Tag Archives: The Senate

Roundup: Share sales and the sputtering outrage cycle

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As the full-blown moral panic into what financial assets cabinet ministers own continues, we see the news that Bill Morneau has indeed sold off his shares in Morneau Shepell, for what it’s worth. Not that it will stop any of the chatter at this point – the outrage cycle continues to exhaust itself, and until some new outrage crops up, we’ll continue hearing about this as it sputters and runs on fumes.

And hey, why not find out what every other cabinet minister owns? The Star did, and I’m not really sure how edifying this whole exercise was in the end. Never mind that once again we’re reaching the point of absurdity with all of this. Are there problems with the ethics and conflict of interest legislation? Probably. Were loopholes identified previously? Yup. Did MPs do anything about it then? Nope. Do they really have an interest in closing any of them now? Probably not (and no, the NDP motion that the government voted down was not indicative of anything because it also contained a bunch of other stuff, as these things so often do, that was designed to embarrass Morneau and the government had they voted for it. Because in politics, we can’t have nice things). And once you add in all of the tall poppy nonsense, we’re left with the same tiresome moralizing that we’re always left with when it comes to “perceived” conflicts that aren’t actually there but which were invented out of whole cloth with the convenient lining up of “facts” that don’t pass the bullshit filter. And then we complain that nobody wants to get involved in politics.

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Meanwhile, the Liberals are pointing out that Andrew Scheer has assets in Real Estate Limited Partnerships that are really only for the wealthy. Predictably, the Conservatives cite that he’s worth only a fraction of Morneau, and then cries of hypocrisy flew from both sides, and the outrage cycle continues to chug along.

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Roundup: Abandoning a fiscal anchor

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In yesterday’s National Post, economist Stephen Gordon cast a critical eye on the fall economic update and the government’s excuse for running deficits, and the decision to abandon the fiscal anchor of balanced budgets in favour of a declining debt-to-GDP ratio. And rather than worrying about the non-existent debt-bomb, Gordon is mostly looking for answers why the policy shifted post-election. Fair enough. (He also does the math on how much more a government can spend by shifting the fiscal anchors like the government did here).

Enter fellow economist Kevin Milligan, who digs through and finds an answer. Enjoy.

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Roundup: Not headed for a debt bomb

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In light of the fall economic update, and the myriad of concerns about the level of the deficit and lack of a plan to get to balance in the near term, economist Kevin Milligan took us all to school over Twitter yesterday. The main message – that it’s not 1995, and we can’t keep talking about the deficit as though it were.

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Later on, Milligan took exception to the notion that the government has backtracked on their tax reform promises and made the situation worse. Not so, he tells us.

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So there you have it. Armchair punditry on deficits or tax changes (even from some economists) doesn’t necessarily stack up.

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Roundup: Is there meaning to staff changes?

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The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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Senate QP: Assurances that there is a comprehensive plan

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While the fall economic update was getting underway in the Other Place, justice minister Jody Wilson-Raybould was over in the Red Chamber to answer questions that senators may have of her. Senator Larry Smith led off, raising Bill S-3 and the Senate’s proposed amendments to it, reminding her of a speech she made in 2010 about doing away with all inequities in the Act. Wilson-Raybould said that she was aware and noted that they did have a deadline of December, but that Ministers Bennett and Philpott had a comprehensive plan in place. Smith rose on a supplemental to reiterate the question about the plan, and Wilson-Raybould again noted that they did have a plan to eliminate inequities.

Senator McIntyre asked about the rejection of mandatory minimums under C-46 on impaired driving. Wilson-Raybould said that while she noted the seriousness of impaired driving, mandatory minimums were not a deterrence, but mandatory screening was, which is why they were going ahead with it.

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Roundup: Morneau’s pabulum problem

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Oh, Bill Morneau. After weeks of rough treatment, and the last week most especially, it’s no wonder that he was getting a bit testy when the questions kept coming up yesterday. That he snapped at a journalist just got our backs up because how very dare he, and so on. But it’s hard not to see how this is almost entirely a mess of his own making. Not just the fact that he didn’t divest his shares earlier, which make of that what you will – he was still within the law. I find myself ambivalent to the sanctimonious cries that he needs to appear to be whiter-than-white because that’s a Sisyphean task for which there will never be satisfaction short of being reduced to sackcloth and ashes, especially compounded by the oh-so-Canadian reflex of treating him like a tall poppy who must be brought down to size. The Conservative line that he’s a rich guy who can’t understand the woes of the working guy is certainly suffused with that narrative, but that’s also populism for you.

For me, the bigger problem is that so much of this is about the fact that it all goes back to this government’s particular communications problem of responding to everything with a spoonful of pabulum rather than taking their criticisms head-on. When the Conservatives launched into outright falsehoods about the proposed tax changes, Morneau didn’t fight back – he mouthed the same platitudes and shovelled more pabulum in our faces, and the myths metastasised until he was playing defensive when there was no reason for him to. That the CRA bungled their release of the folio on employee discounts just fed into this same problem, and again, the government couldn’t communicate their way out of a wet paper bag there either, sticking to the pabulum lines of not taxing the middle class rather than actually explaining that no, these are very specific circumstances that won’t actually capture retail workers. And given the current questions around his holdings, there are certainly better ways that he could have communicated decisions that were made (including why a blind trust would not have made sense, for example), or why the various conspiracy theories about how legislation or tax changes he’s proposing are apparently for the benefit of his company are patently absurd (because hey, attacking the messenger is always the sign that you’re on the winning side of the argument). But nope. Pabulum. And you would hope that maybe, just maybe, the government will learn that this is not the way to go about communicating, but I doubt it. They’ll probably hold tight and weather this manufactured outrage for another week or so until something else distracts the opposition, and the outrage cycle will start up again over something else, for which the government’s solution will be yet more pabulum. It’s tiresome from all sides. But this is what politics has devolved into.

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Meanwhile, Andrew Coyne castigates Morneau for his poor judgment, while Colby Cosh thinks of him fondly as a great quasi-Albertan for using a numbered company registered in that province, paying taxes there and giving back to the province’s economy.

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Senate QP: Jim Carr disputes your questions

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With the cancellation of the Energy East pipeline by its proponent still fresh in the minds of many Canadians, it was natural that an appearance by Natural Resources Minister Jim Carr in the Senate would prompt a lot of questions. It did not disappoint. Senator Larry Smith led off, wondering about the “evaporation” of energy projects in Canada while the Americans continued to ramp up their own projects. Carr disputed that there was an evaporation, and spoke about the approval of three projects that would create 27,000 jobs and that while they recognized the need to reform the regulatory process, they were approving more projects than they were rejecting. On a supplemental, Smith asked what could be done to better advance Canadian energy security through things like pipelines, and Carr disputed a bit with how it was worded, and noted that the government has certain responsibilities, and upon seeing some shaking heads across the aisle, Carr laid out conditions that have changed since the Energy East pipeline was first proposed, including the price of oil and new approved pipelines including Keystone XL.

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Roundup: The good news rollouts

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The Liberals’ planned rollout of all kinds of “good news” announcements for Small Business Week – reductions in the small business tax rate by 2019, and changes to their planned amendments to Canadian-Controlled Private Corporation (CCPC) rules to crack down on those who use them to avoid paying taxes – were very nearly overshadowed by a Globe and Mail article that cried out that Bill Morneau hadn’t put his shares into a blind trust after all. As it turns out, this was largely a non-story – Morneau followed the advice of the Ethics Commissioner, who felt that because of his particular share structure that he wouldn’t need a blind trust but an ethics screen instead – though there are some added complications around it (see Glen McGregor’s tweets). This after the “revelation” about Morneau’s French villa – not that he had forgotten to disclose it, because he had already – just that he didn’t disclose the particular ownership structure, which is a French corporate structure not uncommon with the ownership of non-commercial real estate, known as a Société Civile Immobilière. Again, a non-story that the opposition (and certain media outlets) pounced upon, trying to make a bigger deal out of them than was merited.

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And then there was the Prime Minister’s tax cut announcement at that Stouffville restaurant, and the somewhat bizarre behaviour by Trudeau in the Q&A period after where he tried to answer questions directed at Morneau (no doubt trying to keep control of the message and not let it get railroaded by the non-stories about his villa and shares, but it came off as smarmy). And back in Ottawa, his backbench critics seemed mollified by the morning’s announcements, so we’ll see if that holds in the days ahead. (Not to be outdone by all of the Liberal press shenanigans, Andrew Scheer walked out on a press conference when asked about his former campaign manager’s association with Rebel Media.)

Meanwhile, neither Chantal Hébert nor Andrew Coyne are impressed with the theatrics of this government’s attempt to change the channel on the pummelling they’ve received.

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Roundup: No constraints, please

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After Kady O’Malley suggested last week that the Senate adopt some kind of formal mechanisms to prevent the Senate from indefinitely delaying private members’ bills so that they die on the Order Paper, Senator Frances Lankin wrote this weekend that as much as she wants to see some of those bills get passed, she has no desire to adopt any mechanisms that would constrain debate in the Senate. And while I’m sympathetic to O’Malley’s point to an extent, I think Lankin has it right – and it’s good that she said something, because a lot of the newer senators look to her for guidance given that she is a senator who came into the job with previous legislative experience. The reasons why those bills can face delays are varied, but sometimes it’s legitimate that they do, and I think it would be a mistake to put in a mechanism that would essentially force those bills to be passed – especially as that would create an incentive for governments to start trying to pass difficult agenda items as PMBs (as the Conservatives tried to do on more than a few occasions when they were in power).

Meanwhile, Conservative MP Todd Doherty took to YouTube to bully senators into passing his private members’ bill. This is one of those kinds of stories that bothers me because nowhere in the piece does it mention who the sponsor of the bill in the Senate is, nor does it try to reach out to them to ask them about state of the bill and what efforts they are taking in order to see it passed, and that’s a detail that matters. If it is indeed waiting to come up for debate in committee, that’s not out of the ordinary considering that usually committees are bound to deal with government legislation before they deal with private members’ bills, and they’re the masters of their own destiny. Never mind that the bill itself is of dubious merit – these kinds of PMBs that demand “national strategies” for everything under the sun, no matter how worthy the cause, tend to be little more than feel-good bills that have little impact other than moral suasion, because they can’t oblige a government to spend money, and they figure that demanding a national strategy will push a government to take action. They don’t, but it’s all about optics, and Doherty is really pushing that optics angle.

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Roundup: The orgy of unforced errors

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Word has gone out to Liberal MPs that there will be a mandatory caucus meeting first thing on Monday morning – a rarity given that mostly they wait until Wednesdays (especially as it makes it harder for those MPs who are from remote ridings to get there). The only thing that we know so far is that both Bill Morneau and the PM will be there, and the speculation is that it will outline the changes to their proposed tax changes based on consultations, but one can also assume that this is going to be about the ongoing self-harm that the government has been inflicting on itself over the various tax stories.

And what self-harm it’s been. On Friday, it was revealed that Bill Morneau forgot to declare that he also has interest in a company that owns a villa in France, and you can bet that the Conservatives took to this like a pack of dogs to fresh meat. This after the way that they refused to punch back against the gross distortions being promulgated about the proposed changes to the rules around Canadian-Controlled Private Corporations (CPCCs), or the refusal to provide real clarification around the CRA “folio” on certain employee discounts, preferring in each case to mouth the pabulum about fairness for the middle class. (Cute fact: the CRA “folio” has been up for months, was briefly discussed in the Commons finance committee last month, but only turned into a major crisis after a piece in the Globe and Mail. Because that’s now the Opposition Research Bureau, and it’s where the Conservatives take their daily outrage marching orders from, too lazy or incompetent to do their own research anymore).

And then there’s the added outrage over the fact that the government spent $221,000 on the cover of this year’s federal budget. Oh, how terrible and outrageous, and look at how plain the cover of Paul Martin’s budgets were, and then the Conservative chorus chimes in and makes these snide remarks about comparing the spending priorities between the two governments – completely ignoring the fact that they chose instead to spend even more thousands of dollars staging photo ops off of Parliament Hill to make announcements or give speeches where the Liberals will do it in the House of Commons, where they should be. Lindsay Tedds, mind you, offered up a sort of defence for why the Liberals may have chosen to go with this particular route on a budget design, which those in the throes of a paroxysm of cheap outrage, remain blinkered about.

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So I guess we’ll see what emerges from that caucus meeting. Will they emerge with some better means of communicating their plans that won’t just involve more pat phrases about the middle class, and would maybe let them engage in some actual, authentic conversations that will push back against some of the nonsense being thrown around? Or will Trudeau lay down the law on his restless backbench and double down on the talking points that blandly say nothing at all, while they continue to let the Conservatives set the narrative using their own particular brand of spin, misdirection, and distortion? I guess we’ll have to see.

Meanwhile, here’s Colby Cosh raining down hellfire on that $210,000 budget cover, Chantal Hébert on the fire that Bill Morneau is taking, Andrew MacDougall on the Liberal’s inability to communicate their changes, and Paul Wells sees the continued litany of unforced errors as putting the government in danger of alienating the middle class that it so vocally venerates.

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