Roundup: Counting on LNG

The federal and BC provincial governments made a big ballyhoo yesterday about the fact that a consortium of companies have come together to make a $40 billion investment in Liquified Natural Gas (LNG) in BC, and it’s a project that not only did Indigenous consultation correctly, but got buy-in from the communities. It’s seen as a study in contrasts for other pipeline projects – but it’s also worth noting that natural gas isn’t bitumen, and you’ve got vastly different environmental consequences to a spill or breach. It’s also a major energy project at a time when the dominant narrative is that we apparently can’t get anything built in this country, or that investment is fleeing (not actually true), and that what we need to do is to end carbon pricing (despite the fact that energy companies have been calling for it), gutting environmental legislation (never mind that the regime Harper put into place created far more problems than it solved), and that Indigenous consultation is just a fleeting goalpost that keeps shifting. This project seems to prove otherwise – even if BC promised breaks on provincial and carbon taxes to sweeten the deal (though one could say that it shows there’s enough flexibility in the system as opposed to the whole system being hopelessly broken). Suffice to say, it makes the Conservatives’ talking points far less tenable (not that the truth has really mattered to them).

One of the more interesting questions in all of this is how it will affect emissions – not only locally, but globally, and that’s really the big question. While the local emissions would be high enough that it appears that BC would likely need to virtually decarbonise their economy otherwise, there is the potential that this LNG would be a major help in reducing emissions in Asian economies that are reliant on coal-fired generation – but that’s only if the LNG displaces coal and not other renewables instead. In all likelihood, LNG would be used alongside renewables as a backup or stopgap, but it may be some time before we see if that’s really what happens. Suffice to say, it has the potential to have a major impact on global emissions, if applied in the right way.

More New NAFTA fallout:

  • Justin Trudeau says that despite that notification clause in the new NAFTA, Canada will still pursue a deeper trading relationship with China.
  • Kim Campbell says it’s a bit cheeky for the Conservatives to suggest that they could have gotten a better deal given the American leadership.
  • In Vancouver, Bill Morneau praised the new NAFTA, but also said that dairy and steel sectors still need help. So, there’s that.
  • The new NAFTA includes a specific clause to insist that Canadians not be able to watch the American broadcast of the Super Bowl. No, seriously.
  • Here’s a deeper dive into the Supply Management issue as it relates to the new NAFTA, including the fears of hormone-laced milk coming in from the US.
  • Here’s a look at the government’s efforts at trade diversification, given that NAFTA is more or less renegotiated.
  • Here’s a look at next steps when it comes to ratification of the new NAFTA.

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Roundup: All about the New NAFTA

So, now that we have some more information about just what is in this renewed NAFTA agreement (no, I’m not going to call it by Trump’s preferred new title because it’s ridiculous), we can get some better analysis of what was agreed to. Here’s a good overview, along with some more analysis on the issues of BC wines, online shopping, intellectual property, Indigenous issues (though not the whole chapter they hoped for, and the gender chapter was also absent), and an oil and gas bottleneck issue whose resolution could now save our industry as much as $60 million. There is, naturally, compensation for those Supply Management-sector farmers who’ve had more access into the market granted (though that access is pretty gradual and will likely be implemented in a fairly protectionist manner, if CETA is anything to go by). There is, however, some particular consternation over a clause that gives the US some leverage over any trade we may do with a “non-market” country (read: China), though that could wind up being not a big deal after all and just some enhanced information sharing; and there is also the creation of a macro-economic committee that could mean the Bank of Canada may have to do more consultation with the US Federal Reserve on monetary policy (though I have yet to find more details about this change). But those steel and aluminium tariffs that Trump imposed for “national security” reasons remain, as they were always unrelated to NAFTA, and their removal will remain an ongoing process.

With the news of the deal also comes the behind-the-scenes tales of how it all went down, and we have three different versions, from Maclean’s John Geddes, the National Post’s Tom Blackwell, and CBC’s Katie Simpson.

https://twitter.com/InklessPW/status/1046750795461357568

Meanwhile, Andrew Coyne posits that the damage in this agreement is slight but there was no hope for a broader trade agreement given that there were protectionists on both sides of the table. Likewise, Kevin Carmichael notes that the deal limited the potential harm that was looming, but didn’t really break any new ground. Andrew MacDougall says that the deal gives Trump the win he needed before the midterms, while it will also make it hard for Andrew Scheer to stick anything on Trudeau around the deal. Chantal Hébert agrees that if Trudeau loses the next election that it won’t be because of this trade deal. Paul Wells, meanwhile, takes note of how the Conservatives are playing this, trying to lead observers by the hand to show them that Trudeau “failed” in these talks, while glossing over all of the actual context around why these negotiations happened in the first place.

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QP: NAFTA not good enough

After a morning of press conferences and celebratory back-patting from the government on the conclusion of NAFTA talks, all of the leaders were in the Commons, and ready to go. Andrew Scheer led off, mini-lectern on desk, and he read his disappointment about concessions made to Supply Management. Trudeau enthused that it was a good agreement, and that they worked closely with the dairy industry and would continue to work so regarding compensation. Scheer worried that there were no gains, only losses, and worried in particular about Buy America policies. Trudeau continued to enthuse about the deal, and didn’t really answer about Buy America. Scheer lost his script, and listed other concessions, and asked after Buy America again. Trudeau took a shot at Stephen Harper advocating selling out before thanking Canadians for being united on the issue. Scheer then asked about softwood lumber tariffs, and Trudeau tut-tutted that the opposition thought it was a bad deal — but didn’t answer about softwood. Sheer asked after softwood again, and Trudeau again insisted it was a good deal. Guy Caron was up next for the NDP, who was worried that there were no gains on Indigenous or gender rights or the environment and they caved on Supply Management, and Trudeau pointed to the environmental protections now in the agreement that the old agreement didn’t have, and took a shot at the NDP not liking any deals. Caron railed about Supply Management being compromised, to which Trudeau insisted that they did protect Supply Management. Tracey Ramsey took over in English on her list of things she didn’t like in the agreement, and Trudeau insisted that yes, it was a progressive agreement, especially around labour rights and strengthened environmental protections. Ramsey demanded the deal be brought to the House of Commons, and Trudeau listed the unions that support the deal, and said they would bring it to Parliament in the ratification process.

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Roundup: More Bernier fallout

Because we can’t stop talking about the Maxime Bernier “ouster,” if it can really be called that since it was more a demotion than anything, but it still got all of the tongues wagging, and all of the reporters cornering every Conservative they could find. And most of those Conservatives downplayed the whole thing, Erin O’Toole going so far as to say that hey, there are other shadow cabinet changes coming so no big deal. The underlying message was that Bernier “broke his word” about the book chapter, which is a semantic game, but given some of the various dynamics in play, it’s hard not to try and find additional drama into the whole affair.

https://twitter.com/InklessPW/status/1006872600994123777

That Rob Silver tweet may be even closer to home than most people want to admit. I have to say that there have been some pretty spectacular expectations heaped on Bernier, particularly because he speaks to a certain slice of the party, but perhaps in a more superficial way than they want to believe. After all, many of the Ayn Rand-readers are desperate to attach themselves to someone in the party who represents them (never mind that this isn’t a party of libertarians or even economic conservatives, but right-flavoured populists), so he was someone that they could pin those hopes to, ignoring a lot of what he actually said and did. His lack of judgment when he was foreign affairs minister under the Harper government was stunning, both in his intemperate comments in Afghanistan, or with the security of documents with his then-girlfriend. During the leadership campaign, he would sign off on social media campaigns that dogwhistling to MRAs before claiming he didn’t know about the connotations of “red pills” and so on (and knowing who was running that campaign, they couldn’t not know what it meant). And his constant self-promotion in opposition to Scheer post-leadership is another sign of poor judgment. And really, we shouldn’t discount this particular bit of reasoning.

In further analysis on the whole brouhaha, John Ivison keeps his ear to the ground in the caucus and wonders if Bernier’s ouster from shadow cabinet may force a rift in the party given how close the leadership vote was. Chantal Hébert notes that it was probably a matter of time before things with Bernier came to a head (as she suggests he’s not too well-liked among his Quebec colleagues) and that the by-election timing made it something Scheer couldn’t ignore. Andrew MacDougall sees this as a failing by Scheer to manage his caucus, not properly communicating with Bernier when necessary, and keeping him outside of the fold at a time when he should have drawn him in to get his cooperation on the issue at a time when it’s under attack by the likes of Trump. Andrew Coyne similarly sees this as a failing by Scheer, but for the fact that he has bought into the line that caucus must sing from a single song sheet, particularly on an indefensible policy like Supply Management. Colby Cosh sees not only political games from Bernier, but explicit quid pro quo from Scheer for his dairy supporters who (allegedly) put him over the top in the race (though I’m not sure we have any actual proof of this), and that those dairy lobbyists have successfully leveraged intra-party dynamics to their advantage.

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Roundup: Bernier booted from shadow cabinet

The surprising news last night was that Andrew Scheer had finally had enough and removed Maxime Bernier from his shadow cabinet, reassigning his critic portfolio to Matt Jeneroux. The ostensible reason that Bernier was booted? That he uploaded that chapter from his cancelled book in which he decries the tyranny of Supply Management. Never mind that the chapter was already floated to the Globe and Mail and was published weeks ago, which led to the outcry that had Bernier pull the book until his political retirement. Scheer said that this constituted Bernier breaking his word to caucus on the book, never mind that it was already in the public domain.

A more plausible explanation? That Scheer was getting a lot of heat about Bernier’s views about Supply Management in the face of Trump’s tweets about dairy tariffs that are part of the system, where the government could point to Bernier being on Scheer’s front bench as proof that the Liberals cared more about Supply Management than the Conservatives did. In fact, the swipes about this got increasingly nasty in QP the last few days, to the point that Luc Berthold got right indignant about it when it was thrown in his face yesterday. Add to that, there’s a by-election coming up in a rural Quebec riding, where this is one of those issues that they care a lot about, and Scheer (who is campaigning there later this week with the former Bloc leader who has renounced separatism and taken out a Conservative membership card) wanted to prove that he’s listening to Quebeckers on Supply Management – even though Bernier himself is a Quebecker. (Note: This is also why the Conservatives rarely ask Supply Management questions in English during QP – this is all about pandering for Quebec votes).

I do think that this is further proof that there is little room in the current Conservative party for actual free-market conservatives, and that they are working hard to cravenly embrace right-flavoured populism that is divorced from the values that they claim to espouse (as I wrote a year ago when Scheer first won the leadership). My only question now is whether Bernier will be banished to the nosebleeds along with fellow disgraced caucus member Kellie Leitch.

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Roundup: Sore loserism and entrails

If you had any money riding on who would be the first to whine that Thursday’s election result was a signal that we need electoral reform, and if you chose Elizabeth May, well, collect your winnings. I spent much of Friday responding to this nonsense, but I will reiterate a couple of points – that if you blame the system because your party did not do better, you’re already missing the point. We’ve seen it happen time and again that when a party has a message that resonates, it’s the non-voters who come out, not the committed party base, and we had increased turnout on Thursday night which meant that people were motivated to throw the bums out. Similarly with Trudeau in 2015 – a significant uptick in voter turnout because they had something that they wanted to vote for/throw the bums out. This matters, and whinging that the system isn’t fair is missing the point entirely. The system works. It needs to be allowed to function the way it was intended. What doesn’t help is using a false number like the popular vote in order to make it look like the system is unfair in order to justify your disappointment is the epitome or sore loserism.

https://twitter.com/MikePMoffatt/status/1005214910966452224

In terms of reading Thursday night’s entrails, here’s Paul Wells taking a detailed look at the three campaigns and how each succeeded and failed in their own ways. CBC has a look at how Ford’s use of simple and vague messaging made him look sensible to an angry population. Robert Hiltz looks at the ways in which the Liberals defeated themselves by their craven attempts to hold onto power. Nevertheless, Wynne’s surprise concession days before the election may actually have saved the seats the Liberals did win, according to exit polling done, so that particular strategic calculation may have actually paid off.

Jen Gerson wonders if Doug Ford’s win isn’t akin to a Monkey’s Paw curse – getting what you wish for at a terrible price. Andrew MacDougall wonders what Ford’s win means for modern conservatism given that Ford isn’t really a small-c conservative, nor were his outlandish promises. Similarly, Chris Selley looks at the phenomenon of Ford Nation, the Harper Conservatives that surround him, and the way that Andrew Scheer has suddenly attached himself to the cause. Andrew Coyne (once you get past the griping about the electoral system) warns politicians and pundits not to overread Thursday’s results (hey federal Conservatives and your crowing in QP on Friday – this especially means you), and further wonders if Ford will pull a “cupboard is bare” routine to keep carbon pricing to use the revenues. Jason Kirby mocks up what Ford’s first speech might look like, by referencing earlier speeches about bare cupboards.

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Roundup: No, this election won’t be good for electoral reform

I know that I really shouldn’t give bad columns more coverage, but I can’t help myself, because this is just the first of many that we are doubtlessly going to see in the coming months – that a Doug Ford win on Thursday could get the ball rolling on electoral reform, at least in Ontario. It’s a specious argument, but it’s attractive to a certain class of voter and wonk, so brace yourselves, because this red herring will be coming at you hard in the coming month.

Part of the problem with this particular column is that it doesn’t really make the argument why electoral reform is the logical follow-through for a Ford-led government, because most of the complaints have to do with how Ford won the leadership instead of Christine Elliott. This is not the fault of the electoral system – it’s the fault of our very broken leadership selection system and would largely be corrected if we returned to the system of caucus selection of leaders that our system is designed for. If we had that in place, Elliott would likely have been chosen because she was in caucus at the time that Patrick Brown challenged for the post (while he was still a federal MP, in case you’d forgotten). That would be two dark chapters in the Ontario PC party that could have been avoided, but I digress. The argument here should be that the Ford gong show should be an object lesson in how we need to restore proper leadership processes, where caucus can select and remove leaders in order to ensure that there is proper accountability and more importantly that leaders can’t throw their weight around, that caucus has more power to keep the leader in check. Sadly, that’s not the argument we got.

The balance of the column is a bunch of whinging that parties got majority mandates with less than 40 percent of the popular vote – never mind that the popular vote is a logical fallacy. It’s not a real thing – it’s an extrapolation that magnifies the sense of unfairness by those whose parties did not win, but it’s not a real thing because general elections are not a single event, they’re a series of simultaneous but separate elections for individual seats, and yes, that matters greatly in how the system works, how parliaments are formed, and in the agency afforded to individual MPs.

The other implicit argument being made in pieces like these, though this pieces doesn’t come out and say it, is that proportional representation will likely deliver us a series of coalition governments by nice leftist parties, and we’ll get solar panels on roofs, and great social programs, and no divisive politics because they’ll be forced to cooperate. Won’t it be great? Err, except that’s not what happens, and if anyone thinks it’ll be nice leftist coalitions in perpetuity, they should perhaps look at what’s going on in Europe right now, and how the populist mood there and in North America would have consequences in our own elections that wouldn’t be mitigated like our current brokerage system does, and that could be an even bigger problem. But that’s not the established electoral reform/PR narrative, even though it should be.

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Roundup: Undead electoral reform concerns

With BC’s electoral reform referendum on the horizon, and vague promises around it from the Ontario NDP as the election draws to a close, we’re apparently talking proportional representation again. Sigh. Over the weekend, Jean Chrétien made the particular case in his idiosyncratic way that the reason why it’s a bad system, and the core of his argument is that it doesn’t force people to engage with voters. Door knocking to win a riding? Democratic. Being a party wonk who gets in because they’re on a list? Not very democratic. It’s a way of looking at the practical inputs and outputs of the system that most people gloss over when they whinge about the popular vote (which, I will remind you, is a logical fallacy because general elections are not one single event, but 338 separate but simultaneous events) and how “unfair” it seems when viewed through this skewed lens.

As for this referendum in BC, it’s a bit of a dog’s breakfast with its two-stage vote – the first vote as to whether to keep First-Past-the-Post or to adopt a system of proportional representation; the second stage being to choose between three systems – mixed-member proportional with some regional weighting, dual-member proportional, and a hybridized system where urban ridings would have single-transferable-votes, and rural ones would have some kind of proportional system akin to MMP. But there are problems with all three choices – the regional weighting associated with their version of MMP exists nowhere in the world so we don’t know the outcomes; the dual-member proportional is a theoretical system dreamed up by some University of Alberta system that exists nowhere in the world and we really have no idea if or how it would actually work; and the split urban-rural system would never pass constitutional muster. If BC’s attorney general thinks that the Supreme Court would allow different voting systems based on where you lived, I suspect that he’s dreaming, and it would have to be one hell of an excuse to try and save this with Section 1 of the Charter (being that it’s a reasonable curtailing of your rights and freedoms in a free and democratic society). So, good luck with that.

Meanwhile, Andrew Coyne is no fan of the two-stage referendum and would rather simply prefer a single ballot where status-quo was an option like they did in PEI. Where Coyne goes wrong is when he said this as successful in PEI – it really wasn’t. They had to go some five ballots before a PR system squeaked through by the narrowest of margins with unusually low voter turnout for a province that typically takes voting very seriously. Colby Cosh, meanwhile, quite properly lambastes the whole affair as being completely gamed, because aside from the way in which they’re dubiously counting the second ballot if one system doesn’t get a majority from the start, there are still too many unknowns in the three proposals, including whether the proportional lists would be open or closed – a very huge consideration in how PR systems work, and which goes to the heart of holding governments to account in these systems. In other words, this BC referendum is shaping up to be a boondoggle from the start, which is not good for our democracy in the slightest.

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Roundup: Reheated economic policy

Andrew Scheer came out with his first economic policy plank yesterday, and it was pretty much a tepid reheated policy of the Harper era that plans to be packed into a private members’ bill at some point this parliament. The idea is a “tax credit” for parental EI benefits – because Harper-era Conservatives loved nothing more than tax credits, and tax credits are the loophole in private members’ bills that let them spend money without actually spending money, because the rationale is that they’re reducing income rather than raising revenue, but if I had my druthers, I would see that loophole closed because a tax expenditure impacts the treasury just as much as an actual spending programme does. Add to that, tax credits are generally not tracked by the Department of Finance, so their ongoing impact is not reported to Parliament, nor is their effectiveness really tracked either – and yes, there is an Auditor General’s report from a couple of years ago that states this very problem with them.

https://twitter.com/InklessPW/status/959085766029713408

And add to that, this announcement is yet another sop to the suburban family voter that the Conservatives want to try to recapture from the Liberals. Of course, like most of the plans of the Harper era, the tax credit structure doesn’t actually help a lot of the families who need it, and the benefits tend to go towards those who make more money in the first place, which one suspects is why the Liberals’ Canada Child Benefit was seen as a more advantageous plan to that same voting demographic that Scheer wants to target. And don’t take my word for it – here’s Kevin Milligan and Jennifer Robson to walk you through why this isn’t a well though-out plan from an economic or policy standpoint.

https://twitter.com/kevinmilligan/status/959082561090670592

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QP: Emerging from the fog of repayment demands

Thursday, and with the PM off to Edmonton, and Andrew Scheer giving his first major economic policy plank in a nearby hotel, it was a bit odd that Scheer didn’t bother to show up since he was in town. Alain Rayes led off, reading some heroic praise about how the Conservatives insisted the prime minister be investigated for his vacation, and demanded repayment for it. Once again. Bardish Chagger dutifully stood up to read the approved talking points about the PM taking responsibility and making changes going forward. Rayes tried again, got the same answer, and on his third attempt, Rayes tried in vain to link it to previous repayments, and Chagger reiterated her points a third time. Candice Bergen got up to try the same again in English, and with added indignation, and Chagger added praise for the PM’s town hall in her talking points. Bergen tried another tortured analogy with Trudeau saying that harassment codes apply to him so why not repayment, and while Chagger reiterated her previous points. Guy Caron led off for the NDP, noting how much other countries have recovered from the Panama Papers, while Diane Lebouthillier responded that they were investigating. Caron raised the bonuses that CRA executives were getting, but Lebouthillier stuck with stats on how combatting evasion. Ruth Ellen Brosseau stood up to sound the alarm about investment funds being involved with the Infrastructure Bank. Marc Garneau praised the fact that the Bank was now in operation and had a diverse board, and after another round of the same in French, Garneau responded in English about what a great optional tool the Bank could be for communities. Continue reading