employment insurance Archives - Page 3 of 3

July election on EI? Possible but quite improbable

Is there election fever in Ottawa? This seems to be the question on Parliament Hill whenever we move through the months of May and June in a minority parliament. Of course, the most fevered example was during the late months of spring in 2005 when Stephen Harper’s newly minted Conservative Party tried an assortment of creative parliamentary procedures to take down the Paul Martin government only to be upset by former Conservative leadership candidate Belinda Stronach when she crossed the floor to sit in cabinet.

But in June of 2009, months after an attempt by opposition parties to form a coalition government without vetting of the idea before the Canadian electorate and just months and a few weeks after that electorate returned Stephen Harper to power to deal with the global economic crisis, will we have yet another election?

From the MPs that I’ve spoken to, many believe that it is a real possibility with Michael Ignatieff tabling a confidence motion on Employment Insurance which will paint the NDP into a corner forcing them to support a vote of non-confidence in the government. For Jack Layton, leader of that fourth party in the House, his votes are critical to this government’s survival. Though Mr. Layton’s party is not poised to make any serious gains in an election held in the short-term any failure to deliver – in the context of an embarrassing collapse of the coalition game – will have the party grassroots looking to replace its leader. The next election will be Mr. Layton’s last if he does not perform. Mr. Layton needs more time to explain why he’s still fighting and build a real election plan. NDP executive director Brad Lavigne was in Washington last week meeting with senior Democrats to get a fix on both strategy and tactics. As for NDP confidence, they could easily save face if a number of their MPs had the flu on the day of Ignatieff’s confidence motion.

As for the leader of the Liberal Party, Mr. Ignatieff has an important objective; the man who ran second place to Stephane Dion in a leadership race doesn’t want to go into the summer looking like his leadership predecessor. You’ll recall that when Mr. Dion was leader of the party, his MPs were shamed and embarrassed as Stephen Harper rammed his legislation through while the Liberals feably sat on their hands. While Mr. Ignatieff doesn’t face a caucus revolt over inaction, he does want to appear as though he’s given the Conservatives a rough ride and his party will claim it as a victory as they go into the summer with their heads held relatively high. Strategically, going to an election in July wouldn’t be ideal for Mr. Ignatieff as a $5-6 million Conservative pre-writ ad buy defining the Liberal leader would be much more effective if the Conservative messaging is fresh in the minds of Canadians. On the other hand, despite a $50 Billion projected deficit posted by the Conservatives recently, the Canadian economy is starting to show signs of recovery. If Michael Ignatieff wants to defeat Stephen Harper in an election which which will certainly be defined upon the Conservatives’ traditionally perceived strength (taxes/economy), his advisers are likely telling him that this may be his best chance. Yet Michael Ignatieff’s only visible policy proposal on this has been EI reform.

As for the Prime Minister, he will only precipitate an election if he believes that he can orchestrate a majority win. Many observers now agree that the dissolution of parliament previous to the last election was a defensive measure by the Prime Minister as he read the global economic indicators and found himself staring into an abyss about to rattle Canadians. If we are to have an election, it will be because the Prime Minister would have allowed it; either allowed himself to fall on a Liberal confidence motion, confident on the framing on an election on EI, or because he will orchestrate a political crisis which will upend the polls. For example, polling is moot if the Prime Minister were to frame an election on cutting public subsidy for political parties with the $50 billion deficit to back him up as to why. “If an election were to be held today” is a pointless question when elections are framed, campaigns are waged and events occur to shape electoral intent during a 36 day writ campaign.

An election based upon EI is a ruse. It’s a ruse because it splits voters into two politically inequitable camps: the employed and the unemployed – the latter won’t deliver a win for Ignatieff. It’s a ruse because most Canadian voters have paid more into EI than Michael Ignatieff as the Liberal leader filed his tax returns to British exchequers and American secretaries of the treasury for thirty four years. It’s a ruse, because the man who came second to Stephane Dion is only trying to appear that he has already bested him now after just a couple months as Liberal leader. An Liberal triggered election on EI is a ruse because the Conservatives occupy an entire side of the debate, the other parties will be fighting each other to stake out their position on the issue. Finally, the Liberals need to rebuild their party. They are still only raising money at par with the NDP and of their nominations, I’ve heard that they still have about 200 spots to fill.

An election in July? A dreadful prospect for any opposition party and not ideal for the PM unless the man best positioned to set the stage can line up a major win.

Christine Elliott on fiscal policy

I had the opportunity to chat with Ontario PC leadership candidate Christine Elliott about the fiscal policy that’s earned her a few headlines over the past two weeks. Specifically, I asked about EI and her flat tax proposal. If the other candidates want to chat about specific policies they’ve outlined recently now that membership sales have cut off, please send me an email and we’ll set something up.

EI Politics

A hallmark of Michael Ignatieff so far as Liberal leader, both actual and interim, has been his penchant to transactional politics; he has so far picked his battles on small and short term policy differences rather that outlining a long-term plan. At the Liberal convention which concluded yesterday in Vancouver, Ignatieff did not spell out his demands, policy outlook or election warnings to the government in his convention speech, he felt that such minor details would be more appropriate for a press conference proceeding the event. Despite his insistence that he will be a transformative visionary leader that is looking forward to shaping Canada over the next eight years through 2017, it is not too credible when Ignatieff’s Canadian hindsight only extends back just five. The latest election threat (but not necessarily an election) is his insistence that the Prime Minister look at EI reform to temporarily extend benefits to workers who have worked 360 hours and to harmonize standards for EI benefits across jurisdictions.

The history of EI in this country has been quite tumultuous for parties that have manipulated it, back to RB Bennett who proposed it, to Trudeau who vastly expanded it to Mulroney and Chretien who subsequently slashed it to Martin who allowed EI surpluses to balloon under his watch. Ironically, it was Chretien in 1995 that changed the standards of EI payments to reflect local unemployment rates breaking down benefits by region. Though all of Canadians pay into EI, the benefits distributed are dependent upon local employment rates. Thus, EI is sort of like equalization but for jobs.

“It seems unfair to Canadians that if you pay into the thing, your eligibility depends on where you live. We think 360 (hours) is roughly where we ought to be.” — Michael Ignatieff

Now Mr. Ignatieff is proposing that we do away with regional differences and temporarily make EI more generous. An election threat from Ignatieff does not ring in the ears of the Prime Minister today after the Liberal leader put the screws to the Liberal senate to pass the Conservative budget just months ago — a budget, which among other things, included a global five-week extension of EI benefits despite region.

What Mr. Ignatieff may instead be attempting is to wrestle an easy “concession” from the Conservative government in order to show that he intends on making Parliament work while boasting that he will decide the timing of its dissolution. EI may indeed be an important policy issue for the Liberal leader to champion as for deregionalizing the program would be beneficial for Ontario, a province that disproportionately pays into it for the benefits received. As Ignatieff is looking to regain Ontario seats lost under the wayward leadership of Stephane Dion, the new Liberal leader may figure that he can shore up his Ontario base and challenge Stephen Harper where the Conservative Prime Minister needs to grow.

Yet today, a spoiler appeared on the scene. Ontario PC leadership candidate Christine Elliott and wife of federal finance minister Jim Flaherty also declared that the EI program was ineffective and unfair for Ontario. Elliott proposed reforming the program to benefit a fairer proportion of out-of-work Ontarians considering the number of the province’s residents pay into it. If EI cannot be reformed, Elliott suggests, Ontario should opt-out of the program. Does this signal a tag-team effort by federal and provincial Conservative forces to deflate Ignatieff’s election threat? Christine Elliott may be serving as a safety valve to deflate Ignatieff by suggesting that a friendly to the Conservative government is advocating a similar position. If a June election is contingent upon EI reform for Ontario, Elliott may be providing the Conservatives cover should they move forward with reform and it would have the added benefit of splitting credit from Ignatieff.