Conservative Minority, Take Two
Canada’s 40th election was a surprise we all saw coming. Prime Minister Stephen Harper called the election despite his fixed-date election legislation, likely hoping for a majority before the economy tanked.
But voters weren’t too interested and turnout dropped to a record low of 59.1 per cent. For many Canadians, the struggle between two charisma-shy policy wonks (Stephane Dion and Harper) just couldn’t match the historic U.S. election.
But our election had its moments. Like when Harper and NDP leader Jack Layton tried to keep Green Party leader Elizabeth May out of the televised debates only to be beaten down by her grassroots campaign. Dion’s near-indecipherable carbon tax, that he insisted was a good idea even in a downturn, also provided ample fodder for commentators.
And then there were those melodramatic, horror-film attack ads the NDP aired in Quebec that painted Harper as a demonic villain and Layton as the angelic hero.
At one point in the election it looked like Harper had a majority, but then his relatively small cuts in arts funding turned Quebec voters back to the Bloc Quebecois. Maybe our election wasn’t as exciting as the one in the U.S., but then again, the real drama came later.
Political Crisis
Canadian politics rarely gets interesting enough to penetrate the insular U.S. news media, but the ongoing political crisis in Ottawa did.
After the Conservatives gave post-election speeches about cooperating with the opposition parties, Finance Minister Jim Flaherty introduced a mini-budget that cut the opposition’s campaign funding—money the Liberals and Bloc Quebecois are particularly dependent on.
Pretending they were outraged at the lack of stimulus spending, (which was no doubt partially true) the three opposition parties united in a coalition to topple the Conservatives and take control of parliament.
Polls indicated Canadians weren’t too happy at the prospect of having the unpopular Dion run the country with a little help from the separatist Bloc Quebecois, which exists to break Quebec out of Canada.
The fate of the country was decided by Governor General Michaëlle Jean who is usually just a figurehead but has constitutional authority in this bizarre scenario. She let Harper suspend parliament until Jan. 27 when the Conservatives will introduce a new budget. New Liberal leader Michael Ignatieff has threatened that budget better have some serious stimulus spending … or else.
Stephane Dion
Stephane Dion’s rise and fall should be instructional for future political leaders. A minister under Jean Chretien and then Paul Martin, Dion later leapt from third to first place in the 2006 Liberal leadership race and took control of the party.
But his tenure as leader was short and shakey. Dion’s difficulty with English and lack of charisma dimmed his mass appeal. And when he centred his party’s election campaign on a carbon tax few understood and fewer supported, the Conservatives pounced.
Pre-election campaign ads had already painted Dion as a weak leader who wanted to tax everything, and his decision to keep pushing his Green Shift despite the economic downturn was widely criticized. In the end, he led the Liberals to their worst defeat since Confederation.
Dion’s moment to turn that around came with the coalition’s effort to oust the Conservatives. Unfortunately Dion blew a national television address by handing in his taped presentation late (the video also looked like it was shot on a cell phone). In the end, the party ousted him and replaced him with leadership front-runner Michael Ignatieff.
Gas Prices, Loonie Take Roller Coaster Ride
For much of 2008, Canadians cringed as gas prices continued to rise, reaching record heights of $1.50 per litre during the summer months.
As oil prices skyrocketed, so did our “currency commodity.” The loonie hit an all-time high of 110.31 cents USD and spawned a renewed interest in U.S. shopping, with Canadians even importing cars from the U.S. when domestic prices were not adjusted to reflect the new top duck, er, buck.
But the high-flying loonie made Canadian goods more expensive overseas and damaged export-based industries, especially the auto sector.
The slowdown in the global economy has now knocked the bottom out of the oil market, with prices for a barrel of crude dropping from $147.27 USD in July to just under $45 on Christmas Eve. That has translated to pump prices under 80 cents, approaching a five-year low.
The dollar has been dragged down too and is now below 80 cents USD for the first time in more than three years. Economists say this bodes well for the manufacturing sector, but with the TSX down nearly 40 per cent, Canadian companies are still struggling.
New projects in Alberta’s oil sands have been cancelled and tens of thousands of temporary workers could be heading back to their home provinces.
Canada Bails Out an Auto Industry Running On Fumes
For Canada’s auto manufacturers, 2008 was a bad year that got worse. Already reeling from the high Canadian dollar and waning demand, the financial crisis hit Canadian automakers – particularly subsidiaries of the Detroit Three (GM, Chrysler, and Ford) – when they were least prepared.
As 2008 clanked to a close, some estimates had at least 10 per cent fewer Canadians employed in the auto industry compared to one year ago. But the outlook was even grimmer: As the economic downturn deepened, worries grew that it would take the Detroit Three with it. As the U.S. government agreed to loan the carmakers $17.4 billion (USD), pressure mounted on Canada to do the same or risk having Canadian operations cut back first.
At a Dec. 20 press conference, Harper and Ontario Premier Dalton McGuinty announced $4 billion in loans, which Harper called “a regrettable but necessary step to protect the Canadian economy.” In turn, the automakers agreed to maintain Canada’s 20 per cent share of North American auto manufacturing.
While the bailout was greeted with holiday cheer by the industry, many admitted the road ahead would be rough. Automakers’ calls for funds are seen likely to continue in 2009.
Tragic Milestone for Canadians in Afghanistan
Canada’s mission in Afghanistan reached an unfortunate milestone this year with the death of the 100th solider.
Of the 32 killed in 2008, nine died this month, bringing the latest total to 106 soldiers along with a diplomat and two aid workers since Canada deployed troops to the war-torn country in 2002.
Roadside bomb attacks by the Taliban are the biggest threat to the approximately 2,700 Canadian soldiers in the U.N.-mandated, NATO-led mission in Afghanistan. To help reduce this threat, Canada will deploy unmanned aerial surveillance vehicles early in 2009 as well as six heavy-lift Chinook helicopters to transport troops by air.
Originally slated to end by February 2009, parliament passed a motion on a 198-77 vote in March to extend Canada’s Afghan mission to December 2011. In October, Parliamentary Budget Officer Kevin Page forecasted that Canada’s war and reconstruction efforts in Afghanistan will cost up to about $18.1 billion by 2011.
Afghan-Canadian academic Tooryalai Wesa was sworn in as Kandahar’s new provincial governor in December. Key Canadian development projects in Afghanistan include the Dahla Dam and irrigation system, education, and polio eradication.
Listeria Outbreak Brings Food Safety to Forefront
Canadians were shocked in August as news surfaced of a deadly, nationwide outbreak of listeriosis. Tests identified listeria in two meat-slicers at Maple Leaf Foods’ Toronto plant as the source of the contamination that killed at least 20 people and caused more than 30 serious ailments.
During the crisis, which led to a 30-day closure of the plant, a total of 220 products were recalled, costing Maple Leaf approximately $20 million. Further costs were incurred due to lost sales and advertising to rebuild the company’s image.
Maintaining good public relations, in the weeks following the outbreak Maple Leaf CEO Michael McCain held press conferences, a spokesperson conducted interviews with a wide range of media, and an apology was posted on the company’s website.
Still, lawsuits ensued, and in mid-December, subject to court approval in Ontario, Saskatchewan and Quebec, settlement of a class-action suit will see Maple Leaf pay between $25 million and $27 million to claimants across the country.
Tasers: No Charges in Dziekanski Death
Three people died in connect with police Taser incidents in 2008 and at least 20 people have died similarly since 2001. But the exact cause of deaths in Taser incidents is often contentious, as in the case of Polish immigrant Robert Dziekanski.
Ten hours after Dziekanski arrived in Canada in October 2007 he was dead, Tasered five times by police after he became agitated in the baggage area of the Vancouver airport. The case made news around the world and renewed calls for a moratorium on the use of Tasers.
However, on Dec. 12, British Columbia’s Crown office announced that the use of a Taser did not cause the cardiac arrest that killed Dziekanski and ruled out charges against the four officers involved.
Maintaining they are an effective alternative to using lethal force, police say Tasers have saved 4,000 lives since coming into use in 1999. The Braidwood commission, an inquiry into the Dziekanski incident and the use of Tasers by police, resumes January 19 in Vancouver.
All Eyes Turn South
For a nation that sometimes defines itself by its differences from the U.S., 2008 reminded many Canadians of how intertwined our nation is with its southern neighbour.
As America’s rollercoaster year raced on, Canadians remained fixated. Perhaps no story more captivated Canadians this year than the unlikely election of Barack Obama, a black senator from Illinois, as president of the United States.
Mr. Obama’s story provided great drama, as did the candidacies of Hillary Clinton and Sarah Palin (whose vice-presidential debate with Joe Biden attracted more Canadian viewers than an average installment of Hockey Night in Canada).
But beyond the theatre, America’s year was full of events closely tied to Canada’s fortunes. The future of the North American Free Trade Agreement was questioned. We also learned that despite our insulation from the initial slide in the U.S. housing market, our economy could not defy gravity when our largest trading partner saw its markets crash and consumer demand dry up.
America’s mark was also left on other top stories in Canada – from the war in Afghanistan to our policy on carbon emissions. As a new U.S. administration takes power in January, Canadian fixation on America is unlikely to fade.