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JL Progressive Conservative 197 Party of Canada. C6 New directions for A25 Cana 198,Q,TE

( D o :,,"..;'. !':!ill .....~~.~ 11 T~'bi~~r It Contents·, .. I' Introduction...... 1 Preserving Democratic Institutions. .. 2 Increasing Goverment Efficiency . . .. 6 Achieving Canada's Potential ...... 9 ,. ( Supporting Individual Initiative 17 Enhancing Individual Freedom 19 ••• Consulting with Canadians 23 Building a Better Future 27 On May 22,1979, the people of Canada A great deal was accomplished in just 6 voted for change. Canadians said 'no' to months, and I owe a great deal to my Mr. Trudeau, 'no' to the notion that our Cabinet colleagues, and caucus members problems could be shrugged off or bullied who brought enormous energy and dedi- to solution, 'no' to a government grown cation to their new tasks; and to the mem- alarmingly aloof, incompetent and costly. bers of our party, without whose efforts On May 22,1979, our party was cho- and support, none of this would have sen to lead the nation - for the first time been possible. in 16 years - because we spoke to the A great deal- as you know onl y too nation's needs. We invoked the promise well- remains to be done. Canada is not of a new approach, a fresh spirit of con- yet the independent and creative nation structive partnership, candid and direct, that can be ours. But I believe Canadians and determined to deal with the very real will come to see the rightness of our reso- challenges confronting our economy and lution, come to share our vision of the our Confederation. We reflected and future, and turn again to us to realize the respected this country's greatest strength, dream. the hopes and aspirations of individual Canadians. We spoke for all we can be, for what Canada can become. And Cana- dians voted 'to give the future a chance'. On December 13,1979, after just 6 months in office, our government was defeated on its first budget. We were defeated - but we did not fail. Clearly, we made some mistakes. Clearly too, we were hampered in our progress by an obstructionist opposition. And yet for all this, we kept our word and honoured the spirit of our covenant with The Right Honourable Canadians-we began the changes that Joe Clark Canada called for, as this document September, 1980 portrays. We undertook reforms to make Parlia- ment itself more responsive and responsi- ble, and all of government more accessi- ble. We began to pare the cost of govern- ment, to curb the explosive growth in public spending that had driven up our debt and devalued our dollar. We moved quickly in a whole host of ways to liberate the initiative and spur the enterprise of all Canadians, and especially the young, the self-employed, and those engaged in small business. We produced a plan, both far-sighted and realistic, to tap the nation's energy potential. We dealt with the people and all of the provinces as equal partners working towards common goals. "- PRESERVINGDEMOCRATIC INSTITUTIONS • public opinion was molded more by direct appeal through the national media rather than through debate in Throughout the years of the former Our Parliament in 1979 Parliament; Government, Parliament has gone Unfortunately, 112 years after Confedera- • parliamentary debates and committee ownhill, the role of individual Mem· tion, the Parliament of Canada was hearings were rigidly controlled by the rs has been limited instead of viewed as increasingly irrelevant and government-of-the-day to avoid sensi- xpanded. Information which should unable to face the challenge that modern tive issues or potential embarrassment; long to you as the citizens of this problems present. Public cynicism had • the accountability of Cabinet to Parlia- untry has been withheld from you. developed because of factors both within ment was reduced through continually owwe, as a national government as and outside of Parliament itself: changing ministerial responsibilities; eof our first acts in office, have • the complexity, scope and cost of gov- • other forums (referenda, federal- un to change fundamentally, the ernment activities had made mean- provincial conferences) had usurped wers of the people's institution, the ingful parliamentary scrutiny more dif- Parliament's role in debating national wers of Parliament." ficult and time-consuming; issues. imeMinister Joe Clark • key decisions were made by Cabinet Televised House of Commons proceed- order or by regulation, thereby avoid- ovember 1979 ings revealed an arena where protagonists ing both the legislative process and attempt to outshout each other, where parliamentary review; information is hidden rather than shared, eProgressive Conservative Party • government secrecy reduced the avail- where decision-making is notable by its alueshighly our parliamentary system of ability of information (even to MPs) absence, and whose relevance to the real vernment as the most effective means making assessment of new policies world is not readily apparent. It is not ensurethe preservation of Canadian difficult; surprising, then, that the public has come mocratictraditions. Throughout to view Parliament with some scepticism. nada'shistory, our nationaIParliament, The intransigent attitudes of govern- heritedfrom Britain and amended to ment leaders, deteriorating public rittheCanadian environment, has been support, and the complexity of current ~ primary institution dedicated to problems have seriously restricted the hievingnational consensus, pursuing ability of Parliament to function. A weak mmonobjectives, resolving difficult Parliament has real difficulties dealing oblems,and ensuring that the govern- with the issues facing the nation ... unity, ntis accountable to the people. uncontrolled government spending, Althoughthe system has its short- escalating inflation and unemployment. omings,the PC Party has a deep-rooted mmitmentboth to strengthen Iiamentand to increase public under- ndingand support of it.

angebegins - Joe Clark and Maureen McTeer enter Government House for the aring-inceremony One of the most pressl g and urgent These changes in attitude on the floor • other proposed rule changes would priorities of the new government was to of the House of Commons demonstrated have given MPs more freedom in pro- reverse Parliament's sagging reputation that the new government was prepared to posing, debating, and voting upon andauthority by giving it the attention, take Parliament seriously. Even at the risk private members' bills. ability, and will necessary to undertake its of its own discomfort, the government These changes and proposals signalled responsibilities effectively. was willing to give the Opposition the that the new government was not going to tools with which to oppose the govern- focus all its attention on a handful of Reform, Response, Responsibility ment more effectively. Cabinet Ministers alone. It planned to use The Clark government demonstrated Of equal importance were actions the full resources of the House of Com- immediately that it was intent on chang- taken to give backbench Members of mons, deal with the private concerns of ing the attitude of the governing Party Parliament a more significant role and al1 MPs, and give Parliamentarians a tothe House of Commons. Cabinet more effectively use their talents: stronger voice in the legislative process. ministers were instructed to answer • within the PC Caucus, committees Significant measures were introduced openly and truthfully questions put to were established to parallel the com- to provide the public with greater access them in the daily Question Period. If they mittees of Cabinet and provide them to government information. The most didn't know the answer, they were to find with policy and program advice; important was a FREEDOM OF INFOR- outand report back quickly. MATION bill that, for the first time, Urgent motions, presented by opposi- • Members of Parliament were appointed to head task forces to exam- established in law the right of a citizen to tionmembers, were given serious consid- obtain government-held information. The eration by the government rather than the ine significant national problems, reporting directly to Parliament; bill embodied two essential principles automatic rejection that had previously which restricted the range of information madethem so irrelevant. • rule changes were proposed to allow that could be withheld and eliminated the The Prime Minister exemplified this MPs a forum for their concerns to be discretionary power of a Minister to newapproach with the style and precision expressed directly to responsible refuse to release departmental informa- ofhis responses to all questioners. And, Ministers; tion (that ultimate power was to be vested for the first time in our Parliamentary his- in an independent judicial tribunal). tory,the Prime Minister appeared before a Because of these factors, the freedom- Commons Committee to answer ques- of-information bill met with the tions on the organization and budget of acceptance of al1parties in Parliament as hisown office. wel1 as national approval from political commentators.

By making Parliament itself more responsive and responsible, the Clark government kept its first promise with Canadians - a change in approach. I J - [, Cla,k ga"mm,nl ha, d,~matkall} • the government proposed that commit- Minority Government dvancedthe cause of open ad inistra- tees be given more staff and resources In our parliamentary system, a minority 'onwith its new freedom of information and the power to conduct independent government must perform a very difficult ill... the Tories have given the country investigations of issues or government balancing act preserving its ability to ebestopportunity it has ever had to actions; function as a government while, at the aluatethe work of the federal govern- • the government proposed that the same time, ensuring it is not defeated by nt... the Tories have concluded that Leader of the Opposition be given the the combined opposition in the House of enational interest is best served by a power to select two departments every Commons. Two factors are essential if a 'ell-informedpublic." year for intensive House of Commons minority government is to work at all .... rtawaCitizen editorial, 26/10/79) review of their spending estimates and • the government party must be willing policies. to take risks both in pursuing what it A genuine commitment to public These changes and proposals would considers to be an effective program cessto information was not the only and in reaching compromises in its monstrationof the new government's have separated Parliament's ability to act from the government's ability to restrain policies (without eliminating their ncernwith openness. Civil servants effectiveness) and reinstructed that it was their duty to that action, an essential step in main- ovidefactual responses to public taining the government's accountability to • the opposition parties must be willing eriesas long as speculation on policy Parliament. to allow the government to pursue a ttersbefore cabinet was avoided. And, Shortly after taking office, the Prime responsible course of action without PrimeMinister released to the public Minister announced stringent conflict· opposing it on purely partisan membership of the various cabinet of-interest guidelines enforceable not grounds. mmittees,the first time this informa- only on cabinet ministers but also on their The Clark government was committed nhadever been made available. families and staff. Although the guide- to some very stringent measures to deal TheClark government also moved to lines did not have the force of law, adher- with issues that had already reached crisis tore more independent authority to ence to them was a condition of entering proportions. The PCs knew that these liament: Cabinet. measures would meet with strong opposi- governmentreports were referred tion but were determined to pursue a automaticallyto the relevant Parlia- responsible course of action. As the mentaryCommittee, allowing them Prime Minister stated: morescope to question government "We were given a mandate to go\'ern activitiesand civil servants; responsibly rather than play politics, - to act in the best interests of the nation rather than ensure our own political sur- vival ... "

Prime Minister Joe Clark takes his seat in the House of Commons, and, together with his government, takes the House itself seriously

Iy and Services Minister Roch LaSalle nes plans to trim massive Uberal cost -runs, before a House Committee. This attitu.de, more than any other, The defeat of the government over the ability of the Opposition to function effec- defined Cons~rvative strategy in the Crosbie Budget demonstrated that the tively, and ensure more government minority Parliament. As well, the lessons opposition parties were not willing to per- accountability to a powerful and indepen- ofthe 1972/74 Liberal minority govern- mit the government to pursue responsible dent House of Commons. ment (where the NDP virtually ran the measures of any kind. The Ottawa Jour- The role of Parliament is critical in the Liberals) suggested that major conces- nal put it best: relationship between the public and the sionsto the opposition would be inconsis- "The government was defeated by a rag- government serving it. The PC Party tentwith the strong measures needed to tag coalition of opportunists who put the showed its commitment to a new balance curb deficits, inflation, unemployment narrowly perceived good of their own in that relationship, one consistent with andgovernment spending. In this, the political fortunes ahead of any sense of the issues of the 80's, where increasing newgovernment was generally supported responsibility towards the coulltry. government power must be tempered by a bycommentators- Finance Minister John Crosbie had the more effective Parliamentary voice. "When he took office, Prime Minister integrity and the fortitude to choose the Clarksaid that he intended to run his gov- hard options; to do what the former Lib- "The federal government's new freedom ernment as if he had an absolute majority. eral governmellt knew should be done but of information bill is being hailed as Thatis still the right approach." refused to do because it might cost some exemplary. (Montreal Gazette editorial. 21/11/79) votes ... It is, in fact, a crock. Solicitor-General Francis Fox, the Assessment of Initiatives well-known document-signer, has been Thelessons of the '72- '74 Liberal minor- There is no question that the Clark gov- parading the thing like the owner of the itygovernment suggested that major con- ernment brought a new attitude to the best-in-c1ass at a kennel show, when cessions to the opposition would be House of Commons. The personal what he has is the runt of the litter. inconsistent with the strong measures attitudes of the Prime Minister, the will- In Ottawa, the fact that the conceal- needed. ingness of Cabinet Ministers to share ing Liberals have come out for revela- Let's look at the facts of that administra- information, new legislation and pro- tion is miracle enough. If a horse talks, tion: posed rule changes were all consistent don't knock it's grammar .... Anyone who expects this government • federal spending grew by 62%; with the avowed intent to restore balance to Parliamentary activities, enhance the to reveal anything much should send • federal public service grew by 41,000 his head out for re-blocking and then people; take another look at the act." • expenditures on major capital projects rose by 70%. Walter Stewart Ottawa Journal August 21,1980

Budget Night in Ottawa always draws large crowds. December 11, 1979 was no exception.

The 1980 Campaign: Prime Minister Clark takes his case direct to the people, on a Vancouver open-line show. • billions of dollars wasted in cost- overruns, extravagence, program duplications and unnecessary projects; Inour nine months in office, we did Government Administration in the 70's • administrative practices that actually oreto open up the process of govern- The last decade produced a virtual revolu- encouraged wastage rather than ent,to give people the information tion in government in Canada, No other rewarding efficiency. dthe mechanisms to understand and period of our history saw a greater growth So serious had the problem become Ouencegovernment decision-making, in government activities, in spending and that the Auditor-General reported that anthe previous government had deficits, and in taxation to pay the "Parliament, and indeed government, nein over nine years in office." increased costs. The reasons for this has lost or is close to losing, effective 'explosion' are many, including a greater control of the public purse." That report alterBaker public demand for services, the resolution forced the government-of-the-day into esidentof the Privy Council of increasingly more complex problems, creating a Royal Commission to study ember 1979 the pressing demands of minority and government financial management and interest groups, less Parliamentary accountability. authority, and less responsible attitudes Progressive Conservative Party There was universal agreement that the towards the use of public funds. teredthe 1979 election campaign with a first priority of the new PC government Whatever the reasons, the legacy to oogcommitment to increase the effec- was to restrain, control and cut back on Canada of this overgrown, enormous eoessof government activities, to government spending. Indeed, until that bureaucracy is appalling: ueegovernment expenditures, and to happened, many new proposed programs 'nggovernment activities and costs • government deficits larger than the would simply have to wait. dermore responsible control. entire budget of ten years ago; Thesecommitments were supported by • so many crown corporations that the beliefthat it is not in the interests of government had lost count of them all; "There is, in my opinion, widespread lack of due regard for economy and nationor its citizens for government • 12,000 pages of regulations with an growbeyond a manageable size. A efficiency in the operations of the estimated cost to the taxpayer of $10 governmel1f, and inadequate attel1fiOIlto gefederalbureaucracy limits initiative, billion annually; !rietsfreedoms and, frequently, usurps determine whether programs wasting 'vitieswhich would be more effec- • personal income taxes that had many milliolls of dollars are accomplish- 'elycarried out at the provincial or increased by 500% in ten years; ing what Parliament il1fended." nieipallevel. As well, the PC Party • a public service critically lacking in (Report of the Auditor General, 1978) Iybelieves that it is the right of the management capability; payerto expect the most efficient and nomicaladministration possible in Economy, Efficiency, Effectiveness ,ertokeep the burden of taxation to a Initial Cabinet and Ministerial briefings lmum. for the new Clark government made it very clear that massive changes were required in many areas if spending and

air Stevens, President of the Treasury Board, helped cut the cost of mmentby close to half a billion dollars, in just 6 months, j , The new cabinet meets to map out priorities. Shown on a break from their I !Il J ~~~ I I·-;~"·~-:Cdiscussions at Meach Lake, Quebec, are: (Left to Right) Allan McKinnon, National III ,i Defence and Veterans' Affairs; Ron Atkey, Employment and Immigration; ~ Jake Epp, Indian Affairs and Northern Development; Erik Nielsen, Public Works; .I"! Jim McGrath, Fisheries and Oceans . t the deficit were to be brought under and became the measuring stick through These measures were designed to save control. Yet, within two months, the new which the performance of the government millions that was simply being wasted, government had developed a program to could be assessed. and remind civil servants that they were, improve financial planning, eliminate The government also moved quickly to in fact, spending the taxpayer's hard- wasteful spending practices, restrain end wasteful spending practices. Much earned money. The Prime Minister and government spending, improve manage- of the decentralization program was Cabinet also took part in these restraint ment efficiency, and reduce the scope of cancelled or deferred; new policies elimi- efforts by, among other things, severely government activities. nated the year-end spending spree when restricting their use of government The first step towards fiscal responsi- departments tried to use up all their aircraft. bility was to improve planning. Tradi- remaining funds; cost over-runs were tionally, the President of the Treasury examined by a special Parliamentary Cabinet Use of Government Jetstars Board was the only cabinet minister Committee; and a review of over- June-November 1978- pursuing government restraint. Prime classification (paying a person more than 431 trips 274,107 miles Minister Clark repraced this 'one-man' the job is worth) was undertaken. responsibility with a series of cabinet June-November 1979- committees that were required to allocate 162 trips 123,644 miles Two interesting individual examples for departmental budgets from fixed spend- What did the Clark government find the same period: ing envelopes. when it took office in June '79? This system ensured that increased Otto Lang, Minister of Transport, • With only 2 months of the current fis- 30 Jetstar trips spending in one area automatically forced cal year elapsed, 50% of the reserves a reduction in spending in another. It also Don Mazankowski, Minister of were committed. ensured that the priorities of individual Transport, 3 Jetstar trips departments were assesse.d in the context • The net debt of Canada was 6% higher of government-wide spending. And, it than acknowledged by the previous forced the government to account for its administration. Moves to restrain government spend- spending in the same manner as the • The assets of the government were ing by cutting back on budgets and taxpayer ... once the money is used up, found to be overstated by $3.5 billion. personnel were more difficult, but a start was made. Shortly after assuming power, there is no more. • The new government was presented The financial planning system was the President of the Treasury Board (and with several capital projects where other Ministers) announced: further improved with the insistence upon expenditure control systems had com- five-year spending projections. pletely broken down, where there was • a 2% across-the-board staff and budget Although funds would be assigned on a no chain of accountability or responsi- cut; yearly basis, the five-year forecasts bility for cost overruns and where no forced departments to consider the impact penalties were levied against those of their present spending against longer- accepting cost overruns. term goals and objectives. For the first time, these forecasts were identified to the public, through the Crosbie Budget,

FEDERAL GOVERNMENT DEBT DEBT CARRYING CHARGES gross debt $ billions annual charge millions $ Use of the government's Jetstars by the Cabinet was sharply curtailed by the PC Government Responsibility became more important than style.

1968 1970 1972 1974 1!176 1978 1968 1970 1972 1974 1976 1978 1980 Net Debt Increase 1968 -1978 $38.5 billion - 22% Annual Debt charges Increase $5.4 billion - 376% afour-month freeze on discretionary • the control and co-ordination of Although these initiatives had no spending; government property acquisitions was immediate impact on the budgetary a25% reduction in government reviewed. deficit, over the long term they would advertising budgets; One of the most innovative manage- have brought about a significant reduction both in overall spending and in the range elimination of some non-essential ment techniques developed by the new of government activities. programs(such as the National Com- government was the appointment of a missionon Inflation); private company to manage all govern- ment advertising and research. Working Assessment of Initiatives strictcontrols over the use of casual outside of the bureaucracy but reporting The Auditor General of Canada is an andterm employees; to a Cabinet Committee, this agency independent watchdog over government athree-year program to reduce the alone cut $17 million from an overall finances and spending. Ever critical of federalcivil service by 60,000 budget of $60 million in just nine months. government practices, he perhaps employees. Perhaps the most significant measures summed up the Clark government record best. ... Atthe same time, steps were also being were those designed to reduce the scope ento improve management effective- of government activities. These meas- "The Conservative Government seems sand program efficiency. Project ures served both to assist in balancing the to be on the right track to restraint. " nagerswere now required to assume budget and lessen the burden of unneces- (Winnipeg, 29/8/79) rsonalresponsibility for the projects sary government intervention in the lives In its short time in office, the PC y supervised, forcing them to institute of Canadians: government instituted immediate and long-range measures to deal with inflated monitor more stringent cost control • a sector-by-sector review of govern- government spending, to increase effi- asures.Many program evaluations and ment regulations was started; iewswere initiated: ciency, and to bring about a reduction in • federal and provincial ministers began the deficit. Because of these measures, YorkScarborough MP, Paul McCros- to identify areas of overlapping pro- the Crosbie budget was able to project sanwas appointed to review the grams and administration; that the deficit would have been reduced unemployment insurance program; • sunset legislation, a means of eliminat- by 50% within a four-year term in office. theForeign Investment Review ing/evaluating government programs, Agencywas examined in two separate was drafted; " The Prime Minister and his economic advisory dwarfs are harping away on studies,both by the department and • a Crown Corporations Act was tabled througha special Parlimentary Com- in the House of Commons; how you can't reduce a $14 billion mittee; budget deficit just by cutting govern- • the sale of eight large crown corpora- ment expenditures. ateamof management consultants tions, back to the private sector, was investigatedStatistics Canada; It is difficult to say exactly why not, announced. but quite frankly, the way they're hint- theArmed Forces unification program ing they are going to cut the deficit - by wasreviewed; getting rid of indexing of income tax to allgovernment advertising and the rate of inflation - goes against the researchwas studied by an agency grain of everything that is honest and outsideof the government; fair. " Dian Cohen June 9,1980

routeto the first ;ull meeting of the ralcabinetin Western Canada: NtoRight) are: John Crosbie, .nee;Walter Baker, President of Privy Council and Minister of enue;David MacDonald, etaryof State; John Fraser, ionment and Postmaster-General; MacDonald, External Affairs. Canada's potential is obvious. Yet, the nation's problems seem little different from those of less favoured countries: "No-one who travels this land, who Sustained, stable economic develop- • a 10% inflation rate we accept as a way knows its scale and grandeur, no-one ment and increased national wealth are of life; whohas dealt with the people - seen the keys to personal well-being and the • unemployment approaching I million; their skills, sensed their willingness to achievement of national goals including work-can fail to be impressed with playing a meaningful role as a member of • huge trade deficits and massive bor- our country's good fortune, and the international community. rowing abroad; unparalleled potential. • a costly and damaging dependence on Mr. Trudeau, for reasons I don't Canada Has Enormous Potential foreign oil supplies; understand, suggests that this is a time But .... • increasing poverty in disadvantaged when Canadians must lower their The future potential of this country has regions; expectations. He is dead wrong, and he been recognized many times in the sellsCanada short. This is a time to past. "The twentieth century belongs to • a large bankruptcy rate in small busi- raise our expectations, because only if Canada" said Prime Minister Laurier at nesses, our expectations are high will we go out the turn of the century; Canada is the If Canada is ever to realize its oft- and set to work and build and grow. 'breadbasket of the world' , 'a treasure- heralded potential, the federal govern- We have every reason to be confident house of natural resources', 'the sleeping ment must undertake deliberate, strong about our future." giant of the north'. All these visions share and even unpopular measures to stimulate Joe Clark the feeling that we have it all ... there is growth and productivity and resolve April,1979 nothing stopping us from becoming one some of our economic difficulties, This of the greatest nations in the world. was the challenge that faced the new With the free world's largest land mass, government when it took power in One key Progressive Conservative prin- more potential oil reserves than Saudi June 1979. ciple is the commitment to an economic Arabia, natural resources that are the system based upon individual enterprise, envy of the world, food production triple Initiative, Incentive, Independence private ownership and competition. In what we consume, and a highly educated "We hm'e to put in place a series of eco- this system, government intervention is and technologically advanced work force, nomic policies rhat pro\'ide reward and restricted to supporting increased incentive for indi\'idual initiath'es. , , . we productivity, rewarding excellence and need a government thar pro\'ides a initiative and preventing the exploitation framework l1'irhinwhich people can plan ofweaker economic units by the and work confidently so that we can build stronger ones. upon the potential of this counrry." (Right Honourable Joe Clark, December 18,1979.)

Finance Minister John Crosbie was committed to reversing the economic legacy passed on to him by his predecessor, former Liberal Finance Minister Jean Chretien.

UNEMPLOYMENT LEVELS RATE OF INFLATION OF CONSUMER COSTS number of unemployed 10% annual growth rate of C.PI.

l00,lXKl 1968 1970 1972 1974 1976 1978 1980 1968 1970 1972 1974 1976 1978 Unemployment Increase 1968 -1978, 553,CXXJ Rate of Inflation Increase 1968 -1978, 125% 9 InSeptember 1979, Industry, Trade and The Conservative energy program had CommerceMinister Robert de Cotret out- ten distinct but related components based The Progressive Conservative linedthe government's six-point strategy upon more realistic oil and gas pricing, Government's Energy Program: foreconomic development. The strategy increased government taxation, energy Aim: Self-Sufficiency wadesigneds to create an economic conservation and substitution, production There are 3 essential elements to that partnershipamong business, labour and incentives, a Canadian energy bank to policy: lovernment; increase reliance on private finance new developments, increased 1. Conservation. enterprise;spur innovation, productivity Canadian participation and the restructur- 2. Substitution: cheaper and more land investment; build upon provincial and ing of Petro Canada. The impact of plentiful fuels (e.g. gas) would help regionalstrengths; improve the economic short-term increases in energy costs on reduce our oil use. infrastructure;and encourage human low-income groups, farmers, fishermen 3. Canadian Ownership: positive resourcedevelopment. and public transit systems would be cush- measures needed to increase the propor- ioned through a refundable tax credit. tion of Canadian ownership in the energy DevelopingCanada's Energy Potential Some of the measures contained in this industry. "Of all the initiatives that we introduced program would have resulted in immedi- in ourshort term in office, none was more ate cost increases ... an 18¢-per-gallon How do we accomplish that? ,portantfor the future securir/and excise tax on gasoline was contained in 1. Move toward a more realistic price: rowthof Canada than our actions to put the Crosbie Budget of December 11, Studies have proven that higher prices placethe first comprehensive national 1979. However, gas and oil prices must are closely related to lower consump- ergy program in the history of this rise in Canada as they have risen tion. untry... everywhere else in the world. The new "Why put oil prices up then? Simply The Right Honourable Joe Clark, government recognized this fact and its because the present price bears no rela- innipeg,December 21,1979) pricing policy became an integral part of tion to what oil is worth in the world and Thebasic goal of the Clark Govern- the overall energy self-sufficiency pro- encourages waste of a non-renell"Qble ent'senergy strategy was to achieve gram. resource by underpricing it." ergyself-sufficiency within the "For some nations energy is a problem. Don McGillvray, Montreal Gazette ade. Meeting this objective would For Canada, energy is an November 12, 1979 'minateCanada's dependence upon opportunity. " 2. Rebate on gas prices: To encourage the nreliableand expensive foreign oil further substitution of gas, the PC (The Right Honourable Joe Clark, rees, improve our trade deficit, make government proposed a 20% rebate, December 21/79) nadamore competitive in the interna- payable to distributors. nalmarketplace, stimulate the econ- (The price of gas is set now at 85% the y with more investment and job oppor- price of oil.) nitiesand, in the long term, save the "zensof Canada hundreds of dollars in irindividual energy costs.

Energy self-sufficiency by 1990 was a major goal of the new government: to end Canada's dependence on costly and uncertain petroleum imports, to improve the nation's balance of trade and competitive position, to stimulate Canadian investment, industry, technology and employment - and in the long run to save Canadians hundreds of dollars in their individual energy costs. 3. Canadian Energy Bank: A joint "We have in our grasp afuture in which federal-provincial project to promote Canadian industry enjoys permanent cost Low Prices = High Consumption new Canadian-owned energy ventures. advantages over American competitors; • Canadian consumers enjoyed the low- The federal government would con- Canadian security is guaranteed by est petroleum prices of any major tribute to this Bank a substantial increasing reliance upon Canadian industrialized country: Can. $1.05 a portion of new oil-related revenues. sources of oil, gas, electricity, coal and gallon; U.S. $1.42; U.K. $2.59; 4. Self-Sufficiency Tax: To ensure the other forms of energy; and Canadian citi- w.Ger. $3.17. federal government can support new zens have an enlarged opportunity to • Canadian demand for gasoline grew by energy initiatives, and to ensure the oil invest in energy development." 4.3% between January and September companies do not benefit from (The Right Honourable Joe Clark, 1979. During the same period, U.S. windfall profits, a tax would be November 12,1979) gasoline consumption fell by nearly imposed on all revenues greater than 4%. what producers would get under the Low prices discourage both conser- existing price formula. Increasing gas and oil prices in spite of vation and new production. 5. Aidfor specific groups: Programs Parliamentary opposition and public con- would be developed to help Canadians cern clearly demonstrated the new adjust to higher prices - particularly government's commitment to facing the Canadian Dependence on Foreign Oil older Canadians, or those on lower- challenge of, and resolving, Canada's The energy policy of the Liberals and incomes, or those in regions where energy dependence. N .D. P. would see Canadian gross imports substitution is not a possibility. "Our choices were clear. We could either of foreign oil increase from 480,000 6. Encouragement for conserv(ltion: A have a soft policy that would have barrels in '79 to over 900,000 in '85. program to help individuals retrofit increased our reliance upon foreign In 1979 alone the federal government oil-burning furnaces; an industrial sources of supply, or we could have a paid almost $2 billion in oil import energy conservation program in tough policy that faced difficult decisions compensation to offset the cost of Atlantic Canada; arrangements under now with an eye to making Canada self- expensive foreign oil. which CHIP (Canadian Home sufficient in the future." In 1985 these compensation payments Insulation Program) would be transfer- (The Right Honourable Joe Clark, are projected to increase to over $5 billion red to the provinces, together with January 5,1980) per year. increased federal funding. This amount of money ($5 billion) paid out in one year to foreign governments, is enough to build an entire oil sands plant in Alberta, capable of producing 120,000 barrels of oil a day for over 20 years.

Ray Hnatyshyn (Energy, Mines and Resources) and John Crosbie (Finance) listen intently as discussion at the 1979 First Ministers' Conference concentrates on oil pricing.

Canada has more oil reserves than Saudi Arabia but has yet to achieve energy self-sufficiency. incethe Feb. 18 election they have Measures to stimulate Canadian • detailed federal/provincial discussions nedging away from their electoral investment in Canadian-owned busi- over joint strategies; ceoNo doubt they will eventually nesses were also proposed in the Budget: • careful analysis of industrial sector 'veat something very much like the small businesses were given tax relief; the studies; ryposition of last year. But Canada lending capacity of the Federal Business 'Ihave lost an entire year of progress Development Bank was increased by • ongoing consultations with business wardsthe goal of self-sufficiency." $400 million; more development capital leaders and economic analysts; was made available at low interest rates; • direct intervention to resolve difficult ancial Times and gas exports were increased as a meas- labour situations ly28,1980 ure to all~viate the cash-flow problems of small western producers, increase funds New employment and trade opportu- for new exploration and development and nities were pursued vigorously. A Minis- velopingCanada's Economic improve our balance of payments prob- ter of State for International Trade ential lems. (Michael Wilson) was given the responsi- asuresto reduce federal spending and Significant steps were taken to bility for actively pursuing trade opportu- , g the deficit under control and improve economic co-ordination and nities everywhere in the world, support- 'eveenergy self-sufficiency were planning in the country: ing the initiatives of Canadian companies ntialsteps in the long-term develop- and overseeing the expansion of our • a National Economic Development ntof the economy. However, short foreign trade. Conference in Winnipeg in January measures were also needed to spur bringing together business, labour and • A Pacific Trade Conference was wth,co-ordinate economic planning, government; organized for Vancouver to bring 'ce labour unrest, increase employ- together our Pacific Rim trading ntand trade opportunities and reduce partners. costof doing business. Immediatestimulus to the economy • Trade missions were undertaken or planned to Egypt, Latin America and provided by the mortgage deduct- the Pacific. 'Iyprogram. The mortgage interest property tax credits would have • A marketing division was created in ulatedthe sagging construction indus- the Department of Agriculture to madeit easier for all Canadians to pursue international trade theirown homes, and provided con- opportunities. erswith more money to invest or ndonconsumer goods.

At the Tokyo Summit meeting in June, 1979, Prime Minister Joe Clark met with other world leaders, (shown here with President Jimmy Carter and Prime Minister Margaret Thatcher), to review trade opportunities and co-ordinate approaches on economic problems of global dimensions. • More marketing specialists were March 31,1981. The credits were for assigned to Canadian embassies and Budget Initiatives $80 a week for full-time jobs in the consulates overseas. • To shelter lower and middle income private sector and would last for New employment incentives were families from higher energy prices a periods varying from 13 weeks to one outlined by the Minister of Employment refundable tax credit of $40 per adult year. and Immigration, Ron Atkey. They and $15 per child in 1980. These • Negotiation of affirmative action con- included a tax credit program for small amounts would have been doubled in tracts with firms in the private sector business, a private employment incen- 1981. The credit would be reduced by to stimulate employment of native peo- tives program to subsidize new hiring, a 5% of the amount by which family ple, women, the handicapped and the youth employment secretariat to co- income exceeds $21,380. disabled. ordinate youth employment programs, improvements to the vocational training • Taxpayers who employ their spouses in • $70 million for the establishment of program, the restoration of funds to unincorporated businesses, including 14,000 jobs under a National Youth women's outreach programs, and the farms, would have been allowed to Service Program to carry out projects extension of income tax deductions to claim salaries paid to the spouses as of lasting value in community service small business owners and farmers who business expenses. The value of this and environmental protection and employed their spouses. tax break would have been $160 mil- enhancement. The projects would be To reduce the cost of doing business lion in the 1980-81 fiscal year. designed in co-operation with volun- in Canada, the government undertook a • Employment tax credits would have teer groups at the national and local review of its regulations with a view to been provided to employers to create level. eliminating many and streamlining the 105,000 jobs for young people and • $50 million in special funds for labour regulatory process; a Bill to exempt 15,000 jobs for native people, the intensive projects in Quebec and the 70,000 businesses from reporting require- handicapped, the disabled and female Atlantic provinces such as small craft ments was introduced in Parliament; and re-entrants to the labour force by harbours. a committee was established to examine • Training for 120,000 young people and present conflicting requirements and many more adults under expanded regulations affecting the agriculture sec- training programs. The total budget tor of the economy. would be $806 million including $196 million which would otherwise be paid in unemployment insurance benefits. • A doubling of the budget to $20 mil- lion for the critical skills training pro- gram for high-demand trades. • Provision of$50 million for the LEAP program - half of which would have been targeted to native communities. . . t The obligaflon 0 withhold a tax of ing trade defIcits. Although the private economic strength. Over time, this 25% when the holder of bonds does sector and individual initiatives produce approach would reduce dramatically the not submit a social insurance number these innovations, they can be assisted dependence of the poorer regions upon would have been withdrawn. through government investment incen- the federal purse and make them full t A temporary Small Business Develop- tives and research/development funding. contributing partners in the national ment Bank that would have effectively The Clark government commitment to economy. cut in half interest rates for small technological development was expressed businesses. through: PC Budget Offered Assistance To • a full review of current R & D policies Capital gains tax deferral plans to Atlantic Canada and programs; encourage Canadians to invest in the 1. Tax incentives for investment in Gaspe common stock of Canadian • increased research funds for Canadian and Atlantic Canada: corporations. universities; • accelerated capital cost allowances Adeferral of tax on up to $100,000 in • increased medical research funding; and/or tax credits to be granted on a taxable capital gains for farmers from • a commitment to buy Canadian tech- selective project-by-project basis. the sale of their farm by transferring nology for government needs; 2. Tax incentives for fIshing vessels in thegains to an RRSP. • strong government support for the Atlantic Canada. Anincrease in the tax exemption for communications industry; 3. Energy: volunteer fIremen from $300 to $500. • increased support for the aerospace Optical scanners and power lifts added industry. • grants to compensate for the additional tothe list of medical expenses eligible costs of electricity generation resulting fordeduction. Strengthening Regional Economies from price increases in excess of $2 "The only way a nation as diverse as ours per barrel per year; can be strong is to build upon the capacity • support for conversion to coal or to a of the regions and to use regional coal-oil mixture in the generation of purring Technological Development strengths to build a stronger nation." electricity; Investmentin innovation is not just (Right Honourable Joe Clark, St. John's, methingit would be nice to do; it is • a program, in co-operation with the January 7,1980.) provinces, of rapid conversion to solutelyessential. Unless we innovate, The new government completely rtrade problems would grow more natural gas of oil-fired facilities, changed the approach to resolving the ere, unemployment will get worse, and especially those owned by the govern- problem of regional disparities. Where ments and the large private industrial riceswill continue to rise. " the emphasis had been upon transfer oeelark, March 7, 1978) fIrms. payments and regional development Technological innovation is a key to grants, the new approach focussed upon 4. Funds to initiate new measures or to lUreindustrial strength. New ideas and building on potential sources of real supplement existing programs aimed at ucts increase manufacturing employ- stimulating employment and economic ntat home, and can be sold abroad, development in Atlantic Canada. therincreasing employment and reduc-

New funding provisions for Research and Development - the design and manufacture of Canadian high-technology for the markets of the world - were part of the RC. budget. Michael Wilson, Canada s first Minister of State for International Trade, looks over the shape of things to come. In Atlantic Canada, the Fishery and Canada included a commitment to the In the West, considerable progress was newly-discovered off-shore resources development of a Canadian deep-sea fleet, made by the Minister of Transport, Don wereto be the key to economic recovery. tax contracts for industrial development Mazankowski, to improve the grain- Toincrease productivity and employment projects, aid to the Donkin Mine and handling system and ensure that Cana- inthe fishing industry and to take better the Cape Breton steel industry, funding for da's export commitments were met: advantage of the new 200-mile economic Fundy Bay experimental tidal power • the appointment of a national Grain wne: projects, and a developmental study of the Transportation Co-ordinator, Dr. Hugh • a major fisheries policy review was port of Halifax. Horner; undertaken, bringing together all The agricultural industry in Ontario and Quebec was strengthened with major • almost 10,000 new/renovated hopper facets of the industry; and box cars added to the railway fleet; advances being made towards a new dairy • new guidelines developed for freezer policy. This included raising the level of • 175 additional locomotives added to trawler licences; support prices for butter and skim milk, the grain handling system; • cod quota increased by 10,000 metric stricter control over dairy imports, and an • a development agreement for more tons in the Gulf; increase in cheese production for export. facilities in Prince Rupert; New milk processing and storage • private financing of fishing vessels • expanded use of Churchill and more was encouraged through changes to facilities were slated for Quebec and new grain through eastern ports; capital cost allowances on leased export markets found for industrial milk • a task force on prairie line abandon- vessels; production (evaporated milk to Mexico). Regions in Quebec were also identified ment with all abandonment frozen • an Atlantic salmon recovery strategy pending review and public hearings. was developed; for selective tax contracts for industrial relocation. Economic incentive programs • changes were made to the tax structure were expanded to include the whole CLEARING UP THE GRAIN to encourage the construction of Montreal area and much of western BOTTLENECK fishing vessels; Quebec. Agriculture production was The Clark government's appointment of a • a Marine Research Institute was stimulated throughout Canada by a new Grain Transportation Co-ordinator was an announced for St. John's. horticultural policy, a proposed meat imaginative step in trying to clear up the import law, and regulation changes allow- bottleneck that had built up in the West To ensure rapid and controlled develop- ing the use of non-Canadian labour for under the previous administration. mentof off-shore mineral resources, the summer harvest requirements. Prime Minister told Atlantic Premiers that When he announced the appointment, thefederal government would not contest Don Mazankowski committed the gov- provincial control over them. This would ernment to increasing grain exports by allowthe provinces, especially New- 20% in one crop-year-despite much foundland, to develop these resources in a skepticism from the media and other manner consistent with their own eco- sources about the ability to reach that nomic and social requirements. target. Other initiatives having a beneficial The goal was reached in July 1980- impact on the economy of Atlantic the official end of the crop-year.

Fromsea to sea: Jim McGrath, Minister of Fisheries and Oceans, proposed important tax changes to stimulate modemization of Canada's fleet, on the west coast (left), in his native Atlantic region.

Minister of Transport, Don Mazankowski, promised to increase grain exports by 20% in one crop year- and he delivered. BUDGET PRAISED BY ECONOMIC • ..... tough budget but it pretty clearly RAMATIC INITIATIVES IN AIR LEADERS demonstrated the government's ANSPORTATION The Clark government moved quickly on concern" Theimplementation of controlled a number of broad fronts to restore (Canadian Manufacturers' Associa- deregulation and the introduction of confidence, support initiative and realize tion) more competition in the air travel Canada's economic potential. The general • " ... pleased with measures to industry. economic strategy was supported by a promote investment in Canadian Therelaxation of domestic and inter- wide range of policy changes in energy, firms ... " transportation, fisheries, small business, national charter air travel regulations (Canadian Organization of Small R & D, regional development, and toprovide better service to the public Businesses) industrial and investment incentives. andincreased competition for the air- • ..... a responsible budget which the lines. The Crosbie Budget, the first Conser- vative Budget in over sixteen years, times demanded" Theimplementation of recommenda- reflected the concern over deficits. (Ottawa Journal editorial) lionsof the Chouinard Commission on unemployment, inflation and the general • " ... Medicine is tough but bilingual air traffic control in the prov- economic situation. Although opposition Dr. Crosbie's prescription is right" inceof Quebec. MPs condemned the Budget, and (WA. Wilson, Ottawa Journal) Theestablishment of a full inquiry into defeated the Clark government because of • ..... careful sustained policy of fiscal ~rsafety as a result of a number of it, economic leaders were quick to restraint that aims at bringing about incidentswhich had aroused public support it. gradual improvement ... " concern. The day after the Budget, the Toronto (Ronald Anderson, Globe and Mail) Stock Exchange registered the strongest daily gain in almost four years, rising Improvements to the transportation 32.80 points. Editorials and commen- "No anti-inflationary policy has been rastructure were designed to help tators registered their support: developed or announced. The govern- 'ionsand improve economic potential. ment has claimed recently that "we regionalair carrier policy was being brought down the Bank Rate" - hop- veloped;VIA Rail services were ing the public would not understand nded into northern Ontario; a regional that the reduction has been wholly ceof the Canadian Transport Com- because of falling interest rates in the ssionestablished in western Canada; U.S." navigational aids and systems were xamined; airport facilities were Financial Times raded;and changes proposed to the July 28, 1980 rationof the St. Lawrence Seaway hority.

~ •• (/[>(., •••• Ilnb .moll REPORT ON BUSINESS • The Toronto Stock Exchange, a reliable barometer of business confidence in the economy, registered the strongest daily gain portation initiatives were undertaken to improve in 4 years, following the introduction of the PC. budget. public service and public safety, and to free the flow de and forces of competition. "If we are to secure our future in this Government has reacted eagerly to the government's approach to economic, newdecade we must look again to the increasing demands upon it. Larger social and cultural policies as well as individual citizen as our instrument of bureaucracies and more expensive pro- internal planning and evaluation action, and our instrument of grams are measures of the demands and activities. Parliament itself was a direct accomplishment. " issues to which government attempts to beneficiary of this new approach. respond. A relationship has developed Individual MPs were appointed to head TheRight Honourable Joe Clark between an 'all-powerful' government Task Forces, provide special advice, and January 21,1980 and an 'uninvolved' public which has act as Ministerial representatives in key produced: policy areas: Fundamental to the philosophy of the • inflexible bureaucracies adhering • Bob Holmes (Kent)-special Native Progressive Conservative Party is a belief rigidly to rules and procedures; Land Claims negotiator; inthe importance of the individual • policy, planning and programming • Doug Neil (Moose Jaw)-Prairie Rail citizen. Individual initiative and creativity components in governments that view Line abandonment advisor; havealways been essential ingredients in themselves as the sole source of nation-building, in creating wealth and • Jack Murta (Lisgar) - Task Force on expertise; achieving excellence. grain transport issues; In order to maintain the focus on the • a complexity of laws and regulations • Paul McCrossan (York-Scarborough) individual, the PC Party believes that it is restricting creativity, producing costly - special advisor on the unemploy- essential that government at all levels be delays and ignoring new ideas; ment insurance program; keptas close to the citizen as possible, • a focus on big issues, problems and • Bob Wenman (Fraser Valley West)- thatgovernment programs, policies and responses where personal initiatives Parliamentary Committee on the vol- administrative practices allow for mean- and energy disappears. untary sector in Canada. ingfulcitizen participation, and that When the Progressive Conservative In social policy, the change in focus government provide incentives to encour- Party came to power, one of its objectives was dramatic. The new government ageindividual responsibility. was to restructure the strained relation- proposed that increasing reliance should ship between government and the indi- be placed upon the voluntary sector both The Individual In Canadian Society vidual by paying attention to individual reducing government responsibility and Therapid growth and expansion of contributions to personal well-being and increasing the flexibility and success of government, at all levels, in the last the resolution of national problems. strategies designed to address social and decade has threatened the role of the cultural issues. The most spectacular individual citizen. As the country People Can Do It Better example of this change in focus occurred becomes more intensely urban in charac- Reliance on and support of individual with the Indochinese refugee program terand as problems become increasingly initiative was reflected in the new (the boat people). complex, so has the tendency increased to Traditionally, refugees coming to relymore and more on government to Canada were the exclusive responsibility resolve problems, provide leadership and accept responsibility.

Our greatest strength - individual enterprise. Don Mazankowski announces the appointment of Doug Nei/, M.P. (Moose Jaw), to conduct a task force into rai/line abandonment. fthe government. In July, 1979, • allowing tax deductions for wages to • native peoples' groups were given the xternal Affairs Minister MacDonald spouses; right to become full participants in d Immigration Minister Atkey • reducing the tax on sales of farms upon future constitutional reform talks; nounced a plan whereby the govern- retirement; • commodity groups and farmers' entwould sponsor one refugee organizations were more fully con- oreach refugee sponsored pri vatel y. • amending the RRSP program to permit individuals to invest in Canadian sulted on changes to agricultural is would not only match government policy; lionto the public commitment but also businesses; lowtwice the number of refugees • developing employment programs • special Parliamentary committees and task forces were mandated to hold enter the country. The public response through the private sector rather than 'asoverwhelming and the program through government make-work; nation-wide hearings before reporting. asthe most successful in the history of • assisting individual Canadians to own Steps were taken to increase the anada. and maintain their homes through the autonomy and responsibility of the Yukon Indian Affairs policy received a drama- mortgage tax credit program. Territorial Council .... a significant move towards provincial status. And the change in direction when the Minister Canada's foreign affairs policies were Indian Affairs, Jake Epp, announced emphasis on deregulation was designed also to reflect this change in emphasis. not only to reduce the cost of government t initiatives for resolving native eco- Foreign aid spending was to be chan- micand social problems would move but also to give the system more nelled into projects that boost the flexibility. localband councils and local economy of the recipient countries. vernments on reserves. The gov- Agricultural aid overseas was to focus on Private Versus Government Initiative ment would provide support, assisting developing countries to develop Much of the philosophical thrust of the pertise and funds but the plans and their own national food strategies. Clark government's activities was ogramswould be developed by the local This commitment to individual designed to move away from ndsand would reflect their own needs initiative was also demonstrated in the government-dominated programs and dcircumstances. government's practice of consulting con- policies towards a system in which the TheMinister of Health and Welfare, cerned citizens and interest groups private sector and individual Canadians vidCrombie, proposed that the gov- before undertaking major new pc!icies: were encouraged to build a personal stake nmentwould consider changes to the • foreign affairs policy review was to in the country. nadaPension Plan to recognize the The decision to give Canadians direct ntributions made by housewives who include, for the first time, partici- pation by citizens' groups; ownership shares in Petro Canada was mainedat home to care for children part of that thrust. As a crown corpora- herthan entering the labour force. • a new fisheries policy was to be tion, Petro Canada belonged to (and Inthe area of economic policies, drafted with the assistance of a accounted to) the government and not to cialincentives were proposed to committee representing the entire the people of Canada as individual port and encourage small businesses industry; citizens. The changes proposed to Petro dfarmers, the backbone of the Canada would have given all Canadians a nadianeconomy. In fact, the thrust of personal stake in the company and y economic programs focussed on allowed them direct participation and ividual and private initiatives: involvement in energy-related endeavors.

ian women, staging a march from Montreal to Parliament Hill to protest discrimination under the Indian In response to the crisis of the Cambodian Boat find a sympathetic ear when they talked to Indian Affairs Minister Jake Epp. Previous administrations people, Immigration Minister Ron Atkey (shown allbut ignored their pleas. here) and External Affairs Minister Flora MacDonald designed a program that relied directly on the initiative and generosity of individual Canadians. • women still receive less pay than men, hold most of the low-paying jobs and few of the higher-paying jobs; "Wecan make changes in our institu- Infringements on Individual Freedoms • native people are restricted in their tionswhich restore the sense of Canada On the surface, Canada is one of the most ability to pursue their objectives and asa place where individuals can go out democratic nations in the world. Relative are locked-in to a dependency relation- andfind their own future, as a place to prosperity, a Bill of Rights, a Human ship with the government; growfor individual Canadians. We can Rights Act and democratic political • social stereotyping acts as a barrier to establish in this country a standard institutions assure the majority of economic opportunities; where men and women work together Canadians the financial security and asequals in our society." political stability necessary to pursue • inflation is eroding the economic their own ambitions and goals. security of low-income groups; Prime Minister Joe Clark • social programs face serious adminis- November 1979 For a large minority, however, this trative and policy problems; same economic freedom and flexibility • jurisdictional overlaps, overcrowding does not exist. For a number of reasons, TheProgressive Conservative Party and outmoded practices impede the our system and institutions provide them believesthat a nation exists to protect and fair application of the judicial system. with fewer opportunities or put barriers in lerveits citizens. The role of government All-encompassing government and their way or restrict their ability to is to create an environment in which achieve minimum economic standards: indi vidual freedom cannot exist together. peopleare both free and secure to pursue Problems with government accounta- iheirown goals with as few restrictions as • senior citizens in increasing numbers bility, secrecy, and bureaucratic possible.The Progressive Conservative are falling below the poverty line; complexities have decreased the ability of Partybelieves that equal opportunity for • many Canadians are forced to live in the individual to understand or cope with all is an absolutely essential condition for inadequate housing; government demands and programs that ihisindividual freedom. often conflict with individual rights. To this end, an effective government Although these problems do not mustuse its power to assist citizens and concern the majority of Canadians, those !roupswho, for social, economic or most effected are increasingly concerned. culturalreasons, are less able to help The Conservative government was con- ihemselves. It must also prevent the vinced that it could begin to redress these exploitationof individuals and groups by imbalances both by undertaking new thestronger elements in society. The policy initiatives and by changing internal !overnment must pursue these objectives administrative practices. in the national context as well as con- ductingits own activities according to ihesame principles.

~ealthand Welfare Minister David Crombie personally investigates pollution-related health problems on the St. Regis Indian Reserve. 12 I 'smantling the Barriers • Health and Welfare Minister Crombie The review of the use of social Our commitment is based upon three went alone to the St. Regis Indian insurance numbers, the reduction in ndamental principles. First, to support Reserve to resolve a pollution and paperburden on small businesses, the qualityand independence in society. health problem; review of regulations, and the review of lcond, to develop laws. policies, and • Immigration Minister Atkey met with overlapping in Justice and Consumer rograms to increase personal and social concerned groups to deal with racial Affairs Departments were all parts of the curity. Third, to achieve equal recogni- discrimination allegations against his program to eliminate unnecessary or 'onand rewards in the workplace." officials; restrictive government practices. Rr.Hon. Joe Clark. January 28.1980.) The new initiatives in foreign affairs From the public perception, the most • Postmaster-General Fraser met labour showed a commitment to the cause of and management to discuss necessary pparentbarrier to freedom is the human rights around the world. External ration of government itself. The more changes to the operation of the Post Affairs Minister MacDonald attained overnment intrudes and regulates, the Office; international recognition in her efforts to orea citizen's ability to function as he • Multicultural Minister Paproski met promote human rights. Before the United eases is restricted. The more distant the multicultural press to resolve Nations, she called for the creation of an overnment becomes, the less able problems relating to government Under-Secretary General for Human citizen is to influence it or change its advertising; Rights to give strength and action to that actices. • Labour Minister Alexander met with body's commitments. That was followed Freedom-of-information legislation, labour groups to resolve strike prob- up with a commitment to allowing the UN reased consultation, reviews of regula- lems without resorting to legislation. to investigate any complaints about nsand paperburden, more Parliamen- human rights violations in Canada. ~ycontrol and changes in ministerial A New Brunswick Indian Chief Major initiatives were undertaken with itudes were all designed to open up the expressed the spirit of the new attitude respect to improving the equality of ocessand make government more best after meeting with Prime Minister women within government and outside cessible to the public. A more informed Clark, the first such meeting his federa- of it: blicand more institutional controls tion had ever had with a Prime • the role of women in the Armed Forces Minister. ... "Ten years ago, we couldn't ergovernment activities would work a was greatly expanded; fW relationship between government get a meeting with an Indian Agent; d the people. today, we are meeting with the Prime • the budgets of the Status of Women Co-Ordinator and Advisory Council Individual ministers demonstrated a Minister. " ongcommitment to meet directly with were expanded, despite government ncerned groups to work out immediate restraint; solutionsto difficult problems:

External Affairs Minister Flora MacDonald attained international recognition in her efforts to promote human rights. During a visit to Cameroon, she met with Paul-Emile Cardinal Leger.

management and labour were involved in discussions Postmaster-General John Fraser, seen here touring mainOttawa Post Office. During the PC administration, e was no disruption to postal service, a welcome ge for everyone. • funds were restored to Women's Changes to the policy and practises iture control and a clearer allocation of Outreach programs, and new women's of the Department of Indian Affairs priorities. Assessment and evaluation of employment strategies planned; were equally significant. Native partici- existing social programs was also begun: pation in constitutional talks was both • contributions of women to farms and • Emmett Hall headed a Commission to small businesses was recognized, and symbolic and practical recognition of their examine the national health care place in Canadian society. the tax system changed to reflect it; program and ensure its national • a committee was established to • Band councils were to be given greater accessibility; control over their own economic and develop guidelines to eliminate sex • The unemployment insurance program stereotyping in the electronic media; social development. was to be reviewed and completely • all Cabinet documents were reviewed • A land claims negotiator was overhauled; appointed to actively pursue agree- for the implications of new policies on • A Committee of Parliament inves- women; ments in the various parts of the tigated the social needs of handicapped country. • affirmative action programs within and disabled Canadians; • Native groups were involved in discus- government were evaluated to improve • The Throne Speech promised a full sions to amend the Indian Act to the government's performance in this review of pension programs, portabil- area; remove clauses discriminating against ity and the financial situation of senior women. • voluntary agreements were negotiated citizens; with corporations dealing with the • A new five-year program was initiated • An extensive survey of rehabilitation to provide aid to native women. government respecting their affirma- workshops was undertaken to assess tive action; • The native health care system was main- skill development programs and eco- • Criminal Code changes were proposed tained until a new more comprehen- nomic opportunities. to enhance the protection of women sive program could be developed. The rapidly escalating costs of hous- ing, because of market and interest and to eliminate discriminatory The largest portion of government factors, was having a serious effect on the practices; resources is invested in social programs, ability of low and middle-income groups • spouses' allowances were extended in both in direct federal initiatives and in to obtain adequate accommodations. To the event of the death of a spouse federal transfer payments to the prov- meet this problem: receiving Canada Pension Plan inces. The new government planned to benefits. bring order to this area through the • the mortgage tax credit program was to reduce the montWy cost of mortgages; These actions demonstrated the attitude creation of a Minister of State for Social within the new government to improve Programs. As well, funding for all social • the property tax credit was to reduce theopportunity of women to compete and programs was to be contained within one the burden of property taxes, a factor achieve as equals. In.these actions, the 'spending envelope' to ensure expend- affecting the ability to maintain a government recognized that equality house; would be achieved only through volun- • shelter allowances for low-income and taryrecognition and support of that senior citizen renters were discussed principle. with provincial ministers;

ThePC Government led through example in its struggle to make women equal partners in Canada. Defence Minister AllanMcKinnon, for example, expanded the roleof women in the Armed Forces.

The PC mortgage interest and property tax program was designed to make home-owning more than just a dream for more Canadians than ever before. reviewed with the provinces areas Benefits of Mortgage Tax Credit where federal laws conflicted or over· Program lapped with provincial jurisdictions. Mortgage Interest Homeowner Property Divorce and child-custody procedures Credit Tax Credit Total and laws respecting young offenders were 1979 312.50 62.50 375.00 re-evaluated. And, because of concerns 1980 625.00 125.00 750.00 of various groups, the new gun control 1981 937.50 187.50 1,125.00 legislation was referred to a Parliamen- 1982 1,250.00 250.00 1,500.00 tary Committee for review. Aim: - to ease the burden of buying and meeting the costs of a home; -to stimulate the important, largely Canadian-owned housing industry; A Good Beginning - to create jobs in that industry. Given economic problems and govern- ment deficits restricting the ability of the new government to undertake new the structure and operation of the A new publishing policy was initiatives, an impressive start was made Canada Mortgage and Housing Corpo- announced to encourage and support the to both increase individual opportunities ration were reviewed; Canadian book-publishing industry. and eliminate institutional barriers. Clear the terms of the Assisted Home Provincial and federal ministers met to policy directions were articulated, major Ownership Program which were forc- develop ways to encourage and diversify policy evaluations undertaken, control ingpeople out of their homes, were private and corporate funding for the and co-ordination improved, and govern- reviewed. Arts. The Canadian Consultative Council ment activities brought into line with on Multiculturalism was restructured and stated objectives. Cultural policies provide ethnic many of its members appointed on the Major interest groups such as the oups,artists, writers, and individuals advice of community leaders and ethnic Native Council of Canada, the Publishers olved in building Canadian culture and organizations across the country. Council, and women's advisory groups aintaining cultural diversity with neces- To increase the flexibility of nada's expressed renewed faith in government y resources and support. A complete legal system, to ensure accessibility and attitudes. And, although Cabinet Minis- iew of cultural policies was under- to correct some obvious discriminatory ters could not meet with every interest kenby an Advisory Committee practises, Justice Minister Flynn group or resolve every problem, their ~ointed to provide Secretary of State concern with and commitment to a more vidMacDonald with the basis for a open and less discriminatory social uePaper representing the attitudes and environment were amply demonstrated. ommendations of cultural groups ossthe cOJ.mtry.

Secretary of State David MacDonald took a personal interest in establishing a new publishing policy to encourage and support the Canadian book-publishing industry.

govemment developed several rams to encourage construction address the problem of the rapidly atingcosts of housing, particularly wand middle-income groups. National Tension and Mistrust The last ten years of Canadian history brought a marked increase in national " ..• we had started an entirely differ- The Progressive Conservative Party tensions that threaten the unity of the ent approach to uniting the nation- believes that the strength of a nation lies country itself. Tensions between French the approach of building a sense of in the ability of its citizens to achieve and English, between the various regions, Canada on the things that we accom- consensus on both the resolution of its between business and labour, between plished together as a nation. problems and its goals for the future. federal and provincial levels of govern- In fact, that is the traditional way National unity and achievements can ment decreased the willingness of this nation has been built. Ours is an come only if Canadians in all parts of the Canadians to co-operate with each other. active history - building railways, country see and feel that they are being Although real problems form the basis building seaways, building pipelines, treated fairly and have a voice in shaping of some of these tensions (economic building farms and towns and families the nation. disparities, cultural diversities), the and history. Our literature, our mm The role of government, especially the activities and attitudes of the federal and our art, they are developing federal government, is critical in the government tended to aggravate rather dramatically, but we remain a nation development of this national consensus. than reduce them, becoming just another whose people are better known for By its actions, the government can combatant in the 'civil war' of words. Its what we do than for what we say. support consensus, pursue compromise role as arbitrator and referee all but And we have done a great deal as solutions to problems and foster a disappeared as it fought to protect itself Canadians acting together - we have a co-operative atmosphere among all parts and its own institutional interests. proud history in war, and a construc- of the country, creating the environment The federal government also took the tiverecord in international develop- essential to our future well-being. attitude that it is the only real government ment. We have invented new technol- The PC Party feels strongly that that matters, that other governments and ogies, created new wealth, populated national leadership does not involve tel- interests are always subservient to its halfa continent in the face of winter ling people what to do so much as own .... and wilderness and incredible hard- assisting the nation to articulate its""-- "We have been told repeatedly that the ship. objectives and then following that attitude of politicians and civil servants in Our challenge now is to make the consensus. Ottawa towards their provincial counter- nation become a family to our own pe0- parts is that of a superior dealing with an ple." inferior .... we cannot help but regard this as a significant cause of conflict ~TheRight Honourable between governments" JoeClark (Report of the Task Force on National High River, Alberta. Unity) June 1980

Seeking consensus through co-operation, Prime Minister Clark convenes a Federal Provincial Conference. "I don't know ifl say these things confusions have exposed real weaknesses only the most recent and the most because I believe them or because I just in the constitutional structure of the dramatic. The Economic Council of like bugging people. " country. Where constitutional change Canada recentlY reminded us thar "el'en requires virtual unanimity on both objec- if there were n; changes infederal- Linda Griffiths, as Pierre, tive and procedure, the environment has provincial constitutional arrangements, inher one-person play never been more hostile. Deep-rooted and even without increases in oil and gas, Maggie and Pierre antagonisms and personal confrontations the federal-provincial fiscal balance and seriously threaten meaningful machinery in Canada would urgently discussions. require re-examination" .... This sense of superiority has made The Clark government viewed the We are prepared as a national itself felt both to provincial governments deterioration in federal-provincial rela- government either to launch a new study andother legitimate interests in a number tions, the lack of faith in federal along the lines of the Rowell-Sirois ofways: institutions, and declining national pur- Commission or to enter with the pro\"- • federal invasion into provincial juris- pose with real concern. It was determined inces on a joint examination of the diction through grant structures and to bring new leadership and attitudes to problem." federal programs; the federal arena and to develop effective The Right Honourable Joe Clark. • the lack of provincial or regional mechanisms to reconcile regional and December 1979 representation in major federal agen- national interests. cies having significant policy impact; • threats of federal unilateral action in Achieving a National Consensus areas where provincial governments "We must face the fact that the federal "This nation cannot be ordered together. feel they should be adequately con- government is not as able as it should be This nation must be brought together, and sulted; to manage the national economy, to help the starting step must be 10 establish a overcome regional disparities, and to basis of mutual trust, of goals that emerge • the development of major policies and conduct major national polici s. There from the community of Canada rather legislation without meaningful provin- has grown up a serious fiscal imbalance, cial or interest group consultation; than being imposed ... " not only among the provinces but between (The Right Honourable Joe Clark in the I federal government failures to meet the provincial and federal lends of House of Commons.) commitments made to provinces and government. There are many reasons for From the outset, the new government interest groups where consultation this, most of them originating ten years attempted to act upon the principles occurs. ago or more. The uneven distribution of established at the Kingston Conference in The growth of provincial power, resource revenues among the provinces is September, 1977. These principles ncreasedregional interests, continued included: ~onomic disparities and jurisdictional

~PC Party believes that national leadership does not involve telling people what do so much as assisting the nation to articulate its objectives and then following tconsensus. • changing attitudes to develop neces- • social development Ministers met in In a few areas, real progress was sary political co-operation between September to examine the medicare achieved. The Prime Minister announced federal and provincial governments; issue; that the federal government would not • controlling federal activities to resolve • cultural ministers met to discuss contest provincial authority over off- overlapping jurisdictions and funding for the arts; shore mineral developments .... giving authorities; them similar development control and • Communications Ministers met to flexibility as existed with respect to • ensuring provincial and regional par- discuss sharing of jurisdiction and underground resources. As promised, the ticipation in federal regulatory authority. federal government withdrew from the authorities and policy decisions; The continuing committee of Ministers lotteries game, honoring a commitment • consulting more effectively in the on the Constitution met in Halifax in late that had been made when the Lottery was areas of economic and fiscal policy. October to make recommendations which first established to fund the Olympic would have been considered at another Games in 1976. The Prime Minister moved quickly to First Ministers' Conference scheduled for The federal approach to the national signal the change in attitude of the December. unity debate underwent a dramatic shift. federal government. A directive to The new Cabinet Ministers spent the Plans for a federal referendum to compete Cabinet advised his ministers not to summer and fall travelling extensively with the one proposed for Quebec were institute policies affecting a province throughout Canada meeting with their dropped. The government concentrated without first consulting that province. He provincial counterparts to form the basis instead on showing its attitudinal repeated his intention to resolve off-shore of on-going federal-provincial dialogue change .... cooling down the emotional mineral rights jurisdiction and promised and consensus. Economic development, atmosphere that had characterized more open and consultative attitudes in energy pricing, native affairs, northern federal-provincial relations in general, approaching national issues. Critical development, consumer affairs, justice, and Ottawa-Quebec relations in particu- issues were dealt with in a number of and Crosbie's proposed Budget were all lar, for so many years. federal-provincial conferences: the subjects of meetings between the • an energy pricing conference in relevant federal and provincial ministers. Ottawa in November; "NineT) per cenT of the problems we have • personal visits by the Prime Minister don't depend on whaT is in The consTiTUTion to the premiers to discuss federal / bur on the disposiTion of The people run- proposals on an individual basis; ning the ship. Ir is more important to see Thatfederalism works Than TO see iT • Attorneys-General convened to deal change." with criminal code amendments and Professor Paul Fox. Unil'ersiTY ofToronro co-ordination in child custody procedures;

"This is not a country that govern- ments need to build. The Canadian people are building Canada. What gov- ernment must do is bring the builders together - create the sense of a com- mon Canadian community •••• That unity cannot be forced. You do not legislate people together. But it can be encouraged by emphasizing com- mon interests, by establishing national goals, by acting to unite Canadians, not divide them."

The Right Honourable Joe Clark May 1980 To develop a more co-operative course Although serious constitutional talks strength of all components of the nation. economic strategy, a National were halted because of the early election, The authority of this new federalism conomic Development Conference was the new government had already begun would be derived as much from constitu- lanned for early January 1980. This work on some areas of provincial tional authority as from the commitment onference, with an agenda to be concern. The task force examining of provinces, regions, interests and pproved by the First Ministers, was the deregulation was also looking at areas of individuals to a shared set of goals and a 1Stof its kind, bringing together federal impact on provincial jurisdiction. national purpose. The government's ad provincial governments, business Federal-provincial revenue sharing was emphasis on consensus, agreement and d labour groups to being examined. Great strides had been discussion was a major contributor iefine our goals for the decade ahead, made towards an energy pricing agree- towards easing national tensions, devel- assess some of the obstacles that stand ment amongst the provinces. And, oping more co-operation and a renewed (he way of achieving those goals, and Senator Arthur Tremblay was appointed sense of trust in the federal government. identify how, as governments, we could by the Prime Minister to undertake a "Since Charles Joseph Clark became ~rkwith the other economic partners, to complete review of the federal position Prime Minister a little over four months ercome those problems and achieve the with respect to constitutional reform and ago, he has moved slowly in imposing his eatpotential of Canada." provide new proposals as one basis for views on Canada .... has concentrated e Right Honourable Joe Clark) ongoing federal-provincial discussions. on agreement. co-operation, trust and Social, cultural and administrative consensus as methods of government." licies also reflected the move towards Federal Rather Than Central (New York Times, October 1979) re co-operative partnership. The activities of the new government pointments to federal boards and were designed to shift the emphasis in ncies were made in close consultation Ottawa from its centralizing stance "The government has devoted what Ihprovincial and regional interests. towards one more truly federal. The energy and drive it could muster to jar policy changes involved advisory difference is substantial. The centralist revision and patriation of the B.N.A. mittees composed of affected groups. government, viewing all other interests as Act. But the whole effort has been d areas of government activity of real subsidiary to its own, was to be replaced called in question by unrealistic dead- vincial or private concern were with a federal government, viewing itself lines and the government's own con- iewed and evaluated (metrication as representative of the diversity and frontation stance in talks with the gram, oper '(ions of FlRA and Statis- provinces. " Canada) Financial Times July 28, 1980 "We started a range of major changes Energy Self-Sufficiency: A comprehen- The election of February 1980 brought in this country, not simply in particular sive energy strategy was developed to to a halt much of the thrust of the Clark policies but in the attitude our ensure Canada's energy needs would be government. Once again the Liberal government takes to the people of met entirely from domestic sources by the government appears committed to I Canada and the nation's future." 1990s, at prices significantly lower than expanding government activities; the prices paid by other countries. drive towards energy self-sufficiency has The Right Honourable Joe Clark Individual Freedom: Freedom- all but disappeared; the federal deficit is of-information policies, deregulation, rising; and, the co-operative spirit is In the seven months in office, the Clark support to the voluntary sector, new quickly vanishing. The difficult decisions government made an impressive begin- social policies, and a commitment to are, once again, being put off and, in the ning, putting new ideas, new energy and equality of opportunity were all part of an long run, Canada will only suffer because new principles to work to build a better effort to make individual Canadians of it. future for Canada: count for more. The task for the Progressive Conserva- tive Party for the next few years will be to Parliamentary Reform: Institutional Federal/Provincial Co-Operation: A fight vigorously to maintain the principles changes were proposed, and new attitudes more co-operative approach to other and initiatives that we undertook when demonstrated, to make Parliament more levels of government was initiated, open we came to power. We must hold the effective in overseeing government and frank negotiations undertaken, and present government accountable before activities and representing national con- _progress towards consensus achieved. Parliament for its activities and spending, cerns. In a fundamental way, the Progressive ensure that it faces Canada's problems Efficient Administration: Financial Conservatives began the process of responsibly, and that it builds towards a accountability was improved, and steps adjusting the balance between the role of national consensus on the future of this were taken to eliminate waste, halt the government and the role of the country. government growth, and reshape the role citizen. Less authority and more openness of gove91ment. in government, a greater sharing of "There awaits the people of this responsibility, and a focus on consensus country an economic future, a social Fiscal Responsibility: A start was made and co-operation would have narrowed future, a freedom to find their own way to reduce the federal deficit both with the growing gulf between government and live their own lives that is immediate cost-cutting measures and with and the people it serves and put individual unparalleled anywhere in the world. long-term planning. enterprise and initiative to work for the But it will only be realized if we as a Economic Planning: A new develop- nation. people, and if we as a government, ment strategy was put in place to create have the courage to face facts and the more jobs, increase investment courage to make the hard decisions." and productivity, and encourage private initiative. JOE CLARK ROCH LASALLE RONATKEY PRIME MINISTER Minister of Supply and Services Minister of Employment and Immigration JACQUES FLYNN DON MAZANKOWSKI RAY HNATYSHYN Government Leader in the Senate Minister of Transport Minister of Energy, Mines and Resources Minister of Justice Minister for the Canadian Wheat Board DAVID CROMBIE MARTIAL ASSELIN ELMER MACKAY Minister of National Health and Welfare Minister of State for the Canadian Minister of Regional Economic ROBERT DE COTRET International Development Agency Expansion Minister of Industry, Trade and Minister for the CMHC WALTERBAKER Commerce President of the Privy Council JAKEEPP Minister of State for Economic Minister of National Revenue Minister ofIndian Affairs and Northern Development FLORAMACDONALD Development HEWARD GRAFFTEY lecretary of State for External Affairs JOHN FRASER Minister of State for Science and lAMES MCGRATH Minister of Environment Technology \finister of Fisheries and Oceans Postmaster-General PERRIN BEATTY ERIKNIELSEN WILLIAM JARVIS Minister of State (Treasury Board) \finister of Public Works Minister of State for Federal-Provincial ROBERT HOWIE Relations lLLAN LAWRENCE Minister of State (Transport) lolicitor-General ALLAN MCKINNON STEVE PAPROSKI l1.inisterof Consumer and Corporate Minister of National Defence Minister of State for Multiculturalism \ffairs Minister of Veterans Affairs Minister of State for Fitness and Amateur JOHN OROSBIE SINCLAIR STEVENS Sport ~inister of Finance President of the Treasury Board RON HUNTINGTON IAVID MACDONALD JOHN WISE Minister of State for Small Business and ecretary of State Minister of Agriculture Industry inister of Communications MICHAEL WILSON INCOLN ALEXANDER Minister of State for International Trade ,Iinisterof Labour

iont row -left to right: John Crosbie, Erik Nielsen, Flora MacDonald, Martial Asselin, Joe Clark, Governor General Ed Schreyer. Jacques Flynn, VatterBaker. James McGrath, Allan Lawrence, David MacDonald. ack row -left to right: Ron Huntington, Ron Atkey, Jake Epp, John Fraser. John Wise, Heward Grafftey, Robert Howie, Roch LaSalle, Uncoln Alexander. )on Mazankowski, Steve Paproski, William Jarvis, Allan McKinnon, Elmer Mackay, Perrin Beatty, Sinclair Stevens, Robert De Cotret, David Crombie, 'ayHnatyshyn, Michael Wilson. "This is our chance, our chance to plan, to grow, to build, not just for the years ahead but very far into the Cana- dian future. That is the kind of chal- lenge .•• large like this land itself, .•. that we can master. It is our kind of task. We have the skills; we can sum- mon the will as a people. This is the chance, perhaps the last best chance this century, to tap our potential, to keep faith with the Canadian future- the chance to realize the independent and creative Canada that can be ours. Canada can do it. You have said we can. You and I know we can. Let us get on with the job. "

Prime Minister Joe Clark December 1979

Ted Grant, Ottawa Information Branch, Fisheries & Oceans, Vancouver, B. C. Raymond Kao Photography, Vancouver, B. C. Department of National Defence Miller Services National Film Board of Canada David Clark, Pro.frlce Photo Canadian Press Picture Service Bruce Scott Studio, London, England