While everyone was busy this past week getting worked up over a fake Twitter account mocking Catherine McKenna, a tweet emerged from the actual account of the actual federal environment minister that was probably much more deserving of attention.
If the minister is concerned about how certain fake tweets might cast her in a poor light, perhaps she and her staff should take precautions to ensure her actual tweets don’t end up doing so. After the fiasco last November, in which a tweet from McKenna praised the murderous Syrian regime for joining the Paris climate accord — a tweet for which the minister took responsibility only after first blaming staff for it — you’d think they’d have learned their lesson. Apparently not.
On Tuesday, McKenna tweeted out a link to a nearly two-week-old Financial Post article detailing the Canada Pension Plan Investment Board’s (CPPIB) plans to issue over $1-billion in so-called green bonds. It’s a newsworthy development, and it tells an interesting story about the potential investment value in renewables.
It might have been tempting for some to wonder about political motivations in such a decision, but it should be noted that the CPPIB operates at arm’s length from government and is mandated to ensure the long-term sustainability of the CPP.
So really we would have had no reason to question this decision — until the minister gave us one. McKenna’s tweet on Tuesday linking to the article declared that “this is something that Canadians can be proud of.” It is certainly not the role or mandate of the CPPIB to seek out investments that make us “proud,” nor should it be.
Moreover, direct praise from a cabinet minister about a specific investment from the CPPIB creates the appearance of government interference. Is the government directing the CPPIB to make decisions that align with its political goals? Does the prospect of approval or disapproval from government ministers weigh on those tasked with making investment decisions for the CPPIB?
There’s no evidence here that there was anything untoward in the issuance of these bonds or that the minister was doing anything more than getting overly excited about the story. It’s a dangerous game, however, to have cabinet ministers exploiting decisions that are purely financial in order to score political points. We should be hypersensitive about any government action that might threaten that arms-length relationship.
Just last month, for example, we learned that the CPPIB had been approached about possible financial involvement in the Trans Mountain pipeline expansion project. While that project may represent a wise investment, it’s a decision the CPPIB needs to reach on its own. The Liberals have a political objective in finding investors for this project and we should avoid any appearance of government pressure on the CPPIB.
It’s not just an Ottawa problem, either. Two years ago, Alberta’s NDP government was caught in a similar controversy involving AIMCo, which manages $90 billion in assets for the Alberta government — under a similar arms-length arrangement.
In June 2016, AIMCo provided a substantial loan to Calgary-based Calfrac Well Services, which allowed the company to restructure its debt. The government, however, made a subsequent announcement touting the deal as a demonstration of support for its diversification and job-creation efforts. Both AIMCo and the company were none too happy.
After the story emerged, the government wasn’t happy, either. The opposition obtained and released emails showing that the premier’s own director of issues management was trying to direct AIMCo’s CEO to call a newspaper and back up the government’s version of events.
The whole sordid affair not only created a perception that the government was interfering in AIMCo’s investment decisions for political reasons, but it also created a cloud over the government’s subsequent decision to change the qualification requirements for AIMCo board members.
There’s a reason why these entities are kept at arms-length from government, and respect for that arrangement should easily and always trump the temptation to score cheap political points. Unfortunately, when it comes to the latter, it seems politicians just can’t help themselves.
Rob Breakenridge is host of “Afternoons with Rob Breakenridge” on Global News Radio 770 Calgary and a commentator for Global News.