Morning Update: Gerald Butts denies Wilson-Raybould was pressured

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Gerald Butts tells committee Wilson-Raybould’s cabinet shuffle was independent of SNC-Lavalin discussions

In a much anticipated appearance before the House of Commons justice committee, Gerald Butts, the former top adviser to Prime Minister Justin Trudeau, said Jody Wilson-Raybould was not subjected to inappropriate pressure and suggested her concerns about improper interference in the SNC-Lavalin prosecution only surfaced after she was demoted in a cabinet shuffle. As Robert Fife, Steven Chase and Daniel Leblanc report, Mr. Butts told the committee that Ms. Wilson-Raybould believed she was being removed as justice minister and attorney-general because of her refusal to negotiate an out-of-court settlement with SNC-Lavalin – an accusation he denied.

Also in Mr. Butts’s testimony:

• He acknowledged frustration with Ms. Wilson-Raybould and her refusal to consider outside legal advice on a deferred prosecution.
• At no time did the Prime Minister, or anyone else in government, “direct or ask the attorney-general to negotiate a remediation agreement,” he said.
• He said in his opening statement that there was a breakdown in relations between the Prime Minister and Ms. Wilson-Raybould as a result of the January cabinet shuffle where Ms. Wilson-Raybould was assigned the Veterans Affairs portfolio.
• Initially, Mr. Trudeau offered Ms. Wilson-Raybould Indigenous Services, but Mr. Butts said she turned it down because of concerns about enforcing the Indian Act. The Prime Minister then offered Veterans Affairs.

Later in the day, the committee questioned Privy Council Clerk Michael Wernick and deputy justice minister Nathalie Drouin. Both had appeared at the committee before, but were called back after Ms. Wilson-Raybould’s testimony raised new questions about meetings related to SNC last December. Read Mr. Wernick’s opening statement from yesterday.

How do the testimonies of Jody Wilson-Raybould and Gerald Butts align? We break down salient points from both of their committee appearances and highlight how they diverge sharply on the timeline of events and the characterization of some contentious meetings.

• For more information and context on SNC-Lavalin, Jody Wilson-Raybould and Trudeau’s PMO, read our backgrounder.
• Revisit Jody Wilson-Raybould’s bombshell testimony from last week
• And for more on what the PMO and PCO are, and what they do, read our guide for the SNC-Lavalin affair

Yesterday’s testimony has prompted several of our columnists to weigh in.

• Campbell Clark suggests after Mr. Butts’s version, Canadians must now judge who is more credible, him or Jody Wilson-Raybould: “Mr. Butts chalked it up to different perspectives, but it was more. Will Canadians consider him credible?”
• Konrad Yakabuski on the master class in taking down an adversary: “For someone who was forced to sacrifice his life’s dream to save his boss, Mr. Butts was remarkably magnanimous toward the woman who almost single-handedly brought him down.”
• John Ibbitson on why we have passed a tipping point: "All future debates, and the election campaign itself, will be framed by the questions raised by SNC-Lavalin.”
• Elizabeth Renzetti on what Trudeau failed to realize: “Women in office do not believe in politics as usual. And once more women are brought into office, politics will have to change."

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ALSO ON OUR RADAR

Shell company tied to Russian tax fraud paid Bombardier tens of millions, documents show

Leaked banking records show Canada’s Bombardier Inc. was paid tens of millions of dollars by a shell company that received money from the massive Russian tax fraud that cost accountant Sergei Magnitsky his life. As The Globe’s Mark MacKinnon reports, the records from Lithuania’s now-defunct Ukios Bankas − obtained by the Organized Crime and Corruption Reporting Project (OCCRP) and shared with The Globe and Mail − reveal that Bombardier was paid US$42.5-million over three transactions in 2008 by a company called Flashback Services Limited. All three transactions are marked “Aircraft Sales Invoice” or “Aircraft Invoice.”

Ron Taverner withdraws name as OPP commissioner

Ron Taverner has declined his appointment as the next OPP commissioner after months of controversy over the selection of a friend of Ontario Premier Doug Ford to the top policing job in the province. Taverner, a 72-year-old Toronto police superintendent, issued a statement saying he will not take on the role, given the controversy surrounding his appointment late last year. He said he was withdrawing citing the need to protect the integrity of front-line officers, reports The Globe’s Queens Park reporter Laura Stone. Mr. Ford released a statement in which he thanked his long-time friend for putting his name forward and said his leadership after 50 years in policing would have been an asset for the service. “It is very unfortunate that the opposition has chosen to politicize this process rather than focusing on how we can support our front-line officers,” Mr. Ford wrote.

Bank of Canada sees longer, deeper economic slump, casts doubt on future rate hikes

The central bank kept its benchmark rate unchanged Wednesday at 1.75 per cent and said that Canada’s economy will be significantly weaker in the first half of 2019 than it forecast just two months ago, writes economic reporter Barrie McKenna. The shift in tone moves Bank of Canada Governor Stephen Poloz a step closer to shelving entirely a plan to raise rates in the months ahead.

Huawei executive Meng Wanzhou will argue abuse of process, political interference: Defence

Lawyers for Huawei executive Meng Wanzhou say they have “serious concerns” that comments by U.S. President Donald Trump indicate the case against their client is driven by politics and it will require time for Canadian courts to address the matter, likely pushing the start of extradition proceedings into the fall. As The Globe’s Andrea Woo and Xiao Xu report, Richard Peck, one of Ms. Meng’s lawyers, made the comments in B.C. Supreme Court on Wednesday while outlining next steps in what he called a complex case.

B.C.'s Attorney-General David Eby expresses frustration over unreleased report on money laundering

B.C. Attorney-General David Eby said he is angry that a money laundering report by the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) never saw the light of day. The 154-page draft analysis, prepared by an employee who was reassigned before it was finished, found serious red flags around the country’s banking, real estate and casino sectors, which the report said were vulnerable to sophisticated criminals washing vast sums of illicit cash. Mr. Eby says this type of analysis could have awoken Ottawa and the previous provincial government to the massive problem in his province, which he now estimates involves billions of dollars in laundered cash.

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MORNING MARKETS

Stocks sink

Global stocks were stuck in their worst run of the year and bonds were on the rise on Thursday, as investors waited for confirmation that the European Central Bank will start shoveling cheap cash at the euro zone again. Tokyo’s Nikkei lost 0.7 per cent, and Hong Kong’s Hang Seng 0.9 per cent, while the Shanghai Composite gained 0.1 per cent. In Europe, London’s FTSE 100, Germany’s DAX and the Paris CAC 40 were down by between 0.4 and 0.5 per cent by about 6 a.m. ET. New York futures were down. The Canadian dollar was at about 74.5 US cents.

WHAT EVERYONE’S TALKING ABOUT

Mark Kingwell on why we shouldn’t boycott Michael Jackson’s music: “The vivid revelations of sexual abuse by pop star Michael Jackson – unproven in court, but hauntingly recounted by survivors in a recent documentary and an Oprah Winfrey special – have raised once again that thorny question: Can you still enjoy the art or wisdom of someone who is alleged to have done evil?”

Tim Kiladze writes there’s a new reality for Canadian energy. The oil sands have lost their lustre: “But even if we expand our pipeline network – and we absolutely should – the global energy market is going through a revolution. We’re on the losing end of a supply race with our closest economic partner.”

Jaimie Roebuck, Robin Mason and Paula Rochon argue there’s a health gap in Canada and women are falling through it: “From research and treatment options to health policy and programs, sex and gender differences have not been adequately considered. Women’s needs, including physiological differences, cultural challenges and life circumstances, are often overlooked. This is the health gap, and taking these factors into consideration is no longer an option – it’s a necessity.”

TODAY’S EDITORIAL CARTOON

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LIVING BETTER

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Guy Laliberté's private paradise: Cirque du Soleil co-founder welcomes guests to his luxury escape in French Polynesia

Leave it to Guy Laliberté to create his own time zone. The creative entrepreneur, best known for co-founding Cirque du Soleil, has expanded his real estate portfolio with Nukutepipi, a private atoll in French Polynesia, writes Maryam Siddiqi. A two-hour flight from Tahiti Nukutepipi is a far-flung escape. The only thing visible from the island is the South Pacific and, on occasion, a visiting baby shark or humpback whale. “I spent 10 years searching the South Pacific,” he says. “This is a result of my life travelling, visiting beautiful places and paying attention to detail.”

How to find memorable souvenirs that support local artisans

In the pursuit of inspiring pieces, Munira Amin and Rachel MacHenry have learned that a little research goes a long way. Shopping for mementos abroad can help you connect with the locals and local markets can be a good starting point. Also, specialized guidebooks and magazines, such as Fiona Caulfield’s Love series of Indian guidebooks, can be helpful in pinpointing the most interesting local designers and shops. “While you’re shopping, look for good design partnered with high levels of workmanship, artistry and skill,” says MacHenry. “Support retailers who support artisans – this can mean looking for brands or retailers working closely with artisan communities in supporting cultural traditions, being environmentally and socially conscious, providing fair pay and not being exploitative.”

MOMENT IN TIME

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UBC chartered by B.C. legislature

British Columbia’s eponymous university formed in fits and starts. Lawmakers in the region had been discussing the need for a postsecondary institution since the province joined Canada in the 1870s. A bill passed in 1890 was allowed to lapse amid political squabbling over whether the campus should be located on Vancouver Island or B.C.’s South Coast. After another bill was passed in 1908, the Point Grey Peninsula was chosen for its proximity to a major population centre. The province granted 175 acres of Crown land, but the Vancouver site remains part of the unceded territory of Musqueam First Nation, who had been forced into a reserve south of the campus. Construction began in 1914, but was interrupted by the First World War. That left the first cohort of 379 students – welcomed in 1915 – without a working campus. This was solved by taking over the facilities, along with the library and much of the staff, at McGill College, which was an outpost of the Montreal campus. The college was subsumed with "the blessing of McGill itself,” UBC staff archivist Erwin Wodarczak said. In the fall of 1925, the first classes began at the new Point Grey campus, where Prime Ministers Justin Trudeau, Kim Campbell and John Turner have all earned degrees. Mike Hager

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