CBAA Check Thrust Election 2021: What's Next?
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1 2 3 4 Results + Party Assessing the Staying on Current State of Performance, Sector: Government’s Play Priorities + Who Headwinds + Radar to Watch Tailwinds 2 © Hill+Knowlton Strategies
Electoral Results LPC 157 2019 LPC 157 2021 Liberal 157 Liberal 159 121 CPC 121 Conservative 121 Conservative 119 BQ 32 BQ 32 BQ 32 NDP 25 NDP 24 NDP 24 Greens 3 Greens 2 GPC 3 Independent 1 Independent 1 IDP IND 1 4 © Hill+Knowlton Strategies
Current state of play: 6 weeks post-election • A slow start to the 44th parliament ▪ A gender-balanced cabinet has been • Ministerial offices are naming Chiefs of Staff and beginning to staff up appointed. • The Speech From the Throne will occur on November 22 or 23 ▪ The current cabinet has 38 ministers. • The House will be in operation for only four weeks before breaking until January 31, 2022 ▪ New parliamentary secretaries and • In those four weeks we have a Speech From the Throne, the possible committee members to passage of a second budget implementation bill, a Fall Economic follow. Statement and the re-constitution of the Finance Committee ▪ Critics for the CPC and the NDP have been • A more influential NDP? announced. ▪ With Liberals and the NDP in discussions for a sturdier and longer-lasting ▪ New MPs, Ministers and agreement for the Liberals to govern, the NDP's influence on important staff are being briefed. guiding documents like the Throne Speech will increase compared to more acrimonious minority parliaments of the past. ▪ Senior department officials and PCO will act as important advisors. 5 © Hill+Knowlton Strategies
What’s coming down the line Opening of Parliament, Cabinet Appointments Speech from the Throne Budget 2022 October 26th, 2021 November 22nd, 2021 Spring Fall Economic Statement Premiers Meeting Late November – Early December Parliamentary Break October 5-7 December 20 Return of Parliament Committee January 31, 2022 Election Day Constitution September 20 MP Swearings-in, Parliamentary December Secretary & Critic Appointments End of October – Early November Introduction of Priority Legislation Late November – December 6 © Hill+Knowlton Strategies
Liberal Party of Canada The Liberals finished in a similar position to 2019, shy of a majority. They Government legislation that did not will need the support of either the NDP pass in the last Parliament will see or the Bloc to move legislation forward. rapid re-introduction. Bills on privacy, broadcasting and online harms will be on the fall legislative agenda. The tone set by Trudeau’s victory speech and “clear mandate” interpretation suggests he plans to govern as though he has a majority, securing confidence on a case-by- Given the concentrated opposition of case basis. the West, the Liberals will have to emphasize balance of the economy He does not intend to make any and the environment. formal agreement with any party. The next steps in ending the pandemic will be the focus of the government in the Given the financial readiness of many near-term, both from a public health and of the opposition parties, this minority an economic perspective. Efforts to government is expected to last the increase vaccinations and to help average 18-30 months before another businesses weather a possible fourth election. wave this winter will occupy the government. 8 © Hill+Knowlton Strategies
Conservative Party of Canada Mr. O’Toole’s legislative priorities will largely focus on job creation, The Conservatives won the popular strengthening anti-corruption laws and vote for the second election in a row – establishing strong mental health nearly sweeping Alberta and policies. He will remain one of the Saskatchewan – but were unable to only and likely most vocal champions make meaningful advances in Atlantic of Canada’s natural resources and Canada, Ontario and Quebec. energy sectors in Parliament, hoping to continue to earn the trust of Western Canadians. After coming up short of the Conservative's 2019 results, O'Toole will be positioning The Conservatives will control many himself to hold on to the top job, while of the parliamentary committees in insiders weigh the prospect of another the new session, giving them leadership race and potential candidates increased influence on their agendas begin to jockey for position. and opportunities to thwart or stall government priorities. In his day after election day remarks, O’Toole announced a formal review will be launched to examine what needs to be done differently in order to win in the next general election. Mr. O’Toole’s sales pitch to Conservative members was that he would deliver the GTA. At least 4 ridings across Ontario and in His performance saw a drop of one 905 seat Alberta would have likely elected a and no breakthrough in the 416. Insiders Conservative MP if not for the PPC, and so expect strong emphasis put on legislation to Mr. O’Toole will feel a lot of pressure from attract key demographics in these areas. within to address this in a meaningful way. 9 © Hill+Knowlton Strategies
NDP The NDP picked up one seat total – with 25 seats, they hold enough to prop up the government on a vote-by-vote basis but won’t be making a formal agreement with the Liberals. The NDP still hold a balance of power that will given them influence on an issue-by-issue basis. Will look to negotiate advances on: ▪ Implementing a wealth tax on the ultra-rich will be Singh’s number one priority ▪ Implementing national, universal Singh was successful in a pharmacare and dental coverage leadership review at the NDP’s for Canadians earning less than 2021 convention and led all $90k leaders in likeability throughout the ▪ Ending for-profit long-term care election. Despite not making big ▪ Affordable housing gains, his leadership is safe for the ▪ Climate change moment. ▪ Cell phone and internet prices Singh’s success will now be measured by his ability to move the NDP’s agenda forward + extract concessions from the Liberals. Expect the NDP to be largely constructive during the next parliament, but use what leverage they have to push their progressive vision. 10 © Hill+Knowlton Strategies
Bloc Québécois The Bloc campaign gained unusual The Bloc gained 2 additional seats, momentum after the English language will see Mr. Blanchet likely remain as debate where Mr. Blanchet was asked a Leader, and a continuation of 3rd about certain laws in Quebec that some party status.. consider discriminatory. This ignited a fleury of news stories and comments by other politicians, including Premier Legault. It is likely this will remain part of the discourse surrounding the Bloc. The party’s single focus on promoting Quebec interests was not enough to hold the balance of power that Mr. Blanchet spoke frequently of. Blanchet has committed to cooperate on any issue that is in the interest of Quebec In 2019, Blanchet tried to position and expects Parliament to work – though the Bloc as an extension of the it is not his party’s responsibility. CAQ Provincial Government. Premier Legault’s endorsement of the Conservative Party in Quebec, came as a surprise to Blanchet who was counting on his party’s The clear mandate the Bloc received association with the popular CAQ. means there will be no compromise on: ▪ Any plan to move oil across the province ▪ Language rights ▪ Quebec’s commitment to the secularism of public institutions 11 © Hill+Knowlton Strategies
Expected Early Priorities The minority Liberal government will look to: ▪ Finish the fight against COVID-19 and address issues in the healthcare system. ▪ Reach childcare agreements with all provinces, increase federal paid sick days, and complete affordable housing projects. ▪ Reintroduce bills from the previous parliament that died when the election was called, including Bill C- 10 and the Ban on Conversion Therapy. ▪ Implement their ambitious commitments to the environment and climate change. Including strengthening the Canadian Environmental Protection Act, putting emission reduction targets into legislation, and implementing the Just Transition Act. ▪ Follow through on promises pertaining to Indigenous reconciliation and racial justice, such as police practice reforms and the $14 billion in funding to various programs for Indigenous peoples and communities. 12 © Hill+Knowlton Strategies
Political Environment ▪ Political focus will remain on modest legislative agendas, strategic consensus building, greater co-operation with the provinces. ▪ While another federal election likely within one or two years, the NDP and Liberals may reach an agreement on support that is longer lasting. ▪ Regional divisions/polarities will remain a factor, specifically an increasingly distressed Alberta and Western Canada. ▪ Federal/provincial tensions are still heightened over health care transfers (funding). ▪ Ontario and Quebec will have elections in 2022, meaning a surge in political activity and an emphasis on the importance of public opinion for Conservative and Liberal branding. 13 © Hill+Knowlton Strategies
Omar Alghabra – Minister of Transport Alghabra is passionate about In a cabinet shuffle that was a big empowering new Canadians shake-up, leaving Alghabra at and this as an issue on which Transport demonstrates the PM’s trust you might find common ground in him to execute on the file Transport holds many of the key Representing Mississauga Centre – policy levers alongside other home to Pearson International – departments, so collaboration will be since 2015, Alghabra is familiar with key the aviation sector and topline issues Omar will keep his Chief of Staff, Mike Maka and retain much of his other staff creating continuity in the office. There is much turnover across other offices, so again, this demonstrates the trust PMO has in Omar and his team 14 © Hill+Knowlton Strategies
Jean-Yves Duclos, Minister of Health Jean-Yves Duclos is brand new to the health portfolio. His most Related to his interest in policy, recent cabinet position was Duclos is numbers-driven and can President of the Treasury Board be persuaded by compelling data A former economist, Jean-Yves Duclos is known to be very policy- minded – nicknamed "the professor" Overseeing the Public Health by his Cabinet colleagues, who Agency of Canada, Duclos will be regard him highly key to engage with on issues related to airport re-opening It is yet TBD how Duclos will split responsibilities with Carolyn Bennett, the Associate Minister 15 © Hill+Knowlton Strategies
Regional Development Agencies (RDAs) Pascale St-Onge, Helena Jaczek, Harjit Sajjan, Ginette Dan Vandal, Patty Hajdu, Quebec Southern Pacific Petitpas Taylor, The North + Northern Ontario Canada Atlantic Canada Prairies Ontario • Key voices for regional economic development • Will be responsible for programs such as the Regional Air Transportation Initiative + the Aerospace Regional Recovery Initiative © Hill+Knowlton Strategies 16
Melissa Lantsman – Shadow Minister for Transport Despite being a rookie MP, expect Melissa to make a Representing Thornhill, Melissa is one of big impact and rise quickly few Conservatives elected in the in the through the ranks. metro-Toronto region. As a former government relations professional, expect Melissa to be keen to engage with stakeholders, but ensure you come prepared. Melissa is a former staffer with Joe Oliver and a former war roomer for Doug Ford. If you’re looking to make an impact with Melissa, know the issue closest to her heart is mental health. Melissa is a former Vice President of Public Affairs at H+K and a former political pundit. 17 © Hill+Knowlton Strategies
Assessing the Sector: Tailwinds + Headwinds 18 © Hill+Knowlton Strategies
Assessing the aviation sector: Tailwinds ✓ Attention: The pandemic has shone a spotlight on how essential aviation is to Canada’s economy and the challenges the sector faces ✓ Alignment: Both government and the aviation sector are aligned on the need to take action on climate change – this presents significant opportunities for collaboration ✓ Funding: Government is delivering funds adjacent to aviation and that indirectly benefit the sector, like the Regional Air Transportation Initiative + the Aerospace Regional Recovery Initiative 19 © Hill+Knowlton Strategies
Assessing the aviation sector: Headwinds X Sector reputation X The Luxury Tax X International flights + regional airports X Clarity on vaccine mandates + enforcement X Falling off of government’s radar 20 © Hill+Knowlton Strategies
Staying on Government’s Radar 21 © Hill+Knowlton Strategies
Staying on government’s radar to advance sector issues • Leverage provincial and federal cooperation, particularly in Quebec • Leverage departmental champions – they are briefing ministers presently • Activate your local MPs – in a minority parliament MPs become much more powerful • Working with the opposition and with the Senate • Activate interested parliamentarians – H+K is currently scoping out the establishment of an aviation caucus • Build public support – cultivate a ‘halo effect’ • Sustainability | Contributions to vulnerable populations • Policy initiatives that address the urban/rural divide (e.g. Nutrition North) 22 © Hill+Knowlton Strategies
23 © Hill+Knowlton Strategies
Appendix I: Minority Government Opportunities 24 © Hill+Knowlton Strategies
Working in a Minority Parliament Power is at the centre, but the opposition wields significant influence. What that might mean in practice: ▪ Broad directions will still be set by ‘the Leadership’ – PMO, key advisors, key ministers – but minority parliaments offer more opportunity for legislation to be further shaped and ▪ Building out relationships amended by the opposition. wider, across parties, and across chambers. Does one party hold a ‘balance of power?’ ▪ Crafting targeted messaging that can ▪ In minority parliaments the Opposition is much more powerful and depending on the composition of seats and formal or informal coalitions, one party may hold the ‘balance of appeal to specific parties, power,’ wherein their support or opposition for legislation will be essential to its passing. including opposition. ▪ More attention and Committees take on an enhanced role. investment of time in committees – monitoring, ▪ Committees are much more powerful in minority parliaments as their leadership (Chairs) submitting briefs, and agendas are largely driven by the opposition. This allows them to invite Ministers and appearing as witness, senior staff as witnesses, compel government documents, slow the progress of legislation and drive media narratives based on testimony. etc. ▪ Consider how individual Individual MPs are more influential. MPs can be activated, to either act as champions ▪ In minority parliaments, individual MPs become more influential, and the prospect of for your issues, or to passing private members’ bills is enhanced. sponsor a private member’s bill. An enhanced role for the Senate. ▪ Identifying and ▪ The Senate has been a key driver in the passing of legislation and will continue to be in a leveraging cross-party minority context. Understanding the relationships that shape its power structures is crucial. caucuses. 25 © Hill+Knowlton Strategies
Minority Opportunities ▪ Opposition can extract concessions from government as Stakeholders will need to consider conditions for support. ▪ Deals will be relationships with opposition as equally brokered. Opposition important as those with government. parties will partner on an issue-by-issue basis to obstruct government and the government will partner in select Opposition could be a significant ally circumstances, (the reverse is equally true) – they will compromising to push legislation forward. amend government legislation which is ▪ Budget bills will continue to be omnibus an important opportunity for which makes the pre- budget process that stakeholders. much more important. ▪ If the budget is defeated, so is the government. 26 © Hill+Knowlton Strategies
Parliamentary Committees ▪ In a minority government, there are more Opposition than government MPs in the House; the same will apply in committees. ▪ Opposition will control many committees and will influence the agenda. ▪ Having effective control in committee, the Opposition can choose witnesses, pass motions, introduce subject matter studies and amend legislation. It is also worth noting that committees can compel government documents (emails, briefing notes, correspondence) as they see fit. ▪ Committee reports will often be at odds with government policy. 27 © Hill+Knowlton Strategies
Private Member’s Bills ▪ Many government MPs are not eligible to sponsor PMBs so the Opposition has mathematically 2-3x opportunity to sponsor a PMB than does a government back- bencher. ▪ The right PMB can be passed easily in a minority government, especially if it can do two things: – Pre-empt the government’s own legislation on the same topic. – Wedge the government on an issue they are reluctant to act on. 28 © Hill+Knowlton Strategies
Role of the Bureaucracy ▪ Senior public officials have already begun working on interpreting platform commitments into government policy. ▪ Departments need to be prepared to respond rapidly to Opposition amendments and requests for documents from committees. ▪ Opposition will expect to have increased access to ministers, staff and briefings on issues of interest. ▪ Continued readiness for potential change in government or election. 29 © Hill+Knowlton Strategies
Potential for Instability ▪ Votes on the Speech from the Thone, Estimates, and the Budget are inherently votes of confidence. ▪ For leaders, internal party leadership reviews will present an opportunity for disappointed party members to organize against their continued role. 30 © Hill+Knowlton Strategies
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