.

Part of the problem is that our civic literacy has so degraded that most MPs or their provincial counterparts (MPPs, MLAs, MNAs – style them how you will) don’t understand that their actual constitutionally mandated job is to hold the government to account by means of controlling the public purse. That, by definition, means scrutinizing budgets, the Estimates, and the Public Accounts. That MPs and their provincial counterparts don’t want to do that job – or at the very least are ignorant that it’s their responsibility – has meant the creation of more Officers of Parliament like the PBO, and the FAO in Ontario, to do that homework for them, and that’s a huge problem for the health of our democracy. But so long as MPs and their counterparts opt to stick their heads in the sand and play American lawmaker, spending all of their time and energy on private members’ business (when they’re not cheerleading for their particular leader), then our system suffers for it as governments aren’t held to account properly.

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Roundup: Virtue signalling over Khadr

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It’s official – Omar Khadr got his apology and settlement, but the terms of which are confidential (as is par for the course in most settlement offers), and now the Conservatives are really steaming mad. For his part, Khadr says that he hopes the apology and settlement will restore a bit of his reputation and help people take a second look at his case to see that there was more going on, but also notes that he is not really profiting from his past. While the ministers where quite neutral in their tone, when the parliamentary secretary accompanying them translated in French, he took the partisan shots that the government didn’t, which was odd. Later in the evening, the government put out further clarifications, no doubt bombarded with accusations of bad faith.

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Later in the afternoon, Andrew Scheer took to the microphones to offer a take so utterly disingenuous that it borders on gob-smacking. Essentially, he argued that a) they should have spared no expense in fighting Khadr’s suit, and b) that the remedy for the Supreme Court of Canada decisions around Khadr was his repatriation, which is a complete and utter fabrication. And there’s a part of me that would have like to see them argue that case before the Supreme Court, if only to watch the justices there flay them before laughing them out of the room.

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And then the rest of the weighing in, including Stephen Harper, who wanted to pin the blame on the current government, while Conservatives continued to virtue signal that no expense should be spared to give the appearance of fighting terrorists, never mind that this decision is about Khadr’s Charter rights being violated. For a law-and-order party to decide they want to cherry pick which Charter rights don’t apply to people they consider icky, well, that’s a pretty big problem right there.

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Here are some further legal opinions on the settlement, while Craig Forcese offers a reminder of some of the legal points at play, including where successive governments screwed up and made this settlement necessary where they could have repatriated him earlier and put him on trial here, an opportunity now lost. There is also a reminder that the government didn’t disclose the details of earlier settlements with former terror suspects who were cleared of wrongdoing. Terry Glavin has little patience for how this was handled on all sides, while Susan Delcarourt sees signs that people are still open to being convinced about Khadr.

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Roundup: Provocative boilerplate

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The House of Commons has risen for the summer, but how long it stays risen could be the big question as the Senate has two bills on its plate that they could send back to the Commons. The first of those is the budget implementation bill, after the Commons rejected their amendment. What inflamed tensions however was the boilerplate language that it was rejected for infringing on the rights and privileges of the Commons.

The fact that this is boilerplate eluded many Senators (and yours truly), given that it seemed to be yet another provocation given some of the underlying tensions in the current dispute. Yes, the language comes from Section 80(1) of the Standing Orders, but given that the Senate is trying to assert its independence and authority, the words seemed particularly targeted in this instance, especially as the Prime Minister rather dubiously claimed that the Senate has no ability to amend or reject budget bills when their only actual limitation is that they can’t initiate them.

Having received this rejection, the Senate decided to leave it overnight to think it over, and with luck, tempers will cool and they’ll get the better sense that this is boilerplate straight from the appendix of Beauchesne’s Parliamentary Rules and Forms, 5th edition, that that it likely wasn’t meant as a slight or a provocation. (Probably. But given how ham-fisted and tone-deaf the House Leader has a tendency of being, this isn’t a guarantee). It’s possible that cooler heads will prevail and they will defer rather than letting it ping-pong.

The more contentious bill may in fact be Bill S-3, which amends the Indian Act to remove gender-based discrimination, but the Commons rejected the Senate amendments that would eliminate other forms of discrimination. This particular bill may wind up being more problematic because it’s not a money bill and there is a bigger point of principle about discrimination and rights which a lot of senators get very exercised about (rightfully), and Indigenous senators in this case are particularly sensitive to. There have been suggestions that some are proposing a conference between the chambers to resolve the potential impasse, but we are not there yet.

Part of the calculation is that because the Commons has risen, a game of chicken is now being declared, where they are essentially daring senators not to recall them to deal with these amendments, and like Peter Harder has been doing, there will be all kinds of voices going on about the expense of such a recall. I think it’s overblown, but it wouldn’t be the first time that the Commons has used such a tactic to try and force the Senate’s hand into backing down on passing bills at the end of the sitting.

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QP: Final accusations of the spring

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One what was almost certainly the final sitting day (for real!), and after a number of statements for National Aboriginal Day (to be renamed next year), QP was on. Andrew Scheer led off, worrying that the changes to national security laws will make things too difficult for CSIS to do their jobs, per the fears of a former director. Justin Trudeau assured him that they we getting the balance right of safety and protecting rights. Scheer worried that security was being watered down, and Trudeau reiterated that they were getting the balance right. Scheer then changed to the issue of taxes and demanded he listened to the Liberal senators and stop the escalator taxes on beer and wine, and Trudeau reminded him that they lowered taxes on the middle class. Scheer railed about how they were hiking taxes on ordinary people (and no, cancelling a bunch of tax credits does not equal raising taxes), and Trudeau reiterated his response. For his final question, Scheer spun up a hyperbolic rant about all of the awful things the government has done, and Trudeau responded with a list of accomplishments and promises kept. Thomas Mulcair was up next, accusing the government betraying their promises to Indigenous people, and Trudeau assured him that they were committed to reconciliation and the relationship. Mulcair accused the government of breaking their promises on Access to Information, and Trudeau hit back that the NDP were completely absent on the transparency file. Mulcair worried about the Infrastructure Bank and the spectre of user fees, and Trudeau reminded him that they were looking for new ways to invest in the things Canadians need. For his final question, Mulcair railed about fundraisers, and Trudeau said that they were raising the bar and were exhorting the opposition to do the same.

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Roundup: Amendment and attempted intimidation

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As the spring sitting of Parliament draws to a close, and the Commons is getting tired and cranky as MPs are restlessly looking to get back to their ridings, all eyes are on the Senate to see if they’ll pass the budget bill unamended so that MPs can leave, or if they’ll be forced to stick around to deal with delays. It looks like the latter is going to happen after the Senate voted to adopt changes made at the committee that would remove the automatic escalator on beer and wine taxes. (There is some debate around this – while on the one hand there is the argument that increases won’t be scrutinized in future years by Parliament, there is also a reminder that the indexation fight was settled years ago).

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So while this means that the Commons wasn’t able to rise last night, and may have to stick around until Thursday, depending on whether or not they pass it at Third Reading tonight, and how fast it takes the Commons to turn around a vote on accepting or rejecting (almost certainly the latter) the amendment.

But that’s not the only curious part of this tale. Apparently when the vote was about to happen, all manner of Liberal MPs and ministers arrived in the Senate to watch the vote happen – but not in the gallery. No, they were instead on the floor of the Senate, behind the bar at the entrance.

While this attempt at intimidation is quite unseemly in and of itself, I’ve also been hearing complaints that Senator Peter Harder, the Leader of the Government in the Senate – err, “government representative,” is admonishing senators not to amend bills this late in the game because recalling the House of Commons to pass or reject those amendments “is expensive.”

I. Can’t. Even.

Telling Senators not to do their constitutional duties of reviewing and amending legislation because it might inconvenience a few MPs is gob-smacking in and of itself, but couching it in dollar terms is beyond the pale. Apparently, we can only have parliamentary democracy if it’s done on the cheap. Why have oversight or hold the government to account if it’s going to cost any additional dollars? I guess we might as well pack it all in and roll over for the government – costs too much otherwise. Sweet Rhea mother of Zeus…

Update: It seems there were some Conservatives there as well.

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QP: Tired jabs and deficit questions

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Nearly all the desks were filled on what was possibly the final QP of the spring. Andrew Scheer led off, concerned about the “astronomical” debt the Liberals were leaving behind (which, in absolute terms, is one of the envies of the world because it’s quite low). Justin Trudeau reminded him that they won the election on promises to invest. Scheer tried again, giving a lame “budgets don’t balance themselves” quip, and Trudeau again reminded him that they needed to invest after the previous government didn’t and hey, lower taxes for the middle class and the Canada Child Benefit. Scheer railed about all of the new taxes being levied (most of which were not new taxes but cancelled tax credits that had little efficacy), and the PM reiterated that he lowered taxes. Scheer jabbed that Trudeau had never been part of the middle class, and Trudeau hit back that boutique tax credits and lower taxes on the wealthiest didn’t help those who needed it the most. Scheer then turned to the new national security bill, saying it removed needed tools for law enforcement agencies. Trudeau noted that they were balancing community safety with rights and freedoms, and that they welcomed recommendations for amendments. Thomas Mulcair was up next, grousing that the government broke their promise on allowing Access to Information requests to ministers offices and the PMO. Trudeau simply noted that they made the biggest reforms to the bills and increased proactive disclosure. Mulcair tried again with added mocking, but Trudeau didn’t budge, and Mulcair then railed that they kicked journalists out of a party fundraiser. Trudeau reminded him that they have raised the bar on transparency and that other parties weren’t doing. Mulcair tried again in French, but Trudeau’s answer didn’t change.

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