Roundup: The crash and the cries for stimulus

It was a tough day on the markets yesterday as stock markets plunged at record levels over panic-selling because of COVID-19, and oil prices cratered while Saudi Arabia and Russia got into a pissing contest. Bill Morneau held a post-market-closing press conference to assure Canadians that there was fiscal room to deal with the situation, but he spoke in frustrating platitudes and generalities as he so often does (because this government is largely incapable of communicating their way out of a wet paper bag), but it needs to be acknowledged that his budget challenge has become a lot more complicated, particularly as the oil shock is going to impact federal revenues as well as Alberta’s. But seriously, the whole Conservative “spent the cupboard bare” narrative is bogus and economically illiterate, and they are actively spreading misinformation about it.

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Around the same time, Jason Kenney held his own press conference, saying that all options were on the table for dealing with the downturn on the province’s economy – and then immediately ruled out a sales tax, which would stabilize the province’s revenues. Because that might make sense. Rachel Notley says that he should scrap the budget and re-do it, given that its assumptions are now proved to be useless, but other economists say it’s likely not worth it at this point, and it would be better to have a fiscal update in the near future.

And then come the demands for some kind of fiscal stimulus plan, but one of the things they’re pressing is that measures need to be timely. Maclean’s talks to four economists about what they think such a plan could look like for the best impact.

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Roundup: The hollow discontent

The Council of the Federation meeting has concluded, and Jason Kenney is again giving warnings about national unity, but given that his thesis is a house built of lies, one should probably take it with a grain or two of salt. There were the usual demands of higher healthcare transfers (ironic given that the premiers are largely conservatives, at least one of whom was in Harper’s Cabinet when he reduced the rate of increase on those transfers), and federal assistance with pharmacare, and the platitudes about increasing labour mobility – for which we’ll see if Kenney’s theatrical moves around unilaterally reducing a handful of the province’s trade barriers will get any traction. It was noticeable that he didn’t decide to join the national securities regulator, and for as much as Andrew Scheer tried to swoop in with press releases about how Justin Trudeau had “failed” on interprovincial trade, the reality is quite the opposite – after achieving the trade deal with the provinces and the negative list of barriers, they have made substantial progress on chipping away at it.

There was some disagreement – François Legault continued his opposition to pipelines (which throws a giant wrench into their visions of “national energy corridors” that are being used as code-words for pipeline access routes), and Brian Pallister and to a lesser extent, Doug Ford, sniped back at Legault about his province’s “secularism” bill, that the other premiers mostly didn’t say anything about.

When all was said and done, however, it became noticeable how hollow Kenney’s attempt to build some kind of coalition of discontent was – while he was trying to insist on a brewing unity crisis, all of the other premiers were pretty much “one or two disagreements, but we’re good otherwise.” Which kind of blows Kenney’s narrative out of the water – especially when he was forced to admit that the province doesn’t really want to separate. It’s a tacit admission that once again, this is just using lies to try and keep people angry because he thinks he can use that to his advantage, but not enough other premiers want to play with that particular bonfire.

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Roundup: Attacking his own plan

Andrew Scheer’s sudden denunciation of the planned clean fuel regulations got some reaction yesterday, partly from the government, and partly from economists who deal with this kind of thing for a living. Scheer’s labelling it a “secret fuel tax” is more than a little odd, because it’s exactly the kind of thing he’s proposing by removing the transparent federal carbon price and replacing it with more costly regulations, which would get passed onto consumers in a hidden way without any of the rebates that the current federal backstop programme provides – in other words, doing exactly what he’s accusing the Liberals of doing. The government noted that Scheer’s 4¢/litre figure are just a guess because the regulations haven’t been finalised yet (though some economists say it’s about right based on current projections), but again, it needs to be driven home that this is exactly the kind of thing that Scheer himself is proposing, but without the added “technology is magic” sheen attached.

To that end, here’s economist Andrew Leach’s mock open letter to Scheer.

Meanwhile, Heather Scoffield points out that this latest attack by Scheer risks boxing him in, and attacks his credibility on the climate file.

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QP: China vs Brexit

Wednesday, and most but not all leaders were present, somewhat unusually. Andrew Scheer led off, mini-lectern on desk, and in French, he read some condemnation that the prime minister didn’t fire John McCallum soon enough Trudeau stood up and said that on China, they were working to freeing the imprisoned Canadians, and then took a shot at Scheer’s lack of foreign policy credibility given his support for Brexit. Scheer switched to English to read his litany of foreign policy sins by this government, and Trudeau reiterated that they were working to safeguard Canadians in China before repeating his shot at Scheer on Brexit. Scheer wondered why it took so long for Trudeau to fire McCallum, but Trudeau wouldn’t let up on Scheer’s Brexiteering. Scheer then switched to the carbon tax and said that the government planned to raise the price to $3/tonne before his benches reminded him that the talking point was $300. Trudeau responded that Scheer still hasn’t delivered his own climate plan, and when Scheer gave falsehoods about industrial exemptions and the apparent planned carbon tax hikes, Trudeau shrugged and noted that their rhetoric was empty if they were resorting to personal attacks, before talking about how people would be better off with carbon rebates. Peter Julian led off for the NDP, and in French, predictably raised the issue of housing, but this time name-dropped the riding of Outremont. Trudeau picked up a script to state that it was too bad if the NDP derided the plans to refit existing housing. Julian switched to English to ask the same, and Trudeau had a script in hand but didn’t actually read from it while he listed the investments being made in housing. Charlie Angus stood up to demand personal action on the housing emergency in Cat Lake, and Trudeau read that they were developing a long-term plan of action with its leadership, and noted they lifted the boil-water advisory in that community already. Angus took a couple of shots at Seamus O’Regan and the prime minister, and Trudeau listed the investments they have made with Indigenous communities. 

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Roundup: Getting mad at algorithms

While the Conservatives spent their day in the House of Commons using their Supply Day motion to lay an unsubtle trap for the Liberals – demanding that they table a balanced budget and a written pledge to not raise any taxes, certain that the Liberals would defeat it so that they could turn around and say “See! Look! Trudeau is planning to raise your taxes!” – Andrew Scheer spent his afternoon getting angry at Google’s search algorithms.

The problem (other than the dangerous level of computer illiteracy) is that this was something that originated on a reddit thread that Scheer immediately latched onto.

https://twitter.com/moebius_strip/status/1090332359650672641

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Despite the afternoon of tweets pillorying Scheer and mock Google searches that put his image up for searches like “People who will never be prime minister,” it does actually score a deeper underlying point about this kind of virtue signalling over social media.

And this is part of the problem – we’ve seen this before with the issue of the UN global compact on migration, that Scheer started adopting tinfoil hat conspiracy theories to try and reclaim those votes that are suddenly gravitating toward Maxime Bernier. (I’m also not unconvinced that part of this Google search panic is some leftover James Damore “Google is full of social justice warriors!” drama that inhabits certain corners of the internet). The creation of this kind of alternate reality of conspiracies and lies that that they then turn into attack campaigns against media who fact-check and debunk their false claims, is them playing with fire. Making people believe disinformation may seem like a good idea to win a few votes in the short run, it has very long-term negative consequences that they seem utterly blind to. And yet, this is their current strategic vision. No good can come of this.

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Roundup: We join you now from West Block…

And so, the Big Move is complete, and the House of Commons has settled into its new home for the time being. Many MPs were still trying to find their way around the new building, going through wrong doors, coping with more cramped quarters, but they did make some history with the first instances of simultaneous interpretation of Cree in the Chamber thanks to Liberal MP Robert-Falcon Ouellette. The changes were all cosmetic as the partisan rhetoric on both sides largely remained the same dichotomy of pabulum from the Liberals, and lies from the Conservatives.

Just what kinds of falsehoods were being peddled? For one, the Conservatives leaned heavily on the notion that the Liberals had “raised taxes” on most Canadians, which isn’t actually true – it’s torque that comes from a Fraser Institute report that considers increased CPP contribution taxes (they’re not), and similarly calls the cancellation of non-refundable boutique tax credits in favour of the (non-taxable) Canada Child Benefit to be “tax increases.” Scheer lied that the government the government’s “own documents” show that they plan to raise the carbon tax to $300/tonne, which is also false, and as Alex Ballingall debunks here, it’s based on redacted documents that point out that higher prices will be needed to meet emissions targets, but don’t say that they are actually planning to do so. And Michelle Rempel also tried to make partisan hay of the fact that the government’s yearly quota of applications for family reunification immigration spaces was open for the space of eleven minutes before it maxed out and tried to equate this as somehow being the fault of asylum seekers who cross the border irregularly – another complete falsehood that Althia rage debunks here, and more to the point, Rempel is engaged in concern trolling – her own government did not prioritize this immigration stream and limited to 5000 cases per year while the Liberals increased it to 20,000. (They also tried to make the small number of spaces “fairer” by attempting to do it on a lottery system rather than one where high-priced immigration lawyers were able to get their files in faster, but that lottery system was abandoned this year). So yeah, the House was mired in bullshit today, but would the government refute most of this on the record? Not really – we got plenty of bland talking points instead that allowed most of these distortions to remain on the record. Slow clap there, Liberals.

Meanwhile, Chantal Hébert enumerates the government’s many self-inflicted wounds as the new sitting gets underway. John Ivison notes the same old fear and division being peddled by both sides despite the new digs. Paul Wells makes us feel bad for thinking that things might be different in the new locale. I was on Kitchener Today yesterday to talk about John McCallum, China, and the return of the House of Commons.

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Roundup: McCallum out

On Friday night, Justin Trudeau asked for and accepted John McCallum’s resignation as the ambassador to China, not offering specifics as to why, but offering praise of his years of service. The narrative emerged a little later over the weekend that his comments were “unhelpful” in releasing those Canadians detained in the country, and some said that it sent “inconsistent” messages to China (though I’m not sure that’s entirely true – we may be following the rule of law, but if the Americans withdraw their extradition request, that would resolve the situation, and we can’t pretend that extradition requests in Canada aren’t inherently political). Of course, this is also that whole dynamic of what can be said in private versus public, but there you go. Choosing a replacement will also be tricky business, and there are those who say it needs to be a senior bureaucrat who speaks Mandarin, but we’ll see if Trudeau seems to think another political appointee is his preferred route.

Andrew Scheer was quick to rush out and say that it was too late, that he should have been fired at the first instance, which is a bit rich considering that Stephen Harper’s usual practice was to conspicuously ignore these kinds of eruptions, shrug them off, and only months later would he quietly shuffle that person out of whatever job they were in, so that he didn’t look like he made a mistake in appointing them to the job in the first place.

Susan Delacourt hears from her PMO sources that nobody was happy with McCallum’s ouster, and that while they could walk back on comments once, they couldn’t do it a second time. Paul Wells goes through all of the other questions that McCallum’s ouster raises, not only with the state of the Meng incident, but also on the broader foreign policy objectives of this government, and what is left standing from the vision they outlined two years ago.

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Roundup: Making hay of Venezuela

The situation in Venezuela has been getting political play in Canada, though perhaps not unsurprisingly from the NDP. Much of the party has long had a fascination with “socialist” regimes, both the Chavez regime in Venezuela, as well as Cuba (I was once at a house party with an NDP staffer who expressed shock that the Revolutionary Museum in Havana would have the audacity to subject her to propaganda when she was there to be inspired). It was perhaps least surprising that it would be Niki Ashton who put out the condemnation over Twitter for the Canadian government’s declaration to support the declared interim president of Venezuela in the bid to try and get a new round of free and fair elections up and running. This was echoed by one of the party’s by-election candidates, as well as newly nominated candidate Svend Robinson, who decried that the Canadian government was somehow following the lead of Donald Trump – patently absurd as we have not followed along with their Trump’s musing about military intervention, and the fact that we have recognised the last democratically elected leader in the country who has a constitutional case for the interim presidential declaration. And Jagmeet Singh? He offered a pabulum talking point that said absolutely nothing of substance, but did repeat the false notion that Canada is somehow following the Americans’ lead on this. All the while, Conservative and Liberal MPs started calling on Singh to denounce the Maduro regime in the country, which he hasn’t done, leaving the badmouthing to anonymous staffers.

Meanwhile, Canada is planning to host the other countries of the Lima Group next month in order to plan how to steer Venezuela back toward democracy, which totally sounds like us following the Americans and their musing about military intervention, right? Oh, wait.

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Roundup: McCallum’s gambit

A political firestorm kicked off yesterday when it was revealed that our ambassador to China, John McCallum, held a media availability with Chinese-language media on Tuesday and didn’t inform Canadian media, and then he made comments about how Meng Wanzhou had a “strong case,” and laid out some reasons why, including the fact that Donald Trump politicised her arrest. There seemed to be some genuine confusion among the Canadian foreign affairs community about what exactly was going on here, including whether McCallum was freelancing or going on a limb, but during his own media availability later in the day, Trudeau didn’t distance himself from the comments – though he certainly danced around them a fair bit (though parliamentary secretary Arif Virani later went on Power & Politics to say that the government stood behind McCallum). And then the reaction – Erin O’Toole accusing McCallum of throwing the Americans under the bus, and Andrew Scheer insisting that he would fire McCallum if he was prime minister (for what good that would do).

It’s worth remembering that our extradition system always has the element of political discretion, in that the minister of justice has the final say once the court processes are over and have determined whether the case is viable. (Full explanation of the process here). Also, here’s a video of lawyer Michael Spratt explaining the process.

Meanwhile, Andrew Coyne says that McCallum put doubt into peoples’ minds about the rule of law, and will be seen to indicate a preference for the outcome, before wondering if McCallum was just freelancing or buying time with the Chinese. Given the swift media reaction in China, there may be more of the latter than the former in the calculation, but it’s hard to know at this point.

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QP: KPMG and conspiracy theories

With the benches mostly full, the Chamber was ready to begin the grand inquest of the nation. After a moment of silence for an RCMP officer who lost his life in a car accident in Quebec, Rona Ambrose led off, asking whether the PM had answered questions from the Ethics Commissioner on his Christmas holiday. Trudeau simply stated that he was happy to answer the Commissioner’s questions. Ambrose pressed on the accountability angle, and Trudeau expounded upon the responsibility to Canadians and openness and transparency, but that was all. Ambrose pivoted to the lack of judicial appointments affecting the criminal justice system, for which Trudeau noted the appointments have been made, and noted the new process that was ensuring that more women, visible minorities and Indigenous get appointed. Ed Fast was up next, back from recovering from a stroke, and he demanded the government’s figures on the costs of carbon pricing. Trudeau welcomed him back but chided him for not understanding the new economy. Fast brought up hydro rates in Ontario, but Trudeau was unmoved, taking shots at the previous government’s record. Thomas Mulcair was up next, demanding action on tax havens, and wondered when the budget was. Trudeau noted the commitment to tax fairness, by didn’t give the date. Mulcair railed about KPMG and different rules for the rich, and Trudeau reminded him that they were engaged on the file. Mulcair demanded criminal charges, and Trudeau again reminded him that the file was still being investigated. Mulcair worried about CRA-funded advertorials, for which Trudeau reminded him that they employ a broad range of ways to communicate to Canadians.

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