CHAPTER 7Federalism
What is federalism?
A system of government under which the constitutional authority to make laws and raise revenue is divided between the national government and some number of regional governments
Legal and sociological approaches to federalism (federal constitutions and federal societies)
Reasons for Choosing Federalism
Rational explanations: combining the benefits of greater size
(economic, security) with the retention of regional control and the recognition of diversity.
Reasons for Choosing Federalism
A federal state is ultimately sustained by a sense of political nationality or community, or, failing that, a belief that the status quo is preferable to the consequences of break-up.
When these conditions no longer exist or are under pressure (Belgium, the former Czechoslovakia, and/ or Canada at various points in time) the federal union is likely to be questioned.
Origins of Canadian Federalism
Despite the preference of some Ontario (Canada West) politicians for a unitary system of government, most leaders in the other colonies were unwilling to give up all of their powers to a new national government
Original Expectations
Although there was no consensus, it is clear from various provisions of the Constitution Act, 1867, that the federal government was expected to be the superior level of government
Legislative and revenue-raising powers Quasi-federal features of the constitution
Original Expectations
Politicians have sometimes argued that the intentions of the founders matter, but the courts have been reluctant to base decisions on these disputed intentions
Federal Division of Powers
Sections 91 and 92 of the Constitution Act, 1867 are at the core of this division (http://laws.justice.gc.ca/en/Const/c1867_e.html#distribution)
Most of the major policy fields are characterized by divided governmental authority
Ottawa’s “spending power”
The courts and federalism Peace, order and good government (POGG):
Local Prohibition case (1896) and the “national dimensions” test; Board of Commerce (1922) and the “emergency doctrine”; Anti-Inflation Act (1976) broadened the emergency doctrine
Trade and commerce (s.91[2]): Citizens’ Insurance Co. v. Parsons (1881), limited the T&C power and expansion of provincial authority over “property and civil rights”; in recent decades the courts have supported a broader interpretation of Ottawa’s power to regulate interprovincial trade
The impact of court rulings They seldom provide the final word in
jurisdictional conflicts between Ottawa and the provinces
They often provide a basis for further negotiations between governments, as was true of Re Constitution of Canada, 1981, or simply one element in an ongoing political struggle, as was the case in Reference re Secession of Quebec, 1998
Quebec’s impact on federalism Quebec governments have made special
demands on federalism, pushing intergovernmental relations in a decentralist direction
Quebec began the practice of a province opting out of a federal-provincial program and receiving financial compensation to run its own program
Special status, distinct status and asymmetrical federalism may all be traced to the demands of Quebec provincial governments
Center-periphery relations The political reality is that the influence of
Canadian provinces on federal policy and their treatment by Ottawa has often been unequal, the demands and interests of Ontario and Quebec taking precedence over those of the “peripheral” regions
Federal institutions and the process of intrastate federalism have proven inadequate to the challenge of providing satisfactory representation for provinces outside of central Canada
Center-periphery, cont’d
Saskatchewan and Alberta entered Confederation without full provincial powers
the growing economic strength of the West has sharpened, not diminished, this sense of grievance against Ottawa and central Canada
Provincial governments as champions of regional interests
Institutional reasons for the importance of provincial governments
Given the limitations of intrastate federalism, provincial governments and premiers have emerged as the chief spokespersons for the regions
Province-building Executive federalism (see Figure 7.2),
www.scics.gc.ca/pubs/fmp_e.pdf
Fiscal federalism The gap between the cost of provincial
responsibilities and the provinces’ revenue-raising is at the root of problems of fiscal federalism
At Confederation the responsibilities of the provinces were comparatively inexpensive, but this changed in the middle to late 20th century
Ottawa has entered the picture through the spending power, helping to finance shared-cost programs that are administered by the provinces
And finally…
The financing of health care and the maintenance of national standards is a longstanding source of conflict in intergovernmental relations
Federal social transfers to the provinces (see Figures 7.6)
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