Roundup: Closing three loopholes

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

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

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QP: The non-existent plan for a non-existent tax

Despite it being a Thursday, the only leader in the Commons was Elizabeth May — because reasons. Candice Bergen led off, demanding an admission that the government ignored American warnings about the Norsat sale. Navdeep Bains assured her that they followed the process and took the advice of our security agencies, who did consult. Bergen wasn’t buying it, but Bains reiterated his point about the process before touting improved economic progress thanks to their being open to trade. Bergen then accused the government of proposing an internet tax, which was entirely disingenuous because it wasn’t the government who floated the idea — it was a committee of backbenchers. Mélanie Joly assured her they would not levy such a tax. Alain Rayes asked the same again in French, got the same answer, and then reiterated the Norsat question in French. Bains repeated his previous points in French, reading from a prepared response. Matthew Dubé led for the NDP, wondering when reforms to the Anti-terrorism Act would finally be tabled. Ralph Goodale assured him that new legislation was on the way. Dubé switched to English to ask again, adding in a clause about lawful access. Goodale accused him of trying to spook people with innuendo, and that the legislation would keep Canadians safe while protecting their privacy rights. Brian Masse raised the Norsat sale, and Bains repeated his same answer. Alexandre Boulerice then raised a question of an EI case, and Jean-Yves Duclos asked him to forward him the details so that he could look into it.

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QP: Performing Norsat outrage

On a very pleasant day in the nation’s capital, things were busy on the Hill between caucus meetings, the marking of the 100th anniversary of the dedication of the new Centre Block (after the original one was destroyed by fire), and after QP, the raising of the Pride flag on Parliament Hill. But first, there was QP. Andrew Scheer led off worrying about the deficit and wondered what the PM was going to do about it. Justin Trudeau was ready, and hit back with the list of ineffective boutique tax credits from the previous government and accused them of having neglected the middle class while his government has created jobs and prompted growth. Scheer moved on, and demanded a public sex offender registry, and Trudeau noted that the system already works. Scheer tried again in English, concern trolling about concerns that the government didn’t have funds to make it public. Trudeau reiterated the current system, and that it was put into place by both the Trudeau and Martin governments while the Harper government’s promise for a public registry was left without framework or funding. Scheer then switched back to French, and worried about the Norsat sale and allied objections. Trudeau insisted that allies were consulted and they listened to the advice of national security agencies. Scheer tried again in English, and Trudeau reiterated his points. Thomas Mulcair was up next, demanding the government support their suggestion on reforming appointments, and Trudeau remarked that they already had a new merit-based process. Mulcair then turned to the Der Spiegel article, and insistence that Trudeau was lying about it, and Trudeau countered with a statement from the German government that the story was wrong. Mulcair then demanded that the journalistic sources protection bill be passed before the end of the term, but Trudeau simply noted their support — which is all he could do because it’s not a government bill and they can’t fast track it. For his final question, Mulcair was concerned about whether Harjit Sajjan misled the Ethics Commissioner on his role with Afghan detainees, and Trudeau reassured him that they take their responsibilities seriously.

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QP: Concern about summer vacations

The day was not as hot as yesterday, but tempers were indeed starting to fray in the House of Commons with the threat of procedural shenanigans hanging in the air. Andrew Scheer led off, saying that the PM was eager to get away for summer vacation but lo, there were all kinds of new taxes. Trudeau noted that his summer vacation plans included touring the various federal parks around the country, which were all free, and oh, he lowered taxes on the middle class. Scheer then switched to French to demand a publicly accessible sex offender registry, to which Trudeau noted the existing system worked just fine. Scheer tried again in English, and got the same answer. Scheer turned to the Norsat sale in French, and Trudeau assured him that they listened to their national security agencies and allies. They went another round of the same in English, before Thomas Mulcair got up to ask the same question in English. Trudeau reiterated his response, and Mulcair insisted the answer was “demonstrably false.” Mulcair hammered away in French, but Trudeau stuck to his points about due diligence. Mulcair then demanded the government adopt the NDP’s proposed nomination process for officers of parliament, but Trudeau insisted that they already adopted a new process that got more meritorious diverse appointments. Mulcair tried again in French, but got the same response.

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Roundup: The looming retirement of the Chief Justice

Chief Justice Beverley McLachlin announced yesterday that she would be retiring on December 15th, a few months in advance of her mandatory retirement date, in order to give the government enough time to find a suitable replacement. Why that date is significant is because it will be at the end of the Court’s fall sitting, letting her use the next six months that she is able to clear off the files from her desk and work on any outstanding judgments rather than depart mid-sitting and the organizational chaos that would follow.

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The next steps are now an important consideration. The government will not only have to name a new Chief Justice, but a new judge from Western Canada (and likely BC given that’s where McLachlin was appointed from). And in order to keep gender balance on the court it will likely have to be a woman, and in accordance with this government’s push for diversity, it will likely be a person of colour, if not someone Indigenous (and let us not forget that said person must also be fluently bilingual, which is another self-imposed criteria that this government has made for itself). This may be easier to find in BC than it was in Atlantic Canada, mind you. And for Chief Justice? My money is on Justice Richard Wagner, whom I know many close the court have already tapped as being the successor if they had their druthers.

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Of course, we’ll see if this government can get an appointment process back up and running within the six months. Experience has shown us that they seem to have difficulty with that, especially as there are still some sixty or so federally appointed judicial vacancies still remaining around the country, and a few of the Judicial Advisory Committees charged with finding candidates for said vacancies still not fully appointed either, which is a problem. Of course, they may be able to largely reconstitute the committee that oversaw the nomination of Justice Rowe, with Kim Campbell again in charge of the process, but I guess we’ll see how long that takes.

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For more reaction, here’s Emmett Macfarlane on As It Happens and in the Ottawa Citizen, and Carissima Mathen on Power Play.

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QP: Carbon taxes and foreign takeovers

On a sweltering day in Ottawa, things carried on as usual in the House of Commons. Andrew Scheer led off, railing about carbon taxes killing the manufacturing sector, never mind that in his Ontario example, it was a provincial carbon price. Justin Trudeau hit back with jibes that it was good to see that most of the aconservaties believed in the Paris Accords and that carbon pricing was good for the market. Scheer groused that they would meet the targets without a carbon price, before moving onto the Norsat sale and lack of a comprehensive security screening. Trudeau reminded him that they took the advice of national security agencies. Scheer took a second kick, needling that Trudeau admired Chinese dictatorship too much to care about national security, and Trudeau lashed back that partisan jibes like that were unworthy of this place. Denis Lebel was up next, demanding a non-partisan process to appoint parliamentary watchdogs, and Trudeau noted their new appointments and rattled off some of the diversity of the new reports. Lebel tried again in English, and got the same answer. Thomas Mulcair was up next, asking if the Der Spiegel article was true that the government was backing away from climate goals at the G20. Trudeau insisted that they have been climate leaders and pointed to examples. Mulcair pressed, and Trudeau was unequivocal that he did not say what was in the article. Mulcair then turned to the issue of court cases involving First Nations children and dialled up the sanctimony to 11, and Trudeau noted the memorandum of understanding he signed with the AFN this morning about moving forward on steps. Mulcair demanded that the NDP bill on UNDRIP be adopted, but Trudeau insisted they were moving forward in consultation (never mind that said bill is almost certainly of dubious constitutionality).

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Roundup: BC Speaker drama, part III

While the drama over the coming BC Legislature Speaker election draws closer, and we are faced with more stories of not only the likelihood of a partisan NDP Speaker, but also one who will take off the robes to vote as an MP in committee (which is unconscionable, frankly), we see yet more boneheaded suggestions being thrown into the mix, none more so than our friends at Democracy Watch who want to turn this into an opportunity to turn the Speaker into an independent appointment, like an Officer of Parliament.

Hell. No.

This all having been said, the Speaker is the servant of the House, and to do that, he or she must be a member of it. There’s a reason why when a Speaker is elected, they are “dragged” to the Chair, because Speakers in the 1300s sometimes faced death when Parliament displeased the King. That’s not an inconsequential part of the reason why we have a Parliament in the manner that we do, and it’s important that we keep that in mind as we practice our democracy.

We also need to call out that for a group that purports to be focused on democracy, Democracy Watch is a body that seeks to limit actual democratic accountability with the imposition of innumerable independent Officers of Parliament who are appointed and unaccountable, and which seeks to codify conventions in order that they can be made justiciable with a goal of ensuring that political decisions wind up in the courts rather than at the ballot box. Theirs is not a vision of democracy, but of technocracy, and that’s not something we should aspire to, no matter what you think of our politicians.

Meanwhile, Jason Markusoff thinks that the Liberals should suck it up and put forward one of their own as Speaker for the sake of the institution (and he draws some of the lessons of New Brunswick from 2003-2006), while David Moscrop says the potential to damage the institution is too great, and it’s preferable to have another election to resolve the situation (which I’m sympathetic to). As well, Rob Shaw charts a course for redemption for Christy Clark amidst this chaos.

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QP: The Trudeau/Scheer damp squib

A new week, and Justin Trudeau was back in the Commons after a morning at Niagara Falls to do a guest spot on US television, and before his meeting with the visiting president of Chile. After a moment of silence for the victims of the London Bridge attack, Andrew Scheer led off, mini-lectern on desk, asking for an update and reaction to the attack. Trudeau gave condolences to the family of the Canadian woman who died in the attack, and noted that an hour before, he had spoken to Theresa May about the issue an hour before, and then offered his well wishes to Scheer as new leader of the Opposition. Scheer then turned to the Infrastructure Bank, and concerns that it would assume all risks with future projects. Trudeau didn’t really answer, but talked about the need for more infrastructure investments across the country. Scheer insisted it was all about rich friends of the PM, but Trudeau reminded him that they raised taxes on the wealthy to lower taxes on the middle class. Scheer then changed topics to ask about the politicised nomination of Madeleine Meilleur as Language Commissioner and demanded that it be cancelled. Trudeau said that it was important to get the right people for the job, regardless of their political history — a new talking point. Scheer tried again in English, and Trudeau dug in a little more this time, pointing out how politicised the previous government’s appointment process was whereas the current government had created a new process. Alexandre Boulerice led for the NDP, railing that the Infrastructure Bank would necessitate user fees, and Trudeau stuck to points about the need to invest in infrastructure. Daniel Blaikie repeated the question in English, and Trudeau noted that the Federation of Canadian Municipalities was applauding the decision to unlock more capital in that way. Blaikie then turned to the Meilleur nomination, and Trudeau repeated his points about merit-based appointments. Boulerice repeated Blaikie’s question in French, and Trudeau repeated his answer.

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QP: Scheer’s debut reading

The day after the Conservative leadership results, the seating plan had changed to give front-row seats to most of the failed candidates, with Rona Ambrose to sit next to Scheer for the next few weeks. As well, the PM was still in Rome, and would not be here to spar with Scheer on his first sitting day in the new job. Scheer led off, mini-lectern on desk, and launched into a rant in French about how the previous Trudeau government hurt his generation, and asked a rhetorical question about why the government was hurting Canadians. Bill Morneau first offered congratulations to Scheer for his election, and then reminded him that the economy was on the rebound. Scheer switched to English by reading complaints about people being nickled and dimed, to which Morneau repeated his congratulations in English and the positive economic indicators. When Scheer read questions about hiked taxes, Morneau reminded him that the first thing they did was lower taxes for the middle class. Scheer then changed topics and read a question about one of the surveillance planes in Iraq being withdrawn. Harjit Sajjan noted that Canada increased their contributions, and that rebalancing forces was a constant exercise. Scheer repeated his question in French and got the same answer. Irene Mathyssen was up for the NDP, railing about the Infrastructure Bank as a source of user fees. Amarjeet Sohi assured her the Bank was there to invest in the Infrastructure deficit. Alexandre Boulerice asked again in French, and Sohi reminded him that the Bank would be accountable to Parliament. Boulerice then switched to the question of lifetime pensions for wounded veterans, to which Sajjan insisted that they still planned to implement the pension. Mathyssen asked again in English, and Sajjan repeated that further details would be released later in the year.

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Roundup: Senators get their funds

In case you missed the news, the new Independent Senators Group got core funding to hire staff to help coordinate independent senators’ activities and logistics. This came around the same time that they managed to strike a deal when it comes to getting more independents on committees without waiting for a prorogation to hit the reset button as the rules would otherwise dictate. Why this matters is because it allows the ISG to effectively organise their own members, to help them hire staff and do things like that – efforts which Government Leader – err, “representative” Senator Peter Harder has been attempting to bigfoot with his own offers to help these senators get staffed up and offering briefings and assisting in legislative coordination and so on. The fact that he represents the government and has been sworn into the Privy Council – regardless of his protestations that he’s independent because he’s actually not (you can’t be both an independent and represent the government – it’s like being half-pregnant) – makes this a blow to actual independence that these senators are supposed to be exercising. Giving the ISG the funds to do that on their own is an important step. Of course, the same piece mentions that Harder plans to move motions in the Senate in the spring related to his ability to restyle his title as he wishes, and that I have a problem with. This particular semantic game that he and the Trudeau government are playing around his role is a very big problem when it comes to how the chamber operates in our Westminster system, and Harder playing silly buggers with what he calls himself in order to cloak his role with the government is a problem. He and this government need to drop the charade and just come clean – Harder should be a cabinet minister in keeping with the role, and be the point of contact for accountability in the Senate. Playing games around it weakens accountability and the duty of the Senate in that role.

Meanwhile, with the appointment process for six upcoming vacancies having been announced, we also got the release of the report on the statistics from the previous round (highlights here). Maybe this time we’ll see an appointment from Southwestern Ontario, a new LGBT senator or even someone from outside of the social sciences!

Finally, Senator Denise Batters appears to have broken the rules to record a video in the Senate Chamber, accusing Trudeau of authoritarian tendencies in trying to destroy opposition in the Senate. While her basic premise – that there is a movement to shut down the position of Official Opposition in the Senate – is correct and concerning, Batters cranked it up to eleven in being completely overwrought about it, and does more harm than good to the issue. I’m not sure how much the move to weaken Official Opposition in the Senate comes from Trudeau or from Harder and his particular vision of Senate “independence” where he can co-opt the independents to his causes, but that remains a concern that I’ve heard from not only the Liberals and Conservatives in the Senate, but a couple of the independents as well. But this kind of stunt doesn’t help.

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