A ‘bold action’ moment

A daily look inside Canadian politics and power.

Aug 17, 2023 View in browser   By Kyle Duggan and Zi-Ann Lum Send tips | Subscribe here | Email Kyle | Follow Politico Canada Thanks for reading Ottawa Playbook. Let's get into it. In today's edition: → Are the stars finally aligning to tackle the housing crisis? → Who the government just delisted from sanctions. → A blast from the not-to-distant parliamentary past. DRIVING THE DAY STAGGERING CRISIS: ‘SOLVABLE’ — In four days, federal Cabinet ministers huddle in P.E.I. with an eye to their fall agenda. Ministers eager to get a head start on strategizing on how to deal with one of Canada’s major economic woes could do worse than by brushing up on a Big Deal report that charts a path for Canada out of its rental-housing crisis. Co-author MIKE MOFFATT has been busy doing the media rounds pitching a new housing accord. The founding director of the PLACE Centre at the Smart Prosperity Institute tells Playbook the country’s affordability problem is a giant hole decades in the making that’s going to be a huge climb to get out of. “But there are solutions,” he said. “There is a pathway out and this is a solvable problem.” His recipe calls for federal leadership. And two million purpose-built rental units in seven years. The solution would go right to the heart of how the whole housing problem started, by tackling the lack of coordination among different levels of government. Ottawa’s first job should be to convene every key stakeholder, he said. The necessary ingredient for it to work: Political will. A missing ingredient, until recently. — What’s changed: Recent polling has shown concerns about issues around housing affordability and availability rising. Multiple levels of government have faced pressure and blowback over housing issues. Just flip through the headlines. JUSTIN TRUDEAU’s comments on jurisdiction. DOUG FORD’s sudden Greenbelt scandal. “We've just had created for us the conditions for bold action, which might not have existed a year or two ago,” Moffatt said. “Or even two months ago.” Get it right and the prescription could slay the whole debate over which jurisdiction housing falls under, since every order of government has a set of policy tools that applies. — Obstacles: Money. And ANITA ANAND’s recent marching orders as Treasury Board President to cut C$15 billion. The other big hurdle: Actually delivering. — Winners and losers: If anyone tells you housing is always a zero-sum game with first-time homebuyers and renters on one side and homeowners on the other, Moffatt said that just shows a lack of creativity. For example, there are seniors in large, single-detached homes in the suburban 905 looking to downsize, cash out their property and pick up some extra retirement savings while not leaving their neighborhood behind. They need more housing in existing neighborhoods — and that would also help first-time homebuyers. — Crisis timeline: The broader housing problem will span multiple election cycles. The Canada Mortgage and Housing Corp. says Canada needs 5.8 million homes by the end of 2030 to restore affordability. “That’s a big, hairy, audacious goal,” Moffatt said. “With a wartime-like effort, it is achievable.” — Pressure is firm: Wednesday’s CMHC stats, showing 254,966 unit starts in July, perked up ears all over the political spectrum. The Conservatives shot out a release that said the numbers show the pace is too slow for the Liberal government to “come anywhere close” to the 5.8-million-home target. — Ominous warning: According to mortgage broker RON BUTLER, the crisis could get even worse if there are fewer starts over the coming years because interest rates are running high. “Every time you hear a politician tell you about building more homes or see them point at shiny new programs like ‘The Housing Accelerator Fund’, understand this: Politicians don't build houses,”he posted on social media. — On the table: Old ideas. Housing Minister Sean Fraser was asked if the Liberals might revive CMHC’s former mandate to build homes, dating back to the post-war era. “The freshly minted housing minister said that was among the ‘conversations’ happening right now in the government,”writes Global News reporter CRAIG LORD. — Other troubling signs: According to Environics pollster ANDREW PARKIN,concerns about household debt are rising — and have reached much higher than they were in the early aughts. “Concern about debt is rising among people who otherwise should be feeling quite secure,” he Substacked this week. “That’s hardly a good backdrop for an election campaign.” For your radar NWT WILDFIRES — Prime Minister Justin Trudeau spoke with Northwest Territories Premier Caroline Cochrane about the out-of-control wildfires inching toward Yellowknife that have plunged the territory into a state of emergency. The two discussed the Canadian Armed Forces deployment and other federal support, according to a readout from the prime minister’s office. Thousands have evacuated from their homes as 230 wildfires rage on, scorching more than 20,000 square kilometers of earth and savaging the small town of Enterprise. In an interview with APTN News, APRIL BROEKAERT-GLACIAR, who evacuated from Hay River with her family earlier this week, painted a vivid picture of what it was like: “You could feel the heat inside the vehicle. If I rolled the windows down, I could hear the fire and it was very unnerving. And there was so much flame still ahead of us. We didn't really know what we were going to drive into.” ALSO FOR YOUR RADAR MIRROR, MIRROR — Despite worries about the cost of living and housing affordability at home, a majority of Canadians still expect Canada to play a role in international development, according to a new poll today. The Canadian Partnership for Women and Children’s Health poll conducted by Abacus Data found 81 percent of surveyed Canadians support government aid for developing countries — matching pre-pandemic levels of support. — Noteworthy context: 94 percent of Canadian respondents said they were concerned about the rising cost of living; 85 percent also expressed worries about housing affordability. CanWaCH CEO JULIA ANDERSON said in a statement the point of the poll was to gauge Canadians’ perception around “global citizenship.” Recent years have served twists in the form of a pandemic, superpower proxy war and ensuing economic challenges around the world. Nevertheless, 83 percent of respondents said it’s important for Canada to lead on aid to improve the health of women and children. “It tells me that Canadians have a deep understanding of what’s at stake beyond our borders, and what it means for Canada to step up,” Anderson said. Talk of the town HOW DO YOU DO, FELLOW NERDS — There’s a new tourist attraction in town and it’s a 45-minute multimedia exhibit that promises a “360-degree journey” through Centre Block. “Parliament: The Immersive Experience” opens to the public today at 211 Sparks St., promising “immersive sound, narration and visual effects” — and spotlight on decisions and debates inside the building. Some hon. members: Oh, oh! TODAY'S HIGHLIGHTS — Prime Minister JUSTIN TRUDEAU is on vacation. — NDP Leader JAGMEET SINGH is in Toronto for a closed-door morning meeting with the International Brotherhood of Electrical Workers and plans for a 12:15 p.m. media availability to address affordable housing for students. 1 p.m. (10 a.m. PDT): Minister of Citizens’ Services TERRY BEECH will hold a media avail in Burnaby, British Columbia, to talk about digital service improvements at Service Canada. PAPER TRAIL SANCTIONED, UNSANCTIONED — Canada has removed IGOR VIKTOROVICH MAKAROV from its sanctions list after the Russian billionaire provided evidence he hasn’t lived in Russia since 2013 and has since renounced his citizenship. The notice was published Wednesday in Canada Gazette Part II. The federal government said the former pro cyclist and honorary president of the Russian Cycling Federation was added to Canada's sanctions list based on evidence he’s a Russian national. Global Affairs Canada said that because he no longer holds Russian citizenship, he doesn’t meet nationality criteria to remain on the sanctions list. — Lesson learned: Canada has introduced regulatory changes to its Special Economic Measures Act to close loopholes after listed individuals and entities found “increasingly creative ways” to circumvent sanctions — oligarchs with dual or multiple citizenship, for example. “The amendments seek to close a circumvention loophole whereby renunciation of citizenship by a listed person would remove the regulatory basis for maintaining a listing regardless of their actions,” reads the notice. Ottawa did not seek public consultation on the regulatory change, citing urgency and that it “would not be appropriate.” MEDIA ROOM — Former premiers JASON KENNEY and KATHLEEN WYNNE joined AMANDA LANG on The Hub to discuss governance, state capacity, and unpopular decisions. — British PM RISHI SUNAK has vowed to reduce the numbers of asylum seekers making the perilous journey across the English Channel. POLITICO looks at the pressures on Britain’s asylum system. — STEVEN GUILBEAULT told the National Observer’s JOHN WOODSIDE he’s headed to China at the end of the month for a China Council for International Cooperation on Environment and Development meeting. The minister offered a preemptive defense, knowing he’s a “lightning rod” to critics: “We can't solve climate change, you can't solve the international biodiversity issue, without working with countries like China.” BRIAN LILLEY’s take: “There truly is no length that the Trudeau Liberals won’t go to cozy up to China.” — ANJA KARADEGLIJA’s latest on Meta removing news links: “ ‘Inching toward life support’: Small outlets struggle with Meta’s news blocking” — Feds’ anti-racism work is a thin gruel, ERICA IFILL writes with a nod to an Immigration, Refugees, and Citizenship Canada (IRCC) survey shared in Tuesday’s Ottawa Playbook. — MIKE LINDBLOMwrites in the Seattle Times about a congressional effort to petition Transportation Secretary PETE BUTTIGIEG for funding for cross-border high-speed rail: “Democrats in Washington’s congressional delegation are asking the federal government for $198 million to help plan a route between Vancouver, B.C.; Seattle; and Portland.” — The Functionary is back from summer break and features KATHRYN MAY on the loss of HUGH SEGAL and RICHARD DICERNI: “An era of public service that’s slipping away.” Playbookers Birthdays: HBD to former MP MARTHA HALL FINDLAY. Spotted: Former Cabmin TONY CLEMENT at the swearing-in of new MP ARPAN KHANNA. … Former PM JEAN CHRÉTIEN, planting a tree on the grounds of Government House in St. John’s. Alberta Minister and MLA DALE NALLY with a C$16,025 donair.  Conservative MPs tweeting an interview with former finance minister BILL MORNEAU … A bunch of federal Ontario Liberal MPs taking a break from their caucus meeting, posing in front of the Side Launch Brewery in Collingwood, Ont. Canada’s Ambassador to Sweden JASON LATORRE meeting with Sweden’s ambassador-designate to Canada, SIGNE BURGSTALLER. Movers and shakers: DAVID PRATT is running for national chief of the Assembly of First Nations … ALVIN FIDDLER returns as Nishnawbe Aski Nation grand chief. International Trade Minister MARY NG’s longtime chief of staff JASON EASTON is leaving his post, citing a desire for change. Media mentions: CORNÉ VAN HOEPEN is now a senior editor with Yahoo Canada … CBC News reporter OLIVIA BOWDEN adding TV to her resume, joining the broadcaster’s Toronto enterprise team. ÉRIC GRENIER and PHILIPPE J. FOURNIER are launching a polling podcast, aspiring to be the nerdiest podcast in Canada — available in both French and English. PROZONE If you’re a subscriber, don’t miss our latest policy newsletter: U.N. flags OECD global tax play. In other Pro headlines: — 'Unprecedented' water crisis to hit the globe, data shows. — Canada's environment minister accepts invite to China. — Extreme heat is on everyone's lips. Too bad it can't get political traction. — Tech lobbyists are running the table on state privacy laws. — House push to break up Silicon Valley giants is over, for now. TRIVIA Wednesday’s answer: The De Havilland Canada DHC-2 Beaver first flew Aug. 16, 1947. “The Beaver was sturdy, reliable and able to take off and land on short lengths of land, water and snow,” The Canadian Encyclopedia notes. “It has been called the best bush plane ever built.” Props to ALEX WELLSTEAD, ANDREW FITZPATRICK, JIM MUNSON and ROBERT MCDOUGALL. Today’s question: On this date In 1940, Prime Minister Mackenzie King and U.S. President Franklin Roosevelt met in New York state. What was established out of that confab? Send your answer to ottawaplaybook@politico.com Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Playbook can help. Contact Jesse Shapiro to find out how: jshapiro@politico.com Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, Luiza Ch. Savage and David Cohen.   Follow us on Twitter Nick Taylor-Vaisey @TaylorVaisey Sue Allan @susan_allan Maura Forrest @MauraForrest Kyle Duggan @Kyle_Duggan Zi-Ann Lum @ziannlum POLITICO Canada @politicoottawa   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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