Roundup: Holding companies and crying wolf

The fixation on Bill Morneau and his family wealth is becoming mind-numbing, with new conspiracy theories and allegations of conflicts of interest arriving daily. While the Conservatives made him the subject of their Supply Day motion, demanding he produce all documents he shared with the Ethics Commissioner while continuing to promulgate the absurd conspiracy theory that he was pushing through the private corporation tax changes for the benefit of his company, while the NDP crowed about more alleged “appearances” of conflicts with his tabling a pension reform bill that his family company could, in theory, benefit from. And the subject of whether or not he still controls shares in said family company went through the media cycle like a tornado, with confirmation from the Ethics Commissioner in committee testimony that she didn’t tell Morneau to place his shares into a blind trust – because, as it turns out, he doesn’t control them, having already offloaded them into a holding company that he doesn’t control (apparently his wife does), and none of this is subject to current rules under the Conflict of Interest Act. In response to it all, Morneau sent a letter to the Commissioner requesting a meeting to see if there’s anything else he can do to further comply with the rules that he’s already complying with per her advice.

Two things here – one is that the Commissioner has raised this exception to the Act in the past, and when the Act last came up for review in 2014, she flagged it then and it wasn’t acted upon. Guess who was in power then? The Conservatives, who also pushed through all of those changes to various accountability legislation in 2009, along with the NDP. The second point is that we have constantly been bombarded with constant baseless accusations about the “appearance” of a conflict of interest for everything under the sun. And with these various conspiracy theories being put forward, even Occam’s Razor will tell you that the idea that these changes being put forward, either to pensions or private corporation taxation, for the benefit of Morneau’s company are absurd on the face of it. Pension reforms have long been debated, and there are reams of data about the problems that these private corporations are being used for reasons they were not intended to be by wealthy individuals in order to avoid taxation. Trying to use Morneau as an excuse to make the government back off on either is absurd and shows just how debased our ability to debate is in this country if debate is being replaced by personal attack. Never mind the fact that there has been a whole lot of crying wolf. If everything is a conflict, then nothing is a conflict. Sooner or later a wolf will come, and nobody will care anymore, having been completely numbed by the constant cries beforehand.

(Incidentally, Dawson also called on the government to amend their fundraising bill to include parliamentary secretaries as those who must report, for what it’s worth).

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Roundup: All abuzz about Netflix

It’s probably not a big surprise that the story for which the most ink (physical or digital, take your pick) was spilled yesterday were the culture policy changes that Mélanie Joly announced, punctuated by the grand announcement that Netflix had committed to spending half a billion dollars over five years on Canadian productions. But in there was also news that there would be no big bailout for the news media in this country, and there would be some funding boosts for the Canada Media Fund, the Canada Music Fund and the Canada Book Fund, and a creative export strategy, along with previously announced reforms of the Copyright Board.

Suffice to say, there’s a fair amount of grumbling from traditional broadcasters that Neflix is essentially getting away with murder, not bound by the same CanCon obligations of traditional broadcasters, nor are other Internet giants like Google and Facebook being asked to contribute to the same content creation funds that traditional media are. And there is some pretty legitimate concerns about this announced Netflix deal because it’s pretty opaque – Netflix will continue to be able to operate as a black box when it comes to their subscriber data, and while Sean Casey went on Power & Politics to insist that the $500 million was new money (given that Netflix had previously told Parliament that they were already spending “hundreds of millions of dollars” in Canada), it really doesn’t seem like that’s anything new given that previous statement. Netflix also says that the money isn’t coming from the recent rate-hike in Canada, but that’s not washing with a number of people. The Financial Post has a fairly comprehensive look at the announcement here, including the fact that the announcement seems to leave a lot of the heavy lifting into the future, which probably shouldn’t be a surprise.

I do think it should be incumbent upon us to remember that Netflix has not been a net benefit to the cultural sector in Canada. The late Denis McGrath used to refer to them as a “parasite” on the Canadian broadcast sector because they put no money into the production of shows that they streamed, encouraging the cord-cutting that starved the very platforms who produced those shows that they later streamed of funding. It’s a complex problem, and a handful of Netflix originals aren’t going to be the panacea for the Canadian film and television industry. If anything, it may hasten the decline.

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Roundup: Signs Morneau is listening

For all of the bellyaching from those who consider the government’s tax proposals to be a done deal that may not even get enabling legislation but would instead be rammed through by way of a Ways and Means Motion, it looks like those fears are for naught. In a tele-town hall yesterday, Bill Morneau admitted that there are problem areas that need to be addressed, and they plan to take what they’ve heard in the consultations and try to fix the implementing legislation, especially when it comes to things like how it affects the sale of family farms. Economist Lindsay Tedds was listening in, and she provided a play-by-play with some instant analysis here:

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Meanwhile, Chantal Hébert wonders if Morneau can’t pull out a win that will let both sides claim victory, even if Morneau himself emerges wounded from the process. This being said, Hébert makes the point about the lack of applause from the Liberal benches, which Bob Fife made on The West Block on the weekend, and it bugs me that pundits are still trying to read into this because the Liberals stopped clapping in January 2016, except for rare verbal zingers. It’s not indicative of anything other than an attempt to restore a bit of dignity to the exercise of QP, and making a deal out of it to fit a narrative is bad form.

The Senate’s National Finance committee will examine the proposals as well, and the debate getting there contained some of the usual cheek of some particular senators.

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Roundup: Exit the GG

With this being Governor General David Johnston’s last week on the job, and before we see the installation of Julie Payette as his successor next week, I thought I’d share this thread from Philippe Lagassé from the weekend on the job of being GG.

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Meanwhile, that interview with Maclean’s that Johnston did last week also sparked a few thoughts from Lagassé as well.

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While I think that Johnston was an okay GG, I do recall there being a few…brow-raising incidents early in his tenure, which most people seem to have glossed over. One was during a cabinet swearing-in shortly after one of the Harper-era elections, where reporters at Rideau Hall noted that he was doing a lot of high-fiving with newly sworn-in cabinet ministers, and while those on the scene tried to raise the issue over Twitter, it got swallowed by the news cycle shortly. (Remember that Johnston was appointed not long after he drafted very narrow terms of reference for the Oliphant Inquiry into Brian Mulroney’s dealings with Karlheinz Schriber, which again were curious at the time). The other incident for me that I found a bit curious was during an interview that Johnston had with George Stroumoublopoulos, in which Strombo raised the promotion of family as one of the things that Johnston was keen to promote during his time in office, and when he asked what that meant, Johnston replied that it started with the nuclear family. As someone for whom the nuclear family was never going to be an option, I found the response curious but it wasn’t really delved into. Nevertheless, Johnston’s tenure has been largely unremarkable, which was probably what those who appointed him were looking for after two previous Governors General that were media darlings and in danger of being a bit self-aggrandizing at times. We’ll see what Julie Payette brings to the role, and I look forward to her installation.

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Roundup: No more gimmicky rules

In her latest installment of her occasional “Dear Process Nerd” column series, Kady O’Malley takes on the subject of heckling, and offers a sympathetic answer about the frustration of MPs who can’t get a word in edgewise given the way in which debates and QP are structured to all but discourage actual debate. And she’s right – that is a very serious problem that we should address. The problem? The solutions that she offered were not solutions.

As is so often the case with people who are looking to reform the system to improve the obvious deficiencies, the instinct is always to implement some new gimmick, and my learned friend is no different in this regard. In this case, O’Malley notes that we should give MPs more time to meaningfully engage with legislation (go on…) but decides that the answer lies in rejigging the daily schedule for un-structured, open-interaction with things like quizzing specific ministers on subjects or Urgent Questions.

And this is the part where I heave a great sigh, because my learned friend as completely missed the mark.

When you identify a problem, you shouldn’t go looking for a new gimmick to try and counterbalance it – you should go looking for the source of the problem and solve it there. In this case, it’s the way in which we started regulating speaking times in Canada so that when we imposed maximum speaking times, we incentivised MPs to use up that whole time. That meant speeches that went up to 40 minutes, then twenty, and the ten minutes allotted for questions and comments wound up being just as rote and scripted more often than not because MPs no longer know how to debate. So why not just tackle that problem instead? Restore the old rules – abolish speaking times and speaking lists, have the Speaker gauge how long MPs should have to speak to a bill or motion based on the number of MPs who want to speak to it, and allow for interruptions for questions in a free-flowing manner, and above all, ban scripts so that MPs will be engaged in the subject matter, talking for probably eight to ten minutes, ensure that there is free-flowing debate throughout, and most of all, it eliminates the impetus to read speeches into the record. Just tacking on new rules and gimmicks has made the situation worse over the years. Strip that away. Get us back to the fundamentals. That will help bring about actual change.

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Roundup: Appointment backlog woes

The National Post has a really good piece looking into the current backlog of appointments and the effect it’s having on the functioning of government. It’s something that has been talked about a lot, but it’s been a long time since I’ve seen a good breakdown of those vacancies, and the effect that it’s having. It’s one of those subjects that sounds pretty easy to grumble about, but it’s also something that we should take a step back and realise that to a certain extent, the goals of reforming the appointments process has been laudable, and in many cases, overdue when it comes to increasing the level of diversity into these positions. Over the course of my reporting, a lot of civil society actors have praised the move (while still being concerned at the timeframe it took for getting the processes up and running) because they all know that the outcomes will inevitably be better over the longer term now that the bulk of positions aren’t simply being filled by straight white men.

That said, I also wanted to just put a bit of additional context around some of this backlog in saying that as much as the Conservatives are baying at the moon about some of these appointments right now, that they were no saints when it came to this sort of thing either, and reformed the appointment process for some of these positions themselves, creating massive backlogs in the process. The two that come to mind immediately are the Immigration and Refugee Board, where they took a functioning system and drove it to dysfunction when they changed that process to “de-politicise it” (with plenty of accusations that they just made the system easier to put their own cronies in) and turning a system where the optimal number of files was churning through into a massive backlog that they tried to blame their predecessors on (sound familiar?). The other was the Social Security Tribunal, which they completely revamped as part of their changes to the system overall, and I’m not sure it ever got fixed before they lost the election, only for the Liberals to turn around to reform the appointment process yet again. So yes, some of the backlogs are bad, but in some cases, ‘twas ever thus, and we should keep that in mind.

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Roundup: Promised term-limits?

In yesterday’s Hill Times, the question of promised term-limits for Harper appointees in the Senate was discussed, with a variety of responses in return. Some confirmed that they had agreed to an eight-year limit and would try to hew to it, while others said that it was some great myth that they agreed to such a limit when they were appointed, and expressed bafflement as to where the media got such an idea. (Hint: A bunch of senators said that they agreed to it, including Senators Wallin and Duffy). And while some of those senators noted that things changed, and that it wasn’t a realistic promise to keep if it wasn’t applied evenly, I would also add that it would have been an unconstitutional promise (if indeed they had made it).

While there is some fairly clichéd grumbling about how terrible it is that some senators are appointed for thirty-some year terms, the concept of term limits in the Senate is generally a bad one for a number of reasons. First of all, most terms that have been bandied about are too short to be effective. The Senate is the institutional memory of Parliament, given that we have a fairly low rate of incumbency and a high rate of turnover in the House of Commons. Eight year terms are not only too low for much in the way of memory (twelve being better), the bigger problem with eight-year terms is that it would allow a prime minister with two majority mandates to completely turn over the composition of the Chamber, which is a Very Bad Thing when much of the raison d’être of the Senate is to be a check on a majority PM.

The other, bigger point, about having a Senate where they are appointed to age 75 and are difficult to remove is that the tenure allows for institutional independence. If you have term limits – especially shorter ones – it means that you stand a greater likelihood that senators start trying to curry favour with the government toward the end of their term so that they can get some kind of post-senatorial appointment, whether it’s a diplomatic posting or heading a tribunal. By ensuring that they stay until the mandatory retirement age, it means that they aren’t going to be trying to leverage their position for post-senatorial employment because they will beyond the age by which any federally appointed positions will have them. That’s an important consideration that often gets overlooked.

While this debate around whether these senators did or didn’t agree to such a term limit, there is no enforcement mechanism, and as stated earlier, it was an unconstitutional promise so it should be considered moot. As to the point as about senators with very long tenures, that remains something that the government that did the appointing can be held to account for (and indeed should be) if they consistently appoint young senators.

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Roundup: A wee little cabinet shuffle

Stephen Harper surprised everyone yesterday with a wee little cabinet shuffle – Julian Fantino is going to CIDA in Oda’s place, and Bernard Valcourt gets the associate deputy minister position for defence while retaining his ACOA portfolio and the Francophonie.  Fantino is an…interesting choice, considering he’s spent his career being the guy who as getting tough on crime and now he’s being the face of Canada’s compassion and aid. As for Valcourt, he’s a Mulroney-era veteran who is moving a up the ladder a little bit, but considering how marginalised the military procurement file has become in the advent of the era of the procurement secretariat, it makes one wonder why they bothered to retain the portfolio. Also, interesting that Peter MacKay and John Duncan are staying put despite major gaffes of their own, and more evidence that Harper will refuse to make changes in order to avoid admitting that he made a mistake with his choices.

The government is tightening temporary foreign worker rules so that it will exclude exotic dancers, escorts and people who work in massage parlours, as they’re more “vulnerable to exploitation.” Of course, one suspects that this will just drive this all that much further underground and rather than have people documented so that they have access to some kind of assistance if they are being exploited, they’ll just be classified as “hostesses” or “servers” (provided they take a drink order) and it won’t actually have an effect on exploitation of human trafficking (assuming of course that we’re not just conflating human trafficking with the sex trade, as they are not the same thing).

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