Rebate debate

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Mar 20, 2024 View in browser
 
Ottawa Playbook

By Zi-Ann Lum and Nick Taylor-Vaisey

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Thanks for reading Ottawa Playbook. Let's get into it.

In today's edition:

→ There’s another carbon tax showdown today, emphasis on show.

→ Canadians say goodbye to BRIAN MULRONEY.

DRIVING THE DAY


PLAY IT AGAIN — Conservatives will spend their opposition day dialing up the public pressure to force the Liberals to water down their signature climate policy.

Today’s overture picks up on a gambit Conservative Leader PIERRE POILIEVRE tried in December when he threatened “thousands” of votes in the House to get Liberals to scrap its tax. Actual number of votes during the 24-hour stunt: 135. The tax was untouched.

— Same, but different: Poilievre is now promising to force “multiple votes” to get the government to back down on its scheduled April 1 hike. He’s raising alarm over the carbon price signal’s annual C$15 jump, this year to C$80 from C$65 per metric ton of carbon dioxide equivalent emissions.

The tax increase is expected to add roughly 3 cents to the cost of gas. Rebate checks will also increase for families this year. Poilievre insists the newly renamed Canada Carbon Rebate won’t cover the projected increase in household expenses.

This kind of internal ratchet mechanism is not unusual in progressive climate policies. The Paris Agreement, for example, requires parties to increase climate ambitions every five years.

— 12-day countdown: The Tory leader has threatened an untold number of votes before April 1. He now has the backing of 7 premiers. The first House vote is today after question period. There are more scheduled Thursday.

— Spoiler alert: Energy Minister JONATHAN WILKINSON says the government has no plans to halt the increase, despite pressure from Tories, provinces and the public.

“We will not hit pause on the carbon price schedule,” Wilkinson told Playbook during a call from Hamburg on Monday. He called the tax an affordability mechanism — saying as the tax increases, so do the consumer rebates.

That’s where Conservatives and Liberals are at loggerheads.

— Old idea: Federal environment watchdog JERRY DEMARCO told CTV News "Power Play" last week the theory behind carbon pricing is sound and goes back more than 100 years.

The whole point is to internalize a cost for a certain activity, steering consumers to consider alternative behaviors (such as a tobacco tax intended to get people to quit).

“The question is, is it stringent enough to cause the changes that you’re trying to make and is it widely applied enough so as to have the full effect that it’s needed?” DeMarco said.

— In related reading: “What could have been a Canadian success story may be remembered as an opportunity lost to short-sighted politics,” the Globe wrote Tuesday in an editorial.

— Attention on rebates vs. policy efficacy: Liberals often repeat the claim that one-third of emissions reductions by 2030 will be attributable to the carbon-pricing system.

The hitch is that it relies on a cooperative crystal ball, based on government modelling. DeMarco said his office hasn’t had a chance to audit the claim.

A government review of the system is not expected until 2026, after the next scheduled federal election.

— Reading the room: Pocketbook issues are hot and Conservatives are hanging their argument on a narrow read of a Parliamentary Budget Office (PBO) report from last year.

Specifically, one section of the report factored in the policy’s overall economic impacts, such as job and investment losses, and suggested “most households will see a net loss.”

But when you look only at fiscal impacts of the rebates, the PBO estimates most households in Alberta, Saskatchewan, Manitoba, Ontario, Prince Edward Island and Newfoundland and Labrador will receive more in rebates than they pay in the tax.

Budget watchdog YVES GIROUX has said he’s not comfortable with the spin, suggesting people can’t cherry pick his analysis to suit their political agendas.

— Bottom line: Enforcing a carbon tax and rebate system has costs, Giroux told CBC News at the time, so does doing diddly-squat to mitigate greenhouse gas emissions.

— Blind spots: The Canadian Climate Institute called the PBO’s analysis flawed because it failed to factor in the impacts of climate change. It noted that Canadians currently pay C$720 annually for climate-related damages.

“It will go up because of the forest fires, the flooding that we've had last year,” Steven Guilbeault told reporters on the Hill Tuesday. “Canadians are paying for that.”

— Regional pressure points: What’s hot today is Conservatives are working to divide and conquer battleground ridings held by incumbent Liberals in Nova Scotia.

It’s a topical tactic given that the Nova Scotia legislature voted unanimously Tuesday to call on MPs from the province to halt April’s carbon tax hike.

Poilievre wants a free vote on today’s non-binding motion, putting Nova Scotia MPs JAIME BATTISTE, KODY BLOIS, LENA DIAB, ANDY FILLMORE, DARREN FISHER, SEAN FRASER, MIKE KELLOWAY and DARRELL SAMSON on the spot to “vote for their constituents rather than the party boss,” the Tory leader said.

— In related listening: The Curse of Politics gets into the debate on their latest episode.

 

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Talk of the town

(L-R) Mila Mulroney, widow of the late Brian Mulroney, daughter Caroline Mulroney, son Mark Mulroney, and son Ben Mulroney look on  as pallbearers carry the casket of former Canadian Prime Minister Brian Mulroney at the Sir John A. Macdonald Building where he will lie-in-state in Ottawa, Canada, on March 19, 2024. Mulroney, who made his political mark in the 1980s with the signing of a ground-breaking free trade   agreement with the US that later expanded to include Mexico, died on February 29, 2024. He was 84. (Photo by Adrian Wyld / POOL / AFP) (Photo by ADRIAN WYLD/POOL/AFP via Getty Images)

All through Tuesday afternoon, the Mulroneys received condolences inside the Sir John A. Macdonald Building. | POOL/AFP via Getty Images

PAYING RESPECT — The flag-draped casket of BRIAN MULRONEY will lie in state inside the Sir John A. Macdonald Building until 1 p.m. today.

On Tuesday, Mulroney’s family — widow MILA, children CAROLINE, BEN, NICOLAS and MARK — spent the morning greeting an hours-long parade of dignitaries, including Governor General MARY SIMON, Prime Minister JUSTIN TRUDEAU, Deputy Prime Minister CHRYSTIA FREELAND, Cabmins, senators current and former, and U.S. Ambassador DAVID COHEN.

A staffer waited on the street for PIERRE POILIEVRE’s arrival, handing wife ANAIDA a bouquet when she hopped out of their car to present to the Mulroneys.

Inside, cameras caught moments of grief and joy in little reunions.

Former CTV broadcast journalist turned Liberal Cabinet minister MARCI IEN embraced her former colleague BEN MULRONEY with a 22-second hug. MÉLANIE JOLY, turns out, is also a hugger.

The morning air was cold enough to see people’s breaths. The crowd didn’t linger after the RCMP honor guard moved Mulroney’s casket inside — public viewing hours were hours away. A family of five with three young girls braved the chilly temps for a little, standing on the southeast corner of O’Connor and Wellington, parents clutching cooling cups of Timmies.

A bit of sun broke through the clouds by midday, right before the start of public visitation hours. The Mulroneys, Mila included, stayed on to greet Canadians into the early evening.

People pay their respects in front of a casket draped with the Canadian flag.

The Mulroneys greeted politicians and diplomats on Tuesday, but also a steady stream of ordinary Canadians. | Blair Gable/AFP via Getty Images

HEATHER CAMPBELL lined up for more than 90 minutes to pay her respects.

“Everybody’s saying this, but it's true: It's part of history,” the bundled-up Ottawa resident told Playbook. “I just want to be here. I came when Mr. Trudeau was [lying] in state and so I just want to come pay my respects to Mr. Mulroney, as well.”

Self-described “proud French Canadian” MICHEL SIMARD also waited to say goodbye. Simard called Mulroney a “great prime minister” who devoted his life to the well-being of Canadians.

That, he said, motivated him to “move my butt and pay my respect” to the late PM.

“I didn't share all of his political views,” Simard said. “But I recognize in this man an example of chevalerie here, as we say in French, that is probably missing in the spectrum of our political debate these days.”

Mulroney’s state funeral will take place in Montreal on Saturday.

Where the leaders are


— Prime Minister JUSTIN TRUDEAU will virtually participate in the Summit for Democracy 2024 at 8:30 a.m. At 10, he'll attend caucus. At 2 p.m., he'll head to QP.

— Deputy PM CHRYSTIA FREELAND will attend caucus at 10.

— Conservative Leader PIERRE POILIEVRE is in Ottawa with caucus at 9:30 a.m. Media have been invited inside to cover his opening remarks.

— Bloc Québécois Leader YVES-FRANÇOIS BLANCHET has not released a public itinerary.

— NDP Leader JAGMEET SINGH will attend the NDP caucus meeting. In the afternoon, he will attend question period.

— Green Party Leader ELIZABETH MAY is in Ottawa with no public events on her schedule.

DULY NOTED


12:30 p.m. Public Services and Procurement Minister JEAN-YVES DUCLOS and Treasury Board President ANITA ANAND have booked the National Press Theatre for a press conference to discuss the government’s plan to “combat unethical business practices in procurement and real property.”

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ALSO FOR YOUR RADAR


HOT OFF THE PRESS — The Writers’ Trust of Canada announced this morning five finalists for this year’s C$25,000 Shaughnessy Cohen Prize for Political Writing.

The coveted award is the centerpiece of the annual Politics and the Pen gala at the Château Laurier — a marquee event on Ottawa’s social calendar that even draws haters from Toronto whose favorite spot in the nation’s capital is the airport departure lounge.

— The hosts: This year’s gala is May 7. The evening's co-hosts will be a pair of former premiers: Alberta’s JASON KENNEY and Ontario’s KATHLEEN WYNNE.

Here are the finalists:

ROB GOODMAN's "Not Here: Why American Democracy Is Eroding and How Canada Can Protect Itself"

BENJAMIN PERRIN's "Indictment: The Criminal Justice System on Trial"

DONALD SAVOIE's "Canada: Beyond Grudges, Grievances, and Disunity"

ASTRA TAYLOR's "The Age of Insecurity: Coming Together as Things Fall Apart"

JOHN VAILLANT's "Fire Weather: The Making of a Beast"

— The jury: Past winner JOANNA CHIU, past finalist DALE EISLER and Wynne.

MEDIA ROOM


— POLITICO's STEFAN BOSCIA scoops news this morning that the U.K., U.S. and Australia are rushing to expand their trilateral AUKUS defense partnership before potentially tumultuous elections in all three countries over the next 14 months. One senior diplomat involved in the talks told POLITICO that Japan and Canada are in line to join.

— MP ANTHONY HOUSEFATHER is "reflecting" on his future with the Liberals after Middle East motion vote, CP's MIA RABSON reports.

— Writing in The Hill Times, BHAGWANT SANDHU argues that Conservative Leader PIERRE POILIEVRE should share more of his policy agenda.

— “It doesn’t matter if you’re the zoo or a bank or a small business — if cybercriminals find a weak spot, they will exploit it,” cybersecurity boss SAMI KHOURY says in conversation with Maclean’s about crime in the Cyber Wild West.

— In case you need it, IREM KOCA joined “The Big Story” pod with everything you need to know about the ArriveCAN scandal in 22 minutes, 27 seconds.

— Over on The Hub, MIKE MOFFATT and CARA STERN offer governments ways to revive “the dying dream of homeownership.”

— “While the perception of being inundated by asylum seekers had been eliminated with the closure of Roxham Road, the reality in terms of numbers is more or less the same,” TOULA DRIMONIS writes in The Walrus. 

The National Observer reports: Sometimes what it takes is a “blue-collar truck driver” from the Prairies to fight disinfo online.

 

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PROZONE

Our latest policy newsletter for Pro subscribers from KYLE DUGGAN and SUE ALLAN: Trump Fed contender: Bring on a carbon tax.

In other news for Pro readers:

Social media companies could face huge hit for harming kids.

U.S. Energy Secretary says pause on LNG exports will end within a year.

U.S. DOE eyes 20 times more geothermal power.

Oil executives cast doubt on future of hydrogen.

U.S. Treasury data show surging interest in Biden's clean energy tax credits.

PLAYBOOKERS


Birthdays: BRIAN MULRONEY was born on this day in 1939.

And HBD to TINA KEEPER.

Birthdays, gatherings, social notices for this community: Send them our way.

Spotted: CBC teasing DAN DILLABOUGH from “This Hour Has 22 Minutes” meeting with PIERRE POILIEVRE as “The crossover we’ve all been waiting for.”

Movers and shakers: ALEXANDER WOZNY is Deputy PM CHRYSTIA FREELAND's new director of parliamentary affairs and issues management. Wozny takes over for the departing FAREES NATHOO.

ANDRÉ LORANGER has been appointed by Industry Minister FRANÇOIS-PHILIPPE CHAMPAGNE as interim chief statistician of Canada to backfill for ANIL ARORA, who retires at the end of the month.

WILLIE SELLARS, GENEVIEVE TOMNEY, ANNE-MARIE CROCE, CLAIRE SEABORN, JONATHAN SCOTT, DG STRINGER, D'ARCI MCFADDEN, JOANNE PITKIN, ALLIE BLADES, ROBIN GUY, LHORI WEBSTER, ZACHARY NIXON, RAVI PARMAR, JAXSON KHAN, JAKE BROCKMAN, DAKOTA KOCHIE and HUNTER KNIFTON have been named to The Peak’s list of up-and-coming young leaders. View the whole list and other categories here. 

It’s the final week to apply to join Banff Forum XXIII, which will take place Sept. 5-7 in Whitehorse.

The House of Commons Office of the Law Clerk and Parliamentary Counsel (OLCPC) is looking for an articling student.

— Irving Oil, the Atlantic giant in the middle of a senior leadership transition, recently filed a spate of February meetings with…

IAN FOUCHER, chief of staff to Industry Minister FRANÇOIS-PHILIPPE CHAMPAGNE; AMIT SINGH, a senior adviser to Champagne; NINA SARTOR, then an Atlantic policy adviser to Champagne (now an adviser to Transport Minister PABLO RODRIGUEZ); NINA LOTHIAN, Environment Minister STEVEN GUILBEAULT's director of climate and energy policy; Guilbeault staffers CAROLINE LEE and KELSEY LANE; SANDY SCHEMBRI, Energy Minister JONATHAN WILKINSON's director of net-zero energy policy; LAURA MARTIN, director of stakeholders and projects on clean energy at the Privy Council Office; ELIZABETH ARSENAULT, an Atlantic regional adviser in the Prime Minister's Office; CHRIS PADFIELD, the assistant secretary to Cabinet for clean growth; Liberal MPs KODY BLOIS, WAYNE LONG and GEORGE CHAHAL; and Conservative MPs GÉRARD DELTELL and SHANNON STUBBS.

Media mentions: The National Newspaper Award finalists have been announced. MAX FAWCETT, NIIGAAN SINCLAIR and ADAM ZIVO have been nominated for the Mary Ann Shadd Cary Award for Columns; ROBERT FIFE and STEVEN CHASE (Globe and Mail), CHARLIE PINKERTON, JACK HAUEN and JESSICA SMITH CROSS (The Trillium) and ALTHIA RAJ (Toronto Star) are up for the John Wesley Dafoe Award for Politics. The complete list of 2023 nominees is here.

This evening at Carleton, cartoonist MICHAEL DE ADDER delivers the 2024 Kesterton Lecture, “How (not) to get cancelled in 2024.”

In memoriam: ROY MCMURTRY, the former Ontario attorney general who helped legalize same-sex marriage, has died. From the Star’s obit: “McMurtry is perhaps most famous for his role in the so-called ‘kitchen cabinet,’ where, along with former prime minister JEAN CHRÉTIEN and former Saskatchewan premier ROY ROMANOW, he helped broker a deal that led to the patriation of the Canadian Constitution in 1982.”

— B.C. radio legend GEORGE GARRETT has died. CTV News has an obit. 

— In the House on Monday, MP YVONNE JONES paid tribute to former MP KIM RUDD who died last week. “Kim was a fierce fighter in her battle with cancer and used her experience to advocate for new research in ovarian cancer and for women's health,” Jones said.

Send Playbookers tips to ottawaplaybook@politico.com .

ON THE HILL


Find House committees here.

Keep track of Senate committees here.

— It’s caucus day on the Hill.

10:30 a.m. The Canadian Veterinary Medical Association will hold a press conference in West Block to draw attention to workplace shortages.

11 a.m. An all-women delegation supported by the Raoul Wallenberg Centre for Human Rights will hold a press conference in West Block to call on the RCMP to open an investigation into “Hamas crimes against Canadian nationals.”

12 p.m. The Montreal Institute for Genocide and Human Rights Studies will host a press conference in West Block to discuss the findings of the 2024 Global Terrorism Index.

4:15 p.m. Minister of Innovation, Science and Industry FRANÇOIS-PHILIPPE CHAMPAGNE will appear at the Senate banking, commerce and economy committee to take questions on Bill C-34.

4:15 p.m. BOB RAE, Canada’s ambassador to the U.N., is on the witness list at this meeting of the Senate foreign affairs and international trade committee.

4:15 p.m. The Senate legal and constitutional affairs committee will hear from witnesses on Bill S-250.

4:30 p.m. Immigration Minister MARC MILLER will be at the House committee on citizenship and immigration for a briefing on the temporary immigration measures in response to conflicts in Sudan and Gaza.

4:30 p.m. The House operations and estimates committee will hear from Public Services and Procurement Minister JEAN-YVES DUCLOS off the top; Treasury Board President ANITA ANAND will appear in the second hour.

4:30 p.m. Minister of Crown-Indigenous Relations GARY ANANDASANGAREE, Minister of Northern Affairs DAN VANDAL and Minister of Indigenous Services PATTY HAJDU will be at the House committee on Indigenous and northern affairs.

4:30 p.m. Defense Minister BILL BLAIR will be at the House national defense committee.

6:45 p.m. The Senate finance committee will hear from stakeholders on Bill C-59.

6:45 p.m. Grand Council Chief of Anishinabek Nation REG NIGANOBE will be at the Senate transport and communications committee to discuss climate change and infrastructure. City officials from Hamilton, Thunder Bay, Montreal and Port Colborne are also on the witness list.

We're tracking every major political event of 2024 on a mega-calendar. Send us events and download the calendar yourself for Google and other clients .

TRIVIA

Tuesday’s answer: ROBERT STANFIELD had the (dubious) distinction of calling Stornoway home for the longest period of time. Stanfield served as Leader of the Official Opposition for 3,029 days.

Props to LIAM DALY, DAN FONDA, CHRIS RANDS, MARCEL MARCOTTE, ANDREW SVENDE, MATT DELISLE, LAURA JARVIS, JIM CAMPBELL, ROBERT MCDOUGALL, JOHN DILLON, DAN MCCARTHY, CAMERON RYAN, TRISTAN DENNISTON, ANDIE HABERT, STEPHEN HAAS and BOB GORDON.

Bonus points to Daly, who noted that former PM ROBERT BORDEN was opposition leader longer — 3,897 days — than Stanfield. Alas, Stornoway was not yet an official residence.

Wednesday’s question: Who voiced JUSTIN TRUDEAU on “The Simpsons”?

Answers to ottawaplaybook@politico.com

Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Run a Playbook ad campaign. Contact Jesse Shapiro to find out how: jshapiro@politico.com.

Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, editor Willa Plank and Luiza Ch. Savage.

 

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