In and Outright Hypocrisy?

The Liberals have been trying to make gains from the so-called “In and Out scandal” in which they allege impropriety in the transfers of money from local Conservative election campaigns to the federal campaign for the purposes of funding national advertising.

Transfers of money from local to federal campaigns is of course legal as all parties do this (there is even a category for it on Elections Canada returns that all candidates, EDAs and political parties must file). Indeed, the Conservatives and the Liberals have a different tradition here: The Conservatives send their EDAs 10% of all the money the national party raises, and the Liberals tax their EDAs 40 some percent of their candidate’s Elections Canada refund. However, it is the channeling of local cash to the federal party to pay for advertising where the Liberals see red in the Tories’ blue campaign.

One of the most vocal critics of this alleged scheme has been Liberal MP Marlene Jennings of Notre-Dame-de-Grâce–Lachine. Here is a quote of hers from the House of Commons:

Mr. Speaker, the in-and-out financing scandal implicates at least six Conservative ministers, like the public safety minister and the foreign affairs minister. Their response? Dead silence.

The member for West Vancouver–Sunshine Coast–Sea to Sky Country [Blair Wilson] did the right thing. At the very first hint of any questions about his campaign he stepped aside so he could clear his name.

The independent investigation into the Conservative scheme has not been completed. Will the government demonstrate true leadership and demand resignations from its six ministers?

Let’s take a closer look at Jennings’ 2004 and 2006 Elections Canada filing:


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and 2006:


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Jennings’ 2004 election return shows a $300 expense for advertising paid to the Liberal Party of Canada and a $1500 expense for the same paid to “The Federal Liberal Agency of Canada”. The 2006 return shows a $11,206.86 expense for advertising paid to the Quebec wing of the federal Liberal Party.

The Liberals have alleged impropriety in the Conservative practice of transferring money from local campaigns to federal campaign for use by the federal campaign for “advertising”. Here, we see Jennings transferring sums of money to both the federal party and Quebec wing of the federal party for “advertising”. What sort of advertising services did the LPOC and LPOC(Q) provide for Ms. Jennings? It should be noted that Jennings also declared expenses that her campaign paid to her riding association for advertising, so what of these similar expenses paid to national HQ? Did Jennings pay the party to produce Marlene Jennings specific advertising, Quebec regional advertising or national advertising? What is the difference between each of the three if they were paid for by the official agent for Marlene Jennings?

When you look at other Quebec campaigns it appears that more than a few Quebec Liberal candidates including Stephane Dion bought about $11,000 or $4,900 of advertising from the Liberal Party of Canada in Quebec.

Is the LPOC an ad-agency or did they purchase advertising for their candidates like the Conservatives bought for their Candidates?

Of course, in my opinion, no laws have been broken here and if this shows that the Liberals were also involved in a so-called (by them) “In and Out scheme” the only things they are guilty of is hypocrisy.

Furthermore, why was this practice given a green light in the past for the Liberals by Elections Canada when it now raises questions by the federal agency. Are not all parties equal under the law?

New Cabinet

The cabinet has been shuffled.

Solberg is at Rideau Hall to accompany his good friend Chuck Strahl. Monte will not be getting a new portfolio. He will remain in HRSDC.

Monte’s pal Strahl goes to Indian Affairs. A good upgrade especially as a BC minister.

MacKay goes to defense and keeps ACOA. The higher visibility should help the Tories regain some ground in Atlantic Canada.

O’Connor to revenue. As the most obvious prediction of a portfolio change, some thought O’Connor would go to Veterens Affairs. The former defense minister now goes to a largely administrative portfolio.

Oda to international cooperation. Oda replaces Josee Verner in this portfolio. Some say she was a poor communicator in Heritage, lacking the ability to speak French, she now takes over the CIDA portfolio.

Jim Prentice goes to Industry taking over for Maxime Bernier. Prentice is said to be the hardest working minister in Harper’s cabinet and will bring his work ethic to this new portfolio.

Maxime Bernier is tapped for foreign affairs. Such a move will have both the effect of raising Bernier’s portfolio and gives Quebec a minister in a more elite department. Further, as Quebec’s Van Doos soldiers are in Afghanistan, having a good communicator in this portfolio from the province.

Josee Verner to Canadian Heritage/Women/Languages. An Oda/Vernier swap. Vernier gets promoted and Oda demoted. Verner will be well positioned to celebrate Quebec City’s 400th anniversary.

Gerry Ritz to Agriculture/Wheat Board. A promotion for the Saskatchewan MP was pretty much assured when fellow Saskatchewan MP Skelton announced her retirement. Skelton being that province’s sole representation in cabinet, her resignation created an opening for a Saskatchewan MP. I’ve heard that Ritz will press forward on market choice and fight against the Wheat Board.

And, Diane Ablonczy finally gets her due as Secretary of State for Small Business and Tourism…

…which puts a wee blotch on my cabinet prediction! I predicted that no backbencher would be promoted to cabinet. Perhaps this was an 11th hour decision?

But, as I predicted, nobody lost their job and it was a significant shuffle. Cabinet did not grow in size. Also, as predicted, Day and Baird stay in their portfolios.

Further, Bernier was shuffled, but not to defense nor finance as some predicted.

So, is this Canada’s New New Government? What are your thoughts? Does this put a new face on the Conservative government? Cheers, Jeers? Did Harper make a good shuffle today? The Globe reported that Harper would be decreasing the size of cabinet in order to prepare for an election. However, the usual knowledge is that cabinet in fact grows prior to an election to promote seats and as many faces as possible.

The Prime Minister is likely to prorogue Parliament and go ahead with a throne speech this fall. This shuffle is also timed to give ministers enough time to process their MCs and move forward before the fall. The PM will also draw thoughts from his new ministers for the expected throne speech.

Cabinet Speculation*

Ottawa is abuzz with cabinet speculation this week as the summer starts to wind down and there’s no election in sight. Between elections, I’m told, the parliamentary press gallery’s second favourite fix is speculating how the front bench of the government will change. Since the days are hot, and while filing stories about the arctic might cool some off it is still viewed as playing into the man’s hands, and since there are only so many grumble pieces that can be written, cabinet speculation will have to do.

I’ve been chatting with a few friends and sources about the topic and here’s what I’ve deciphered with a high level of confidence.

Ottawa staffers can breathe a bit of relief (just a bit though) because while Carol Skelton is retiring from politics, no other cabinet minister will be shuffled out of cabinet. There will be promotions and demotions within the cabinet structure, but no current cabinet minister will find themselves without a chauffeured car next week. Thus, contrary to some reports, Oda will remain in cabinet.

On the flipside, no back-bencher is to be promoted to cabinet this time around.

Therefore, besides Skelton, the cabinet will neither grow nor shrink.

The shuffle within cabinet itself will be substantial enough that it’ll make a few headlines. I previously speculated (but didn’t write) that a shuffle could be quite surgical and we’d see a trading of two or three portfolios without making other waves, but now I’m hearing that there will be more than a few ministers with new titles. The government might say that such a switch affords new experience to already very capable ministers. Most of us might acknowledge this while recognizing that some fine tuning is due.

Specifically, Maxime Bernier may be shuffled out of Industry (not entirely sure about this) but I can say with certainty that he will not be shuffled into defence or finance.

Security minister Stockwell Day will stay in his current portfolio as most Hill people (including press) have found him to be very capable in his current role.

John Baird is also staying in environment.

I can also say with a certain degree of confidence that there will be a throne speech this fall and that the government is not likely to be shocking the country’s system with a brand new set of priorities as there is a lot of the current agenda that still needs attention.