Tag Archives: Budget 2018

Roundup: Questions about Scheer’s assertions

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Andrew Scheer went to Calgary yesterday to talk to that city’s Chamber of Commerce and said a few things that I feel should probably stand a bit of questioning. Like the fact that he thinks it’s a “red flag” to use taxpayer funds to backstop the Trans Mountain expansion pipeline. And it’s fair that there’s scepticism about governments essentially subsidizing private business, but it’s his assertion that “governments investing tax dollars in energy projects is not the optimal solution.” Sure, it’s not optimal, but it’s complete and total historical revisionism to suggestion that this is somehow new or novel. Given the ways that governments, both federal and provincial, have de facto subsidized the development of the oilsands with generous royalty breaks and other tax incentives has been sinking a hell of a lot of taxpayer dollars into energy projects. And yes, there was a whole national crisis that had a hand in bringing down a federal government around the government sinking money into a cross-country pipeline.

But the other statement that Scheer makes that I find a bit puzzling is this continued insistence that somehow provinces were forced to “take matters into their own hands” over the Trans Mountain issue because the federal government showed a lack of leadership. And I’m still trying to figure out how this works. For starters, which provinces is he referring to? BC, which took it upon themselves to challenge federal jurisdiction in a naked attempt to appease a coalition partner? Or Alberta, who escalated tactics on the basis of a press release? “They should use all of the tools at their disposal,” Scheer insists of the federal government, and yet I’m not sure what exactly they were supposed to do. They already have jurisdiction – trying to re-assert it would imply that there was a question when there isn’t one, and creating doubt would embolden opponents. There wasn’t anything to challenge in the courts because BC had only put out a press release, and nobody even had a clue about what specific questions BC was raising until they filed their court reference this past week. How would going half-cocked have helped matters? But demanding they “use all the tools” sounds an awful lot like hand-wavey nonsense that serves to only invoke the politician’s syllogism than it does to suggest meaningful action. Kinder Morgan, meanwhile, has used this exercise in threatening to pull out in order to exact political leverage (and the fact that a private company is attempting to blackmail governments is not a good look), but there remain questions outside of all of this as to their own obligations to fulfil the conditions imposed on them by the National Energy Board for continued approval of the project. That can’t be glossed over.

I’m also curious what else he thinks the federal government should have done to silence BC’s objections, considering that he’s also supporting the Saskatchewan government’s attempt to push back against the imposition of the federal carbon backstop price. Is his position that federal governments should bigfoot provinces to get pipelines, but that they don’t dare interfere in areas of shared jurisdiction like the environment? That’s an interesting needle to thread, and somehow, I doubt we’ll see him attempting to do so anytime soon.

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Roundup: Upping the Trans Mountain drama

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Late afternoon yesterday, Kinder Morgan put out a surprise press release saying that they were suspending “non-essential activities” and spending related to the Trans Mountain pipeline expansion, citing the political fights still underway on the project. It’s a transparent move to try and force a political solution to some of the drama underway, and it certainly got everyone’s attention. Within the hour, Jim Carr was standing before reporters to assure them that all options were on the table, but by that point, Rachel Notley was demanding “concrete action” from the federal government, while Jason Kenney started his performative caterwauling about how terrible the federal government has been on this, and the federal conservatives promptly followed suit, ignoring their own record on pipelines in the meantime. Andrew Leach, however, has kept receipts, and immediately called them out on it. (John Horgan, incidentally, denies that he’s been harassing the project).

When Leach called out the fact that the previous government didn’t hold a press conference about the approval of Northern Gateway, and didn’t travel to BC to promote it, Raitt didn’t get his point and responded with a news article from the day which pointed out directly that the minister’s office sent out a release and refused all questions, after which Harper noted in the Commons that jurisdiction was deferred to the NEB. So the question is, if that was good enough for the Conservatives then, why is it so terrible that the Liberals are doing more and being more vocal about Trans Mountain now?

Paul Wells, meanwhile, takes a survey of the landscape in the wake of these developments, and continues to express some doubts as to what is going on. I personally have to wonder what more the federal government can do in the face of the provincial tit-for-tat from Alberta and BC, seeing as they already have jurisdiction over this pipeline, and they realistically can’t bigfoot the actions of the NEB, which is a quasi-judicial body. After all, there is the rule of law to contend with. To date, BC really hasn’t made any concrete actions that the government can take to court, for example, and certainly nothing that would merit reviving the powers of disallowance from constitutional dormancy. Kenney et al.’s demand to declare Section 92(10)(c) of the Constitution is legally illiterate, so what else, pray tell, should the federal government do? I’ll be curious to see what verifiable solutions present themselves in the coming days.

To round it off, Kevin Milligan also offered some observations on the situation on the ground.

https://twitter.com/kevinmilligan/status/983120057608781824

https://twitter.com/kevinmilligan/status/983121108852289536

https://twitter.com/kevinmilligan/status/983123756355694592

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Roundup: Too omnibus or not too omnibus?

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The opposition is crying foul over the government’s 556-page budget implementation bill and moaning that it breaks the promise about omnibus bills. It’s not an unfair point, but one that requires a bit of nuance. For one, the government never promised that they would never table an omnibus bill – only that their omnibus bills would not be abusive, and yes, there is a difference. Omnibus bills can be useful tools, particularly if it’s regarding matters that would have a number of coordinated amendments to the same existing statute. That way, you don’t have six different bill all amending the same piece of legislation (like the Criminal Code, for example, or the Income Tax Act, if it’s a budget bill), possibly causing pile-ups of amendments to some of the same sections of the bill. The overriding criteria for it not to be abusive, however, is that it should all touch on the same subject matter. The abusive bills of the previous government didn’t do that, and they stuffed everything into it, including a number of unrelated measures (like environmental legislation) into budget bills in order to get them passed expeditiously – a technique they started during the minority years, so that they could huff and puff about confidence measures and not sending Canadians to the polls too soon; they simply carried on the technique once they had a majority.

Does this current budget implementation bill reach that level of being abusive? Not that I can see. Glancing through the bill, the only section that raises a possible eyebrow is the section within that creates the Greenhouse Gas Pollution Pricing Act – the carbon tax legislation. Should it be separated? Well, it does have to do with fiscal measures as it deals with the federal carbon price backstop (which yes, is a carbon tax for those provinces who refuse to implement one), as opposed to, say, environmental assessments. And the government has pointed out that they have circulated draft legislation prior to this, so it’s not coming out of the blue or as a complete surprise stuffed into the bill along with a number of other surprises. But, if the opposition wants to challenge it, the Speaker has the power to split the bill if they can make their case convincingly enough. The other issue is that the government hasn’t pre-declared a timetable for when they want this to be passed, but it will likely mean some marathon committee time. Let’s just hope that the opposition doesn’t demand days and days of useless Second Reading “debate” first, which would eat into the committee time, because that’s where a bill like this should spend its time.

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QP: A greatest hits of disingenuous complaints

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On caucus day, with the benches close to full, we had all leaders present for Question Period, and yes, Justin Trudeau ready for his proto-PMQs. Andrew Scheer led off as usual, mini-lectern on desk, and Andrew Scheer raised the non-story of MP Raj Grewal’s extracurricular business whose associate attended the now infamous reception in India. Trudeau replied that they signed a billion dollars in trade deals in India, and when Scheer raised another MP’s dealings on that trip, Trudeau took up a script to read yet more praise about the relationship between Canada and India. Scheer then returned to the demands for Daniel Jean to appear at committee and the concerns that media reported they were told details that they couldn’t print. Trudeau reminded him that a full classified briefing was offered, and Scheer has turned it down because he wants to play politics. Scheer tried again, and Trudeau reached further into the days of Stephen Harper of muzzling scientists and ignoring truths that clashed with their messaging. Scheer then moved over to the issue of gifts plural given and received between Trudeau and the Aga Khan, and Trudeau noted that this was all dealt with via the Ethics Commissioner and that Scheer was simply engaging in personal attacks. Guy Caron was up next, demanding taxes on Netflix, to which Trudeau reminded him that Netflix wouldn’t pay those taxes — ordinary Canadians would. Caron then raised the size of the budget implementation bill, and Trudeau listed all of the good things in it. Shiela Malcolmson called said bill a betrayal, and Trudeau read off more gender measures from the budget. Peter Julian then went for another round of the same, and got a similar response.

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QP: A sweater and an overnight bag

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With all leaders in the House, and all hands on deck, we were ready to see just what fireworks would transpire. Andrew Scheer led off, mini-lectern on desk, concerned about the “inappropriate gift” that the PM received from the Aga Khan that was not disclosed. Justin Trudeau stood up to reiterate well-worn talking points about the previous Ethics Commissioner’s report and how they worked to strengthen future disclosures. When Scheer pressed, Trudeau assured him that during the holidays, family friends exchange gifts and he gave the Aga Khan a sweater, and got an overnight bag in return. Scheer changed topics, and demanded the briefing from Daniel Jean for the committee. Trudeau retorted that a briefing was offered to Scheer and he refused, and after a second round of the same, Scheer thundered that he was only offered a classified briefing so that he could stop asking questions. Trudeau gave the riposte that only a Harper Conservative would think that giving information to the media was hiding the truth. Guy Caron was up next, and he returned to the question of the “unacceptable” gift, insisting that it had to be worth over $1000 to be deemed such, and it couldn’t have been an overnight bag (Really? What if it was a Louis Vuitton bag?). Trudeau reiterated that he disclosed the gift to the Commissioner as part of the investigation. Caron was not mollified, and he railed that this was not open or transparent. Trudeau disagreed, and insisted that they were delivering on their promises. Charlie Angus got up next to deliver some sanctimony — and some swipes at the Aga Khan along the way — and Trudeau reminded him that the system is to disclose to the Commissioner. Angus went for a second round, and got the same in return. Continue reading →

Roundup: That $1 trillion figure

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The big scary headline yesterday was that Canada’s market debt had reached $1 trillion. OH NOES! screamed the commentators, and the Conservatives most especially (albeit not in Question Period, but at committee). Part of the problem with this figure, however, is how it’s being reported, and most especially, being compared to things like a household mortgage, which it is absolutely nothing like. For starters, the “market debt” figure being reported there adds a great many things into it – things like the debts of Crown Corporations like CMHC, the Business Development Bank of Canada, or Export Development Canada. These may have federal backstops, but with BDC and EDC, for example, these are important vehicles for entrepreneurs and exporters to expand their businesses, which is generally good for the economy. And you can bet that the “fiscal hawks” out there are disingenuously bundling this into the federal government’s net debt, or sub-national government debt, and giving themselves the vapours to prove a point, which isn’t necessarily helpful.

https://twitter.com/MikePMoffatt/status/978405748253212672

And as much as the Conservatives are snarking at Bill Morneau over this figure, ignoring how much they added to the national debt in the wake of the financial crisis of 2008 (much of the spending coming too late as the recovery had already started when they spent the money, which was also not necessarily spent efficiently) or the fact that when the Liberals took office in 2015, there was a $70 billion hole in GDP because of the mini-recession that happened in part due to the drop in oil prices. That $70 billion is largely where their increased deficit figures come from, not that they communicate this very effectively. But despite Kevin Page’s warning that interest on debt is the fastest growing line item in the federal budget, debt-to-GDP is going down, and the deficit is shrinking faster than initially reported because the economy has been growing faster than expected. Current PBO figures show that there is no debt bomb – federal figures are in a downward trajectory sustainably. I’m not sure that tearing our hair out over this $1 trillion figure is helpful, particularly because it bundles in a lot of things, and the reporting on that isn’t making it clear. It’s just a big number that people are supposed to get upset over, which helps nobody understand the true fiscal situation, of the levers that governments have to deal with it.

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QP: Concern trolling about Daniel Jean

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While the memo went out cancelling travel for Conservative MPs, it apparently wasn’t received by Andrew Scheer, who was not present. That left it up to Candice Bergen to lead off, railing that the government forced them to vote for 21 hours in a “cover-up.” Justin Trudeau said that Scheer was offered a classified briefing by the public servants in PCO, and he declined. Bergen insisted that they wanted the same briefing that the media received, and Trudeau reiterated his answer, and that this was really about petty politics. Bergen retorted that members of the media aren’t sworn into Privy Council, and repeated her question. Trudeau said it was puzzling as to why Scheer turned town the briefing in order to play politics. Pierre Paul-Hus stoood is to repeat the question in French, and he got the same response in French as he did in English, with Trudeau digging in that the Conservatives would rather play politics than debate gun control. Guy Caron was up next for the NDP, railing that only a small number of tax evasion files were opened by CRA, to which Trudeau took up a script to reminded him that they invested a billion dollars and have a thousand ongoing audits, and forty criminal investigations underway. Caron railed that KPMG was getting away while waitress’ tips are being targeted, and Trudeau gave some bland assurances that everyone will pay their fair share of taxes. Charlie Angus was up next, railing about the “close links” between Facebook, the Liberals, and actors identified in the current scandals. Trudeau took up a script to read some assurances that they respect privacy rights, and they are committed to ensuring Canadians can trust in our institutions. Angus demanded assurances that they would not balk at these actors being called to committee, but Trudeau read some more bland assurances.

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Roundup: Incoming procedural shenanigans

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Hang onto your hats, dear readers, because it looks like we’re up for another week of procedural gamesmanship as the Conservatives continue to try to make the Atwal Affair happen. Our hint is that the Conservative whip, Mark Strahl, has taken the unusual action of cancelling all MP travel, and wants to ensure that it’s all hands on deck for this short week (but one wonders if that includes Andrew Scheer, who has been barely in Ottawa lately, including on sitting weeks, as he continues his various tours across the country). That, and the fact that it seems that this is the time of year that there is some kind of procedural showdown, judging from the past couple of years. (Recall that around this time last year, the Commons ground to a halt over Bardish Chagger’s proposals for reforming the Standing Orders).

So what can we expect? No idea yet, but one imagines that the stops will be pulled out, whether it’s interminable points of privilege, filibusters at committees, or attempts to force concurrence motions on committee reports. Whatever it is, we’ll see how long they either have the stamina for it (unlike last week’s vote-a-thon tantrum), given the upcoming long weekend/two-week constituency break, or whether the government will back down (as they have tended to in the face of such obstruction techniques). Maybe the government will be able to issues manage/communicate their way out of a wet paper bag this time and effectively say that the opposition is wasting time that could be better spent debating gun control/the budget implementation bill/etc, etc. Or maybe the Conservatives will have better traction with their disingenuous narratives about the Atwal Affair and the absurd notion that the government is “muzzling” the National Security Advisor from appearing at committee (never mind that he shouldn’t appear based on Westminster norms, and that the government has pointed to the National Security and Intelligence Committee of Parliamentarians to investigate the issue if the Conservatives are so motivated, if they actually cared about accountability and were not simply looking to public humiliate a senior public servant and the government). Suffice to say, nobody is going to cover themselves in glory over this, everyone’s patience will be tested, and nothing will be accomplished in the long run. But what else is new?

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QP: Scrapping over data mining

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While Justin Trudeau was off to New Brunswick, and Andrew Scheer elsewhere, it was up to Erin O’Toole to lead off, reading a quote about the job of the opposition to ask questions, attributing it to the PM, and wondered why the government wouldn’t let Daniel Jean appear before committee. Ralph Goodale calmly responded that the crux of the motion was around the Atwal invitation, that it was rescinded. O’Toole insisted two more times that MPs had a right to hear the briefing, but Goodale defended Jean’s career and insisted there were no contradictions in the positions put forward. Pierre Paul-Hus tried again twice in French, and Goodale poked holes in the Conservative Supply Day motion in return. Guy Caron was up next for the NDP, and decried that only $15 million out of the $1 billion given to CRA to combat tax evasion. Lebouthillier reminded him that the investment was over five years, and it would be ramped up in order to take a strategic approach. Caron then railed that the CRA’s anti-avoidance committee met in secret, while Lebouthillier said that it was a committee of experts that meets as necessary. Peter Julian took over in French, and demanded taxation on web giants, to which Bill Morneau said that they were conducting studies to ensure that the system would work well. Julian changed to English to insist that studying the issue would mean doing nothing, but Morneau reiterated that they wanted to have a plan before acting.

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QP: Twin moral panics in play

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While Justin Trudeau was off to Toronto, Andrew Scheer was present for Question Period, and he led off with the role that Christopher Wylie, the infamous “Facebook whistleblower” had worked for the Liberals, and demanded answers. Scott a Brison pointed out that the Liberal Research Bureau had already issued a statement saying that they decided not to go ahead with his services and that he had no access to voter data. Scheer lamented that Trudeau didn’t answer — being cute because Trudeau was not present — and when he continued to rail about Wylie, Brison reiterate his response, and hit back with contracts the Conservatives tendered for their own data services. Alain Rayes took over in French to ask the same thing two more times, and Brison repeated his responses (albeit in English). Scheer got back up to rail about the “peoplekind” joke and the apparently scandalous news that Service Canada is not supposed to use the honourifics of “Mr.” of “Mrs.” The horror! Jean-Yves Duclos assured him that they can still use the honourifics, but that they were working to be more inclusive of all gender identities. Guy Caron led off for the NDP, condemning the lack of action on tax evasion despite the $1 billion investment to do so. Diane Lebouthillier got up to assure him that they were looking into tax evasion and had new agreements to get necessary data, and when Caron got up to rail that CRA was slapped with a $1 million fine for abusive behaviour, Lebouthillier reiterated that the case dated back to the Conservatives. Peter Julian got up to repeat the condemnation around tax evasion in English, and Lebouthillier reminded him that they now have the data they need. Julian tried one more time, throwing every thing else in the question, and Lebouthillier retorted that the OECD has recognised Canada’s leadership in data-driven combatting against tax evasion.

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