StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament

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StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
StrategyCorp Insights
An In-Depth Analysis of Party Priorities for the 43rd Parliament
November 2019

                                                                   ©STRATEGYCORP 2019
StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
State of Play
StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
Overview

           •   The purpose of this document is to provide an in-depth analysis of the potential priorities,
               actions, and obstacles for each major federal party in Canada’s minority government (43 rd
               Parliament)
           •   While the Conservative Party of Canada (CPC) governed a minority government from 2006-
               2011, the Liberal Party of Canada (LPC) has not operated under a minority government since
               the brief period from 2004-2006, under Prime Minister Paul Martin
           •   In a minority parliaments, governments must rely on the support of other parties to stay in
               power and pass legislation, providing less stability than a majority government
           •   This complex balancing of interests merits closer investigation to assess what each party
               must do to achieve key priorities and actions
           •   It also means that the day-to-day work of Parliament receives greater scrutiny than during a
               majority government, with Members of Parliament and Parliamentary Committees having
               more potential to impact the government's agenda

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StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
43rd Parliament Realities
As the parties contemplate next steps, there are two operating assumptions we expect to hold
                                  for the next few months:

               At 13 seats shy of a majority, the Liberals have a
   I.          relatively stable, minority government

               No major federal party is motivated to have another
  II.          election in the immediate future

        These constants will shape the political calculus of the parties as each pursues its own
                                  objectives within this Parliament
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StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
Navigating a Minority Parliament                              • In a minority Parliament, the positions of Government House
                                                                Leader and Chief Government Whip become far more important in
                                                                managing the government’s agenda
           Additional votes required for the Liberals to              o The Government House Leader is responsible for managing
  14       pass legislation in the House of Commons                     the day to day agenda and negotiating with the other parties
                                                                        to ensure continual support
                                                                      o The Chief Government Whip is responsible for ensuring the
  Pipelines,                                                            government has the votes it needs within the House of
   Tax Cuts                                                             Commons
                                         Social Justice,              o For a Government which spent little time focused on
                                         Climate Action                 Parliament from 2015-2019, the Liberals will require more
                                                                        attention to the functioning of Parliament when the House
                                                                        resumes sitting on December 5
                                                              • The Liberals will likely rely on issue-by-issue partnerships with the
                                                                three main opposition parties
                                                              • Potential areas of cooperation include with the NDP or BQ on
                                                                climate action; with the Bloc on matters relating to Quebec (or SNC
                                                                Lavalin); and with the Conservatives on energy sector issues and
                    SNC Lavalin,                                pipelines
                   Climate Action                             • The Senate of Canada continues to evolve as a less partisan
                                               Greens   IND
                                                                institution and could be unpredictable on contentious issues

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StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
Party Breakdown: Context and Priorities

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StrategyCorp Insights - An In-Depth Analysis of Party Priorities for the 43rd Parliament
Trudeau’s Four Forces – Influences Shaping Government Decision-making
Trudeau will be pulled in four directions – together, these forces represent opportunities and challenges for voices to be heard by decision-
                                                       makers in a minority Parliament

                                                      Towards the progressive left to keep
                                                      the NDP and BQ from rising

      Towards the West to contain                                                                             Towards Quebec and urban
      emerging unity challenges                                                                               Canada for electoral growth

                                                      Towards a renewed focus on the
                                                      economy amid an expected slowdown                                                     7
The Way Forward for the Liberals
  The Liberal Party will view all its decisions through the lens of its one
objective: returning to a majority government next election. To get there,
StrategyCorp has identified two paths to victory —increasing the share of
 suburban voters across Canada's regions, or increasing seats in Quebec.
      The party might employ one of two corresponding strategies.

                The Horizontal Play
     I.         Growing across all five regions of the country and bringing
                forward policies that reach suburban/exurban dwellers
 •   The needs of this constituency are unique and are not dependent on
     language or ethnicity
 •   Overarching themes like affordability will land most effectively – issues like
     childcare and public transit do not have a regional nuance, making them
     broadly appealing

                                      —OR—
                The Vertical Play
     II.        Embracing bold and potentially polarizing policies in a bid to
                pick up more seats in Quebec.                                         Expect the Liberals to target their existing Quebec pathway
                                                                                        in addition to seats on the perimeter of urban centres
 •   This might include directly challenging Quebec’s Bill 21 or pivoting sharply
     left to sway Bloc voters in exurban Montreal and Quebec City                                  where they finished a close second
                                                                                                                                              8
Additional Considerations for the Liberals

 The Liberals will need to think about trying to restore their appeal with millennials and First Nations, Metis, and Inuit voters
 • With the Greens taking about 400,000 votes and the NDP pulling some support away too, the Liberals will want to examine how they
   get these voters back inside the Party tent
 • Attempts at this were made in the Liberal election platform with a promised increase for Canada Student Grants and the introduction
   of a grace period to repay student loans
 • If the answer is to adopt Green policies, how does this reconcile with the interests of their other constituencies?
 What may be more likely is an attempt to repair relationships with other key voter groups who were “in” the tent in 2015, but “out” in
 2019.
 • This might be accomplished through policy outreach. Minority parliaments are contentious places, so the key question will be how to
   maintain the Trudeau brand in this environment?
 • While appealing to progressives, there is a danger in failing to balance energy and the environment and further disillusioning western
   Canadians
 • Meanwhile, an additional risk presents itself in the party’s treatment of Ontario – given the number of seats the Liberals hold in
   Ontario (especially in the Greater Toronto Area and 905 area code), voters in Ontario must feel their issues are being addressed by the
   Liberals

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Climate Change – A Prevalent Ballot Box Issue
                               Liberals                                                                         Conservatives
    The overarching political landscape is being redefined
                   through a climate lens                                                           Climate politics are increasingly a focal point in
                                                                                                    Canadian elections and voters now expect parties to
   This has organized voters into voting blocs, including:                                          present a robust plan to tackle the issue

                 Left Wingers (25% of voters*)                                                      While the environment has previously been a shield
                 Urgent climate action with no pipeline construction                                issue for the Conservatives, the reality is that voters
                                                                                                    (especially suburban) are increasingly looking for
                                                                                                    proposals on how parties will approach climate
                 Right Wingers (20% of voters*)                                                     policy
                 Urgent pipeline construction with limited climate action
                                                                                                    While the Conservatives created a specific
                                                                                                    environmental platform, they issued it early and
                  Centrists (46% of voters*)                                                        failed to promote it during the campaign. Given the
                 Climate action and pipeline construction                                           importance of the issue to swing voters, a challenge
                                                                                                    for the Conservatives to consider is how to address
                                                                                                    climate politics with policies that can attract key
   With these new political definitions solidifying, it appears the
                                                                                                    voters.
      Liberals will likely concurrently advance climate action
                       and energy development

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*Source: Nanos Research. In the same poll, 3% said the government should cancel both the carbon tax and the Trans Mountain pipeline, while 7% were unsure.
The Way Forward for the CPC
                                                    Conservatives across Canada are wrestling with
                                                    what went wrong in the 2019 election campaign and strategy
                                                    Former Conservative Minister and MP John Baird has been
                                                    tasked by Andrew Scheer to conduct a "post-mortem"
                                                     on all facets of the campaign
                                                    In addition to the results of the post-mortem, Conservatives will
                                                    be putting Scheer under increased scrutiny over the following:
                                                    • How does Scheer handle the early days of a minority
                                                      Parliament, including his response to the
                                                      Speech From the Throne and his performances
                                                      in media and in Question Period
                                                    • What changes does he make to his Shadow Cabinet,
                                                      his inner circle and his senior staff
                                                    • Can he keep the Caucus and other senior party leaders
                                                      behind him
The next six months will be a defining period for
Andrew Scheer's leadership in the run-up to the     • Will he answer tough questions about his personal views
 April 2020 CPC National Policy Conference in         which arose consistently during the campaign?
Toronto. Delegates will have the ability to vote    A strong performance between now and Christmas will help
     "yea" or "nay" on a leadership review          Scheer make the case that he should remain as Leader 11
Additional Considerations for the Conservatives
 • The Conservative Party is grappling with fundamental questions with two key camps emerging:
        o The Tacticians: those who believe the Party only needs to tinker around the edges and while they may not be
          satisfied with winning the popular vote and increasing the number of seats, they believe the Party is on the right
          track for victory next time
        o The Existentialists: those who are concerned with the party’s ability to keep pace with an increasingly progressive
          electorate. They want more drastic and substantive changes (including for some, a change in leadership)
 • Stephen Harper took time after the 2004 election to do a fundamental assessment on why the party lost, including deep
   personal introspection for Harper on whether he should remain as Leader. The party also included a major shake-up of key
   staff, and a re-focusing of the policies and platform. Like Harper, there are major questions that Scheer will have to
   reconcile imminently should he wish to remain as leader
 • Central to this self-reflection, the Conservatives know what they stand against, but they have not unified in what they stand
   for. The Party will be examining how to broaden its "big tent" to appeal to the greatest number of voters
 • Scheer will need to demonstrate that he can bring both the tacticians and the existentialists together under a "big-tent"
   party in order to retain cohesion and unity
 • The challenge for Conservatives is that all of these issues are internally rather than externally focused – it's difficult to
   portray a party as a "government-in-waiting" when it is internally focused
 • This gives Liberals more room in a minority situation, when Conservatives will likely not be seeking an election anytime
   soon
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The NDP: Leader Strong, Party Weak

                                     • While Jagmeet Singh now presides over a significantly
                                       diminished NDP (with a 15-seat loss), Singh himself
                                       was lauded for running a good campaign
                                     • Singh experienced challenges at the beginning of his party
                                       leadership: difficulty gaining traction without a seat in
                                       Parliament, running for office outside his home province, and
                                       raising funds for a party with many incumbent MPs retiring
                                     • During the campaign, Singh resonated well with young, left-
                                       leaning voters. Strategic voting in the days leading up to the
                                       election may have impacted his momentum with this cohort,
                                       with voters fearing a Conservative minority government
                                     • Singh’s NDP captured a notable portion of the popular vote as
                                       compared to his seat count – this could be a potential area of
                                       focus for the NDP in the next election: aggregating regional
                                       support rather than broad favour across the country
                                     • As the new face on the Hill, the NDP has an opportunity to
                                       capitalize on fundraising and membership

                                                                                                        13
Portion of Popular Vote
NDP Challenge: Transitioning Momentum into Results
                                                                                  15.9%              captured by the NDP

                                                                           Looking Forward
                                                   • The NDP needs time to regroup as an organization and
                                                     could benefit from a full four-year term for the Liberals:
                                                        1.   Recruit more competitive players in key ridings;
                                                        2.   Ride the high approval ratings of Singh and capitalize on
                                                             this momentum in the House;
                                                        3.   Establish Singh as a progressive alternative through an
                                                             increased presence across the country and substantially
                                                             increase its bottom line through aggressive fundraising;
                                                             and
                                                        4.   Allow Canadians time to grow completely weary of
                                                             Trudeau before attempting to overtake the Liberals as the
                                                             de facto “left” party of choice in the next federal election
                                                   • However, minority Parliament may also work against
  Major Question: How can the NDP transition         Singh. In 1974, then-NDP Leader David Lewis actually
Canadians that were attracted to Singh, and make     triggered an earlier election that he knew would result in
       them voters, donors, and activists?           seat losses because the longer the NDP waited, the
                                                     worse they would have done
                                                   • With this in mind, the LPC may be inclined to call an
                                                     election sooner to avoid facing an NDP that is organized
                                                     and ready to challenge on the left                       14
Bloc Québécois: Sovereignty Silence is Golden
  • Under Yves-Francois Blanchet’s leadership, the BQ increased its
    number of seats from 10 in 2015 to 32 seats in 2019, becoming
    the 3rd largest party in Canada and regaining official party status
  • Having run a campaign that barely mentioned the word
    "sovereignty," the Bloc is aware that it ran a campaign that
    provided very few details to voters on what its intentions in
    government would be. They will not be able to get away with it in
    another election
  • The Bloc appear to have captured the attention of voters
    increasingly focused on secularism – it was the only federal party
    in favour of the contentious Bill C-21 in Quebec
  • It has also played off the popularity of CAQ Premier Francois
    Legault, by mimicking his approach to federalism: more control
    for Quebec in social and financial spheres                               Major Internal Question: Will an election soon
  • In the next electoral cycle, it will be forced to provide more        serve to capitalize on current momentum and allow
                                                                            the BQ to pick up even more seats in Quebec? Or
    explicit policy intentions and budget priorities, but for now
                                                                           will they perceive current representation as a win
    Blanchet and the Bloc are in a solid position
                                                                           and try to preserve their current status for as long
                                                                                               as possible?
                                                                                                                              15
Elizabeth May: In a League of Her Own?

    The Green Party continues to be mired in a cult of personality
      around Elizabeth May. May’s personal popularity has never
     translated into seats during election time: she has only been
    able to grow the party to 3 members in 5 successive elections
   since becoming party leader in 2006. May signaled that she will
               not be the leader for the next election.

                   The key question for the Greens is:
    Can they find a successor that can build them into a competitive
          federal party, both organizationally and financially?

  The million-plus Canadian citizens who voted Green, most notably
 the millennial vote, did not vote Green as a protest – they hoped to          The Green Party will be forced to complete an
    turn protest into power, and demonstrate the commitment of              introspective exploratory leadership process, asking
        young people to radical solutions to the climate crisis.        themselves what kind of person, and what type of tactics,
                                                                         will be necessary to transition themselves from a single-
                                                                         issue party focused on protest, to a formidable threat
                                                                                                                            16 to
                                                                                            Liberal/NDP power.
Beyond the Election

                      17
On the Horizon: Things to Come
         Speech From the Throne and Return of Parliament – The House of Commons resumes for a short session on December
           5 and will adjourn by December 13. The Liberals' priorities will become clear through this and other items, such as
                                                 mandate letters to new Ministers.

         Weakened Mandate – Without a majority government, the Prime Minister and his team will have to work across party
                                             lines to move their agenda forward.

           Conservative Policy Convention – The April 2020 Conservative Policy Convention (and the period preceding it) will
         increasingly become focused on Andrew Scheer's leadership, and, ultimately a vote either for or against his leadership.

            Elizabeth May’s Departure – The future of the Green Party is uncertain: it could either recede from the public’s
           consciousness without May’s high profile, or a new leader could evolve the Green Party into a major player in the
                                                           climate crisis era.

          Potential Recession – This government and Parliament will have to contend with the spectre of a possible economic
                            downtown, and the uncertain impact it might have on both of their operations.

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