David Cohen’s sophomore year in Canada

From: POLITICO Ottawa Playbook - Wednesday Jan 18,2023 11:00 am
A daily look inside Canadian politics and power.
Jan 18, 2023 View in browser
 
Ottawa Playbook

By Zi-Ann Lum and Nick Taylor-Vaisey

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Thanks for reading Ottawa Playbook. I’m your host Zi-Ann Lum with Nick Taylor-Vaisey. President JOE BIDEN’s man in Ottawa looks to the year ahead. (He had Very Diplomatic things to say about U.S.-Canada relations until bagels were brought up.) Another House committee whirrs from slumber today. Plus, ex-finance minister BILL MORNEAU’s book is out and we sift through the memoir-manifesto for its notable quotables.

DRIVING THE DAY

David Cohen speaks during an interview.

David Cohen, the U.S. ambassador to Canada. | David Kawai/The Canadian Press


DIPLOMATIC DOUGH PAS U.S. Ambassador DAVID COHEN really stepped into it at the end of a 23-minute interview when Playbook asked the envoy for one word to describe a Montreal bagel.

“Good,” he said in his office at the U.S. embassy in Ottawa. “Good, but not excellent.”

— The year ahead: 2023 is poised to be busy for the former Comcast exec — and not just because his bagel review will follow him for the rest of his days in Canada. The embassy is just beginning to sort out details of President JOE BIDEN’s visit in March.

— Work in progress: An agenda for Biden’s official visit is still in flux, he said, adding critical minerals, continental defense (the Arctic, in particular) and migration issues are some significant bilat issues that could be ripe for high-level talks.

“Everyone's just back from [the North American Leaders’ Summit] and I think everyone's taking a little bit of a breath,” Cohen said.

— Bet on this: “We going to stick to the roadmap,” Cohen said when asked what opportunities he sees for stronger U.S.-Canada relations this year.

Trudeau and Biden unveiled the “Roadmap for a Renewed U.S.-Canada Partnership” after meeting in February 2021. They called it a blueprint to support ambitions of “mutual prosperity.”

— Quiet as a good thing: Playbook asked Cohen how often he talks with President Biden.

“I actually don't talk to him very often, which he tells me is what I should hope for,” Cohen said. “Because the odds are if he's calling me it's because I've done something wrong or he needs me to do something more than what I'm doing. I talk to his senior staff on a much more frequent basis.”

— New year priorities: Haiti continues to be a hot topic between the U.S. and Canada while the humanitarian situation worsens in the country.

Any involvement in Haiti, Cohen said, “in all likelihood, will need to be a United Nations-sponsored and the United Nations-organized effort.”

He said any assistance is more likely to be related to the police than military “just to sort of adjust some of what people have been talking about.”

Sanctions targeting “Haitian elites” is Global Affairs Canada’s current go-to approach to quelling gang terror in the country.

This interview excerpt has been edited for length and clarity.

The U.S. sees potential in Canada taking a leadership role in Haiti, could you help us understand what that leadership role is?

The United States does have an interest in Canada stepping up and playing a leadership role in whatever is determined to be in the best interests of resolving the situation in Haiti, which first and foremost will be something that Haiti is interested in. Haiti has to ask for help.

If there was a takeaway from the NALS on Haiti, it wasn't at the level of "will Canada play a leadership role?" Or, "what will that leadership role look like?"

The agreement was that Canada and the United States should work together with the United Nations to try to develop what an engagement and external engagement would look like, in order to support the Haitian National Police to bring some stability to Haiti, all under the guidance, direction and at the request of Haiti. And once we have that, then we can address the issue of what a leadership role by Canada would look like.

Is there any timeline for that external engagement?

It’s ongoing. First, you have to have the plan. We have started the Canada-U.S.engagement in trying to determine what that engagement would look like.

There's a plan for a plan.

Well, there was an agreement to talk about what a plan would look like. I don't know that that in and of itself is a plan. That was the major Haiti takeaway from the NALS.

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HALLWAY CONVERSATION


SUNNY WAYS — McKinsey has been awarded more than C$100-million in contracts since the Liberals were elected in 2015. In a story Tuesday, the Globe shared the new summary from Public Services and Procurement Canada.

In a statement earlier this week, McKinsey said it’s proud of its 55-year history in Canada.

MPs on the House operations and estimates committee will meet this afternoon to debate the merits of studying the relationship. 

In and around the Ottawa bubble, there has been no shortage of opinion on the matter.

Here are a few highlights:

KONRAD YAKABUSKI, the Globe: “Business schools across the country would do well to undertake a case study on McKinsey & Co.’s remarkable success in winning contracts from the federal government since Justin Trudeau’s Liberals took power. There, they’ll find insights into how Ottawa really works.”

CHANTAL HÉBERT, The Bridge: “The public service at its highest level is there and has the security, in theory, to speak truth to power about some idea, some initiative, some policy the government wants to get off the ground.

“My concern is — having watched consultants that are very competent otherwise — their primary goal is to satisfy the client. And that does not always involve telling the client, ‘You are completely wrong in wanting to do this. It’s not a good idea.’”

SEAN SPEER, The Hub Roundtable: “The Trudeau government has apparently decided that the federal public service isn’t capable of producing the kind of policy analysis and underlying economic analysis and so on that it needs to carry out its agenda. It speaks to a state capacity problem.”

JORDAN LEICHNITZ, Curse of Politics: “This is why we have a civil service. If we want to attract good people to our civil service and retain them, there has to be some sense that what they’re doing is more than pushing paper along and there can be some role in shaping the government.”

IAN BRODIE, The Herle Burly: “I don’t have a particular problem with government going outside of the civil service for advice and for help. … Losing the core of the civil service to manage programs, that’s a different story.

“The idea that some of these management consulting companies have been brought in to manage sort of core programs of the federal government, I think that’s very bad news for the civil service, speaks to a degeneration of civil service ability to deliver on core services. And if that goes on, then that is a worrisome challenge.”

TODAY'S HIGHLIGHTS

Deputy Prime Minister and Finance Minister of Canada Chrystia Freeland walks to a meeting with Treasury Secretary Janet Yellen at the Treasury Department in Washington, Tuesday, Jan. 10, 2023. (AP Photo/Carolyn Kaster)

Deputy Prime Minister Chrystia Freeland walks to a meeting at the Treasury Department in Washington on Jan. 10.2023. | AP


— Prime Minister JUSTIN TRUDEAU is in Shawinigan, Que. — the last stop on his three-day tour checking out firms related to critical minerals, batteries and electric vehicles. A 10:50 a.m. media scrum is on his schedule.

— Deputy Prime Minister CHRYSTIA FREELAND is in Davos, Switzerland, for the World Economic Forum’s annual meeting.

— Agriculture Minister MARIE-CLAUDE BIBEAU is in the U.K. to meet her counterpart MARK SPENCER, the country’s minister of environment, food and rural affairs. Bibeau’s is part of a four-day trip with stops in the U.K. and Germany.

9 a.m. NDP Leader JAGMEET SINGH kicks off his party’s three-day caucus retreat in Ottawa. The party opens the doors for media at 10:30 a.m. for Singh’s keynote address.

11:15 a.m. Freeland will participate in a Davos panel titled “Restoring Security and Peace” with NATO Secretary-General JENS STOLTENBERG, Polish President ANDRZEJ DUDA, U.S. Director of National Intelligence AVRIL HAINES and Ukrainian deputy PM YULIA SVYRYDENKO. CNN’s FAREED ZAKARIA will moderate.

Talk of the town


IDEAS MAN — Here's a one-sentence summary of BILL MORNEAU's new book: A rookie politician vaulted into a primetime Cabinet gig grew frustrated by an overbearing PMO, a prime minister lacking in managerial talent, and a waning interest in fiscal prudence — and the time has come to tell his side of the story.

It's a tale of colliding principles, where Morneau claims good politics constantly sidelined his preference for cautious stewardship of the nation's books.

Much of the media coverage of the former finance minister's memoir gravitates to his depiction of the friction he encountered.

The PM's team rejected his top pick for chief of staff. They forced 2019 platform ideas on him without meaningful consultation. They (allegedly) leaked stories about "clashes" with the PM that he says culminated in his resignation.

But we tore ourselves away from all the spats and grudges in "Where To From Here,” because there's a book full of honest-to-god ideas hiding between anecdotes.

— On taxation: Morneau advocates for a "total revamp" of the tax system, but pitches a handful of concrete measures meant to produce a fairer playing field that would more effectively attract foreign investment. There are seven in total:

→ Raise the floor of the highest tax bracket to something more in line with the U.S., where the top bracket kicks in as low as C$464,416 for single filers — and as high as C$928,833 for married couples filing jointly. Canadians hit the top rate at C$216,511.

→ Raise the GST to 7 percent.

→ Lower the overall corporate tax rate (15 percent) closer to the small biz rate (9 percent).

→ Maintain an exemption on capital gains on the sale of a principal residence.

→ Establish a separate capital gains tax rate "to accommodate inflation and other concerns."

→ Make incremental changes to the tax system, and shoot for simplicity.

→ Keep tax rates low for low- and middle-income earners.

— On growth: Canada's legendarily moribund productivity growth merits its own chapter. And Morneau returns to the subject later in the book.

His big idea is a new Growth Commission that would report to both federal and provincial governments. The non-partisan commissioner's term would extend seven years, and they'd deliberately offer advice that may not jibe with the sitting government's instincts.

The commission would take a critical look at Canada's regulatory system, taxation, competition policy, intellectual property protections, insolvency and bankruptcy protections, and the ability of startups to scale up.

— The best line in the entire book: "Politics in Canada can be a confusing experience."

You said it, Bill.

PROZONE


For POLITICO Pro s, our latest policy newsletter: The bank’s next move.

In news for POLITICO Pro s: 

Von der Leyen announces Net-Zero Industry Act to compete with U.S. subsidy spree.

Ukraine calls for ‘Cyber United Nations’ amid Russian attacks.

Top 4 takeaways from POLITICO Pro's briefing on California.

Coal community's transition leaves a hole in its tax base.

Fed announces scenarios for big bank climate exercise.

MEDIA ROOM


— APTN reports: Wauzhushk Onigum Nation finds 171 anomalies during search of St. Mary’s school site.

— The Star’s This Matters pod talks to Queen’s Park journo ROB FERGUSON about Premier DOUG FORD’s plans for Ontario health care.

VINCENT LAM has worked on the frontlines of Canada’s opioid crisis. What he's seen haunts him, he tells JOHANNA SCHNELLER in an interview with Maclean’s.

CBC News’ JACQUES POITRAS reports New Brunswick Premier BLAINE HIGGS’ Chief of Staff LOUIS LÉGER is leaving his post.

— Conservative MP JEREMY PATZER’s exec assistant GERRITT VAN DORLAND told The Hill Times’ ABBAS RANNA he’s running for the CPC nomination in Oxford, a safe Tory riding.

Playbookers


Birthdays: HBD to Labor Minister SEAMUS O’REGAN. Also celebrating today: People's Party of Canada Leader MAXIME BERNIER is 60

Spotted: Intergovernmental Affairs Minister DOMINIC LEBLANC doing some mainstreeting at a Timmies in Sackville, New Brunswick … On the left coast, Veterans Affairs Minister LAWRENCE MACAULAY joined Liberal MP WILSON MIAO in Vancouver to visit the Chinese Canadian Military Museum.

On the other side of the pond: Assistant Deputy House Speaker and Liberal MP ALEXANDRA MENDÈS, Tory MP TOM KMIEC and Sen. DAVID WELLS are in the U.K. as visiting members of the Canadian branch of the Commonwealth Parliamentary Association.

Movers and shakers: Earnscliffe Strategies has acquired Switchboard Public RelationsCHRISTOPHER PARSONS is leaving Citizen Lab to start a new job with the information and privacy commissioner of Ontario in February.

Media mentions: Global News’ BRYAN MULLAN welcomes new colleague SHOGOFA DANISH to the capital with a tour the House of Commons chamberBRYAN PASSIFIUME hitting the one-year milestone at the National Post … Globe columnist ROBYN URBACK on mat leave after the early arrival of a baby girl.

Send Playbookers tips to ottawaplaybook@politico.com.

On the Hill


Find upcoming House committees here

Keep track of Senate committees here

The House of Commons resumes Jan. 30 and the Senate is back Jan. 31.

1 p.m. The House government operations and estimates committee meets after four members asked to request the launch of a new study exploring government contracts awarded to McKinsey & Company.

TRIVIA


Tuesday’s answer: The 1978 cohort of House of Commons pages was the first to include women.

Props to JENN KEAY, GANGA WIGNARAJAH, ROBERT MCDOUGALL, GORDON RANDALL, LAURA JARVIS and JOANNA PLATER. 

Wednesday’s question: Speaking about their first job, name the sitting MP who said, “I was a paper boy for three years. Trust me, delivering papers in wet and windy winters taught me a lot about persistence and how serious people are about getting the news.”

Send your answer to ottawaplaybook@politico.com

Playbook wouldn’t happen: Without Luiza Ch. Savage and Sue Allan.

 

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