COOPERATION AND CONFLICT: FEDERAL-PROVMCIAL RELATIONS. THE CANADIAN -AT BOARD. AND THE MARKETING OF PRPJRIE WKEAT Peter N. Ropke Department of Political Science Submitted in partial fulfülment of the degree of Master of Arts Facule of Graduate Studies The University of Western Ontario London, Ontario July 1997 O Peter N. Ropke 1997 National Library Biblioth&que nationale of Canada du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliographiques 395 Wellington Street 395, nie Wellington OttawaON K1AON4 Ottawa ON K1A ON4 Canada Canada The author has granted a non- L'auteur a accordé une licence non exclusive Licence allowing the exclusive permettant à la National Library of Canada to Bibliothèque nationale du Canada de reproduce, loan, distribute or seil reproduire, prêter, distribuer ou copies of this thesis in microform, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfiche/film, de reproduction sur papier ou sur format électronique. The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fiom it Ni la thèse ni des extraits substantiels may be p~tedor othenirise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permission. autorisation. This thesis attempts to explain both the unusual degree of federal-provincial harmony that had traditionally been evident in the area of prairie wheat marketing and the federal- provincial conflict that emereed in the IWO'S. It applies interest goup. globalization and govenunent-building approaches to explain federal-provincial relations conceming the marketing of prairie wheat and the Canadian Wheat Board. The thesis argues that an initial phase of harmony was founded on an interest group consensus favouring monopoly marketing, the absence of forces associated with globalization and a Iag of province-building behind nation-building. By contrast, wnflict later enipted as the full impact of globalization led particular provincial configurations of interesr groups to demand new globalized solutions for wheat marketing. This thesis shows that societal factors are central to understanding federal-provincial relations and that federal- provincial relations may be less conflichial than is often assurned. Keywords: wheat marketing, interest groups, globalization, prairie wheat, federai- provincial relations, Canadian Wheat Board, Alberta Government, Saskatchewan Govemment, Manitoba Government, agriculture. To the glory of God, the Father, the Son, and the Holy Spirit If%enJesics spoke again to the people. he sa~d."I am the light of the wortd. Whoever follows me will never walk in darkness. bu1 will have the light oflife. " John 8:?2 NIU I hme been cnrcijied with Christ and I no longer [ive. but Christ [ives in me. The Ife I live in the body I [ive by fairh in rhe Son of God, who loved me andgave himselffar me. Gnluriam 2.20 (NIY) To God be the glory forever and ever. Amen. TABLE OF CONTENTS Page Certificate of esamination Abstract Dedication Table of contents List of tables List of maps List of abbreviations 1 introduction 2 A Multiple Perspective Approach The Setting Other Approac hes Province-building and Nation-building hterest Groups Globalization Conclusion 3 Hamiony on the Prairies The Theoretical Setting The CWB - Precunors and contemporary manifestations The 1930's - Towards a monopolistic consensus in an era of provincial deference The 19403 - Solidification of the consensus The 1950's - Strong support, shifting foundations The 1960's - Continued support, signs of change The 1970's - Ongoing harmony despite si= of conflict in related areas The 1980's - Towards a dual-consensus Conclusion 4 ConfIict on the Prairies The Theoretical and Political Context The lWOYs- A multilayered breakdown of the wheat monopoly consensus Prelude to codict The conflict begins: Goodale takes control of federal wheat marketing policy Page The conflict escalates: The Alberta Governrnent's response targets wheat marketing 67 Wheat smuggling, the FFJ, and the Inowledge and information revolution 71 No basis for compromise: Both sides stand firm as federal marketing panel report 75 The Alberta Govemment responds to the federal marketing panel report 77 The Saskatchewan Governrnent weighs in 79 A final event: The federal government responds to its marketing panel report and to the Alberta Govemrnent 82 Conclusion 84 5 Conclusion Summary and Findings The Future of Prairie Wheat Marketing Endnotes Vita LIST OF TABLES Table Description Page 1 Number of Fanns .Prairie Provinces ................................................ -94 3 - FmPopulation as a Percentage of Total Population O Prairie Provinces ....... 94 3 Averaee Farm Size (Acres) .Prairie Provinces ...................................... 95 LIST OF MAPS Description Page 1989 Alberta General Election ResuIts ................................ -96 1993 Alberta General Election Results ................................. 97 Per Capita Farm incorne - Alberta (1990) .............................. 98 199 1 Saskatchewan General Election Results ......................... -99 1995 Saskatchewan General Election ResuIts ........................ -100 Per Capita Farrn Income - Saskatchewan ( 1990) ...................... 101 1990 Manitoba General EIection Results .............................. 1C2 1995 Manitoba General EIection Results .............................. 103 Per Capita Fmlncome - Manitoba ( 1990) ........................... 104 LIST OF ABBEVLATIONS Full Narne CAPA Canadian Agnculniral Policy Alliance CCA Canadian Cattleman's Association CFA Canadian Federation of Agriculture Cwl3 Canadian Wheat Board EEP United States Export Enhancement Program FFJ Farmers For Justice FTA Canada-United States Free Trade Agreement KAP Keystone Agicultural Producers NAFTA North American Free Trade Agreement NFU National Farrners Union UGG United Grain Growers Limited WGA Westem Barley- Growers Association WCWGA Western Canadian Wheat Growers Association WRAP Wild Rose Agicultural Producers WSGA Westem Stock Growers Association The Canadian Wheat Board (CWB) has rnarketed prairie wheat since the 1930's. In the 1940's it became the sole marketer of that wheat. Although the CWB is a Crown corporation responsible to the federal cabinet, its marketing practices have also ken the subject of substantial provincial govemment interest, given the size of the wheat crop and its importance to the prairie provinces. Interestingly, despite the interaction of both orders of governrnent. federal-provincial relations in the area of wheat marketing had until recently remained strikingly cordial. By contrast to the broad array of conflict that began to emerge in the 1960 's in a number of other areas' such as the constitution. energy, îransportation, communicaîions, and fiscal arrangements, the federal-provincial relationship in maners involving the marketing of prairie wheat continued along a cooperative path. Since the beginning of the 19903, however, this tradition of hmony has been disrupted ly a federal-provincial dispute centred on Alberta over the fiiture of the CWB's wheat monopoly. This thesis will in part attempt to explain the unusual degree of federal-provincial hamony that was traditionaily evident in this area. Unlike many studies of federal- provincial relations, whîch are ofien forced to focus on conflict, ths examination has the abili- to instead consider the less common case of federal-provincial harmony. ' The case of wheat marketing provides a sWng indication that the study of federal-provincial relations may, even after the 19603, still involve an analysis of cooperation. Moreover. not only does this thesis afford an opportunity to study an anomalous area of federal- provincial relations, but it also provides an opportunity to examine the breakdown of ths anomaly. Accordingly, the thesis will thus also attempt to explain the recent emergence of federal-provincial conflict in relation to the CWB. in its attempt to account for both the tradition of hannony and the emergence of conflict in wheat marketing, the thesis uill emphasize approaches which have ûaditionally been accorded relatively little attention. Approaches focusing on govemmental factors, such as the constitution and the goverment-building ambitions of political and bureaucratie elites, have normally been emphasized in efforts to explain the nature of federal-provincial relations. However?this case study will attempt to demonstrate that an adequate explanation of both the traditional harmony and the recent conflict which have characterized federal-provincial relations in the wheat marketing field may ody be attained by introducing societal facton. Ln particular, the thesis will anempt to show that interest groups and globalization are important to understanding both the historicd and current relations between the federai govemment and the provincial goveemments in this area. For the purposes of thîs examination. the spotiight of fedeml-provincial relations will thus be seen to be focused on the social environment in which governments are embedded rather than on the govemments themselves. Chapter 2 begins the analysis of the marketing of prairie wheat with a review of the literanire dealing with the importance of various facton which influence the nature of federal-provincial relations in Canada- A nurnber of variables will be exmined: the constïtuîion, class. inmastate federalism, regio~lism~political