Capital Dispatch: The tax break that won't unblock Parliament

Here's what you need to know about the top political stories of the week.
November 22, 2024
Capital Dispatch

Trudeau tries to turn the page with a tax holiday, a minister steps down, and Trump names new ambassador 


It's not every week the prime minister drops his only Alberta minister amid controversy, and then drops more than $6 billion in tax breaks and cheques. 

It was the affordability play that –  for at least a few hours – was thought to be the move that could break the procedural impasse, but the NDP decided against that. What happens now? 

Plus, is trilateral North American free trade headed for a tailspin? 

 

The week that was


Lagging in the polls and having a hard time in the House of Commons, this week Prime Minister Justin Trudeau tried to turn the page, signalling to Canadians his government is attuned to the persisting affordability concerns. 

On Thursday, backed by his deputy Chrystia Freeland, Trudeau unveiled a two-month GST/HST holiday to the tune of $1.6 billion, and another $4.6 billion going out to 18.7 million Canadians in the form of $250 rebate cheques. The specifics on the when and who, are in here, if you missed it. 

What stood out for many were two things. One, that Trudeau once spoke against the idea of handing out money in this way. And two, the list of soon-to-be federal tax exempt items includes some eyebrow-raisers. 

From pre-made meals and pastries, to candy, cheese puffs, and ice cream there are a lot of snacks Canadians will soon be saving a little bit of money on. Also on the list: children's clothing and toys, video-games, jigsaw puzzles, and Christmas trees. 

"Canadians have been through a lot. They work hard. We see that. We've been able to get through the past couple of years. Everyone had to tighten their belts a little bit. Now we're going to be able to give a tax break for all Canadians," Trudeau said.  

Requiring legislation to become a reality, eyes quickly turned to the opposition parties. Taking credit the night before the announcement after having floated a similar policy first last week, NDP Leader Jagmeet Singh said he was ready to help fast-track the relief to Canadians.

But, it wasn't enough to sell his caucus on ending the privilege stalemate. Instead, Singh offered a one-day pause. 

Conservative Leader Pierre Poilievre called it a "two-month temporary tax trick" but dodged reporters when asked if his party will vote for it, stating he wanted to read the legislation first in case the government tried to lump in other stalled legislation alongside it. 

What stood out to me in covering the news on Thursday, was a point made to me during an interview with Abacus Data pollster David Coletto. He noted that because the measures are time-limited, there's also risk and "some vulnerability" politically, in rolling them back.

"The big question for me is, are they going to have the courage to put this HST and GST back on all the goods they've removed it [from] given that the carbon price is going to increase just a few months later, so we may not see this come back onto those goods," Coletto said.

"I think the pressure will be on them to probably keep this in place, especially if talk of the town here in Ottawa is that we're going to be in an election in the spring, so the politics of this probably will trump the policy."  

Of course, the other big story of the week was Randy Boissonnault's cabinet departure

In a statement issued just before question period on Wednesday -- a day after saying his only Alberta minister still had a place on his front bench -- Trudeau's office said the prime minister and Boissonnault "have agreed that Mr. Boissonnault will step away from Cabinet effective immediately."

"Mr. Boissonnault will focus on clearing the allegations made against him," the statement said.

Boissonnault has been under the microscope for months, from the House Ethics Committee's scrutiny on his former medical supply business partner's texts and subsequent probing around "the real Randy," to revisions of his past Indigenous identity claims after federal contract bids surfaced.

The criticisms of Boissonnault and calls for him to resign came to a boil this week, after the National Post reported his previous claim that his great-grandmother was Cree was untrue.

Veterans Affairs Minister and Associate Defence Minister Ginette Petitpas Taylor has temporarily assumed Boissonnault's responsibilities as minister of employment, workforce development and official languages.

The Assembly of First Nations called the situation a "teachable moment," and opposition MPs who had been pushing for Boissonnault to either be fired or resign, welcomed the news. 

"If you pretend to be Indigenous for the purpose of accessing Indigenous benefits, funding or prestige, you will be found out," Blake Desjarlais told reporters on Parliament Hill Wednesday. "We will find you."

Ahead of his ouster, Liberal MPs and ministers' comments on the controversy surrounding their colleague were mixed. Some said it was up to Trudeau, others said the embattled then-minister could speak for himself. 

Liberal MP Vance Badawey, a member of the Indigenous caucus of which Boissonnault was also previously a part, said earlier Wednesday he didn't think the controversy took away from his group's work, and he "absolutely" supported Boissonnault staying on. 

Northern Affairs Minister Dan Vandal said Boissonnault "has always been a great ally to Indigenous caucus."

After the news broke, several caucus-mates said they were confident Boissonnault, now sitting as just a Liberal MP, will be able to clear his name. 

Not to be missed

2 arrested during Greenpeace protest outside Stornoway 

Two people were arrested Thursday following a protest outside Stornoway, the official residence of Canada's leader of the Opposition. Greenpeace Canada says a group of activists placed a replica oil pumpjack on the driveway of Stornoway Thursday morning to "draw attention to how Pierre Poilievre's anti-climate agenda would protect polluters over people." As colleague Josh Pringle reports, the Ottawa Police Service said 12 people gathered on Acacia Avenue at approximately 7:15 a.m. for an "unlawful demonstration." "The group blocked access to the residence with a structure, and some proceeded to chain themselves to the structure, not allowing the family to pass," police said. "After being informed that a criminal offence was occurring, four of the demonstrators removed themselves from the structure. Two people refused to comply with repeated orders to remove themselves from the structure and were arrested."

Donald Trump picks Pete Hoekstra to be ambassador to Canada 

U.S. president-elect Donald Trump has nominated former diplomat and congressman Pete Hoekstra to be the U.S. ambassador to Canada. In a Truth Social post, Trump made a point of noting that during his first presidency, his administration "brought trade with Mexico and Canada to a level playing field for our wonderful farmers and working families." As colleague Lynn Chaya reports, Hoekstra thanked the president-elect in a post on X. "Honoured for the opportunity to serve," he said.  Reacting the next day, Foreign Affairs Minister Melanie Joly said Hoekstra will help advance "shared priorities."

NY Consul General Clark doubles down on condo purchase   

And, Canada's consul general in New York doubled down when called back to testify on Thursday, telling MPs again that he didn't exert influence over Global Affairs Canada's decision to purchase a $9-million Manhattan condo to be his new residence. As The Canadian Press reports, Tom Clark was summoned back to testify after media stories indicated he had raised concerns about his old digs. Testifying under oath this time, Clark told MPs his comments about the former residence were raised in passing, and he was not aware they'd been flagged to the department. "Certainly, they were never, ever intended to sway anything," Clark said. "I did not talk to anybody about relocating. My comments, casual as they may have been, were directed toward what I had to work with at 550 Park Avenue," Clark said. 

Quote of the week

"We just got off the phone with all the premiers, and there's a clear consensus that everyone agrees that we need a bilateral trade deal with the U.S. and a separate bilateral trade deal with Mexico… We will be asking for a meeting with the prime minister and his representatives to make sure that we're all on side. Another great consensus is, it's all about team Canada. We're going to take that approach and you know, we're going to sit down and have a great strategy moving forward."   

- Ontario Premier Doug Ford, on the premiers' stance on potential USMCA renegotiations. 

The week ahead

The main development I'll be watching for next week is whether the "upcoming legislation" – as Government House Leader Karina Gould described it – to implement the new tax holiday and benefit, gets advanced, and how, given the persisting privilege stalemate. 

NDP House Leader Peter Julian seemed to offer some optimism that anything could be possible with unanimous consent, though in this situation that seems an unlikely route. 

The Conservatives have not offered any assurances that they'd be willing to back that play and offer what could be the only outstanding votes preventing unanimous consent after Bloc Québécois Leader Yves-Francois Blanchet suggested he'd likely be remiss to reject measures that result in more money in people's pocket. 

The more plausible path, given the current House dynamics, is the NDP help the Liberals adjourn debate on the privildge motion, as they've said "for one day."

Though, they'd also need a plan to put the privilege motion related to Boissonnault's business partner to the side, too. Then they could advance a programming motion to expedite the passage of the tax break and benefit bill through all stages within one sitting, before resuming the standoff. 

Earlier this week the Liberals turned over "nearly 29,000 pages worth" of documents related to the Green Tech Fund affair, but because there were redactions, the Official Opposition vowed not to relent. Next week the filibuster will hit the two-month mark. 

That's two months of government legislation and more stalled, not moving. And both the Liberals and the opposition parties seem to be waiting for the other side to relent, with nothing more than a potential temporary reprieve ahead, as the stakes get higher. 

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