The Company You Keep

You remember, I'm sure, what your mother taught you: you are judged by the company you keep. By that standard, almost all of the MPs who form the Harper regime are to be condemned, willing, as they apparently are, to trade any vestige or semblance of integrity and self-respect for the chance of obtaining power. The seal that barks the loudest often gets the biggest fish.

Looking decidedly well-fed on piscine fare these days is Finance Minister Joe Oliver who, despite some very obvious shortcomings, appears quite content to be the good soldier carrying out Dear Leader's commands. Yet a closer look reveals that Stephen Harper has some serious competition in the unsavoury associates category. That's because of Oliver's close association with

Rebecca MacDonald, founder and executive chair of Just Energy Group Inc., a $3.9-billion Toronto-based energy marketing company. Oliver appointed MacDonald to his Economic Advisory Council last summer.

MacDonald was in the news last month after Canadian Pacific Railway Ltd. made her the head of its corporate governance committee. MacDonald has been on CP Rail’s board for the past three years.

Bruce Livesey writes that MacDonald, who enjoys a high social profile, has a rather low ethical threshold. You may have encountered some of her employees at your door, trying to sell you an energy contract. If your 'Spider sense' started to tingle, your instincts were correct, since

charges of consumer fraud, unscrupulous sales tactics, multi-million dollar fines, and allegations of fabricating credentials have plagued both MacDonald and Just Energy for years. This past winter, for example, Massachusetts forced a (US) $4-million settlement out of the company over its sales methods, specifically over making false representations to customer. “We allege this… supplier engaged in widespread and misleading conduct that lured consumers into costly contracts in the form of high electricity rates and termination fees,” said the state’s attorney general, Martha Coakley, when the settlement was announced.

Just Energy also owes $105-million to the Canada Pension Plan Investment Board (CPPIB) – a loan it received three years ago after Bay Street refused to finance the company in a public share offering.

Says forensic accountant Dr. Al Rosen, who has investigated both MacDonald and her company, “How they could possibly have loaned them five cents is beyond me”.

Part of the answer may lie in the fact that she has friends in high places, including Oliver, John Baird, Major General Lewis MacKenzie, former Senator Hugh Segal and former Ontario chief justice Roy McMurtry.

An investigation by The National Observer reveals that her life seems to be filled with a series of fabrications, ranging from the lie that her father was the minister of energy in Yugoslavia under Tito, that she became a doctor at the age of 22, and that she is a trained concert pianist. And these were just the lies she told her first husband.

Telling fibs about your credentials is not a minor issue if you’re running a publicly-traded company, says Joe Groia, one of Canada’s top security lawyers. “If you have a director or an officer of a public company who’s falsified her credentials or if she’s telling stories about her background in order to give herself credibility in the marketplace and those stories are not true, that’s a very serious issue… So regulators take it very seriously… because directors have a huge amount of responsibility.”

From suits involving consumer fraud to employing people whose companies were fronts for the Russian mafia to juggling its books, MacDonald's Just Energy, for anyone interested in corporate morality and ethical practices, is a toxic product, a matter apparently of no concern to Joe Oliver or CP Rail:

Oliver spokesperson Nicholas Bergamini responded by saying: “Our government consults widely with leading business and economic innovators – to hear ideas to create jobs, growth and long-term prosperity.”

And CP Rail spokesperson Marty Cej says that MacDonald has the “full confidence of the board” and that her posting to the head of its governance committee was an “unanimous” decision. When pressed if they conducted any due diligence on her background, Cej repeated the same statement.

Perhaps the final word should be accorded to the forensic accountant, Al Rosen, who issues this warning to consumers about the company:

“It's something that you should run far and fast away from.”

It is the same advice I would give to voters about a government that endorses such ethically-challenged companies and practices.

Less Than Meets The Eye

So much for fiscal prudence. So long credibility.

Those words, written By Scott Clark and Peter DeVries, succinctly summarize the illusions, misdirection and magical thinking that Joe Oliver's budget is based on.

As the authors point out, six 'rabbits' that Oliver pulled out of his hat on Tuesday conceal some disquieting truths:

First, the government changed the methodology the Finance Department uses to forecast oil prices. Oliver is now forecasting that oil prices will increase in the coming years, averaging $54 a barrel in 2015, $67 in 2016, $75 in 2017 and $78 a barrel in 2018 and 2019.

According to projections by the World Bank, this is quite an optimistic forecast.

The second rabbit was the selling off of capital assets to cover one-time spending. In the budget, asset sales amounted to an incremental $1 billion in 2015-16, resulting from the sales of the government’s GM shares. These shares were sold at a steep loss solely to achieve a political commitment — a balanced budget in 2015-16

The next feat of prestidigitation is found in the contingency fund:

In previous budgets, Finance included a contingency reserve of $3 billion per year. The contingency reserve is also there as a buffer in the event that economic results do not turn out as expected. The contingency reserve was cut to bone Tuesday — to just $1 billion in each of the next three years.

Given the precarious financial outlook for the world, this cut can only be seen as foolish, reckless, and overtly political.

The fourth rabbit was an increase in the “lapse” — the amount of funds appropriated to departments and agencies by Parliament but not spent during the course of the year. The lapse for 2015-16 and the next two fiscal years has been increased...

The consequences of such 'lapses' cannot be underestimated. Here is but one example:

The fifth rabbit was the government’s decision to continue to assume higher-than-required Employment insurance (EI) premium rates. This generated an additional $1.8 billion in 2015-16.

And, as Thomas Walkom points out,

The finance minister managed to win his surplus this year largely by taking $3.4 billion from the employment insurance account...

The final rabbit — certainly not the least controversial — is government’s forecast of $900 million in 2015-16 resulting from legislating “a modernized disability and sick leave management system” on public sector unions in the budget bill yet to be tabled.

Since negotiations are ongoing, bargaining in bad faith is not too strong an accusation to level against the government which, in fact, may relish a battle with the unions going into the election, given public antipathy toward those who do well in unionized environments. Nevertheless, counting on almost $1 billion being extracted from public servants does appear to be a tad wishful.

All in all, once the surface of this budget is scratched, the alleged economic prowess of Stephen Harper is once again exposed for the myth that it is.

A Harper Dynasty?

That's what the leaden-tongued Finance Minister seemed to be suggesting last night in discussing his budget. Either that, or the message was "Screw future generations."

You decide:

Canada's Fearless Tax Warrior

That intrepid capeless crusader for core Conservative concepts, Finance Minister 'Uncle' Joe Oliver, has found yet another weapon in his utility pouch to save us from the implacable clutches of taxation. Rather than rely on a bureaucracy that may be rife with 'fifth columnists', Oliver has decided to outsource fiscal analysis to those most acquainted with the scourge of taxation, lobby groups!

Our man's courage in the face of sneering opposition is a wonder to behold:

Finance Minister Joe Oliver says the government approved a $550-million tax credit for small business without conducting any internal analysis to find out how many jobs the measure would create.

The minister told the House of Commons finance committee Wednesday that such analysis was deemed unnecessary because it had already been done by the Canadian Federation of Independent Business, a small-business lobby group.

That 'analysis' claimed the credit would create 25,000 “person years” of employment, a figure quickly deflated by the Parliamentary Budget Officer, who concluded the credit would create only about 800 jobs over two years.

Perhaps sensing that his enemies ('the tax and spend crowd') were getting close to uncovering his alter ego, Oliver performed the perfect feint by taking on the persona of a village idiot. When asked by MP Scott Brison why the government didn't undertake its own analysis before granting the tax credit, he said:

“Because we didn’t think that we needed to do another analysis when we already had received one and we knew that this is a good news story for small businesses. The small business organizations have been asking us for a long time for this break”.

The colloquy, as reported by Aaron Wherry, continued:

Brison: So are you aware of the methodology they used?

Oliver: We are aware that they have expertise, they’ve spoken to their members and I have had an opportunity to speak to them and I’ve had an opportunity to speak to many small businesses in my riding in Toronto and elsewhere around the country. You know, you may not want to listen to small businesses. We do, and they are the biggest generators of employment in the country.

Brison: So you’re not aware of their methodology they used to come to that number?

Oliver: I am aware that they have spoken to their members and they do their regular type of analysis that you’d expect them to do. I mean, when you invest over half a billion dollars, there’s a macro-economic impact and we’re very comfortable there’ll be significant job creation.

NDP MP Nathan Cullen, part of the brigade attempting to derail Oliver's crusade, offered an observation that we can only hope deflected harmlessly off of the finance minister's protective shield. He said

that the minister’s comment shows the government is making major decisions based on ideology rather than evidence.

“They’re outsourcing policy to business lobby groups,” said Mr. Cullen. “Would they outsource policy to the Canadian Federation of Students? Would they outsource it to the national unions? They are now just allowing other people to write policy and spend employment insurance money.”

Fighting for one's faith can be a lonely endeavour, but if anyone can gird his loins and carry on, it is Uncle Joe.

More Harper Acquiescence To The Corporate Agenda

As much as it is said that the Harper regime is planning to buy votes for the 2015 election by giving income-splitting to families, the reality is that Canadians are increasingly being called upon to aid and abet its agenda of 'starving the beast' while at the same time subsidizing corporate profits.

As reported in The Globe and Mail, our Finance Department has quietly shelved plans to crack down on so-called “treaty shopping” by multinationals. The surprise move suspends a long campaign by Ottawa to stop what it says is rampant “abuse” of international tax treaties by companies seeking to duck Canadian taxes.

Treaty-shopping was most recently in the news when Burger King engineered a merger with Tim Hortons so it could pay a much lower corporate tax rate that Canada offers. Despite the fact that the late Finance Minister Jim Flaherty wanted to curb the practice, 'Uncle' Joe Oliver is embracing it:

Facing intense lobbying from resources companies and their tax advisers, Mr. Oliver apparently bought the argument that curbing treaty shopping would put a chill on foreign investment in places such as the Alberta oil sands, leaving Canada at a competitive disadvantage.

In other words, the argument goes, the rapacious appetite for massive corporate profits, along with the refusal to accept any responsibility to the country that makes those profits possible, is the business imperative that must be yielded to:

In a prebudget submission to the House of Commons Finance committee, Deloitte & Touche LLP had this to say:

“To attract foreign capital, Canadian projects generally must support higher potential yields than comparative investments located in the home country of a capital source,” Deloitte tax policy leader Albert Baker said in the submission. “This is a particular issue for the energy and resource sector.”

The flip side is that not squeezing corporations means individual Canadians must bear a disproportionate share of the country’s tax load. Unlike companies, ... hard-working Canadians can’t use complex offshore tax structures.

The message therefore seems to be that all other Canadian taxpayers – you and I – should subsidize the inflated profits of offshore oil sands investors.

So much for the rhetoric and propaganda the Harper regime fosters about its concern for 'working families.'

Harper's Reign Of Terror - A Closer Examination

While Stephen Harper's attacks on charities have been followed here and elsewhere, the Star presents a good overview of how the offices of the CRA have been subverted by a vindictive regime that brooks no opposition to its neoliberal agenda.

The article begins with the egregious case of CoDevelopment Canada, a small Vancouver charity that works with its Latin American partners in helping to fund programs that assist the poor. Apparently, if that assistance threatens to upset the corporate status quo, a crime has been committed in Harperland.

One of CoDev's Latin American partners is the Maria Elena Cuadra Movement for Working and Unemployed Women (MEC), which is based in Nicaragua. MEC’s goals include helping to modernize labour relations in Nicaragua’s free-trade zones by promoting the notion that human, labour and gender rights for workers must be upheld.

In 2013-14, CoDev and its Canadian partners sent MEC nearly $38,000. The money was used for causes such as MEC’s legal clinic, which that year handled 2,000 cases — 1,600 involving women — pertaining to issues such as labour-rights violations and gender-based violence.

Previously, the charity vigorously opposed Ottawa’s decision to sign a free-trade agreement with Colombia, a country [Barbara] Wood [CoDev’s former executive director,] describes as having “massive displacement and violence.’’

Wood muses about whether CoDev’s criticism of the government played a role in putting it on CRA’s radar.

Consider the tale of CoDev's two audits. Their first, in 2009, was a relatively innocuous affair:

The auditor came for about four days to the group’s small second-floor office in east Vancouver on June 10, 2009. A few glitches were spotted. For example, CoDev had been reporting some of its money in the wrong boxes on its tax returns, and filing cabinets in the charity’s office containing donor information weren’t being locked.

Case closed, right? Not quite. In 2012, 'Uncle' Joe Oliver, then Natural Resources Minister, in an open letter warned that environmental and other "radical groups" are trying to block trade and undermine Canada's economy.

It wasn't long after this that nonprofits critical of aspects of government policy suddenly found themselves the centre of the CRA's attention. The David Suzuki Foundation, of course, was one of them.

In mid-October, a new audit wass ordered of CoDev, one that began in January of 2013, this one involving three investigators, an auditor and two others whose area of specialty was program funding. They ultimately imposed onerous stipulations on the four-person office, including the translation of all Spanish documents into English. More specific details outlining the Harper-directed CRA vindictiveness can be found here.

Most reasonable people will draw the conclusion that these audits are far from innocent. In the simplistic and bifurcated world of Stephen Harper, you are either with the government or you are with its 'enemies'. If you fall into the latter category, beware the consequences.

Will The Harper Promise Of Tax Breaks Continue To Seduce Canadians?

Recently, Ontario Premier Kathleen Wynne called upon the Harper regime to commit $12 billion annually in infrastructure funding. This request takes on even greater urgency in light of the challenges we are and will be facing as we reap the consequences of climate change.

Fiance Minister Joe Oliver's response:

Wynne’s request is “divorced from fiscal reality.”

“We are not going to engage in a wild spending spree, which will create massive deficits and increase the debt. . . . We will also not jeopardize our top credit rating and we will not add to the intergenerational burden,” he said.

At the same time Herr Harper's henchman is preaching the virtues of fiscal discipline and ignoring the increasing costs of doing nothing in light of the above-stated peril, he is also pandering to our basest and most selfish instincts.

Yesterday, in a preview of the 2015 budget that will be designed to ensure the regime's re-election, 'Uncle Joe' offered this tease:

“I’m talking about reducing taxes for Canadian families and individuals”.

The words 'false economy' never escaped him ample lips.

In reference to a study done by the regime's ideological allies, The Fraser Institute, which just released a 'study' claiming we are grossly overtaxed and not getting good value in return, the finance minister had this to say:

Ottawa has reduced the federal tax burden and has urged other levels of government to reduce expenses and taxes.

It’s healthy for Canadians to understand the facts when it comes to taxes so the public can decide what’s fair and necessary.

So the Institute is just providing a public educational service, eh?

In that case, be sure to check out this piece, which points out some flaws in both the study's methodology and ideology.

After all, apparently Uncle Joe wants Canadians to be fully informed to decide 'what's fair and necessary.'

The final choice is up to us in 2015. Will we embrace the Harper ideology of selfishness and insularity and re-elect a corrupt and undemocratic government? Or will we rediscover our collectivist traditions and remember that our obligations are not only to ourselves but to each other?

Nothing New Here

All who find change unsettling will be reassured by the following video from today's Question Period, the House's first day back after a two-week break. Nothing has changed. Tory arrogance and contempt for Canadians is in full display:

Leading Climate Scientist Responds To Joe Oliver And His 'Neanderthal Government' - UPDATED

The other day I wrote a blog post on one of our national disgraces, Natural Resources Minister Joe Oliver. While in Washington recently promoting the proposed XL Keystone pipeline through the United States, Oliver took the opportunity to insult and denigrate one of the world's leading climate-change scientists, James Hansen.

In an interview with the CBC's Evan Solomon, Hansen uses the occasion to set the record straight and offer his own opinion on our federal government, which he terms 'neanderthal' on the topic of climate change. The video of that interview is available below:

UPDATE: Read Sorry, Jim: Apologies from Canada about Oil Minister Joe Oliver, written by John Bennett at rabble.ca.

H/t Penny Mills

A Bit More About Natural Resources Minister Joe Oliver

Late yesterday afternoon, I wrote a post on one of our more shameful politicians, Natural Resources Minister Joe Oliver and the embarrassment we all should feel over his performance in Washington in a speech to a carefully-screened audience pushing the XL Keystone pipeline. In it, he rebuked and ridiculed leading climate-change scientist James Hansen for his warnings about the Alberta tarsands.

In a comment on yesterday's post, which you can read in by clicking the above link, The Salamander offered his usual penetrating analysis, this time assessing the Natural Resources Minister and providing a link to Franke James' site. An environmental activist, writer, and game designer, James provides a transcript of a meeting she had with Oliver on March 3/12 at his riding office in Toronto.

I hope you will take some time to peruse the transcript, as it offers even more insight into the man who, in my view, has a decidedly twisted view of what his role as Natural Resources Minister is.

Oh, Joe Oliver, Have You No Shame? UPDATED

In denouncing a leading climate change scientist, the coward, Resources Minister Joe Oliver, showed his complete lack of character, insisting that his message be delivered to a carefully screened audience to avoid any embarrassment from those who favour truth over propaganda.

As Canadians, we should all feel ashamed by the way we are being misrepresented in other countries by this man and his government.

UPDATED: Perhaps you will agree that this interview with Oliver by Evan Solomon can only compound our collective embarrassment over his lies/ineptitude:

A Followup To Dr. Chris Keefer's Brave Stance

The other day I posted a link to a remarkable video showing Dr. Chris Keefer interrupting Natural Resources Minister Joe Oliver's announcement at Toronto General hospital to protest Bill C-31, the legislation that will deny to those claiming refugee-status life saving drugs.

Bernie Farber has written a piece in The Huffington Post lauding the doctor's courage and integrity as he further explores the implications of this legislation.

Speaking Truth To Power

I hope this video renews your faith in people as it has mine:

Dr. Chris Keefer interrupts Natural Resources Minister Joe Oliver:

The Harper Budget's Attack On Charities

Although hardly surprising, given both the ideological bent of the Harper regime and earlier warnings from Natural Resources Minister Joe Oliver, there is little doubt that the provisions of the new federal budget authorizing an $8-million special audit by Canada Revenue Agency to see if charities are adhering to the 10-per-cent political advocacy limit is aimed directly at the 'enemies' of this regime.

While the charitable status of overtly political foundations such as the C.D Howe Institute, The Fraser Institute, and the Manning Centre for Building Democracy seem to enjoy a special immunity from scrutiny, those whose vision of Canada run counter to Harper's are undoubtedly in for a very rough ride.

Paul Waldie has an interesting piece on the implication of this new measure, suggesting that a kind of chill will now permeate environmental organizations, precisely the intention, I am sure, of the Harper regime that has no interest in respecting differences of opinion, an intolerance typical of extreme right-wing thinking and its refusal/inability to comprehend nuanced thinking.

Criminal Activity in Joe Oliver's Campaign?

The Star is reporting that Natural Resources Minister Joe ('radicals are threatening the tarsands') Oliver's riding of Eglinton-Lawrence may have been the scene of another electoral crime, this one involving the last-minute rush of previously unregistered voters who cast ballots in the last federal election.

Veteran Liberal MP Joe Volpe lost the riding to Conservative Oliver by 4,062 votes, but the problems is that at least 2,700 applications for late registration to vote... failed to provide addresses or gave false or non-residential addresses. Nonetheless, contrary to Election Canada rules, they were allowed to vote.

With this latest evidence of well-organized electoral fraud, one wonders when the revelations will end, and if they can ever be successfully and definitively investigated and resolved.