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Politics Briefing: Measuring the economic hit from COVID-19 – The Globe and Mail

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Hello,

New data from Statistics Canada suggests how hard the Canadian economy was hit by the COVID-19 pandemic and the public-health measures intended to stop it: an 11.5-per-cent decline in GDP the second quarter ending June 30.

It’s the largest drop the monitoring agency has ever recorded. But economists say there are reasons for optimism. The drop was less than expected, they said this morning, and the recovery in June – as lockdown measures lifted – was faster than anticipated. What happens if a second wave hits, though, remains to be seen.

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During the same period, the federal government ran up a $120-billion deficit trying to prop up the economy through emergency payments and business supports.

This is the daily Politics Briefing newsletter, written by Chris Hannay. It is available exclusively to our digital subscribers. If you’re reading this on the web, subscribers can sign up for the Politics newsletter and more than 20 others on our newsletter signup page. Have any feedback? Let us know what you think.

TODAY’S HEADLINES

Leslyn Lewis, who emerged as a new voice in the Conservative Party with her strong finish in the leadership race earlier this week, says she might run in a riding out west in the next election. The Toronto lawyer says her home is in Ontario, but she’s been receiving entreaties from Western ridings.

The federal government is looking to hire an executive search firm to help it find diverse candidates for high-ranking positions in the public service.

U.S. President Donald Trump accepted the Republican nomination for his re-election campaign with a political rally on the front lawn of the White House.

Shinzo Abe, Japan’s prime minister since 2012, says he is resigning due to health problems.

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And in Lebanon, negotiations will start Monday to select a new prime minister. The country was devastated by a massive explosion at the Beirut port earlier this month, and the cause of the explosion is being blamed on a culture of political corruption. One new figure emerging in the uncertainty is billionaire businessman Bahaa Hariri, son of one former prime minister and brother to another, who had mostly stayed out of politics until now.

Campbell Clark (The Globe and Mail) on whether we’ll get a fall election: “Unlike the other major opposition parties, the NDP’s strategy is to work with the minority Liberals. Many senior New Democrats think their voters like to hear them talk about making Parliament work, and that their party succeeds when it claims credit for forcing progressive policies on the Liberals. The NDP isn’t flush with cash, so if Mr. Trudeau wants to, he can bargain for its support. He’d have a hard time presenting a big interventionist budget that doesn’t get it.”

Ian Waddell (The Globe and Mail) on how the Liberals and NDP can work together: “A potential road map for Mr. Trudeau’s Liberals and Mr. Singh’s NDP could be found in the 2017 confidence-and-supply agreement between the B.C. Greens and the B.C. NDP. Both parties agreed that they campaigned on some similar points, including making democracy work for people, creating jobs, acting on climate change, building a sustainable economy that works for everyone, fixing the services people count on, and making life more affordable for people. The written agreement established a method of more formal consultation between both caucuses, and even has a dispute resolution process.”

Sean Speer (National Post) on the NDP holding the balance of power: “The choice before the party may be bigger than whether we have a fall election. It strikes at the heart of what the NDP’s identity and purpose is. Is it a political party vying for power or an ideological movement trying to shift the political centre of gravity to the left?”

Dale Smith (The Globe and Mail) on why the old tradition of prorogation ceremonies should come back: “Associating a certain amount of pomp and pageantry with prorogation ensures that there is visibility for the exercise, and would absolutely curb its tactical usage. After all, it would have been hard for Mr. Harper to write a prorogation speech in 2008 about what he had accomplished from his Throne Speech three weeks prior. In 2009, it would have prevented him from simply phoning in a prorogation request to former governor-general Michaëlle Jean, forcing him instead into the visible exercise of him walking up to Rideau Hall to make the request. In this year’s example, it would have compelled Mr. Trudeau to draw attention to his request for prorogation, so he couldn’t simply append the news to his announcement about a cabinet shuffle that same day.”

Sarmishta Subramanian (Maclean’s) on going back to school: “But this isn’t a teachers’ issue. It’s a parents’ issue, a children’s issue, and much more broadly a citizens’ issue. If a poorly conceived back-to-school plan ends up jeopardizing our hard-won gains on COVID, straining health care systems and the economy further, we’ll all be affected.”

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Trudeau says ‘all sorts of reflections’ for Liberals after loss of second stronghold

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OTTAWA – Prime Minister Justin Trudeau say the Liberals have “all sorts of reflections” to make after losing a second stronghold in a byelection in Montreal Monday night.

His comments come as the Liberal cabinet gathers for its first regularly scheduled meeting of the fall sitting of Parliament, which began Monday.

Trudeau’s Liberals were hopeful they could retain the Montreal riding of LaSalle—Émard—Verdun, but those hopes were dashed after the Bloc Québécois won it in an extremely tight three-way race with the NDP.

Louis-Philippe Sauvé, an administrator at the Institute for Research in Contemporary Economics, beat Liberal candidate Laura Palestini by less than 250 votes. The NDP finished about 600 votes back of the winner.

It is the second time in three months that Trudeau’s party lost a stronghold in a byelection. In June, the Conservatives defeated the Liberals narrowly in Toronto-St. Paul’s.

The Liberals won every seat in Toronto and almost every seat on the Island of Montreal in the last election, and losing a seat in both places has laid bare just how low the party has fallen in the polls.

“Obviously, it would have been nicer to be able to win and hold (the Montreal riding), but there’s more work to do and we’re going to stay focused on doing it,” Trudeau told reporters ahead of this morning’s cabinet meeting.

When asked what went wrong for his party, Trudeau responded “I think there’s all sorts of reflections to take on that.”

In French, he would not say if this result puts his leadership in question, instead saying his team has lots of work to do.

Bloc leader Yves-François Blanchet will hold a press conference this morning, but has already said the results are significant for his party.

“The victory is historic and all of Quebec will speak with a stronger voice in Ottawa,” Blanchet wrote on X, shortly after the winner was declared.

NDP Leader Jagmeet Singh and his party had hoped to ride to a win in Montreal on the popularity of their candidate, city councillor Craig Sauvé, and use it to further their goal of replacing the Liberals as the chief alternative to the Conservatives.

The NDP did hold on to a seat in Winnipeg in a tight race with the Conservatives, but the results in Elmwood-Transcona Monday were far tighter than in the last several elections. NDP candidate Leila Dance defeated Conservative Colin Reynolds by about 1,200 votes.

Singh called it a “big victory.”

“Our movement is growing — and we’re going to keep working for Canadians and building that movement to stop Conservative cuts before they start,” he said on social media.

“Big corporations have had their governments. It’s the people’s time.”

New Democrats recently pulled out of their political pact with the government in a bid to distance themselves from the Liberals, making the prospects of a snap election far more likely.

Trudeau attempted to calm his caucus at their fall retreat in Nanaimo, B.C, last week, and brought former Bank of Canada governor Mark Carney on as an economic adviser in a bid to shore up some credibility with voters.

The latest byelection loss will put more pressure on him as leader, with many polls suggesting voter anger is more directed at Trudeau himself than at Liberal policies.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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NDP declares victory in federal Winnipeg byelection, Conservatives concede

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The New Democrats have declared a federal byelection victory in their Winnipeg stronghold riding of Elmwood—Transcona.

The NDP candidate Leila Dance told supporters in a tearful speech that even though the final results weren’t in, she expected she would see them in Ottawa.

With several polls still to be counted, Conservative candidate Colin Reynolds conceded defeat and told his volunteers that they should be proud of what the Conservatives accomplished in the campaign.

Political watchers had a keen eye on the results to see if the Tories could sway traditionally NDP voters on issues related to labour and affordability.

Meanwhile in the byelection race in the Montreal riding of LaSalle—Émard—Verdun the NDP, Liberals and Bloc Québécois remained locked in an extremely tight three-way race as the results trickled in slowly.

The Liberal stronghold riding had a record 91 names on the ballot, and the results aren’t expected until the early hours of the morning.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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Another incumbent BC United MLA to run as Independent as Kirkpatrick re-enters race

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VANCOUVER – An incumbent BC United legislative member has reversed her decision not to seek re-election and has announced she’ll run as an Independent in the riding of West Vancouver-Capilano in the upcoming British Columbia election.

Karin Kirkpatrick has been a vocal critic of BC United Leader Kevin Falcon’s decision last month to suspend the party’s campaign and throw support behind the B.C. Conservatives under John Rustad.

Kirkpatrick announced her retirement this year, but said Monday that her decision to re-enter the race comes as a direct result of Falcon’s actions, which would force middle-of-the-road voters to “swing to the left” to the NDP or to move further right to the Conservatives.

“I did hear from a lot of constituents and a lot of people who were emailing me from across B.C. … that they didn’t have anybody to vote for,” she said. “And so, I looked even at myself, and I looked at my riding, and I said, ‘Well, I no longer have anybody to vote for in my own riding.’ It was clearly an issue of this missing middle for the more moderate voter.”

She said voters who reached out “don’t want to vote for an NDP government but felt deeply uncomfortable” supporting the provincial Conservatives, citing Rustad’s tolerance of what she calls “extreme views and conspiracy theorists.”

Kirkpatrick joins four other incumbent Opposition MLAs running as Independents, including Peace River South’s Mike Bernier, Peace River North’s Dan Davies, Prince George-Cariboo’s Coralee Oakes and Tom Shypitka in Kootenay-Rockies.

“To be honest, we talk just about every day,” Kirkpatrick said about her fellow BC United incumbents now running as Independents. “We’re all feeling the same way. We all need to kind of hold each other up and make sure we’re doing the right thing.”

She added that a number of first-time candidates formerly on the BC United ticket are contacting the group of incumbents running for election, and the group is working together “as good moderates who respect each other and lift each other up.”

But Kirkpatrick said it’s also too early to talk about the future of BC United or the possibility of forming a new party.

“The first thing we need to do is to get these Independent MLAs elected into the legislature,” she said, noting a strong group could play a power-broker role if a minority government is elected. “Once we’re there then we’re all going to come together and we’re going to figure out, is there something left in BC United, BC Liberals that we can resurrect, or do we need to start a new party that’s in the centre?”

She said there’s a big gap left in the political spectrum in the province.

“So, we just have to do it in a mindful way, to make sure it’s representing the broadest base of people in B.C.”

Among the supporters at Kirkpatrick’s announcement Monday was former longtime MLA Ralph Sultan, who held West Vancouver-Capilano for almost two decades before retiring in 2020.

The Metro Vancouver riding has been a stronghold for the BC Liberals — the former BC United — since its formation in 1991, with more than half of the votes going to the centre-right party in every contest.

However, Kirkpatrick’s winning margin of 53.6 per cent to the NDP’s 30.1 per cent and the Green’s 15.4 per cent in the 2020 election shows a rising trend for left-leaning voters in the district.

Mike McDonald, chief strategy officer with Kirk and Co. Consulting, and a former campaign director for the BC Liberals and chief of staff under former Premier Christy Clark, said Independent candidates historically face an uphill battle and the biggest impact may be splitting votes in areas where the NDP could emerge victorious.

“It really comes down to, if the NDP are in a position to get 33 per cent of the vote, they might have a chance of winning,” McDonald said of the impact of an Independent vote-split with the Conservatives in certain ridings.

He said B.C. history shows it’s very hard for an Independent to win an election and has been done only a handful of times.

“So, the odds do not favour Independents winning the seats unless there is a very unique combination of circumstances, and more likely that they play a role as a spoiler, frankly.”

The B.C. Conservatives list West Vancouver School District Trustee Lynne Block as its candidate in West Vancouver-Capilano, while the BC NDP is represented by health care professional Sara Eftekhar.

Kirkpatrick said she is confident that her re-entry to the race will not result in a vote split that allows the NDP to win the seat because the party has always had a poor showing in the riding.

“So, even if there is competition between myself and the Conservative candidate, it is highly unlikely that anything would swing over to the NDP here. And I believe that I have the ability to actually attract those NDP voters to me, as well as the Conservatives and Liberals who are feeling just lost right now.”

This report by The Canadian Press was first published Sept. 16, 2024.

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