QP: Being too cute on parole and Quebec

While Justin Trudeau was in town today, he was nevertheless absent from QP, for whatever the reason. Andrew Scheer led off, and he read a question about whether the government would support their Supply Day motion on committee study of the incident of the murder of a sex worker by a prisoner on parole. Bill Blair reminded him that they have ordered an investigation, and they should wait for answers before jumping to erroneous conclusions. Scheer then read a demand for parole board officers to get sexual assault training as the government plans for judges. Blair reminded him that the judges bill is important, but there was an investigation ongoing. Scheer demanded to know if the parole board officers who made that decision were still hearing cases, and Blair circuitously stated that they weren’t while laying out additional facts. Pierre Paul-Hus demanded the training for parole board officers again in French, got the same response from Blair, and Paul-Hus then demanded that the prime minister fire the parole board members, and Blair responded that the motion contains erroneous facts, but that the government would support it anyway. Yves-François Blanchet was up for the Bloc and, thinking he was clever, stated that if the government points to François Legault’s support for the New NAFTA, would they also support his demand for a single tax return form for Quebec, to which Diane Lebouthillier told him no, that was not going to happen. Blanchet then demanded the government respect the Quebec “secularism” bill, and David Lametti reminded him that groups were challenging it in the courts. Jagmeet Singh was up next for the NDP, and demanded the government stop court challenges of compensation for First Nations children, to which Marc Miller started that they would have a compensation model to propose by February 21st. Singh then raised the strikes in Regina before demanding National pharmacare and dental care, for which Patty Hajdu reminded him they were working on it, and that she welcomed his suggestions.

Continue reading

Roundup: Expecting a regulatory overhaul

I’ve been keeping my eye on the Orphan Well issue in Alberta from a distance, somewhat in part because of everything I learned about the problem when writing about the Supreme Court of Canada challenge around how the obligations to clean them up interacted with federal bankruptcy law. As it turns out, the Supreme Court said no, companies can’t offload these environmental problems in order to salvage other assets, so Alberta was left with a problem as the huge problems with the way their regulatory system operates has been left with a very big problem. The province’s energy regulator (which has long been accused of being captured by the industry) is finally admitting that their system for determining liabilities has been flawed all along, and the province is saying they’ll be releasing new regulations soon, but we’ll have to see how much more stringent they’re going to be with the provincial government constantly worried that they’ll unduly harm the industry in its weakened state (which is another reason why Kenney has been pressing for those so-called “equalization rebates” from the fiscal stabilization fund in order to put toward remediating orphan wells – because why not get the federal taxpayer to deal with the remediation of environmental liabilities that the province deliberately under-funded in order to keep the good times rolling (and their tax base unsustainably low).

Meanwhile, the number of smaller oil and gas companies who haven’t been paying their taxes to municipalities or rents to farmers and landowners is climbing, leading to a great deal of frustration in the province, and there are calls essentially for these smaller companies to be allowed to go bankrupt so that larger ones can take them over, and they’ll be better capitalized to deal with their environmental liabilities, as happened in Texas several years ago. Then again, seeing as the provincial government and their federal counterparts seem to be so much more beholden to the smaller oil and gas players than they are the big ones (for whom they will deride as being big corporations, because don’t forget they’re right-flavoured populists), so we’ll see how far that line of argument gets them.

Continue reading

Roundup: Congeniality by way of TV

Maclean’s has a profile of the TVO series Political Blind Date, which pits politicians from rival parties – sometimes from the same level of government, sometimes from different provinces – in situations that help them understand each other’s viewpoints and helps to break down the partisanship barriers. And this is great – but what it was missing was any particular context as to why partisanship has grown to such toxic levels in the first place, and that has a lot to do with parliaments and legislatures rejigging their rules to be more “family friendly.”

Until the early 1990s, parliament used to hold evening sittings three nights a week. At six o’clock, the House would adjourn, and everyone would head upstairs to the Parliamentary Restaurant (aided by the fact that there was a dearth of restaurant options in the area, and liquor laws were such that you bought a bottle of booze that was kept behind the bar in the restaurant with your name on it). MPs would eat together, drink together, get to know one another across party lines, and it developed a sense of congeniality, and at eight o’clock, they’d head back to the Chamber and debate for a couple of more hours. The arrival of the Reform Party and the move to end evening sittings to be “family friendly” ended the congeniality and cross-party opportunities to just be parliamentarians together. With no impetus to break bread together, caucuses grew insular, and it became easier to treat other parties as the enemy rather than just having opposing points of view. Now, it’s rare that cross-party friendships occur unless there is committee travel that helps MPs bond, but that’s not very often. It’s disappointing that we are now relying on a TV show to build these relationships which used to be part and parcel of being an MP.

What’s particularly sad is that this kind of thing is now infecting the Senate, which used to be a far less partisan place than the House of Commons, and for which many senators have formed close and long-lasting friendships across the aisle. They still have more of the convivial culture that the Commons did, but that too is fading as the new Independents, eager to burn things down and declare anyone with partisan affiliation to be tainted and in some cases the enemy (particularly the Conservatives), it is polarizing the Chamber, and souring the mood therein. For a move that was supposed to lessen partisanship, Trudeau’s brilliant attempt to reform the Senate is doing the opposite – just one more unintended consequence that nobody bothered to consider, and all Canadians suffer as a result.

Continue reading

Roundup: Competing economic illiteracy

As someone who covers a fair bit of economic stories, the absolute inability of this government to come up with a definition of “middle class” is exhausting – and those of you who read me regularly will know that I will instead use Middle Class™ as a means of showcasing that it’s a meaningless branding exercise. And lo and behold, when challenged to offer up a definition during one of his year-ender interviews, Justin Trudeau said that “Canadians know who’s in the middle class and know what their families are facing and we focus more on the actual issues.” And I died a little bit inside. For a government that keeps insisting they’re all about data, and evidence-based policy, their refusal to offer a meaningful measure of what their core narrative is all about is entirely about branding. By not offering a definition, they don’t have to exclude anyone – because everyone believes they’re middle class (whether they had ponies or not). And more to the point, by not offering a metric, they can’t measure whether they’ve succeeded for failed – it’s only about feelings, which makes their talk of data and evidence all the more hollow.

And then there’s Pierre Poilievre, who, when challenged about the definition of a recession, makes up a bullshit response and thinks it makes him clever. It’s as economically illiterate as the Liberals’ Middle Class™ prevarication, but the fact that the Conservatives keep cheerleading a “made-in-Canada recession” that no economist sees on the horizon, and which they can’t even fit into the actual definition of what a recession is (two consecutive quarters of negative GDP growth) sets a dangerous path of spooking markets. It’s all so stupid, and reckless, but the party’s current path of pathological dishonesty makes them blind to the danger of it all.

On perhaps a related note, Trudeau’s director of communications, Kate Purchase, is leaving to become a senior director at Microsoft, and good luck to her – and she really is one of the nicest staffers and was actually helpful to media in stark contrast to the Harper crew. But I also hope that perhaps this means that her replacement can start ensuring that this government can start communicating its way out of a wet paper bag, because cripes, they have done themselves zero favours over the past four years.

Continue reading

Roundup: Fiscal update and actuarial context

Finance minister Bill Morneau released his fall economic update yesterday, and it showed that while the economy was doing well – fairly strong growth, very strong job creation (November’s numbers notwithstanding) and wage growth – the deficit was going to get a lot bigger unexpectedly. The reason for it, however, was largely ignored by all of the commentariat, both media and partisan, because the kneejerk response in Canada about any finance story is about the size of the deficit, end of story. The real reason – that low interest rates had forced a hefty actuarial adjustment for government pension plans – was inconvenient for them to force a narrative onto, so they just ignored it and clutched their pearls some more, crying “The deficit! The deficit!” and the Conservatives continued to cheerlead a “made-in-Canada” recession by cherry-picking some very selective economic data that was to the exclusion of the broader trends, because narrative. Here’s economist Kevin Milligan to explain some more.

https://twitter.com/kevinmilligan/status/1206632527244300288

https://twitter.com/kevinmilligan/status/1206633499391709187

https://twitter.com/kevinmilligan/status/1206634678662250496

https://twitter.com/kevinmilligan/status/1206635967479566337

https://twitter.com/kevinmilligan/status/1206637216039964672

https://twitter.com/kevinmilligan/status/1206639670798340096

I would add that while the Conservatives like to rail about how our unemployment figures compare poorly to other countries, it’s a bit of a fool’s errand because we don’t all measure unemployment the same way, and not all of our economies work the same way. Canada has had record low unemployment in recent months, to the point where economists say we are have been at what is essentially “full employment” – in a statistical sense, not to dismiss that there are regions where it’s still a problem, but essentially there’s not a lot of room for more job growth in the economy. But hey, why let reality get in the way of the narrative, right?

In terms of analysis, John Geddes delves into the notion of “endless deficits” and finds that, shockingly, it’s not a cut-and-tried issue, but the real issue is complacency. Certain bank economists think that because the shift in the deficit is on pension obligations, it could force the Bank of Canada to act sooner if there were an economic downturn. Heather Scoffield wonders what kinds of budget promises that Morneau will have to abandon given the bigger deficit figures if they don’t want to lose their debt-to-GDP anchor.

Continue reading

Roundup: Considerations for Teck

We’ve been hearing a lot about the proposed Teck Frontier oilsands mine in northern Alberta lately, and demands by Jason Kenney and a number of Conservative MPs that its approval be fast-tracked as close to immediate as possible. Energy economist Andrew Leach has a few thoughts on the matter, particularly of how to reconcile Teck in the broader scope.

Continue reading

QP: Cheerleading a recession

After this morning’s surprising announcement that Andrew Scheer was resigning as Conservative leader, the PM was in his office but not present for QP (even though he had been in the House to respond to Scheer’s resignation just a couple of hours earlier). After a lengthy ovation, Scheer lamented last month’s job numbers, which I remind you was 100 percent bullshit, particularly his warnings about a “made-in-Canada recession.” Bill Morneau reminded him that while monthly job numbers are important, they would continue to invest in Canadians as that created over a million jobs. In French, Scheer demanded an economic update, and Morneau responded was that one would happen in the coming days. Scheer switched back to English to carry on his lament for the stage of the economy, giving misleading G7 job stats, to which Morneau repeated that their plan to invest was working, and that the economy was on track for the second-highest growth in the G7. Leona Alleslev was up next, and in French, concern trolled about the New NAFTA, and demanded impact assessments for it. Chrystia Freeland reminded her that the existential threat to our economy was now past, and endangering ratification was simply threatening the economy. Alleslev switched to English to worry about “repairing” our relationship with the US, and Freeland stated that the most important thing was ratifying the agreement. Yves-François Blanchet was up next, and he spun a sad tale of steel workers in Ontario being protected but aluminium workers in Quebec were not, to which Freeland reminded him that they got the tariffs repealed, and that the new agreement had 70 percent North American aluminium content requirements. Blanchet sang the praises of economic nationalism, and Freeland warned of the dangers of partisanship. Jagmeet Singh was up next, and demanded the government stop the judicial review of the Human Rights Tribunal compensation order, to which Marc Miller started that they were engaging partners to see that there was the fairest and most comprehensive compensation offered. Singh tried again in English, and Miller listed new measures they are in compliance with, and said that they were sitting down to get compensation right.

Continue reading

QP: All about aluminium

On the first Wednesday of the new parliament, the prime minister was present and we were due to be treated to the first proto-“Prime Ministers Questions” of the 43rd Parliament. Andrew Scheer led off, and he demanded to know what new concessions the government agreed to with the New NAFTA, to which Justin Trudeau assured him that they got a good deal, particularly around aluminium and automotive rules of origin. Scheer rhymed off that “senior Democrats” said that the Canadians gave up everything asked of them, and Trudeau simply responded with some congratulations to the negotiators on getting a good deal. Scheer then demanded a new fiscal update this week which includes a path to balance, citing a fictional “high-tax, high-regulation” agenda, to which Trudeau recited his worn points about making the choice to invest in Canadians. Scheer then railed that Trudeau was creating a “made in Canada recession” — which was 100 percent pure and unadulterated bullshit — and Trudeau reiterated their choices to invest. Scheer then demanded the government pull out of the Asian Infrastructure Bank as a way to send a message to China, to which Trudeau warned that he hoped the new special committee on China wouldn’t be a vehicle for the opposition to play politics and endanger Canadians. Yves-François Blanchet decried the lack of aluminium protections in the New NAFTA, to which Trudeau started frankly that Blanchet was wrong, and they got guarantees around the use of aluminium in the automotive industry. Blanchet disputed this, and Trudeau repeated his assurances. Jagmeet Singh then took his turn to lament the New NAFTA, to which Trudeau picked up a list to read off improvements. Singh then demanded an immediate universal pharmacare programme, to which Trudeau insisted that they did more than any government in a generation to lower drug prices, and the next step was to sit down with the provinces.

Continue reading

QP: Begun, this 43rd Parliament has

The first Question Period of the 43rd Parliament just happened to be on a Friday, and for the first time in my memory, all of the leaders were present. The PM at Friday QP? Unheard of! And yet, here we are. Andrew Scheer led off in French, mini-lectern reliably on his desk, and he raised this morning’s job numbers and the 71,000 reported job losses, calling it a “crisis.” Justin Trudeau, without script, told him that their plan was about creating jobs and investing. Scheer tried again in English, and Trudeau made points particularly related to the jobs created by the construction of the Trans Mountain pipeline. Scheer insisted that other countries were increasing investments in natural resources, and Trudeau reminded him that blaming foreign activists didn’t get pipelines built. Scheer said that of all the divisions in the country that Trudeau allegedly created, he stated that provincial premiers were united in opposition to Bill C-69, and Trudeau reminded him that the previous Harper environmental regime didn’t work and singled out two projects that continue to face delays. Scheer then worried about a vote around Israel at the UN that he called “anti-Israel,” to which Trudeau took up a script to reiterate the country’s support for Israel. Yves-François Blanchet was up for his federal debut to worry that the government ignored the call by premiers to increase health transfers to the provinces. Trudeau responded that they had committed to some increases related to getting people family doctors and implementing pharmacare. Blanchet then demanded that provincial environmental assessments get priority over federal ones, to which Trudeau spoke about partnerships on the environment. Jagmeet Singh led off for the NDP, and concern trolled that the prime minister was not brave enough to stand up to pharmaceutical companies and implement pharmacare. Trudeau, without notes, said that they were committed to pharmacare but it was an area of provincial jurisdiction and needed negotiation. Switching between English and French in the same question, Singh demanded the government stop taking Indigenous children to court, and Trudeau assured him they were committed to compensation.

Continue reading

Roundup: Poisoning the free market well

Last week, former Reform Party leader Preston Manning stated that conservatives across the country need to get their acts together when it comes to real environmental plans – but then made the boggling case that the Liberals and NDP had “poisoned” the notion of carbon prices, so those were off the table. I can barely even. Stephen Harper called for carbon pricing in the form of a cap-and-trade system when Stéphane Dion was calling for a carbon tax, until Harper decided that doing nothing was preferable to the actual decent plan that he had a hand in developing. For Manning to blame the Liberals and NDP for poisoning the well is more than a little rich – particularly considering that you have a center-left party adopting free market principles in carbon pricing, which you would think would overjoy a small-c conservative. But no.

https://twitter.com/AaronWherry/status/1201524374106451973

https://twitter.com/AaronWherry/status/1201528489507270656

https://twitter.com/AaronWherry/status/1201528491365273600

Meanwhile, the story about those conservative premiers who signed a Memorandum of Understanding about developing Small Modular Reactors? Well, it turns out that the MOU is basically about declaring interest in the hopes of forcing the federal government to invest in their research and development – so that they don’t have to put any of their own dollars up front. Add to that the temptation for them to treat this as a form of technosalvation – that they can cite it as the excuse for why they’re not doing more to reduce emissions in the short-term – and it all looks very much to be a big PR exercise. (Look surprised!)

Continue reading