Trudeau’s next headache

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Thanks for reading Ottawa Playbook. Let’s get into it.

In today’s edition:

→ Want a carbon tax carve-out? Stand in line.

→ Apologies to the kids who ended up in the House on Take Your Kid to Work Day.

→ The public accounts are a mystery thriller with lots of ups and downs.

NOT (CARVE) OUT OF THE WOODS — Prime Minister JUSTIN TRUDEAU insists there will be no more carbon tax exemptions.

Several premiers are demanding that a new home heating oil exemption largely for maritimers should apply to all Canadians, no matter what they use to stay warm in the winter.

Tory Leader PIERRE POILIEVRE has long called for an end to the tax — and even dared Trudeau this week to call an election on the issue.

No such luck, Trudeau told reporters Tuesday: “There will absolutely not be any other carve-outs or suspensions of the price on pollution,” he said.

— Not so fast: The prime minister probably should have qualified that statement — tacking on, for instance, “if I have anything to say about it.”

— Enter another carve- out: A pile of senators and influential agriculture industry lobbyists have another exemption to the Liberal carbon tax in mind, and it’s a few votes away from becoming the law of the land.

— Bill C-234 in a nutshell: This little private member’s bill could be a big Liberal headache.

Farmers are already exempt from paying carbon tax on gasoline and diesel used in their operations. Tory MP BEN LOBB‘s private member’s bill would extend that exemption to natural gas and propane. Farmers and ranchers staring down wintertime energy bills have been pushing hard for the cost-saving measure.

Farmers do qualify for a carbon rebate, but opposition MPs argue it doesn’t adequately cover the total price tag.

House opposition parties teamed up to pass the bill in March. Three Maritime Liberals whose constituents have also been giving them an earful about the cost of heating oil — KODY BLOIS, BOBBY MORRISSEY and HEATH MACDONALD — voted in favor.

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— Sober second thought: C-234 was introduced in the Senate on March 30. Senators sent it to the agriculture committee on June 13. A seven-meeting study and clause-by-clause review of the bill’s finer points culminated in a significant amendment last month moved by Sen. PIERRE DALPHOND.

— Anatomy of an amendment: C-234 as passed by the House would take the tax off the heating and cooling of barns, as well as off of grain drying. Farmers argue no viable, lower-emitting alternatives to natural gas and propane are available for those purposes.

Dalphond argued there should be no exemption for heating or cooling of barns, and a majority of the agriculture committee agreed with his view.

Sen. ROB BLACK, the committee’s chair, argued Dalphond’s amendment “would be destructive to the bill” because it lopped off much of its purpose. Black ruled it out of order, but a majority of senators successfully overruled him and sent the amended bill back to the full Senate.

— To amend or not to amend: On Oct. 26, senators took up the debate. Black and others implored their colleagues to re-insert the “heating and cooling” clause to the committee report. If they fail, they’ll likely attempt the same persuasion at third reading.

Meanwhile, the ag lobby is leaning heavily on senators to pass the bill unamended. Their worst-case scenario would see an amended C-234 return to the House, where the government wields significant control over the agenda — and could delay the bill.

If C-234 clears the Senate without amendment, it’d be law as soon as it clears the symbolic hurdle of royal assent.

For farmers and ranchers and a reeling government, the stakes are high.

— Plot twist: Sen. PAULA SIMONS was flabbergasted as the full Senate considered the amended bill. She was the committee’s swing vote in favor of the amendment. Simons believes in carbon taxes as a “market solution to a market problem.”

The same day, Trudeau announced the heating oil carve-out. Simons was beside herself.

“How am I, as an Alberta senator, supposed to look Alberta farmers in the face and tell them that I took a principled stand against carbon tax exemptions when the government has pulled the rug right out from under me?” she said.

“I’m not going to stand here and tell you how to vote on this report. I’m not even sure how I’m going to vote. I just know that I’m feeling pretty foolish right now, pretty betrayed and I wish I didn’t.”

— What’s next: Behind the scenes, senators are divided. Simons tells Playbook she expects a close vote, though it’s not clear when that’ll go down. For the record, she says, no Liberal ministers have lobbied her directly.

— Prime Minister JUSTIN TRUDEAU is in Ottawa. He’ll attend question period.

— Deputy PM CHRYSTIA FREELAND is in Toronto.

8:15 a.m. Top dogs from the CBC will be at the House heritage committee for a hearing on CATHERINE TAIT’s appointment as president of the broadcaster.

9 a.m. Trudeau will deliver remarks at the Sustainable Finance Forum.

9:30 a.m. NDP MP CHARLIE ANGUS and several labor leaders hold a press conference calling on the Conservatives to “end their filibuster of the Sustainable Jobs Act.”

10:15 a.m. Trudeau will participate virtually in the Artificial Intelligence Safety Summit leaders’ discussion convened by the United Kingdom.

11:50 a.m. Trudeau will meet with Swiss President ALAIN BERSET.

12 p.m. Freeland will host a roundtable discussion with climate and environment experts.

3:45 p.m. NDP Leader JAGMEET SINGH will Singh will meet with the United Food and Commercial Workers Canada’s union leadership.

5 p.m. Housing Minister SEAN FRASER holds an open forum on housing for Carleton University’s master’s program in political management — aka future Hill staffers.

A SCENE OF SCENES — There were more children in the House than usual on Wednesday thanks to Ontario’s Take Our Kids to Work Day.

From the gallery, viewers witnessed a helpless House Speaker GREG FERGUS lose control of the chamber.

— Making a scene: While the camera stuck on Fergus, it didn’t show Conservative Leader PIERRE POILIEVRE standing while the speaker tried to make a speech about decorum. Members usually rise when recognized by the speaker — and sit whenever the person in the Big Chair makes a statement or speech.

Liberal MPs yelled “Sit down!” at Poilievre, calling his decision to stand while the speaker was, er, speaking, disrespectful. The Conservative leader ignored the calls while Fergus attempted to bring down the temperature.

Then Liberal MP WAYNE LONG popped up from his end of the chamber to troll Poilievre. NDP MPs leapt up to do the same. A small wave of Liberals followed all while Fergus stood at the front … waiting.

— More scenes: Poilievre eventually took his seat after throwing a carbon tax question at the government. Health Minister MARK HOLLAND stood to accuse the Conservative leader of “trying to destroy the action that our government is taking on climate change.”

“You’re subsidizing China!” shouted a lone voice from the Conservative benches. Holland’s passionate delivery prompted Tory MPs to “Grrrrrrrrrr” really loud as he sat down.

— One more scene: Indigenous Services Minister PATTY HAJDU also lost her cool. With the camera focused elsewhere, she called out Poilievre for his “childish behavior.”

“Patty’s upset,” a Conservative responded in a mocking tone.

The children and teenagers watched from above.

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PUBLIC ACCOUNTS, REDUX — One of fall’s best political and public policy reads is the public accounts, sadly harder to get a hold of in paperback these days.

The series of volumes gives a full accounting of what the government spent money on, giving a fuller picture than the annual overpromising budgets and warmed-over summer announcements.

— Sorry, WEF: The government discloses expenditures related to international ministerial travel in Sec. 10 of Volume III. If you do have the hard copy in-hand, flip through to p. 285.

One of the items reads: Planning Visit for the Prime Minister’s Visit to Bern (Switzerland) — World Economic Forum (WEF), May 2022

No, the prime minister didn’t attend that WEF summit, though Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE was on the agenda. But the feds spent C$46,338 on a planning trip. What gives?

We asked the PMO, which transferred us to Global Affairs Canada last week. We still haven’t heard back on that mysterious line item. But we’ll update you when we get the scoop.

— It’s a secret to everybody: For reporters, the public accounts are a mystery thriller with lots of ups and downs. For instance:

The office of the chief electoral officer lists a C$4,000 “settlement for damages of property — polling office” to Sedgwick Canada Inc. Alongside that figure is C$1,000 related to an injury, C$1,000 related to theft, and 26 individual payments totalling C$12,400.

— Royal attendant’s lost …?: National Defense couldn’t explain a C$143,541 payment for “environmental damages in Germany,” nor its C$3,362 reimbursement for “loss of personal items during performance of office equerry duties during the Royal Visit.”

— Failed contract by …?: Public Health Agency of Canada lists a C$150 million unfulfilled contract with a vendor which it cannot name “due to a confidentiality agreement with the contractor,” but says it’s committed to “ensuring that public funds are used wisely.”

— Protagonist vs. nature: Fisheries and Oceans Canada, though, was able to explain C$186 million listed under building and property damage in a straightforward fashion:

“There were 188 cases involving losses of public property that were caused by accidental destruction or damage to buildings and other real property.” Hurricane Fiona dealt C$184 million of that to “small craft harbours in Newfoundland and Labrador, Maritimes and Gulf regions.”

Parks Canada similarly listed Fiona as the main incident that accounts for C$16 million in damage. “The storm caused damages to roads, trails and infrastructure in Nova Scotia ($15,470,770) and Southern New-Brunswick ($180,000). The remaining incidents are primarily due to car accidents causing damages to buildings, infrastructure, guardrails and signs.”

— Super hush-hush: The secretive National Security and Intelligence Review Agency Secretariat listed two mystery payments totalling C$927, noted under “payments of claims against the Crown, ex-gratia payments and court awards,” along with a C$1,174 settlement “subject to publication exemption” to a person whose name was withheld.

— One more thing: The government reached a C$26,542 settlement with the Good Samaritan Society for breach of contract.

— The Writ’s ÉRIC GRENIER dives deep into the most recent quarter’s worth of federal fundraising data. Key takeaway: “The Conservatives are out-fundraising the Liberals in every region except Quebec.”

— On The Bridge pod, BRUCE ANDERSON uses the word “shambolic” to describe the Liberals in the days after announcing their carbon tax retreat.

— “Kids today whinge about the prospect of being the first generation to do worse than their parents. Sorry, but we got there first,” ANDREW POTTER says of Generation X in a piece he wrote in the wake of MATTHEW PERRY’s death.

— Writing for The Walrus, CAITLIN STALL-PAQUET explains why the future of mining might be smaller than you think.

Birthdays: HBD to former MPs WENDY LILL, LUC MALO and retired senator and marathoner PAUL E. MCINTYRE. Bluesky Strategy VP GEOFF TURNER also celebrates.

Send birthdays to [email protected].

Spotted: Former PM JEAN CHRÉTIEN, meeting Chinese Vice President HAN ZHENG in Beijing on Wednesday. Said the veep to the Canadian: “You are an old, good friend of the Chinese people. The 10 years you served as prime minister was the ‘golden decade’ of bilateral relations and you have continued to contribute to China-Canada friendship after leaving office.”

DComm AÏSSA DIOP, ducking below the camera shot to physically pull her boss, Immigration Minister MARC MILLER, away from the lectern after a media scrum clocked past the 30-minute mark. Miller kept talking … Sandstone Group’s KEVIN BOSCH lurking in the third-floor foyer in West Block, watching Miller take questions on the government’s new immigration levels.

Conservative MP GARNETT GENUIS, walking around West Block with his kids, talking about committee coordinators.

MARK CARNEY and Liberal MP ALI EHSASSI, small-talking in the Westin lobby.

At a JEAN CHAREST leadership debt repayment fundraiser on Oct. 10 in Power Corp’s Montreal offices, according to Elections Canada records: Power Corp bigwigs PAUL DESMARAIS JR., JEFF ORR and PAUL GENEST; Bombardier board chair PIERRE BEAUDOIN; real estate developer VINCENT CHIARA; former senator MICHAEL FORTIER; McMilan Vantage senior adviser DAVID MCARTHUR; banker and former Hill operative DAN NOWLAN; former Scotiabank CEO BRIAN PORTER; and hockey legend SERGE SAVARD.

Movers and shakers: Former B.C. premier JOHN HORGAN is Canada’s new ambassador to Germany. The post had lain vacant since June 1, 2022, the day after STÉPHANE DION‘s appointment as ambassador to France.

Auto parts magnate FRANK STRONACH has launched the Stronach Foundation for Economic Rights: A Coalition of Concerned Citizens. ANTHONY FUREY is the executive director.

DANIEL TISCH will start as the Ontario Chamber of Commerce’s president and CEO in January.

Media mentions: Bad + Bitchy podcast co-host and Hill Times columnist ERICA IFILL has won The Samara Centre for Democracy’s inaugural Fourth Pillar of Democracy Award. (h/t MIKE LAPOINTE)

If you’re a subscriber, don’t miss our latest policy newsletter from SUE ALLAN, KYLE DUGGAN and ZI-ANN LUM: Moral imperatives vs. climate politics.

In other Pro headlines:

— Oil majors riding high into COP.

— Dutch PM Rutte builds an early head of steam for NATO’s top job.

— U.S. and China join global leaders to lay out need for AI rulemaking.

— Wary Fed holds rates steady as inflation cools.

— We should listen to Elon Musk’s concerns about AI, says Rishi Sunak.

8:15 a.m. Senior officials from the CBC will be at the House heritage committee for a hearing on CATHERINE TAIT’s appointment as president of the broadcaster.

8:15 a.m. The House agriculture committee will meet to study electronic logging device requirements and animal transport.

9 a.m. The parliamentary budget officer releases a new costing report on the lifecycle costs of Canada’s F-35 program.

9 a.m. The Senate’s human rights committee releases a report on its year-long study into Islamophobia.

9 a.m. Former senator CÉLINE HERVIEUX-PAYETTE will be at the Senate fisheries and oceans committee in relation to its study on Canada’s seal population.

9 a.m. The Senate national defense committee hears from hunting, wildlife and firearms associations on the Liberal government’s controversial gun legislation, Bill C-21.

9 a.m. The Senate agriculture committee continues its study into soil health.

9:15 a.m. The Senate energy and environment committee hears from Environment and Climate Change Canada bureaucrats on climate change and the oil and gas industry.

11 a.m. Justice Minister ARIF VIRANI and WADE MACLAUCHLAN, chairperson of the Independent Advisory Board for Supreme Court of Canada Judicial Appointments, will be at the House justice committee where MARY MOREAU’s appointment to the Supreme Court is on the agenda.

11 a.m. The House environment committee’s freshwater study continues.

11 a.m. The House international trade committee will meet to continue their study on Canada’s proposed biocides regulation.

11 a.m. Pre-budget consultations are the topic of the day at the House finance committee. Witnesses include representatives from Wealthsimple, the Canadian Chamber of Commerce and the Canadian Centre for Policy Alternatives.

11:30 a.m. The Senate foreign affairs committee hears from Global Affairs bureaucrats on the topic of women, peace and security.

11:30 a.m. The Senate’s social affairs committee continues to dig into Bill C-35, legislation dealing with early learning and child care in Canada.

11:30 a.m. The Senate banking committee hears from the Superintendent of Financial Institutions.

11:45 a.m. The Senate legal affairs committee continues its study of Bill S-13.

3:30 p.m. The House citizenship and immigration committee will meet to discuss the government’s response to the final report of the special committee on Afghanistan.

3:30 p.m. The House industry committee has Bill C-27 on its agenda.

3:30 p.m. The House Indigenous and northern affairs committee will meet to study Bill C-53.

Behind closed doors: The House public accounts committee meets to review two draft reports; the House status of women committee will go over their human trafficking study; the House procedure and House affairs committee will chat “committee business”; the House veterans affairs committee will meet for a briefing on trauma-informed practices.

Wednesday’s answer:LEE RICHARDSON was elected to the House of Commons in two different centuries and also worked for JOHN DIEFENBAKER, PETER LOUGHEED and BRIAN MULRONEY. For the record, Richardson turned 76 on Tuesday.

Props to DON NEWMAN, GREGORY THOMAS, CHRISTOPHER LALANDE, MARK AGNEW, BOB PLAMONDON, MATTHEW CONWAY, MATT DELISLE, ROBERT MCDOUGALL and PATRICK DION.

Today’s question: On this day in history, LORD TWEEDSMUIR became governor general. He also wrote thrillers. What novel of his became famous after ALFRED HITCHCOCK adapted it into a movie?

Send your answer to [email protected]

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Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, Luiza Ch. Savage and Emma Anderson.