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May 03, 2024 View in browser
 
Ottawa Playbook

By Kyle Duggan and Zi-Ann Lum

Presented by 

Spotify


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Thanks for reading Ottawa Playbook. Let’s get to it.

In today's edition:

→ Ottawa is raising the debt ceiling. That’s one of the finds in the annual budget-cycle Easter egg hunt.

→ Ambassador KIRSTEN HILLMAN is urging caution as governments inch toward a scheduled six-year USMCA review.

→ Who’s up and who’s down this week.

DRIVING THE DAY

WASHINGTON, DC - APRIL 12: Canadian Finance Minister Chrystia Freeland delivers remarks during an event at the Peterson Institute for International Economics on April 12, 2023 in Washington, DC. Freeland addressed Canada's response to inflation, economic stability and the future of global trade. (Photo by Kevin Dietsch/Getty Images)

Finance Minister Chrystia Freeland, shown here at the Peterson Institute for International Economics in Washington, shared her budget with the House on April 16. | Getty Images

WAYS AND MEANS…ING TO GET AROUND TO IT When Finance Minister CHRYSTIA FREELAND unveiled the government’s ways and means motion Tuesday, a few things in the more than 600-page document slipped under the radars of many.

— First, quick review: Ways and means is part of the parliamentary process the government uses to introduce its economic policies. The motion came Tuesday, then the Liberal government introduced the budget implementation bill Thursday.

— The focus: The news-of-the-day on its unveiling was what was missing: It did not contain the controversial capital gains tax measures, which the Liberals unveiled on budget day. That’s the fight they really want to have on tax fairness, but it has not yet done them any favors with public opinion.

The government looks like it is trying to pick a fight by forcing the Conservatives to vote separately on a tax hike for the wealthy.

Here’s a few things that were missed in the shuffle this week:

— Raise the debt ceiling: While the budget-day drama for the Liberals is usually surrounding the deficit, an item that doesn’t get talked about (or cringe-ily rapped about) as much in Canada as it does in the U.S. is the limit for how much the government can legally borrow to pay for its spending. In the back pages of the motion, Ottawa is raising the maximum total borrowing amount to C$2.1 trillion.

On the books, the figure is listed at C$1.8 trillion.

The budget had mentioned the debt ceiling would go up, but it did not say by how much.

It did note, though, that the face-value amount Ottawa is borrowing for 2024-25 is projected at C$508 billion, “83 percent of which will be used to refinance maturing debt.”

— Impact assessment changes: Environmental groups are up in arms over this one.

CP’s SIMON HOPKINS writes they warn the government is about to forfeit its authority to regulate greenhouse gas emissions with the amendments that appear in the ways and means motion, a response to the October Supreme Court ruling that Ottawa was trampling over provincial jurisdiction.

The law lets Ottawa review how proposed natural-resource projects would impact the environment, but after being challenged in the courts by Alberta, the SCC declared it is partly unconstitutional. Environment Minister STEVEN GUILBEAULT signaled back in the fall that the government would not repeal the law but make it “align” with the ruling.

Green Party Leader ELIZABETH MAY vowed in the House that “this ways-and-means bill will go down to defeat at the Supreme Court.”

A summary of the package of amendments by the business law firm Osler warns that if passed in its current form, the law “may again be challenged by the provinces as being unconstitutional.”

— Here and there: The document introduces a global minimum tax, and a framework for open banking, but a Torys analysis notes it doesn’t move on issues like liability and privacy, expected to be dealt with in the fall.

Have you spotted something strange or sus packed into those pages? Kick Playbook a note .

— The coming capital-gains battle: DAN KELLY, head of the Canadian Federation of Independent Business,said his organization is getting input from small businesses, warning of “massive implications” and “potential winners and losers.”

— Slogan laden: A trio of Liberal ministers — Labor Minister SEAMUS O’REGAN, Crown-Indigenous Relations Minister GARY ANANDASANGAREE and Small Business Minister RECHIE VALDEZ — promoted some of the new measures at a Thursday presser, the $5-billion Indigenous loan guarantee program and clean-tech tax credits, and urged for swift passage of the bill.

But they also made a point to stop and take shots at Conservative Leader PIERRE POILIEVRE over Tuesday’s QP antics — even though it’s days later and the news cycle has packed up and moved on.

“Pierre doesn’t care,” Valdez said, and his party “would prefer to come up with slogans instead of any plans whatsoever.”

Back in the House, QP has returned to room temperature after the superhot Tuesday (when the press gallery was nearly empty) and the staid, cool tone on Wednesday — an anticlimactic affair to the many journalists packed in the prime seats that day, just in case.

Speaker GREG FERGUS, though, remains under fire from persistent heckling following calls for his ouster.

“Consistent double standard,” Conservative MP MICHAEL COOPER shouted in QP Thursday afternoon.

 

A message from Spotify:

As the CRTC consults on the implementation of the Online Streaming Act, the Canadian music industry faces a fundamental question: whose music counts as Canadian? This comes at a time when Canadian and Indigenous artists are finding success on streaming platforms including Spotify like never before. Last year, Canadian artists were discovered on Spotify by first-time listeners more than 3.8 billion times and generated royalties exceeding $435 million. Learn more.

 
Where the leaders are


— Prime Minister JUSTIN TRUDEAU and Deputy Prime Minister CHRYSTIA FREELAND will be in the Hamilton area. At 10:35 a.m., they will meet students and young professionals to talk up government measures designed to help renters buy their first home. At 11:15 a.m., they will hold a scheduled housing announcement and a media availability.

— Conservative Leader PIERRE POILIEVRE did not release his schedule.

— NDP Leader JAGMEET SINGH is going door knocking in Elmwood-Transcona, DANIEL BLAIKIE’s former riding, to chat up residents about the high cost of living. A by-election has to be called there by Sept. 29.

— Bloc Leader YVES-FRANÇOIS BLANCHET goes on tour in the Îles-de-la-Madeleine to mark lobster fishing season.

— Green Party Leader ELIZABETH MAY will attend Parliament virtually from her riding.

DULY NOTED

— Public Inquiry Commissioner MARIE-JOSÉE HOGUE releases her interim report on foreign interference in Canada. The media lockup starts at 9:30 a.m.; the report is released at noon.

— International Development Minister AHMED HUSSEN is in Montreal meeting with members of the Lebanese-Canadian community for a 10 a.m. announcement on humanitarian aid and development funding for Lebanon.

11:30 a.m. National Defense Minister BILL BLAIR will be in Toronto to deliver a keynote on defense policy at a lunch event hosted by The Economic Club of Canada.

1 p.m. Industry Minister FRANÇOIS-PHILIPPE CHAMPAGNE is in the U.S. again, at the University of Nebraska-Lincoln, for a fireside chat about “U.S.-Canada trade and geopolitics.”

— It's deadline day for the 2nd annual Cutest Pets on Parliament Hill photo contest. Dogs, cats and "other" pets are eligible. Among last year's winners: PETUNIA, Tory MP KAREN VECCHIO's chicken.

For your radar


USMCA A-OK — That’s a simple summary of Canada’s Ambassador to the United States KIRSTEN HILLMAN’s take on how the new NAFTA is working out. She urged caution as governments get closer to the mandatory six-year review of the United States-Mexico-Canada Agreement in 2026.

“The objective is not to trigger insecurity in our business community and in our political community,” Hillman said Thursday at the Center for Strategic and International Studies in Washington. “The goal is to look for ways to further advance our common prosperity and our mutual benefit and goal — growth.”

— Tough noogies: POLITICO’s DOUG PALMER notes in Morning Trade that Hillman appeared to be responding to comments made by U.S. Trade Representative KATHERINE TAI, who has said that the “whole point” of the review is that it’s uncomfortable and “may involve a certain level of uncertainty” to focus minds on problems that have emerged in the pact.

— Reminder: Tai and her Trump administration predecessor, ROBERT LIGHTHIZER, have hinted that the review could be used to address a USMCA panel ruling that sided with Mexico and Canada against the U.S. position of the pact’s automotive rules of origin.

— USMCA+: Potential expansion of the pact to welcome other countries came up during a panel with former grizzled trade negotiators.

STEVE VERHEUL, Canada’s former chief trade negotiator from 2017-2021, recognized interest from Ecuador, Uruguay and Costa Rica, but said chapters such as the automotive rules of origins, tailored for the North American context, may not be a clean fit.

— Note to Global Affairs: Expanding separate existing free-trade agreements with those countries may be a better workaround, Verheul said. “But just having them sign on to USMCA, I don't see that works all that effectively.”

— Quote machine: Former U.S. Trade Representative RON KIRK, who served the Obama administration, told the audience that the term “free trade” has become demonized in America, poisoning any chance for a robust discussion or debate on the topic.

America’s “biggest threat” to itself, he said, is continuing “senseless debate” by Democrats and Republicans as to which party has more isolationist trade and economic policies.

“I'm just praying if we can break out of the idiocy of politics after this November election — perhaps we can get back to doing things that make sense,” he said.

 

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WHO'S UP, WHO'S DOWN


UP: House Speaker GREG FERGUS, whose controversial actions Tuesday underscored the broad support he has among party caucuses other than the Tories.

DOWN: House Speaker GREG FERGUS, who attracted even more ire and heckles from the Conservative benches and became an even bigger target for the party.

ALSO FOR YOUR RADAR

Margaret Sullivan holds up the World Press Freedom Canada program featuring Wall Street Journal reporter Evan Gershkovich.

Margaret Sullivan holds up the World Press Freedom Canada program featuring Wall Street Journal reporter Evan Gershkovich. | POLITICO Canada

BIG YEAR AHEAD — At this year’s World Press Freedom awards, Guardian journalist MARGARET SULLIVAN delivered a keynote about the perils of rising authoritarianism worldwide in a key election year (CPAC covered the full talk), and the media’s pitfalls in covering DONALD TRUMP.

During a Q&A, she took a question from Liberal MP TALEEB NOORMOHAMED about what lesson Canadian journalists should take in advance of the 2025 election on dealing with misinformation spread by politicians — mentioning the leader of the opposition.

“Be very careful about the way information is presented — not to take speeches that are bound to be full of disinformation, or misinformation, take them live and say, ‘Well, we'll fact check that later’. I don't think that really works,” she said, not addressing the political barb.

MEDIA ROOM

— Top of Newswatch this hour via THE CANADIAN PRESS: Ontario's Progressive Conservatives win both provincial byelections.

— Carbon tax protests planned for today at MP constituency offices have prompted security warnings, Global News’ ALEX BOUTILIER reports. NDP MP CHARLIE ANGUS tweeted the email.

— From the Globe's MARIEKE WALSH: Conservatives don’t rule out using notwithstanding clause beyond criminal justice matters.

— People Magazine’s BECCA LONGMIRE writes that SOPHIE GRÉGOIRE opened up about her separation from JUSTIN TRUDEAU on KATIE COURIC’s podcast: “It hurts deeply”

JUSTIN LING on Canadaland describing the negotiating process for his Trudeau interview with PMO: “A six-month affair. It required so much arm twisting. At one point I was told they were worried it was going to be a hatchet job, they thought I was out to get them, they sounded paranoid.”

— The Writers Guild of Canada returned to the negotiating table with producers after three months, KATIE CAMPIONE and JESSE WHITTOCKwrite in Deadline.

— Bank of Canada Governor TIFF MACKLEM told MPs the bank is inching closer to slashing rates, CBC’s JP TASKER writes.

— Top of POLITICO this morning: Shake-down allegations and another contempt hearing highlight 10th day of Trump’s trial.

PROZONE

Our latest policy newsletter for Pro subscribers from ZI-ANN LUM and SUE ALLAN: DST likely a $2.3B hit to U.S. businesses.

In other news for Pro readers:  

IPEF countries to sign clean energy, fair economy pacts in June.

Senate GOP introduces bill to eliminate Biden's EV tax credit.

US trade deficit with Mexico hits record high in March.

Microsoft inks largest-ever US corporate clean power deal.

NJ may pull public investments from Japanese company for cutting ties with Israeli defense contractor.

PLAYBOOKERS

Birthdays: Cheers to Conservative MP ARNOLD VIERSEN, former NDP MP MATTHEW DUBÉ, economist PETER NICHOLSON and Syntax Strategic’s LINDSAY CAMPBELL who celebrate today.

HBD + 2 to MAX FINEDAY. 

On Saturday: Sen. MICHAEL MACDONALD and Global News’ Ottawa bureau chief MERCEDES STEPHENSON.

 On Sunday: Liberal MP SUSAN WHELAN.

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

Spotted: Nepal’s new ambassador BHARAT PAUDYAL meeting with Liberal MP SONIA SIDHU.

At the World Press Freedom luncheon … ANDREW CARDOZO, TALEEB NOORMOHAMED, YULIYA KOVALIV, MARGUS RAVA, SUSANNAH GOSHKO, SCOTT RYAN, TOKURO FURUYA, WOONAN KAM, ANTHONY OSTLER, DAVID WALMSLEY, HOWARD FREMETH, SHANNON PROUDFOOT, PAUL ADAMS, LINDSAY CAMPBELL, RACHEL GILMORE, HOLLY LAKE, BOB FIFE, STEVEN CHASE, JIM MUNSON, LAURA PAYTON, DON NEWMAN, ALLAN THOMPSON, JOANNE CHIANELLO, OLIVIA STEFANOVICH, STEPHANIE LEVITZ, HANNAH THIBEDEAU, STUART BENSON, BRIAN LAGHI, JOANNA SMITH, SARAH ANDREWS, BEA VONGDOUANGCHANH, BRIAN PLATT and GRAHAM LANKTREE.

ANITA ANANDtweeting a meeting with former PM JEAN CHRÉTIEN.

Noted: Liberal MP ANITA VANDENBELD making a statement about her disappointment in Poilievre for Conservative MP KAREN VECCHIO being removed as chair of the House status of women committee, replaced by SHELBY KRAMP-NEUMAN.

Former longtime Ottawa city councillor DIANE DEANS has entered palliative care.

Movers and shakers: The Independent Senators Group gained a new member: Sen. MANUELLE OUDARTARANJEET MANCHANDA has joined the official opposition leader’s office as an outreach coordinator.

MYAH TOMASI expanded her role in Anand’s office in comms to become press secretary

ROCCO ROSSI is joining Shift25 as their inaugural CEO.

The Canadian at the heart of U.S. critical minerals deliberations: ABIGAIL HUNTER, Canadian and ex-Quebec senior attaché in Washington, has been named director of international affairs and partnerships at SAFE Center for Critical Minerals Strategy.

Former CBSA officer LUC SABOURIN has been named this year’s winner of the Centre for Free Expression’s Peter Bryce Prize for Whistleblowing. A ceremony will take place next week.

Media moves: TRAVIS DHANRAJ back on the air at CBCCP’s JAMES MCCARTEN with an exit post on LinkedIn.

Send Playbookers tips to ottawaplaybook@politico.com .

ON THE HILL


Find House committees here.

Keep track of Senate committees here.

1 p.m. RICHARD FADDEN, who served as the prime minister’s national security adviser from 2015 to 2016, will appear in the first hour of this gathering of the House committee on the Canada-China relationship before MPs move in camera to discuss internal business.

 

A message from Spotify:

The CRTC’s current definition of Canadian content designed for radio may be excluding those Canadian artists who work with a global mindset and are increasingly finding success all around the world.

That includes staples by The Weeknd, Celine Dion or Shania Twain and even new hits like greedy by Calgary-born Tate MacRae, which garnered 860 million plays globally and spent four weeks as the world’s most popular song.

All Canadian, right? Maybe not.

That’s because these songs only fulfill some of the CRTC’s criteria which focuses on songs written, performed or produced almost exclusively by Canadians in Canada.

We think that needs to change.

The CRTC must prioritize its work on redefining Canadian and Indigenous content to ensure it reflects the global nature of today’s music industry.

Read more about Spotify’s position and how we are helping Canadian artists grow their audiences globally in our For The Record blog post.

 
TRIVIA


Thursday’s answer: Opening Day of Expo 86 in Vancouver “had head-spinning rides, fireworks and traffic jams.”

Props to JENN KEAY, RALPH LEVENSTEIN, SARA MAY, ROBERT MCDOUGALL, CAMERON RYAN, EMILY KOHN, LAURA JARVIS, RODDY MCFALL, JOANNA PLATER, and MARCEL MARCOTTE. 

Friday’s question: “It’s just hitting me now. … I don’t know if there’s a city left. My heart is just completely broken.” What happened on this day in history?

Answers to ottawaplaybook@politico.com

Writing Monday’s Ottawa Playbook: NICK TAYLOR-VAISEY

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

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

 

Follow us on Twitter

Nick Taylor-Vaisey @TaylorVaisey

Sue Allan @susan_allan

Kyle Duggan @Kyle_Duggan

Zi-Ann Lum @ziannlum

POLITICO Canada @politicoottawa

 

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