How the deal got done

From: POLITICO Ottawa Playbook - Wednesday Mar 23,2022 10:00 am
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Mar 23, 2022 View in browser
 
Ottawa Playbook

By Zi-Ann Lum

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WELCOME TO OTTAWA PLAYBOOK. I’m your host Zi-Ann Lum with Nick Taylor-Vaisey. The prime minister is in Brussels for an “extraordinary NATO summit” while the surprise of the Liberals’ supply and confidence deal with the NDP continues to reverberate at home. Plus, we catch up with SEAMUS O’REGAN on the final hours of high-stakes rail negotiations — and MARCO MENDICINO tells us what he’s doing in D.C.

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Driving the Day

NDP Leader Jagmeet Singh and Prime Minister Justin Trudeau.

NDP Leader Jagmeet Singh and Prime Minister Justin Trudeau on Parliament Hill in Ottawa on Thursday, Nov. 14, 2019. | Sean Kilpatrick, The Canadian Press

HERE’S WHAT HAPPENED — Talks that led to the astonishing news of Tuesday’s power pact started in the fall and had stalled before the holidays.

They whirred into motion after Prime Minister JUSTIN TRUDEAU called JAGMEET SINGH in early January to congratulate the NDP leader on the birth of his daughter.

That conversation, according to a senior party source, ended with a coda for the two leaders to continue what they started: Finding a way to formalize common ground. Playbook is not identifying the source because they were not authorized to speak publicly on the deal.

— Events, dear boy : The timing of those high-level talks between leaders synced with the week-long days after the convoy occupation dug itself in on the Hill, when Trudeau invoked and revoked the Emergencies Act and when Russia waged war in Ukraine.

The flurry of events gelled talks between Trudeau and Singh. By the end of February/early March, more staff became involved and the work progressed to reviewing each others’ platform for commitments to anchor a confidence deal.

— Cone of silence : Staff worked on proposals. Trudeau and Singh went through their handiwork, a list of common-ground items, filtering out untenable positions. The two leaders met a few times in person, but according to the source, most of the negotiations between parties were virtual.

Liberals and NDP started workshopping the first draft of the final version of the supply and confidence agreement last week. The polished deal was brought to caucuses Monday.

— The fine print: The agreement puts a firmer “by the end of 2023” timeline on the Liberals’ nebulous promise to bring in pharmacare. It also makes the NDP’s priority of fully implementing a dental care program for low-income Canadians by 2025 a government priority.

The deal has an expiry date: June 2025, but there’s nothing in it to preclude the NDP from withdrawing its support earlier. That extended runway gives the Liberals more time to figure out a succession plan if it will be Trudeau facing off against a new Conservative leader — or someone else.

DEPARTMENT OF CREATIVITY — While the PM framed the deal as a tonic for “hyperpartisanship and toxic polarization,” Conservatives coined other names for the confidence compact.

— Interim Conservative Leader CANDICE BERGEN: “The new NDP-Liberal government.”

— Conservative MP JOHN BARLOW: “Carbon-tax coalition.”

— Conservative MP SHANNON STUBBS: “The Liberal-NDP cabal.”

COLLECTED WISDOM — First, here’s VASSY KAPELOS, who broke the news, explaining the difference between a “supply and confidence agreement” and a coalition. 

— The Star’s SUSAN DELACOURT says “ the deal is evidence once again that it’s a mistake to count Trudeau out.”

AARTI POLE of the CBC talked to ERICA IFILL and ANTHONY FUREYabout the pact.

— Here’s PAUL WELLS in the Globe and Mail: “Trudeau must be over the moon … He’s finally getting his majority, six months behind schedule.”

— In the Financial Post, BIANCA BHARTI rounded up voices from the business community.

— Here’s the CBC’s AARON WHERRY: “The contents of the deal and the stability it promises could also have important consequences for federal public policy. But it's also an implicit reply to the message Canadians seemed to send politicians in the last election: more governing and legislating, please, and less electioneering.”

PIT STOP IN PARIS — Natural Resources Minister JONATHAN WILKINSON arrives in Paris today for a whirlwind trip to attend the International Energy Agency’s annual ministerial meeting.

A senior government source told Playbook that Wilkinson is bringing with him ideas for how Canada can help Europe deal with a short-term oil and gas crunch — potential plans officials have been working on for the past two weeks.

Canada doesn't have any export terminals for oil and gas which complicates ambitions to directly help allay short-term European energy security concerns in a time of crisis.

It’s a complex question within Canada’s own borders, the source said. Because supply has to move through the U.S. to be exported to Europe, it’s also an American conversation to figure out how much product can be accepted at the border to take down to the Gulf to get to international markets.

U.S. Energy Secretary JENNIFER GRANHOLM is chairing the meeting.

— Next up: More details for how Canada could contribute to easing short-term energy pressure in Europe could be announced as early as Thursday when the IEA meeting ends. Wilkinson has a scheduled call-back with media the same day.

POST-MORTEM — Labor Minister SEAMUS O’REGAN offered Playbook his view of the crucial final hours of negotiations between Canadian Pacific and its striking rail workers.

“In the final hours of negotiations, particularly labor negotiations, there's always drama. There's always last-minute challenges, last-minute hurdles. It's the nature of the beast. It remains elusive until the very last minute, and then you land it,” he said. “Federal mediators helped set the table, and met them at it. But ultimately, they arrived at this deal themselves. It's their deal.”

— A long night: O’Regan said he turned in at 4:30 Newfoundland time (that’s 1 a.m. in Calgary). He gave U.S. ambo DAVID COHEN a call late into the night. “The ambassador's been pretty close to this,” he said. A check-in with Biden’s labor secretary, MARTY WALSH, waited until Tuesday morning.

—That other news: Playbook asked O’Regan about the deal his party struck with the NDP. He attended the virtual Cabinet and caucus meetings on Monday night, in the midst of the negotiations, and came away onboard. “Especially with the mood I'm in right now, stability and certainty are very attractive to me,” he said. “And I think they're very attractive to a lot of Canadians. The world has enough uncertainty going on.”

For your radar

WIN IN WINDSOR — A senior government source told Playbook that today’s 11 a.m. auto sector announcement with FRANÇOIS-PHILIPPE CHAMPAGNE, OMAR ALGHABRA, DOUG FORD, VIC FEDELI and Windsor Mayor DREW DILKENS is one that involves multiple billions of dollars — and electric cars.

HALLWAY CONVERSATION

HOPE AND RANGE ANXIETY — News of the LIberal and NDP’s formalized pact sent climate policy wonks buzzing. We asked experts: Will this deal make any difference in federal climate policy from now to 2025? Responses have been edited and condensed for clarity.

CAROLINE BROUILLETTE, Climate Action Network Canada national policy manager: Currently, the confidence-and-supply agreement only reiterates existing government promises and commits to speeding up their implementation.

The stability the agreement provides — for policy-makers, investors and workers across what is currently known as Canada — must be leveraged to increase the speed and scale of the government’s climate action to meet the urgency of the moment.

The adoption of this agreement shows that leaders can put partisanship aside and think outside the box — now they must apply the same spirit to the climate crisis.

JULIA LEVIN, Environmental Defence senior climate and energy program manager : The stability that this agreement gives to the government will help them deliver on their environmental agenda and drive more ambitious climate action in line with what is required by science. The commitments made to date don't meet the scale of the crisis, and we urge the government to be bolder.

This agreement should not provide cover for longer timelines on key climate and environmental policies. As the polls show, a majority of Canadians know there is no time to waste on climate, plastic pollution or updating Canada's environmental laws. Our communities can’t afford any more delays.

SIMON DYER, Pembina Institute deputy executive director: A majority of Canadians voted for parties in the 2021 election that had strong climate platforms. We're in a period of implementation after years of delays on climate.

It's positive that there is a consensus between the two parties on these priorities and we need to see how they're going to be implemented, starting with the release of the emissions reduction plan. These are all positive commitments. But there are no new commitments here.

TODAY'S HIGHLIGHTS

4:30 a.m. (EDT) Prime Minister JUSTIN TRUDEAU arrives in Brussels and has a bilat with European Parliament President ROBERTA METSOLA. His address to the European Parliament begins at 12:30 p.m. (EDT)

— When in Brussels: Trudeau will meet with Finnish Prime Minister SANNA MARIN at 2:30 p.m. (EDT), and deliver remarks at the EU HQ with URSULA VON DER LEYEN at 3:35 p.m. (EDT). A working dinner with VON DER LEYEN follows at 3:45 p.m. (EDT).

10 a.m. Deputy Prime Minister CHRYSTIA FREELAND will attend the Liberals' national caucus meeting and has an 11 a.m. bilat with Latvian Deputy Prime Minister and Defence Minister ARTIS PABRIKS.

3:30 p.m. National Defence Minister ANITA ANAND, National Defence DM BILL MATTHEWS and CSE Chief SHELLY BRUCE are on deck at the House national defence meeting to talk supplementary estimates (C).

3:30 p.m. Official Languages Minister GINETTE PETITPAS TAYLOR, and three senior heritage department officials, appear before the House official languages committee.

4 p.m. Former senator JIM MUNSON is back in the Senate to appear at the social affairs, science and technology committee to answer questions about Bill S-203, An Act respecting a federal framework on autism spectrum disorder.

DATELINE D.C.

Public Safety Minister Marco Mendicino.

Public Safety Minister Marco Mendicino arrives for a news conference Feb. 16, 2022 in Ottawa. | Adrian Wyld, The Canadian Press.

Public Safety Minister MARCO MENDICINO is in Washington for the Canada-United States Cross-Border Crime Forum, which has convened for the first time in a decade. Mendicino spoke with POLITICO’s JOSEPH GEDEON on Tuesday evening. What follows is an edited version of the conversation.

Can you tell me about the significance of this trip and what you discussed?

We're meeting at a time where you have Russia’s invasion into Ukraine, which presents significant risks around Russian cyber attacks, and that's something that both the prime minister and the president have warned about. You are seeing more and more cyber attacks in the form of ransomware.

We're meeting against the backdrop of significant increases in ideologically motivated extremism. We talked about January 6 riots here in the Capitol as well as the recent illegal blockade in Ottawa.

We talked about the scourge of gun violence, and how it's important for us to be dealing with all of these critically important priorities.

One of the key takeaways from today’s cross-border crime forum is that we set up a dedicated task force to fight illegal gun trafficking at the border. And we'll see a modernized sharing of information and intelligence.

You were front and center of the trucker convoy response in Ottawa, and there was a convoy in D.C. as well. Did you end up comparing notes with any official on foreign funding or foreign influence related to the truckers coming from the U.S. to Canada?

We more than compared notes. We talked about how ideologically motivated extremism has evolved and is presenting new threats to social cohesion and trust and confidence in our democratic institutions.

We talked about the ways in which we can share intelligence and information to better understand how ideologically motivated extremism presents in our communities.

We talked about the tools that exist to reduce and mitigate those threats. We talked about the prospect, certainly from the Canadian side, of some new authorities coming out of the blockades.

We talked as well about our invocation of the Emergencies Act having been an effective and a necessary tool in bringing about the end to the illegal blockades and occupation in Canada.

You said you “more than compared notes” with some officials. Can you tell me some names? I know you met with Sen. GARY PETERS. Were there others?

We had the meeting today with Secretary [ALEJANDRO] MAYORKAS and Attorney General MERRICK GARLAND. We also had full-court press agency representation, so the deputy commissioner of the RCMP was present. We had senior representatives of the Department of Justice.

As you pointed out, I also had the chance to meet bilaterally with Sen. Peters, who is the chair of the Senate Committee on Homeland Security. We talked about a wide range of issues related to the blockade, including cooperation between our agencies to help detect and deter and, where appropriate, to prevent individuals who may have been coming — or for whom there was a reasonable basis to believe that they were coming — to aid in the illegal blockades.

We talked about disinformation and the need to make sure we are fully engaging social media platforms and big tech to be sure they are working with the government. We talked about the need to cooperate on foreign interference.

Canada has been championing the need for a global response to disinformation. Can you give us more details on what happened in your conversations? 

Around disinformation and online hate, I’m repeatedly calling out Twitter to take the proactive steps that are necessary to detect and, when appropriate, to take down anything that clearly falls into the category of hate speech.

Canadians and people around the world depend on the internet to keep themselves informed … But it's equally important we are all very aware of the fact there has been a real spike in disinformation, which can be used as a tactic by hostile state actors, like Russia, to deliberately mislead and distort what is actually occurring in Ukraine to undermine and to coerce Canadians and others.

— In other news: NEXUS interviews are resuming in April.

MEDIA ROOM

Former Cabinet ministers ALLAN ROCK and LLOYD AXWORTHY make the case for a UNGA-authorized force in blue helmets.

Dozens of countries have joined in purchasing and delivering weapons to support Ukraine’s war effort. POLITICO’s JOSEPH GEDEON made a list of who has provided what. 

— The timing and pace of return-to-office plans for Canada’s public servants will hinge on what the federal government decides to do with its vaccine mandate for employees, KATHRYN MAY writes in Policy Options. 

PROZONE

If you’re a POLITICO Pro , don’t miss our latest policy newsletter: The first test of Trudeau’s new deal.

In other headlines for Pros:
The weapons and military aid the world is giving Ukraine.
CP Rail, union reach deal to end railway stoppage.
Biden wants to spend infrastructure billions on climate and equity initiatives. But it’s not his call.
Big Tech boosts lobbying spending in Brussels.

HOUSE BUSINESS

12 p.m. Federal justice and Privy Council Office officials are at the Senate’s legal and constitutional affairs committee to answer questions about a motion related to the taxation of Canadian Pacific Railway in Saskatchewan.

— Multi-part meeting: GORDAN WYANT, the province’s justice minister, is on the witness list for a 1 p.m. slot. Canadian Pacific exec JAMES CLEMENTS speaks at 4:15 p.m.

3:30 p.m. TD Bank Group managing director FRANCIS FONG is in the hot seat at today’s House natural resources committee meeting as part of its oil and gas emissions cap study.

3:30 p.m. NACI medical advisor Dr. BRYNA WARSHAWSKY is on the witness list at the House health committee’s study of the Covid-19 emergency situation.

3:30 p.m. Canadian forestry sector representatives are at the House’s international trade committee meeting as MPs study Canada’s relationship with the United States.

3:30 p.m. The House heritage committee continues its study of the status of the Artist Act on basic working conditions for artists.

6:30 p.m. Former Bank of Canada governor DAVID DODGE will speak before the Senate banking, trade and commerce committee on a curiously vague topic: “An update on business investment.”

6:30 p.m. The Senate’s transport and communications committee continues its study on the impacts of climate change with the company of seven government officials from Environment and Climate Change Canada and Innovation, Science and Economic Development Canada.

Behind closed doors: The House liaison committee meets … MPs on the House natural resources committee will consider a draft report of their emissions reduction fund (onshore program) study.

Playbookers

Birthdays: HBD to JODY WILSON-RAYBOULD, Conservative MP RICHARD MARTEL, Quebec Green Party leader ALEX TYRRELL, Manitoba MLA RALPH EICHLER, former P.E.I. NDP leader LARRY DUCHESNE and former Quebec politician MARIE MALAVOY.

Send birthdays to ottawaplaybook@politico.com .

Movers and shakers: Tuesday marked the end of Conservative Party stalwart CORY HANN’s nine-year run as dcomm at HQ. He sent a final email saying he has no immediate plans for what’s next. Now is the right time to step aside, he wrote, and “allow for someone with a fresh perspective to take over.”

ZEXI LI, the Ottawan behind the injunction that silenced the horns, will receive the Mayor’s City Builder Award at today’s Ottawa City Council meeting. 

DOLLY MOORHEAD has joined the team at Canadian telehealth startup iHealthOX as their director of U.S. business development. She started a consulting LLC, Limenitis, through which she works with clients across the healthcare and biotech industries and is a former senior adviser to the U.S. Surgeon General in the Trump administration.

Spotted: NICK TAYLOR-VAISEY, counting the hours until tonight’s fundraiser at the Met. Hill + Knowlton's JOHN DELACOURT told Playbook that Ottawa’s GR firms combined forces to raise money for Met staff who lost pay during Covid and the trucker protest.

Among tonight’s sponsors: PROOF, EARNSCLIFFE, COMPASS ROSE, CRESTVIEW, GLOBAL PUBLIC AFFAIRS, COUNSEL, SANDSTONE GROUP, SUMMA, NAVIGATOR, BLACKBIRD and RUBICON.

— On the mend: Speaker of the House ANTHONY ROTA is recovering after scheduled bypass surgery in Sudbury.

— Farewells: MP MICHAEL COTEAU paid tribute to a former Ontario premier Tuesday in the House. “We often do not get to witness politicians who are not afraid to challenge the status quo, who think beyond the four-year election cycle,” he said. “As the 25th premier of Ontario bids farewell to the Ontario legislature after almost two decades, I want to take this opportunity, from the bottom of my heart, to thank KATHLEEN WYNNE for her passion, her integrity and her service to Ontario.”

Send Playbookers tips to ottawaplaybook@politico.com.

TRIVIA

Tuesday’s answer: Governor General MARY SIMON said Sunday on the Occasion of the Journée internationale de la Francophonie: “To hear your mother tongue, to have the opportunity to speak it, is to carry a little bit of ‘home’ with you, no matter where you are.”

Props to ANNE-MARIE STACEY, GREG MACEACHERN, MICHAEL MACDONALD, CULLY ROBINSON, KEVIN BOSCH, BOB GORDON and ROBERT MCDOUGALL.

Wednesday’s question: Name the current MP who was a longtime coach — and the most successful — in the Quebec Major Junior Hockey League.

Send your answers to ottawaplaybook@politico.com

Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Alejandra Waase to find out how: awaase@politico.com.

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