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Notes for an address to the
Standing Committee on Government Operations
Ottawa, Ontario
June 4, 1996
First let me introduce the PCO officials who are appearing as witnesses before
this Committee:
Ronald Bilodeau, Deputy Minister and Associate Secretary to the Cabinet,
Intergovernmental Relations;
George Anderson, Deputy Secretary, Intergovernmental Policy and
Communications;
Marc Lafrenière, acting Deputy Secretary, Intergovernmental Operations
Elisabeth Nadeau, Assistant Deputy Minister, Corporate Services
Eileen Boyd Acting Director - Financial Services
Janet Smith, Principal Canadian Centre for Management Development
This is my first opportunity to speak to the Standing Committee on Government
Operations, so I'll try to outline as briefly as possible my vision of the
changes we must consider to keep Canada united and make it stronger.
I will thus summarize my vision in terms of two priorities.
- First, to awaken the Canadian identity that is dormant not only among many
Quebecers, but also among many other Canadians.
- Second, to rebalance the federation and make it more effective and more
harmonious.
Let's start with Canadian identity. We have built a country that recognizes
and celebrates linguistic duality, a country that recognizes the virtues of
multiculturalism and the power of diversity, a country that recognizes the
supremacy of individual rights and the importance of protecting minorities.
From coast to coast to coast, respect for democracy and freedom, tolerance of
others, generosity and sharing are values that unite us all and reflect what we
are. We should be proud of Canada's history and prouder still of the destiny
toward which we are moving.
We must celebrate the great values of solidarity and pride that we are
working to disseminate throughout the world. Now let's look at rebalancing the
federation. Today, in this time of difficult testing for national unity, we must
draw on our experience of properly balancing solidarity and autonomy to adapt
our federation to the global challenges that make such a balance more necessary
than ever before.
This balance between solidarity and autonomy means that as citizens and as
regions within Canada we are both independent and interdependent.
Our federalism in Canada has given concrete practical expression to these
ideals of solidarity and autonomy.
On the one hand, we have created a network of social programs and a system of
equalization payments to ensure that all citizens enjoy a comparable level of
well-being.
We have even expressed this in section 36 of the Constitution Act, 1982,
which commits the Government of Canada and the provincial governments to
promoting equal opportunities for the well-being of Canadians and to providing
essential public services of reasonable quality to all Canadians. It also
commits Parliament and the Government of Canada to the principle of making
equalization payments to ensure that provincial governments have sufficient
revenues to provide reasonably comparable levels of public services at
reasonably comparable levels of taxation. This is the strongest commitment to
social solidarity that can be found anywhere in the world.
On the other hand, our constitutional division of powers expresses our
commitment to an extensive local autonomy.
In the Speech from the Throne, the Government announced a number of major
initiatives that will make it possible to strengthen Canadian solidarity and
thus give the provinces even greater autonomy than they have now.
First, the federal government has limited its spending power. It is the first
time that the federal government has offered such a limit on its powers outside
the context of formal constitutional negotiations.
Second, in terms of existing programs, we will be exploring with the
provinces new and cooperative mechanisms for maintaining national standards.
Third, we will work with the provinces to establish clearer lines of
responsibility between different levels of government. For example, the federal
government has undertaken to withdraw from fields of activity that are more
appropriately the responsibility of provinces, such as forestry and mining
development, recreation and, above all, labour-market training.
Fourth, the federal government will continue promoting Canada's economic
union by taking measures toward greater interprovincial free trade and labour
mobility. We propose to establish a Canadian securities commission in
co-operation with interested provinces, which will facilitate capital flow. The
Governement has also proposed to create a national revenue collection agency in
order to improve cooperation with all provinces in that area.
Fifth, we are also committed to entrenching in the Canadian Constitution
regional vetoes and recognition of Quebec as a distinct society within Canada.
Fairness and justice are the two fundamental principles guiding the Canadian
social solidarity. Our country has traditions of social solidarity that we will
always have to preserve, no matter what changes we make.
The Canada Health Act, for example, is there to give all Canadians access to
a comparable level and quality of health care.
The new Canada Health and Social Transfer will guarantee at least $11 billion
in funding transfers each year, and will give the provinces better protection.
It will re-establish stability and predictability for the provinces and give
them financial support that is comparable from one province to the other. And,
above all, it will preserve health insurance and social programs.
Social solidarity does not end there, however. Canadians benefit from a
wealth distribution program that is unique in the world. I am talking, of
course, about equalization, which enables all the provinces to offer public
services of comparable quality. That program is entrenched in the Constitution
and is one of the major unifying elements of the Canadian federation.
By strengthening the balance between solidarity and autonomy, we will make
the federation more harmonious and reduce the number of existing or potential
disputes between the provincial and federal governments.
There is thus work to be done in that respect to improve the productivity and
complementarity of the federal and provincial governments. We are determined to
eliminate unnecessary overlap and duplication by dividing responsibilities
between the different levels of government more clearly.
The Government has already accomplished a great deal in recent years. The
Program Review, the Improving the Efficiency of the Federation Initiative, and
the budget measures, have put the Government on the path of streamlining and
frugality.
We are thus off to a good start in modernizing the federation, but we still
have a long way to go. The first objective is and must continue to be the
delivery of top-quality, more effective services to citizens, by the most
appropriate level of government, the private sector, or a combination of the
two.
A clearer division of the roles of the two orders of government and more
effective co-operation that is better tailored to citizens' needs, will help to
get us back on track with regard to unity.
The upcoming first ministers' conference is an integral part of that process
of modernizing the federation.
The meeting will give the first ministers an opportunity to talk about how
governments can work together better to create jobs in Canada, guarantee the
social safety net, and develop a common agenda for change to renew the country.
That is why I intend to devote my efforts to rekindling Canadians' will to be
together.
I will be very pleased to answer any questions you may have.
Check against delivery.
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