Roundup: Independence and intense discussions

As we’re still discussing the SNC-Lavalin/Jody Wilson-Raybould issue, we’ll start off with an interview with the Director of Public Prosecutions on her independence from political pressure, and why she opted not to enter into a deferred prosecution agreement with SNC-Lavalin, as well as why their quest for judicial review is foolhardy. Elsewhere, “senior officials” say that intense discussions with Wilson-Raybould on the SNC-Lavalin issue did take place, but that there’s nothing wrong with that. David Lametti took to television to say that he doesn’t see any evidence to warrant the justice committee’s investigation, but it’s up to them to decide. It also sounds like the Liberals on the justice committee are going to turn down the motion to launch an investigation, so expect more howling about this over the week to come.

While we wait for the committee, Andrew Scheer has written to the PM to demand that he waive solicitor-client privilege with Wilson-Raybould, under the ham-handed threat that failure to do so means that he has something to hide. Scheer, it has also been noted, also met with SNC-Lavalin lobbyists on their criminal charge issues and deferred prosecution agreements, but Scheer won’t say what his positions on them are.

Amidst this, there are a few more anonymous Liberal voices grousing about Wilson-Raybould in the media now, saying that she was more about herself than the team, and that she only ever showed up to Indigenous caucus once.

https://twitter.com/robert_hiltz/status/1094736733609095168

https://twitter.com/robert_hiltz/status/1094738844275097600

https://twitter.com/robert_hiltz/status/1094750943793442816

Meanwhile, University of Ottawa law professor Craig Forcese walks through the public law principles at stake, and the fact that we don’t really know just what is being implied because the terms used interchangeably in the original Globe story all mean different things, which makes the nuance of this situation inherently tricky. Keeping Forcese’s analysis in mind, Susan Delacourt hears from her “senior officials” that the PM still has confidence in Wilson-Raybould and that he plans to meet with her before the next Cabinet meeting, and they continue to dispute the account in the Globe and Mail, citing that if they had attempted undue influence that she would have resigned out of principle, and she did not.

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Roundup: Too big to prosecute?

So, yesterday was a bit of a day, wasn’t it? To recap – the Globe and Mail published a piece that cited unnamed sources that the PMO had leaned on then-justice minister Jody Wilson-Raybould to direct the Director of Public Prosecutions to abandon the prosecution of SNC-Lavalin as part of an ongoing corruption trial (related to Libyan contracts) so that they could take a deferred prosecution agreement instead – basically a plea deal administered by the courts, which the Director had thus far refused to do. (Note: For the Attorney General to make such a direction to Public Prosecutions, it must be done publicly and published in theCanada Gazette. This is not something that can happen on a whim). The story goes that Wilson-Raybould refused, and coincidentally she was shuffled from the post weeks later. Justin Trudeau refuted this, but because he strictly said that he and his office didn’t direct Wilson-Raybould or now David Lametti on this file, everyone parsed that as not saying he didn’t apply pressure, only for Lametti and every other Liberal put out on the file later in the day to add that he didn’t direct or put pressure on them. For what it’s worth.

https://twitter.com/btaplatt/status/1093545282858614785

Now, I have questions. If the PMO applied this pressure, it would be a Very Bad Thing. And we don’t know if they did or didn’t. However. The Globe story gets out the red ball of yarn and starts pinning lines between different items on the conspiracy map, and some of those items I have a problem with being there. One of those items is that the government passed amendments to the Criminal Code that enabled there to be deferred prosecution agreements back in the spring, and one of the “sources” that the Globe taps insists that this was done solely to benefit SNC-Lavalin. And I have a problem with that. Why? Because I wrote about those provisions back when they were being debated, and I spoke to a number of lawyers who specialise in white collar crime. If this had been solely for the benefit of SNC-Lavalin, I would have expected them to say that this makes no sense in the bigger picture, but they didn’t. Instead, they said that these changes barely had Canada keeping up with other comparable jurisdictions (and in fact, some said that they still kept us behind). The consensus was that these kinds of changes were long overdue. And there is a record of government consultations about this issue that produced a report. For this to be a “direct line” doesn’t hold any water. “Oh, but they lobbied!” Of course, SNC-Lavalin lobbied. It was in their interest to do so. That’s not a revelation, nor is it any indication that the government actually listened to them. They’re also trying to get judicial review of Public Prosecutions’ decision not to offer them a deferred prosecution, but that doesn’t mean they’ll get it either. We also need to remember the size of SNC-Lavalin, and how many thousands of jobs and billions of dollars they have on the line, particularly in Quebec, and if any party thinks that they’d “get tough” on them with that on the line, they’re deluding themselves. (This is part of the problem with oligopolies in Canada).

https://twitter.com/robert_hiltz/status/1093504225944965122

There is also the point about Wilson-Raybould in this. Many people, pundits included, are suddenly treating this story as some kind of exoneration for her demotion, and ignoring the fact that there were very real reasons for why she was replaced, many of which had to do with the fact that she wasn’t managing her office competently, and she was making questionable staffing choices in her own office. I have my own unnamed sources in the legal community who can point to her incompetence, and this is now being swept under because she’s suddenly being hailed as a hero – which is another reason why I have some suspicions about the source of this story (and why she hasn’t been in a hurry to offer any denials, only a “no comment”). The Globe story and its reporters are also trying to draw a line in her post-shuffle release about the justice system being free from political interference, but again, this was also taking place in the backdrop of the Meng Wanzhou extradition affair, and questions about the rule of law clanging around, so again, I have doubts that there is a direct connection.

So what next? Well, we can expect another few days of communications incompetence from Trudeau and the government because that’s what they do every single time something blows up on them, and eventually they’ll be forced to be more candid, but by then, everyone will have parsed everything to death and filled in the gaps with their own wild theories. Because this is a government that can’t communicate their way out of a wet paper bag, and they make things worse for themselves every single time. There are demands for a police inquiry or a full public inquiry, but I have my doubts that Trudeau would call one so close to an election – but stranger things have happened.

Meanwhile, Chris Selley points to the shocking levels of cynicism that this whole story displays, while Susan Delacourt notes that the silence around Wilson-Raybould is allowing the “ring of truth” to overshadow a more complicated actual truth (and also hints to possible morale problems in the Liberal caucus). Paul Wells offers some withering analysis of what’s gone on with this, and the way this is reflecting on certain senior PMO staff, which could be a growing problem.

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Roundup: Scheer’s own personal Brexit idea

You may have heard the Conservatives making a big push over the past couple of weeks about promising that they would bow to Quebec’s wishes and let them have a single tax return (as in, surrender the federal authority to collect income tax in the province, as opposed to Quebec returning to the system that every other province uses by which the federal government collects all taxes and turns over their provincial share). While the Conservatives portray it as a simple administrative change, and that there wouldn’t even need to be any job losses – just put those 5000 CRA employees in Quebec to work on tax evasion! – it’s really a lot more complicated than that. While Alan Freeman wrote about the history and why it’s naked pandering to Quebec, tax economist Kevin Milligan walks through the complexity, and quite tellingly, notes that this is a Brexit-like proposal from Scheer – bold idea, no proposal of how to implement it. And yes, that is a problem.

https://twitter.com/kevinmilligan/status/1093194511260442624

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https://twitter.com/kevinmilligan/status/1093259900912775168

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Roundup: Polling on magical parties

I am not a big fan about reporting on polls, which makes me particularly aggrieved that we saw a few stories today about the latest Angus Reid poll that postulated a hypothetical “Western Canada Party” and how that would skew the vote for the established parties. Why a poll like this is especially irksome is because when you invite people to vote for a hypothetical that has no leader, or policies, or structure, or even raison d’être, then it simply becomes a repository for unicorns and pixie dust. You’re inviting people from four fairly disparate provinces to join forces, when you have separate grievances with the federal government, and you think you’d make a coherent political force out of it? Really? What exactly is anyone supposed to take from this message, other than people have vivid imaginations?

Of course, the idea is pretty ludicrous on its face – it could never be anything other than a protest party that couldn’t aspire to power by sheer mathematics – and it builds on some particular mythology around the Reform Party that I’m not sure necessarily reflects history. You have people like Deborah Grey who hears this and just sighs about the notion about splitting the Conservative party again (though there is plenty to debate about how we qualify the “reunification”). Should Andrew Scheer read this poll and take it as a warning that his Western base thinks he’s pandering too much to Quebec? We’ve already seen him embrace some outright tinfoil hattery because he’s been spooked by Maxime Bernier and losing those votes – will he crank up his faux-Saskatchewan credentials to eleven for the rest of the election to keep pretending that he’s one of them to bash away at the federal government? Will we hear big and small-c conservatives double down on the faux mythology of Alberta’s conservativism (and if you haven’t yet, please do read Jen Gerson’s exploration of that mythology here). “Ooh, but protest vote!” people will handwave. But BC and Alberta would be protesting against different things – and different parts of BC would have different protests at that. Grievance-mongering is not a path to sustainable politics. Polls like this just confuse issues and make people think that there are magic wands – or in this case, magical political parties that could somehow cure all of their woes by forcing Ottawa to take them seriously, somehow. But that’s not real life, and politics is hard work, which is not something that this kind of polling reflects.

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Roundup: The C-69 battle begins

The Senate’s Energy and Environment committee is slated to begin their examination of Bill C-69 today, which promises to be a right gong show as the Conservatives have been pledging to do everything they can to kill the bill, which could mean attempting to delay things as long as possible – which is one reason why they have been aggressively pushing for the committee to hold cross-country hearings. This is being pushed back against by the government whip – err, “liaison,” and the leader of the Independent Senators Group, but that hasn’t stopped the agitation. Conservative Senator Michael MacDonald went so far as to pen an op-ed in the National Post that says the prime minister is trying to “keep the Senate from the people,” which is absurd on its face considering that Trudeau’s hands-off policy on the Senate is one reason why the Chamber is in a bit of disarray at the moment.

Meanwhile, there will be an effort from non-Conservative senators to see amendments to the bill, which could create its own delays as the debates and votes on those amendments could get drawn out for weeks, while the parliamentary calendar ticks down. (For reference, I wrote this piece last week, talking to lawyers on both the environmental and proponent sides of the issue about the kinds of amendments they would like to see). The bill has its issues, no doubt, but the rhetoric around it has reached hyperbolic proportions, and much of the opposition we hear has become based on myth rather than fact or analysis. That’s going to make the Senate’s deliberations more difficult in the weeks ahead, as people will be howling about non-existent segments of the bill, and we’ll hear the daily demands in QP that the bill be withdrawn, never mind that the current system isn’t working and has been the subject of numerous court challenges. I suspect this will become a very nasty fight before the end of spring.

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Roundup: To travel or not to travel?

There’s a battle brewing in the Senate over Bill C-69, and some of it seems like a concern trolling on the face of it. Given that the bill – which aims to reform the environmental assessment process – is contentious among certain sectors, and has been subject to a misinformation campaign by the Conservatives (who have dubbed it the “no more pipelines bill” based on zero actual evidence), there is a push by Conservative senators to have the Senate’s energy and environment committee take hearings on the road. You know, to hear directly from those affected. The bill’s sponsor, government whip – err, “liaison,” Senator Mitchell, resists that, and it looks like he’s got the leader of the Independent Senators Group, Senator Woo, more or less backing him, Woo saying that travel is unnecessary when you can videoconference.

The Conservatives are looking to delay the bill, likely to death, given that the number of sitting days in this parliament is rapidly dwindling. Never mind that many affected industries are behind the bill, or that most others say that they would rather see amendments at this stage than a whole new process because that just increases the uncertainty (and it should be pointed out that the current system, which the Harper government implemented, has not worked and has resulted in a number of court challenges). And to add to that fact, the senator who chairs the committee is inexperienced (and many will openly say that she doesn’t know what she’s doing), and the Conservatives on that committee haven’t been cooperative in getting the hearings up and running because they are protesting the fact that she appears to be taking dictation from the Government Leader in the Senate – err, “government representative,” Senator Harder. So, this is all turning into a giant mess. And did I mention that the number of sitting days is rapidly dwindling? I suspect this is going to get ugly.

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Roundup: Election interference protocols

The federal government unveiled their plans for dealing with election interference in future elections, and tried to create a system that keeps it within the realm of the civil servants and away from Cabinet (who would be in caretaker mode during the writ-period) and politicians in general. The protocol (infographic here) would see that the heads of national security agencies brief the Clerk of the Privy Council, the National Security and Intelligence Advisor, and the deputy ministers of Justice, Public Safety, and Global Affairs, who would then determine if there is a substantial threat to a free and fair election, at which point they inform the PM, party leaders, and Elections Canada before they hold a press conference to inform people of the incident.

In response, the Conservatives say it doesn’t go far enough, because they are on tear about foreign funding and third-party campaign financing, while the NDP say they want the Chief Electoral Officer involved (though I’m not quite sure what he would do in that kind of situation, because he deals with administering the election and not things like strategic “leaks” to media or propaganda). They also want social media companies to do more, and they are apparently reaching out to the government over this, but, well, their records have a lot to be desired in these kinds of situations.

Meanwhile, here’s Stephanie Carvin with what she was looking for beforehand:

https://twitter.com/StephanieCarvin/status/1090623966895587330

https://twitter.com/StephanieCarvin/status/1090623974957039621

And what we saw in the announcement:

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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

https://twitter.com/cfhorgan/status/1090326614536146944

https://twitter.com/robert_hiltz/status/1090333969319641089

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.

https://twitter.com/moebius_strip/status/1090370788694192128

https://twitter.com/robert_hiltz/status/1090361590858371075

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Roundup: Sixty-nine day countdown

The House of Commons comes back on Monday, in the new chamber in West Block, and with an election on the horizon. That means it will soon be a frantic scramble to get bills passed before June arrives, and there are a lot of constituency weeks between now and then. The count is sixty-nine sitting days officially left on the calendar, but from that you need to remove a prescribed number of opposition-controlled Supply Days, plus the budget. Add to that, more days will need to be subtracted for bills that the Senate will send back to the Commons – and there will be bills they will send back, and that will eat into the calendar – especially in the final days of the sitting in June, when everyone wants to go home.

The agenda still has a number of big items on it, with Bardish Chagger having identified their poverty reduction bill, the reform of the Divorce Act, and the bill to eliminate solitary confinement in federal penitentiaries – and that could prove the most difficult because there have already been judges weighing in on what they’ve read and they’re not impressed. That could set up for more back-and-forth from the Senate if they don’t make enough of the big fixes to that in the Commons sooner than later.

And the Senate really is going to wind up being the spoiler or the wildcard in all of this. They’re already underwater on their Order Paper, and the Chamber will be late in returning from the break because of the construction delays, and there has been very little movement from most of the committees on getting back up and running now, in order to make progress on the bills that are before them. (In one case, where the bill is highly contentious, the Conservatives have not been cooperating because the Independent senator who chairs the committee has basically been doing the bidding of the Government Leader in the Senate – err, “government representative,” Senator Peter Harder, so they wanted to send a message). The national security reform bill, sat at second reading for the entire fall sitting when it should have spent far more time at committee given how extensive and far-reaching the bill is. They need some serious adult supervision to get them back on track, and I’m not sure where that’s going to come from, so we’ll see how this plays out over the next few weeks.

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Roundup: A subdued oil price shock

The Bank of Canada decided to hold on raising interest rates yesterday, but there were some very interesting things in the accompanying Monetary Policy Report that haven’t been widely reported on, and much of that was the whole section in the report on the state of the oil industry in Canada. (It’s pages 9 and 10 of the report – PDF here). Essentially, for all of the talk about economic doom for the current state of oil prices and the price differential, this current price shock is affecting the Canadian economy at a quarter of what it did in the 2014-2016 price shock, and there are a couple of reasons for that. One of them is that the oil sector is no longer as big of a part of the Canadian economy as it was then – it’s currently worth 3.5 percent of our GDP, while it was six percent just a few years ago. That’s fairly significant. As well, after the previous price shock, most energy firms are better equipped to handle the low-price environment thanks to innovation, improved efficiency and the fact that they already cut overhead costs. Add to that, our low dollar is providing a buffer effect because it supports non-energy exports and employment. In other words, while it’s softened the economy a little over the past quarter and the current one, this is projected to be shrugged off as the rest of the economy continues to pick up steam, and we’re likely to continue growing at a greater pace, because the rest of the economy continues to be running close to capacity. Even some of the areas of potential slack that have been identified, such as lower-than-expected wage growth, are mostly because the situation in Alberta is dragging down the national average. So perhaps it’s not all doom after all.

One other particular note from the morning was that Bank of Canada Governor Stephen Poloz made a couple of remarks around his hometown of Oshawa, and how it’s managed to weather previous plant closures and how its resilience means it will likely weather the pending closure of the GM plant as well as it did previously.

Meanwhile, Kevin Carmichael walks us through the morning’s decision, and some of the reaction to it.

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