New Right Eegemony in Canada:

Ideological Influences on Parties, Perceptions, and Policies

by Richard D. Algie

B.A. University of Alberta 1989

B.A.(Hons.equiv.) UBC 1994

Thesis Submitted in Partial Fulfillment of

the Requirements for the Degree of

Master of Arts

in the department

of

Sociology and Anthropology

9Richard Algie 2000

Simon Fraser University

April2000

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In this thesis, 1 examine primarily the role of ideoiow, in particular, the

penetration of the New Right (NR)ideology into the discourse of major political parties

in Canada. Thus a nurnber of conceptions of ideology will be reviewed as a means to

derive a conceptual fiamework for understanding expressions of NR ideology in the

Refom Party and other major Canadian political parties.

With the omet of global restnicturing and the Canadian fiscal and national

di fficulties, the Reform Party has emerged as a new political party that is actively

working to organize, promote, and conduct concerted attacks on the welfare state. The

Reform Party, which expresses a NR ideology that combines neo-liberal economic and

politicai positions with neo-consewative social and moral positions, has contributed to the erosion of Canada's welfare state. Other supporters of the NR ideology are also attempting to destroy the welfare state and the ideological consensus surroundhg it, thus setting the stage for increasing social inequality in Canada.

Findings of this thesis demonstrate the linkages between the NR discourse of several key global institutions, and that of the Reform Party and the New Democratic,

Liberal. and Conservative parties. NR themes which have gained dominance within

Canadian political economic discourse are identified, such as positions on fiee-market econornics. the debt and deficit, and social conservatisrn. Such NR themes and shifts in poIitica1 ideology since the mid- 1970s are traced through global trade institutions in the post-WWII penod by way of document review and in Canadian political parties in the

1970s to 1990s by way of House of Commons debates. Secondary sources that include newspapers. magazines, journais, books, party leaders statements, political platforms, and statistics are aiso used to document the shift to a NF2 ideology.

1 argue that a NR ideology has ernerged within the discourse of Canada's major political parties and has shified political debates and policies to the right. This creation and implementation of NR-influenced policies became possible once people had become more receptive to NR ideas and the NR's policy agenda. That is evident. as dl the major political parties in Canada have adopted aspects of the three key themes (such as fiee- market economics, debt and deficit reduction, and sociai conservatism) found within NR ideology and have put policies in place which are based on elements of these NR themes.

These policies have eroded key programs of the Canadian welfare state and have created a much more unequal, class-stratified, authoritarian society and began to reverse the liberal transformations (in the areas of feminism, the farnily, and sexuality) of this century.

This study may be of help to those subordinate groups and classes in Canada who are struggling to construct an alternative hegemonic politics that will need to confiont both the NR and its vision for Canada and be compelling for a large number of

Canadians. TABLE OF CONTENTS

PAGE .. . Abstract 111

Table of Contents v

List of Tables vi

Chapter 1 Introduction 1

Chapter 2 Theoretical Perspectives on Ideology 8

Chapter 3 Emerging Hegemony of NR Ideology in Global Institutions and 20

Policies (postWWn) and in Canadian Politicai Parties and Policies

Chapter 4 NR ideology in Canadian Political Parties in the mid-1970's 47

Chapter 5 The Rise of the Reform Party and its NR Ideology 65

Chapter 6 NR Ideology in Canadian Political Parties in the 1990's 81

Chapter 7 Conclusion : The Shift to the Right 112

Appendix 1 131

Bibliography 132 LIST OF TABLES

Table 4.1 Support for NR Ideology by Canadian Politicai Parties: 1970s

5.1 Support for NR Ideology by The Reform Party

6.1 Support for NR Ideology by Canadian Political Parties: 1990s

7.1 Support for NR Ideology by Canadian Politicai Parties: mid- 1970 & late I 990s 1

Chapter 1 Introduction

In Western democracies around the world, political ideology has shifted rightward to embrace the New Right (NR) perspective. That has been evident in global institutions created in the aftermath of World War II and in the rise of NR politics in England under

Margaret Thatcher, in the United States under Ronald Reagan, and in Canada under Brian

Mulroney. The focus of this thesis is on the rise of the NR in Canada and, in particular, the shifi to a NR ideology within Canadian political parties fiom the mid -1970s to the

Iate 1990s. Several key forces have influenced this shifi including the new realities of globalization, the effect ofregionaiism, and the need to restructure the Canadian economy to increase competitiveness. The lobbying efforts of the Business Council on

National Issues and the Fraser Institute, among others, have also played a role in this shift. However, this thesis will focus on the role played by the Reform Party in representing the NR ideology and in pushing its agenda to the forefiont of Canadian politics.

The implications of the dominance of NR ideology are that its adherents in the

NR movement bring about changes in policy and in ideology that will alter Canadian society economically and socially, be devastating for many Canadians, and will be estremely dificult to reverse. House of Commons debates clearly illustrate this shifi in ideology, and through their widespread dissemination in the media, they influence the general public towards a greater acceptance of NR ideology and policy. 2

The rise of the NR and the Reform Party have forced the other political parties to rnake a rightward shifi in their policies and ideology. This is in part a response to the new reali ties of global restmcturing. Importantly, however, the Canadian case has its own distinctive specificity based on its political, economic, social, and cultural history.

This specificity includes: a history of technologicai dependence, a high degree of foreign ownership in the economy, and regional politics. al1 set against the background of both a fiscal crisis and a crisis of national identity. These factors have set the stage for the erowth of the Reform Party and the dramatic shift to the right which is evident in the C other major Canadian parties-

The primary interest of this thesis is to examine the role of ideology and the penetration of the NR agenda into the discowse of the major political parties in Canada which include. the Conservative Party. the Liberai Party, and the New Democratic Party.

This analysis will illustrate the rightward shift in the political ideologies of the major parties and will then assess the implications of this shif3 for policy and Canadian society.

The key question with which this study is concemed is, to what degree has the ideology of proponents of the NR influenced political parties and their perceptions about fiee-market economics, the debt and the deficit, social conservatism (includes sociai authoritarianism, and crime and punishment issues), and social inequality in Canada since the mid- 1970s? (See Appendix 1 for primary and secondary research questions-) 1 will argue that global institutions and the global economy have provided the conditions for the rise of the NR in politics, and that NR ideological influence on other parties has ken substantiai. The continued moves of these global institutions to create a fiee-market 3 combined with the crisis of the global economy based on the oil shock of 1973, the omet of stagflation, the rise of Japan, and the competition fiom the NICs has created the economic basis for the rise of the NR. The NR movement consists of many groups and individuais such as the Business Council on National Issues (BCNT), and the Fraser

Institute. I will argue fiuther that proponents of the NR, such as the Reform Party, have influenced a shift in ideology. as evidenced in policies and perceptions on key issues debated in the House of Cornmons. Finally, 1 will argue that the NR ideology that has emerged within the discourse of Canada's major political parties has shified political debates and policies to the right, eroded support for welfare policies, and increased social inequality. The following sections in this chapter will outline the key concepts, research procedures, sources of evidence, and methods and analytical techniques that will be employed in this thesis.

Key Concepts

Several key concepts wiIl be employed in this thesis including common-sense, hegemony, ideology and the New Right (NR). The cornmon-sense refers to the uncritical, unconscious and unexamined, everyday understandings (see Hall 1988% Hall

1 988b55). Hegemony is defined as the NR's abiiity to secure the consent of the people through the construction of ethical, moral, intellectual, ideological, and cultural dominance. in addition to political and economic dominance, that is, leadership on a broad front. which involves contesting and winning space in civil society and within the dominant power bloc of the state itself (Hall I988b:53-55). Ideology refers to a woridview or perspective which foms and shapes our consciousness of reality and also saturates our language. Ideology also profoundly affects our unconscious and underlies our "common-sense" (Hall 1988% 1988b:55-56). The New Right ideology is defined as containing neo-cornervative and neo-liberal elements. Neo-liberalism is characterized b y its extreme individualism, fkee choice, a market society, laissez-faire economics, and minimal government (Levitas l986:3). The neo-conservative strand is distinguished from early conservatism which accepts the welfare state. In contrast, neo-conservatism is characterized by a belief in strong government, social authoritarianism, a disciplined society, hierarchy and subordination, and nationalism (Belsey 1986: 173).

Authoritarianisrn and a repressive social and moral code harkening back to Victorian values is central to neo-conservatism. (See section entitled, 'roots of the NR', in chapter 2 for further detail.) The NR is also defmed as a social movement or force whose actors express the NR ideoIogy.

Research Procedures

This thesis will employ a methodological tiamework incorporating a number of conceptions of ideology fiom the cultural studies literature. This framework will allow for an exarnination of the ideology of the NR and its hegernonic attempt to shift the political debates and policies to the Right and alter the "cornmon-sense" of Canadians.

Sources of Evidence

The sources employed in this research will include the following: an analysis of the relevant literature, including books, magazines, newspaper articles, the publications 5 of key global institutions, of party platform statements by Reform, the Conservatives. the

Liberals, and the NDP; of political party and govemment policies; and of leaders' speeches and public statements. The Hansard fiom the House of Cornmons which contains debates between members of parliament will also serve as a key document from which to obtain research data to demonstrate the shifl to the right in political party ideology. Several time periods wi11 be focussed on, including the pst-WWII period;

1973-76. a period of economic recession and weakening of the consensus; and the period from early 1993, prior to the stunning Federal election of 52 Reformers, to the present.

This focus will allow for a sense of the significance of the policy and ideology shifts to the right. l'blethods and Analytical Techniques

The key documents were analyzed for the emergence of NR themes which are the central tenets of NR ideology. This analysis allowed for an evaluation of the shifi to the right evident within these documents. The three key themes are fiee-market economics, the debt and deficit, and social conservatism, which includes, social authoritarianism, and crime and punishment issues. Free-market economics refers to minimizing govenunent intervention in the market and the removd or elimination of government programs and services where they interfere with the market's operation. Thus, a willingness to let market forces decide the outcome of capitalist economics is also central to ftee-market thinking. NR positions on the debt and deficit are characterized by an obsession with ending deficit spending, eliminating the debt, and an eqdly powerful cornmitment to slashing govemment programs while decreasing taxes, particularly for the wealthy. 6

Social authontariankm can be defmed as a remto Victorian vaiues which viewed men as leaders of the family, womens' place as in the home, homosexuals as societal outcasts and sinners, and premarital sex as a shame. In addition, abortion would be made a criminal offence, and those involved, in obtaining or providing them, would be subject to criminai law proceedings. NR positions on crime and punishment focus on using harsh punishment and increased sentences for offenders as a deterrent to crime rather than on increasing income distribution and the rehabilitation of criminals as preventive of crime.

The NR also supports using capital punishment to deter murderers.

The methods used to analyze the data collected fa11 within the broad confines of content analysis and demonstrate the emergence of NR thernes and ideology as outlined above. 1 am using a theoreticai consmct of the New Right and will be checking varÏous data sources for NR ideology containing neo-conservative and neo-liberal elements. The political parties and organizations which express NR ideology will then be compared on the basis of how closely they match up to my construction of the NR's theoreticai positions. By comparing the positions of different political parties and important NR organizations on key theoretical positions, 1 will be able to assess whether a change has occurred in the ideology of these parties or organizations. This cornparison wil1 illustrate the shift that these parties have undergone in terms of adopting NR positions on key political issues and policy matters. Mer docurnenting these shifts in the political parties and their policies, I will have grounds to discuss the potential impact of these NR- influenced changes on Canadian Society. 7

The thesis is organized in the following manner: Cbapter 2 will examine the theoretical basis of the NR and set out its philosophical ongins and key ideological positions as well my theoretical position on ideology; Chapter 3 will discuss the key global institutions which paved the way for the rise of the NR and will also examine the emerging hegemony of NR policy and ideology in Canadian poiitical parties; Chapter 4 will focus on the ideological positions of Canadian political parties in the rnid-1970s by reviewing House of Comrnons debates, whereas Chapter 5 will discuss the rise of the

Refom Party and its NR ideology Chapter 6 will assess the NR positions of Canadian political parties during the period since 1993 to the present, using matenal fiom the

House of Comrnons debates, whereas Chapter 7 concludes the thesis by andyzing this shifi to the right and its implications for the fùture of Canadian public policy and

Canadian society. Chapter 2 Theoretical Perspectives on Ideology:

The Roots and Rise of the New Right Ideology

There are many varied and complex perspectives on the subject of ideology and this chapter will examine a number of these conceptions and will then proceed to develop a perspective which will allow for an analysis of NR ideology in Canada. 1 will first explore how ideology was addressed in classicai Marxism, as well as the relations between ideology and fdse consciousness, and ideology and hegemony. i will then proceed to examine the philosophical roots of the NR. Next, 1 will explore the work of

Stuart Hall and his contribution in the British Cultural Studies literature to the analysis of the British NR. Because Hall's work represents, in my view, the most synthetic and miittùi approach to understanding changes in political ideology, 1 will use elements of his anaIysis in my assessrnent of NR ideology in global institutions, Canadian political parties and policies, and party positions in House of Comrnons debates. Finally, i will look at the Canadian NR and the NR ideology of the Reform Party.

Perspectives on Ideology

Mamist Debates on Ideology

The Marxist tradition provides an understanding of the comection between capitalism and ideology which is crucial as the economy continues to have a powerful influence on the construction, role and dissemination of ideology (Hall 1988b54).

Furthermore, the historical specificity of the Marxist approach to understanding capitalism is also necessary to adequately make sense of both the context and the limits within which any ideology must operate (Hall 1988b56). For classical Mancism, 9 ideology is viewed as a reflection of the economic base and the social relations which result fkom their exploitive arrangements. Ideology exists to cover up or conceal the contradictions fundamental to capitalism and thus maintains the illusion that the system is fair (Larraine 1991:43-45). To change society it was thought that one must strip away the veil of ideology fiom the eyes of the working class. That would allow for the attainment of tme class consciousness, and the working class couid then complete its historical mission through the revolutionary process by overthrowing capitaiism, thus putting an end to the need for ideology to conceal its contradictions (Larraine 1991 :44-45).

Neo-Marxist contributors to the cultural studies literature have also made significant contributions to understanding ideotogy and have attempted to answer several key questions that arise within debates on ideology. First. " What is an ideology?" Second,

"How shouId we understand the social process by which a new ideology is constnicted?"

And finally, "How should we understand the social consequences of ideology?" Overall. there is Iittle consensus regarding precisely what ideology means or why it is consequential. However, several usages are common.

Ideology as False Consciousness

George Lukacs in his Hegelian reading of Marx, views ideology as fdse consciousness (Lukacs 1923, Larraine 1991:71-74). That is, the dominant classes have used their control of the means of mental production ideologically to fool the masses into not recognizing where their real material interests lie, so that they therefore live in a sort of illusory state. Once real materid factors begin to exert themselves, however, the web of illusions would be dispelled, and the working class would awake to reaiity, and mass 10 solidarity and enlightenment would occur (Hall 1988b:43). This seems overly idealist,

however, and has been subjected to rigorous critiques by many scholars (Hall 1988bA4).

For example, ideology cannot be false consciousness, for it is also profoundly unconscious (Hebdige 1994:363). Stuart Hall also disagrees. for viewing ideology as false consciousness assumes an empiricist relation of the subject to knowledge, namely that the real world indelibly irnprints its meanings and interests directly into our consciousness (Hall 1988bA4). And, secondly, Hall States that "It is a highly unstable theory about the world which has to assume that vast numbers of ordinary people, mentally equipped in much the sarne way as you or 1, can simply be thoroughly and systematically duped into misrecognizing entirely where their real interests lie" (Hall

I988b:44).

Ideology as World-View

Ideology has also ken defined as a world-view or system of belief. According to

Patricia Marchak (1988:5), an ideology combines, "shared ideas, perceptions, values. and beliefs through which members of a society interpret history and contemporary social events and which shape their expectations and wishes for the fùture." In this context,

ideologies are viewed as competing with each other for dominance.

The notion of ideology as world-view has been criticized in several ways. First,

for Dick Hebdige. ideology cannot be reduced to an abstract dimension of a world-view,

for ideology functions at the level of the unconscious (1 994:363). Second. ideology can

be contradictory, partial, non-systematic, and is very often not coherent (Hall 1988b:SS-

56). For Antonio Gramsci, ideology is not simply a world-view but takes on a much more complex nature.

Ideology as Hegemony

Antonio Gramsci has contributed much to the understanding of ideology.

Gramsci believed that ideology cannot be reduced to economic or political processes, even though any ideology is both atticulated with, and conditioned by, these processes

(Larraine 1991 :78-87). For Gramsci, an ideoiogy is a specific "system of ideas", dong with their capacity to inspire concrete attitudes and give certain orientations for action.

Gramsci developed this notion of ideology in connection with the concept of hegemony, which refers to the ability of a particular class to secure the adhesion and consent of the broad masses. Importantiy, ideology has an integrating effect which is based on its ability to \vin the fiee consent of the people. This hegemonic quality of a world-view is found in the "solidity of popular beliefs" which has the same energy as a material force

(Larraine 199 1 :80-8 1).

Gramsci believed that there was no mechanistic correspondence between ideologies and the social structure and that "ideology is not just a philosophical world- view. but it must necessarily entail onentations for action and must be sociaiized in the masses. To this extent ideology has to be continuously refashioned in order to become adequate for new historical situations" (Larraine 1991 :87). The agent of this refashioning is the intellectual (Eatwell and Wright 19935) who plays a key role in the creation of consciousness through ideology. Further, as both ding class and working class have organic intellecniais who give each an awareness of their function as a class, so then do dominant and dominated ideologies confiont one another, and ideology becomes the 12 terrain of a stniggle (Larraine 199 1934-85, 89) with each strata of intellectuals attempting to organize a Iarger mass and to constnict a unified hegemonic bloc.

For Gramsci, ideology has a material basis and constmcting this hegemony is not possible without also dominating the decisive nucleus of economic activity. Thus, hegemony involves the construction of ethical, moral, intellectual, ideological, and cultural dominance, in addition to political and economic dominance (Hall 1988b54).

Thus. ideology constitutes one area of struggle among others; and importantly, any attempt to win power in the state must aiso succeed in winning space in civil society which constitutes the ideological terrain of stniggle and includes the ideological apparatuses, such as the educational system. religious organizations, publishers, and communications media in general. Civil society as the domain of ideological struggle is. thus. where hegemony is won when one class succeeds through stniggle in gaining the consent of the people (Larraine 1991 :78-85). For Gramsci, political society constituted the other part of the superstructure and includes the state apparatus which has a monopoly over the use of force and can thus use coercion to enforce its mandate (Larraine 1991:85).

If the social world is, as Gramsci says, a fluid process, "characterized by an infinite variety and multiplicity, history possesses no inherent meaning immanent in human nature, and nothing was guaranteed" (Fernia 1993: 1 IO). Therefore, with no specific direction to historicai development, the future of capitalism remains somewhat open-ended. This reaiization leads to the conclusion that bringing an end to capitalism is not a matter of waiting for the historically inevitable conditions to occur on which to base a revolution, but requires hegemonic stniggle to be waged on the politicai, economic, social, cultural, and ideological fronts.

New Right Ideology

I will now turn to examine the roots of the NR ideology and will also demonstrate the elements of this new conjuncture of the neo-liberal and neo-conservative strands which compose the contradictory formation of the NR (see Gamble 1986:25-54, Green

198% McBride 1993). These strands predate Marx's ideas on ideology and have evolved over time to become the potent ideology that has taken hold in many Westem democracies. The chapter will then focus on the NR ideology known as "Thatcherism", followed by an exploration of the Canadian NR and its expression in the Reform Party as bath have risen in part as a response to the global restructuring and Western economic crisis of the 1970s.

The Roots of The New Right Ideology

The "New Right" is a composite of two strands of political philosophy which have their roots in the Liberalism and Conservatisrn of the 17th and 18th centuries. The proponents of this NR philosophy, in fact, view themselves as taking society back to a time when these classical views were uncontaminated by the "socidisrn" of the

Ksynesian Welfare State (Levitas 1986:4, Garnble l986:40-42, King 1987:12- 16). These two strands have corne to be known as neo-liberalism and neo-conservatism, and while there is still much disagreement over the exact composition of these philosophies, an explication of their essential elements will be necessary to arrive at a satisfactory definition of this new phenornenon. 14

According to Andrew Gamble, neo-liberalism is composed of belief in the fiee- market. an extreme libertariankm with its belief in an almost complete lack of control over the individual by the state, and the influence of the Austrian school of economics, which has also been central to the revival of the liberal tenets of individualism, a limited, constitutionally specified role for the state, and a belief in the market (King 1987: 14,73-

76. Garn ble 1 986:30-3 1 ). The neo-liberal thinker. Von Hayek. is a prominent product of this school. This neo-liberal strand is radically opposed to state intervention in the economy and is, thus, differentiated fiom welfare state liberalism.

For Andrew Belsey, neo-liberalism is characterized by its extreme individdism and its belief in fiee choice. a market society. laissez-faire economics, and minimal govemment (Belsey 1986: i 73). First, within neo-liberaiism, the individual is thus inviolable, and the libertarian strand is rooted fïrmly in the Lockean tradition of the 17th century with its view of individual rights as "natural rights" (Tucker 1980: 128- 129). The individual is, thus. at the base of al1 experience, and further, as Margaret Thatcher has pointed out. for the neo-[iberal, "there is no such thing as society" ( see King 1987: 12).

Second. al1 individuals are viewed as rational, self-interested choosers and, as such, are making free choices within the context of scarce resources. Thîrd, the market is believed to provide for the most escient allocation of goods and services, and thus, laissez-faire economics is key. In short, govemment intervention into the economy is viewed as bad and the free-market as good (Gamble 1986:30). Further. low taxes are viewed as increasing freedom, and fostenng self-help, self-reliance, and personal responsibility.

Fourth. minimal govenunent is justified only for the protection of pnvate property and for the protection of private individuais from personal harm.

A key proponent of this view is Robert Nozick whose libertarian philosophy is based on a number of justifications for the minimal state. First, his claim is that we have a right to our privately owned assets that we have worked for. Second, human dignity requires that we be free f?om al1 relations that we do not enter into voluntarily. Third,

Nozick asks, 'Why accept distributional requirements which allow some to benefit fiom the achievements and efforts of others?" (Tucker 1980: 129). Finaily, Nozick thinks that we should ignore the end States. or results, of these principles. In other words, whatever distribution of goods and services results is of no concern. Nozick justifies this philosophy in two ways. First, even though gross inequalities result, any other system involving government intervention is far worse. Second, charity will take care of those who are suffenng (Tucker 1980: 129- 13 1, King 1987:13.).

The neo-conservative strand is distinguished fkom early conservatism which accepted. if grudgingly, the importance of welfare state provisions. In contrast, neo- consenratism is characterized by a belief in strong government, social authoribnanism, a disciplined society, hierarchy and subordination, and nationalism (Belsey 1986: 172- 176).

Authorhariankm and a repressive social and moral code harking back to Victorian values is centrai to neo-consematism. In addition, a belief in a minimal role for the state in ail areas e'rcept in the active promotion of private economic interests and in the policing and

Iaw and order iünctions is key. This role would ensure the necessary increased protection for private property that would be required, given the increased crime that would result from the institution of NR-influenced policies. Neo-conservatism, thus, includes a strong anti-socialist stance, the promotion of nationalism, the surveillance and suppression of subversion. neo-liberai econornics, and opposition to feminist and gay movements

(Levitas 19863-7).

The NR approach to economics is characterized by several points: first, that governrnent intervention in the economy does not work; second, that al1 alternatives to the market are deeply flawed; third. that govemment failure is more prevalent than market failure; and fmally, that government intervention is unjust (Gamble I986:38).

The NR is, thus, a composite of neo-liberal economics and political positions and neo- consemative social and moral positions directed at the revivd of market mechanisms and an end to collectivist state action. Further, the NR is attempting to dismantle social citizenship rights. including civil rights, politicd rights. and social rights, while at the sarne time increasing the rights connected with the use and ownership of private property which the NR has managed to connect with the issue of personal fkeedom (see King

1987:164-1 77).

Stuart Hall and ~batcberism'

The key contributor to the perspectives on the NR in Britain who has influenced my thinking on ideology is Stuart Hall. My approach draws insights fiom Hall's work on

"Thatcherism" and his discussion of the hegemonic project of the NR in Britain which

' see Hall's Policing The Crisis (1978), Andrew Gamble's work, The Free Economy and the Strong State: The Politics of Thatcherism (1988), David Green's, The New Right (1987); Hayes's The New Right In Britain: An Introduction To Theory And Practice (1994), Ruth Levitas's, The Ideology of The New Right (1986); and King's, The New Right: Politics, Markets, and Citizenship (1987) for more background on the NR revolution in Britain. 17 attempted a fundamental restructuring of British society and moved to cut taxes. slash the welfare state, and privatize the public sector, including selling off public housing. Hall's book, The Hard Road to Renewal: Thatcherism and the Crisis of The Left (1 988) points out the role of ideology in fracturing and replacing the previous social democratic consensus with a new "Thatcherite" ideological bloc. Thatchensm, for Hall, is thus, not simply a new form of political and economic organization, but critically, represents the building of a new cultural force and way of thinking. According to Stuart Hall, the construction of new ideological positions or the repositioning of older ones seems to account for these changes. That is, people are attached to the familiar and are presented with elenlents of ideologies to which they can relate, but which also work to transform them (see Hall 1988a). NR advocates have been successfiil in shifting peoples' ways of thinking away fiorn the ideological bloc of Keynesian welfare state discourse and towards a new discursive formation which is composed of neo-liberal and neo- conservative elernents. For Hall, the Left must learn fiom Thatcherism and work to construct an alternative hegemonic project which can appeal to the "common-sense" of the people. Thatcher promised voters, for example. that wages would increase and that taxes would be cut. The Left must also consider closely what real tangible benefits it cm offer to voters.

Understanding the role of ideology in altering one's "cornmon-sense" is an important addition to understanding how ideology works beiow consciousness to shifi and alter previous conceptions. Critically, ideology is profoundly unconscious, for "it is here at the level of 'normal common sense', that ideological fiames of reference are rnost 18 firmly sedimented and most effective, because it is here that their ideological nature is most firmly concealed" (Hebdige 1994:362). Thus ideology can work on the subconscious and alter the comrnon sense in such a way that the change to a new way of thinking appears natural or as inevitable. The possibility that ideology has material consequences also means that the ideological domain must be confionted as a part of the battle with the phenornenon of the NR (see Hall 1988% Eatwell and Wright 1993. Hall

1988b:35-57). For Hall, the material nature of ideology can be seen in its effects, and it is these concrete consequences that allow one to pass judgement on the ideology in question.

Following Hall, my research will analyze the NR as a hegemony seeking movernent which combines neo-liberal economic and political positions with neo- conservative social and moral positions and which is attempting to alter the "common- sense" of the people through the dissemination of ideology as a means to win power. In addition, hegemony is a usefil concept as it is an accurate description of the battte for leadership on a broad front and captures the NR's attempt to dominate the policy and ideology of the major political parties and also become a leading force in al1 aspects of society. Hall's take on ideology as both acting on and fragmenting the discowses of the

Left and altering the "cornmon-sense" is also effective as it illustrates how the NR is able to shifi peoples' ways of thinking away fiom social democratic positions and convince

Canadians that NR solutions are the answer to their problems. Furthemore, this thesis employs a conception of ideology which has material effects and has resulted in an alteration in policy which is having detrimental effects on Canadians and Canadian 19 society . Finally, an understanding of NR ideology and its role in "wllining the hearts and minds" of the citizenry would seem to provide the Lefi with a strategic plan of action to shift the NU discourses back into the domain of the Left or towards a new alternative hegemonic ideology. The chapter will now examine the case of the Reform Party and its

NR ideology.

The New Right and the Ideology of the Reform Party

In Canada the Reform Party is one of the leading representatives of the key principles and ideology of the NR. Trevor Harrison's Of Passionate Intensity (1995) clarifies Reform's ideoloçical roots and links the party to the movement of the NR. Reform's electoral success has illustrated the Party's ability to fraçture the discourses of the pst-war social democratic consensus and penetrate even to the heart of the traditional NDP voter.

Moreover, the impact of Reform's ideology has contributed to the emergence of NR ideology within the major Canadian political parties. This emergence demonstrates that

NR ideoIogy is in its ascendency and is becorning hegemonic as the Liberals, the

Conservatives, and the NDP have al1 adopted NR-influenced positions and policies in order to capture the new current wave of thought within Canadian culture. Before exmining in detail the NR ideology of the Refonn Party in chapter 5 and the emergence of NR ideology in major Canadian political parties as evidenced within the House of

Comnons debates discussed in chapters 4 and 6,I will first investigate several key global institutions' ground-breaking work for the NR. Chapter 3 Emerging Hegemony of New Right Ideology in Global Institutions (post-WWlI) and Canadian Political Parties

Several key global institutions were created in the aftennath of World War II.

The creation of the UN helped to structure the globai system and promote ketrade and the birth of the International Monetary Fund and the World Bank aided the global administration of capital. The Organization for Econornic Cooperation and

Development and the General Agreement on Tariffs and Trade served to merstructure the global system and focussed on the liberaiization of world trade. In fact, the ciramatic growth of the NR in the last 25 years would not have been possible without the ground breaking work of these key institutions. for their policies were compatible with, and provided the conditions for, the emergence of the NR. Their policies supported global free trade. fiee-markets. and the introduction of cornpetition, al1 activities that had the effect of undermining democratic decision-making, eroding national sovereignty?and reducing the ability of states to intervene in economic development. Such effects were compatible with NR ideology. 1 will provide evidence for this by first briefly describing the growth of global institutions and their influence in shaping conditions for the NR to emerge. This discussion will include a brief look at the United Nations (UN), the World

Bank (WB), the International Monetary Fund (MF), and the Organization for Economic

Cooperation and Development (OECD). The focus, however, will be on the General

Agreement on Tariffs and Trade (GATT), now known as the World Trade Organization

(WTO). which is representative of the various institutions created at Bretton Woods in

1 945. The rise of the NR in Western democracies will then be discussed, followed by an investigation of the policy shifts of major Canadian political parties towards the NR ideology of fiee trade.

The first major global organization fonned was the UN, which was a successor to

the League of Nations. The UN served to contain the expansion of socialism and

promote the ideology of liberal democracy (Teeple 1995: 12% 130). The WN thus served

to provide a structure to the emerging global system which would iater be important to

the establishment of global fkee trade.

The establishment of both the IMF and the World Bank in 1945 provided the

institutional fiamework for the global administration of capital. The MFregulated world

trade balances and served as a blueprint for a fùture world economic order, whereas the

World Bank managed an international fùnd for economic development (Teeple 199557-

58).

The OECD. another major global organization, was formed in December 1960

from the OEEC- the Organization for European Economic Cooperation- and now

includes Canada and the US. as fi111 members. The OECD is, thus, composed of the

world's rnost industrialized nations and this expanded organization has the objective of

harmonizing national plicies, encouraging parallel action in areas of cornmon interest,

and, through persuasion, of seeking changes in national poiicies that may be injurious to others (Stone 1987:89). Thus, the OECD would follow the policy objectives of the

GATT and would serve primarily as a research body to promote the continued

liberalization of global trade (Stone 198739-95).

The GATT was established in 1947 to provide the institutional means for a

negotiated removal of al1 national baniers to world trade and to create universal 22 regulations for increasingly fieer commerce (Teeple lWFS8). The GATT's chief aims were. thus. the expansion and Iiberalization of world trade through the dismantling of obstacles to trade and the improvement of the international trading hmework (GATT

19745.14); and, according to liberal trade theory, this Iiberalization would increase the standard of living and welfare of the people of the world (Golt 197457). Thus, the

GATT expressed the NR faith in the free-market and the need for corporations to fùnction with minimal government intervention.

The establishment of the GATT was based on the following principles: first, non- discrimination and multilateralism, and the application of the most favored nation principle to ail signatories; and second, the expansion of trade through the reduction of trade barriers: and finally. unconditional reciprocity among al1 signatones (Gilpin

1 987: 19 1 ). However, one of the central characteristics of the GATT is its anti- democratic character, for it operates at the supra-national level and, therefore, limits the ability of the nation state to act in the interests of its citizens. This uifnngement upon national sovereignty is compatible with the NR ideology which focuses on Iimiting the ability of the nation state to affect capital. GATT expert Sydney Golt points out that "the underlying philosophy of the GATT is precisely to limit, and subject to control and where necessq. surveillance, the distortion of the market produced by state intervention" (Golt

19745). Clearly then. the GATT's philosophy is congruent with that of the NR which emphasizes fiee-market econornics and is radically opposed to state intervention in the economy.

Historically, the GATT meetings have concentrated on efforts to fiee the market 23 fiom the constraints of government intervention. For example, the GATT worked to decrease tariffs and stop what it thought to be a dangerous protectionist trend which threatened to split the world into two, or possibly three, great trading blocs set on collision courses (Golt 1974: 18). The formation of the European Economic Community

(EEC)?however? demonstrated clearly that increasing conflict and protectionism would continue to challenge the ideology of free trade which serves as the basis of liberai international -de theory and the GATT (Gilpin 1987:192- 195).

Up until 1964 the GATï utilized a method of bilaterai negotiations whereby each item would be negotiated individually, and then that agreement would be extended to al1 members. The Kennedy Round saw the use of across-the-board tariff reductions with a minimum of exceptions (GATT 1974: 17- l9,2 1). By the mid- 1970s, however, the optimism aroused by these agreements was shattered by dramatic changes in the world economy. and key observers recognized that recovery steps needed to be planned into the

GATT to assist with adjustment (Golt 1978:~).Importantly, this adjustment was in no way to interfere with the accumulation of capital and the continued liberalization of markets. Instead. welfare state spending on social programs became the target as the following statement by Ian MacGregor makes clear: "PoliticalIy motivated efforts to bnng about various kinds of social readjustments go beyond the willingness of the electorates to finance them or the willingness of governments to cover hem by raising taxation. Therefore these ambitious programmes are financed by massive deficits which undermine the cunency. What we saw hapjxning in the United Kingdom in the '60's and emly '701s,we see happening in the United States today. The lesson we leam is that no 24

matter how we may try to redistribute wealth, it is necessary first to earn it" (Golt

1978:~).Thus, strongly developed at this historical moment in the history of the GATT

is the NR belief that welfare state programs are no longer affordable and that the focus

should be put on free trade development and economic growth.

This emphasis on the continued expansion of global trade resulted in the GATT

continuing to examine ail possible means for increasing global GNP and extricating the

GATT system fiom the "deep and prolonged crisis in the world economy" (GATT

19835). It was clear that the GATT system was seriously endangered. Thus, GATT

members decided to pursue national examinations of their service sectors for future

inclusion in the next round of trade talks (GATT 1983:8-11,23). Serious concern was

also raised for the decreasing export earnings of the developing countries which, dong

with high inflation. had led to massive debt burdens. The U.S. expressed concern over

the Canadian Foreign Investment Review Agency (FIRA) (GATT 1983:64) which was

set up to screen foreign investments to ensure that they would be of benefit to Canada.

This Federal Act was later gutted and then dropped, as another national policy gave way

to the strength of the GATT and its supra-national authonty and discipline. This policy change clearly exemplified the power of other nations to utilize the GATT process to

undermine the democratic decision making process of a national state and dso echoes the

NR's ideology and its anti-democratic character.

The GATT has aiso focussed on other key initiatives to promote its NR ideology

of the free-market. Ln 1984 major moves were made to make trading arrangements

outside of GATT while national examinations of service sectors were brought forward 25 and protectionism remained a serious issue (GATT 19855-7,15,32). In 1985 growth in the global economy fell to just 3 percent and developing countries expressed serious concern about the demands of the developed nations to open their economies to the fiee

flow of services. Thirteen nations presented reports on their service sectors while

Canadian provincial liquor boards came under attack and were to be snidied by a panel.

Services were now deemed to make up 1/2 to 2/3 of world trade (GATT 1986: 1-8.19).

As a result, it is clear why inclusion of the service sector in GATT negotiations is so crucial to the expansion of world trade. This inclusion is especially important for the developed nations which have increasingly shifted their economies to place greater importance on the growth of services.

The year 1988 saw an 8.5 percent increase in world trade while, ironically, developing nations teetered under rapidly increasing debts. Business confidence and stock market assessments of growth based on the direction of a nation's trade policies now exerted significant influence over national economic policy making. In this context. the initiation of the Canada/U.S. Free Trade Agreement was the most significant regional development of 1988 (GATT 1989: 16). At the sarne time as this supra-national accord kvas being trumpeted in the GATT, however, it was also "recognized that domestic economies need to regulate services and that mies intended to expand trade couid potentially diminish or restrict the ability of governrnents to act freely in the interests of domestic objectives" (GATT 198957). In the Canadian case, the pressure to abolish or privatize provincial liquor control boards is one example of the power of a supra-national organization to force changes in national policy (GATT 1989:62-63). 26

In 1990 the focus of debate was on the failure to complete the Uruguay Round and subsequently on the restarting of the round. It was clear that the global trading system was in crisis and possibly faced a long period of decreasing growth. However,

My,199 L-global services trade increased 12% over the year (GATT 1 :1). In addition. the

US. and EEC supported investigating international labour standards and trade, whereas the Association of South East Asian Nations (ASEAN), India and Chile felt that the

GATT was not the right fomfor such discussions. The environment now also constituted an important issue (GATT July, 199 1:3,16). Central to the developing nations position on labour and environmental standards was the belief that nothing in the

GATT should interfere with national policy objectives, and maximizing the cornpetitive advantaçe of their economies means keeping labour costs down. transfemng technology and know-how. and improving access to the markets of developed nations for exports

(GATT July. 199 1 :5 1.104). The developed nations. on the other hand, were searching for a way to stop employrnent fiom moving off-shore and, therefore, sought to put some minimum wage and environmental standards in place. The GATT's focus, however. continued to emphasize the NR ideology of the fiee-market, and therefore, little was done to intervene in domestic policy and put what the NR views as restrictive labour and environmental regulations in place.

During 1990 there were nwnerous exarnples of encroachment into domestic poIic y. dernonstrating both the anti-democratic and free trade character of the GATT's

NR ideology and policy. In the Canadian case, ice cream and beer exports to the US. were both targeted as involving dair trade practices. More generally, the GATT was 27 concerned about Canada's tarif33 - which were deemed too complex and protectionist - her use of anti-dumping rneasures, government procurement, supply management and marketing boards. provincial sectoral assistance, federaVprovincial jurisdictional disputes. and problems in putting panel decisions in place (GATT July, 1991 :82-86). The

GATT was now intent upon dismantling al1 national barriers to a completely fkee economy.

In 1992 the GATT claimed that it was now able to maintain more comprehensive surveillance over the trade policies of its mernbers by establishing the trade policy review system which provides an increasingly far-reaching assessrnent against which govemments can formulate their policies (GATT June, 1993: 1). This mechanism for closer supervision was deerned necessary in light of the growùlg strains in the GATT.

The GATT, in fact, blamed industrialized nations for not comprehending what the word

"competition" actually means. Futhermore, the daim was made that "Nobody in the

GATT would encourage perpetually low labour rates and conditions, the absence of adequate environmental standards or the swvival of outrnoded, anti-cornpetitive, commercial practices. But experience shows that trade brings econornic growth, and economic growth brings change - change of many different kinds; social, political, environmental" (GATT June, 1993:2). Thus the GATT embodied the NR belief that trade and economic growth within a competitive fiee-market are the keys to global development and the improvement of global standards of living. The Uruguay Round, completed in 1993, was, therefore, viewed as an attempt to recreate conditions of real competition (GATT June, 1993:3) and this emphasis resonated strongly with the ideology of the NR. In 1994, the GATT was given even broader scope and powers and was

renamed the World Trade Organization.

The work of these global institutions in preparing the ground for the rise of the

NR has been significant. At the supranational level the policies and actions of these key

organizations have helped shape the economic conditions from which the NR has

emerged in the last 25 years. Furthemore. they have served to direct and influence

national policies which have sought to protect national interests as defined by the

government in power. Finally, the role of these organizations has been to influence

profoundly the prevailing ideology at the global and national levels.

The Rise of The New Right in The West

The post-World War II consensus in many advanced Western democracies

consisted of the Right settling for the welfare state, comprehensive education. Keynesian management of the economy, and full employment, and of the Left accepting to work within a modified capitdism (Hall l988b:M). Universai health care, unemployment

insurance. welfare payments, public education, and govenunent intervention in the economy were, therefore, actively promoted and supported by the Left as positive steps towards a more egalitarian society. For the Right, these changes did not threaten pope*

rights and were tolerated as necessary provisions for unpropertied classes, because social proçrarns created the conditions for the development and maintenance of a stable labour

force (Marchak 1988: 15). As Keynes had envisaged. this reformed capitalkm with its more egalitarian economic poiicies and expanded state economic activity was therefore able to benefit both capital and labour and also served to mitigate against the potential 29 rnilitancy of labour (Bowles and Gintis 198757-59).

A socialdemocratic compromise was best able to adrninister this corporatist arrangement between capital and labour. This compromise was more than an econornic arrangement but also represented the acceptance of a particular ideology with which this compromise could be articulated. Until the 1970s, the discourses of iabourism, reformism. Keynesianism, and wetfesm dominated, but with the ensuing economic crisis this was to be radically changed (Hall 1988b:36-37,42).

With the Western economic recession of the 1970s, this social-democratic consensus broke dom (Magnusson et al. 1984: 13- 15, Brodie 1990: 186) and economic and social life fell hto crisis. The relative affluence and stable economic growth of the post-war period was increasingly under pressure fiom the changed nature of globalized capitaIism and thus the economic base on which the welfare state was built began to erode. The rise of global cornpetition in the form of the newly industrialized countries

(NICs); the growing strength of Japan and the European Economic Cornmunity (EEC); the 1973 oil shock. decreasing production and exports, the relative decline of the U.S. economy. unprecedented stagflation, and the switch to monetarism al1 signalied the end of the Keynesian era of state intervention (Gilpin 1987: 191-1 95, Marchak l988:2 12-2 13).

Importantly, this cnsis was not restricted to the domain of the economy but broke across the whole social formation and threatened the dominant order. Just as the crisis of

Liberalism in the 1930s lead to the formation of the Keynesian welfare state, so too has the demise of the social democratic consensus in the 1970s led to the emergence of a new era in the form of the New Right. One hegemonic phase had ended and the stmggle for a 30 new hegemonic phase began (Hail l988b:37).

This was the crucial moment for the New Right (NR)which, as noted, can be descnbed as a politicai, economic, and cultural movement which promotes an ideology combining neo-liberal economics with neo-conservative social and moral positions. The

NR combines a belief in fiee enterprise, an ethic of possessive individdism and rugged cornpetition, with a more traditional pated conservativism to compose the highly contradictory formation that modem conservativism has become (Hall l988b:37.

Marchak 1988:14. 187-201).

The New Right is, thus, a distinct political and ideological force with a two-fold mission: first. to contest and disperse the pst war consensus and the common-sense notions supporting it; and second, to construct an alternative ideological bloc of a distinctive1y neo-liberal, free-market, highly individualist kind, that is. to transforrn the underpinning ideologies of the Keynesian welfare state and restore the management. and control of capital, and thereby, clear the way for capitalist market solutions within the context of a supportive culture (Hall 1988a:4).

The project of the New Right is, therefore, not conceived and constnicted on a narrow economistic basis but aimed at the reconstruction of social life as a whole around the return to the old values. Supporters of the New Right combine attacks on the welfare state. opportunities for women, the growth and expense of governrnent, support for the unemployed, the breakdown of the traditional farnily, and on sexual promiscuity, with free-market solutions to these and other problems, and they believe in "restraint", or in short, a more authoritarian society (Marchak 1988: 187-20 1 ). 3 1

As in other Western democracies, this new and powerfiil movement is rapidly changing the political, econornic, and ideological landscape of Canada. The r\iR has actively pursued the destruction of the Canadian welfare state and the ideological consensus supporting it. The Reform Party as an expression of the NR has been at the forefiont of this attack on equality in Canada and has been able to gain substantial support from Canadians of ali social classes.

Ironically, many of those who voted for the Reform Party in the 1993 and again in the 1997 Federal elections will be hurt by the implementation of Refonn-influenced policies. This thesis, therefore, will focus on the rise of the Reform party and its contribution to the destruction of the pst-WWII consensus.

These attacks are part of the NR's attempt for a hegemonic transformation of society and have occurred against the background of a crisis of the state that is fiscal, national. and cultural because it involves the relationship between Quebec and English

Canada and behveen First Nations peoples and the rest of Canada. Culturally, the New

Right has attempted to educate and discipline society into a regressive version of modernity by reversing the liberal cul turd transformations of thi s century and substituting for them a Victorian moral code.

In addition. the New Right is a populist political force; for its adherents have successfully presented themselves as working on behalf of the people and as taking a leadership role in society through a combination of social discipline fiom above and of populist mobilization Erom below - fiom the "grassroots". Stuart Hall labelled this construction, "authontarianpopulism" in order to characterïze its contradictions (Hall The most perplexing question that needs to be addressed, however. is how the NR can gain support fiom those whose interests it does not represent. This question has assumed increasing importance in light of the growth of the New Right which has occurred in Bntain with the eiection of Margaret Thatcher in 1979, in the U.S. with

Ronald Reagan's victones in 1980 and 1984. and in Canada with Brian Mulroney's election successes in 1984 and 1988. The spectacular electorai success of the Reform party in 1993 and 1997 and the influence of Mt ideology on the Conse~ative,Liberal and New Democratic Parties also add support to the main argument of this thesis which is that NR ideology has penetrated into the discourse of Canada's main poiitical parties. has influenced a tightward shift in policy and ideology, and will have serious consequences for Canadian society. 1 will now explore policy changes that iIlustrate the growing influence of the NR on Canadian political parties.

Federal Government Policies in Canada: from Consensus to Continentalism

The economic crisis which Canada faced in the 1970s was increasingly identified by monetaists and neo-liberais with high govemment spending, particularly on social wel fare prograrns. and Keynesian econornic policies. In short, it was now argued that social welfare prograrns. whether financed by tax increases or deficit financing, were simply no longer affordable (Brodie 1990: 186). This histoncal juncture marked the end of the post-WWI consensus.

The Liberal federal government's response to this crisis was to implement policies that would decrease dependence on the failing U.S. economy. Their first such attempt 33 was through the creation of the Canadian DeveIopment Corporation (CDC) in 1971 whic h attempted to stimulate and support Canadian entrepreneurs. in 1 972, a coordinated industrial strategy was unleashed, and the Department of Extemal Affairs worked to diversi@ Canada's trade linkages, especiaily with the EEC and the Pacific Rim. The

Foreign Investment Review Agency (FIRA) was also established to review al1 foreign investments to ensure that they would be of benefit to Canada. Petro-Canada. a feded governent owned oil Company. was also estabiished to attempt to regain Canadian C control of petroleurn development and distribution which had Iargely ken dorninated by foreign multinational corporations (Brodie lWO:208-2 12).

The Liberals had assumed, however, that Canadian economic development could proceed on the following basis: first, that the national economy was the focus of developrnent; second, that a strong centraiized federal power best served this strategy; and third. that a high degree of fedenl state intervention was acceptable (Brodie

1 990204). This strategy, however, was to face serious opposition fiom the Progressive

Conservative party (PC) under the leadership of Joe Clark in the late 1970s and early

1980s. which was becoming increasingly continentalist - focussing on the continental market rather than the national one in tenns of econornic developrnent - and with the increasing cornpetition for capital, has led the charge to expand north-south linkages and decentralize federal powers to the provinces (Brodie l99O:ZO2).

The provinces were locked into a battle to retain controi of resource rents and rent distribution and were opposed to any increase in federai intrusions into their domains.

The provinces emphasized "decentrdized interventionism" which, spearheaded by the 34 western provinces, emphasized a resource-led strategy with greater retention and control of resource rents which the provinces could then use to upgrade their own resources and diversi@ their econornies (Brodie 1990:2OO).

The Conservative Party in 1979, under the leadership of Joe Clark, and with the support of powerful resource capitalists in the West, moved to end econornic nationaiism and increase provinciai jurisdiction and control. Mer winning the federal election by emphasizing the lack of western political influence and a centralist bias to Canadian econornic development, the Conservatives dlowed the forces of continentalisrn now to have a federal goverment that would more easily capitulate to their dernands. A vote of non-confidence. however. allowed the Liberals to win the 1980 feded election. The new

Liberal economic development strategy was heavily tied to the success of the National

Energy Program (NEP)which proved to be a failure because of the rapid decline in oil prices which made resource megaprojects economically unprofitable (Brodie 1990:2 14).

Thus 1982 ushered in the search for a new economic deveiopment strategy with the establishment of the Royal Commission on the Econornic Union and Development

Prospects for Canada, or, as it came to be known, the Macdonald Commission (Brodie

1 WO:Z 15). In 1983 proposais were made for limited sector free trade with the US. in the face of increasing American protectionism and economic nationalisrn in the form of anti- dumping legislation. countervailing duties, and other non-tariff barriers. The stage was now set for the election of the Conservatives to power in 1984 under the leadership of

Brian Mulroney, wïth a stated economic policy of forging a fiee trade deal with the US.

For the Conservative Party, an agreement which would increase Canada's reliance upon 35 resource exports, especially to the U.S., was a far more preferabte alternative to the

Liberal Party's state directed economic strategy as a way of adjusting to global restructuring. With the election of a contînentalist party to power it was becoming increasingly clear that the forces of continental integration were winning the stniggle to detemine the future course of Canadian economic development.

The release of the Macdonald Commission report in the fa11 of 1985 dlowed the

Conservative Party to articulate an overarching development strategy for the first the.

This new neo-liberal approach was based on a fiee-market driven, decentralized economy with a non-interventionkt state. Govenment intervention was deemed unredistic and unnecessary and the need for increased foreign investment and a downsizing of the welfare state was emphasized (see Warnock 1988). The report concluded that,

a market driven approach combined with a fiee trade agreement

with the U.S. \vas the oniy viable nationai development strategy available

to Canadian decision makers. Although îhere was a strong curent of

opinion arguing that free trade would destroy the Canadian economy, the

commissioners asked Canadians to disregard these arguments and 'take

a leap of faith' into the future (Brodie 1990:2 16).

Ironically, these fears that fiee trade could have potentially disastrous consequences for Canada were, at one time, shared by Bnan Mulroney - who was later to become the key player in selling the Free Trade Agreement to Canadians. As he noted in a speech at Thunder Bay, Ontario in 1983. "ïhere's a real beauty for you ...there's a real honey, free trade with the U.S. is like sleeping with an elephant. It's temfic until the 36 elephant twitches, and if the elephant rolls over you are a dead man" (Hurtig 1992:3).

The NR Ideoiogy of Free Trade

The dominance of the NR is evident within the statements of key politicai party leaders and in party documents and is also recognizable within clear policy shifts to the right enshrined in the new free trade agreements. These agreements include the Canada-

U.S. Free Trade Agreement (FTA)(January 1, 19W), the North Arnencan Free Trade

Agreement WAFTA)(I 994), and the Multilaterd Agreement on Investrnent (MAI) which, although currently on hold due to massive protest from civil society organizations, is currently at the negotiation stage within the OECD (Clarke and Barlow 199727). NR thought has come to dominate these agreements and the underlying premises on which they stand. Neo-Iiberal economics ernphasizing effkiency. an extremely cornpetitive individualism, and minimal governent within the context of a fiee-market are the key principles underlying these accords. and their implementation exemplifies the degree to which NR ideology has come to dominate Canadian politicai policy. The following section will explore the linkages between the Canadian political economy and the NR ideology of free trade.

The battle over fiee trade, championed by a prime minister who only months before had opposed the idea, saw the spending of unprecedented amounts of money by the corporate backers of the Conservative governent and culminated in the victory of the Tories in what has come to be known as the "fiee trade election of 1988". Still, this victory leaves many unanswered questions. For example, why is it that Brian Mulroney and his cabinet became convinced that fiee trade was the ody solution? Second, how 37 were Canadians sold on the issue? And finally, how could an economic strategy that would prove so costly to Canada not only be implemented but also how could an even more extensive successor agreement in the fonn of NAFTA also be implemented?

To answer these questions it is necessary to look more closely at fiee trade as an ideology promoted by the NR. Significantly, the adoption of fiee trade represents the clearest indication ofjust how successful the NR has been at shifting the political policy and ideology of Canada's major political parties.

The policy shifi to fiee trade is clearly evident with the signing of both the FTA and NAFTA. The rationale behind these agreements illustrates the belief in both the benefits and eficiency inherent in the fiee-market, and the inefficiency and waste that the

NR believes result fiom state intervention in the economy. Second, this shifi is fùndamentally an attack on equality as a societal goal worthy of pursuit. Finally, it is also clear that these trade agreements extend and strengthen private property rights by placing them increasingly out of reach of the democratic representatives of the people. Together, these justifications for the policy shift to fiee tnde are grounds for claiming that the NF2 has influenced both the policy agenda and the ideological stance of the Liberal and

Conservative parties.

The Liberal and Conservative parties chose fiee trade as an economic development strategy in the mid- 1980s. This decision was made in light of increasing pressure to pursue a "socialist" alternative of developing a national industrial strategy which would require a large degree of state intervention and control. (See Laxer

1986: 1 19- 137 for an example of such a strategy.) Thus, a fiee-market solution was 38 pursued within a process dominated by the influence of transnational capital.

Interestingly, both political parties had been opposed to the concept of fiee trade at various points in their histories. During the early 1980s, however, this position changed as NR elements began to gain dominance within each Party. Further, groups such as the

Business Council on National Issues (BCNI) formed in 1978 and composed of the top

150 Chief Executive Officers of the most powerfûi transnational corporations operating in Canada began to force the corporate agenda of the NR to the forefront of the political agenda (Hurtig 1992: 196- 198, McQuaig 1991 : 1 12- 1 14). By the mid-1980's. then, both parties were embracing the concept of fiee trade, and despite the Liberal party's rhetoric that tliey opposed the ffee trade deal with the U.S., no serious action was taken to prevent passage of either the FTA or NAFTA. The move to free trade represented a new economic development strategy which was counter to the Canadian federal government tradition of protecting key sector industries, such as trmportation, communication. energy. and finance and banking (Wilson 1989: 13). This protection had been achieved by public ownership in the case of the first two. and the strict regulation of pnvate investment in energy and the creation of virtual monopolies in the case of banking and finance which enabled this sector to become powerful and amas large pools of capital to promote investment (Wilson 1989: 13-14).

The signing of the FTA and NAFTA represented the federal govemrnent's abandoning of this traditional role and the tuming of many of its domains over to the private sector. The latter included the implementation of monetarist economic policy and its emphasis on a tight money supply aimed at bnnging inflation to zero. The Bank of 39

Canada gave up much of its control over the setting of interest rates to the pnvate banks. and together, these policy changes resulted in the banks' making record profits while the economy went into the worst depression since the 1930s and unernployment levels soared

(Hurtig 1992: 105- 108).

The concept of privatization and the efficiency of the fiee-market, both central to the NR, were criticai to the legitimation of these agreements. Further, the efficiency of the free-market was counterposed to the bureaucracy, inefficiency, and waste of "big" government. The emphasis on eficiency is deemed necessary to decrease costs and cut

"waste" while removing market distortions, for example marketing boards. Paul Martin notes that "govements have failed Canadians" (quoted in Cleo Mowers 1991: 123). The bottom iine was simply that the private sector perforrns best the necessary functions in society (Wilson 1989:22). The Liberals and Conservatives have thus rnoved to reduce the role of the state in providing for the economic and social security of Canadians and have embraced an updated forrn of laissez-faire philosophy at a time when a strong central govement is required to create an economy which is internationally cornpetitive and which can presenre national sovereignty (Wilson l989:24, Laxer I986:8O).

The FTA and NAFTA are also aimed at getting governments out of the way so as to disable the state's ability to regulate and restrict corporations (Barlow and Campbell

1 993 :1 5- 16). Further, by placing the policing of these agreements in the hands of non- elected bodies and trade panels, they also take away the accountability of the corporation to a democratic electorate. Thus, standards, such as those regarding environmentai protection, are in the hands of transnational corporations and their representatives with 40 red uced accountabili ty to those afKected by the policies impiemented (Barlow and

Campbell 1993:92-94). Thus, it is clear that the move to decreased state intervention, largely through the mechanism of Fee trade, is an example of an increased penetration and adoption of NR ideology and policy by the LiberaI and Conservative parties.

This link between the Conservative and Liberal parties, the NR, and the ideology of free trade is also apparent in their moves to decrease the social welfare net, for these reductions arc ofien framed as king critical to the need to be more cornpetitive.

Medicare and higher education, for example, have seen federal spending reductions initiated in 1986 and totalling $97.6 billion by the year 2000 (McQuaig 1993: 110). These attacks on social welfare, including reductions in the unemployment insurance system, are part of the NR's attempt to alter both the Canadian belief in equality and the structures which promote and preserve it. Equality is thus king undermined to bolster the strength of the private sector by subjecting people to the vagaries of the fiee-market (McQuaig

1 993 : 162-1 67). Furthemore. while it is unquestionably the Conservatives under Brian

Mulroney who were primarily responsibie for these changes, it is also critical that the

Liberal Party ha not only refrained fiom acting to prevent the implementation of these policies (Hurtig 1992:326-329), but has actively advocated many of these positions both while in opposition and in power. This advocacy is clearly indicated in the Liberal Party document "Creating Opportunity: the Liberal Plan for Canada" released just prior to the

1993 dection. in which the need for efficiency and a renewed role for the private sector is addressed.

The attacks on the social welfare net as noted above are also consistent with NR ideology and policy in that they demonstrate the move away fiom government intervention in the economy and the belief that the state should take responsibitity for social welfare. Furthemore, these attacks exemplifi the NR's belief in the supenority of the fiee-market and the right, or liberty, of the individual to have fiee choice even if that choice involves the decision to "freeze in the dark, as neo-liberal philosopher Von

Hayek suggested. Key Liberal policy analysts Pat Latham and Dan Donovan also note:

"The challenge of moving away fiom the principle of universality wiil require a change in contemporary Liberal philosophy and in a rather dated klief that governments cm help everyone and solve al1 problems" (Latham and Donovan 1 992:80). Liberal Finance

Minister Paul Martin's changes to social programs as outlined in his 1996 budget Mer exempliw this change in ideology. for he outiined changes which cut education and heaith funding. unemployment insurance fhding w.I.) and seniors' pensions, and will eventually end federal transfers for social programs (Vancouver Sun, Feb.29, 1996, A3).

Finally. these attacks on the welfare state will clearly have the effect of increasing inequality, and this is consistent with the NR's belief in both class hierarchies and that individuals are inherently unequal and, therefore, inequalities are both natural and beneficial to provide incentives for achievernent in the context of a free-market system

(Hayes 1994:84-92).

A good example of the Liberals' move away fiom state intervention in the economy is their stated policy, prior to the federal election of 1993' of supporting the creation of a national infrastructure program (see Creating Opportunity: the Liberal Plan for Canada 1993). Upon election, the new Liberal governent very quickly killed this 42

program. citing the need to reduce the deficit as a more important objective. Therefore, it

can be concluded that the infrastructure program was used as an election strategy to give

Canadians hope in a new government which would put job creation at the top of its

priority list. In fact, the Liberals have governed as fiscal consematives and have focussed

closely on deficit cutting by taking the axe to social programs and government

bureaucracy. and by privatizing Crown corporations and decentraliurig powers

(Vancouver Sun, March 2, 1996).

Another example of decreasing state intervention in the economy is achieved

through the privitization of public corporations. According to Liberal Finance Minister

Paul Martin. the sale of CN and Petro-Canada to private interests is to be worth just under

$1 billion (Vancouver Sun, Dec.6,1995, A3). This sell-off to the private sector is also

carried out in the name of economic efficiency and in this way disguises the massive

transfer of public assets to corporate allies of the political elite.

The NR emphasis on reducing taxes for the wealthy is also evident in the Liberals'

cutting of payroll taxes in 1997 (Vancouver Sun, Apnl22, 1996, A3c). Because this tax

is largely paid by corporate Canada, it means substantid tax swings for large companies.

Furtherrnore. the Liberals rescinded their promise to remove the much hated GST

(Vancouver Sun, Apnl24, 1996, A3). The GST, Iike all consumption taxes, tends to fdl

most heavily on low income eamers, for it consumes a larger percentage of low income

earners' wages. This mode of taxation is consistent with NR ideology which in effect justifies the shifiing of the tax burden from rich to poor, believing that the nch create

wealth and that the more they have, the more they can invest, which in turn creates 43 greater weaith. This wealth, according to NR theonsts, then "triclcies"down to enrich dl of society.

Thus, in summary, the Liberai and Conservative parties have both shifted their policy to the right and embraced a NR informed approach to the econornic development of Canada. This shift includes supporting a policy of fiee trade with the US. and

Mexico, the privatization and dismantling of govenunent programs, services, and crown corporations; rnovement away fiom a mixed economy to a fiee-market economy, the enshnning of private property rights within these accords. the subsequent removal of these accords fiom the liberal democratic decision making process, and, finally, the replacement of equality with efficiency as the new central goal to which Canadian society should be oriented.

Conciusion

In this chapter the emergence of NR ideology, policies, and agendas have been documented in global institutions and in Western democracies, including Canada. The purpose of the formation of the MF, the World Bank, the U.N., and the GATT in the

1940's was to stabilize national economic and political systems and ensure the dominance of capital through trade liberalization. These organizations al1 supported fiee-markets, free trade. and cornpetition. The UN also served to increase the expansion of U.S. hegemony and the capitaiist market, as well as playing a critical role in containhg socialism and promoting the ideology of liberal democracy. The IMF and World Bank provided the frarnework for the global administration of capital, whereas the GATT worked to eliminate national barriers to trade and create universal regdations for the 44 global market. In Western demoçracies, the crisis of Liberalism in the 1930s had Ied to the formation of a social-democratic consensus after WWII which emphasized the policies and discourses of Keynesianism, labourisrn, reformism, and welfarism. This arrangement between capital and labour was able to benefit both by increasing wages and benefits, including public education, health care, and unemployment insurance, to workers while also providing capital with increasing profits and a stable, well-educated labour force. Thus ensued several decades of steady growth with relatively few dificulties between the parties to this historic compromise.

In 1960. the OECD was forrned and worked to harmonize national policies and continued to liberalize and expand world trade, but by the end of the decade decreasing econornic growth. the onset of both high inflation and unemployment, the growing strength of Japan and the NICs. and the OPEC oïl crisis of 1973 resulted in the end of the

Keynesian era of state intervention. This global economic crisis shattered the optimism of the post-war consensus. and the GATT was clearly in serious trouble as the entire world economy teetered on the verge of coliapse. The EEC was fonned and attempted to shield member nations fiom the effects of this global cnsis, and its protectionist policies threatened to split the world into huge trading blocks. In the West, this economic crisis destroyed the preconditions on which the Keynesian compromise was constructed, and the hegemony of social democracy began to crurnble as the NR began to dominate and attempt to build a new consensus around the discourses of the fkee-market, debt and defi ci t reduc t ion, social authoritarianism, and crime and punishment themes. 45

In Canada, this cnsis was dealt with by the ruiing Liberais tbrough the use of economic nationaiist policies, including setting up the Canadian Development

Corporation in 197 1, the development of a coordinated industrial strategy in 1972, the birth of the Foreign Investment Review Agency, and the creation of the National Energy

Program wbich included establishing Petro-Canada as a 100 percent Canadian govemment owned national oil Company. in the 1980s, this strategy failed as world oil C prices ptummeted and FIRA was eliminated because of pressure fiom the GATT leaving

Canadian policy makers to search for a new national development strategy. This new direction was forged by the Mulroney Conservatives, elected in 1984, and backed by the

Macdonald Cornmision report tabled in 1985, as well as by the hancial and ideological power of the Business Council on National Issues (a transnational corporate lobby group) and calied for a neo-liberal approach including a decentralized non-interventionkt state with a free-market policy orientation featuring a fiee trade agreement with the U.S.

In the West. Margaret Thatcher's election victory in Britain in 1979 and Ronald

Reagan's triumphs in the U.S. in 1980, and again in 1984, signailed that the hegemony of the NR had begun. Mulroney's subsequent success in Canada in 1984 and 1988, and the policy shifi to the right as evidenced by the implementation of the FTA in 1989, also illustrated this NR hegemony. These policies demonstrate the embracing of a new

"common-sense" which emphasizes minimal government, fiee-market economics, efficiency. privatization, and extreme individualism. Together the enshrining of these new political and economic policies and their philosophical underpinnings in government and public discourse signiw the moment of the hegemony of the NR and the decline of 46 the Keynesian Welfare State

In the 1980s, as moves were being made by several nations to trade outside of the

GATT. the GATT considered focussing on the services sector as a way to expand world trade. The growth of the EEC also threatened to split the world into huge trading blocks-

In addition. the Uruguay Round of the GATT was not completed and had to be restarted and eventually completed in 1993. In the 1990s numerous examples of infringernent upon domestic policies occurred. In Canada, pressure fiom the GATT to reduce barriers to trade, lower tariffs. and diminish the role of government in subsidizing the economy. targeted liquor control boards and marketing boards for elimination or privatization. In

1994 the NAFTA. which now included Mexico in a continental fiee trade agreement, was implemented. and this implementation cemented the hegemony of NR policy in Canada, for it enshrined private property rights. reduced the power of democratically elected national bodies. and provided the structure for a fiee trade regime which emphasized the

NR discourses of efficiency, limited governrnent, and free-market economics.

The ground breaking work of key global institutions and the policy shifts to the right by major Canadian political phes enshrined in the FTA and NAFTA, as illustrated above. demonstrates the powerful influence of the NR. This influence can also be seen ciearly in the growth of NR ideology expressed by the representatives of Canada's main political parties and fond in the debates fiom the 1970s to the debates of the 1990s as recorded in the Hansard fiom the House of Commons. 1 will now examine the NR ideology evident in these debates. Chapter 4 New Right Ideoiogy in Canadian Political Parties

in the mid-1970s

The key question which will be addressed in this chapter is "To what extent are the three key NR themes - free-market economics, debt and deficit reduction, and social conservatism - evident in major Canadian political parties during the mid-1970s?" The answer to this question will be followed in chapter 6 by meranalysis of these parties in the 1990s to document their shifts in ideology , whic h now exhibit more NR-dorninated key themes.

In the 1970s the Canadian fiscal situation had bepto change because of the changed nature of global capitalism, and the Progressive Conservative (PC, or Tory) and

Liberal parties were in the process of battiing over which ideological direction to take.

The Liberals dorninated this penod politically, and Prime Minister Pierre Trudeau maintained a distance fkom many NR positions and continued to develop policy with a social democratic orientation. In contrast, the Conservative Party expressed NR positions in a nurnber of areas. However, the Conservatives remained supportive of measures to alleviate the worst effects of a capitalist fiee-market and also recognized that concentrations of corporate power may be damaging to the functioning of a capitalist world market and, so, may need to be limited. NR ideology was present in the

Conservative Party and to a lesser degree in the Liberal Party in this period, but had not as yet penetrated into the discourse of the New Democratic Party (NDP) which was still staunchly social democratic, supporting goverment intervention in the economy. 48

New Right Ideology in the Conservative Party

During the 1970s the Progressive Conservative party expressed several positions that resonate with those of the NR. These include positions on fiee-market economics, debt and defici t, social conservatisrn (which includes social and mord authoritarianism, and crime and punishment).

Free-market Economics

The Conservatives believe in the fiee-market, or quite simply, that the private sector performs best the necessary fùnctions required in a modem capitalist economy.

Thus. in a number of areas, the Conservatives express their desire to see an increased role for the private sector and a diminishing role for govemment, and in some instances, its exclusion. For example, in the area of employment and job creation, Conservative

Member of Parliament (MP) Sinclair Stevens points out that "In getting our people back to work. we consider the private sector should be the primary supplier ofjobs"; and again, "It is the administration's task to set the atmosphere within which the economy cm flourish. It is the private sector which should be called upon to produce the results"

(Hansard 197Y76, p. 13446). The private sector is, therefore, seen as the engine of the economy, and the goveniment is viewed as having a supporting role to ensure that the conditions are right for the investrnent, development, and profitability of capital. Another example is the position of Progressive Conservative Party (PC) MP Bill Clarke who echoes this belief in the fiee-market and asked the government to cut feded spending, decrease unemployment insurance benefits, let the private sector take over CNR hotels, seil the CBC and Canada Post, and privatire public works (Hansard 1 975/76, p. i 39 19- 49

20). Tory MP Paul Yewchuk also saw privatizing public assets as a better option, and he suggested that Petro Canada be sold instead of cutting social programs (Hansard 1975/76, p. 1O 194). This belie f in the privatization of the public sector is illustrative of the NR belief in the efficiency of the private sector and the inefficiency of big government.

Furthermore, it illustrates the NR belief that the free-market works.

PC leader Robert Stanfield also believed that government was getting too big and was growing too fast. He perhaps captured the party's belief in the fiee-market best, however, when he commented, " What we need in the post-control period is not more government intervention but more restricted, intelligent, honest and better defmed intervention" (Hansard 197Y76, p. 14378). The Conservative party's free-market view was. however. tempered with a belief that although the welfare state was too big and too expensive. it did have value and served to minimize some of the negative effects of the capitalist system; as Stanf~eldpointed out, "Surely we are not going to revert to a pre-

Keynesian world. 1 remember what that world was like, and 1 do not wish to go back to it" (Hansard 1975/76, p. 14379). PC MP Donald Mwowas also concerned not to push the burden of restraint onto the poor as he questioned the Liberal government whether

"the government [is] really comrnitted to restraint and are (sic) not asking the disadvantaged to bear the greatest burden of the austerity program" (Hansard lW5/76, p.10194).

However, despite these sympathetic responses fiom the Conservative Party leader and other MPs, the Conservatives did cal1 for cuts to welfare programs and services. This cal1 was in part a response to a mounting debt and deficit problem, but more importantly, 50 it made clear the reigning philosophy of the Conservative Party which was opposed to welfare programs and services except in cases where people were truiy destitute. The

Conservatives believed that government intervention in this area was as inefficient and wastefûl as in any other. Conservative MP Stan Darling criticizes the ruling Liberals, stating pointedly thût " We in Canada are rnuch worse off because we have a government which is welfare oriented and at the same time shockingly inefficient. It has been pointed out time and again that our main problem in Canada today is that the government is wasteful, inefficient. and completely out of touch with the people" (Hansard, vol. 7, p.73 18).

The Conservatives fiee-market views were aiso tempered, however, by a recognition that concentrations of corporate power may be darnaging to the tùnctioning of a capitalist world market, for "it is quite possible to have concentrations of power intemationaliy which. though not looming very large witbin Canada could have a substantial effect. even a highly detrimentai effect, upon life in this country" (Robert

Stanfield. Hansard 1975176, p.5067). In summary, the Tories express a fiee-market ideology tempered by a concern to mitigate the worst effects of capitalism and also to

Iimit concentrations of corporate power which may hamper the functioning of the free- market.

Debt and Deficit

The Tory position on the issue of govemment debt and deficit can be characterized as one of fiscal conservativism with the belief that a balanced budget should be maintained by a responsible government. Furthemore, this baiance is to be achieved by decreasing government spending, cutting programs and services, and downsizing the public sector, rather than by increasing taxes or using public fùnds to create jobs.

For example, in response to the govement's mounting debt in the mid- 1970s

Joe Clark cailed for "an immediate announcement of some substantial and ciramatic cuts in government expenditwe" and asked the government, "Are we going to have to live with the terribly bad example of a failure of restraint symbolized by a $5 billion deficit"

(Hansard 1975176, p. 1 1238-9). Mr. Whittaker (PC) asked, "What atternpts, if any, is the government making to clear up this debt?" (Hansard 197Y76, p.4548). Also, fomer

Prime Minister John Diefenbaker said that "This government, under the Leadership of the

Prime Minister. has been on an orgy of extravagance" (Hansard 1WW6, p.95 88).

The Conservative Party thus took strong issue witb govenunent spending and debt and issued dire warnings and proclamations in an attempt to force the Liberals to alter their policies.

High levels of government spending on welfare. health, and unemployment insurance were targeted as the cause of the deficit and debt and were believed to be at the root of a whole host of problems. "One of the contributing factors to high interest rates in

Canada is the high rate of govenunent spending" (Sinclair Stevens PC MP, Hansard

1 975/76, vol. I 1, 1 18 19), including increasing spending on medicare (Howard Grafftey

PC MP. Hansard 197Y76, p. 1005). The high and growing debt toad as a function of this spending was also exacerbated by the high interest rates. 52

The Tories emphasis on a baianced budget and their assessrnent of blame for

"crisis" on high govemment spending on health, education, unemployment insurance, and

other prograrns and services marks the party as representatïve of several NR positions.

However, these positions were not unquaiified and do not contain the radical and harsh

solutions found within the ideological assault put forward and demanded by NR

proponents in the mid- 1990s.

Social Conservatism

The Tories also exhibit an ideology, like that of the NR, which contains elements

of social authoritarianism best expressed in their beliefs on abortion. For the

Tories, abortion is a crimiad matter and should only be available in extreme cases, where a woman has become pregnant as a result of rape, for example. PC MP Jake Epp

epitomizes the Tory view and stands firm as being deeply opposed to the govenunent

policy of what he views as abortion on demand (Hansard 1975/76, p.5 102).

During the nid-1970s crime and punishrnent issues were largely reflected in the debates over capital punishment with the Tories supporting the death penalty. This

support resonates with the NR belief that capital punishrnent is an effective deterrent to crime and also emphasizes the importance of revenge and retribution to the NR's way of thinking. The Tories, thus, view the Liberals and NDP as king too soft on crime.

New Right Ideology in the Liberal Party

In the mid- 1970s the Liberals under Prime Minister Pierre Elliot Trudeau tried to maintain the policies and programs of the welfare state against the power of the sweeping 53

global changes nithin the new capitdist world order that were allied agaulst them. This

period also witnessed an attempt to hold steadfastly to the social democratic welfare

ideology of the past against the gowing influence of NR ideology .

Free-market Economics

The Liberal Party's view in the mid-1970s can be characterized as one of belief in the market tempered by government supervision and direction. An unbndled faith in the

fiee reign of the market was not yet to captivate the Liberals.

Prime Minister Trudeau saw the role of govenunent as king "very important in aiding the private sector" (Hansard 197976, p. 1062 1). However, he also viewed the government as keeping watch over business and appointed the Bryce Commission in

1975 to look into corporate concentration in Canada (Hansard 197976, p.5066, 5583).

Trudeau believed that "Concentrations of corporate power in Canada must not be allowed to take place where the result would be injury to the fair operation of the capital and financial marketplace" (Hansard 1975/76, p.5066). In fact, the Liberals took a number of actions to limit the effects of the fiee-market during this period.

For exarnple, as outlined in the throne speech of September 30th, 1974, the

Liberals laid out a policy to establish Petro-Canada, a publicly owned oil Company, to enable Canadians to regain a measure of domestic control over an industry that was 99% foreign owned and controlled. They also amended the Combines Investigation Act to ensure that unacceptable profit levels were not king realized (Hansard 1975/76. p.6) and proclaimed that a majority of directors of federally incorporated companies must be

Canadian (Hansard 19W76, p.7). Furthemore, the Liberals expanded the Foreign 54

Investment Review Agency (HM)to cover cultural enterprises, and they called for an increase in Canadian processing of naturd resources (Hansard 1WW6, p. 7).

Govemment intervention was also recommended to support Canadian companies which export in cases where those exports were prevented by foreign ownership (Hansard

1975/76. p.7).

Thus the Liberals took an approach to the market which included an allowance for the presence of a strong federai role in ensuring cornpetition, in rnaintaining national industries in key sectors, and in rnonito~gforeign and domestic concentrations of corporate power and investment in Canada. The Liberal approach, then, in contrast to the

NR's free-markets at al1 costs ideology, saw strong limitations to the play of the fiee- market.

Debt and Deficit

The Liberals at this time were faced with increasing inflation, unemployment, and rising interest rates, and stmggled to find a strategy to deal with the mounting deficit and debt. The Liberal approach focussed on a number of key points.

First, inflation rather than unemployment was viewed as a key problem and, as a result, the main thnist of the budget in this period was to reduce expenditures and exercise restraint (Vancouver Sun, c.3 June 9,1975). In his budget speech of June 23,

1975. Finance Minister John Turner targeted world inflation as a key problem and stated that expansionary policies have not had the effect the governrnent wanted and, as a result, hard choices needed to be made (Hansard 197W76, p.7020). The govemment made it clear that it was taking a path that would not be protectionist and would not erect barriers 55 to trade (Hansard 1975/76, p.7021). In fact, the Likrais were entering a new era of competition and believed that "We have to remain cornpetitive to sell, and sales are the on1y guarantee of jobs" (John Turner in Hansard 1975176, p.7022). The Liberal response to the nsing debt and deficit, then, was to help the economy grow while miniminng inflation.

Reducing both inflation and rising interest rates meant imposing restraint on the public. As Turner stated, "If Canadians generally corne to recognize that moderation and restraint are in the interest of everyone - that will in itself dampen inflation" (Hansard

1975/76. p. 7024). And furthemore, Turner's budget attempted to show leadership in moderation and restraint and make clear that Canadians would have to "moderate their daims against the economy " (Hansard 1975/76, p.7025).

The control of public expenditure also figured into the Liberals deficit reduction plans. including a $1 billion cut to programs and services, decreasing growth of the public sector fiom 4.1 to 3.1%, decreasing salaries for public servants, and decreasing fûnding for healthcare. In addition, the Unemployment Insurance system would become self- financing, and benefits would be decreased (Hansard 1975/76, p.7026-28).

The Liberals were concerned, though, to maintain a balanced approach, and when it was suggested that unemployment should be allowed to nse unimpeded to stop inflation, Turner responded, "In human terms for me it would be unthinkabIe" (Hansard

1975/76, p.7024). He added, "1 believe the key to achieving the aim [O inflation] is to decrease the increase of costs and prices now. The government is not prepared to do this by deliberately putting people out of work" (Hansard 1975176, p.7038). The Liberals 56 were not willing to make a radical departure fiom previous policy, and Turner admitted that "The govemment does not have a fixed program to liquidate the public debt"

(Hansard 197976, p.2492). However, he also pointed out that " When econornic, fiscal. and financial market conditions are favourable, the govenunent attempts to reduce this debt" (Hansard 197976, p.4548). Thus the Liberal Party favoured debt and deficit reduction but recognized that this reduction was to be accomplished with as little dislocation and pain as possible and only when the conditions were right and the govemment was able to fiord to do so. This preference was at odds with the Tory restraint plan which was too harsh for Tmdeau's liking and he refùsed to follow it

(Hansard t 97976. p. 1725). believing that the key to winning the deficit battle was to conquer inflation and not resort to major cutbacks to programs and services (Hansard

197Y76, p. 14374).

The Liberals were, thus, intent on pursuing a market driven approach to fixing the ills of the economy, including the adoption of a NR monetary economic policy in an attempt to reduce inflation, the deficit and the debt. However, unlike the NR approach, the Liberals wanted to get there slowly, rather than in a huny. and attempted to attack the debt and deficit problem without major cutbacks which wouid inevitably cause many people to experience major dislocation and social costs. The Liberals refusa1 to forge ahead illustrated that a concem for people's well-being and a strong will to preserve equality of opportunity still existed in the party. This ethic of compassion would continue to soften Liberal policy making for aimost two more decades until global economic pressures became too strong for them to resist. Social Conservatism

On the question of abortion, the Liberal Party view is captured best by the positions of Trudeau and Turner. Trudeau supported abortions in cases where the wornen's health or life is in danger (Hansard 1975/76, p.5 102-3). For Liberal John

Turner. abortion is a personal issue and not a legal matter, and he claimed that "Criminal law should not be used to force one mord view over another" (Hansard 1975/76, p.5 102).

The liberal view, thus, presupposes that there is an important need for abortions and that the Iegal system is not the proper mechanism to use to decide the issue. The liberai view also presupposes that an element of choice be ailowed in the system. Clearly then, the

Liberal view opposed that of the NR which views abortion as murder and as a criminal matter to be decided through the legai apparatus of the state.

The Liberals were successfid during the mid- 1970s in eliminating capital punishment as a method of punishing criminals, and their position on this issue shows an opposition to the NR's clear support for capital punishment. Furthemore, this pend is also characterized by the relative lack of debate on crime and punishment issues, and this contrasts dramaticaliy to the key place that they hold in the heavily NR-dominated debates of the 1990s.

New Right Ideology in the New Democratic Party

Three decades earlier the NDP had just recently been fonned and held its founding convention fiom July 3 I st to August 4th, 196 1. Mer splintering fiom the

Cooperative Commonwealth Federation (CCF), the party adopted a social democratic ideology which contains policy positions clearly opposed to the Conservatives and the governing Liberals, and to the ideological positions of the NR.

Free-market Economics

The NDP position on the fiee-market is that inequalities result fkom the fimctioning of the capitalist system which creates a highly class stratified society with a huge gap in living standards between rich and poor. This situation is completely undesirable from the NDP's point of view, and govenunent intervention in the economy is required to ensure a reasonable distribution of wealth and economic benefits. That is clearly pointed out by MP Andrew Brewin who says. "Redistribution of income in the direction of equaiity and, as Lord Keynes put it, this is on the basis that extremes of wealth and poverty are disgracefül and also because the poor spend more of their income than the rich" (Hansard 1975176, p. 14394). The NDP prograrn, therefore, contains many economic nationalist measures which advocate extensive government intervention into the economy including governrnent ownership and investrnent in key sectors. In addition. the increasing power of multinational corporations was crîticized. and the NDP recomrnended the increasing use of fiscal levers to deal with this power (NDP policies

1 96 1 - 1 976). This recomrnendation prompted NDP support for putting some real teeth into the Bryce Commission looking into corporate concentration. However, NDP leader

Ed Broadbent was concerned that this body wouid not have the power to effect change, and he notes that the increasing concentration of power in many sectors of the economy is damaging to the need for equality of opportunity (Hansard 1975176, p.5067).

Broadbent put forward a list of recommendations which identified some of the areas where intervention was required: first, increased spending on housing; second, 59

ending the $1.8 billion in tax incentives to companies: third, ending the tax defed

system for companies which has allowed for $7 billion in back taxes to go unpaid; fourth,

increasing taxes on upper income eamers; fifth, keeping the domestic price of oil below

the world price. Finally, Broadbent believed it was wrong to cut good social programs

(Hansard lWY76, p. 10 163).

The NDP's opposition to fiee-markets was evident in the party's plan to lessen the gap between rich and poor. The NDP's plan in 1975 for the redistribution of income included tax reform, increasing pensions, incorne security, a cost of living index, and, increasing unionization and government procurement in the economy (NDP policies

196 1 - 1976). In 1976, this redistribution was to include a national development policy which recommended massive government intervention, an overhaul of the transportation system, decreasing the power of multinational corporations, controlling investment through tough regulations and public ownership of financial institutions, public ownership of minerai and energy resources, targeting economic sectors for development, govemrnent research and deveIopment, marketing boards, and cultural nationalism (NDP C policies 196 1- 1976).

For the NDP then, the fiee-market represented an undesirable aspect of capitalism that would threaten the weil-king of many Canadians. This threat must be dealt with through extensive govemment intervention into the economy in order to protect non- wealthy Canadians fiom king positioned at the bottom of the economic barrel, subject to poverty and destitution. The NDP's position on the fiee-market is thus clearly in opposition to the NR's ideology which embraces it. Debt and Deficit

The NDP position on government debt and deficit was aiso concemed to recognize and protect people from the inequalities inherent in a capitalist economy. This meant that, if for example, spending to put people back to work or to maintain a high standard of health care was necessary, it would take precedence over reducing the deficit or paying down the debt. Furthemore, the NDP believed that getting people back to work. increasing taxes on the rich, closing loopholes in the tax system, and paying workers fair wages was the preferred way to resolve the deficit and debt problem.

For example, NDP MP Lome Nystrorn stated, "1 am still finnly convinced there are many tax loopholes which some weaithy people and some corporatioils cm walk rhough" (Hansard 1975176, p. 10057). Another NDP MP Max Saltsrnan demanded the

Liberal government spend more on the poor and the sick, on health care, and on research

(Hansard 1975176, p. 1 1063). NDP leader Ed Broadbent made a cal1 for an immediate increase in the minimum wage to %3.50/hrto help poor workers (Hansard 1WW6, p. 1 1991 ). Broadbent also called for increased spending on employrnent projects

(Hansard 1975l76, p.202) and alternative programs to create jobs (Hansard 1975176, p.7565-66) while Stanley Knowles MP was concerned with how the Prime Minister would assist those over 65 who rely only on Old Age Security and the Guaranteed

Income Supplement (Hansard l97SI76, p. 1442). NDP MP Andrew Brewin questioned the government on why they are not proceeding with a guaranteed income policy if they are so concerned about child poverty (Hansard 197Y76, p.4154). The NDP was also concemed that the Liberals' proposed cuts would increase unemployment and slow the 61 economy, and Lome Nystrom MP questioned the government as to whether employment programs would be created in the near fiiture to increase employment (Hansard 1975/76, p. 1 O194).

The NDP, then, did not see the deficit and debt problem in the same manner that the Liberals. and especially the Conservative Party, did. The NDP's approach to dding with this issue focussed on increasing public and private sector spending job creation and employment, increasing taxes and closing tax loopholes for the wealthy, and simultaneously providing excellent weifare state programs and services. Fundamentally, the NDP was a social democratic party in the 1970s and the penetration of NR ideology into the Party was insignificant. Taking a social democratic stance allowed for a powerful critique of the ruling Liberals who's ideology had already teetered under the influence of the NR as iliustrated by Broadbent in the following comment: "In accepting the view that al1 government spending is inflationary, 1 say with care and seriousness that what the Liberal Party has done is to accept a mode of thinking that I thought had disappeared from serious economic thought back in the 1930s. However, the Liberal party has resurrected it in 1975" (Hansard 1975/76, p. 10 162). Despite its growing influence in the Liberal party, the NR would have to wait a few more years to achieve a measure of success in fiacturing the ideological discourses of the NDP.

Social Conservatism

The NDP's position on abortion is one of fke choice and that this choice belongs to the women involved in consultation with their doctors. This view is also clearly opposed to the NR's view of abortion as a criminal matter. 62

The NDP believes that the best way to prevent crime, and thereby reduce the need for punishing criminais, is to create jobs and achieve full employment. This hl1 employment economy would provide people with the economic abiIity to function in society and would also develop a renewed sense of self-worth and self-respect in people while eliminating the need for them to resort to criminal activities.

Table 4.1 below sumrnarizes the degree of support for the three central tenets of

NR ideology that each of the major Canadian political parties holds. The fke market category illustrates the degree to which support is given for econornic policies which favor a completely free market and attempt to minimize government intervention. A high degree of support for policies in the debt and deficit category would favor economic policy aimed at slashing government spending and taxes while transferring economic activity to the private sector and reducing the role of the state in econornic development.

A high level of support for social conservatism would indicate that policies favouring

Victorian moral values and an ernphasis on increasing sentences and toughening the justice systern for criminals would be favoured.

Table 4.1: Support for New Right Ideology by Canadian Political Parties: 1970s

PARTY FREE MARKET DEBT &DEFICIT SOC. CONSERV.

Prog .-Conservative Moderate Moderate-High Moderate

Li beraI No Lo w-Moderate No

New Democratic No No No 63

Conclusion

In the mid- 1970s the Conservatives (see table 4.1) heId a moderate position on the fiee-market as they focussed on supporting fiee-markets and eliminating the ineficiencies of big govenunent, but with the caveat that the poor must be protected fiom the worst effects of capitalism and the dominance of global corporations which limit the functioning of the free-market. The Party gave moderate to hi& support to debt and deficit reduction and believed that a balanced budget achieved through government downsizing was crucial. The blame for the debt problem was dso clearly laid on welfare state spending on social programs. The Tories also supported a rnoderate position with respect to social conservatism as they viewed abortion as a crime and supported capital punishment. The Liberals (see table 4.1) did not support NR positions on the fiee- market. or social conservatism. Instead. the Party gave support to government intervention in the economy with an emphasis on ensuring that there was competition between private firms. and supported legal abortions and strongly opposed capital punishrnent. The Liberais did show low-moderate support for debt and deficit spending restraint and focussed on decreasing expenditures and reducing inflation. The NDP (see table 4.1 ) in the mid- 1970s did not support NR positions and held similar social and moral positions to the Liberals and supported fiee choice in the case of abortion, and stronçly opposed capital punishrnent. Furthemore, the NDP supported state intervention and spending in the economy, which included government ownership and investment in some sectors, and believed that fiee-markets were undesirable and needed to be controlled aç they generated intolerable levels of inequalities. The growth of NR 64 ideology, however, was to alter the landscape of Canadian politics - as outlined in the following chapter - with the birth of a political party which would speak to the political, economic, and cultural experiences of Canadians in a radical way. 65

Chapter 5 The Rise of the Reform Party and its New Right Ideology

The success of Margaret Thatcher in Britain in 1979 and Ronald Reagan in the

US. in 1980 and 1984, helped to set the stage for the election of Brian Mulroney in

Canada in 1984 and the hegemony of NR ideology in Canada. Western dienation also played a key role as British Colurnbians and Albertans had histonc grievances against the federal govemment. As a result, NR ideology fits well with their conception of the world which centred on a strong individualism, a powerfùi criticism of the federal govemment and their national policy interventions, and a belief in fiscal conservatism and the free- market. This chapter will look at the astounding rise of the Reform Party to national prominence and will include a brief history of its leader Preston Manning, his Party, and the comections between Reform and the business cornmunity. The NR ideology of the

Reform Party will also be explored in detail.

Preston Manning's Influences

The son of Alberta Social Credit Premier Emest Manning, Preston grew up in a politicai environment and was groomed in the ways of politics fiom an early age. His father's influence was both of a right-wing and fûndarnentalist evangelical Christian nature. As Premier for 25 years, his father fought against the public ownership of utilities and medicare (Braid and Sharpe 1990:33),attacked the welfare state, expressed a strong anti-socialîst stance, and embraced a wide open fiee enterprise philosophy (Dobbin

199 1 :1 9-2 1). His father was also deeply infiuenced by Arnerican individualism and the fiee-market and it was this ideology which was to play a major role in Emest Manning's 66 ability to dominate the province of Alberta. This domination was made possible by giving American capital control of Alberta's oil and very favourable terms of development in remfor assistance fiom the oil companies in ensuring that the Social

Credit Party would hold power (Dobbin 1991 :86-91).

In addition, his father was a close associate of "Bible Bill Aberhart", the previous

Premier of Al berta, whose conservative. fûndamentalist Christian, and deepl y authoritarian way of thinking was a significant influence on Emest Manning (Dobbin

199 1 :14-1 8). In tum this influence deeply affected Preston Manning who "readily acknowledges the powerful influence of his faith on his thinking. The nature of that conservative Christian faith - its rejection of 'collectivism', its glorification of individualism and free enterprise, its view of women as submissive to men and of homosexual men and women as the 'basest of sinners' - must be reflected in 'al1 spheres' of his life" (Dobbin 1991: 1 1).

In addition, within the background of Alberta's political culture into which

Preston Manning was born is an ethic of strong individualism and a feeling of dienation, which has prompted the rise of separatist movements which have tried to address many issues. These have included gun control, immigration, abortion, the abolition of the death penalty, metrification, equalization payments, the welfare state, high taxes, and bilingualism (Dobbin 1991 :12-1 3). Emest Manning and now Preston Manning grew up within the influence of this authoritarian populist culture and have sewed as key players within it and Manning's business connections bear out the similarity between his ideology as a management and politicai consuitant and as the leader of a new political party. For example, during the period 1971 - 1986 Manning worked closely with

Alberta's oil and gas industry, and this kept him close to those most likeiy to reinforce his views. These companies held strong, unfettered fke-market and pro Arnerican views which Manning supported wholeheartedly (Dobbin 199 1:43). In addition, Manning was involved with Thompson Ramo Wooidridge (TRW) Systems - one of the leading military firms in the US. - where he worked as a politicai strategist and researcher, and travelled to Southeast Asia on what he called a "fact finding mission" to see "pacification" in action (Dobbin 199 1:35-38). Preston and his father aiso ran M&M (Manning and

Manning) Systems Research and consulted with both corporate clients and goveniments, primarily on the most practical means of getting government out of the way and increasing the role of the private sector in al1 aspects of social and economic life (Dobbin

199 1 :46). That included encouraging the private sector, communities, non-governmentd organizations, and families to resume their roles in the area of social services (Dobbin

199 1 :49). Finally. Preston Manning also worked for the Canada West Foundation and the Businessman's Council on National Issues - both business-f'unded lobby groups and think tanks - and wrote a paper in 1978 on the entrenchrnent of economic and property rights in the Constitution (Dobbin 1991:50). This attempt to give corporations and rich individuais the ability to counteract the democratic desire to put some constraints on the use of property is one of the key demands of the NR. Thus Preston Manning's New Right ideology is clearly evident in his consulting work with business.

The History of the Reform Party

A group of wealthy businessmen, including Stan Roberts and Francis Winspear, 68 put up $100,000 to form the Reform Party and held the founding convention in May of

1987 in Vancouver, B.C. Attendence was by invitation only, and the slogan, "The West

Wants In" was coined, although the attendees aiso voted to form a national party (Dobbin

1 99 1 :76-77). The Party's first breakthrough, however, came on March 14. 1989 when

Deborah Grey won a byelection in the riding of Beaver River, and shortiy thereafier on

Octo ber 16. 1989 Stan Waters won the Alberta Senate election (Dobbin 199 1:82)(Braid and Sharpe 1 990:3 1)- These two events allowed the Party to receive major media exposure and also gave the Party a voice in the House of Commons. In addition, " With

Grey in parliament, the Refonn Party could no longer be so easily dismissed as just another Westem splinter group" (Braid and Sharpe 1990:30).

Electoral Success: The West and the National Push

The deep seated roots of Westem alienation have been harnessed expertly by the

Reform Party and are best captured in the slogan "The West Wants In" (Braid and Sharpe

1990: 14). This slogan has been described as "brilliant", and as "the best four-word description ever penned of the Western attitude over 150 years" (Braid and Sharpe

1990: 17). The Refonn Party targeted resentments that include the positioning of the

Western economy as a support base for the national economy, whereby the West would purchase eastem manufactured goods while the east would benefit frorn cheap foodstuffs and resources from the West (Braid and Sharpe: 1990:20). Other Western cornplaints included anger over the National Energy Program (NEP),the Goods and Services Tax

(GST), patronage, the Meech Lake Accord, crooks in the Tory caucus, and Quebec. "In

Alberta and B.C. fùrious Westerners flock to Reform Party of Canada meetings 69 demanding that Otbwa junk the Meech Lake deal, get tough with Quebec, and balance the budget. Everywhere in the region, diesagainst the GST draw large, nasty crowds"

(Braid and Sharpe 1990: 10). According to former Prime Minister Brian Mulroney. the

Nat ional Energy Program aiso angered the West, as it was seen as an attempt to check the growing wealth and influence of the region (Braid and Sharpe l!WO:8 1). Furthemore, the Quebec language nghts bill 10 1 in 1988 infiinated many in the West, for it was viewed as giving Quebec special rights and privileges (Braid and Sharpe 1990:82).

"Muironey's personality and Quebec identity boil vigorously in Westem minds to form a potent political poison. When the Prime Minister taks about regional equality,

Westerners hear blarney: when he dws a favor for his riding, they think they see the real

Prime Minister (Braid and Sharpe 1 990:79). According to Gary Doer, the Manitoba NDP leader. "In Westem Canada, people now perceive that it's Quebec's fault we've got fiee trade" (Braid and Sharpe 1990: 125). These elements of contention served to position

Reform well as not only the party of Western discontent but also as the only party to express outright contempt for politicians and the govemment, which was exactly what angry voters in the West wanted to hear.

At the 1989 assembly of the Reform Pam, Preston Manning, in preparing to go national, had both any references to "The West" as well as any attacks on the banks removed from Party literatwe and policy statements (Dobbin 1991:84). In addition, references to the "supremacy of God" were removed fiom the 1988 policy blue book by the Party Policy Cornmittee (PPC) with no mandate fiom the assembly (Dobbin

199 1 :85). In 1990, "In Alberta and British Columbia, the Reform Party was nsing 70 ominously like the spectre of the CCF [Cooperative Commonwealth Federation] or the early Social Credit Party, becoming a powerfbl new voice of Western protest on the federal scene" (Braid and Sharpe 1990:95). In fact, by June 1990, the Reform Party was the only party with any real mornentum, and Preston Manning was viewed by some as the shrewdest politician in the West (Braid and Sharpe 1990:32). Even more importantly, however. the Refonn Party was set to translate its largely Western message into a more national one by focussing on severai centrai aspects of its New Right ideology.

The Ideology of Reform

This section of the chapter will focus on three key aspects of Reform's ideology. including its position on the free-market, debt and deficit reduction, and social conservatism. which includes social authoritarianism, and crime and punishment issues.

The Reform Party is the strongest voice for, and the most representaîive of, the New

Right ideology. and chat will be iifustrated by the closeness with which the Reform

Party's ideology matches that of the theoretical construct of the New Right. Critically, the Party's ideology is both consistently New Right and not the result of populist policies put forward by the constituencies, for al1 have corne fiom the Party's policy cornmittees

(see Dobbin 199 1 :viii).

Free-market Economics

Importantly, "The Mannings' fiee-market ideology was not rooted in any expressed community sentiment or shared vision; it was inspired by an imagined threat of a lefi-wing conspiracy and supported aimost exclusively by corporate interests whose principal goal was less government interference" (Dobbin 199 1:66). It cornes as no surprise. then, that Reform also supports a radical &-market agenda harnessed to a wave of popular anger and fmanced by supporters of an unfettered fiee-market (Dobbin

199 f :75). The Reform Party attempts to create this free-market, in part, through the pnvatization of medicare, student loans, pensions, and employment insurance.

The Reform Party holds a consistently fiee-market ideology, and this ideology is illustrated by the Party's position on a nurnber of issues. First, the Reform party supports a cheap food policy which was to satisfi the "demand of consumers for ... secure supplies of food at the lowest cornpetitive prices" (Dobbin 1991 :vii). If followed, however, this policy could wipe out half the farmers in Western Canada and is, therefore, definitely not a policy devetoped at the constituency level and adopted by a populist Party. Second,

Reform will provincialize the national medicare system by allowing provinces to set their own standards and control funding for health care, which will eventually lead to a two tiered system with one system for the rich and one for the poor (Dobbin 1991 :vii). Thus,

Reform would scrap the National Health Act, Ieading Canada towards the adoption of a private systern of health care. This focus on privatization is key to linking Reform with

NR ideology.

Third, the Reform Party is comrnitted to the weakening of the powers of the federal government andTthus, its ability to affect the workings of the fiee-market. This cornmitment is consistent with Ernest Mannings ideology as outlined by political scientist

Alvin Finkel: "The Alberta government ... was not so much interested in building up the power of the provincial state ... as it was in downgrading in general the role of 72 governent in society" (Finkel 1989:148). Furthemore, this ideology was also clearly outlined in Political Realignment (1967), which Preston Manning wrote with his father and which called for " a party and govemment strictly guided by ideotogy and fünctioning with the application of science - in an economy demonstrating the 'fiee enterprise way of life"' (Dobbin 1991 :33). To the Mannings this philosophy of anti- govenunent was a key plank in social conservatism. "The supplanting of government by private enterprise in as many areas of social life as possible was the key objective of social conservatism" (Dobbin 199 1 :46). Similady, the Reform Party places the utmost emphasis on the elimination of government interference from the workings of the market, and this strategy resonates with the NR emphasis on privatization. For example, the

Reform Party critiques of the health care system are ofien written so as to criticize the underfunding of the system. yet really they are attacks on the public nature of the prograrns. That is demonstrated by Reform ,'MP Keith Martin who attacks the public system and States that people are dying and hospitals are overcrowded because of this poorly funded system (Hansard Feb. 6,1997, p.7777).

Another example of Reform's emphasis on privatization is its cal1 for the privatization of al1 student loans (MP Rob Anders in Hansard May 5, 1998, p.6583). The government would then be released fiom its responsibility to cover the costs of the student loans prograrns. Therefore, individual students, rather than the taxpayers in general. would be held accountable for paying back these student loans.

The Reform Party also links high taxes with high unemptoyment and views taxes as the worst form of govemment intervention into the fiee-market. Reform MP Jason 73

Kemey, in commenting on bill C-36, States, " We are authorking the government ui this bill this evening to use the coercive powers of the state to take away the hits of those people's labours" (Hansard May 27,1998, p.729 1). Furthemore, MP Monte Solberg cnticizes hi& taxes that lead to high unemployment (Hansard Feb.7, 1997, p.7836) while also calling for sweeping tax relief (Hansard May 13, 1998, p.6925). In addition, MP Jim

I-Iart attacks the mismanagement of the Canada Pension Plan (Hansard May 26, 1998, p.

7225) and this is another example of Reform attacking a public service in an attempt to sway the public towards supporthg a private pension system while putting an end to the public one. This position is supported by Reform MP Deborah Grey who claims that business contributions to pensions are too high and too costly, and she calls for mandatory contributions into self-directed (ie. private) retirement funds (Hansard Feb.

28.1996. p. 59).

For Reform, Employment Insurance (EL) premiums are also seen as a tax grab which removes money fiom the economy and fiom the businesses which will invest it into job creation. thereby stimuiating economic growth. The Party believes that these premiums should be cut and that excess money in the fimd reflects this need to lower premiums for both employees and ernployers (Monte Solberg in Hansard May 27, 1998, p.7273, and again, June 1, 1998, p.7390).

Reform is also virulently anti-union (Hansard May 8, 1998, p.6703-6709) and beIieves that there should be a fiee-market for labour where unionized and non-unionized workers would compte side by side for the sarne positions or contracts. That would, of course. result in a great decrease in the number of union positions in the labour force and 74 push the balance of the labour/business continuum greatiy to the right and would, thus, heavil y favor business.

The NR ideology of the fiee-market was also evident when Reform leader Preston

Manning spoke in support of Ontario Premier Mike Harris and his "cornmon-sense" revolution at the recent United Alternative convention on February 20th, 1999. Manning attacked the federal government over high taxes which he claimed forced people to leave

Canada and called for the building of a home with the " freedom of the marketplace not shackled by government regulation" (CPAC, Feb. 2M, 1999).

The Reform Party, thus, clearly holds a NR position on the fiee-market, for its leaders and key representatives believe that the economy works best when government stays out of the way. In addition, they also believe that taxes are a form of thefi and that this money would be better spent by individuals and not by govemments. Finally,

Reforrn's support for privatizing Medicare, student loans, pensions, and E.I. also clearly indicates that Reform holds a NR position in these areas.

Debt and Deficit

The Reform Party's position on the debt and deficit is a clear example of its NR ideology and the contradictions inherent in this ideological formation. The Party has campaigned extensively on the elimination of both the deficit and the national debt; however, Reform has also stated that, if elected, it wouid abolish the GST (Goods and

Se~icesTax). This statement is highly contradictory, for the GST is a major govemment revenue producer. and Reform has produced no plan to replace this revenue wlde eliminating the deficit and debt through other means. That may explain why in party 75 literature a resolution from the Party Policy Committee suggests that Reform would keep the tax. albeit in a different form which is striking given that Reform had risen from relative obscurity in large part because of its forceful stand on rernoval of the GST

(Dobbin 199 1:vii). Furthermore, Reform continues to contradict its interna1 party cornmittee by calling for the elimination of the GST (se Hansard Feb.4,1997, p. 765 1).

In addition, Manning has attacked Prime Minister Chretien relentlessly. criticizing the lack of a bahnced budget plan and for increasing the federal debt fiom $450 to $600 billion (Hansard Mar.27,1996, p. 1288-89)- Furthermore, he disrepeatecily for the elimination of the deficit (Hansard March 20,1996, p.1420, and Feb.10,1997, p.7884).

Reforrn MP Deborah Grey also calls for deficit reduction and a balanced budget that will allow for the paying down of the debt and the giving of tax relief (Hansard Feb. 28. 1996, p.59).

Reform's deficit and debt elimination strategy is based on two key policies: first. the reduction of govemment spending. and second, the lowering of taxes. MP Val

Meredith. for example, targets wasteful govenunent spending and hi& taxes as the cause of high unemployment, bankruptcies, and many personal tragedies (Hansard Feb. 4,1997, p. 7653). MP Dianne Ablonczy also cites the need for tax relief (Hansard Feb. 4, 1997, p.7654j. In addition, Reform MP Monte Solberg calls for Mike Harris style tax relief where a family of four earning $60,000 received $3,000 in tax relief fiom the Ontario provincial government (Hansard May 6,1998, p. 6601). Furthemore, Solberg attacks the federal government for its lack of action on the debt and high taxes, and claiming that

"This government has failed completely to deal with the issues that are the most 76 important to Canadians. It has failed to deal with the issue of taxes and debt. It has done nothing about the debt issue" (Hansard May 27,1998, p.7293).

In sumrnary, the Reform Party holds a NR position on the debt and deficit and focusses on their eiimination by reducing government spending and Iowering taxes. The

NR believes, first, that the private sector performs best when it is fiee to operate without constraint and. second. according to NR theonst Robert Nozick, that taxes are a fonn of the fi.

Reform MP Jason Kenney also believes that taxes are a fonn of theft and that the

Reform Party expresses the need for a fke-market in Canada. Third, the NR also believes that individuals are at the centre and are the most important unit in society.

Therefore. any govermnent appropriation of taxes is viewed as theft and does not allow for individuals to rnaximize their fieedom. This view is also in agreement with Refonn

Party principles and policies which support slashing taxes. Clearly, then, Refonn Party policy on the debt and deficit is a clear example of NR ideology.

Social ~onservatism'

The Reform Party also holds NR positions on issues of the family and on questions of morality. The party is, thus, in favour of stay-at-home mothers, holds a heterosexist view of the family, is anti-abortion, believes that the age of sexual consent should be raised, and also supports the inclusion of the Christian concept of God in the

Constitution. For example. Refonn MP Eric Lowther cIaims that the tax system

- -- - See chapter 2 "The Philosophical Roots of the New Right" for fùrther explication of this argument, or if you prefer, see Robert Nozick's Anarchy, State, and Utopia, Basic, Boston, Mass., 1974, where the argument is hlly developed. 77 discriminates against single income two parent families (Hansard May 5, 1998, p.6549).

It does this, the party clairns, because the tax system allows two parent families who have both parents employed outside the home to clah child care costs as a tax deduction while families with a stay-at-home mother have no tax claim. Refonn MP Reed Elley goes so far as to Say that the Likral government forces both parents to work, and she dso wants the governent to support families where mothers are not employed wiùi a tax break (Hansard May 14, 1998, p.7003).

Reform's heterosexist view of the family is made clear by Gerry Rh's petition that marriage can only be entered into by a single man and a single woman (Hansard June

3, 1988, p. 1445). The Reform Party is. thus, opposed to gay rights and the idea that a maniage can be defined as anything other than a union between a man and a woman. The

Reforrn Party is also anti-abortion and views abortion as a crime against God and not as a matter of persona1 choice for the woman involved.

Reformers also favour raising the age of sexual consent fiom 14 to 16. For example. Reform MP Grant McNally petitioned the house to raise the age of consent by two years (Hansard June 3, 1998, p. 1445). Reformers hold NR views on sex and not only view marriage as the only appropriate venue for sex, but, also consider 14 to be too young for people to make the decision to have sexual intercourse.

The Reform Party is also ctiaracterized by the NR ideology imbedded in its policies and ideology related to issues of crime and punishment. For Reform, the current justice system is considered far too lax, and criminals are believed to be getting off too lightly with shortened sentences and day parole programs. Furthemore, prison 78 conditions are considered "too good" or too easy and not nearly punitive enough-

Reformers also believe that the Young Offenders Act (YOA) is far too lenient and needs to be toughened up. Finally, for Reformers capital punishment is considered a viable means to deal with criminais who commit serious offences.

The Refonn Party has been vocal in its cal1 for a victim's bill of rights. For example, MP Deborah Grey points out that the rights of victims shodd supersede the rights of criminals (Hansard Feb.28,1996, p.59). MP Paul Forseth also shows support for a victim's bill of rights (Hansard May 5, 1998, p.6553).

Refonn MP Ed Harper calls for the strengthening of the YOA, the publishing of the names of offenders, decreasing the age of application, and the transferring of serious young offenders to adult court. He also favours the use of two sîrikes and you're out legislation for adult repeat violent offenders whereby they would serve life in prison with no chance of parole after having been convicted of the same offence twice (Hansard

Feb.6. 1997. p.7747). MP Reed Elley dso supports the publishing of the names of young violent offenders and increasing the maximum penalty for young offenders fiom 3 to 7 years (Hansard May 13, 1998, p.6929). Reform MPs John Williams and David Chatters also presented a petition on the YOA to double maximum penalties and publish the names of offenders following a second offence. They dso support lowering the age limit which defines a young person, so that the YOA will cover those between the ages of 10-

17. For violent crimes the MPs klieve that those 15 and over shouJd be raised to adult court (Hansard May 26,1998, p.7 188, also see comments by Phillip Mayfieid MP in

Hansard May 26,1998, p. 7236). 79

In addition, Reform iMP Jack Ramsay questioned the Liberais on the issue of the number of serious offences committed by youth (Hansard May 26,1998, p.7230) while

MP's Chuck Cadman. Allan Kerpan, and Myron Thompson dl raised questions in the house regarding why the Liberals are so sofi on crimes committed by young offenders

(Hansard May 26,1998, p.723 1). MP Jack Ramsay also criticizes the justice system and daims that 50% of the money spent on crime prevention is spent on administration

(Hansard June 3, 1998, p. 1445).

Reforrn's position on issues of crime and punishment is, thus, heavily NR, for the

Party supports an ideological stand which views harsher punishment, incfuding capital punishrnent, as a means to discourage crime and reform the justice system. Furthemore, the Party's focus on increasing the punishment and incarceration of children via toughening the YOA also is indicative of a strongly NR approach to criminal justice matters.

Table 5.1: Support for NR Ideology by The Reform Party

FREE MARKET DEBT & DEFICIT SOCIAL CONSERV.

High High High

Conclusion

This chapter has examined Preston Manning's early conservative and evangelical

Christian background which has heavily ùifluenced his ideological positions. In addition, his close connections to business, as well as the political culture of Alberta and the dominant Social Credit Party have been explored in order to understand their influence 80 on Preston Manning's thought. The history of the Reform Party and its electoral success

in the West has been examined and, fmally. the NR ideology of the Party has been discussed. As illustrated in table 5.1 above, the Refonn Party gives high support to NR

positions on the free-market. debt and deficit issues, and social conservatism. Thus

Reform clearly represents a break with the social democratic ideology which had dominated the major Canadian political parties in the mid-1970s. The thesis wili now consider the shifts in political ideology of the major Canadian political parties in the

1990s as evidenced within the debates in the Hansard from the Houe of Cornons. Chapter 6 New Right Ideology in Canadian Political Parties

in the 1990's

The nse of the NR has been significant, and this success is illustrated partly by the legitimacy and electoral success of the Reform Party, but also, and perhaps even more importantly, by the NR's ability to powerfidly influence and have its ideology adopted into the party policy of the Conservatives, the Liberals, and even the NDP. The success of the NR is based upon the new reaiities of globalization which have dramaticaily increased the fieedom of capital to invest and to move production to low-wage low-cost sites. With thk new heightened level of global competition cornes a need for each nation to rnaximize its own comparative advantages in order to sustain economic growth and provide protitability levels which will attract both corForate and finance capital investment. The recipe for this growth is fiequently a substantial lowering of wages and benefits, the cutting of taxes and, dong with these the decrease of public services and amenities. Fundamentaily, NR proponents have ken able to make sense of these global changes which affect the economy, culture, and the very foundations of the Canadian welfare state. and explain them in a way which has resonated with the "common-sense" and experiences of Canadians. Furthennore, the NR has affected the Canadian plitical scene in a unique way based on Canada's distinctive political, economic, and cultural conditions. This includes regional politics, and a hi& degree of foreign ownership of the economy. set against a background of both a fiscal crisis and a crisis in national identity.

These factors have set the stage for the rise of the Reform Party and the dramatic shifi to the right in the policies and ideology of the other major parties. This chapter will look at 82 these shifts and discuss ihem in the context of the three key NR themes analyzed in the previous two chapters.

New Right Ideology in the Consewative Party

The Conservative party was relegated to the unenviable position of loshg its officiai party status afier having only two MPs elected to parliament in 1993. This defeat

\vas in part a testament to the hatred which Canadians felt for Prime Minister Brian

Mulroney, but was also based on the failure of the consensus with the Quebec wing of the

Conservative Party and the rise of the Bloc which drew other elements of support away from the Tories. Additionally, it was also a result of the eclipsing of the Conservatives' ideology by that of the Reform Party which came to represent NR ideology and the new cultural force which began to dominate particularly in Western Canada. Despite the

Conservative party's current lack of political power and representation in the House of

Comrnons, it is still illustrative of the larger transition to the Right to analyze its ideological shifi and its positions on key NR concepts.

Free-market Economics

The Conservatives in the 1990s have expressed positions which increasingly show the influence of NR ideology. For exarnple, Elsie Wayne MP criticized the new

EmpIoyment Insurance (EI) regulations which she felt penalize people who want to w-ork

(Hansard Feb. 4, 1997, p.7653). Conservative leader Jean Charest also felt that low income families are overtaxed and, therefore, EI contributions should be reduced for these families (Hansard Feb. 4, 1997, p.7663). PC MP Scott Bnson clearly stated the 83

Party's free-market position on unernployment insurance when he said, "Hi& payroll taxes kill jobs" (Hansard May 27, 1998, p.7279). These attempts to lower employee's and employer's EI contributions follow corn the NR's belief that government intervention in the economy is ineficient and does not allow for the same fieedom of choice that the fiee-market would. Thus, for the NR, EI contributions shouid be voluntarily made to either a public or private plan. dependïng on individual choice. Such a plan would also cause EI to "adhere strictly to the principle of insurance" (Progressive Conservative Party of Canada 1996:17) which means that EI would be a private matter where employed workers would be responsible for their own coverage and premiums and where income replacement rather than income supplement would be the focus.

In addition, this position also expresses the NR belief that only the pnvate sector can create jobs and must be able to do so without the burden of high taxes which discourage investment, and therefore, increase unemployment. PC MP Jean Dube sums up this position when he States, "EI premiums are a tax on jobs" (Hansard June 1, 1998, p.7393). The PCs believe that "Excessive taxation is killing jobs", and that "The level of taxation in Canada threatens to make this country uncornpetitive with our key trading partners". As a result, the paw calls for a 10-20 % reduction in personal tax rates

(Progressive Consewative Party of Canada 1996:7-8). The demand for a tax cut also stems fiom the Torie's fiee-market views which support the concept of "minimalism", or

"the right of the taxpayer to enjoy the fniits of hisher own labour to the greatest possible extent" (Progressive Conservative Party of Canada 1996:9).

The Tories' fiee-market views include fieeing "the spirit of entrepreneurship" 84 which is hobbled by high personal, business, and payroll taxes, excessive regulation and red tape. The role of the federal governrnent shodd, thus, be redefined and delimited. for

"afier decades of looking to government as a solution to al1 their problems, Canadians now see government as the problem" (Progressive Conservative Party of Canada 1996:2).

According to the Tories, govemment should live within its means in the context of a free- market society which creates a "culture of opportunity". Furthermore, for the Tories jobs are created by a vital and vigorous pnvate sector, not by govements, and therefore, job creation should be left to the private sector with the role of government king to set the conditions where by the private sector can thrive. For example, marketing boards which are viewed as reducing cornpetitiveness, would be removed (Progressive Conservative

Party of Canada l996:4). Finally, this new limited form of governrnent would eliminate al1 overlap and duplication (Progressive Conservative Party of Canada 1996:2) and end subsidies to business and special interest groups (Ibid5). As a result, only essential government hctions and services would be maintained, and efficiency and effectiveness according to the yardstick of cost-benefit analysis would become the new measure of good governrnent. (See chapter 3 for the role played by NR influenced free trade ideology in the Tory strategy of creating an efficient. limited government,)

Debt and Deficit

The Tory position on debt and deficit also contains elements of NR ideoIogy. For the Conservatives, al1 deficit spending is unacceptable, and a responsible goveniment must balance its budget. Furthermore, it is believed that high spending has resulted in a massive debt which requires a high tax burden in order to bnng in enough govemrnent 85 revenue to cover the yearly interest payments on the debt. "Interest payments on this debt will cost the federal govemment $47.8 billion in the current year. ...The national debt is nothing more than a costly mortgage we are leaving to our children's generation"

(Progressive Conservative party of Canada 1996:6). Also, according to PC MP Charlie

Power, there has been a 50 percent increase in the number of Canadians applying for work visas to the US. over the 1st 4 years, and that is due to the fact that "Our government, continues to follow high tax policies which drive our best and brightest south of the border" (Hansard May 12, 1998, p. 6858-59). Therefore, the Tones believe that cutting spending would allow for the reduction of tax rates and that these new lower rates would benefit the economy by increasing investment. Furthemore, the Tories have laid the blame for massive deficit spending on increased costs of health, education, and other social programs and, as a result, have targeted key programs of the Canadian welfare state for reduction or elimination. ïhe cutting of these programs and services clearly reflects a NR influenced policy, for it targets propms for cutting which primarily benefit the poor. and also because the winners in the new lower tax regime are primarily wealthy Canadians with money to invest. This policy is in agreement with NR philosophy which is supportive of inequalities, for they are believed to be both inevitable and beneficial because they make people work harder to avoid ending up at the bottorn of the economic scale. Additionally, the policy supports the NR belief in "trickle down economics," which holds that people who accumulate wealth will invest in the econorny and create jobs, thus allowing the money to trickle down to enrich al1 of society.

The Conservatives believe that tough choices need to be made about the size and 86 cost of government to ensure that the next generation has as much fieedom as the previous one. According to the Tories, this fieedom can be achieved only through the elimination of the deficit and by beginning to pay down the debt. The government must

"get its fiscd house in order," and the Tories promise to eliminate the deficit in the fmt term and balance the budget through the creation of balanced budget and taxpayer protection legislation (Progressive Conservative Party of Canada 1996:6). In addition,

"Once the federal deficit is eliminated through spending cuts, not tax increases, specific targets for reduction of the federai debt must be set with measurable milestones"

(Progressive Conservative Party of Canada 1996: 7). The Tories, then, are following a NR approach to the debt and deficit which lays the blame for the nation's debt problems on excessive government spending on welfare state programs and services, and focuses on first, the balancing of the federal budget and the elimination of the deficit, second, mandating balanced budget and taxpayer protection legislation, third, paying down the debt. fourth. decreasing taxes, and fifth, Iimiting the size, cost, and role of government and decreasing spending primarily in the areas of health, education, and social programs.

Social Consei-vatism

Although the Conservative Party holds NR positions on a number of social and moral issues. its policy material, as well as the Hansard research that 1 covered, is characterized by the absence of discourse on issues of abortion, gay rights, or gender.

This silence may represent a recognition by the Tories that entering into these areas of politicai discussion may prove counterproductive because of their highly controversial nature. It may ais0 indicate, however, that the Tories are not supportive of changes to 87 esisting legislation and are content with the status quo and, in this sense, are less to the

Right than the Reform Party which calls for rightwing refonns in these areas.

The Tory position on issues of crime and punislunent has also been influenced by the NR. ln fact, the Tory platfonn is so similar in some ways to that of the Reform

Party that Tory members of parliament are sometimes left with nothing to say and can only agree whole heartedly with Reform party members. For example, PC MP Peter

MacKay supports the position of Reform PviP Philip Mayfield who asks "That this house condemn the government for the deplorable state of Canada's crirninal justice system, and the goveniment's lack of concern for public safety, as demonstrated by their refusal to: (a) strengthen the Young Offenders Act; (b) abolish conditional sentencing for violent offenders and (c) introduce a victim's bill of rights" (Hansard May 26, 1998, p.7236-38).

In the principles and policies document. "Designing a Blueprint for Canadians", it is stated that "A Progressive Conservative Government will toughen the law with respect to young offenders and violent crimes" (Progressive Conservative Party of Canada

199623). This toughening of the law in regard to young offenders would include

"lowering the age at which young offenders may be prosecuted from 12 to 10 years of age: publishing the particulars of young offenders convicted of serious violent crimes; and enacting similar provisions to the Manitoba Parental Responsibility Act, whereby parents of young offenders rnay be held financially liable for the criminal acts of their child" (Ibid:24). The Party would dso work towards "creating a better balance between the rights of victims and society, and the rights of the accused and convicted"

(Ibid). 88

Thus. Conservative positions on issues of crime and punishment reflect an increasing NR

focus which ernphasizes harsher punishment as a deterrent to crime and the prioritizing of the rights of the victim over those of the accused. In addition, these Tory positions ah place the responsibility for crimes committed by children directly onto the shouiders of their parents, and that reflects NR influence. for it moves the burden of care away fmm the state and into the private realrn of the family.

New Füght Ideology in the Liberal Party

The Liberals rose to power in 1993 with a shinning election victory. However, the party was no longer one which embraced the same welfare state policies of the 1970s.

This new party had become NR-influenced and emphasized an increased faith in the fiee- market and tiee trade. reductions both in the size and cost of government, and a cornmitment to the elirnination of the deficit and debt. The Liberals have also ken forced to respond to NR positions on crime and punishment issues which have gained support in public discourse and, as a result, have placed an increasing emphasis on them.

Of the various NR issues that we have been discussing, though, the Liberals' move to the

Right was most dramatic on economic policy.

Free-market Economics

The Liberals' position on the fiee-market has also been influenced by the NR and emphasizes expanding Canada's trade base, increasing foreign investment and tourism

(Throne speech. June 2,1997, I st. session, 36th parliament), downsizing the federal government, and expanding on existing free trade deals. (For a thorough discussion of the 89

Liberals shift to the nght as evidenced by the adoption of fke trade policies see chapter

3 .) Prime Minister Chretien States that "Canada is far more dependent on exports than any other major industrial nation" (The Prime Minister's Forum October, 1996). In fact, the emphasis on fiee trade has become so important that the Liberals have become supporters of a new investmeat agreement called the MAI ( Multilateral Agreement on

Investment ) which includes the 29 member nations of the Organization for Economic

Cooperation and Development and would create a regdatory regime for finance capital and global trade. The MAI wodd give equal treatment to investors fiom any nation.

Thus, Canadian capital codd not benefit fiom any particular incentives or initiatives, as this would be deerned discnminatory. For Canadians, tiis new agreement would Mer restrict the ability of the Canadian government to act in the best interests of the people in terms of preserving or creating jobs in Canada or in dealing with the dislocation and hardship brought on by economic changes.

The Liberals have, therefore, moved to a more heavily NR dorninated position on fiee-market economics. and this shifi is demonstrated by their having forged ahead with the MAI, which represents an attempt to create an even more expansive fiee-market in which the Liberals believe Canada can continue to develop its strength in exporting, but which has the effect of Iimiting democratic control of the economy and of creating a fiee- market where labour, environmental, and social welfare standards are being roiled back

(see Clarke and Barlow l997:38,lO5- 106). 90

Debt and Deficit

The Liberal's position focuses largely on eliminating the debt and deficit which are viewed as key threats to Canadian competitiveness in the international arena and as a rnortgage to be paid by the next generation. For the Liberais, the key to both attracting and keeping global investment and the jobs which are created in Canada is to provide a stable economic environment uith low interest rates. This environment can be achieved by increasing investor confidence in the Canadian economy through taking steps to eliminate the national deficit and debt (The Prime Ministef s Forum October, 1996).

Jean Chretien outlined this position as a key part of his Throne Speech on June 2,

1997 when he promised to first, put the debt to GDP ratio on a permanent decline; second, to balance the federal budget by no later than 1998-99, third, to devote one half of the surplus to addressing the social and economic needs of Canadians and one half to decreasing taxes and the national debt, and finally, to make changes to the CPP and the new Seniors Benefit to ensure their sustainability (Throne speech, 1st session, 36th parliament). The Liberals were later to rescind their promise to put half the surplus towards the economic and social needs of Canadians, and, therefore, the Liberals were clearly committed to NR-influenced policies which placed deficit and debt elimination as key priori ties.

This NR-influenced approach to the deficit and debt is pointedly iilustrated in statements by Liberai MPs in the House of Commons. For example, Karen Kraft Sloan is certain that the people of Canada also want to elirninate the debt and deficit, stating that

"the people of Canada want fairness and balance in goveniment. Canadians know that 91 we must get our fiscal house in order but they also are committed to reducing the socid and ecological deficit in this country" (Hansard Feb.5,1997, p. 7708). John Findlay also called for the elimination of the deficit as soon as is reasonably possible (Hansard

Feb.7,1997, p.7829) and Jim Peterson states that "we have balanced our budget, the first in the G-7, when we are now paying down our debt without ripping the guts out of our social programs" (Hansard May 1 5,1998, p. 7064). In fact, the Liberals have decimated transfer payments to the provinces which have resulted in major reductions in funding for education, health care, and social services. For example, Employrnent Insurance benefits have been skished and the majority of unemployed persons are no longer eligible for benefits. When questioned on the need to improve Employment Insurance, Pierre S.

Pettigrew notes that "This is why our government bas put our fiscai house in order"

(Hansard May 26. 1998, p. 7235). The Minister, thus. restates the Liberals' commitrnent to decreasing the debt and deficit, and this cornmitment illustrates the Liberals placement of the debt and deficit as the highest priority of their government, an emphasis illustrating their increasingly NR-influenced policy.

The Liberais, however, have been carefiil to avoid moving as far to the right as the Reform Party in their deficit slashing and cutbacks. As PM Jean Chretien points out,

"We have managed to do that in a civilized way, in the Liberal way. It will not be by slashing and burning or by not caring whether people are suffering in our society like the

Refonn Party would do" (Hansard March 2 1, 1996, p. 1430). While the Liberals, then, want to avoid adopting the extreme ideological positions of the Reform Party, the NR- influenced Liberals are also deeply opposed to the idea of any increased spending as 92

evidenced in Lynn Meyers response to the NDP's cail for $1 8 billion in expenditures.

She calls this plan "nonsense", and "irresponsible", and an "outrageous statement"

(Hansard June 1, 1998, p. 741 8). The new Liberals are, thus, following a NR-influenced

course of deficit elirnination and debt reduction without taking the drastic steps that the

Reform Party would choose to implement. ïhis approach has ailowed the Liberals to

become the champions of what is perceived by the voting public as a more sensible path

to eliminating the deficit and debt.

Social Conservatism

The Liberals' stance on social issues has also been affected by the rise of the NR

and the penetration of NR ideology. Several Liberal MPs, for example, express NR

positions on the family and traditional beliefs about sexuality. Liberal MP Paul Szabo

calls for assistance to be given to families who care for preschool children at home

(Hansard Feb.4. 1997, p.76 16). This assistance would take the form of decreased taxes

for farnilies where one parent chose to stay home and care for the children (Hansard May

5. 1998. p.6509). For Szab, the Income Tax Act discriminates against farnilies that choose to provide direct parental care in the home for preschool children (Hansard May

15. 1998. p.7068). Behind this support for one parent to stay at home is the NR belief

that a woman should be at home to look afier the children and that for her to work is a

sign of irresponsibility. And while Szabo does not suggest this rationale, the reality of

most farnilies in Canada is that the male is the head of the household and the main

breadwimer and by providing this support for women who choose to stay at home and

perform childcare duties, these NR discourses which view a womads role as that of 93

homemaker would Iargely be reinscribed and legitimized.

Another NR discourse which some Liberai MP's emphasize is that of traditional

heterosexuaiity, and this is done by defining a marriage in such a way as to exclude

homosexuals. MP John O'Reilly, for example, refers to marriage as king between a

single man and a single woman (Hansard June 3, 1998, p. 1520). Thus, this Liberal MP

has reinstitutionalized a traditionai view of sexuality through his discourse of mamage.

The Liberals have also been influenced by the NR on issues of crime and

punishment, and this influence is apparent in the increased emphasis placed upon it. In

his Throne Speech Prime Minister Chretien emphasized increased funding for

cornrnunity-based crime prevention, the development of alternatives to incarceration for

low risk, non-violent offenders, and further, he called for the integration of al1

information systems of al1 partners in the criminal justice system (Hansard, 1st session,

36th pari., June 2. 1997). In addition, Justice rninister Anne McLellan is attempting to

develop a nationai strategy to ded with young offenders under 12 who are just beyond

the reach of the law (Vancouver Sun, Sept.28, 1999, AS). The emphasis placed on this

issue by the Liberals is, in part, clearly an attempt to try to benefit politically fiom the exposure in public discourse of this issue created by the Refonn Party.

The Liberals have, however, been carefül to maintain a distance bom Reform

Party positions on crime and punishment issues, and McLellan is quick to point out that

" We do not think the criminal justice process is the appropriate one for a child under 12"

(Vancouver Sun. Sept.28,1999, AS). MP Steve Mahoney also makes this clear when he

States, " Mr. Speaker, the Reform Party has called for extreme right wing changes to 94

Canada's criminal justice system. It favours a hvo stnkes and you're out law that would jail young Canadians for life if they commit two relatively minor offences. Some of

Reform's extreme ideas include public scom, caning and other forms of corporal punishment. Reform members even wanted to send a parliamentary delegation to

Singapore to witness the caning of young offenders in that counW... to the Reforrn agenda I Say no" (Hansard May 26, 1998, p. 7224). Thus, while the Liberals have partici pated in the dialogue over Canada's criminal justice system and have made some changes to toughen the system, they have not adopted or accepted the radical NR belief that increasing punishment in itself will serve as an effective deterrent to crime.

The NDP - Old Politics in a New Era

The New Democratic Party (NDP),founded in 196 1 out of the ashes of the

Cooperative Commonwealth Federation (CCF). has also experienced a shift in its policy and ideology but, unlike the Liberals and the Conservatives, has floundered in its search for a platforrn that resonates with the new economy and its cultural shifls. The socialism of the past represented defiantly by the Waffie Manifesto of 1969 had been dismissed by the social democratic forces within the party and, thus, the emphasis was on putting a human face on the outcome of the capitalist economy. The early NDP mainstream was, thus social dernocraticznationdistic, focussed on industrial specialization to achieve global success. supportive of farmer protection and CO-opsand of state support for health care. social security, and arts and culture (from The Federal Program of the NDP

Founding convention, Ottawa July 3 1-Aug-4, 196 1).

The NDP saw the market as good for the distribution of some products and 95

services but as woefidly inadequate for other economic and social ends. Furthemore,

foreign ownership and regional disparities were targeted through the proposed establishment of a federal government development corporation. Secondary industy and a diversified economy were to be encouraged through investment in scientific and technicd research and. where necessary. a combination of public, private and co- operative ventures were proposed (NDP policies 196 1 - 1976).

In 1974 the NDP's policy statements supported a program of state intervention in the economy where it was deemed that private corporations in any sector were either beyond democratic control, unaffected by regulatory agencies, or not under the control of the marketplace. State enterprises couId fimction in sectors where no private companies operated. where environmental injury had occuned, where new industry was requïred, or where market failure could have senous consequences (NDP policies 196 1- 1976).

However. in 1975 despite the presence of many nationalist economic proposais, there was clearly some recognition that the use of fiscal levers to boost the economy were becorning increasingly problematic (NDP policies 196 1-1 976).

In the late 1970s The NDP remained cornrnitted to income redistribution and tax reform aimed at increasing the tax rate on high income eamers and reintroducing estate and gifi taxes. Subjecting capital gains and dividends to the same tax treatment as other income was also official policy. The close monitoring of corporate tax evasion and the possible legisiation of excess profit provisions for multinational corporations, as well as limits to corporate advertising, were also part of the policy agenda. The building of secondary industry under public ownership and democratic public direction, ending 96 monetarist anti-inflation policies, and the implementing of a national industrial strategy in order to achieve full emgloyrnent were centrai to NDP policy (1977 NDP Convention

Resolutions).

In regard to banking, the NDP advocated state regulation of bank profit margins, and loaning money outside of the country would only be pennitted if it was in the interests of Canada. In an attempt to regain control of our oil ùIdustry fiom the grip of foreign transnational capital the development of public transport and the creation of

Petro-Canada (NDP 1977 Convention resolutions) were merexamples of the NDP's vision of the interventionist role for the Canadian state.

By 1979, aithough much of the socialist rhetoric was gone, party policy was still strongly interventionist and economic nationalist with an emphasis on full ernployment and Keynesian econornic management (NDP policies 196 1- 1976). However, the drarnatic changes in the global economy and the rise of the NR would soon force the

NDP to move rightward in its search to find an ideology that would resonate with the new economy.

Throughout the 1980s it appeared that the NDP was set to break through ont0 the national poli tical scene, winning many seats in parliament and gaining power in Ontario and B.C. As the strongest and most persistent critics of NR policies, including fiee trade,

95 the NDP's support reached a highpoint in the late 1980s. By the early 1WOs, however, the ideology of the NR was to become dominant, and the NDP was not able to publicly maintain its strong ideological opposition to the NR. The Refonn Party, on the other 97 hand. was poised to capture the "common-sense" and begin its climb towards stunning electoral success in the 1993 Federal election, winning 52 out of 282 seats in the House of Comrnons.

New Füght Ideology in the NDP

While the NDP has perhaps been the least affected by the rise of the NR, there has still been a shifi in the Party's ideology. The NDP's shift can be viewed primarily in the areas of fiee-market economics and of debt and deficit where the party has made some concessions to the hTR. Thus, the NDP no longer supports strong state intervention into the economy nor the nationalization of industries. In addition, the importance of controlling the deficit and government spending has been recognized. Furthemore, the

NDP now supports, albeit to a lesser degree, the new fiee trade agreements while also taking issue with the lack of protection for labour and the environment, as well as the anti-democratic nature of these supranational arrangements. It is instructive, though, to also analyze the NDP's position on social issues and in the area of cnme and punishment to showcase the critical differences between a party which still contains social democratic elements and the Conservative and Reform Parties which express ideological positions more representative of NR ideology.

Free-market Economics

The NDP has been influenced by NR ideology in that it has moved away fiom its traditional support for a mixed economy with large scale government intervention to\vards one which supports a more market-based entrepreneuridkm with less emphasis 98 on govemment intervention. In addition, the NDP no longer supports the nationaiization of industries nor believes that the Canadian economy can fimction in isolation fiom the global economic order and, thus, has given limited support to the fkee trade agreements while recognizing the need to address the needs of labour, the environment, and social welfare standards within these accords.

Thus, the NDP remains critical as MP Bill BIaikie points out, of fiee-market ideology, as demonstrated by its continued opposition to and attacks on the Liberals over free trade, NMTA. Canada's participation in the WTO, and the Liberals' sel1 out of

Canadian culture (Hansard Feb.3, 1997, p.7569). In fact, for Blaikie, the domination of

Canadian trade policy by American business interests has resuited in the decimation of the CBC, the sale of the RCMP's image to Disneyland, and the creation of a Disney postage stamp (Hansard Feb.3, 1997, p.7569). The NDP, thus, rejects the new MAI, or

Multilateral Agreement on Investrnent, which is currently king negotiated behind closed doors by the 29 member nations of the Organization for Econornic Cooperation and

Development. This deal attempts to complete the creation of a global fiee trade agreement and would virtuaily eliminate govemment intervention in the market and would allow transnational corporations to move their operations anywhere in the world without restriction (The Abbotsford News, April30, 1998, A2)(see MP Nelson Riis in

Hansard May 27. 1998, p.7284-85). The MAI has kencalled a Bill of Rights for transnational corporations, for it bestows upon them the status of nation state and wouid grant them the right to sue any nation which acts to limit those corporations' profits.

Furthemore, disputes are to be settled by trade lawyers in secret and nations have no 99 avenue to appeai the decisions (Murray Dobbin in Teacher, Mayhne, 1998,p.S). The

MAI represents a vast regdatory regime over ficecapital, investment, and trade which promises to vimially eliminate the legislative authority of national and regional governments over these matters and places their management and control in the hands of transnational corporations, private banks. elite investment houses, and -de bureaucracies. Thus, the MAI handicaps goveinments and diminishes the democratic decision-making power of the electorate. MlP MP Svend Robinson notes that "it contains no provisions for the protection of labour and environmental standards, human rights, or democracy" (Columbia Journal, Vol.3,No. 1, March/April. 1998). The NDP

MP's, thus, ask the Liberals to "seek an entirely new agreement by which the world might achieve a rules-based. global trading regime that protects workers, the environment, and the ability of governments to act in the public interest" (MP's Bill Blaikie, Svend

Robinson. John SoIoman in Hansard May 5, 1998, p.6510).(Also see MF's Nelson Riis and Biil Biaikie in Hansard June 3. 1998, p.1520.)

Another area where the Liberal governent is trying to create a fiee-market is that of student loans which are now being tmed over to the private banks. The NDP is opposed to this move, and MP Libby Davies asked the govemment to "review privatization of student loans and ensure that education is a public trust rather than a revenue generator for the big banks" (Hansard May 5, 1998, p.6552). NDP MP Nelson

Riis also requested that the govemment eliminate tuition fees and stated that 16 out of 29

OECD countries have no tuition fees at al1 (Hansard May 13, 1998, p.6937-38). The

NDP's opposition to banks taking over control of student ioans dso extends to a fear of 1O0 bank mergers and the growing power of vast financiai enterprises (see Aiexa McDonough in Hansard May 6, 1998, p.6598).

In addition, the NDP aiso opposes attempts to create a fiee market for labour by using state power to weaken unions. Several NDP MPs spoke out on Reform's attempts to push for changes to the Labour Code which would make it more difficult to fonn a union. MP Pat Martin calis the Reforrn motions "sinister" and responded to Reform's

"right to work poiicy and philosophy" by saying,"I do not think it is any coincidence that the Fraser Institute has just released 'Right to Work', the answer for the new millenium for labour relations, which is king flogged around the Ml. In fact, copies were delivered to my office." And he continues, "When the Reform Party finaily gives up trying to bash unions and trying to be shills for the right to work movernent and the Fraser Institute, maybe we can move forward as a country in a tmly tripartite fashion" (Hansard May 8,

1998. p.6734-35). The NDP is, thus, clearly opposed to the attempts to create a fiee- market for labour by rolling back key labour provisions.

Other fiee-market criticisms corning fiom the NDP focus on recent excessive increases in corporate profits (see Hansard June 2, 1998, p.75 18), the need for a more equitable distribution of income. unfair taxation, including the need for corporations to pay billions of dollars in deferred taxes, increasing poverty and unemployment. and finally, the need to restore slashed social programs (see Libby Davies in Hansard June 2,

1998, p.75 19-20). For the NDP the solution to these problems involves the government playing an intexventionkt role; however, this role does not inçlude the massive spending, nationalization of industries, nor does it advocate the state directed industriai strategy of 101 the 1970s. Instead, the federal NDP advocates the redesign and renegotiation of major fiee trade agreements with inclusions to protect labour, environmental and social program standards. and it is in this recognition of the need to take part in these fkee trade accords that one can see the shift in NDP ideology.

Debt and Deficit

The NDP position on the debt and deficit has also been affected by the NR. The

NDP has traditionally supported using the government spending powers to alleviate the hardships created by the capitaiist economy. Furthemore, the reduction of human rnisery and suffering has also been key to the policy of the MIP. In this era of the NR, however, even the NDP has to a degree given in to the new "cornmon-sense" of the Right.

Evidence of this change in NDP ideology will be explored after first outlining the party's current approach to the deficit and debt.

For the NDP. the current emphasis on draconian cutbacks to welfare state programs and services. such as health care, Unemployment Insurance, and education, are not acceptable. Ml? Svend Robinson calls for the government to "put an end to the destructive cuts in federal fùnding for health care to the provinces, restore that funding and tackle the runaway cost of prescription drugs" (Hansard Feb.4,1997, p.7662). MP

Libby Davies echoes Robinson's cd1 and ask's. WiU the govemment replenish transfers to the provinces and ease the suffering of the poorest of Canada's citizens?" According to

Ms. Davies. since 1996, poverty has increased by 17%, child poverty by an afarming

25%, and federai support for health, welfate, and education has been slashed by $3 billion (Hansard May 1 1,1998, p.6780). With 1.2 million more Canadians living in IO2 poverty since 1990. what is needed, according to Ms. Davies, is a job creation program to alleviate this rise in social costs associated with unemployment (Hansard May 13, 1998, p.6926). NDP MP Louise Hardy seconds this cal1 for a job creation program, because unemployment in the Yukon is at 17% (Hansard June 5, 1998, p. 1200).

Changes to the Employment Insurance Act G.I.),leaving many Canadian workers wî thout access to Employment Insurance benefits, have been another area where the NDP is at odds with the Liberai govemment's strategy and policy. NDP MP Yvon Godin asked the govemment to improve E.I. to help those hurt by the recent Liberal changes to the E.I. Act (Hansard May 26, 1998, p.7234). Furthemore, Godin cnticizes the Liberals over these changes which have lefi only 40% of unemployed workers eligible to collect

E. 1. (Hansard June 1, 1998, p.7388) and he cals on the government to widen access to

E.I. benefits (Hansard f une 4, 1998, p. 1410). Finally, the Liberal changes to the E.1- fund which have Iimited access to benefits are the source of a serious attack fiom the NDP, as

Godin demogstrates when he asks the minister, "Does he agree with me that this $1 7 billion surplus, is in fact, money stolen fiom the workers?" (Hansard May 27, 1998, p.7280) And again he questions the government, "To whom belongs the surplus in the

E.I. fùnd?" (Hansard May 28, 1998, p.7359) For the NDP, then, the govemment has a cornmitment to ensure that people are not suffe~gand should intervene by spending where the market is not functioning to ensure that there is equity in terrns of access to employment, health care, education, welfare, and other weifare state services like

Employment Insurance. However, unlike the NDP in the 1970s, the party would not support large investments in public works projects nor nationalization of industries in order to achieve key econornic and social goais.

Social Conservatism

The NDP has been characterized as king very liberai on social issues and tends to support gay rights, feminist struggles, euthanasia, and pro-choice positions. Bev

Desjarlais, for exarnple, supports pay equity and calls for a fair and just settlement in the recent Bell Canada case regarding femaie employees who clairned that they were underpaid in cornparison with male employees for equal work (Hansard June 5, 1998, p. 1 155).

The NDP1s position on crime and punishment issues is that it supports the proactive work of social institutions to prevent crime and views a healthy economy, dong with a wide distribution of economic and social benefits, as key factors in reducing crime.

Furthermore. the NDP views the rehabilitation and reintegration of criminds into the community as an important responsibility of a humane and just society. However, aithough the party is far fiom NR positions on crime and punishment issues. it is of interest that in B.C. Premier Clark had announced a new crime plan at the same time as the Reform Party held a "victims' rights" rally (Vancouver Sun, March 1,1996). This political pandering to the Right may signal the beginning of a deeper nghtward shift on these issues.

NR Ideology in British Columbia, Ontario, and Alberta

On the provincial level, the British Columbia (B.C.) Liberal party in the lead up to the 996 election, advocated many NR policies including: massive cuts to governent 104 prograrns and services, balanced budget legislation, elimination of the corporate capital ta... removing the schooi levy from property taxes, allowing the use of "repjacement workers" during labour disputes. repealing the fair wage policy, privawg crown corporations, and reducing income taxes (Vancouver Sun, Nov.4,199S,C8). Labour activists in B.C. compared B.C. Liberal leader Campbell's policies to the cut and slash policies of Ontario Conservative Premier Mike Harris who proposed to cut $8 billion fiom the provincial budget.

The B.C. Liberals have become so right-wing that 6 members of the party quit in

April, 1996. One member, Chris Childs, stated that the party had "sold its soul," whereas four other executive members of the Burnaby-Edmonds riding association said, "The policies being put forward and the candidates king nominated ... are moving the B.C.

Liberal party too far to the right of the political spectrum," and that "British Columbians must reaiize that the right-~lngagenda put forward and endorsed by Gordon Campbell's so-calied Liberal supporters will cause havoc for the province of British Columbia"

(Vancouver Sun, April30, 1996, B3). This strong swing to the right has ken clearly marked by not only the members of the Liberal party but is also clearly evident in the content of the Party's advertisements in the Vancouver Sun which emphasize smaller governrnent. lower taxes, and fighting the debt through slashing government spending.

The Provincial Conservatives in Alberta and Ontario have also moved distinctly to the right with the election of Ralph Klein and Mike Harris respectively. Klein's NR program has focussed on the slashing of budgets and the chopping of programs with health cuts alone topping $600 million (Vancouver Sun, Jan.30, 1996). The Alberta 105 government has also held to NR positions on gay rights and has refused to extend human rights legisiation to gays despite calls from the provinces own Minister Responsible for

Human Rights to end this discrimination which he compared to discrimination against blacks in the U.S. Alberta is one of only two provinces in Canada not specifically to protect gays (Vancouver Sun, Mach 22. 1996).

In Ontario. the NDP had attempted to hold power by adopting policies which the

NR has promoted and popularized as a way of grabbing hold of the new orthodoxy while simultaneously needing to avoid losing the parties traditional supporters. Bob Rae's

NDP, inheriting a province still reeling from the effects of fiee trade, opened up collective agreements in an attempt to put in place a new "social contract" and found his party at odds with its traditional unionized supporters. Furthemore, his party had aiways been at odds with big business and codd expect no surge in popularity, despite Rae's attempts to move the party rightward. In the end, his party's attempt to reposition itself fùrther right led to a humiliating election loss to Mike Harris's NR "Cornmon-sense"

Revo lution.

Conservative premier Mike Harris has combined massive cuts with sweeping changes to labour laws. the revoking of a portion of a key environmentai bill, ending employment equity, and the promise of a 30% tax cut to complete his NR package.

Called the biggest change in 40 or 50 years (Vancouver Sun, Nov.29, 1995, A3).

Finance iMinister Emie Eves cut $2 billion from government spending - half fiom social assistance - in the first two weeks of the new administration taking power (Vancouver

Sun. Nov.25, 1995. A4). Total cuts are expected to hit $8 billion once the full weight of 1O6

Bill 26 is felt, with the poor and government employees feeling the brunt of the blows as welfare roles have been slashed by 100,000 in the first year and benefits have been reduced by 22% (Vancouver Sun, Jan., 1996). This Bill also gives the govemment the power to impose user fees, close hospitals, amalgamate municipalities, and decide upon medically necessary health senices (Vancouver Sun, Jan.30, 1996, A4). The proposed

Tory tax cut, a key part of NR policy, was, according to Harris, to pay for itself by stimulating the economy and creating jobs. This plan was used by Reagan in the U.S. in the 1980s and quickly came to be known as "Voodoo" econornics, or Reaganomics, for it resulted in massive budget deficits (Vancouver Sun, Mar.26, 1996).

The Harris government also has moved to end ernployment equity prograns, and this move is consistent with the Wsbelief that government should stay out of the way and let the market work. The underlying message in this policy shifi, however, is that inequality, even if based on racial characteristics, is acceptable. The Tories also suspended part of the provinces environmental Bill of Rights which wouid force the governent to publicly disclose, through an environmental registry, laws or regulations, or the sale of public lands that might aff'ect the province's environment (Vancouver Sun,

Jan. 18, 1996). This suspension would now allow any sale of public land that was made to cover budget cuts, for example, to go unnoticed by the public, therefore making it easier for the government to camy out its NR agenda including the privatizing of public assets.

In addition, this weakening of environmental legislation is also consistent with the

NR's ideoiogy which views public land as worthless "wasteland" and as, therefore, more 1O7 open to environmental degradation. Privatinng this land, according to the NR, would then place a value on it, and, therefore, the owner would preserve it so as to maintain or improve the land's value. The NR ignores the reality that ahost al1 environmental degradation has taken place at the hands of private land owners. Furthennore, privatizing public land simply allows for pollution to become harder to control and police, and more subject to legal battles launched by private owners trying to avoid paying for their pollution. The NR also believes that land that is not in use or under "development" is also "wasteland"and, as such, should be exploited to the full for the profit of the owners.

In regard to the Tories position on labour, Harris's government made history with its introduction of its Labour Bill which afTected as many as 1 million workers and created the province's first civil-service strike, resuiting in major protests in Hamilton which saw 100,000 mach in the streets (Vancouver Sun, Feb.26, 1996, A3c). This new

Bill allowed companies to use strike breakers and ailows an arbitrator to cut wages of provincial employees thus senously threatening the power of unions to use their ability to strike as a senous weapon in collective bargaining (Vancouver Sun, Dec.5, 1995, A3).

Interestingly. these changes helped the Harris government to be subsequently re-elected in 1999. These policy changes are clearly consistent with the NR's anti-union ideology with its emphasis on individual nghts and its attempt to lirnit collective rights, which are viewed as socialistic.

Provincially, NDP governments in Ontario under Bob Rae and in British

Columbia under Glen Clark have dabbled in NR policy, including, in Ontario's case, the opening up of collective agreements in an attempt to create a new "social contract", white 1O8 in B.C. Clark has put in place the most st~gentwelfare legislation in Canada which forces claimants to wait 3 months before collecting their first cheque, and Clark has given tax concessions for middle income earners and small business. In addition, Clark warned that he would balance the budget by laying off up to half the unionized employees on the governments payroll (Vancouver Sun, Sept. 2 1, 1996. Al). These actions exemplie the

NDP's moves to downsize the public sector and move closer to a NR position on the debt and deficit by recogniPng and putting in place a program to reduce govemment expendi ture and balance the budget, which includes lessening support for social programs.

In B.C. the NDP has adopted some NR policy options, including an anti-crime plan. new welfare legislation, and even a tax cut for middle income earners and small business. Premier Glen Clark's anti-crime announcement came at a time when the

Reforrn Party was attempting to make "victirns rights" their issue and held rallies in

V~~OUSplaces. including Abbotsford (Vancouver Sun, Mar. 1, 1996). This plan was an attempt to sted the thunder away from Reform on what had become a major public issue.

The NDP's new welfae legislation came from the Mt's policy book and imposed a three- month waiting period on newcomers to B.C. to collect their fmt cheques. Even the NR governments of Alberta and Ontario have not taken such extrerne measures, and critic

Michelle Des Lauriers of End Legislated Poverty stated that "1 feel so sad that this party is giving in to what it sees as the neo-conservative tide for election purposes" (Vancouver

Sun. biov.4, 1995).

Premier Clark's dabble in Mi policy included a promise of a moderate tax break 1O9

for middle income earners and small business (Vancouver Sun, Apr.24, 1996,

A 1 ) . This policy proposal was no doubt a direct attempt to stop the Liberals fiom using a

Mike Harris-size carrot to woo the electorate. The promised tax cut, however, also clearly iIIustrates the success of the NR in putting this issue in the minds of the voters in such a way that even a social democratic government has had to incorporate it into its policy package.

Conclusion

The period of the mid- 1970s to the late 1990s has been one of tremendous change in political ideology as the major political parties have al1 been influenced by the NR and have shified their positions to the right. (See Table 6.1)

Table 6.1: Support for New Right Ideology by Canadian Political Parties:

1990s

PARTY FREE MARKET DEBT &DEFICIT SOC. CONSERV.

Reforrn High High Hi&

Prog-Conservative High High Moderate-High

Liberal High High Low-Moderate

New Democratic Moderate-High Moderate-Hi& No

The Consexvatives have become increasingly NR and focus on minimal government, decreasing taxes, ending deficit spending and elùninating the deficit and the debt. 110

Furthermore. the Conservatives advocate both balanced budget and taxpayer protection legislation, while cutting the programs and services of the welfare state. This policy will result in a massive transfer of wealth fiom the poor to the nch, which the NR strongly supports. Final1y, the Conservatives have increasingly focussed on harsher punishment, the strengthening of the Young Offenders Act, victim's rights, and holding parents responsible for the crimes of theu children. Thus, as illustrated in table 6.1 Conservative

Party ideology reflects strong support for NR positions on ail three key themes of NR ideology. The Liberals have also been influenced by the NR and show a high level of support for NR policies on the fiee-market and the debt and deficit. and focus on decreasing the size and cost of goverment. Furthermore, they display an increased faith in the free-market and fiee trade, as demonstrated by the Party's support for the FTA,

NAFTA, and the MAI. In addition, the Liberals have placed the debt and deficit issue as a key govemrnent pnority and have cut welfare state programs and services drastically.

An increasing emphasis on crime and punishment issues, including strengthening the criminal justice system while also keeping focussed on crime prevention and rehnbilitation. marks the Liberais as having moderate support for NR positions in this area. Several Liberal MPs also show moderate support for the NR's moral agenda by focussing on traditionai heterosexist views on the farnily. Thus the Liberals as shown in table 6.1 give a high level of support to the NR ideology in the area of the fiee-market and on debt and deficit issues, but only give low to moderate support to the NR's positions on social conservatism. The NDP has been influenced by NR ideology and has moved to the right and shows moderate support for NR positions on fiee-market 11 1 economics and the debt and deficit as is illustrated in table 6.1. This change is demonstrated by its movement away fiom support for a mixed economy, with strong government intervention and the nationalization of industries, to a market-based entrepreneurialism, possibly fostered through fiee trade agreements - although with environmental and labour caveats - dong with the recognition that the debt and deficit must be taken seriously. On issues of social conservatism, however, the NDP has remainsd staunchly social democratic and gives low support to the NR's moral agenda and altematively supports the prevention of crime through fostering education and empIoyrnent opportunities, the rehabilitation of criminals, pay equity, gender and racial equality, and the prevention of discrimination on the grounds of sexual preference. Chapter 7 Conclusion: The Shift to the Right

This chapter will focus on evaluating the transformation of the Canadian political landscape to a more heavily NR-dominated one in light of the key theoretical concepts employed in this thesis. Each of the main political parties will be assessed on the degree to which they have incorporated the three major NR themes into theu own political ideologies, and the key concepts will be evaluated as to their usetùlness in understanding this shifi to the NR ideology. In addition, idrology has real eEects, and in this thesis evidence will be presented to show that NR ideology has had, and will continue to have, serious and powerfùl effects on Canadian society. Findly, a brief outline of the possibilities of opposing the NR and consmicting an alternative hegemonic program will be attempted.

The globalization of capitalism has profoundly affected the once hegemonic ideology of Social Democracy. As a result, this previously dominant ideology has been fractured. and a consequent reorganization of political ideologies has occurred. The NR has sought to explain this shifi which includes the moving of fuiance and investment capital to Third World countries - with their cheap labour and minimal environmental, health and safety regulations - the increasing complexity and availability of technology and transportation, the nse of newly industrializing countries, and the onset of a fiscal cnsis in the West in which stagflation brought on high unemployment, rapidly increasing deficits and mounting debt. This crisis challenged the hegemonic ideology of

Keynesianism and the very structures of the welfare state, and the subsequent reorganization has also impacted upon Canada's political parties and their ideologies. As 113 this thesis has dernonstrated, the political spectnim has shifted to the ri&, and al1 the major Canadian political parties have been impacted to some extent by these changes.

(See table 7.1 ) This shift should not be seen, however, as merely the habitua1 swing of the political pendulum to the nght for now, and to the lefi again later on. It represents, instead, a deeper change in Canadian political ideology which will be extrernely difficult to reverse as the NR has constructed a new hegernony.

This new hegemony shodd not be understood as simply one world-view replacing another, for "In societies like ours ideological contestation does not take place between fülly formed, competing world-views - theirs and ours" (Hall 1988b:58). but rather represents instead the result of a battle for the "heartsand min&" of the people.

This battle is never won for good, or final, and is, therefore, always incomplete. partial, and contested. and is constantly being reformuiated to fit the situation. Hegemony is, thus. never given as a relation between structures but is produced or manufactured by social forces and must be continually maintained.

According to Stuart Hall, the NR has worked to create an ideology which atternpts to become hegernonic and has tiactured and dispersed the Keynesian welfare state ideology of the pst-WWII period. which was based on the prevailing economic conditions in which a settlement between capital and labour brought rising wages and benefits to workers and a stable labour force and increased profits to capitalists. Once the economic pre-conditions for this settlement were eroded by the NR supported proçess of globalization. however, the social-democratic consensus broke down and a new struggle for hegemony began which included not only a struggle for new economic policies but 114 also a renewed struggle over the basic premises on which Canadian society should be reconstructed. Clearly, the pst-war discourses of reformism, iabourism, welfarism, and

Keynesianism have been put in decline and the ideologicai discourses of the NR have gained ascendency as the terms of the ideologicd debate have been shifted.

Viewing this shifi as one involving the construction of a new hegemonic bloc allows one to make sense of the change in ideology in a way that is not possible using classical Marxist theory. Specificaily, the classicd Marxist theory of ideology fails to explain why there is a significant difference between the ideologies found within the dominant classes and how this dominant ideology works to rupture and fiachire the ideology of the working class. For example, in Canada, the Refonn, Liberal, and

Conservative parties have al1 embraced NR positions on the fiee-market and the debt and deficit only after experiencing intemal stniggles and debates, and fiirtherrnore, these parties do not embrace the same positions nor construct their discourses in the same way.

In addition, classical theories tell us nothing about how it is that Reform, for example, has been able to penetrate into the discourses of social democracy and convince the NDP supporter that the NR has the solution to Canada's problems. And Mermore, even if actions resulting fiom this change in discourses result in reducing wages and benefits, pensions. or governrnent services for workers, it is assumed by the NR that this bitter medicine will heal the patient in the end. Instead of a set ideology king put in place then, the rise of the NR ideology represents a significant shifi in thinking, and the major parties in Canada have ail shified their ideology to the right. And it is precisely this lack of explanatory power to account for the concrete development of consciousness in the 115

working classes which showcases the limits of classical Marxist thought in understanding

the hegemony of the NR. Furthermore, the concept of hegemony allows for an

understanding of the consent to power in a way which does not resort to "fdse consciousness" as an explanation. Indeed, the NR is responding precisely to the red

perceived needs of people in a way which resonates both with their common-sense and

with the global changes afXecting Canada. This includes the demand for lower taxes,

more jobs, and the elimination of the debt and deficit which are real concerns of

Canadians which the NR is attempting to address. Further, the NR addresses

fundamental social and moral issues and questions of crime and punishrnent which are

also significant to voters.

In addition. hegemony captures the rise of the NR as more than an economic

phenomenon and andyzes the key ideological shifts which perhaps demonstrate even

more clearly how extensive this transition has ken. Finally, using the concept of

hegemony allows for a critique of essentialism, for hegemony is constmcted and not put

in place already formed and without smggle, and because a socially produced

phenomenon must also be continuaily maintained, reworked, and reformed to capture the

moment and continue its domination on a broad front. Furthermore, this hegemony of

NR ideoIogy is demonstmted in this thesis by the documented penetration of the three

key elements fond in NR ideology into Canadian political parties, their perceptions, and

their policies. Table 7.1 illustrates just how extensive that penetration has ken.

This thesis also demontrates how a hegemonic conception of politics captures the

growth of the Reform Party and its evolution to become the leading representative of the 116

NR and its ability to connect its ideology in a common-sense way with the real experiences of the people. Reform has. thus, captured the common-sense of many

Canadians and this is demonstrated by the legitimacy of Reform's ideology which has framed the discourses of the NR in a way that has made the issues of the day understandable to a wide array of people. Furthemore, these discourses have ruptured the cracks in the social dernocratic discourses and have continued to fragment them. For example. in the area of the free-market the Reform Party has managed to connect its ideology with the cornmon-sense and emphasizes an ethic of intense cornpetition without government intervention, which resonates in the Western mind with the historical perception that the federal government and its initiatives have often been punitive to the

West. Therefore. the Westerner's common-sense may dictate that if the "feds" would just

Ieave us alone. we will be fine. This antipathy to. and Western distnist of. Ottawa, coupled with the mgged individualism of the tough Westerner that goes along with living on the prairies. has allowed for the aItering of the comrnon-sense to support the radical free-market. anti-government policies of the Reform Party. The chapter will now turn to examine the differential adoption of NR ideology by the parties.

Free-market Economics

The Conservative Party

The Tories have been transformed fiom a Conservative party which advocated many liberal leaning "red tory" positions to one more heavily dominated by NR ideology

in reference to its position on the fiee-market. In the 1970s the Tories expressed a free- market ideology tempered by a concem to mitigate the worst effects of capitalism, took 117 issue with excessive corporate concentration in the economy, and called for a limit to concentrations of corporate power which may hamper the fimctioning of the fkee-market.

The Conservatives focussed on increasing the role of the pnvate sector. excluding the public sector fiom certain areas, privatizing public works, decreasing federd spending, and reducing Employrnent Insurance. The Conservatives also feIt that the welfare state was too big and too costly and called for cuts to welfare programs and services. in short, the Party believed that the private sector perforrns best the necessary fiuictions within a modem capitdist economy. However, despite these regressive measures, the party still believed strongly that the poor must be protected. As a result the Tories supported cutting government while minimizing cuts to important programs and services to people who were tnily destitute.

By the 1990s. the Conservatives came to adopt a number of NR policies in regard to the free-market. The party emphasized the need to cut taxes by 10-20 percent and reduce employee and employer EI contributions and remthe plan to a pnvate system of insurance. Furthemore, govemment intervention was now viewed as part of the problem and not as part of the solution. That is, all government activity was now suspect and should be evaluated closely for possible pnvatization or elimination. The Tories also have now corne to emphasize entrepreneurship as a means of economic renewal. This policy change places the emphasis on individual effort as the key to success and also rejects the notion of govenunent intervention in the area of job creation and economic growth.

The Tories also would end subsidies to business and "special interest groups". 118

For the Tories these include many non-profit groups like the "Nationai Action Cornmittee on the Status of Wornen" and poverty education groups. This position also reflects a NR ernphasis, for it would Merremove these democratic lobby groups who work on behalf of society's disenfianchised fiom the decision-making process and woutd make it al1 but impossible for them to wage any sort of protest campaign agauist the prevailing govemment policy. The Tories would also disband marketing boards and let the free- market expand into what had traditionally ken a sector of the economy dominated by family businesses. This policy would soon result in an end to the family farm as large- scale agribusiness begins to dominate.

Finally. the Conservatives' acceptance of fiee trade as an economic development strategy for Canada marks the party as heavily influenced by the NR for severai reasons.

First. it represents a belief in the fiee-market. Second. it is anti-democratic, for fiee trade agreements remove critical economic. social. and environmental decisions from the influence of the dernocratic process by placing them in the hands of unelected corporations and supranational agencies making them unaccountable to eiectorates.

The Liberals

In the 1970s. the Liberal Party supported the role of the market in the economy, albeit tempered by govemment supervision and direction. The governmen:'~ role was, thus. to police and monitor business, and the Liberai governrnent took severai actions at this time to ensure a cornpetitive marketplace was operating in Canada. These actions included protecting national industries in key sectors. such as banking, and monitoring foreign and domestic concentrations of corporate power and investment. 119

After the 1993 election, which the Liberais won handily, the focus on fiee trade was clear for the Party failed to rnodiw the existing Free Trade Agreement (FTA) as promised before the election. signed the North American Free Trade Agreement

(NAFTA) and pushed forward on the Mdtilateral Agreement on Investment (MAI) - which has yet to be ratified, The Liberal policy effort was now on increasing foreign investment. decreasing the size of government. reducing drasticaily the size and scope of the Canadian welfare state. and playing a key role in creating a global fiee trade zone.

The Liberals, therefore, have given strong support to NR positions on the fiee-market and have comrnitted thernselves to the dismantling of the Keynesian consensus.

The New Democratic Party

In the 1970s. the NDP believed that the inevitable outcorne of the play of the fiee- market was an unacceptable level of inequality with a huge economic and social divide between rich and poor. As a result. the NDP supported government intervention in the economy to ensure a fair distribution of wealth. and such intervention was to include economic nationalism with government ownership and investment in key sectors of the economy. In addition. official Party policy stated that the power of multinational corporations was to be reduced. taxes increased on upper income earners, and tax deferrals for corporations ended. The Party aiso favoured ending program cuts, increasing pensions and unionization, increasing government procurement, and a national development policy which would see heavy govemment spending and intervention, including the public ownership of banks and mineral and energy resources.

By the 1990s, the NDP had changed its policy dramatically, excluding public 120 ownership but still supporting limited government intervention in the market. The NDP ako still has reservations about current fiee trade agendas on the basis that workers and the environment are not protected under these agreements and neither is the governrnent's ability to act in the public interest. The Party also has stated in the House of Commons its opposition to the privatization of student loans and supports the concept of free tuition fees for post-secondary education. The NDP also fears bank mergers and the power of these vast financial enterprises and would consider legislation to limit their power. The

Federal Party also still opposes atternpts to weaken unions and roll back labour provisions. although provincially. the Ontario NDP under Bob Rae had moved to rewrite the social contract with labour and decrease union benefits and wages. In acidition, the

Party criticizes excessive corporate profits, the deferral of taxes. high unemployment levels, the unfair tau system. and cdls for a more equitable distribution of income. Thus. while the NDP remains social democratic. the party's policy has become far less socialistic in the area of the fiee-market and now rejects government ownership, as well as wholesde government intervention in the economy. and in this sense, has moved rightward towards a stronger fiee-market orientation. The deeply entrenched ideoiogy of social democracy. however. has proved more difficult to aiter in the NDP. for its

"common-sense" roots are opposed to the extreme individuaiism and lack of concern for those lefi out of the capitalist system displayed by the NR ideology of the fiee-market and by those who embrace it. Debt and Deficit

The Consewative pare

In the 1970s. the Conservatives favoured the achievement of a balanced budget. and decreasing government services and prograrns, rather than increasing taxes, to achieve this goal. The Conservatives, thus, took strong issue with deficit spending during this period.

By the 1990s. the Conservatives were committed to stopping deficit spending, cutting governent programs and services. and rolling back the welfare state. The

Conservatives were focussed now on putting baianced budget and taxpayer protection legislation in place. meaning that the govemment would be legaily unable to fmance programs and services through deficit spending, thus seriously handicapping its ability to act in the public interest. The Party concentrated intensiveIy on the elimination of the deficit and the debt in this period and on the need to decrease corporate taxes. The Tory obsession for lowering taxes for the wealthy, while increasing taxes on the poor and middle class in order to reduce the deficit best illustrates the Party's shifi to a more heavily NR-influenced position on this issue.

The Liberals

In the 1970~~the Liberals attempted to achieve economic growth while decreasing inflation and practicing restraint. This attempt included decreasing public spending, cutting prograrns and services, decreasing the growth of the public sector and public sector salaries, making Employment Insurance self-financing, and cutting EI benefits.

The Liberals were concemed. however, to maintain a hurnane position as far as these cuts 122 were considered and had thus no fixed plan to elhinate the deficit or debt. Tmdeau believed that decreasing inflation not major program cutting was the correct solution.

The Party, thus. still sought to protect people from major dislocation and the social costs associated with these cutbacks. The Liberais also sought to preserve equality of opportunity.

By the 1990s. however. the Liberals had become NR-influenced and focussed on deficit and debt elirnination to improve competitiveness, on lowering interest rates, on putting the debt to GDP ratio on a permanent decline, and on balancing the budget. The

Liberals also proposed to put half of any budget surplus towards heding the economic and social costs of Canadians, whereas the other half would go to decreasing taxes and paying down the national debt. However, they put al1 this surplus towards paying down the debt. Finally. the Liberals proposed to reduce the Canada Pension Plan and seniors' benefits to make them sustainable. Thus, the Liberais focus on deficit and debt elimination as the govemment's top pnority marks them as having been strongly influenced by NR ideology on this issue.

The New Democratic Party

In the 1970s the NDP believed that any deficit or debt concerns could be solved by increasing taxes on the wealthy and by closing tax loopholes for individuals and businesses. The Party also favoured increasing the minimum wage, creating employment projects, increasing spending by both the public and private sectors, and spending on the poor. the sick. and on research.

By the 1990s, however. the NDP no longer concentrated on increasing taxes on 123 the wealthy or closing loopholes but rather focussed on opposing draconian cutbacks to programs and services while still calling for job creation projects. For example, the NDP opposed changes to EI which have limited the number of unemployed persons who cm collect benefits as well as the amount of time and total benefits that can be collected. The

NDP have weakened their stand on deficit spending and have moved away fiom their beiief in financing large scale government intervention into the economy in favour of a more neo-iiberal approach recognizing the need for budgetary restraint.

Social Conservatism

In the 1970s the Conservatives viewed abortion as a criminal matter and thought that abortion should only be available to women in extreme cases. In the 1990s the material dealing with this area of NR ideology has been too limited to make educated comment on. In the 1970s the LiberaIs viewcd abortion as a women's choice and not as a criminal matter. By the 1990s some Liberals began to express NR positions, however, on the faily and on traditional sexuatity. illustrating, thus, the influence of NR ideology on the party. For the NDP in the 1970s abortion was viewed as a matter of choice for women and not as a criminal matter. By the 1990s the NDP continued to support gay rights. feminist struggles. pay equity, euthanasia, and continued to be pro-choice on the issue of abortion. The NR ideology has. therefore, seemed to have made no impact on this area of NDP policy.

In regards to issues of crime and punishrnent, in the 1970s the Consewative Party actively supported capital punishrnent and viewed the Liberals and especiall y the NDP as being too soft on crime. In the 1990s the Conservatives have given support to tougher 124 action on young offenders, the abolishing of conditionai sentencing, the creation of a victim's bill of rights. and the lowering of the age limit for the YOA to include 10 and Il year olds. The Party would also hold parents responsible for crimes cornmitted by their children. The Conservatives hold many positions on crime and punishment issues which are indistinguishable fiom Reform Party positions, which demonstrates the strong support that the Conservatives give to the NR agenda on this issue.

In the 1970s the Liberals successfùlly opposed and eliminated the death penalty as a form of punishment for criminals in Canada. This period was also characterized by the absence of debate on these issues. In the 1990s an increasing emphasis can be found on crime and punishment issues; however, the main focus for the Liberals is on detemng crime. and the Liberals clearly reject the extreme NR ideas of the Reform Party.

However. the NR has been successfd in putting issues of crime and punishment ont0 the public agenda and. thus. has forced the Liberals to debate these positions, and that has resulted in the Liberals having to react and subsequently move merrightward and advocate tougher positions for Young Offenders. for example.

In the 1970s the NDP's focus was on creating a full employment economy which would decrease the economic need for people to commit crimes. The NDP also ploced strong emphasis on the rehabilitation of criminais. In the 1990s the NDP policy has changed little and continues to place a substantial emphasis on preventing crime and rehabilitating criminals, as well as on providing for a more equitable distribution of wealth. 125

Table 7.1: Support for New Right Ideology by Canadian Political Parties:

1970s

PARTY FREE MARKET DEBT &DEFICIT SOC. CONSERV.

Prog.-Conservative Moderate Moderate-High Low-Moderate

Li beral No Low-Moderate No

hrewDemocratic No No No

1990s

PARTY FREE MARKET DEBT &DEFICIT SOC. CONSERV.

Re fonn High High High

Prog-Conservative High High Moderate-High

Liberal High High Low-Moderate

New Democratic Moderate-High Moderate-High No

The shift to the NR ideology has been established within Canadian political parties. for the evidence presented here (see Table 7.1 above) illustrates that the three

maj or elements of this ideology have penetrated into the Reform, Conservative, Liberal, and NDP parties. That the traditional base of social democratic ideology - the NDP - has also been influenced by the NR provides further evidence that NR ideology has become hegemonic. That is. neo-liberal and neo-conservative elements have ken able to gain ascendency based on the opening provided by the changed nature of global capitalism and have fractured and hgmented the previous social-democratic consensus, and even 126 the NDP have attempted to adopt some elements of the new orthodoxy rather than risk temg made irrelevant by the sweeping hegemonic assault of the NR. Importantly though, the major ground on which the NR has established its hegemony is in the area of the free-market and on debt and deficit issues. That is evident as al1 the major parties have given a high level of support to NR ideology on those issues. However, this new consensus on the free-market and debt and deficit issues may be fragile as it rests on the new realities of global restmcnuing and the restructuruig of the Canadian economy both of which are experiencing rapid change. On issues of social conse~atismthe LiberaIs and the NDP have moved minimally to the right and still are social-democratic in these areas. However. the Liberais have begun to focus more heavily on issues of crime and punishrnent and the NDP has also attempted to take a leadership position in this area on the Provincial level which may be indicative of a fùrther shifi to the right on this issue in the future. The Conservative Party has moved Merright on ai1 three issues of NR ideoiogy and its positions have become almost indistinguishable fiom the Reform Party's ideological positions. That helps to explain both why the Reform Party has become dominant as the new key representative and leader of the NR ideology and why the

Liberals have been able to adopt more heavily influenced NR positions, whereas the

Conservative Party has virtually disappeared fiom Canadian politics.

The ascendant NR ideology most strongly promoted by the Refonn Party has successfully won the "battle of hearts and minds" inside Canada's other major parties, and the discourses of the fiee-market, debt and deficit, and social conservatism have come to dominate political economic discourse. The Reform Party has successfuIly articulated 127 and placed the key NR issues and positions ont0 the political agenda and has becorne the leading ideological force to which the other parties have had to respond. In doing su, these parties have had to move nghtward so as to be able to articulate the new orthodoxy in a way that makes sense of the rapid changes brought on by globalization and experienced by Canadians.

The rise of the Reform Party and the influence of its NR ideology on the major parties in Canada has created a political and ideoiogicai landscape, with parties advocating policies which are not conducive to the continued existence of Canada's middle class or the high standard of living of many Canadians. For example, the Liberals introduced the Canadian Health and Social Transfer (CHST) in their 1995 budget This effectively cut federal funding for post-secondary education, social assistance, and health care by 40% over three years (Clarke and Barlow 1997: 105). The federal transfers for these programs will end by 2004. The Reform Party has been able to influence the pxty policies of the other major parties by putting NR issues on the table and by articulating the interests. or "real enough" interests. of many voters while also working to change hem by matching up NR positions with their personal experiences and "common-sense" and substituting these NR positions for the social-democratic discourse to which their

"cornrnon-sense" was previously attached. Thus, Reform has been able to gain support frorn people whorn it cannot be said to represent politically or economically.

The end result of this hegemonic stniggle. however, as Gramsci pointed out is somewhat open-ended for there is no predetennined end to the continuing refashioning of the political landscape, and the leading ideological force is not reducible to economic or 128 political processes. Furthermore, although NR ideology has become hegemonic within many of the world's most powerful global organizations, Western nations, and the major politicai parties in Canada, this hegemony is never cornpiete and there are aiways cracks in the NR discourses where there is an apparent contradiction and the discourses do not seem to match up. There is also still opposition in the form of the NDP, global organizations. and in the organizations of civil saciel, and these organizations were successfuI in derailing the MAI which represents a NR inspired global accord which would be devastating to the democratic, economic, and social rights of the worfd's citizens. An alternative hegemonic formation that attempts to contest the NR ideology and to crack its apparent unity could be successfil, for as Stuart Hall has pointed out. ideology is quite often contradictory. partial, non-systemic, and very ofien incoherent.

Thus. these organizations can expose the disunity of the NR ideolo~and attempt to win back support to their alternative ideology.

Within the NR this tension exists between the outward looking nature of neo- liberalism and the neo-conservative tendency to promote the values of social conservatism and a cultural nationalism. The Reform Party, for example, promotes a culturai nationalism which excludes people of colour and the people of Quebec. The

Conservative Party accepts Quebec and is more accepting of multiculturalism and holds similar positions on neo-liberal economics as the Reform Party. However, the Reform

Party's attempt to form a "United Alternativewwith the Conservative Party and right wing

Liberai Party members and thereby solidi@ its hegemony has largely failed because of their irreconciiable views on cultural nationalism. Furthermore, strains are apparent as 129 well beween the neo-liberal promotion of fiee-markets with its tendency to create an

"anything goes" type of society which emphasizes personal fieedom, and the neo- conservative promotion of Victorian moral values and traditions. The lefi must work on these sites of intemal contestation and expose the contradictions within them and then reaniculate these into an alternative hegemonic ideology to combat and overcome the

NR's dominant hegemony. Furthermore, the lefk must also articulate new stniggles and issues regarding the environment. alternative forms of democracy, and global issues in a way that allows for inclusiveness and respect for diversity.

This thesis has demonstrated that NR ideology has emerged within the discourse of Canada's major political parties. This emergence has had drastic implications and will continue to result in the creation and implementation of policies which are heavily influenced by the NR policy agenda, These policies will create a much more unequal, class stratified, authontarian society with a large number of Canadians living in absolute poverty. Furthermore, the transformation of the "cornmon-sense" will allow for these policies to be implemented within the context of a supportive culture.

This project views any oppositional strategy against the NR as one which will require the use of a hegemonic conception of politics, that is, one which confiants the NR on the political. economic, ideological. and cultural levels. This hegemonic project will require condensation within a political party or possibly under the banner of a broad bloc or coalition of social forces similar to the Solidarity Coalition which opposed the Social

Credit government's NR agenda in British Columbia in the early 1980s. Critically, the ieft must engage with the political centre in order to build as broad a base as possible 130 fiom which to confiont the hegemonic politics of the NR. That rnay involve a rethinkïng of the actual experience that people have of welfare state programs and senrices, and some reflection on what the NR offers people that the left bas not been able to.

Furthemore, alternative modes of fünding many of the civil society organizations will need to be addressed as governments continue to cut gants in an attempt to stifle opposition to NR hegemony.

Canada has been the envy of the world and has consistently placed amongst the best countries in the worid in which to live. However, the very qualities which make

Canada such a special place - our social security net, excellent public education, public health care, and a beautifid natural environment - are al1 under attack fiom the NR's assault. One critical area for further research suggested by this study is to investigate the roie and influence of right-wing think tanks. such as the Fraser Institute. This is an important area of concern regarding the growth and dissemination of NR ideology and the role of the transnational corporations which fÙnd and support these institutions.

Another merarea in need of investigation is to assess the aitemative fonns of societal, perhaps global. organization which go beyond the welfare state and the current NR hegemony and are able to better meet the needs of the world's people, something for which the NR and its ideology are wholly unsuitable. Appendix 1: Research Questions

The primary research questions with which this project is concemed are:

What is ideology? How should we understand the social process by which a new ideology is constructed? How should we understand the socid consequences of ideology ?

What are the key NR themes found within Refonn Party ideology?

What NR themes are evident in the other major Canadian political parties?

Has the success of the Reform Party's NR ideology influenced the Liberal, Conservative, and New Democratic Party to shifi their ideology to the right?

Why do people support a political party so opposed to their own best interests?

The secondary research questions that will provide supporthg evidence for the development of the primary questions are:

1) What is the Canadian "crisis" and why has the Refonn Party emerged and gained support as a leading political. economic. and cultural movement?

2) How does ideology work to shifi the "common-sense"?

3 ) Ho w will NR-influenced policy affect Canadians? 132

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