Thursday, February 14, 2019

It's About Quebec


When you work through the sound and fury, Alan Freeman writes, the SNC-Lavalin Affair is all about Quebec:

SNC-Lavalin is one of those homegrown success stories. Its predecessor firm built the Manic 5 dam for Hydro-Quebec. After merging with Lavalin, it built the James Bay hydro project, Highway 407 near Toronto and Vancouver’s Canada Line plus many big projects abroad. It’s currently building the new federally-owned Champlain Bridge across the St. Lawrence River.
The Quebec desire to protect corporate “jewels” like SNC extends to these companies even when they screw up. Bombardier may have lost gobs of taxpayer money on the C Series aircraft before giving it away to Airbus and may still have huge problems acting as a reliable supplier of mass transit systems to customers in places like New York, Toronto and Switzerland, but God forbid anybody who puts down the company.
The same goes for SNC-Lavalin. The company’s name has been caught in a swirl of corruption cases for years, involving the McGill Hospital in Montreal, the Federal Bridge Corp., Elections Canada, the African Development Bank and the list goes on. But of course, I need to mention here that SNC sees itself as a victim throughout this whole affair. SNC insists, with a straight face, that all of these cases have nothing to do with the company and were only the work of a few rogue former employees (including a just-convicted former CEO).
The Libya case is the one exception, where the company itself is facing criminal charges, a trial it desperately wants to avoid because if found guilty, it will be hit with a multi-year a ban on federal contracts.

Navigating the politics of my home province has always been a case of dealing with a Rubic's Cube. Getting all the constituencies in line -- and getting them to stay in line -- is a Herculean challenge. These days that challenge is represented by newly elected Quebec premier Francois Legault:

Legault, a former separatist who cares little for the niceties of federalism, knows he’s got Trudeau where he wants him and is shameless. He actually wrote up a political ransom note of sorts, listing his asks from Trudeau and other federal leaders in the run-up to the fall election: more power over immigration; handing over administration of federal income tax to Quebec; $300-million for the costs of asylum seekers and more.
Despite SNC’s recent problems, Legault calls it “a beautiful company,” the kind of business “that creates value in Quebec and there aren’t enough of them.” With the recent drop in its stock price, SNC would normally be seen as a takeover target but Legault has warned that the province will do whatever it can to stop outsiders from getting a hold of it. The Caisse de Depot, the provincial pension fund manager, already owns 20 per cent and Legault said a Quebec government agency, could buy more.

Justin knows that, with Doug Ford ensconced at Queen's Park, he'll probably lose seats in Ontario. And his purchase of the Trans-Mountain Pipeline will mean fewer seats in B.C, even as he gains no seats in Alberta. So he's trying to re-arrange the Cube by picking up seats in Quebec. It appears that Wilson-Raybould did not buy into the plan.

Once again, the delicate balancing act that is Canadian Confederation is being tested.

Image: Financial Times

6 comments:

Danneau said...

So they had their Charbonneau Inquiry and the Feds write them a get-a-contract-free in an omnibus bill, and SNC is still there, still corrupt, only now, they're Federally endorsed? Obviously not enough sunshine and no penalties as though this is all some kind of kumbayah truth and reconciliation caper. I'm not primordially bloodthirsty, but all this corruption involved a great deal of scheming, forethought & malice, greed, double-dealing, mendacity, and it had done real harm to real people, so those involved ought to be paying back every cent and doing some menial public service for the rest of their days. If that has to be as guests of Her Majesty, so be it!

Toby said...

Freeman is surely right about the political need to appease Quebec. However I think that Trudeau's character is on trial. Deep down I think JT is a bully. I think he talks in warm and fuzzy, politically correct language and persists to the point where his opponents fold just to get him to shut up. When we look past the talk we see very little logic, if any. He wants what he wants because he wants it so do what he says. He grew up entitled and it shows.

Owen Gray said...

Some people keep insisting, Danneau, that they be given Get Out Of Jail Free cards.

Owen Gray said...

Unfortunately, Toby, Justin believes he can perform magic with words. That works for awhile. But, in time, people see what is behind the magic.

The Mound of Sound said...


I've just about had my fill of this rubbish. I've had it with Liberals absolving Liberal wrongdoing just as Tories before them absolved their party and leader of their sins. Is it any wonder we're floundering in the mire we just keep creating for ourselves? Liberal, Tory, they can all go hang.

Owen Gray said...

As I've written on other occasions, Mound, the faces change but the agenda stays the same.