National
By-election Bombshell! Justin Trudeau’s Liberals lose safe Toronto riding
Benefit of hindsight
Feel free to start coming back any time, big guy
Well, of course I saw it coming all along. What kind of fool could have imagined the Liberal in Toronto — St. Paul’s had any chance?
Hang on. I’m just getting word that I didn’t see it coming. In fact, as recently as Monday night I wrote a post I’ll be hearing about until the cows come home. Sorry about that!
Here are the actual final results, barring any recounts, which may not happen because Conservative Don Stewart’s margin of victory, while slim, is too large to trigger an automatic recount.
Congratulations, Don Stewart! I never doubted you’d win. Hang on. I’m just getting word that I doubted you’d win as recently as last night.
Things will now start to happen quickly. Expect Liberals to work their way through four of the five Kübler-Ross stages of grief before lunch. Denial will come easily, benefiting as it does from long practice. Acceptance may take longer.
The Paul Wells newsletter is fun reading even when I’m calling the results of a by-election wrong! Imagine how much you’ll enjoy it when I’m right about something!
In part this is because on paper there isn’t that much to accept. The day’s news is not earth-shaking and, in isolation, should not be taken as definitive. It’s true that by-elections are strange events, though if you add them together they do have some predictive power. It’s true that Leslie Church’s long service as Chrystia Freeland’s chief of staff turned out to be more of a hindrance than a help, a data point whose implications the Deputy Prime Minister won’t want to think much about today. It’s true the Liberals didn’t even try all that hard, if by “didn’t try all that hard” you mean “they tried as hard as they possibly could, my God they tried so hard, my God.”
But a single off-season defeat in a riding the Liberals have, in fact, previously lost during the Paleozoic era is not a larger thing to accept than, say, a punishing loss to Ireland and Norway in a Security Council vote at the UN. Or the loss of two senior cabinet ministers in a controversy in which the ministers who quit were radiantly, obviously in the right. Don’t take my word on that, incidentally: ask David Lametti, who agreed with Jody Wilson-Raybould but managed to keep his job anyway. For a while.
A single by-election defeat is not a larger thing to accept than the prime minister’s documented history of slapping on dark makeup for social occasions, a habit that stretched from junior college to young adulthood. It’s not a bigger deal than firing your finance minister during a global fiscal calamity so you can replace him with somebody who knows less about money. It’s not evidence of poorer strategic thinking than the choice of Parliament as the venue for dismantling a new Conservative leader, given that Parliament has long been where Justin Trudeau and most of his government perform worst.
It’s not a bigger deal than mocking monetary policy during an election campaign. It’s not a big new development, compared to the Prime Minister’s reluctance to meet his own cabinet ministers to discuss business, an oddity of his management style that’s been documented in a growing number of books (look out for Marc Garneau’s this fall!).
The prime minister has been on the ropes before, so to speak, and all those trials have made him the man he is today. Or rather, I suppose, his response to them has. I have no particular advice for Justin Trudeau today, or to the party he leads with the unstinting consent of its members. I screwed up last night by sending a column before the facts were in, so I’m feeling a little sheepish this morning. I’ll let Liberals decide what to do next.
As recently as two summers ago, I used to give them advice. It amounted to this: Notice when something you’re doing isn’t working. Change it. Make sure people see you changing it, so you don’t look quite so full of yourself. Rinse and repeat.
That post from 2022 ends:
“Don’t worry. He won’t take this advice either. Whatever the Liberal leader does on his return from the sunless south, it probably won’t resemble anything we’ve mentioned today. He’ll probably keep doing what he’s been doing. With the same results.”
Let me read to you
My excellent short bestselling book, Justin Trudeau on the Ropes: Governing in Troubled Times, is now an audiobook, narrated by the author, who is me. Here it is on Audible. Other platforms soon.
Here’s the story of the book, if you’re just catching up. Here’s an episode of my podcast with guest host Vassy Kapelos interviewing me about the book. Paper and ebook editions remain easy to find and buy, for yourself or friends.
We decided to make the audiobook some time after we published the, uh, more booky formats. It’s a response to surprising and gratifying demand. It’s also a promissory note: If this belated audiobook edition finds an audience, it won’t be my last.
There’s a school of thought that says there’s not much demand for nonfiction Canadian audiobooks. Here’s your chance to confound the skeptics. Thanks as always for your support.
Economy
Trudeau Government Capping the Canadian Economy (and Energy Industry) Just to Impress International Agencies
From EnergyNow.ca
By Kasha Piquette
The incoming Trump Presidency has promised to “unleash American energy” with plans to “free up the vast stores of liquid gold on America’s public land for energy development.” This week, the Trudeau government unveiled the draft details of its plans for a cap on greenhouse gas emissions from the Canadian oil and gas sector. These proposed regulations would cap all greenhouse gas emissions equivalent to 35 percent below levels in 2019 with the lofty goal of achieving a 40-45 percent reduction by 2030.
It is a plan that the province of Alberta and others contend would be a cap on production and cause elevated prices for consumer goods across Canada, cost up to 150,000 jobs and reduce national GDP by up to C$1 trillion ($720 billion).
These proposals would make Canada the only oil and natural gas-producing country to attempt an emissions cap on such a scale. The regulations propose to force upstream oil and gas operations to reduce emissions to 35 percent less than they were in 2019 by 2030 to 2032. Notably, while hydrocarbon production increased from 2019 to 2022, Canadian emissions from the sector declined by seven percent.
Perhaps significantly, and much to the apparent annoyance of Alberta’s Premier, the Federal announcement was made slightly ahead of the UN COP29 Climate Summit in Azerbaijan. Per the Paris Agreement, each country submits its climate ambitions to UN as National Determined Contributions (NDCs). However, the federal government has also passed the Net Zero Accountability Act, which, by December 1st, 2024, could require even more aggressive reduction targets for 2035. Does this mean that the federal government may be positioning itself to announce even more ambitious emission targets – all to be announced at that conference?
It is unclear whether, how and in what form, the emissions cap will come into effect. With the next federal election slated for late October 2025 and polls that show the current Liberal-NDP coalition government to be far behind the opposition Conservatives, the federal carbon tax and the proposed emission cap have an uncertain future.
Other business interests have voiced concerns about Canada’s increasingly discordant, incoherent climate policies and regulations, which have caused the Canadian oil and gas sector to be at a competitive disadvantage in the global energy market. Clearly, Alberta considers that the Federal government has, once again, overstepped its constitutional bounds with the proposed emissions cap and, along with its victorious Supreme Court challenge against the Impact Assessment Act, has vowed to launch more court challenges. Alberta and other Provinces have contended that, with regional exemptions, the federal carbon tax is being applied unfairly as a patchwork of standards with Alberta, New Brunswick, Saskatchewan, Ontario and Nova Scotia, and the opposition Conservative party, mounting a growing chorus against the Liberal government’s broader price on carbon. By contrast, the proposed regulations for an emissions cap have been aimed specifically at one industry sector – one that is largely concentrated in western Canada.
Meanwhile, Canadian oil production, aided by the new export capacity of the TransMountain Pipeline completed this year, has grown to a record 5.1 million barrels per day making Canada the prime (60%) source of US crude oil imports in 2023. Meanwhile, the industry has been engaged in considerations for the potential development of carbon capture and storage (CCS) to trap greenhouse gasses underground. However, this untested technology would cost billions, needs to be proven on a larger scale and requires industry cooperation combined with all levels of government support.
The Federal announcement, and the hostile reaction from Alberta and possibly other oil-producing provinces, mean that once again, Canadian investment in the oil and gas sector will be confronted with ever more uncertainty as they encounter time-consuming court challenges. These competing political agendas ensure that major Canadian investment decisions will, once again, be deferred while other international jurisdictions race to develop their hydrocarbon export capabilities, investments that are unencumbered by any emissions caps.
Canadians need to consider carefully how these policies and debates are affecting our energy security and standard of living as Canada. In addition to carbon pricing, Canada has already promulgated regulations for EV mandates in the transportation sector, policies that have required tens of billions in subsidies. It has also introduced the complex clean fuel standard and the proposed national clean electrical standards. These policies are affecting not just Canada’s productivity, GDP and exports. By attacking the Western provinces, Ottawa is unnecessarily creating regional tensions and a less politically stable federation. We need to think about how co-operative federalism can be re-established in ways that account for the basic needs of all Canadians – and not just accommodate arbitrary targets for emissions designed to impress international agencies.
Kasha Piquette is an Alberta-based strategic energy advisor and a former Deputy Minister of Alberta Environment and Protected Areas.
David Clinton
Is Canada Abusing the Charter of Rights and Freedoms?
Canadians have no absolute right to equal treatment under the law.
Monitoring the intersection between equality and equity
Let me explain that. Section 15 of the Charter of Rights and Freedoms was, from the perspective of the Charter’s creators, an exceedingly difficult needle to thread. The tension between its two subsections carries the potential for confusion and even abuse. Here’s the text itself:
(1) Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
(2) Section (1) does not preclude any law, program or activity that has as its object the amelioration of conditions of disadvantaged individuals or groups including those that are disadvantaged because of race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
15(1) guaranteed the equal treatment of all individuals. That’s something I can’t imagine any reasonable-minded person opposing. The problem was that, at the same time, the authors also wanted to leave room for unfair treatment for select groups through affirmative action programs. That’s the purpose of 15(2).
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If 15(2) didn’t exist, challenges to, say, hiring practices targeting historically disadvantaged racial groups could be launched based on the rights found in 15(1). Imagine people who didn’t technically qualify as disadvantaged but who might be better suited for and in greater immediate need of an advertised job. If the “affirmative action” candidate was nevertheless hired, couldn’t the others argue that they’d just suffered Charter-level discrimination? 15(2) is designed to ensure such challenges don’t happen.
Such state-imposed inequality may or may not be justifiable. That’s a debate that doesn’t interest me right now. Instead, my primary focus is on how the principle could be widely abused.
I should clarify that these rules only apply to government programs and agencies. While private companies might be bound by other areas of related law, the Charter was only written for government operations. But it’s nevertheless worth remembering that 4.4 million Canadians work for one level or another of government (when you include hospitals and public schools). That’s around 21 percent of all Canadian workers. And many more of us interact with governments regularly.
What kinds of abuse are possible? Well, consider how so many equality-related decisions are highly subjective and rely on the good faith and clarity of mind of the policy makers and public officials in positions of power. In that context:
- How can we know that factors like “ameliorative”, “disproportionate”, or “disadvantaged” are accurately and appropriately defined?
- How can we know that favoring one group won’t cause deep and irreparable harm to others?
- How can we know that even good-faith decisions aren’t made based on outdated assumptions or inaccurate stereotypes?
Easy-to-imagine practical examples of abuse could include:
- Provincial scholarship programs that target low-income students from only certain ethnic groups while excluding members of other groups who might currently experience even greater financial hardship.
- Seats in highly competitive university programs that are restricted to only candidates expressing specified identities without objective evidence that such individuals are currently meaningfully underrepresented in those programs or professional fields.
- Government-funded employment programs that subtly target communities likely to share particular political beliefs.
- Internal career advancement policies that prioritize identity and ethnicity over competence that lead to reduced organizational capacity.
- Social disruption due to arbitrary official favoritism for some ethnicities and identities over others.
Of course, misuse of 15(2) can always be tested in court. Programs are, after all, expected to pass the Oakes Test (for objectives that are pressing and substantial) and the Kapp Test (for goals that are truly ameliorative and appropriately targeted).
But that requires someone who notices the problem and has the considerable means necessary to launch a court challenge. There aren’t many people like that running around.
A government that felt that misuse of the law was causing significant damage to society could choose to by-pass 15(2) altogether by invoking the Notwithstanding Clause or by amending the constitution itself. But…well, good luck surviving either attempt.
More realistically, the government could write new legislation that guides the interpretation or application of 15(2). That could mean carefully defining what constitutes an “ameliorative program” or setting clear eligibility criteria for such programs. There would be no need to change the constitution, simply to properly define it.
Alternatively, governments could govern by example. This might mean tailoring their own policies and programs to reflect a more constrained interpretation of 15(2). They could actively participate in court cases to advocate for particular interpretations and present compelling arguments to influence how courts understand and apply the provision.
Finally, of course, they could appoint judges to the Supreme Court and federal courts who are more aligned with values associated with absolute equality under the law.
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