Quotulatiousness

September 20, 2025

BC Ferries, federal financing and Chinese shipyards

Filed under: Cancon, China, Government — Tags: , , , , , , — Nicholas @ 03:00

As you may have heard, at the same time that Canadian politicians of all parties were thumping the tub about buying Canadian, British Columbia’s provincially owned ferry corporation decided to buy new ships from China … and the federal government not only gave the deal their blessing, they added in a billion dollar underwriting guarantee to boot:

In Ottawa they call it “arm’s-length”. Out in the real world, people call it duck-and-cover. At Meeting No. 6 of the House of Commons transport committee, MPs confronted a simple, damning timeline: Transport Canada’s top non-partisan official was warned six weeks before the public announcement that BC Ferries would award a four-ship contract to a Chinese state-owned yard. Yet the former transport minister, Chrystia Freeland, told Parliament she was “shocked”. Those two facts do not coexist in nature. One is true, or the other is.

There’s an even bigger betrayal hiding in plain sight. In the last election, this Liberal government campaigned on a Canada-first message — jobs here, supply chains here, steel here. And then, when it actually mattered, they watched a billion-dollar ferry order sail to a PRC state yard with no Canadian-content requirement attached to the federal financing. So much for “Canada first”. Turns out it was “Canada … eventually”, after the press release.

Conservatives put the revelation on the record and asked the only question that matters in a democracy: what did the minister know and when did she know it? The documents they cite don’t suggest confusion; they suggest choreography — ministerial staff emailing the Prime Minister’s Office on how to manage the announcement rather than stop the deal that offshored Canadian work to a Chinese state firm.

Follow the money and it gets worse. A federal Crown lender — the Canada Infrastructure Bank — underwrote $1 billion for BC Ferries and attached no Canadian-content requirement to the financing. In plain English: taxpayers took the risk, Beijing got the jobs. The paper trail presented to MPs is smothered in black ink — hundreds of pages of redactions — with one stray breadcrumb: a partially visible BC Hydro analysis suggesting roughly half a billion dollars in B.C. terminal upgrades to make the “green” ferry plan work. You’re not supposed to see that. You almost didn’t.

How did the government side respond? With a jurisdictional shrug. We’re told, over and over, that BC Ferries is a provincial, arm’s-length corporation; the feds didn’t pick the yard, don’t run the procurement, and therefore shouldn’t be blamed. That line is convenient, and in a technical sense it’s tidy. But it wilts under heat. The federal lender is still federal. The money is still public. If “arm’s-length” means “no accountability”, it’s not a governance model — it’s a get-out-of-jail-free card.

The fallback argument is economic fatalism: no Canadian shipyards bid, we’re told; building here would have taken longer and cost “billions” more. Maybe that’s true, maybe it isn’t — but it’s the sort of claim that demands evidence, not condescension. Because the last time Canadians heard this script, the same political class promised that global supply chains were efficient, cheap and safe. Then reality happened. If domestic capacity is too weak to compete, that’s not an argument for outsourcing permanently; it’s an indictment of the people who let that capacity atrophy. And if you swear “Canada first” on the campaign trail, you don’t bankroll “China first” from the Treasury bench.

Dr. Leslyn Lewis on X:

September 16, 2025

A rare thing … Canada’s Parliament in session

Filed under: Cancon, Media, Politics — Tags: , , — Nicholas @ 03:00

On his Substack, Brian Lilley noted on Monday that we’ve had very little chance to see the Canadian Parliament in action so far in 2025:

Parliament returns for the fall sitting today, it’s the first time the House of Commons has met since June 20. What’s remarkable is that in the 257 days that we’ve counted in 2025, the House has only met for 20 of them.

As it stands now, the House has not met in 87 days.

More remarkable, the House didn’t sit between December 17, 2024 and May 2025, all during a time of national crisis. Add to that the fact that between the end of September 2024 and the opening of the new Parliament on May 26, 2025 no government business was conducted due to the green slush fund scandal and the Trudeau government’s refusal to release documents to the House.

To say our democratic institutions haven’t been well served over the last year would be an understatement.

Over the last year, the oversight function of the House of Commons hasn’t been working as it should in our system. We’ve either had inaction by government or for most of this year, government by decree with little to no oversight by the people’s representatives.

Hopefully that changes today with a new sitting.

A change in tone…

One thing we’ve heard lots of chatter about is the need for a new tone, but primarily that’s been aimed at Conservative Leader Pierre Poilievre. Let me point out that Prime Minister Mark Carney is also new to this and we didn’t get the full measure of the man back in the spring.

The relationship between Justin Trudeau and Pierre Poilievre was acrimonious to say the least.

Trudeau towards the end was despised by Canadians and Poilievre couldn’t hit him hard enough in Question Period. Canadians would cheer as Poilievre would use his formidable Parliamentary skills to skewer Trudeau in the House of Commons.

Of course, Trudeau was part of the demise of the relationship and civility in the House as he showed utter contempt for the opposition, for Parliamentary rules and by extension to millions of Canadians.

Well, it’s a new government, a new leader in Carney and so yes, we can expect a new tone coming from both sides. We’ve already seen it from Poilievre in his many media appearances and news conferences over the past several months.

Poilievre has said that he and his party will oppose the government on issues where they disagree, support them on areas where they agree and offer practical solutions to the problems facing the country. That’s exactly what you want from an opposition party, which should in fact operate as a government in waiting.

September 13, 2025

“It was about control before green policy became popular, and it is about control now”

Filed under: Cancon, Environment, Government, Media, Politics — Tags: , , , , , , — Nicholas @ 04:00

In the National Post, Carson Jerema identifies the common thread among all of Prime Minister Mark Carney’s efforts since becoming Liberal party leader:

Then-Governor of the Bank of Canada Mark Carney at the 2012 Annual Meeting of the World Economic Forum in Davos, Switzerland.
WEF photo via Wikimedia Commons.

Prime Minister Mark Carney may not be as obnoxiously progressive as Justin Trudeau, but that doesn’t mean he isn’t stubbornly left wing in his own right, though he has managed to convince many critics otherwise.

Over the past decade, the Liberals were particularly self-righteous over climate policy, so much so that the deviations made by Carney since assuming office have been met with praise — or, on the left, with scorn — that he is somehow pro-business and represents the return of the centre-right Liberals. Some even think he’s a conservative. Others have suggested that Conservative Leader Pierre Poilievre is now entirely redundant.

This narrative is just more proof of how utterly captured the media is in this country by the Liberal party. It is true that Carney gives the appearance that he is abandoning many of the government’s environmental policies. He set the carbon tax rate to zero, paused the EV mandate and, on Thursday, he refused to endorse his government’s own carbon-emissions targets.

None of this, however, should be taken as evidence that Carney represents some sort of rightward or pro-business shift in the Liberal party. He is not proposing to let markets determine what infrastructure projects get built. Nor is he proposing to minimize regulations to attract investment.

Instead, Carney wants to command the economy by himself, laying bare the reality that what attracts left-wing politicians to climate policy is not saving the planet from carbon, but using environmental objectives to manage the economy. It was about control before green policy became popular, and it is about control now. For Carney specifically, before he entered politics, “decarbonizing” markets was quite remunerative in his various banking roles.

Noticeably absent from the five infrastructure projects that the prime minister said on Thursday would be fast-tracked under the Major Projects Office was an oil and gas pipeline. Also noticeable was the fact that all five of the projects had already been approved, but the government tried to pass them off as something new anyway.

Even if the projects had been all brand new, the lack of a pipeline would still be of no surprise, as what private investor would be willing to back a pipeline when the Liberals’ Impact Assessment Act, tanker ban and emissions cap all exist to conspire against energy projects of any kind?

One thing that became incredibly obvious early in Justin Trudeau’s premiership was that the prime minister — and his ministers in general — really did seem to believe that talking about doing something was as effective in solving problems as actually doing the thing. Many had hoped that Mark Carney would be different … but as Dan Knight points out, he may actually be worse:

From there, [Poilievre] broadened the attack. He spoke of an entire generation priced out of homeownership, of immigration growing “three times faster than housing and jobs”, of crime rising, and of what he called “the worst economy in the G7”. And then he turned squarely on Carney: “Mr. Carney is actually more irresponsible than even Justin Trudeau was“, citing an 8% increase in government spending, 37% more for consultants, and 62 billion dollars in lost investment — the largest outflow in Canadian history, according to the National Bank.

The message was simple: Liberals talk, Conservatives build. Poilievre painted Carney as a man of speeches and promises, not results. “The mistake the media is making is they’re judging him by his words rather than his deeds“, he said.

It was an opening statement designed less to introduce policy — those details came later — and more to frame the battle. For Poilievre, Carney isn’t just Trudeau’s replacement. He’s Trudeau’s sequel, and in some ways worse.

[…]

Pierre Poilievre didn’t hold back when asked about Mark Carney’s record. His words: “Mr. Carney is actually more irresponsible than even Justin Trudeau was“. That’s not a throwaway line, he backed it with numbers.

According to Poilievre, Carney inherited what he called a “morbidly obese government” from Trudeau and made it worse: 8% bigger overall, 37% more for consultants, and 6% more bureaucracy. He says Carney’s deficit is set to be even larger than Trudeau’s.

Then the jobs number: 86,000 more unemployed people under Carney than under Trudeau. That, Poilievre argued, is the real measure, not the polished speeches Carney gives. His line: “The mistake the media is making is they’re judging him by his words rather than his deeds“.

August 30, 2025

Canada’s economy is going the wrong way

Filed under: Cancon, Economics, Government, Media, Politics, USA — Tags: , , , — Nicholas @ 03:00

The latest figures show the US economy growing by 3.3% while Canada’s shrank by 1.6% in the same period. It’s bad news for Canadians, except those like Prime Minister Mark Carney who have the bulk of their investments in the United States (91% for Carney, according to various sources). On X, Dan Knight explains what is happening:

Canada’s economy just shrank. That’s the headline. In the second quarter of 2025, real GDP fell 0.4%. On a per-person basis, it was the same. Canadians are poorer than they were three months ago. That’s not speculation. That’s Statistics Canada’s official number.

So, here’s what happened. The government and its media allies spent the spring bragging that the Canadian economy “grew” in the first quarter of 2025. Real GDP was up half a percent. Sounds good, right? But if you read the fine print, if you look at the numbers it wasn’t real growth at all. It was panic.

Exporters rushed to push product into the United States before tariffs came down. Automakers. Machinery producers. Parts suppliers. They all jammed as much across the border as they could, knowing the window was closing. That sugar high showed up in the Q1 GDP number. It made the economy look like it was humming along.

Then the tariffs hit. And in the second quarter, the bottom fell out. Exports collapsed down 7.5% overall. Passenger cars and light trucks? Down nearly 25%. Machinery and equipment? Down 18.5%. Travel services? Down 11%. The result: GDP fell 0.4%. On a per-capita basis, it was exactly the same. Canadians are literally poorer than they were three months ago.

This is the story you’re not hearing: Q1 wasn’t proof of a healthy economy. It was proof of a desperate one. Businesses scrambling to get ahead of trade barriers, because they knew Ottawa wasn’t going to stop them. Q1 was fake growth, and Q2 was the crash.

Meanwhile, households are spending more, saving less, and wages are barely moving up just 0.2%, the slowest since 2016 outside of COVID. Corporate profits are falling. Government revenues are down since the carbon tax was lifted. And Ottawa’s answer? Spend more. Borrow more. Pretend it’s all fine.

So the question is simple: if this is what “growth” looks like under Mark Carney’s Liberal government front-loaded exports, collapsing investment, rising debt what does the next quarter look like?

On her Substack, Melissa Lantsman says that the economic situation in Canada is discouraging investors from putting money into Canadian companies:

You don’t need to be a foreign investor to see that putting your money into Canada is not a winning move.

Recently, Statistics Canada reported “strong foreign divestment in Canadian shares” across many sectors, including energy, mining, and manufacturing. At the same time, Canadian buyers also moved their money stateside, purchasing $13.4 billion of foreign securities in just one month.

If this were a small, short-term blip, it would be easy to dismiss it as market noise or an aberration. But that’s not the case: Statistics Canada found four consecutive months of net divestment from the Canadian economy, adding up to $62 billion in lost capital.

And that’s not to mention that every year since 2015 has seen more Canadian investment going abroad than foreign investment coming here. For those keeping track, this is the fastest rate of divestment in Canada since the Great Recession.

What does this all mean?

From an investor’s point of view, there’s no sugar-coating it. Canada is, simply put, an unattractive place to invest hard-earned cash. People making financial decisions for the future don’t have confidence in the Canadian economy to make them money.

From a government’s point of view, it should mean alarm bells ringing left, right, and centre. Lower investment in Canada translates into lower productivity, fewer employment opportunities, less government revenue, and a weaker Canadian dollar, leaving us all worse off.

But why is this happening in the first place?

According to the C.D. Howe Institute, the culprits are familiar: high taxes, regulatory barriers, policy uncertainty, and anti-growth mindsets that penalize success and demonize the private sector.

Anyone who has been paying attention for the last ten years knows that’s exactly what’s been happening. Nothing says “Welcome to Canada” to investors quite like a hike in the capital gains tax at the last minute, chaos at the CRA, multi-year project approval processes, and the highest deficits on record.

And anyone serious about fixing the problem would do the exact opposite of what the last government did. But when your new government is the same as the old one, it’s hard to believe Canadians will get the bold economic transformation this country desperately needs.

August 28, 2025

No surprise at all – Liberals completely overshoot temporary foreign worker targets

Filed under: Business, Cancon, Government — Tags: , — Nicholas @ 03:00

In the National Post, Tristin Hopper confirms that the Mark Carney government, having promised to cap temporary foreign worker visas at 82,000 for the year, have already brought in over 100,000 TFWs in the first six months:

Despite promises from the Liberal government that they would be curbing the sky-high immigration rates of the Trudeau era, new data from Immigration, Refugees and Citizenship Canada shows that Canada is already on track to exceed its 2025 targets.

In the first seven months of 2025, Canada accepted 246,300 new permanent residents, according to data released last week by IRCC.

If this level of intake keeps up for the rest of the year, Canada is on track to bring in approximately 422,000 new permanent residents by year’s end.

[…]

And the missed targets are even more stark when it comes to categories of temporary migrants.

For the entirety of 2025, Canada was only supposed to approve 82,000 entries under the Temporary Foreign Worker Program.

Nevertheless, Government of Canada data shows that 105,195 Temporary Foreign Worker permits were awarded in just the first six months of 2025.

Temporary migration has been disproportionately responsible for the record-breaking population growth witnessed in Canada over the last four years. Since 2021, Canada’s population has grown from 38 million to 41.7 million. This represents an average annual increase of 900,000, which puts Canada well beyond the population growth rates of any other G7 country.

In late 2024, Statistics Canada estimated that the country was home to an unprecedented three million “non-permanent residents,” be they international students or temporary foreign workers.

Temporary migration is also the category on which Ottawa has promised to crack down hardest. Late in 2024, when then prime minister Justin Trudeau announced plans to “turn off the taps” on immigration, temporary migrants represented seven per cent of the overall Canadian population.

August 9, 2025

Carney hints at backing away from Trudeau’s digital policy catastrophes

Filed under: Cancon, Government, Media, Technology, USA — Tags: , , , , , , , — Nicholas @ 04:00

Michael Geist on the possibility that Prime Minister Mark Carney is starting to recognize just how damaging to Canadian interests the previous government’s various online bills have been:

Digital policies did not play a prominent role in the last election given the intense focus on the Canada-U.S. relationship. Prime Minister Mark Carney started as a bit of a blank slate on the issue, but over the past few months a trend has emerged as he distances himself from the Justin Trudeau approach with important shifts on telecom, taxation, and the regulation of artificial intelligence. Further, recent hints of an openness to re-considering the Online News Act and heightened pressure from the U.S. on the Online Streaming Act suggests that a full overhaul may be a possibility.

This week’s decision to let the CRTC’s decision on wholesale access to fibre broadband networks stand is a case in point. Last November, the Justin Trudeau-led government sent the CRTC’s initial ruling back to the Commission for reconsideration, noting that it “has concerns about future and ongoing investments in broadband infrastructure and services in Ontario and Quebec, including in rural, remote and Indigenous communities, and concerns that those investments could, if they are unprofitable, lead to a decline in quality and consumer choice in the retail Internet services market”. Nine months later, the CRTC came back with the roughly same ruling. That led to yet another request for a cabinet review but this time the government stood by the CRTC despite significant industry opposition. New leader, dramatically new approach.

The CRTC is example was preceded by the decision to eliminate the digital services tax. While the strategic approach seemed misguided – dropping the DST should have garnered more than just an agreement from the U.S. to return to the bargaining table – some noted at the time that perhaps Carney wasn’t a supporter of the DST and had few qualms with rescinding it. The tax had been a foundational part of the government’s campaign to “make web giants pay” but in a matter of 72 hours in late June it was gone.

The government has also shifted its approach on AI regulation. After months of supporting Bill C-27 and the EU-style AI regulatory approach, a new government brought a new minister and a new approach. Evan Solomon, the newly installed AI and Digital Innovation Minister, used his first public speech as minister to pledge that Canada would move away from “over-indexing on warnings and regulation” on AI. That too represents a significant shift in approach, particularly since Trudeau had embraced the EU style regulatory model.

Then there is the Online News Act and Online Streaming Act. When asked about the Online News Act this week, Carney seemed to suggest he was open to change, stating “this government is a big believer in the value of … local news and the importance of ensuring that that is disseminated as widely and as quickly as possible. So, we will look for all avenues to do that.” While that isn’t a clear commitment to change, it is far from an ironclad commitment to legislation is viewed by many to have done more harm than good. Further, reports indicate that the U.S. Congress is escalating pressure to rescind the Online Streaming Act, which may put that law on the chopping block, particularly if a court appeal strikes down elements of the bill or the CRTC’s implementation of the law puts the bill on the Trump radar screen.

August 2, 2025

Canada’s PM “… has a job which, like that of most politicians, requires low intelligence and moral vacuousness”

Filed under: Cancon, Government, Media, Middle East, Politics — Tags: , , , , , , , , — Nicholas @ 03:00

At Essays in Idleness, David Warren explains why Canadian political leadership is so desperately uninspiring … except to our enemies and ill-wishers:

The Canadian prime minister — currently Mr Mark Carney — has a job which, like that of most politicians, requires low intelligence and moral vacuousness. At his cleverest he may exhibit a species of rat cunning. His views on Israel and the Middle East are quite uninteresting, for no rat cunning is required. He simply observes that an anti-Semitic policy is necessary, now that Muslim immigration exceeds the Jewish vote.

Not one good thing has come out of the Liberal Party since Louis St-Laurent was defeated in 1957. He, at least, achieved mediocrity. But what can we do? Canada’s population is one with the Liberals.

What happened on October 7th, 2023 — the slaughter of huge numbers of mostly unarmed Jews when Palestinians got outside the Gaza perimeter — can happen again and again. It will happen as long as Palestinians are, from childhood, taught or brainwashed to kill Jews throughout their education and social systems. I also protest against the disproportionate Israeli response. I think the Israelis have been much too restrained.

My model for “Palestine” would be Germany, or Japan. These formerly vicious nations became harmlessly bourgeois after they unconditionally surrendered to the United States and allies. It is ludicrous to think we should have offered them a peace deal, instead.

Damian Penny points out the sad truth that we get more obstinate even in support of a terrible idea when someone tries to bully us out of it:

… I find myself torn between being frustrated with my own government and simultaneously outraged by another government trying to bully us out of a policy decision with which I disagree.

I don’t expect most other Canadians to feel so conflicted, however. Trump may not realize it (nor care one bit even if he does understand it) but he just made it more likely that Canadian voters will rally around the flag.

This flag, specifically.

Nothing, and I mean nothing, has the motivational power of your opponent pushing back against you. That social media has given us a new and effective way to yell at and insult each other across partisan lines is part of the reason partisanship has become so much more entrenched in recent years.

And that includes me. During the last election campaign it was when I argued with Liberals on Facebook that I found myself feeling less like a Conservative voter and more like a Conservative militant, and my sparring partners likely felt the same way, only in the opposite direction.

Now, replace political partisanship with nationalism, and the effect becomes that much stronger.

Of course, hardcore supporters of either side won’t be moved. (That Carney is placing any conditions at all on Palestinian statehood, and saying a two-state solution remains the ultimate goal, makes him a filthy Zionist genocidaire as far as that crowd is concerned.) But sometimes it’s easy to forget that most people simply don’t pay as much attention to, and aren’t nearly as emotionally invested in, this conflict as much as we very online types are.

July 7, 2025

The federal government’s EV mandate cannot stand

Filed under: Cancon, Economics, Government, Technology — Tags: , , , , , — Nicholas @ 03:00

Following its established pattern, the Canadian government will seek any possible path other than economic reality, especially when it comes to things like mandating that all vehicles sold in Canada must be EVs by 2035:

Nissan Leaf electric vehicle charging.
Photo by Nissan UK

It’s not always the unexpected that gets governments in trouble — often enough it’s their own bad judgement, poor timing or general clumsiness that gets in the way. But the unanticipated does happen a lot.

Parties and politicians put time and effort into concocting a set of policies aimed at winning votes by proposing remedies to problems identified as occupying top rungs of current voter concern. If they’re lucky they get elected, presumably intending to put those policies into effect at the earliest opportunity. Then the world shifts and pulls the rug from under them.

Former prime minister Justin Trudeau was a big fan of the attention-getting promise. Especially if it was a pledge timed well into the future when he was unlikely to still be around to be held responsible. Carbon reductions too ambitious to be realistic. Budget targets too unlikely to be believed. Statist planning projects that tended increasingly to the surreal.

Mark Carney is left with the detritus and the problem of what to do about it. As prime minister he’s already acted on a few of the problematic leftovers, ditching the carbon tax even though he’d previously supported it as a good idea; scrapping an increased tax on capital gains although the Treasury could certainly use the money; “caving,” as the Trump administration so tastefully put it, on a digital services tax that was a bad idea to begin with but pushed through by the Trudeau government anyway.

There’s an argument to be made, and not a bad one, that each retreat was the right move for the moment. And if there are mistakes that need abandoning, the early days of a new government is proverbially the best time to do it.

But righting wrongs has confronted Carney with a new predicament, in that there are so many Trudeau-era wrongs that need righting. Washington was still in the midst of its victory dance over its digital tax triumph when Canada’s auto industry came along to plead for similar treatment from Ottawa, insisting automakers couldn’t possibly meet previously-set electric vehicle targets and urging the new Liberal government to backtrack post haste.

Carney hosted the session with Canada’s chief executives for Ford, Stellantis and General Motors. Brian Kingston, chief executive of the Canadian Vehicle Manufacturers Association, was blunt in identifying the targets set for electric vehicle (EV) production as the main topic.

“The EV mandate itself is not sustainable. The targets that have been established cannot be met,” he said on arriving for the meeting. Afterwards he told Politico‘s online news site, “At a time when the industry is under immense pressure, the damaging and redundant ZEV mandate must be urgently removed”.

July 1, 2025

Like a cheap suit, Canada folds under Trumpian pressure on the Digital Services Tax grab

Filed under: Cancon, Government, Media, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

A couple of days back, I characterized Prime Minister Mark Carney’s determination to push ahead with the Digital Services Tax “insane”, as it was overwhelmingly likely to trigger a strong reaction from the Trump administration. As it did. So, finally recognizing they were in a no-win situation, the federal government announced at the last minute that they wouldn’t be demanding the literally billions of dollars from the US “tech giants” after all. Michael Geist can legitimately say “I told you so” on this issue:

President Trump Attends G7 Summit in Canada by White House https://www.whitehouse.gov/gallery/president-trump-attends-g7-summit-in-canada/ CC BY 3.0 US

After years of dismissing the warnings of likely retaliation, the Canadian government caved last night on the digital services tax. Faced with the prospect of the U.S. suspending trade negotiations, Finance Minister François-Philippe Champagne announced that the government would drop the DST altogether, payments scheduled for Monday would be cancelled, and legislation will be forthcoming to rescind the legislation that created it in the first place. Over the weekend, I wrote about the repeated warnings that the DST was a serious trade irritant with the U.S. that cut across party and presidential lines. While ignoring the risks was bad enough, I argued that Canada played its DST card too early. Rather than delaying implementation in the hopes of incorporating it into a broader trade deal with U.S., it marched ahead, leading to an entirely predictable response from U.S. President Donald Trump. That left Canada in a no-win situation: stick with the DST but face the prospect of higher tariffs or embarrassingly drop the DST (and $7.2 billion in revenue over five years) with only restarting negotiations that were on until government overplayed its hand to show for it.

It is hard to overstate how badly the government managed the DST issue over the past five years. It alienated allies by pushing ahead with the DST despite efforts at an international deal at the OECD, stood alone in rejecting an extension of a moratorium on new DSTs, made the DST retroactive which solidified opposition, and continually downplayed the concerns of successive U.S. Presidents and Members of Congress from both sides of the aisle. Meanwhile, when companies began passing along the costs of the DST to Canadian businesses, it did nothing. And when they urged the government to delay implementation to at least allow for the issue to be incorporated into a broader trade pact, it ignored the advice.

At every step, there were better options. This year, the likelihood that the DST would come to a boil was obvious to anyone who was paying attention. But rather than following the UK strategy, which managed to salvage a smaller DST (2% rather than 3%) as part of a bigger agreement that includes a commitment to support UK digital access to the U.S. market and to negotiate a larger digital trade deal, Canadian officials seemingly assumed that the U.S. was bluffing and would not retaliate.

If this sounds familiar, it is because the Canadian government misreading the tech sector has become a hallmark of its policy. Talk tough, practically dare companies and foreign governments to respond, and then frantically seek an exit strategy when they do. This was the case with the Online News Act and Meta’s blocking of news links, with the government’s AI regulation which new Minister of AI Evan Solomon says will not be re-introduced, with the Online Harms bill, and now with the DST.

The Food Professor explains what Trump got right in his Trade War

Filed under: Cancon, Economics, Government, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, Dr. Sylvain Charlebois, aka @FoodProfessor explains how Trump’s Trade War strategy is working out for US interests, in contrast to the Trudeau/Carney governments’ approach:

The Globalism Hangover: What Trump’s Trade War Got Right

“Trump’s bombastic style aside, his nationalist approach to trade and food policy is forcing global institutions to justify their existence — and that’s a conversation Canada can no longer afford to ignore.”

For the past six months, President Donald Trump’s trade policies have been widely mocked, criticized, and condemned. Some of it is certainly warranted. The Wall Street Journal, for instance, recently likened his tariff-heavy approach to global trade as a direct path toward another Great Depression. But data out of the United States tells a more nuanced story — one that challenges conventional wisdom.

Despite persistent headwinds, the U.S. economy continues to outperform expectations. The Federal Reserve Bank of Atlanta projects second-quarter GDP growth at 3.8%. In May, the U.S. economy added 139,000 jobs, outpacing forecasts, while inflation remained subdued at 0.1% month-over-month and 2.4% annually. The U.S. trade deficit has been cut nearly in half, pointing to stronger export performance and a rebalancing of trade relationships.

Canada, by contrast, is showing signs of economic strain. The national economy is shrinking, manufacturing is struggling under U.S. trade pressure, and food inflation is outpacing general inflation. In short, our economy is not keeping pace—despite our public criticism of the Trump administration.

To make matters worse, the Trump administration has now halted all trade negotiations with Canada, signaling that our bilateral economic relationship holds little strategic value for Washington. For the U.S., Canada is no longer a priority — especially under a Carney-led government that has visibly pivoted toward Europe, a market still heavily invested in maintaining close ties with the United States. From an agri-food standpoint, this shift is consequential: access to our largest trading partner is narrowing, while Ottawa appears more focused on diplomatic optics than on securing stable, competitive trade channels for the Canadian agrifood economy.

This is the one thing the ‘Elbows Up’ crowd never understood — and still doesn’t. We’re not in a trade war with the U.S. There’s no war to be won. For Trump, this is about a realignment of the global order, plain and simple — one centered entirely on American supremacy.

Love him or loathe him, Trump is not destroying the U.S. economy — not yet, anyway. His unapologetically nationalist agenda extends far beyond tariffs. He has withdrawn U.S. support from key global institutions such as the WHO and is threatening to sever ties with others, including NATO and several UN-affiliated agencies. Among them is the Food and Agriculture Organization (FAO), the UN’s most authoritative body on food security.

At a recent event in Brazil, a senior FAO official acknowledged that fundraising dynamics have shifted. In the Trump era, governments are asking harder questions: Why should we fund the FAO? What domestic benefit does it provide? What used to be assumed support is now conditional — and arguably, more accountable.

This shift isn’t unique to Washington. Many countries are quietly aligning with the U.S. position, scrutinizing globalist institutions with renewed skepticism. Transparency and accountability are byproducts of this anti-globalist sentiment — something not inherently negative.

For decades, globalism pushed the world to believe that trade liberalization was the only viable path to growth and prosperity. It became conventional wisdom. But globalism has made some nations — and some people — richer, while leaving others behind. In the process, domestic sectors, including agriculture, were often sidelined or sacrificed in the name of global efficiency.

The problem with globalism, particularly in agri-food policy, is its tendency to pursue uniformity over relevance. Canada, for example, adopted the carbon tax under a globalist climate agenda that often overlooks the vital role food producers play in feeding people. Instead of being supported, the sector is too often vilified as a problem. But agriculture is not a liability — it is a necessity.

Trump’s message — wrapped, of course, in provocative and often abrasive language — is that one-size-fits-all global policies rarely work. Nations have different socio-economic realities, and those should come first. While cooperation is essential, so is recognizing local and regional priorities. In this sense, his “America First” approach is not without logic — especially when it seems to be yielding short-term economic gains.

For Canada’s agri-food sector, the lesson is clear: striking a better balance between global commitments and national imperatives is overdue. We should not abandon multilateral cooperation, but we must stop anchoring policy to global agendas we have little influence over. Instead, let’s define what works for Canadians — what supports our farmers, protects our food security, and reflects our unique landscape — while keeping the broader global context in view.

We are not there yet. But if this moment of disruption sparks a more realistic and regionally attuned approach to food policy, we’ll be better for it.

June 29, 2025

Carney’s insane determination to keep the Digital Services Tax

Filed under: Cancon, Government, Media, Politics, Technology, USA — Tags: , , , , , , , , — Nicholas @ 05:00

One of the most noted features of Prime Minister Mark Carney’s attitude toward, well, everything is his unwillingness to take the concerns of his opponents into account. He seems to feel that he always knows best and therefore any opposition is therefore, by his definition, wrong. The government had been warned by pretty much every observer that the attempt to impose a protectionist digital service levy had incredibly high chances of triggering blowback … and it has:

Mark Carney’s thought process when he encounters dissent, probably

In other words, you can have many reactions to the current DST battle, but surprise should not be one of them. Canada pushed ahead despite efforts at an international agreement on the issue and later dismissed the increasing friction over the issue with the U.S., which has been signalling its opposition to the DST for many years. Donald Trump has taken action, but his views are not dissimilar from Joe Biden’s on the issue nor Members of Congress from both parties. Further, the companies directly affected by the rules have been similarly responsive. For example, Google began levying a 2.5% DST fee on Canadian advertisers last year in anticipation of the DST taking effect in 2025, thereby passing along much of the DST cost to Canadian businesses and consumers.

To be clear, Canada is free to adopt whatever tax policies it wants and tech companies should pay their fair share of taxes. Ensuring tech companies collect and remit sales taxes on digital sales and services is now well established in Canada. But the government’s policy of “making web giants pay” by going above taxes all companies pay with a percentage of revenues to support Canadian film and television, millions for the news sector, and now the DST was always going to spark a reaction.

Further, the Canadian DST is exceptionally complex, covering a wide range of digital revenues that occur in Canada. The baseline applicability is for companies that generate 750 million euros (about C$1.1 billion) in global revenue of which at least $20 million is digital services revenue in Canada. Digital services revenue can arise from (1) online marketplace services revenue (which would cover an Ebay, Airbnb or Uber), (2) online advertising services revenue (Google or Microsoft), (3) social media services revenue (Facebook or TikTok), and (4) user data revenue (any company that collects and sells user data). Targeting these services means there is a lot stake, estimated by the Parliamentary Budget Officer at $7.2 billion over five years.

Other countries have DSTs, but Canada was the only one to introduce one despite an agreement to institute a moratorium on new DSTs years ago at the OECD. And then it was one of the only countries to reject an extension of that moratorium. The government insisted it would move ahead without delays and indicated it was confident it could avoid retaliation.

Given the trade tensions with the U.S. since the election of Donald Trump, unilaterally dropping the DST in the midst of a trade battle did not make much sense as we needed policy certainty under a broader deal. In other words, the DST was a card we had to play as part of a negotiation. But once we played that card by announcing the tax would take effect next week, it virtually guaranteed the U.S. would respond as it did. The priority should have been a broader deal. The government could have adopted a Trump-style delay for a month to give more time for negotiations. It could have have followed the UK model of weaving it into a broader agreement and committing to a larger digital trade deal. Instead, the government continued years of dismissing the trade risks associated with the DST, potentially creating bigger economic problems in the process.

Dan Knight on how Ottawa deliberately baited Trump, despite all the warnings that this was an incredibly stupid idea:

Donald Trump has officially walked away from the negotiating table. The trigger? Canada’s ill-conceived Digital Services Tax (DST) — a reckless, retroactive grab for revenue targeting U.S. tech firms. Trump isn’t mincing words: he’s calling it a “blatant, discriminatory attack” on American innovation, and now he’s moving to punish Canada economically for it.

So what exactly is this tax?

The Digital Services Tax, passed by the Liberal government and implemented under Mark Carney’s leadership, applies a 3% levy on revenue — not profits — earned by large digital firms operating in Canada. And it’s retroactive. That means it’s being applied to earnings from as far back as January 1, 2022, with companies forced to make lump-sum payments by June 30, 2025.

This tax specifically targets companies with global revenue of at least 750 million and Canadian digital revenue of at least CAD 20 million. Translation: It’s a direct hit on American giants like Google, Amazon, Meta, Airbnb, and Uber, and it spares Canadian firms and EU-based entities from equivalent exposure. It’s not tax fairness — it’s protectionism with a smiley-face sticker.

Trump has responded in kind. As of June 27, all trade negotiations with Canada are suspended. Retaliatory tariffs — already mounting since February — are set to escalate. Trump is drawing a red line, and he’s daring Canada to cross it.

What’s at stake?

Everything. Canada sends over 75% of its exports to the United States. We’re talking about nearly a trillion dollars in annual trade. With Trump now actively leveraging tariffs and ending negotiations, entire sectors — from automotive to agriculture, energy to manufacturing — are in the crosshairs.

Already this year, Trump has slapped 25% tariffs on Canadian imports, with specific hits to steel, aluminum, vehicles, and auto parts, and 10% tariffs on Canadian oil, gas, and potash. These moves have already disrupted markets. Ending trade negotiations is a body blow to an already wobbly Canadian economy — still reeling from Trudeau-era mismanagement and Carney’s corporate globalist agenda.

So who could have seen this coming?

Almost everyone.

June 22, 2025

Delaying Mark Carney’s next book

Filed under: Books, Business, Cancon, Politics, USA — Tags: , , , — Nicholas @ 03:00

In the latest SHuSH newsletter, Ken Whyte outlines the various oddities of Mark Carney’s next book to market:

Three years ago, long before he declared himself a politician, Mark Carney published Value(s), his attempt at solving some of the world’s biggest problems: income inequality, climate change, systemic racism, etc. The book was reasonably well received. It sold well. A sequel was in order.

Announced last year, The Hinge: Time to Build an Even Better Canada was ostensibly Carney’s attempt to address Canada’s biggest issues, and perhaps to position himself as our future leader. The book was set for release in May 2025. Events interceded and Carney was elected prime minister on a far tighter timeline than anyone, including his publisher, could have imagined. Publication of The Hinge was delayed. An anonymous source told the Toronto Star Carney was too busy politicking to finish the final edits on the book. I heard the delay had more to do with campaign finance rules that would consider a book publicized or released in election season as political advertising. Anyway, a new release date was set for July 1. Amazon now has The Hinge coming next January.

Carney’s political opponents have been enjoying the delay. Critics both left and right have attributed it to the difficulty of squaring positions taken by Carney a year or two ago with positions he espoused during the campaign and, more recently, as prime minister.

I don’t doubt that Carney’s politics have moved over the last six months. And I wouldn’t be surprised if his second book is being rewritten in whole or in part. I don’t have a problem with that. Much has happened, both in Canada and south of the border. We’ve all been reconsidering our positions.

My problem with Carney’s conduct is not that he’s revising his manuscript, if he is, but that he’s not revising his publishing contract.

The Hinge is set to be published by Signal. Signal is a division of McClelland & Stewart. M&S is a division of Penguin Random House Canada. PRHC is a division of Penguin Random House LLC, corporate headquarters at 1745 Broadway, 3rd Floor, New York, New York, 10019.

Penguin Random House LLC is owned by Bertelsmann, a media conglomerate in Gütersloh, Germany, but legally and operationally, it is a US company. Its executive leadership, including CEO Nihar Malaviya, works out of the above address. Strategy and publishing priorities are set in New York, and profits in PRH’s many far-flung international divisions flow to New York. So the prime minister of Canada is publishing his book with the Canadian branch plant of a US company.

Other recent prime ministers have done the same. Justin Trudeau published Common Ground with HarperCollins. Steven Harper published Right Here, Right Now with Signal, and his forthcoming memoir sits there, too. Jean Chretien released My Stories, My Time with Random House Canada. Most of our politicians have published with branch plants of American firms.

I should add that many of our best writers publish at these same branch plants, if not directly with US publishers. (Even middling scribblers like me have published directly in the US.)

But, again, the world has changed. To quote no less an authority than Mark Carney, Canada’s old relationship with the US, “based on deepening integration of our economies and tight security and military cooperation, is over”. We need to “fundamentally reimagine our economy”, “retool” our industry, and enhance our self-sufficiency.

He sees our cultural relationship with the US as part of this project. From the Liberal platform: “In this time of crisis, protecting Canada means protecting our culture, our journalism, our perspectives. The Americans have threatened our sovereignty and issued inflammatory statements about our economy; we need to be able to tell a story that fights back.”

Right under the cultural section of the platform was a “Buy Canadian” plank. “At a time when our economy is under threat, consumers want to do their part as patriotic Canadians, buying things that are truly made here.” Team Carney promised to make it easier to determine what is and isn’t a Canadian product and prioritize made-in-Canada suppliers in every sector of the economy, limiting bidders from foreign suppliers, and so on.

So it’s “eLbOwS uP!” for the voters, but carry on publishing your next book through a US-owned subsidiary, eh? You have to admit they wear their hypocrisy proudly.

June 18, 2025

Fixing the CAF will require a lot more than just money

Filed under: Cancon, Government, Military, Weapons — Tags: , , , , — Nicholas @ 03:00

The Canadian Armed Forces are in a dire state. I could literally have written that in any year since I started blogging in 2004 … with brief, unsustained funding boosts for unplanned military commitments here and there that actually made the overall situation worse rather than better. Canada’s military procurement system seems incapable of doing anything quickly … or inexpensively, so pouring billions more into a broken process won’t work out well. There used to be a meme about being able to get whatever you wanted — “good, fast, cheap … pick two”. The CAF can’t even get one of those options.

We’ve had surprising numbers of media folks paying attention to the crippling recruiting crisis, as even on current funding, the CAF is short thousand and thousands of soldiers, sailors, and aircrew. Sadly, but predictably, most of that media attention looks at the shortfall of new recruits being trained for those jobs, which is true but incomplete. The biggest problem on the intake side of the CAF is the bureaucratic inability to bring in new recruits in anything remotely like a timely fashion. The last time I saw annual numbers, the CAF had huge numbers of volunteers coming in the door at recruiting centres, but getting the paperwork done and getting those volunteers into uniform and on to job training was an ongoing disaster area. More than seventy thousand would-be recruits applied to join the CAF and the system managed to process less than five thousand of those applicants and get them started on their military careers.

At a time that we’re losing highly trained technicians in all branches to overwork, underpay, and vocational burn-out, we somehow lack the competence to take in more than one in twenty applicants? That is insane.

In the National Post, Michel Maisonneuve says much the same as I just did, but rather more coherently:

I’m told the Treasury Board has already approved the new funds, making this more than just political spin. Much of the money appears to be going where it’s most needed. Pay and benefit increases for serving members should help with retention, and bonuses for re-enlistment are reportedly being considered. Recruiting and civilian staffing will also get a boost, though I question adding more to an already bloated public service. Reserves and cadet programs weren’t mentioned but they also need attention.

Equipment upgrades are just as urgent. A new procurement agency is planned, overseen by a secretary of state — hopefully with members in uniform involved. In the meantime, accelerating existing projects is a good way to ensure the money flows quickly. Restocking ammunition is a priority. Buying Canadian and diversifying suppliers makes sense. The Business Council of Canada has signalled its support for a national defence industrial strategy. That’s encouraging, but none of it will matter without follow-through.

Infrastructure is also in dire shape. Bases, housing, training facilities and armouries are in disrepair. Rebuilding these will not only help operations but also improve recruitment and retention. So will improved training, including more sea days, flying hours and field operations.

All of this looks promising on paper, but if the Department of National Defence can’t spend funds effectively, it won’t matter. Around $1 billion a year typically lapses due to missing project staff and excessive bureaucracy. As one colleague warned, “implementation (of the program) … must occur as a whole-of-government activity, with trust-based partnerships across industry and academe, or else it will fail.”

The defence budget also remains discretionary. Unlike health transfers or old age security, which are legally entrenched, defence funding can be cut at will. That creates instability for military suppliers and risks turning long-term procurement into a political football. The new funds must be protected from short-term fiscal pressure and partisan meddling.

One more concern: culture. If Canada is serious about rebuilding its military, we must move past performative diversity policies and return to a warrior ethos. That means recruiting the best men and women based on merit, instilling discipline and honour, and giving them the tools to fight and, if necessary, make the ultimate sacrifice. The military must reflect Canadian values, but it is not a place for social experimentation or reduced standards.

They finally did retire the Sea King, long after almost everyone else did. All CAF equipment is expected to have far longer working lives than any of our allies’ equipment.

June 16, 2025

Why Orwell’s choristers wouldn’t solve the CBC problem

Filed under: Britain, Bureaucracy, Cancon, Government — Tags: , , — Nicholas @ 03:00

Peter Stockland was looking for a George Orwell quote in the four-volume Essays, Journalism and Letters collection, but instead he found something that painfully briefly gave him hope on how to resolve the eternal CBC problem:

Orwell had been employed by the BBC for about nine months at the time. He writes of the Beeb’s “atmosphere (being) somewhere halfway between a girls’ school and a lunatic asylum (where) all we are doing is useless, or slightly worse than useless”. But that didn’t prevent him observing the following and writing it down for potential reference:

    The only time one hears people singing in the BBC is in the early morning, between 6 and 8. That is the time when the charwomen are at work. A huge army of them arrives all at the same time. They sit in the reception hall waiting for their brooms to be issued to them and making as much noise as a parrot house, and then they have wonderful choruses, all singing together as they sweep the passages. The place has quite a different atmosphere at this time from what it has later in the day.

There’s no overt opining. No proselytizing. No being a loud mouthed schnook. No. Instead, there’s quiet observing. Passerby paying attention. After the fact drafting of an attempt at understanding. All of it brings us journalistically face to face with the vitality – the potential for beauty – of ordinary, practical work using the tools available. It stands in stark contrast to the “useless or slightly worse than useless” abstractionism going on among the great, the good, and the self-important in the BBC bureaucracy.

When I first read the diary entry, it stirred me with eureka-like enthusiasm. That’s it! That’s the solution! We can finally let go of the never-never-land fantasy of abolishing the CBC/Radio Canada. Parliament can instead issue an immediate edict for Mother Corp to hire a “huge army” of cleaning persons, issue them brooms, and unleash them to sing their hearts out. They would soon sweep away the journalistic detritus and parrot droppings in the Corpse’s downtown Toronto and Montreal buildings. A little bit of hallway husbandry married to some glorious working class song: That would fix the GD CBC.

Alas, I was quickly shaken by remembering: This is Canada. Bureaucratism is the irreversible necrosis of the national spirit.

Within months – weeks? – there would be a follow up Clean Canada Choristers Control Act. A federal agency with a $50 million annual starter budget would police against misinformation being sung by the cleaners. It would deploy a gender equitable intersectional analysis to prevent settler colonial bias affecting distribution of bass, tenor, alto and soprano voices. Above all, it would regulate the size and status of the brooms to prevent any unionized chorister feeling unsafe or excluded.

I exaggerate? Not so much. Consider this week’s confirmation that Prime Minister Mark Carney’s urgency to “fast track” projects deemed of “national interest” is about to spawn its own Major Federal Projects Office – a bureaucracy to reduce the bureaucracy of getting down to work and building Canadian things that Canadians need.

You might think some journalist somewhere might ask, like, you know, “Why can’t they just reduce the bureaucracy instead of, like, you know, creating another one with more bureaucrats? Kind of, you know, play DOGE Ball North: ‘You! Bureaucrats! You’ve been tagged! You’re out!!'”

But no. Remember, as I was obliged to, this is Canada. Those kinds of questions aren’t asked even by journalists who should be asking them because … those kinds of thoughts are no longer thunk here. (I don’t think they’re actually illegal. Yet.)

June 15, 2025

Militarizing the Canadian Coast Guard (or not?)

Filed under: Cancon, Government, Military — Tags: , , , — Nicholas @ 03:00

Noah tries to get some solid information on the recent announcement by the Prime Minister that as part of changes to bring Canada into line with our decade-old NATO commitments, the Canadian Coast Guard would be moved from the civilian oversight of the Ministry of Fisheries and Oceans to the military oversight of the Ministry of National Defence. Oddly, the government seems to have been caught rather flat-footed by the PM’s announcement:

When Monday came I was invited to take part in a Media Briefing before [the PM] took questions. My immediate goal was to bring this topic up and get some sort of official words on what these plans were, especially after it wasn’t mentioned in [Carney’s] speech beforehand.

[…]

What we were told was that no such move was taking place, nor plans to arm the Coast Guard and that the current plan was to focus on augmenting their capabilities through new sensors and further collaboration with the RCN.

It was a definitive statement, one that we all agreed was cut and dry. I even reached out to other journalists before adding it to the livethread to make sure we were on [the same] page.

So imagine my surprise when Steven at the G&M came out blazing with a straight no, the plan is to move them. He even came backed up with a statement from the PMO, and credit to Steven, he was quick on this:

Credit to Steven Chase at the Globe & Mail

So as you can imagine my new goal was to figure out what exactly the hell was happening to the Coast Guard, with multiple competing statements on the subject. I made it my mission to have a definitive answer.

So it was back to asking, and emailing, everyone, from the DND to the PMO, CCG to the DFO. I got in contact, I dug into sources, even went as far as to ask people in industry if they had heard anything.

What I got for the first few days was chaos. Multiple statements saying that info wasn’t available, more time was needed. I got outright denial from the DND, only to be told they would email me back with info (they never did)

The PMO also told me info would be available when they had it. Evidently as of the time of this writing they have not responded. The only one to stay in contact and provide an answer to my question:

So as far as I was concerned this was a deal closer. The Coast Guard will be moving under the leadership of the Minister of National Defence. What will this look like? We don’t know. I had hit a dead end at this point, where sadly my reach was no longer wide enough for info.

Thankfully, there were others also keen on this, and wanting to get to the bottom of this, and they got farther than me. I will highly recommend my boy Stuart’s article on this as he got farther than me.

What has become evidently clear is:

  1. The Coast Guard is moving
  2. The idea is facing stiff resistance

This isn’t a shock at all. The DFO folks I talked to felt very caught off guard by everything, and the general reaction I have talking around was that this was a bit unexpected.

If accurate, then it is clear that this is the choice of the Prime Minister. He is the one who wants this, and so is making the final push. That isn’t to say he is the only one, but this has his backing and he will push that through.

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