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The Effects of Federal-Provincial Negotiations on Regulation : Case THE EFFECTS Of FEDERAL-PROVTMCIAL NEGOTIATIONS OM REGULATION: CASE STUDIES IN MANITOBA AND SASKATCHEWAN 3. Jane Walker B-3. (Nons.) , Carleton University, 1981 THESIS SUBHITTED IH PARTIAL FULFLLLREMT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in the Department Communication @ S. Jane Walker 1984 SIHOM FRASER UWIVERSITY June 7, 1984 All rights reserved, This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name : B. Jane Walker Degree : Master of Arts (Communication) Title of Thesis: The Effects of Federal-Provincial Negotiations on Regulation: Case Studies in Manitoba and Saskatchewan. Examining Commit tee: Chairperson : Thomas J. Mallinson, Professor. I: 1 Liora Salter Associate Professor Senior Supervisor Rowland M. ~oher Associate Professor " w Patrick J. Smith Assistant Professor Department of Political Science Simon Fraser University External Examiner Date Approved: June 7, 1984. PART l AL COPYHlCtiT 1 ICENSE-- I. I hereby grant to Slmn Fraser University the right to lend my thesis, projoct or extendad essay (the title of which Is shown below) ' 'to u5er.5 of the Slmon Fraser University Library, and to make part181 or sinylo copier; only for such users or In response to a request from the library of nny othor unlvorslty, or othor educational institution, on its own bcthalf or. for one of lt5 usors. I furttmr agree that permission tor multiple copying of thls work for scholarly purposos may be granted , by me or the Oonn of Graduate Studies, It Is understood that copy lng or puhllcatlon of thls work for flnanclnl gain shall not be ailowod without my written permlsslon. 1 it le of Thos i s/f'roject/Extended Essay I The Effects of Federal -Provi ncia1 kgotia tions Upon .r Cable Regulation in Manitoba and Saskatchewan. I B; Jane Wal ker ABSTRACT Federal-provincial negotiations over jurisdiction have a direct impact on communication regulation, Similarly, decisions within the regulatory arena play into and affect jurisdictional disputes, The thesis exawines the interplay of regulation and federal-provincial negotiations in the field of communication policy, Two case studies are used to identify the dynawics and relationships involved: the disputes over cable regulation in Manitoba and Saskatchewan in the years 1968 through early 1984, Documentary research and interviews are used to develop a chronology of the conflicts and their differing outcomes in Manitoba and Saskatchewan, The federal Department of Communications, the Canadian Radio-television and Tel-econmunications Commission (CRTC) and the two provincial governments each had different regulatory agendas, Negotiations occurred because of overlaps and conflicts in federal and provincial objectives and in the use of regulatory instruments. The case study material indicates that neither the federal nor provincial governments csn be viewed as cohesive and indivisible units in the negotiation process; intragovernr8ental organization and activity precludes such an approach. The case studies also indicate that Hanitoba and Saskatchewan entered into negotiations for different reasons; this was a significant factor affecting the way in which federal-provincial negotiations occurred, iii In both Manitoba and Saskatchewan, the federal regulatory body (CRTC) was forced to make a major policy compromise on the issue of hardware ownership as a result of federal-provincial negotiations. The CRTCSs policy that cable licensees own a minimum portion of the external cable distribution equipment to ensure licensee compliance with federal regulation is no longer applied in Manitoba and Saskatchewan. Instead, the provincial telephone companies own and control the entire distribution system, Yet even with that cofapromise jurisdictional confl.ict remains. The thesis argues that because negotiations centred on the issue of hardware ownership, the CRTC's compromise addressed only a symptom and not the cause of interjurisdictional conflict. Basic differences in federal and provincial perspectives of and objectives for communication regulation must be addressed in policy-making in order to resolve any jurisdictional conflict. ACKNOWLEDGEHENTS Hy appreciation is extended to the many people from whom 1 have received help and support, Special acknowledgement ~ustgo to fay parents, Phil and Doreen Walker, and to Keith, Viv, Jude, Jim and Jill for their continuing love and support, Danny, who six years ago encouraged me to pursue my academic goals, f thank for his love, friendship, patience and endurance as I continue to do so. Thanks also go to my friends and classaates Jean HcNulty, Lynda Drurjr, Harguerite Vogef and Regina Costa for their support and assistance, Special appreciation is extended to Lynne Hissey with whom I have developed a lasting friendship over the last few years. A specific thank you is expressed to Lynne for the countless hours she spent typing and proofing the thesis. Finally, I would like to-thank fay senior supervisor, Liara Salter, who has encouraged my devotion to research and helped Re to focus my enquiries. TABLE OF CONTENTS ii, The DOC: An Agenda for Delegation oe,,,.s,,,.e,,s,30 REGULATORY CIRCUHSTAHCES TW MANITOBA a,,,,,,,.,,..~o,s33 iw CRTC: A National Broadcasting System ,.,,.,,,..,,,,84 ii, Saskatchewan: hn Integrated Provincial Telecommunications System ,,,.,,.,,.,,,,..,s,.,to,90 iii, The DOC: A National Telecommunications System ,,I13 THE CRTC'C DECISION: A CATALYST FOB NEGOTLATfOW, oo,,123 i, DOC NEGOTIATIONS: Shared Jurisdiction ,,,,..,,,,,,12? ii, CRTC Negotiations: An Alternative Route ..,,.,,,,137 THE OUTCOMES: CONSEQUENCES FOR CABLE REGULATZOW 1% SASKATCHEWAN ,s.,,,,,,,,,,,.,,,,,tot.~~,,,,a,,~~~145 i, Pay TV fn Saskatchewan: The Retrogression of Provincial Jurisdiction ,~,,..~.1,.,..ss.~s~t~~~~145 ii, Satellites or Fibre Optics? Hardware Ownership in Saskatchewan ,s,,,.,,,,,,..,.....,,t~,m,t,,,P~158 iii, The Cable Services Bill: Setting Hew Boundaries for Negotiation ,~,,,,,....,s~.,,,.,,,,,,.,1w,a,~157 XVo WHY DID FEDERAL-PROVINCIAL NEGOTIATION OCCUR? .,,,,.*19Y i. The Province-Building Concept ,,,.,....,e,,,,,...a199 ii. Application of the Province-Building Concept ,,,.201 iii, Limitations of the Provincz-Building Concept =,,206 vii EHDNOTES .,.,,..~.~~m..~.~l~,..~oo,o.o,~.,,.o~..~o.,0222 V, How DID NEGOTSATIDHS OCCUR? os.,,,s*.,,,oosae.mtotmi.mo22S INTRODUCTION ,*ooo*ooot*oo*oooo*ooo.o~o*~t~oti.toto-os225 ROUTES TO NEGOTIATION ,,,.,.~,.......,...,,,oto,.,o. -226 RESOURCES fW HEGOTIATION ,,,..~,.,.,oo,.,,.~.,,~~..o0228 PATTERNS IN WEGOTIATIOR .~~,,.~.~.o,.,,m.,,. to,o~,,~0234 THE OUTCOHES Of NEGOTIATION ,.,,.,,237 CONCLUSXON: WHAT WERE THE EFFECTS OF WEGDTfATTOMS? ,,243 EMDWOTES .,.o,,,.~,~,,o,,,,,~..,00~.,o,.,,,~~,to..~,,247 SELECTED BIBZICGRAPHK ,,,,~,o~,,,,,,,,,..,~t..o.,~~,o.,.to.~,24~ viii ----------BACKGROUND The Canadian state is organized under a federal system where the powers to govern are allocated between the central government and the provinces under the Br&&&i.h gpgth &gg~$.cq ---Act, Despite the jurisdictional allocation of powers in the Constitution, however, overlaps in federal and provincial activities are historically and presently a characteristic of Canada's federal system, These overlaps in federal and provincial. policy-making- activities have often caused intergovernaental conflict as each fevef of government sssks to achieve their respective objectives in a particular policy area. At times the courts are used to resolve conflicts through judicial review or interpretation of federal and provincial jurisdiction set out in the gg& &c&. Often, however, the two levels of governgent by-pass the courts and look for political means to resolve interjurisdictional disputes, Thus, federal-provincial negotiation over jurisdiction is used as an alternative to judicial review, This thesis examines federal-provincial negotiation in a specific area of governmental activity, conaunication policy. Constitutional jurisdiction over communication is not clearly defined in the &cg, When the Act was drawn up in 1867, modern communications technology was not envisioned, The Act simply states that the federal government has jurisdiction over 9qtelegraph linesn which, at the time, were the only means to transmit signals through electronic impulse, Constitutional jurisdiction over subsequent developments in technology such as telephone, radio, television, cable and satellite coamunication are not aildressed in the Act, Uncertainty regarding constitutional jurisdiction to make policy in the area of communication has helped to promote overlaps and conflicts in federal and provincial activities in the area, . Since the early 1970~~federal. and provincial governments have sought political. compromises to the question of communication jurisdiction, Political tools such as constitutional reform and interdelegation sche~eshave been discussed, most visibly at federal-provincial conferences, as ways to resolve interjurisdictional overlaps an8 confficts in the field of communication policy, To date, however, federal-provincial negotiation has failed to provide an answer to the question of how powers to regulate communication should be allocated, Overlaps in federal and provincial policy-making in the area of communication remain, Assuming negotiation related to communication jurisdiction will continue, it is inportant to understand the process of federal-provincial negotiation and its effects on communication regulation, The thesis asks a particular question: what are the effects
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