Michael Sabia's next move

From: POLITICO Ottawa Playbook - Thursday May 25,2023 10:11 am
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May 25, 2023 View in browser
 
Ottawa Playbook

By Kyle Duggan, Zi-Ann Lum, Joseph Gedeon and Nick Taylor-Vaisey

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Thanks for reading the Ottawa Playbook. We're your hosts, Kyle Duggan and Zi-Ann Lum, with Joseph Gedeon. Today, a showdown at PROC and a departure from finance. Plus, we catch up to the Parliamentary Black Caucus in Washington.

DRIVING THE DAY


STUDYING THE STUDY — Twice in as many weeks and our attention is fixated back on PROC, where the table is being set for a good old fashioned partisan showdown. And on a break week, no less.

Opposition MPs demanding a public inquiry into foreign interference are forcing the House procedure committee to meet today to discuss a motion to haul special rapporteur DAVID JOHNSTON in front of them for a grilling over why he ultimately opted against an idea he endorsed at first. The math is simple. The prospect of another filibuster is … pretty good. But the committee is not going to see him for a while yet regardless, so don’t plan your day around it.

Although, with Johnston preparing to hold public hearings in the coming months, and with little resolved politically in the wake of his report, the issue is set to be the hot-button issue that dominates the summer — providing weeks of fundraising bait and framing opportunities on all sides.

PM LASHES OUT — Take, for instance, JUSTIN TRUDEAU’s Wednesday media avail in Winnipeg, Manitoba, where he accused PIERRE POILIEVRE ofonly questioning his [Johnston’s] integrity” and not aspects of the report. Trudeau accused his rival of maintaining a “veil of ignorance” — wording lifted right out of page 53 of the report —– by refusing to cooperate on an “extremely serious issue.”

At the recent Liberal convention, Trudeau made clear how he plans to frame Poilievre heading into the next election: not serious enough for the job. (Now where have we heard a line like that before…?)

For Poilievre, Johnston is another “gatekeeper” elite, “blocking average Canadians from the truth.

CUE THE ACKBAR MEMES But please don’t … because that’s so 10 years ago. BQ Leader YVES-FRANÇOIS BLANCHET called the PM’s invitation to have opposition leaders read confidential intelligence materials behind the report “a trap” that would hobble their ability to publicly criticize the government.

Democracy Watch’s DUFF CONACHER is pledging to file a complaint with the ethics commissioner to investigate whether Johnston violated the Conflict of Interest Act, since he and the PM have statements on the record about their mutual friendship.

DON’T HOLD YOUR BREATH — Except there is currently no ethics commissioner. Nor an interim one. That means no investigations can take place for the time being. Conacher has already sent a separate letter calling for an investigation into whether the PM breached conflict of interest rules by appointing Johnston.

Johnston defended his integrity at Tuesday’s news conference and said he received an opinion from a former Supreme Court justice clearing him for the role.

 

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For your radar

Chrystia Freeland walks to a meeting.

Deputy Finance Minister Michael Sabia, back right, with Finance Minister Chrystia Freeland at the Treasury Department in Washington, earlier this year. | Carolyn Kaster/AP Photo

WORKAHOLIC — MICHAEL SABIA’s return to government was originally telegraphed as a temporary role focused on pandemic recovery.

That assignment is apparently over. Sabia is reportedly due to be named by the Quebec government to succeed SOPHIE BROCHU as the next CEO of Hydro-Québec after her surprise resignation in January.

— Sorry we’re closed: Finance Canada declined an interview request to speak with Sabia. The department, instead, offered a boilerplate, one-line statement that Playbook already published yesterday: “Michael Sabia remains the deputy minister of finance.”

— A very particular set of skills: When CN underwent the transformation from Crown corporation to privatized company in the mid-1990s, then-CEO PAUL TELLIER tapped Sabia to be his No. 2. Sabia helped transform Bell in the early aughts after a run of bad investments — and did the same in Quebec at Canada’s second-largest pension fund.

Prime Minister JUSTIN TRUDEAU appointed Sabia as deputy minister of finance during the first year of the pandemic, as the government unleashed record stimulus spending. His last budget this year distilled the country’s convoluted energy strategy into a simple pyramid chart. Cue Hydro-Québec’s call for help.

His eight-month tenure at the Canada Infrastructure Bank was scrutinized at a parliamentary committee last week for its McKinsey links. He zoomed in from his office with piles of multi-coloured folders, stuffed with papers, covering his desk.

— Learning curve: Having no energy industry experience will be a challenge for Sabia at Hydro-Québec. The largest power utility in Canada faces shrinking surpluses in an era of increasing demand from consumers, industry and American states — plus, New York City.

Then there’s the task of managing Hydro-Québec’s relationship with the Quebec government’s super-ministry that blends energy and economy files under PIERRE FITZGIBBON. Brochu left weeks after the super ministry was created and after she reeled in the public utility’s 25-year contract with New York state, its largest-ever export deal.

— Empire state of mind: Sabia called the Big Apple’s plan to tap Quebec hydro to keep its lights on a “good idea” when he introduced Premier FRANÇOIS LEGAULT at a Foreign Policy Association of New York talk in 2019.

— A matter of timing: Experience dealing with thousands of engineers at Bell and hordes of technical and financial expertise at Finance Canada will come in handy. Negotiations for new collective agreements are also set to begin in a week for Hydro-Québec’s unionized engineers and researchers.

KARL MOORE, associate professor at McGill University’s Desautels Faculty of Management, called Sabia “one of the most impressive” of the roughly 800 CEOs he’s interviewed in his classroom and on his radio show over the years.

“Huge mind,” Moore told Playbook. “Incredibly good at analytics and getting to the heart of the matter.” The McGill lecturer is a fan, charmed in part by the annual gag Sabia pulls in front of his students to set up his exit.

“You should never be the smartest person in the room,” Moore said of the advice Sabia likes to give the students before immediately heading for the door.

TODAY'S HIGHLIGHTS

— International Trade Minister MARY NG is in Detroit for a two-day APEC summit. Host U.S. Trade Representative KATHERINE TAI is expected to meet with China’s Commerce Minister WANG WENTAO. Ng’s spokesperson SHANTI COSENTINO confirms no Canada-China bilat is in the books at the summit.

2 p.m. The House procedure and House affairs committee meets.

2 p.m. Canada’s Parliamentary Black Caucus will hold a joint media availability with United-States of America’s Legacy Civil Rights Organizations leaders at Howard University in Washington.

2 p.m. Crown-Indigenous Relations Minister MARC MILLER is in Wendake, Quebec with Huron-Wendat Nation Grand Chief RÉMY VINCENT to sign a framework agreement related to Indigenous rights.

12 p.m. (3 p.m. PDT) Immigration Minister SEAN FRASER is in Vancouver with Industry Minister FRANÇOIS-PHILIPPE CHAMPAGNE to make a jobs announcement with Lululemon CEO CALVIN MCDONALD.

10 p.m. (7 PDT) NDP Leader JAGMEET SINGH zooms into the New Westminster–Burnaby NDP nomination meeting from Toronto after starting his day meeting paramedics in Saskatoon.

ALBERTA WATCH

Nick Taylor-Vaisey with

Nick Taylor-Vaisey with former deputy PM Anne McLellan and her crew at POLITICO's Ottawa Playbook Trivia Night in Edmonton. | Nick Taylor-Vaisey

WILD ROSE TRIVIA: PART DEUX — Playbook's second-ever trivia night outside of the nation's capital was dominated by a team captained by a familiar face in Ottawa.

ANNE MCLELLAN's crew outclassed the field of Edmonton insiders on Wednesday night with a score of 23 points out of a possible 30. ANGELS DARE TO TREAD couldn't quite match the 25-point haul of Tuesday's Calgary champions, TEAM PUNDIT, PHD.

But it's not like there's any kind of rivalry between the two cities, right?

Special thanks to Edmonton-Wetaskiwin MP MIKE LAKE and Clean Prosperity western Canada director ADAM SWEET for taking on a round of questions. Props also to team captains JARED WESLEY, KARAMVEER LALH and PAUL TAILLON for bringing their trivia prowess.

— A final shoutout: That goes to Hudsons Canada's Pub on Whyte for hosting the Playbook festivities.

Team Pundit at POLITICO Ottawa's Calgary Trivia Night

For the record: The Calgary champions: Team Pundit, PhD. | Courtesy Duane Bratt

HALLWAY CONVERSATION

Eight members of the Parliamentary Black Caucus are in Washington this week to meet the influential Congressional Black Caucus. The goal, they tell Playbook, is to connect with the historic group and build a bridge between Black communities who share deep ties. They may even work together on disaggregated race-based data sharing initiatives.

Washington reporter JOSEPH GEDEON spoke with caucus chair Sen. ROSEMARY MOODIE and vice chair MP MICHAEL COTEAU about their mission to the States. The conversation has been edited for length and clarity.

Canada’s Parliamentary Caucus is in Washington this week to meet the influential Congressional Black Caucus.

The Parliamentary Black Caucus in Washington this week to meet the influential Congressional Black Caucus. | Courtesy Sen. Rosemary Moodie

What have you learned from the Congressional Black Caucus and what do you think you could take back to Ottawa? 

Coteau: We had the opportunity to meet with chairman Rep. STEVEN HORSFORD (NV-04) and vice chair Rep. YVETTE CLARKE (NY-09) and many other members of the caucus. They’ve been established for several decades, now with a foundation and the learning institute attached. So it's not only the parliamentary pieces we've been very interested in, but also the structure of their organization.

We’re much smaller. We just want to learn how they've been able to build such a powerful organization and, from our side, look for ways to learn and to share things we can contribute to the conversation

Moodie: Adopting this kind of approach and the layered way in which they organize around key issues — emerging issues that the Black communities are facing, like social justice, Black entrepreneurship, things we also are focusing on in Canada.

We deal with it in a somewhat responsive, reactive way; they deal with it in a [practical] way with subcommittee work.

We have learned a little bit how to be engaged in this activity in a much more purposeful way. They meet weekly, they have their luncheons and their exchanges of ideas weekly. We also want to see over time where there are opportunities to partner. We invite them to Canada to be part of all activities and return here if there are interesting opportunities as well.

There must be specific issues you hope to work on.

Coteau: I'm very interested in the institute that the Congressional Black Caucus has put forward and the work they're doing around the changing face of racism in America. The far right continues to change, not only America, but Canada as well. And I think [there should be] better understanding on how we challenge some of the beliefs of people who may hold extreme positions that are aligned with racist views. Sharing notes was very important as we continue to fight against systemic racism, institutionalized racism and anti-Black racism.

I noticed VIOLA DESMOND also made an appearance. How was that received?   

Coteau: MP GREG FERGUS brought some of those $10 bills with him intentionally to share with American counterparts. It gave us a great opportunity to talk about some of the experiences and stories of Black Canadians — VIOLA DESMOND’s story predates ROSA PARKS by several years — and let them know we are making progress in Canada. One of the best examples of that is having that incredible Canadian story captured on a $10 bill. It opened up a conversation about HARRIET TUBMAN being proposed for the $20 note.

Moodie: We've moved ahead in Canada, and we were pleased to be able to showcase it. As they said, ‘we want to take these pictures that we can show our finance people.’ So although it was a light moment, it was a meaningful moment.

MEDIA ROOM

— Here's the AP on the IEA report released over night: Shift to clean energy accelerating, but coal investments too high to meet climate goals.

— Artificial intelligence pioneer YOSHUA BENGIO is calling on the federal government to roll out rules immediately against certain threats, CP’s CHRISTOPHER REYNOLDS reports.

— Top of POLITICO this hour: Botched rollout puts RON DESANTIS on his heels.

— Also from our Washington colleagues: 55 Things You Need to Know About DeSantis.

— Bloomberg’s JACOB LORINC reports: Battery boom sparks revival for Quebec’s formerly failed lithium mine.

JULIAN BRAVE NOISECAT writes in the Walrus: MARY SIMON is leading Indigenous Peoples to new heights It’s an article you can read in Inuktitut.

— “The Trudeau government may feel buoyed by the fact that Johnston failed to find evidence of political malfeasance, but that ought to be little relief for Canadians,” the Hub’s SEAN SPEER writes. “His report reinforces the mounting evidence that Pierre Poilievre’s diagnosis is essentially correct: Canada is broken.”

— From TVO’s STEVE PAIKIN: How a birthday tweet revealed the ugliness of social media.

PLAYBOOKERS


Birthdays: HBD to political cartoonist MICHAEL DE ADDER, Bluesky Strategy’s ALYSON FAIR, Crestview Strategy’s ALEXA SIPEKI, Nova Scotia MLA ZACH CHURCHILL, former Manitoba MLA DOUG MARTINDALE and former MP LYNN MYERS.

HBD + 1 to TOM POTTER of Blackbird Strategies.

Spotted: ALEX MUNTER, confirming his heart and focus is with CHEO. … Ontario Labour Minister MONTE MCNAUGHTON, quoting Ted Lasso on second chances with a +1 from Liberal MP FRANCESCO SORBARA.

NDP MP MATTHEW GREEN meeting Rep. ILHAN OMAR (D-Minn.) in Washington. The pair discussed “far-right extremism, threats to democratic institutions” and cross-border progressive alliances, according to a readout.

Movers and shakers: H+K senior associate BOB DAVIDSON, Canada’s former military representative to NATO, is lobbying for ThyssenKrupp Marine Systems of Germany. The company manufactures submarines and hopes to snare the contract for the navy's next generation of submarines. The company claims to have manufactured 70 percent of active NATIO submarines.

MATTHEW ANTONITTI's recent promotion from executive assistant to principal secretary in PIERRE POILIEVRE's office is officially GEDS official.

PATRICIA FULLER is joining the ranks of senior advisers at StrategyCorp.

Media mentions: CINDY TRAN is leaving CBC Ottawa for the Edmonton Journal.

PROZONE


If you’re a , don’t miss our latest policy newsletter by JOSEPH GEDEON: One surprise after another.

In other Pro headlines:

EPA added existing gas plants to climate rule after White House review.

U.S. pushes for transatlantic trade platform against China.

Microsoft finds Chinese hackers targeting critical systems in U.S., Guam.

Climate and health leaders look to COP28 as big moment for health.

Pfizer's Covid vaccine does not pose a stroke risk, records review finds.

On the Hill


The House will return May 29. The Senate has adjourned until May 30.

Find the latest House committees here

Keep track of Senate committees here

9 a.m. Canadian Parks and Wilderness Society holds a press conference in West Block to release a new report tracking government progress in protecting lands and ocean.

2 p.m. The House procedure and House affairs committee meets to discuss Special Rapporteur David Johnston’s recommendation.

TRIVIA


Wednesday’s answer: STAN WATERS became the first senator to be appointed after a non-binding provincial Senate election.

JOSEPH PLANTA wrote in with the right answer. “I even have a button.”

A Stan Waters campaign button.

A Stan Waters campaign button. | Courtesy Joseph Planta

Props also to CHRISTOPHER LALANDE, JEFF LABONTÉ, MATT CONLEY, JOSHUA ZANIN, NANCI WAUGH. ROBERT MCDOUGALL, GEORGE SCHOENHOFER, GUY SKIPWORTH, BOB GORDON, CHRIS MCCLUSKEY and NANCI WAUGH.

Today’s question: The following question is from DUANE BRATT, who played on the winning team at Calgary’s Ottawa Playbook Trivia Night: 

Who are the only two prime ministers (one current and one future) to compete against each other in the same constituency?

Send your answer to ottawaplaybook@politico.com

Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Playbook can help. Contact Jesse Shapiro to find out how: jshapiro@politico.com

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

 

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