OCTOBER 2014 Back in the Black Stanley Hartt examines Finance Minister Joe Oliver’s options for dealing with the first surplus since 2007. Also in this issue: Elaine Depow analyzes Canada’s intellectual property regime; Ken Coates suggests a “problem-solver’s movement,” to examine issues involving Canada’s Aboriginal community; Aurel Braun calls on the Canadian government to fortify its military presence in the Arctic; ER doctor Brett Belchetz on healthcare reform; the MLI-inspired debate over subsidies for biofuels rages on; Brian Lee Crowley comments on the Scottish referendum, the fight over who speaks for Islam and the federal government’s complacency on military spending; and an excerpt from The Once and Future King, F.H. Buckley’s examination of the American Constitution. Published by the Macdonald-Laurier Institute Brian Lee Crowley, Managing Director, [email protected] PublishedJames Anderson, by the Macdonald-LaurierManaging Editor, Inside Policy Institute Brian Lee Crowley,Contributing Managing writers: Director, [email protected] James Anderson, Managing Editor, Inside Policy Thomas S. Axworthy ContributingAndrew Griffith writers: Benjamin Perrin Thomas S. Axworthy Tom Flanagan Paul Kennedy Geoff Norquay Donald BarryDonaldThomas Barry S. AxworthyChrystia FreelandStanleyAndrew H. GriffithHarttAudrey Laporte BenjaminMike PriaroPerrinBenjamin Perrin Ken Coates Guy Giorno Ian Lee Mike Priaro Donald Barry Stanley H. Hartt Mike Priaro Brian Lee CrowleyKen Coates Stephen GreenePaul KennedyMeredith MacDonald Colin RobertsonRichard Remillard Laura Dawson Andrew Griffith Janice MacKinnon Robin V. Sears Brian Lee KenCrowley Coates AudreyPaul LaporteKennedy ColinRoger Robertson Robinson Elaine Depow Stanley H. Hartt Linda Nazareth Munir Sheikh Brian Lee Crowley Audrey Laporte Roger Robinson Jeremy DepowCarlo Dade Carin Holroyd Ian Lee Dwight Newman Robin V. SearsAlex Wilner Carlo Dade Ian Lee Robin V. Sears Laura Dawson Janice MacKinnon Munir Sheikh Past contributors: Mary-Jane Bennett, Carolyn Bennett, Massimo Bergamini, Ken Boessenkool, Laura Dawson Janice MacKinnon Munir Sheikh Brian Bohunicky,Guy Giorno Scott Brison, Derek Burney, CatherineLinda Nazareth Cano, Michael Chong , DanAlex Ciuriak, Wilner Scott Clark, Philip Cross, CelineGuy Giorno Cooper, Andrew Davenport,Linda Peter Nazareth DeVries, Brian Dijkema, AlexDon Wilner Drummond, StephenJohn GreeneDuffy, Patrice Dutil, JosephGeoff Fantino, Norquay Daniel Gagnier, Dean Karalekas, Tasha Kheiriddin, JeremyStephen Kinsman, Greene Steven Langdon, BradGeoff Lavigne, Norquay Velma McColl, Ted Menzies, Robert P. Murphy, Peggy Nash, Jeffrey Phillips, John Thompson, Gil Troy, Michael Watts. Past contributors:Past contributors: Mary-Jane Bennett, Carolyn Bennett, Massimo Bergamini, Ken Boessenkool, Brian Bohunicky, Scott Brison, Mary-Jane Bennett, CarolynProduction Bennett, Massimo designer: Bergamini, Renée KenDepocas Boessenkool, Brian Bohunicky, Scott Brison, Derek Burney,Derek Burney,Catherine Catherine Cano, Cano,Dan Ciuriak, Dan Ciuriak, Scott Scott Clark, Clark, Philip Philip Cross, Cross, Celine Celine Cooper, Cooper, Peter DeVries,DeVries, Don Don Drummond, Drummond, John John Duffy, Duffy, Patrice Dutil,Patrice Joseph Dutil, Fantino,Joseph Fantino, Daniel Daniel Gagnier, Gagnier, Brad Brad CoverLavigne, Lavigne, photo: Tasha Tasha Peter Kheiriddin, Kheiriddin, Power Photography Jeremy Jeremy Kinsman, Steven Steven Langdon, Langdon, Velma Velma McColl, McColl, Ted Menzies,Ted Menzies, Robert Robert P. Murphy, P. Murphy, Peggy Peggy Nash, Nash, Gil Gil Troy, Troy, MichaelMichael Watts.Watts. 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The contents of the magazine are copyrighted, but may be re-produced with permission in print, and downloaded free of charge from the MLI website: macdonaldlaurier.ca but may be re-produced with permission in print, and downloaded free of charge from the MLI website: macdonaldlaurier.ca For advertising information, please email: [email protected] For advertising information, please email: [email protected] Subscriptions: $39.95 per year; single issue, $6.95. | ISSN 1929-9095 (Print) | ISSN 1929-9109 (Online) Subscriptions: $39.95 per year; single issue, $6.95. | ISSN 1929-9095 (Print) | ISSN 1929-9109 (Online) The Macdonald-Laurier Institute is grateful to Intuit Canada for their support of Inside Policy magazine. The Macdonald-Laurier Institute is grateful to Intuit Canada for their support of Inside Policy magazine. Inside Policy: 8 York Street, Suite 200, Ottawa ON, Canada K1N 5S6, PH; 613-482-8327 Inside Policy: 8 York Street, Suite 200, Ottawa ON, Canada K1N 5S6, PH; 613-482-8327 2 Inside Policy — The Magazine of The Macdonald-Laurier Institute 2 Inside Policy – The Magazine of The Macdonald-Laurier Institute 2 Inside Policy — The Magazine of The Macdonald-Laurier Institute insidepolicy [march].indd 2 14-04-01 10:00 AM insidepolicy [march].indd 2 14-04-01 10:00 AM Editor’s message Contents fter years of economic turmoil, Canada 4 What to do with the balanced has found itself in the enviable situation of budget dividend Stanley Hartt deciding how to handle that rarest of fiscal beasts,A an expected budgetary surplus. The Commons 9 Canada needs to be smarter on Finance Committee is now consulting widely on how Intellectual Property to take advantage of this opportunity. In this issue Elaine Depow of Inside Policy, Stanley Hartt lays out the options 12 Canadians love to call for inquiries. Why available to Finance Minister Joe Oliver as he attempts not get together and make a difference? to deliver the Harper government’s first balanced Ken Coates budget since 2007. Hartt advises Canada not to blow 14 Simple majority would have been a it all at once. terrible way to decide Scotland’s fate Also in this issue, Elaine Depow takes the federal government to task for a Brian Lee Crowley troublesome new intellectual property law, and MLI Senior Fellow Ken Coates 16 North American Defence, Arctic Security says Canadians should get together to work for solutions rather than calling for and Russian Imperial Delusions another inquiry in the case of missing and murdered Aboriginal women. Aurel Braun While many in the U.K. are relieved that Scotland voted not to separate, 22 The West has been sideswiped Brian Lee Crowley explains why a simple majority vote in the September referen- by Islam’s civil war dum would have been a terrible way to decide Scotland’s fate. Crowley argues that Brian Lee Crowley the Yes side would not have had a strong mandate even if it squeaked past the 50 Straight Talk on Canada’s ailing health percent barrier. 24 system with Dr. Brett Belchetz While Canada joins the rest of the world in anxiously watching events in Dr. Brett Belchetz Ukraine, foreign policy expert Aurel Braun calls on the Canadian government to take steps to counter the Russian threat to our own interests. And Brian Lee 32 Assessing Canada’s Biofuels Strategy (a debate by correspondence) Crowley argues that periods of relative global calm mustn’t lull Canadians into Letter from Scott Thurlow, President neglecting our military. Canadian Renewable Fuels Association In the latest instalment of MLI’s Straight Talk Q&A series, MLI discusses Response by Douglas Auld & Ross McKitrick medicare reform with Dr. Brett Belchetz, an ER physician who battles with the 44 Canada can’t be complacent about inefficiencies of Canada’s medical system every day on the front lines. its military spending In September, MLI hosted a launch of The Once and Future King by author Brian Lee Crowley F.H. Buckley. In an excerpt from the book, Buckley dispels a number of America’s Why Canadian democracy is superior founding myths. He argues that Canada’s democratic system is superior, contrary 46 F.H. Buckley (book excerpt) to the closely held beliefs of many on both sides of the border. Finally, in June 2014, MLI published a paper by University of Guelph professors Ross McKitrick and Douglas Auld which made damning conclusions about the costs and benefits of Canadian programs for subsidizing the production of biofuels. The authors reported that if the primary goal was to reduce greenhouse gas emissions, these programs have been an expensive failure. The response by W. Scott Thurlow of the Canadian Renewable Fuels Association was swift, accusing the authors of errors and challenging the report’s findings. Auld and McKitrick have defended their work, which was thoroughly peer reviewed according to MLI’s standards, and which they steadfastly stand by. Readers can decide for themselves. The full exchange is reprinted in this issue. James Anderson, Managing Editor Inside Policy – The Magazine of The Macdonald-Laurier Institute 3 Thinkstock What to do with the balanced budget dividend Stanley Hartt reviews the options and pressures facing the federal government as it considers how to manage anticipated surpluses over the coming years. Hartt suggests that the governing Conservatives would