National
Paul Wells: The Second Finance Ministers Club
I want to write 5,000 words of narrative in the wake of Chrystia Freeland’s resignation, but we’re still in the middle of the story. Thoughts kind of pour out. I found myself telling La Presse, “‘What the f—k?’ has replaced ‘Hello’ as the standard greeting in Ottawa since Monday.” We’ll see whether they use that quote.
Here are some thoughts, from different angles. I don’t know whether Freeland’s resignation will blow over, the way Justin Trudeau’s last 20 messes did, because I don’t have a crystal ball, but I think Justin Trudeau hopes it’ll blow over. Because he always hopes it’ll blow over. I hear, as you do, rumours that the PM will resign.
On Monday night at the Laurier Club he didn’t look like he’d received the memo yet. On Tuesday his staff cancelled his year-end interviews, something I’ve never seen in 30 years in Ottawa. We’ll see.
Meanwhile, some thoughts.
1. A very British resignation
A standard conversational gambit in Ottawa this week is to point out that nobody’s ever seen a resignation letter like Freeland’s — I’ve given it some thought, and I’ve decided you’re a dink. (I paraphrase, barely.) Except that’s not quite true. Millions of people have seen dozens of resignation letters like it, because you see them every few weeks in the United Kingdom. And Chrystia Freeland was an editor in London for the Financial Times for years.
Canada is in some ways an unhealthily reticent country. I once covered an international summit where the only reason I knew anything the Canadian delegation had done was that I was sitting next to the journalists from France and I could overhear the French government’s briefings. Resignation letters here follow suit: it’s been a privilege, more time with my family, and out. You’re often left wondering, if you loved the boss so much, why leave?
But in England…
Rosie Duffield to Keir Starmer: “How dare you take our longed-for victory, the electorate’s sacred and precious trust, and throw it back in their individual faces and the faces of dedicated and hardworking Labour MPs?! The sleaze, nepotism and apparent avarice are off the scale. I am so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party.”
John Glen to Boris Johnson: “I can no longer reconcile my commitment to the role and to the financial services sector with the complete lack of confidence I have in your continuing leadership of our country… [R]ecent events concerning the handling of the appointment of the former Deputy Chief Whip, and the poor judgement you have shown, have made it impossible for me to square continued service with my conscience. The country deserves better…”
Nadine Dorries to Rishi Sunak: “You flashed your gleaming smile in your Prada shoes and Savile Row suit from behind a camera, but you just weren’t listening… But worst of all has been the spectacle of a prime minister demeaning his office by opening the gates to whip up a public frenzy against one of his own MPs…Since you took office a year ago, the country is run by a zombie Parliament where nothing meaningful has happened. What exactly has been done or have you achieved?”
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2. The Zoom call
I resist biography as an analytical tool. People outgrow their backgrounds all the time.
But just about everybody who follows politics has been wondering how Trudeau could fire his most loyal lieutenant by a Zoom call three days before he needed her to deliver a crucial fall economic statement. If the Globe’s latest story is true, and he told her Mark Carney would take the job without knowing whether Carney will take the job, that’s even wilder. Who does that?
The short answer is, somebody who is used to getting his way. Then you look at Trudeau’s life and you think, why wouldn’t he expect to get his way?
The rich kid always knows the normies will cover for him. If he needs a ride, some kid with stars in his eyes will wave his keys and volunteer. If he’s hung over he can borrow the lecture notes. He shows up in racist makeup to yet another party — forcing every other person in the venue to decide how to respond — and once again nobody stands up to him or makes a fuss. Indeed, when the record of that behaviour threatens his political career decades later, there’ll be plenty of volunteers to criticize anyone who mentions the record, rather than criticizing the guy who acted like that.
He runs for the leadership of a national political party on a platform of “I’ll tell you what I stand for after I win.” He mentions carbon pricing precisely one time at his first national leaders’ debate. He dumps his electoral-reform promise at the first hurdle, and later, when asked about it, he blames the person who asks. He gaslights Canada’s first Indigenous attorney-general for months, but he is not particularly kinder to her replacement, who is ejected from Cabinet because, I don’t know, it’s Wednesday or whatever. He lets a 72-year-old man run for re-election and only after it’s over does he let the guy know he’s getting dumped from Cabinet.
He fires the Clerk of the Privy Council by news release while travelling.
In particular, if there’s anyone in the world he might have expected to tolerate the kind of high-handedness we’re hearing about Friday’s Zoom call, it’s Chrystia Freeland. Her eagerness to endorse him in the immediate aftermath of his latest cockup has been such a reliable feature of Canadian public life it’s devolved into a kind of shtick. SNC-Lavalin, 2019: “she has absolute confidence.” Blackface, six months later: “tremendous confidence.” WE Charity, 10 months after that: “The prime minister has my complete confidence.”
Perhaps only Jagmeet Singh has shown more confidence than Freeland, over the years, in Trudeau’s leadership. Given that record — and his own much longer record of taking advantage of others’ generosity — it’s not too much of a stretch to think that at some point he decided his deputy prime minister was just another easy mark.
Turns out that’s the kind of mistake he only needed to make once.
3. Speaking of Jagmeet Singh
He’ll qualify for his pension in 70 days. After his astonishing scrum on Monday, he might as well put it on a T-shirt.
4. After Trudeau
Say he quits. What next?
Here’s something I’m starting to hear from Liberals. I don’t believe I’m the first to write about it, but it hasn’t received enough attention yet.
Can the party ensure the legitimacy of its leadership succession process?
I suspect some large number of the presumed candidates for his succession won’t run. They haven’t exactly been a bold lot so far. But assume for the sake of argument that there are four or five candidates, and none has an insurmountable advantage.
The Liberal Party transformed its leadership-selection process for the 2013 race: preferential vote among “supporters.” Supporters didn’t need any record of involvement with the party, didn’t need to pledge any support, didn’t need to pay a dime in return for voting rights. Whee! Populist rush: 300,000 people registered as supporters, 130,000 voted. Trudeau won overwhelmingly on the first ballot. Of course: he was the only candidate most people voting in the contest had ever heard of.
After a big defeat, or with such a defeat looming, figure far less than half as many people would be involved next time. Say, very generously, 40,000 supporters.
How hard would it be to rig that contest for mischievous purposes or worse? Probably not hard enough. In a vote open to every random “supporter,” it would take only a few thousand, or tens of thousands, of supporters to capture a major national political party for any cause or faction that might want one.
I traded emails with a former senior Liberal organizer about all this today. Without prompting, this veteran of many leadership contests mentioned the need to “ensure… that groups not Liberal-friendly are not organizing to disrupt the democratic process within the Party.” Those groups could include supporters of one side in the Israel-Hamas dispute. Or proxies for a hostile regime. Or pro-life or anti-MAID or anti-vaccine groups. Or practical jokers: Could the process as currently constituted block a write-in campaign for Doris Day?
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Alberta
Energy East May be the Nation Building Mega-Project Canada Needs Right Now
From EnergyNow.Ca
By Jim Warren
Is it Time to Put Politics Aside for Team Canada? – Jim Warren
People on the prairies who understand the value of a flourishing oil and gas sector are hopeful the election of a Conservative government will sweep away the barriers that blocked the Northern Gateway and Energy East pipelines. Some optimistic industry analysts suggest a project similar to Northern Gateway may be doable but concede that reviving Energy East would probably be a bridge too far.
It is getting difficult to recount exactly how many times Quebec’s demands for special treatment have disrupted national unity. Quebec’s rejection of Energy East was the most recent assault on national cohesion to anger large numbers of people on the prairies. It amounted to sticking a finger in the eye of the oil-producing provinces. And while the Poilievre Conservatives are set to win the next election, their victory won’t signal a big change in attitudes about the environment in Quebec.
Politicians from Quebec argue over which of their parties can claim it hates pipelines the most. Bloc Québécois leader, Yves-François Blanchet brags about the prominent role his party played in killing Energy East. His boasting actually drew the ire of Quebec Liberals and environmental groups in 2019. They claimed the Bloc was taking credit for their work. The 338Canada website, has the anti-oil Bloc Québécois winning 45 of the 78 federal seats in Quebec in the upcoming federal election.
Provincially, the Coalition Avenir Québec (CAQ) government is marginally more reasonable to deal with. It claims to stand for Quebec’s national autonomy as opposed to outright separation. Quebec premier, François Legault, says the west would do well to behave more like politicians from his province when dealing with Ottawa. He makes a good point.
Revisiting just how eminently reasonable the original Energy East proposal actually was suggests many Quebec politicians are immune to common sense. If the Energy East proposal wasn’t acceptable to the overly zealous activists who influence environmental policy in the province, why would we expect a different response in the near future?
There are, however, coercive options that might work. Premiers from Alberta and Saskatchewan have proposed withholding a portion of Quebec’s annual equalization payment in response to its lack of cooperation on building a pipeline to tidewater on the Atlantic coast. Unfortunately that option would require a constitutional amendment, and those have proven to be extremely difficult to engineer.
Alternatively, prairie governments might encourage Enbridge to shut down its Line 9 pipeline which has the capacity to transport up to 300 barrels per day (bpd) of western oil to Montreal. That sort of move would require getting industry players on side–including Enbridge and Suncor, who owns a 137,000 bpd capacity refinery in Montreal. It is encouraging to recall that Peter Lougheed faced little in the way of industry opposition in the 1970s when he cut oil shipments to Central Canada by 10%.
Quebec’s past behavior pretty much guarantees the province would threaten separation if confronted with the loss of its equalization welfare ($14 billion for fiscal 2023-24). They might be less concerned about getting a pipeline from the west turned off—they seem to prefer tanker ships over pipelines.
Many westerners are weary of Quebec’s separation blackmail. Some of those who have run out of patience say, “next time they threaten to go, just tell them not to let the door hit them on the ass on their way out.”
The cancellation of the Energy East pipeline was viewed on the prairies as rejection of a project that would generate greater national harmony. It was seen as a nation building exercise of benefit to Quebecers, people from the Maritimes, Ontario and Western Canada. Westerners mistakenly assumed even environmentally sanctimonious Quebecers would recognize the benefits of obtaining more of their oil from pipelines rather than via marginally risky railways and ocean going tankers.
Following the 2013 Lac-Mégantic rail disaster, people from western Canada’s oil patch naively assumed approval of Energy East was a no brainer. The disaster killed 47 people and destroyed downtown Lac- Mégantic. It was caused by the derailment and explosion of a train hauling oil tanker cars. It seemed reasonable to imagine Quebecers would happily purchase safer, less expensive Canadian oil transported by pipeline.
Energy East would have been the longest pipeline in North America. It was to run from Alberta to Saint John, New Brunswick. The plan was to convert 2,900 miles of existing natural gas pipeline into an oil pipeline, build 1,900 miles of new pipeline and make a $300 million upgrade to an Irving oil terminal in New Brunswick. It was a visionary project reminiscent of the building of the transcontinental railway and the original TransCanada pipeline.
The pipeline would be capable of transporting 1.1 million bpd. No more than 400,000 bpd would be required to replace the foreign oil being imported by tanker and rail. The remaining 600,000 barrels could be exported to new international customers for Canadian oil. The value of those new export revenues would conceivably approach $15 billion annually.
It is worth remembering the influential role Quebec Liberals played in opposing Energy East. Montreal’s Mayor Denis Coderre, was a former Liberal cabinet minister who led the Montreal Municipal Community (MMC) a coalition of 82 Montreal area municipal governments. As much as anything, the MMC’s strident opposition to Energy Easy in January of 2016 foretold TransCanada’s October 2017 cancellation of the pipeline.
Inspiration for cancelling the pipeline was provided by Quebec’s robust environmental lobby—led by activists like Steven Guilbeault. Polls conducted at the time showed the Quebec politicians who opposed Energy East had the support of 60% or more of the public. The pipeline was similarly denounced by premier Philippe Couillard and Quebec’s Liberal government at the time. While the southwest corner of B.C. has typically been thought of as the home of Canada’s Greens, in Quebec the Liberals are the party preferred by environmental activists.
Liberals in Ottawa remained officially neutral during the Energy East controversy but were unofficially cheering for the pipeline’s cancellation from the sidelines.
One of the biggest challenges to confront an effort to revive the project would be finding willing investors. TransCanada walked away financially bruised and who wants to be similarly burnt? And, the Trans Mountain example casts a dark shadow on the idea of a government-owned line.
Trying to convince Quebecers, especially young adults, about the value of new oil pipelines seems like a fool’s errand. Given that only 50% of 16-20 year-olds in Quebec have a driver’s license, it could prove difficult convincing them about the importance of petroleum to Canada’s transportation system and economic health.
No less discouraging is the fact that Quebec’s environmental movement remains dedicated to killing the petroleum and natural gas industries on behalf of combatting climate change.
Yet, oddly enough there have been surprising signals coming out of Quebec in recent years suggesting regular Quebecers don’t share the same level of anti-oil and anti-pipeline enthusiasm as their province’s politicians and environmentalists. Perhaps this is something worth looking into before giving up entirely on the idea of a pipeline to Atlantic tidewater.
Automotive
Liberals Have Cut Canada’s Electric Vehicle Subsidies, Now It’s Time to Kill the 2035 Mandate
Former Liberal MP Dan McTeague calls on Mark Carney and all other leadership candidates to kill Trudeau’s electric car mandate.
President of Canadians for Affordable Energy (CAE) and former Liberal MP Dan McTeague says, “It’s good that the Trudeau government are ending their taxpayer funded electric vehicle subsidy, but it’s time to take the most important step of all and kill the government’s mandate that all vehicles bought in Canada be battery powered by 2035.”
As of January 10th, Transport Canada announced that it “paused” its financial incentive to purchase electric vehicles which had provided up to $5,000 of taxpayers money to anyone who purchases an electric vehicle. Quebec ended its $7,000 subsidy last February. However, the government policy requiring that every car sold in Canada after 2035 be electric remains in force.
“Even with these giveaways in place, it was a stretch for hard working Canadians to afford an EV,” said McTeague. “We at CAE are happy for Canadian taxpayers that the program is coming to an end. But this move must be followed up by abolishing the mandates on unaffordable electric vehicles once and for all.”
“My hope is that each and every Liberal Leadership candidate stands up and acknowledges that mandating that all new cars in Canada be electric by 2035 is wrong and that that policy needs to be scrapped,” added McTeague.
Dan McTeague served in Parliament as a Liberal MP for 18 years, and is now Executive Director of Canadians for Affordable Energy. CAE counts on it’s 60,000 supporters nationwide, you can find more information here: https://www.affordableenergy.ca/
For more information contact:
Dan McTeague
647-220-0114
[email protected]
Support Dan’s Work to Keep Canadian Energy Affordable!
Canadians for Affordable Energy is run by Dan McTeague, former MP and founder of Gas Wizard. We stand up and fight for more affordable energy.
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