Roundup: Exit Morneau

After a week of leaks about clashes, finance Bill Morneau took to a lectern late in the day on Monday to announce that he had tendered his resignation, and would be resigning both as minister and as MP. Well, first he did some back-patting over his record and couched the decision by saying that he never planned to serve more than two election cycles, and since the economic recovery would take years, it was better for someone else to step in who could carry the work through. The bombshell out of this was the face-saving gesture that he had put his name forward to be the next secretary general of the OECD, and that he had the PM’s full support in doing so – which is either really cute that he thinks he actually has a chance, or a bit pathetic in that he offered up an excuse that beggared credulity. The Q&A portion had very few answers, but this kind of pabulum is what Morneau was so good at – lots of words, not a lot of substance. When asked about the difference that he was apparently clashing with Trudeau over, Morneau mouthed that there was “vigorous discussion and debate,” and that he hoped that work on the green economy could continue and that he would try to help with the OECD (which he won’t get). He denied that he was pressured to resign, said that when it came to WE, he has been involved in philanthropy for many years and that in hindsight he wished that he had one things differently and recused himself – and yet said nothing about the donor trip he didn’t disclose. He insisted that he still wanted to contribute, and said that at the OECD, he would deal with things like international taxation and digital transformation, and use the expertise he gained as the finance minister of a G7 country to help, but, well, that’s not going to happen and we all know it.

Liberal Sources™ are saying that there won’t be an interim finance minister, though the Orders in Council say that Mona Fortier is already the Acting Minister since Morneau is out of the picture. The leading contenders for the job appear to be Jean-Yves Duclos, Chrystia Freeland, and François-Philippe Champagne.

Meanwhile, Paul Wells describes the strange circumstances that surrounded Morneau’s departure – particularly the leaks to the media about fights that Morneau lost and was gracious about, with added snark about how the departure went down. Heather Scoffield notes the good work Morneau did before agreeing that it was time for him to go. (Look for my own column on Morneau’s departure later today on Loonie Politics).

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Roundup: Taking a personal day

Of all the possible misplays for Justin Trudeau to make at the height of a controversy around his poor choices, ethical blind spots, and insistence that he’s being open and transparent, the first day of a two-day recall of the House of Commons saw him absent with the only excuse on his daily itinerary being a “personal day,” which sent the opposition into a frenzy. It’s not like Trudeau chose this day for the Commons to be recalled and for there to be a proper Question Period – erm, except he did. And then wasn’t present. Way to read the room.

Andrew Scheer had his own attempts to make hay, insisting that if the Liberal backbenchers don’t oust Trudeau (without a mechanism to do so, it should be noted), that they were signalling that they were okay with his “corruption” – never mind that a conflict of interest is not actually corruption, and he’s not exactly someone who should be throwing stones considering that he was forced to resign his own leadership after it was revealed that he was helping himself to party funds to the tune of almost a million dollars.

Meanwhile, the Conservatives are also pushing back against the bill being debated, objecting to the “complexity” of the wage subsidy changes, despite the fact that for there to be a proper phase-out and to ensure it’s more broadly encompassing than the programme was initially, there needs to be added complexity. Their objections won’t matter for much, considering that the Bloc has agreed to support the bill regardless so there are enough votes to go around, but it is a change from bills being supported unanimously at all stages, and something that resembles a sense of normalcy slowly returning to Parliament, which is a good thing.

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Roundup: A curious case for declaratory legislation

A curious story showed up on the CBC website yesterday, wherein justice minister David Lametti stated that if it looked like pandemic delays were going to cause criminal trials to essentially “age out” of the court system as a result of the Jordan decision – meaning that once they reach a certain point, they are deemed to be stayed because they took too long and have become unconstitutional – that he would introduce legislation to “clarify” how the Supreme Court’s Jordan decision was to be clarified. It’s curious because it seems to be a bit of a made-up issue – the Jordan decision already stated that the 30-month timeline allowed for exceptional circumstances, and we can all agree that a global pandemic is by definition an exceptional circumstance. This isn’t to say that declaratory legislation isn’t a valid exercise, because it can be – but it just seems wholly unnecessary in this case, when there are other ways that the government could be better dealing with the criminal justice system and juries than worrying about the Jordan timelines.

In any event, here is defence lawyer Michael Spratt with some thoughts on the story:

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Roundup: A shock-and-awe number

The Conservatives are crowing about their membership numbers in the lead-up to their leadership vote, where some 269,000 Canadians are now eligible to vote – not that they all will, but it’s a shock-and-awe number that they say are bigger than any previous Conservative (or its predecessor parties’) leadership contest – though not quite as large as the Liberal contest that elected Justin Trudeau. And while on paper it’s great that there are so many people who have joined the party, this is one of those traps that have created so many of our problems in this country.

The original sin in Canadian politics was the Liberals’ decision in 1919 to move away from caucus selecting their new leader after Wilfrid Laurier’s death to a delegated convention. From then on, under the guise of being “more democratic,” they ensured that their leaders could henceforth not be held to account by the MPs of their caucus – nor the party, really, because “leadership reviews” are largely bogus exercises (sorry, Thomas Mulcair!). And what ends up happening is that when you have a big number like 260,000 party members, when the leader who winds up being selected in this manner gets into trouble, he or she tells their caucus “I have the democratic legitimacy of these 269,000 votes – the average riding has 75,000 electors. I have the bigger mandate.” It has been the way in which the centralization of power has been justified, and all of abuses of that power have followed.

The other problem is that these kinds of memberships tend to be transactional for the duration of the leadership contest. A good many of these members won’t stick around and to the work of nominations or policy development, which is another reason why these shock-and-awe numbers wind up being hollow in the long run. We do need more people to take out party memberships in this country, but it has to be meaningful engagement, and a leadership contest is not that. It only serves to perpetuate the problems in our system.

 

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Roundup: An apology on the second attempt

It was prime minister Justin Trudeau’s first presser since the WE Imbroglio blew up over the revelations of his family being paid speakers for the charity, and there was a definite note of contrition this time. After hinting that the government would extend the wage subsidy until December with details coming later in the week, a mention of his call earlier in the morning with Donald Trump that touched on tariffs, Black Lives Matter, and China, and a promise on further updates on the Safe Restart Plan with the provinces to come later in the week, Trudeau turned to his mea culpa on the Imbroglio. “I made a mistake in not recusing myself from discussions, and I’m sincerely sorry about not having done that,” Trudeau said. He praised how the government got creative with designing programmes during the pandemic, and how they had worked with a range of partners to make it happen, but he was sorry that he didn’t remove himself from the discussions with WE, and that he was frustrated that youth would have to wait longer to do their party to serve because of the mistakes he made. (I would argue that WE’s plans raised a lot of red flags too, for what it’s worth). When asked if he would appear before committee to discuss what happened, Trudeau was non-committal, but in a hung parliament, he doesn’t have the votes to shield himself this time.

During the Q&A, he said that he pointed out to Trump about the disruptions to the aluminium supply chains and hoped that they wouldn’t see tariffs that would only slow down the economic recovery; he also mentioned that there were ongoing discussions around the border, but the rest of the time was spent reiterating, over and over, that he didn’t have the details on what his family members had been paid by WE and that he should have, and that he did seem to have some reflection that he needed to be careful on this file because of his past activity with the charity but that he didn’t go far enough and should have removed himself entirely from the conversation. Later in the day, Bill Morneau sent out his own apology for his own failure to recuse himself given his daughters’ activities with WE.

For what it’s worth, there seems to be some kind of learning curve because it only took the second try for Trudeau to give an apology rather than stick to talking points aimed at deflection until the conclusion of the Ethics Commissioner’s report, at which point there would be either an apology or admission of some kind of wrongdoing and a promise to do better next time. This time, we managed to skip weeks of such failed damage control, so that’s something, I guess.

Meanwhile, Susan Delacourt finds herself wanting when it comes to Trudeau’s explanation for how the whole thing went down, and hopes that he’s saving it for his discussion with the Ethics Commissioner. Matt Gurney gives credit where credit is due for Trudeau learning enough to make a rapid admission and apology rather than dragging things out for months. Paul Wells is unimpressed with the apology and wants a full accounting of what happened, particularly as it is increasingly evident that things were wrong with the WE contract outside of the apparent conflict of interest, and how those decisions were made need to be aired.

Good reads:

  • Ruh-roh! It looks like the federal government wasn’t enforcing the rules around temporary foreign workers, which allowed outbreaks to occur on farms.
  • Here is some number-crunching on the PM’s daily pressers in the first phase of the pandemic and lockdown, including on his choice of verbs and phrases.
  • The RCMP have charged a Quebec man with calling for Justin Trudeau’s death and the eradication of Muslims.
  • Former Liberal MPs who lost their seats in the last election are waiting to hear about nomination contests so they can be ready to run again.
  • Leona Alleslev has resigned as deputy leader of the Conservatives to more vocally back Peter MacKay, who says that no promises were made for her support.
  • Maclean’s has a profile of Conservative leadership candidate Leslyn Lewis.
  • Jason Kenney is accusing the federal government of preventing Apple from fixing the province’s contact tracing app, which requires iPhones to be unlocked to work.
  • Kady O’Malley’s Process Nerd column looks at the options for calling prime minister Trudeau to committee to testify on the WE Imbroglio.
  • Heather Scoffield is frustrated by the vague answers being given on the extension and amendments to the wage subsidy programme.
  • Colby Cosh recounts how Alberta has abolished its last vestiges of prohibition, by allowing liquor sales in Mormon-centric towns that were still “dry.”

Odds and ends:

For the CBA’s National Magazine, I wrote about Friday’s Supreme Court decision on genetic privacy, and what the broader implications of the ruling are.

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Roundup: Trudeau steps on yet another rake

The prime minister’s problems with the now-cancelled WE Charity contract blew up yesterday, as it was revealed that Justin Trudeau’s mother and brother have been paid by WE to speak at events, that his wife had once been paid by them in 2012, all of which contradicts their previous statements that they don’t pay speakers. (Trudeau maintains that he has never been paid). Suddenly this makes the fact that Trudeau didn’t recuse himself from any decisions around that contract at the Cabinet table look very bad, because his family does benefit from the organization, and they’re not just donating their time and profile as had been previously stated. And for WE’s part, they have done themselves no favours by saying that it was their social enterprise arm, ME to WE, which paid them, except for the times when there was a billing error and WE Charity paid them instead. This as more parliamentary committees are (finally) doing their jobs in calling ministers and bureaucrats before them to explain their decisions. And to cap it off, Yves-François Blanchet is now demanding that Trudeau step aside and let Chrystia Freeland run things until everything is cleared up. So that’s something.

It’s hard not to see that the Liberals’ capacity for self-harm knows no bounds, between these self-inflicted wounds and their inability to communicate their way out of a wet paper bag/manage an issue, means that they inevitably make it worse for themselves – which they did yet again today by essentially saying that the only thing that matters is that Trudeau was really concerned about the youth. Seriously? It is not only obvious that Trudeau seems to lack any sense of self-awareness, in part because he has grown up as a kind of celebrity, but it’s also combined by the fact that there clearly isn’t anyone in his office who will stand up to him and say that no, this maybe isn’t a good idea, and no, it’s going to come across well no matter how well-meaning it all is. I mean, the first couple of years in office, Trudeau dismantled any way for the party mechanism to push back against the leader and his office, and that was a fair bit more autonomous than what goes on in PMO. This being said, I will add that our ethics and conflict of interest regime in this country is ludicrous, and subject to the whims of successive Ethics Commissioners, who either read their mandates so narrowly that nothing was ever her problem, except when she took it upon herself to decide who is and is not a family friend of the Aga Khan (that being Mary Dawson), or her replacement, who has invented new statutory interpretation out of whole cloth on numerous occasions to baffling results. None of this excuses Trudeau’s constantly stepping on rakes – he should absolutely know better, but seems incapable of figuring that out.

Meanwhile, Susan Delacourt remarks on how repetitive Trudeau’s ethical lapses are getting, and how every time he promises that he’s learned his lesson – until he does makes yet another blunder. Matt Gurney is baffled at PMO’s tone-deafness on this whole affair. Chris Selley, while boggled at Trudeau’s constant blunders, is even more incredulous at how Andrew Scheer keeps being so bad at responding while creating his own distractions.

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Roundup: Pearl-clutching about the deficit

For the first time this week, prime minister Justin Trudeau held a presser, wherein he praised the agreement with the First Nations on moving ahead with transferring control over child welfare, mentioned the virtual Cabinet retreat that was held over the previous two days, and mentioned that new pandemic modelling was on the way, noting that there are still hot-spots around the country. And then it was the takeaway message of the day – a mere couple of hours away from the fiscal “snapshot” being delivered, Trudeau made the case that they chose to support Canadians rather than leaving them to fend for themselves, and that the cost of doing nothing would have been far greater on both healthcare and the economy. He reiterated that this was not the time for austerity, but that they have been building a “bridges” to a stronger, more resilient Canada, and drove home the point that the federal government took on debt so that ordinary Canadians wouldn’t have to. He pointed to the low debt-to-GDP ratio, and that historically low interest rates mean manageable borrowing costs. And with one final word on Bob Rae being appointed to the UN, he took questions, one of the first of which determined that he didn’t recuse himself when the WE Charity sole-source contract came before Cabinet, which is something the Ethics Commissioner is looking at. He spoke about the necessity of childcare, that Bill Blair has been engaged on the subject or the RCMP and police brutality as part of the broader Cabinet workplan on combatting systemic racism, that they were following the recommendations of the Auditor General on CBSA, and then reiterated again that with historically low debt-servicing costs, it was easier for the federal government to take it on in order to prevent Canadian households from having to do so. When asked about the relationship with Donald Trump, Trudeau once again reiterated that they have concerns about the possibility of new tariffs, and that it will only hurt American industry because they need Canadian aluminium as they can’t produce enough of their own.

And then the fiscal “snapshot.” While Bill Morneau’s pabulum-heavy speech was pretty much all self-congratulation and a recap of measures they’ve taken, the accompanying documents did show a $343 billion deficit projected for this year (though it has been speculated that this was an outer bound limit designed for them to come under), and that the total debt by the end of this fiscal year could be $1.2 trillion – numbers everyone clutched their pearls about while ignoring that the debt-servicing costs continue to decrease even though the size of the debt has increased. There was mention that the wage subsidy is going to be extended, but with modifications on the way “sooner than later,” but there wasn’t much indication about the broader recovery plan thus far.

Of course, the obsessions among all of the media coverage was the deficit and debt figures, because our reporting narratives remain firmly affixed in the mid-1990s, and no one can break free of them – not to mention the hyperbolic mentions about how this was the biggest deficit since the Second World War (never mind that this is a virtually unprecedented global pandemic we’re facing with a demand-side shock that people can’t seem to wrap their heads around). And because the framing devices remain in the 1990s, headlines obsessed that there wasn’t a plan to curb spending – because of course we know how the epidemiology of this pandemic is going to play out until we get a vaccine at some point in the future. But perspective? You need to turn to the economists on Twitter for that.

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Roundup: Hot and Bothered for Basic Income

The idea of a Basic Income has been a hobby-horse of parliamentarians for a while, and yesterday the Parliamentary Budget Officer came out with a report that purported to cost one out in a couple of different scenarios. But it’s a bit of a horror show of a report because what it’s actually describing is a cash transfer and not an actual Basic Income scheme, and more than that, some of the things it purports to strip in order to pay for its high price tag are a number of disability supports. Remember that while a Basic Income may sound like a left-wing idea, there is plenty of right-wing support for it if it dismantles the welfare state, where replacing tailored disability programmes with a one-size-fits-all cash transfer is a feature and not a bug. (More from economist Mike Moffatt here).

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Suffice to say, this report got some senators all hot and bothered, including Senator Yuen Pau Woo, who put out a press release on the topic, calling for a pilot project, so here’s Lindsay Tedds, who worked on BC’s Basic Income project for the last two years, and who knows a thing or two about Basic Income.

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Roundup: Trudeau slows to a summer pace

Prime minister Justin Trudeau was back at Rideau Cottage yesterday morning, for what he promised would be the last “daily” briefing, though they haven’t been daily for a few weeks now. And there really wasn’t anything new to announce – yet another reminder that the Canadian Emergency Business Account and commercial rent subsidies were good things, that there were still hotspots of pandemic around the country, but that we are making progress – but are not out of the woods yet – and oh, yeah, the New NAFTA comes into force on Wednesday. During the Q&A, Trudeau stated that American chest-thumping over tariffs only hurts them because they need Canadian aluminium as they can’t produce enough of their own. When asked about the Human Rights Watch report on Canadian foreign fighters being held prisoner in Syria, Trudeau insisted that they are preoccupied with the safety of diplomatic personnel in the region, and we don’t have any in Syria, which makes the complicated situation even more complex because most of these prisoners are facing charges. (Not everyone buys this argument). And when asked yet again about We Charities being given that contract, Trudeau again insisted that the advice of the public service was that only they could deliver on the scale that was required, and that some 25,000 students hand applied over the past few days, to prove the point.

A short while later, Dr. Theresa Tam gave her last regular update as well, as those pressers also take on a less daily pace, as well as unveiled new federal modelling numbers, which show that the pandemic is largely under control, but with the warning that people need to keep up good habits around distancing and hygiene, lest flare-ups start happening.

Meanwhile, in Alberta, Jason Kenney and his finance minister unveiled their economic recovery plan, and it was complete with mistruths, and tired magical thinking that tax cuts will automatically create jobs (when these rapid cuts will only benefit existing players rather than attract future ones), or that hectoring tech firms for not upping sticks to relocate to the “cheap rents” of Calgary and lower taxes as being “irresponsible.” So yeah, good luck with that. Meanwhile, here’s Andrew Leach with a bit of a fact check.

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Roundup: No to hostage diplomacy, yes to dubious administration

Prime minister Justin Trudeau held his no-longer-daily presser at Rideau Cottage today, and finally unveiled the Canada Service Grant programme for student and recent graduate volunteers, where every hundred hours of volunteering earns them $1000. On top of that, he announced some $40 million for Mitacs internships, and 100,000 new summer job placements as the programme has apparently become fully subscribed, along with another 20,000 post-secondary job placements. While the Q&A touched on the problem with the rent subsidies where businesses re-opening can earn too much to qualify, and long-term care – where he bluntly stated that provinces failed to support seniors but that the federal government was happy to help where they could – it was the subject of China’s hostage diplomacy that dominated, as reporter after reporter kept asking him over, and over, and over again about that letter signed by prominent Canadians to essentially capitulate to the Chinese and end the extradition of Huawei CFO Meng Wanzhou in exchange for the release of the Two Michaels. In language that was almost uncharacteristically blunt for Trudeau, he said that he deeply disagreed with the letter-writers, citing that giving in now would send the message to everyone that they could simply kidnap Canadians in order to get diplomatic concessions going forward, and it would endanger the safety of those Canadians going forward.

But back to that Canada Service Grant announcement, because what wasn’t announced during the presser and only came out later was the fact that they have turned over the administration of this grant to WE Charities, which is…problematic, not only because of the personal connection that Trudeau and his wife has with the group. We don’t know what kind of cut WE is getting for doing the work, and the fact that one of their main sources of income – their big stadium events – is off the table for the sake of the pandemic, this almost has the feel of Trudeau doing them a favour because they’ve lost that revenue, which is poor optics. Trust this government to step on a rake and evaporate good will that they’ve accumulated by making this kind of dumb move. It happens over and over again (and yet nobody seems to lose their job over it).

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