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Structural change and implicit regional development policies : the role of government office employment… Davies, Berwyn James 1977

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STRUCTURAL CHANGE AND IMPLICIT REGIONAL DEVELOPMENT POLICIESs THE ROLE OF GOVERNMENT OFFICE EMPLOYMENT IN BRITISH COLUMBIA by BERWYN JAMES DAVIES B.A. University of Sussex, 1975. A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n THE FACULTY OF GRADUATE STUDIES SCHOOL OF COMMUNITY AND REGIONAL PLANNING We accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA May, 1977. © Berwyn James Davies, 1977. In presenting this thesis in partial fulfilment of the requirements fo an advanced degree at the University of Brit ish Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Depa rtment The University of Brit ish Columbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5 - 1 -ABSTRACT Two main themes underlie t h i s t h e s i s . The f i r s t i s the strength of i m p l i c i t d i r e c t investment regional development p o l i c i e s compared to the ineffectiveness of the e x p l i c i t ' a t t r a c t i v e ' ones. The second i s the importance of understanding the effects that national s t r u c t u r a l change w i l l have on regional development patterns. The two come together i n an analysis of the effects of the growth of o f f i c e employment on the s p a t i a l development of the B r i t i s h Columbia economy. The evolution of a post-industrial occupational structure i s shown to involve the rapid growth of o f f i c e employment i n general and higher echelon administrative and professional 'control' functions i n p a r t i c u l a r i n recent years. Growth of government and i t s entry into new areas of concern i s s i m i l a r l y seen as a consequence of t h i s development. Analysis of Census and other data reveals that o f f i c e s were heavily concentrated i n Vancouver and V i c t o r i a and that> t h i s concen-t r a t i o n had increased during the 1960's. Higher echelon occupations were especially heavily concentrated. Government o f f i c e employment i s also heavily concentrated and there was some evidence that t h i s too i s increasing, along with the growing importance of new areas of competence. The P r o v i n c i a l government pattern was somewhat di f f e r e n t from the aggregate i n that i t s public service o f f i c e functions are most highly concentrated i n V i c t o r i a as opposed to Vancouver, Crown Corporations and t e r t i a r y education, however are concentrated i n Vancouver, - i i -Changes i n the structure of the large organisations that dom-inate the modern economy, involving the separation of rapidly grow-ing control functions from the slower growing production functions are the cause of the concentration of o f f i c e s i n the two largest centres of B r i t i s h Columbia. Both t h i s growth and t h i s concentration are expected to continue, at least i n the forseeable future. This can be expected to Increase income opportunity, employment opportun-i t y and development opportunity disequitles i n the I n t e r i o r , as well as causing s o c i a l p o larisation and 'growth pains' i n Vancouver. There i s deemed to be i n s u f f i c i e n t evidence to support a view that these d i s e q u i t l e s nonetheless contribute to the maximisation of over a l l s o c i a l benefit and a s p a t i a l application of the Theory of Just i c e i s used to support a c a l l for remedial action. Public sector o f f i c e employment, accounting f o r over 10$ of a l l o f f i c e employment, i s seen as having a strategic role to play i n changing e x i s t i n g development patterns and a b r i e f analysis i s made of i t s use i n other areas of the world. The thesis concludes that more research i s needed i n t h i s area, but that the dir e c t use of government o f f i c e employment as a regional development t o o l i n B r i t i s h Columbia would probably be more eff e c t i v e than present regional development p o l i c i e s . - i i i -Table of Contents Page L i s t of Tables v L i s t of Figures v i Chapter I . Introductions The I m p l i c i t Regional Development 1 Effects of Government P o l i c y Chapter I I . The Changing Structure of the B.C. Economy 13 Is The Influence of Ideas on P o l i c y 13 II» The Sectoral Evolution of the B.C. Economy 17 I l l s The Occupational Evolution of the B.C. Economys 23 The Importance of Office Employment, IVs Summary 31 Chapter H i t The Regional D i s t r i b u t i o n of Office Employment 35 Is A Regional Occupation Factor 35 l i s 1961-71s A Changing Picture 40 I l l s An Explanation of Concentration 42 IVs The Governmental Dimension 44 Vs The Role of the Federal Government 44 Vis The P r o v i n c i a l Government 46 VIIs The Crown Corporations and other I n s t i t u t e s of 57 Higher Education VIIIs Summary 59 Chapter IVs Future Trends i n Office Employment i n B r i t i s h Columbia 61 Is The Sectoral and Occupational Trends 61 H i The Regional Pattern of Hierarchical Location: 68 Theoretical Perspectives I l l s The Role of Communication 71 IVs Summary and Implications 75 - i v -Table of Contents - Cont'd. P a g e Chapter V» The Regional Implications of Growth of Office 82 Employment I i Income Inequalities 83 II< Lack of Development Opportunity 86 I I I j E ffects on the Central Region 90 I V i What Should be Done 92 Chapter V I i The P o l i c y Response 98 I* The Strategic Role f o r Government Office Employment 98 I I j Experiences of other Governments 101 H i t The Implications f o r B.C. 105 IV: The Need f o r Further Research 107 Chapter VII: Conclusion 109 Bibliography 110 - v -L i s t of Tables n Page Table I I . I Sectoral Composition of the B r i t i s h Columbia Labour 19 Force, I96I - 1976 Table I I . I I Evolution of Public Sector Employment i n B r i t i s h 20 Columbia, 1971 - 1976 Table I I . I l l Occupational Composition of the B r i t i s h Columbia 27 Labour Force, I96I - 19761 Selected occupations Table I I I , I Regional Occupation Factors and Office Employment 1 37 B r i t i s h Columbia Census D i s t r i c t s , 1971 Table I I I , I I Office Labour Force and R Factors i n Selected B r i t i s h 41 Columbia C i t i e s Table I I I . I l l Federal Government Office Employment i n B r i t i s h 46 Columbia, 1971 - 1975 Table III. I V Federal Government Office Employment i n B r i t i s h 45 Columbia Census Metropolitan Areas (CMAs) — 1971 and 1975 Table III.V B r i t i s h Columbia Census D i s t r i c t s — P r o v i n c i a l 48 Government Employment, 1974 Table III.VI P r o v i n c i a l Public Service Employment i n B r i t i s h 50 Columbia, 1974, f o r Selected Major C i t i e s . Table III. V I I B r i t i s h Columbia P r o v i n c i a l Government Office 53 Employment — Certain M i n i s t r i e s , 1977 Table I I I , V I I I B r i t i s h Colurabia,,Forestry Department Office Employees 54 by Resource Management Region, 1977 Table III.IX D i s t r i b u t i o n of B r i t i s h Columbia Department of Recreation 56 and Conservation Office Employees, 1977 Table V.I Median Incomes for Full-Time Occupational Groups i n ; 85 B r i t i s h Columbia, 1971 Table V.II Quarterly Unemployment Rate In B r i t i s h Columbia, 1974 - 88 1976 L i s t of Figures. Figure I I . I Labour Force Change by Selected Industry: B r i t i s h Columbia, 1961 - 1976. Following Page 22 Figure I I . I I Percentage of Declared Labour Force by Selected Occupation i n B r i t i s h Columbia: 1971 - 1976 Following Page 27 Figure I I . I l l Growth of Selected Occupations: B r i t i s h Columbia, I96I - 1971 Following Page 27 Figure II.IV Growth of Selected Occupations: B r i t i s h Columbia, 1971 - 1976 Following Page 27 Figure I I I . I B r i t i s h Columbia Resource Management Regions Following Page 54 - v i l -ACKNOWLEDGEMENT I would l i k e to thank a l l those M i n i s t r i e s and Crown Corporations which helped me i n the c o l l e c t i o n of information. Especial thanks are due to Rob Carson of Canada Manpower and C e c i l i a Strong of the E.L.U.C. Secretariat. F i n a l l y , I owe an i n t e l l e c t u a l debt to J , Westaway of L.S.E. whose writings introduced me to those of Stephen Hymer and who provided me with a basis f o r analysis* - 1 -Chapter One Introduction! The I m p l i c i t Regional Development Effects of  Government P o l i c y , T r a d i t i o n a l l y , problems of regional imbalance have been a neg-lected area of economic and even governmental thought. C l a s s i c a l economists viewed them as mere f r i c t i o n s or temporary aberrations i n an automatically s e l f - e q u i l i b r a t i n g system and "the where of a c t i v i t y was subsumed under the "why" of price and p r o f i t theory"*. The Keynsian revolution while exploding the myth of automatic s e l f -balance s t i l l perpetuated the view of regional economies as mere subsets of the national, of regional problems as being problems within the system rather than problems of the system. Thus the assumption was that a series of compromises and devices (incentives, subsidies to firms and public works) would ensure some kind of regional balance at f u l l employment l e v e l s , j u s t as they seemed to have done so successfully at the national l e v e l . The t y p i c a l pattern of government regional development e f f o r t i n the Western World was thus confined to the a l l o c a t i o n of admittedly often large absolute sums which were then usually channelled through a separate " i n - l i n e " department. The s p a t i a l effects of the remaining portion of the government budget, the vast majority of i t s expend-i t u r e s , were ignored. However, while the components of t h i s portion (defense, education, research e t c ) are allocated according to non-s p a t i a l c r i t e r i a , they nevertheless have s p a t i a l e f f e c t s , "The e x p l i c i t n o n - t e r r i t o r i a l purpose sometimes ca r r i e s hidden within i t 2 an i m p l i c i t t e r r i t o r i a l policy," - 2 -An excellent i l l u s t r a t i v e example of the magnitude of t h i s process i s the role of defense spending i n the s p a t i a l evolution of the , US economy. Between 19^6 and 1965, 62% of the national budget or $776 3 b i l l i o n was spent on defence , a fact of special significance f o r the thirteen f a r Western States. Although less than one-sixth of the nation l i v e d i n that region, i n I965 one-third of a l l m i l i t a r y prime contract awards and two-thirds of a l l missile awards were l e t to business firms located there. Of those States, C a l i f o r n i a was, of course, by f a r the greatest benefactor, receiving over 20$ of a l l prime contract awards. The reason f o r t h i s favouritism was the location of the nascent aerospace industry on the West Coast and i t s subsequent rapid expansion to meet defence needs during and a f t e r the Second World War. This competence gave the West Coast i n general, and C a l i f o r n i a i n p a r t i c u l a r , a decided advantage when subsequently missiles and electronics dominated procurements, the more so because federal research and development programmes s i m i l a r l y favoured the area. As a r e s u l t of t h i s , Clayton claims that defence spending was the primary reason behind the rapid expansion of industry and population i n C a l i f o r n i a between 19^5 and 1965. "Without these massive outlays Cal i f o r n i a ' s manufacturing growth since World War I I would probably have been about one t h i r d ... and her net in-migration about one-hal f i t s present l e v e l " c e t e r i s paribus. Further, t h i s public money underpinned the development of c i v i l i a n application of the various technologies and thus gave the region a decisive advantage i n the high-growth areas of electronics and commercial a i r c r a f t production. - 3 -S i m i l a r l y the high p r i o r i t y given to the space programme during the s i x t i e s has had profound consequences for Houston and F l o r i d a , Alonso claims that, "the location of the knowledge producing industry (which i s largely supported from Federal funds) i s an important determinant of the location of some of the most dynamic 5 sectors of the national economy", and points to the development of the areas around Cambridge, Mass, and Palo., A l t o , C a l i f , f o r support. Capital regions, Washington, Ottawa, Rome and Bonn for instance, have been great beneficiaries of the tendency of governments to locate most of t h e i r burgeoning bureaucracies near to the centres of p o l i t i c a l power, thus again making an i m p l i c i t regional development decision out of one that was e x p l i c i t l y taken f o r reasons of e f f i c i e n c y - or perhaps not even consciously taken at a l l . Paradoxically, i t seems as though t h i s type of se c t o r a l l y induced but regionally s p e c i f i c expenditure has, quite apart from i t s enormously greater volume, been a more effec t i v e regional development t o o l than the e x p l i c i t Keynsian regional development expenditures, A 1970 US Government study, f o r example, contained an analysis of some forty two p r i n c i p a l Federal Assistance Programmes designed to affe c t the location of population and economic a c t i v i t y , ^ On an impact scale ranging from "none" to "heavy" the evaluation of t h e i r interregional effects ranged from "none" to " s l i g h t " with the ex-ception of the Highway Programme, whose impact was judged "heavy". The study concluded that other areas of Federal a c t i v i t y (including the credit system, the regulation of economic a c t i v i t y , the procurement of goods and services, the promotion of R and D and the provision of - 4 -infrastructure) are p o t e n t i a l l y more powerful factors than the e x p l i c i t assistance programmes. In Canada, there are s i m i l a r c r i t i c i s m s of the Federal Govern-ment's $500 m i l l i o n a year regional incentive programmes . As good believers i n the free enterprise system the government based t h e i r p o l i c i e s on the assumption that, i n general, enterprise i s price competitive and i s therefore compelled by market pressures to earn, i n the long run, no more than a "normal" p r o f i t on investment. Thus firms may be forced by state a i d to do what they otherwise would not do. In the regional context, the assumption i s that the offering of subsidies to investment and labour costs w i l l a t t r a c t firms to locate more investment and jobs i n the problem regions. Subsidies, were seen as making possible a reduction i n the price of regional exports comparable with the reduction of national export prices made possible through a currency devaluation. In t h i s way cost disadvantages suffered by peripheral regions could be eradicated. However, despite early claims f o r the effectiveness of these g incentive measures , David Springate came to the conclusion that "Roughly h a l f of the incentive grants do not influence investment i n o any s i g n i f i c a n t manner and can be considered to be windfall gains" . Springate confirmed what many had believed to be true, i e , that while firms were quite ready to accept grants and subsidies, these were not important c r i t e r i a i n a high proportion of investment decisions. This conclusion i s confirmed and strengthened by findings i n England. 10 Evidence given before the Commons Expenditure Committee reveals that the big league firms i n the modern manufacturing sectors, those - 5 -with the best guarantees of survival and e f f i c i e n t production, can r e a l i s e much greater gains by locating i n an overseas "export p l a t -form" such as Taiwan. There, labour rates are as l i t t l e as 25% of those prevailing i n B r i t a i n , while evidence from the US t a r i f f Commission shows that Far East and Mexican labour costs range from one tenth to as low as one twentieth**. Thus firms of t h i s type tend to disregard government incentives when making location decisions and evidence to the committee revealed that those big league firms which did locate i n development regions "would have gone to a develop-12 ment area regardless of the grants offered" . In addition relocation decisions that r e s u l t i n a move from centre to periphery seem to be taken more as a r e s u l t of land and labour "squeeze" problems i n the 13 i n i t i a l location than of the a t t r a c t i v e power of regional subsidies. Thus i n Holland's view the net effect of regional subsidies tends to be to prop up f a i l i n g indigenous firms i n problem regions, while t h e i r a t t r a c t i v e effect i s largely l i m i t e d to small economically marginal national firms with high f a i l u r e rates. He comments disparagingly on the small number of jobs created i n the B r i t i s h 14 development areas compared to the sums of money spent. In the l i g h t of t h i s then i t should come as no great surprise to learn that even the f i f t y cents of every Canadian Regional Development d o l l a r that do not go straight to corporate windfall p r o f i t s , have had only very marginal successes. Despite a f a i r l y optimistic and c e r t a i n l y i n s i g h t l e s s analysis of Canadian Regional P o l i c y , T.N. Brewis i s forced to admit that l i t t l e r e a l progress has been made towards the r e a l i s a t i o n of the two goals which received - 6 -most emphasis* namely the reduction of d i s p a r i t i e s i n employment and per capita income,^ A recent Economic Council of Canada report was s i m i l a r l y c r i t i c a l of the r e s u l t s of o f f i c i a l policy as well as the lack of progress made i n redefining an e f f e c t i v e regional development policy. The Quebec Federation of Labour came to the same conclusion as Stuart Holland with regard to subsidies, l e . that small and medium sized companies cannot meet the challenge of regional development, while fo r large enterprises "the government grants are g i f t s , pure 17 and simple". Indeed, there i s now a strong f e e l i n g that DREE has given up on the developmental aspect of i t s b r i e f , especially i n r e l a t i o n to the A t l a n t i c Provinces and has become more of an unemployment r e l i e f agency and p o l i t i c a l pork-barrel, useful to revive flagging L i b e r a l 18 hearts and subsidize corporate friends. I t i s David Lewis though who I think provides the best obituary f o r DREE-type programmest "Many corporations have benefitted from DREE windfal l s ; some have grown r i c h . There were even jobs created i n some cases. But when the r e s u l t s are measured against the public resources dissipated, the Regional Development Incentives Act programme i s not something the government can boast of ... the present programme must be fundamentally 19 changed," In f r a s t r u c t u r a l Investment, the only type of e x p l i c i t l y regional d i r e c t government intervention experienced on any scale i n Canada has had a s i m i l a r lack of e f f e c t . Because of the low l e v e l of development of many of the regions, many of the benefits have gone - .7 -straight out again i n the form of imported equipment and expertise, so that the programmes have achieved l i t t l e more than temporary unemployment r e l i e f . Government Sectoral investment on the other hand, (channelled by a monopolistic economy to only a few s p a t i a l l o c i ) and long term employment ( i e . i n o f f i c e complexes) have much greater d i r e c t employ-ment effects and also help i n the development of an expertise that provides the base f o r future development. I t seems then as i f governments have, i n e f f e c t , been p r a c t i -sing two kinds of regional development po l i c y . The f i r s t i s an e x p l i c i t one of incentives and i n f r a s t r u c t u r a l investment that has had l i t t l e success. The other i s very akin to the "meso-economic" s e c t o r a l l y -s p e c i f i c regional development p o l i c i e s that are presently being advocated by some European economists and e x p l i c i t l y practised i n 20 I t a l y . These p o l i c i e s have been effected l a r g e l y unconsciously i n most other countries and yet seem to be much more powerful determin-ants of s p a t i a l a c t i v i t y than most e x p l i c i t programmes t r i e d heretofore. Their irony i s they have largely benefitted the "wrong" regions, Alonso showed that US government expenditures were concen-trated i n central c i t i e s , the richest and fastest growing counties and the poorest counties, with the l a t t e r receiving the smallest share. However there was a clear q u a l i t a t i v e as well as quantitative s p l i t . The poorest counties' receipts were largely of the e x p l i c i t kinds judged in e f f e c t i v e i n government study mentioned e a r l i e r . Expenditures i n the richest and fastest growing counties, on the 20a other hand tended to be of the se c t o r a l l y induced kind. While i t would c l e a r l y be inaccurate to ascribe the r e l a t i v e economic l e v e l s of these areas s o l e l y to the types of government money received one may nonetheless reasonably assume some causal relationship between that spending and those l e v e l s . In summary then, every decision of what to spend money on carries with i t an i m p l i c i t one of where to spend i t . Neglect of t h i s truism has led to the paradoxical s i t u a t i o n described i n t h i s chapter where the p o l i c i e s of one arm of government ac t u a l l y conspire to help i n the defeat of the much weaker p o l i c i e s of another arm. Yet perhaps equally paradoxical i s that, despite the growing awareness that non-spatial p o l i c i e s nonetheless have s p a t i a l e f f e c t s , so l i t t l e hard research has been done i n the area. The e c l e c t i c Alonso, f o r example seems content to point to the need f o r a national strategy that would recognise these i m p l i c i t effects and then pass on to fresh fields-. S i m i l a r l y , the recognition that various national p o l i c i e s have d i f f e r e n t i a l s p a t i a l effects has been stressed by the 21 Economic Council of Canada as well as at the Western Economic 22 Opportunities Conference i n Calgary, But despite t h i s conviction no convincing analysis, either i n the above studies, or elsewhere, seems to have been done of the precise way these p o l i c i e s a f f e c t the s p a t i a l d i s t r i b u t i o n of a c t i v i t y or of how t h e i r " i m p l i c i t " e f fects may be harnessed i n a coherent national or p r o v i n c i a l strategy, "What we have discovered", comments a l a t e r ECC discussion paper "are largely unwarranted generalisations based on the weakest 23 of t h e o r e t i c a l and empirical evidence," ^ Yet the i d e n t i f i c a t i o n , - 9 -coordination and e x p l i c i t integration into government policy of these I m p l i c i t e ffects i s v i t a l f o r any meaningful regional planning. Indeed t h i s i s recognised to an extent i n some countries such as France, but more espe c i a l l y i n the Third World as i n Indonesia. In both these countries the regional development minis t r i e s are of the "umbrella" type with r e s p o n s i b i l i t y ( i n theory at least) to ensure the ove r a l l s p a t i a l coordination of government a c t i v i t i e s . Government expenditures, federal, p r o v i n c i a l and municipal account for over 50% of Canadian GNP and although much of t h i s i s s p a t i a l l y t i e d to a greater or lesser degree (Welfare and UIC payments, educational and hospital location etc.) much does not have to be. Procurements, bureaucratic l o c a t i o n , research funding etc., are th e o r e t i c a l l y footloose to an extent and, as we have seen, are often only t i e d i n fact by i n s t i t u t i o n a l factors or a passive acceptance of established patterns, Yet government as a monopoly supplier of some services and monopsonist of others i s i n a good position to use i t s enormous power i n conscious pursuit of a regional development policy to change location patterns. I t should be clear by now that i n f a i l i n g to follow such a course governments may be g u i l t y of a c t i v e l y exacerbating problems they are pledged to combat. For as Clayton perceptively points out, "Since defence spending, by a t t r a c t i n g an enormous number of people to Los Angeles, i s primarily responsible f o r the congestion of that area, i t i s also i n d i r e c t l y and i n part responsible f o r farthering the movement of middle and upper income families to the suburbs and the consequent s p i r a l of spreading slums, r i s i n g crime, highway congestion and smog," - 10 -Clea r l y , though, i t i s neither r e a l i s t i c nor desirable to attempt to force a l l government p o l i c i e s i nto formal regional cooperation. Geographical d i s t r i b u t i o n can only be one of the policy considerations taken into account and w i l l often not be the main one. For i f as Hansen comments, "the questions of s o c i a l j u s t i c e i n the d i s t r i b u t i o n of the f r u i t s of economic development are as important ... i n terms of regions as i n terms of s o c i a l classes , , 2^hen the converse i s also true. Thus geographical d i s t r i b u t i o n cannot be the unifying theme of a l l national p o l i c i e s . Yet only when government accepts that nearly a l l i t s actions have regional development implication and sets up mechanisms to monitor them w i l l i t be i n a r e a l position to make conscious trade o f f s ( i e , geographical equity Vs ef f i c i e n c y ) between policy alternatives and evolve a coherent s p a t i a l strategy. Then i t could go a l o t further towards ensuring that the r e s u l t s are those that are desired (or at least anticipated) and could, dynamically involve a much greater proportion of i t s e f f o r t than at present i n leading regional location patterns. The purpose of my thesis then i s to begin to address some of the problems raised i n t h i s chapter by looking at the i m p l i c i t e ffects of one p a r t i c u l a r aspect of the a c t i v i t y of the P r o v i n c i a l and Federal Governments i n B r i t i s h Columbia -- namely the location and regional development p o s s i b i l i t i e s of t h e i r o f f i c e employment. - 11 -Chapter Onej Notes 1. S.K. Holland, Capital Versus the Regions. (MacMillan, London, UK., 1976) , p . l 2 . W. Alonso, "Problems, Purposes and I m p l i c i t P o l i c i e s f o r a National Strategy of Urbanisation", i n W. Alonso and J . Friedmann, Eds., Regional P o l i c y 1 Readings i n Theory and Applications. (MIT, Cambridge, USA 1975) , P.641. 3 . J.L. Clayton, The Economic Impact of the Cold War, Sources and  Readings, (Hareourt, Brace and World, New York, USA, 1970) . Part I , Section 2 , "The Regional Impact of Defense Spending". 4. Clayton, p. 80 5 . Alonso, p. 647 6. US Department of Commerce, Economics Development Administration t Federal A c t i v i t i e s Affecting Location of Economic Development, (US Government, Washington DC, 1970) . 7. DREE, Regional Development Programmes, (DREE, Ottawa, 1973), P .*3 8. See, f o r example, M.H. Yeates and P. El l o y d , Impact of I n d u s t r i a l  Incentives« Southern Georgian Bay Region, Ontario, Geographical Paper, No. 44 (Energy, Mines and Resources, Ottawa, I 9 6 3 ) . 9 . Evidence given to the House of Commons Committee on Regional Development. Quoted by David Lewis i n , Louder Voices, The Corporate  Welfare Bums, (James Lewis and Samuel, Toronto, 1972) , P. 70. For the reasons behind t h i s conclusion see David Springate, Regional Incentives  and Private Investment, (C.D, Howe Research I n s t i t u t e , Montreal, 1973) . 10. Second Report from the Expenditures Committee, Regional Development  Incentives, (HMS0, London, UK, 1974). Minutes of Evidence and Appendices, 11. Quoted i n S.K. Holland, The S o c i a l i s t Challenge, (Quartet, London, UK, 1975) , p . 105. See also R.J, Barnet and R.E. Muller, Global Reach, The Power of the Multinational Corporations, (Touchstone, New York, USA, 197^)» P. 127 for s i m i l a r figures, 12. Holland, S o c i a l i s t Challenge, op, c l t . , p . 110, quoting evidence of Univak, 1 3 . Findings of W.F, L u t t r e l l ' s study, Factory Location and I n d u s t r i a l  Movement, (Cambridge U.P,, I 9 6 2 ) , Quoted i n Holland, Capital Versus the Regions, op, c i t . , p . 218. - 12 14. Holland, S o c i a l i s t Challenge, op. c i t . , p. 114 15. T.N. Brewis, "Regional Economic P o l i c y i n Canada", i n N.M. Hansen, Ed., Public P o l i c y and Regional Economic Development, The Experience of  Nine Western Countries, (Ballinger, Cambridge, Mass., USA, 1974). 16. J , Atcheson, D. Cameron, D. Vardy, Regional and Urban P o l i c y i n  Canada, Discussion Paper No. 12 (Economic Council of Canada, Ottawa, T974J7 17. Study quoted by Robert Chodos, "The Great Canadian DREE Machine", i n R. Murphy and M. Stanowiz, Eds., Corporate Canada, Fourteen Probes  into the Workings of a Branch-Plant Economy, (James Lewis and Samuel. Toronto, 1972). 18. See Chodos, op. c i t . , and David Lewis op. c i t . 19. David Lewis, op, c i t , , p. 71 2 0 . See, f o r example, Kevin A l l e n , "Regional Intervention", i n Stuart Holland, Ed., The State as Entrepreneur, (Weldenfeld and Nicolson, London, UK, 1972) , and also Holland's other works, quoted above, for a f u l l e r explanation of t h i s l i n e of thought. 2 0 a . Alonso, "Problems, Purposes" etc., op. c i t . , p. 640 2 1 . ECC, F i f t h Annual Review, (ECC, Ottawa, 1968, Chapter 7 ) . 2 2 . Western Economic Opportunities Conference, (WEOC), J u l y 24 - 26 1973» Calgary. Papers submitted j o i n t l y by Premiers Blakeney, Barrett, Shreyer and Lougheed on, Transportat1on, Agriculture, Capital Financing  and Regional Financial I n s t i t u t i o n s and Economic and I n d u s t r i a l  Development Opportunities. 2 3 . D. Cameron, D.L. Emerson, N.H. Lithwicke, The Foundations of  Canadian Regionalism, Discussion Paper No. 11 , (ECE, Ottawa, 1974) , p .47 24. Clayton, op. c i t . , p. 73 2 5 . N.M. Hansen, French Regional Planning, (Edinburgh, UP, UK, 1968) , p . 3 . - 13 -Chapter Two* The Changing Structure of the BC Economy. I . The Influence of Ideas on P o l i c y R.P, Mirsa has stated that "Regional development can he accom-plished only i f there e x i s t regional i n s t i t u t i o n s which are receptive to what i s going on at the national l e v e l . Y e t our perception of what i s "going on", or more importantly, what we expect to go on i n the future i s inevitably based on the experiences and theories of the past. This would present no problem i f society were changing quite slowly, i f we had an accurate up-to-date 'data picture' of our society, or i f ideas were quick to change i n response to changed circumstances. However of these three conditions none are f u l l y met today and probably never w i l l be. As we s h a l l see l a t e r , available evidence indicates that quite rapid and dras t i c changes are taking place i n the employment structure of the modern economy, the exact nature of which i s to some degree hidden by the way s t a t i s t i c s are compiled i n Canada and by the lags and gaps i n t h e i r c o l l e c t i o n . For example, the most complete set of information presently available i s the 19?1 census, and on t h i s I w i l l of necessity b u i l d much of my argument, yet subsequent surveys and model predictions (which are, of course themselves generally based on past trends) indicate that, i n BC at l e a s t , s i g n i f i c a n t reverses to the trends of the previous decade have taken place between 19?1 and the present day and are being at best imperfectly monitored. However, more than the speed of change or s t a t i s t i c a l inadequacy i t Is the strength of ideas that makes us prisoners of the past when we look to the future f o r i t i s by means of ideas or theories that we interpret mute facts and use them to assess the changes taking place - 14 -a i n society. D i f f e r i n g theoretical perspectives are, of course, the reason why two competent people can come to widely dif f e r e n t con-clusions a f t e r analysing the same set of data. Milton Friedman and John Kenneth Galbraith both l i v e i n the same world though they des-cribe very di f f e r e n t ones. Yet while some ideas such as those of Friedman and Galbraith may be competitive and hotly disputed there are others, loosely c l a s s i f i e d as conventional wisdoms, that come close to Edmund Burke's d e f i n i t i o n of prejudice and which possess both a great d u r a b i l i t y and u n i v e r s a l i t y of acceptance. We saw f o r instance i n the l a s t chapter how the conventional wisdom of neo-c l a s s i c a l theory under-pinned the regional policy e f f o r t s of both social-democratic and conservative governments at a time when i t had been overtaken by the i n s t i t u t i o n of multinational oligopoly. The former were generally c r i t i c a l of some of the workings of the free enterprise system and were committed to reform. Yet t h e i r unquestion-ing acceptance of the basic l a i s s e r - f a i r e tenet obscured t h e i r view of the r e a l problem and thus prevented them from developing an effective regional development p o l i c y . S i m i l a r l y , the t r a d i t i o n a l assessment of North American society as ' i n d u s t r i a l ' and the consequent view of manufacturing as the engine of growth i n the modern economy have given r i s e to the concentration of regional policy i n i t i a t i v e s on the a t t r a c t i o n of secondary employ-ment. The strength of t h i s ' i n d u s t r i a l base' view of the economy diverted attention away from the regional implications of the profound changes that have been taking place i n the composition of the labour - 15 -force, notably the s h i f t from goods to services. Only recently has the view been gaining ground that the growth of the service sector, a phenomenon that has been acknowledged for some time, has funda-mentally altered some of the relationships on which present p o l i c i e s are based, 2 In h i s book "The Coming of Post-Industrial Society" , Daniel B e l l postulates that three types of society e x i s t i n the world today, ( p r e - i n d u s t r i a l , i n d u s t r i a l , post-Industrial), each representing d i f f e r i n g stages on an evolutionary "trajectory". In p r e - i n d u s t r i a l society, which B e l l reminds us i s " s t i l l the condition of most of the world today", the labour force i s engaged overwhelmingly i n the extractive i n d u s t r i e s , mining, forestry, f i s h i n g and above a l l , agriculture, " L i f e i s primarily a game against nature," I n d u s t r i a l s o c i e t i e s , p r i n c i p a l l y those grouped around the North A t l a n t i c l i t t o r a l plus the Soviet Union and Japan, are goods producing s o c i e t i e s , " L i f e i s a game against fabricated nature, with the dominant occu-pational types being the engineer and the semi-skilled worker, "the human cog between machines," Pos t - i n d u s t r i a l society i s based on services "Hence i t i s a game between persons,....the central person i s the professional f o r he i s equipped by h i s education and t r a i n i n g , to provide the kinds of s k i l l which are increasingly demanded." The word "services" however, encompasses a number of d i f f e r e n t occupations and i n the transformation of i n d u s t r i a l to post-industrial society each has i t s time of preeminence. I n i t i a l l y service growth takes place as a part of the process of i n d u s t r i a l i s a t i o n , f i r s t i n - 16 -the expansion of transport and public u t i l i t i e s , of trade and d i s t r i b u t i o n and l a t e r of finance, r e a l estate and insurance. As national income r i s e s though, demand s h i f t s from goods increasingly towards metaphysics such as l e i s u r e and personal services, e s p e c i a l l y health and education because i n the case of the l a t t e r academic ,credentialisation' i s a prerequisite f o r the new professional arche-type, " F i n a l l y the claims f o r more services and the inadequacy of the market i n meeting people's needs for a decent environment as w e l l 3 as better health and education lead to the growth of government" p a r t i c u l a r l y , i n the Canadian context, at the p r o v i n c i a l l e v e l where such needs have to be met. As suggested by the t i t l e and s u b t i t l e of h i s work ("A Venture i n Social Forecasting"), B e l l sees the most advanced " i n d u s t r i a l " nations, led by the United States, as being i n the midst of t r a n s i t i o n i n t o the post-industrial phase of t h e i r development — a t r a n s i t i o n as yet imperfectly r e a l i s e d or anticipated. Several European writers however have warned that "generalisations about 'post-industrial' society, based largely on t r a n s a t l a n t i c experience, should be treated with caution" and point to what they perceive to be a slowing down of the growth of service and white-collar employment and the con-tinuing strength of manufacturing as a source of employment,^ Further, Nlcos Poulantzas maintains that the strength of American domination of the international c a p i t a l i s t system precludes the evolution of European society into the post-industrial phase as the types of job i d e n t i f i e d by B e l l as central to post-industrialism, namely executive and - 17 -professional functions, are increasingly under US c o n t r o l . w Similar caution must be exercised when looking at the r e l e -vance of B e l l ' s ideas to the Canadian economy and t h e i r s p a t i a l implications. This i s e s p e c i a l l y true f o r BC given i t s position as a "periphery of a periphery". In many respects the BC economy resembles B e l l ' s " p r e - i n d u s t r i a l " type with i t s heavy emphasis on natural resource extraction , and a convincing application of the Gunder Frank dependency model ( i n i t i a l l y developed i n respect to the Third World) can be made to explain the province's position i n the international g economy. Thus the province has t r a d i t i o n a l l y served as a source of raw materials f o r metropolitan markets and as a market for t h e i r products. The i n d u s t r i a l structure of the province has centred around primary production and processing ( i e , i n the form of pulp m i l l s ) and the l e v e l of manufacturing employment has been lower than i n the Canadian i n d u s t r i a l heartland of central Ontario and Quebec. A further consequence of BC's hinterland position i s the domination of i t s economy by outside interests not only from Central Canada but also from Europe, Japan and especially the United States, which can be expected to have s i m i l a r consequences for i t s future occupational evolution as Poulantzas i d e n t i f i e d f o r Europe. I I . The Sectoral Evolution of the BC Economy The above notwithstanding however, i t i s noteworthy that both the Canadian and BC economies do exhibit some of the "dimensions" B e l l postulated as part of p o s t - i n d u s t r i a l i s a t i o n , namely a s h i f t i n employment from the production of goods to the provision of services and a change i n occupational d i s t r i b u t i o n leading to the preeminence - 18 -of white c o l l a r work i n general and professional and technical work i n p a r t i c u l a r . Thus various predictions of the Economic Council of Canada anticipate a decline i n employment i n primary and manufacturing industries to between 23 .5$ and 24.9$ i n 1980, from over 38% i n i 9 6 0 and 32$ i n 1970. Table I I . I shows a s i m i l a r picture f o r BC. The province's economy has grown very r a p i d l y since I96I (with the labour force almost doubling) and a l l sectors show high rates of absolute growth. However i f we look at the d i s t r i b u t i o n of r e l a t i v e shares, those of the (non-agricultural) primary and manufacturing industries show consistent decline. Construction, generally Included i n the secondary sector s i g n i f i c a n t l y advanced as a proportion of the labour force, but the combined primary and secondary sectors s t i l l showed an over a l l decline from 31.7% i n I96I to 28.7% i n 1976. A l l other industries, i e , the service sector, increased t h e i r share of the labour force except for the category "Public Administration and Defence". However the declining r e a l share of t h i s l a t t e r industry obscures the fact that the broad aggregate conceals two opposing trends, as shown i n Table I I . I I . Thus P r o v i n c i a l and Federal administration i s seen as s i g n i f i c a n t l y increasing i t s share over the l a s t decade and a half while defence and l o c a l government stagnated. D i f f i c u l t i e s of s t a t i s t i c a l comparison make t h i s table somewhat less r e l i a b l e than the previous, but i t i s s u f f i c i e n t to demonstrate the general trend. In pa r t i c u l a r , census figures and figures kept by the governments them-selves do not always agree. Thus for 1971 the Census shows 16,385 - 19 -Table I I . I . Sectoral Composition of the Labour Force, I96I - 1976. I96I 1971 ±276 No. % of declared l . f . No. % of declared l . f . No. % of declared l . f . Labour Force ( l . f . ) 577,648 910,090 1,135,000 Declared L.F. 560,881 838,430 1,129,000 Primary Sector ( e x c l , agric.) 33.409 5.8 46,235 5.5 50,000 4 .4 Manufacturing 112,672 19 .5 146,925 17 .5 186,000 16.3 Construction 37.146 6.4 63,905 7.6 91,000 8.0 Transport, Communications & U t i l i t i e s 63,006 10.9 87,130 10.3 117,000 10.3 Trade 99,625 17 .2 142,270 16.9 210,000 18.5 Finance, Real Estate & Ins. 22,642 3.9 41,730 4.9 64,000 5 .6 Community, Bus. & Personal Service 124,098 21,5 225,600 26.9 317,000 27.9 Public Admin,, & Defence 45,801 7.9 56,575 6.7 76,000 6.5 Unspecified or Undefined 16,767 2.9* 71.660 7.9* 6,000 0.5* # Percentage of t o t a l Labour Force. Source: I96I and 1971» Census I 9 7 6 : Labour Force Survey 20 -Table I I . I I . Evolution of Public Sector Employment i n B.G.i 1971-1976. Pr o v i n c i a l Govt. Federal Govt. Census d e f i n i t i o n Public Services Employment Act d e f i n i t i o n . 1961 No. % of declared L.F. 6,652 1.1 9,672 1.7 12,474 2.2 1271 No. % of declared L.F. 12,870 1.5 16,385 1.9 21,512 2 .5 15#390 1.8 11,865 1.4 1276 No. % of declared L.F. 32,123 2.84 N.A. 25,852* 2.57+ N.A. N.A. Defence 17,737 3.1 Local Govt. 11,827 2.1 * 1975. + % of 1975 Labour Force of 1 ,009,000 Sourcest I96I and 1971 Census 1976J BC Government Employee Relations Bureau I96I1 C i v i l Service of Canada Report 1971 & 1975» Federal Government Employment B u l l e t i n 1975* Labour Force Survey - 21 -non-defense public employees to be i n BC, The Federal Public Service Commission's (PSC) Annual Review f o r that year, however, shows some 21,512 people employed under the Public Service Employment Act (PSEA), The difference i s probably accounted for by the fact that DND (Department of National Defense) employees, as opposed to m i l i t a r y personnel are covered by the PSEA and therefore counted by the PSC i n t h e i r version of government employment, but c l a s s i f i e d under •Defense* by the Census, To ensure consistency and comparability as f a r as possible, I use S t a t i s t i c s Canada census d e f i n i t i o n s wherever possible, but as census figures f o r 1976 are not yet a v a i l a b l e , I have used the PSC figures f o r 1976 and included the t o t a l s under both d e f i n i t i o n s f o r 1961 and 1971. I t i s f a i r to say that they show that the Federal administration s i g n i f i c a n t l y increased i t s share of the labour force during the 60s and has at least maintained that share since then. Figures supplied to me by the Government Employee Relations Bureau show P r o v i n c i a l government employment f o r 1976 to have consisted of some 23,385 established positions and some 8,738 'temporary f u l l time' ones. The 'temporary' i n the l a t t e r i s rather misleading. They are i n fact permanent positions that have not been classed as 'established' f o r various reasons, primarily the desire of successive governments to keep down the perceived, i f not r e a l , size of the public service, BC public service figures have h i s t o r i c a l l y been notoriously untrustworthy f o r t h i s reason. Even today S t a t i s t i c s Canada does not include figures f o r BC i n i t s annual surveys of 22 P r o v i n c i a l Government employment because of the penchant of the government f o r hiding the r e a l size of i t s Public Service through such means as 'payments to consultants' to people who are i n fact permanent employees. Thus any attempt to chart the growth of the Public Service cannot have any great claims to accuracy. I t i s uncertain, f o r instance, how f a r the census figures can be r e l i e d upon to reveal t h i s 'hidden' employment or whether the deceits outlined above have now been stopped, as I have been assured. However, the figures c e r t a i n l y reveal as a general trend a rapidly expanding P r o v i n c i a l public service, an observation supported by my sources i n the Government Employee Relations Bureau, Figure I I . I , based on the information contained i n the tables, i s a graphic representation of the r e l a t i v e growth rates of the labour force i n various Industries between I 9 6 I and 1976, I t confirms that service industries i n general experienced higher growth rates than did the labour force as a whole and much higher rates than the primary and manufacturing sectors. I t i s interesting to note that the lowest service growth rates were recorded for the transport and u t i l i t i e s and fo r the trade sectors, sectors whose most rapid growth B e l l i d e n t i f i e d as being associated with the f i r s t stages of service development. The more rapi d l y growing areas, personal and business services, finance, insurance and r e a l estate and more dubiously i n the l i g h t of the fore-going, P r o v i n c i a l administration, he associated with l a t e r phases of the evolution towards p o s t - i n d u s t r i a l i s a t i o n . Only the rapid growth of the construction industry disturbs the unanimity of the trend - 7 ^ 22a 23 -towards a more service based labour force. In the foregoing tables and i n the subsequent ones on occu-pational structure, the various percentages of the labour force account-ed f o r by each industry or occupation have been calculated not on the t o t a l labour force but on the 'declared' labour force. That i s to say that the categories 'unspecified' and 'undefined* have been ignored for the purpose of these calculations. This has been done because the enormous swings i n these 'catch-all' sections, would, i f included, d i s t o r t the underlying picture, A more accurate picture of the evolution of the economy than the one which I have given could have been obtained by looking at the evolution of employment rather than of the Labour Force, but Labour Force figures are the only ones available over the whole of the f i f t e e n year period. Thus one must keep i n mind that these figures ignore any sectoral or occupational d i s e q u i l i b r i a i n unemployment rates, I I I , The Occupational Evolution of the BG Economy» The  Importance of Office Employment Along with changes i n the sectoral structure of the advanced economies there have also been occurring changes i n occupational structure, p a r t i c u l a r l y concerning the development of new patterns of job opportunities, " T y p i c a l l y , these jobs have a technological bias — l i k e systems analysts and research and development experts and are associated with the control of increasing s o c i a l and economic complex-i t y . " ^ Thus studies i n Ireland, B r i t a i n and America^"*, among others reveal - 24 -that the fastest growing occupations are those involved i n the handling, processing and transmission of information f o r which an of f i c e i s the t y p i c a l place of work. However while i t has been possible to i d e n t i f y o f f i c e employment as an important and dynamic part of the modern economy, i t has been rather more d i f f i c u l t to define i t i n terms compatible with census d e f i n i t i o n s . Office occupations: are included i n the d e f i n i t i o n of white c o l l a r workers used by the International Labour O f f i c e , but while t h i s c l a s s i f i c a t i o n encompasses professional, t e c h n i c a l , admin-i s t r a t i v e , executive, managerial and c l e r i c a l workers i t also includes sales workers. Some of those i n the l a t t e r category such as se c u r i t i e s salesmen and insurance salesmen are indeed o f f i c e workers but the 12 vast majority such as sales clerks are not. Further, although the increase i n the number of o f f i c e workers has been largely due to the expansion of the service sector, such as the public service, the professions and banking and finance, i t would be incorrect to d i r e c t l y l i n k the two. Some service industries such as the u t i l i t i e s have a majority of blue c o l l a r employees, BC Hydro, for example, has a t o t a l of 12,223 employees, of whom only 5 ,22? are classed as salaried while the remaining 6,996 are wage employees involved i n physical rather than information processing 13 a c t i v i t i e s . Conversely some of the secondary industries include a large proportion of o f f i c e workers, and i n B r i t a i n i n the 1950s "growth of o f f i c e employment accounted for 9 out of every 10 extra 14 jobs i n manufacturing industries," A d e f i n i t i o n of o f f i c e employ-- 25 -merit based on Jean Gotman's 'Quaternary' sector has s i m i l a r defects. The B r i t i s h Census produced national d e f i n i t i o n of o f f i c e employment i n I 9 6 8 , but " P r i o r to t h i s time i t was necessary to c l a s s i f y o f f i c e occupations according to the Individual researcher's 16 requirements,'' In the absence of any standard Canadian d e f i n i t i o n t h i s i s the procedure I s h a l l follow. Taking John Goddard's general concept of o f f i c e a c t i v i t y as r e f e r r i n g to " i n d i v i d u a l jobs that involve dealing with information, 17 ideas or knowledge" as a s t a r t i n g point, my d e f i n i t i o n of o f f i c e employment includes the following census categories! 1. Managerial, Administrative and Related Occupations ( S t a t i s t i c s Canada Code 11.) 2 . Occupations i n the Natural Sciences, Engineering and Mathematics (Code 2 1 ) . 3 . Occupations i n the S o c i a l Sciences and Related Fields (Code 2 3 ) . 4. Teaching Occupations i n U n i v e r s i t i e s and other I n s t i t u t e s of Further Education (Code 2 7 , sections 2711, 2719, 2 ? 9 l , 2792, 2793, only) 5 . A r t i s t i c , l i t e r a r y , recreational and related occupations (code 3 3 ) . 6. C l e r i c a l Workers (Code 41) Code 11 could roughly be said to cover executive and admin-i s t r a t i v e jobs (managers, c i v i l servants e t c ) Codes 2 1 , 2 3 , 33 and the 27 subsections encompass the professional and technical spheres and Code 41 c l e r i c a l occupations. This d e f i n i t i o n i s broadly that used by the Regional Plan Assoc-17 i a t i o n of New York i n t h e i r study , which defined as o f f i c e workers - 26 -a l l white c o l l a r workers except those engaged i n sales. School teachers and health workers have also been excluded and the d i f f i c u l t y of separating doctors and surgeons from other health workers further necessitated t h e i r exclusion. S i m i l a r l y "Occupations i n r e l i g i o n " have not been counted. I f B e l l ' s concept of a post-industrial society i s to have any relevance to BC one would expect o f f i c e employment to be one of the fastest growing types of employment along with health and education, r e f l e c t i n g the growing importance of administration and professional q u a l i f i c a t i o n i n the new order. Table I I . I l l traces the occupational composition of the BC labour force between I 9 6 I and 1976 while Figure I I . I I represents graphically the proportions of the labour force accounted f o r by selected occupations. Figures I I . I l l and II.IV show the r e l a t i v e growth of selected occupations f o r 1961-1971 and I 9 7 I - I 9 7 6 respect-i v e l y . The figures show that contrary to experience i n other countries o f f i c e employment grew only very slowly i n the s i x t i e s and declined s i g n i f i c a n t l y as a proportion of the labour force during t h i s period. The fastest growing occupations were construction, health, sales and teaching. Primary and secondary occupations, ( i e . primary processing, construction and materials handling) as a whole declined over the period from y$> of the labour force to 31%, Thus during the decade there was an occupational s h i f t i n favour of some of the groups that B e l l i d e n t i f i e d but not i n favour of others. Inconsistencies between - 27 -Table I I . I l l , Occupational Composition of Labour Force, 1961-76. Selected Occupations. I 9 i i 1271 122k No. % of stated L.F. No. % of stated L.F. No. % of stated L.F. Labour Force, Total 577,648 910,090 1 ,135,000 Labour Force, Stated Occs. 560,461 822,330 1 .135.000 Office 156,877 27 .9 222,255 2 7 . 0 328,334 29.08 Sales 42,175 7.5 96,100 11.7 133,000 11.8 Service 78,199 13.9 119.430 14.52 161,000 14 .2 Primary 22,504 4 . 0 29,215 3.55 27,000 2 . 4 Processing 105,437 18.8 116,660 14.18 161,000 14.2 Construction 24 ,366 4 . 3 4 68,850 8 .37 101,000 8 . 9 Transport 37,561 6 . 7 39.715 4.82 55,000 4.871 Materials handling 38,337 6.8 ^2,545 5 .17 50 ,000 4 . 4 Agriculture 24 ,405 *.3 27,755 3.37 28 ,000 2.5 School teaching 14,066 2.5 24 ,000 2.91 37,590 3 . 3 Health 14,797 2 .6 34,040 4.13 47 ,066 4 . 2 Source* I96I and 1971 - Census 1976 - Labour Force and Canada Manpower FOIL L i s t i n g s -1/ ,1 27a ftrunt n'1 27c i i l i N mi - 28 -the I96I and 19?1 censuses prohibit a more detailed examination of c o n f l i c t i n g trends that may be hidden within the general ' o f f i c e ' category. I t appears f o r example that a number of occupations c l a s s -i f i e d as administrative or professional i n I 9 6 I are now considered c l e r i c a l . Thus while the aggregate figures f o r the t o t a l o f f i c e grouping are comparable, those f o r sub-categories are not. The high growth rates of health and education were unable, because of the small absolute size of these occupations, to prevent a decline of the t o t a l labour force share f o r the o f f i c e - professional occupations from 33% to 32,5%» The r e a l occupational s h i f t over the decade then was towards lower l e v e l service and sales jobs. Proponents of a post-industrial society i n BC could f i n d l i t t l e support i n these figures. Rather they tend to reinforce the view of the p r o v i n c i a l economy as a 'truncated' hinterland much of whose higher l e v e l func-tions are carried on elsewhere, especially i n the case of the private sector. Thus while a national s h i f t from goods to services i s f e l t at the direct services (health, education, sales and other services) l e v e l i n the province i t i s absent i n the administrative area. The figures f o r the years I 9 7 I - I 9 7 6 however and the growth trends as shown i n Figure I I . I I show a markedly d i f f e r e n t picture than f o r the previous decade. In some respects there was a pronounced stab-i l i s a t i o n of the labour force. The fact that processing, transport, health and sales a l l grew at roughly the same rates as the labour force as a whole arrested the previously rapid decline of the f i r s t two and the increase of the l a t t e r two. Processing, e s p e c i a l l y , - 29 -experienced a s i g n i f i c a n t increase i n i t s growth rate ( i t grew only % between I96I and 1971, but 38% between 1971 and 1976), l a r g e l y as a re s u l t of extensive new developments i n the processing of primary products. Construction continued to grow rapidly. Materials handling and primary occupations declined, the l a t t e r absolutely as well as r e l a t i v e l y . While school teaching was the fastest growing occupation, a si g n i f i c a n t change occurred i n the area of o f f i c e work. From being the slowest growing of the service occupations during the s i x t i e s , with a rate of increase well below that of the labour force as a whole, i t moved up to become the second fastest growth area, consider-ably above the o v e r a l l aggregate rate. In fact o f f i c e occupations considerably advanced t h e i r r e l a t i v e share of the labour market over I96I l e v e l s , despite having l o s t ground during the s i x t i e s . Even more important../, however i s the fact that the disaggregated figures f o r the o f f i c e area show that while c l e r i c a l occupations grew r e l a t i v e l y slowly, the most rapidly growing occupations were the administrative and the professional and technical. This i s shown i n Table II.IV Office Occupation Sub-Groups i n B.Ct 1971-1976 1971 1976 No. % of o f f i c e No. % of o f f i c e % change employment employment Administrative 32,570 14.6 68,453 20.8 109 & Executive Professional & Technical 4?,9^5 21.5 76,881 23 . 4 60 C l e r i c a l 141,740 6 3 . 7 183,000 55.7 29 T o t a l 222,255 - 328,334 -- 30 -Source for Table on previous pages 1971» Census 19768 Labour Force Survey and Canada Manpower FOIL L i s t i n g The figures indicate then that rapid changes have taken place i n the f i r s t h a l f of t h i s decade. Processing employment has s t a b i l i s e d i t s share of the labour force, but the most s i g n i f i c a n t trend i s the s h i f t towards a post-industrial occupational structure, p a r t i c u l a r l y as re f l e c t e d i n the rapid advance of higher echelon o f f i c e occupations. This trend towards increasing prominence of administrators and professionals has been strengthened by the fact that society has undergone other transformations that both accommodate and generate the demand for o f f i c e work and the increased handling of information. This i s especially evident i n the f i e l d of Education, as shown i n Table I I . V I . Table I I . VI, F u l l Time Students ,ln BC U n i v e r s i t i e s and Public  Colleges, (Excluding BCIT) Universit i e s Colleges Total 1960/61 13,000 - 13,000 1967/68 24,861 2,265 27,126 197V75 30,525 10,187 40,712 Percentage increase 1960-7^ 13*$ 213% Source: I960/6I Dept. of Education Reports 1967/68 1< Most of these people were being educated towards higher echelon o f f i c e type work, or work i n the teaching and health f i e l d s . - 31 -Summary In t h i s chapter I have attempted to follow Mirsa's advice to i d e n t i f y what i s "going on" i n t h i s province as a prelude to looking at the regional impacts of the trends and the role of government o f f i c e employment. The movement of US society towards post-i n d u s t r i a l i s a t i o n has been convincingly postulated by Daniel B e l l and despite the very d i f f e r e n t economic base of the BC economy i t seems as though some aspects of post-industrial structure are becoming evident here, i f rather imperfectly. Thus there i s a general and long term s h i f t of employment away from goods to services. The continued strong growth of construction, which goes against t h i s trend i s a r e f l e c t i o n of the province's status as a resource supplier. As large scale c a p i t a l intensive resource and energy projects become more and more common, the demand for construction labour w i l l remain high, while the productive operation of these projects w i l l employ r e l a t i v e l y few people. The Hat Creek Coal Project, f o r example, w i l l have a peak construction labour force of nearly 3*000 but the annual 19 operating labour force w i l l be about 700 - 800 , P a r a l l e l i n g the sectoral changes i n the economy there has been an occupational s h i f t with o f f i c e employment In general, but more expecially the administrative and professional areas growing very rapidly. Numerous surveys have revealed that BC's economy i s dominated by the forestry and mining sectors, and the dominant i n d u s t r i a l a c t i v i t y revolves around the production f o r export of raw or semi-processed - 32 -materials . The province i s , as has been mentioned, a dependent 21 economy controlled from outside and probably suffering a consider-able, (though uncounted) long term c a p i t a l drain to i t s external owners. Yet i t i s evidently one of the more fortunate of the less developed regions i n that despite i t s loss of c a p i t a l and under-developed i n d u s t r i a l structure i t s t i l l gains s u f f i c i e n t payment from primary exports to maintain high income l e v e l s . Indeed, i n d u s t r i a l earnings i n the province are the highest i n Canada, some 30$ above the national average and the per c a p i t a l income i s the second highest 22 a f t e r Ontario . This high l e v e l of income has evidently led to the same pressures f o r post-industrial services here as elsewhere i n North America. Thus we have a dichotomy between the economic base of the province and i t s occupational structure. Output i s dominated by an underdeveloped i n d u s t r i a l structure but employment i s increasingly taking on a post-industrial configuration. I t Is Interesting to note however that rather than the pro-fessional and technical classes becoming pre-eminent as B e l l predicts, i n BC's case t h i s position should be attributed to the executive and administrative groups. The future strength of these trends w i l l be considered i n Chapter 4, Notes to Chapter I I 1. R.P. Mirsa, "The Diffusion of Information i n the Context of Development Planning" i n T. Hagerstrand and R. Kuklinsky, Eds., Information Systems f o r Regional Development, (Land Studies i n Geography, Series B, No, 37, Univ. of Lund, Sweden), p. 126 2. D. B e l l , The Coming of Post I n d u s t r i a l Society, A Venture i n  Social Forecasting, (Basic Books, New York, USA, 1976). 3. This and previous quotes from B e l l , pp. 126-128. 4. Anon,, The Europe Report, A New Society Reader, section e n t i t l e d "Work", (New Society, London, Eng., 1975). 5 . As well as the above report see f o r example, A. Giddens, The Class  Structure of the Advanced Societies, (Hutchison, London, Eng., 1973), Chapters 10 and 11; J . Goddard, Office Location i n Urban and Regional  Development, (Oxford U.P., 1975), Chapter 1 and The Economist, "Who w i l l Rule Europe i n 1995?", (Nov, 29, 1975). 6. See N.; Poulantzas, Classes i n Contemporary Capitalism, (New Lef t Books, London, Eng., 1975% E s p e c i a l l y Part I , Section 4 , "The Imperialist Social Division of Labour and the Accumulation of C a p i t a l " , 7. "Forestry contributes 44% to the t o t a l value added by a l l primary and manufacturing industries i n the Province and mining and primary metal processing account f o r another 11%," DREE, Climate f o r  Development Western Region, (DREE, Ottawa, 1976), p. 71 8. See P. Resnick, "The P o l i t i c a l Economy of B r i t i s h Columbiai A Marxist Perspective", i n P. Knox and P. Resnick, Essays i n BC  P o l i t i c a l Economy, (New Star, Vancouver, 1974). 9. Economic Council of Canada, Ninth and Eleventh Annual Reviews, (ECC, Ottawa, 1972 and 1974.) 10. J.B. Goddard, "Office Employment, Urban Development and Regional P o l i c y " , i n M. Bannon, Ed., Office Location and Regional Development, (An Foras Forbartha, Dublin, E i r e , 1973), P. 21 11. See f o r example M. Bannon, "Office Location and Regional  Development i n Ireland", i n M. Bannon (1973), op. c i t . , J.B. Goddard (1975), op. c i t . , P.W. Daniels, Office Location, ( B e l l , London, Eng., 1975), Chapter 3 l D. B e l l , op. c i t . , Introduction; and R.A. Armstrong and B. Pushkarev, The Office Industry: Patterns of Growth and Location, (MIT, Cambridge, USA, 1973.) " - 3 4 -12. Thus f o r 1976, the Labour Force Survey shows some 133,000 persons to be engaged i n sales occupations. The Canada Manpower FOIL (Forward Occupational Imbalance L i s t i n g ) indicates that of those a maximum of 11,000 could possibly be c l a s s i f i e d as o f f i c e workers. Definitions are always at t h e i r most tenuous at t h e i r margins and the inclu s i o n of some 5»000 r e a l estate salesmen, f o r example, i n the above figure could legitimately be questioned, as could that of a proportion of the nearly 4,000 insurance salesmen. The department store s a l e s g i r l and the ICBC salesman are performing e s s e n t i a l l y the same function, 13. Figures supplied by BC Hydro Personnel Department, 14. P. Cowan et, a l . , The Offices A Facet of Urban Growth, (Heine-mann, London, Eng., 1969), P. 195. 15. J . Gottraan, "Urban C e n t r a l i t y and the Interweaving of Quaternary A c t i v i t i e s " i n E k i s t i c s , (Vol. 29, 19?0). p. 325 16. P.W. Daniels op. c l t . , p. 27 17. J.B. Goddard (1975) op. c i t . , p. 3 18. R.A. Armstrong and B, Pushkarev op. c i t . 19. Figures supplied by Strong, H a l l and Associates, Economic Consultants, f o r the Hat Creek project. 20. DREE, Climate f o r Economic Development, 1976 op. c i t . 21. See f o r example "Canadian Forum", A Citizens Guide to the Gray Report, (New Press, Toronto, 1971), Chapter 4 and Table 5 , p, 32. Gray gives the following figures f o r the percentage of taxable Corporate income earned i n BC by non-Canadian owned companies! Forestry 25%, Mining 26%, Manufacturing 44.1%, Construction 42.6%, Trade 30%. This i s almost c e r t a i n l y a gross underestimate of the true foreign ownership position as i t i s notoriously easy f o r m u l t i -national companies to minimise t h e i r taxable income i n r e l a t i v e l y high tax countries through transfer p r i c i n g between subsidiaries. Further, these figures are now 10 years out of date and foreign penetration of the economy i s widely considered to have increased s i g n i f i c a n t l y since then. 22. 1975 per capita incomes! Ontario - $6,431 BC - $6,272 Alberta - $6,064 Sources S t a t i s t i c s Canada National Income and Expenditure Accounts, S t a t i s t i c s Canada, Ottawa, 1976. - 35 -Chapter I I I . The Regional D i s t r i b u t i o n of Office Employment In the l a s t chapter we saw that o f f i c e occupations have remained the largest section of the labour force since I 9 6 I , and since 19?1 have been growing extremely quickly especially i n the upper-echelon administrative and professional categories. Government administration, especially P r o v i n c i a l government, has also been growing much more rapid l y than the labour force as a whole. Thus public administration i s not just an increasingly important sector but i t i s also heavily represented i n the fastest growing occupations. This would seem to indicate that government o f f i c e employment p o l i c i e s couid have a c r i t i c a l e ffect on the evolution of the Province's s p a t i a l economy. I . A Regional Occupation Factor The BC settlement system, l i k e i t s economic base, i s more t y p i c a l of an underdeveloped than a mature economy. The d i s t r i b u t i o n of population and labour force i s highly skewed with 49,8% of the 19?1 labour force l i v i n g i n only one Regional D i s t r i c t «— Greater Vancouver. The second largest region, the Capital Regional D i s t r i c t , had 9*25% and the t h i r d , Thomson-Nicola, had only 3*38%. This overwhelming concentration of people and opportunity has development implications of i t s own, but there are further i n e q u a l i t i e s hidden within the aggregates which tend to exacerbate the dominance of the two largest regions. For the fast growing administrative and professional occupations are not spread throughout the Province i n the same proportions as the rest of the labour force, but rather are concentrated i n the - 36 -south-east corner. One way to measure the r e l a t i v e advantage or disadvantage of various regions i n terms of o f f i c e employment i s by means of an , The factor i occupation factor (R)*. s calculated as follows* 100 L i R i s the Regional occupational factor. i s regional o f f i c e employment i n a l l i n d u s t r i e s , P A i s P r o v i n c i a l o f f i c e employment i n a l l industries, P i s Pr o v i n c i a l employment i n a l l industries, L i s regional employment i n a l l industries. Assuming that a region has x% of P r o v i n c i a l employment, the same percentage might be regarded as the norm f o r o f f i c e employment i n the region. The R factor therefore expresses the surplus or deficiency of a region's employment compared with the P r o v i n c i a l d i s t r i b u t i o n . Table I I I . I shows the d i s t r i b u t i o n of o f f i c e occupations and the respective R factors f o r a l l BC Regional D i s t r i c t s . The general category of o f f i c e employment i s also broken down into i t s two constituent parts, c l e r i c a l and administrative - professional. I t should be emphasised here that there i s nothing normative about the R. factors. There i s no reason why a l l regions should have a s i m i l a r share of o f f i c e work. This i s especially so i n BC with i t s resource-based primary and secondary industries. The nature of the resource in e v i t a b l y determines the location of many settlements whose labour force i s then heavily oriented towards a very l i m i t e d number of occupations. Table I I I . I Regional Occupation Factors and Office Employmentt BC Census D i s t r i c t s , 1971* A l l occupations Administrative, R C l e r i c a l R A l l Office R including undeclared and undefined Professional Factor Factor Emplyt. Factor BC 910,090 80,515 141,740 222,225 Capital Greater Vancouver 84,190 453,680 8,155 50,070 8.6 19.8 14,215 86,505 7.75 18.3 22,370 136,575 8.09 18.8 Alberni-Clayoquot 12,605 640 -74.2 1,155 -69.9 1,795 -71.0 Bulkle y-Nec hako 9,890 555 -57.6 770 -100.0 1,325 -82.0 Cariboo 15.385 745 -82.0 1,405 -70.5 2,150 -7^.0 Cent, Fraser Valley 22,425 1,375 -44.2 2,350 -48.6 3,725 -47.0 Central Kootenay 16,555 1,195 -24.08 1,915 -34.6 3,110 -29.99 Central Okanagan 19,280 1,235 -38.1 2,660 -12.88 3,895 -20.88 Columbia Shuswap 12,370 660 -65.8 1,140 -68.9 1,800 -70.09 Comox-Strathcona 18,485 910 -79.71 1,905 -51.5 2,815 -60.36 Cowichan Valley 1^,385 760 -67.4 1,320 -69.7 2,080 -68.8 Dewdney-Allouette 14,970 805 -64.5 1,480 -57.5 2,285 -59.9 East Kootenay 16,240 1,040 -38.1 1,900 -33.1 2,940 -34.8 Fraser-Cheam 17,960 945 -133.9 1,875 -49.1 2,820 -55.9 Fraser-Fort George 26,060 1,740 -31.9 3,575 -13.5 5,315 -19.7 Kitimat-Stikine 14,105 975 -27.9 1,615 -36.02 2,590 -32.9 Kootenay Boundary 12,550 1,055 -5.2 1,400 -39.6 2,455 -24.8 Mt, Waddington 4,280 245 -54.5 355 -87.7 600 -58.3 Nanaimo 19,010 1,390 -21.5 2,475 -19.66 3,865 -20.1 North Okanagan 13,130 740 -56.9 1,525 -34.0 2,265 -41.5 Table I I I . I Cont'd. A l l occupations Administrative, E Including undeclared and undefined Professional Factor Ocean F a l l s 15,000 65 -1941.0 Okanagan-Sirailkameen 17,430 1,170 -31.8 Peace River-Liard 17,090 855 -76.0 Powell River 6,910 360 -69.8 Skeena A 9,465 515 -62.5 Squamish-Lillooet 5,120 295 -53.5 Stikine 725 80 19.8 Sunshine Coast 3,480 155 -98.6 Thompson-Nic ola 30,820 1.785 -52.73 Source 1 I97I Census C l e r i c a l R Factor A l l Office R Emplyt. Factor 95 -2359.0 160 -2191.0 2,050 -32.4 3,220 -32.1 1,960 -35.8 2,815 -48.2 700 -53.7 1,060 -59.1 1,095 -34.6 1,610 -43.5 450 -77.2 745 -67.8 50 -125.0 130 -36.19 340 -59.4 495 -71.6 3,^65 -38.7 5,250 -43 .3 - 39 -Thus occupational differences are bound to ex i s t i n the Province. R factors of zero f o r every region are not a r e a l i s t i c or worthwhile goal. I t would, f o r instance, be equally inappropriate to recommend a major o f f i c e development i n i s o l a t e d Ocean F a l l s i n order to reduce that area's perceived d e f i c i t as to attempt to open a coal mine In Vancouver i n order to give i t i t s ' f a i r share' of miners. However as a descriptive t o o l the table does provide a consistent means of com-parison between regions and allows certain conclusions to be drawn. Only two regions had a surplus of o f f i c e occupations. Greater Vancouver and Capital ( V i c t o r i a ) and i n both the surplus i n the fastest growing administrative and professional categories was higher than f o r o f f i c e occupations as a whole. In the case of Greater Vancouver, a value of nearly 19 shows that i t i s c l e a r l y heavily advantaged when compared not just with the peripheral resource regions such as Stikine or Cariboo, but also with regions surrounding the main i n t e r i o r centres such as Thompson-Nicola (-4-3.3)# Fraser-Fort George ( -19.7) and Central Okanagan ( - 2 0 . 8 8 ) . Further, j u s t as the administrative - professional surpluses were greater i n Greater Vancouver and Capital so were the d e f i c i t s f o r those occupations i n a l l the other regions except S t i k i n e , which must be regarded as some-thing of a freak. Thus the picture f o r 1971 i s one of concentration i n the two metropolitan regional d i s t r i c t s , with the occupations that were to grow most quickly i n the ensuing f i v e years being most heavily con-centrated. Comparisons with 1961 are not possible because of r a d i c a l census boundary changes. 40 -I I . 1961 - 1971t A Changing Picture One objection to Table I I I . I might be that i t does not compare l i k e to l i k e , Vancouver and Capital are both metropolitan regions that could be expected to have a sizeable o f f i c e population, while the others, even those containing the larger i n t e r i o r towns also encompass a large hinterland. Thus a good case can be made f o r a comparison of c i t y with c i t y . This i s done for selected major BC c i t i e s i n Table I I I . I I , taking information f o r I96I and 1971. Information f o r Vancouver and V i c t o r i a i s f o r the respective Census Metropolitan Areas and i s comparable across the time period though not with the information f o r the Census d i s t r i c t s . Figures f o r I 9 6 I r e f e r to the other c i t i e s only while that f o r i971 refers to t h e i r census agglomerations, i e . the c i t i e s proper and t h e i r urban surroundings, and are thus not s t r i c t l y comparable. How-ever the figures do give an indication of a general trend and are useful i f looked upon i n that l i g h t . The picture f o r I 9 6 I i n i t i a l l y confirms the c r i t i c i s m of the Census d i s t r i c t comparison. A l l c i t i e s have positive R factors, account f o r a higher proportion of the o f f i c e labour force than of the labour force as a whole, and have a higher proportion of t h e i r labour forces i n o f f i c e occupations than the p r o v i n c i a l norm of 27.7%. Indeed on the basis of these figures Vancouver's advantage was notable only i n terms of absolute numbers and not r e l a t i v e percentages. Thus Prince George had the highest R factor of 17.63% and that of V i c t o r i a was the second lowest. The picture was one of o f f i c e concentration i n c i t i e s i n general rather than one or two i n p a r t i c u l a r . Table I I I . I I Office Labour Force and R Factors In Selected BC C i t i e s 1961 1971 R Declared % of No. of % o f Ofc. R Declared % of No. of % of Ofc. Factor Labour Prov. ofc. Prov, emp. Factor Labour Prov. ofc. Prov. emp. Force L.F, emp, ofc, as % of Force L.F, emp. ofc. as % of emp. C i t y L.F. emp. C i t y L.F. Vancouver 286,100 51.04 95,081 60 .6 33.2 15.8 435,315 5 2 . 9 139,980 62.98 32.15 17.2 CMA* . • Vi c t o r i a 53 ,777 9 .5 15,873 10.1 29 .5 5.1 74,010 9 . 0 21,840 9 .8 29 .5 9 . 4 CMA Kamloops 3,731 0.66 1,205 O.76 32 .3 12 .3 C i t y 17,030 2 .07 3,735 1.68 21.9 - 2 0 . 8 9 Census Agl.# Kelowna 4,258 0 .75 1,289 0.82 30.3 7 .4 C i t y 13,082 1.59 3,145 1.4 24.04 - 1 0 . 0 Census Agl. Nanaimo 4,751 0 .84 1,394 0.88 29 .3 4 . 2 C i t y 14,362 1.74 3 ,350 1.5 23 .3 - 13 .6 Census Agl. Prince George 5,186 O.92 1,773 1.13 34.1 I 7 . 6 3 C i t y 18,723 2.27 4,670 2.10 24.9 - 6 . 3 Census Agl, 1 * Census Metropolitan Area # Census Agglomeration Source 1 I96I and 1971 Census - 42 -By 1971 the s i t u a t i o n had changed quite dramatically. During the previous decade, as we saw i n Chapter I I , o f f i c e occupations as a whole grew slowly and declined s l i g h t l y as a proportion of the labour force. However t h i s decline was not evenly d i s t r i b u t e d . A l l c i t i e s except V i c t o r i a increased t h e i r share of the labour force, with the highest growth rates being recorded by the smaller c i t i e s . Con-sequently these c i t i e s a l l increased t h e i r absolute share of o f f i c e occupations as a whole, but t h i s increase was i n s u f f i c i e n t to r e t a i n t h e i r proportionate share. A l l therefore recorded negative R f a c t o r s , a l l had a smaller proportion of o f f i c e occupations than of the labour force as a whole, and a l l had a smaller proportion of t h e i r labour forces In o f f i c e occupations than the p r o v i n c i a l norm, Vancouver and V i c t o r i a , on the other hand, recorded higher R factors i n 1971 than I 9 6 I , Thus over the decade I96I - 1971, concentration of o f f i c e occupations i n the two largest metropolitan areas increased s i g n i f -i c a n t l y to the detriment of the second rank c i t i e s , A s i t u a t i o n of general urban concentration had changed to one of concentration i n two p a r t i c u l a r urban areas, I I I , An Explanation f o r Concentration This s i t u a t i o n i s probably explained by the changing structure of o f f i c e employment. We saw i n the l a s t chapter that higher echelon occupations were the fastest growing component of o f f i c e employment between 1971 and 19?6, and i t i s l i k e l y that t h i s was also the case between I 9 6 I and 1976, though perhaps to a lesser degree, as one facet of the evolution towards a post-industrial structure. In 1961 then, i t i s probable that as well as having a higher c l e r i c a l or routine - 43 -component, o f f i c e employment was also more oriented towards providing services of a l o c a l nature and was thus located i n l o c a l or regional centres. Local government, f o r example, c e r t a i n l y accounted for a s i g n i f i c a n t l y higher proportion of the labour force i n I96I than 1971 (as revealed i n Table I I . I l ) . As the emphasis shifted more towards higher l e v e l occupations providing province-wide services so the: loca t i o n a l emphasis shif t e d to centres of P r o v i n c i a l domination, especially Vancouver which increased i t s proportion of the p r o v i n c i a l labour force by only 1.8 percentage points, but i t s proportion of the provincial o f f i c e labour force by 2 . 3 percentage points. P r o v i n c i a l and Federal government employment, f o r example, increased over t h i s period while that of l o c a l government declined. I f t h i s explanation i s correct, the rapid increase i n the administrative - professional occupations between 1971 and-1976 can be expected to have led to further concentration of o f f i c e employ-ment i n the two major metropolitan areas. This contention i s strengthened by the fact that Headquarters of private corporations are overwhelmingly concentrated i n Vancouver, and i t i s i n or around these larger organisations and government that we can expect most of the increase i n higher echelon jobs to have taken place. I t i s the larger organisations that have the greatest demand f o r more highly q u a l i f i e d people, either as employees or as consultants for p a r t i c u l a r jobs. In the age of the oligopoly corporation, o f f i c e functions are no longer t i e d to the production plant f o r v e r t i c a l linkages between the two are both minimal and routine. Rather the most important linkages today are the horizontal information l i n k s with other o f f i c e and service establishments. Thorngren argues that companies derive important external economies through these l i n k s , p a r t l y by access to services such as accountancy that can more e f f i c i e n t l y be performed outside the organisation and through perhaps chance information about new markets, suppliers, production processes etc.^ Certainly the experience of the BC economy has been that the growth of an i n d u s t r i a l company leads to a s p a t i a l l y separate o f f i c e function concerned with marketing, research and information processing. The o f f i c e s of BC Hydro, McMillan Bloedel, Canadian Cel l u l o s e , BC Forest Products, Canadian Forest Products, Cominco, Kaiser Resources, West Coast Transmission and the Trans Mountain Pipeline Co, are a l l evidence of the concentration of i n d u s t r i a l company o f f i c e s i n Vancouver, f a r removed from t h e i r operations and sources of wealth i n the I n t e r i o r of the Province, Of the top f i f t y private companies whose 3 head o f f i c e s are registered i n BC, f o r t y eight are i n Vancouver . A survey of 'phone book l i s t i n g s reveals s i m i l a r l e v e l s of concentration for the provincial headquarters of out of Province firms, BC directors of the major banks and f i n a n c i a l i n s t i t u t i o n s i n 1973 a l l l i v e d i n Vancouver as did ten of the sixteen directors of the Bank of B r i t i s h Columbia . In addition to the corporate o f f i c e s there i s a wide range of professional service establishments that i s , hardly s u r p r i s i n g l y , not duplicated i n any other c i t y i n the Province, - 44 -IV. The Governmental Dimension In h i s survey of the s p a t i a l aspects of development administra-t i o n , James Heaphey concludes that "Overcentralisation of authority and r e s p o n s i b i l i t y i n ministry headquarters i n c a p i t a l c i t i e s i s a formidable obstacle to development."^ Administrators as well as governments tend to favour those regions they know best and whose problems they can f e e l most d i r e c t l y . A concentrated governmental structure thus works to the advantage of the c a p i t a l regions and main centres of population. Further the s p a t i a l concentration of govern-ment i n a highly Interdependent society w i l l be an important factor i n encouraging the location of private sector headquarters within easy ' s t r i k i n g distance* of the centre of public decision making. Thus there are both important q u a l i t a t i v e as well as quantitative reasons f o r looking at the s p a t i a l d i s t r i b u t i o n of government o f f i c e functions, f o r i f Heaphey i s correct t h e i r I m p l i c i t development effects go f a r beyond those of direct employment creation alone, V. The Role of the Federal Government. We saw i n the l a s t chapter that Federal Government employment grew i n r e a l terms between I96I and I97I and maintained i t s r e a l position i n the following quinquennium. The following table (Table I I I . I l l ) and Table I I I . I V concentrate on the o f f i c e proportion of that employment i n 1971 and 1976. Occupational data f o r e a r l i e r years i s not available. Locational data i s only published f o r Census Metropolitan Areas, making any more detailed analysis imposs-i b l e . - 45 -Table I I I . I V . Federal Government Office Employment i n BC; Census Metropolitan Areas (CMAs) -- 1971 and 19767 1971 1975 No. i n Vancouver 4,269 7.415 % i n Vancouver 42.5% 54.33% % of a l l o f f i c e employment i n Vancouver 62.9% No. i n V i c t o r i a 2,214 2,581 % i n V i c t o r i a 22% 19.0% % of a l l o f f i c e employment i n Vi c t o r i a 9.8% % i n the two CMAs 64.5% 73.3% % of a l l o f f i c e employment In the two CMAs 72.8% • * Notei Regional data f o r a l l o f f i c e employment i n 1975 Is not ava i l a b l e . Sourcet Federal Government Employment i n Metropolitan Areas, B u l l e t i n , September 1971, September 1975. - 46 -Table I I I . I l l i Federal Government Office Employment In BC, 1971-75* 1971 1975 No. % of declared % of Federal No, % of declared % of Federal labour force Govt, emplyt, labour force Govt, emplyt. i n BC. i n BC. 10,027 1.2 46.6 13.647 1.4 52 .4 Sourcet Federal Government Employment B u l l e t i n , Sept. 1971 and Sept. 1975. Office employment refers to a l l those employed i n the following gradesi Executive, S c i e n t i f i c and Professional, Administration and foreign service. Technical and Administrative Support. The tables show that o f f i c e employment s i g n i f i c a n t l y increased i t s share of the labour force and of Federal employment i n BC during t h i s period and became considerably concentrated i n Vancouver, though s l i g h t l y l e s s so i n V i c t o r i a . Concentration i n the two Census Metro-polit a n Areas as a whole increased as a re s u l t of the large increase i n Vancouver's share of the P r o v i n c i a l t o t a l . Thus although Federal government o f f i c e employment was less concentrated than o f f i c e employ-ment as a whole i n 1971, that may no longer be true today. VI. The P r o v i n c i a l Government Extreme d i f f i c u l t i e s have been experienced i n the c o l l e c t i o n of occupational data f o r P r o v i n c i a l Public Service and f o r those other areas under P r o v i n c i a l c o n t r o l , i e . the Crown Corporations and the U n i v e r s i t i e s . The information at my disposal remains incomplete i n i t s most important aspect, i t s occupational d i s t r i b u t i o n , but such as i t i s i t nonetheless allows us to draw some tentative conclusions. - 47 -Tables III.V and III.VI show the re s u l t s of a survey of P r o v i n c i a l employment undertaken by the Secretariat of the Environment and Land Use Committee (ELUC) i n 1974. This remains the best Indication of the s p a t i a l d i s t r i b u t i o n of the Public Service. Apparently no s i m i l a r surveys have been carried out before or since. The survey i s deficient f o r our purposes i n a number of respects. F i r s t of a l l i t refers to t o t a l employment and professional employment only. Occupational breakdowns f o r executives, administrators and clerks were not recorded. Secondly, the survey was undertaken at a time when the Public Service numbered some 26,371 as opposed to today's figure of 32,123. Given the provincial trend f o r an increasing proportion of labour force growth to be i n occupations that are themselves increasingly concen-trated i n the two Census Metropolitan Areas, the ELUC survey may be expected to understate the present degree of concentration. The above objections notwithstanding however, the figures show, as might be expected, that the seat of government, V i c t o r i a (Capital census d i s t r i c t ) accounted f o r a considerably higher proportion of public service employment than of the 1971 labour force as a whole. S i m i l a r l y other major c i t i e s and regional d i s t r i c t s i n the i n t e r i o r such as Kamloops (Thompson-Nicola) and Prince George (Fraser-Fort George) were also favoured. Vancouver on the other hand, as the private sector ' c a p i t a l ' did considerably less w e l l . This d i s t r i b u t i o n i s not r e a l l y surprising. Many of the services of the P r o v i n c i a l government are of the d i r e c t people serving type ( l e , human resources workers^) which one would naturally expect to be f a i r l y evenly spread- across - 48 -Table III.V. BC Census D i s t r i c t s — P r o v i n c i a l Government Employment 1974 % of '71 Total Prov. Govt. P r o v i n c i a l L.F.* Employment Government Professional No« % Occupations No. % TOTAL 26,371 100 2,343 100 Capital 9.25 7,038 26.68 1,058 45.15 Greater Vancr; 49.85 8,983 34.06 470 20.06 A l b e r n i -Clayoquot 1.38 116 0.43 11 0.46 Bulkley-Nechako 1.08 489 1.85 44 1.87 Cariboo 1.69 599 2.27 49 2.09 Cent. Fraser Fraser-Cheam & Dewdney-Allou-ette 6.08 1,006 3.8 133 5.6 Cent. Kootenay 1.81 931 3.5 66 2,8 Cent, Okanagan 2.11 299 1.13 53 2.2 Columbia Shuswap 1.35 319 1.2 10 0.42 Comox Stratheona 2.03 405 1.53 19 0.81 Cowichan Valley 1.58 137 0.51 16 0.68 E, Kootenay 1.78 315 1.19 26 1.11 Fraser Ft,George 2.86 971 3.6 60 2.56 Kitimat-Stikine 1.54 378 1.43 3 0.12 Kootenay Bdy, 1.37 227 0.86 6 0.25 Mt, Waddington 0.47 56 0.2 3 0.12 Nanaimo 2.08 633 2.4 93 3.96 N, Okanagan 1.44 357 1.35 26 1.10 - 49 -Table III.Y. Cont'd. % of '71 L.F. Total Prov. Govt, Employment Pr o v i n c i a l Government Professional Occupations No. No. Ocean F a l l s 1.64 29 0.10 - — Okanagan Sirailkameen 1.91 271 1.02 33 1.40 Peace River 1.87 486 1.84 33 1.4 Powell River 0.75 46 0.17 3 0.12 Skeena 1.04 242 0.91 23 0.98 Squamish-L l l l o o e t 0.56 105 0.39 5 0.21 Stikine 0.07 81 0.30 0 mm Sunshine Coast 0.38 56 0.21 1 0.04 Thompson-Nicola 3.38 1,690 6.4 99 4.22 Unaccounted f o r 108 0.40 * Labour Force Source t ELUC - 50 -Table III.VI. Provincial Public Service Employment In BC. 1974, for Selected Major Cities. Total Public Service - 26,371 % of 1971 Total Public Provincial L.F, Service Government Professional Occupations No. % No. % Victoria 9.0 7,034 26.6 1,058 45.15 Vancouver 52.9 8,983 34.0 470 20.06 Kamloops 2.07 1,382 5.24 90 3.8 Kelowna 1.59 299 1.1 35 1.49 Nanaimo 1.74 588 2.2 99 4.22 Nelson 0.44 624 2.36 49 2.09 Prince George 2.27 928 3.5 60 2.56 Smithers 0.16 215 0.8 18 0.76 Terrace 0.46 275 1.04 10 0.42 Williams Lake 0.21 284 1.0 43 1.8 Source s ELUC - 51 -the province. Indeed one would even expect a certain favouritism towards the less populated regions where presumably a higher govern-ment servant to population r a t i o i s necessary to provide a uniform l e v e l of service. Other large areas of p r o v i n c i a l employment are concerned with the monitoring of the resource base ( i e . Forests and Mines) or with the maintenance of the basic physical infrastructure of the Province. These l a t t e r a c t i v i t i e s a l l have a strong orientation towards the i n t e r i o r where the main focus of t h e i r concern l i e s . Thus of the 5»308 employees of the Highways Department only 20% are located i n V i c t o r i a and 13% i n Vancouver. The remainder are spread throughout the Province with no heavy concentration i n any one area. A s i m i l a r pattern exists f o r the Forestry Department. Of 2,822 employees, 18% are i n V i c t o r i a and 14% i n Vancouver. Thus one would expect to see a certain bias towards the i n t e r i o r i n the public service employment figures. What i s notable then i s the fact that t h i s bias i s probably only at the lowest or 'operational' l e v e l . Professional occupations (from which I have excluded health professionals i n order to i d e n t i f y a professional o f f i c e sector com-parable with other tables) show a markedly higher l e v e l of concentration esp e c i a l l y i n V i c t o r i a . In t h i s category Vancouver no longer has even an absolute majority, but professional occupations are nonetheless 65% concentrated i n the two GMAs as against 60% for t o t a l public service employment. Other major c i t i e s and large regions generally continue to have a higher proportion of professional employment than they had of the I97I labour force, but a considerably smaller proportion than of t o t a l - 52 -public service employment. However t h i s trend i s by no means absolute as shown by the figures f o r Nanaimo and Williams Lake f o r example. My own survey involved requesting a l l M i n i s t r i e s of the BC Government f o r data giving an occupational ( i e . Administrative, Professional and Technical) and s p a t i a l breakdown of t h e i r o f f i c e labour force. Unfortunately, while some r e p l i e d , others were unable to do so f o r a number of reasons largely associated with the d i f f -i c u l t i e s involved i n assembling the information. An i n d i c a t i o n of the problems involved can be gained from the fact that i t apparently took one worker i n the Department of Consumer and Corporate A f f a i r s nearly a month to assemble the information required f o r the 366 o f f i c e employees i n that department. The information was not recorded c e n t r a l l y so she had to search through the i n d i v i d u a l f i l e s of every departmental employee. The ELUC study, undertaken by a team of res-earchers backed up with the authority of the Cabinet, took some four months to complete. A further problem with the r e p l i e s I received was that depart-mental boundaries are not coterminous and some information f o r large undifferentiated areas could not be c o l l a t e d with that from other departments. Information from the departments l i s t e d below i s summarised i n Table I I I , V I I . These are. Transport, P r o v i n c i a l Secretary, Education (excluding school inspectors), Finance, Economic Development, Consumer and Corporate A f f a i r s , Municipal A f f a i r s and Housing. Table I I I . V I I I gives the d i s t r i b u t i o n of Forestry Department o f f i c e Employees by Resource Management Region (RMR) (see F i g . I I I . l ) . - 53 -Table I I I . V I I . BC Pr o v i n c i a l Government Office Employment — Certain M i n i s t r i e s , 1977. Executive Prof, & C l e r i c a l Total & Admin, Technical Total 475 283 1,505 2,263 V i c t o r i a 324 248 1.171 1,743 % 68.2 87.63 77.8 77.02 Vancouver 113 24 235 372 % 23.78 8.48 15.6 16.43 Kamloops 7 1 28 36 % 1.47 0.35 1.8 1.5 Kelowna 5 6 16 27 % 1.05 2.12 1.06 1.19 Nanaimo 3 1 13 17 % 0.63 0.35 0.8 0.75 Prince George 13 1 34 48 % 2.73 0.35 2.25 2.12 Other 9 2 8 19 % 1.89 0.70 0.53 0.83 SourceJ M i n i s t r i e s of» Transport, P r o v i n c i a l Secretary, Education, Finance, Economic Development, Consumer and Corporate A f f a i r s , Municipal A f f a i r s and Housing Personnel Depts. - 54 -Table I I I . V I I I . BC Forestry Department Office Employees by  Resource Management Region, 1977. Number % Vancouver Island 1,063 35.91 Lower Mainland 611 20.64 Thompson-Okanagan 258 8.7 Kootenay 269 9.08 Cariboo 257 8.68 Skeena 229 7.73 Ominica-Peace 273 9.2 Total 2,960 100.0% Source* Forest Service Personnel Department. Note - See Figure I I I . I f o r regional boundaries. VJ1 t > o H > - 55 -These regions are now common to a l l Resource Departments and have been devised to a i d i n the integrated management of the Province's natural resources. Thus one may hope for the eventual production of comparable and comprehensive s p a t i a l figures f o r the resource departments. Table III.IX gives the d i s t r i b u t i o n of Department of Recreation and Conservation o f f i c e employees. The d i v i s i o n s V i c t o r i a and Island and Lower Mainland are s e l f explanatory. Central Mainland refers approximately to the Cariboo, Thompson and Kootenay RMRs, while North Mainland Includes Omineca-Peace and Skeena, These tables provide, of course, a very incomplete picture as they are biased towards the smaller, more metaphysical departments, do not include some of the largest such as Human Resources and are not d i r e c t l y comparable. Nevertheless they tend to confirm the 1974 impression of high concentration. Thus 53*72% of these occupations are concentrated i n the Victoria/Vancouver Island areas and 18,8% i n the Vancouver/Lower Mainland areas. I t seems that one can conclude then that the pattern of P r o v i n c i a l government o f f i c e employment i s f o r a high proportion, often a majority, to be located i n V i c t o r i a , Vancouver receives a much smaller proportion than i t s share of the labour force would seem to j u s t i f y . Nevertheless i t s share, i n terms of absolute numbers, i s s t i l l considerable and much larger than any of the other regions which generally receive a smaller share of P r o v i n c i a l o f f i c e employment than public service employment as a whole. The fact that o f f i c e employment i s most heavily concentrated i n what I have c a l l e d the 'metaphysical' m i n i s t r i e s , i e . those such as - 56 -Table I I I . I X . BC Department of Recreation and Conservation Office Employees, 1977» By Region. V i c t o r i a Lower Central North & Island Mainland Mainland Mainland Executive 100% Administrative 85% 5% 5% 5% C l e r i c a l 70% 10% 10% 10% Professional 50% 20% 15% 15% Technical 40% 25% 20% 15% Source: Department of Recreation and Conservation, Personnel Dept - 57 -Consumer A f f a i r s , Economic Development and Municipal A f f a i r s that can be expected to grow most rap i d l y as the Province moves along B e l l ' s p ost-industrial 'trajectory' i s of especial significance, VII, The Crown Corporations and In s t i t u t e s of Higher Education In the l a s t section we saw that Vancouver has a r e l a t i v e l y small share of public service o f f i c e employment. However t h i s s i t u a t i o n i s d r a s t i c a l l y corrected when we look at the other areas d i r e c t l y controlled by the Pr o v i n c i a l Government, namely the Crown Corporations and the In s t i t u t e s of Higher Education, BC Hydro, for example, has a permanent o f f i c e labour force of some 5,227. Of these, 4,281 or 82% are located i n Vancouver. The remaining 18% or 946 are distr i b u t e d around the Province i n l o c a l o f f i c e s engaged In d i r e c t l o c a l service ( i e , assessing customer charges). Those engaged i n l o c a l service i n the Vancouver Metro area apparently number some 500, Thus of the Hyrdo labour force some 72% are engaged i n head o f f i c e control functions i n Vancouver that have a 7 Province-wide application'. The Insurance Corporation of BC employs some 2,300 people. Of these, approximately 1,000 are employed i n the claims centres that are spread throughout the Province on a per capita basis, and only a minority are o f f i c e workers. The remaining 1 ,300, the vast majority of whom are o f f i c e workers a l l work at the company's headquarters i n Vancouver . The 25 employees of the BC Petroleum Corporation a l l work i n Vancouver as do the approximately 30 members of the BC Energy Commission, - 58 -The Canadian Cellulose Co. and the BC Railway employ 3*020 and 3»200 people respectively. Neither was able to supply o f f i c e employment data. Both have head o f f i c e s i n Vancouver but only a minority of t h e i r t o t a l work forces could be expected to be of an o f f i c e nature. Kootenay Forest Products employs some 500 and i t s head o f f i c e i s i n Nelson. Again only a minority could be expected o to be o f f i c e employees . The same i s true of BC Ferries whose head o f f i c e i s i n V i c t o r i a and which has a labour force of some 2,500*^. We saw i n Chapter One that i n s t i t u t e s of higher education such as Harvard, Stanford etc. have had a s i g n i f i c a n t developmental i n -fluence on t h e i r surrounding communities of Cambridge and Palo A l t o , and we can expect that the P r o v i n c i a l l y funded u n i v e r s i t i e s of B r i t i s h Columbia have had a s i m i l a r effect on the communities that they grace. I t should come as no surprise then that Vancouver, the Province's largest c i t y and the one most heavily favoured with the upper-echelon jobs that require an educational q u a l i f i c a t i o n had 83.69% of a l l the Province's university professors i n 1975. V i c t o r i a has 16.3% and Nelson 1 . 0 3 % U . Community Colleges are s l i g h t l y more evenly d i s t r i b u t e d . Figures are only available f o r the t o t a l number of teaching s t a f f , so I have assumed that professors are dist r i b u t e d throughout the system i n the 12 same proportion as t h e i r students • By t h i s measure, Vancouver appears to have 68% of the 1976-77 t o t a l of 1,440 or some 980. Vic-t o r i a had 6.6% or 95 and the I n t e r i o r had 25.4% or 365. Thus of a t o t a l of 3,867 teachers i n i n s t i t u t e s of higher educ-at i o n , Vancouver had some 3»0ll or 77.9% and V i c t o r i a had 12.6%. The - 59 -I n t e r i o r , which i n 1971 accounted f o r some 40% of the P r o v i n c i a l labour force had only 9.5%* Summary In t h i s chapter we have seen that o f f i c e occupations became heavily concentrated i n Vancouver and V i c t o r i a i n the decade before 1971, the l a t e s t date f o r which regional time-series data i s a v a i l -able* The occupations that were to grow most quickly i n the ensuing quiquennlum, i e , the administrative-professional ones, were the most heavily concentrated. Federal government o f f i c e employment too was both a growing area and one increasingly concentrated i n the two CMAs, especially Vancouver. P r o v i n c i a l government public service employment as a whole i s rather more equitably spread. Despite an expectedly high degree of concentration i n V i c t o r i a , a low degree i n Vancouver en-sured that the Metropolitan/Non-Metropolitan s p l i t i n 1974 was roughly that of the 1971 labour force, i e , 60s40. Office employment however seems to be much more highly concentrated i n V i c t o r i a , e specially i n the newer 'metaphysical' m i n i s t r i e s , but with Vancouver s t i l l receiving a s i g n i f i c a n t share.- Other o f f i c e employment under Pr o v i n c i a l control i s overwhelmingly concentrated i n Vancouver, Thus, one of the fastest growing sectors, government, and the fastest growing occupation, e l i t e o f f i c e functions, are both heavily concentrated i n the already advantaged areas of the Province, In the following chapter we s h a l l look at the implications of these trends f o r the future s p a t i a l development of BC, - 60 -Notes, Chapter I I I . 1. The formula f o r deriving the R Factor i s given by P.W, Daniels, op. c i t . , p. 99 2. B. Thorngren, "External Economies and the Urban Core", i n M. Van Hutten, Ed., Urban Core and Inner C i t y , ( B r i l l , Leiden, Holland, I968). 3. " B r i t i s h Columbia's Top 50 Companies", BC Business, (July 1976), pp. 24 and 2 5 . 4. See J . Addle, A. Czepl, and F. Rumsey, "The Power E l i t e of BC", i n J . Knox and P. Resnick, Eds,, Essays i n BC P o l i t i c a l Economy, op. c i t , 5. J . J . Heaphey, Sp a t i a l Aspects of Development Administration, (Duke U.P., Durham N.C., U.S.A., 1971)# P. 26 6. 4,106 people were employed by the Human Resources Department i n 1974 according to the ELUC survey. 7. Figures supplied by the BC Hydro Personnel Department. 8. Figures supplied by a former consultant to ICBC 9. Information on Canadian Cellulose, BC Railway and Kootenay Forest Products taken from Canadian Key Business Directory, (Dunn and Brad-street, Toronto, 197617 10. Figure from BC Ferries Personnel Department. 11. U n i v e r s i t i e s and Colleges of Canada Annual Catalogue, 1975, ( S t a t i s t i c s Canada, Ottawa, 1976). 12. Figure f o r t o t a l Community College teaching force from Advance S t a t i s t i c s of Education 1976-77, ( S t a t i s t i c s Canada, Ottawa, 1977). D i s t r i b u t i o n of students taken from BC Department of Education Annual  Report f o r 1974-75> (Queens P r i n t e r , V i c t o r i a , 1976). - 61 -Chapter Four. Future Trends i n Office Employment i n B r i t i s h Columbia. I . The Sectoral and Occupational Trends We saw i n Chapter Two that one of the most remarkable changes i n Western society t h i s century — the transformation of the labour force structure away from un s k i l l e d work i n areas of physical produc-t i o n i n favour of increasingly s k i l l e d a c t i v i t i e s concerned with the analysis and handling of information rather than with physical products — has also taken place i n BC. Thus i n t h i s Province i n 1976 only 16.6$ of the labour force was engaged i n direct physical production, while 29$ were engaged i n the handling, processing and transmission of information i n o f f i c e s . This s h i f t towards white c o l l a r employment has resulted from the automation of many of the less s k i l l e d production functions and from s t r u c t u r a l changes within industry and society generally which necessitated increased l e v e l s of l i t e r a c y and increased investment i n higher education. The increasing com-p l e x i t y of society has necessitated a high degree of interdependence between organisations and t h i s has i n turn led to a greater demand f o r governmental services. There i s no evidence that t h i s transformation of society, which i t must be remembered has created a new and growing range of routine as well as e l i t e o f f i c e work, i s yet complete. Indeed there are a number of s p e c i f i c indications that o f f i c e employment w i l l continue to be a rapidly growing part of the BC Economy. Canada Manpower expects the BC labour force to increase from 1.135 m i l l i o n i n 1976 to some 1.2 m i l l i o n by 1981. Population i s - 62 -expected to grow from some 2,406,212 i n 1972 to about 4.4 m i l l i o n by the year 2001.* Thus one can expect the demand f o r employment to continue to grow f a i r l y strongly and i t i s c l e a r l y the job of the planner to attempt to assess the implications of t h i s . Employment growth opportunities i n the primary and secondary sectors are extremely l i m i t e d . We saw that manufacturing employment grew i n l i n e with the labour force during the past f i v e years, largely as a res u l t of an expansion i n the primary processing of forest products. However future expansion of t h i s sector i s severely 2 li m i t e d by both supply and demand constraints. The North-West i s the l a s t remaining unexploited forest region, but plans of the l a s t government to exploit i t now appear to have been shelved i n d e f i n i t e l y i n l i g h t of the depressed world market. The main development e f f o r t of the present government i s directed towards ensuring the exploitation of large coal deposits i n the North-East and i t i s apparently endeavouring to secure a j o i n t federal-provincial commitment to invest some $500 3 m i l l i o n i n i n f r a s t r u c t u r a l support . Projected employment figures f o r t h i s project are assessed by the Department of Economic Development to be i n the order of 330 people f o r every m i l l i o n tons produced per year. As peak production i s expected to be i n the order of 13 m i l l i o n tons per year, we can expect the maximum direct employment potential of north-eastern coal to be i n the order of 4,300 jobs. Whatever the benefits of t h i s scheme to the national balance of payments, a cost to the public purse of over $100,000 per job can hardly be seen as the 4 basis of a mass employment strategy. - 63 -Indeed the l i k e l i h o o d i s that primary and processing employment w i l l a c t u a l l y f a l l i n the Province i n the forseeable future i n l i n e with the trend elsewhere i n the world. A declining marginal prop-ensity to consume with higher national income, a l l i e d to the continuing spread of technological developments such as numerical control machine t o o l s , are expected to ensure that productivity w i l l increase much faster than demand^. Thus while the t r a d i t i o n a l goods pro-ducing sectors w i l l continue to underpin much of the prosperity of the Province and permit a high l e v e l of imports, they w i l l not be able to provide a l l the jobs that B r i t i s h Columbians w i l l demand. Other conditions i n society however w i l l ensure a high demand fo r office-type workers, especially i n the higher grades, Daniel B e l l has pointed out that the " a x i a l p r i n c i p l e " of p o s t - i n d u s t r i a l society involves the coordination of men and machines f o r the pro-duction of goods, "Post-industrial society i s organised around knowledge f o r the purpose of s o c i a l control and the d i r e c t i o n of innovation and change"^. The necessity to plan f o r technological change, the r i s e of what B e l l c a l l s new i n t e l l e c t u a l technologies such as organisation theory, and the increasing interdependence of society caused by a continuing self-refinement (specialisation) of job roles w i l l a l l contribute to a growth i n o f f i c e employment. This w i l l be true i n the private sector, especially i n the organ-i s a t i o n and coordination of the International oligopolies that 7 dominate the modern economy, just as i t w i l l i n the public. The role of the l a t t e r as an 'umpire' and an economic agent w i l l become more pronounced. The erosion of competition i n the oligopoly - 64 -economy has already demanded intermittent government control over prices.markets and so on, John Kenneth Galbraith, f o r one, sees a necessity to extend t h i s control further by public take-over of the 'planned' i e , non-market, sectors of the economy as the free enterprise system becomes less and less able to s a t i s f y the r e a l Q needs of society. The increasing interdependence of society leads to the danger of : large 'negative m u l t i p l i e r s ' r e s u l t i n g from the f a i l u r e of any p a r t i c u l a r area. "This negative m u l t i p l i e r effect has meant that government must stand ready to intervene at a l l times o i n order to avoid major economic disasters," Thus i n BC, f o r example, the government took over the Ocean F a l l s Corporation i n order to save that community. Further, the increasing abstraction of work leads to pressures f o r external guarantees of s o c i a l security. For the vast majority of the population l i v i n g i n urban areas doing specialised tasks r e l y extensively on money income f o r the provision of a l l basic needs, such as food and shelter. This requires increased programmes to provide personal security i n the form of state guaranteed pensions, unemployment insurance, etc. Thus while i t makes good p o l i t i c s to t a l k of holding back the ' p a r i s i t i c * public sector and while governments can indeed impose h i r i n g 'freezes' f o r r e l a t i v e l y short periods, the persistence of the factors which give r i s e to increased government i n the past w i l l ensure i t s future growth. This growth w i l l occur not i n the t r a d -i t i o n a l areas of government, i n the provision of p a r t i c u l a r l o c a l services, but i n the more recently established areas of planning - 65 -and general administration. Thus the bulk of the increase i n employ-ment w i l l be of q u a l i f i e d personnel, w i l l take place i n head-quarters locations, and w i l l p r i n c i p a l l y involve the Federal and P r o v i n c i a l governments. The prospects f o r future o f f i c e growth i n BC are further strengthened by i t s location on the P a c i f i c Rim which i s widely predicted w i l l become the fastest growing area of the world over the next century*^. Some observers see BC's best hope f o r developing i t s economy over the next several decades i n supplying services to these countries^"*, BC, with i t s prominent po s t - i n d u s t r i a l occupation-a l employment structure, i s seen as being i n a good position to supply te c h n i c a l , educational, planning and other high-value post-industrial services to countries at present i n d u s t r i a l i s i n g . Thus the Province's economic base ( i e . i t s export sector) i s seen as d i v e r s i f y i n g from pre-industrial to post-industrial without going through the intermediate stage. Whatever the prospects of t h i s l a s t idea, which has not been explored i n any great d e t a i l , i t seems as though demand f o r o f f i c e services w i l l continue to increase i n BC as pr o v i n c i a l income r i s e s and consumption patterns s h i f t more and more to the purchase of direct services and higher order post-industrial metaphysical goods. I f post-industrial services continue to be demanded however, one might nonetheless l o g i c a l l y expect that the automation of the o f f i c e through Electronic Data Processing, would reduce employment i n t h i s area i n much the same way as i t has done i n Industry and agriculture. - 66 -In fact however, whatever the advantages EDP may have i n terms of e f f i c i e n c y , available evidence suggests that i t has at best only a small employment reducing e f f e c t . Automation may i n i t i a l l y replace many workers and reduce the demand f o r routine workers, but the number of s k i l l e d personnel, both within the organisation and i n the external servicing firms tends to increase. Further automation increases the mass of data and therefore the stock of information which i s both the product and raw material of o f f i c e a c t i v i t y . Thus even the demand f o r routine o f f i c e s t a f f increases once again. Michael Bannon concludes that "numerous examples exi s t which show that the introduction of o f f i c e machines has led to an Increase i n 12 s t a f f requirements rather than to a reduction". Ida Hoos claims that while as a re s u l t of EDP records move f a s t e r , t h e i r volume has increased exponentially. Thus although EDP has "transformed the content and environment of o f f i c e jobs i t has not, however cut 13 down the number of workers." J P.W. Daniels quotes a number of studies showing that the net r e s u l t of EDP i s to increase o v e r a l l employment, usually at higher l e v e l s of r e s p o n s i b i l i t y . He concludes that, over the next 30 years EDP might eventually account for about 15% of a much expanded volume of work and would retard employment growth only slowly. I t i s s i g n i f i c a n t that the occupations that have been growing most rapidly i n the l a s t 5 years, and which are expected to a t t a i n increased prominence In the future are the higher order 'contemplative' type. These jobs r e l y on human mental s k i l l s and could only be taken over to a l i m i t e d extent by a comp-- 67 -uter, though use of a computer can increase the power of these s k i l l s enormously. The only factor that would tend to r e s t r i c t the growth of o f f i c e employment i n BC i s the extent of foreign ownership of the economy. This r e s u l t s i n a 'siphoning off* of higher order o f f i c e functions created i n BC to other locations. As we saw i n Chapter I I , Nicos Poulantzas claims that t h i s " i m p e r i a l i s t s o c i a l d i v i s i o n of labour" has had severe effects on the evolution of the European occupational structure and i t s future effect on that of BC i s uncertain. Cert-a i n l y i t w i l l result i n the loss of some jobs that are. created here, but I have no means of assessing j u s t how many. Perhaps even more worrying on a broader P r o v i n c i a l scale, though i s the hemorrhage of c a p i t a l from the BC resource industries to t h e i r foreign owners. The r e a l i s a t i o n i s growing within some sectors of the NDP that taxes are at best an imperfect means of assuring f o r the Province a f a i r proportion of the p r o f i t gained from i t s resources. Thus there i s some chance that the party might adopt a policy of nationalisation of the resource base, s i m i l a r to that recently undertaken by the Saskatchewan government, In that case not only would the export of c a p i t a l be prevented, but the export of some higher order o f f i c e jobs as w e l l . In the event of natio n a l i s a t i o n , then, we could expect to see a s i g n i f i c a n t increase i n the number of o f f i c e jobs controlled by the government and also an uncertain increase i n the pr o v i n c i a l o f f i c e t o t a l . As regards the more certain future, though, i t seems as though - 68 -o f f i c e jobs both i n the public and private sectors w i l l continue to account f o r an increasing proportion of the labour force, I I , The Regional Pattern of Hierarchical Locations Theoretical  Perspectives, Excellent reviews of the available l i t e r a t u r e on o f f i c e location have already been done by such eminently q u a l i f i e d authors as P,W, Daniels, John Goddard and Michael Bannon and I s h a l l make no attempt to reproduce them here. Instead I s h a l l attempt to i d e n t i f y the main th e o r e t i c a l determinants of o f f i c e location and relate them to the future s p a t i a l development of the Province, In Chapter Three we saw that o f f i c e occupations, p a r t i c u l a r l y those of a management or control nature are heavily concentrated i n the south-west corner of the Province, Lower l e v e l c l e r i c a l functions were also concentrated, but rather less heavily. I t was also observed that t h i s concentration became more marked over the time period covered by the study. Conversely then, productive functions, represented by manual occupations, are most heavily concentrated i n the I n t e r i o r , This s p a t i a l concentration of o f f i c e work, and esp e c i a l l y of head offic e control functions employing a higher proportion of upper echelon o f f i c e workers, i s but one dimension of the corporate and governmental hierarchy. Business organisation has advanced from the nineteenth century when the archetypal firm was of the small single-product variety controlled by a single entrepreneur or family, to today's s i t u a t i o n where the archetype i s the multiproduct, m u l t i -national conglomerate. This evolution has involved the increasing - 69 -concentration of national production i n t o the hands of r e l a t i v e l y few enterprises and evidence of such concentration i n Canada i s found i n the work of M.D. Stewart, Don M i t c h e l l and Wallace Clement*^, Concentration studies do not seem to have been done for BC, but the Pearce Report revealed a s i g n i f i c a n t degree i n the dominant 17 forest industry . Further, t h i s forest concentration i s a dramatic change from the fragmented s i t u a t i o n of only twenty years 18 ago and i s expected to continue . 19 20 Stephen Hymer and Olof Warneryd have evolved remarkably s i m i l a r theories showing how the organisational hierarchy of these increasingly large and complex bodies also gives r i s e to a s p a t i a l hierarchy of d i f f e r i n g l e v e l s of control functions. Despite the fact that the authors seem to be unaware of each other and therefore have not e x p l i c i t l y made the connection between t h e i r work, they are s i m i l a r enough for the following synthesis to be made. Both see "three l e v e l s of business administration, three horizons, 21 three l e v e l s of task and three l e v e l s of decision making", which are. Level I I I , The lowest l e v e l i s concerned with managing the day-to-day operations of the enterprise. Level I I , Arises from the separation of the head o f f i c e from the o f f i c e s d i r e c t l y connected to productive a c t i v i t i e s . Man-agers at t h i s l e v e l are responsible f o r co-ordinating managers at Level I I I . Level I . Comprises top managers whose functions are the determ-ination of goals and planning, thereby s e t t i n g the framework i n - 70 -which the other l e v e l s operate. In the f i r s t stage of corporate development, represented by the small single function firm a l l three l e v e l s were incorporated i n the single entrepreneur. With the development of the national corp-oration however, the top two l e v e l s became separated from the bottom one. This process became complete with the advent of the mu l t i -national corporation and the concentration of Level One functions i n a head o f f i c e whose s p e c i f i c function i s to plan strategy. This c e n t r a l i s a t i o n of control within the corporate sector i s d i r e c t l y related to the c e n t r a l i s a t i o n of control across space. Thus Level I I I functions tend to become f a i r l y well dispersed, following the j o i n t p u l l s of manpower, markets and raw materials. Level I I functions however w i l l tend to be concentrated i n large c i t i e s , because of t h e i r need f o r specialised services, information and communications systems, "Due to the s i m i l a r i t y of t h e i r demands, corporations are l i k e l y to place t h e i r coordinating a c t i v i t i e s i n 22 the same c i t y , " Level I functions are l i k e l y to be even more heavily concentrated i n a few large metropolis' of global domination with access to global c a p i t a l markets, the international media and the more Important national governments. Thus, as Hymer observes, "A few key c i t i e s , New York, London, Paris are already on t h e i r way to becoming the kind of global c i t i e s where top decisions are made and 23 great amounts of c a p i t a l can be raised." Lesser c i t i e s are arranged beneath them i n hi e r a r c h i c a l fashion, with larger c i t i e s containing regional corporate headquarters and smaller centers being r e s t r i c t e d - 71 -to lower l e v e l a c t i v i t i e s . Hymer's theory i s s p e c i f i c a l l y directed towards the private sector, but Warneryd maintains that a l l large organisations, both government and private, are h i e r a r c h i c a l and have s i m i l a r patterns of locati o n . I t would seem that t h i s theory i s e specially appropriate to a federal system of government. This theory seems to be by and large consistent with the BC si t u a t i o n as described i n Chapter I I I of t h i s study. Vancouver and V i c t o r i a can be looked upon mainly as Level I I c i t i e s i n t h e i r respective hierarchies. Some Level I a c t i v i t i e s are, of course, associated with the P r o v i n c i a l government and with the group head-quarters of BC's few national and multinational companies, but these must be seen as a minority when compared with the kinds of function performed i n Ottawa or New York, I I I . The Role of Communications One reason f o r the concentration of higher order control functions i s t h e i r need f o r easy communication and contacts with other i n s t i t u t i o n s and services, as was stated i n Chapter I I I , section I I I . The importance of communications as a location factor f o r of f i c e s has long been acknowledged. In 1962, Richard Meier suggested a communications explanation of urban growth which associated an 24 i n t e n s i f i c a t i o n of communications growth with urban agglomeration. More recently a number of studies have emphasised the degree of i n t e r -dependence between various white-collar a c t i v i t i e s and the quantitative 25 importance of face-to-face communication y . The r e l a t i v e superiority - 72 -of large urban centres as f o c i of communication and the much wider range of s p e c i a l i s t services that they could provide, became both the cause and the effect of the location of the higher l e v e l s of public and private organisations i n b i g c i t y regions. Thorngren advanced the notion of information density as a 26 location c r i t e r i o n by stressing i t s q u a l i t a t i v e importance. He has i d e n t i f i e d three types of relationship between the firm and i t s surrounding environment. Most relationships are of a routine nature involving simple day-to-day information transfer. These he c a l l s programming processes. Planning processes are processes and related information flows concerned p r i n c i p a l l y with the development of s p e c i f i c alternatives that have been i d e n t i f i e d through higher l e v e l orientation processes and thus involve a somewhat l i m i t e d number of information contacts. The l a t t e r orientation processes usually involve the highest l e v e l decision makers i n wide-ranging discussions that take place i n large, lengthy and pre-planned meetings. I t i s at t h i s l e v e l that the firm 'scans' i t s whole environment, often i n an unplanned way fo r sometimes random or chance information that could ultimately determine the p o s s i b i l i t y f o r a firm to adapt i t s a c t -i v i t i e s to changing economic circumstances, A very small proportion of t o t a l a c t i v i t y i s orientation a c t i v i t y , but Thorngren argues that the nature of information flows i n urban regions i s p a r t i c u l a r l y relevant to these and to planning r e l a t i o n s . Therefore, the clustered location of higher order functions. The information required f o r programmed a c t i v i t i e s , on the other hand, i s available i n smaller urban centres or i s e a s i l y communicated by telephone. - 73 -These types of information processes tend to be r e f l e c t e d through the national and international urban system. I t i s not unusual to f i n d regional centres devoid of orientation processes, while l o c a l centres lack both orientation and planning processes. "Thus regions outside the primary centre are devoid of the benefits which could be derived from the complete network of linkages required to support 26a orientation processes." While not necessarily i n contradiction with the 'communications' theorists of concentration, Alan Pred has a somewhat dif f e r e n t 27 explanation. He, l i k e Hymer, sees a l l jobs i n the economy as ultimately linked to the e x p l i c i t and i m p l i c i t l o c a t i o n a l decisions of r e l a t i v e l y few, large multi-locational bodies, both public and private, A c h a r a c t e r i s t i c of these bodies i s that they have only li m i t e d search patterns when they decide to expand or even open up a new unit or create a new department. Only r a r e l y are more than three possible locations i d e n t i f i e d . Thus there e x i s t s a c r i t i c a l l i n k between e x i s t i n g location and information flow patterns and any expansion. For with l i m i t e d search a major factor, areas i d e n t i f i e d are most l i k e l y to be those where the firm or government concerned already has linkages, either through location of.one of i t s own units or through contact with other partners. The e x i s t i n g pattern of linkages then creates a s p a t i a l bias which influences both e x p l i c i t l o c a t i o n a l decisions and i m p l i c i t ones. This system, i n Pred's view, tends to reinforce large centres because the most intense contacts are between large centres and a l l smaller locations are linked to large centres, though frequently not to each other. Large centres - 74 -therefore tend to have a 'high p r o f i l e ' i n a l l l o c a t i o n a l considerations and therefore receive a high proportion of the nation's growth. Thus.in Pred*s system, information has a q u a l i t a t i v e l y d i f f e r e n t r o l e from that which i s ascribed to i t by writers such as Thorngren, For Pred, information serves primarily to i d e n t i f y a p a r t i c u l a r centre. For Thorngren, the information capacity of the centre i n terms of i t s "contact potential" i s i t s prime a t t r a c t i v e determ-inant. And t h i s raises a very important point. For as Westaway points out the available evidence can only i n d i r e c t l y i d e n t i f y the importance of information capacity as a factor f o r determining, the location of head-office a c t i v i t y . The c r u c i a l question i s whether these o f f i c e s could perform as s a t i s f a c t o r i l y i n less information r i c h environments. However the l i k e l i h o o d of our ever being i n a position to answer t h i s question i s slim f o r two reasons. F i r s t of a l l much of the information may not be of immediate relevance but may instead relate to the orientation processes. Secondly, a number of ine x t r i c a b l y intertwined other factors w i l l influence a firm's behaviour, f o r instance the q u a l i t y of i t s management. Therefore we must r e l y on what i n f e r e n t i a l evidence i s available and t h i s indicates that information density and q u a l i t y are of some considerable importance to private sector location. However Alan Pred reveals that the small (pop, 112,000) Boise C i t y , Idaho, SMSA, i s the US headquarters of four large business organisations; with nationally dispersed units and foreign operations. As he says, "The conventional wisdom shared by regional planners and academics often says that the smaller and intermediate sized metropolitan complexes .....are usually too small to provide the external economies and services necessary for the successful operation of high-level 28 administrative and management functions," Boise C i t y , with i t s comparatively remote location seems to contradict t h i s and suggests that the role of information density as a determinant of o f f i c e location may have been somewhat overstated. I.V, Summary and Implications The underlying cause of the s p a t i a l concentration of o f f i c e functions has been the transformation of the economy from one com-posed of small :. fragmented units to one of large h i e r a r c h i c a l organisations, both public and private. This development process has expressed i t s e l f i n the agglomeration of administrative functions and strategic planning functions at various l e v e l s of a global hierarchy. Thus i n BC o f f i c e work concentrated during the S i x t i e s , and we can expect that the rapid growth of higher echelon occupations i n the f i r s t h a l f of the 1970s w i l l have continued t h i s trend. Whether the main forces f o r concentration l i e i n the inform-ation requirements of dif f e r e n t types of organisation and the information richness of c i t i e s or i n the i n e r t i a l explanations of Alan Pred (that c e r t a i n l y seem to have some relevance to the public sector) both theories agree that we can nonetheless expect i t to continue. A l l the more so as EDP may be expected to decrease the rate of - ?6 -increase f o r employment i n programmed operations i n favour of higher l e v e l occupations. Thus employment growth w i l l occur within those types of a c t i v i t i e s that are strongly dependent on each other f o r contacts of a f a i r l y sophisticated nature. Though much of the l i t -erature i s devoted to an examination of the forces pressing f o r a decentralisation of the routine component of head of f i c e functions, closer examination reveals that such spontaneous private decentral-i s a t i o n as has taken place has generally involved merely a move of li m i t e d distance to the suburbs of the metropolis or a nearby small 2Q town. In BC then we can expect a growth of routine o f f i c e employment i n the fringes of the GVRD and, perhaps, V i c t o r i a and a f a i r l y rapid expansion of higher echelon employment i n the centre, but no large scale decentralisation to the I n t e r i o r . The growth of o f f i c e employment i n Burnaby i s perhaps a harbinger of t h i s process. I f one accepts the future scenario of continued high growth of o f f i c e employment and further concentration i n the locations that i t already favours most heavily, i t would seem that recent comments by some authors in d i c a t i n g that Vancouver's growth rate i s no longer 30 a cause f o r concern are rather premature^ . I t i s c e r t a i n l y true that the (disputed) preliminary census r e s u l t s f o r 1976 indicate that Greater Vancouver proper has grown only slowly since 1971» while other c i t i e s t h i s should not be r e l i e d upon too heavily. F i r s t of a l l there i s some dispute as to the accuracy of the postal censusi Especially i t i s f e l t that owners of i l l e g a l suites have grown much more number of reasons why - 77 -(primarily i n Vancouver) did not declare these residents, thus leading to s i g n i f i c a n t undercounting, 32 Jean Gottman makes the point that the decline of New York has been regularly predicted since the war, but i n fact although the number l i v i n g i n the region may have declined, the number working there has increased steadily. The explanation i s that r e s i d e n t i a l growth has taken place outside the census area and people have been w i l l i n g to commute larger distances. There i s some evidence that 33 t h i s could be happening i n the Vancouver region^ . F i n a l l y although some i n t e r i o r c i t i e s have grown very r a p i d l y i n the l a s t f i v e years many, such as Williams Lake that grew by 49% (from 4,100 to 6,100), only needed small absolute increases to produce large proportional ones. In many cases these towns have experienced rapid boom and bust cycles associated with resource development before, and every growing Williams Lake i s balanced by a declining Dawson Creek (down to 10,316 from 11,885). Three of the larger towns, however, Kamloops, Kelowna and Erince George — deserve more consideration* These recorded high growth rates on top of already sizeable bases. However the f e e l i n g i s that t h i s growth i s largely a service response to the expansion of resource a c t i v i t y i n the I n t e r i o r i n the 1960s. This enabled the regions concerned to pass some kind of economic threshold and develop a l o c a l servicing capacity of t h e i r own that had previously been f i l l e d from Vancouver. Economists i n the Department of Economic Development to whom I have spoken f e e l that t h i s - 78 -growth i s now slowing down, and they predict that these towns w i l l continue to grow only i n l i n e with the population as a whole unless 34 there i s a further i n j e c t i o n of a c t i v i t y from outside^ , - 79 -Notes f o r Chapter Four 1. Labour force predictions from Canada Manpower. 1976 population figures from preliminary r e s u l t s of 1976 Census. 2001 figures from M. Yeates, Main Street, (MacMillan, Toronto, 1975), p. 64 2. D.R. Webster, "Regional Development P o l i c y and Practise i n BC» A Review of Recent Events and Some Groping toward Future P o l i c y " . Dated March 9 , 1977 and submitted to BC Studies. 3. A spokesman f o r the Department of Economic Development would not confirm t h i s figure during a telephone interview, 4. Employment and output figures supplied by the Department of Economic Development. 5. See CD. Burke, The Parasites Outnumber the Hosts, (MSUA, Ottawa, 1975), P. 35 and Daniel B e l l , op. c i t . , p. 133 6. D. B e l l , op, c i t . , p. 26 7. See. R.J. Barnet and R.E, Muller, Global Reach, The Power of the  Multinational Corporations, (Simon and Schuster, New York, NY, 1974), esp. Chapter 10, "The Managerial dilemma of the Nation-State", 8. J.K. Galbraith, Economics and The Public Purpose, (Penguin, London, Eng., 1975). 9. Chris Burke, op. c i t . 10. See, f o r example, The Economist, "America's Third Century", (November 22, 1975.). 11. D.R. Webster, op. c i t . 12. M. Bannon, "Office Location i n Ireland", op. c i t . , p. 11 13. Ida R. Hoos, Systems Analysis i n Public P o l i c y i A C r i t i q u e , (U. of C a l i f o r n i a , Berkely, USA, 1972), p. 193 14. P.W. Daniels, op. c i t . pp. 44-52. 15. P.W. Daniels op. c i t . , John B. Goddard (1975) op. c i t . and Michael Bannon, A Study of Person-to-Person Communications i n the  Department of Health, (Unpublished Report prepared by AN Foras Forbartha f o r the I r i s h Public Service, Dublin, E i r e , 1976). Introduction, - 80 -16. H.D. Stewart, "The Structure of Canadian Industry" i n L.H. Off i c e r and L.B. Smith, Eds., Issues i n Canadian Economics., (McGraw H i l l , Toronto, 1974). Also, Don M i t c h e l l , The P o l i t i c s of Food. (Lorimer, Toronto, 1975), Chapter Three, "Agribusiness" and Wallace Clement, The Canadian Corporate E l i t e , (McClelland and Stewart, Toronto, 1975) Chapter Four, "Dominant Corporations and Their Interlocks", 17. P. Pearse, Report of the Royal Commission on the Forest Industry, (Queens P r i n t e r , V i c t o r i a , 1976). Shows that 10 firms control 54.5% of the forest Industry, but one, MacMillan Bloedel, controls over 25%. 18. P. Resnlck, "The P o l i t i c a l Economy of BC", op. c i t . i n Knox and Resnick, op. c i t . 19 . S. Hymer, "The Multinational Corporation and the Law of Uneven Development", i n J.N. Bhagwati, Ed., Economics and the World Order, (Collier-MacMillan, Toronto, 1972). 20. 0. Warneryd, "An operational Model f o r Regional Planning and  Development Control, i n T. Hagerstrand and R. Kuklinsky, op. c i t . Also 0 . Warneryd, Interdependence i n Urban Systems, (Regionkonsult, Aktlebolog, Gothenburg, I968), reviewed by John Goddard (1973) op, c i t , 21. A.D. Chandler and F, Reddich, "Recent Developments i n American Business Administration and t h e i r Conceptualisation", quoted by J , Westaway i n "The Spati a l Hierarchy of Business Organisations and i t s Implications f o r the B r i t i s h Urban System", Regional Studies, (Vol. 8 , 1974), p. 146 22. J . Westaway op. c i t . p. 147 23. Hymer, quoted by R. Barret and R. Muller i n Global Reach, op. c i t . , P. 42 24. R. Meier, "A Communications Theory of Urban Growth", (MIT, Cambridge, Mass., USA, I962). 25. See, f o r example, J.B, Goddard, "Office Communications and Office Locationi A Review of Current Research", Regional Studies, (Vol. 5# 1971), G. Tornquist, Contact Systems and Regional Development, Lund Studies i n Geography, Series B, No.35. Gleerup, Lund, Sweden, 1970) and M. Bannon, Office Location i n Ireland: The Role of Central  Dublin, (An Foras Forbartha, Dublin, 1973). 26. B. Thorngren, "How do Contact Systems Affect Regional Development," Environment and Planning, (Vol. 2, 1970) 26a. M Bannon, (1976), op. c i t * - 81 -,27. Pred has written a number of s i m i l a r works on t h i s subject. The l a t e s t i s A. Pred, "The Interurban Transmission of Growth i n Advanced Economies, Empirical Findings versus Regional Planning Assumptions", i n Regional Studies, (Vol. 10, 1976). See also, A. Pred, "Growth Transmission within the Australian System of C i t i e s — Observations and Recommendations", i n Australian C i t i e s Commission, The  Australian System of C i t i e s , Need f o r Research, (Australian Government Publishing Service, Canberra, A u s t r a l i a , 1975) and A. Pred, Major  Job Providing Organisations and Systems of C i t i e s , (Commission on College Geography, Paper 27, Association of American Geographers, Washington DC, DSA, 1974.) 28. Pred, (1976), op. c i t . 29. See J.B. Goddard, (1973) op. c i t . and P.W. Daniels, op. c i t . , Chapter nine. 30. D.R. Webster, (1977), op. c i t . 31. Vancouver grew by only 4% between 1971 and 1976 compared with 23% f o r Kamloops, 19% f o r Prince George. Sourcei 1976 Preliminary Census Data. 32. J . Gottman, "The New Geography of Transactions and i t s Implications f o r Planning", i n An Foras Forbartha Teoranta, The Application of Geographical Techniques to Physical Planning, (AFFT, Dublin, E i r e , 1971). 33. See D. Guerrete and L.L.S. Cheng, A Settlement System Plan  f o r BC, (Unpublished SCARP monograph, 1976). 34. Interview with Mr. G, Sandve of Ministry of Economic Development, August 1976 and a telephone Interview with Mr, Chris Nelson of the same department, 14 Feb. 1977. - 82 -Chapter Fivet The Regional Implications of the Growth of Office  Employment In the previous chapter we saw how the structure of modern organ-isations has resulted i n the concentration of higher order o f f i c e functions i n a few s p a t i a l l o c i . In consequence, most regions are administered from the major centre (In BC's case, with both a 'private' c a p i t a l — Vancouver ~ and a 'public' one — V i c t o r i a — t h i s should perhaps be amended to read 'major centres', though there i s good reason for regarding the two s p a t i a l l y proximate centres as, i n r e a l i t y , one functional u n i t . Certainly, one could expect an intensive pattern of information flows and contacts between the two,) As a r e s u l t of t h i s c e n t r a l i s a t i o n of power, decisions are made at the upper le v e l s and passed down to the lower ones. Freedom of action at the lower l e v e l i s constrained and the benefits of development tend to accrue upwards, i n t h i s case to the two CMAs and the foreign centres of multinational control. The I n t e r i o r regions are consequently characterised by an absence of decision-making functions and a f a i l u r e to develop linkages with each other. Rather a l l contacts pass through the major centres. This s i t u a t i o n has a number of consequences f o r the s p a t i a l development of the Province which w i l l be commented upon i n t h i s chapter. I t i s appropriate at t h i s point to outline the government's regional development p r i o r i t i e s as expressed i n the General Development Agreement (GDA) signed between the Province and the Federal Government on the 28 March, 1974 1 , The objective of the GDA was to encourage federal-provincial cooperation i n the following areas. - 83 -1, The i d e n t i f i c a t i o n of opportunities for productive employment, 2, The promotion of balanced development among regions of BC, 3, To reduce the amplitude and resultant s o c i a l impact of economic fluctuations i n the Pr o v i n c i a l economy, 4, An increasing sectoral and regional d i v e r s i f i c a t i o n of s p e c i f i c key industries, 5, The maximisation of higher value added processing and manufact-uring of the Province's resource base. These general objectives are, of course, inherently unobjection-able 'motherhood' goals and t h e i r p r a c t i c a l influence on policy must be questioned. Certainly the one concrete r e s u l t of the GDA arid i t s attendant Interim Planning Agreement (IPA) studies — the provision of a sewage system f o r Fort St, J ohn — i s hardly i n the same league as the type of p o l i c i e s implied by the above rh e t o r i c . However i t w i l l be useful to keep these general objectives i n mind when looking at the regional development effects of the cont-inuing concentration of o f f i c e employment, I , Income Inequalities Despite the fact that i t i s generally recognized that i n t e r -regional d i s p a r i t i e s i n income tend to be smaller than inter-personal 2 3 d i s p a r i t i e s , and the IPA studies have shown t h i s to be true f o r BC , Stuart Holland claims that "they (regional d i s p a r i t i e s ) a f f e c t many more people because of the less concentrated extremes," However, the fact that most people i n modern c a p i t a l i s t economies l i v e i n regions or areas which have within them major differences i n income per head, job opportunity, s o c i a l environment and general - 84 -opportunity makes a straight regional d i s t i n c t i o n between , p r i v i l e d g e d , and 'underprivileged' naive and over-simplistic. In f a c t the s i t u a t i o n i n BC i s much more complicated especially with regard to income and employment opportunity and disequitles are experienced both at the centre and i n the periphery. In general, higher material rewards accrue to the white-collar than to the manual occupations. The figures i n Table V.I show that t h i s may be less the case i n BC than i n other countries^, because of the very high rates of manual remuneration revealed i n Chapter Two. How-ever, a number of authors have cautioned that Income figures alone do not t e l l the whole story and that various concealed or long-term 6 advantages of white c o l l a r workers must also be taken into account. These include pensions, promotion prospects and s t a b i l i t y of employ-ment. Giddens concludes that "the idea that any kind of o v e r a l l merging of ihe two groups (white c o l l a r and manual) i s taking place may be unequivocally rejected. The overlap i s confined to segments of s k i l l e d manual occupations on the one hand and of c l e r i c a l and sales 7 occupations on the other." I f we accept that greater economic benefits should j u s t l y flow to the 'higher' occupational groups, t h e i r geographic concentration nonetheless creates a s p a t i a l disequity both i n terms of income and employment opportunity. Opportunities for intra-generational mobility for someone working outside Vancouver or V i c t o r i a are l i m i t e d by the absence of higher l e v e l functions i n that area as well as by the separation of the aspirant from the control centre and the designation of his area as - 85 -Table V.I, Median Incomes for Full-Time Occupational Groups, 1971» F u l l Time Managerial Male $ 11,500 Female $ 6,355 Science 9,882 6,529 Social Science 10,666 7,877 Teaching 10,548 8,215 Medical 11,020 6,010 A r t i s t i c 7,854 4,654 C l e r i c a l 7,371 4,730 Sales 8,303 3,958 Service 6,820 3,654 Farming 4,876 2,678 Processing 7,651 4,810 Forestry- 8,161 5,000 Mining 9,365 0 Machining 8,318 4,885 Product Fabricating 8,196 4,029 Construction 8,493 6,622 Transport 8,200 4,301 Materials Handling 7,583 4,992 Source 1 1971 Census - 86 -one of * production'. S i m i l a r l y , opportunities f o r intergenerational mobility are also lessened i n peripheral regions. I f individuals do proceed to further education, "and the lack of l o c a l job opport-Q u n i t i e s i s a positive disincentive," the l i k e l i h o o d i s that they w i l l have to move out of t h e i r region. Westaway concludest "We can therefore reasonably expect that regional variations i n the occupational d i s t r i b u t i o n of labour w i l l lead i n the f i r s t instance to corresponding variations i n s o c i a l mobility, involving great waste of human po t e n t i a l , and secondly to a selective migration away from (Interior) ... areas, thus depriving those areas of the services of o such valuable members." The concentration of c l e r i c a l occupations has disequitable effects as w e l l . For though these jobs are generally low paying, (See Table V . l ) , they are almost exclusively f i l l e d by women10 11 working for a second family wage. The IPA Studies i n d e n t i f i e d the lack of female employment opportunities as a major problem of 12 i n t e r i o r towns . Thus c l e r i c a l concentration, though less pro-nounced than for higher echelon work, contributes both to a lesser family income and employment opportunity i n the disfavoured I n t e r i o r . I I , Lack of Development Opportunity Perhaps the most important disequity, though, l i e s i n the i n e q u a l i t i e s i n regional development opportunity caused by the con-centration of o f f i c e employment. The d i s t r i b u t i o n of o f f i c e func-tions i n large job-providing organisations i s a basic cause of one of the well known problems of peripheral regions, i e , the problem of m u l t i p l i e r linkages back to central regions. As employment - 87 -i n 'productive' functions of these organisations i s expected to grow only slowly or even to decline as a r e s u l t of increased productivity, while employment i n t h e i r o f f i c e functions i s expected to increase, we can expect t h i s effect to be further strengthened to the benefit of Vancouver and the detriment of the I n t e r i o r . Further, investment decisions of organisations are not under l o c a l control but rather that of the head o f f i c e . Pred has shown that organisational search patterns are very l i m i t e d and r e s t r i c t e d to areas with which the organisation i s f a m i l i a r or has contacts. Thus since most search and contact work i s carried out by employees i n the head o f f i c e , t h i s w i l l tend to re s u l t i n some bias against those parts of the country farthest away from other major contact points — i e . the peripheral regions. Regionally based firms are also disadvantaged by the concentration of high l e v e l control functions. We have already seen that the face to face exchange of information i s an important feature of l e v e l I and I I operations. Because these parts of most public and private organisations are heavily concentrated i n the c a p i t a l , firms located elsewhere can have severe problems of access to v i t a l sources of 13 information. Their s u r v i v a l chances therefore are less than those of firms located i n the c a p i t a l . Occupational differences In employment s t a b i l i t y are also amplified by the d i f f e r i n g predominance of various forms of work i n di f f e r e n t regions. Figure V.II shows that unemployment rates are, i n general, both lower and more stable f o r the o f f i c e occupations that - 88 -Table V.II. Quarterly Unemployment Rates i n B r i t i s h Columbia* 1974 - 1976. Percentage Unemployed A l l Managerial Science, Processing Occupations & Admin. Eng. & Math. 1974, 1st Quarter 6.5 3.1 5.3 8.5 2nd 5.6 2.6 3.8 5.3 3rd 5.4 2.4 3.1 4.6 4th 6.9 2.5 4.4 10.9 1975, 1st Quarter 9.6 2.9 5.7 20.0 2nd 7.9 2.9 4.5 13.9 3rd 7.7 2.7 4.7 13.2 4th 8.0 3.1 5.3 17.4 1976, 1st Quarter 9.8 2.7 5.1 14.6 2nd 8.1 2.5 4.3 9.7 3rd 8.1 2.1 4.2 6.8 4th 7.7 2.2 4.2 7.4 - 89 -Table V.II. (Cont'd.) Machining 1974, 1st Quarter 11.6 2nd 9.3 3rd .7.7 4th 10.3 1975, 1st Quarter 14.8 2nd 12.0 3rd 13.4 4th 13.1 1976, 1st Quarter 12.1 2nd 9.8 3rd 9.6 4th 8.8 Mining, Clerical Forestry, Quarrying Logging 14.8 8.7 29.4 10.3 8.2 17.9 8.5 7.7 13.0 12.7 8.3 22.0 23.3 9.5 36.5 17.6 9.5 19.6 14.2 9.1 27.4 16.4 9.9 24.8 15.9 8.4 23.0 13.5 7.8 18.9 11.0 7.3 12.4 9.0 7.6 10.3 Source 1 Unemployment Insurance Commission. - 90 -form a large proportion of employment i n metropolitan areas than are those for the processing and resource industries that underpin the economy of the I n t e r i o r regions. The important forestry and mining industries, whose exports provide the basis f o r BC prosperity, are extremely vulnerable to world market fluctuations because over 75% of t h e i r output i s exported. In 1974, f o r example, a f t e r a three year period of increasing demand and near-record prices for lumber, a severe downturn i n the market caused more than 16,000 d i r e c t l a y o f f s i n the primary and secondary portions of the forestry industry. As a DREE report comments, "The consequences of t h i s v o l a t i l i t y are amplified by the industry/community structure of B r i t i s h 14 Columbia." Clearly a more even spread of stable employment would lessen the effects on the l o c a l community of these external f l u c -tuations. More opportunities f o r women i n o f f i c e type jobs would also help to mitigate the destablising effects of 'boom and bust' cycles on the families of the resource workers. I l l , Effects on the Central Region The deleterious effects of o f f i c e concentration are not confined to the outer regions alone, though. The present pattern of location also gives r i s e to some concern f o r the metropolitan areas themselves. As revealed i n Chapters 3 and 4 , there appears to be a trend f o r o f f i c e functions i n general and head o f f i c e functions i n p a r t i c u l a r to concentrate i n these centres, R.E. Pahl i n England and Wilbur 15 Thompson i n America have shown that these ' e l i t e s ' draw i n a large amount of supporting service employment. Much of i t i s necessary to -91-enable them to perform e f f i c i e n t l y — o f f i c e cleaners, receptionists, messengers etc, but much i s also t i e d to the servicing of t h e i r l i f e -s t y l e s . As we saw when we were examining B e l l ' s theories, the higher the income the higher the propensity to consume services. Thus these better paid occupations have a high employment creating e f f e c t , but mainly of service jobs that are among the lowest paid i n the economy as can be seen from Table V,I, In London, t h i s trend i s causing increasing s o c i a l polarisation as was revealed by a recent 16 "Economist" study, "Thus whereas the ... ( i n t e r i o r ) ... regions have a stunted career ladder, the trend i n London i s towards an occupational structure well represented at the bottom and the top 17 but lacking i n intermediate jobs," This trend i s not yet as evident i n Vancouver, Because of i t s general dominance of the Province i t s t i l l has a wide range of processing employment. However, i t has a noticeably smaller share of these intermediate categories than 18 i t s share of the pr o v i n c i a l labour force would seem to warrant. Thus we can expect polarisation to increase with continued high growth i n o f f i c e and i t s attendant service employment, but stag-nation i n the processing sector. Vancouver can also expect to experience 'growth pains' as a result of the further concentration of the fastest growing occup-ations. These were evidenced i n the 60s and early 70s for instance, by a rapid i n f l a t i o n of house prices so that by 1973 l e s s than 2% of the population could have afforded a new house on t h e i r income 19 alone. 7 The GVRD i n i t s "Liveable Region" plan revealed that Vancouver has very l i t t l e room i n which to expand as i t i s con-- 92 -strained on three sides by the sea, the mountains, and the USA border. Thus future growth w i l l be funnelled up the Fraser Valley. This area and the Fraser Delta to the south of Vancouver also contains the best farmland i n the Province. Despite the inclusion of much of t h i s land i n A g r i c u l t u r a l Land Reserves, continued growth of Vancouver w i l l involve some hard choices about i t s use. Further as the name of the GVRD study suggests, there are now d i s t i n c t " L i v e a b i l l t y " problems i n the Region that would be exacerbated by future rapid growth. IV. What Should be Done? We have seen that the present pattern of o f f i c e concen-t r a t i o n , especially of higher order functions, has income opportunity employment opportunity and development opportunity disadvantages f o r the non-metropolitan regions of the Province, Patterns of future development as presently foreseen can be expected to exacerbate these disadvantages. Thus the regions cannot be expected to evolve a 'mature' occupational or employment structure s i m i l a r to that of the Province as a whole. Nor can they expect to develop above t h e i r present l e v e l of peripheral reliance dependent on c a p i t a l from out-side to finance t h e i r growth. S i m i l a r l y , t h e i r c i t i e s w i l l remain as centres providing l o c a l services only. The l a t t e r two of these points also apply to the Province as a whole, of course, though to a lesser degree. On the other hand, the consequences of a continuation of present patterns of occupational d i s t r i b u t i o n i n the Province can be expected to lead to a s o c i a l p o larisation of the metropolitan regions and a lowering of the q u a l i t y of l i f e , at least i n Vancouver. - 93 -This s i t u a t i o n , then, would not seem to conform to the objectives espoused by the P r o v i n c i a l and Federal governments i n t h e i r GDA f o r the Province, In p a r t i c u l a r , i t would seem to run counter to the objectives of balanced development, of reducing the impact of economic fluctuations ( i n the resource-based I n t e r i o r ) and of increasing the d i v e r s i f i c a t i o n of key Industries, For c e r t -a i n l y o f f i c e employment must now be recognised as a "key" area. However, though we can i d e n t i f y c e rtain disadvantages with the present system, that does not mean that i t must necessarily be changed, A good case could be made that the ultimate health of the Province depends upon maximising the e f f i c i e n c y of the firms that operate here by allowing a continuation of t h e i r present patterns of development. Thus we should accept the associated geographical effects as one price of our prosperity, Westaway quotes Yannop-oulos as being i n favour of t h i s type of solution. " P o l i c i e s to redistribute o f f i c e employment can be successful i f they are designed to redirect selected o f f i c e employment to a number of centres whose 21 functions correspond to that l e v e l of task," I n the BC case, with i t s underdeveloped settlement system, t h i s would mean at best the re d i s t r i b u t i o n of some programming employment to the larger i n t e r i o r centres. However, such a policy prescription rests on three assumptions 22 of which "at least two are unsubstantiated". Namely that s p a t i a l concentration of control units i s the most e f f i c i e n t way i n which to organise large organisations} that the best arrangement f o r these organisations i s also best for society and f i n a l l y that such econ-- 94 -omic benefits as exist outweigh t h e i r s o c i a l and developmental consequences. In the age of the f r e e l y competing neo-classical firm we could have been reasonably sure that the system worked at least to maximise the algebraic sum of advantages and thus one d e f i n i t i o n of the welfare of society as a whole. Any interference would have had severe economic e f f i c i e n c y consequences that would probably have worked to the detriment of the majority i f to advantage of a few. The system worked automatically to produce an "optimal" d i s t r i b u t i o n of production, as shown by Vilfredo Pareto. Today though we cannot be so sure. For capitalism has changed, C.B, MacPherson observes that "Capitalism has become a managed economy. I t i s managed by price-making firms ,., and i t i s managed by the state ... A c a p i t a l -23 ism managed i n those ways i s not the same as the old model," Countless studies have been produced to reinforce that view and also to cast doubt on whether i t i s r e a l l y possible nowadays to determine whether a p a r t i c u l a r practice enhances the e f f i c i e n c y of the economy 24 or not. Indeed, one must question whether, i n a class divided society, there was ever any v a l i d i t y i n the Pareto optimality concept i n the f i r s t place, when i t took the d i s t r i b u t i o n of income and wealth and hence power, as a "given", Pareto*s concept of "optimality" was an extremely narrow one indeed, .But i f the various d i s t o r t i o n s of the economy associated with the growth of oligopoly and monopoly practices leave one unable to assess the f u l l economic impact of a part i c u l a r p o l i c y how does one decide on any course of action? Obviously, one must have rather less ambitious terms of reference - 95 -than global comprehension and these are provided by John Rawls i n 25 h i s seminal work, "A Theory of J u s t i c e " , He bases h i s theory on two p r i n c i p l e s , "The f i r s t requires equality i n the assignment of basic r i g h t s and duties, while the second holds that s o c i a l and  economic i n e q u a l i t i e s ... are .just only i f they r e s u l t In compen- sating benefits for everyone," Thus i n Rawl's scheme i t would be i n s u f f i c i e n t to j u s t i f y c e r t a i n i n s t i t u t i o n s on the grounds that the hardships of some are offset by a greater good i n the agg-regate. " I t may be expedient but i t i s not just that some may have 26 less i n order that others may prosper." Though Rawls i s c l e a r l y t a l k i n g about s o c i a l class i n e q u a l i t i e s , h i s theory applies equally well to s p a t i a l ones. I maintain that t h i s chapter has demonstrated that the geographical implications of the concentration of o f f i c e employment do not meet Rawl's conditions, rather that as f a r as we can see compensating benefits f o r everyone do not r e s u l t . Thus i n the next chapter we s h a l l look at the use that the public sector can make of i t s powers, esp e c i a l l y i t s own sizeable o f f i c e employment to disperse those occupations more evenly across the Province• - 96 -Notes for Chapter 5 1. General Development Agreement! B r i t i s h Columbia, Signed 28 March, 1974, between BC and the Federal Government. (Published by DREE, Ottawa, 1974). 2. See, for example, Stuart Holland, The Regional Problem, (MacMillan, London, UK, 1976), Chapter 1. 3 . See, f o r example, D.R, Webster, I , Mellor, P. Paulson, A Preliminary  P r o f i l e of Social Structure, Manpower Characteristics and Community  Characteristics i n the Mid-Coast Region of BC, Unpublished mono-graph prepared f o r the IPA Regional Studies, Department of Economic Development, Government of B r i t i s h Columbia, pp. 7»9»H. 4. S.K, Holland, The Regional Problem, op. c i t . p. 14 5. See, f o r example, J . Westergaard and H. Resler, Class i n a C a p i t a l -i s t Society, (Heineman, London, UK, 1975) for a discussion of the B r i t i s h s i t u a t i o n . 6. See, f o r example, A. Glddens, op. c i t . , chapter 10 and T.B. Bottomore, Classes In Modern Society, (George A l l e n and Unwin, London, UK, 1970). 7. A. Giddens, op. c i t . , p.10 8. Goddard (1973), op. c i t . 9. Westaway op. c i t . , p. 152 10. In 1971, there were 36,760 male c l e r i c a l workers and 104,980 female ones i n BC. That i s to say nearly 75$ of a l l c l e r i c a l workers were women, 11. Government of B r i t i s h Columbia, IPA Regional Studies and Back- ground Papers f o r the North East, Central, Kootenay and Mid-Coast  Regions of B r i t i s h Columbia, Prepared f o r the Department of Economic A f f a i r s 1974 and 1975. (Queen's P r i n t e r , V i c t o r i a , 1975 and 1976). 12. Thus while over 36% of the I97I Vancouver labour force and 37% of that of Capital consisted of women the corresponding figures f o r a l l other regions are less than 30%. Even the largest regions, Fraser-Fort George and Thompson-Nicola, had only 29% and 30% respectively, 13. J.B. Goddard (1973), P.22 14. DREE, Climate f o r Regional Development, op, c i t . - 97 15. R.E. Pahl, "Poverty and the Urban System" i n M. Chisholm and G. Manners, Ed., S p a t i a l P o l i c y Problems of the B r i t i s h Economy. (Cambridge, UP, Cambridge, UK, 1971). Also, W.R. Thompson, "The National System of C i t i e s as an Object of Public P o l i c y " , i n J . Friedmann and W, Alonso, Regional P o l i c y , op. c i t . 16. See "London's Burning" i n The Economist, January, 1977. 17. Westaway, op. c i t . p. 152. 18. Thus Vancouver has only about 36% of processing employment, 11% of forestry employment, 20% of mining employment and rather less than 50% of the product f a b r i c a t i n g , 19. Tom Gunton, Modernising the Land Development Process, Unpub-lishe d monograph, 1975). 20. GVRD, The Liveable Region, 1976/1986, 21. Westaway, op. c i t . , p. 153 22. Westaway, op. c i t . , p. 153 23. C.B, MacPherson, "Post L i b e r a l Democracy?" i n R. Blackburn, Ed., Ideology i n Social Science, (Fontana, London, UK, 1972). p. 18 24. On the l a t t e r point see, f o r example, R.G, Lipsey and K. Lanca-s t e r , "The General Theory of the Second Best". Review of Economic  Studies, (Vol. 24, 1956-57). On the former see, f o r example J.K, Galbraith, op. c i t , , R. Barnet and R, Muller, op. c i t . , and G. Bannock, The Juggernauts, (Penguin, London:, UK, 1971) among others. 25. J . Rawls, A Theory of J u s t i c e , (Balknap, Cambridge, Mass., USA, 1971). 26. This and previous quotes from Rawls, op. c i t . , p. 15 - 98 -Chapter VI. The P o l i c y Response I , A Strategic Role f o r Government Office Employment In Chapter Two I talked about the influence of ideas on p o l i c y , especially, those ideas that Edmund Burke would have described as "prejudices". 1 For many years our society defined i t s e l f as ' i n d u s t r i a l ' and the basis f o r public p o l i c i e s to encourage regional development was.- output oriented, with an i m p l i c i t assumption that t h i s would lead to increased employment. This was generally true a number of years ago, but the approach has been extended to the point where p o l i c i e s are based on the assumption that goods production, p a r t i c u l a r l y manufacturing, acts as the 'engine of growth' and that the broadly defined service sector ( i e . a l l the non-manufacturing jobs) automatically follows. Public policy has come to be based very heavily on t h i s "prejudice", with the major federal incentive programmes l i m i t e d to manufacturing. In t h i s Province, both the past NDP government and the present Social Credit are concentrating t h e i r major e f f o r t s on the encouragement of productive enterprise. Thus the sector studies done as a part of the IPA/GDA programmes concentrated almost exclusively on primary and secondary a c t i v i t i e s such as agriculture, f o r e s t r y , mining, construction etc. The single exception was a study of the recreation sector. S i m i l a r l y , former Economic Development Minister Gary Lauk, defined h i s p r i o r i t i e s i n terms of encouraging the development of 2 c o a l , s t e e l and copper smelting operations i n the Province, The present government, as has been sa i d , i s primarily concerned with - 99 -developing the North-East coal deposits though i t has also recently come out with a proposal to subsidise the development of copper smelters as w e l l . However, while Canadian public policy seems to be f i r m l y con-vinced of the v a l i d i t y of the 'manufacturing i n the lead' approach, i t has been overtaken by events. A c r i t i c a l s t r u c t u r a l change has taken place i n the economy. Employment growth has moved away from goods production to the service occupations and we seem to be moving into a post-Industrial phase of development. P a r a l l e l i n g t h i s s h i f t which has been taking place over a long period of time, has gone the concentration of power i n t o hands of a r e l a t i v e l y few h i e r a r c h i c a l organisations. These have separated t h e i r r a p i d l y growing control functions from the lower production units and have concentrated them along with the control units of other organisations i n certain urban centres. Thus the a c t i v i t i e s that are now the most important i n terms of employment creation no longer follow the production u n i t s , but act according to t h e i r own l o c a t i o n a l c r i t e r i a , A public policy based on the a t t r a c t i o n of manufacturing then i s e s s e n t i a l l y f i g h t i n g f o r a larger s l i c e of an almost s t a t i c cake that w i l l provide only small benefits i n terms of d i r e c t and i n d i r e c t ( i e , l o c a l l y oriented services) employment for the l o c a l area. Mean-while, the major share of the employment created by that manufacturing i s allowed to escape by means of the non-local m u l t i p l i e r to the control centre. I t i s uncertain why public policy makers have s t i l l not f u l l y come to terms with the new r e a l i t i e s , Chris Burke believes that i t 100 i s because of a strong moralistic approach to goods production, that there i s a f e e l i n g that production to s a t i s f y physical human needs i s inherently good, while production to s a t i s f y human whims through services i s fri v o l o u s or wasteful. "This approach makes good moral sense. I t loses i t s punch when such goods as automobiles or dishwashers are c l a s s i f i e d as needs and services such as theatres, education and tax 3 c o l l e c t i o n are defined as f r i v o l o u s . " Whatever the reason f o r t h i s slowness to react however, i t i s rather surprising as growth of government has been an int e g r a l part of post-industrial development. Moreover, as t h i s growth has tended to occur not so much at the t r a d i t i o n a l l e v e l of providing d i r e c t personal services, but at the higher l e v e l of planning and general administration, governments too have contributed to the concentration of power and employment growth. That i s to say t h e i r establishments i n the c a p i t a l c i t i e s have expanded much more quickly than those i n the f i e l d . Given the previously i d e n t i f i e d deleterious effects of t h i s public and private concentration we once again see evidence of the i m p l i c i t e ffects of government policy working strongly to contradict I t s e x p l i c i t goals, as expressed i n the BC case i n the GDA agreement. However, the fact that the public sector has a strong presence i n the o f f i c e sector puts i t i n a good position to influence the future s p a t i a l development of the Province. Public sector o f f i c e employment now accounts f o r about 3*5% of the t o t a l labour force, or about 11% of the o f f i c e labour force. This figure i s arrived at thusi Federal government o f f i c e employment accounts for about 1.4$ - 101 -of the t o t a l labour force (See Table I I I , I I I ) . An educated guess puts P r o v i n c i a l government o f f i c e employment at just under one ha l f i t s t o t a l s t a f f . This would give i t approximately as well (SEE Table I I . I I ) , Employment i n the Grown Corporations and i n s t i t u t e s of higher education accounis f o r about a further one percent (See Chapter IV, Section VI). This includes'guesstimating' of f i c e employment f o r the BC Railway, Canadian Cellulose and BC Ferries at 250 each or roughly 10% of t h e i r respective work forces. We come up with t o t a l Public Sector o f f i c e labour force equal to 3*8% of the t o t a l labour force, J.'5% i s probably a safe conservative estimate. Since the government has power not only to influence but to decide the location of the o f f i c e work under i t s c o n t r o l , the r e -location of higher l e v e l work i n the public sector i s now seen by a number of authors and governments as a f i r s t step towards countering the regional imbalances c f i t i c i s e d i n the l a s t chapter, and leading 3 to the large-scale relocation of o f f i c e work i n the private sector , Public sector o f f i c e employment i n BC, w e l l spread over a number of areas such as administration, planning, commercial operation and education seems to be p a r t i c u l a r l y w e l l placed i n t h i s regard, I I , Experiences of Other Governments In my discussions with various academics and government funct-ionaries i n BC,however, i t has become clear that o f f i c e relocation i s r e a l l y a 'non-issue' as f a r as the present government i s concerned. Thus the following policy implications are drawn la r g e l y from experience i n Sweden"*, B r i t a i n ^ , and Holland'', and Ireland^ and, to a 9 lesser extent Alberta which has been pursuing a pol i c y of l i m i t e d - 102 -decentralisation f o r some time, but which has been rather quiet i n discussing i t s experience. Much of the l i t e r a t u r e of o f f i c e location i s devoted to the nature of the communications linkages that t i e o f f i c e s to urban centres and I commented on t h i s i n Chapter 4. From a communications point of view, i t i s r e l a t i v e l y easy to relocate to other regions those branches of the organisation without external contact or those with l i m i t e d contact functions. This would apply to people involved i n programming functions whose contacts are largely r e s t r i c t e d to receipt or donation of a s p e c i f i c piece of information. The r e -location of t h i s type of job function (mainly of the c l e r i c a l nature) would bring new incomes to the reception area, improve i t s employment base and may represent a beginning upon which to base further r e -location decisions. In the BC context, i t would provide some of the female employment i d e n t i f i e d as lacking i n the I n t e r i o r and also help to s t a b i l i s e the l o c a l economy. However, precisely because of the lack of communications constraints upon the relocation of routine work, i t s relocation would only be of l i m i t e d benefit to a region f o r a number of reasons: f i r s t l y , i t w i l l not lead to a major improve-ment of the contact structure of the area and i s therefore u n l i k e l y to induce any other type of work to follow. Thus the growth impetus would be a 'one-off rather than a self-sustaining thrust. F i n a l l y , routine work i s of the type under the most immediate threat of automation and job displacement, Goddard points out that greater regional equality w i l l only be achieved by a substantial r e d i s t r i b u t i o n of higher l e v e l o f f i c e jobs - 103 -and t h i s poses greater problems even for the Public Sector. For although these functions are more l i k e l y to react with the l o c a l environment and to lead to an expansion of l o c a l contact structures, t h e i r functioning could be unacceptably impaired i f they are directed at a large number of di f f e r e n t centres within the I n t e r i o r since these areas w i l l i nevitably provide inadequate contact f a c i l i t i e s . As a response to t h i s the practice i n Sweden and Holland has been to t r y and use concentrations of key o f f i c e functions to create development poles i n peripheral regions. I t i s accepted that some l e v e l of concentration i s necessary to r e t a i n some of the benefits of agglomeration. This p o l i c y , then, involves the selection of a small number of centres, spread throughout the country as the location f o r higher order government o f f i c e s and some geographical variations i n occupational d i s t r i b u t i o n w i l l therefore remain. However, as I have already stated, i t i s probably neither feasible nor desirable to r e -move them a l l . Thus one i s e s s e n t i a l l y looking at a policy of m i t i g -ation rather than elimination. I f the po l i c y i s to be successful though, i t requires more than the relocation of o f f i c e functions. I t also requires a determined e f f o r t to b u i l d up the l o c a l contact base. For t h i s reason r e l o c -ation i n the Netherlands, for example, i s accompanied by major expansion of the l o c a l higher education f a c i l i t i e s . Goddard has also demonstrated the importance of heavy investment i n communications i n the receiving area, both In improving l i n k s between smaller centres rather than just with the c a p i t a l region, and i n high technology communications,^ - 104 Dispersal of government o f f i c e employment i n Sweden has been remarkably successful i n encouraging the development of new commercial l o c a l contacts, while at the same time maintaining the more c r i t i c a l non-commercial contacts with Stockholm, 1 1 Thus the Swedes have embarked on a programme to disperse some 11,000 employees, or about one quarter of those i n the C a p i t a l , from Stockholm between 1972 and 1980. As a s p e c i f i c act of regional policy those o f f i c e s chosen f o r relocation were characterised by t h e i r high dependence on 'planning' communications, representing q u a l i f i e d , but narrow, exchanges of information with a r e s t r i c t e d set of outside sources. The Swedish case i s p a r t i c u l a r l y applicable to BC i n that Sweden i s a r e l a t i v e l y large country with an extensive and underdeveloped periphery. Thus although i t was considered desirable to confine the relocation to larger centres of 100,000 or more, i n fact nine centres with pop-ula t i o n of less than 60,000 were among the f i f t e e n chosen. One, Lulea, i s located just south of the A r c t i c C i r c l e some 1,000 kilometers from Stockholm, Studies undertaken i n England as a part of S i r Henry Hardman's report indicate that developments i n telecommunications could quite acceptably substitute f o r a large number of contacts that at present 12 are carried on face to face. Commenting on these factors, Goddard concludes that " i t can be anticipated that the dispersal of government of f i c e s w i l l encourage linked commercial firms to follow suit and w i l l also lead to the establishment of new o f f i c e a c t i v i t i e s i n the reception centre to 13 meet the new demand," - 105 -I I I . The Implications f o r BC The European experience would seem to indicate that a regional development strategy based on the relocation of planning l e v e l control functions to a small number of growth centres i s a p r a c t i c a l p o s s i b i l i t y . Functions involving orientation type communication, i t i s generally accepted, have to remain at the centre. Thus while the very highest echelons of the Public Service must be regarded as l o c a t i o n - t i e d to the c a p i t a l i t seems as though the t i e s binding the lower l e v e l s can be broken. The p a r t i c u l a r d i s t r i b u t i o n of occupations i n BC, however, would seem to merit some caution when recommending a po l i c y of decentralisation, V i c t o r i a , the P r o v i n c i a l c a p i t a l , i s a town heavily dependent on government employment. I t would make l i t t l e sense to press forward with a policy of decentralisation of govern-ment functions to the extent of materially harming the town's prosperity. However as the o f f i c e employment of both public and private sectors i s expected to continue to grow, regional goals could probably be achieved by locating a l l additional government employment outside the metropolitan areas and by decentralising from Vancouver, The Crown Corporations, such as BC Hyrdo and ICBC, look especially a t t r a c t i v e i n t h i s respect, as they have strong contacts with the private sector. In his examination of the location patterns of large organisations, Alan Pred noted what he c a l l s the "Wichita ef f e c t " . While looking at the employment locations of companies' headquarters i n the Seattle-Tacoma SMSA, Pred noticed that a sur-p r i s i n g l y large number of jobs i n the r e l a t i v e l y small c i t y of - 106 -Wichita were controlled from there. Boeing, the largest company i n Seattle-Tacoma, had o r i g i n a l l y opened up a plant i n Wichita and had been followed by a number of other companies that were not func-t i o n a l l y related to i t , Pred concludes that t h i s 'follow my leader' location pattern i s a r e s u l t of the contact system i n Seattle-Tacoma, Having attracted one member of a linked group, Wichita was i d e n t i f i e d as a possible location by the other members. Thus we may hope for s i m i l a r r e s u l t s when moving the headquarters of a 'contact dense' public sector organisation. The cost of decentralisation strategy i s something we have not yet considered, Thorngren claims that, i n the Swedish case, the ultimate savings i n investment w i l l more or less cover the cost of the whole operation, but he says nothing about any adverse effects on 14 organisational e f f i c i e n c y that must also be regarded as costs. However, even i f we accept that decentralisation would involve the BC Government i n some considerable expense that would at best be recouped only i n the long term, there i s s t i l l a very good case f o r recommending such a p o l i c y . We saw i n Chapter I that government i m p l i c i t p o l i c i e s , involving the direct commitment of public money to a p a r t i c u l a r region have been f a r more powerful determinants of s p a t i a l evolution than e x p l i c i t l y 'regional' subsidy programmes. Thus i t would seem sensible f o r a government committed to regional development to use o f f i c e decentralisation as a policy t o o l and use the resources that would otherwise have been devoted to more conventional programmes to offset the costs of such a strategy. - 107 -IV, The Need f o r Further Research I t i s always depressing to end a piece of work emphasising the need for further research, but that i s c l e a r l y the case here. While I have revealed the importance of o f f i c e employment, i n the BC economy, and the strategic role that government employment could play i n i t s future development, I have only been able to give some preliminary indications as to how t h i s might be carried out, A l o t more work needs to be done before an operationally viable pol i c y could be a r t i c u l a t e d . In p a r t i c u l a r , we need to know more aboutt 1, The present structure of the urban system, 2, The strength of the various contact systems within Vancouver and V i c t o r i a and in: p a r t i c u l a r the l i k e l y communications costs of dispersal, 3, The cost of extending sophisticated telecommunications systems to the I n t e r i o r c i t i e s , 4, The willingness of suitably q u a l i f i e d s t a f f to move from the metropolitan centres to those of the I n t e r i o r , 5, The multitude of p r a c t i c a l problems that l i e between the theoretical formation of an idea and i t s ultimate adoption. 108 -Notes to Chapter 6. 1. Edmund Burke, Reflections on the Revolution In France, (Scott, London, UK, 1900). 2. "BC Eyes Major Decisions on I n d u s t r i a l P o l i c y " , The Province, (February 8 , 1975). 3. Burke, op. c i t . 4. Goddard (1973) op. c i t . See also B, Thorngren, "Communications Studies f o r Government Office Dispersal i n Sweden", i n M.J. Bannon, Ed., (1973) op. c i t . 5. B. Thorngren (1973) op, c i t . andJ.B. Goddard, "Contact Studies and Office Decentralisation from London and Stockholm", i n J.C. Coppock and J . Sewell, Ed., Public P o l i c y , (Pergammon, Oxford, UK, 1976). 6. P.W. Daniels, op. c i t . , Goddard (1971, 1973, 1975) op. c i t . and S i r , H. Hardman, The Dispersal of Government Work from London, (CMND 5322). J . Rhodes and A. Kan, Office Dispersal and Regional P o l i c y , (Cambridge UP, UK, 1971). ?. J . Toby, "Regional Development and Government Office Relocation; i n the Netherlands", i n M. Bannon, op.cit, 8. M, Bannon (1976) op, c i t , and M. Bannon, Studies of Office Linkages and Location i n Ireland, (An Foras Forbartha Teoranta, Dublin, E i r e , 9. Faculty of Environmental Design, U, of Calgary, Alberta Environ- ment Laboratory and Research Centre, Vegreville, An Impact Statement, (Alberta Environment and Alberta Housing and Public Works, Edmonton, 1976). 10. Goddard, op. c i t . (1973) 11. Thorngren, op. c i t . , (1973) 12. Hardman, op. c i t . , Appendix 7, "Telecommunications" 13. Goddard, (1973) op. c i t . , p. 34 14. Thorngren, (1973), op. c i t . 109 -Chapter VII. Conclusion Two themes underlie t h i s thesis. The f i r s t i s the strength of ' i m p l i c i t ' regional development p o l i c i e s — especially when com-pared with the ineffectiveness of e x p l i c i t measures. The second i s the importance of understanding the regional effects of national s t r u c t u r a l change. The two have come together i n an analysis of the growth of o f f i c e employment which was occasioned by s o c i a l evolution towards a post-industrial system. The changes i n the nature of the large organ-isa t i o n s that now dominate the modern economy have led to the increasing concentration of the most dynamic occupations. Government i s i n the position of having contributed to t h i s concentration but paradoxically, because of that p a r t i c i p a t i o n i s now well placed to attempt a strategic reorganisation of the Province's s p a t i a l economy. That that reorganisation i s desirable i s undoubted. That i t w i l l not happen i n the forseeable future i s also undoubted. Both the p o l i t i c a l philosophy and the interest are lacking i n the present government. For Social Credit the r o l e of government i s to be as l i t t l e and unobtrusive as possible. While the former desire i s perhaps already a fading dream, the chances of a policy based on the negation of the l a t t e r are non-existent. Perhaps we can hope f o r better things i n the event of a return of the NDP, but I am a f r a i d that the old prejudice i n favour of manufacturing dies hard.\ Thus f i f t e e n years a f t e r the Swedes started to look at the regional implications of p o s t - i n d u s t r i a l -i s a t i o n and some years a f t e r the I r i s h became interested i n them, BC remains at the i n t e l l e c t u a l periphery of t h i s area of western thought. 110 -Bibliography 1. J . Addie, A. Czepl and F. Ramsey, "The Power E l i t e of BC", i n P. Knox and P. Resnick, Eds,, Essays i n BC P o l i t i c a l Economy, (New Star, Vancouver, 1974). 2. K, A l l e n , "Regional Intervention", i n S.K, Holland, Ed., The State as Entrepreneur, (Weidemfeld and Nicolson, London, UK, _ ^ 3 . Alonso, W., "Problems, Purposes and I m p l i c i t P o l i c i e s f o r a National Strategy of Urbanisation", i n W, Alonso and J , Friedmann, eds., Regional P o l i c y . Readings i n Theory and Applications. 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