Federal agencies tripled their spending on Facebook ads last year even as Heritage Minister Mélanie Joly lamented the state of local Canadian media. Joly’s own department increased its Facebook spending seven-fold. Newspaper publishers have cited cuts to federal advertising as a threat to newsroom jobs: “The aim of our government is to improve the fate of the industry.”
Cabinet is extending federal deposit insurance to foreign currency accounts for the first time, but will not raise its $100,000 limit on protected savings in case of bank failure. Canada has the lowest deposit insurance rates of any G7 country: “I have no idea of why that makes sense.”
The Senate yesterday blocked passage of a rail bill with demands that cabinet heed shippers’ rights. The close vote marked only the fifth time since 1960 that senators insisted the Commons rewrite legislation.
“Our role as Maritime senators is firstly to look out for the interests of our provinces,” said Senator Diane Griffin (Independent-P.E.I), chair of the Senate agriculture committee; “There is no reason that just because we’re the little ones at the end of the country that we should be treated like the little kid and bullied.”
The Senate transport committee on March 27 amended Bill C-49 An Act To Amend The Canada Transportation Act to compel railways to disclose confidential cost data in arbitration, and allow for competitive Atlantic freight rates by permitting shippers to gain interswitching rights east of Québec City to the Port of Saint John. The Canadian National Railway Co. monopolizes Atlantic freight lines.
The Commons dismissed the Senate amendments May 3. However, in a surprise motion, Senator David Tkachuk (Conservative-Sask.) yesterday urged senators to reject the Commons veto. “The railroads have no competition,” said Tkachuk. Senators passed the motion by a vote of 43 to 39 amid warnings the amendments would upset railway managers.
“Everybody knows Canadian National is the only Class One railway serving destinations in the Maritimes,” said Senator Peter Harder (Ont.), Government Representative in the Senate. “Providing access to long-haul interswitching to shippers in the Maritimes must be balanced against the potential risks of the future viability of CN services in Eastern Canada, which are critical.”
“Why should Maritimers have to pay more?” said Senator Griffin; “This is fundamentally a question of respect. Why is the Maritime region the only region where the economic interests of a private company outweigh the interests of the provinces?”
On only four other occasions since 1960 has the Senate blocked passage of a Commons bill by insisting on its amendments: a 1961 tariff bill; a 1969 Pest Control Products Act; a 2003 Criminal Code amendment on cruelty to animals; and the 2006 Federal Accountability Act. Each time, cabinet either accepted the Senate amendments as final, or prorogued Parliament to kill the bill.
‘Embarrasses The Government’
“Why insist?” said Senator André Pratte (Independent-Que.). “Is it just to embarrass the government for a couple of days? I don’t think it’s worth it, really.”
“If you are willing to fight on it, then let’s fight until there’s a constitutional crisis,” said Pratte. “The regional rights, as important as they are – I don’t think they reach the threshold of creating a constitutional crisis.”
Atlantic senators including Conservatives, Liberals and Independents yesterday protested Maritime shippers were disadvantaged in being unable to contract alternative rail service east of Québec, and that all shippers were entitled to greater disclosure of railways’ actual costs.
“For as long as I can remember, Atlantic Canada has been fighting for equal treatment,” said Senator Michael Duffy (Independent-P.E.I.). “The railways want to keep the status quo.”
Shippers in testimony last February 6 appealed to the Senate transport committee to compel greater disclosure of rail costs and rates in arbitration hearings. “We are totally at their mercy when it comes to rates and it makes it difficult for our shippers to compete,” said Perry Pellerin, president of the Western Canadian Shortline Railway Association.
Senator Rosa Galvez (Independent-Que.), sponsor of the amendment to force railways to disclose costing, said the provision was crucial. “Arbitrators should have access to all relevant rail costing information that is necessary to due proper diligence,” said Galvez; “This will reassure everybody that transparency will become a reality.”
Transport Minister Marc Garneau did not comment on the Senate vote. Garneau had demanded senators pass the legislation five months ago without any revision. “We’ll never get anything accomplished,” said Garneau.
By Tom Korski 
Federal agencies have failed to report millions in spending in breach of a Treasury Board directive, says an Inquiry Of Ministry tabled in the Commons. The 2004 order requiring prompt disclosure of contract spending was made after the sponsorship scandal: “That’s real money.”
A federal tax on legal cannabis is so onerous it could drive 270,000 medical patients to buy from unlicensed drug dealers, the Commons finance committee was told yesterday. Cabinet would tax cannabis at about 15 percent: “Ethically it’s wrong.”
One of Canada’s poorest provinces yesterday appealed to the Senate social affairs committee to speed the legalization of marijuana. New Brunswick is counting on $7.2 million in revenue from cannabis sales this year: “It’s an opportunity, for sure.”
Rideau Hall blames a hapless staffer for displaying a German flag to welcome the King of Belgium on a state visit. The Office of the Secretary of the Governor General formally apologized for the gaffe, according to an Inquiry Of Ministry tabled in the Commons: “There was a mistake.”
Environment Canada yesterday acknowledged a $50 national carbon tax will not meet its 2030 greenhouse gas emission targets. John Moffet, associate assistant deputy minister, told the Commons finance committee the future tax rate is undetermined: “The federal government may change the pricing system.”
The national carbon tax will see more border city Canadians go to the U.S. for cheaper air fares, the National Airlines Council yesterday told the Senate energy committee. The Council estimated five million Canadians a year already drive to the U.S. to catch discount flights: “That’s huge.”
Senators yesterday protested a railway bill as an “egregious” precedent on privacy rights, but said they will not defeat the measure. The Transport Canada bill exempts rail workers from protections under federal privacy law: “This fight isn’t over.”
A change in the tax code for small business is “pretty sad”, the Senate national finance committee was told yesterday. The cabinet proposal would strip preferential tax rates from small operators with large savings: “This is all about government revenue.”
Federal departments and agencies spent more than $300,000 on paper calendars last year. Printers yesterday said they appreciated the business: “Calendar production has dropped considerably over the past ten years.”
A federal report predicts workplace drug use may rise with legal marijuana. A government agency recommended employers hire a lawyer before attempting any cannabis testing program: ‘The impact of legal cannabis is unknown.’
Photocopying literary works is simple theft, Atlantic Canada’s largest independent publisher yesterday told the Commons industry committee. One MP proposed consequences for educators who violate the Copyright Act: “You’d think there would be some sort of repercussions.”
Charity advocates last night appealed to a Senate panel for an overhaul of regulatory treatment of the sector. “At the moment we have an out-of-date policy framework, much of which dates from the 16th century,” said Brian Emmett, chief economist for Imagine Canada.
