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: Stop berating members for doing their jobs

It’s not often that I write about provincial matters, and especially not from Manitoba, but this one I felt like I should make a remark because of the way in which the story is framed, which infuriates me to no end. The headline is “Stephen Fletcher criticizes his own government’s bill in Manitoba.” Fletcher, a former Conservative MP and one-time cabinet minister, is currently an MLA in the province, and a backbencher in the governing caucus.

Because I know that the vast majority of Canadians didn’t get a quality civics education, let me spell it out – it’s a backbencher’s job to hold the government to account. Yes, even if they’re from the same party. And in this case, Fletcher had concerns about a bill and has been asking questions about it at committee meetings late into the night. In other words, he’s doing his job. We should be encouraging this.

But what does the local Canadian Press reporter ask the premier? Whether Fletcher should be removed from caucus.

Great Cyllenian Hermes, luck-bringing messenger of the deathless gods, give me strength before my head explodes.

We The Media keep insisting that we want more independent elected officials, and we constantly fetishise things like free votes, and the moment an MP or MLA starts asking tough questions of their own party or steps out of line, we freak out and start wondering if the leader is losing control of their party, or in this case, whether they need to be kicked out of the party. In this particular case, the article goes on to say that this is the first crack in party unity. Are you kidding me?

When we elect members under the First-Past-the-Post system, we are imbuing them with individual agency. That’s why we elect them to single seats and not giving votes to parties to apportion those seats out to their MPs. We privilege the independence of MPs and empower them to do their jobs. Whether or not they choose to do so is the bigger part of the battle, because of the pressures of looking like a team player, but We The Media make it worse because we pull bullshit like this all the time. Our insistence on these ridiculous narratives and demands that our elected members all act in lockstep constantly while at the same time demanding independence is doing the system in. It’s driving the need for message control which is poisoning our democracy, because our own journalists have a tendency to be too ignorant of how the system is supposed to work.

Let MPs and MLAs do their actual work of holding governments to account, and stop causing trouble. Seriously. You’re actively hurting democracy with this kind of bullshit.

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Roundup: Flaherty’s national regulator, take two

While the attempt to eliminate interprovincial trade barriers has been on the government’s agenda since 1867 (no, seriously), Jim Flaherty took yet another stab at creating a national securities regulator – despite being shut down by the Supreme Court the last time. This time, however, he’s not imposing a system from Ottawa – he’s working with provinces to create a “cooperative capital markets regulatory system,” that ensures that each level of government give up their own powers to this new body, and he’s got Ontario and BC signed on, meaning it has oversight over some 90 percent of industry in the country already. While most other provinces will likely come aboard in short order, Quebec and Alberta remain opposed for the time being. It will likely be discussed further this weekend at a federal-provincial finance ministers’ meeting. John Geddes looks at Flaherty’s journey to this point, while economist Stephen Gordon points out that our patchwork of regulations may not be our biggest problem – but a national regulator can’t hurt.

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Roundup: The RCMP officially get involved

The big news yesterday was that the Conflict of Interest and Ethics Commissioner, Mary Dawson, has suspended her probe into the Wright-Duffy affair as the RCMP have begun a formal investigation into the matter. And then the RCMP confirmed this fact. So it’s all getting very real, ladies and gentlemen. It’s now in the big leagues, though it further gives the Conservatives an out from commenting on matters (“as this is an ongoing police investigation, it would be inappropriate to comment” will be the new line in QP). On a not-unrelated note, Liberal Senator Joseph Day is starting a campaign to close that loophole in the Conflict of Interest Act that allows public office holders to accept “gifts” including cash from friends without reporting it. Day also noted that they tried to close this loophole back in 2006 when the Accountability Act was first being debated, but the Conservatives and NDP struck it down.

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