Tag Archives: Parliamentary Budget Officer

Roundup: The fiscal stance is tight

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The Parliamentary Budget Officer was doing his actual job of providing alternative fiscal forecasts for Parliamentarians, and his projection of the economic situation is that growth will slow over the second half of this year, which isn’t a bad thing because it will help to tackle inflation, particularly as the Bank of Canada continues to raise rates. The deficit continues to shrink, as does the federal debt-to-GDP ratio, which shows our fiscal stance is not too loose.

Here’s economist Kevin Milligan putting things into more context, but the bottom line is that the Conservatives’ assertion that government spending is fuelling inflation is not true, and they need to come up with some more credible talking points. (Yeah, yeah, good luck with that one, I know).

https://twitter.com/kevinmilligan/status/1580598737906597894

https://twitter.com/kevinmilligan/status/1580602979140632576

https://twitter.com/kevinmilligan/status/1580605473476476929

Ukraine Dispatch, Day 232:

It was another day of Russian strikes against civilian targets, including by Iranian-built kamikaze drones, while Volodymyr Zelenskyy continues to request more air defence systems to protect the country. Ukrainian forces boasted that they took down four Russian helicopters in the space of eighteen minutes.

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Roundup: Fiscally sustainable, in spite of the narratives

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It’s now day one-hundred-and-fifty-six of Russia’s illegal invasion of Ukraine, and they have started shelling the Kyiv area once again for the first time in weeks. Russians are also pounding the northern Chernihiv region, which observers are linking to the Day of Statehood celebrations—something that president Volodymyr Zelenskyy instituted last year to remind the country of their history as an independent state, and was celebrated for the first time earlier this week. Meanwhile, Ukrainian counter-attacks in the south have virtually cut-off the Russian forces in Kherson and have left their forces near the Dnipro River “highly vulnerable,” as Russians shift forces from the east to the south, putting them from an attack posture to a defensive one.

Closer to home, the Parliamentary Budget Officer has declared that Canada’s fiscal outlook is sustainable in the long term, even if some of the provinces’ outlooks are not. This amidst weeks and months of wailing and gnashing of teeth that the current government has spent us into oblivion (they haven’t) and that they have saddled future generations with so much debt (again, they haven’t, and that’s not how government debt works), and that this is fuelling inflation (it’s not). Anyway, here is economist Kevin Milligan to walk us through the report:

https://twitter.com/kevinmilligan/status/1552671459797090306

https://twitter.com/kevinmilligan/status/1552672685326491649

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Programming Note: I am taking the next week-ish off while I have the chance. Loonie Politics columns will continue in the interim, but otherwise expect to see me back in the second week of August. Thanks everyone!

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Roundup: Unchecked officers want unchecked financing

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It is now on or about day sixty-six of Russia’s invasion of Ukraine, and there has been a crackdown on “traitors” in the country who have been helping Russian forces, sometimes to their own regret later on. Some 400 people have bene detained in the Kharkiv region under anti-collaboration laws, and because of martial law, due process is not always being followed. Meanwhile, president Volodymyr Zelenskyy’s wife, Olena Zelenska, says the war has not changed her husband, but has revealed his determination to prevail, and that he’s someone you can rely on. Elsewhere in Europe, a pipeline between Greece and Bulgaria that was built over the pandemic is getting ready to come online, which will help relieve the situation of Russia cutting off gas to that country.

Closer to home, I read with interest this piece by Kathryn May about the various independent officers of Parliament trying to establish a funding mechanism for their offices that essentially bypasses government, in the name of “independence.” I am dubious, because as it stands, these officers already have no accountability, and their asking to remove what few mechanisms that either parliament or the government can rein them in is worrying. We have seen how New Brunswick’s particular independent officers are trying to organise the ability so that they can essentially write their own enabling legislation (the column I wrote on this is here), which one has little doubt that the ones in Ottawa are eying with particular interest because they will want to do the same, because “independence.”

As I note in the column, these officers have moved away from their intended goal of serving Parliament and expanding the investigative capacity of MPs and using their expertise to assist with legislation and government programmes, and have instead become external bodies that rely on public opinion to mount pressure on Cabinet to act. This diminishes Parliament rather than enhances it, and it’s one reason why I really do not think it’s wise to allow these officers to accumulate any more unchecked power—especially as they have entranced the media, who not only venerate them, but refuse to believe they can be at fault, which is again a problem because it means that what these officers say is repeated uncritically, no matter how problematic some of it is (looking at you most especially, PBO). We have a problem with our independent officers, but we refuse to admit it.

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QP: The pre-budget questions have started in earnest

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It was a very unusual Wednesday in that most leaders were once again absent—the prime minister was off at the Williams Lake First Nation, missing his self-imposed Wednesday PMQs for the second week in a row, and missing from QP for over a week now; his deputy was also absent. Candice Bergen has been absent for days (and there has been some chatter that her husband tested positive for COVID), as has Yves-François Blanchet. As well, somewhat unusually for a Wednesday, the benches were emptier than they typically are. And possibly worth noting, Speaker Rota remains away, and his deputy, Chris d’Entremont remains in the big chair. Luc Berthold led off, and lamented that they have a date for the first “NDP budget,” which merited him applause from the NDP benches, and he decried what it would represent. Randy Boissonnault stood up to insist that the Conservatives were talking down the economy, and he recited StatsCan data on GDP growth. Berthold quoted Jean Chrétien about deficits, as though it were still 1995, and Boissonnault made a plea to pass Bill C-8 to buy more rapid tests. Berthold accused Chrystia Freeland of selling her soul for a majority, and Boissonnault listed measures they have taken for Canadians. Dan Albas took over in English to decry inflation and a measure around housing, for which Ahmed Hussen dismissed the concerns as the Conservatives did nothing for affordable housing. Albas spouted a few misleading things about what the Bank of Canada Governor and the Parliamentary Budget Officer said about carbon prices, demanding they not increase, and Randy Boissonnault recited that the carbon rebates were progressive and most will get back more than they pay.

Alain Therrien led for the Bloc, and he decried the policy that seniors aged 75 and older age getting a top-up rather than all seniors, wondering if this was a Conservative or NDP decision, and Darren Fisher responded with a few points about how affordability gets tougher for older seniors. Therrien insisted that inflation meant they were abandoning seniors, and Fisher read some talking points about measures they have taken for seniors to date.

Jagmeet Singh rose in person for the NDP, and accused the government of siding with banks over people. Boissonnault said that while they understand the sentiment of the NDP’s failed supply day notion, they have taken action on taxing the wealthiest. Singh repeated the question in French, and got the same answer.

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QP: Unhappy with the new emissions plan

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With Justin Trudeau off in Vancouver to give a speech on the government’s new emissions plan for 2030, we did have his deputy present, which was something. Most of the other leaders weren’t present either, and some have become rare sights of late. Luc Berthold led off in French and complained that the emissions reductions plan would cripple the oil sector and that this meant we couldn’t help our friends in Europe get off Russian oil and gas. Terry Duguid stood up to recite some bromides about the plan as announced. Berthold then launched into a rant about how the government doesn’t answer simple questions, and demanded to know if inflation was costing Canadians more. Chrystia Freeland responded that they were sensitive to costs which is why they indexed benefits and introduced $10/day child care. Berthold then railed about the increasing price on carbon, demanding it be suspended, to which Freeland recited the good news about economic growth. Kyle Seeback took over in English, and he misleadingly cited the PBO report on carbon pricing in order to complain that the emissions reduction plan wasn’t going to work. Duguid got back up to recite that the PBO indeed stated that most families would be better off with rebates, and he cited the rebate levels in several provinces. Seeback then railed that the government spent $60 billion on fighting emissions and they still went up—again, somewhat misleadingly because the curve of growth has flattened—and Duguid responded that if the Conservatives were still in charge the emissions would be even higher.

Alain Therrien led for the Bloc, and he demanded that the government start chartering planes to get more Ukrainian refugees over here. Sean Fraser insisted people were arriving all the time and they were rolling out programmes to support them. Therrien said that Air Transat was just waiting for the government to charter flights and repeated his demand, and Fraser said that they are discussing with airlines.

Jagmeet Singh rose for the NDP in person, and he called the emissions reduction plan “disappointing,” saying it gives a free pass to the fossil fuel sector. Duguid got back up to recite a number of actions they have taken around the energy sector. Singh repeated the question in French, and Duguid recited some more climate action plans.

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QP: Selectively quoting a PBO report that selectively frames an issue

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With Justin Trudeau away—first to Mississauga to announce the child care deal in Ontario along with his deputy, then off to Vancouver, none of the other leaders bothered to show up in the House of Commons for Question Period today, so happy Monday to you all. Luc Berthold led off, script in front of him, and in French, he regaled the Commons with a tale of how people approached him in the grocery store about complaints about the rising cost of living, and demanded to now how the prime minister intends to feed Canadian families. Randy Boissonnault accused him of creating economic fiction, and recited Statistics Canada data on the growth of the GDP. Berthold railed about the price of gas and what it was doing for inflation, to which Boisonnault praised the child care agreement with Ontario as an affordability measure. Berthold then switched to health care transfers to provinces and the principles the government were attaching to them, to which Jean-Yves Duclos praised their measures to save Canadians’ lives. Kyle Seeback got up and in English, railed about the Parliamentary Budget Officer’s report on carbon prices, selectively quoting a report that only selectively looks at a portion of the issue, to which Terry Duguid assured him that the PBO stated that most families will get more back in rebates than they pay. Seeback insisted this was wrong, that the PBO stated otherwise, and Duguid repeated his points.

Alain Therrien rose for the Bloc, and he demanded that health transfers have no conditions and blamed the federal government for underfunding provincial health systems, and Duclos recited some good news talking points about the $2 billion for surgery backlogs. Therrien listed federal failures to insist that they had no competence for healthcare, to which Pablo Rodriguez quipped that the Bloc should invest in shirt-making companies because they keep tearing their shirts every day.

Alexandre Boulerice appeared for the NDP by video and wondered about enforcement of sanctions in Canada, to which Mélanie Joly praised the sanctions and the assets that they froze. Heather McPherson repeated the question in English, and Joly repeated her assurances.

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Roundup: The grifters make nice for the cameras

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The first part of the grifter convoy arrived in Ottawa yesterday, probably 80 trucks in total, and they largely blocked the street in front of Parliament Hill and made a bunch of noise, but that was it so far. Much of the day appeared to be devoted PR—the organizers swearing up and down that they wanted this to be peaceful, engaging with the police to that effect, who are on the lookout for “lone wolves,” telling reporters on the scene the fiction that they were frustrated with vaccine mandates (until you scratched the surface, and they insist that they are tired of the “tyranny” of the current “dictator” Justin Trudeau, whom you will all recall just won a free and fair election).

It’s all bullshit, however. All of it. This whole thing was organized by extremists, some of whom have ties to the Sons of Odin. If anyone with “genuine concerns” is really along for the ride, it’s because they’re a hapless moron who can’t do their due diligence before they got swept up into the grift. We don’t know where a lot of the money collected by the GoFundMe is coming from, but it’s a good bet it’s not all domestic—especially as this has been picked up by agitators in the American media ecosystem, who are seeing this as some kind of mobilisation effort (while repeating the bizarre falsehood that this is somehow 50,000 trucks and 1.4 million people headed to Ottawa, which defies credulity). They have a stated aim of overturning democracy and eliminating all public health orders (never mind that 99 percent of them are provincial or municipal), and it’s never going to happen because it’s impossible, but nevertheless, there are more and more Conservative MPs who keep giving them legitimacy while trying to play cute and insisting that they denounce extremism, even though the gods damned extremists are behind it. Erin O’Toole went so far as to stage a photo op with a supposed trucker family while in an RCAF jacket, which is a pretty dubious statement to be making considering this convoy’s goal is to overturn democracy, which includes him.

https://twitter.com/robert_hiltz/status/1487211790765338628

Meanwhile, Matt Gurney wonders how we deal with the impossible task of marginalizing the extremists, and proposes we actually start fixing the things that can be fixed to show that the system can work. (Not mentioned: Calling out the opportunists who feed the extremists’ irrational anger and the politicians who court them because they think they can use their energy and dollars). Colin Horgan, on the other hand, speaks for all of our weariness, as we are subjected to these conspiracy theorists who are all playing hero in their own minds, and believing their own juvenile bullshit, while even those with “genuine concerns” only make it worse by feeding into it all the same.

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Roundup: The extremists weigh in

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As the grifter convoy 2022 gets closer to Ottawa, it is attracting more online attention from some unsavoury circles. Some of them have been calling for this to be Canada’s January 6th insurrection, which one might think would give some Conservative MPs pause, but nope. No denunciations have yet been forthcoming. Another group associated with the convoy, calling itself “Canadian Unity,” seems to think they can force the government to sign some kind of quasi-legalistic “Memorandum of Understanding” that would essentially force the all governments, federal, provincial and municipal, to rescind all public health measures and dissolve the government so that said group can rule by fiat. Erm, yeah, that’s not going to happen.

One of the organizers (who has the GoFundMe in her name) says she won’t tolerate extremist rhetoric associated with said grifter convoy, but yeah, good luck with that. And if things do turn violent, well, that could trigger anti-terrorism financing laws to everyone who donated to those GoFundMe accounts.

https://twitter.com/StephanieCarvin/status/1486064285361086469

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Oh, and the federal government isn’t budging on the vaccine mandate, and if they think a convoy like this will change the Americans’ minds for their own mandate, well, good luck with that delusion.

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Roundup: At long last, the mandate letters

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On what turned out to be the final sitting day of 2021 for the House of Commons, the prime minister finally released the mandate letters for his ministers, nearly three months after the election, and two after they were sworn in to their new jobs. I’m not sure how well I can articulate the utter absurdity of the situation, because there is really no excuse why it took this long (let along why it took him as long as it did to swear in his Cabinet or to summon Parliament). The fact that they were released after the House agreed to rise at the end of the sitting day means that there can be no interrogation of these letters by the opposition until January 31st, which is way too long.

As for the letters themselves, there is a theme among them about building a more inclusive and fair country, and for tangible results to be better communicated to Canadians (you think?). Some of the highlights include:

  • Ordering several ministers to take a harder line on trade tensions with the US
  • Resurrecting legislation on CanCon requirements for the internet and having web giants pay news outlets, as well as modernising the CBC
  • Renewed action to fighting systemic racism, along with a number of initiatives directed toward the Black community
  • Implementing UNDRIP in all decisions
  • Developing a new cyber-security strategy

No doubt more attention will be paid to these letters over the coming days, and we’ll see how much misunderstanding comes from them (recall the line about not creating new permanent spending programmes from Chrystia Freeland’s previous letter which people took to mean all rather than in the context of COVID supports). It also looks like we’re getting talking heads grousing about inclusivity as though it were somehow a distraction from economic growth when inclusive growth is where the country needs to be headed to head off economic challenges plaguing us since before the pandemic.

https://twitter.com/kevinmilligan/status/1471544703212404736

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Roundup: A costing document with too-rosy projections

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The NDP released their platform costing document at 4:30 PM on a Saturday – the second day of advanced polls – a time of day where most of the population will have tuned out already. This was a choice, much like the Conservatives releasing theirs right before the debates – so that attention would be elsewhere. Why? Because as much as they might dress it up, there’s not a lot in there that is credible.

There is some $215 billion in proposed new spending, some of which is difficult to see is feasible, such as their plans for a basic income for the disabled – they have no costing details for it from the PBO, and that is largely intersecting with provincial benefits programmes, and one economist who looked at the number said it’s way too low. Their revenue projections in particular are very, very rosy, and an expert I reached out to said it’s impossible to get that money, especially in the first two years, because of the amount of administration necessary to capture it. So that blows their projections out of the water. But wait, they will say – we got the PBO to cost it and got his stamp of approval! But he was working with their inputs and assumptions, and implementation matters (which is why he shouldn’t be costing platforms in the first place, because implementation involves political decisions). If they tell him that revenues can start in the next year, he has to operate on that assumption, even though it’s not possible, so they get figures that won’t bear out in reality, but they can wave them around and say they have a stamp of approval. It’s a problem, and it’s another example of how parties play games with promises that they don’t spell out how they’ll implement, which increasingly means that those promises are hollow (and yes, all parties are guilty of this).

https://twitter.com/AaronWherry/status/1436825763806957574

Meanwhile, on the subject of the Conservatives’ “carbon savings plan” and the points they claim you’ll accumulate in lieu of a tax rebate, here’s energy economist Andrew Leach on how impossible that will be to implement. It’s a long thread, but a worthwhile one, because once again, implementation matters. And this is clearly a plan that there is no intention to actually implement (especially considering that their costing document claimed its costs would be negligible – another fiction).

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