New worldclass laboratory to be included in the federal budget?

In 2008, I had the opportunity to tour the level 4 laboratory in Winnipeg Manitoba with my boss Preston Manning.  In my day job, I am the science policy and communications adviser for the Manning Centre for Building Democracy and part of our mandate at the Centre is to track policy initiatives that move Canada forward on the science, technology and innovation front.

During our visit, we were briefed on the national integrated network of research facilities and the technology which innervates it all to rapidly respond to biological hotspots as they emerge in Canada and around the world.  For example, rapid genotyping of pathogens to trace origin and spread is but one function of tracking function of the national lab in Winnipeg.  Communication is critical to rapid assessment and control of biological threats and we were treated to a glimpse of where outbreaks are monitored in the state-of-the-art “war-room” of the facility complete with banks of LCD televisions, situation desks and and digital maps with epidemiological data overlays.  While the facility serves to track and address global infectious disease, the research of level four biosafety pathogens such as the Marburg and Ebola viruses are at the foundation of the facility’s work.

Recently, I learned that the International Centre for Infectious Diseases and the University of Manitoba among others have forwarded an ambitious proposal for the upcoming federal budget which is getting a lot of buzz in the corridors of power in Ottawa.  A level 5 laboratory (L5L) has been proposed for the Winnipeg facility and such an infrastructure development would make it the facility the only one of its kind in the world.  The facility would continue to study biosafety level 4 pathogens but would do so in a sophisticated and unparalleled environment which would include a realistic hospital-like training facility, simulation facilities and a containment hospital ward replete with multiple airlocks.

Of course, Marburg and Ebola are of periodic global concern.  From a Canadian public policy perspective, the greatest sustained value of the facility would be tracking, research and containment of hospital acquired infections such as C. difficile, Methicillin-resistant Staphylococcus aureus and Vancomycin-resistant enterococcus.  Hospital patients that acquire surgical infections find their survivability halved.

The proponents of the new facility project a 20% reduction in cases of hospital acquired infections by 2019.  They suggest that over 30 years of innovation and subsequent intervention accomplished through work at the facility, over $40 billion (healthcare costs and would-be lost wages) would be saved.

I know that this proposal has been presented to the ministers of industry, health, transport (infrastructure) and the minister of state for science and technology.  It has been well-received by many of them and I know that the proposal is being seriously considered.  If the budget this month is to include significant infrastructure development, such a world-class project would solidify Canada’s position as a leader in the research and treatment of infectious disease.  The $300 million facility would create highly skilled jobs, retain high value workers in Canada, export skills training to the US and overseas, provide testing facilities for commericial research and products and provide extensive support for the health services sector.

Jim Flaherty at the Fraser Institute

Last night, supporters of the Fraser Institute gathered in the Adam hall of the Chateau Laurier to listen to federal finance minister Jim Flaherty deliver an assessment of the Canadian and global economies. On Thursday, the minister will be delivering a sobering fall economic update in the House of Commons and last night, we got a hint of what might be to come.

Flaherty was introduced by former Ontario PC Premier Mike Harris, the finance minister’s former boss and mentor. Harris disappointed the crowd saying that he was not about to return to politics but that a deep-rooted fixation on Canada’s future prosperity is one that both he and Preston Manning hold. Manning and Harris are the authors of Canada: Strong & Free, a six-volume set of books describing Canada’s ideal path along internationalism, economic freedom, federalism, and education among other topics. Last night’s dinner was held to mark the release of their sixth summary volume called Vision.

In minister Flaherty’s speech, he described Canada’s position in a rapid yet sustained decline of the global economy and while trumpeting Canada’s economic leadership among G7 nations, we are simply the country that is sinking the slowest. Indeed, at a recent meeting of the G20 finance ministers, Mr. Flaherty revealed that not one minister was optimistic about their economies domestic or international. Flaherty will project a surplus through the end of this fiscal year ending April 2009, however, as he conceded the next fiscal year will present “a challenge”. The minister sketched a fiscal portrait in broad strokes declaring that the crisis will not end tomorrow, next week or in the next few months and warned that we have not yet seen the worst of the situation.

Yet despite its faltering position, Canada is an economic leader among its economic peers. Flaherty described the economic measures implemented by the federal government to prepare for such an eventuality saying that they’d never apologize or regret cutting the taxes of Canadians or bringing in more stringent regulatory frameworks to maintain Canada’s economic structure. Indeed, the IMF, as Flaherty noted declared Canada to be the best economic shape going into the global economic downturn.

In the United States, President-elect Barack Obama has conceded that he will delay the rollback of the Bush tax-cuts and in Canada, Flaherty suggests that this Conservative government will maintain Canadian tax-cuts to retain this increased spending power among Canadian consumers.

Perhaps the worst-kept secret in Ottawa is that this government will project a deficit in the near future. Flaherty has declared that he will sing from the same songsheet as other national government and use the federal treasury to stimulate growth, or rather stem the “negative growth”. For this, infrastructure minister John Baird will become a hero of sorts in Ontario as federal dollars are channeled through on road, rail and other contruction projects sustaining jobs. Prime Minister Harper days earlier declared that some deficits provide opportunity and are necessary. Flaherty promised that the stimulus would be underway by March 2009. The pairing of the temporary and artificial sustenance of Canadian jobs via government spending with the consumer spending power of a less-tax-burdened population may help the good ship Canada weather the global economic storm until it subsides. Or at least the theory goes.

Deficit spending will be accomplished in order to sustain the “real” economy. Flaherty promised no ‘structural’ deficit.

For my part I asked the minister during the dinner about conservative opportunity describing this as a time when Conservatives in power could be allowed to make cuts to government spending and suggested that a reduction in the size of government rather than its growth would help balance the books in a real rather than artificial way. The finance minister unfortunately balked at the question suggesting that some areas of growth are necessary such as the rescue of the state of the armed forces. If given a follow-up, I would have suggested that some cuts are necessary too. Even in a recession, the government is a growth industry. The minister described a treasury board review of all programs to measure value for money and promised to extend this review through both core and non-core assets.

As for the public sector, wages will not increase faster than the private sector. This has caused some concern among public sector employees and the minister reached a deal with PSAC, it’s largest union late yesterday. The two parties have settled on a wage increase of 6.8% over the next four years.

On interprovincial trade barriers, the minister promised to break these down and suggested that the current economic climate behooves governments to allow uninhibited trade within Canada. The minister welcomed a cooperative spirit among provincial and territorial ministers on addresses the economic downturn domestically.

The minister declared that the government would not artificially engineer a surplus. Perhaps this is a reflection by the minister on Paul Martin’s method of balancing budgets by slashing transfers to the provinces and “fixing” healthcare for a generation. Ontario has warned Ottawa not to balance its books on the back of the province and what is needed is economic stimulus in the province through reduction of its corporate tax rate. For the part of the Conservative federal government, Flaherty described a $37B debt reduction, a reduction of the tax burden by $200B and a 2012 projected corporate tax rate of 15%.

On securities regulations, the minister promised the creation of a single national securities regulator. The federal government will seek to regulate leverage and large pools of capital. A more transparent market infrastructure is needed according to Mr. Flaherty.

The sum of Flaherty’s speech was to say that this government is acting to sustain economic activity for the foreseeable future as economies around the world reconfigure to recover. Taxes will remain low, spending is temporary and a deficit would be a temporary and an short aberration from Canada’s economic plan.

Obama sets example for Canada

The election of Barack Obama is historic in many ways, most significantly in the progression along the troubled history of race in the United States. On Tuesday, Americans turned out in record numbers to give Obama a decisive win and vault the first African-American into the highest office in that country. The Obama team also set new records along the fundraising front and may indeed set a precedent for the financing of elections in the future.

According to opensecrets.org, a website on money in politics run by the Centre for Responsive Politics, Senator Obama raised $639 million during the 2008 Presidential election cycle with 91% of that sum coming from individual donations. Comparatively, Senator McCain raised $360 million, 54% coming from the same type; the majority of the dollars from each candidate’s campaign came from people making personal donations to their favourite candidate. A striking difference between campaigns was Obama’s refusal of public funding. The Illinois senator took $0 of public financing while his Republican counterpart from Arizona took over $84 million to make up 23% of his campaign’s spending power.

We didn’t start with much money or many endorsements. Our campaign was not hatched in the halls of Washington – it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation’s apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory. — President-elect Barack Obama, Chicago November 4th, 2008

In Canada, the Reform Party under Preston Manning started a tradition of passing the hat in church basements and legion halls during rallies, speeches or simple administrative meetings. A donation of $5, $20 or $100 was passed on to bring change to Ottawa. The tradition continues today under Prime Minister Stephen Harper’s Conservative Party, though in a much more sophisticated way and one that is buoyed by databases and telemarketing. Conservatives have historically raised an average individual donation of about $100 while Liberals used to depend on fewer but larger sums. Jean Chretien –perhaps to kneecap his long-coveting Prime Ministerial successor — changed the way election financing was done in Canada by banning corporate and union donations. Chretien replaced the private financing of political parties by special interests with public financing by government. For each vote that a party earns during an election, that party receives $1.75 per year from the federal treasury.

On the surface, this reconfiguration of campaign financing seems to rebalance the funding equation from powerful institutions to those that ought to have the first and last word in any democracy. Indeed, voters are empowered not only when they give campaigns their vote but also when they do so with the knowledge that instead of corporate or union backing, there is a small financial sum that comes with each ballot cast that sustains parties instead. However, while Chretien’s system solves one problem, it creates another.

In Quebec where a province defaults to the inert rather than the principled, a problem exists with Chretien’s model of campaign financing. The Bloc Quebecois, doing all it could to supress its core principle of sovereignty for that province, rather stood against — indeed, as a block to — Conservative ideas in the 2008 general election and against Liberal corruption in 2006. In the first half of this year, the Bloc raised just over $70,000 but received $1.5 million in public financing. Donations are a result of direct support whereas that larger windfall comes from standing against something rather than offering something better. The Bloc Quebecois would not exist if it had to rely upon direct non-governmental financing from supporters.

This summer, I met a member of the Obama campaign’s senior staff in New York City. Discussing the presidential campaign and some Canadian politics, I was told that the Liberal Party had approached the Obama campaign to attain some insight into their fundraising capacity and to create a similar system in Canada so that a large number of small donors could fill their campaign war chest. The staffer told me that after initial discussions, the Liberal Party never followed up in any significant way.

A tried-and-true election strategy for the Liberal Party has been to strike fear into the electorate about what a Conservative administration might mean for Canada. In the last election we were warned that a Conservative majority would allow Harper to finally implement his hidden agenda. Yet the Conservatives in power have not been innocent of taking this lower path either. Defining Stephane Dion as a weak leader and scaring the electorate as to what his “tax on everything” would mean to the economy took a negative track and suggested people vote against, rather than for the Conservatives. People are goaded out of fear to vote against and they often hold their nose for the not-as-offensive choice they end up “supporting”. Since money comes from support, we should break the model that rewards false support and strengthen one that challenges parties to offer ideas rather than fear. Government subsidization of political parties hurts Canadian politics.

The motto of Barack Obama’s campaign for President was “Yes We Can”. Under the current Canadian system, we give welfare to parties for being best able to convince Canadians of the other parties, “No They Can’t”. If we made politics about the positive (Yes), responsibility of self (We) and enablement (Can) rather than the negative (No), what one’s opponent would do (They) and a need to stop them (Can’t), perhaps we could reduce voter apathy both at the ballot box and when parties pass the hat. If we gave voters more power to finance those they support rather than sustain those they least detest we could shift Canadian politics for the better.

On Tuesday, American politics changed. It is time to end campaign welfare so that we can replace politics that scares with that which inspires.

Yes we can.