SPEAKING TO THE FEDERATION OF CANADIAN MUNICIPALITIES, MINISTER DION REAFFIRMS THE FEDERAL GOVERNMENT'S ROLE IN RURAL AND URBAN ISSUES

BANFF, ALBERTA, May 26, 2001 – Speaking to participants in the Annual General Meeting of the Federation of Canadian Municipalities, in Banff, the President of the Privy Council and Minister of Intergovernmental Affairs, the Honourable Stéphane Dion, stated that the Government of Canada would spare no effort to help Canadian municipalities, but would do so "within our federal jurisdiction."

In that spirit, Mr. Dion noted, the Prime Minister recently established a task force on urban issues. The task force, which is made up of Liberal MPs and senators, is entrusted with exploring how the Government of Canada, within its own jurisdiction, can help to strengthen quality of life in our large urban centres, the Minister explained.

In response to the argument that rural and urban problems have become so large that the last thing we should do is worry about constitutional considerations when we try to resolve them, Mr. Dion put forward the principle of respecting the Constitution, "or else neither legal order nor well-ordered government will be possible to maintain."

To those who suggest that the Constitution should be amended to give more constitutional powers to the third order of government and to emancipate it from the provincial order, the Minister pointed out that under the Constitution, municipal affairs fall under provincial jurisdiction, the provinces are determined to keep it that way, and this aspect of the Constitution cannot be amended without their consent.

The Minister therefore urged municipalities to draw on the flexibility and adaptability of our Constitution. The Constitution has not prevented our federation from evolving toward a more decentralized framework, where decentralization is defined by the budgetary weight and the importance of the responsibilities of the provincial order of government in comparison with the federal one, he pointed out. In the same way, he added, there is nothing in the Constitution preventing the provinces from giving their municipalities greater means and responsibilities.

The Minister referred to a table that suggests there is some flexibility in this regard. Comparing Canada to the United States with respect to the division of governments' own-source revenues, the table shows that, while our provinces have an appreciable fiscal weight in comparison with American states, this is not the case with our municipalities when compared to their Southern counterparts.

"Those in Canada who accuse our federal government of being centralizing are missing the mark," the Minister stated. "If there is a centralizing force in Canada, it is not coming from the federal government, it is coming from the provincial governments. At least, that is what a comparison with the U.S. suggests," he maintained.

There is nothing in our Constitution to prevent this state of affairs from changing, he added. "Indeed, it has allowed for a wide variety of situations from province to province in terms of the taxing powers and responsibilities of our municipal governments."

By the same token, our Constitution in no way prohibits the federal government from having productive relations with the municipalities, while fully respecting provincial jurisdiction, Mr. Dion pointed out. While it is clear that the federal government has no role to play in municipal affairs, it is equally clear that the federal government's activities in the areas of the economy, immigration, foreign affairs, employment and so on have a profound impact on our cities and towns, he stated: "So an important distinction needs to be made between municipal affairs - which are absolutely not under federal jurisdiction - and rural and urban issues in a broader sense - which the federal government needs to address through its activities."

When federal actions influence the quality of life of our cities and towns, their competitiveness, their social and demographic character, it would be a real anomaly not to have direct and intense relations between federal and municipal leaders, the Minister stated: "The absence of such relations would be inconceivable in any federation in the world. Not only can federal-municipal interaction be established while fully respecting the provinces, it can be done with their participation, so that the three orders of government establish a maximum synergy among themselves."

As an example of maximum synergy based on a solid partnership, the Minister cited the infrastructure program and the homelessness program.  "I could mention many other examples of intergovernmental cooperation, but I think I have made my point: in addressing rural and urban challenges, governments must work together, mindful of their respective jurisdictions," Mr. Dion concluded.

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For information: 
André Lamarre
Special Adviser
Tel: (613) 943-1838
Fax: (613) 943-5553

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