Tag Archives: Budget 2020

QP: Not taking yes for an answer on Line 5

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It was yet another day where the Liberals had only a single MP in the Chamber yet again, no matter that there were plenty of other of their MPs in the building, continuing to show their contempt for Parliament as a result. (A second MP joined him for a few minutes, then left again). Candice Bergen led off virtually, and she railed about the threats to Enbridge Line 5, to which Seamus O’Regan agreed that the pipeline was vital and they were working to secure it. Bergen was not mollified and grumbled that the prime minister didn’t answer before demanding he do more to protect it. O’Regan assured her they were working on the file and it served no purpose to conflate it with other issues. Bergen railed that Trudeau had failed under three successive presidents to protect the energy sector, and O’Regan repeated his assurances that they were doing everything possible. Richard Martel took over in French to demand more vaccines, to which Anita Anand first started off by acknowledgement Black History Month and let it be known that she works to reach out to the Black community for procurement needs, before turning to the question and assuring him that there are two vaccine shipments arriving this week. Martel was not impressed and demanded vaccines immediately, and Anand assured him that factories were ramping up production to meet demand.

Alain Therrien led for the Bloc, and he demand a guarantee that vaccine deliveries were going to get back on track, to which Anand assured him that a Pfizer shipment was en route. Therrien railed that this was not good enough, but Anand insisted that they shared this priority of getting vaccines to Canadians, and that the overall schedule was not affected. Jagmeet Singh led for the NDP, and in French, he demanded all non-essential flights be cancelled, to which Omar Alghabra reminded him that they have some of the toughest measures in the world, and listed them. Singh repeated the demand in English, and got the same answer,

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Roundup: Telling the premiers no

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The prime minister met with the premiers (virtually) yesterday, and while there was talk about the vaccine roll-out and that kind of good stuff, there was also a discussion about healthcare transfers – or more specifically, the premiers’ demand for some $28 billion in permanent new transfers with no strings attached. Justin Trudeau, to his credit, said no – or more specifically, he does see a role for the federal government to pay more, but now is not the time to discuss how much, and you can bet that it’s going to come with plenty of strings for new programmes that the federal government wants to launch, like pharmacare and national standards for long-term care.

There are a few things to remember about why there need to be strings attached to this money. One is that we can’t trust that provinces will actually spend this on healthcare, and lo, we have precedence for this. Prior to the Harper government capping the health transfer escalator at three percent or GDP growth (whichever was higher), healthcare spending increases by the provinces were far below what the health transfer escalator was – meaning that the provinces were not spending healthcare money on healthcare. Additionally, some of you may remember when Stephen Harper fell for Jean Charest’s bogus demands to address a “fiscal imbalance” between Ottawa and Quebec, so when Harper – desperate for Quebec votes – turned over a pile of money to Charest to address said bogus “imbalance,” Charest turned around and turned that into tax cuts, burning Harper in the process. On top of that, we have seen plenty of provinces during this pandemic alone just sitting on the money the federal government gave them to deal with it. So no, we should not trust that provinces will spend it wisely.

As well, the premiers have been misrepresenting the history of health transfers, citing the “it used to be 50-50” line, without acknowledging why it changed, which was to give the provinces tax points that they could use for healthcare or other programmes. There is a great thread here that you should all read that spells it out, and why we should take these provincial (and Bloc, NDP and now Conservative) talking points with a shaker of salt, because they’re misrepresenting history.

Last sitting day

Given that this is the last sitting day of 2020, I suspect that we may see a unanimous consent motion to pass a number of bills in one fell swoop before the Commons rises, being the UK trade deal bill, the Elections Act bill, and quite possibly the fiscal update implementation bill. Why those three? There are worries about trade disruptions if the UK trade implementation bill doesn’t get passed by December 31st, and this essentially just rolls over the existing CETA with the EU, so there would be very little that is contentious in this bill. With the elections bill, it is also relatively uncontentious, based on Elections Canada’s input that would allow for a pandemic election to have three voting days and extra advanced polling, plus some other changes for things like long-term care facilities and increased mail-in ballots – and since it needs 90 days from royal assent to come into effect, parties will want it to pass as quickly as possible. And as for the implementation bill, it contains both a fix for a flaw in the commercial rent assistance programme that they didn’t amend, plus has other pandemic supports, and again, they will want it passed as soon as possible. Of course, this means once again that there is plenty of spending that didn’t get scrutiny, and it jams the Senate by pushing a bunch of bills on them without time to give it proper study or the ability to move amendments, but this is becoming a hallmark of this parliament.

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QP: One last PMQs for 2020

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For Wednesday, every major leader was present in the Chamber, for the last proto-PMQs of 2020. Erin O’Toole led off, worrying that the wage subsidy padded the books of sixty-eight corporations (per the reporting in the Financial Post). Justin Trudeau said he would get to the question in a moment, and wanted to pay tribute to the doctors and regulators who got the Pfizer vaccine approved, but warned there was still going to be a long winter ahead. O’Toole said that was important, but noted that one of the corporation was a long-term care provider who needed help from the Armed Forces. Trudeau noted that they provided aid when it was necessary. O’Toole stated that the government didn’t do their due diligence — which is something of a self-own given that the opposition didn’t apparently do theirs either, and Trudeau noted that they are being criticised for getting money out too quickly and compliance would be on the back end. O’Toole said that people were being told to pay back CERB based on net income and not gross, and Trudeau said that people who made good-faith mistakes would be given leniency. O’Toole then switched to French to bring up the PornHub story again, and Trudeau reminded him that new rules are coming to ensure internet providers take down illegal materials. Yves-François Blanchet was up for the Bloc, and he once again demanded support for a Bloc bill to extend Quebec’s Bill 101 to federally-regulated sectors, to which Trudeau picked up a script to read about how they are committed to protecting both official languages and an updated Official Languages Act is on the way. Blanchet then wondered if the prime minister would meet the premiers in order to give them all the money they want with no strings attached, to which Trudeau chided him that the Bloc only wants to pick a fight when they have been working well with the provinces. Jagmeet Singh was up next, and in French, returned to the story of shareholders getting dividends while taking the wage subsidy, to which Trudeau stated that they helped Canadians throughout the pandemic. Singh repeated the question in English, worrying especially about artists being forced to pay back aid, for which Trudeau reminded him of the additional aid they provided artists.

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Roundup: From the Bank to Finance

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Tongues were set wagging late Sunday night as word came down that the government was planning to appoint Michael Sabia, currently the head of the Canada Infrastructure Bank, to be the new Deputy Minister of Finance. There had been a bit of concern over the last week when it was reported that Freeland was interviewing five candidates to replace her deputy, who had announced his resignation the day after the fiscal update, given that it’s unusual for this to happen in our system. But deputy ministers are Governor-in-Council appointees, so while it’s unusual for ministers to choose their own deputies rather than the Clerk of the Privy Council recommending one to the prime minister, capacity for such decisions do exist. One does wonder, however, what signal this sends to the Infrastructure Bank, given that they just put Sabia in charge a couple of months ago, and now they’re moving him again.

This having been said, it was not unexpected that the outgoing deputy would not last there too much longer, because he too was of the generation in the public service for whom it is 1995 and will always be 1995 – and already the pundit class for whom this is the unifying theory are already chirping about his departure. Why this may turn out to be important is because we are going to have to start thinking out federal finances in a different way as the pandemic moves into recovery mode. Why? Because the old obsessions around debt and deficit (which is the mindset of the 1995 crowd) may lead to more damage than good, and we could see ourselves in a Japan-like situation if we’re not careful. And while yes, there are “guardrails” and planned “anchors” once we’re fully into the recovery stage, it may be time for a fresh mindset in the senior ranks – though given how much attention they put on Sabia when they brought him into the Infrastructure Bank, moving him to Finance right away seems mighty cozy, and this will no doubt launch another round of the current witch hunt going on in committees.

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Good reads:

  • One of Pfizer’s top executives says that Canada could be getting vaccines within 24 hours of Health Canada approval, possibly by the end of this week.
  • Major-General Dany Fortin says they are expecting a constant flow of vaccines into the country by January once approvals are completed.
  • A (small) rise in cases in PEI has the province moving to a “circuit-breaker” lockdown before the cases start rising – like other provinces should have done.
  • An internal review at Global Affairs found no standard process for vetting honorary consuls, and they have since developed a new code of conduct.
  • Speaker Rota reflects on his first year in the big chair, at a time of pandemic, “virtual” and hybrid sittings.
  • Susan Delacourt details how the Liberals are preparing for a possible election in the spring, even though they don’t necessarily want one.
  • Chantal Hébert evaluates Erin O’Toole’s first 100 days as leader, and finds it wanting, not only for the lies, but also the evasion on his own plans.

Odds and ends:

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Roundup: Admission that deadlines will be missed

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The federal government announced yesterday that they weren’t going to be able to meet their deadline for fixing all of the boil-water advisories on First Nations reserves, in part because of delays caused by the pandemic. And while they should get some points for at least owning this rather than sending it down the memory hole like their predecessors did, this is yet one more file where they need to do a much better job of communicating what is going on with the file. And Marc Miller is better than many of his fellow ministers, but there needs to be a hell of a lot more candour that about these boil-water advisories, such as each case is unique so you can’t fit the same solution to all of them; it is a huge challenge to build major infrastructure in remote and fly-in communities, and that takes a lot more time to complete a project as a result; that in some communities, the bigger problem is capacity to maintain systems – and in some communities, the problem is that as soon as they train someone to maintain the system, they get a better offer and get poached. Miller did note that in some cases, the state of decay in some of these systems was not adequately appreciated, and that climate change and shorter winters make getting materials up to some communities on ice roads more difficult. The other aspect of note is that there is yet more funding attached to finish the job, as well as better ongoing maintenance and prevention of future advisories, which is all good, but again, they need to communicate what the challenges are, lest we get another round of people who live in cities not being able to appreciate that you can’t throw money at a problem like this and hope it gets fixed overnight.

This being said, there is already talk about broken promises, and the dangers of setting deadlines, and so on. I would note that there should be nothing wrong with setting ambitious targets, and there should also be nothing wrong with adjusting them, but that should be accompanied by candour that lays out why plans need to be adjusted. I think this government underestimates how much goodwill can be gained by frank and honest discussions of projects rather than just sticking to the happy-clappy talking points and other pabulum that they spout, but what do I know?

In pandemic news, the Alberta government has requested field hospitals from the federal government and the Red Cross, but they claim that this is just about contingency planning, and that they haven’t requested personnel for them. Given that infections are out of control in the province, and its hospitals are already at the point of being overwhelmed, you can be pretty sure that this line about it being for a “contingency” is bogus, that they know they need to do this because they refuse to lockdown, and this is just softening the ground.

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QP: Going hard on the CanSino conspiracy theory

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It being Wednesday, the prime minister was present and ready to respond to all questions put his way. Erin O’Toole led off, script on his mini-lectern, and he immediately started in on his CanSino conspiracy theory, apparently not understanding how vaccine regulation works, to which Justin Trudeau insisted that they signed on with Moderna and Pfizer before the CanSino deal fell apart, and why they put their eggs in as many baskets as possible. O’Toole said that CSIS was trying to warn the government about CanSino for years, but Trudeau again refuted this. O’Toole quoted an unnamed security analyst to say that China played Canada on the CanSino deal, and Trudeau stated that O’Toole was making stuff up, and that when the CanSino deal fell apart, Canada’s vaccine portfolio went from eight candidates to seven. O’Toole switched to French to claim that other countries will have all of their populations vaccinated by June, but Canada wouldn’t by September, to which Trudeau reminded him that Health Canada was studying four candidates and that there are guarantees for doses for Canadians. O’Toole demanded a plan to give the country “hope,” to which Trudeau said that their plan was to protect Canadians and help the economy weather the storm so that we will emerge from the pandemic in a strong state. Yves-François Blanchet got up next for the Bloc, and he demanded increased health transfers to the provinces, to which Trudeau reminded him that they have been working with the provinces since the pandemic began and have already transferred billions of dollars to them. Blanchet tried again, and got a much more emphatic version of the same answer. Jagmeet Singh was up next for the NDP, and in French, he lamented the lack of a vaccine plan, for which Trudeau reminded him that they have been working with the provinces since the spring to prepare for this. Singh changed to English to decry that the government wouldn’t be able to complete their pledge to end all boil water advisories on time, and read a statement from a First Nations child. Trudeau read a script that they have been working with those communities, and it takes time to overcome decades of neglect.

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QP: Calling out O’Toole’s vaccine misinformation

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The Speaker accidentally called out “quarrel questions” instead of oral questions, and that set the stage for the day. Erin O’Toole led off, script in hand, and tried to poke holes in differing statements that different ministers have made on vaccines. Justin Trudeau, appearing by video from home, reminded him that nothing has been approved to date, and that Canada has the most comprehensive portfolio of vaccines. O’Toole then tried to proffer his theory that the government was relying on the CanSino vaccine candidate, and Trudeau told him that he shouldn’t make stuff up. O’Toole pressed on the CanSino theory, and Trudeau repeated that this was not true. O’Toole switched to French to demand a vaccine plan, to which Trudeau stated that they were working with the provinces and experts. O’Toole then raised the CNN reports on China hiding early COVID data before returning to his CanSino theory, and Trudeau repeated that nobody has an approved vaccine to date. Yves-François Blanchet was up next for the Bloc, and he demanded increased health transfers for provinces, to which Trudeau reminded that they have been working with provinces throughout the pandemic and have transferred billions of dollars to them because of it, but he would be speaking with premiers and not the leaders of other parties. Blanchet raised the Quebec government’s objections to new federal programmes, for which Trudeau gave the well-worn line that there is no jurisdiction for the dignity and security of seniors. Jagmeet Singh then led off for the NDP, and he demanded to know which seniors would get the vaccine first, for which Trudeau said they were working with experts to determine who is prioritised on the rollout, with healthcare workers and the most vulnerable. Singh then raised a Manitoba First Nation dealing with a COVID outbreak, and that the Chief has asked for military assistance, to which Trudeau reminded him that they have been working with Indigenous leadership, and that they would continue to do so — but did not really answer the question.

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Roundup: The greater danger of spending too little

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Chrystia Freeland unveiled her first economic update yesterday, and much of it was predictable, from the size of the deficit (which every single news source focused on immediately, as though it were still 1995), to the lack of a fiscal anchor while we remain in the pandemic, to the promises for how to build back in a more inclusive and greener manner. One of Freeland’s major points was that there is a greater danger in not spending enough than there is in spending too much – particularly at a time of record low interest rates – and we saw this borne out in the last recession, where the Harper government withdrew stimulus too soon, and the Bank of Canada was forced to keep rates lower for longer and we had a consumer debt crisis as a result. There were “down payments” for the work of getting to national childcare, long-term care and the meeting climate targets, but those are also all areas where they need provincial buy-in, so that’s going to get interesting very fast, especially given the number of hostile premiers that are currently in office. There were also new programmes rolled out for tourism and live events, and plans to extend GST/HST to web giants.

Predictably, the opposition parties were unimpressed. Erin O’Toole spent his response speech lying about what has been done to date, set up a completely false revisionist history of the pandemic, and went on TV to moan that the government “overspent” on CERB – apparently not grasping that the point was to keep people at home so as not to spread the virus (ergo, the Conservative plan is apparently to force people back to work in unsafe conditions so that they can facilitate the spread of said virus). The NDP were also predictable in their demands for wealth and “excess profit” taxes, never mind that they are inchoate concepts that largely don’t work out in practice. This means that we get to go through yet another round of election speculation as people wonder if the opposition will gang up to bring the government down over the inevitable implementing legislation.

Meanwhile, Heather Scoffield remarks on the ambition in the fiscal update, and whether or not the government will have the ability to deliver on any of it. Kevin Carmichael bemoans the lack of a fiscal anchor, but does admit that Freeland is right in that there is a danger of spending too little, or withdrawing stimulus too early (like Stephen Harper did). Paul Wells is disquieted by the lack of details on big items in the update, as well as this government’s propensity to farm out tough decisions to people not in government – which is a problem.

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Roundup: Goodbye, Bubble

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Farewell, Atlantic Bubble – we hardly knew you. With growing spread in New Brunswick and Nova Scotia, both PEI and Newfoundland and Labrador decided to pull out of the Bubble, and impose quarantines for any arrivals on their respective islands, effectively bursting it (despite some saying that this is only “temporary.” There can be little doubt that much like every other province, even those within the Bubble started to get cocky, and some of the spread can be traced back to restaurants, which remain open in the region. It nevertheless demands that even with border measures, you can’t let your guard down when it comes to taking measures to stop the spread of the virus.

Further west, Alberta premier Jason Kenney remains MIA as the province posts higher raw numbers than Ontario, but a Cabinet meeting was being held yesterday afternoon that is supposed to result in new measures being announced this morning – but we’ll see if a real lockdown gets proposed, because given the math, they are now far beyond what a two-week “circuit-breaker” lockdown could achieve. Saskatchewan premier Scott Moe is now self-isolating after a close contact, while Manitoba premier Brian Pallister insists he didn’t wait too long to take increased measures, and yet also insists that his province doesn’t have a backlog in contact tracing when facts show otherwise. So there’s that.

Meanwhile, we’re getting more MPs who can’t seem to grasp jurisdictional issues. The Conservatives are blaming the federal government for not doing things that were clearly the responsibility of premiers to do, while the NDP are demanding that Trudeau reach down into provincial jurisdiction and do something when premiers don’t, which isn’t how it works. It’s all becoming very tiresome, and exasperating, because there are things that they can legitimately criticize this government for, rather than flailing about and trying to blame him for things that he has no control over. But the current political reality is that truth and jurisdiction don’t matter in the face of the narrative they’re trying to spin.

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Roundup: Expediting another bill

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If you were to judge by the mainstream political shows in Canada, there wasn’t anything happening here – well, unless you count the budget in Ontario, which got a brief mention, but these are federal politics shows. But hey, it turns out there was something pretty major happening, which was an extended debate on the new pandemic relief bill.

In order to pass it by tomorrow, the parties agreed to skip committee hearings and have a four-hour Committee of the Whole session instead, where Chrystia Freeland got to field questions for the duration, and wouldn’t you know it, Pierre Poilievre was consumed with questions about the state of the deficit and how the government planned to repay it once the pandemic was over. Never mind that the point of this spending is to bridge businesses so that fewer of them fail, which will ensure that when the pandemic ends, we will have a faster and stronger recovery, and that economic growth will help deal with the deficit, but that’s not Poilievre’s schtick.

The Bloc, for their part, haven’t been without their own shenanigans, as they are proposing an amendment to the bill that would ban political parties from using the wage subsidy. (The Conservatives have pledged to repay what they used, for what it’s worth). I doubt it’ll pass, because the Liberals, NDP and Greens have also availed themselves of the subsidy, but the Bloc will make their point – and it likely means additional votes which will probably keep the Commons later than usual tomorrow as a result (as the agreement was to have it passed before end of day). Even though the point of this was for swift passage, neither Chamber is sitting next week because of Remembrance Day, but the Senate’s national finance committee has agreed to meet over the week to do what amounts to pre-study of the bill (even though pre-study is technically before the Commons passes it so that they can pass along amendments before it is agreed to), but that will expedite it somewhat so that it will almost certainly get royal assent before the 19th, and then we’ll see how long it takes to actually implement so businesses can get their rent subsidy in place.

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