Tuesday, and all of the leaders were back once again. Andrew Scheer was up first, and he claimed there were “sky high” deficits and taxes and no infrastructure spending to show for it — assertions that were all false. The deficits are actually tiny in comparison to the size of the federal budget, and the tax burden on Canadians is hovering near its lowest point in the post-war period, not to mention the fact that many of the promised infrastructure projects were held up by provinces trying to play politics in advance of the election, and that the hoped-for productivity gains were blunted when provinces didn’t keep up their planned infrastructure spending, and instead rolled it back as the federal government spent more. Justin Trudeau stood up and used a script to list projects that they were approving. Scheer then raised their Supply Day motion about calling in the Auditor General about the infrastructure programme. Trudeau reminded him that the Conservative record was spending on billboards, door knobs and gazebos, while their government was getting things done. Scheer asked again in French, got much the same answer, and Scheer raised the coronavirus and wanted support for Taiwan to get observer status at the WHO. Trudeau avoided the direct question and gave assurances about the coronavirus and collaboration with China. Scheer tried again, and Trudeau reminded them that they shouldn’t play politics with public health crises. Yves-François Blanchet was up for the Bloc, and he once again raised the possibility of aluminium impacting the Quebec market under the New NAFTA, to which Trudeau reminded him there were guarantees in the new agreement that do not exist currently. Blanchet tried again, and Trudeau quoted the aluminium producer association as saying it was a good deal. Jagmeet Singh was up next for the NDP, and he railed about the Volkswagen settlement agreement, calling it a “sweetheart deal.” Trudeau, without script, stated that they are paying a penalty and it was great for the fight against climate change. Singh then railed about a supposed tripling of outsourcing of public service functions, and Trudeau spoke to the balance around procurement.
Tag Archives: China
Roundup: “True Blue” O’Toole
Erin O’Toole made his official entry into the leadership race yesterday by way of a video that takes swipes at “cancel culture” and celebrity activists – the kinds of keyboard warrior buzzwords that are pretty much the domains of O’Toole’s new campaign staffer, Jeff Ballingall, of those “Canada Proud” etc. sites.
I'd love to hear O'Toole articulate what his role is in fighting cancel culture. Stopping cities from taking down statutes of John A MacDonald? Defending people accused of sexual harassment? Sticking up for people with racist tweets? What are we talking about, here?
— Justin Ling (Has Left) (@Justin_Ling) January 27, 2020
It occurs to me that Erin O'Toole, the first CPC leadership candidate to go after "cancel culture," has working for him Jeff Balingall of Canada Proud, the only organization I'm aware of to have called for Omar Khadr's appearance at Dalhousie to be cancelled.
— Chris Selley (@cselley) January 28, 2020
At a rally in Calgary later in the evening, O’Toole said that Peter MacKay would turn the party into Liberal-lite, which I have yet to see any actual evidence of (MacKay is not really a Red Tory, guys – he’s not. Stop pretending he is). It also struck me that he kept reiterating the kinds of comforting lies that the party likes to tell itself about issues like the plight of the energy sector, where the woes are blamed on the Trudeau government and not changing market forces (seriously, the shale revolution in the US is a pretty big driver of these changes). He did say that he would march in a Pride parade, and justified it with his military background, which is a bit funny given that he hasn’t marched in one to date, which makes his sudden conviction around it mighty suspect. His opposition to carbon pricing continues to dig the party into its current environmental rut, and his talk of deficits remains completely economically illiterate – all doubling down on the party’s current positions, because that’s apparently what will make him a “true blue” Conservative. I’m not sure how this grows the party’s base, but what do I know?
This is not a Thing. There is no constitutional magic wand. https://t.co/dnekcDOXyg
— Dale Smith (@journo_dale) January 28, 2020
QP: A conciliatory note, and then a lie
And we’re back. While Justin Trudeau and Andrew Scheer were present, and most, but not all other leaders were as well. After a moment of silence for the victims of PS752, Scheer led off, mini-lectern on desk as usual, and he asked for progress on bringing PS752 victims home and holding perpetrators to account. Trudeau thanked him for the question, and picked up a script to note that they were supporting victims, and what he told the Iranian President directly. Scheer thanked him, and then moved onto cancelled energy projects and lied about the cost of living versus wages and demanded that the Teck Frontier Mine. Trudeau reminded him that they were growing the economy while protecting the environment. Scheer then stated that the government was destroying the energy sector — again, falsely — and lamented deficit spending, to which Trudeau reminded him that they made the choice to invest, and it was paying off. Scheer then switched to gang violence and claimed the government was taking the “lazy approach” of targeting lawful gun owners, to which Trudeau took up a script to list the measures they were taking. Scheer then moved onto the survey which stated that Canada dropped three spots on the transparency ranking (which is a self-reported metric), to which Trudeau listed ways in which Canada was strong on the international stage. Yves-François Blanchet was up next, and raised a potential deportation case and demanded that the minister intervene. Trudeau, with script, to read a platitude about how they examine each case based on merit, and said that they were aware of the case but could not speak to it. Christine Normandin raised the question again, and Trudeau repeated his response. Jagmeet Singh was up next, and demanded did that the government immediately pay the compensation for First Nations children demanded by the Canadian Human Rights Tribunal. Trudeau reminded him that they are working on reconciliation, noted the new approvals under Jordan’s Principle, and that they were still working on the issue. Singh then demanded immediate action on pharmacare and claimed he has a bill to immediately implement it (which a private members’ bill can’t do), and Trudeau took a script to list actions they have taken to reduce drug prices and noted they were negotiating with the provinces.
Second question and Scheer falsely says that wages have stagnated and not kept up with the cost of living. That is not true. #QP
— Dale Smith (@journo_dale) January 27, 2020
Roundup: The reality of negotiation
As was ever thus, the Twitter Machine erupted with fury and disingenuous outrage when health minister Patty Hajdu told reporters that she couldn’t guarantee that a national pharmacare programme would be in place at the end of the current parliament (for which we don’t know when that will be, as a hung parliament rarely lasts beyond two years.
“Some of that will be predicted by, predicated by, the responses of the provinces and territories,” said Hajdu, because *mind blown* healthcare is largely the domain of the provinces and any pharmacare system would have to be negotiated with them – in particular, a national formulary, which is going to be extremely complicated to ensure that existing plans don’t get left behind or that the new national plan isn’t worse off than any existing ones that it would replace.
What is especially irritating are all of the voices crying out that this just means the Liberals were lying on the campaign trail, which is false and ridiculous – Trudeau spent the campaign not overpromising on this file, but rather kept saying that it was contingent on negotiation with provinces, which is why their fiscal plan only called for a “down payment” on such a programme rather than the whole thing, but nevertheless, the promise was to go by the principles of the Hoskins Report, which they have bene doing thus far. The NDP, by contrast, insisted that this could be done by 2020, and whenever anyone brought up the fact that the provinces may object, the line was largely that why would anyone say no to federal dollars? It’s absurd, of course, because provinces are rightfully afraid that they would be stuck with an expensive programme to run if the federal government suddenly cut out transfers or funds to it because they suddenly had other priorities (which has happened in the past).
And to that end, we have a bunch of premiers who are balking at it, Quebec and Alberta want to be able to opt-out with compensation, and Ontario is instead insisting that the federal government pay for drugs to treat rare diseases – the most expensive kind, and the ones where costs are rapidly escalating. So of course they want the federal government to pay for them rather than to share the burden. It’s predictable, and for anyone to be shocked and appalled that the Liberals have to deal with this reality is really, really tiresome.
Roundup: Cutting through Pallister’s bluster
With the Cabinet meeting in Winnipeg, Justin Trudeau and Chrystia Freeland took an opportunity to meet with premier Brian Pallister yesterday, and boy howdy, was his tone in interviews afterward a hugely problematic mess. Pallister kept insisting that the province wasn’t getting the “respect” they deserved for their environmental plans, while ignoring the legitimate concerns that the federal government has – to the point where he was deliberately obscuring the actual issues at play.
One of the main issues in contention is the federal carbon price, which Pallister has famously waffled on (to the point where Paul Wells has referred to him as “Canada’s tallest weather vane”) – first he was going to implement one, then got huffy and stopped the plans because he didn’t want to increase it every year as is the plan, and because he saw momentum with other conservative premiers in challenging it in the courts. With those challenges coming down squarely in the federal government’s favour, Pallister is again floating the idea of implementing it, but doesn’t want it to increase, saying that a low price will let them meet their Paris targets. The problem, of course, is that there needs to be a common carbon price across the country so that provinces don’t undercut one another, which Pallister (and others) continue to ignore, as though the fact is a triviality when it’s the crux of the whole issue. All the while, Pallister is swearing up and down that he’s not asking for a special deal, when he is in fact demanding just that. I’m not sure how else you would describe being exempted from increasing the carbon price in line with the rest of the country as anything other than a special deal.
Add to that, Pallister is demanding a cookie for past emissions reductions when there is a hell of a long way for the country to go to meet our current targets. Ontario is trying this tactic as well, when the Ford government has completely derailed the province’s planned reductions, and insisting that you’ve already done your bit just puts even more pressure on Alberta and Saskatchewan, which I’m not sure Kenney and Moe would appreciate terribly. Pallister was also on TV grousing that he’s not getting credit for exporting cleaner electricity to Saskatchewan and the United States, which is funny because the reward for that is money, which presumably they are earning for doing so. Suffice to say, all of Pallister’s excuses are amounting to a pile of bullshit, and it would be great if our media brethren could do better at calling him out on it.
Roundup: Lethal overwatch?
There’s been some chatter about a story in the Guardian that purports to show BC RCMP communications that would have allowed for “snipers” and “sterilizing” of Indigenous protests in the province over LNG pipelines – which the minister of Indigenous services wants some answers to, and which the RCMP denies is actually legitimate, citing that the terminology used isn’t consistent with their own, or that some of it is being misinterpreted (in particular “lethal overwatch). To that end, here’s Justin Ling with a bit of context and nuance to consider before you get agitated at what’s being reported, as it may not necessarily be correct.
I, in the past, reported how military intelligence was mobilized to respond to an Idle No More protest on very flimsy ground: https://t.co/tGWId1THKe
And how the RCMP/CSIS were activated to watch these protests as though there was a nexus to terrorism: https://t.co/ia4VJBe0bY— Justin Ling (Has Left) (@Justin_Ling) December 21, 2019
The CBC reported that the journalists from The Guardian didn't supply the documents to the RCMP for verification. Which isn't necessarily a problem, but it does mean that we've got zero independent verification of them (yet?)
— Justin Ling (Has Left) (@Justin_Ling) December 21, 2019
One RCMP official told me "lethal overwatch" isn't quite so literal — it generally means you have unarmed officers on-site, with armed officers waiting on a second site, ready to respond. So, not snipers. (Or, at least, not *necessarily* snipers.)
— Justin Ling (Has Left) (@Justin_Ling) December 21, 2019
This is mostly just to say that I hope The Guardian clarifies the origin of some of these documents (or, better yet, posts them!) Until then, I think this poses challenges to report on. Which isn't to say that the underlying story is untrue. Just that there are some issues.
— Justin Ling (Has Left) (@Justin_Ling) December 21, 2019
Roundup: Building the Teck narrative
While some of Jason Kenney’s usual mouthpieces and apologists start agitating for the Teck Frontier oilsands mine, it seems we need yet more reality checks about the project – particularly the economics. Because we have seen on more than one occasion where a project that wasn’t economically viable still achieves mythology status because certain people who think the idea of it is great will lie about its fate in order to suit their narratives *cough*Energy East*cough*. Anyway, here’s Andrew Leach with more.
Frontier is a big project: a $20 billion potential investment. It's also an expensive project. That capital investment is $76k per barrel per day of capacity: an option that gets you ~ 40 years of production 4 which you still have to pay op + maint costs, royalties, and taxes.
— Andrew Leach (@andrew_leach) December 18, 2019
Taking those estimates, and assuming a 10% return on investment, which would be a fairly standard hurdle rate for taking this kind of commodity price risk over this kind of time horizon, you can calculate what oil price you'd need to see to make the project work.
— Andrew Leach (@andrew_leach) December 18, 2019
If you were to cut initial capital costs or operating costs by 25%, you could get your break-even down closer to $65 WTI. Those are real prices, so you'd need to see WTI at $65 plus inflation on average over the life of the project just to meet a minimum hurdle rate of return.
— Andrew Leach (@andrew_leach) December 18, 2019
So, what about the other part. Is this the project that is most likely to be adopted? No. There are plenty of other potential investments with lower costs than Frontier. Cenovus has several great SAGD assets, Imperial has Aspen, Carmon Creek is available in the Peace, etc.
— Andrew Leach (@andrew_leach) December 18, 2019
Let's also remember why CERI doesn't even evaluate oil sands mines anymore. They are too expensive. In 2014, with oil at its post-2008 peak, Total shelved its investment in Joslyn. That project has an approval in hand, is closer to McMurray, etc.https://t.co/Rx9miZ3EUv
— Andrew Leach (@andrew_leach) December 18, 2019
A fair point to make is that many world oil price forecasts show prices that would make Frontier work, in a vacuum. For example, here are EIA's real dollar WTI price forecasts from their Annual Energy Outlook. https://t.co/T7BPYwOcjK The reference case average is ~$100/bbl. pic.twitter.com/1079U2l0mY
— Andrew Leach (@andrew_leach) December 18, 2019
If you're going to frame Frontier as the last, best hope for AB, and frame Trudeau as the lone barrier, one has to wonder what you've done with all the other, cheaper projects out there and why you expect this project to be more likely to be built than earlier-approved mines.
— Andrew Leach (@andrew_leach) December 18, 2019
Roundup: A promise weaselled out on
A very important bill has been introduced in the Senate, that has been attempted on more than a few occasions now, and it’s a sign of a promise that the Liberals weaselled out on in the past. The bill? To restore Parliament’s ability to control government borrowing by way of votes – you know, like Parliament is supposed to do as part of their job of holding government to account by means of controlling the public purse. You see, back in the Harper era, they hid the change in one of their massive omnibus budget bills that stripped Parliament of the ability to vote on new borrowing, and instead turned it over to Cabinet. Senators caught it too late, and the bill passed, and whoops, no more ability for Parliament to hold government to account for it any longer. Senator Wilfred Moore introduced a bill to revert this practice on a couple of occasions, and Senator Joseph Day carried on with it in the previous Parliament, and has just reintroduced it in this one.
https://twitter.com/SenDayNB/status/1204502292076154880
Thanks to @SenDayNB for holding our fed govts to account when borrowing on behalf of Canadians. Parliament's powers need to be restored and respected as promised. #BillS201 @SenateCA @OurCommons
— Hon. Wilfred Moore (@SenWillyMoore) December 10, 2019
The Liberals were all in favour of this back when they were in opposition, and made a big show about promising to restore this to Parliament – and then they weaselled out on it. What they did instead was introduced a debt ceiling of $1.168 trillion, after which Parliament would need to vote to extend it, and said that Cabinet only needed to report to Parliament every three years about the money it has borrowed, starting in 2020. Let me reiterate – they weaselled out of this promise, and at least there are senators who are alive to why this is important for Parliament.
These are principles that go back to Runnymede, and the Magna Carta in 1215, and made more explicit in 1688 when the king wasn’t able to borrow money without Parliament’s consent. The Conservatives broke this important principle of Parliament for their convenience. That the Liberals have refused to act on their promise to restore it is a black mark against them.
QP: Demanding a special committee on China
With Chrystia Freeland in Mexico City for the New NAFTA signing ceremony, and Justin Trudeau in town but elsewhere, Andrew Scheer was present today and led off by mentioning the first anniversary of the two Canadians being detained in China, and asked for an update as to the efforts being made to secure their release. Karina Gould assured him that they are the government’s absolute priority, and expressed thanks to the allies who have spoken up as well. Scheer then lamented that the government waited six months to file a complaint with the WTO over China over the canola issue, and Marie-Claude Bibeau listed efforts they have made. Scheer was not mollified, and railed that the government was still investing in the Asian Infrastructure Bank, to which Bill Morneau assured him that the Bank benefitted Canadians as much as the countries they invest in. Alain Rayes took over in French, who worried that China was too interested in the Arctic, to which Gould Assured him that they always defend Canadian sovereignty. Rayes returned to the question of the two detained Canadians, and Gould repeated her question in French. Yves-François Blanchet, after being chastised for pointing out the prime minister’s absence, worried about the New NAFTA and that aluminium was not protected under it, to which Gould assured him they were proud of the agreement, and the new NAFTA had strict regulations around the industry. Blanchet railed about workers in Quebec, somewhat rhetorically, to which Gould reiterated that they were defending market access for Canadians. Jagmeet Singh was up next, to repeat his latest demand to target the tax cut different to fund a dental care programme, to which Patty Hajdu said that the dental care idea was worth exploring, and she wanted to work with all members on it. Singh accused her of just saying nice words, and Hajdu reminded him that such a programme would be delivered by the provinces which was why you couldn’t just say you would do it.
QP: New measures not mentioned in the Speech
The first Monday of the new Parliament, and the prime minister was present but Andrew Scheer was not. That left Leona Alleslev to lead off in French, and she lamented the reported job losses from last month, and demanded a new economic statement with new measures and a balanced budget. Justin Trudeau responded that the first thing they did in 2015 was cut taxes and they were doing so again, and they were supporting Canadians and the economy. Alleslev read the same question in English, and got the same response. Alleslev read more doom, saying that the country was on the verge of recession (reminder: Not according to the Bank of Canada), and Trudeau reminded her of the plan to invest in Canadians, which is what they would continue to do. Erin O’Toole was up next, demanding retaliation against China for the two detained Canadians, being the one-year anniversary of their captivity. Trudeau assured the House that they were continuing to engage the Chinese, and that he had spoken to President Xi directly. O’Toole then raised the protests in Hong Kong, and Trudeau spoke about their support for the one-country two-systems principles and reiterated their calls for de-escalation. Yves-François Blanchet asked about healthcare, and Trudeau responded in general platitudes about the system, and they went for a second round of the same. Jagmeet Singh was up next, and in his new style of alternate French and English sentences, demanded that the upcoming tax cut be more targeted in order to use the savings to pay for national dental care, and Trudeau reminded him of how many people the tax cut would help. Singh demanded increased health transfers, to which Trudeau reminded him that they had worked with the provinces to target specific needs in the last parliament and they would continue to do so in this one.