How to ask the PM for money

From: POLITICO Ottawa Playbook - Tuesday Jul 12,2022 10:00 am
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Ottawa Playbook

By Maura Forrest


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Thanks for reading the Ottawa Playbook. I’m your host, Maura Forrest, with Andy Blatchford. Today, we ask whether the premiers need a new pitch for more health-care funding. Also, FRANÇOIS-PHILIPPE CHAMPAGNE puts his foot down (ever so gently) with the telcos. And STEVEN GUILBEAULT goes to Washington.

DRIVING THE DAY

B.C. Premier John Horgan at a gathering of Canada's premiers in Victoria, B.C.

B.C. Premier John Horgan. | Chad Hipolito/The Canadian Press

TIME FOR A NEW PLAYBOOK? — Canada’s premiers are meeting in Victoria, where they’re standing united in their demand for more health-care funding from Ottawa. Sound familiar?

Maybe that’s because the current request, for the federal government to cover 35 percent of the provinces’ health-care costs, dates back to September 2020, when Ontario Premier DOUG FORD said the provinces were in “desperate need” of federal help.

“The time is now,” said former Manitoba premier BRIAN PALLISTER in March 2021. By September, the situation was “urgent,” according to B.C. Premier JOHN HORGAN. “It’s time now,” Horgan said last May.

But it clearly wasn’t time, because here we are in July 2022 and there’s still no firm commitment from the federal government.

— The sticking point: The provinces want an unconditional increase to the Canada Health Transfer (CHT) of roughly C$28 billion annually, while Ottawa favors doling out money with strings attached (for home care or mental health care, for example).

— A new approach: The impasse has some saying it’s time for the provinces to try a new tactic. Playbook spoke with DAVID MCLAUGHLIN, president of the Institute on Governance and Manitoba’s former clerk of the executive council and cabinet secretary under Pallister. This interview has been edited for length and clarity.

Do you expect anything different this time around?

The conditions are different now. The pandemic has shown the system is absolutely strained. And it has a big capacity issue that is going to require money from somebody over time. The second part is we actually have massive wait lists and backlogs, which is a more direct result of the pandemic.

Does that mean there’s more pressure on Prime Minister JUSTIN TRUDEAU this time?

There absolutely is more pressure because of healthcare being a rising concern for people. But that pressure is not going to, in my view, translate into simply an unconditional increase in the Canada Health Transfer as the principal funding instrument.

Then what pitch should the premiers be making?

They've got to up their communications and their political game, by making the healthcare backlog and wait times real, as a political issue. They've got to take the urgency from Covid and translate that healthcare emergency into a political emergency for the federal government.

The second part is harder. They have to be prepared to come to the table with some flexibility on targeting those dollars for their particular needs, rather than just unrestricted CHT cash. They have to say, “Here's what I'm going to do with those dollars.” And the more specific they can get, it'll be harder for the federal government to simply say no.

Did you give that advice when you were working for Pallister?

Yes. We were pressing for a conversation along the lines of what I was talking about. It didn't materialize quite that way. Now we're coming up to a year later, and I’m not certain anybody is further ahead.

Which provinces are dead-set against this approach?

Traditionally, it’s been Quebec, Alberta, Saskatchewan — the more autonomous provinces. Those are entirely legitimate and long-held positions. It’s just that the federal government has the dollars — they can just make a determination as to how they want to spend it. And so probably a combination of unrestricted CHT and what I call focused CHT might find a way to work through this.

— For more: Here’s the Globe and Mail’s CAMPBELL CLARK making a similar point: “[The provinces] won’t get $28-billion a year from Ottawa, but if they stop talking about the sum itself and start talking about the nurses and surgeries and services it would pay for, they could really pressure Mr. Trudeau to cough up more.”

For your radar

The U.S. Congress building is pictured.

Guilbeault is in D.C. | Zach Gibson/Getty Images

CAPITAL VISIT — STEVEN GUILBEAULT is in Washington, D.C. this week, his first trip to the U.S. capital as environment minister. He’s hoping in part to encourage U.S. lawmakers to do more to protect nature, ahead of the U.N. convention on biological diversity that will be held in Montreal in December.

Both Canada and the U.S. have committed to “30 by 30” — a pledge to protect 30 percent of the countries’ lands and waters by 2030.

— On the agenda: Guilbeault is meeting today with White House national climate adviser GINA MCCARTHY and U.S. Secretary of the Interior DEB HAALAND. He met Monday with Canada’s ambassador to the U.S. KIRSTEN HILLMAN, as well as Canadian representatives for the International Monetary Fund, the World Bank and the Inter-American Development Bank.

— Also on the itinerary: A meeting with JOHN MORTON, the U.S. Treasury’s first climate counselor, to talk about climate-related financial risks.

— As an aside: Guilbeault and his staff got caught up in airport chaos en route to D.C., when their Air Canada flight out of Montreal Sunday evening was delayed and eventually canceled. In the end, the delegation had to fly out of Ottawa Monday morning. Politicians — they’re just like us.

LUCKI UNDER FIRE — Here’s the Canadian Press with the latest headline from Nova Scotia’s mass casualty commission: “RCMP Commissioner Brenda Lucki initially recommended the federal government not share information on the types of guns used in the Nova Scotia mass shooting — a stance she apparently shifted a few days later.”

COME TOGETHER — Industry Minister FRANÇOIS-PHILIPPE CHAMPAGNE says the country’s major telecom companies are going to have to work together to protect Canadians during emergencies like last week’s Rogers Communications outage.

Champagne told reporters Monday that the major providers — Rogers, Bell, Telus, Shaw, Videotron, SaskTel and Eastlink — will have 60 days to reach agreements on assisting each other during outages, better communication and emergency roaming, which would allow customers to switch to rival carriers during outages.

During a call with journalists that featured liberal use of the words “unacceptable” and “resiliency,” Champagne also said the CRTC will be investigating the Rogers outage.

— What he didn’t say: Champagne did not, however, offer anything new about the proposed Rogers-Shaw merger, which Canada’s Competition Bureau is trying to block.

— Meanwhile: Bloomberg’s GEOFFREY MORGAN and KEVIN ORLAND reported that both Rogers’ and Shaw’s shares dropped Monday, even as Rogers CEO TONY STAFFIERI told BNN Bloomberg Television the company remains committed to the deal.

— Also: Those formal agreements may sound like something, but the Globe and Mail’s ALEXANDRA POSADZKI offered a dose of reality, citing industry sources who said the measures Champagne is proposing “would not have prevented or resolved the massive network outage.” Champagne seemed to concede that point during the media briefing. Catch Posadzki on this morning's edition of The Decibel.

— Related: Here’s the Logic’s DAVID REEVELY with an account of trying and nearly failing to join the conference call with Champagne, an experience that felt “just a LITTLE too on-the-nose.”

NORD STREAM 1 — The reviews are in regarding Ottawa’s controversial decision to return six turbines to Europe that will help deliver Russian natural gas to Germany. Natural Resources Minister JONATHAN WILKINSON announced Saturday that the government would allow a “time-limited” exemption to its sanctions on Russia to help Germany avoid “significant hardship.”

Here’s what Canada’s allies and the Liberals’ political opponents are saying:

“If a terrorist state can squeeze out such an exception to sanctions, what exceptions will it want tomorrow or the day after tomorrow? … The decision on the exception to sanctions will be perceived in Moscow exclusively as a manifestation of weakness. This is their logic.” — Ukrainian President VOLODYMYR ZELENSKYY

“We support the Canadian government’s decision to return a natural-gas turbine to Germany for use in the Nord Stream 1 pipeline. In the short term, the turbine will allow Germany and other European countries to replenish their gas reserves, increasing their energy security and resiliency and countering Russia’s efforts to weaponize energy.” — U.S. State Department spokesperson NED PRICE

“Instead of circumventing the global sanctions package meant to punish Putin, the Liberal government should approve new pipelines and liquid natural gas terminals so that Canadian natural gas can displace Russian energy supplies in Europe. Allowing the return of the gas turbine sets a dangerous precedent of folding to Putin’s blackmail of Europe.” — Conservative critics MICHAEL CHONG, JAMES BEZAN and PIERRE PAUL-HUS

“Russia will use these pressure tactics again and again – and the Liberal government must not capitulate. New Democrats urge the Liberal government to reverse this decision.” — NDP foreign affairs critic HEATHER MCPHERSON

— In related reading from POLITICO: Nord Stream nightmare: Has Putin stopped Europe’s gas for good?

TODAY'S HIGHLIGHTS


10:30 a.m. ET Prime Minister JUSTIN TRUDEAU will visit a heavy-duty electric vehicle production facility in Quebec’s Eastern Townships and meet with workers.

11:30 a.m. ET Labor Minister SEAMUS O’REGAN will hold a press conference in Hamilton to discuss labor shortages in the construction sector.

11:30 a.m. CDT Natural Resources Minister JONATHAN WILKINSON will deliver remarks and hold a press conference at the Regina & District Chamber of Commerce and the Saskatchewan Chamber of Commerce.

4 p.m. PDT Families Minister KARINA GOULD will hold a press conference following a meeting of ministers responsible for early learning and child care in Burnaby, B.C.

5 p.m. ET Environment Minister STEVEN GUILBEAULT will hold a media call-back to conclude his first visit to Washington, D.C.

6 p.m. ET Trudeau will sign the book of condolences for former Japanese prime minister SHINZO ABE.

ASK US ANYTHING


TELL US WHAT YOU KNOW — What are you hearing that you need Playbook to know? Send it all our way.

SUMMERTIME READS


Here’s our summer 2022 reading list so far

Today’s picks come to us from MICHAEL POWELL , vice president of government relations with Electricity Canada.

Brain Food: Innovation in Real Places by DAN BREZNITZ

A lot of my work time is spent thinking about how Canada is ever going to invent and build fast enough to meet our environmental commitments and what we actually need to do to make all this happen. Inspired by a great conversation in The Logic, I picked up a copy of Breznitz’s “Innovation in Real Places,” which challenges whether we are even asking the right questions.

Guilty Pleasures:

Dandelion by JAMIE CHAI YUN LIEW: Jamie is a friend, so I’ve had this sitting on my bedside table for a few months while waiting to give it the focus it deserves. It’s the story of an immigrant woman coming to terms with the disappearance of her mother. I’m bad at finding fiction, so am looking forward to something that is well beyond my normal focus and expands on living the Canadian immigrant experience.

Atlas of Remote Islands: Fifty Islands I Have Never Set Foot On and Never Will by JUDITH SHALANSKY. I found this book after a week of Worldle (a geographical Wordle clone) featuring remote and uninhabited islands. Each page is a short, thematic story (300 or so words!) about a mostly uninhabited faraway land. You might not think that there’s much that is emotionally resonant about Bouvet Island, the remotest in the world, but you’d be wrong. It’s out of print, but the Ottawa Public Library has three copies.

Send us your suggestions — your brain food and your guilty pleasure! We'll share them in the Playbook newsletter. 

PAPER TRAIL


CYBER SUPPORT — The federal government is seeking external help as Ottawa looks to shore up cyber defenses for small businesses at a time when the country is facing more attacks than ever.

“Cyber attacks are increasing in frequency and are having a significant impact on businesses and critical infrastructure providers,” reads a government request-for-proposals document posted last week by Innovation, Science and Economic Development Canada. “The impact can be devastating, and the severity of the related financial consequences can be profound.”

Businesses accelerated their adoption of digital technologies during the Covid-19 pandemic — and the need for better cybersecurity has exploded along with it.

— The situation: The notice says while the government has made “significant” investments to help Canadian SMEs strengthen their cyber protections, it acknowledges more still needs to be done to help firms — especially those lacking IT capacity — to defend themselves.

SMEs, the document says, account for more than 52 percent of Canada’s gross domestic product and employ 16 million people.

Smaller businesses, however, have under-invested when it comes to cybersecurity and it’s a growing concern, the notice says.

— The need: The tender says ISED is creating a new program to support SMEs — specifically “micro” and small-sized firms — that lack cybersecurity expertise.

The government is interested in working with a third party to develop and oversee the project. The partner would recruit and approve a network of organizations that will work directly with small businesses.

— What’s next: The solicitation period for the project ends Aug. 18.

MEDIA ROOM

Boris Johnson addresses the nation.

Boris Johnson. | Carl Court/Getty Images

— Westminster will remember BORIS JOHNSON for his lies above all else, argues POLITICO’s JACK BLANCHARD in this piece on the soon-to-be-former PM’s legacy. In related news from POLITICO: Johnson set to step down on Sept. 6.

— Top of POLITICO this morning: Trump 2024? Not just yet, some Republicans say.

— The next public hearings on the Capitol riot will focus on extremist groups who incited Jan. 6 violence and Trump's hours of inaction during the riot. From our colleagues in D.C., here are the key players.

GARVIA BAILEY and HILARY BEAUMONT joined The Big Story pod to discuss what Roe v. Wade means for Canada.

RAHIM MOHAMED shares with Hub readers: The message that will win Pierre Poilievre the next election. Spoiler: “Canadians will settle for competence.”

BOB DUGAN, the Canada Mortgage and Housing Corp.’s chief economist, has published a blog post on where he thinks the economy is headed. 

Noted in The Hill Times: Canada’s federal legislators should not be bullying each other.

NAM KIWANUKA has a  timely opinion piece at TVO.org: “Why public health can’t tsk-tsk people about getting their 3rd shot & then shush the ones who want their 4th.”

ADRIAN LEE’s pod — City Space — tackles a question planners are asking: Hybrid work is here to stay. What will that mean for our downtown cores?

— Finally, in case you missed it: James Webb Space Telescope's 1st image shows deepest, sharpest view of universe ever.

PLAYBOOKERS


Birthdays: HBD to Senator SARABJIT MARWAH, journalist MICHELE LANDSBERG, Saskatchewan MLA DON MCMORRIS (aka dad to Olympic snowboarder MARK MCMORRIS ), Alberta lawyer and conservative campaigner KARAMVEER LALH, former MP ANDY SAVOY, former chief electoral officer of Elections Canada JEAN-PIERRE KINGSLEY and former Yukon politician ROBERT BRUCE.   

Movers and shakers: Prime Minister JUSTIN TRUDEAU has announced the reappointment of MONA NEMER as Canada’s chief science adviser for a two-year term, effective Sept. 25. Nemer was first appointed in 2017, and was reappointed in 2020.

MICHAEL RODYNIUK is the new president and CEO of Canadian North Airlines.

Spotted: BOB RAE, looking to GEORGE ORWELL for inspiration.

ALBERTA DAY — an annual thing starting Sept. 1. Alberta leg reporter CATHERINE GRIWKOWSKY explains: “If you're into nerdy procedural details, there was a bill in the spring sitting that made it easier for special days to be declared in perpetuity instead of having to make the declaration annually.”

Former U.S. ambassador to Canada BRUCE HEYMAN, making tracks for British Columbia via Montreal to do some salmon fishing.

Vancouver’s beach logs, claiming the coveted “most viewed” top spot on the Guardian website.

MICHAEL WERNICK, throwing a little shade at the provinces for “their annual demand for more federal transfers.”

Media mentions: NIL KÖKSAL is the new host of CBC's As It Happens.

PROZONE


If you’re a POLITICO Pro , don’t miss our latest policy newsletter from ZI-ANN LUM and NICK TAYLOR-VAISEY: Turbine decision earns praise, condemnation. 

In more news for POLITICO Pro s:
Champagne calls on telecoms to formalize emergency protocols.
338Canada: Quebec Premier François Legault is en route to historic victory — with an assist from adversaries.
Biden’s Middle East trip could bring short-term pain for long-term gain.
Lawmakers to question IRS on audits of Trump foes.
A legal shield for social media is showing cracks.
Draft ‘pandemic treaty’ shows big ambitions, long road to agreement.

TRIVIA


Monday’s answer: LIONA BOYD, also known as “The First Lady Of The Guitar,” wrote a song for PIERRE TRUDEAU. 

Props to BRAM ABRAMSON, ROBERT MCDOUGALL and JOANNA PLATER.

Tuesday’s question: Name the adviser to the government of Canada who once credited a walking path by the Ottawa River for helping to sort a decision on fish farming. “Walking re-energizes me when I have difficult decisions to make. I have a lot of them,” the official said.

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.

Playbook wouldn’t happen without Luiza Ch. Savage and editor Sue Allan.

 

Follow us on Twitter

Nick Taylor-Vaisey @TaylorVaisey

Sue Allan @susan_allan

Andy Blatchford @AndyBlatchford

Maura Forrest @MauraForrest

Zi-Ann Lum @ziannlum

POLITICO Canada @politicoottawa

 

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