Many of the troubling political developments emanated from south of the border, continuing the longstanding pattern of American actions affecting Canada. Almost 50 years ago (March 25, 1969), in a speech to the Washington Press Club, then Prime Minister Pierre Trudeau made the following observation:
Living next to you is in some ways like sleeping with an elephant. No matter how friendly and even-tempered is the beast, if I can call it that, one is affected by every twitch and grunt.
I suspect the current Prime Minister would happily welcome an elephant in exchange for the creature now constantly disturbing Canada’s sleep. Mind you, the Canadian Government has done well in holding its own during the difficult NAFTA negotiations of the past year, thanks in large part to the formidable Chrystia Freeland.
Interprovincial Relations
Ironically, the free trade negotiations that cause Canada the most difficulty are internal, as in the movement of goods and services across provincial boundaries. A Senate Committee report in 2006 estimated that interprovincial trade barriers reduced Canada’s GDP by between $50 billion and $130 billion, and that negative impact has only increased over the years since. A particularly nonsensical example involves the flow of beer (or lack thereof). A New Brunswick man was charged for bringing more than 12 bottles of beer across the border from Quebec and challenged this in court. Six years after the incident, the matter was finally resolved by a recent decision of the Supreme Court of Canada. Even though Section 121 of the Canadian constitution states that goods must be “admitted free” as they move from one province to another, the court somehow found that phrase ambiguous and decided that provinces were within their rights to impose limits on just such interprovincial movement of goods. So the New Brunswick beer drinker must pay his fine and is still only allowed, legally, to bring 12 bottles of beer across the border from Quebec. Ironically, he can bring 24 bottles across the border from the U.S. This situation is enough to leave us crying in our beer.
Federal-Provincial Relations
The Liberal Government in Ottawa could be forgiven for doing some crying as well – about the vagaries of changing political circumstances. Early in the year, the Liberals offered what seemed a reasonably balanced approach to the issues of environmental protection and economic growth. They announced plans to build on provincial initiatives already underway by imposing a carbon tax while also taking step to ensure approval of a pipeline to revive the stagnant energy industry in Alberta. The proposed new pipeline would run alongside an existing pipeline, one that is at capacity.
This trade-off has done nothing to dampen the fervor of environmentalists, who are determined not to have any pipeline built. Elections in several of the provinces have brought to power political parties strongly opposed to any form of carbon tax. Some of them, including the Ontario Conservative Government led by Doug Ford, claim that any federal carbon tax would be unconstitutional (even though expert opinion suggests the opposite). At this point, both strands of the two-pronged federal approach to reconciling environmental and economic issues face an uphill battle.
Provincial-Local Relations
The election of the Conservatives in Ontario poses problems for more than the federal government. The new government has been characterized by decisions made in haste, without evidence of any research or consultation, and without regard for the possible consequences. Premier Ford has been acting as if the election results gave him a mandate to do whatever he wishes. He is especially contemptuous of the notion that an appointed judge might dare to block initiatives launched by an elected Premier. Indeed, he gives no indication that he is aware that there are three branches of government and that his party governs subject to the continuing approval of the legislative branch and within the rule of law as upheld by the judicial branch.
While various groups have already been adversely affected by a series of cuts introduced by the Ford Government, it is the local level of government that may have the most to fear under this new provincial regime. A preview of what may be in store was on display recently when the province notified the school boards late on a Friday about major cuts in funding affecting a number of programs mainly supporting students with special needs. These funds were announced by the previous Liberal Government back in the spring and much of the money had been spent by the time the new Conservative Government decided to curtail the initiative.
As the Conservatives continue their search for ways of reducing expenditures to offset a provincial deficit that they claim was much larger than expected – even though the amount was widely publicized in a mandatory provincial audit completed prior to the election – who can doubt that one of their targets will be the financial support provided to municipal governments. We have seen this movie before, when Mike Harris was the Conservative Premier of Ontario, and reduced provincial expenditures by downloading costs on municipalities.
Unlike the school boards, which are now part of a fairly centralized regime, municipal governments do retain significant operating independence and access to a number of their own revenue sources. If Premier Ford cuts funding for municipalities and/or downloads costs on them, one can only hope that municipal councillors will show more spine and spunk than provincial Conservatives who have meekly allowed the Premier to exhibit his “Dictator Doug” approach. Councils should not hesitate to raise property taxes, where necessary, to continue providing the services needed by their residents and ratepayers, while making it very clear what has caused these tax increases.
Lessons Learned
For Ontario voters, the message is clear. If you insist on embracing a no-Wynne solution, you end up with a Fordian slip!