Splitsville and what next

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Sep 05, 2024 View in browser
 
Ottawa Playbook

By Nick Taylor-Vaisey and Kyle Duggan

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

In today's edition:

→ So long, supply-and-confidence deal.

→ U.S. Democrats go fishing for money and votes from abroad.

ROBERT ASSELIN diagnoses Canada with “economic growth lethargy.”

DRIVING THE DAY

Liberal Leader Justin Trudeau and NDP Leader Jagmeet Singh take part in an English-language leaders debate in Gatineau, Quebec on Sept. 9, 2021.

Justin Trudeau and NDP Leader Jagmeet Singh during a leaders debate in 2021. | Justin Tang/AFP via Getty Images

‘EVERYTHING IS ON THE TABLE’ — The texts started to flow around mid-morning: "Is SACA dead?"

Turns out, yeah. R.I.P. The Ottawa fishbowl was in for a nonstop day.

— Supply and Confidence Agreement, 2022-2024: The Sun's BRIAN LILLEY was first to report it, but NDP Leader JAGMEET SINGH soon made his big reveal on social media. Nine months before it was due to expire, he was ripping up the governing deal helping to keep JUSTIN TRUDEAU and the Liberals in power.

No press conference. No questions from reporters. He'll face that music today at an 11:15 a.m. media availability in Toronto.

→ Is an election imminent? No. More on that later.

— The headline: Singh ended the toddler-aged Liberal-NDP governing deal that prioritized early versions of dentalcare and pharmacare programs — landmark planks in an agreement that guaranteed stability for a minority parliament against brinkmanship and uncertainty.

The party managed to keep the bombshell under wraps during two weeks of planning. No serious speculation in the rumor mill. No leaks in the lead-up.

— The rhythm of the deal: Singh and Trudeau checked in with each other on the deal "roughly each quarter" — but most recently only last April, the NDP tells Playbook.

An oversight group with reps from both sides met on a "roughly monthly" basis, most recently in June.

→ A curious huddle: Some of the deal's major brokers shared a booth at the Métropolitain on Tuesday night.

KATIE TELFORD and BRIAN CLOW, power players in the Prime Minister's Office, sat with ANNE MCGRATH, Singh's principal secretary. ANDREW BEVAN, chief of staff to Finance Minister CHRYSTIA FREELAND, also joined.

Playbook’s multiple sources did not overhear the evening's conversation. But CBC News was first to report that the Liberals only learned about Singh's video shortly before the news broke.

— Trudeau at the mic: The PM was in St. John's on Wednesday to announce the first deal with a province or territory on a national school food program. One down, 12 to go.

Trudeau faced the inevitable question: Is it time to send Canadians to the polls?

"I really hope the NDP stays focused on how we can deliver for Canadians as we have over the past years rather than focusing on politics," he said. "I had thousands of conversations with people across the country [this summer]. Very few of them wanted to talk politics."

→ So much for that: The PM's hiatus from the politics of it all didn't last the day. By evening, he'd authored a fundraising note that closed with these lines:

"With Jagmeet Singh turning his back on our agreement to deliver for Canadians and Pierre Poilievre and his Conservatives itching for an election, we need to be ready for one that can now be called at any moment. So much is at stake."

Bold and italics were his, not ours.

TORONTO, ON - OCTOBER 21: People line up to vote at a polling station at Trinity Community Rec Center for Canada's 43rd general election October 21, 2019 in Toronto, Ontario, Canada. Liberal party leader Justin Trudeau is neck and neck with Conservative Leader Andrew Scheer, as they both attempt to be elected the country's Prime Minister. (Photo by Brett Gundlock/Getty Images)

One big question in Ottawa and beyond: How does Jagmeet Singh's move influence election timing? | Getty Images

ELECTION WATCH — Singh's video offered few clues about when, or if, the NDP will vote to trigger an election. The leader made no specific threats, and he can still support the government on an issue-by-issue basis.

So can the Bloc Québécois, for that matter.

The Tories will surely propose a motion of non-confidence at the earliest opportunity when the House returns Sept. 16.

— Quick refresher: Confidence votes come in several forms.

If the House votes down a money bill — say, a budget implementation act — then the government falls. But the House can also pass a simple motion of non-confidence.

Governments sometimes ratchet up the tension by treating specific votes as matters of confidence, daring a united opposition to take the leap.

— The upshot: The Hill is in for a drumbeat of speculation in advance of each and every confidence vote in the chamber.

Conservative Leader PIERRE POILIEVRE, speaking at a press conference in Nanaimo, British Columbia — yes, the same Nanaimo where the Liberal caucus will huddle next week — dared Singh to join him in forcing an election.

— Priorities, priorities: One big reason Singh might not pull the plug just yet? The first phase of a national pharmacare program — a SACA crown jewel for the New Democrats — is not yet the law of the land.

Bill C-64 landed in the Senate earlier this year, and it could come to a final vote as early as next month. The office of the government rep in the Senate told Playbook in June that senators could take a final vote as early as Oct. 10.

— Campaigner pool: On CBC's At Issue panel, CHANTAL HÉBERT observed that New Democrats — and Conservatives — will both have staffers occupied in coming weeks with fall elections in British Columbia, Saskatchewan and New Brunswick.

— Your turn: Will Parliament survive all the way until late 2025? Place your bets.

CAMPAIGN LINES — Singh's NDP knew it was going to have to differentiate itself from the government ahead of the next election. The question was when. Wednesday brought the hard line in the sand. Here's how the NDP leader framed it:

→ The long version: “Justin Trudeau has proven again and again he will always cave to corporate greed. The Liberals have let people down. They don't deserve another chance from Canadians. There is another, even bigger battle ahead. The threat of Pierre Poilievre and Conservative cuts. From workers, from retirees, from young people, from patients, from families — he will cut in order to give more to big corporations and wealthy CEOs."

→ The short version: "The Liberals are too weak, too selfish and too beholden to corporate interests to fight for people. They cannot be the change. They cannot restore the hope. They cannot stop the Conservatives."

→ NDP campaign tagline: "It's the people's time."

BACK TO THE FUTURE — The SACA emerged shortly after a 60-hour CP work stoppage ended in 2022.

SEAMUS O'REGAN, the labor minister who'd monitored those rail talks in Calgary, also attended hasty virtual Cabinet and caucus meetings as the governing deal coalesced.

O'Regan echoed the vibe of the day in a conversation with Playbook.

“Especially with the mood I'm in right now, stability and certainty are very attractive to me,” he said at the time. “And I think they're very attractive to a lot of Canadians. The world has enough uncertainty going on."

→ Fast forward to 2024: New Democrats started seriously reevaluating the two-party pact when the new labor minister, STEVEN MACKINNON, forced an end to a pair of lockouts at CPKC and CN by ordering binding arbitration.

Earlier this week, Canadian Press reporter MICKEY DJURIC caught up with NDP MP MATTHEW GREEN ahead of his party's upcoming Montreal caucus retreat.

"Everything is on the table," Green told Djuric. "And I would aggressively say everything is on the table."

As it turned out, Singh and the NDP weren't willing to wait that long.

Talk of the town

A soupçon of politicking and punditry on what it all means:

Liberal MP NATE ERSKINE-SMITH: “I didn't see any substantive criticism today to warrant ‘ripping’ up the supply deal. I also didn't see Singh use his announcement to advance anything new. If I'd been in his position, I'd have put a few big ideas on the table this fall and made a continued deal conditional on seeing them through. Seems like a real missed opportunity.”

Pollster DAN ARNOLD: “I'm assuming for the NDP this is more about leverage to get results than being seen to be in bed with Liberals. Because presumably this will mean a lot more news coverage of them cutting deals with Liberals over the next year than there would otherwise have been.”

Summa Strategies' KATE HARRISON: “Biggest impact this will have short term is on by-elections in Winnipeg & Montreal (NDP is competitive in both), and on the government's legislative agenda this Fall. Don't expect an immediate election. Do expect frequent confidence votes that grind things to a halt.”

Enterprise Canada's ANDREW TUMILTY: “Two ways this NDP announcement reads. [They] pulled support because the PM stopped a rail strike that would have cost the economy billions and interrupted supply chains. They pulled support when Pierre told them to. Either way, most Canadians won’t see them as ready to lead.”

Former PMO staffer PENNY COLLENETTE: “We can analyze about former minority govt’s and what might happen now that the deal is over, but one thing is for sure. The stress and tension on every MP has just skyrocketed. The timing of the next election is no longer predictable.”

Where the leaders are

— Prime Minister JUSTIN TRUDEAU had not released a public itinerary at the time of Playbook's publication.

— Deputy PM CHRYSTIA FREELAND is in Toronto with no public events scheduled on her itinerary.

— Conservative Leader PIERRE POILIEVRE headlines an evening party fundraiser at Sheraton Vancouver Wall Centre (the same building where provincial party leaders KEVIN FALCON and JOHN RUSTAD announced a bombshell deal to defeat DAVID EBY's NDP).

— NDP Leader JAGMEET SINGH will be in Toronto at Lithuanian House on Bloor Street West at 11:15 a.m. He’s called the presser to share his vision for Canada.

— Green Leader ELIZABETH MAY campaigns with North Saanich provincial Green candidate ROB BOTTERELL in Sidney, B.C. She'll also host a community meeting in Central Saanich.

DULY NOTED

— Today is Good Luck Making Other News Day in the nation's capital.

10 a.m. DONNALYN MCCLYMONT and RIMA HAMOUI of the Privy Council Office will be at the House public accounts committee to take questions on the auditor general’s report on Sustainable Development Technology Canada.

2024 WATCH

Democratic presidential nominee Vice President Kamala Harris arrives at Portsmouth International Airport.

Today on Zoom, politicians and celebrities hope to rally Democrats who are living abroad. | Jacquelyn Martin/AP

ZOOM, ZOOM, ZOOM For the first time, the Democrats Abroad will host a global call on Zoom today to lend a boost to KAMALA HARRIS.

The aim is to attract Americans living in Canada or elsewhere abroad who can donate money or register to vote.

Former U.S. Ambassador BRUCE HEYMAN, who will appear on the call, tells Playbook it's an “out-of-the-box idea” that’s “kind of like a telethon with different guests,” including “some high-profile senators and congressmen and actors and actresses.”

Scheduled guests on the call, which starts at noon, include NANCY PELOSI, former AG ERIC HOLDER, Sen. CORY BOOKER (D-N.J.), former U.S. Rep. BETO O’ROURKE, celebs JANE FONDA, KYRA SEDGWICK, LYNDA CARTER and JON HAMM and political strategists JESS CRAVEN, ROBERT HUBBELL and SIMON ROSENBERG.

— Online trail blazing: The Dems are leveraging Zoom this cycle to fuel Harris’ campaign buzz.

Hours after Biden announced he would not seek reelection, tens of thousands of Black women across the U.S. organized a call that raised $1.5 million and saw so many join, it hit the max number of participants. A “White Women: Answer the Call! Show up for Harris” call crashed Zoom several times.

— Fighting for every inch: Harris is squeaking ahead of former President DONALD TRUMP in battleground states in new CNN/SSRS polls, IRIE SENTNER reports. But just barely. Her slight lead is either within or just outside the margin of error.

Elsewhere from POLITICO: 3 things to expect at the first Trump vs. Harris debate.

For your radar

GROWTH AGENDA — The Business Council of Canada is out today with a new blueprint for economic growth. ROBERT ASSELIN, senior vice president of policy at the lobby group for Canada's biggest businesses, served up 17 ideas for Ottawa's consideration.

— The problem: Asselin warns that Canada has been hit with "economic growth lethargy" for the past 15 years.

"Canadians will not be able to sustain their living standards — including benefitting from cherished social programs — if the country doesn’t change course," he writes.

Top three policy recommendations:

→ "Place GDP per capita growth and productivity at the top of the government’s agenda and direct key federal institutions — such as the Finance Department and the Privy Council Office — to make them central parts of their mandates."

→ "Initiate a comprehensive cross-departmental review of all industrial policy programs to assess their effectiveness in raising productivity and GDP per capita growth."

→ "Undertake a comprehensive review of the tax system to better incentivize private sector investments and boost wages."

Read the full report.

MEDIA ROOM

— From CP's MAURA FORREST in Montreal: No photos of Trudeau on campaign signs in Montreal riding ahead of byelection

PAUL WELLS ends his latest on a foreboding note: "Soon Canadians will get their chance to thank Trudeau for refusing to change."

— The Globe's CAMPBELL CLARK considers the stakes in Ottawa: "Now the teetering begins."

— A question from LISA YOUNG over on The Tyee: “Can [DANIELLE] SMITH straddle Alberta’s rural-urban divide?”

PROZONE

For POLITICO Pro subscribers, our latest policy newsletter by KYLE DUGGAN and SUE ALLAN.

In other news for Pro readers: 

Mpox vaccine maker won’t budge on price.

The frontrunners for the best jobs in the next European Commission.

AI boom to accelerate carbon removal, Morgan Stanley predicts.

Coroners ignore heat in many deaths. That’s dangerous.

How oil companies could tap the climate law to pump more crude.

PLAYBOOKERS

Birthdays: HBD to broadcaster VALERIE PRINGLE, Enterprise Canada’s MITCH HEIMPEL and former MP JAMES LUNNEY. Greetings also to ROB DEKKER, policy director to Tory MP JOHN BRASSARD and two-time provincial Progressive Conservative candidate in Ottawa Centre.

HBD + 1 to CBC's J.P. TASKER and baker NIC MULRONEY.

Got a document to share? A birthday coming up? Send it all our way.

Spotted:  A big crowd at the official opening of the British High Commission building on Sussex Drive, which witnessed a flypast of both the Snowbirds and the visiting Red Arrows — a tribute to the 100th anniversary of the Royal Canadian Air Force and the 60th season of the British aerobatic team.

— In attendance: STEPHEN DOUGHTY, Minister of State of the United Kingdom for Europe and North America; Air Chief Marshal Sir RICH KNIGHTON; JENNIE CARIGNAN, chief of the defense staff, as well as the heads of the army, navy and air force; U.S. Ambassador DAVID COHEN; Ukrainian Ambassador YULIYA KOVALIV; Clerk of the Privy Council JOHN HANNAFORD; Liberal MPs MARIE-FRANCE LALONDE, MONA FORTIER and IQRA KHALID; Conservative MPs MICHAEL BARRETT and DAVE EPP; Communications Security Establishment Chief CAROLINE XAVIER; CSIS Interim Director VANESSA LLOYD; SAVANNA MCGREGOR, Algonquin Anishinabeg Nation Tribal Council Grand Chief; PERRY BELLEGARDE, former National Chief of the Assembly of First Nations; and CTV's VASSY KAPELOS.

RMC prof STÉPHANIE CHOUINARD, back in the physical classroom for the first time in four years.

Noted: Conservative Leader PIERRE POILIEVRE is holding a rally on Sunday at the Explorer Hotel in Yellowknife, Northwest Territories. The party's candidate in Western Arctic is KIMBERLY FAIRMAN, whose CV includes a stint during the Harper era as a director general at the Canadian Northern Economic Development Agency.

Poilievre headlines a pair of Toronto fundraisers next week — one at a private residence in The Annex, another in the city's West End.

Movers and shakers: Revenue Minister MARIE-CLAUDE BIBEAU announced members of the Independent Advisory Board on Eligibility for Journalism Tax Measures. Bibeau named BRENDA O'FARRELL and MICHAEL COOKE to the board, effective June 21. She appointed RAVINDRA MOHABEER, effective Sept. 25, and elevated MARGO GOODHAND to vice chair — also as of Sept. 25.

The Explorers and Producers Association of Canada posted an Aug. 13 meeting with AARON WUDRICK, policy director in PIERRE POILIEVRE's office.

WHAT'S HAPPENING TODAY


11:30 a.m. (9:30 a.m. MT) In Edmonton, Employment Minister RANDY BOISSONNAULT announces funding for projects under the Canadian Apprenticeship Strategy.

12:30 p.m. (9:30 a.m. PT) Emergency Preparedness Minister HARJIT SAJJAN announces economic development funding in Victoria, British Columbia.

TRIVIA

Wednesday’s answer: It was poet ROBERT SERVICE who was beloved by both PIERRE TRUDEAU and RONALD REAGAN.

Props to PATRICK DION, GUY SKIPWORTH, MARCEL MARCOTTE, DARRYL DAMUDE, BOB ERNEST, MALCOLM MCKAY, GANGA WIGNARAJAH, LAURA JARVIS and ROBERT MCDOUGALL.

Today’s question: IGOR GOUZENKO defected to Canada on this day in 1945. Where did he quietly live the last 15 years of his life?

Send your answer to ottawaplaybook@politico.com

Writing tomorrow's Playbook: KYLE DUGGAN 

 

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