Roundup: Backtracking on capital gains claims

A number of prominent business lobby groups banded together to write a joint letter to the government slamming the changes to the capital gains inclusion rate, claiming it to be short-sighted, that it sows division, and that it will impact one in five Canadians over the next decade—with more apocalyptic language about how this will hamper economic growth. Because, remember, their ability to engage in tax arbitrage is claimed to be a public good, or something.

There was just one problem—their math was grossly wrong, and they needed to backtrack on their claims, and that really, it’s about 0.13 percent of Canadians who would pay higher taxes on their capital gains. Oopsie. Kind of takes the sting out of their apocalyptic doomsaying, and exposes them for trying to mislead people into thinking that they will be exposed.

Meanwhile, the NDP have been banging on about why the government didn’t introduce any kind of windfall tax or other wealth taxes in the budget, pointing to plans by Joe Biden to increase corporate taxes, apparently not understanding how the American political system works and how that’s unlikely to happen because of how their legislative process works. The bitter irony, of course, is that for a party that keeps aping the American Democrats in their talking points, they also have no understanding of American politics either.

Ukraine Dispatch:

Ukraine’s air force says they downed all ten of the drones Russia fired overnight, but didn’t say what happened to the two missiles launched. A Ukrainian drone damaged a Russian oil refinery a record 1500 km away from border. President Volodymyr Zelenskyy dismissed the head of the state guards after two of its members were found to be plotting his assassination. Zelenskyy also says that with more Western weapons arriving, they’ll be able to halt the Russian advance in the east. In those eastern towns, Ukrainian rescuers are evacuating the elderly and infirm as the Russians close in;

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Roundup: The First Hogue Report

On a very busy Friday, Justice Marie-Josée Hogue released the first report of the foreign interference public inquiry, to some moderate fanfare. Much of it was broadly what was in the Johnston report, but with some more nuance, which left some of it open to degrees of interpretation, some partisans claiming it proves there was meddling, others leaning on the parts where she said that what there was wasn’t enough to amount to changing an election outcome, and there certainly wasn’t some grand effort by China to win the election for the Liberals. At most, it might have cost Kenny Chiu his seat, and there remained questions about Han Dong’s nomination, but even there, there wasn’t a lot of evidence to prove or disprove anything one way of the other.

To that end, key points, and five things from the report. It wasn’t just China, but India, Pakistan, Iran, and a few others. Some candidates in the 2019 election “appeared willing” to engage in foreign interference, with more staff members implicated, around advancing the interests of China, but there weren’t any firm conclusions about who much any foreign interference actually tipped the scales in any one riding. The government also announced that they are tabling legislation on Monday, which is likely to include the foreign agent registry, and possibly some updates to CSIS’ mandate and powers.

Justice Hogue did make a couple of comments about nominations being a possible gateway for foreign interference, but that’s something that would be hard for governments or agencies to do much to involve themselves in because of how parties operate as private clubs, by necessity. That said, as I wrote in this column a couple of weeks ago, open nominations are practically extinct in the current moment so perhaps there isn’t that much danger after all.

Ukraine Dispatch:

Debris from destroyed drones fell on Kharkiv, injuring three and starting a fire. Russia says it has pushed Ukrainians back from 547 square kilometres so far this year, as Americans delayed their crucial aid shipments.

https://twitter.com/ukraine_world/status/1786364727032971377

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Roundup: Asking about Canadian LNG like it’s a free cookie

Once again, CTV’s Vassy Kapelos asks a visiting European leader if they’d like Canadian LNG, and spins a whole story out of the fact that they say yes, while absolutely ignoring all of the many reasons why it’s never going to happen. This has happened with at least three leaders now, the latest being the president of Poland, who was visiting Canada last week (the taped interview aired over the weekend), and predictably, the story is making rounds with people insisting that Trudeau is wrong to say there’s no business case for it.

To wit: There is no ready supply of natural gas to be liquified on the East Coast, because they get it shipped from the north-eastern US. Blaine Higgs’ ambitions aside, nobody wants to be fracking in New Brunswick (not the First Nations, not the people who live in the region), and that would mean either paying even more to import American gas to liquefy, or build a pipeline from Alberta (and just as a reminder, Energy East was killed by the proponent because they didn’t have enough contracts to fill it and Keystone XL, and the latter was the surer bet at the time), and it costs money to ship gas across the country in a pipeline like that, which would increase the selling price. Then they would have to build a new export terminal to liquefy said gas, (there is one existing import terminal that could theoretically be converted), but all of this takes years, billions of dollars, and would need guaranteed operations for about 45 years to pay off, which is going to put them past the 2050 Net Zero date for a rapidly decarbonizing Europe to still want the LNG—which would be at a higher price than they can get it from Algeria or the Persian Gulf. That’s why there is no business case. There have been proposals to build terminals on the east coast before, and nobody in Europe wanted to sign a contract to make it a worthwhile investment to pursue. Hell, there are plenty of fully permitted projects on the west coast not moving ahead because nobody wants to sign contracts for the product.

But Kapelos and the CTV team keep ignoring all of these issues when they ask this question, which as one reply on Twitter stated, is like asking someone if they want a free cookie. The most the story says about the feasibility of east coast LNG is “There has been political debate for years around whether Canada could or should plan to export to European countries, as well.” That’s it. Seriously? This is malpractice at this point, and no, this is not because she or anyone is “in the pocket of Poilievre,” or anyone. It’s just lazy journalism, plain and simple. It’s not serving anyone, and frankly, is distracting from the actual issues.

Ukraine Dispatch:

Russian drones struck a hotel in Mykolaiv on the Black Sea, severely damaging it and local energy infrastructure, but fortunately there were no casualties. Another Russian oil refinery has suspended operations after a Ukrainian drone attack. While Ukraine waits on the arrival of more American aid, their forces have had to fall back from three more villages northwest of Avdiivka.

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Roundup: Bullshitting about pharmacare

In a radio interview yesterday, Pierre Poilievre claimed that the proposed federal pharmacare programme would force people to give up their existing private insurance and onto a federal programme—something that is entirely no true, and boggling as to how he could think that, particularly because the government has been pretty clear that to start, the only thing it proposes to cover are diabetes medications and devices, and contraception. (This is, of course, subject to provincial approval, because the federal government can’t do this on its own).

In spite of being called out by health minister Mark Holland on the lies and “fake boogeymen,” Poilievre has gone on to try and shift the goal-posts on the different programmes that the federal government has been trying to roll out, saying things like dental care hasn’t cleaned a single tooth (not true—the initial tranche of the programme was apparently fairly well-subscribed, while the current programme only came into being in December and is still rolling out), or that the school food programme is just a press release (again, the programme is about enhancing existing programmes, not creating anything new). Regardless, there is a complete inability to be truthful about anything, whether it’s outright lies, or it’s bullshit (and there is a difference in there between them, even if the line is fairly narrow).

This should be a warning about the next election, where he will say absolutely anything, shamelessly, and media outlets will be scrambling to do any basic fact-checking, while mostly just both-sidesing the whole thing, because that’s what legacy media does best—especially in an election, where fact-checks can come days or even weeks too late, or the rather useless exercise the Toronto Star engaged in where they listened to each leader’s speeches for a week apiece, and tried to data-journalism it into a quantitative exercise when it’s fairly qualitative, and can require nuance about degrees of dishonesty or disinformation to appreciate how it’s working. Nevertheless, this is not a good sign of things to come.

Ukraine Dispatch:

Russian missiles attacked an apartment building and train station in Dnipro, killing at least eight people. Ukraine’s spy agency says that their attack on the airfield in occupied Crimea seriously damaged four missile launchers and three radar stations. Here’s a look at Russia’s tactic of making smaller attacks to keep exhausting Ukrainian forces ahead of a likely spring advance. A Polish man has been arrested on suspicion of gathering information on behalf of the Russians for a possible assassination plot against Ukrainian president Volodymyr Zelenskyy. The burgeoning defence industry in Ukraine is looking for more certainty around orders as they deal with a lack of investment and needing to relocate production facilities to avoid being targeted by Russia.

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Roundup: Economists endorse carbon pricing, not the Liberal plan

Yesterday, a group of leading Canadian economists published an open letter about the facts about carbon pricing and the rebates, and debunked several claims that conservatives around the country have been making. It was a good and necessary corrective, but of course, legacy media headlined it as them defending the Liberal plan, which they weren’t doing, particularly because while the Liberal plan includes the carbon levy and rebates, it also is full of regulation and subsidies, which these economics are explicitly not in favour of. But legacy media loves to make this a partisan fight where they have to be on one side or the other. Liberal Party comms didn’t do themselves any favours either on this one.

To that end, here is energy economist Andrew Leach on carbon pricing, and throwing some shade at the PBO’s rather shite report once more.

Meanwhile, a number of premiers demanded to be heard at the House of Commons’ finance committee about the carbon levy, because they think that’ll do them any good, but instead, the Conservative chair of the Government Operations Committee invited them to testify today. The Government Operations Committee has fuck all to do with this file, but apparently, we no longer care about things like committee mandates anymore, so long as you can put on a dog and pony show, and gather clips for social media shitpost videos, that’s all that matters. This shouldn’t be allowed, but this is the state to which our Parliament has now debased itself. Ours is no longer a serious institution for doing serious work. It’s only about content creation, and I cannot stress enough about how absolutely terrifying this is for the future of democracy.

Ukraine Dispatch:

A Ukrainian missile attack struck a Russian naval reconnaissance vessel as well as a large landing warship. Ukraine’s navy says that they have destroyed or disabled a third of the Russian Black Sea fleet over the past two years. Here’s a look at how Ukraine’s burgeoning domestic defence industry is ramping up to provide necessary ammunition for the war. Here’s a great explanation of Ukraine’s use of drone warfare with some excellent infographics.

https://twitter.com/defenceu/status/1772541600591147503

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QP: Spike the Hike vs Scrap the Crap

Kicking off the sole sitting week of the month, the prime minister was not present for QP, though he did show up immediately after, for the speeches paying tribute to Brian Mulroney. Trudeau’s deputy was present, however, as were most of the other leaders. Pierre Poilievre led off in French, and after rattling off his slogans, he railed about the increasing carbon price, and pivoted to a decree about supposedly closing the forestry sector in Quebec. Chrystia Freeland responded that Quebec has their own system for carbon pricing, which…was not the question. Poilievre noted that wasn’t what he asked, and then asked something around police needing to control crowds for food basket deliveries. Freeland noted that the Conservatives only want to cut supports for those less fortunate. Poilievre switched to English to again rattle off his slogans, and noted military families going to food banks and demanded the levy increase be curtailed. Freeland repeated that the Conservatives only want to cut programmes people rely on. Poilievre declared this to be “fear and falsehoods” and repeated some slogans about the carbon prices. Freeland retorted that Poilievre traffics in fear and falsehoods, and repeated that he wants to cut the carbon rebates. Poilievre read an out of context figure about how much the increase will cost—citing a different figure than what applies to households—and Freeland gave a somewhat confused group of carbon rebate points that didn’t really flow.

Alain Therrien led for the Bloc, and raised the PM’s meeting with François Legault last weekend, and lamented all the things that Trudeau rejected that Legault warned. Marc Miller noted they already have an agreement with the province, but they won’t turn over all powers. Therrien took a swipe at Trudeau’s radio interview on Friday, and Miller repeated that they have constructive dialogue with the province.

Jagmeet Singh rose for the NDP to exhort the government to vote for their Supply Day motion on Palestinian statehood. Mélanie Joly said they agree with the aims of peace, but didn’t say if they would or would not support it. Singh repeated the demand in French, and Joly noted that she was in the region last week, and spoken about a two-state solution but again didn’t give a clear answer.

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Roundup: Running interference for Scott Moe

There is no shortage of terrible opinion pieces in Canadian media, but I believe that the prize for utterly missing the point comes from the Globe and Mail yesterday, where John Ibbitson tried to lay the blame for Saskatchewan’s flirtation with lawlessness on Justin Trudeau, with the headline accusing him of “botching” national unity. It’s a…curious accusation, because the implication therein is that if the federal government doesn’t accede to every demand or tantrum of the provinces that they can be accused of damaging national unity. I take that back. It’s not curious, it’s utterly absurd and wrong.

Ibbitson goes to great pains to both point out how unprecedented it is that Saskatchewan is going to break federal law, but then turns around to run interference for Scott Moe and tries to insist that this is really Trudeau’s fault because he used federal spending powers to “bend provinces” to his will rather than negotiate, and in imposing the federal carbon price on provinces who failed to meet national standards. Both of those are half-truths at best—there is nothing illegitimate about using federal spending powers to get provinces on board to ensure that there are equitable services across the country, particularly for programmes with greater economic good such as early learning and child care. As for the carbon price, provinces had an opportunity to come up with their own system that met minimum standards, and most provinces refused. He also didn’t explain that when the system was enacted, most provinces already had carbon pricing in place (Alberta and Ontario both changed governments who dismantled their systems and were subsequently subjected to the federal system), and he doesn’t spell out that BC and Quebec have their own systems that meet the standards.

Yes, the federal government should have found a different solution to the problem of heating oil than the “pause,” and doomed themselves when they announced it with all of their Atlantic MPs behind them. I’m not disputing that. But while Ibbitson insists that this doesn’t justify Saskatchewan’s lawlessness, he thinks that the best solution is to “reach some sort of compromise.” Like what? He won’t say. He just laments that “Canada doesn’t work like that right now.” Did it ever? What compromise can there be when one province breaks the law and tries to justify it with a fig leaf of “fairness” but obscures the facts and truth of the situation? This kind of white bread, milquetoast “Why can’t we find a compromise?” handwringing is a hallmark of a certain generation of punditry, and it serves absolutely no one.

Ukraine Dispatch:

Ukrainian forces downed 33 out of 37 Russian drones fired at Odesa, the remainder of which damaged infrastructure, though there were other attacks in the north in Sumy and Kharkiv that cost civilian lives. There are concerns that safety is deteriorating at the Zaporizhzhia nuclear plant, as the international community keeps trying to convince Russians to leave the site. India says they have encountered a human trafficking racket which promises young men jobs in Russia, and then forces them to fight in Ukraine on their behalf.

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Roundup: An investment in more artillery

Bill Blair made an announcement yesterday related to Canada’s ability to produce more artillery, both for our domestic stockpiles and to be able to send more to Ukraine, to the tune of $4.4 million to go to two defence contractors to come up with plans to increase their production. Our inability to produce enough artillery domestically at a fast enough pace has been a problem for a while, but there has been this resistance within those same contractors to scaling up production without guaranteed, long-term plans signed with governments (as though the need and market for said artillery wasn’t obvious enough).

There are problems with some of this, however—a new production facility would need to be built, to the tune of $400 million, and you can bet that they’re going to demand that the government subsidise invest in such a facility, and it could take as long as three years to come online, which means it won’t be much help to Ukraine in the meantime. But it also makes one wonder why the company didn’t start investing on its own two years ago when the writing was on the wall, and why they have been so insistent on needing deals and funding from the government when there has clearly been a demonstrated need that they should be addressing.

It’s great that Bill Blair finally announced this kind of investment, but it feels too little and too late, but also like he’s caving into industry pressure to have the government pick up costs that they should be absorbing for their own growth and future profits, because they’re pretty much guaranteed.

Ukraine Dispatch:

A Russian attack in Kharkiv region killed two civilians, and another in the Chernihiv region. There seems to be consensus that the Russian strike on Odesa on Wednesday was aimed at port infrastructure and not president Volodymyr Zelenskyy, but it reiterates how very real the stakes are. Zelenskyy has named the former top general, whom he recently dismissed, to be the next ambassador to the UK. Zelenskyy also issued a decree allowing for conscripts currently fighting to be discharged into the reserves in the next two months, in order to give them some respite. The Czech president says that their multilateral plan to buy 800,000 rounds of ammunition for Ukraine has secured enough funding.

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Roundup: Another NDP budget demand

The NDP’s latest budget demand is a national school food programme, which is a) provincial jurisdiction, and b) something already under negotiation with provinces. This was a Liberal campaign promise, and as with many a file like this, they’ve been doing the heavy lifting in the background. For Jagmeet Singh, however, this isn’t happening fast enough, because in his conception of how governing works, the prime minister simply needs to put on his Green Lantern Ring and use enough willpower to make whatever he wants happen, and in the NDP’s conception, that generally means something that obliterates the federal and provincial jurisdictional boundaries.

I suspect a couple of things are at work—one of them is that if the federal government does come to an agreement with the provinces, Singh can try and claim victory for it, as he does with most things that he has done absolutely no work towards other than throwing a public tantrum. If this is a matter of the provinces looking for more federal money, then it will take time to ensure that the agreements are drawn up in a manner that has strings attached because we know that we absolutely cannot trust provinces to take the money and put it entirely where it is supposed to go (bitter experience with health transfers and pandemic supports), because as we’ve seen in child care, where there are agreements with strings, that some provinces have not been spending the federal funds where they are supposed to go, which remains a very big problem.

Ukraine Dispatch:

A man was killed in a Russian missile strike in the Kharkiv region, while five people were killed when a bus struck a mine in Luhansk region. One of Ukraine’s top commanders says they will stabilize their defensive position shortly, with the aim of returning to counter-offensive actions later in the year. President Volodymyr Zelenskyy was in Odesa with the prime minister of Greece when a Russian strike exploded nearby the pair. Here is a look at Europe’s attempt to get more ammunition to Ukraine, including a Czech initiative to deliver stockpiles until production can ramp up.

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Roundup: More lying to cover up for the lies

Earlier in the week, Conservative MP and justice critic Frank Caputo put out one of the party’s signature shitpost videos where he spent seven minutes talking about how he took a trip to the medium-security prison that houses notorious serial killers Paul Bernardo and Luka Magnotta, and it was replete with this theatrical outrage that the facility has a hockey rink and a tennis court. How dare they! Such “luxury”! Caputo also says he got to tour Bernardo’s cell while Bernardo was away, but that he came face-to-face with him after, and that Bernardo ask him something.

Well, it turns out that encounter didn’t actually happen. Correctional Services says that they were at opposite ends of a corridor and may have seen one another but didn’t interact. They also said that the hockey rink that Caputo was complaining about hasn’t been in service for the past couple of years, so as to dispute the notion that Bernardo is spending his days playing pick-up hockey.

Well, the Conservatives didn’t like that. Andrew Scheer accused The Canadian Press of bias for quoting the Correctional Services. Caputo claims that they denied the existence of the hockey rink, which they didn’t. And Pierre Poilievre’s press secretary accused CP of lying to cover for the government, except he was the one lying.

It’s galling just how egregious the Conservatives have lied throughout this affair—both Caputo lying on his shitpost video, and then all of the other Conservatives trying to run interference and lying about CP’s reporting. CP, the most egregious of both-sidesers in order to maintain strict neutrality in all things. But they will say and do anything to discredit the media, both to build their dystopian alternate reality, but to also condition their followers to believe absolutely anything, and to just ignore all of the cognitive dissonance. And of course, their apologists will either keep lying or keep trying to distract from the lies in order to try and whitewash the whole affair. This is the kind of thing that kills democracies, and they’re gleefully going along with it.

Ukraine Dispatch:

Ukrainian forces say that they have sunk another Russian warship using unmanned sea drones.

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