Tag Archives: Transfer Payments

Roundup: Inviting premiers to shift the blame

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It’s now day one-hundred-and-forty-seven of Russia’s invasion of Ukraine, and while Russian forces pound cities like Kramatorsk in the east, and targeted Odesa in the south, they are planning to begin annexing Ukrainian territory with installing proxy officials, false referenda, replacing the local currency and forcing people to apply for Russian citizenship. We know this because they did it in 2014 when they annexed Crimea, and they have a familiar MO.

Closer to home, there was a report out from Ontario’s Financial Accountability Officer yesterday that showed how Doug Ford and his merry band of incompetent murderclowns have been under-spending in a number of significant areas like healthcare, education, social supports that include things like autism therapy. Now, put this underspending into the same context of Ford crying poor and insisting that the federal government pony up more cash for healthcare, but he’s not even spending his own current budget allocation, he hasn’t reversed his cuts to nurses’ salaries, and he didn’t do enough when it comes to testing or tracing when it comes to the pandemic. The same report shows he only spent 58 percent of the pandemic funds the federal government sent over, putting the rest directly onto his bottom line to reduce the province’s deficit. And you wonder why the federal government wants strings attached to future funding, to ensure that it actually gets spent on the things it’s supposed to be spent on, and not being used to pad bottom lines.

On a related note, reporters were asking Justin Trudeau yesterday about the strain that emergency rooms are under, and when Trudeau noted the money they’ve sent to the provinces and that those dollars need to come with results, those same reporters frame this as “punting it” back to the provinces.

No.

It’s not punting—it’s the provinces’ gods damned jobs. And while this was justified as Trudeau campaigning on hiring more doctors and nurses, no—the campaign promise was to send $3.2 billion to the provinces to hire doctors and nurses, and it’s not rocket science to understand that this is the kind of thing he’s trying to attach strings to before he sends those cheques to the provinces, so that he knows that they’re going to actually spend it to hire doctors and nurses (and one presumes actually pay them properly) and that it won’t wind up padding their bottom lines like we just watched Doug Ford do. And I’m not trying to insinuate that the reporters are playing gotcha or that they’re being partisan, because they’re not—they’re trying to do their jobs, but they’re doing it with a grave misunderstanding about how jurisdiction works, and this nonsense belief that nobody cares about it. The problem is that they have to care, because that’s how we hold people to account for the work they’re supposed to be doing, which the premiers aren’t. Because media keeps giving them this out and trying to pin things on Trudeau “because nobody cares about jurisdiction,” and the only lever he has is to try and attach strings to funding and nothing else—the federal government cannot hire doctors and nurses because they have no authority to do so—it gives the provinces an out so that they can shift blame when it’s their gods damned responsibility. We need the media to understand this and hold the right people to account for their failures, and right now, that’s the gods damned premiers.

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Roundup: CSE posts a threat bulletin about Russia

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We’re on day one-hundred-and-forty-two of Russia’s invasion of Ukraine, and Russians fired missiles at the central city of Vinnytsia, hitting civilian locations including a medical clinic. Ukrainian president Volodymyr Zelenskyy reiterated his statement that the Russian regime is a terrorist threat. Meanwhile, the leadership at the International Criminal Court in the Hauge is calling for an “overarching strategy” to bring perpetrators of war crimes in Ukraine to justice, so that other countries contributing to the investigations can cooperate with their efforts.

Closer to home, CSE released a threat bulletin on Russia’s cyber-activities in Ukraine, and it was a doozy, saying that the scope and severity has almost certainly been more sophisticated and widespread than has been previously reported, and yes, that has repercussions for Canada as well. Stephanie Carvin has more in this thread:

https://twitter.com/StephanieCarvin/status/1547663710700728320

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Roundup: 100 basis points, because the Bank of Canada is serious

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It’s day one-hundred-and-forty-one of Russia’s invasion of Ukraine, and with Russian forces trying to turn the entire Donbas region to ashes with continued shelling, Ukrainian forces have been trying to reclaim some ground in the south, hitting another ammunition depot in Nova Kakhovka. Russian missiles struck the southern cities of Mykolaiv and Zaporizhzhia, as a show of their determination to hang onto their gains in the south.

Closer to home, the Bank of Canada raised their key overnight rate by 100 basis points, so that interest rates are now sitting at 2.5 percent, which is in the middle of their estimated “neutral” range of two and three percent. This means that the rate is not supposed to be either stimulative or contractionary. The hike was so high in large part because of the shock value—the Bank wants to break any psychological expectation that can lead to an inflationary spiral, where people keep expecting inflation to keep rising, and behave in ways that reinforce it. This goes for wages as well, and the Bank is trying hard to send signals that will hopefully keep a wage spiral from happening, where wages rise to meet inflation, which just increases demand and stokes inflation, and the cycle becomes self-reinforcing. The Monetary Policy Report also included an interesting section where the Bank examined why their previous estimates went wrong, and while they didn’t conclude that it’s because they don’t have a division of precognitive psychics guiding policy, they did find that a lot of the global shocks didn’t factor into their calculations. One such example was oil prices—their modelling used oil prices as being stable, but when they jumped, that threw off their modelling. And the invasion of Ukraine really did a number on everyone’s models, so the Bank of Canada wasn’t unique there.

When it comes to political reaction, both the Conservatives and the NDP sent out press releases freaking out. The Conservatives blame government spending for inflation, instead of its actual causes, and freak out that the cure is high interest rates, as though one can have it both ways in perpetuity. (This is the alleged “party of sound economic management,” who continually prove they are fiscally illiterate). The NDP think the cause of inflation is price gouging, instead of the actual causes (which isn’t to say that there hasn’t been some, but it’s not the cause), and therefore interest rates going up punishes people. Which is also missing the point. And it would be nice if we had opposition parties that were economically literate and capable of challenging the government on its bullshit rather than on largely imaginary problems.

https://twitter.com/mattgurney/status/1547403312378650627

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Roundup: The premiers think we’re all stupid

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It is now day one-hundred-and-forty of Russia’s invasion of Ukraine, and Ukrainian forces are claiming to have hit a Russian ammunition depot near the captured city of Nova Kakhovka in the south. At the same time, Russians continue their attacks on the cities of Sloviansk and Toetsk in the Donetsk province, killing at least nine civilians. Here is a look at efforts to train Ukrainian soldiers and civilians in combat first aid. Over in Russia, the government is poised to enact legislation that can force companies to supply the military, including making employees work overtime, as the country tries to replenish its supplies after depleting them in the invasion thus far.

Closer to home, the Council of the Federation meeting ended, and lo, the premiers were unanimous in demanding that the federal government come to the table with them to, well, accept their demands to give them more money with no strings attached. Only they had both a wounded tone, which quickly switched to sanctimony when they were challenged, particularly about the pandemic spending that couldn’t be tracked. Some premiers, Tim Houston most especially, seem to think that we all have amnesia about 2004 to 2014, when the bulk of those six percent health transfer escalators were spent on other things. Saying that they all want improved outcomes is one thing, but the federal government isn’t stupid—they are well aware that provinces would be just fine with status quo that the federal government paid more for, and that they spent less on. That’s why they want conditions—so that provinces don’t pull this kind of thing once again. Premiers were also pretending that they had no idea what kinds of outcomes the federal government is looking to achieve, because most of the is in last year’s election platform. It’s not hard to find. And frankly, federal health minister Jean-Yves Duclos is right when he says that these outcomes should be agreed to at the ministerial level before the first ministers sit down to talk dollars, because you want to have a plan in place before you attach dollars to it, rather than the opposite, which John Horgan seems to think is how government should function. (You can find my thread as I was live-tweeting the closing press conference here).

https://twitter.com/EmmMacfarlane/status/1546912224148688897

On a related note, The Canadian Press devoted several hundred words of wire copy yesterday to the fact that the promised $2 billion to clear up surgical backlogs hasn’t flowed yet…because the budget only received royal assent a couple of weeks ago. And that premiers are complaining they haven’t received the money yet. I mean, premiers know how a budget cycle works. This is not a news story—it’s not even a real process story. It’s complaining for the sake of complaining. The only piece of interest in the story was that the government tabled a bill about the spending commitment, then abandoned it in order to wrap the spending in their budget bill a couple of weeks later. This isn’t the first time they’ve done so, and it’s a really annoying habit that they have, but again, not actually a news story.

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Roundup: An “adult conversation” consisting solely of a demand for cash

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It’s now day one-hundred-and-thirty-nine of Russia’s invasion of Ukraine, and the Russians have resumed pounding the city of Kharkiv, destroying civilian buildings. The Russian government is trying to fast-track giving Russian citizenship to all Ukrainians, an attempt to exert more influence over the country. Meanwhile, president Volodymyr Zelenskyy is calling out Canada’s decision to return those gas turbines to Russia by way of Germany, saying that Russia will interpret this as a sign of weakness that Russia will try to exploit, and he’s not wrong, but one wonders if there may not be a greater danger in alienating Germany as they are already facing rationing. For what it’s worth, the US State Department is backing Canada’s decision, but this situation was very much a Kobayashi Maru.

Closer to home, the Council of the Federation got underway yesterday, and of course the opening salvos were about healthcare funding, without strings attached. BC Premier John Horgan, who is currently the chair of the Council, was dismissive about the federal government’s concerns, calling them “accounting differences,” when Dominic LeBlanc called them out for their misleading figures about the current transfers, and the fact that several provinces are crying poor while simultaneously bragging about surpluses that they paid for with federal pandemic dollars, of the fact that Quebec is sending vote-buying cheques out to people ahead of their election. And LeBlanc is absolutely right—there need to be strings to ensure that provinces won’t use that money to pad their bottom line, reduce their own spending, or lower taxes, because they’ve all done it in the past. The best part is that Horgan keeps saying he wants an “adult conversation,” but the only thing the premiers are bringing to the table is a demand for more money, and that’s it. That’s not an adult conversation. (For more, the National Post took a dive into the issue, and came out with a fairly decent piece that includes the actual history of transfers, tax points, and provinces who spent those health care transfers on other things).

There will be a few other things discussed, and there’s a primer here about them. Jason Kenney wants to spend the premiers meeting pushing back at the federal emissions reduction targets, because of course he does.

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Roundup: Stampede politicking in full swing

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We’re now on or about day one-hundred-and-thirty-eight of Russia’s invasion of Ukraine, and there are reports that Russian reservists are starting to assemble near the border for a future offensive. There have been rocket attacks against the eastern city of Chasiv Yar, in the Donetsk region. Civilian evacuatiosn are underway in parts of the Kherson and Zaporizhzhia regions, as the shelling continues in the eastern part of the country. Meanwhile, a cohort of Ukrainians has arrived in the UK for combat training in an attempt to more rapidly turn civilians into soldiers.

Canada has been in the middle of a dispute over a gas turbine undergoing repairs here, for the Nord Stream One pipeline from Russia to Germany. Germany has been trying to urge our government to return the turbine, while Ukraine wanted us to withhold it as a part of Russian sanctions. In the end, the Canadian government opted to return the turbine, but put more sanctions on Russia, though the decision came with much criticism from Ukrainian officials.

Closer to home, it’s Stampede time in Calgary, which has become a major political event over the years. Justin Trudeau attended the Stampede yesterday, and was mobbed by supporters, while a single person yelling “traitor” was escorted out. For Conservatives, this has been one of the hallmarks events for their leadership contest, and of course, Pierre Poilievre has been the darling of the event, touted as “more Albertan than Stephen Harper and Jason Kenney,” seeing as he was actually raised there unlike the other two. Others were not so lucky—Jean Charest was booed at the event, which is not a surprising in the “Conservative heartland” given that he’s from Quebec. Just more of Alberta’s childish politics of resentment that Poilievre is playing into.

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Roundup: Patrick Brown disqualified?

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We are on day one-hundred-and-thirty-three of Russia’s invasion of Ukraine, and the governor of Donetsk province is urging some 350,000 residents to evacuate in order to both save lives and make it easier for the Ukrainian army to repel Russian advances. This being said, the Russians have been using up so many personnel and equipment on this advance that they may be forced to stall later in the summer, though they still have abundant resources that the Ukrainians don’t have at this point. Meanwhile, here is a look at Ukrainians struggling in towns and villages outside of Kyiv, as their homes have been bombed out and they don’t know when they might get new ones.

Closer to home, the Conservative Party’s Leadership Election Organising Committee has taken the decision to disqualify Patrick Brown on the basis of “serious allegations of wrongdoing,” and that they are planning on turning the file over to the Commissioner of Elections. Brown’s campaign responded a short time later saying this is all based on anonymous allegations they haven’t been able to respond to, and that their lawyers are now involved. So, it’s going well. Nevertheless, it’s one more reminder of just how bastardised this whole process is because our parties keep trying to ape American presidential primaries, while filling their coffers and databases rather than worrying about things like accountability, or parliamentary leadership. These races are a mockery of our system, and we really, really need to return to a system of caucus selection of leadership, so that MPs are empowered, leaders are held to account, and that the party isn’t just a hollow vehicle for a personality cult.

https://twitter.com/acoyne/status/1544519706127831041

https://twitter.com/robert_hiltz/status/1544531763254411265

Oh, and while we’re at it, one of Peter MacKay’s staff from the last leadership contest is now suing Erin O’Toole for alleging he was behind a hacking theft, so there really is no end to the drama here.

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QP: Freeland in a fighting mood

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With the prime minister still away at the Summit of the Americas, his deputy was present once again, though none of the other leaders were. Luc Berthold led off, and he noted that mask mandates were being lifted as were vaccine mandates, except for federal ones, and insisted this was not following science. Chrystia Freeland thanked Canadians for their collective action during the pandemic, noting the second-lowest morality rate from COVID in the G7, and the lowest unemployment in over 50 years, and vaccines were responsible for this. Berthold railed that that she didn’t answer his question, to which Freeland pointed out that it was because of vaccines that the number of hospitalisations and deaths were lower in Canada than the US. Berthold then pivoted to gun crime and complained that the mandatory minimums bill was being “rammed through” Pariament, and Freeland insisted that they were taking concrete actions to limit guns in Canada, and it was absurd to listen to Conservative complaints about it. John Brassard took over in English to say that they agree on measures in the gun control bill around domestic violence and asked to split the bill so that those can pass quickly while they rework the rest of the bill, and Freeland cited that as a member from downtown Toronto and a mother of teenagers, she would never water down their measures. Brassard said they would be putting forward a motion in good faith to split the bill and wanted cooperation, but Freeland called out their false concern for victims of gun crime, and insisted they were not interested in helping them.

Claude DeBellefeuille lead for the Bloc, and she said that the Quebec has a binder full of amendments to the official languages bill because they are the experts in French, but Freeland was not moved to capitulate to the provincial government. DeBellefeuille insisted that the federal government needed to listen to Quebec about protecting French. Freeland agreed that it was an existential issue, that she understands as a Ukrainian-Canadian when it comes to language and culture, but the bill as it stands was “excellent.”

Alexandre Boulerice appeared by video to lead for NDP, demanding action to make life more affordable for families. Freeland agreed that this was an issue, which is why they had concrete measures in place. Jenny Kwan took over in English to make the same demand with added demands around co-op housing, and Freeland noted the government’s investments in co-op housing, before repeating her points about affordability measures. 

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Roundup: Deficit is coming in lower than expected

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It is on or about day ninety-four of Russia’s invasion of Ukraine, and Russian forces are claiming that they have captured a rail hub in Donestk, while they continue to pound Severodonetsk, with some 90 percent of the city’s buildings damaged. Ukrainians are calling for Western allies to deliver weapons faster, though there is talk that it looks like this aggressive push by Russia has depleted their arsenal.

The invasion is also not accidental in terms of location or timing—the eastern part of the country are a trove of natural gas and critical minerals, and when Russia invaded, it cut off Ukraine’s exploration of natural gas reserves in the Black Sea, which could have been used to help wean Europe off of Russian oil and gas. Because aren’t all wars really about resources?

Closer to home, the Fiscal Monitor was released, and the deficit figure is coming in much lower than anticipated, because in large part the economy is overheated which is generating a lot of revenue (and inflation does help in terms of collecting higher taxes on higher prices). But as Kevin Milligan points out, this means that the obsession by the Conservatives with the deficit is becoming really misplaced—the massive spending in 2020 to get us through the pandemic is behind us, and we’re not in that situation anymore. Not that facts matter—this is really an exercise in people’s feelings about the deficit, and the perceptions that are not grounded in facts.

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QP: Tough on Black and Indigenous people

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In between events with the Prince of Wales and the Duchess of Cornwall, the prime minister was present in QP, as were all other leaders. Candice Bergen led off, script in front of her, and she declared that the stated reason for invoking the Emergencies Act was “falling apart” as the interim Ottawa police chief said he did not request it, and she insisted there was a cover-up. Justin Trudeau quoted another witness at the committee who praised the efficacy of the measures. Bergen blamed Trudeau for the blockade with a litany of dubious accusations, and Trudeau retorted that the opposition doesn’t want light shed into their role in prolonging the occupation. Bergen insisted this was “misinformation” before she pivoted the complaining about airport delays and demanded a return to “pre-COVID normal.” Trudeau reminded her that COVID is not over, and that they are identifying ways to help bottlenecks. Bergen started ranting that Trudeau got to go maskless in other countries while Canadians are tired of doing everything being asked of them (erm, which they haven’t been). Trudeau again reiterated that they are following the science. Bergen then launched into a tirade about COVID measures affecting youth, and Trudeau somehow hating youth, and Trudeau listed all of the help they gave young Canadians over the course of the pandemic.

Yves-François Blanchet led for the Bloc, and he gave a bizarre rant about the “British monarchy” and the Anglican Church, and demanded to know how much this would cost. Trudeau, bemused, said that Ottawa must really be delivering for Quebec if the Bloc had to dig to reach this. Blanchet continued to complained that royal tours cost money, and Trudeau took the opportunity to praise our system and its stability at a time when democracy is under threat around the world.

Jagmeet Singh rose for the NDP, noted the inflation headline number, and repeated yesterday’s demand to cut oil and gas subsidies and to give that money to people in a GST rebate. Trudeau listed that they have been cutting subsidies, that they are going “line by line” on emissions cuts, and that they have affordability measures. Singh repeated the question in French, and got the same reply.

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