Toronto Star

Liberal bid for more power rejected by MPs

Draft bill would allow government to tax, spend without Parliament vote

- BRUCE CAMPION-SMITH OTTAWA BUREAU

OTTAWA— Billions of dollars in promised aid for Canadians hit by the impact of COVID-19 got hung up Tuesday over opposition refusal to give the Liberal government free rein to spend without parliament­ary approval. A House of Commons session to approve the legislatio­n — meant as a non-partisan show of support for Canadians struggling through the health and economic crisis — went off the rails just as quickly as it began.

The wrinkle? The Liberals’ bid for broad tax-and-spend powers without the need for Parliament’s OK.

As the ranks of Canada’s unemployed swelled even more Tuesday, the Commons session was recessed and negotiatio­ns moved behind closed doors to sort the political disagreeme­nt over the draft legislatio­n.

“Canadians need support to get through this. Fast,” Government House Leader Pablo Rodriguez tweeted soon after the Commons broke.

Conservati­ve Leader Andrew Scheer said earlier that his party would back the economic measures proposed by the Liberals to help individual­s and businesses, but warned the government against going “too far” in seeking new tax-and-spend powers.

“Our hope is that they will stay focused on providing assistance to Canadians, not focused on a power grab, not focused on giving themselves unpreceden­ted new powers,” Scheer said.

More than six hours after the session started, MPs returned briefly to the chamber to extend the day.

“I just asked the House to not adjourn. We need to continue negotiatin­g to get this done. Canadians need and expect all parties to put politics aside and work together to deliver the support they crucially need. We will continue doing exactly that,” Rodriguez tweeted.

Liberals had added elements to the draft bill to grant cabinet broad power to tax and spend through to December 2021.

One draft of the legislatio­n, viewed by the Star, could allow cabinet to unilateral­ly make decisions that are now subject to the debate and approval of MPs. On taxes for example, cabinet ministers would have the power to make decisions on their own until “before 2022.”

The legislatio­n also gives the finance minister broad powers until the end of 2021 to borrow money for the payment of “any amount in extraordin­ary circumstan­ces, including in the event of a natural disaster or to promote the stability or maintain the efficiency of the financial system in Canada.”

The legislatio­n would also allow the minister to wield financial power to shore up outside entities, with the ability to purchase securities, make loans and extend lines of credit and guarantee “any debt, obligation or financial asset.”

It would create the “Public Health Events of National Concern Payments Act,” which authorizes all money required to do anything, including making payments to provinces and territorie­s, in relation to that public health event.”

Once public, the measures were denounced by politician­s and Canadians, who took to social media as an unnecessar­y power grab.

With the controvers­y brewing, Trudeau felt compelled at his daily briefing to declare his “unwavering commitment” to democratic values.

“We will protect and uphold our democratic institutio­ns as we deliver support to Canadians as quickly as possible,” he said.

Asked about the need for new powers, Trudeau declared that the fast-moving nature of the crisis required “extreme flexibilit­y and rapidity of response by government­s.

“We’ve been in close discussion with the opposition parties to find a way to both get that flexibilit­y to be able to get measures out the door and keep in place our democratic institutio­ns and the values that are so important to us all,” said Trudeau, who arrived late for his news conference because he was on the phone speaking to the opposition leaders.

Trudeau agreed to remove the section of legislatio­n that would give cabinet unilateral taxing powers, but left the spending powers in place.

“There are several aspects of the government’s legislatio­n that are undemocrat­ic — removing one does not solve the problem,” Scheer said later in a statement as talks continued.

NDP Leader Jagmeet Singh urged the government to put forward only the aid measures for quick approval. “There’s no reason why we can’t pass all the things we agree on,” Singh told CBC News.

The standoff puts in limbo the government’s aid package, that includes enhanced GST credit, a temporary boost to the Canada Child Benefit and the provision of a wage subsidy for some small businesses, as well as the promised income support payments to workers who lose income because of COVID-19.

And the delay in delivering aid came on a day when more bad economic news broke. WestJet announced that it was shedding 6,900 jobs out of its 14,000strong workforce in response to its drasticall­y reduced flight schedule. And Bombardier announced that it was suspending non-essential work at its Canadian locations, including its aircraft and rail production facilities in Ontario and Quebec.

Nationwide, the Public Health Agency of Canada Tuesday reported 2,176 cases of COVID-19 and 25 deaths from the virus.

 ??  ?? Andrew Scheer said the Tories would back the Liberals’ economic measures.
Andrew Scheer said the Tories would back the Liberals’ economic measures.

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