The News Rundown
- It's another week, and we somehow have another story about a Liberal cabinet minister saying something dumb. This time, it's the activist turned Environment Minister Steven Guilbeault who decided to announce that his government won't be funding roads anymore.
- He was swiftly questioned and attacked by opposition Conservatives and some premiers from different political backgrounds who said the climate activist turned politician is out of touch.
- Guilbeault said Monday the federal government will be there to support provinces paying for maintenance but Ottawa has decided that existing road infrastructure "is perfectly adequate to respond to the needs we have."
- Guilbeault said: "There will be no more envelopes from the federal government to enlarge the road network. We can very well achieve our goals of economic, social and human development without more enlargement of the road network."
- Pressed by reporters to defend his comments Wednesday, Guilbeault said he should have been "more specific" by stating that the federal government will not be funding "large projects."
- Guilbeault clarified that he meant to say Ottawa will not put up the cash for "large" road projects: "Of course we're funding roads. We have programs to fund roads," he said.
- He cited Quebec City's long-proposed 'third link' supported by the provincial CAQ government as one project that will not receive funding from Ottawa.
- Conservative Leader Pierre Poilievre called Guilbeault a "radical" who seems intent on banning federal funds from road projects.
- Conservative MP Mark Strahl, the party's transport critic, said Guilbeault's talk about no more new funding for "large" roads is "outrageous" and an affront to the people who rely on cars to get to and from work.
- "This isn't something many Canadians do without. To simply say we're not going to allow any federal money to go into that is extreme, it's divisive and it's right in line with what this government does," Strahl said.
- Strahl referred to Guilbeault's past Greenpeace activism, which led to arrests for stunts in saying: "But we should expect that from a guy who scaled the CN Tower, climbed on top of a premier's house and was led away in handcuffs. That's the kind of extremism that he's about."
- Alberta Premier Danielle Smith, a frequent critic of Guilbeault, pounced on the remarks, saying in a social media post that the Montreal cabinet minister doesn't understand that many Canadians live in suburban, rural and remote areas where transit isn't as well-developed. Smith said Wednesday that Guilbeault is "tone deaf."
- "Most of us can't just head out the door in the snow and rain and just walk 10 kilometres to work each day. He's losing credibility every single day. I don't know why his caucus and his cabinet is putting up with it — that's something they will have to deal with internally," Smith said.
- Ontario Premier Doug Ford is another premier who has had choice words for Guilbeault in the past — he's called Guilbeault "a real piece of work" and an "extremist." Ford said Wednesday he was "gobsmacked" by Guilbeault's latest policy pronouncement.
- "A federal minister said they won't invest in new roads or highways. He doesn't care that you're stuck in bumper-to-bumper traffic. I do. We're building roads and highways, with or without a cent from the feds."
- Guilbeault's comments put into question the future of Ford's promised Highway 413 project, a new highway in the northwest part of the Greater Toronto Area that will connect two major arteries in the area and ease travel between booming areas like Vaughan and Brampton. Ontario has argued that the project should be fast-tracked because the population growth in these Toronto suburbs demands more infrastructure to ease congestion. Toronto has been recently named as one of the worst cities in the entire world for traffic congestion.
- Last provincial election, Ford and his PC Party won every single seat in the vicinity of the highway. This happened despite the provincial Liberals and NDP campaigning hard against the project and at least two years of almost uniformly negative media headlines where the highway was constantly described as “controversial.”
- Turns out, the highway isn’t controversial and people like their cars, but that’s something Guilbeault would know since he loves his car as well. Guilbeault was logging more than 3,000 kilometres per month shortly after he was elected and appointed minister in the 2019 election. That’s more driving in seven months than the 15,000 km the average Canadian drives in a year.
- Even BC NDP premier David Eby was surprised by the comments by Guilbeault. Many of Metro Vancouver’s roads are currently undergoing significant upgrades but there is now some concern the federal government might not be a partner in those projects.
- Eby said, “The province is not waiting for the feds. You’ll see the early work that is already going on out there.” The federal government has already promised funds to upgrade Highway 1, the Massey Tunnel project and repair work and infrastructure needed in the Sumas Prairie following the devastating flooding in 2021. Eby said Highway 1 is a national trade corridor, not a simple road project.
- Eby said Prime Minister Justin Trudeau needs to clarify the comments made and be unequivocal about the remarks as Guilbeault has waffled about with his statements: “I understand the federal environment minister has tried to clarify his comments. It would be good to understand from the federal government and to have some clear commitments, a recommitment to the promises they made to us around this essential infrastructure because these comments have obviously made a lot of us very nervous.”
- Jyoti Gondek, Calgary’s mayor, is the latest politician to raise concerns over Guilbeault's comments, saying that “Making that kind of a public statement and not having any rationale behind it is not ministerial.”
- It's crazy that even though his government is inviting record numbers of people into the country, Guilbeault thinks that infrastructure spending on basic things like roads. Canada's infrastructure is already failing due to his government's policies over the past decade. Housing, and healthcare have already fallen behind, and now even though Guilbeault wants us all to buy electric cars, he doesn't want us to be able to use them on roads.
- And sure, while his comments may have been misinterpreted, it's literally his job to make his words understood. It's about time the media started holding Trudeau and his ministers to account for the dumb things they say, and this week we've seen the start of that.
- Supplementals:
- https://twitter.com/PierrePoilievre/status/1757914478405120010
- https://globalnews.ca/news/10293868/environment-minister-road-funding/
- https://torontosun.com/opinion/columnists/trudeau-government-pledges-no-more-road-building
- https://globalnews.ca/news/10295742/bc-premier-david-eby-steven-guilbeault-infrastructure-roads/
- https://twitter.com/ABDanielleSmith/status/1758587868606521461
- https://www.cbc.ca/news/politics/guilbeault-highways-climate-change-1.7117878
- Childcare implementation is changing in Alberta. One of the policies put forward by the Trudeau-Singh confidence and supply agreement was supposed $10 a day nationwide child care.
- What you haven’t heard though is that this program has been responsible for a series of delays which has led to an impact on the quality of care and staffing.
- A few weeks back Albertans using the child care system noticed that their daycares were not open.
- In early February many daycares in the province participated in rotating closures as spurred on by the Association of Alberta Childcare Entrepreneurs (AACE).
- The $10-a-day daycare system puts the operators in a tough position.
- Krystal Churcher, chair of the AACE said, “our industry is dedicated to finding solutions that prioritize children's welfare and maintain the excellence of our services. However, the government's current implementation of the $10/day childcare program is leading us down a path where the quality and choice of childcare in Alberta are at risk, with potential unintended consequences for children and families.”
- Churcher made this statement on January 30th and the news of the impact the program has had made very little splash across the province.
- The coverage done by CTV News Calgary said that three Calgary daycares and two Lethbridge facilities at least would be closed.
- One facility in Calgary, The Imagination Tree childcare Centre, Sarah Hunter said, “some of this special stuff I have here that helps children that need extra support, won't be able to be here anymore. And so that's really heartbreaking for me, because we pride ourselves on delivering quality programs for our children here.”
- She was looking at having her facility cut all components that make it a quality program, have a food program, have a music program, or an art program.
- Daycares were also facing a 45 day delay before being paid by the province.
- This is where the change this week comes in.
- The province announced it is working on a new system that will streamline payment processes and ensure that operators receive affordability payments faster.
- Churcher said that the association has a good relationship with minister Glubish and while she doesn’t have the details of the new system, she is optimistic.
- The province is also changing the ministry in charge of child care. Up until now, the Minister of Children and Family Services worked on child care. Now that all be the Minister of Jobs, Economy, and Trade.
- The opposition NDP have blamed the issue on the UCP budget but looking at the changes this week in a vacuum isn’t the smartest thing to do.
- The AACE and individual operators are fully aware that despite the new $10 program being in place, it needs to be built to work with childcare in the province.
- Churcher put it bluntly, “things can only go up from where we are in our sector right now. We are in a crisis level for funding our programs. We’re being steamrolled by a federal program that isn’t fitting into our province’s child-care sector.”
- The program isn’t fitting into the province’s child-care model and the AACE has asked for the Alberta government to evaluate the program and make sure it will work for the province.
- Every province and territory has signed on to the agreement and in exchange they get federal money as long as they implement the $10 plan to cut fees and increase wages for the child-care workers.
- The core of the problem has been one that is framed squarely on Alberta. But the reality is that the problem was initiated by the $10-a-day program at the federal level.
- Yes the province has to iron out some kinks but this week we see the province taking the lead to fix the problems initiated by the federal government which is not a frame you would expect or ever hear.
- Supplementals:
- People in BC may have heard about a trucking company that has crashed into several highway overpasses over the past few months. I've been keeping an eye on it, and it seems like there's finally time and reason to discuss it on Western Context.
- B.C.'s Transportation Minister Rob Fleming said, in the interest of safety, a formal cancellation notice was issued to Chohan Freight Forwarders Ltd. for its operations in B.C. on Thursday.
- The province had previously suspended the carrier following an overpass strike on Highway 99 in late December. On a provincial list of the overpass strikes that have occurred since December 2021, Chohan is named six times out of 34 total strikes. The highway strikes have been so numerous that they've even become a uniquely BC meme, where even a hockey highlights channel on youtube introduces hits and fights with a segment called "BC highway overpass impact replay".
- It was clear that something needed to be done, and it's clear from the government's angle that the cancellation of Chohan's license is just the start.
- In Fleming's statement he said: “This is the most severe action that can be taken against a company with multiple infractions – and it sends a clear message to operators that infrastructure crashes around our province need to stop. It has never been easier to follow a route to guide a load safely through our highway system and avoid the potential for impact with infrastructure.”
- “We know the vast majority of commercial drivers in B.C. operate safely and responsibly. This decision, issued by the independent director of the Commercial Vehicle Safety and Enforcement (CVSE) branch, follows changes that allow for progressive enforcement of suspensions to better deal with those few companies and drivers who are not being safe and responsible.”
- The province has struggled to come up with ways to reduce the amount of strikes which have damaged critical transportation infrastructure and also created unsafe road conditions. In December the province announced tougher penalties related to the strikes. It added escalating penalties for companies and drivers with repeat offences, added longer suspensions and the possible loss of their operating certificate.
- Dave Earle, the CEO and president of the B.C. Trucking Association, which represents 26,000 workers operating 14,000 transport trucks across the province, said he wasn't surprised by the Chohan cancellation.
- He said the announcement by the province in December to increase enforcement telegraphed that a company would eventually face a certificate cancellation related to ongoing overpass strikes.
- "What we've been saying for a long time is that government needs to do more in terms of actually talking about the enforcement action they take, publicizing the enforcement actions they take," he said. "So we applaud government for taking that step and being more transparent with the enforcement actions they are undertaking."
- Earle said that Chohan should be able to present submissions either in person or in writing for an eventual hearing over the cancellation arguing why it should be overturned. If the CVSE still determines a cancellation is justified, the company has a right of reconsideration and ultimately an appeal for judicial review through the courts.
- Photos on social media appeared to show the trucking company that had its license suspended in B.C. last week is still operating its Alberta fleet in the province. The ministry says Chohan operates in Alberta as a separate entity, and the Alberta-registered vehicles of the fleet are regulated by that province.
- Chohan Group Ltd. — an Alberta-based company owned by the son of the owner of Chohan Freight Forwarders Ltd. in BC — is also suing over claims they were denied oversize permits after the director of the CVSE concluded the two firms were "essentially one operation."
- Court documents say Kuljit Singh Chohan owns the B.C. firm, while his son Suneet Chohan owns and operates the Alberta firm.
- The court documents describe the two businesses as "separate legal entities" run as "independently-owned fleets, with different employees, drivers … and trucks" but says that "for reasons of cost-saving and efficiency" they work "collaboratively."
- Some employees use the same email domain, on occasion, the companies share equipment, and their trucks all have "Chohan" branding. The daughter of the owner of Chohan Freight Forwarders Ltd. also "assists" both companies with their safety policies.
- Last month, B.C. Premier David Eby told an unrelated news conference on Wednesday that British Columbians were frustrated by the number of overpass strikes, calling "this company Chohan'' one of the "worst offenders."
- In probably the biggest zinger of Eby's premiership so far, he said of Chohan: "The astonishing part is that the company thinks that they should be still able to operate. My only hope is that on the way to court, they don't run into a bridge. I encourage them to take the bus or some other form of public transit on the way to the courthouse."
- It's clear that this suspension and later cancellation of the operating license was the last resort for a company that has clearly failed to train its drivers properly. While the court case will still be ongoing, it's fair to say that we will see a lot less overpass impact replays in the province going forward, even if we'll still see it memed on the internet.
- Supplementals:
- https://news.gov.bc.ca/releases/2024MOTI0020-000218
- https://www.cbc.ca/news/canada/british-columbia/chohan-freight-forwarders-ltd-cancelled-from-operating-in-bc-1.7117326
- https://www.cbc.ca/news/canada/british-columbia/overpass-crashes-suspension-chohan-1.7106771
- https://vancouver.citynews.ca/2024/01/02/chohan-trucks-suspension-alberta-bc/
Firing Line
- The ArriveCan app has been a question for Canadians since the dying days of the pandemic initially for the horrid app performance and making people quarantine who had no reason to.
- But for Canadians many may not be aware of the true cost to this app. It has now been revealed that the cost of the app cost taxpayers $59.5m. We thought it was eye watering when it was $54m but it has gone up.
- Auditor General Karen Hogan testifying to the public Accounts Committee said that she came across “the worst bookkeeping she’s seen in years.”
- This of course stands with other pandemic-era policies such as the CERB and federal wage subsidy.
- But Hogan was more alarmed with what she didn’t see: she didn’t find records saying what was spent on what, who did what work, and how and why contracting decisions were made.
- The recommendations are as follows.
- The Canada Border Services Agency should maintain accurate financial records by correctly allocating expenses to projects.
- To better support these actions, the agency should work with contractors to obtain invoices that accurately detail the work completed by each resource by project, contract, and task authorization.
- The Canada Border Services Agency and the Public Health Agency of Canada should fully document interactions with potential contractors and the reasons for decisions made during non‑competitive procurement processes and should put in place a process to ensure compliance with the requirements of the contracting policies.
- The Canada Border Services Agency should ensure that potential bidders are not involved in developing or preparing any part of a request for proposal and should put in place controls that will prevent this from occurring.
- The whole of the story is that all federal departments and agencies need to improve their fiscal management, fully document interactions with contractors, and attach clear deliverables to contracts awarded.
- This was made worse when it was also found that 18% of invoices did not provide enough information to determine whether expenses were related to ArriveCAN or another project.
- $53.2m went to the app and $6.2m went to the CBSA’s digitized customs and immigration declaration form.
- And the average per diem on the app was $1090 while the average daily cost for equivalent IT positions was $675.
- The company GC Strategies, which was highlighted in the report received an estimated $19.1m in contracts for ArriveCAN.
- In a vacuum this is interesting when it comes to ARriveCAN but if we go back to 2015, the company has won more than 140 contracts totalling more than $258m from federal departments and agencies.
- So the question, what is GC Strategies and where is the money going?
- Well that’s even harder to figure out because several of the contracts awarded without a call to tender being issued.
- Meaning the government just chose this company to receive its money.
- To talk about the kind of relationship GC Strategies has with the federal government, the head of GC Strategies invited federal officials to a whiskey tasting event a year after ArriveCan’s launch.
- GC Strategies is a weird company. La Press tried to reach out to the company and they did not respond to emails sent to the company.
- But the company has about 4 employees and its registered address points to a bungalow in Ottawa where new tenants live. Another address is a lawyer’s office on Carling Avenue.
- The company presents itself as an IT solutions provider that has done work for the federal government.
- With 4 employees it’s clear that it’s not an independent developer team developing the federal governments apps because there is subcontracting going on. We’ll have more in a minute on how simple it may have been to build ArriveCAN.
- There are serious questions as to where the money is going and what it’s being spent on - that’s already on top of the accounting blunders.
- Conservative leader Pierre Poilievre said that parliamentary committees would be looking into the ArriveScam saga further as he called it.
- Poilievre said, “These are incredible revelations from La Presse. A company which has two employees, which is at the heart of the ArriveCAN scandal , and which has an address in the basement of a house in the suburbs of Ottawa received approximately a quarter of a billion dollars in contracts. This doesn't make sense. There is something wrong. There are secrets. You have to have the truth. The scandal is bigger than before.”
- From GC Strategies to the CBSA there are questions in to what just exactly happened and where the money went.
- Following this it is said that Public Services and Procurement Canada has suspended all contracts with GC Strategies and that there will be a review in contracts awarded to the company.
- The RCMP has also begun studying the report to see if there is any basis for an investigation which could bring criminal charges to those involved.
- The app wasn’t very complicated in the grand scheme of things.
- In late 2022 Toronto based app developer Lazer Technologies built a prototype clone of ArriveCAN in less than 2 days.
- Now this doesn’t account for backend servers or the staffers involved in managing the data coming out of the app but the building of the app itself was nowhere near complicated when it comes to smartphone apps.
- The hackathon took place over Thanksgiving weekend and by dinner time on Thanksgiving Day there was a clone of the app working which has had the source code published online.
- Those in the industry evaluate that based on what the app did, the entire product could’ve been delivered for about $250,000 whereas in the software space the $54m+ price tag could get you a triple A video game.
- Back in the day the Liberal response from Liberal MP Anthony Housefather was, “I will make no apology for an app that saved the lives of tens of thousands of Canadians.”
- Today, Public Services and Procurement Minister Jean-Yves Duclos and Public Safety Minister Dominic LeBlanc agreed that the contracting practices demonstrated in the ArriveCan process were clearly "unacceptable”.
- LeBlanc said, “I have full confidence in the agency's ability to take all of the appropriate corrective measures to ensure that public funds are obviously used with the utmost diligence.”
- So with that it’s clear that we’re closer to the beginning than the end of the ArriveScam saga as it’s been called and it’s unlikely we’re going to see whether or not the Liberals are willing to get to the bottom of it in the coming weeks.
- Supplementals:
- https://torontosun.com/opinion/editorials/editorial-how-arrivecan-app-became-arrivescam
- https://twitter.com/GarnettGenuis/status/1757076023387312332
- https://www.lapresse.ca/actualites/2024-02-14/contrats-federaux/258-millions-pour-l-entreprise-derriere-arrivecan.php
- https://www.theglobeandmail.com/politics/article-rcmp-arrivecan-report/
- https://archive.is/dyDUS
- https://nationalpost.com/news/canada/in-two-days-a-single-programmer-duplicated-arrivecan-an-app-that-cost-ottawa-54-million
Quote of the Week
"The astonishing part is that the company thinks that they should still be able to operate. My only hope is that on the way to court, they don't run into a bridge. I encourage them to take the bus or some other form of public transit on the way to the courthouse." - BC Premier David Eby on the suspended trucking company Chohan Freight Forwarders Ltd. appealing the decision by the provincial government to suspend their license after numerous highway overpass impacts.
Word of the Week
Infrastructure: the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.
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Show Data
Episode Title: Roads and Radicals
Teaser: Steven Guilbeault says the feds will stop investing in roads, the Alberta government improves the childcare system, and BC suspends the license of a company that drives into highway overpasses. Also, ArriveCan costs even more money than we thought before.
Recorded Date: February 17, 2024
Release Date: February 18. 2024
Duration: 52:25
Edit Notes: AB daycare pause
Podcast Summary Notes
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Duration: XX:XX