Politics Briefing: Liberal promise to impose surtax on banks and insurers should be expanded to oil firms and big box stores, NDP motion says - The Globe and Mail | Canada News Media
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Politics Briefing: Liberal promise to impose surtax on banks and insurers should be expanded to oil firms and big box stores, NDP motion says – The Globe and Mail

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Hello,

The Liberal campaign promise to impose a surtax on banks and insurance companies should be expanded to include oil firms and big box stores, according to an NDP motion put forward for a day of Commons debate Monday ahead of the 2022 federal budget.

The Liberal Party’s 2021 election platform included a pledge to raise nearly $11-billion in tax revenue over five years through tax hikes on large banks and insurance companies. The platform proposal included a three percentage point corporate tax rate increase – from 15 per cent to 18 per cent – on banks and insurance companies with more than $1-billion in profits, as well as requiring these same companies to pay a “Canada Recovery Dividend.”

The Liberal Party document suggested the surtax would be in place as soon as Jan. 1, 2022, yet Finance Minister Chrystia Freeland’s December fiscal update did not formally adopt the platform pledge as government policy. At the time of the update, a senior government official said the tax hike promise would be addressed in the 2022 budget. As a result, the upcoming budget will be closely watched for details on whether the Liberals follow through.

Ms. Freeland is expected to announce a budget date in the coming days.

The House of Commons resumed sitting Monday after a two-week recess. With Canada’s inflation rate hitting a three-decade high, opposition parties of all stripes are regularly raising cost of living concerns on behalf of constituents.

NDP Leader Jagmeet Singh said he’s worried the Liberals won’t deliver the promised tax hike, let alone expand it to other sectors as his party proposes.

“I am concerned that they’re no longer interested, and part of [Monday]’s opposition day motion is to put that on the table to say they should be implementing that tax on banks and financial institutions that have made significant profits,” he told reporters at a news conference.

Monday’s opposition day gave the NDP an opportunity to put forward a motion of its choosing for a day of debate and a vote later in the week.

“And they should expand that to include big box stores and oil companies.”

During the debate, Liberal MPs suggested the government does intend to bring in the promised surtax.

“Our government’s commitment to a fair tax system is ongoing,” said Liberal MP Terry Beech, who is Ms. Freeland’s parliamentary secretary. “This includes our commitment to ensuring that large profitable banks and insurers pay their fair share.”

The NDP motion said the tax should be expanded to address the rising cost of gas, groceries and housing by using the tax revenue “to help Canadians with the cost-of-living crisis.”

Conservative MPs mocked the NDP motion, warning that higher taxes on business will ultimately mean higher prices for Canadian consumers. The Official Opposition said broad tax cuts are the best way to address cost of living concerns.

The Globe and Mail reported in November that senior bankers were privately outraged at being singled out as an industry.

This is the daily Politics Briefing newsletter, written by Ian Bailey and Deputy Ottawa Bureau Chief Bill Curry. 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

`CYBER INCIDENT’ HITS NRC – The National Research Council, Canada’s premier science and engineering institution, says it’s been hit by a “cyber incident” – a disruption that comes two months after the country’s foreign ministry suffered a computer network malfunction widely regarded as a cyber attack. Story here.

TACHJIAN TO HEAD OPEN BANKING INITIATIVE – Canada’s government is expected to name digital banking consultant Abraham Tachjian as its open banking lead this week, filling a new role created to steer the design of a new system for sharing financial data in Canada, sources say.

GOVERNMENT URGED TO ACT ON CPR WORK STOPPAGE – Canadian businesses and industry experts are urging Ottawa to intervene in a nationwide work stoppage at Canadian Pacific Railway that is posing a threat to food inflation, supply chains and the country’s reputation as a reliable agricultural partner. Story here.

COSTS RELEASED FOR BERGEN STORNOWAY MOVE – The federal government paid almost $20,000 to prepare for Candice Bergen’s move into Stornoway, the official residence of the Official Opposition leader, though she holds the role on an interim basis and will need to vacate the home in a matter of months. Story here.

REMPEL GARNER BACKS BROWN – Brampton Mayor Patrick Brown has gained a high-profile Conservative in his bid to become federal party leader, but Alberta’s Michelle Rempel Garner was immediately targeted by a rival campaign for joining his team. Story here.

CHARGES RARE IN MOST HATE-CRIME CASES – Charges are not being laid in most hate-crime cases across Canada – despite police reporting an overall spike in hate-crime offences during the pandemic – and there is a wide range of how agencies approach hate crimes and secure justice for victims. Story here.

ISLAMIC CENTRE REACTS TO HATE ATTACK – A day after a man armed with an axe and bear spray stormed Mississauga’s Dar Al-Tawheed Islamic Centre, in what police believe was a hate-motivated attack, a member of the mosque said he and other congregants will not be kept from their daily prayers. Story here.

FORD IN WASHINGTON – Ontario Premier Doug Ford is travelling across the border for the first time since the pandemic began in an effort to promote the province as an important trading partner with the United States. Story here from CTV.

CALLS FOR NEW TRANSIT-FINANCING APPROACH – Canadian governments have papered over public transit agencies’ shortfalls with one-time cash transfers. But with ridership slumps expected to continue, advocates, politicians and transit executives are calling for a new approach to financing public transportation in Canada – one that doesn’t force agencies to go cap in hand to governments as passenger numbers fluctuate. Story here.

KEY BYELECTION LOOMS IN MANITOBA – Two former CFL players – Obby Khan and Willard Reaves – face off in a Manitoba by-election this week seen as test for the provincial government. Story here.

THIS AND THAT

TODAY IN THE COMMONS – Projected Order of Business at the House of Commons, March 21, accessible here.

AIR CANADA BOSS AT LANGUAGES COMMITTEE – Air Canada President Michael Rousseau is scheduled to appear Monday before the Commons Standing Committee on Official Languages. Mr. Rousseau was in the spotlight last year after he delivered a speech, almost entirely in English, to the Montreal Chamber of Commerce, then said he had been able to live in the city for 14 years without speaking French. CTV provides some context here for Monday’s 3:30-to-5:30 p.m. hearing that’s accessible by webcast. The meeting notice is here.

JOLY AT THE MUNK SCHOOL – The Munk School of Global Affairs & Public Policy has posted video of an expansive forum appearance last Friday by Foreign Affairs Minister Mélanie Joly. The Minister delivers remarks and then takes questions from Janice Stein, founding director of the Munk School. The video is here.

THE DECIBEL

In Monday’s edition of The Globe and Mail podcast, lawyer Harold Hongju Koh talks about an international court ruling ordering Russia to stop the war in Ukraine. Mr. Koh was one of the lawyers representing Ukraine in the case against Russia and he’s also the Sterling Professor of International Law at Yale University. He talks about the arguments lawyers brought forward, Russia’s response (or lack thereof), and makes the case for international law, even if the way it’s enforced isn’t always clear. The Decibel is here.

PRIME MINISTER’S DAY

The Prime Minister, in the Ottawa region, holds private meetings.

LEADERS

NDP Leader Jagmeet Singh, in Ottawa, held a news conference to discuss his party’s opposition day motion on taxation, and was scheduled to give a speech in the House of Commons on the motion.

No schedules released for other leaders.

OPINION

Campbell Clark (The Globe and Mail) on a coming global economic Cold War:U.S. President Joe Biden has left a threat of global economic war hanging out there with his warning that China would face consequences if it aided Russia in its invasion of Ukraine. But even if that devastating economic clash is averted, the stage has been set for an economic Cold War. The sanctions imposed against Russia mark the first time economic weapons have been wielded so extensively against such a large adversary. The freezing of oligarchs’ assets, cutting Russian firms off from the SWIFT payment system, imposing tariffs on many Russian goods – all are being used, quite rightly, to punish Vladimir Putin in lieu of a direct military confrontation with a nuclear power.”

Don Drummond and William Robson (Contributed to The Globe and Mail) on when federal budgets will reflect the reality that Canada has blown through our fiscal guardrails: The budget that federal Finance Minister Chrystia Freeland will present shortly will reveal whether the government is serious about putting the national finances on to a sustainable track. There is room for doubt. Since 2015, the government had been running deficits larger than it promised, and larger than a strong economy justified. Then it responded to the COVID-19 pandemic with debt-financed spending on an unprecedented scale.”

Shachi Kurl (The Ottawa Citizen) on Defence Minister Anita Anand’s uphill battle to boost Canada’s defence spending:Defence Minister Anita Anand says she is planning an “aggressive” increase to defence spending to reach the 2 per cent of national GDP that Canada, as a NATO member, has pledged to spend. She should prepare for a tough battle. Put aside for a moment that Canada’s armed forces have a long tradition of not spending the money they are already allocated. The fact is, neither defence spending, promises to our international allies, nor the general state and readiness of our armed forces are so-called “ballot issues” of importance to voters, and the politicians know it. Instead, the political discourse around defence swings between a narrative that we are not a military country at all, to a more jingoistic version that unabashedly cheers our militarism, but neglects literally to put its money where its mouth is.”

Bob Rae (Canadian Politics and Public Policy) on a defining moment for the United Nations: “There is no overstating the seriousness of the moment. It is right to point out that there are many other bloody conflicts going on in the world right now, from Myanmar to Syria to Yemen to Ethiopia and the Horn of Africa across the Sahel, and that those disputes are also leading to the displacement of tens of millions of people from their homes — the greatest humanitarian crisis in modern times. But it is true to say that no conflict so clearly reveals this era’s unprecedented challenges to the institutional structures we thought would keep us from the brink of existential conflict.”

Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.

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New Brunswick Premier Blaine Higgs kicks off provincial election campaign

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FREDERICTON – New Brunswick Premier Blaine Higgs has called an election for Oct. 21, signalling the beginning of a 33-day campaign expected to focus on pocketbook issues and the government’s provocative approach to gender identity policies.

The 70-year-old Progressive Conservative leader, who is seeking a third term in office, has attracted national attention by requiring teachers to get parental consent before they can use the preferred names and pronouns of young students.

More recently, however, the former Irving Oil executive has tried to win over inflation-weary voters by promising to lower the provincial harmonized sales tax by two percentage points to 13 per cent if re-elected.

At dissolution, the Conservatives held 25 seats in the 49-seat legislature. The Liberals held 16 seats, the Greens had three and there was one Independent and four vacancies.

J.P. Lewis, a political science professor at the University of New Brunswick, said the top three issues facing New Brunswickers are affordability, health care and education.

“Across many jurisdictions, affordability is the top concern — cost of living, housing prices, things like that,” he said.

Richard Saillant, an economist and former vice-president of Université de Moncton, said the Tories’ pledge to lower the HST represents a costly promise.

“I don’t think there’s that much room for that,” he said. “I’m not entirely clear that they can do so without producing a greater deficit.” Saillant also pointed to mounting pressures to invest more in health care, education and housing, all of which are facing increasing demands from a growing population.

Higgs’s main rivals are Liberal Leader Susan Holt and Green Party Leader David Coon. Both are focusing on economic and social issues.

Holt has promised to impose a rent cap and roll out a subsidized school food program. The Liberals also want to open at least 30 community health clinics over the next four years.

Coon has said a Green government would create an “electricity support program,” which would give families earning less than $70,000 annually about $25 per month to offset “unprecedented” rate increases.

Higgs first came to power in 2018, when the Tories formed the province’s first minority government in 100 years. In 2020, he called a snap election — the first province to go to the polls after the start of the COVID-19 pandemic — and won a majority.

Since then, several well-known cabinet ministers and caucus members have stepped down after clashing with Higgs, some of them citing what they described as an authoritarian leadership style and a focus on policies that represent a hard shift to the right side of the political spectrum.

Lewis said the Progressive Conservatives are in the “midst of reinvention.”

“It appears he’s shaping the party now, really in the mould of his world views,” Lewis said. “Even though (Progressive Conservatives) have been down in the polls, I still think that they’re very competitive.”

Meanwhile, the legislature remained divided along linguistic lines. The Tories dominate in English-speaking ridings in central and southern parts of the province, while the Liberals held most French-speaking ridings in the north.

The drama within the party began in October 2022 when the province’s outspoken education minister, Dominic Cardy, resigned from cabinet, saying he could no longer tolerate the premier’s leadership style. In his resignation letter, Cardy cited controversial plans to reform French-language education. The government eventually stepped back those plans.

A series of resignations followed last year when the Higgs government announced changes to Policy 713, which now requires students under 16 who are exploring their gender identity to get their parents’ consent before teachers can use their preferred first names or pronouns — a reversal of the previous practice.

When several Tory lawmakers voted with the opposition to call for an external review of the change, Higgs dropped dissenters from his cabinet. And a bid by some party members to trigger a leadership review went nowhere.

This report by The Canadian Press was first published Sept. 19, 2024.

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New Brunswick Premier Blaine Higgs expected to call provincial election today

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FREDERICTON – A 33-day provincial election campaign is expected to officially get started today in New Brunswick.

Progressive Conservative Premier Blaine Higgs has said he plans to visit Lt.-Gov. Brenda Murphy this morning to have the legislature dissolved.

Higgs, a 70-year-old former oil executive, is seeking a third term in office, having led the province since 2018.

The campaign ahead of the Oct. 21 vote is expected to focus on pocketbook issues, but the government’s provocative approach to gender identity issues could also be in the spotlight.

The Tory premier has already announced he will try to win over inflation-weary voters by promising to lower the harmonized sales tax by two percentage points to 13 per cent if re-elected.

Higgs’s main rivals are Liberal Leader Susan Holt and Green Party Leader David Coon, both of whom are focusing on economic and social issues.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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NDP flips, BC United flops, B.C. Conservatives surge as election campaign approaches

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VICTORIA – If the lead up to British Columbia‘s provincial election campaign is any indication of what’s to come, voters should expect the unexpected.

It could be a wild ride to voting day on Oct. 19.

The Conservative Party of B.C. that didn’t elect a single member in the last election and gained less than two per cent of the popular vote is now leading the charge for centre-right, anti-NDP voters.

The official Opposition BC United, who as the former B.C. Liberals won four consecutive majorities from 2001 to 2013, raised a white flag and suspended its campaign last month, asking its members, incumbents and voters to support the B.C. Conservatives to prevent a vote split on the political right.

New Democrat Leader David Eby delivered a few political surprises of his own in the days leading up to Saturday’s official campaign start, signalling major shifts on the carbon tax and the issue of involuntary care in an attempt to curb the deadly opioid overdose crisis.

He said the NDP would drop the province’s long-standing carbon tax for consumers if the federal government eliminates its requirement to keep the levy in place, and pledged to introduce involuntary care of people battling mental health and addiction issues.

The B.C. Coroners Service reports more than 15,000 overdose deaths since the province declared an opioid overdose public health emergency in 2016.

Drug policy in B.C., especially decriminalization of possession of small amounts of hard drugs and drug use in public areas, could become key election issues this fall.

Eby, a former executive director of the B.C. Civil Liberties Association, said Wednesday that criticism of the NDP’s involuntary care plan by the Canadian Civil Liberties Association is “misinformed” and “misleading.”

“This isn’t about forcing people into a particular treatment,” he said at an unrelated news conference. “This is about making sure that their safety, as well as the safety of the broader community, is looked after.”

Eby said “simplistic arguments,” where one side says lock people up and the other says don’t lock anybody up don’t make sense.

“There are some people who should be in jail, who belong in jail to ensure community safety,” said Eby. “There are some people who need to be in intensive, secure mental health treatment facilities because that’s what they need in order to be safe, in order not to be exploited, in order not to be dead.”

The CCLA said in a statement Eby’s plan is not acceptable.

“There is no doubt that substance use is an alarming and pressing epidemic,” said Anais Bussières McNicoll, the association’s fundamental freedoms program director. “This scourge is causing significant suffering, particularly, among vulnerable and marginalized groups. That being said, detaining people without even assessing their capacity to make treatment decisions, and forcing them to undergo treatment against their will, is unconstitutional.”

While Eby, a noted human rights lawyer, could face political pressure from civil rights opponents to his involuntary care plans, his opponents on the right also face difficulties.

The BC United Party suspended its campaign last month in a pre-election move to prevent a vote split on the right, but that support may splinter as former jilted United members run as Independents.

Five incumbent BC United MLAs, Mike Bernier, Dan Davies, Tom Shypitka, Karin Kirkpatrick and Coralee Oakes are running as Independents and could become power brokers in the event of a minority government situation, while former BC United incumbents Ian Paton, Peter Milobar and Trevor Halford are running under the B.C. Conservative banner.

Davies, who represents the Fort St. John area riding of Peace River North, said he’s always been a Conservative-leaning politician but he has deep community roots and was urged by his supporters to run as an Independent after the Conservatives nominated their own candidate.

Davies said he may be open to talking with B.C. Conservative Leader John Rustad after the election, if he wins or loses.

Green Leader Sonia Furstenau has suggested her party is an option for alienated BC United voters.

Rustad — who faced criticism from BC United Leader Kevin Falcon and Eby about the far-right and extremist views of some of his current and former candidates and advisers — said the party’s rise over the past months has been meteoric.

“It’s been almost 100 years since the Conservative Party in B.C. has won a government,” he said. “The last time was 1927. I look at this now and I think I have never seen this happen anywhere in the country before. This has been happening in just over a year. It just speaks volumes that people are just that eager and interested in change.”

Rustad, ejected from the former B.C. Liberals in August 2022 for publicly supporting a climate change skeptic, sat briefly as an Independent before being acclaimed the B.C. Conservative leader in March 2023.

Rustad, who said if elected he will fire B.C.’s provincial health officer Dr. Bonnie Henry over her vaccine mandates during the COVID-19 pandemic, has removed the nominations of some of his candidates who were vaccine opponents.

“I am not interested in going after votes and trying to do things that I think might be popular,” he said.

Prof. David Black, a political communications specialist at Greater Victoria’s Royal Roads University, said the rise of Rustad’s Conservatives and the collapse of BC United is the political story of the year in B.C.

But it’s still too early to gauge the strength of the Conservative wave, he said.

“Many questions remain,” said Black. “Has the free enterprise coalition shifted sufficiently far enough to the right to find the social conservatism and culture-war populism of some parts of the B.C. Conservative platform agreeable? Is a party that had no infrastructure and minimal presence in what are now 93 ridings this election able to scale up and run a professional campaign across the province?”

This report by The Canadian Press was first published Sept. 19, 2024.

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