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Douglas Brown

Between a Rock and a Hard Place: The Report of the Newfoundland and Labrador Commission on Our Place in Canada. Douglas Brown. Our Place in Canada. Royal Commission Mandate Process Framing of the Issues Conclusions and Recommendations Post-Commission developments. Royal Commission Mandate.

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Douglas Brown

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  1. Between a Rock and a Hard Place:The Report of the Newfoundland and Labrador Commission on Our Place in Canada Douglas Brown

  2. Our Place in Canada • Royal Commission Mandate • Process • Framing of the Issues • Conclusions and Recommendations • Post-Commission developments

  3. Royal Commission Mandate • Returning to 1949: what were the expectations on joining Canada? • Comprehensive: examine all aspects of NL relations with Canada • Forward-looking: how to renew and strengthen “our place” in Canada • Open-ended: how to increase “prosperity and self-reliance”

  4. Commission Proces • Appointed May 2002; reported July 2003 • Three Commissioners: Vic Young, Elizabeth Davis and James Igloliorte • Small staff • 25 public meetings, dozens of private ones • Research program of 30 studies • 15 months, budget of $2.3 million

  5. Why a Commission • General malaise due to long-term effects of 1992 cod moratorium, outmigration and federal budget cuts of 1995 • Specific political rationale to give Grimes government a boost, find new ideas for intergovernmental strategy • Political risks: “creating a monster” of raised expectations, no new solutions, too big a mandate, not enough time

  6. Framing the Issues • Trying not to blame Canada • Facing hard truths • Embracing a sense of place • Seeking a “new way of relating” • Devising an integrated strategy

  7. Hard truths • Economic disparity…still in last place • Fiscal crisis…again • Fisheries teetering on the brink • Rural communities in sharp decline • Severe out-migration • Weak constitutional position

  8. Key conclusions and recommendations • No to separation, no to the status quo • Need for collaborative federalism • To be the “principal beneficiary” of offshore oil revenues • Concerted effort to restore the fisheries • A new partnership for hydro development • Putting the fiscal house in order • Facing up to rural sustainability

  9. No to separation… • Proud to be Canadian • Only 12 percent want independence • Huge level of dissatisfaction with how Canada works • Terms of Union cannot be amended

  10. Collaborative Federalism • Need collaborative, not competitive federalism • Respect for NL as a province • More federal presence • More flexibility and accommodation to unique needs • Senate Reform • Council of the Federation

  11. Offshore Oil • Atlantic Accord, negotiated by Mulroney-Peckford in 1985: NL was to be the “principal beneficiary” in fiscal terms • Initial fiscal projections of Accord unrealistic • Government of Canada reaps 75 to 80 percent of total revenues • Got to revisit the deal

  12. Last Chance for the Fishery • Too much fed-prov squabbling • Need an action plan to address stock rebuilding, prevent foreign over-fishing, have joint management of licensing

  13. Churchill River Hydro • Churchill Falls contract of 1969 with Hydro Quebec still costs NL an estimated $800 million a year in lost profits • But forget about linking new “Lower Churchill” project with renegotiated deal • Instead get other partners (e.g. Feds, Ontario) to promote an equitable new development

  14. Provincial Fiscal Reform • Unsustainable fiscal deficit • Offshore oil revenues not going to close the gap • Need to balance the budget, engage in program review (i.e. can’t do it all) and address pension liabilities

  15. Rural Sustainability • Survival of rural Newfoundland is at stake • No one wants to discuss the issue • Commission failed to get consensus • Need for a sustained public dialogue or deliberation • There is a cross-Canada search for solutions

  16. Impact of Commission • NL is here to stay in Canada • Confident sense of place: something to build on • Greater sense of realism • Portrays gaps in cohesion as a community • Some blamed report as not bold enough • Provided a good foundation for a fresh approach

  17. Developments since 2003…1 • Williams government gets elected November 2003, program very similar to Commission report • Premiers agree to a new Council of Federation, December 2003 • Paul Martin and Stephen Harper both promise a new deal on the offshore – Martin government delivers, Feb. 2005

  18. Since 2003… • Budgetary position of province much improved • Oil-driven economy pushes NL into 6th or 7th place nationally • Rural out-migration continues • Williams takes aggressive line with feds over equalization, fishery and with business over oil, hydro and mines

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