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Opinion

Red Deer – Lacombe MP Blaine Calkins calls on Prime Minister Justin Trudeau to resign

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14 minute read

What We Know About Trudeau’s Latest Ethics Scandal

BLAINE CALKINS

 

Over the past several weeks Canadians have been shocked at the details coming to light regarding Justin Trudeau’s WE Scandal. Justin Trudeau and the Kielburgers have been happy to benefit from each other for years. While they are quick to downplay their relationship, the facts tell a different story. According to WE Charity, Justin Trudeau and his family have participated in over 50 WE Events where they have been able to share their political message with young Canadians.

In 2017 WE created a campaign style ad featuring Justin Trudeau for Canada 150 and even pressured employees to go to a political event for the Minister of Finance in his Toronto riding. The Kielburger brothers have donated to the Liberal Party in the past, and under the Trudeau government WE has received upwards of $5.5 million in government funding.

This reciprocal relationship is concerning all on its own, before even considering the current scandal regarding the Canada Student Service Grant, Justin Trudeau and WE. The twists and turns in the story can be difficult to track, but it is clear that Justin Trudeau and former Finance Minister Bill Morneau have once again failed to live up to their legal obligations laid out in Canada’s conflict of interest laws. Here is what we know so far.

In April, WE sent an unsolicited proposal for a youth entrepreneurship program to Minister Chagger and Minister Ng. Ten days later WE received a call from Rachel Wernick, a senior bureaucrat with Employment and Social Development Canada (ESDC) about the yet to be announced Canada Student Service Grant (CSSG). When the program was announced to the public a few days later WE co-founder Craig Kielburger sent Ms. Wernick a proposal to administer the grant that same day.

According to the Kielburgers someone at the Prime Minister’s Office (PMO) contacted them the next day about delivering the program, which they later recanted claiming it was a public servant who contacted them. Ms. Wernick is credited as being the public servant who recommended that WE was the only organization that could deliver the program.

 

On June 25th WE Charity was announced as the partner for the $900 million CSSG program, and Canadians were told they would receive $19.5 million to administer it. When asked, Trudeau suggested there was no conflict of interest because he and his wife had never been paid by the organization. A few days later Conservatives asked the Auditor General to probe the deal since parliamentary oversight was hindered by the program being outsourced, and due to concern over the well documented relationship between Trudeau and the Kielburgers.

 

By July 3rd Mark and Craig Kielburger announced that WE would be giving up the contract to administer the CSSG. On the same day, the Ethics Commissioner confirmed that he would be starting an investigation into Justin Trudeau for the third time. Less than a week later WE confirmed that the Prime Minister’s Mother, Margaret Trudeau had been paid $312,000 for 28 appearances since 2016 and that his brother, Alexandre Trudeau, was paid $40,000 for 8 events in 2017-2018. They also acknowledged that the Prime Minister’s wife, Sophie Gregoire Trudeau had received $1,400 for an appearance in 2012.

We later found out that on top of those fees WE Charity also paid an additional $212,846 in expenses between the three members of the Trudeau family. This brings the total remuneration to over $566,000. This revelation, in part, led to the Conservatives writing to the Commissioner of the RCMP to request that they look into this matter as it pertains to potential criminal code violations.

 

The Prime Minister isn’t the only one with an apparent conflict of interest in this matter, with former Minister Morneau also having close family ties with WE. Like the Prime Minister, he did not recuse himself despite the fact that his one daughter works for WE and another has been a speaker in the past and received a book endorsement. This led to the Ethics Commissioner launching an investigation into former Minister Morneau as well.

At an appearance before the Finance Committee former Minister Morneau would later go on to acknowledge that he and his wife had recently made two large donations, roughly $50,0000 each, and that he had also just written a cheque for over $41,000 to reimburse WE for expenses he and his family incurred on two vacations to Africa and South America, where they visited WE projects. WE later confirmed that the complementary trip was offered to former Minister Morneau and his family because of their history of significant donations to similar programs. These revelations led to the Conservative caucus calling for the now former Minister to resign.

 

The Finance Committee and the Ethics Committee began to look into this latest scandal, and the testimony and information they have received has painted a confusing and troubling picture. They uncovered a number of very concerning details before the Prime Minister prorogued Parliament in order to shut down the committees.

· WE stood to collect $45.53 million in fees, over double what was initially stated.

· The program, originally announced at over $900 million, was actually contracted out at $544 million instead. Why the discrepancy?

· The Clerk of the Privy Council stated that there were no red flags when considering WE, but that the Public Service didn’t probe the organizations finances. This is quite odd.

· The President of the Public Service Alliance disputed that only WE could have delivered the CSSG, stating that to say the Public Service was unable to was insulting. He pointed to the various government grant programs, Canada Summer Jobs and the Canada Service Corps as comparable programs. The theory that only WE could handle the program was further dismantled when it turned out that they had to subcontract part of the program because they weren’t able to deliver it in French.

· The contract for the CSSG wasn’t actually with WE Charity, but with WE Charity Foundation, a shell foundation that had no previous experience in delivering these types of programs.

· The former Chair of the Board at WE Charity testified that she had been forced to resign by Craig Kielburger for requesting financial documents from WE Executives to justify the layoff of hundreds of employees.

· The Kielburger brothers testified, claiming that they were running the program as a favour to Canada, and that their organization was to be reimbursed for expenses, but not make money off of the program. In a leaked document, a draft budget dated May 4th outlined some expenses including for staff salary. This included 175 program managers at $30,0000 each for 4.5 months work, ten supervisors at $45,000 each for 5.5months work, five group leaders at $70,000 each for 6 months work, and two project leaders for $125,000 for eight months work.

· WE Charity started to incur eligible expenses on May 5th, despite Cabinet not approving the program until May 22nd. This was being done with the full knowledge of ESDC, and allegedly at the financial liability of WE.

· Trudeau testified that he only found out about WE’s involvement on May 8th, shortly before it was set to be discussed at Cabinet. He claims that he removed it from the agenda and asked the public service to complete additional due diligence given his family connection to WE. He did not contact the Ethics Commissioner despite the concerns. This additional due diligence did not unearth any of the problems disclosed by the former Chair of the Board. It is noteworthy that no Minister, prior to the Prime Minister making his claim, had a story that would corroborate this feeble explanation.

 

The Prime Minister’s Chief of Staff confirmed that a handful of employees in PMO were aware of WE’s involvement and had interactions with the organization in the lead up to the approval. This included an interaction on May 5th, the day WE started incurring eligible expenses. So far, every time someone has come forward to try and explain away the Liberal’s latest mess, Canadians are left with more questions than when they started. Canadians deserve answers, and my Conservative colleagues and I are committed to finding them using every tool at our disposal.

While the studies at committee may have been temporarily halted by Trudeau’s prorogation Conservatives will continue to investigate this matter, and pursue every whiff of corruption like when we called on the Elections Commissioner to look into the political benefits that the Liberals have been given by WE. While the Prime Minister may be attempting to prevent Canadians from knowing the truth, Members of the Finance committee received thousands of heavily redacted documents from the Liberal government on the same day that Trudeau prorogued Parliament. They paint a very different picture of how WE came to be selected for this program than the one that the Liberals have offered up.

These documents suggest that the Minister of Diversity and Inclusion and Youth told WE to develop a proposal for a summer service opportunity before the CSSG was even announced. They go on to claim that the former Minister of Finance was “besties” with WE and that senior members of the Prime Minister’s office were involved in the development of the program and were having conversations with WE from an early stage. You can see these documents for yourself at wedocuments.ca.

 

The timeline of Mr. Trudeau’s version of events simply doesn’t add up. The CSSG was announced on April 22nd. A member of PMO spoke with WE about their proposal on May 5th, the same day they started to charge expenses for administering the program, but Cabinet wouldn’t approve the program for two and a half weeks.

Why was a charity that had to recently lay off hundreds of employees due to financial hardship related to COVID-19 so willing to accept the liability of starting the program without approval? Why were they so sure they would be approved? Why were they told they could start charging expenses before approval?

To answer that, you only need to look at the cozy relationship between Justin Trudeau, former Minister of Finance, Bill Morneau, the Liberal Party and WE. Now that the former Minister Bill Morneau has resigned and more than 5000 pages of documents have been released for review, Canadians are hungrier for that truth than ever before. The Liberals are banking on Canadians forgetting about this scandal during their prorogation and hoping that they can change the channel later this month with a new Throne Speech, but it isn’t going to work. Despite prorogation and all of the confusion and misdirection, one thing is absolutely clear – Justin Trudeau must resign for his part in this scandal.

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Economy

The 15-Minute City: An extraordinarily bad idea

Published on

From the Frontier Centre for Public Policy

By Randal O’Toole

” the average resident of the New York urban area—the closest thing to a 15-minute city in the U.S. or Canada—can reach at least 21 times as many jobs in a 20-minute auto drive as in a 20-minute walk. The same will be true of other economic opportunities.  “

The latest urban planning fad to sweep across Canada is the 15-minute city, which proposes to redesign cities so that all urban residents live within an easy, 15-minute walk of schools, retailers, restaurants, entertainment, and other essentials of modern life. This is supposed to simultaneously reduce greenhouse gas emissions while it increases our quality of life.

Some think it is a conspiracy. Others insist it is not. Conspiracy or not, the only way to have true 15-minute cities would be to drastically change Canadian lifestyles.

Fifteen-minute cities mean a lot more people living in multifamily housing and fewer in single-family housing. It means most food shopping would be done in high-priced, limited-selection grocery stores. There is no way that Costcos or even large supermarkets can fit into 15-minute cities; to survive, these stores need a lot more customers than could live within a 15-minute walk from their front doors.

Most of the benefits claimed for 15-minute cities are wrong. Proponents claim they would be more affordable, but high-density, multi-story housing costs two to five times as much, per square foot, as single-family homes. Packing people into four- and five-story apartment buildings would require cutting average dwelling sizes at least in half to make them anywhere close to affordable.

Proponents also claim 15-minute cities would save energy and reduce greenhouse gases and other pollutants. But let’s be honest: people aren’t going to give up their cars or stop going to Costco.

Admittedly, the U.S. Department of Energy says that people living in high-density cities do drive a little less than people in low-density areas. But it also says that there is a lot more congestion in high-density cities. Since cars use more energy in slower traffic, high-density cities use more energy (and therefore emit more greenhouse gases) per capita than low-density areas.

Proponents also claim that 15-minute cities will be more equitable. Yet, before about 1890, most Canadian cities were 15-minute cities. Most people in these cities lived in crushing poverty and there were huge disparities between the rich and the poor, with only a small middle-class in between.

What changed these cities was the mass-produced automobile. The Model T Ford democratized mobility, allowing more people to escape the dense cities to find better housing, better jobs, access to lower-cost consumer goods, and a wider range of social and recreation opportunities.

The University of Minnesota Accessibility Observatory calculates that the average resident of the New York urban area—the closest thing to a 15-minute city in the U.S. or Canada—can reach at least 21 times as many jobs in a 20-minute auto drive as in a 20-minute walk. The same will be true of other economic opportunities. Eliminating the automobile, which is the goal of the 15-minute city, would eliminate those economic benefits.

We had this same debate 50-some years ago when urban skies were polluted with carbon monoxide, smog, and other toxic automobile emissions. Some people advocated policies that would force people to drive less. Others advocated new technologies that would reduce the air pollution coming from autos and trucks.

Today, total automotive air pollution has been reduced by about 90 percent. All this improvement came from cleaner cars: new cars today pollute only about 1 percent as much as cars made in 1970. None of this improvement came from anti-automobile policies, as Canadians drive far more miles today than they did 50 years ago.

If anything, policies aimed at reducing driving made pollution worse as one of those policies was to increase traffic congestion to get people out of their cars. Yet, as noted above, cars actually pollute more in congested traffic.

Anti-automobile policies today, including 15-minute cities, spending billions on rail transit lines that carry only a small percentage of urban travel, and converting general street lanes into exclusive bike lanes, are going to have the same effect.

People who care about the planet should demand policies that actually work and not ones that are based on urban planning fantasies and fads. Instead of attempting to drastically change Canadian lifestyles, that means making cars that are cleaner and more fuel-efficient so that the driving we do has a lower environmental impact. The 15-minute city may not be a conspiracy, but it is still an extraordinarily bad idea.

Randal O’Toole is a transportation policy analyst and author of Building 21 st Century Transit Systems for Canadian Cities, an upcoming report published by the Frontier Centre for Public Policy.

Watch Randal on Leaders on the Frontier here.

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Energy

444,000 semi-loads of food? Just another day on planet Earth

Published on

From the Frontier Centre for Public Policy

By Terry Etam

At 100 million b/d, the world consumes a billion barrels of oil every ten days. Eleven billion barrels of recoverable reserves will meet the world’s needs for about 110 days, or just under four months. And global demand continues to grow.

The scope of this discussion goes far beyond oil demand. It is imperative that people understand energy demand, and particularly so on a global scale.

A friend of mine, always with a keen eye on interesting things, passed on an interesting quote from the CERA Week energy conference the other week. The head of the International Energy Forum mentioned a surprising statistic, as quoted by Javier Blas on Twitter: “Heathrow airport in London uses more energy than the whole African nation of Sierra Leone [population ~8.5 million].” Yikes!

Here’s another one that turned up randomly in the feed by a credible source: “If we keep growing our energy usage (2.9% CAGR last 350 years) we will use more energy in the next 25 years than in all prior human history. 3x in 39 years and 9x by the end of the century.”

Energy is an amazing topic, both sources and uses. The sheer scale of what we require for our present lifestyle is mind-blowing when placed in concrete contexts like above. In the abstract, the numbers don’t mean anything. The world consumes over 100 million barrels of oil per day. So what? Is that a lot? Sure it’s a big number but so is 8 billion people. Either stat is hard to wrap one’s head around.

Consider the following with respect to oil consumption/production: ExxonMobil made waves recently for a large oil discovery offshore Guyana, in an era when there aren’t that many discoveries being made (the flip side of the demand for oil/gas companies to return money to shareholders means exploration generally takes a back seat). Reuters picked up the story: ExxonMobil announced a new discovery, one of 30 since 2015, in a 6.6 million acre area that to date has been found to hold 11 billion barrels of recoverable oil, which also equals the country’s total. The results are significant, moving Guyana up to 17th on the world’s petroleum reserve rankings, similar to Norway, Brazil, or Algeria.

Now compare that number to consumption. At 100 million b/d, the world consumes a billion barrels of oil every ten days. Eleven billion barrels of recoverable reserves will meet the world’s needs for about 110 days, or just under four months. And global demand continues to grow.

The scope of this discussion goes far beyond oil demand. It is imperative that people understand energy demand, and particularly so on a global scale.

Look at this history of global energy consumption chart from Our World in Data:

It’s nuts. But it coincides very well with the rising standard of living attained by humanity, particularly in the west, an increase the rest of the world wants to emulate.

Consider the following statistics if you think that trajectory is going to slow down or reverse any time soon.

Africa has about 1.2 billion people, or roughly 15 percent of the earth’s population. Yet Africa accounts for 2 percent of global air traffic. By contrast, Europe has a population of about 740 million, and accounts for 31 percent of global air traffic.

What if Africans decide they want to live like Europeans, air-travel-wise, which is not just justified on moral grounds but actually more functionally logical, because Europe covers only 1/3 of Africa’s size of 30 million square kilometres?

What if the rest of the world wants to enjoy air conditioning to the extent the US does (and why on earth wouldn’t they)? According to the US Energy Information Agency, nearly 90 percent of US households use air conditioning, and virtually every office building does as well. The US has about 130 million households for 330 million people, or about 2.5 people per household. If Africa had a similar ratio, they would have 480,000,000 households, and if a similar proportion had AC there would be 430,000,000 households with AC. It’s safe to say that today in Africa the number of households with AC is far closer to zero than 90 percent. (Even communists/hardcore socialists support near-universal air conditioning, though they call it a ‘right’ by way of that fuzzy but firm ‘gimme that’ appropriation way of theirs.)

Now add in India, with another 1.4 billion people, and do the same math. A billion air conditioners  worth of global demand is not a ridiculous estimate, not when considering Pakistan, Bangladesh, Indonesia, parts of South America… in addition to Africa, India…

Consider even food, and the logistical magnum opus required to keep countries food-riot-free. A typical western website says that the average person consumes 3-4 pounds of food per day. Let’s say the rest of the world isn’t so lucky, and we’ll call it 2.5 pounds per day for a global average (each new cruise ship drags the world average up considerably). There are 8 billion of us schlepping around planet earth. A semi trailer can carry about 45,000 pounds of cargo. So every day, the equivalent of about 444,000 semis full of food are forklifted out of trucks and down the gullets of 8 billion upturned mouths. Every freaking day, without a break.

And that’s just food. What about IKEA. And Costco. And Home Depot. And Walmart. And all the other stuff in our world.

And billions more people are striving to fill up the SUV (yes, everywhere you go, SUV) at their local Costco/Home Depot/Walmart, as soon as one arrives in their community.

Ah hell, I give up. The scale of all this stuff is unfathomable. And yet it all gets where it needs to go, every day, as long as there’s energy.

Any singular household staple must be there, in abundance, or all hell breaks loose. Remember Covid > toilet paper? What happens as soon as there is even a rumour of a shortage? Social deviants, which are harder to eradicate than (and just as useful as) STDs, get into gear and begin hoarding in order to resell at a profit. It just happens, one of the unfortunate costs of living in a free society. (I’m not suggesting that those people should be found and beaten with a tire iron, but then again I’m not suggesting that they shouldn’t.)

When we think of energy consumption, we tend to think of our hilariously comfortable lives in western nations, where supermarkets are perpetually full, where gasoline and heating fuels are available 24/7/365 at reasonable prices, where flying wherever and whenever we want, with minimal hassle, is one step away from being viewed as a human right. We are correct in that our energy consumption per capita in the west is very high. But on an outright total consumption basis, individual country statistics are pretty wild. And saddening, in some ways.

First the wild part: You would expect (or I did anyway) the US to be either at the top of the consumption pile or close; it is and has been an economic juggernaut for a century. But not even close: in 2022, the US consumed about 96 exajoules of energy, which is a lot – that number equals the consumption of India, Russia, Japan and Canada combined. But way out in front is China, with 2022 consumption of 159 exajoules. No one should be surprised China leads the world in renewables installation and coal fired power plant construction. They need it all.

Where it gets sad is to wander further down the list to the lowest consumers. The site linked above shows a graphic of the world, with each country colour-coded for total energy consumption. The lowest on the colour scale is a pale yellow representing 20 exajoules per year. The scale rises up through blues and towards a dark navy which represents China at the top of the heap.

Most African countries, and some South American ones, do not even warrant a definition in the legend at all, and are simply greyed out. They have so little energy consumption they hardly even make it onto the raw data table. Hundreds of millions of people live like that. But only as long as they have to.

It is very sobering to see how much of the world lives, and how very far they are from the West’s standard of living. The West’s leaders push the concept of ‘electrify everything’, a concept that only makes sense if one is looking no further than their backyard and has zero feel for the true global situation. In much of the world, they would just as happily get behind the slogan ‘electrify anything’.

It is hard to imagine this energy consumption trajectory falling; we’d be very lucky if it stayed flat. But that seems like an unrealistic hope. The developing world clearly has every incentive and right to advance towards the West’s standard of living, and if they get close global energy consumption will head off further into the stratosphere. Here in the West, we play cute little games like a forced switch to EVs, while ignoring almost totally any common sense commentary on the subject (For example, Toyota’s 1:6:90 rule which states that for the same amount of raw materials to manufacture one EV, Toyota can make six plug-in hybrids or 90 hybrids, and in doing so would achieve 37 times the emissions reduction of a single EV. Yet Toyota is scorned for such logic on the grounds that “Toyota’s reluctance to fully embrace EVs can hinder innovation in the EV industry.” Note that there is no challenge to the facts themselves, just a bruising of the ego of the think tanks.)

Anyone that provides energy of any kind should roll up their sleeves, there’s a lot of work to be done, and those who wish to hunt for energy villains will get run over, in due course.

Terry Etam is a columnist with the BOE Report, a leading energy industry newsletter based in Calgary.  He is the author of The End of Fossil Fuel Insanity.  You can watch his Policy on the Frontier session from May 5, 2022 here.

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