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Dec 13, 2024 View in browser
 
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By Mickey Djuric, Nick Taylor-Vaisey and Mike Blanchfield

Presented by Public Service Alliance of Canada

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Thanks for reading Ottawa Playbook. It’s Friday the 13th!

Let’s get to it:

→ What we've got here is failure to communicate

More Cabinet shuffle goss.

An inside view of PAUL MARTIN's first Cabinet meeting in 2003.

Driving the Day

COMMUNICATION BREAKDOWN — Deputy Prime Minister CHRYSTIA FREELAND was dubbed JUSTIN TRUDEAU's "minister of everything" — a firefighter tasked with only the toughest files.

These days, Freeland's communication style appears to be a weakness more than a strength for struggling federal Liberals trying to sell an economic message.

PM-sized caveat: If the government is failing to persuade the country that Liberals deserve Canadians' trust, Trudeau is the top of the food chain.

But after four years as finance minister and five as deputy PM, Freeland may now be a liability for a government hanging on by a thread — both internally and in the eyes of the public.

Conservative Leader PIERRE POILIEVRE has successfully seized a cost-of-living crisis, blaming Liberal policies for rampant household hardship (and riding high in the polls).

Convincing Canadians otherwise continues to be a challenge for the deputy PM — especially when the prime minister dodges reporters (unless you count influencers on TikTok).

— Foot-in-mouth: Last year, thousands wrote into Freeland's office after she used cutting her Disney+ subscription as an example of making ends meet.

The public was similarly reactive last month when she claimed Canada was experiencing merely a “vibecession” — a term that describes an apparent disconnect between the real economy and how people feel about it.

And this week, Freeland came under intense scrutiny for avoiding questions about the country’s deficit, which the Parliamentary Budget Officer predicts could hit nearly C$47 billion this fiscal year — missing Freeland’s own commitment to cap it at C$40 billion.

— Bad press: Freeland's recent appearance at a Senate committee even became the butt of a Globe and Mail column.

→ Indicator-sized caveat: There are good-news stories to tell. Inflation is now consistently within the Bank of Canada's target range. Interest rates are coming down at a good clip. Canada has so far avoided a post-pandemic recession.

But gas and groceries are still expensive (even with a temporary "GST holiday"), rate cuts are still working their way into the economy, and growth has been anemic.

— Year in the making: Freeland launched weekly economic updates in January. She tried to seize the moment amid solid foreign investment and jobs numbers, as the government brought in new measures to address housing affordability.

“We all do know that many Canadians are still struggling to make ends meet, struggling to juggle all of their bills at the end of the month and to feel confident about their future,” she said in January — a line that still appears in some form months later.

— Not helping: Those weekly updates don't appear to have improved Liberal fortunes. Take a look at weekly seat projections from 338Canada.

338 in January: CPC: 190, LPC: 86, BQ: 32, NDP: 28, GPC: 2

→ 338 now: CPC: 227, LPC: 47, BQ: 45, NDP: 22, GPC: 2

— In related news: Bill C-78 received Royal Assent on Thursday, paving the way for that "GST holiday" on certain products — starting tomorrow.

— Countdown: Three sleeps till the Fall Economic Statement.

 

A message from Public Service Alliance of Canada:

Tell the Liberals to keep their hands off workers’ pensions. Learn more.

 

NERD MAGNETS — Playbook gamed out potential Cabinet shuffle scenarios earlier this week. Boy, did the fishbowl ever have opinions.

Several reliably informed readers advised us to watch for a December front bench reset, in the shadow of a bad-news by-election and a highly anticipated Fall Economic Statement.

— Stitching together the goss: Tidbits are making the rounds. Bureaucrats have sent ministerial transition binders to the Privy Council Office, some claim. Backbencher background checks are in full swing, say others. There's even talk of offers being made to prospective ministers.

— Chaos mode: The Globe and Mail is convinced the prime minister is trying to recruit MARK CARNEY amid unnamed sources' claims of tension between the PMO and CHRYSTIA FREELAND's office. (Worth noting: Healthy tension between the finance minister's world and the PM's team are as natural as the sunrise.)

Former Alberta Premier RACHEL NOTLEY yesterday announced her exit from provincial politics at the end of the month. Notley's province is — wait for it — currently unrepresented in Cabinet.

Conservatives are, naturally, trolling relentlessly.

— Timing is everything: The Trudeau government has never shuffled its Cabinet in December. New ministers would spend their holidays consuming briefing books. Overworked staffers would feel uncertainty heading into a long-desired break from Hill business.

Sometimes, a gossipy snake eats its own tail in this town. Still, we're readying for a chilly morning's worth of strolls up the Rideau Hall driveway. Just in case.

WHO'S UP, WHO'S DOWN

Up: The cross-border stakes, as Canada formulates a list of potential retaliatory export taxes in case of a Trump-imposed 25 percent tariff on Canadian imports.

Down: Air Canada. Want proof? Tune in at 1 p.m., when the House transport committee questions airline CEO MICHAEL ROUSSEAU on carry-on fees.

Also on the meeting roster: Porter Airlines CEO MICHAEL DELUCE, WestJet Airlines CEO ALEXIS VON HOENSBROECH and Transat CEO ANNICK GUÉRARD.

 

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Where the leaders are


— Prime Minister JUSTIN TRUDEAU will participate in a virtual G7 Leaders’ meeting. In Vancouver, Trudeau will also attend the naming ceremony for HMCS Protecteur and meet with workers. Energy Minister JONATHAN WILKINSON will join. Later, the PM will meet with local seniors

— Deputy PM CHRYSTIA FREELAND is in Toronto. At 12 p.m., she'll make an announcement about economic growth ahead of Monday's Fall Economic Statement. She will be joined by Trade Minister MARY NG and Mental Health and Addictions Minister YA'ARA SAKS.

— Conservative Leader PIERRE POILIEVRE headlines a noontime party fundraiser at Mega Centre des Sources in Pointe-Claire, Quebec. At 12:30 p.m., he'll hold a rally.

— Playbook hasn't seen itineraries for Bloc Leader YVES-FRANÇOIS BLANCHET, NDP Leader JAGMEET SINGH or Green Leader ELIZABETH MAY.

For your radar

LIGHTS OUT — Ontario Premier DOUG FORD's Wednesday threat of canceling energy exports to the U.S. in retaliation for DONALD TRUMP's across-the-board tariffs reached the president-elect.

"That’s okay if he does that. That’s fine,” Trump told CNBC on Thursday. “The United States is subsidizing Canada and we shouldn’t have to do that."

The Associated Press added: "The CNBC reporter said Trump told him off camera that they hope they can work something out with Canada."

— Request for comment: Playbook asked Ontario's energy regulator about any contact with Ford's office since Wednesday.

ANDREW DOW, senior manager of public relations at the Independent Electricity System Operator, had this to say: "There are active discussions underway with government about this matter and the IESO is not in a position to comment at this point in time."

PAPER TRAIL

BLAST FROM THE PAST — "Exciting and transformative change" was in the air. A fresh start for "a government and a country." Ministers unleashed on their portfolios, guided by new transparency and ethics rules.

Welcome to the promise of Dec. 13, 2003, when PAUL MARTIN chaired his first Cabinet meeting as prime minister. Playbook obtained the minutes of that Day 1 gathering via an access-to-information request.

We asked for the docs last year on the 20th anniversary of their production. At the two-decade mark, Cabinet documents are no longer secret.

Here's what we learned when our inbox pinged with a PDF.

— First order of business: Finance Minister RALPH GOODALE presented Martin with a Canadian flag that flew atop the Peace Tower on Dec. 12, the day of his appointment as PM.

When he was sworn in, Martin had held the flag that flew on the same pole when his father died on Sept. 14, 1992.

— Change in the air: Every agenda item focused on changing the channel from the JEAN CHRÉTIEN era, which had culminated in the brewing sponsorship scandal that soured the Liberal brand and later contributed to the government's demise.

Martin overhauled the front bench. MICHAEL WERNICK, the deputy secretary to Cabinet for plans and consultations at the time, recently posted images of the incoming and outgoing crews. Only a dozen ministers survived that process.

"In a funny way, it was the end of something and the beginning of something. You'd spent a bunch of time planning for day one," SCOTT REID, Martin's comms director, told Playbook.

— Staffing up: Martin offered up HR advice. "Ministers will need to work with the Prime Minister's Office on the hiring of Chiefs of Staff and other senior personnel in their offices," read the minutes recorded by Privy Council Office officials. Reid told Playbook the message was clear: The PMO didn't appoint chiefs, but did want to be part of the process.

The PM's marching orders also included building relations with senior bureaucrats, parliamentary secretaries and MPs.

— Bye-bye, Sponsorship Program: The Cabinet vamoosed the program that had become a "negative symbol" for the Canadian people. Ministers also agreed to eliminate Communication Canada, a federal agency linked to the sponsorship mess.

Through it all, ministers made sure to maintain "the government web site." Good call.

— View from the inside: "It was quite a day," Wernick told Playbook. I was tagged by [PCO clerk] Alex [Himelfarb] with shadowing the PM all day and we had a swearing-in, a cabinet meeting, I sat in the corner while he took calls from foreign leaders, and there was a meeting with all the parliamentary secretaries. Day two was mostly budget and financial briefings."

Wernick witnessed the first Cabinet confabs for Martin, STEPHEN HARPER and JUSTIN TRUDEAU: "They all had a similar mood of crackling energy and anticipation. A lot of brand new ministers craning their necks to look around and take it in."

 

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MEDIA ROOM

— The Logic scooped a C$2 billion plan in Monday's Fall Economic Statement to "entice pensions to invest in startups and scale-ups."

— Still with the FES, The Globe and Mail cites sources claiming Ottawa could provide "up to C$15 billion" for pension funds to "invest in data centers for artificial intelligence that are powered by green energy."

— The Wilson Center's CHRIS SANDS joked in The Washingtonian: “If you quote me on this all my neighbors will hate me ... but I actually think Canada is more likely than D.C. to become a state.”

— CP reports: Canadian officials eyed ‘new opportunities’ no matter who won U.S. election

ROBERT ASSELIN of the Business Council of Canada writes in the Globe: Ottawa has abandoned any pretence of controlling its spending.

— “To be Syrian, it seems, is to live in disbelief,” SAMIA MADWAR writes in an essay for The Walrus. “I’ve had a difficult time processing the news, as much as I want to be able to rejoice.”

PLAYBOOKERS

Birthdays: HBD to Le Journal de Montréal's GUILLAUME ST-PIERRE, Bluesky Strategy's ANDREW LESLIE, NDP press secretary ERIN BURCHETT, former Quebec Cabmin HÉLÈNE DAVID, Bloc MP CLAUDE DEBELLEFEUILLE, journo and novelist LISE BISSONNETTE, and former NDP MP PAT MARTIN.

Saturday: Astronaut STEVE MACLEAN (70!), Public Safety Minister DOMINIC LEBLANC, journalist ALEC CASTONGUAY and StrategyCorp's LISA SAMSON.

Sunday: ANTHONY CARRICATO (40!), director of operations and international affairs for House Speaker GREG FERGUS, Sen. CHANTAL PETITCLERC and former MP JIM EGLINSKI.

Got a document to share? A birthday coming up? Send deets.

Noted: The Liberal "Laurier Club Holiday Event" is scheduled for Dec. 16 at the Canadian Museum of History. The annual bevy of Cabmins joining Prime Minister JUSTIN TRUDEAU includes AHMED HUSSEN, JONATHAN WILKINSON, GUDIE HUTCHINGS, JENNA SUDDS, RECHIE VALDEZ, SORAYA MARTINEZ FERRADA, KAMAL KHERA, MARC MILLER, YA'ARA SAKS, ARIF VIRANI, CHRYSTIA FREELAND and PATTY HAJDU.

Spotted: MPs, purchasing the Speaker's rum and whisky at the Parliamentary Dining Room (they are popular Christmas gifts).

— In the Senate: Sen. NANCY HARTLING, reciting LEONARD COHEN at the close of her Senate retirement speech this week. “Even at this time when … the world may seem dark and difficult, with flaws and hardships, try to find the crack where the light comes in,” she advised her colleagues.

Sen. MARTY KLYNE, paying tribute to Sen. BRENT COTTER, who turns 75 next week: “As our friend embarks on a well-deserved retirement, we reflect on a legacy built not just on hard work but on the values that define him — integrity, wisdom, a strong sense of justice and, of course, a deep love for Saskatchewan.” Read more tributes to Cotter here.

Sens. JULIE MIVILLE-DECHÊNE and CHANTAL PETITCLERC, urging the government to do more to “strengthen the responsibility of social media platforms” to protect the kids who use them.

Sen. FABIAN MANNING, making the case that Santa is a Newfoundlander and Labradorian.

In the Senate gallery: A delegation from Tuktoyaktuk.

Noted: Environment Minister STEVEN GUILBEAULT announced that the federal government "will aim to reduce emissions by 45-50 percent below 2005 levels by 2035."

A memo from the Canadian Union of Postal Workers to striking members: "In the midst of the ongoing postal strike, it’s easy to feel disheartened. The pressure of public opinion, financial strain, and relentless pushback can make even the most steadfast among us question this fight. But this is the time to pause and remember why this strike matters."

Movers and shakers: Bloc Québécois MP YVES PERRON is the party's new whip, replacing CLAUDE DEBELLEFEUILLE.

Among the many appointees to the Order of Canada on Thursday at Rideau Hall: KONRAD VON FINCKENSTEIN, RONALD DEIBERT, SHELLEY AMBROSE, CHARLES GORDON, COLLEEN JONES, MARC MAYER, RAYMOND SAINT-PIERRE, MICHÈLE OUIMET and ROSEMARY GANLEY.

 

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PROZONE

For POLITICO Pro subscribers, our latest policy newsletter by MIKE BLANCHFIELD: Ford to Trump: Lights Out

In other Pro headlines:

Tech billionaires prepare to invade the Pentagon

Trump's climate threats rattle world's biggest science meeting

The MAGA culture war comes for Silicon Valley

Finance sets hearing next week on ITC nominees

Companies feel the squeeze as Republicans intensify attacks on ESG, DEI

 

A message from Public Service Alliance of Canada:

The Liberal government must back down and reverse this unfair attack against pensions. Learn more.

 
TRIVIA

Thursday’s answer: On Dec. 12, 2000, the U.S. Supreme Court ended a vote recount in Florida in the presidential election contest between GEORGE W. BUSH and AL GORE.

Props to RAY DEL BIANCO, AMY SCANLON BOUGHNER, BARRIE FRIEL, GARY ALLEN, JOHN DILLON, PATRICK ST-JACQUES, ANTHONY VALENTI, MAUREEN MACGILLIVRAY, WAYNE EASTER, DARREN MAJOR, BOOTS VAISEY, CAROLYN MCCRIMMON, JOANNA PLATER, SABRINA PAYANT SMITH, DOUG RICE, ALYSON FAIR

JIM MUNSON, BARRY STRADER, BILL GARVIN, MARC LEBLANC, JAVIER GONZÁLEZ BLANCO, AMY CASTLE, ELIZABETH BURN, CAMERON RYAN, NATHAN GORDON, PAUL PARK, ALANNA SOKIC, MURRAY WILSON, DON NEWMAN, AVIGAIL RUCKER, FELIX BERNIER, GANGA WIGNARAJAH, ROBERT MCDOUGALL, MICHAEL MEIGHEN

JENN KEAY, DIANNE SHERRIN, MAGGIE BAER, WILL BULMER, CATHERINE DONG, BRANDON WALLACE, KATE SCHNEIDER, JOHN MERRIMAN, RAYLENE LANG, MALCOLM MCKAY, ALEX BALLINGALL, JANE DOULL, GEOFFREY CHAMBERS, SARA MAY, RALPH LEVENSTEIN, ARTHUR GAGNON and ALEX LANDRY.

NEIL SWEENEY also landed Wednesday’s question.

Friday’s question: Who reflected the following after a leadership race on Dec. 14, 1956:

“I was calm, more so possibly than usual. The opportunity that I had looked forward to was now given me, the opportunity to bring about, not a Canada of principalities, but a Canada in unity.”

Answer to ottawaplaybook@politico.com

Writing Monday's 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.

 

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