The mother of all paper trails

From: POLITICO Ottawa Playbook - Thursday Oct 26,2023 10:02 am
Presented by the Canadian dairy, poultry and egg sector: A daily look inside Canadian politics and power.
Oct 26, 2023 View in browser
 
Ottawa Playbook

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

Presented by the Canadian dairy, poultry and egg sector


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Thanks for reading Ottawa Playbook. Let's get into it.

In today's edition:

→ We celebrate the ode to transparency embodied by Public Accounts Day.

→ The West Block ceiling is … mechanical?

→ A sanctioned Haitian banker takes the government to court.

DRIVING THE DAY

A sign of the U.S.-based McKinsey & Company management consulting firm in Geneva.

Ottawa spends billions of dollars a year on "professional and special services," a classification that includes accountants, lawyers — and management consultants. | Fabrice Coffrini/AFP via Getty Images


SPREADSHEET DAY — You never know what you'll find in the massive annual accounting exercise known as the Public Accounts of Canada.

Almost every federal dollar spent in the 2022-23 fiscal year is allocated to a line item somewhere in the 1,273-page tome tabled in the House of Commons on Tuesday.

— Nice work if you can get it: Ottawa spends billions of dollars a year on "professional and special services," a classification that includes accountants, lawyers, architects, engineers, scientific analysts, translators, teachers, doctors, nurses and — we saved the punching bags of the outsourcing world for last — management consultants.

Consultants are constantly in the crosshairs of public service unions that would much prefer in-house bureaucrats — aka their members — do the work. Management consultants made a spray of headlines last year, with McKinsey's work coming under the most scrutiny. (Catch up on that conversation in this deep dive from Policy Options' KATHRYN MAY last February.)

Finance Minister CHRYSTIA FREELAND committed in her March budget to slash consulting, professional services and travel by C$7.1 billion over five years.

But that measure only kicked in for 2023-24.

The grand total for the sprawling category in 2022-23 was C$18.5 billion, a substantial jump from 2021-22's tally of C$17.5 billion. Management consultants raked in a combined C$838.2 million, up from C$811.3 million.

We ran the numbers for some of the highest-profile consulting firms in town. Here's the annual professional services haul for each, with management consulting in parentheses:

→ Deloitte: C$210.9 million (C$63 million)

→ PWC: C$82.3 million (C$50.7 million)

→ KPMG: C$35.6 million (C$14.9 million)

→ EY: C$33.6 million (C$9 million)

→ Accenture: C$32.2 million (C$14.1 million)

→ McKinsey: C$19.6 million (C$4 million)

— The cost of an electoral map: The provincial commissions that redrew federal riding boundaries sapped C$9.4 million from the treasury.

— Elsewhere in commissions: The convoy commission spent C$17.5 million. The federal share of a joint inquiry into Nova Scotia's 2020 mass killings added up to C$11.6 million.

— The price of democracy: The Mississauga–Lakeshore byelection that saw victory for Liberal MP CHARLES SOUSA in December 2022 cost C$1.9 million.

A message from the Canadian dairy, poultry and egg sector:

Canada’s innovative system of supply management supports sustainability, enables innovative solutions, promotes Canada’s food sovereignty, and drives economic activity that builds strong communities. Supply management is a testament to the strength and resilience of the Canadian agriculture sector. Stand with Canada’s farmers by supporting Bill C-282, An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management). Click here to learn more.

 
TODAY'S HIGHLIGHTS

— Prime Minister JUSTIN TRUDEAU is in the National Capital Region with "private meetings" on his public itinerary.

— Deputy PM CHRYSTIA FREELAND is in Calgary, and then Toronto, in "private meetings."

9:30 a.m. Green MP MIKE MORRICE holds a press conference on a Parliamentary Budget Officer report on his motion to extend a windfall tax on financial firms to cover the fossil fuel industry.

11 a.m. Speaker GREG FERGUS chairs his first House Board of Internal Economy meeting.

11 a.m. The Commons procedure and House affairs committee hears from former Conservative Leader ERIN O'TOOLE on foreign interference.

6 p.m. Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE attends a fundraiser in Aurora, Ont. Newmarket–Aurora MP LEAH TAYLOR ROY hosts the minister for "cocktails, conversations, and canapés" at Magna Golf Club.

5 p.m. (6 p.m. AT) Tory Leader PIERRE POILIEVRE headlines a rally in Windsor, N.S.

 

A message from the Canadian dairy, poultry and egg sector:

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For your radar

The ceiling of the House of Commons is pictured during the day.

The glass and aluminum roof over the House of Commons features louvers that control how much light enters the space. | Courtesy of the House of Commons

THE BEST DISINFECTANT — Did you know the House of Commons ceiling can be mechanically adjusted to let in more sunlight?

It's true.

The glass and aluminum roof over the West Block features louvers — aka angled slats — that control how much light enters the space. (The heat at roof level is also "captured and recirculated to warm other areas, making the building more energy efficient.")

But if you've only ever sat in the chamber during regular House proceedings, odds are you've never seen the louvers fill the place with natural light. Think of the difference between an open and closed SkyDome in Toronto. Now, imagine if the dome was always closed for Blue Jays games, even on the nicest days.

A shame, no?

Angled slats can move to filter the light that enters through the House of Commons ceiling.

The louvers in the House of Commons ceiling rarely allow unfiltered sunlight to enter. | Courtesy of the House of Commons


— The method to the madness: House administration offered a simple explanation for the duller light. "Typically, the operational preference is to minimize risk to the broadcast conditions by keeping the settings constant." Translation: TV cameras are needy.

"Unfiltered" daylight has only been permitted in the chamber for "specific instances" when the MPs are away and the cameras aren't rolling.

— Added incentive: Need another reason to turn the cameras off in the Commons in a bid to improve decorum? MPs could use a little more Vitamin D.

 

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PAPER TRAIL


STEP RIGHT UP — Upset after being slapped with sanctions by Canada? Get in line.

As the government expands its list of sanctioned individuals and entities, another list is growing in tandem: names in the Federal Court registry challenging their listings.

Haitian banker CARL BRAUN is the latest to file in protest, after he was sanctioned in September alongside businessmen JEAN MARIE VORBE and MARC ANTOINE ACRA.

The Miami Herald describes the three as being “deeply involved in Haiti’s politics” and with “close ties to various presidential administrations,” and calls Braun a “low-key” operator who “shuns the public spotlight.”

— The official line: Global Affairs Canada said in the September sanctions announcement that it has reason to believe the three men were “fuelling the violence and instability in Haiti through corruption and other criminal acts and by enabling the illegal activities of armed gangs that terrorize the population and threaten peace and security in Haiti.”

The sanctions ban Canadians from financial dealings with Braun, the founder of Unibank, Haiti’s largest financial services group. He argues the measure is harming his reputation and business.

— Dribs and drabs: The Canada Gazette dished a little more on GAC's reasoning earlier this month, citing “reasonable grounds to believe” these businessmen “engaged in significant acts of corruption leveraging their influence and resources, including through money laundering, obstructing justice and embezzlement of public funds.”

The Gazette added that reports from the Canadian mission in Haiti, locals and international partners suggest the sanctions have been “effective to date” and have “compelled various stakeholders to engage in political dialogue.”

Braun's court filing rejects the claims against him by GAC, and seeks to reveal the internal documents that the “blanket allegations” are based on.

— Add it to the pile: Since June alone, at least seven filings have challenged recent sanctions, mostly related to Russia’s war against Ukraine.

Moscow-based telecom giant MTS’s legal challenge, filed after Rogers informed the Russian company that it would sever roaming services over the listing, has gone into case management, a form of mediation. Playbook noted last week that former Gazprom numbers guy IGOR SHATALOV recently won his delisting fight — quietly.

MACKLEM ON FISCAL POLICY — The Bank of Canada didn't budge interest rates on Wednesday, but The Logic's KEVIN CARMICHAEL did squeeze a newsy quote out of Governor TIFF MACKLEM at a morning press conference. He asked about the impact of fiscal policy — aka government spending — on inflation.

Carmichael: To what extent is fiscal policy contributing to the stickiness of inflation that you're observing and other things that governments could do to supplement your efforts?

Macklem: "What I would say is that governments are hearing from their constituents. They are thinking more about the impact of inflation, they're thinking more about the impact of higher interest rates. And I think that's a good thing. And in that regard, it would be helpful if governments considered the inflationary impact of their spending decisions when they're making their spending plans. It's gonna be easier to get inflation down if monetary and fiscal policy are rowing in the same direction."

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Supply management provides a dependable supply of high-quality food on our store shelves while fostering innovation, sustainability, and domestic self-sufficiency. An economic powerhouse, it generates over 339,000 jobs, contributes $30.1 billion to Canada’s GDP, and delivers $5.95 billion in tax revenue each year.

This system serves as the foundation for our agricultural success. Stand with Canada’s farmers by supporting Bill C-282, An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management). Click here to learn more.

 
IN MEMORIAM


Sen. IAN SHUGART, a former clerk of the Privy Council and deputy minister atop multiple departments, died Wednesday at 66. The longtime public servant had earned the deep respect of generations of politicians, staffers, journalists and public servants.

A selection of the warm remembrances:

"...a pillar of stability." JUSTIN TRUDEAU

"…a great Canadian public servant." PIERRE POILIEVRE

"...took the time, even in the height of his illness, to exchange ideas with me." BERNADETTE CLEMENT

"...gave his whole adult life to public service." JANE PHILPOTT

"...his discretion was equally appreciated by partisans of all stripes." MARCI SURKES

"...trusted friend." CHRYSTIA FREELAND

"...profound integrity." ERIN O'TOOLE

"...decent and kind." SUSAN DELACOURT

"...thoughtful advice." CATHERINE MCKENNA

"...a man of deep faith." JASON KENNEY

"...subtle and dry wit." MARCO MENDICINO

"...happy to have an off the record coffee with a reporter without worrying what others might think." DAVID LJUNGGREN

MEDIA ROOM


— CP's STEPHANIE TAYLOR reports that Correction Service Canada "intervened" in an effort to prevent PAUL BERNARDO's lawyer from making public statements when the notorious killer's prison transfer made headlines in the spring.

— Finance Minister CHRYSTIA FREELAND is calling a meeting with her provincial and territorial counterparts after Ontario Finance Minister PETER BETHLENFALVY raised the alarm Wednesday over Alberta's potential withdrawal from from the Canada Pension Plan. (The prime minister has said multiple provinces are concerned.)

Over at The Line, KEN BOESSENKOOL floats a theory about PIERRE POILIEVRE's opposition to RBC's proposed takeover of HSBC.

— From Nunatsiaq News: New software hailed as one fix for Nunavut’s ailing foster system

— Tech law expert MICHAEL GEIST sets the record straight,in pod form, on the Online Streaming Act’s rules on podcasting.

PLAYBOOKERS


Birthdays: HBD to EnterpriseHealth consultant KEVIN DEN HEIJER and Crestview VP FRANK PARKER.

Also celebrating: Canadian businessman ANDRÉ DESMARAIS, former mayor and Cabinet minister GLEN MURRAY, former Cabinet minister ROY MACLAREN and former NDP MP CLAUDE GRAVELLE.

Send birthdays to ottawaplaybook@politico.com.

Spotted: A pair of going away parties at D'Arcy McGee's pub. LESLIE CHURCH, outgoing chief of staff to Finance Minister CHRYSTIA FREELAND, was downstairs. DOMINIC CORMIER, former chief of staff to Environment Minister STEVEN GUILBEAULT, was upstairs.

In the rooms: Guilbeault, Treasury Board President ANITA ANAND, Employment Minister RANDY BOISSONNAULT, former budget whisperer TYLER MEREDITH, pollster and pod host DAVID HERLE, PMO chief of staff KATIE TELFORD and deputy chief of staff BRIAN CLOW, and a bevy of staffers.

A Bier Markt reception, capping a Hill lobbying day for the St. Lawrence Economic Development Council. The delegation arrived in Ottawa by bus after a similar lobbying blitz in Quebec City on Tuesday.

Liberal MP HEDY FRY, the lone person wearing a face mask in the government benches during question period.

A scheduled Nov. 3 Conservative fundraiser at the Regina HQ of Brandt Developments, featuring headliner PIERRE POILIEVRE.

Canadian ambo in Washington KIRSTEN HILLMAN, attending a Tuesday evening reception celebrating Washingtonian’s annual Most Powerful Women list. Hillman cracked the "international powers" list.

The deal of the day at GCSurplus: A 2-ton, 21-foot, 6-cylinder, 200-horsepower Zodiac Hurricane rescue boat with a seating capacity of 18. Opening bid: C$1,000. Please note: "not operational, nor seaworthy in its current state."

Movers and shakers: Sussex Strategy's DAN LOVELL posted a Tuesday meeting with PMO senior adviser BEN CHIN on behalf of Berkshire Hathaway Energy Canada, which is looking at developing electric transmission infrastructure in Alberta.

Bluesky's JORDAN PAQUET posted an Oct. 3 meeting on behalf of the Pathways Alliance with Tory MP LAILA GOODRIDGE, whose Fort McMurray–Cold Lake riding lies in the heart of Alberta's oilsands.

— A week after Finance Minister CHRYSTIA FREELAND applauded a British Columbia effort to crack down on rule-breaking short-term rental providers, Earnscliffe's ALICIA ADAMS registered to lobby for Airbnb on the Hill.

This quote from Freeland could've caught the company's attention: "We are looking around and are saying, 'What can we do right away that makes more homes available for Canadians?' And ... short-term rental is one of those spaces."

Media mentions: DANIELE HAMAMDJIAN is joining Global National as a special correspondent.

PROZONE


If you’re a , don’t miss our latest policy newsletter from KYLE DUGGAN: Macklem holds rates but leaves door open to hikes.

In other Pro headlines:

Hill Republicans see continuity from Speaker Johnson on trade, China.

Biden administration delivers U.S. business a digital trade loss.

Defense bill poised to become site of next crypto clash.

Biden warns of response if Iran attacks U.S. troops.

Virginia poised to elect 2020 election denier.

On the Hill

8:15 a.m. The House agriculture committee meets to hear from farm groups on electronic logging device requirements and animal transport.

8:15 a.m. The House heritage committee has “committee business” on its agenda.

9 a.m. The Senate internal economy committee meets for administrative discussions.

9:15 a.m. The Senate energy committee is set for a clause-by-clause meeting on Bill S-234 which deals with disposal of plastic waste.

11 a.m. Speaker GREG FERGUS chairs his first House Board of Internal Economy meeting.

11 a.m. The House committee on the status of women continues its study of human trafficking.

11 a.m. The House fisheries committee meets to quiz Fisheries Minister DIANE LEBOUTHILLIER on her mandate.

11 a.m. The Commons procedure and House affairs committee hears from former Conservative Leader ERIN O'TOOLE on foreign interference.

11 a.m. The House finance committee continues its pre-budget consultations and will hear from the Assembly of First Nations, the Business Council of Canada, Fintechs Canada and others.

11:30 a.m. The Senate social affairs committee hears from witnesses on Bill C-35, An Act respecting early learning and child care in Canada

11:30 a.m. The Senate banking committee hears from economists on the state of banking and the economy a day after the central bank’s rate decision.

11:30 a.m. The House environment committee hears from bureaucrats as it continues its freshwater study.

11:30 a.m. The Senate foreign affairs committee hears from witnesses including Islamic Relief Canada and Canada’s former ambassador to Afghanistan.

11:45 a.m. The Senate legal committee hears from a range of witnesses on Bill S-13.

3:30 p.m. The House industry committee continues its study on Bill C-27 privacy and AI law and will hear from various academic experts, including TERESA SCASSA and MICHAEL GEIST.

3:30 p.m. The Commons veterans affairs committee will hear from veterans as part of its study on the experiences of women veterans.

3:30 p.m. The House national defense committee hears from Parliamentary Budget Officer YVES GIROUX on its costing report: A Force Structure Model of Canada’s Military: Costs and Personnel.

3:30 p.m. The House government operations committee continues its study on the ArriveCAN Application.

3:30 p.m. The House Indigenous and northern affairs committee hears from Métis groups on Bill C-53.

5:30 p.m. The Senate official languages committee hears from Treasury Board President ANITA ANAND and Employment Minister RANDY BOISSONNAULT.

TRIVIA


Wednesday’s answer: Former PM KIM CAMPBELL said: “I could say how many jobs I'd like to create, but, I'm sorry, that's old politics.” The bonus mark: Campbell's Progressive Conservatives lost the 1993 election on Oct. 25, 1993.

Props to HELEN DARB (x2), GEORGE SCHOENHOFER (x2), QASIR DAR (x2), ROBERT MCDOUGALL (x2), GUY SKIPWORTH (x2), SHAUGHN MCARTHUR (x2), ADAM ENKIN, SHEILA GERVAIS (x2), and WALTER ROBINSON (x2).

Added Robinson, in reference to that fateful evening: “A crazy night at the old 275 Slater PCHQ indeed.”

Today’s question: In what month and year did the first sitting in the interim House of Commons chamber occur?

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

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