IN DEFENSE OF TERRITORY: PROVINCE-BUILDING UNDER W.A.C. BENNETT by STEPHEN G. TOMBUN M.A., Dalhousie University, 1979 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in THE FACULTY OF GRADUATE STUDIES (Department of Political Science) We accept this thesis as conforming ^ to the required standard THE UNIVERSITY OF BRITISH COLUMBIA August 1985 © Stephen G. Tomblin, 1985 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department of I i"t~ i C-Z. I £ C I e n C ^ The University of British Columbia 1956 Main Mall Vancouver, Canada V6T 1Y3 ABSTRACT The thesis is primarily an attempt to provide a better understanding on how territorial conflicts influenced infrastructural development in British Columbia between the years 1952 and 1972. Primary emphasis is placed upon exploring the territorial component of province-building in British Columbia. The major theme which emerges is that the spatial pattern of economic development witnessed in the province during these years was not merely the product of societal pressure, but instead, reflected the dreams, and ambitions of the W.A.C. Bennett government. Bennett's efforts to build a better integrated provincial society played a major role in strengthening the provincial government's control over the provincial territory. Six case studies on infrastructural development are investigated: railway transportation, oil and gas development, hydro development, ferry transportation, port development, and highway transportation. The thesis analyzes infrastructural development because it is assumed that the state- centred paradigm is much more useful for explaining provincial expansionism within this policy context. The thesis has four sections. The first section provides a review of province-building, and assesses how territorial conflicts influence state infrastructure development. The second section includes a review of the political setting. The third section presents the case studies. The final section provides a summary of the findings and concludes that the Bennett government's desire to exploit infrastructure for the purpose of building a more integrated and united territory had a major impact upon the spatial pattern of economic development in British Columbia. - i - TABLE OF CONTENTS Page ABSTRACT i TABLE OF CONTENTS ii LIST OF TABLES vi LIST OF MAPS vii ACKNOWLEDGEMENT viii CHAPTER 1: INTRODUCTION 1 Province-Building 2 Society-Centred Theory 4 State-Centred Theory 9 A Time for Micro-Analysis 12 Reassessing the Linkage Between Ideology and Politics 16 The Politics of Space 18 Bennett's Inheritance 22 Defensive Expansionism 24 CHAPTER 2: THE POLITICAL SETTING 31 Frontier Community 33 Protest Party System 38 Politics of Deception and Its Institutional Base 50 Time of Relative Prosperity 51 - ii - Page CHAPTER 3: PROVINCE-BUILDING ON THE RAILS 54 Territorial Conflicts and Strategies 59 Bennett's Railway 62 Bennett's Early Development Strategy 70 P.G.E. - The Political Railway 71 Format for Success 76 Creative Financing 86 Winners and Losers 89 Role of the Provincial Government in Integrating the Territory 95 Conclusion 97 CHAPTER 4: PROVINCE BUILDING UNDERGROUND 99 Reassessing State and Society Conflicts 99 Oil and Gas Policy Under Bennett 107 The Pipeline Debate 119 History of Pipelines 122 Bennett's Oil Pipeline 132 Conclusion 141 CHAPTER 5: BENNETT'S TWO RIVER POLICY 144 Background 146 Jurisdictional Framework 147 - iii - Page' The Kaiser Deal 150 Commitment to Northern Development 153 Two River Policy 162 Winners and Losers 168 Conclusion 172 CHAPTER 6: BENNETTS DOGWOOD FLEET 173 Precipitating Event 174 The Growth of the Provincial Vision 176 Political Strategy 178 Record of Expansion 181 Shuffling the Ferries 186 Impact of Ferry Policy 187 Conclusion 190 CHAPTER 7: THE ROBERTS BANK CONTROVERSY 192 Background 195 Conclusion 209 CHAPTER 8: HIGHWAYS: ROAD TO ELECTORAL SUCCESS 211 Politics and Highway Planning 212 The Politics of Highway Construction 216 Politics of Expenditures and Revenues 220 - iv - Page Regulation and Discrimination 225 Competing Priorities and Highways Policy 235 Conclusion 239 CHAPTER 9: CONCLUSION 241 Reassessing Province-Building Under W.A.C. Bennett 244 BIBLIOGRAPHY 250 - v - LIST OF TABLES Page TABLE 1: OIL & GAS EXPENDITURES, SALES AND GOVERNMENT REVENUES 112 - vi - TABLE OF MAPS Page MAP 1: POPULATION DISTRIBUTION 34 MAP 2: MAIN RAILROAD LINES 77 MAP 3: PIPELINES 123 MAP 4: ELECTRIC DISTRIBUTION SYSTEM 170 MAP 5: MAIN HIGHWAY AND FERRY ROUTES 214 - vii - ACKNOWLEDGEMENT Many people played an important role in the development of this doctoral thesis. I was fortunate during this period of research to rely upon the expertise of many fine scholars. My co-advisers, Professors Donald Blake and Alan Cairns of the Department of Political Science, University of British Columbia, offered supervision, encouragement, support, suggestions and invaluable criticism throughout the various stages of the project. I have also greatly benefited from the comments and suggestions of Professors Kenneth Carty, Keith Banting, Neil Swainson, and Paul Tennant. Finally, my wife Lesley provided continuous support and encouragement, and remained enthusiastic while typing and retyping various drafts. - viii - -1- CHAPTER 1 INTRODUCTION Political scientists have researched many of the general features of province-building without producing specialized thematic studies of the various factors which contribute to the forces of provincialism. Province-building is, by nature, a multi-dimensional process and should be investigated through micro• analysis. The purpose of my thesis is to provide a better understanding of the territorial component of province-building in the area of infrastructural development. This will be done by examining various infrastructural initiatives adopted by the W.A.C. Bennett government between the years 1952 to 1972. The relationship between defending and claiming territory and province- building has been generally ignored in the literature. Many theorists prefer to focus upon the economic considerations which have influenced the provincialist impulse in Canada, while others approach the process of province-building as if it is merely a manifestation of regional and class conflicts. This has resulted in an incomplete view of the conception and growth of the province-building process. A major task of this thesis is to expand our understanding of how territorial conflicts and considerations reinforce aggressive provincialist responses and lead to new initiatives in government enterprise. A major preoccupation of governments is to maintain control and influence over territories that come within their respective jurisdictions. Exercising control over territory is crucial for any political elite which wishes to establish and sustain locally integrated economies, and increase political and economic autonomy throughout the territory. An understanding of the relationship between the territorial imperative and defensive expansionism ought to provide new insights into one aspect of province-building. -2- David Cameron has postulated that "contemporary political events are characterized by forces pushing simultaneously in two opposite directions toward smaller, or at least more decentralized, structures, and simultaneously toward larger, more integrative systems. The first of these is captured by the notion of regionalism and the second by supranationalism."! "Regionalism is characterized as being concerned primarily with protecting territorial integrity and economic autonomy, and preserving historical, cultural, and linguistic distinctiveness."2 "Integration refers to the condition of making whole or complete and to the process of bringing together parts. Political integration is the uniting of distinct groups, communities, or regions into a workable and viable political organization."^ Province-Building The term province-building was first coined by Black and Cairns in an article appearing in the Canadian Public Administration.^ The term refers to the rapid acceleration of provincial state responsibilities witnessed since confederation, and the new role adopted by provincial governments in representing, and shaping various provincial interests. Since 1867 the responsibilities of provincial governments have increased substantially, and this ^David Cameron, ed., Regionalism and Supranationalism (Institute for Research on Public Policy and Policy Studies Institute, 1981), p. xiii. ^Ronald Watts, "Federalism, Regionalism and Political Integration," in Regionalism and Supranationalism, ed. David Cameron, p. 5. ^See Ibid., p. 4. ee E. Black and A. Cairns, "A Different Perspective on Canadian Federalism," Canadian Public Administration, Vol. IX, No. 1 (March 1966), 27- 45, rpt. in Canadian Federalism; Myth or Reality, ed. J.P. Meekison, (Toronto: Methuen Publications, 1971). -3- has led to new directions in state-society relations, as well as to new conflicts and accommodations in intergovernmental relations. With the rise of new provincial government responsibilities, the