rontier Centre for Public Policy Annual Report 2000 rontier Centre for Public Policy Annual Report 2000
Table of Contents
Introduction 3 Presidents Message 3 Governing Board of Directors 5 Board of Research Advisors 8 Electronic Publishing 10 Outreach: Lunch on the rontier 10 -Stockwell Day on the uture of Tax Reform in Alberta -New Zealands Jim Gerard on 11 High Performance Government -ormer PM Jim Bruton on Irelands Celtic Tiger Economy -Ronald Jensen on the Pheonix Model 12 -Andrei Illarionov on the Optimum Size of Government Meetings for Policy Experts 13 Speakers Bureau 14 Publications: Policy Series 15 -The Search for Aboriginal Property Rights -Universal Medical Savings Accounts- 16 Consumerizing Medicare -Reforming inancial Management in the Public Sector/New Zealand Backgrounder: Short Analysis 17 -Deregulation, Privatization, Rebirth/CNR -Swedish Health-care Reform -Manitoba has a Larger Public Sector Media Contacts 18 inancial Position 2000 19 The People Behind CPP 20
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2 rontier Centre for Public Policy Annual Report 2000
ANNUAL REPORT OR THE YEAR 2000 This is the second annual report of the The Centres mission is to explore options rontier Centre for Public Policy, an independent for the future by undertaking research and public policy institute or think tank based educational programs that support economic in Winnipeg. The organization was founded growth and opportunity. Its activities include by a group of individuals who share a common researching current and emerging economic interest in making the Canadian prairies a and public policy issues, exploring the social better place to live, work and prosper. characteristics and economic potential of rontier is incorporated as a non-profit Canadas provinces, and organizing and organization under the Manitoba Corporations sponsoring conferences, seminars, lectures, Act and was granted charitable registration training programs and publications. by Revenue Canada on April 1, 1999.
Presidents Message
The concept of an independent public Places that will thrive will combine excel- policy think tank is a new one for many lent public services and infrastructure with people, particularly those who live in the competitive taxation. Much of the world eastern Prairies. Through our wide range understand what this means - thus the race of activities and forums the Centre explores to lower taxes across Europe, the United and disseminates new ideas that can make States and Canada. The eastern Prairies face our area a winner in the 21st century. pressure from Ontario, the United States and, most notably, Alberta, where there is The people behind the rontier Centre are increasingly serious discussion about abol- optimists. We believe we are living in the ishing the provincial income tax. The lack of most prosperous and exciting time in the a coherent and effective response will see history of humankind. Old boundaries are major shifts in the tax base and inevitable disappearing. We inhabit a global village in reductions in public services. which technology is expanding everyones possibilities. The Internet, which enables us This evolving reality can be seen as an to communicate almost anywhere for virtu- opportunity to adapt and move forward with ally nothing, represents both an opportunity new approaches that will enable us to outwit and a challenge to Manitoba. Geography is the chronic problems that are endemic to all less relevant than ever, particularly in a levels of governance in Canada. In simpler world of mobile capital and talent. times the policy makers could resort to Brainwork and high-value activities can now resource reforms or topping up the old be pursued anywhere. Governments that systems with new money. A strong case understand this will adjust their policy can be made, however, that such policies frameworks to attract these critical elements no longer work on the Prairies, much less of economic success. Rural areas, frequently in Canada as a whole. The answer lies in seen as losers in this new world, now have structural reform that can deliver more an opportunity to capitalize on the global public service for less money. information grid. Their lower living costs During the year 2000 the rontier Centre and what many consider a higher quality of extended the boundaries of political-economic life can attract new forms of enterprise. thought on the Prairies by profiling the In fact, we see tremendous diversification ideas of innovators and leaders from occurring as governments remove regula- around the world. The former prime minister tory roadblocks to change. of Ireland, John Bruton, explained how low The new mobility will increase pressure corporate taxes and a high-quality education on our governments to modernize and to system had given his country the fastest implement new policies that will deliver growing economy in Europe, thus disproving services at substantially lower cost. the orthodox thinking which held that
3 rontier Centre for Public Policy Annual Report 2000 lower taxes would downgrade public services. An informal collaboration with other new Ron Jensen, former public works director economy think tanks was broadened during described how the City of Phoenix had em- the year through the exchange of research braced public-private competition under and information and the sharing of expenses which in-house staff operated as accountable for international speakers. Brian Lee business units. He emphasized that policy Crowley, president of the Atlantic Institute makers should focus on substituting competition for Market Studies in Halifax, in particular for monopoly service provision instead of on remains a valuable mentor. the ideological debate that pits the public The year 2000 was a time of steady sector against the private sector. This dis- growth. rontier could not have accomplished cussion was extended to Canadas most a fraction of what it has without the help and intellectually tangled public policy issue, support of many individuals and organizations. health care, in a rontier seminar led by The governing board welcomed several new influential reformer Johan Hjertqvist of community leaders to its ranks. The boards Stockholm. He described how Sweden has wide range of experience, contacts and per- embraced competitive health-care delivery spectives is a critical factor in building a within a publicly funded framework to forward-looking think tank on the eastern achieve substantial efficiency and service Prairies. The Donner Canadian oundation, improvements. under the chairmanship of Allan Gottlieb, We rounded out the season with perhaps completed its seed funding of the Centre. the most surprising public policy speaker in Our first development director, Luc Tremblay, Canada all year, Andrei Illarionov, chief is managing the complexities of a promising economics advisor to Russian President fund-raising effort. Policy analyst Dennis Vladimir Putin. He presented his view that Owens was on top of a myriad of issues the optimum size of government - the size throughout the year. Claire Toews, director which maximizes economic growth and living of administration, keeps chaos at bay in standards - amounted to no more than 17% our necessarily fluid environment, working of the economy. This insight from the patiently with Robert Binding, chartered Kremlin has symbolic meaning for a region accountant and board member, to make our of Canada that is heavily burdened with old financial accounts transparent and useful. policy thinking and the slow-moving and As well, we owe thanks to the many volunteers stagnant public sector that it has produced. who have contributed their time, energy and brainpower. Our goal is to make the rontier Centre the most respected source of new public The rontier Centres appeal is to those policy thinking in the eastern Prairies. who are enthusiastic about new ideas and Our commentaries and analysis receives high the prospect of a vibrant future for the east- exposure through a wide range of local and ern Prairies. Essentially, an important task national publications. Our materials have of the rontier Centre is to perform mental been cited for their high quality of writing missionary work. As one media friend put it: and understandability, their convenient size The rontier is the intellectual equivalent and their different, positive perspective on of the Red Cross in a place with dysfunction- our changing world. rontier Centre com- ally old public policy models. mentators and guests are sought out frequently by the media. Peter Holle President
4 rontier Centre for Public Policy Annual Report 2000 Governing Board of Directors
David Asper Kenneth Cooper, P. Eng. David Asper is Ken Cooper is President Managing Director of & Chief Executive Officer Creswin Properties Ltd., of The Winnipeg Stock the real estate division Exchange. Mr. Cooper of the Asper Group of is the former President Companies. He is an & CEO of Inland Trust active member of the and has held executive Board of CanWest positions with Great- Global Communications West Life, Citibank and its Executive Com- Group and the Mercan- mittee. He formerly tile Bank of Canada. held several executive He holds a Civil Engi- positions within CanWest including manag- neering degree from the University of Mani- ing the Saskatchewan television operations toba and an MBA from the University of and overseeing all programming acquisition Western Ontario. and commissioning in the companys global He is a governor of the Winnipeg Art Gallery operations. He originally practiced law for and the Winnipeg Art Gallery oundation, several years in Winnipeg. a director of the Victoria General Hospital oundation, Chair of its Audit Committee Mr. Asper is a member of the Board of and member of its Investment Committee. Directors of the Asper Centre for Entrepre- He is also a director os the University of neurship, a ounding Director of Lieutenants Manitoba Development Council and Chair Governors Youth Experience Program, of its Annual Giving Campaign and Chair of a Director of the National Screen Institute, the Glenlawn Collegiate Scholarship oun- Vice-Chairman of Winnipegs CentreVenture dation. He is past Vice Chair of the Manitoba Development Corporation and a Director Lotteries Corp. and a recent board member of the Asper oundation Inc. of The Manitoba Theatre Centre, Manitoba Sailing Association and The Manitoba Thea- Robert W. Binding tre for Young People. Ken and his wife, Bob Binding graduated Lynn, have three sons, Grant, Neal and Ross. as a Chartered Accountant from the University of John Heimbecker Manitoba in 1966. John has been a Vice He spent three years at President at Parrish & Revenue Canada before Heimbecker since 1999. joining Versatile Manu- He graduated from facturing as Assistant MacMaster University with Controller. His last a Bachelor of Commerce position, before going Degree (inance) in 1987. into public practice, He began working for was as Controller at Parrish & Heimbecker as Pritchard Engineering. a Domestic eed Grain Bob became a sole practitioner in 1978 and trader that same year has been semi-retired since 1997. and was promoted to Mr. Binding has volunteered his time and General Manager of Eastern Trading in skills to a wide variety of activities such as 1990. In 1999 he was appointed as Vice the Main Street Project, the Wildewood Club President in charge of all grain related and the Manitoba Child Care Association. operations across Canada and the U.S. and He is currently a member of the inance presently serves on the executive commit- Committee of the Centre for Christian tee of P & H. Other professional activities Studies. include Past President of the Canada Ports
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Clearance Association; Past President of and has provided advisory services to various Winnipeg Commodity Clearing Ltd.; Director, governments across Canada and the United Martin Mills Ltd.; Chairman, The Winnipeg States. As a senior policy advisor during Commodity Exchange eed Grains Committee the 1980s he was closely involved with and Director, Smith Brokerage Ltd. John is regulatory reform and the privatization currently President of the Winnipeg Squash of government services and assets in & Racquet Club; Board member and inance Saskatchewan. He has a Masters of Business Committee member of the Winnipeg Sym- Administration from the University of phony Orchestra. Wisconsin at Madison.
Debra Jonasson-Young Murdoch Mackay Debra Jonasson-Young is Mr. MacKay was born in Vice-President and Gen- Winnipeg in 1930 and eral Manager for the educated at Laura Manitoba & Northwestern Secord and Gordon Bell Ontario Division of Videon schools. He graduated CableSystems, responsible with a BA from the Uni- for all aspects of the cable, versity of Winnipeg in digital, and high-speed 1950 and obtained his Internet operations for LLB from the Manitoba Winnipeg and 23 other Law School in 1955. communities. Debra spent Murdoch headed an 27 years with Eatons in Winnipeg in various Industrial Inquiry into capacities, latterly as the General Manager for labour negotiations in the glass industry in the Manitoba/Thunder Bay Region. Prior to Manitoba and was Chairman of the Manitoba joining Videon in 1999, Debra returned to the Labour Board for seven years. He was University of Manitoba and obtained her MBA in President of the New Democratic Party of the eleven month MBA Manitoba program. Manitoba from 1972 until 1974. Mr. MacKay Debra has been actively involved in the practices corporate and labour law with the Winnipeg community over a number of firm of Duboss, Edwards, Haight and years. In addition to sitting on the Board Schachter in Winnipeg. of the rontier center, she is also on the Board of the Associates of the University of Charlie J. Mayer Manitoba, I. H. Asper School of Business and on the Advisory Board of Business Charlie Mayer holds a Administration at Red River Community degree in Agricultural College. She is Past Chair of the Winnipeg Economics from the Downtown Business Improvement Zone and University of Saskatchewan past Board Member of Manitoba Hydro. and has owned and managed an irrigated Debra was born and raised in Winnipeg and farming and ranching currently resides in ort Garry with her husband, operation since 1965. Scott, and 17-year old daughter, Lindsay. Mr. Mayer held several ederal Cabinet positions during his career Peter M. Holle in federal politics from 1979 to 1993. In his various portfolios he was Minister responsible Peter Holle is president for the Canadian Wheat Board, Grains and of the rontier Centre Oil Seeds, Western Economic Diversification, for Public Policy, a re- and Agriculture. He was a key participant gional economic and in the General Agreement on Tariffs and social policy think tank Trade (GATT) and the Canada/U.S. free in Winnipeg. He is an trade agreement negotiations. As Wheat authority on cost saving Board Minister he pursued an agenda of strategies in government modernization and openness at the Board. and public sector reform He resides in St. rancois Xavier, Manitoba.
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Richard Morantz of the Manitoba Sports ederation. Mr. Richardson was President of the Manitoba Richard Morantz joined Sailing Association, big Brother of Canada Globe General Agencies and Big Brothers of Winnipeg. He has in 1983 and has held the served as Commodore of the Royal Lake of position of President the Woods Yacht Club, Committee Member since 1992. Richard is a of the Queens University Alumni und, on Certified Property Manager the Board of Governors of the Winnipeg and holds a Bachelor Commodity Exchange and as Regent at the of Commerce (Honours) University of Winnipeg. degree from the Univer- sity of Manitoba. He was Rick M. Riffel President of the Profes- sional Property Manager Association from 1995 Rick Riffel is a native of to 1999, Chairperson of the Mayors Tax Regina, Saskatchewan. Assessment Advisory Committee in 1997 and He graduated from the continues to be a member of that committee. University of Regina in Richard is also an active member of the 1984 with a Bachelor of Asper Jewish Community Campus Building Administration Degree Committee and the Landlord Tenant Advisory majoring in accounting Committee. His other directorships include the and finance. Rick has Sharon Home Inc., the Jewish National und, over twelve years expe- Canadian riends of the Hebrew University rience in the investment and the Winnipeg Symphony Orchestra. industry ranging from venture capital management to institutional James A. Richardson investment management and presently specializes in private client investment James Richardson received management with a major financial institu- his B. A., Economics & tion based in Winnipeg (CT Private Invest- Political Science from ment Counsel). He is a chartered member Queens University and is holder of the Chartered inancial Analysts Vice-President of James designation. Richardson & Sons, Limited. He is also President & Bruce S. Thompson Director of Richardson Oil & Gas Limited, Pioneer Bruce Thompson is Shipping Limited, a senior partner with Westmead Limited and the Winnipeg firm of Lombard Realty Limited Thompson Dorfman and a Director of TriQuest Energy Corp., Sweatman and has and Tundra Oil and Gas Ltd. practised corporate and commercial law James is also a member of the Economic with that firm for Innovation and Technology Council and the approximately forty Winnipeg Millennium Council. years. During that He is also currently an active leader in time, he has been many community endeavours which include active in a number of the Institute for Wetland and Waterfowl health and community service organizations Research, Nature Conservancy of Canada in Winnipeg, including a term as President (Manitoba Region), Ducks Unlimited Canada of the United Way of Winnipeg. He is and Duck Unlimited Inc., the Manitoba Para- presently a member of Cancer Care plegic Association, the Neeginan oundation Manitoba oundation Inc., a council Inc., the Canadian Olympic oundation and member of the Alliance for the Prevention the Youth Parliament of Manitoba. In the of Chronic Disease and a director and the past he has served as Chair of Sport for the Chairman of The rontier Centre for Public 1999 Pan American Games and as a director Policy Inc.
7 rontier Centre for Public Policy Annual Report 2000 Board of Research Advisors
MICHAEL BASSETT is a visiting BRIAN LEE CROWLEY is the founding professor of history at the University of president of the Atlantic Institute for Mar- Western Ontario. His career spans local and ket Studies in Halifax, an economic and national government as well as academia. social policy think tank that encourages As a Labour party MP in New Zealand he broad debate on strategies for economic was the Minister of Local Government and development in Atlantic Canada and nation- the Minister of Health. Dr. Bassett was ally. Dr. Crowley has been extensively responsible for promoting the dramatic involved in government and political reform reform of local government carried out and has published many books and articles between 1987 and 1990. He resides in in the field. He has advised several Auckland, New Zealand. provinces on constitutional and electoral reform. He was Manitoba Premier Howard DAVID T. BEITO is an assistant Pawleys Constitutional Advisor during the professor of history at the University of Meech Lake negotiations. He has lectured Alabama. His current research interests on economics, politics and philosophy are focused on the history of the non- at Dalhousie University (Halifax), the governmental provision of public services. University of Manitoba, the University of He wrote Taxpayers in Revolt: Tax Resist- Winnipeg and le Collège universitaire de ance during the Great Depression (1989) Saint-Boniface. Dr. Crowley was born as well as articles in the Journal of Urban and raised in British Columbia. He holds History, Critical Review, and Journal of degrees from McGill and the London School Policy History. He is currently working on of Economics, including a doctorate in a book about the role of fraternal societies political economy from the latter. as sources of social welfare during the twentieth century. Dr. Beito, a native of SIR ROGER DOUGLAS was inance Minneapolis, Minnesota, has a Ph.D. in Minister in New Zealands Labour Govern- history from the University of Wisconsin ment from 1984 to 1988. Sir Roger was at Madison. responsible for one of the most comprehen- sive restructuring program ever attempted MILTON BOYD is an economist and by a government anywhere. The program professor at the University of Manitoba included cutting income tax rates in half, whose areas of research and teaching are deregulating wide sectors of the New agricultural economics, commodity and Zealand economy, ending farm and business derivative markets, and risk management. subsidies, and restructuring and privatizing His research interests also include market- most state owned enterprises. Most oriented solutions for policies regarding significantly, Sir Roger overhauled the agriculture, resources, and economic operating philosophy of government development. He holds a Doctorate Degree agencies and departments to make them in Agricultural Economics from Purdue run as competition-oriented, bottom line University (USA) and a Bachelors Degree in business enterprises that are fully account- inance from Seattle Pacific University. able for resources they receive from He has received two awards from the taxpayers. Sir Roger retired from politics University of Manitoba for academic in 1990 and now operates an international performance and outreach, and is also a consulting firm based from Auckland, ellow of Seattle Pacific University. He has New Zealand where he lives. ON THE WEB Click to visit lectured and consulted in many countries, the Projects and served as a consultant for homepage international organizations such as United Nations. He has written over 150 articles for business and academics, and has travelled to over 70 countries.
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DAVID HENDERSON is an associate OWEN McSHANE is a public policy professor of economics at the Naval Post- consultant who specializes in strategic graduate School in Monterey, California. planning, policy analysis and the He also has a number of prominent affilia- management of innovation and intellectual tions with prominent think tanks around the property. He graduated from the University United States including Research of Auckland with Bachelor of Architecture in ellow, Hoover Institution, Stanford 1965 and a Diploma in Town Planning 1968. University, California; Adjunct ellow, He studied public policy at the University Center for the Study of American Business, of California-Berkeley from 1968-70 as a Washington University, St. Louis; Adjunct Harkness ellow, under the late Aaron Scholar, American Enterprise Institute, Wildavsky and graduated with a Master of Washington, D.C.; and a Senior ellow, City and Regional Planning with his thesis National Center for Policy Analysis, Dallas, in Urban Economics. He lectures occasion- Texas. His most recent work is on the ally at the University of Auckland to gradu- economics of health care and health ate students within its MBA programme. insurance. He is the editor of The ortune The Reserve Bank of New Zealand and NZs Encyclopedia of Economics, now in its third Environment Minister have been among his printing that communicates to a lay audi- clients. Owen McShane edits and publishes ence what and how economists think. His his own magazine called Straight Thinking award-winning articles have been published which deals with public policy from a classi- in a wide variety of publications, periodicals cal liberal viewpoint. and newsletters. Dr. Henderson, a native of Carmen, Manitoba, earned his Bachelor of LAWRENCE W. REED is president of Science degree in mathematics from the the Mackinac Center for Public Policy, University of Winnipeg and his Ph.D. in Michigans most influential public policy economics from UCLA. think tank. Mr. Reed holds a B.A. degree in Economics from Grove JOHAN HJERTQVIST advises the City College (1975) and an M.A. Greater Stockholm Council in Sweden on degree in History from Slippery healthcare policy and is director of Rock State University (1978), Health in transition, a four-year both in Pennsylvania. Michigan pilot project whose objective is to Governor John M. Engler and describe and analyse the operation many of his administrations of a competitive market within the officials have frequently cited the public health system. He has work of the Mackinac Center as successively been entrepreneur, extraordinarily influential in consultant, deputy mayor of the shaping administration Swedish city of Tyreso, author and policies. In May 1994, research director on the reform of he received an honorary social services in Sweden. He took degree of Doctor of part in the creation of a Public Administration Nordic body to implement from Central modern health care in Michigan the Baltic countries. University. He is writing a book ON THE WEB See video of Dr. Illarionovs about how new speech consumer values THE CPP BRINGS and scientific Dr. Andrei Illarionov, chief economic advisor progress are WORLD-REKNOWNED to Russian President Vladimir Putin, presents combining to THINKERS TO CANADAS evidence in a lecture at the University of change the Manitoba that the optimum size of meaning of PUBLIC ORUMS... government is 13% of GDP. healthcare. See page 12 for details.
9 rontier Centre for Public Policy Annual Report 2000 Electronic Publishing rom its founding, the rontier Centre has chief negative is limitations on presentation employed electronic publishing technology stemming from its incapacity to handle ON THE WEB fax, e-mail and now the Internet to sophisticated graphics. We expect our Visit our Homepage distribute most of its material. subscriber base to grow exponentially. www.fcpp.org This technology has allowed us to distrib- rontiers web page at www.fcpp.org con- ute innovative ideas quickly and inexpen- tains an expanding range of short and long sively. The public will be receptive to these publications. Typically we will refer to more in ideas only if they are well presented, based depth work on the website in our weekly on fact and intelligently advanced. The columns which are circulated to a mass audi- commentaries that we prepare are carefully ence in various newspapers. In line with researched, written and edited. They are keeping our site as user friendly as possible designed for a world where information we also log video and audio copies of overload is an increasing challenge: the speeches and presentations by visiting policy one-page product is sent by fax and e-mail innovators as well as noteworthy media clips to more than 3,000 opinion leaders and by staff and associates of the rontier Centre. interested parties throughout the Prairies, Website hits continue to grow aggressively. Canada and the world. Although its impossible to quantify the E-mail is gradually taking on more of the net effect, we know from feedback that our task of distribution. We download the same commentaries are finding an audience. commentary contained in ax from the rontier policy commentaries are regularly rontier and send it out to hundreds of picked up and redistributed by other media, recipients. As our on-line capability increases, including major Canadian dailies. In July more readers request commentaries by e-mail 2000 the Wall Street Journal published a instead of fax. The principal advantage of rontier piece discussing the success of CN e-mail is its low maintenance requirement; its rails privatization.
Outreach During 2000 the Centre used two speaking events products as forums for new ideas in our region. Lunch on the rontier events feature high profile policy innovators or leaders from other countries or regions. Using a convenient lunch format they allow community leaders to hear the thoughts and experiences of cutting edge policy figures. Meeting for Policy Experts are short seminars which target opinion leaders and senior decision-makers in government that explore new ideas and concepts on the frontier of public policy. These are more intimate and academic in nature. ON THE WEB Read the text of Mr. Days income residents earning $22,000 interview Stockwell Day on the uture of or less. With the lowest taxes in Canada, Tax Reform in Alberta Alberta is expected to continue to outgrow other provinces. There is no question that On January 31st, 2000 Mr. Day presented lower taxes in Alberta are drawing invest- an overview of Albertas tax reform plans to a ment and businesses from other provinces. rontier Centre audience of 300. As Albertas Saskatchewans NDP Government has inance Minister Stockwell Day speculated responded by promising to lower its own that Alberta may provide ultimate tax relief personal income tax rates significantly. to taxpayers by abolishing the provincial Recent estimates show that Manitoba would income tax. Strong growth and an aggressive have to find about $390 million in provincial debt reduction strategy that has saved government savings to match Albertas new Albertans $775 million in annual debt service flat tax. With increased tax competition payments have created the fiscal capacity from other provinces, Manitoba may have to needed to make such a scenario plausible. rethink the scope and methods of its public In 2001, Alberta moved to a simple 10% policy or suffer a major loss of investment and flat provincial income tax that exempts low- jobs to its western neighbours.
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New Zealand High Commissioner Jim Gerard on High Performance comparisons can be made between alterna- Government tive options for delivering services. It sets up incentives for decision-makers to benefit In March High Commissioner Gerard from the most effective use of resources. described how New Zealand ensures high The principles of competitive neutrality, quality public services. Government agen- measurement of results and separating the cies and policy makers from the service providers departments form the basis for high performance are required government, a concept not well understood by law to in Canada and Manitoba. focus on outcomes. Mr. Gerard outlined the principles of neu- The process trality, accountability and transparency and forces them how they have transformed the public to make policy framework in New Zealand. He also costs trans- discussed the implications of the 1999 parent so election of a Labour led coalition govern- NZ Ambassador Jim Gerard that objective ment in his country. ON THE WEB Read text of Mr. Gerards speech
ormer Irish Prime Minister John Bruton on Irelands Celtic Tiger Economy Just 15 years ago, Canadas per capita gross domestic product was two and a half times Irelands. Today, Irelands GDP is 15% to 20% greater than ours. The Celtic Tiger continues to roar aheadthe result of a dramatic policy revolution. Ireland was northern Europes perennial economic loser until it shifted course during the late 1980s. Prior to that it suffered Peter Holle and former Irish PM John Bruton meet from slow growth, a brain drain, low pro- with Manitoba Premier Gary Doer ductivity and high taxes, with militant la- leaders calibrated to preserve healthy prof- bour unions and a ballooning national debt its. Even as wages have shot past Cana- that reached 129% of GDP. In 1987 labour, dian levels, unit labour costs have declined, business and government signed consecu- reinforcing profits and the incentive to ON THE WEB: tive three-year agreements designed to See video of invest. Mr. Brutons reduce costs and boost profits. Corporate speech taxes were slashed to 10% to attract in- Ireland also benefited from European vestment. Irish unions embraced wage Union subsidies but these were a fraction of moderation and labour peace in exchange the wealth transferred by Ottawa to have for tax and government spending cuts. not provinces in Atlantic Canada. To a Public spending as a percent of the greater degree than here, these subsidies economy declined dramatically. Tax cuts were spent on worthwhile infrastructure reduced government revenues in 1988, but and the countrys education system. by 1989 economic growth pushed revenues As well as speaking to a packed Lunch on the above pre-cut levels. Growing investment rontier audience John Bruton met with several dramatically improved productivity that key policy figures including Premier Gary Doer allowed large wage increases, which union and Conservative Leader Stuart Murray.
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Ronald Jensen on The Phoenix Model of Public-Private ees eventually became Competition competitive with the private contractors as In September, the rontier Centre hosted they learned to focus Ron Jensen from Phoenix, Arizona to another on the bottom-line and successful luncheon event. David Osborne free themselves from and Ted Gaebler, the authors of the best- the low-performing selling book Re-inventing Government bureaucratic systems have called Jensen one of the true pioneers that characterize of entrepreneurial government. Management traditional government guru Tom Peters has profil-ed him to corpo- organizations. Ronald Jensen rate audiences as the confident face of the Phoenix won a prestigious award in 1994 modern public sector. from Germanys Bertelsmann oundation for Ronald Jensen became known as the father being the best-managed city in the world. of the Phoenix Model after he pioneered the With high quality services and low taxes, concept of public-private competition at the Phoenix has been one of the fastest growing City of Phoenix in response to the municipal cities in the U.S. Jensen retired several years ago, tax revolt that rolled into Arizona from but consults regularly on the Phoenix Model. He California in 1978. Rather than contract out helped Indianapolis set up its competitive waste collection, he pioneered a system service delivery system. The rontier Centre that empowered employees to compete has written extensively about that city since it against private vendors. The city employ- has many similarities to Winnipeg. ON THE WEB See video of Mr. Jensens speech
The Kremlins Andrei Illarionov on the Optimum Size of to 20 percent or even Government 17 percent, which he believes is the optimum After a challenging set of negotiations, we size of government (or managed to attract one of the most influential the size of government public policy figures in the world to Winnipeg, that will maximize Dr. Andrei Illarionov, Russian President living standards). Only Vladimir Putins chief economic advisor. so drastic a reduction, Tom In 1999, Vladimir Putin rose to power as he insists, would secure and A President of the Russian ederation with a a sustainable growth of Board reputation as a focused economic reformer. the Russian economy at Rodne He arrived with a team of brilliant young annual growth rates as economists who have developed a far-reaching high as 8 percent a year. Dr. Andrei Illarionov program to reform the beleaguered Russian In January, a simple State. Dr. Illarionov was a key architect of 13% flat income tax replaced the countrys the new plan which contained sweeping complicated tax system. There was some structural reforms designed clearly to roll irony in the Kremlins new thinking on the role back and focus the role of government. of the state. The same thinking supports a or example, Chilean-style private accumu- more optimized size of government for lation accounts have replaced state-funded Canada and slow growth, big government pension plans. Creators of the program see provinces like Manitoba. Dr. Illarionov a steep reduction of the share of national received national media coverage and, at wealth appropriated by the state through a lecture at the University of Manitoba, taxation as the key to rapid expansion and presented convincing research that countries modernization. Dr. Illarionov has repeatedly can accelerate their growth rates and living called for slashing the federal budget from standards by achieving the optimum size of ON THE WEB the equivalent of 35 percent of GDP today government. See video of Dr. Illarionovs speech
12 rontier Centre for Public Policy Annual Report 2000 Meetings for Policy Experts
As opportunities arise, the Centre periodically puts on short, limited-invitation seminars that profile cutting-edge public policy ideas for senior governmental decision-makers. Tom lanagan on Canadas David Beito on Welfare before Native Policy irst Nations? the Welfare State Second Thoughts? In July, historian and author David Beito University of Calgary Political Science provided a fascinating lecture on the role of Professor Tom lanagan dissected the mutual aid societies as private welfare prevailing orthodoxy that determines public organizations before the rise of the govern- policy towards Canadas aboriginal peoples ment welfare state. In fact, he showed how at policy seminar in Winnipeg on June7th. many well-intentioned government programs He argued that present policies enrich and snuffed out voluntary effort. After a time, empower a small elite of activists, politi- people think that the only way of cians, administrators, middlemen and well- attacking a social problem is public spending. connected entrepreneurs, while bringing Long untried private alternatives are routinely further misery to the very people it is sup- derided as unworkable and inferior to the posed to help. status quo. raternal societies in 19th-century America provided a network of services and Over the last thirty years Canadian aborigi- institutions resembling virtually every aspect nal policy has become dominated by a set of todays welfare state, including health of beliefs that sees Aboriginal peoples as insurance, hospitals, orphanages and retire- nations entitled to specific rights. Indi- ment homes. raternal societies sustained ans and Inuit now enjoy special legal privi- needy citizens from cradle to grave. leges, including rights to self-government beyond federal and provincial jurisdiction, Such associations were first and foremost immunity from taxation, court decisions mutual-aid societies, relying for their effec- reopening treaty issues settled long ago, tiveness on dues from their members, the right to hunt and fish without legal spreading risk among the larger group and limits, and free housing, education, and buying collectively whatever was needed. medical care. They were of special importance to blacks Professor lanagans new book irst Na- and immigrants, by helping to overcome the tions, Second Thoughts challenged this disadvantages of racism and language barri- framework as unworkable and ultimately ers. The high point of private welfare was destructive towards native people. Native reached during the 1920s, when almost half lanagan policy remains one of the most difficult of working-class adults in North America dvisory areas on Canadas and Winnipegs belonged to such societies. d Member public policy radar screen. The audience was represented by a diverse ey Clifton group including representatives from social agencies, private welfare organizations, and church leaders. Dr. Beito has been a member of the rontier Centres policy advisory board from its Tom lanagan inception. and Advisory ON THE WEB Board Member Read text of Mr. Beitos Rodney Clifton interview
ON THE WEB See video of Mr. #lanagans lecture David Beito
13 rontier Centre for Public Policy Annual Report 2000
Johan Hjerqvist on Swedens Swedish healthcare reform is evolving in a Healthcare Reforms decentralized and flexible manner with sophisticated urban areas leading the way Johan Hjertqvist is the Advisor to the Greater in experimentation and reform. The audience Stockholm Council on Health Reform. learned how Swedish healthcare unions, In October he provided an overview of most notably the nurses union, are champi- healthcare reform in Sweden to a Meeting oning patient choice and competition in this for Policy Experts forum. He discussed the countrys healthcare system. concept of purchaser/provider split and the There was substantial media coverage of the use of competitive and Swedish healthcare story. Mr. Hjertqvist market models within has joined the a public funding rontier advisory framework to im- board and now prove consumer writes a regular service by using newsletter treatment guar- on Swedish antees to cut healthcare waiting lists. reform for the Centre.
Johan Hjertqvist meets with students - a key CPP target market.
ON THE WEB Read text of Mr. Hjertqvists interview !CPP Speakers Bureau The rontier Centre frequently provides speakers to illuminate current issues and explain tomorrows trends. Centre staff and Advisory Board members discuss a wide variety of topics important to the community.
Selected Speaking Engagments: 2000
DATE SPEAKER AUDIENCE TOPIC
11-Jan-00 Dennis Owens Kiwanis Club Luncheon, Winnipeg Modernizing Policy in Manitoba
22-Jan-00 Peter Holle PC Party of Canada Policy 2000 Conference The Optimum Size of Government
02-Mar-00 Peter Holle Toastmasters Conference, Winnipeg Role of Think Tanks in Influencing Change
10-Mar-00 Peter Holle 2raser Institute, Student Seminar on Creating High-Performance Government Public Policy Issues, Saskatoon
11-Mar-00 Peter Holle 2raser Institute, Student Seminar on Creating High-Performance Government Public Policy Issues, Winnipeg
21-Mar-00 Peter Holle University of Manitoba Associates, Winnipeg Role of Independent Think Tanks in Society
22-Mar-00 Dennis Owens Canadian 2ood Service Executive Impact of Reinventing Government on Association, Winnipeg the 2ood Industry
26-Apr-00 Peter Holle Rotary Club of Winnipeg Consumerizing Public Services
Continued next page...
14 rontier Centre for Public Policy Annual Report 2000
Selected Speaking Engagments: 2000 Continued
DATE SPEAKER AUDIENCE TOPIC
26-May-00 Rodney Clifton Canadian Society for the Study of Post Secondary Education Higher Education in Canada 1960-2000
06-Jun-00 Dennis Owens 2ort Rouge ConstituencyProperty Rights Association, Winnipeg
12-Jun-00 Peter Holle Rotary Club, Regina Medical Savings Accounts
03-Aug-00 Peter Holle Glendale Discussion Group, Medical Savings Accounts Winnipeg
15-Aug-00 Peter Holle Retired Professional & Medical Savings Businessmans Club, Winnipeg Accounts
25-Oct-00 Dennis Owens Stonewall School Division School Choice Public 2orum
06-Dec-00 Peter Holle 2inancial Management Institute, 2inancial Winnipeg Management Reform
Peter Holle talks about Medical Savings Accounts at the Rotary Club of Regina. Publications The rontier Centre publishes a range of short and long public policy items. Policy Series are longer studies and reports. Backgrounders contain short analysis and are generally four to five pages in length. Charticles are one-page discussions illustrated with a graph or a chart. Short columns and interviews with Centre guests round out the publications product line.
Longer Reports and Studies The Search for Aboriginal als and cut them off from access to Canadas banking system. Unable to capitalize Property Rights Policy Series No. 4 enterprises or to enjoy security in their By Dennis Owens possessions, many aboriginals This paper, released in ebruary have quite rationally stopped asks the question, Why are trying to improve their lot. native Canadians less prosperous The study examines in particu- than other ethnic groups? lar how this ostracism from the The answer, it finds, lies in the prosperity around them affects exclusion of reserve Indians their behaviour in the areas of from the countrys commercial housing, agriculture and fishing. mainstream by legal restrictions It recommends changes to the contained in the Indian Act. Indian Act to remove public These provisions forbid residents policy impediments to native ON THE WEB from owning property as individu- economic development. Read the full text of this article
15 rontier Centre for Public Policy Annual Report 2000
Universal Medical Savings Currently, Accounts - Consumerizing federal and Medicare to End Waiting Lists provincial and Improve Service governments - Policy Series No. 5 underwrite Medicare By Dennis Owens and Peter Holle budgets This paper, released in July, provides an through a overview of the medical savings account complex concept and how it might be adapted within system of Canadas Medicare system. The present block grants to medical authorities. With monopoly model is progressively deteriorat- UMSAs, the same money would be divided ing. It faces recurrent crises in its present up among individual health-care consum- form despite a continuous, decades-long ers, each of whom would receive it in the allocation of more tax resources. At the form of credits deposited to a dedicated same time, Canadians clearly want to as- health-care account. With the exception of sure guaranteed, universal access to medi- a mandatory requirement to purchase cal services. A new Medicare model has the insurance coverage for long-term and cata- potential to retain universality, restore strophic care, spending from the account service levels, control costs and introduce would be controlled by the account-holder. transparency and accountability to the Hospitals, clinics and doctors would charge system. That model, Universal Medical patients for services rendered, with pay- Savings Accounts (UMSAs), allocates exist- ments made from individual UMSAs. Any ing public funding directly to individual money left in the UMSA would remain the ON THE WEB citizen-consumers of health-care services. property of the account-holder. Read the full text of this article
Reforming inancial Management in the Public Sector: Lessons Canada Can Learn rom New Zealand Policy Series No. 6 By Ian Ball, Tony Dale, William D. Eggers, and John Sacco
In December the Centre released this improved immensely. comprehensive 30-page overview of the or policymakers embarking on overhaul- financial management reforms introduced ing and modernizing their financial man- in New Zealand. It describes the most agement and accounting systems, the advanced public sector financial manage- highly acclaimed New Zealand reforms offer ment system in the world the adoption of powerful lessons. This study concludes accrual accounting and budgeting; the with seven strategic lessons on financial- introduction of a capital charge and decen- management reform for our own tralized authority by departments to buy policymakers. ON THE WEB Read the full text of this and sell assets; output-based management article and budgeting; and devolution of financial decisionmaking to departments, coupled with increased accountability. This high performance system replaced the central- ized, input-focussed, limited accountability model that remains the standard in Canada. Together, these reforms have had a dramatic impact on the New Zealand public sector. Thanks to them, the quality of financial information has vastly improved, efficiency has increased, assets are managed more proactively, accountability is stronger and public disclosure of information has
16 rontier Centre for Public Policy Annual Report 2000
Short Analysis
Deregulation, Privatization, ON THE WEB Read the full and the Rebirth of the CNR text of this article Discusses one of the Chrétien govern- ments least talked about policy successes. The renaissance of the Canadian National Railway offers a unique object lesson in good public policy. Taking the CNR out of the public sector and deregulating rail transport allowed it to jump onto the success track. Once regarded as the sad The Purchaser-Provider Split - sack of continental railroading, the CNR Swedish health-care reform has become one of the most efficient and profitable rail companies in Johan Hjertqvist provides an introductory North America. overview of Swedens changing healthcare industry. Signs of change are also appar- Manitoba Has Larger Public ent in the health-care industry: privatized ON THE WEB Read the full hospitals, clinics and medical practices of Sector Than Most text of this article all kinds; increasing numbers of private Using Statistics Canada, we profile the insurance companies; Internet-based size of the public sector across the prairie patient information and a profusion of provinces and Canada. There are substan- well documented opinions in favour of tial differences in public administration free choice, competition and diversity. spending between the provinces. Per capita, the Atlantic provinces employ a larger than average number of provincial civil servants and the fewest municipal ones. In contrast, the Prairie provinces, possibly due to their geography, employ a larger number of municipal civil servants and fewer provincial ones. Most of Saskatchewans numbers are fairly close to provincial averages. In con- trast, Manitoba employs an above-average number of both provincial and municipal civil servants per capita, pays them more compared to other workers than any other province, and spends an above-average Stockholms health care advisor and CPP portion or percentage of its budget on ON THE WEB provincial salaries. contributor, Johan Hjertqvist, at the Read the full text of this mic on Canadas CBC Radio One. article
17 rontier Centre for Public Policy Annual Report 2000
Media Contacts
DATE MEDIUM/ORMAT COVERAGE AREA PROGRAM TOPIC RONTIER COMMENTATOR
13-Jan-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Optimum size of government Peter Holle
17-Jan CJOB Radio Winnipeg & Southern Manitoba Adler on Line Alberta Treasurer Peter Holle & Dennis Owens
01-eb-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Corporate subsidies Dennis Owens
03-eb-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Agriculture policy Peter Holle
04-eb-00 CJWW Radio Saskatoon & Southern Sask. Christina Cherneski Optimum size of government Peter Holle
24-eb-00 Christian Sci.Monitor National Ruth Walker Downtown revitalization Peter Holle
25-eb-00 CKOM Radio Saskatoon & Southern Sask. Morag MacPherson Amalgamating rural municipalities Peter Holle
03-Mar-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Equalization Peter Holle
03-Mar-00 CBC Radio Radio Manitoba Questionnaire Corporate funding of university research Dennis Owens
14-Mar-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line New Zealand Ambassador Peter Holle & Jim Gerard
15-Mar-00 AM1040 Radio Winnipeg & Area Cynthia Ramsay Public sector reform Peter Holle
17-Apr-00 CBC Radio Radio Manitoba Questionnaire IM and 3rd world debt David Henderson
20-Apr-00 Videon Cable 11 TV Winnipeg & Area Insights Panel with Todd Scarth: Why Cut Taxes? Peter Holle
06-Jun-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Aboriginal policy in Canada Tom lanagan
06-Jun-00 CBC Radio Manitoba Questionnaire Aboriginal policy in Canada Peter Holle
12-Jun-00 CKRM Radio Regina & South Saskatchewan Greg Bohnaert Show Medical savings accounts Peter Holle
14-Jun-00 CBC Radio Manitoba Questionnaire Universal daycare Dennis Owens
14-Jul-00 A Channel - 8 TV Manitoba Light Talk Open policy discussion Peter Holle
18-Jul-00 A Channel - 8 TV Manitoba Light Talk Saving Medicare with MSAs Peter Holle
16-Aug-00 A Channel - 8 TV Manitoba Light Talk Labour relations & Bill 44 Peter Holle
23-Aug-00 A Channel - 8 TV Manitoba Light Talk City of Winnipeg with Garth Steek Peter Holle
28-Aug-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Liquor privatization Dennis Owens
31-Aug-00 A Channel - 8 TV Manitoba Light Talk Liquor privatization Peter Holle & Dennis Owens
27-Sep-00 Winnipeg ree Press Manitoba Editorial Board Managed competition in Phoenix Peter Holle & Ron Jensen
04-Oct-00 CBC Radio National - Canada-wide Commentary Healthcare reform in Sweden Peter Holle
05-Oct-00 CKNW Radio Vancouver/British Columbia Vancouver Tonight Healthcare reform in Sweden Dennis Owens
08-Oct-00 CKNW Radio Vancouver/British Columbia Rafe Mair Show Healthcare reform in Sweden Peter Holle
11-Oct-00 www.essentialtalk.com Webradio Worldwide Essential Talk Network Healthcare reform in Sweden Peter Holle
13-Oct-00 CKRM Radio Regina & area Greg Bohnaert Show Healthcare reform in Sweden Peter Holle
18-Oct-00 CJOB Radio Winnipeg & Southern Manitoba Larry Updike Show ederal mini-budget Dennis Owens
19-Oct-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Healthcare reform in Sweden Dennis Owens
19-Oct-00 A Channel - 8 TV Manitoba Light Talk Healthcare reform in Sweden Dennis Owens
19-Oct-00 CBC Radio Manitoba Margot Watt Healthcare reform in Sweden Johan Hjertqvist
06-Nov-00 CJOB Radio Winnipeg & Southern Manitoba Larry Updike Show Healthcare reform in Sweden Dennis Owens
22-Nov-00 CJOB Radio Winnipeg & Southern Manitoba Adler on Line Two-tier health care Peter Holle
14-Dec-00 APTN TV Manitoba Contact Global Warming and cultural displacement Dennis Owens
18 rontier Centre for Public Policy Annual Report 2000
inancial Position 2000
Statement of Operations for the years ending April 30th: 2000
Income
Grants & Activities 246447
Expenses
Salaries, Office Costs, Projects and Publications -160995
Increase/Decrease in Unrestricted Net Assets from operation 85452
Statement of inancial Positions as at April 30th:
Bank Account 19761 Investments 61830 Receivables & Prepaid Expenses 7629 Property, Plant & Equipment 2761
91981
Current Liabilities 12881 Retained Earnings (Deficits) 79100
91981
Complete financial statements for the year ending April 30, 2000 are available upon request.
THE CPP MAKES HEADLINES BOTH LOCALLY AND INTERNATIONALLY...
19 rontier Centre for Public Policy Annual Report 2000
The people behind the rontier Centre for Public Policy
BOARD O DIRECTORS BOARD O RESEARCH ADVISORS
David Asper Dr. Michael Bassett Robert Binding Dr. David T. Beito Ken Cooper Dr. Milton Boyd John Heimbecker Dr. Brian Lee Crowley Peter Holle Sir Roger Douglas Debra Jonasson-Young Dr. David Henderson Charlie Mayer Mr. Johan Hjertqvist Murdoch MacKay, Q.C. Dr. Lawrence Reed Richard Morantz James A. Richardson Rick Riffel STA Bruce S. Thompson Peter Holle, President Dennis Owens, Senior Policy Analyst Claire Toews, Director of Administration Luc Tremblay, Director of Business Development
Suite 201 63 Albert Street Winnipeg, Manitoba, CANADA R3B 1G4 Tel: (204) 957-1567 ax: (204) 957-1570 E-mail: [email protected] Web: http://www.fcpp.org
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