www.policymagazine.ca March – April 2014 11 Canadian Politics and Public Policy Balancing Act Jim Flaherty $6.95 September/OctoberVolumeMarch/April 2 – Issue20132014 2 2 R-D-S-P-e-c-t. That’s how BMO spells respect. If you or someone you know has a disability, the BMO® Registered Disability Savings Plan (RDSP) can help, by providing long-term financial security. Eligible individuals can receive benefits of up to $3,500* per year in Canada Disability Savings Grants and $1,000** per year in Canada Disability Savings Bonds. Invest for a brighter future, today. To learn more visit bmo.com/rdsp or call 1-800-665-7700 to speak to a BMO investment professional. ®Registered trade-marks of Bank of Montreal, used under licence. RDSPs are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. *Annual contribution of $1500 and based on family income or income of beneficiary if over age of majority. Policy**Based on family income or income of beneficiary if over age of majority. 3 pain is MY LIFE MY MEDICINE is my hope I was born with a condition known as neurofibromatosis that has caused tumours to grow on my brain. Battling these tumours has left me with pain throughout my entire body. It’s all I have My name is ever known, it’s my life, and it’s exhausting. I try to lead a normal Steven Croucher life - going to school, playing sports, just like any other 19 year I’m 19 years old I’m from Montreal old. But the pain means I have to work harder to focus, I get tired, and I live with constant neuropathic pain and I need more sleep. My medicine is really good — but it could be better. For now I’m waiting, hoping that someday someone will discover a new medicine to stop the pain for good. www.canadapharma.org/hope Canada’s Research-Based Pharmaceutical Companies Making Canada Better 2 In This Issue 3 From the Editor: Balancing Act Canadian Politics and Public Policy EDITOR L. Ian MacDonald [email protected] ASSOCIATE EDITOR Lisa Van Dusen [email protected] CONTRIBUTING WRITERS Thomas S. Axworthy Andrew Balfour Brian Bohunicky Derek H. Burney Catherine Cano Finance Minister Jim Flaherty and Prime Minister Stephen Harper on budget day. PMO photo Margaret Clarke Celine Cooper COVER PACKAGE Fen Osler Hampson Q&A: A Conversation with Jim Flaherty Daniel Gagnier 5 Patrick Gossage 9 Kevin Lynch and Karen Miske Brad Lavigne Budget 2014: Through a Telescope, not a Microscope Kevin Lynch 15 Douglas Porter Jeremy Kinsman Ottawa’s Deficit: Making a Mogul out of a Mountain Velma McColl 19 Chrystia Freeland Geoff Norquay Not good enough: Crisis Aversion as Economic Policy Zach Paikin 22 Peggy Nash Robin V. Sears A Balancing Act on the Backs of Canadians Gil Troy 25 Robin V. Sears WEB DESIGN First Nations Education: Anatomy of a Breakthrough Nicolas Landry Jack Hughes [email protected] 28 The Harper Rosetta Stone GRAPHIC DESIGN Margaret E. Clarke, David B. Nicholas, Herb Emery and Carolyn Dudley AND PRODUCTION 30 Opportunity and Success for Youth and Adults With Monica Thomas Autism Spectrum Disorder [email protected] Policy DOSSIER Policy Policy is published six times annually 33 Geoff Norquay by LPAC Ltd. The contents are Trudeau’s Senate Gambit: Shock and Awe in the Name of copyrighted, but may be reproduced Less Democracy with permission and attribution in 35 Adam Dodek print, and viewed free of charge at Amending the Constitution: The Real Question Before the the Policy home page at Supreme Court www.policymagazine.ca. Printed and distributed by St. Joseph FEATURES Communications, 1165 Kenaston Street, Ottawa, Ontario, K1A 1A4 38 Thomas S. Axworthy Special thanks Jim Coutts, an Appreciation: First in Class of Political Advisers to our advertisers. 42 Michael Coates Foreign Investment: Another Year of Surprises Policy 3 From the Editor / L. Ian MacDonald Balancing Act elcome to our cover the- ment is balancing the books on the youth as productive members of our matic on the 2014 budget, backs of Canadians. “Jobs, prosperity society and economy. W a balanced one in all but and long-term growth were all put on name. If the $3 billion contingency hold,” she writes “for the sake of one n a Policy Dossier we look at the reserve were set aside, the Conserva- artificial goal—budgetary balance.” hot-button issue of Senate reform. tive government would be in a $100 Freeland writes: “There’s one impor- I Geoff Norquay looks at Justin million surplus at the end of this fis- tant takeaway from the 2014 bud- Trudeau’s gambit of expelling Liberal cal year, and is forecasting a $6.4 bil- get—the Conservative government senators from caucus, even though lion surplus, including the reserve, has no big ideas for the Canadian the Liberal Party’s constitution ex- in 2015. Which happens to be an economy, and doesn’t believe we plicitly states that senators are au- election year. need them.” tomatically members of caucus and ex-officio delegates to conventions “I think there will be some difficult Looking at the Canada Job Grant, like the one in Montreal in February. decisions next year because differ- the centrepiece of the Harper govern- Norquay finds Trudeau’s move bold ent people have different ideas about ment’s labour market strategy, Jack but high-handed. what should be done with the excess Hughes sees it as an object lesson in money,” Finance Minister Jim Fla- the PM’s belief about the division And the University of Ottawa’s Adam herty told Policy in an extensive Q&A of powers between Ottawa and the Dodek, a leading constitutional law- at his Parliament Hill office. Also provinces. He sees the Job Grant as yer, examines Stephen Harper’s ref- asked about his health, an issue over “the Harper Rosetta Stone”. erence of the Senate reform issue to the last year, Flaherty said he was the Supreme Court of Canada. “It is Robin Sears looks at the break- feeling “much better”. about how, and perhaps if, we can through between Stephen Harper amend our Constitution.” Kevin Lynch and Karen Miske of and Assembly of First Nations Chief BMO Financial Group examine the Shawn Atleo resulting in the First In our Features section we offer two budget “through a telescope, not a Nations education agreement, fund- articles. In the first one, Tom Axwor- microscope”. In other words, they ed at $1.9 billion in the budget just thy offers a touching and true tribute took a longer view; that budgets days after it was announced on Feb- to Jim Coutts, his close colleague and matter, even boring budgets, in how ruary 7. It came together under other predecessor as principal secretary to they address macro-economic and First Nations chiefs in Ottawa while Prime Minister Pierre Trudeau from global financial issues. Douglas Por- Atleo was out of town—attending 1975-81. On any list of outstanding ter, chief economist of BMO Capital Nelson Mandela’s state funeral in heads of PMO, Coutts is very near Markets, provides a fiscal framework Africa as a member of the Canadian the top. A True Grit, in every sense readout on the budget, and a look delegation that also included four of the term. ahead to budgetary balance and sur- former prime ministers. plus next year. And Mike Coates looks at the issue of Margaret Clarke and her University foreign investment in Canada, and Critiques are important in any dis- of Calgary colleagues (Herb Emery, notes it was down significantly in cussion of budgets, and we are de- David Nicholas and Carolyn Dud- 2013. He attributes the investor chill lighted to offer two opposition takes ley) consider the budget initiative partly to the government’s wariness from NDP Finance Critic Peggy Nash for vocational training for youth of state owned enterprises (SOEs), in- and Chrystia Freeland, the new Lib- on the Austistic Spectrum Disorder vesting in the Canadian energy sec- eral MP from Toronto Centre and (ASD) That’s one Canadian in 88, tor, particularly the oil sands. He also one of Justin Trudeau’s senior eco- and their families. While it’s not a cites national security as a politically nomic advisers. lot of money, it’s an important rec- useful if nebulous filter for unwanted Nash writes that the Harper govern- ognition that there’s a place for ASD foreign acquisitions. March/April 2014 B:8.75” T:8.5” S:7.5” B:11.25” S:10” T:11” The weld — A spark. A connection. Designed to assemble. To manufacture. To build. Cars, boats, buildings, cities, economies, livelihoods. The weld. Simple. Yet so essential. 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