Hello, welcome to Politics Insider. Let’s look at what happened today.
The interim Parliamentary Budget Officer released a report today that includes strong criticism of the federal government’s 2025 budget, saying it uses an overly broad definition of capital spending and includes fiscal targets that are unlikely to be met.
Bill Curry reports that one key element of the Nov. 4 budget was a new financial presentation that divides all spending into either operational or capital spending.
The government said this illustrates how it is delivering on Prime Minister Mark Carney’s campaign pledge to “spend less” on day-to-day items in order to “invest more” in capital spending that produces long-term economic benefits.
Ottawa has said this approach is modelled on similar moves by the United Kingdom and other countries.
It said in the budget that it would balance the operating budget within three years. This, along with shrinking the ratio of the deficit to gross domestic product over the next few years, would be the government’s two fiscal anchors.
However, Jason Jacques, the interim PBO, said in a budget assessment report that the budget categorizes some spending – such as corporate and investment tax credits – as capital, even though that would not be allowed under the U.K.’s rules.
The report says Ottawa should establish an independent expert body to determine which types of spending should be defined as capital.
By the PBO’s own definition of capital and operating spending, the operating budget would not be balanced over the next few years.
In other news, the Ontario Provincial Police’s anti-rackets branch is looking into a company that has received more than $40-million from the provincial government, in order to determine whether to launch a criminal investigation.
Laura Stone and Jeff Gray report that the force confirmed today that the government had referred “suspicious activity” related to transfer payments to the company, an online counselling platform called Get A-Head.
Gosia Puzio, a spokesperson for the OPP, said the force was contacted on Nov. 6 by the Treasury Board Secretariat’s forensic investigations team, which was concerned about transfer payments to Get A-Head from the Ministry of Colleges, Universities, Research Excellence and Security.
Interim Parliamentary Budget Officer Jason Jacques prepares to appear before a standing committee, on Parliament Hill in September.Justin Tang/The Canadian Press
What else is going on
Eby hopes for `healthy majority’ in NDP convention: B.C. New Democrats will be voting this weekend on the leadership of Premier David Eby, who is hoping for another “healthy majority” after receiving 93-per-cent support in a similar vote two years ago.
Saab CEO confirms talks on fighter jet production in Canada: Micael Johansson says his company is talking to the federal government and Bombardier Inc. about building Saab’s Gripen fighter jet under licence in Canada, an initiative that could create 10,000 jobs in the country.
These are Carney’s new major projects: The second round of infrastructure plans includes long-term bets on energy and critical minerals considered vital to future trade and industrial needs. There’s an explainer here on the projects.
Smith expects signing soon of grand agreement with Ottawa: Alberta Premier Danielle Smith says the deal will address federal regulations she has said hamper private-sector investment in the energy industry.
Murderer’s appearance at judge’s panel prompts controversy: Some attendees at the Ontario Court of Justice gathering regarding the treatment of inmates and conditions behind bars are complaining about the participation of a man convicted of first-degree murder in the killing of a Crown witness.
G7 ministers to collaborate on Lai case: British Foreign Secretary Yvette Cooper raised the plight of jailed Hong Kong publisher Jimmy Lai at the G7 foreign ministers’ summit this week, with the powerful group of countries agreeing to collaborate on his case.
Political lives, Tony Merchant: One of Canada’s best-known and arguably most controversial lawyers, Merchant was a politician, radio host and pugnacious litigator who filed reams of class-action lawsuits. He died in Regina of cancer, aged 81.
On our radar
Commons break: The House of Commons has been on a break this week, with MPs returning Monday. The Senate is also on a break. Sittings there will resume Tuesday.
Prime Minister’s day: Mark Carney rode the first train of the new branch of Montreal’s REM light rail network to the suburban municipality of Deux-Montagnes. Once there, he delivered remarks on public transportation and local infrastructure. In the early afternoon, he delivered remarks and participated in a conversation on the budget with members of the Chamber of Commerce of Metropolitan Montréal.
Party leaders: No schedules released for party leaders.
Ministers on the Road: Industry Minister Mélanie Joly is speaking to the Surrey & White Rock Board of Trade in British Columbia. Transport Minister Steven MacKinnon is touring the port of Trois-Rivières today and talking about the budget.
GG out of hospital: Governor-General Mary Simon has been released from hospital and is recovering at home, her office says. Simon was hospitalized with a respiratory virus and missed this week’s national Remembrance Day ceremony in Ottawa. Richard Wagner, the chief justice of the Supreme Court of Canada, filled in for Simon at the ceremony and will represent her next week during the state visit of Their Majesties King Carl XVI Gustaf and Queen Silvia of Sweden. A statement from Simon’s office said she will resume her duties in “due course.”
Premiers’ meeting: Premiers and territorial leaders will be meeting virtually with Mark Carney on Monday. The premiers are looking to discuss topics such as the need for “adequate, flexible” federal infrastructure investment and the state of relations and talks with the United States, according to a letter posted online by Prince Edward Island Premier Rob Lantz, chair of the Council of the Federation.
Quote of the day
“His hair is impeccable. He’s a hard worker. He loves his family.” - Prime Minister Mark Carney, in a newly posted Toronto Life magazine interview, responds to a question on three things he admires about federal Conservative Leader Pierre Poilievre.
Question period
Today is the 77th birthday of King Charles. Who became prime minister of Canada the day after Charles was born?
Scroll to the bottom of this newsletter for the answer.
Perspectives
Canada and China can achieve a win-win situation
China is willing to maintain high-level exchanges with Canada, deepen mutual trust, strengthen mutual understanding and resume co-operation and exchanges in various areas to jointly safeguard the political foundation of bilateral relations.
— Wang Di is China’s ambassador to Canada.
Backbench MPs are expected to use their brains or their mouths, but not both
The independent thought alarm went off in the Liberal universe again, and of course, the culprit was Ontario MP Nathaniel Erskine-Smith. The MP for Beaches-East York has made a habit of using both his brain and his mouth since he entered politics a decade ago, which is a combination that will earn any MP a permanent seat on the backbench (though Mr. Erskine-Smith did enjoy a brief stint as housing minister in the final and desperate months of the Justin Trudeau government).
— Robyn Urback, Columnist
François Legault’s battle with Quebec doctors could be his last fight
That Mr. Legault waited until late into his second mandate to tackle the politically thorny issue of doctors’ pay, rather than at the height of his popularity a few years ago, has not helped his cause – no matter how laudable that cause is.
— Konrad Yakabuski, Columnist
Go deeper
- The Decibel: Adam Radwanski, feature writer and policy columnist for The Globe, joins The Decibel podcast to talk about Mark Carney’s strategy on major projects.
- Follow along for our stories on Canada-U.S. relations as news develops
- Get the latest insight and analysis from our political opinion writers
- Take a look at the history of immigration reporting and great political scandals from A Nation’s Paper, a book about The Globe and Mail’s role in Canadian history
Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.
The answer to today’s question: Charles was born on Nov. 14, 1948. On Nov. 15, Louis St. Laurent was sworn in as Canada’s 12th prime minister, succeeding MacKenzie King. St. Laurent served as prime minister until 1957.