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Privatization and gaming : the impact upon the non-profit social service sector Fletcher-Gordon, Lynda 1987

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PRIVATIZATION AND GAMING: THE IMPACT UPON THE NON-PROFIT SOCIAL SERVICE SECTOR  By LYNDA FLETCHER-GORDON B.A. (HONS.), Simon F r a s e r U n i v e r s i t y , 1986 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SOCIAL WORK IN THE FACULTY OF GRADUATE STUDIES ( S c h o o l of S o c i a l Work) We accept t h i s t h e s i s as conforming to t h e r e q u i r e d s t a n d a r d  THE UNIVERSITY OF BRITISH COLUMBIA June, 1987 © Lynda F l e t c h e r - G o r d o n , 1987  In  presenting  degree  at  this  the  thesis in  partial  University of  fulfilment  of  British Columbia, I agree  freely available for reference and study. I further copying  of  department publication  this or of  thesis for by  his  or  her  DE-6(3/81)  June,  that the  for  an advanced  Library shall make  it  It  is  granted  by the  understood  that  head  of  copying  my or  this thesis for financial gain shall not be allowed without my written  Social Work  The University of British Columbia 1956 Main Mall Vancouver, Canada V6T 1Y3 Date  representatives.  requirements  agree that permission for extensive  scholarly purposes may be  permission.  Department of  the  1987  ABSTRACT  The  demise of K e y n e s i a n i s m and t h e a d v e n t of monetarism has  had  a p r o f o u n d i m p a c t on t h e C a n a d i a n ' w e l f a r e  B r i t i s h C o l u m b i a , as i n o t h e r have  included  resurrection  a  'down-sizing'  of a strategy  service sector. abandonment;  that  monetarist  i s , the government  s e r v i c e s and e i t h e r r e d u c e d  many  public  the non-profit  sector  social  shed i t s  sector  social  funds which  through  a  has meant  has b o t h  or eliminated  and  i n the  privatization  In  policies  government,  of p r i v a t i z a t i o n  f o r providing  into  of  I n some i n s t a n c e s ,  responsibility  directed  provinces,  state'.  were  t h e system of  ' contracting-out'.  With  the loss  agencies funding.  have The  of revenue,  many  been  t o seek  forced  contents  non-profit  funds.  industry provide the  Therefore,  of newspaper  i n British  Columbia  developments  on  a  agencies i n the Greater certain trends  sector. and,  were  explored  Vancouver area.  Agencies reported  f o r some,  the impact  ii  social  o f these service  The results i n d i c a t e  across  an i n c r e a s e d  t h e p r o c e e d s from  to  f o r , and i m p a c t on,  of n o n - p r o f i t  are emerging  i n order  In a d d i t i o n , a survey  to determine  sample  other  d e v e l o p m e n t s i n t h e gaming  non-profit social service sector. i n order  s t o r i e s and  t o gaming i n o r d e r t o  some i n s i g h t i n t o t h e i r r e l e v a n c e  was u n d e r t a k e n  that  recent  service  a l t e r n a t i v e sources of  a r t i c l e s i n d i c a t e d t h a t some had t u r n e d raise  social  the  non-profit  demand f o r s e r v i c e s  e i t h e r bingos o r c a s i n o s  have  been  crucial  s e r v i c e s and  i n both  maintaining  providing other benefits.  this development are explored; fund-raising service are  has  reduced  while otherwise  becoming  necessary  more  the  staff  non-profit social  statements  no  i t may  in  some  order  direct  agencies  to  provide  programs and the  are  t u r n i n g to  services which  gaming i n d u s t r y , and  have been ambiguous.  On  the  to the  t h a t t h e r e w i l l be no e x t e n s i o n of l e g a l i z e d gambling  hand,  the  by  government  revenues through  direct  n o n - p r o f i t groups.  i s moving  to  means, such  the  government's p u b l i c  have made public statements  that which i s provided  client  s o c i a l s e r v i c e programs.  longer support,  its actions in this area,  agencies,  be t h a t c e r t a i n  r e g a r d i n g the f u t u r e of the  hand, policy-makers  spent  service agencies  gaming i n o r d e r to p r o v i d e will  i n some  hours  'entrepreneurial* in  On  one  effect beyond  the  other  i n c r e a s e i t s gaming  as e s t a b l i s h i n g  casinos,  and i n d i r e c t means, such as i n c r e a s i n g l i c e n c e f e e s l e v i e d non-profit  It  organizations wishing  is contended  'immoral'. recent  marriage  services,  as  to  conduct  that neither privatization  However,  what  of the two  well  as  i s perhaps phenomena.  curtailing  funding  gaming  nor  gambling  problematic By to  are  i s the  reducing the  on  events.  direct  non-profit  s e c t o r , the g o v e r n m e n t has r e s t r a i n e d i t s e x p e n d i t u r e s . iii  of  i m p l i c a t i o n s of  i n c r e a s i n g workloads;  s o c i a l s e r v i c e s ; and,  government  The  f o r example,  groups are p a y i n g f o r t h e i r own  While  current levels  When  non-profit organizations of the  turn to gaming,  revenue f o r the government,  while  v i t a l s o c i a l services which the  iv  they become a source simultaneously  government  has  providing abandoned.  TABLE OF CONTENTS Approval Abstract  i i  L i s t of Tables  vii  Acknowledgements  ix  Dedication  x  I  1  Introduction The S t r u c t u r e of the T h e s i s  II  Origins and Welfare  Transformation  III  of the  State  9  Origins of the The  4  Welfare  State  10  Development of S o c i a l S e c u r i t y  Programs on the Continent  17  The  19  Legacy of the Speenhamland Act  The Poor Law Reform Act of 1834  20  Canada A f t e r Confederation  25  The Emergence of the Canadian Welfare State The Nature and Functions of the  27  Welfare  32  State  The  Crisis of the  The  Post  The  Post-Welfare  Welfare  State  Crisis Period State  Privatization Models  of  37 45 48 56  Privatization  62  A g e n c i e s I n v o l v e d i n the P r o v i s i o n and Production of S o c i a l Services  64  v  Privatization  i n British  Columbia  The Search f o r Funding i n the Face of Government Cutbacks III  Gambling Overview  84  Origins of Modern L o t t e r i e s  87  Gambling i n Canada Gambling  V  VI  in British  90 Columbia  95  The Government and Gambling  114  Funding S o c i a l Services from the Proceeds of Gambling A c t i v i t i e s  115  Method  121  The Research  121  The Subjects  122  Procedures  124  P r o c e d u r a l D i f f i c u l t i e s and and Other Problems  128  Results  130  The Agencies  130  Gaming and the Non-Profit Sector  137  L e v e l s of Funding  143  Levels  145  of Service Delivery  Impact of Fund-Raising on Agencies and Staff VII  81 84  An H i s t o r i c a l The  74  Implications  14 6 154  Gaming and Non-Profit Sector  157  The C h a l l e n g e of the 'New R e a l i t y '  169  vi  LIST OF TABLES Community G r a n t s , B r i t i s h Columbia, 1970-85 Summary of Revenues, Expenditures, and L o t t e r y Fund Balances: 1982-85 A Breakdown of Those Questionnaires That Were Returned The Groups Which Received Services and the Number of Programs o r S e r v i c e s P r o v i d e d by Agencies The years i n Which The W ere E stablis hed  Agencies  Numbers of F u l l - T i m e , Part-Time, and Voluntary Personnel Employed by Agencies The Size of Agency  Budgets  The Sources of Agency  Funding  The Years i n Which Agencies Began Conducting Gaming Events i n Order to Raise Money The Reasons Why Agencies Began Conducting Casinos or Bingo Activities How Agency S t a f f Perceive the E f f e c t of L o s i n g Gaming Revenues The Funding Arrangements of Those Agencies Reporting No Decreases in Funding Since 1983 vii  The Individuals Involved i n Agency Fund-Raising The E f f e c t of Fund-Raising on S t a f f of the Agencies The U t i l i z a t i o n of Those Revenues Generated through Conducting Gaming A c t i v i t i e s The Number of L i c e n c e s Issued to Non-Prof i t Organizations  viii  ACKNOWLEDGEMENTS No  work  i s ever  individual,  the sole  accomplishment  o f a n y one  and there are many people who have contributed t o  b o t h t h e f o r m u l a t i o n and p r e p a r a t i o n o f t h i s t h e s i s . to acknowledge the assistance and guidance thesis committee; J.  MacDonald.  Professor  Robert  given to me by my  namely, Professors J . Crane, I owe M.  a special  Gordon,  I wish  debt  C. McNiven and of gratitude to  School of Criminology,  Fraser University, for providing  Simon  c o n s t a n t e n c o u r a g e m e n t and  b e i n g a t i r e l e s s l i s t e n e r and r e a d e r o f d r a f t s .  I  also  wish  to acknowledge  the assistance  p e r s o n n e l who p a r t i c i p a t e d i n t h e s t u d y .  of the agency  I n many i n s t a n c e s ,  a s s i s t a n c e was g i v e n d e s p i t e b o t h t h e p r e s s u r e o f heavy work loads  and  preparation  the time  constraints  of an agency's annual  t o thank  which  accompany  the  budget.  Finally,  I wish  some s p e c i a l  provided  b o t h s u p p o r t and a s s i s t a n c e  friends  who  have  o v e r t h e p a s t months:  namely, E a r l E n g l a n d , P h i l l Esau, S t e v e Mason, Dawn Embree, Connie  F e r s c h w e i l e r and Colette  ix  Hervieux.  DEDICATION  TO: PURPOSE  Chapter I INTRODUCTION  The  problems  and t r a n s f o r m a t i o n s w h i c h began t o a f f e c t t h e  i n t e r n a t i o n a l economic ultimately  system  d u r i n g t h e 1970's,  and which  m a n i f e s t e d t h e m s e l v e s as a w o r l d - w i d e  recession,  have had a p r o f o u n d i m p a c t on t h e C a n a d i a n economy a t b o t h the  federal  Columbia  and p r o v i n c i a l l e v e l s .  was p a r t i c u l a r l y  recession  vulnerable  due t o i t s heavy  n a t u r a l r e s o u r c e s of l u m b e r , a l , 1984).  restraint,  the reduced  million  (Schofield, jumped  dependence  on e x p o r t i n g i t s  c o p p e r and c o a l  from  f o r natural  (Magnusson e t policies  r e s o u r c e s drove  provincial natural resources f e l l  i n 1 979-80  1984).  of t h e  l e v e l s of p r o v i n c i a l e x p o r t s dropped.  demand  p r i c e s , r e v e n u e s from $1,319.  to the effects  When o t h e r c o u n t r i e s began i m p l e m e n t i n g  of monetary As  The P r o v i n c e of B r i t i s h  t o $ 544  In addition,  million  as l e v e l s  down from  i n 1 982-83  of u n e m p l o y m e n t  6.5 p e r c e n t i n 1980 t o 12.1 p e r c e n t i n  1982,  personal spending slowed and reduced the amounts of personal and  sales t a x revenue  L i k e the governments  flowing  into  government  coffers.  of G r e a t B r i t a i n and t h e U n i t e d S t a t e s ,  b o t h t h e f e d e r a l and p r o v i n c i a l governments  of Canada f a c e d  i n c r e a s e d demands f o r d i r e c t t r a n s f e r payments. the B r i t i s h  Columbia  Ministry  I n 1980-81,  of Human R e s o u r c e s  (now t h e  M i n i s t r y o f S o c i a l S e r v i c e s and Housing) s p e n t $378.9 m i l l i o n (50.2 p e r c e n t of i t s budget) on i n c o m e a s s i s t a n c e and G A I N  1  payments to the  handicapped.  risen  million  to  $609.2  budget. said  By  1983,  t o be  British  provincial  would  (Magnusson  • f i s c a l c r i s i s ' had to  55.7  1982-83, t h i s amount percent  considerable  soon  et  of  be  to  on  such  the  a l , 1984 ).  (Allen and  a  of  Whether,  had  Ministry's  degree  brink  a p p e a r e d i n the p r o v i n c e  debate  the  government expenditures  outstripping revenues  Columbia  disaster  or  By  were that  financial  in fact,  a  has been s u b j e c t  Rosenbluth,  1986;  Magnusson  e t a l , 1984).  It  was  a g a i n s t t h i s b a c k d r o p t h a t , upon t h e i r r e - e l e c t i o n i n  1983,  the  Social  r e s t r a i n t budget. measures was  Credit  government  Although  the  the  need f o r moderate  generally recognized,  most B r i t i s h  were u n p r e p a r e d f o r the s i m u l t a n e o u s p u b l i c s e c t o r and  introduced  first  restraint  Columbians  a s s a u l t on l a b o u r ,  s o c i a l w e l f a r e programs and  services.  the The  v a r i o u s r e s t r a i n t measures, w h i c h were p u r p o r t e d l y  aimed a t  combatting  on-going  the  budget d e f i c i t  i n the  face  of the  r e c e s s i o n , i n c l u d e d 'downsizing'  the g o v e r n m e n t t h r o u g h ,  example,  reductions;  privatization;  employment  through  V i c t o r i a ; and, Rosenbluth, these  mega-projects;  reducing expenditures  1986).  measures has  British  wage  The had  de-regulation;  concentrating on e d u c a t i o n  subsequent implementation far-reaching e f f e c t s on  Columbia.  2  for  power i n (Allen of each  and of  the economy of  Although the 1983 budget in  provided  f o r a 12.3 percent increase  public sector spending, the increased  eventually  be a b s o r b e d  by i n c r e a s i n g  p a y m e n t s and p r o j e c t s aimed industry made  (Redish  available  e x p e n d i t u r e s would income  assistance  a t s t i m u l a t i n g the c o n s t r u c t i o n  e t a l , 1986).  While more money was t o be other  a r e a s of  p u b l i c s p e n d i n g were t o be s u b j e c t t o c o n s i d e r a b l e  restraint.  There  f o r construction  was a r e - a l l o c a t i o n o f f u n d s away from s o c i a l  services and programs and toward provide  Of  welfare  mega-projects which were to  employment.  p a r t i c u l a r c o n c e r n f o r many i n d i v i d u a l s , b o t h those  worked  within  benefitted privatize social  the social  from  services  welfare  such  and a d u l t  viewed  welfare  sector  i t s programs or s e r v i c e s ,  many s o c i a l  juveniles, was  projects,  as a  programs.  and those  direct  The p r i v a t i z a t i o n of  residential  attack  who  was t h e p l a n t o  as r e h a b i l i t a t i o n  and y o u t h  who  programs f o r care  facilities,  on t h e s o c i a l  services  component o f t h e p r o v i n c i a l ' w e l f a r e s t a t e ' .  The  government strategy  direct  income  f o r meeting  assistance  transfer  the increased payments  demand f o r  also  included  c u r t a i l i n g o r e l i m i n a t i n g many s e r v i c e s t h a t were p r o v i d e d by the  public sector.  A t t h e same t i m e ,  government  revenues  t h a t had p r e v i o u s l y been d i s t r i b u t e d t o t h e n o n - p r o f i t service  sector  payments.  were  also  As a r e s u l t ,  redirected  while  3  to direct  many n o n - p r o f i t  social  transfer  organizations  have e x p e r i e n c e d been  forced  Although new  to  increased seek  demands f o r s e r v i c e , t h e y  out  f u n d - r a i s i n g by  a l t e r n a t i v e sources non-profit  organizations  d e v e l o p m e n t , of s p e c i f i c i n t e r e s t was  non-profit  social  service  funding. i s not  a  the f a c t t h a t some  organizations  t u r n i n g to gaming as a way  of  have  appeared  to  be  of r a i s i n g funds to o f f s e t c u t s i n  g o v e r n m e n t funding.  The  S t r u c t u r e of the  The  aim  of  p r o c e s s and exhibited  this  Thesis  t h e s i s i s to  o u t c o m e s of  i n a sample of  present  restraint  a  case  and  have  followed  non-profit social service  this  course  of  their  support.  In  study  action  order  to  upon  show  the  this  in  or  source  These to  remove  (or  of  financial  r e l a t i o n s h i p of  this  case  examined  detail.  current  shift  're-priva tiza tion' earlier  as  order  to p r i o r p o l i c y d e v e l o p m e n t s , the l a t t e r are  i n some  The  dependence  the  agencies  revenue.  e i t h e r supplement cuts i n government funding reduce)  of  privatization,  w h i c h have t u r n e d to gaming as a s o u r c e of agencies  study  to  what i s more a c c u r a t e l y  would  seem  'residual' concept  b e g i n s w i t h an  of  to  herald  social  e x a m i n a t i o n and  review  a  described return  security.  The  to  as an  thesis  of the o r i g i n s of  the  welfare  s t a t e w h i c h s u g g e s t s t h a t the d e v e l o p m e n t of s o c i a l  welfare  p o l i c i e s i s , indeed,  moving f u l l  4  circle.  Insofar  as  economic  policie.s  expansion  of  abandonment  have  underpinned  the  'welfare  state ,  of  Keynesian  the  1  economic  monetarism are r e v i e w e d i n d e t a i l . of the  'welfare  the  establishment  and  i m p l i c a t i o n s of theory  The  the  in favour  n a t u r e and  the  of role  s t a t e ' are e x a m i n e d t h r o u g h a d i s c u s s i o n of,  what D r o v e r and  W o o d s w o r t h (1978) have l a b e l l e d ,  "welfare  paradigms".  H a v i n g o u t l i n e d the  e c o n o m i c and  which  was  privatization  theoretical  discussion assumed  services  be  must  detrimental politicians social  to and  policies  entitled  to  s y s t e m , and  be  a a  introduced, of  automatically  i d e o l o g i c a l context  the  the  negative  on  development, For  premise  from  g o v e r n m e n t has  or  policy-makers  the  protected  It  the  of one  are  social that  is if  developing  citizens of  a be  example,  that  cycles  to  cannot  privatization  citizens.  government based  thesis turns  phenomenon.  that  nation's  the  within  the  are  market  a r o l e to play i n providing  that  p r o t e c t i o n , i t i s not n e c e s s a r y t h a t the s e r v i c e s be a c t u a l l y p r o d u c e d or p r o v i d e d such  as  by  'contracting-out',  stringent  regulation  government employees. coupled  with  the  through  the  establishment  e n f o r c e m e n t of minimum s t a n d a r d s ,  may  s o c i a l s e r v i c e d e l i v e r y t h a t i s as  equally  system  w h e r e i n only  the  Mechanisms  implementation  r e s u l t i n a system s a t i s f a c t o r y as  g o v e r n m e n t p r o d u c e s the  services.  5  of and of a  necessary  However,  in  British  Columbia,  c o n c e p t of p r i v a t i z a t i o n has within  a  concern  privatization  regarding  capitalist  economic  introduced  i s the  on  restoration  the  welfare  system.  and  does not  old  One  notion  fall  provides  concludes with an  profit  accompany  what  that  has  a  been  that  operating  the  the  b r i e f overview  of  of the  focussed  the  social state.  advent  privatization in British  a  been a  of  and  Columbia  examination of i t s impact upon the  non-  sector.  G i v e n the i d e o l o g i c a l f r a m e w o r k of p r i v a t i z a t i o n and of gaming as a profit  a re-  within  provision  purview  by  humanitarian  major consequence has  within  s u b s e q u e n t d e v e l o p m e n t of and  drive,  interpreted  accompanied  i d e a l s or  Rather,  the  framework.  classical liberal perspective  the  Chapter three  and  inequalities that  market system. of  countries,  ideological  collective  individual initiative  competitive  other  measures were not  for advancing  principles  in  been i n t r o d u c e d  neo-conservative  Consequently, a  as  social  m o n i t o r the services.  mechanism service  f o r r a i s i n g funds by  organizations,  This  since  i t will  which  have had  the  extent  the  industry;  thesis  explore a  provides  developments  start i n the  in  the  nonto  programs  and  gaming  direction industry  organizations;  agencies have been involved i n  consequences  6  use  critical  this  d i r e c t impact upon non-profit  to which non-profit and,  a  private  i t is  e f f e c t s of t h e s e d e v e l o p m e n t s on  the  of  this  development.  These i s s u e s are e x a m i n e d i n d e p t h i n c h a p t e r s f o u r , f i v e  and  six.  Chapter  four  provides  an  overview  gaming industry which have occurred These d e v e l o p m e n t s are c r i t i c a l i m p a c t on already of  social,  well  past  four  the  years.  s i g n i f i c a n t i n t h a t t h e y have had  as  and  world  class  sports  government has  which  licence  a are  casinos  at  fees  encroachment i n t o the  from  in chapters  and  five  study,  the  are  non-profit  of  a  government  the  Although  study  six.  the  results indicate  this  m a j o r i t y of o r g a n i z a t i o n s t h a t p a r t i c i p a t e d began two  ( i i ) the a g e n c y was innovative  from  any  program.  7  a the  conducting  reasons c i t e d  most  ( i ) the  other source;  refused government funding  are  was  that  o f t e n to e x p l a i n a g e n c y i n v o l v e m e n t i n gaming were: a g e n c y c o u l d not o b t a i n f u n d i n g  The  discussed.  r e s u l t s of  The  on  of e s t a b l i s h i n g  and  c a s i n o s a f t e r 1983.  to  activities.  destinations.  organizations  gaming industry  procedures  preliminary  bingos and  service  r e c e n t l y turned  feasibility  tourist  for non-profit  research  social  g o v e r n m e n t has i n s t a l l e d s l o t machines  i s i n v e s t i g a t i n g the  implications  and  i n c r e a s e d r e v e n u e s f o r i t s own  extracting  ferries  presented  cultural,  In addition, the  o r g a n i z a t i o n s , the  small  over the  those n o n - p r o f i t o r g a n i z a t i o n s  recreation,  gaming to p r o v i d e  The  developments in  d e p e n d e n t upon gaming r e v e n u e s to s u p p o r t a v a r i e t y  programs.  As  of  f o r a new  and or  At the same time as non-profit  organizations  are being  forced  t o t u r n t o gaming as a way of r a i s i n g f u n d s , t h e g o v e r n m e n t appears  t o be l e s s t h a n s u p p o r t i v e of t h e n o n - p r o f i t  While l o t t e r y the  sector.  t i c k e t s a r e s o l d , and gaming i s j u s t i f i e d ,  basis that  the revenues  a r e used  to support  on  non-profit  and community groups, the government i s d i v e r t i n g some of the funds away from such groups and i n t o g e n e r a l r e v e n u e s . implications  of s u c h  sector,  examined.  The  are  thesis  concludes  a  development,  by e x a m i n i n g  for  the  non-profit  social  service  sector  metamorphosis.  I t i s argued  are  to become  being forced  that  non-profit  the notion  c o n j u n c t i o n w i t h changes i n t h e l a r g e r e c o n o m i c may  be  non-profit  that, i n  system, the  undergoing  more 'entrepreneurial' i n order to  more n e c e s s a r y as a consequence government's  subsequent  a  organizations  continue to d e l i v e r the s o c i a l services that have become  the  The  o f b o t h t h e r e c e s s i o n , and  restraint  8  even  measures.  Chapter I I THE  ORIGINS AND  Many a n a l y s t s in  have r e c e n t l y  most Western  crisis  TRANSFORMATION OF THE  1981).  Writers  consequence of  a r g u e d t h a t the  c a p i t a l i s t nations  (Gough, 1979;  has  'welfare state'  experienced  G i l b e r t , 1983;  contend that two  WELFARE STATE  a  T a y l o r - G o o b y and  t h i s s i t u a t i o n has  the  'fiscal  as  a  s i g n i f i c a n t developments which have had  a  crisis'  of  the  state,  and  g r o w t h of a n e o - c o n s e r v a t i v e i d e o l o g y G i l b e r t , 1983). the  welfare  the  r i s e and  rapid  (Taylor-Gooby,  1985;  and  the  economic  r o l e of s o c i a l w e l f a r e i n an  the  c a u s e s and  will  be  examined.  for  an  examination  restraint  measures  'downsize' the  The  implications  term  of  state'  health,  e d u c a t i o n , and  legislation Currently,  the  (e.g. the  will  state  addition,  'in  p r o v i d e the  governments  generally  publicly funded  to  In  and  crisis', context  of  several  in  order  to  sector.  of  w e l l as  welfare  by  ideology  industrial society  ' p r i v a t i z a t i o n ' ; one  introduced  system  as  a  This discussion  public  'welfare  of  o r i g i n s of  p o l i c i e s and  w h i c h u n d e r p i n n e d i t s d e v e l o p m e n t i n Canada. b o t h the  emergence  T h i s c h a p t e r w i l l r e v i e w b o t h the  state  Dale,  arisen  marked i m p a c t on s t a t e p o l i c y - m a k i n g ; namely, the of  profound  and  allied  regulation minimum  operated  services of  and  private  wage  w e l f a r e s t a t e has  9  refers  an  and  to  the  complex  social  welfare,  income  transfers,  activities hours  of  i m p a c t upon the  through work). life  of  e v e r y C a n a d i a n c i t i z e n , t h r o u g h the p a y m e n t of c a s h b e n e f i t s or the  p r o v i s i o n of s e r v i c e s  ( D j a o , 1983).  w e l f a r e s t a t e has  an i n d i r e c t i m p a c t on  imposition  d e d u c t i o n s or the  of t a x  (Flora  and  Heidenheimer,  other  things,  their  1981).  health  In a d d i t i o n ,  the  c i t i z e n s through  the  granting  of t a x  benefits  C i t i z e n s expect that,  needs  will  be  met  among  through  u n i v e r s a l m e d i c a l schemes; t h e i r c h i l d r e n w i l l be e d u c a t e d i n public the  schools;  they  w i l l be  work p l a c e ; and,  w i l l provide a  protected  t h a t 'old age'  modicum  of  from  exploitation in  i n c o m e s e c u r i t y programs  protection  against  poverty  when  t h e y are too o l d to work.  Origins The  of the  W elf are  d e v e l o p m e n t of the  phenomenon i n the been  linked  to  capitalistic framework assumed,  welfare  that, not  capitalist  system  1979,  however, that  and  these factors  Flora  prerequisites and  European  the  societies.  1975).  It  together  implementation  of  social security  a  political cannot  (1981) p o i n t  be and of out  i n s t i t u t i o n s did and  example,  German Empire p r o v i d e d the  both  development  democratic For  has  (capitalism  f o r the  E m p e r o r of the  10  within  p o l i c i e s and  most  recent  Its advent  democratic  Heidenheimer  social welfare among  a  Armitage,  necessary  state.  develop  states.  industrialization occurring  (Gough,  initially,  welfare state is a relatively  h i s t o r y of n a t i o n  economic  democracy) are a  State  in  advanced 1881,  impetus for  legislation.  After  the the 1917,  social  welfare programs  were developed i n non-democratic  n o n - c a p i t a l i s t Russia. a  far  more  ( F l o r a and  "Thus, the w e l f a r e s t a t e seems to be  g e n e r a l phenomenon  exclusively  tied  to  of  modernization,  i t s 'democratic-capitalist'  Heidenheimer,  1981;  Britain  ( 1 9 4 2 ) , and  the  p. 23).  Marsh  R e p o r t i n Canada  l a i d the foundation f o r the development s t a t e i n those c o u n t r i e s ,  L a w s of E l i z a b e t h a n E n g l a n d . supplemented,  1601  (Pound,  intent  and  at  1971).  the  of the  Report (1943),  modern welfare  the i n i t i a l a t t e m p t s a t d e v e l o p i n g  a f o r m a l system of p o v e r t y r e l i e f  were  not  version"  Although i t i s generally accepted t h a t the Beveridge in  and  were e m b o d i e d i n the Poor  These were passed i n 1531  various  intervals  and  thereafter,  until  I t i s important to consider both  social  c o n t e x t of t h e s e ,  and  other,  the  early  p r e c u r s o r s of our c u r r e n t s o c i a l a s s i s t a n c e schemes s i n c e the modern  welfare state  bears t h e i r  a d d i t i o n , such a r e v i e w  distinctive  h i g h l i g h t s how  hallmarks. In  c u r r e n t s o l u t i o n s to  o l d p r o b l e m s c o n t i n u e t o have t h e i r r o o t s d e e p l y embedded i n history.  In  England,  when  the  fourteenth century, and  feudal  system  broke  workers were freed  down  from  i n the  serfdom,  n e c e s s i t y f o r some form of p o v e r t y r e l i e f a r o s e .  the  Feudalism,  w h i l e e n s l a v i n g the w o r k e r , had a t the same t i m e , p r o v i d e d a modicum crisis.  of  economic  I t was  security  the landowner's  11  during  times  responsibility,  of and  unexpected i n his or  her b e s t i n t e r e s t s ,  to m a i n t a i n  allowed  productive.  them  to be  the  workers at a l e v e l  As the o l d system c r u m b l e d , men  and  a c r o s s the  of r e a s o n s :  country  independence livelihood cities  by  from  their  they  owners; and,  to  their  obtain  to migrate within  their to  fourteenth  century,  d e c i m a t e d the p o p u l a t i o n and  reduced  middle of the  the l a b o u r p o o l , and as a r e s u l t , wage l e v e l s were d r i v e n As  a  response  enacted  the  to  this  Statute  the  various  the  employed  to a s s e r t  the  by  plague had  women began t r a v e l l i n g  to war;  m i g h t be  However,  f a m i n e and  former  begging; to go  where  industries.  for a variety  which  supply/de mand  of  Laborers  in  problem, 1 349  (de  attempt  to  up.  Parliament Schweinitz,  1943).  The  Statute  of  Labourers  problem created by  solution  was  stopping  either  refused  redress  the  to work or  who  wages i n the f a c e of a l a b o u r  to " c o m p e l the  whoever wanted him, by  an  workers who  i n s i s t e d on e x c e s s i v e The  was  by  unattached  man  to work f o r  forbidding the labourer to t r a v e l ,  alms to the  man  who,  i f he  could  p r e s u m a b l y r e f u s e t o work" (de S c h w e i n i t z , 1943; this regard,  history  beg,  announced that individuals mothers, or who  the who  insisted  12  and  would  p. 6).  can be seen to be r e p e a t i n g i t s e l f .  r e c e n t l y as s i x months ago,  single  shortage.  In As  B r i t i s h C o l u m b i a government refused on  to  work,  more than a  especially  minimum  wage,  were s w e l l i n g that  those  the income assistance r o l l s .  individuals  who  refused  I t was s u g g e s t e d  offers  of employment,  w h i c h would be e x t e n d e d by t h e government,  would be d e n i e d  income assistance.  B e f o r e t h e g o v e r n m e n t f o r m u l a t e d t h e f i r s t of t h e s e r i e s o f l a w s , w h i c h l a t e r came to be known as t h e E l i z a b e t h a n  Poor  L a w s , t h e r e were b o t h o r g a n i z e d and u n o r g a n i z e d systems of relief. the  P o v e r t y was n o t a new  people.  Some  c o n d i t i o n f o r the majority of  of t h e poor  coped  with  their  poverty  t h r o u g h b e g g i n g , an a c t i v i t y w h i c h had been e n d o r s e d by t h e Christian 'natural always The  religion.  There  existed  order' of s o c i e t y  was  a  firm  belief  one i n w h i c h  be t w o 'classes' of p e o p l e :  the rich  that the  there  and t h e poor.  poor had an i m p o r t a n t r o l e t o p l a y i n t h e n a t u r a l o r d e r  s i n c e t h e r i c h , t h r o u g h c h a r i t a b l e deeds w h i c h would the  would  poor,  could  demonstrate  their  worth  benefit  as c a n d i d a t e s f o r  salvation.  More o r g a n i z e d e f f o r t s f o r poor r e l i e f  were p r o v i d e d by t h e  guilds, p r i v a t e p h i l a n t h r o p i s t s , and the church. of t h e g u i l d s , undertook  such  while emphasizing s e l f - h e l p "works of c h a r i t y "  The members  and b r o t h e r h o o d ,  as d i s t r i b u t i n g  f o o d and  p r o v i d i n g s h e l t e r t o t h e needy (de S c h w e i n i t z , 194 3; p. 15). Many o f t h e modern day s e r v i c e c l u b s a r e r e m i n i s c e n t of t h e o l d s o c i a l g u i l d s i n t h a t , a l t h o u g h members come t o g e t h e r f o r f e l l o w s h i p , o r a r o u n d a common i n t e r e s t , t h e y a l s o r a i s e and  13  donate  money t o many non-profit organizations o r charities.  During  this time,  private philanthropy  the time of t h e R e f o r m a t i o n ,  t h e r e were i n E n g l a n d n o t l e s s  t h a n 460 c h a r i t a b l e f o u n d a t i o n s " Gifts  and b e q u e s t s  public and  were  also flourished. "At  used  (de S c h w e i n i t z , 1943; p.15). f o r both  poverty  works. C o m p l e m e n t i n g both t h e a c t i o n s of t h e g u i l d s  private  monasteries relief.  philanthropists, completed  As l o n g  church  parishes  the organized  systems  as i n d i v i d u a l s c o u l d  needs  of the poor,  social  and the  of  poverty  beg and t h e g u i l d s ,  p h i l a n t h r o p i s t s , and c h u r c h e s c o u l d a d e q u a t e l y the  r e l i e f and  order  contend  with  was e n s u r e d .  The  g o v e r n m e n t c o u l d r e m a i n d e t a c h e d from t h e problems and t h e needs of t h e poor.  Between 1520 and 1640, the two most outstanding problems were poverty  and vagrancy  increased, failures quarter  events  swelled  such  (Pound,  1971).  as l a n d  t h e numbers  As t h e p o p u l a t i o n  enclosures  o f t h e poor.  and one-third of the population  and  harvest  "Between one-  of most English towns  were below the status of wage-owner, and a t any moment t h e i r numbers were l i a b l e t o be s w e l l e d by a slump i n any one o f the  major  industries"  significance vagrants  (Pound,  was t h e i n c r e a s e  1 9 7 1 ; p.  2 5 ) . Of  i n the numbers  equal  of r o v i n g  who f o r m e d bands and moved a c r o s s t h e c o u n t r y s i d e .  B o t h t h e r o v i n g bands of v a g r a n t s  14  and t h e l a r g e numbers of  poor began t o be p e r c e i v e d as a t h r e a t t o t h e f r a g i l e  public  order.  The 'Poor Law' S t a t u t e of 1531 f i r s t a t t e m p t e d t o d e a l w i t h these d u a l problems by d i s t i n g u i s h i n g b e t w e e n t h e 'impotent' poor, ( i . e . (i.e.  t h e aged and t h e i n f i r m ) and t h e 'unworthy' poor,  t h o s e who  statute  professional  allowed  could  not find  jobs,  were  begging  t h e " i m p o t e n t poor  were c a u g h t  were  ...  community"  punitive.  begging  returned to their communities.  were (Pound,  were  Those who  Any a b l e - b o d i e d t o be  whipped  harbored them  and would  fined.  The  inadequacies of this  first  attempt  to p r o v i d e f o r t h e  'impotent' poor by g i v i n g them e x c l u s i v e b e g g i n g r i g h t s quickly  apparent  authorities the  this  However, actions against able-bodied vagrants  caught  v a g r a n t s who  Although  were prepared to work  to beg (but) only within their own  1971; p. 3 9 ) .  be  vagrants).  made no provision f o r those who  but who  who  were  were  and,  in  1 536,  parish  given f u l l responsibility  and  raise  money  indigent.  on a v o l u n t a r y  However,  population became even insurrection  wandering  E a c h p a r i s h was t o  b a s i s to p r o v i d e f o r t h e l o c a l  measures t a k e n t o c o n t r o l t h e v a g r a n t more repressive.  by t h e poor,  t h i s t i m e , was  municipal  f o r providing f o r  'impotent' p o o r " i n o r d e r t o p r e v e n t them from  a r o u n d as b e g g a r s " (Pound, 1971; p. 4 0 ) .  were  which  The immense fear of  must have p r e v a i l e d  e v i d e n c e d by t h e s t e p s w h i c h  15  during  were t a k e n i n  order to keep the vagrant bands from convictions  of vagrancy,  unemployed  f o r three  increasing i n size.  ( i . e . being  or  more  without  days),  i n d i v i d u a l b e i n g b r a n d e d on t h e f o r e h e a d being  returned  Generally,  t o h i s o r h e r home  public  order  was  means  and  resulted  i n the  w i t h a "V",  before  parish  fragile  Two  (Pound,  1971).  and p r e c a r i o u s .  There  were no o r g a n i z e d p o l i c e f o r c e s and few j a i l s when compared to t h e l a r g e number o f p o o r and v a g r a n t . punitive  was  a  natural reaction  on  To become  the part  more  of  those  i n d i v i d u a l s who were a t t e m p t i n g t o m a i n t a i n s o c i a l o r d e r .  By  1601, t h e Poor Law  had been e x p a n d e d vagrancy,  t o i n c l u d e more  stringent  definitions  of  appropriate  punishments,  and the provision of workhouses.  also invested "overseers of the poor" to s e t r a t e s and c o l l e c t t a x e s from 1971).  In  addition,  apprentices; the case be  f r e e d from  them  those  children  u n t i l t h e y were 2 5.  such  the responsibility  of t h e i r  It  w i t h means (Pound,  could  be  bound  as  were 21, and i n  However, g i r l s could  apprenticeships i f they  age 21. The elderly  for  with the duty and power  i n t h e case of g i r l s u n t i l t h e y  of boys,  they reached  poor  prescriptions  married  before  were provided f o r by making families.  Money  raised  by  l o c a l a u t h o r i t i e s a l s o p r o v i d e d pensions f o r wounded s o l d i e r s (Pound  The  1971).  Elizabethan legislation  16  also included two  Acts  which  p r o v i d e d f o r t h e e r e c t i o n o f h o s p i t a l s and workhouses f o r t h e poor and d e f i n e d t h e l a w of c h a r i t a b l e p.  55).  The s i g n i f i c a n c e  o f these  t r u s t s (Pound, 1971;  particular  was t h a t t h e y r e c o g n i z e d t h e i m p o r t a n c e for  supplementing  "encouraged endow  the a c t i v i t i e s  charity  Also,  almshouses,  houses  E l i z a b e t h a n Poor  Law  250 y e a r s  t h i n k i n g o f subsequent  of  correction  and  similiar  (Pound,  1971; p. 5 5 ) .  o f 1601 r e m a i n e d  i n place f o r  and c o n t i n u e d  to i n f l u e n c e the  policy-makers.  Development of S o c i a l Security Programs on the Continent  England which  was n o t a l o n e i n a t t e m p t i n g t o f o r m u l a t e a means by t h e problem  addressed  of growing  numbers  o f poor  could  charity  as a  scheme  ultimately  Europe,  i t was  a plan to organize  means o f m a i n t a i n i n g t h e poor. influenced also  developments  controversial  private  Although the  i n the rest  since  historically  themselves.  depended  The M e n d i c a n t s  on  appealed  of  i t prohibited  b e g g i n g . Such a d e v e l o p m e n t t h r e a t e n e d t h e M e n d i c a n t had  be  and s o c i a l o r d e r m a i n t a i n e d . I n 1535, t h e t o w n of  Ypres, i n Flanders, implemented  who  they  p r i v a t e b e n e f a c t o r s who might wish t o found and  approximately  The  of p r i v a t e  of the s t a t e .  i n s t i t u t i o n s f o r t h e use o f t h e poor" The  developments  begging  to  maintain  to the f a c u l t y  Sorbonne who u p h e l d t h e Y p r e s p l a n p r o v i d i n g t h a t :  Orders  of t h e  t h e poor  were not f u r t h e r impoverished by the ban against begging; the wealthy such  who gave to the common r e l i e f fund d i d not f e e l t h a t  action  discharged  their  17  total  charitable  obligations;  and,  the Mendicant  Orders  could  continue  t o b e g (de  S c h w e i n i t z , 194 3).  In  1536, V i v e s , a r e n o w n e d t h i n k e r and s c h o l a r , f o r m u l a t e d a  p l a n f o r p o v e r t y r e l i e f a t t h e r e q u e s t o f t h e Mayor of Bruge, also  i n Flanders.  v i s i t t h e poor, determine 1943: to  proposed  that  "Senators,  by t w o s " ,  who r e s i d e d a t home o r i n h o s p i t a l s , so as t o  their  p. 32).  find  He  need  and t o r e g i s t e r them  (de S c h w e i n i t z ,  E v e r y o n e s h o u l d be s e t t o work o r , i f unable  work,  be a s s i g n e d  t o an a r t i s a n .  Upon  becoming  p r o f i c i e n t , t h e y c o u l d be g r a n t e d g o v e r n m e n t c o n t r a c t s f o r a variety  of p u b l i c works (e.g. b u i l d i n g r o a d s and b r i d g e s , o r  manufacturing  hospital supplies).  Vives  was of t h e o p i n i o n  t h a t t h e c o s t o f p o v e r t y r e l i e f c o u l d be r e d u c e d  through job  c r e a t i o n - an i d e a t h a t r e m a i n s r e l e v a n t today.  There  were  century was  certain  poverty  elements  relief  common  schemes.  never the primary  to a l l the sixteenth  The e r a d i c a t i o n o f p o v e r t y  g o a l of any of t h e schemes.  Although  t h e y r e c o g n i z e d t h e need t o m a i n t a i n t h e i n f i r m o r l e g i t i m a t e poor,  a t t h e same time  they  punishment of able-bodied taken  under the e a r l y  principles;  however,  provided  f o r t h e c o e r c i o n and  r o g u e s a n d beggars.  schemes  were  the shifting  justified  The a c t i o n s on  of r e s p o n s i b i l i t y  Christian f o r the  p o o r from t h e i n d i v i d u a l t o t h e m u n i c i p a l l e v e l s i g n a l l e d t h e beginning  of t h e s e c u l a r i z a t i o n  18  of poverty  relief.  In each  poverty while  relief  the  scheme,  'worthy'  there  poor  was  a degree  required  of  spiritual  paternalism;  and  economic  g u i d a n c e , the 'unworthy* p o o r had t o be d i s c i p l i n e d .  The Legacy of the Speenhamland Act The  English  landmark the  Speenhamland  Act of 1795  was  another l e g i s l a t i v e  w h i c h s i g n i f i c a n t l y a f f e c t e d the d i r e c t i o n t a k e n i n  country's development  toward  modern  systems. L a n d e n c l o s u r e s , i n d u s t r i a l i z a t i o n ,  social  security  costs associated  w i t h the war  w i t h F r a n c e , and a s e r i e s of p o o r h a r v e s t s had  successively  e x a c e r b a t e d the  m a g i s t r a t e s of the day proposals: the  met  apply a minimum  labourer"  (de  position  of the  poor.  The  a t Speenhamland to c o n s i d e r wage or "supplement  Schweinitz  1943;  p.72).  the income They  chose  two of to  s u p p l e m e n t the w o r k e r s ' wages and drew up a s c h e d u l e of the amounts n e c e s s a r y to m a i n t a i n an i n d i v i d u a l o r f a m i l y , on the c u r r e n t p r i c e of b r e a d . to  receive  relief  in their  method of a d m i n i s t e r i n g  The  homes and  relief  Act allowed remained  based  individuals the p r i m a r y  f o r the next generation  (de  S c h w e i n i t z , 194 3).  The  Speenhamland plan f o r supplementing wages was  The  reasons that  current  debates  annual income. wages would  i t failed  are often  c o n c e r n i n g the  used  provision  a  as arguments of  a  knowing  o f f e r e d l o w e r wages o r began  using the impoverished workers who  19  in  guaranteed  Wages were driven down as employers, be s u p p l e m e n t e d ,  failure.  r e c e i v e d a wage  supplement  o v e r those who  were i n d e p e n d e n t .  onto  of s u p p l e m e n t a l r e l i e f ,  the  plan  More w o r k e r s were f o r c e d and  as  increased  numbers of w o r k e r s a c c e p t e d r e l i e f , the t a x r a t e s e s c a l a t e d . The  Speenhamland p l a n  killing  the  labourers'  e f f i c i e n t l y , because received  was  their  c o n s i d e r e d to be r e s p o n s i b l e f o r motivation  to  work,  or  work  r e g a r d l e s s of what t h e y p r o d u c e d ,  minimum  wage  each  p r i m a r y r e a s o n the p l a n f a i l e d was  week.  because  In  reality,  i t was  the  conducted  a t the m u n i c i p a l l e v e l and  was  l a b o u r market r e g u l a t i o n .  I n a d d i t i o n , t h e a r t of g o v e r n m e n t  administration  was  in  not a c c o m p a n i e d  they  i t s fledgling  days  by any o t h e r  (de  Schweinitz,  1943).  In  England,  centuries, classes  throughout  the l e v e l and  had  not  the  sixteenth  and  seventeenth  e x t e n t of p o v e r t y among t h e l o w e r  changed  appreciably.  In  addition,  the  approach taken to the problems of the poor and the methods of administration that  began  d i d not  to o c c u r as  machine power. work  parallel  f o r the  The poor,  the r a p i d  a result  economic  changes  of the i n t r o d u c t i o n  of  poor laws had been an attempt to provide relieve  the  infirm  poor,  prevent  any  i n c r e a s e i n the numbers of 'undeserving' poor, and m a i n t a i n social  order.  The Poor Law  Reform  Act of 1834  U n t i l the r e f o r m u l a t i o n of the poor l a w s i n 1834, p o o r r e l i e f  20  continued had  to be a d m i n i s t e r e d  r e s p o n d e d to the  together  to b u i l d  a t the l o c a l l e v e l and  b u r g e o n i n g numbers of poor by  workhouses. A l t h o u g h  the  to house i n d i g e n t s , p r o v i d e  down  relief,  outdoor  they  a t t e m p t to d e t e r i d l e n e s s and i n c r e a s e i n the continued  to  Between 1776  and  vagrancy  ( T a y l o r , 1969 ).  The  numbers of p o o r  had  and the  eighteenth  costs of poor r e l i e f  have increased as much as 33 percent, and every  By  nine p e o p l e was  1832,  order  demonstrate  enclosures  and  C o m m i s s i o n was practical p.  the  their  There  said  to  removing  the  attacked  using  philanthropy  of the  were  with  machine power.  poor l a w s "  motivation the  to  to  rate  which  A  land Royal  Schweinitz,  poverty  levelled  In 1798,  were k e p t a l i v e by could  not  be  the  at  creation  of  poverty  Public philanthropy  argument t h a t poor laws and  increased  Malthus, charity,  sustained  21  1943; the  F o r e x a m p l e , the Poor L a w s  work.  Malthusian  encouraged  (de  several criticisms  contribute  to r e p r o d u c e .  poor, who  out of  rioting in  the  numbers  p o o r by p r o v i d i n g them w i t h the r e s o u r c e s n e c e s s a r y them  to  f o r m e d t o i n v e s t i g a t e "the a d m i n i s t r a t i o n and  previous attempts at poor r e l i e f . were  one  crops and  dissatisfaction  i n t r o d u c t i o n of  operation  117).  century.  were estimated  i n 1802,  an  on p o o r r e l i e f .  the poor were driven to burning  to  cut  more p u n i t i v e i n  throughout  1786,  work, and  became  c o s t of p o o r r e l i e f climb  joining  w o r k h o u s e s were  i n i t i a l l y intended on  parishes  by  had  by was and of  to a l l o w  argued that  the  would reproduce at a the  current  level  of  a g r i c u l t u r a l p r o d u c t i o n , t h e r e b y i n c r e a s i n g t h e i r numbers and worsening  t h e i r s i t u a t i o n i n the l o n g t e r m .  t h a t the Poor  L a w s s h o u l d be  face  of  tradition,  those i n d i v i d u a l s who into  poverty  After  a  Although  the  wish t o put  additional  year  investigation,  the  Royal  r e c o m m e n d a t i o n s were e m b o d i e d i n a s t a t u t e repressive than any A c t of 1834.  The and  primary  vehicle  the  Jeremy  national  contemporary  level.  e c o n o m i c s and  more Reform  f o r reducing the  c o s t of  may  wish to a p p l y ,  was  t o be r e g u l a t e d by s t a n d a r d s s e t a t Bentham,  a  Utilitarian  He  based  h i s system  of  "morality,  p o l i t i c s on the s t r e n g t h of p o s i t i v e  of n a t u r e "  natural laws,  (Greenberg,  the  a  explanation  t h a t was  and  of Malthus, had e n v i s i o n e d the p o s s i b i l i t y of a  society.  construct  money  Law  d e t e r r i n g those who was  laws  of  Commission's  of i t s predecessors - the Poor  the workhouse, w h i c h  perfect  thinking  relief.  two  poor r e l i e f ,  the  his argument flew i n  i t coincided with  did not  maintained  a b o l i s h e d so as to t e a c h  poor to depend upon themselves. the  He  Utilitarians  science of  the  1981;  of  256).  imagined  society  physical  p.  as  universe.  universal  Utilizing  that they  exact  as  According  law,  such could  Newton's to  Mishra  ( 1 9 8 4 ) , t h e s o c i a l s c i e n t i s t s of the 1960's a l s o f o c u s s e d formulating understand  a  science  of  the c u r r e n t s o c i a l  22  society problems.  in  order  to  on  better  Bentham,  along  Laws. He  had  network, of  with  Malthus,  s u g g e s t e d the  had  criticized  a n s w e r to p o v e r t y  workhouses e s t a b l i s h e d on  eligibility'. carefully  The  the  c o n d i t i o n s inside the  calculated  to  remain  not secure r e l i e f from any  out.  The  notion  of  'less e l i g i b i l i t y ' The  desirable  lowest paid relief  beneficial  be  than  t h a t only t h o s e  who  (de  was  Schweinitz,  Act  a  to  advocating  withdrawn  d i s s o l v e d any  decision  tantamount  old  to  or  which  condition form  the  of  of  be the  poverty  would  i d e a t h a t the  able-bodied  not  poor,  murder,  the  was  a  have  arisen  poverty would  relief,  have  employment  way  state  (or e m p l o y a b l e )  provide  infirm  'less e l i g i b i l i t y '  issues  the  not r e c e i v i n g any  of 1834  the  of  i t to  1943).  to  principle  applied  than  comfortable  worker who  While  also  the  or  especially  to  been  of  the  circumvent  the  i f relief  had  been  altogether.  (1964) p o i n t s out  mechanism  that  capitalism  t h a t the  provided  market economy and, modern  to  poor p e r s o n must a l w a y s  an o b l i g a t i o n t o s u p p o r t the  the  had  c o n d i t i o n of the  had  Polanyi  a  p r i n c i p l e s of 'less  less  and  Poor Law  moral  was  other source would seek them  The  poor.  Poor  R o y a l Commission's recommendations incorporated  individual. less  old  relief  workhouse  c o n d i t i o n s on the o u t s i d e , t h u s e n s u r i n g could  the  f o r England's  therefore,  in that  P o o r Law  marks the  country.  23  For  Reform Act transition  was to  s t a r t i n g point example,  a of  certain  conditions  were  necessary  f o r the development  reproduction  of i n d u s t r i a l c a p i t a l i s m , n o t a b l y :  market  consisting of workers  selling  their  embodied  labour;  (ii)  who  survive  predictability  labour  only  by  and r a t i o n a l i t y  i n a l e g a l system t h a t c o u l d r e p r o d u c e o r d e r ; ( i i i )  the  c o n c e p t of p r i v a t e p r o p e r t y ;  the  means of production;  surplus  could  (i) a  and  value  production;  (v) unequal exchange  (profits) (vi) a  ( i v ) p r i v a t e o w n e r s h i p of  f o r the owners  legitimate  state  which  produced  o f t h e means o f regulating  social  c o n d i t i o n s a n d f a c i l i t a t i n g i n t e r n a t i o n a l t r a d e ; and ( v i i ) an ideology While  of " i n d i v i d u a l i t y  most  completely effectively  of these  1  as opposed  conditions  had  to  'collectivity . 1  been  partially  met i n England by 1834, the Speenhamland prevented  the formation  of a  labour  or  A c t had pool  by  r e m o v i n g any i m p e t u s t o work i n o r d e r t o s a t i s f y b a s i c needs. While  the Speenhamland  community the  Reform  A c t had c h a r g e d  with the responsibility  the parish or  f o r maintaining  A c t o f 1834, a d m i n i s t e r e d  t h e poor,  a t the n a t i o n a l l e v e l ,  a t t e m p t e d t o make r e l i e f a v a i l a b l e o n l y i n s i d e t h e workhouse and  thereby  effectively  shifted  the responsibility  personal maintenance to the i n d i v i d u a l or her own  The  legacy  legislation,  for  who had t o r e l y on h i s  devices.  of the E l i z a b e t h a n which  Poor  Laws,  and  subsequent  was brought to Canada by r e s e t t l i n g  Anglo-  E u r o p e a n s , was composed p r i m a r i l y o f t h e f o l l o w i n g e l e m e n t s :  24  ( i ) the of  family  was  i t s members,  poor  were the  primarily responsible  ( i i ) i f the  responsibility  b e l i e f t h a t the  value  by the poor, must  be  and  the  fact that  below the ideas  Canada In  After  was  crisis  in their from  agency  to  'welfare  and,  bums'  l e v e l s are  kept  evidence that old  experienced two  well into  at  individual  alternatives.  would  be as  exception  p. 1).  25  the  twentieth economic  They  could  members or turn to  employment,  municipal  f o r temporary help,  a s s i s t a n c e were the  the  c r e d i t or  of 18 67 had  indigent over to i n d i v i d u a l  the  and  unemployment or  North America Act  f o r the  factors  slowly  i d e o l o g i c a l circumstances.  t h e i r extended family for  benefits evolved  historical  that,  f a m i l i e s had  British  remained the  welfare  both  out  market-place  responsibility relief  received  'unworthy' poor  assistance  e c o n o m i c , p o l i t i c a l and  Although the  1985;  of  i n d i v i d u a l s who  private  reference  day  of s o c i a l  reflection  seek r e l i e f  not,  Current  (198 5 ) p o i n t s  century,  the  Confederation  a system  a  prevailing Guest  (iii)  p r e v a i l i n g minimum wage;  were 'worthy' and  present  the  hard'.  Canada,  and  provide,  government;  minimum wage p r o v i d e c o m p e l l i n g  'die  not  well-being  a s s i s t a n c e , w h i c h was  below any  e t a l , 1984).  could  of l o c a l  of any  ( i v ) the b e l i e f t h a t t h e r e (Clague  family  f o r the  level.  referred municipal  loans.  turned  some  the  provinces,  "More o f t e n to  the  than  charitable  departments of public  r a t h e r t h a n the  rule"  (Guest,  This  'residual'  that relief  concept  was  t o be  of  social  g i v e n to an  security,  or  the  individual  only  notion  when a l l  o t h e r a v e n u e s were e x h a u s t e d ,  c o n t i n u e d i n t o the 1920's.  prevailing  and  the  ideology supported  industrious individual  t h r o u g h the the  individual  thrift"  (Guest,  programs  "the  to  1985;  p.  2).  value  of  the  and  p. 3).  play  a  laissez-faire least  could  practice  1985;  should  prevailing is,  market-place  reflected satisfy  t h a t i t was the The  classic,  personal  belief  or  that  her  needs  only necessary  for  industry  and  belief that social security role  of  best  liberal  efforts  complemented  political  g o v e r n m e n t i s the This  his  " h a b i t s of  residual theory  the  The  economy;  government" ideology  and  the  (Guest,  stressed  self-reliance  i n d i v i d u a l w i t h i n a f r e e market w h i c h o p e r a t e d  that  the  of  the  w i t h minimum  government interference.  Although people  some reformers  recognized  were  f o r c e d to l i v e  they  were s l o t h f u l ,  because  vagaries of the 1930's and  situation  below  market economy) i t took  attitudes  1985).  the  As  regarding the  of (not the  of  the  I I to f o r c e a change i n  residual  depression  poverty  worsened  the  (through  the d i v i s i o n of the p o o r i n t o two  26  line  the depression  of l a r g e numbers of i n d i v i d u a l s  of t h e i r own),  poverty  but r a t h e r , as a r e s u l t of  the a d v e n t of World War  prevailing (Guest,  t h a t a large percentage  relief  economic no  fault  categories  (i.e.,  the 'deserving'  (Turner  The  and Turner,  concept  and t h e 'undeserving'),  broke  down  partly  as a  1981).  of i n s t i t u t i o n a l  welfare developed  r e s u l t o f t h e i d e o l o g i c a l t r a n s f o r m a t i o n w h i c h f o l l o w e d these two  major  "resulted nature  world  from  events.  t h e growing  The  institutional  r e c o g n i t i o n t h a t b e c a u s e of t h e  of s o c i a l o r g a n i z a t i o n i n an u r b a n - i n d u s t r i a l s o c i e t y ,  the r i s k s t o an i n d i v i d u a l ' s s o c i a l s e c u r i t y social  approach  cost  of operating  a society"  a r e p a r t of t h e  (Guest,  1985; p. 2 ) .  T h e r e f o r e , t h e s o c i a l c o s t o f p r o g r e s s s h o u l d be borne by t h e collective  as opposed t o t h e i n d i v i d u a l .  The  Emergence of the Canadian Welfare  State  The  ' w e l f a r e s t a t e ' was as much a c h i l d o f c e r t a i n  political  and e c o n o m i c d e v e l o p m e n t s as i t was t h e r e s u l t o f a p o p u l i s t n o t i o n e n c o m p a s s i n g e g a l i t a r i a n and h u m a n i t a r i a n i d e a l s . The devastation reaped  on the Canadian populace  by the depression  of t h e 1930's has been b o t h d o c u m e n t e d i n o f f i c i a l s t a t i s t i c s and on  r e c o r d e d i n the o r a l h i s t o r i e s of the period. the heels  of the depression,  massive i n d u s t r i a l by  the state,  of  " t h e war p r e c i p i t a t e d  a  organized  and c o - o r d i n a t e d  which r e s t o r e d the v a l i d i t y  and dynamism o f  world capitalism  mobilization,  Following  with a rapidity inconceivable a t the height  the depression"  (Wolfe,  view t h a t t h e s t a t e s h o u l d  1984; p. 4 6 ) .  The  play only a l i m i t e d  traditional  p o l i t i c a l and  e c o n o m i c r o l e was r e p l a c e d by a c o n s e n s u s t h a t , i n o r d e r t o  27  minimize  any  following  periods of low  employment and  to avoid recession  the war, the s t a t e s h o u l d r e m a i n a c t i v e l y i n v o l v e d  in managing the economy.  Born  from  government, by  Keynes*  their  the  consensus  the  'welfare state'  macro-economic  laissez-faire  profits  that  they  government's  among  direct  justified  policies.  Businessmen  softened  when  counted  they  accumulated  as  i n t e r v e n t i o n during  result  the  war.  the jobs and  m o b i l i z a t i o n of  The  government, fearing the labour unrest which may the i n c r e a s e d s i z e and  "engineered  a dramatic  change i n p o l i c y  of s o c i a l w e l f a r e p r o g r a m s " ( W o l f e , 1984;  Canada was  one  of  the  Labour  industries. have been  s t r e n g t h of the  t o p l a n n i n g f o r p o s t - w a r r e c o n s t r u c t i o n and  huge  wages w h i c h  resulted  force,  full-scale  the  a  had  f u l m i n a t e d by  the  and  theoretically  l o o k e d to g o v e r n m e n t to g u a r a n t e e from  business  was  stance had  labour,  labour  with respect  the i n t r o d u c t i o n  p. 50).  of the f i r s t a d v a n c e d c a p i t a l i s t c o u n t r i e s to  employ the principles of Keynes' theory;  however,  "government  l e a d e r s and t h e i r e c o n o m i c p o l i c y - a d v i s o r s f a s h i o n e d a unique Canadian synthesis of the  more general  the  approach  traditional  development" be  staples  (Wolfe,  1984;  theory  can  detected  1938.  H o w e v e r , by 1943,  p.  to  48).  i n government  Keynesian  theory  Canadian Traces  of  b u d g e t s as  economic Keynesian early  Prime M i n i s t e r M a c k e n z i e K i n g  28  with  as had  e m p l o y e d a group eventually  of young  disseminate  Keynesian economists  the  theory  throughout  who the  would federal  bureaucracy.  The  d e p r e s s i o n of the 1930's had r e f u t e d the p r e v a i l i n g  market and  price  theory, and  free  although Keynes' theory included  t h e s e c o n c e p t s , i t a l s o f o c u s s e d on the a g g r e g a t e f a c t o r s of gross  national  product,  national  g o v e r n m e n t e x p e n d i t u r e s and contended  that  aggregate  that  investments,  volume of employment.  depression  demand;  income,  was  caused  i s , the  by  combined  a  Keynes  deficient,  expenditures  of  g o v e r n m e n t and the p r i v a t e s e c t o r were too s m a l l to c r e a t e universal employment (Gamble and  The  two  growth  crucial were  spending  growth  1976).  i n Keynes' e q u a t i o n  c o n s u m e r spending  and  f o r economic  investment.  Consumer  would, q u i t e s i m p l y , i n c r e a s e as i n c o m e s i n c r e a s e d .  However, growth  factors  Walton,  i f doubtful investors  would  either slow  slowed,  investment  and  an  failed  or not occur at a l l .  injection  of  production, which  more e m p l o y m e n t ;  to i n v e s t ,  capital would  as a consequence,  economic  When economic would  stimulate  ultimately  provide  national incomes  would  rise.  Eckstein  (1965) explains  the  effects  that government  has on n a t i o n a l i n c o m e s i n v e r y s i m p l e t e r m s . i n government spending  spending  Any i n c r e a s e  w i l l r a i s e the gross n a t i o n a l p r o d u c t  29  by  an  amount d e t e r m i n e d  g o v e r n m e n t spends one services, the  the  by  the  extra  'multiplier effect'.  dollar  dollar is received  by  by  as t a x e s .  and  Eckstein's  example,  and  another  sixty cents  business  ninety  cents  the  spending  of the  some p o r t i o n  cycle  that  will  forty  of  additional  To  use  households/individuals  original dollar  receive  begin.  into  cents.  while  The  dollar  government  households while  spend  business  and  g o v e r n m e n t spend none of t h e i r e x t r a i n c o m e . Consumers spend  f i f t y - f o u r cents  receive. Provided same  manner  spending cents.  will  as  out  of  the  first  sixty  cents  the  yield  original dollar, households  an  the  second  1965;  p.  additional i n the  n a t i o n a l p r o d u c t by  E c k s t e i n p o i n t s out, any  gross  effect'.  gross  of  thirty-two  same p a t t e r n ,  $2.18  services  (Eckstein,  86).  Likewise, the  they  round  the o r i g i n a l d o l l a r s p e n t by g o v e r n m e n t on goods and the  will  t h a t the f i f t y f o u r c e n t s i s d i v i d e d i n the  I f the s p e n d i n g c y c l e c o n t i n u e s  w i l l increase  or  businessman i n  w i l l put the b a l a n c e back  assume  each  goods  a p o r t i o n i s r e t u r n e d to g o v e r n m e n t  of t h e i r s h a r e of the d o l l a r ,  receive  by  However, each party, while r e t a i n i n g  circulation  the  h o u s e h o l d s as income i n  form of wages, r e n t s o r i n t e r e s t ;  the form of p r o f i t s ; and,  purchasing  If  n a t i o n a l product  by  the  increase i n taxes size  of  the  reduces  'multiplier  H o w e v e r , using the same e x a m p l e , the gross n a t i o n a l  p r o d u c t i s r e d u c e d by  only  $1.18. T h i s i s b e c a u s e ,  30  although  spending  on  t h e f i r s t round  was  reduced  by t a x a t i o n i n the  same p r o p o r t i o n as s p e n d i n g on the f i r s t round by  the  government  services,  purchasing  "the i n i t i a l r o u n d  of  one tax  was i n c r e a s e d  dollar  of  payment  goods  was  and  simply  a  t r a n s f e r of p u r c h a s i n g power, w h i c h does not c o u n t as gross n a t i o n a l p r o d u c t " ( E c h s t e i n , 1965; p. 87).  Since  investment  investment  is crucial  cycle,  Keynes  to the  proposed  investment-spendingthat  the  state  should  assume the r e s p o n s i b i l i t y f o r r e v i v i n g i n t e r e s t i n i n v e s t m e n t d u r i n g the their  c r i t i c a l times  money.  demand  when i n v e s t o r s  Keynes suggested  for investment  that,  capital,  were  h o l d i n g back  i n o r d e r to f i l l  the  government  should  u n d e r t a k e p r o j e c t s by b o r r o w i n g money from the banks, would  be repaid at a l a t e r date with tax money.  Keynes' theory not only j u s t i f i e d the  basis  demand, social  that i t also  aggregate  built  not  into  the  as  p. 48).  which  In addition,  higher wages f o r workers  sustained levels higher levels charity,  economy,  demand i n p e r i o d s of  concrete and  The  wages  "legitimated  insurance,  stabilizers  1984;  such  but which  cyclical  the  of  aggregate  of spending as  on  on  automatic  would  buoy  downturn"  up  (Wolfe,  T h e r e f o r e , the ' w e l f a r e s t a t e ' was, i n p a r t , a l o g i c a l extension of the  Keynesian  model.  p o s t - w a r r e c o n s t r u c t i o n p l a n s of the K i n g a d m i n i s t r a t i o n  were o u t l i n e d i n the Throne S p e e c h i n 1944.  I t was d e c l a r e d  that  policy  "the primary object of post-war  31  domestic  would  be  social  security  According  to  and  human  welfare"  (Wolfe,  1984;  p.  54).  Wolfe:  "The government committed i t s e l f to aim f o r the e s t a b l i s h m e n t of a n a t i o n a l minimum of s o c i a l s e c u r i t y with regard to such matters as employment, n u t r i t i o n , housing, and p r o t e c t i o n from unemployment, the e f f e c t s of a c c i d e n t , i l l h e a l t h , and o l d age. I n sum, the speech was f a r - r e a c h i n g and innovative i n the degree of government involvement i t promised i n order to ease the t r a n s i t i o n from w a r t i m e to p e a c e , to g u a r a n t e e f u l l employment i n the post-war economy, and to provide a n a t i o n a l minimum of s o c i a l s e c u r i t y f o r a l l C a n a d i a n s " ( W o l f e , 1984; p. 54).  P o s t - w a r r e c o n s t r u c t i o n p l a n n i n g c o n t i n u e d and, i n 1945, government issued the The  White P a p e r was  government's  White Paper on  fiscal  of  the  policy  construct i t s budgets with an  Keynesian  and aim  the  and  54).  stressed  maintaining  high  employment and continued  in  i t also levels  economic favour  of  until  idea  deflation"  exports  growth. 1975  principles that  "of  i t should  to safeguarding the economy  against recurrent i n f l a t i o n However,  Income.  the f i r s t p u b l i c d o c u m e n t to r e c o r d the  adoption  counter-cyclical  Employment and  the  (Wolfe,  Canada's i n order  Keynesian and,  1984;  p.  reliance  on  to ensure economic  during  this  full  policies time,  a  ' w e l f a r e s t a t e ' based on the o r i g i n a l p o s t - w a r r e c o n s t r u c t i o n plans, continued  The  Nature and  to endure and  Functions of the Welfare  A c c o u n t s of the n a t u r e and state  have  to expand.  been  State  f u n c t i o n s of the  o f f e r e d by  32  w r i t e r s whose  modern  welfare  views  reflect  different (1978)  ideological  refer  to  perspectives as  perspectives.  these  different  Drover  and  Woodsworth  accounts  and  ideological  "welfare paradigms".1  F o r example,  a popular  and (perhaps d o m i n a n t ) view of s o c i a l w e l f a r e c o n s i d e r s i t t o be an h u m a n i t a r i a n a t t e m p t to i m p r o v e the q u a l i t y of l i f e i n a  society.  including,  This quest  community"  work  p.  of c o n t r i b u t o r s  w e l f a r e and,  i n turn,  o t h e r hand,  Marxist serve  theorists to  system  faith  of  values  i n man,  who  legitimize  the  contend the  faith  ideologies  'benign' view  of  reflected  welfare.  that  is criticized social  capitalist a  Several  to t h i s  b e n i g n view  as w e l l as s e r v i n g  e.g., Gough, 1979).  1).  these i d e o l o g i e s are  i n the a t t e n d a n t t h e o r i e s of s o c i a l  the  a number  e q u a l i t y and e q u i t y , and s o c i a l j u s t i c e i n the ( A r m i t a g e , 1 975;  u n d e r p i n the  On  on  " c o n c e r n f o r the i n d i v i d u a l ,  in democracy,  social  i s based  by  welfare  state  and  "social control"  neo-  systems  capitalist  function  (see,  A w e l f a r e s t a t e i s n e c e s s a r y i n o r d e r to  c o m p e n s a t e f o r the b l a t a n t i n e q u a l i t i e s w h i c h a r e s p a w n e d by t h e c a p i t a l i s t system  The  first  variously  "welfare paradigm" labelled:  "anti-collectivist" economics"  (O'Connor, 1973).  "rugged (George  to  be  examined  individualism"  and  Wilding,  f o c u s s e s on i n d i v i d u a l i n i t i a t i v e and  33  been 1983 ),  or "welfare  This perspective  drive,  a c o m p e t i t i v e p r i v a t e e n t e r p r i s e system.  (Djao,  1976)  ( D r o v e r and Woodsworth, 1978).  has  operating  It clearly  within reflects  its  origins i n classic liberalism since  deemed t o be p r e - e m i n e n t . viewed  as a  C o m p e t i t i o n among i n d i v i d u a l s i s  means o f c r e a t i n g  exchange  within  vehicle  f o r ensuring  the i n d i v i d u a l i s  the market  happiness,  place  the  and  unfettered  i s considered  maximization  the best  of  welfare.  C o n s e q u e n t l y , s o c i a l w e l f a r e does n o t f a l l u n d e r t h e p u r v i e w of  the state.  "rule-maker property  In fact, and umpire,  rights,  the formation  necessary  goods  individually,  of the s t a t e  defining  providing  preventing  society  the role  a  and e n f o r c i n g  stable  monetary  of monopolies,  and s e r v i c e s  but which  i s t h a t of  that  necessarily  private  framework,  and providing  cannot benefit  be  the  consumed  a l l members of  ( i . e . d e f e n s e and n a t i o n a l S e c u r i t y ) " ( D j a o , 1983; p.  38 ).  A second  welfare  "modified  welfarism"  (George  (Drover upholds  (Djao,  Woodsworth,  the c e n t r a l  Canada,  Beveridge,  tenets  idleness.  from  "reluctant  1 976 ) o r 1978 ). of  "liberal  While  want,  I t i s recognized  34  includes  e f f e c t s of c a p i t a l i s m  i n Great  Britain,  that  and  on t h e  Marsh i n  with t h e i r concern  disease,  this  individualism,  capitalism, the perspective  epitomized this perspective  i n d i v i d u a l s be f r e e  1983),  Wilding,  concern f o r the undesirable  individual.  and  and  and  l i b e r t y , and c o m p e t i t i v e a  has also been variously l a b e l l e d as  individualism"  collectivism"  paradigm  paradigm  ignorance,  capitalism  that  squalor  creates  and  perpetuates  inequality  regulate capitalism affected  Within  and provide  of t h e g o v e r n m e n t i s t o  a safety net f o r individuals  by the c y c l i c a l vagaries of the economic  this  paradigm,  "modernization" of  and t h e r o l e  the  the " t e c h n o l o g i c a l determinism"  theory  welfare  state.  The  theory  i s a n a t u r a l process  the  (Djao,  race  industrialization, effects  of  individual. may  social  1983).  social  Although  welfare  suggests  that  i n t h e d e v e l o p m e n t of  As a n a t u r a l b y - p r o d u c t o f  welfare  industrialization  be d i f f e r e n t  or  provides an explanation f o r the growth  industrialization human  system.  serves  and  to ameliorate the  urbanization  on  the  t h e r a t e and pace o f i n d u s t r i a l i z a t i o n  i n various societies, policy  will  t h e d e v e l o p m e n t of  parallel  the  growth  of  industrialization.  Finally,  a  examination  third,  major  welfare  paradigm  i s t h a t of s o c i a l democracy.  that  bears  The e x t e n s i o n a n d  g r o w t h o f s o c i a l w e l f a r e p r o g r a m s i s seen as p a r a l l e l i n g t h e extension  of  "civil",  "political"  and  "social"  citizenship  among members o f a s o c i e t y ( R o c h e f o r t , 1981; p. 5 7 2 ) . C i v i l citizenship, rights  t h e most  of i n d i v i d u a l  religion,  the right  justice"  (Rochefort,  the  18th century.  the  19th century  elemental  form,  includes  "the basic  f r e e d o m , such as f r e e d o m o f s p e e c h and t o own  property  1981; p. 572). "Political"  with  This  equal  developed  during  developed  during  o f what l a t e r  became  citizenship  the beginning  35  and t o r e c e i v e  universal this  enfranchisement.  T.H.  particular perspective,  citizenship t o the  finally  civilized  being  society"  to  according  to  1981;  progresses  and  the  p.  proponent  of  concept  of  the  the  " r i g h t to  to l i v e  the  standards  572).  through  a  that  include  s o c i a l heritage  (Rochefort,  citizenship  suggested  expanded  f u l l i n the  Marshall,  As  life  concept  of  the  i t s various  stages,  and  explicitly  would  appear  citizenship, functions  that  the  would  Titmuss  at  role be  that  capital"  is  each of  the  stage  the  the  in  state  the would  liberal  stated,  it  development  of  expand  social democratic  "possessive  unacceptable  ( T i t m u s s , 1977 ).  not  the  and  its  position.  He  modified.  championed  suggested  Although  in  individualism the  A l t r u i s m , on the  social  of  market  welfare  field  p a r t of e a c h i n d i v i d u a l i n  a s o c i e t y , w o u l d p r o m o t e the i n d i v i d u a l ' s sense of w o r t h promote  the  alienation.  feeling  of  community,  One  regulating  the  c o h e s i o n f o r a s o c i e t y f r a c t u r e d by  of the  emerge  thereby  most p o w e r f u l c r i t i q u e s of the  recently  theorists.  and  reducing  W i t h i n s o c i a l d e m o c r a c y , the s t a t e p l a y s a major  role in r e d i s t r i b u t i n g benefits, providing  a in  becomes more  stigmatizing.  of  prevailing  c o n c e p t of s o c i a l w e l f a r e expands and less  share  has  been  T h i s p o s i t i o n has  36  that  offered  economy  and  capitalism.  welfare by  been e p i t o m i z e d by  state  to  neo-Marxists the  work  of  Ian  Gough (1979).  contradictory  In Gough's v i e w , the  phenomenon  welfare state is a  that satisfies  the  imperatives  to  w h i c h the s t a t e i s o b l i g e d to r e s p o n d as a c o n s e q u e n c e of i t s place  i n the  views  of  the  civilizing  darker,  both  side  establish  accumulation employs  the  component  In  of  1970's,  manifested has  the  countries: end  state;  of  the  Since  the  capitalist  contradictory  In  this  state's  signs  welfare  economic  capitalist  economic  system,  for  tasks),  capital the  state  its structurally  the  public  welfare  is exceptionally  satisfy a l l three  goals.  State  s e r i e s of  the  another,  order,  infrastructure  simultaneously  and  maintain  achieve  regard,  is the  necessary  world  events  of  trouble  s t a t e s of  which  Western  ( i ) high u n e m p l o y m e n t c o u p l e d growth;  (iii)  a  (v) a g e n e r a l f e e l i n g  government.  37  converged Mishra were  and  (1984)  apparent  industrialized  with i n f l a t i o n ; ( i i )  fiscal  ( i v ) a r e d u c t i o n i n the r e s o u r c e s  s e r v i c e s ; and, the  a  there  coin.  conventional  humanistic  t h e m s e l v e s as a g l o b a l r e c e s s i o n .  enumerated  throughout  the  and  C r i s i s of the W e l f a r e the  the  conditions  goals.  the  simultaneously  (potentially  u s e f u l s i n c e i t can  The  highlight  a l l means a v a i l a b l e t o  determined  While  neo-Marxists  to  to  itself  capitalism.  state  for  is required  legitimize and  welfare  aspects,  somewhat state  s t r u c t u r e of  crisis  of  a l l o c a t e d to  of d i s s a t i s f a c t i o n  the  social with  Although  Canada,  f o r example,  growth  or r e c e s s i o n a r y  troughs  and  capitalism of  spiralling  periods highs  experienced  since  threat  the  deep  the war,  o f the "boom-bust"  counter-cyclical fiscal  times,  had  t o t h e economy  been  applied  c y c l e s of  policies.  whenever  had a r i s e n .  create  a situation  which,  was  highly u n l i k e l y :  and  inflation  coping  simultaneous  (i.e.,  Great B r i t a i n , with  according  the  However,  1970's, a s e t o f e c o n o m i c and s o c i a l  for  slow  Keynes'  w h i c h he had a d v o c a t e d be used only d u r i n g  economic  In  some  had been somewhat smoothed through the a p p l i c a t i o n  Keynesian  theory,  had  difficult slightest  i n the  mid-  f a c t o r s converged to  to economic  high l e v e l s  of  theorists,  unemployment  'stagflation').  the United  States, and Canada, the strategy  a  budget  growing  deficit  involved  severe  r e d u c t i o n s i n g o v e r n m e n t s p e n d i n g f o r t i f i e d by the e m e r g e n c e of a n e o - c o n s e r v a t i v e reduce  government  as severe as  a  countries, sources:  spending  unemployment  strategy the  an  Unfortunately,  coincided  (which  with  conceivably  f o r coping  with  government  faced  other  t h e need t o f a c t o r s such  had been  inflation). pressure  engineered In  from  these various  ( i ) the demands to reduce government expenditures  c o n t r o l debt i n order (ii)  ideology.  increased  to deal  demand  with  the f i s c a l  f o r public  crisis;  A d d i t i o n a l l y , there  38  was  and,  services, especially  d i r e c t t r a n s f e r payments s u c h as unemployment i n s u r a n c e welfare.  to  a demand,  and  n o t only f o r  traditional  services,  but  a l s o f o r more r e c e n t l y  developed  programs w h i c h a l s o consumed r e s o u r c e s ; f o r example, r i g h t s , l e g a l a i d , ombudsmen, and groups.  The  government  was  r e v i t a l i z i n g t h e economy.  s e r v i c e s to v a r i o u s e t h n i c  also faced  with  the  task  The  to  principle  the  Specifically, excess  rate  of  at  of the  the  decline.  monetarism  which  the  is that  supply  of  i f a s t a t e bank i n c r e a s e s the g r o w t h of t h e  prices will increase. below  met,  supply-  policies.  general  linked  of  These m u l t i p l e demands were  i n p a r t , by a d o p t i n g a c o m b i n a t i o n of monetarism and side economic  human  value  output  inflation is money  grows.  money s u p p l y i n  o f goods and  services,  H o w e v e r , i f the money s u p p l y i s k e p t  of  goods and  Therefore,  service  s t a b i l i t y i n the  output,  prices  will  economy  flows  from  pegging the money s u p p l y t o the v a l u e of the o u t p u t of goods and  services.  While  i n f l a t i o n holds the c e n t e r s t a g e ,  unemployment increases, wages and,  to  workers i n any  unemployment. order  to  be  a  market  problem.  will  accept  e m p l o y m e n t t h a t pays  event,  Massive  control  to  the  theory,  As  there exists a  unemployment  inflation  unemployment insurance i n t e r f e r e s w i t h the  monetarists consider  and  programs and  the  market  39  wage  1981). (i.e.,  of  tolerated in  implementation  minimum  i s 'free',  lower  'natural' l e v e l  must be  market f o r c e s (Crane,  i f the  unemployment  of  legislation According  constrained  only  by  itself  minimal  over  monetarists  legislation),  the long  term.  i t will In this  echo t h e s u g g e s t i o n s  c o n t r o l and regard,  balance  contemporary  made by Adam S m i t h i n t h e  1800's.  From t h e l a t e 1940's, u n t i l t h e demise o f K e y n e s i a n in  policies  the mid-197O's, the Canadian government had, from time to  time  and on a l i m i t e d  of m o n e t a r i s m .  basis, implemented c e r t a i n  F o r e x a m p l e , from t h e l a t e  developments i n the Canadian dependence  on m a i n t a i n i n g  order to sustain continued exporting United  20 p e r c e n t  States.  economy  1940's onwards,  reflected  i t s pre-war l e v e l growth.  more  the country's of exports i n  By the 1950's, Canada was  of i t s t o t a l  A t t h e same  principles  time,  resources  "the rising  to the l e v e l of  e x p o r t s was a c c o m p a n i e d by a l a r g e amount of U n i t e d direct investment 60).  The United States investment  volume  of imports,  investment 1954,  and i m p o r t s ,  created  inflation,  principles  of United  a inflationary  States  cycle.  In  d o w n t u r n but r e l u c t a n t t o a p p l y  f o r f e a r of i n c r e a s i n g the r a t e of  t h e g o v e r n m e n t began t o " p l a c e a g r e a t e r r e l i a n c e  monetary  policy  as  stabilization"  (Wolfe,  1984; p.  The  1984; p.  was accompanied by a high  and t h e c o m b i n a t i o n  f e a r i n g an e c o n o m i c  Keynesian  on  i n t h e C a n a d i a n economy" ( W o l f e ,  States  a  supplementary  of  61).  G o v e r n o r o f t h e Bank o f Canada b l a m e d  40  instrument  i n f l a t i o n on t h e  large  amount  flowing  of  into  American  Canada.  investment  Consequently,  dollars  he  which  began  to  were  curb  the  money supply to r e s t r i c t the amount of money available. success  of  inflation rate  this  by  policy  1957;  post-war  recession  a  decline  which  signalled  the  recession" (Wolfe,  ended  i n the  rate  of  h o w e v e r , i t c o i n c i d e d w i t h a f a l l i n the  of i n v e s t m e n t ,  major  produced  "The  i n 1 963  and  by  onset  1 984;  the  of t h e  p.  61).  mid-1 960's,  government policy-makers once again adopted  first The  Liberal  more expansionary  e c o n o m i c p o l i c i e s and t u r n e d t h e i r a t t e n t i o n t o a c h i e v i n g t h e goal  of  full-employment.  Although,  previously,  there  had  been several such attempts to curb the money supply, i n 197 5, the g o v e r n m e n t o f f i c i a l l y a d o p t e d economic  strategy.  This event  K e y n e s i a n e r a ( W o l f e , 1984). waging war 1960's,  The  against Keynesian  finally  moved  monetarism as t h e signalled  the  primary  end  the  had  been  economic p o l i c i e s since the  mid-  t o the  m o n e t a r i s t s , who  of  forefront  of  economic  policy  making.  By  adopting  following world.  the  economic and  lead  Although  consistently 1970's,  monetarist of  policies,  governments  i n other  Thatcher,  favoured  a t the  economic  monetarism  beginning  policies  i n the  which  of  s i n c e her  his t e r m ,  reflected  monetarist principles.  United  a  Canada parts  of  the  Kingdom,  has  election  Reagan  mixture  was  i n the  implemented  of s u p p l y - s i d e  Supply-side economics originated  i n the 19th c e n t u r y w i t h the F r e n c h e c o n o m i s t  41  Jean  Baptiste  Say.  He  c o n t e n d e d t h a t " t h e r e can  n e v e r be  a shortage  of  p u r c h a s i n g p o w e r i n the economy, b e c a u s e supply c r e a t e s i t s own  demand" (Crane,  Law"  because  unemployment siders  foresaw  and  investment;  which  will  promote  which  is initially taxes  they  both  both  at very  and,  taxes  r e j e c t e d "Say's  productivity  low  recovery  levels.  will  flow  in order  be  through  compensated  monetarists  t h e o r i e s hold the  Supplyfrom:  (i)  to s t i m u l a t e  entrepreneurial activity. incurred  and  ( i i ) government d e - r e g u l a t i o n ,  and  key  reducing f o r by  Any  deficit  personal  the  and  speed  with  s u p p l y - s i d e r s suggest  that  economic development w i l l  Although their  will  Keynes had  that  business  s a v i n g s and  which new  3).  that economic  personal  business  p.  could stabilize  suggest  reducing  he  1981;  occur.  to promoting  economic  growth,  employ some methods which are d i a m e t r i c a l l y opposed.  tightly  controlling  deliberately  attempt  the  in  higher-income  controlling  such  Insurance.  By k e e p i n g  and  money,  brackets  direct  inflation  the  monetarists  but sustained,  growth  While i n c o m e i s r e d i s t r i b u t e d u p w a r d t o  e f f i c i e n c y of the l a b o u r  reduced  of  to produce a slow,  over the long-term. those  supply  By  and  toward  capital,  market is i n c r e a s e d through transfer  p a y m e n t s as  the  tightly  Unemployment  wages down, the demand f o r goods i s is kept  under c o n t r o l .  hand, the s u p p l y - s i d e r s would f l o o d the  the  other  market w i t h goods i n  o r d e r to c r e a t e demand w h i c h , s u b s e q u e n t l y ,  42  On  would encourage  investment  Although  and  development.  Keynesians  economic  and  strategies  contemporary  monetarists  for  managing  economic problem  state  s e c t o r and  consensus on 1976;  pp.  running  63 and  64).  government should control  inflation  monetarists market  and  place the  Keynesians  and  maintain  their  on  that  they  are  the  important  split  between  of  (Gamble and  the  Walton,  are of the opinion t h a t the  full  faith  emphasis  most  political-  maintenance  interventionist  role  in order  employment.  in a  free  controlling  Monetarists i n s i s t that present large  the  mixed economy"  p l a y an  rival  o v e r the n a t u r e and r o l e of  threatens  the  the  - inflation",  them "has become a d i s a g r e e m e n t the  "offer  and  However,  competitive  the  money  supply.  g o v e r n m e n t s have become  unwieldy  and,  therefore,  must  'downsized'.  H o w e v e r , a l l e v i a t i n g unemployment i s not  responsibility  of any  Economic which,  To  policies  government,  remain  i f l e f t alone,  the  no  matter  domain  will continually  of  economic  different  approach  t a k e n by  Keynesians.  very  limited  redistributing  place  policies  to the problem  social  be the  what i t s s i z e .  the  market  place  resulted  of monetarism in  a  welfare  system  and  radically  of ' s t a g f l a t i o n ' from  In the m o n e t a r i s t ' s s y s t e m , for a  so  self-adjust.  summarize, the adoption of a combination  supply-side  to  that  there is a aimed  at  w e a l t h to the poor, and based on c o n c e r n s f o r  the i n d i v i d u a l , e q u a l i t y  and  43  e q u i t y , and  social justice.  The  role  o f t h e s t a t e no l o n g e r  'welfare'  (in the broad  controlling spending  t h e money  encompasses  sense),  supply,  t h e p r o v i s i o n of  but i s r e s t r i c t e d  balancing  the budget  what i t c a n r a i s e t h r o u g h t a x e s , and r e d u c i n g  to by  social  expenditures.  The  l e g i t i m a t i o n f o r the adoption  side e c o n o m i c s was p r o v i d e d  o f monetarism and s u p p l y -  by a n e o - c o n s e r v a t i v e  which i s often r e f e r r e d to as the "New as  a  philosophy  predates  period of history state,  a  structure.  and  the  Conservatism conservative  was marked by t h e a u t h o r i t a r i a n i s m o f t h e  concept  mercantilism,  liberalism  Right".  ideology  of  the  and a d i s t i n c t  'natural  order'  and r e l a t i v e l y  of  things,  inflexible  T h i s was t h e p e r i o d when t h e p h i l o s o p h y  class of the  p r e - e m i n e n c e o f t h e i n d i v i d u a l ( c l a s s i c a l l i b e r a l i s m ) had n o t y e t emerged. "in  H o w e v e r , as R e s n i c k  one o f t h o s e  conservatism  interesting  origin".  liberalism,  or  what  reverses,  neo-  with the values of  which are anything but c o n s e r v a t i v e  The n e o - c o n s e r v a t i v e  individualism". repudiate  ideological  has come t o i d e n t i f y i t s e l f  i n d i v i d u a l i s m and l i b e r t y in  (1984; p. 6) p o i n t s o u t ,  was  ideology  identified  reflects  earlier  B o t h c l a s s i c l i b e r a l i s m and  as  "rugged  neo-conservatism  the c o l l e c t i v e  (Resnick,  1984),  p r i m a c y of t h e i n d i v i d u a l ,  and uphold  a f r e e market  unhampered by any i n t e r f e r e n c e from the state.  44  classic  propound the system  The  neo-conservative  Britian,  United  population who  p o l i t i c i a n s have been e l e c t e d ( i n G r e a t  States  and  Canada)  have become disenchanted  by  a  segment  in,  and  f o r example, the  elected  on  the  unemployment.  United  b a s i s of  States and  a  general  prevailing economic s i t u a t i o n , specific  mandate  to  slash  social  services.  However,  could  tap  an  aspe c t s  into  of  the  once  underlying  welfare  when r e d u c i n g  ( P i v e n and  C l o w a r d , 1982).  Dale  (198 5) point out  United  Kingdom,  has  which  the  unemployed  enacted  British  such  the  given  a or  Administrations  dissatisfaction and  were  with  security expenditures  with  meet  with  certain minimal  f o r c e r t a i n programs and  Thatcher Administration i n the policies which  a t the same time, depend.  (Taylor-Gooby.  Columbia,  For example, Taylor-Gooby  shown t h a t s u c h p o l i c i e s "may support"  critical  politicians  dissatisfaction  expenditures  that the  unemployment l e v e l s and,  British  elected,  system,  resistance  Although  g o v e r n m e n t s were not  social  the  with huge governments  w h i c h were s e e m i n g l y i n e f f e c t i v e i n d e a l i n g w i t h the i s s u e s of i n f l a t i o n  of  Yet  have  increased  cut programs upon  election  results  have  actually generate enthusiastic  1985;  p.  1).  C l o s e r to home, the  C o l u m b i a S o c i a l C r e d i t g o v e r n m e n t was  recently re-  e l e c t e d i n s p i t e of i t s p r e v i o u s u n p r e c e d e n t e d a s s a u l t on  the  s o c i a l welfare system.  The The  Post-Crisis Period continuing  s t a t e has  hinged  discussion  of  a r o u n d the  45  the  'crisis'  of  the  d i c h o t o m y b e t w e e n , on  welfare the  one  hand, the  those  supporting welfare ideals,  neo-conservatives.  welfare  state,  with  "On  and, on t h e o t h e r ,  t h e one hand  i t s commitment  stands  to  the o l d  universal  and  c o m p r e h e n s i v e s o c i a l programs and t o s o c i a l r i g h t s g e n e r a l l y ... and on t h e o t h e r , s t a n d s i t s a r c h enemy with  i t s d o c t r i n e of monetarism  neo-conservatism,  and the gospel  of free  market, h e l l b e n t on d e m o l i s h i n g t h e s o c i a l w e l f a r e ( M i s h r a , 1986; p. 1 ) . view  of the f u t u r e  suggests range  What emerges i s an " a l l o r n o t h i n g "  of the welfare  state.  Mishra  t h a t , i n t h e f a c e of e c o n o m i c problems,  of available  policy  a  policy  abolishing  tightening  or restricting  funding  successful implementation  democratic  system  suscepta bility evidenced  i s another  the welfare  system  up  eligibility,  program  by  the public  of the p o l i c y  within the  matter.  of the p o l i t i c i a n  of  F o r example,  to public  from  t h e ' o l d age' p e n s i o n voters  fact, Therborn  long  wish t o  and r e d u c i n g  opinion  the was  ensuing  was s u c c e s s f u l i n c o n v i n c i n g  him t o  action.  and R o e b r o e c k (1986; p. 1) a r g u e t h a t , "as  as d e m o c r a c y  irreversible  rates.  a  The  r e c o n s i d e r h i s d e c i s i o n t o t a k e such  In  may  Mishra  i n 1985, when Prime M i n i s t e r Mulroney proposed  de-indexing backlash  dismantling  programs,  withdrawing sector,  of  (1986)  the broad  options are overlooked.  a l s o s u g g e s t s t h a t , a l t h o u g h those on t h e r i g h t adopt  system"  major  prevails  ... t h e w e l f a r e  institution  46  of  advanced  state  i s an  capitalist  countries". that  D a t a , c o m p i l e d to s u p p o r t t h e i r a r g u m e n t , show  " a l t h o u g h the  expenditure  average yearly  declined  i n almost a l l Western  r e v i e w b e t w e e n 1975 social  security  respectable  An and  and  1981  (16  expenditures  rate"  g r o w t h of s o c i a l s e c u r i t y  (Therborn and  examination of the  countries  continued Roebroeck,  data from the  Reagan Administrations  countries  were s u r v e y e d ) , to  grow  198 6;  p.  grew  from  indicates that  26.336 m i l l i o n pounds i n the  1978/79 to 28.444 m i l l i o n pounds i n the B e t w e e n 1980 social and  and  1983,  the  programs,  which  survivors'  benefits,  by  However,  this  programs.  Therborn and  Administration  part,  taking  the  same  (ii) implementing supplement and,  slash  (in r e a l some  family.  democratic  people  measures;  means-tested  not deny that, i n  namely,  to  welfare  state  to  benefits  for  occur.  a p p e a r s to be o c c u r r i n g ,  a  there major  Despite the  47  'welfare  income  towards p r i v a t i z a t i o n ;  However, they suggest that, exists,  most  (i) de-indexing;  entitlements  ( i i i ) shifting  framework  receiving  terms).  W e s t e r n c o u n t r i e s a r e , f o r the  more s t r i n g e n t  programs;  disability  (iv) shifting r e s p o n s i b i l i t y for s o c i a l welfare  state to the the  percent  did  year  increased  elderly,  Roebroeck (1986) do  s p i t e of t h e s e i n c r e a s e s ,  fiscal  f i s c a l y e a r 1982/83.  provide  15  under  personal  Reagan A d m i n i s t r a t i o n  security  a  Thatcher  T h a t c h e r , p u b l i c e x p e n d i t u r e s on s o c i a l s e c u r i t y and benefits  at  327).  neo-conservative  a f t e r 1981,  under  the  are  so  from long  f a r too  dismantling  the  many  of  restructuring  state  1  as  w i l l endure.  the that  Indeed,  Therborn  and R o e b r o e c k  (1986) argue  that  certain  socio-economic v a r i a b l e s w i l l p r o p e l expansion of the welfare state i n c e r t a i n areas.  F o r e x a m p l e , as t h e p o p u l a t i o n ages,  there w i l l be increased demands f o r health care.  Even i f the  c r e a t i o n of the economic conditions necessary to a t t a i n employment  becomes less  likely,  there  will  full  be i n c r e a s e d  pressure to implement programs (other than those of an income assistance n a t u r e ) , i n order to d e a l w i t h the problem.  These  a u t h o r s f u r t h e r s u g g e s t t h a t , i n some c o u n t r i e s , t h e need t o stimulate a move away from increased  pressure  f o r additional  At t h e same t i m e , p o l i t i c a l the by  zero population growth social  w i l l create  welfare  s u p p o r t w i l l come from  programs. those i n  'aging' p o p u l a t i o n , t h e u n e m p l o y e d , and o t h e r s a f f e c t e d various socio-economic  variables.  this evidence and argumentation  I t i s on t h e b a s i s o f  that the authors contend  that  the c u r r e n t d e b a t e s on t h e ' c r i s i s ' o f t h e w e l f a r e s t a t e a r e an  " i d e o l o g i c a l f a d " w h i c h c a n n o t be t a k e n s e r i o u s l y .  The  Post-Welfare State  While the welfare state i n Canada through  the implementation  privatization  of c e r t a i n  may have been  of various strategies  social  services),  'dismantled' to the e x t e n t which  'downsized' (e.g.  the  i t has n o t been  was, perhaps, e n v i s i o n e d by  t h e n e o - c o n s e r v a t i v e s and a p p r e h e n s i v e s o c i a l w o r k e r s .  The  welfare  and  state  was  the product  48  of both  ideological  e c o n o m i c d e v e l o p m e n t s w h i c h o c c u r r e d on a grand c a n n o t be since,  immediately  while  rapidly,  economic  ideology  transformation. and  belief  An  Although cannot  is  susceptable  threads  of  old ideas  they  can or  completely  be  simultaneously  more,  appealing may  be  the  discarded  replaced  and  by  effective.  torn in places, i t  beneath  i f economic,  into  its material  c a n n o t be  u n r a v e l l e d from  citizens  s t a b i l i t y a r e to be  and  welfare state),  ' s o c i a l s a f e t y net'  of  relatively  thought  equally,  population  change  R a t h e r , t h e r e i s a slow e v o l u t i o n of  (e.g. the  the  discarded  rapid  the  as  may  It  to  unless  be  not  completely  established ideology,  consequences  something  or  circumstances  that carries  future.  abruptly  transformed  scale.  a  political  country's  and  social  maintained.  W h e t h e r the w e l f a r e s t a t e r e p r e s e n t s a minor t r i u m p h i n the s t r u g g l e f o r human r i g h t s f o r the w h e t h e r the  m a j o r i t y of i n d i v i d u a l s ,  w e l f a r e s t a t e s e r v e s p r i m a r i l y the needs of the  c a p i t a l i s t c l a s s , w i l l not be a r g u e d here. from  being  adequate,  both  i n the  The  level  system  of  methods u t i l i z e d to d e l i v e r such  However, through  developing  state,  policy-makers  least  implicitly),  the  seemed to be that  the  'boom-bust  1  had  c y c l e s of c a p i t a l i s m .  49  an  were unable  m a r k e t p l a c e , or who  programs.  c o m p o n e n t of  a c c e p t i n g the  state  p r o v i d e f o r those i n d i v i d u a l s who i n the  welfare  is far  services i t  p r o v i d e s and the  themselves  or  the  notion  (at  obligation  to  to p r o v i d e f o r  were v i c t i m s of the  When K e y n e s i a n  economic  because policy-makers  policies  were abandoned i n 1975,  c o n s i d e r e d them i n a d e q u a t e  t o combat  the h i g h l e v e l s of u n e m p l o y m e n t and i n f l a t i o n w h i c h stemmed from t h e g l o b a l r e c e s s i o n , t h e y policies.  The p o l i c y - m a k e r s  the s t a t e v i s - a - v i s s o c i a l advocates faire  (Calvert,  monetarist  anticipated a different role f o r  welfare  services.  Responding t o  o f t h e o l d c l a s s i c a l l i b e r a l i d e o l o g y and l a i s s e z -  market  productive  were r e p l a c e d by  system,  social  began  services could  1984).  s e r v i c e s absorbed  they  suggesting no l o n g e r  The p o l i c y - m a k e r s  that be  "argued  non-  afforded  that  these  t o o much of t h e n a t i o n ' s r e s o u r c e s - b o t h  human and m a t e r i a l - and p l a c e d an e x c e s s i v e t a x b u r d e n on the  ' p r o d u c t i v e ' p r i v a t e s e c t o r " ( C a l v e r t , 1984; p. 1 1 ) . A t  the  same  time,  monetarists  called  f o r the church,  the  c o m m u n i t y and t h e f a m i l y t o move t o p r o v i d e v a r i o u s s e r v i c e s which had been dismantled.  If,  as some individuals argue,  t o be " b a n k r u p t  the welfare state may be shown  i n t e r m s o f ( i t s ) l i m i t a t i o n s and d e g r a d a t i o n  of human d i g n i t y  and p o t e n t i a l "  brief  historical  review  prior  to the emergence  generally  equally  individuals  were  has p r o v i d e d  social,  1984; p. 2 5 ) , a  some  of the welfare  'bankrupt'  denied  (Wineman,  evidence  state,  since political  the  that,  s o c i e t y was majority  and c i v i l  of  rights.  C l e a r l y , b a s i c p r o b l e m s such as p o v e r t y , were n o t e r a d i c a t e d  50  with the emergence and the  expansion  of the  welfare component of  state.  H o w e v e r , from the p e r s p e c t i v e of d e v e l o p i n g of s o c i a l  welfare  important  question  monetarist  adequate levels  services in a post-industrial must be  economic  posed.  policies  s h i f t to n e o - c o n s e r v a t i s m  and  Has the  served  society,  an  the r e c e n t adoption  of  accompanying  o n l y to expose the  and i n a d e q u a c y of a w e l f a r e system t h a t was and  l o g i c a l extension  of an  economic  more a  model,  certain  basic  social  economic  and  frailty concrete  than  b u i l t on a consensus r e g a r d i n g the n e c e s s i t y f o r that  ideological  a  system  guaranteeing  political  rights  be  maintained?  I t w o u l d a p p e a r t h a t the a n s w e r i s yes. power of the welfare  middle-class may  p r o g r a m s or  r e m a i n i n t a c t , those as  the l o w - i n c o m e  benefits  eroded.  expedient, will  be  classes  be  which  are  major reason  p a y m e n t s to t h i s groups w i t h l e s s  or d i s a d v a n t a g e d , In  fact,  f u r t h e r by more  i n c o m e or p o l i t i c a l l y  that  group  see  the  insignificant  at  why  will,  social  perhaps,  their  i t appears social  expanding  powerful  voting  ' p o l i t i c a l ' power, s u c h may  whenever  i t is conceivable  increased  the  While the  the  existing  politically  welfare  b e n e f i t s to polls,  bill those  while  low  groups r e c e i v e l e s s ,  and  sink e v e n f u r t h e r below the p o v e r t y l i n e .  In  1983  and  a g a i n i n 1986,  the  51  B r i t i s h Columbia  government  i n t r o d u c e d r e s t r a i n t b u d g e t s w h i c h were p u r p o r t e d l y aimed a t combatting the on-going recession. such  restraint  measures  They proposed to implement  as: downsizing  government,  reductions, d e - r e g u l a t i o n , employment through concentrating  power i n V i c t o r i a ,  wage  mega-projects,  downgrading education  and  s o c i a l programs, a n d p r i v a t i z a t i o n o f b o t h s o c i a l w e l f a r e and other  types of services  those  involved  privatization'  ( A l l e n and R o s e n b l u t h ,  in social  of such  service  social  1986). F o r  delivery  i  services  as  the 're-  rehabilitation  programs f o r j u v e n i l e s , and a d u l t a n d y o u t h c a r e coupled  with a "reduction,  facilities,  weakening or e l i m i n a t i o n of a wide  r a n g e o f s e r v i c e s b e n e f i t t i n g mainly  those w i t h low i n c o m e s "  ( A l l e n and R o s e n b l u t h , 1986; p. 1 2 6 ) , was v i e w e d n o t o n l y as a d i r e c t a t t a c k on t h e s o c i a l w e l f a r e but  also  situation  suggested that  that  existed  such  before  component o f t h e s t a t e  policies  would  the advent  recreate the  of the  welfare  state.  In  addition, the government  voluntary would erased. failed  groups,  move  religious  to provide  According to provide  suggested  organizations  that  non-profit,  and  the  family  t h e v a r i o u s s e r v i c e s w h i c h had been  to the p o l i t i c a l pundits, the services,  i t was e v i d e n c e  s e r v i c e s had n o t been r e a l l y n e c e s s a r y . time,  the government  significantly  grants  to various non-profit community  52  i f these  groups  t h a t the  H o w e v e r , a t t h e same reduced  or  groups which  eliminated may  have  been  successfully mobilized  to provide  increased  levels  of  services.  We  turn  now  alternatives  to a  discussion  of  privatization  available to non-profit  groups  which  e x p e r i e n c e d b u d g e t r e d u c t i o n s i n t h e f a c e of r i s i n g for service.  53  and  the have  demands  NOTES 1:  When i t was f i r s t p u b l i s h e d i n 1962, Kuhn's book, The Structure of Scie n t i f ic R evolutions, created a r e v o l u t i o n w i t h i n the p h i l o s o p h y of s c i e n c e and, s u b s e q u e n t l y , i t s p a r k e d a g r e a t d e a l of d e b a t e . K u h n c h a l l e n g e d t h e l o g i c a l e m p i r i c i s t view of s c i e n c e a s an a c c u m u l a t i o n o f k n o w l e d g e or facts which u l t i m a t e l y r e v e a l e d t h e t r u t h . He a r g u e d t h a t e a c h s c i e n t i s t i s s o c i a l i z e d i n t o , and works w i t h i n , a p a r t i c u l a r paradigm which prescribes the conceptions of the n a t u r e of the t h e o r y t o be used to guide r e s e a r c h , the t y p e s of p r o b l e m s to be i n v e s t i g a t e d , a p p r o p r i a t e research methods and, perhaps, acceptable instrumentation. Kuhn suggested t h a t while the a c c u m u l a t i o n of k n o w l e d g e p l a y s a r o l e i n the a d v a n c e of s c i e n c e , the t r u l y major or l a n d m a r k changes come a b o u t as a r e s u l t of r e v o l u t i o n s . H i s model of s c i e n t i f i c e v o l u t i o n may be s i m p l y r e p r e s e n t e d as follows: PARADIGM I ->  CRISIS  ->  NORMAL SCIENCE ->  REVOLUTION  -> ->  ANOMALIES PARADIGM I I  D u r i n g t h e p e r i o d of 'normal' s c i e n c e , the s c i e n t i s t searches f o r f a c t s to match the t h e o r y which i s currently embraced w i t h i n the paradigm. However, anomalies may begin to appear, continue to crop up, and a c c u m u l a t e t o a p o i n t a t w h i c h t h e y c a n n o t be overlooked. The p e r i o d of c r i s i s b e g i n s when scientists, faced w i t h the need to e x p l a i n the a n o m a l i e s , b e g i n t o r e c o n s i d e r t h e paradigm itself. R e v o l u t i o n s o c c u r when the p e r i o d of n o r m a l s c i e n c e i s d i s r u p t e d by the p r o c e s s of d i s c a r d i n g one paradigm f o r another. Once the paradigm has gained ascendancy, ways are sought t o e x p a n d t h e i n t e l l e c t u a l ' t e r r i t o r y ' of the paradigm (Kuhn, 1962). A l t h o u g h Kuhn a p p l i e d his a n a l y s i s to the n a t u r a l s c i e n c e s , many p s y c h o l o g i s t s , s o c i o l o g i s t s and o t h e r t h e o r i s t s began e x a m i n i n g t h e i r d i s c i p l i n e s from t h e K u h n i a n p e r s p e c t i v e , l o o k i n g f o r b o t h p a r a d i g m s and r e v o l u t i o n s . They a s k e d q u e s t i o n s s u c h as: i s our d i s c i p l i n e a s c i e n c e ; how i s o u r k n o w l e d g e d e v e l o p e d and what i s i t w o r t h ; a r e we i n a p r e - p a r a d i g m a t i c o r paradigmatic state; and what are our paradigms?  54  Kuhn a r g u e s t h a t , as a r e s u l t o f t h e e x i s t e n c e of a d o m i n a n t p a r a d i g m , t h e s c i e n t i s t i s able t o a c c e p t b a s i c a s s u m p t i o n s of h i s f i e l d w i t h o u t q u e s t i o n . A l t h o u g h Kuhn t a l k e d o n l y about s c i e n t i f i c p a r a d i g m s , i t i s possible to apply the concept of paradigms to ideology i n a l i m i t e d way. For example, i f one accepts some p a r t i c u l a r p r e v a i l i n g i d e o l o g y as h i s o r h e r own, s u c h as t h e d e s i r a b i l i t y and n e c e s s i t y f o r the c o n t i n u e d g r o w t h of t h e w e l f a r e s t a t e , i t may be t h a t the person i s 'blind to the l i m i t a t i o n s and c o n t r a d i c t i o n s t h a t are i n h e r e n t i n such a system. 1  55  Chapter I I I PRIVATIZATION  At t h e f e d e r a l  level,  monetarism was a d o p t e d as t h e o f f i c i a l  e c o n o m i c p o l i c y i n 1975 ( W o l f e 1984) and, as e a r l y there  were s i g n s t h a t t h e p r o v i n c i a l  C o l u m b i a was f o l l o w i n g at  the federal  1983  level.  by t h e S o c i a l  g o v e r n m e n t of B r i t i s h  t h e l e a d a l r e a d y s e t by p o l i c y - m a k e r s H o w e v e r , the b u d g e t b r o u g h t down i n  C r e d i t government a r t i c u l a t e d  " r e s t r a i n t and r e c o v e r y " monetarist  as 1978,  a plan f o r  w h i c h was c l e a r l y based on  certain  principles.  One of t h e p r i m a r y r e s t r a i n t measures p r e s c r i b e d by t h e 1983 budget was ' p r i v a t i z a t i o n ' . by  which  (Allen  to effect  and  privatization  less  Rosenbluth,  T h i s was d e s c r i b e d as t h e means  g o v e r n m e n t and l o w e r 198 6 ).  As  expenditures  a restraint  was c o n s i d e r e d t o be a h i g h l y  measure,  effective  method  of r e a l i z i n g t h e o v e r a l l b r o a d o b j e c t i v e s of t h e g o v e r n m e n t , which  were t o : ( i ) r e d u c e t h e c o s t of g o v e r m e n t  (ii) reduce the size by  25 p e r c e n t ;  efficiency  by the  sector employee  and ( i i i ) i n c r e a s e  often,  the fact  (Harrison and Gosse,  complement  the e f f e c t i v e n e s s and  of programs by e x p o s i n g them  marketplace  Very  of the public  services;  to the competitive  1986).  discussions regarding  privatization  a r e muddied  t h a t t h e c o n c e p t of p r i v a t i z a t i o n  i s linked to  current restraint  measures b e i n g u n d e r t a k e n a t b o t h t h e  56  provincial order  and f e d e r a l  to evaluate  important 1984).  the  t h a t these  Various  discussed  levels  of government.  merits  of  However, i n  privatization,  t w o i s s u e s n o t be c o n f u s e d  authors  (Kolderie,  1986, L e a t ,  the ambiguities t h a t o f t e n surround  i ti s  (Perryman, 1986) have  discussions of  p r i v a t i z a t i o n and, i n t h i s r e g a r d , K o l d e r i e (198 6) p r o v i d e s a simple,  but useful,  series  of d e f i n i t i o n s  that  c l a r i f y the  concept.  Government can i n s t i t u t e action, to  provide  taken  for its citizens.  t h e end r e s u l t of w h i c h i s  On t h e o t h e r hand, t h e a c t i o n  may s e r v e t o p r o d u c e t h e s e r v i c e s t h e g o v e r n m e n t has  d e c i d e d t o p r o v i d e . When a s e r v i c e i s p u b l i c l y p r o v i d e d , t h e decision have  w h e t h e r o r n o t t o have i t , as w e l l as who  i t , is a  political  decision.  In  addition,  should the  r e c i p i e n t s of t h e s e r v i c e do n o t u s u a l l y have t o pay f o r t h e service  directly;  producer  of the service.  individuals decision receive  however,  the government  Services are p r i v a t e l y  o r n o n - g o ve r n m e n t a l  to offer  the service.  a privately  provided  may  be p r o v i d e d  Services  may  be  provided  when  o r g a n i z a t i o n s make t h e  I f an i n d i v i d u a l  service,  wishes t o  he o r she w i l l  p e r s o n a l l y choose, and pay, t h e p r o d u c e r  T h e r e a r e , of c o u r s e ,  chooses the  both  ( K o l d e r i e , 1986).  many v a r i a t i o n s i n t h e way a s e r v i c e  t o , used  by, and p a i d  provided  57  t o some  f o r by  consumers.  or a l l individuals,  f i n a n c i n g c o s t s may or  the  service  private  be  may  wholly  be  produced  organizations.  regulations  which  are  o r p a r t l y borne by  The  by  government  undertakng  the  designed  to  if  may  guarantee,  or  also  provide example,  safety standards.  Although  may  not  assume  day-to  day  tasks  the  responsibility for  necessary  to  maintain  provision  simply  withdraw  regulator, 1986;  function  standard  p. 288).  strong  policy  citizens. occur  The  charging  free,  while  clinics  setter,  or  i t s role  decision  as  maker"  would buyer,  (Kolderie, any  role  provide  its  function  can  government  may  regarding  ways.  the  For  what  fees  of  the  a  to  the  service  private  produce  will  provision  the  and  sector.  f o r s e r v i c e s i t had  continuing  staffed with  the  it  example,  provision  f o r i t onto  begin  reduce)  p r i v a t i z a t i o n of  from  responsibility  (or  "government  and  In o t h e r words, the g o v e r n m e n t a b d i c a t e s  in several  withdraw  is privatized,  from  the  play a ' p o l i c i n g ' r o l e .  e s s e n c e of g o v e r n m e n t l i e s i n the p r o v i s i o n f u n c t i o n the  by  for  s t a n d a r d s , g o v e r n m e n t p e r s o n n e l may  The  government  government  minimum e n v i r o n m e n t a l h e a l t h and the  the  government,  transfer It  may  previously service  g o v e r n m e n t p e r s o n n e l and  the also  provided  (e.g. charging  health user  fees).  Surprisingly, of  services  the one  support has  hand, the  f o r the  come from  p r i v a t i z a t i o n of  disparate  political  the  provision  circles.  On  monetarists claim that present governments  58  have become so l a r g e t h a t t h e y are u n w i e l d y , and must  be  'downsized'.  The  provision  of  therefore,  certain  e s p e c i a l l y those of a s o c i a l s e r v i c e n a t u r e ,  services,  place  too  a demand on the s t a t e w h i c h , because of i n c r e a s e d negatively  affects  Analysts  s u c h as  welfare  programs  the  productive  Milton weaken  the  capital,  Friedman,  and  limit  'left  evolved  communities  suggest  as  a  are  reduce  reduce the  worked  that  1984). to  the  accumulation  perceived  to  be  of  They  extension  robbing  r i g h t "to care  as  'welfare the  politically has  destruction  enlarge  that  enhance the of law  individuals,  of  many  bureaucratic health  and  f o r themselves and  i n ways that private communites always have"  1986;  p.  and  regulation  families  other  and  f o r each (Kolderie,  289).  production  goods,  and  state'  maintain  e n h a n c e and  of i n d i v i d u a l s . The  communities of the  The  the  (Friedman  be d e s c r i b e d  consequence  (Wineman,  have  may  s t r u c t u r e s , r a t h e r t h e n promote and welfare  structure,  i n d i v i d u a l freedom  those who  leaning'  partially  programs  innovate,  paternalistic  1980).  At the same t i m e , more  family  taxation,  marketplace.  Friedman suggest that  i n c e n t i v e to work, save and of  private  great  of a s e r v i c e i s merely t h a t ; p r o d u c i n g  services,  prescribed  by  equipment, government  59  facilities policy.  or  those  labour  that  are  Production  may  be  p r i v a t i z e d i n a v a r i e t y of ways. F o r e x a m p l e , the p r o v i n c i a l government r e c e n t l y announced that i t was any  or a l l of i t s C r o w n C o r p o r a t i o n s ;  'for off  sale'. of  In  this  context,  companies that  were p r e v i o u s l y  d e c i d e d to p r o v i d e .  sold  to a s i n g l e b u y e r ,  company may In  The  the  be p l a c e d  event that  may  a  on the  choose  consortium,  government  may  Crown  Corporations  to  protect  the  public  private  production  effectiveness,  efficiency,  'creaming', and  competition, the is  other said  to  profitable receive  services the  services  argue  more e f f i c i e n t l y  hand, p r i v a t i z a t i o n result in  the  the  produce  from  of  that  produce  the  'creaming',  attention  of  60  the  cost  competition, Proponents f o r  this,  managed  coupled  with  cost e f f e c t i v e .  wherein, or  the  around  around  production  c e r t a i n goods  of  contracting-  privately  managed and  of  the  future  debate  hinges  value  s e r v e s to keep o r g a n i z a t i o n s  to  by  the p o t e n t i a l f o r c o r r u p t i o n .  contracting-out companies are  Generally, of  the  mechanisms.  out  the  which  choose to f o r e g o p r o d u c i n g any  producers.  be  i n p r i v a t e hands,  s e r v i c e s i t has d e c i d e d to p r o v i d e  privatizing  government  or s h a r e s i n  goods and with  and  m a r k e t f o r s a l e to the p u b l i c .  e x p l o i t a t i o n by i n t r o d u c i n g r e g u l a t o r y  The  selling  p u b l i c l y owned,  services which the  e s s e n t i a l goods or s e r v i c e s are p l a c e d government  i s the  p u b l i c l y owned company may  or  those  privatizing  t h a t i s , t h e y were a l l  privatization  which produced those goods and had  open to  only  services  private  of  On  services  when  i t is  will  they  market.  Any  'unprofitable' enterprises  The  contracting-out  services,  social provides  century,  had  t h e Law  long  the  sole  refused form  source  to enter  of p o v e r t y  t h e workhouse  of assistance.  and  were to be c o n t r a c t e d - o u t  The any  contractor one  of  agencies  would be several  or  history  p o o r - h o u s e s and the  overseers  eighteenth and  church  These i n s t i t u t i o n s were t o relief. was,  Any  individual  who  of c o u r s e , d e n i e d  any  What was unique a b o u t t h i s  was t h a t the o p e r a t i o n  welfare  English  before  authorized  wardens t o e s t a b l i s h workhouses. be  again,  workhouses,  prevalent  of 1722  or f o r - p r o f i t  Once  Although  been  of s o c i a l  d e v e l o p m e n t i n the h i s t o r y of  delivery.  an example.  almshouses  neglected.  non-profit  i s not a new  service  be  f o r the p r o v i s i o n  e i t h e r from  organizations,  will  development  m a i n t e n a n c e of t h e s e  workhouses  by t e n d e r t o p r i v a t e i n d i v i d u a l s .  paid  ways  for providing that  are  the s e r v i c e s i n  f a m i l i a r to  those  i n d i v i d u a l s i n v o l v e d i n s o c i a l s e r v i c e d e l i v e r y t o d a y . He  or  she may  have been p a i d on a p e r p e r s o n b a s i s , been g i v e n  f l a t sum  w i t h w h i c h to o p e r a t e the house, o r g i v e n  money to m a i n t a i n  a l l t h e p o o r i n the p a r i s h (de  a sum  a of  Schweinitz,  1943; p. 5 8 ) . Of c o u r s e , w h a t e v e r t h e a r r a n g e m e n t , i t was t o the in  contractor's t h e absence  'economize' on  advantage  to keep  of r e g u l a t i o n , food  or other  61  the  costs down. contractor  essentials.  Consequently, was  free  As a r e s u l t ,  to the  conditions  within  deleterious.  t h e workhouse  Apparently,  were  i t was even  often  unsavory  standard  and  practice for  the o p e r a t o r of t h e workhouse t o pay some poor f o l k a s m a l l amount of money n o t to e n t e r t h e workhouse (de S c h w e i n i t z , 1943).  Contracting-out been  i s not only  a prevalent  Columbia.  i n history,  practice i n provinces  In the past,  organizations  rooted  have  other  provided  prepared  provinces, to deliver  such  as  British  many l a r g e , w e l l known, n o n - p r o f i t the government  s o c i a l s e r v i c e s . H o w e v e r , what i s new and  i t has l o n g  i s the advent social  welfare  with  various  to British  Columbia,  of f o r - p r o f i t  companies  services.  In addition,  a l t h o u g h c o n t r a c t i n g - o u t i s n o t a new d e v e l o p m e n t , r e c e n t l y the g o v e r n m e n t has a p p e a r e d t o be s h i f t i n g t h e r e s p o n s i b i l i t y f o r b o t h t h e p r o v i s i o n and p r o d u c t i o n of s o c i a l s e r v i c e s from the p u b l i c t o t h e p r i v a t e s e c t o r by s e v e r e l y c u t t i n g back o r e l i m i n a t i n g g r a n t s , o r c a n c e l l i n g c o n t r a c t s t o a wide  variety  of s o c i a l w e l f a r e a g e n c i e s (B.C.G.E.U., 1985).  Models o f P r i v a t i z a t i o n Because it  t h e term  ' p r i v a t i z a t i o n ' i s o f t e n used  i s u s e f u l t o d i s c u s s p o s s i b l e models o f p r i v a t i z a t i o n , o r  the way t h e c o n c e p t may be employed the  ambiguously,  i n practice.  c o n c e p t s o f p r o v i s i o n and p r o d u c t i o n ,  c o n s t r u c t t h e f o l l o w i n g model.  62  Utilizing  i t i s possible to  Production 2  Government produces the complete range of Government Government services necessary to maintain acceptable produces produces no social some social social and economic standards of l i v i n g for a l l services services  Provision 1  Government provides no social services  A*  Government provides some social services  B  Government provides the complete range of services necessary to maintain acceptable social and economic standards of l i v i n g for a l l  E  C  F  D  G  * Abandonment rather than privatization. •'•Provision:  The government assumes responsibility for the maintenance of the health and welfare of citizens (mechanism - social policies).  "Production:  The goods and s e r v i c e s are produced by government; i.e., government employees working i n government offices produce goods or services.  63  As  t h e model d e m o n s t r a t e s , t h e r e  which  privatization  a r e a v a r i e t y o f ways i n  c a n be i m p l e m e n t e d .  F o r example,  i n d i c a t e d i n C e l l A, the government may formulate provide  no s o c i a l  a p o l i c y to  s e r v i c e s a n d , a t t h e same t i m e ,  none.  C h u r c h e s and c h a r i t i e s s t e p i n t o p r o v i d e  Action  of this nature  as  produce  poor r e l i e f .  may be more a c c u r a t e l y  described  as  abandonment, r a t h e r t h a n p r i v a t i z a t i o n .  As i n d i c a t e d i n C e l l  D,  social  the policy  may  be t o p r o v i d e  some  produce a complete range of services.  services and  Government o f f i c e s and  e m p l o y e e s p r o d u c i n g t h e s e r v i c e s might be s u b s i d i z e d by user fees the  or through increased  taxation.  government to provide  I t i s also possible f o r  f o r a f u l l r a n g e of s e r v i c e s and  e i t h e r p r o d u c e some o r a l l o f t h e s e r v i c e s ( C e l l s F and G). On t h e o t h e r produced  hand, a l l s e r v i c e s  or  organizations  supplied  the advent  of the welfare  s o c i e t i e s have p l a y e d delivery  of s o c i a l  Canada  Assistance  sharing  or  for-profit  i n t h e P r o v i s i o n and P r o d u c t i o n  a g e n c i e s and t h e v a r i o u s  government,  non-profit  and  (Cell E).  Agencies Involved Services Since  by  may be c o n t r a c t e d - o u t  both  types of n o n - p r o f i t  government  and  voluntary  an i n t e g r a l p a r t i n t h e p r o v i s i o n and  services  provided  state,  of S o c i a l  Plan,  (Weddell,  1986).  implemented  f o r , among  other  by  I n 1966, t h e the  things,  federal "federal  of c o s t s o f a c t i v i t i e s and programs w h i c h f o s t e r t h e  participation  of consumers of welfare  64  services"  (Guest, 1985:  p.  159).  provincial delivery  This  ancilliary  Although  provided  governments  subsequently  rights  plan  t o employ  services,  be c o s t - s h a r e d  Guest  groups,  t h e monetary i m p e t u s f o r t h e non-profit  the costs  of which  by t h e f e d e r a l out that  which  up i n t h e 1960's,  sprang  that  many n o n - p r o f i t  most of t h e w e l f a r e  s o c i e t i e s took  funding  opportunity.  Funding  mechanisms have i n c l u d e d  purchase-of-service program  grants  non-profit donations, staff, as  agreements,  (Langford,  societies  have  the entrepreneurial  Way,  without the assistance  the  i t i s safe t o  advantage  funding  On t h e o t h e r on  corporate  efforts  to provide  hand, some and private  of volunteers  valuable  of government  social  qualities involved.  field,  i t was n e c e s s a r y  and o r g a n i z a t i o n a l Beck  sets  s e r v i c e s i n the United  structures  out a t r i - p a r t i t e  a g e n c i e s t h a t have p l a y e d  agencies  funds.  p e r f o r m a n c e of t h e p r i v a t e n o n - p r o f i t s e c t o r service  and  services  (1970) s u g g e s t e d t h a t i n o r d e r t o d i s c u s s and  social  of t h i s  arrangements o r  o r f i n a n c i a l s u p p o r t from s u c h f u n d - r a i s i n g  the United  Beck  relied  developed  fee-for-service contracts,  core  1983).  would  government.  (1985) p o i n t s  without the b e n e f i t of government assistance, say  agencies to  evaluate  within the  to delineate the of the agencies  typology  of private  k e y r o l e s i n t h e d e l i v e r y of p u b l i c  States  65  but w h i c h i s a l s o r e l e v a n t t o  an a n a l y s i s o f t h e p r i v a t e n o n - p r o f i t s e c t o r i n Canada. first  type,  agency.  Beck  contends,  i s the quasi-non-govern mental  Although incorporated  society,  The  t h i s type of agency  as a n o n - p r o f i t  independent  i s " e n t i r e l y or almost  entirely  d e p e n d e n t on g o v e r n m e n t s u p p o r t f o r ( i t s ) e x i s t e n c e "  (Beck,  1970:  by i t s  p. 1 4 9 ) .  The n o n - p r o f i t  society  i s governed  C h a r t e r t h r o u g h a B o a r d o f D i r e c t o r s ; h o w e v e r , the agency's d e p e n d e n c e on g o v e r n m e n t funds i n f l u e n c e t h e a c t i o n s o f t h e governing of  members, t h e r o l e s o f t h e s t a f f ,  services.  While  and t h e d e l i v e r y  t h e s e k i n d s of a g e n c i e s may  have  been  e s t a b l i s h e d c o m p l e t e l y i n d e p e n d e n t of government, t h e y have become p r o g r e s s i v e l y Alternatively,  more d e p e n d e n t on g o v e r n m e n t f u n d i n g .  many may  have been e s t a b l i s h e d s o l e l y a t t h e  behest of government and  The  second  agency their  own  volition,  i s the  "truly  not  for profit,  and  and a u t h o r i t y o f t h e g o v e r n m e n t " Beck  significantly agency  of o r g a n i z a t i o n  voluntary  c h a r a c t e r i z e d by a c t i o n s t a k e n by p r i v a t e c i t i z e n s on  initiative 149).  type  with government funds.  suggests  that  d i f f e r e n t from  this  involved  of  1970: p.  agency  is  a c t outside  t h e a s s o c i a t i o n and the  the p o l i t i c a l  o t h e r words, t h i s t y p e of o r g a n i z a t i o n of i n d i v i d u a l s " w h i l e  (Beck,  the  the quasi-non-go vern m e n t a l  by v i r t u e o f t h e f a c t t h a t  individuals  type  outside  sphere.  In  may s e r v e t h e "needs  q u a s i - n o n - g o v e r n m e n t a l a g e n c i e s "must  s e r v e p u b l i c p u r p o s e s " ( B e c k , 1970: p. 150). The L i o n s C l u b exemplifies  this p a r t i c u l a r type  66  of o r g a n i z a t i o n .  Utilizing  a v a r i e t y of methods, t h e L i o n s C l u b membership r a i s e money which  i s used  volunteers,  to  fund  kidney  dialysis  individuals  or groups,  term  According  t o Beck,  voluntary  or private  Board of Trustees,  ranging  from  care  Trusts provide  Finally,  type  there  of a g e n c y  service  Although  A  self-perpetuating  w i t h no r e s p o n s i b i l i t y t o a membership of professional staff.  a r e l e g i t i m i z e d i n s o c i e t y by t h e s o c i a l r a t h e r t h a n by t h e i r s t a t u s as t h e  Currently,  b o d i e s of c i t i z e n r y "  (Beck,  F o u n d a t i o n s and P h i l a n t h r o p i c  e x a m p l e s o f t h i s t y p e o f agency.  i s the r e c e n t  arena  private  emergence  railways,  (Social  companies,  government contracts, building  and  i s the non-  o f the l a r g e - s c a l e  p r i v a t e f o r - p r o f i t companies and l a r g e c o r p o r a t i o n s social  other  s p e c i a l events f o r  agency.  organs of d e f i n e d  150).  to  institutions.  service  o f t h e i r program  p.  purchasing  transportation  governs the a c t i o n s of a paid  representative 1970:  own  The group  of d i r e c t s e r v i c e s  the third  "Such o r g a n i z a t i o n s utility  their  f o r a local hospital.  a variety  of l o n g  kind,  by  f o r example,  s e r v i c e s f o r t h e b l i n d to h o s t i n g  residents  any  facilities;  machine  members p r o v i d e  reading  services  i s d o n a t e d t o o t h e r c o m m u n i t y groups, o r i s used  to support public health a  direct  Planning through  have always played  h i g h w a y s and o t h e r  67  into the  Council, various  1984).  types  of  a major role i n both public  u t i l i t i e s and,  p r o v i d i n g d i r e c t s e r v i c e i n a r e a s s u c h as r e f u s e r e m o v a l , the e m e r g e n c e of l a r g e p r i v a t e c o m p a n i e s i n the social  services  debate.  fields  "Advocates  i s new of  the  a g r e e t h a t the c a r i n g and  p.  10).  In  his  than  by  of  moral, e m p i r i c a l and  the  arguments promulgated  Morally, i t is considered disadvantaged  focussed  on  1983:  p.  10).  likely  assistance particular  to  other  aspect  of  advocates of  welfare  non-profit  (Gilbert,  1983:  the  welfare  state.  need  for  vital  the  bonds  family  members.  too  the  life"  t h i s s t a t e of a f f a i r s  f a m i l i e s were  that  disabled,  " i n s p i r e d by l o v e and  a  services.  s e r v i c e s , e s p e c i a l l y those  that  family the  to  G i l b e r t (1983) r e i t e r a t e s  w e a l t h y s e c t o r of s o c i e t y . many  inclined  private  organizations"  e l d e r l y , and  Historically,  that  are  extensive  wrong f o r someone to p r o f i t from  f a m i l y and  been t r u e f o r the highly  by  c h i l d r e n , the  commitment  state  and  t h e o r e t i c a l grounds f o r the b a s i s of  social welfare  personal  generated  p u b l i c and  individual's  p e r f o r m e d by the of  by  privatization,  the  Traditionally,  welfare  profit-making  critique  has  a i d i n g o b j e c t i v e s of s o c i a l  p r o g r a m s are b e t t e r s e r v e d agencies  and  health care  were sense  (Gilbert, may  have  However, i t i s poor  to  provide  Consequently,  moral argument appears  this  somewhat  questionable.  The  economic  argument  levied  against  companies or corporations  is that  "competitive  68  private  for-profit  markets do  not  work  well"  they  will  market" to  with be  social  welfare  t y p e s of s e r v i c e s and t h a t  " i n e f f e c t i v e and i n e f f i c i e n t  (Gilbert,  1983 : p 11).  Empirically, i t is difficult  show  that  non-profit  agencies  services  than  for-profit  private  s u g g e s t s t h a t , because  i n the s o c i a l  provide  better  quality  organizations.  "social welfare  Gilbert  programs o f t e n  serve  o b j e c t i v e s t h a t a r e i m p a l p a b l e and m u l t i p l e " ( G i l b e r t , 1983: p. 1 1 ) , g a t h e r i n g the  e m p i r i c a l d a t a t o s u b s t a n t i a t e c l a i m s as t o  s u p e r i o r i t y of n o n - p r o f i t  agencies i s d i f f i c u l t .  p o i n t s o u t t h e conundrum i n a s s e s s i n g counselling, and  questions  be  measured  planned  parenthood  t h e s u c c e s s of m a r i t a l  or other  similiar  whether the q u a l i t y of nursing by  He  the "attentiveness  programs,  home care  of s t a f f ,  should  gracious  a m b i e n c e , o r t h e n i t t y - g r i t t y of how many t i m e s a week t h e s h e e t s a r e c h a n g e d " ( G i l b e r t , 1983: p. 11).  Gilbert  suggests that  e m p i r i c a l data,  with  which  t o make  i n f o r m e d d e c i s i o n s as t o t h e e f f e c t i v e n e s s o r i n e f f e c t i v e n e s s of  both  the f o r - p r o f i t  private  agency,  are lacking.  What  comparative  analysis of s i m i l i a r  t y p e s of a g e n c i e s . information,  agency  and t h e n o n - p r o f i t  i s required services  is a  provided  As a r e s u l t o f t h i s l a c k  on  "speculative  1983:  p. 1 4 ) .  theoretical considerations"  69  by  both  of s u b s t a n t i v e  arguments i n defense of the n o n - p r o f i t  hinge  complete  agencies (Gilbert,  One o f t h e major a r g u m e n t s mounted i n d e f e n s e o f t h e nonprofit  agency  structure  i s that,  and  organization  methods  because of service  of t h e i r  organizational  d e l i v e r y , the  c a n be more r e s p o n s i v e  non-profit  t o and, i n d e e d ,  reflect  the s o c i a l s e r v i c e needs o f t h e p a r t i c u l a r c o m m u n i t y i n w h i c h it  operates.  comprised  Although  the Board  of business  of  Directors  and professional  may  people  selected  b e c a u s e of t h e i r p o t e n t i a l f o r a t t r a c t i n g o r o b t a i n i n g and  while  congruent  " d e f i n i t i o n s of t h e commonweal" may n o t be  with  those  mechanisms  (Guest,  of t h e i n d i v i d u a l s who  the governing  of  responsive  funds,  their  community, features  be  the  structure  non-profit  f o r ensuring  that  t o community needs. 1985) p o i n t  out that  and  agency  comprise the organizational  provide  the Board  efficient  of D i r e c t o r s i s  G i l b e r t , and o t h e r as a  analysts  r e s u l t o f the  citizen  p a r t i c i p a t i o n movements w h i c h became p o p u l a r i n t h e 1960's, i t i s q u i t e common f o r r e p r e s e n t a t i v e s of t h e c l i e n t group t o s i t on g o v e r n i n g boards.  "This d e v e l o p m e n t has s t r e n g t h e n e d  a g e n c y a c c o u n t a b i l i t y t o b o t h t h e c o m m u n i t y a t l a r g e and t h e agency's c l i e n t s  within  the community"  (Gilbert,  1983: p.  15).  In c o n t r a s t , i t i s a r g u e d t h a t t h e g o a l o f t h e g o v e r n i n g body of t h e f o r - p r o f i t o r g a n i z a t i o n i s t o maximize p r o f i t s f o r i t s investors.  The d e g r e e t o w h i c h s u c h an o r g a n i z a t i o n  sympathetic to community needs i s thought to be by  the bottom  line  on  the profit  70  and  loss  w i l l be  circumscribed statement.  However,  a c c o u n t a b i l i t y may  be increased  by the d i r e c t market  t r a n s a c t i o n t h a t t a k e s p l a c e b e t w e e n the b u y e r and s e l l e r of services, the  provided  that  the consumer purchases the service of  f o r - p r o f i t agency.  I f the p u r c h a s e r of a s e r v i c e i s n o t  s a t i s f i e d , he o r she may  not r e t u r n .  B o t h f o r - p r o f i t and n o n - p r o f i t a g e n c i e s may accountable  be r e n d e r e d l e s s  by v i r t u e of the t h i r d - p a r t y p a y m e n t s t r u c t u r e .  The consumer does not pay f o r the services and the purchaser does n o t consume the s e r v i c e . a g e n c i e s become service  As a r e s u l t , b o t h t y p e s of  more a c c o u n t a b l e  t o t h e p u r c h a s e r of t h e  than to the consumer.  A n o t h e r a r g u m e n t f o r t h e d e s i r a b i l i t y of n o n - p r o f i t  agencies,  as  the  opposed  profit  to f o r - p r o f i t  society's  government prohibits  organizations,  Constitution  regulations  or  Charter  pertaining  profiteering.  is that  (as w e l l  to non-profit  Although  surplus  non-  as the  agencies),  monies  can  be  a c c r u e d by n o n - p r o f i t a g e n c i e s , p r o f i t s c a n n o t be d i s t r i b u t e d to  the  individual  prohibition  against  members  the  organization.  f o r preventing  (i)  are t h i r d - p a r t y  abuses i n s p e c i f i c i n s t a n c e s payment  counselling,  physically  disabled  child make  care,  and  where:  of s e r v i c e s s u c h as  r e h a b i l i t a t i o n of t h e  i t difficult  71  the  a r r a n g e m e n t s ; ( i i ) "the  c o m p l e x i t y and n o n - s t a n d a r i z e d c h a r a c t e r marital  The  d i s t r i b u t i o n of p r o f i t s i s c o n s i d e r e d  mechanism there  of  f o r consumers  to  compare  and  judge  involve coercion, patients);  Finally, superiority  exercise  choice  non-profit is  that  maximizing  a lack  1983:  the  as i n d e e d t h e y  savings  directly  to  and  accruing  of  p.  "charitable on  staff  and  is likely  there  In the  is a common e t h i c a l  by  a  p. 17). must be,  as  concerned  p r o f i t s as are from  members  profit-  distributing  profits  involved  may  through  be large  I t i s naive in  "charitable ethos"  or  that  ground.  p o i n t i s not  Standardized or  blood,  should  be  but,  c i r c u m s t a n c e s under w h i c h one  would p r o v e to be  consideration  to  non-profit  to d e c i d e w h i c h type of a g e n c y i s u n i v e r s a l l y s u p e r i o r  of a g e n c y  to  However, non-  f i n a l a n a l y s i s , G i l b e r t s u g g e s t s t h a t the  r a t h e r , to a s c e r t a i n the  to  q u a l i t y of r e s p o n s e  that  impelled  the  ethos  suggest  are  for  profit-making  e x t e n d e d b e n e f i t s , or h o n o r a r i u m s .  organizations  the  their  salaries,  a l l individuals  services,  argument  i n d i v i d u a l members, to  services  16).  Although constrained  indirectly  (iii)  c h i l d r e n or p s y c h i a t r i c  agencies over  their  making o r g a n i z a t i o n s .  distributed  of  needs" ( G i l b e r t , 1983:  profit agencies are,  profits  of  value";  theoretical  a positive influence  social welfare  with  care  (Gilbert,  remaining  of  counterparts  the  (iv) because  no  the  q u a l i t y and  (e.g.,  and,  consumer has  their  given  superior to the  over another. n a t u r e of the  type First,  service.  s e r v i c e s , s u c h as i n n o c u l a t i o n s , x - r a y s e r v i c e s , v i s u a l and  auditory  72  tests,  are  amenable  to  evaluation  i n terms  of cost,  Therefore,  the f o r - p r o f i t  e f f i c i e n c y and d e l i v e r y .  agency  may  provide  the  optimal  v e h i c l e f o r t h e p r o v i s i o n o f such t y p e s of s e r v i c e s .  A second  consideration  c l i e n t seeking the  service.  mentally  vulnerable  situations  which  circumstances, public  the elderly  i n d i v i d u a l s who these  groups have  of competence  Children, the mentally  i l l , and  addition,  of  i s the l e v e l  c a n be e x p l o i t e d  often  find  a coercive  i t i s imperative  abuses.  In fact, recent  the  nursing  for  the argument against  home i n d u s t r y  handicapped, are  component.  In  in  care  Under  such  be a high  to counter  highly  easily.  themselves  that there  a c c o u n t a b i l i t y i n order  for  infirm  of the  degree  the p o t e n t i a l  e x p o s e s o f abuses o c c u r r i n g i n  have p r o v i d e d  an e m p i r i c a l  the desirability  basis  and e f f i c a c y of  p r i v a t e f o r - p r o f i t companies i n the health care f i e l d ( S o c i a l Planning  As  C o u n c i l , 1984).  we have seen,  nor  p r i v a t i z a t i o n i s not a recent  has d i s c u s s i o n a b o u t i t s r e l a t i v e  been  absent.  Weddell  merits  (1986) p o i n t s  phenomenon,  or shortcomings  out that  "the c l a r i o n  c a l l f o r p r i v a t i z i n g p u b l i c s e c t o r s e r v i c e s i s n o t new"; o v e r a  decade  appropriate tasks  a g o , i t was  "suggested  that  the purpose and  r o l e o f g o v e r n m e n t i s t o make d e c i s i o n s , n o t do  required"  (Weddell,  1986: p. 1 5 ) .  e a r l y 1980's, t h e d i s c u s s i o n s r e g a r d i n g  73  H o w e v e r , i n the  the various  forms o f  privatization arguing  became  raging  debate  r e s t r a i n t measures c o n s i s t e n t  global)  economic  strategy  l e g i t i m i z e d by a n e o - c o n s e r v a t i v e  Privatization in British In 1972, t h e New after  promising  British the  when  governments,  t h a t t h e y f a c e d s e v e r e b u d g e t a r y problems, e m b a r k e d  upon v a r i o u s more  a  and  was s u c c e s s f u l l y e l e c t e d  to implement extensive (Morley  N.D.P. p l a n n e d e x t e n s i v e  also  within  they  had n o t f o r m u l a t e d  reforms  throughout the  e t a l , 1983 ).  Although  p o l i c y changes g e n e r a l l y ,  m i n i s t r i e s , some  government  monetarism)  ideology.  Democratic Party  certain  a new (and  Columbia  Columbia government  revamping  (i.e.,  with  analysts  suggest  an o v e r a l l c o m p r e h e n s i v e  administration  (Morley  and that  plan f o r  e t a l . 1983;  Clague e t a l , 1984 ).  The  N.D.P. mandate f o r change  s o c i a l service system. b o t h those i n v o l v e d  extended  t o the  province's  There was a g e n e r a l consensus among  i n the f i e l d  o f s o c i a l s e r v i c e s and t h e  c o n s u m e r s o f s u c h s e r v i c e s , t h a t t h e system  was i n a d e q u a t e ,  i n c o n s i s t e n t and f r a g m e n t e d . A l t h o u g h t h e P a r t y had p o l i c i e s on  specific  issues  formal  policy  within  the social  30). plan,  with  s u c h as day c a r e , respect services  again,  there  to reorganization  "no  of services"  (Clague  e t a l , 1984; p.  I n the absence of a w e l l formulated,  detailed overall  t h e more g e n e r a l  integration,  and l o c a l  sector  was  goals  of a t t a i n i n g d e c e n t r a l i z a t i o n ,  accountability  74  became  the focus  ( C l a g u e e t a l , 1984 ).  As t h e N.D.P. program plans  t o , among  preventative device  other things,  grants"  "encourage n o n - s t a t u t o r y  (Clague e t a l , 1984; p. 3 7 ) .  resources societies,  transformed i n t o  which  Community Resources discussion  would  Boards,  the  grants.  A full  and  policies  of t h e Community R e s o u r c e s  elsewhere  there evolved  s e r v i c e s i n n o n - m e t r o p o l i t o n a r e a s t h r o u g h the  o f community  Community  f o r r e f o r m took shape,  ultimately would  of the evolution,  be  administer experience  Boards i s provided  (see Clague et a l , 1984) and this demonstrates  that  community grants were an extremely important mechanism i n the overall  plan  of promoting  local participation. the  resources which  They  decentralization  and e n c o u r a g i n g  were t o p r o v i d e c o m m u n i t i e s  with  would enable them to develop new services  d e s i g n e d t o meet l o c a l needs.  In  order to f a c i l i t a t e  t h e use o f c o m m u n i t y  a d m i n i s t r a t i o n passed from  the Provincial  o f Human R e s o u r c e s .  grants  f o r innovative,  P r i o r t o 1973,  useful,  experimental  non-statutory social  non-existent  (Government of B r i t i s h Columbia,  1973  Report of the Department  Annual  clearly  articulated  through increasing  services  75  flowing  or possibly  were  practically 1974 ).  of Human  the goal of i n v o l v i n g the money  their  Secretary's office  to t h e t h e n D e p a r t m e n t to communities  grants,  local  directly  The  Resources communities  to communities.  The  g r a n t s were  namely,  to a l l categories  f a m i l i e s and c h i l d r e n ,  s p e c i a l needs, and  extended  diverse  programs  and s e n i o r s . network  f o r both  agencies, Indian poverty  They p r o v i d e d  of services  handicapped  family  and c r i s i s  later,  Resource Human  passed  Boards  f o r everyone", funds f o r a wide  as  volunteer  support  multi-service bureaus,  youth  lines.  replaced  legislation  the N.D.P. and, one  to dissolve  Annual  Reports  from  of t h e g r a n t program  community-operated  the  Vancouver  1973 t o 1977, t h e clearly stated  was " t o e n c o u r a g e and  voluntary  services not guaranteed by s t a t u t e " .  social  and l o n g  the r e s t r a i n t budget o f 1983, t h e c o m m e n t a r i e s r e f l e c t e d a change  t o w a r d a more e x t e n s i v e  p r o g r a m s and  However, i n 1978, three  y e a r s a f t e r t h e N.D.P. had been r e p l a c e d ,  Reports  anti-  ( C l a g u e e t a l , 1984). I n t h e D e p a r t m e n t of  Resources  the goal  transportation  and s e n i o r s ,  i n t r o d u c t i o n t o t h e Community G r a n t s S e c t i o n that  consumers;  and c h i l d s u p p o r t programs,  In 1975, the S o c i a l Credit Party year  such  friendship centers,  programs,  programs,  "services  of  before  i n the Annual  i n t h e p o l i c y and a  movement  use o f p r i v a t i z a t i o n .  At that time (1978), a Community Projects Division was formed to  provide  f o r the integration  community-based  preventative  services  by n o n - p r o f i t s  delivered  needs groups  co-ordination  of  and r e h a b i l i t a t i v e s o c i a l and v o l u n t e e r s  ( G o v e r n m e n t of B r i t i s h  76  and  Columbia,  to special 1979).  The  Ministry of Human Resources Annual Report also stated t h a t "a new  policy  of  was developed  short-term projects  which  emphasized  and l o n g e r term  the i d e n t i f i c a t i o n projects,  some of  w h i c h a r e s u i t a b l e f o r p u r c h a s e o f s e r v i c e " (p. L 6 1 ) .  The  following  community and  table  ( T a b l e 3:1) i n d i c a t e s  grants mechanism  flourished  clearly  how t h e  under the N.D.P.  how i t has d i m i n i s h e d i n t h e e n s u i n g y e a r s .  reign  Community  g r a n t s i n c r e a s e d d r a m a t i c a l l y i n 1974-75, b u t were s l a s h e d i n 1976-77.  They  have been m a i n t a i n e d a t t h e same l e v e l t o  1984-85, d e s p i t e i n f l a t i o n . TABLE 3:1 Community G r a n t s Fiscal 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 Source:  Year  (Current D o l l a r s )  71 72 73 74 75 76 77 78 79 80 81 82 83 84 85  $  212,864 242,678 737,850 2,871,707 9,313,165 8,092,303 5,856,612 6,129,519 5,919,600 6,335,730 6,614,862 6,628,428 6,786,647 6,004,385 5,195,469  Government of B r i t i s h Columbia, Ministry (Department) of Human Resources Annual Reports.  77  Although  community  levels,  between 1978  i n the  social  as  a  period  grants never and  service  1983,  there  field.  "characterized  again  reached  were other  MacDonald  by  the  their  developments  (1984 ) d e s c r i b e s i t  expansion and  consolidation  of s e r v i c e s i n B r i t i s h C o l u m b i a , d e l i v e r e d b o t h a t the and  private levels".  was  introduced  and  children.  numbers  of  Extensive  For  to p r o v i d e The  goal  and  counselling  of  the  specialized  and  province-wide  were  Zenith  abused c h i l d r e n and  care  family  child  followed  line  support  public program  programs f o r f a m i l i e s  program  c h i l d r e n coming i n t o the  introduced,  Following  example, a  1975  was  to  reduce  c a r e of the abuse  by  the  available  for  the  Ministry.  programs  were  installation the  of  counselling  a of  the r e p o r t i n g of c h i l d abuse cases.  these developments,  workers into schools.  the  government introduced  Taking  d i r e c t i o n from  child  teachers,  these c h i l d care counsellors  worked w i t h h a n d i c a p p e d and  'at  risk'  f a c i l i t a t e the  the  children  in  order  to  children i n a regular classroom as M a c D o n a l d p o i n t s out, the  ( M a c D o n a l d , 1984).  M i n i s t r y was  associations  co-operation  to  f a c i l i t a t e community l i v i n g placements f o r large  of  young  and  government i n s t i t u t i o n s "  H o w e v e r , as  adults  who  (MacDonald,  b a d l y n e e d e d and  78  as  f o r the  had  mentally  resided  1984;  valuable  of  Further,  also "taking  in  people  with  retention  p.  for  steps  retarded numbers years  in  9).  as  these  various  programs were, t h e i r i m p l e m e n t a t i o n was  not c o n t r a r y  adoption,  general  by  government,  privatization. avoiding  The  the  more  costly The  i n s t i t u t i o n a l i z a t i o n and  more  route  of  policy  of  1982;  Scull,  or  between  de-  b o t h p a r t of the  same  been d o c u m e n t e d by  Lerman,  custody  relationship  privatization,  e c o n o m i c p a c k a g e , has (see  a  the  p r o g r a m s were c o n s i s t e n t w i t h a p o l i c y of  institutionalization.  authors  of  to  1977;  various Warren  American 1981)  and  t h e r e i s e v e r y i n d i c a t i o n t h a t the same holds t r u e f o r Canada (Lightman,  1986).  MacDonald  suggests  privatization  and  that  that  the  there  are  development  three of  models  of  privatization  in  B r i t i s h C o l u m b i a r e f l e c t s a s p e c t s of e a c h , r a t h e r t h a n patterned  a f t e r any  specific  c o n c e p t of p r i v a t i z a t i o n  model.  Firstly,  the  being  extreme  "as a p p l i e d to s o c i a l s e r v i c e s w o u l d  seem to i m p l y the a b d i c a t i o n of g o v e r n m e n t r e s p o n s i b i l i t y f o r funding public  and  d e l i v e r y of  sector,  funding  to  services  together  with  non-profit  (MacDonald, 1984;  provided  by  contributions,  and  e n t r e p r e n e u r s on  the  this  such a  nature  would  9).  agencies  private  in  private  supported  for-profit  by  service  the  be  voluntary  agencies  Utilizing  the  governmental  S o c i a l services would  basis of f e e s .  p r i v a t i z a t i o n w h i c h was of  p.  located  w i t h d r a w a l of  s o c i e t i e s and  providers"  non-profit  a  previously  and  model of  presented e a r l i e r , government a c t i o n fall  into Cell  development is b e t t e r described  79  A. as  As  was  suggested,  abandonment  rather  than  privatization.  According  to  "continues  to assume major f u n d i n g  services  MacDonald's second  while  t r a n s f e r r i n g to  model,  non-profit  The  and  funds to a d m i n i s t e r  and  government may  c o m p l e t e range of s o c i a l s e r v i c e s , or a l l to be produced by  final  model  responsibility preventative the  that  only  or r e m e d i a l  to  Cell  C,  assumes r e s p o n s i b i l i t y  F  of  f o r some, or a  p l a n f o r none, some,  government  statutory  of  which  may  services  social services  responsibility  correspond  E, and  government employees  suggests  for  C,  provide  and  are  voluntary  e n t r e p r e n e u r i a l f o r - p r o f i t agencies.  social  social  organizations  be seen to c o r r e s p o n d to C e l l s B,  the e a r l i e r model.  be  for  s e r v i c e s a t e x i s t i n g l e v e l s " (p. 9). S u c h g o v e r n m e n t  a c t i o n can  The  government  responsibility  private service providers sufficient maintain  the  assume and  any  considered  non-profit  to or  This d e v e l o p m e n t would  indicates that  or b o t h p r o v i d i n g  and  the  government  producing  some  services.  M a c D o n a l d f u r t h e r s u g g e s t s t h a t , i n view of the c u t s made to n o n - p r o f i t agencies during appear  that  government further  the  the  government  support  states that  to  the  "these  1983-84 f i s c a l y e a r , i t w o u l d is  retreating  non-profit actions  80  seem  from  social  providing  sector.  designed  He  e i t h e r to  eliminate toward  c e r t a i n programs o r r e - d i r e c t n o n - p r o f i t  alternative  non-governmental  sources  societies  of funding"  M a c D o n a l d , 1984; p. 13). I n o t h e r words, and a p p l y i n g t h e g e n e r a l model s e t o u t e a r l i e r , t h e g o v e r n m e n t i s n o t o n l y n o t going t o produce  social  services,  i t i s not going to provide  them.  The  Search f o r Funding i n the Face of Government Cutbacks  For  the non-profit society,  the  c o r p o r a t e s e c t o r , i n d i v i d u a l d o n a t i o n s o r t h r o u g h i t s own  entrepreneurial include,  efforts.  among  dances,  Entrepreneurial  other things,  holding  bake s a l e s .  a l t e r n a t i v e funding may  raffles,  While s u c h  conducting  selling  come  efforts  bingo,  from  may  hosting  c h o c o l a t e bars o r holding  a c t i v i t i e s usually yield  a v e r y low  r e t u r n f o r t h e major i n v e s t m e n t o f t i m e t h a t i s r e q u i r e d , t h e extent  to which  programs,  such  activities  f o r example,  has been  newspaper a r t i c l e )  In  his survey  (The Vancouver  of B r i t i s h  currently  fund  school  recently  outlined  Sun, October  1986).  Columbia  schools,  Dr.  (in a  Norman  R o b i n s o n , a p r o f e s s o r a t Simon F r a s e r U n i v e r s i t y , d i s c o v e r e d t h a t "bingo games, d o o r - t o - d o o r c h o c o l a t e b a r s a l e s , car  washes and o t h e r f u n d r a i s i n g a c t i v i t i e s a r e h e l p i n g fund  B.C.'s s c h o o l system (The  raffles,  Vancouver  t o t h e tune o f about  Sun, 1986).  raising  activities  recent  Ministry  were  $6 m i l l i o n  a year"  According to educators, the fund-  necessitated  of Education  81  budget  by t h e need cuts.  The  to offset revenues  g e n e r a t e d t h r o u g h f u n d - r a i s i n g were b e i n g used f o r s u c h c o r e i t e m s as l i b r a r y  books,  computers  and  supplementary  work  books.  Although  i n the  past,  many n o n - p r o f i t  money t h r o u g h the c o n d u c t raffles,  more  recently  groups  of a c t i v i t i e s  'casino  nights'  have  s u c h as have  raised  bingo  proved  and  to  be  e q u a l l y i m p o r t a n t . O v e r the p a s t t h r e e y e a r s , the c o n t e n t of press  releases,  newspapers  articles,  and  in various  local  would seem t o i n d i c a t e t h a t a g r e a t e r number of  non-profit  groups  are  using  a c t i v i t i e s to e i t h e r supplement funding  required  example,  when a large new  to  mount  c h a r i t i e s leased space. was  stories  the  proceeds  or t o t a l l y their  of  gambling  comprise the core  various  programs.  For  bingo h a l l opened up i n Kelowna, The  p r e p a r e d t o h o l d two  14  f a c t t h a t t h e o w n e r of the h a l l  bingos a day,  seven  days a  week  c r e a t e d a c o n t r o v e r s y among n o n - p r o f i t o r g a n i z a t i o n s i n the area.  Up  until  this  particular  bingo p a r l o u r  opened,  the  t o t a l amount r a i s e d t h r o u g h bingo o p e r a t i o n s , by c h a r i t i e s i n Kelowna, first  was  year  would  $200,000 annually.  of o p e r a t i o n s ,  raise  one  million  I t was  charities dollars  prediced that, i n the  i n this  annually  one  hall  alone  (Vancouver  Sun,  A u g u s t 3, 1985).  Earlier Canadian  this  year,  National  the  immediate  Institute  82  f o r the  past Blind  chairman  of  stated  that,  the in  1985  and  1986,  this  organization  $750,000 r e s p e c t i v e l y , t h r o u g h  had  raised  organized  $185,000  and  games.  On  bingo  t h i s b a s i s , the C.N.I.B. spokesman s u g g e s t e d t h a t p e r h a p s the United for  In  Way  should  consider  gambling as  community groups (Vancouver Sun,  l i g h t of  profit  this information,  sector  is utilizing been the  the  'privatization'  case  that  A p r i l 30,  i t would  gaming  degree t h a n has  means of raising  is  1987).  seem  that  revenues  c a s e i n the  to  past.  forcing  funds  the a  greater  I t may those  non-  also  be  non-profit  o r g a n i z a t i o n s t h a t p r o v i d e s o c i a l s e r v i c e s to become i n v o l v e d i n the  gaming i n d u s t r y .  a g e n c i e s have t u r n e d on  the  agencies?  organizations a t the  was  The  questions  to gaming and In  this  regard,  how  a  survey  of  y e a r s ago,  a c t i v i t i e s may  of  had  non-profit whether,  more s o c i a l s e r v i c e groups are  utilizing  a l s o the  have had  However, before research,  and  this  to a s c e r t a i n  g a m b l i n g p r o c e e d s to f u n d t h e i r programs t h a n was three  many such  what e f f e c t has  undertaken in order  present time,  are,  the  case  e f f e c t that undertaking  such  on s t a f f o r s e r v i c e d e l i v e r y .  proceeding to a review  of the  findings of  the  a b r i e f d i s c u s s i o n of g a m b l i n g g e n e r a l l y , a r e v i e w  recent  industry, and  developments  in  British  a discussion of how  Columbia's  these developments have  an i m p a c t upon the n o n - p r o f i t s e c t o r w i l l be  83  gambling  provided.  had  Chapter IV GAMBLING  Introduction If,  as a r e s u l t of g o v e r n m e n t r e s t r a i n t  p r o f i t s e c t o r has r e c e n t l y more dependent  on gambling  measures,  more o f t e n t u r n e d t o , o r become activities  to provide an alternate  s o u r c e of f u n d i n g , i t i s i m p o r t a n t t o know the  t h e non-  phenomenon o f g a m b l i n g i t s e l f .  something  about  I t i s a l s o n e c e s s a r y to  be f a m i l i a r w i t h t h e s t r u c t u r e and o r g a n i z a t i o n o f t h e gaming industry  i n order  within the industry profits, this  overview  used  development  An  This chapter w i l l  funds  and a d i s c u s s i o n  games  of the  Columbia.  Overview  by  i t s universality  fascinating and  form  of human  recorded  Indeed,  presence  attempts to deter  gambling by m o r a l o r l e g a l s a n c t i o n s have been  largely  unsuccessful.  variety  of a c t i v i t i e s ;  Currently,  games, s p o r t s  gambling  notably, the l o t t e r y ,  horse r a c e ) b e t t i n g , s l o t machines, wheel  from  historical  of how s p e c i f i c gambling  throughout the history of mankind. p e o p l e from  of n o n -  t o them  provide a brief  i s rendered a p a r t i c u l a r l y  behaviour  developments  available  of the gaming industry i n B r i t i s h  Historical  Gambling  to raise  recent  the participation  the revenue  of gambling, examples  been  how  have a f f e c t e d  and t h e r e f o r e ,  source.  have  to appreciate  pools,  84  may  involve  a  pari-mutuel (or  c a r d games, d i c e games,  numbers games,  and  bingo.  H o w e v e r , i n t h e past,  many d i f f e r e n t f o r m s o f g a m b l i n g have  existed.  Some w r i t e r s , who have t r a c e d t h e h i s t o r y o f g a m b l i n g , argue that  the origins  rituals  o f modern  of p r i m i t i v e  man  Greenberg, 1980; Garmon, lots,  gambling  (Martinez,  1966).  1 983;  Cohen, 1970,  By throwing dice, cards and  humans hoped t o f o r e t e l l  means.  l i e i n the religious  the future  by  supernatural  Although these a c t i v i t i e s can be considered to be the  e a r l i e s t games of c h a n c e , t h e d i v i n a t i o n was t o be c a r r i e d out  within a religious or s p i r i t u a l context.  The e l e m e n t of  c h a n c e was c r u c i a l i n these e a r l y r i t u a l s " i n o r d e r t o r e n d e r the  ritual  a legitimate  a c t of d i v i n a t i o n ;  possibility  of l o s i n g ,  winning  (Martinez,  1 9 8 3 ; p. 1 5 ) .  or innocence  the  future.  the  throw  supernatual  n o t make  The shaman,  community cast l o t s to a s c e r t a i n guilt  would  of a s u s p e c t e d  thought  power  t o be  or priest, of a  criminal,  under  o r god, shamans  outcome by c h a n t i n g o r s i n g i n g  sense"  t h e w i l l of t h e gods, t h e  Although the chance inherent was  without the  i n t h e outcome of the control  tried  (Martinez,  and t o p r e d i c t  of a  to influence the 1983).  Presently  many g a m b l e r s c o n t i n u e t o i n v o k e r i t u a l s and s u p e r s t i t i o n s i n order to influence  'lady  luck'.  The e a r l y t o o l s o f d i v i n a t i o n were e a s i l y r e p r o d u c e d and by the t i m e t h e C h r i s t i a n r e l i g i o n was e s t a b l i s h e d ,  85  gambling was  widespread  among  the  'common  'commoners' gambled t o g a i n  people'.  However,  material resources  f o r " c o s m i c " r e a s o n s ( M a r t i n e z , 1983;  rather  than  Although  the  C h r i s t i a n church denounced d i v i n a t i o n through l o t s , cards  and  dice  p. 17).  the  because i t i n v o l v e d a s u p e r n a t u r a l p o w e r or f a l s e  theologians have pointed individuals assert  to  that  regarding himself  abstain  gambling  work. to  out  that The  from  gambling.  is contrary  According  honest  Bible does not  to  to The  Rather, the  admonish  theologians  biblical attitudes  Bible,  wages t h r o u g h  god,  man  honest  must commit  labour.  It  was  wrong to 'get s o m e t h i n g f o r n o t h i n g '  and  considered  morally  to prosper  from i d l e n e s s ( H o w i n g t o n , 196 6).  T h i s view  still  prevails.  In the  18th  and  were c o n s i d e r e d were  illegal  insurance  a form  and  underwriters,  of  regulated.  was  not  who  taken  on  but by p r i v a t e i n d i v i d u a l s .  the The 1613.  by  'professional'  The  o r i g i n s of the  company - Lloyd's of London - can met  a t Lloyd's  Wagers were p l a c e d  h a p p e n i n g s as  whose  wife  longevity  Bonaparte,  would the  86  have  the  outcome  on  such  first of  be  Coffee  d i d not c o n f i n e t h e m s e l v e s to g a m b l i n g on  a r r i v a l of s h i p s .  of  Additionally,  i s a document dated  to a group of i n d i v i d u a l s who  House and  many t r a n s a c t i o n s  i t s r o o t s i n gambling.  marine insurance  prestigious insurance  safe  of g a m b l i n g s i n c e  poorly  early insurance  traced  c e n t u r i e s , stock exchange t r a n s a c t i o n s  i n d u s t r y of t o d a y has  e a r l i e s t record This  19th  the  diverse  baby,  elections  the or  chessga mes, Sasuly,  and  (a f a v o r i t e ) the horse r a c e s ( A s h t o n ,  1982).  Various forms of gambling,  then,  the h i s t o r y of mankind and  both  prevent  gambling  u n i v e r s a l and  have  been  have been present m o r a l and  l e g a l attempts  unsuccessful.  p e r s i s t e n t n a t u r e , gambling  throughout  Because  even a necessary Ashton,  part of human and  1898).  Further,  Man's r e a d i n e s s to t o l e r a t e of a 'gamble') was  has been d e s c r i b e d  in  which  gambling  The  to  perhaps  c u l t u r a l evolution (Cohen,  Cohen  (1970) s u g g e s t s  u n c e r t a i n t y (an i n h e r e n t  that featue  a s e l e c t i v e f a c t o r i n human e v o l u t i o n .  t h i s i s i n d e e d the c a s e , and people gamble,  a c t i v i t i e s may  Origins of Modern  any  to  of i t s  as an i n h e r e n t a s p e c t of the human d i s p o s i t i o n and,  1970;  1898;  w i l l a l w a y s seek out  attempts  to  deter  or  If  ways  prohibit  prove unsuccessful.  Lotteries  A l o t t e r y i s a method of d i s t r i b u t i n g e i t h e r goods o r p r i z e s among a group of people popular  and  gambling  widespread  games as  by l o t or chance. modern day  'bingo',  The  lotteries,  'keno' and  which  such  'numbers' have  been  d e r i v e d , can be t r a c e d to a n c i e n t t i m e s .  leaders being  being  d i v i d e d up,  slaves being  lands  being  from  The  makes r e f e r e n c e to k i n g s and assigned,  origins of the  Old Testament  selected, duties and  property  g i v e n away on the b a s i s of d r a w n l o t s .  appropriately named Book of  Numbers,  87  we  find t h a t the  and  In the 'Lord'  i n s t r u c t e d Moses t o t a k e a census o f t h e people o f I s r a e l and divide the land  among them by l o t :  " N o t w i t h s t a n d i n g t h e l a n d s h a l l be d i v i d e d by l o t : a c c o r d i n g t o t h e names and o f t h e t r i b e s o f t h e i r fathers they s h a l l i n h e r i t , According to the l o t s h a l l the possession thereof be divided between many and few." (Numbers, Ch. 26, Verses 55 and 56) P e r h a p s one o f t h e b e s t known l o t t e r i e s o c c u r r e d when Roman g u a r d s threw d i c e f o r C h r i s t ' s c l o a k . has  The f o l l o w i n g  been v i v i d l y p o r t r a y e d i n most o f t h e b i b l i c a l  passage  epics:  "An when they c r u c i f i e d him, and parted his garments, c a s t i n g l o t s ; t h a t i t might be f u l f i l l e d w h i c h was spoken by the prophet, They parted my garments among them, and upon my vesture d i d they cast l o t s . " (Matthew 27:35)  Lotteries, taxation. use  in particular, Throughout  lotteries  enterprises. early  to r a i s e  history,  been  a favorite  money i n o r d e r t o f u n d  as t h e 1 5 t h c e n t u r y ,  towns  held  a  prize  (Scarne,  throughout  Spain and England  to raise  w h i c h was h e l d i n F l o r e n c e i n 1530,  1974 ).  The  enterprise  s u c c e s s f u l that the p r a c t i c e of holding rapidly  t h a t as  f o r t h e poor.  t h o u g h t t o be t h e f i r s t p u b l i c l o t t e r y t h a t o f f e r e d as  Italy,  is  currency  proved  so  such l o t t e r i e s spread  as w e l l as t o F r a n c e ,  (Johnson,  of  a variety of  lotteries  d e f e n c e s as w e l l as p r o v i d e  L o t t o de F i r e n z e ,  form  governments have attempted to  F o r example, European records r e v e a l  money t o f o r t i f y La  have  Germany,  1976).  Queen E l i z a b e t h I a p p r o v e d t h e f i r s t E n g l i s h l o t t e r y i n 1569 for  " t h e purpose  of repairing  88  harbours"  (Johnson,  1976; p.  640 ).  Subsequently,  proliferated prohibited.  in  both  England  I n an essay  private until  and public  lotteries  written  lotteries  were  finally  i n 1771, t h e anonymous  a u t h o r d e s c r i b e d t h e f o u r t y p e s of l o t t e r i e s w h i c h  had been  common u n t i l that time (Unknown Author, 1771).  First,  a lottery  Society  may have been s e t up by an i n d i v i d u a l o r  without  Subscriptions  any  to the lottery  p r i z e s and d i s b u r s e d type  authority  of l o t t e r y  from  were  the  government.  collected,  divided  by d r a w n l o t s o r t i c k e t s .  were those t h a t  had been  into  The s e c o n d  authorized  by a  Crown patent or Charter f o r the purposes of engaging i n some p u b l i c work o r c h a r i t y . this  particular  type  However, by t h e l a t e of l o t t e r y  had l o s t  18th century,  i t s popularity.  T h i r d , a l o t t e r y c o u l d be a u t h o r i z e d by an A c t of P a r l i a m e n t for  the purposes  which  of undertaking c h a r i t a b l e  were i n d e p e n d e n t  proceeds  o f such  o f government.  a lottery  may  i n t e r e s t f r e e l o a n s t o t h e poor.  have  or public  works  F o r example, t h e been  used  t o make  S e v e r a l o f England's famous  l a n d m a r k s were b u i l t o r a c q u i r e d w i t h t h e p r o c e e d s from t h i s k i n d o f l o t t e r y ; f o r e x a m p l e , t h e W e s t m i n s t e r B r i d g e and t h e British  Museum i n London  Finally, England those  (Johnson,  t h e most common was the State  lotteries  which  type  Lottery. resulted  89  1976).  of l o t t e r y  i n 18th century  State l o t t e r i e s d i f f e r e d from  from  Acts of Parliament i n  that the  the  r e v e n u e s from  state lotteries  e x p r e s s purposes of  introduced  state  the  government.  lotteries  in  1694.  King  used f o r  William  Apparently,  i m p l e m e n t i n g customs, e x c i s e , l a n d and t a x e s on  were to be  p o l l t a x e s and  b i r t h s , b u r i a l s , m a r r i a g e s and  batchelors,  III  after levying  the  King  t u r n e d to l o t t e r i e s i n o r d e r to g a t h e r f u r t h e r r e v e n u e .  The  conduct and  outcome of the  17th  schemes were r i f e w i t h p r o b l e m s and lotteries  were  declared  that  no  exceptions.  tickets.  Sales  preceding  the  of  tickets  However,  the  the  together  draw  practices  side b e t s or i n s u r a n c e , no  access. with  the  E v e n the  example,  Due  once  them i n the d a t e of  were e x c h a n g e d q u i c k l y  addition,  had  For  t i c k e t s continued  draw.  As  century l o t t e r y  held,  once  state  it  was  i n d i v i d u a l s or  F i r s t C o m m i s s i o n e r of the T r e a s u r y f o r  t i c k e t s , they o f t e n placed them.  18th  abuses.  a s t a t e l o t t e r y would be  groups a p p l i e d to the  resold  and  of  and  throughout buyers  the  hands of b r o k e r s  who  l o t t e r y approached,  at i n f l a t e d  prices.  t i c k e t s and  a l l e g a t i o n s of  argument that  abuse  lotteries  In  placing  g e n e r a t e d i n c o m e t o w h i c h the to  year  received  the  reselling  the  and  encouraged  State fraud, mass  g a m b l i n g , the l o t t e r i e s were f i n a l l y p r o h i b i t e d i n E n g l a n d i n 1826.  Gambling i n Canada Currently,  the  activities  falls  regulation within  the  90  and  licencing  purview  of  of  the  gambling individual  provinces.  The  present  s i t u a t i o n evolved  s e v e r a l changes made to the order  C r i m i n a l Code of  level,  d e f i n i t i o n of Council,  purchasers  0 xford for  including  distributing  specifically  scheme"  card  games,  prohibits dice  and  coin  Disorderly  tables  Houses,  statute  parliamentary Before  Confederation,  and  as  as  chance  "an  among  derivative thereof),  pari-mutuel  well  as  chance  betting.  card such  monte,  It  punch  activities  as  making o r r e c o r d i n g b e t s .  Code and  and  r a t h e r than  ( P a r t V, Betting)  Sections has  i t s origins in  i s , therefore,  common law  179-192  a  (Osborne  product and  of  Campbell,  the confederation of Canada, the Gaming Act of  English gaming laws  C r i m i n a l Code  l o t t e r i e s and  by  (or any  G r e a t B r i t a i n banned l o t t e r i e s and  first  the  (Canada  a lottery  games, t h r e e  Gaming  law  prizes  raffles  p e r t i n e n t p a r t of the  1986).  Code  e n c o m p a s s e s a l l games of  b o o k m a k i n g , p o o l s e l l i n g and  English  f e d e r a l and  H o w e v e r , a c c o r d i n g to the Code, the  l o t t e r i e s and  games,  boards  In  understand  i n the  Dictionary defines  of t i c k e t s " .  "lottery  wheel  to  of  1981).  Concise  term  i t is important  " l o t t e r y scheme" p r o v i d e d  arrangement  The  Canada.  to u n d e r s t a n d the l e g a l f r a m e w o r k a t the  provincial  The  as a consequence  of  1892  as  gaming" (Osborne and  91  games of c h a n c e . were incorporated  a  "general  Act  Campbell, 1986;  After  into  relating p.  3).  the to It  was  i l l e g a l t o keep a common gaming house, gamble i n p u b l i c  conveyances, cheat a t play or conduct l o t t e r i e s limited  The  exceptions).  r e v i s i o n o f t h e Code i n 1953 saw d e f i n i t i o n a l ,  than substantive, the  changes made to the gaming sections.  of l o t t e r i e s .  provincial legislation  which  of l o t t e r i e s , t h e p r o v i n c e  1934  Code.  Although would  have  Quebec  had passed  permitted  the conduct  was c o n s t r a i n e d  by t h e c o n t e n t s of  and 1954, and debated throughout the 1960's.  public sentiment  l a t e 1960's. citizen,  actively  lobbied  the basis that  presented  petition month,  provinces charitable  during the  was being  of l o t t e r i e s  s p e n t a n n u a l l y on  w h i c h took t h e money o u t of t h e c o u n t r y .  the J u s t i c e Department with a 30 0,000 signature of l e g a l i z a t i o n .  t h e Commons  permitted.  momentum  f o r the l e g a l i z a t i o n  $100 m i l l i o n  i n favour  proposed  gathered  I n December, 1967, Ms. Mary E n g l i s h , a p r i v a t e  foreign lotteries She  From  The i s s u e o f l e g a l i z i n g l o t t e r i e s was r e v i e w e d i n  Pro-lottery  on  rather  mid-1930's o n w a r d , Quebec had a c t i v e l y l o b b i e d f o r t h e  legalization  the  ( w i t h some  that  gave  a first  Later  reading  i n that  to a B i l l  same which  either federal or provincial lotteries  "This which  provision would  was d i r e c t e d  be a b l e  organizations  be  primarily at the  to l i c e n c e r e l i g i o u s and  to operate  lotteries"  (Canada  C o u n c i l , 1981; p. 2 ) . A l t h o u g h Quebec was i n f a v o u r o f t h e B i l l , i t was opposed by t h e A t t o r n e y s - G e n e r a l  92  of O n t a r i o and  British  Columbia,  groups.  As  a  following  the  as  well  as  consequence 1968  various  of  election,  the  this  protestant  change  of  legislative  religious government  proposal  died  on the o r d e r paper.  In 1969, the  Section 190  of the Code was amended to permit both  G o v e r n m e n t o f Canada and  authorize  lottery  charitable  and  licence  from  province,  the p r o v i n c e s t o c o n d u c t  schemes.  religious the  The  amendments  organizations  Lieutenant  to conduct and  that  Governor  had  or  permitted obtained  in Council  of  manage l o t t e r y schemes provided  a a  that  the p r o c e e d s g e n e r a t e d were used f o r c h a r i t a b l e or r e l i g i o u s purposes. own  S u b s e q u e n t l y , e a c h of the p r o v i n c e s d r a f t e d  regulations  gambling Quebec,  vis-a-vis  activities. Ontario,  the  licencing  Additionally,  the  Manitoba, Saskatchewan,  C o l u m b i a i n t r o d u c e d the s a l e of l o t t e r y  In 1973, of  this  Olympic  Ottawa new  lotteries  governments  Alberta  were  Ottawa  t o be had  used  and  and in  British  tickets.  introduced an Olympic L o t t e r y .  scheme  Games.  of  their  The  to finance  proceeds the  u n d e r t a k e n the l o t t e r y  1976  on the  u n d e r s t a n d i n g t h a t , i n f u t u r e , Quebec would not a p p r o a c h the federal  government  support  f o r the  announced  the  with  games.  additional In  1976,  e s t a b l i s h m e n t of  requests f o r the Loto  federal Canada,  C o r p o r a t i o n t h a t would c o n t i n u e t h e O l y m p i c  93  financial government a  Crown  Lottery  beyond  the  conclusion of  I t was  the  games.  e n v i s i o n e d t h a t the  generated by  the  largest  extended l o t t e r y  would be  Montreal Olympic Games d e f i c i t and Games (82.5 provinces  on  the  basis  retained by  sports,  recreational  e x c e p t i o n of the  of  fund the  the  federal and  Quebec, the  federal  sales,  1978  distributed and  the  the  market on  pay to  the  Games. lottery  In  1979.  u n t i l 1985.  contribute  With  the  extension the  g o v e r n m e n t $24 $100  million  market,  f u r t h e r amendments to  to  provinces agreed  million a year (indexed), the  Calgary  Winter  withdrawing i t s participation  the the  lottery  However, this agreement was the  federal  government was  Code no  the  jurisdictions,  w i t h d r a w from the  Ultimately,  addition to  ticket  fund  p r o v i n c e s and  over l o t t e r y  g o v e r n m e n t a g r e e d to  federal  percent  p r o v i n c i a l l o t t e r i e s (Canada C o u n c i l , 1981).  December 31,  formalized  the  basis t h a t i t would a f f e c t  government around c o n t r o l  federal  to  used to  programs.  F o l l o w i n g a p r o t r a c t e d d i s p u t e b e t w e e n the federal  five  government and  fitness  the  Commonwealth  p r o v i n c e s o b j e c t e d to an  l o t t e r y on  r e v e n u e s of the  ticket  revenue  used to reduce  p e r c e n t ) ; 12 p e r c e n t w o u l d be  would be  of  p r o p o r t i o n of the  later than  to  not to and  Olympic in  the  proclaim  December  5,  1985.1  As and  a  result the  of  this agreement between the  p r o v i n c e s , the  federal  government  C r i m i n a l Code ( L o t t e r i e s )  Amendment  94  Act,  1985 was passed.  The Code no l o n g e r makes r e f e r e n c e to  the l a w f u l n e s s of l o t t e r i e s Canada.  "The  lotteries  p r o v i n c e s now  and o t h e r  jurisdiction  conductd  specific  i s now  much  have gaming  In  i n British  British  lottery  Columbia,  bingo  gambling  playing  the card  wheels.  individuals  tickets,  operations,  over  and  that  g r a n t of  1986).  gamble  by p u r c h a s i n g  casinos events.  is limited game  may  engaging i n p a r i - m u t u e l b e t t i n g ,  or attending  events,  jurisdiction  Columbia  and r a f f l e  playing  sole  broader than the i n i t i a l  power i n 1969" (Osborne and Campbell,  Gambling  by t h e G o v e r n m e n t o f  by  During  provincial  blackjack,  casino  regulations  and b e t t i n g  on  to  roulette  However, at most casino events, wheels of chance are  r e g u l a r l y i n c l u d e d among t h e games w h i c h a r e a v a i l a b l e . f o c u s here i s on l o t t e r i e s ,  The  bingos and c a s i n o s .  Lotteries The in  Western  Canada  Lottery  Foundation (W.C.L.F.) was  1974 t o a d m i n i s t e r t h e major l o t t e r y  Saskatchewan,  Alberta,  British  l a t e r , the Northwest T e r r i t o r i e s . withdrew other  from the Western  provinces refused  headquarters from the B.C.  Lottery  formed  games i n M a n i t o b a ,  Columbia,  the Yukon,  I n 1984, B r i t i s h  and  Columbia  Canada L o t t e r y Foundation a f t e r the t o agree  Winnipeg  t o move  to Kamloops.  Corporation  95  which:  the Foundation's  The province formed  (i) continued to provide  the  variety  Canada of  of  Lottery  British  computer  Foundation;  which  to  the  Western  ( i i ) represented the  province  Inter-provincial  Lottery  the  provided  by  administers those l o t t e r y In  spite  terminals (previously  staff,  increased  and,  nation-wide.  r e n t and improve train  previously  Columbia  Corporation available  games  a new the  revenues  of  games t h a t a r e  having  provided  by  to  the  replace  W.C.L.F.),  headquarters i n Kamloops, and  then  Provincial  t o the  Secretary  hire  and  predicted  p r o v i n c e as a r e s u l t of the  new  arrangement.  By  1985,  "lottery  f e v e r (was)  B r i t i s h Columbia" expected  (Vancouver  t h a t revenues  reaching epidemic  Sun,  A p r i l 15, 1985)  31, 1986 the  Report  For  s a l e s f o r the f i s c a l y e a r ended  (B.C.  Lottery  March  percent over  Corporation, First  dollar  spent  on  a lottery  ticket,  g o v e r n m e n t r e c e i v e s a p p r o x i m a t e l y 34 c e n t s . dollar  is  administration, government. to  As  Annual  1986).  each  the  1984-  years previously.  were $330 m i l l i o n ; an i n c r e a s e o f 34.7  previous year  and i t was  from l o t t e r y t i c k e t s i n f i s c a l  8 5 would be t w i c e what they had been two shown i n F i g u r e 4:1,  level(s) in  the The  (unequally)  among  retailers,  fees/bonuses  and  the P r o v i n c e of B r i t i s h C o l u m b i a  t i c k e t s were $104  b a l a n c e of  divided  F o r the f i s c a l year ended 1985-86, from  provincial  prizes,  the  federal  net  revenues  the s a l e of l o t t e r y  million, while the Government of Canada  96  Figure 4:1  600  80-81  81-82  82-83  83-84  84-85  ICfTTERY TICKET SALES IN BRITISH COLUMBIA INCOME AND EXPENDITURE COMPARISON Source:  B r i t i s h Columbia L o t t e r y Corporation, F i r s t Annual Report 1986 The Vancouver Sun ( A p r i l 15, 1985)  97  85-  received First  The  $9  million  Annual Report  (British  Columbia  i n the  established  in  recreational, charitable  Corporation,  198 6).  p r o v i n c i a l government's s h a r e of  deposited  Lottery  Lottery  1974  and  Fund it  heritage,  l o t t e r y dollar is  Account.  This  fund  p r o v i d e s r e v e n u e s to  health  organizations.  the  and  While  other  Ontario  was  cultural,  non-profit and  the  and  western  provinces earmark l o t t e r y p r o f i t s f o r funding these kinds activities, and  the  organizations,  Atlantic  and  provinces,  special lottery  into general revenues (Livernois,  programs,  revenues  in  are  of  Quebec absorbed  1986).3  In j u s t o v e r a d e c a d e , l o t t e r y t i c k e t s a l e s have  mushroomed.  In f i s c a l 1970-71, the r e v e n u e s g e n e r a t e d from l o t t e r y t i c k e t sales  i n Canada amounted to  c o n s t a n t 1971 had  reached  billion  dollars.  By  $637 m i l l i o n , i n c o n s t a n t 1971 (Canada  1984-85, l o t t e r i e s g e n e r a t e d  For and  morality p.  because gambling  million, in  $2.2  d o l l a r s , or  Council, billion  nationally,  1981;  $1.5  p.8).  in current  In  dollars  1986).  some i n d i v i d u a l s the  1981;  $116  1979-80, t i c k e t s a l e s ,  i n 1979-80 d o l l a r s  (Livernois,  approximately  8).  of  "controversy  l o t t e r i e s " has Those  individuals activities  in  will by  c o n c e r n i n g the  persisted  favour  of  always  gamble,  government  98  (Canada  equity Council,  l o t t e r i e s argue  both  the  that,  provision  controls  of  illegal  gambling  activities  and i n c r e a s e s  provincial  coffers  syndicates.  Those opposing t h e government's  the  gambling  encouraging  rather  industry  than  revenue  argue  flowing  to illegal,  that  the  gambling  involvement i n government  i n d i v i d u a l s to gamble t o a g r e a t e r d e g r e e  t h e y n o r m a l l y would.  into  T h i s a r g u m e n t has become even  is than  more  c o g e n t as t h e m a r k e t i n g f o r l o t t e r y t i c k e t s has become more p o l i s h e d and p e r v a s i v e .  In  addition,  the government i s accused  hope and complacency"  of "breeding false  (Vancouver Sun, A p r i l 26, 198 5) which,  i n t u r n , r e d u c e s " t h e m o r a l f i b r e of s o c i e t y " (Johnson, 1976; p.  644 ).  lotteries  However,  aside  from  these  moral  arguments,  a r e c o n s i d e r e d by some t o r e p r e s e n t a r e g r e s s i v e  (albeit voluntary) t a x which i s ultimately  more e x p e n s i v e t o  a d m i n i s t e r t h a n o t h e r f o r m s o f t a x a t i o n (Johnson, 1976).  There i s a l s o d i s a g r e e m e n t as t o w h e t h e r a g o v e r n m e n t - o w n e d lottery  should, i n f a c t ,  be c o n s i d e r e d a form  of taxation.  On the one hand, i f l o t t e r y t i c k e t s are considered a consumer item, they cannot be considered from a t a x viewpoint. o t h e r hand, i n s o f a r as t h e p r o f i t s from l o t t e r y t i c k e t are  r e t u r n e d to the s t a t e ,  " i t is therefore  On the sales  a p p r o p r i a t e to  e v a l u a t e t h e i r s o u r c e by t h e u s u a l t a x s t a n d a r d s " ( W e i n s t e i n and  D e i t c h , 1974; p. 83). L i v e r n o i s (1986) a r g u e s t h a t , not  only are l o t t e r i e s a regressive tax, but also, i n the western  99  provinces,  t h e y r e d i s t r i b u t e i n c o m e from the l o w e r e c o n o m i c  c l a s s e s to h i g h e r  economic classes.  L i v e r n o i s (1986) b e g i n s his a r g u m e n t by p o i n t i n g out t h a t the Crown, w i t h r e s p o n s i b i l i t y  vested  i n the  monopoly on l o t t e r y t i c k e t schemes. clearly other  o p e r a t e d by competition  provinces,  The  market.  The  the  lottery industry is  a c a r t e l which e f f e c t i v e l y  i n the  has  prohibits  price that  consumers  c u r r e n t l y pay  i s the d i f f e r e n c e b e t w e e n the t i c k e t p r i c e  the  value  expected  were s u p p l i e d  by  of the  ticket.  However,  a perfectly competitive  the l o n g run t h i s p r i c e w o u l d e q u a l the of  supplying  the  price  component.  the  good"  charged In  by  addition,  from p r i v a t e s o u r c e s ,  cartel  goods), i n a l l provinces  then i n  p. a  tickets  3).  Therefore,  monopoly were  rent  supplied  to the  estimated  e x c e p t A l b e r t a (a p r o v i n c e  value  of  t h a t does  levy sales tax).  "The can  good  t h e y w o u l d be s u b j e c t to an ad v a l o r e m  sales tax (i.e. a tax i n proportion  not  and  minimum a v e r a g e c o s t  includes  i f lottery  " i f this  industry,  ( L i v e r n o i s , 1986; the  any  monopoly rent component of a price charged to consumers be  v i e w e d as an i m p l i c i t t a x s i n c e t h i s i s the  e x c e s s of the c o m p e t i t i v e pay"  ( L i v e r n o i s , 1986;  amount i n  p r i c e t h a t consumers are f o r c e d to  p.  5).  L i v e r n o i s c a l c u l a t e d the  ad  v a l o r e m tax r a t e s w h i c h are i m p l i c i t i n the p r i c e s of l o t t e r y tickets cost.  by At  taking  the  a competitive  ratio  of  sales revenue  p r i c e , the  100  ratio  to  the  total  would equal  unity  and p.  t h e " i m p l i c i t t a x r a t e w o u l d be z e r o " 5).  ( L i v e r n o i s , 1986,  U t i l i z i n g t h i s method, he f o u n d t h a t i n 1984-85, t h e  i m p l i c i t t a x rates ranged, across  the provinces,  55  (Ontario  percent  (Quebec),  provinces),  44 p e r c e n t  and 52 p e r c e n t  (western  as f o l l o w s :  and the A t l a n t i c  provinces).  Livernois  c o n c l u d e d t h a t l o t t e r i e s a r e among t h e goods w h i c h a r e most heavily taxed  In  by t h e p r o v i n c e s .  attempting  tickets,  to determine  Livernois  reviewed  conducted i n the United questionnaire  was used t o o b t a i n  "the l o t t e r y  population necessarily 1986;  four  studies  which  had  been  S t a t e s . I n a s t u d y by S p i r o ( 1 9 7 4 ) , a  l o t t e r i e s i n Pennsylvania. that  the r e g r e s s i v i t y of l o t t e r y  data  Although  i s regressive  from  the winners of  the findings indicated  among  that  subset  of the  that purchases l o t t e r y t i c k e t s , that subset i s not representative  p. 6 ) .  of  the population"  (Livernois,  T h r e e o t h e r s t u d i e s by B r e n n e r and C l o t f e l t e r  (1975),  Suits  (1977)  general  population  and  Clotfelter  i n various  (1979)  American  surveyed  states  and  the found  " o v e r w h e l m i n g e v i d e n c e o f r e g r e s s i v i t y " ( L i v e r n o i s , 1986; p. 6).  F o r e x a m p l e , t h e B r e n n e r and C l o t f e l t e r s t u d y  that, i n Connecticut, s p e n t .55 p e r c e n t while annual  reported  f a m i l i e s among t h e l o w e r income groups  o f t h e i r a n n u a l i n c o m e on p u b l i c l o t t e r i e s  h i g h e r i n c o m e f a m i l i e s s p e n t o n l y .06 p e r c e n t o f t h e i r income.  101  In o r d e r  t o d e t e r m i n e t h e r e g r e s s i v i t y of C a n a d i a n l o t t e r i e s ,  Livernois  conducted  Edmonton  households.  tests  to his data,  regressive;  o f 545 r a n d o m l y  After  he f o u n d  however, they  those i n the United types  a survey  applying that  several  Canadian  selected statistical  lotteries  were  were s l i g h t l y l e s s r e g r e s s i v e  than  States.  Nevertheless,  "compared to other  o f t a x e s i n Canada,  the i m p l i c i t  t a x on l o t t e r i e s i s  above a v e r a g e i n r e g r e s s i v i t y " ( L i v e r n o i s , 1986; p. 9 ) .  A slightly  different perspective  is provided out'  rate  by S u i t s (1979 ). o f any g a m b l i n g  regressivity.  on t h e i s s u e o f r e g r e s s i v i t y He  game  maintains t h a t the 'takei s r e l a t e d to i t s degree of  The t a k e - o u t r a t e i s t h a t p a r t o f t h e p r o c e e d s  t h a t goes t o t h e s t a t e , t h e c h a r i t y o r o t h e r  o r g a n i z e r and,  therefore, i s not divided among the winners of the game.  For  e x a m p l e , A m e r i c a n s t a t e l o t t e r i e s have t a k e - o u t r a t e s  higher  than  highly  50 p e r c e n t  regressive. is the  free  and are considered  by S u i t s t o be  Because the Canadian state enjoys a monopoly, i t  t o s e t the take-out rate  arbitrarily,  regardless of  numbers of bettors or winners.  L i v e r n o i s (1986) comments on t h e e q u a l l y c o n t r o v e r s i a l issue of r e d i s t r i b u t i o n .  While l o t t e r y r e v e n u e s i n Quebec and t h e  Atlantic  are directed into  lottery  provinces  revenues i n a l l other  cultural, Therefore,  r e c r e a t i o n a l , sports, i n these p r o v i n c e s ,  102  general  provincs health  revenues, the  a r e used and other  to support programs.  "lotteries result i n a direct  transfer  o f income  from  t h e consumers of l o t t e r i e s  to the  consumers of the designated a c t i v i t i e s and programs which are s u p p o r t e d by l o t t e r y p r o f i t s " that  the consumers  ( L i v e r n o i s , 1986; p. 9 ) .  of c u l t u r a l ,  recreational,  o t h e r p r o g r a m s a r e more l i k e l y  t o be from  classes,  lotteries  from  Livernois  argues  the l o w e r economic  that  groups i n t o  those i n d i v i d u a l s i n h i g h e r e c o n o m i c findings,  he r e c o m m e n d s t h a t  ticket  sports  higher  services that  prices  and  economic  redistribute  groups.  Given  money benefit  Based  on h i s  be l o w e r e d i n  o r d e r t o r e d u c e t h e i m p l i c i t t a x r a t e s and t h a t a l l p r o v i n c e s direct  t h e i r l o t t e r y dollars into g e n e r a l revenues.  Bingos and C a s i n o s Since  1969, bingo s e s s i o n s and c a s i n o  British  Columbia  have been c o n d u c t e d  charitable or religious organizations.  events occurring i n solely  by  non-profit,  B o t h bingo and c a s i n o  gaming are defined under the 'Terms and Conditions Respecting Licensing  of Lottery  Events i n British  Columbia'.  Bingo i s  d e f i n e d as "the game known as b i n g o " w h i l e c a s i n o gaming i s defined approved  as t h e "games known as b l a c k j a c k  and r o u l e t t e and  forms of wheels of fortune played at a f u n c t i o n  by a l i c e n s e d  held  organization".  Bingo B i n g o was once p e r c e i v e d as a b e n i g n game p l a y e d i n c h u r c h basements by housewives and grandmothers;  103  however, i t has now  become b i g business. been d i s m i s s e d  As a form of g a m b l i n g , bingo has  l i g h t l y b e c a u s e of  the  perception  small amounts of money were involved. a c e i l i n g on  w a g e r i n g i n t h a t the  a f i x e d sum be  f o r the  many c a r d s the  evening.  individuals involved  There  i n d i v i d u a l could  is inaccurate.  the  increase  made i t p o s s i b l e of the  In  was  always  i n the  to say  how  However,  that,  presently,  per bingo s e s s i o n .  number of  bingo p a r l o u r s  i n d i v i d u a l to p l a y  Columbia,  been  bingo  sessions  a l l day  lucrative.  competition  In  the  existed  past, than  between  'easy going' r e l a t i o n s h i p b e t w e e n the sessions  and  government  the to  Lottery  enforce  Columbia  In has  and  most  always  been  were  vague  interpreted  arbitrarily)  at  on  the  the  local  part  of  them  activity  there  and  were  are  now.  Very  there  was  managers of the employed  (B.C.  Reg.  level.  satisfactorily There  was,  some i n d i v i d u a l s and  o f t e n r e c e i v e d l e s s t h a n a f a i r share of the  104  an  bingo  by  the (i.e.,  265/78)).  i n some i n s t a n c e s ,  them  has  fewer  provincial regulations  Regulations  inspectors  the  there  Inspectors  the  Lottery  Regulations  dishonesty  have  b e n e f i t of c h a r i t i e s , and  c h a r i t i e s conducting bingo sessions  The  spent  a l s o a l i m i t on  reasonably play.  I t is safe  f o r an  c o n d u c t e d f o r the  British  was  night.  British  little  only  For example, there  many i n d i v i d u a l s spend upwards of $50 addition,  that  of money to purchase a number of cards t h a t would  played  t h i s view  often  but  the  (albeit, perhaps, the  public  gross r e v e n u e s ;  h o w e v e r , g e n e r a l l y the c h a r i t i e s had a s o u r c e of r e v e n u e bingo p l a y e r s had r e l a t i v e l y few  c h o i c e s as t o how  and  and  where  they played the game.  In  1984,  s e v e r a l e v e n t s o c c u r r e d , i n q u i c k s u c c e s s i o n , which  d r a s t i c a l l y c h a n g e d the f o r e g o i n g s i t u a t i o n and s i g n a l l e d t h e emergence  of  Columbia. had  the  'bingo  industry'  been  bingos  had  dominated been  exclusively  held i n church  refurbish  1,000  British  'bingo palaces' which  people.  by  W i t h the i n s t a l l a t i o n of the l a t e s t  A l t h o u g h these businessmen  small  began to b u i l d  could seat between  equipment, bingo moved into the age  which  charities.  basements,  c o m m u n i t y h a l l s or s e r v i c e c l u b s , businessmen or  in  P r i v a t e e n t r e p r e n e u r s i n v a d e d the t e r r i t o r y  previously  Whereas  so-called  500  and  electronic  of 'high tech' gambling.  were p r o h i b i t e d by the p r e v a i l i n g  R e g u l a t i o n s from a c t u a l l y a p p l y i n g f o r l i c e n c e s o r c o n d u c t i n g the b i n g o s e s s i o n s , t h e y r e n t e d the new to  non-profit  organizations.  The  halls  or r e f u r b i s h e d were  a f t e r n o o n s and e v e n i n g s , s e v e n days a week. ranged $500  from and  generated  both  The r e n t a l f e e s  $300 f o r an a f t e r n o o n bingo s e s s i o n , t o b e t w e e n  $850 by  rented  halls  per  evening.  In  addition,  concession f a c i l i t i e s .  that t h e i r annual revenues  from  any  revenues  Businessmen one  of these  estimated buildings  would be, m i n i m a l l y , a h a l f a m i l l i o n d o l l a r s ( V a n c o u v e r August 3, 1985).  105  were  Sun,  There by  were s u g g e s t i o n s t h a t t h e l a r g e r bingo p a r l o u r s owned  private  entrepreneurs  traditional  bingos  commercial  bingo  were  (Vancouver halls,  higher  financial  or other reasons, traditional  overnight,  the  Sun,  besides  charged  smaller  prices  squeezing April being  but offered many  bingos  face  of  3,  1985).  more  larger  smaller, The  attractive,  prizes.  For  o f t h e o p e r a t o r s of t h e  could the  out the  not  bingo  compete.  Almost  industry  changed  1985, i n v e s t i g a t i v e r e p o r t e r s w i t h t h e  Vancouver  dramatically.  In August,  Sun p u b l i s h e d a r t i c l e s a d d r e s s i n g t h e "bingo c o n t r o v e r s y " and t h e s o - c a l l e d "bingo wars". big  commercial  They d i s c l o s e d t h a t some of t h e  p a r l o u r s were  p o l i t i c a l personnages.  owned  or backed  I t was e v e n s u g g e s t e d  by  familiar  that the then  P r e m i e r of t h e p r o v i n c e had a d i s t a n t i n t e r e s t i n t h e bingo industry  i n that  converted i n t o  a  a store "bingo  owned  by  his family  had  been  barn".  The n o n - p r o f i t o r g a n i z a t i o n s were d i v i d e d on t h e s i g n i f i c a n c e of these new the out.  developments.  s m a l l bingos However,  Those c h a r i t i e s that had operated  complained other  that they  charities  were b e i n g  reported  that  squeezed  they  were  g e n e r a t i n g up t o t h r e e t i m e s t h e i r p r e v i o u s r e v e n u e .  Some  groups, who  halls  but  who  had r e n t e d s e s s i o n s i n t h e new  had  withdrawn,  alleged  106  that  commercial  the owners of the  commercial  halls  were  attempting  s e s s i o n s , i n v i o l a t i o n of the  As  a  result  of  the  Lottery  obtaining  bingo  sessions,  created  B.C.  British (B.C.  was  surrounding  licences  Gaming the  and  In  Control  the  June,  Licensing  of  features  bingo  governing  conduct 1986,  of  the  Branch issued  C o l u m b i a " , w h i c h s u p e r s e d e d the  new  bingo  the  existing Regulations  examined.  Respecting  Reg.  gaming  lottery  Public  Directives  The  of  c o n t r o l the  Regulations.  controversy  i n d u s t r y , the a d e q u a c y of the the  to  newly  new  Lottery  "Policy  Events  Lottery  Regulations  Policy Directives contained  several  noteworthy  which have both a f f e c t e d the industry  and  increased  government  the  from  revenues flowing  this  First,  r e c e i v e l i c e n c e s were made more s t r i n g e n t . As the  new  bingo  sessions  organizations Society  are  only Act  s e r v i c e to the  Policy  non-profit  Directives,  issued  i f they  to have  (R.S.B.C.  In a d d i t i o n , the  to  have a c h a r i t a b l e o b j e c t  of  poverty,  and  c.239) a n d  c o m m u n i t y f o r a p e r i o d of 12  d a t e of a p p l i c a t i o n .  to  religious  107  education  under  providing  a  months p r i o r to organization  or purpose; namely, "the  a d v a n c e m e n t of  a  conduct  been b o t h r e g i s t e r e d  1979,  the  organizations  licences  charitable  the  the  that could of  those  source..  to  requirements  result  for  bingo component of  eligibility  the  in  265/78).  provincial  the  the  or r e l i g i o n ,  had  relief  and  for  other  purposes  eligibility  to  requirements  establishment raising  beneficial  of  community".  effectively  organizations solely  money through  S e c o n d , the new  the  the  gross p r o c e e d s c o u l d be  p a y o u t s a t any  bingo event.  the  purpose  of  more t h a n  60  games.  D i r e c t i v e s s t i p u l a t e d t h a t no  p e r c e n t of the  new  prevented  for  the conduct of bingo  These  g i v e n away as  prize  They a l s o i n d i c a t e d (as d i d the  p r e v i o u s r e g u l a t i o n s ) the t o t a l amount of the gross p r o c e e d s that  must  be  r e t a i n e d by  where the a g g r e g a t e year  exeeds  the  aggregate  a  value  minimum  of the  given to  prize  percent  higher  gross  license  25  of  gross  On  the other hand,  where  awards i n a l i c e n s e  year  p e r c e n t of  gross  charity.  S i n c e the l a r g e r h a l l s c o u l d s e a t more p e o p l e , garner  example,  of  $20,000, a minimum of 15  must be  For  prize awards i n a  given to c h a r i t y .  does not e x c e e d proceeds  organization.  v a l u e of the  $60,000,  proceeds must be  the  proceeds,  their  and  therefore  prizeboards  (or  p e r c e n t of the gross r e v e n u e s ) were c o n s i d e r a b l y l a r g e r those found i n s m a l l e r h a l l s . a  negative  smaller  impact  halls  on  in that  they  holding  cannot  offer  bingo the  the  prizeboards  changing  of  the  halls,  large  higher prizes  or  keep  n a t u r e of the i n d u s t r y , have c l o s e d .  108  Indeed,  which e i t h e r could not halls  had  sessions i n  t h a t a r e s i m u l t a n e o u s l y o f f e r e d i n the l a r g e r h a l l s . a number of smaller bingo  than  T h i s "60 p e r c e n t r u l e " has  charities  60  step  match  with  the  Third,  i n a d d i t i o n t o the o l d r u l e t h a t no j a c k p o t  single  game  could  exceed  stipulated that there  $ 1,000,  Directives  was t o be a $7,500 c e i l i n g on t h e t o t a l  amount o f p r i z e money g i v e n Previously,  the P o l i c y  f o r any  operators  could  away i n any one bingo o f f e r as many  session.  $1,000 games i n  e a c h bingo s e s s i o n as t h e i r gross p r o c e e d s w o u l d a l l o w . example,  one  organization  offered  10  games,  For  a l l paying  between $700 and $1,000 per game, f o r a $35 entrance fee. the  end  of the e v e n i n g ,  approximately  the organization  $10,000, and n e t t e d  $14,000  had  paid  At out  f o r the charity.  I t was c a l c u l a t e d t h a t t h e r a t e of r e t u r n was $160 f o r e a c h minute of work. * -  The  "$7,500 maximum r u l e " has also s i g n i f i c a n t l y a f f e c t e d the  r a t e of r e t u r n t o w i n n i n g p l a y e r s . attracted  Those p l a y e r s who  t o these 'high r o l l i n g ' s e s s i o n s  presently  Washington State to play i n games where jackpots  were  drive to  may reach as  much as $100,000 each.  Fourth, bingo  i n o r d e r t o more e f f e c t i v e l y c o n t r o l and r e g u l a t e t h e industry,  bingo operation paper  cards  government. either  the Policy with  that  Directives  a prizeboard  had  been  paper  purchased  cards  109  any  o f o v e r $1,000, must use  P r e v i o u s l y , bingo operators  disposable  stipulated that  from  the p r o v i n c i a l  were able t o o f f e r  or the t r a d i t i o n a l  re-usable  hard  cards.  By  exceptions),  implementing  this  stipulation  the p r o v i n c i a l government  (with  created  some  i t s own  monopoly i n bingo p a p e r w h i l e , a t t h e same t i m e , i n c r e a s i n g the  operating  conducting the  expenses  incurred  t h e bingo s e s s i o n s .  freedom  t o use hard c a r d s  the  organizations  The o p e r a t o r s  no l o n g e r had  which could  that,  therefore, reduced operating  'free  market ,  i n which  1  by  costs.  I n a d d i t i o n , the  t h e p r i c e s o f bingo  k e p t down by t h e f o r c e s o f c o m p e t i t i o n , creating  and then  government assured  controlling itself  be r e - u s e d , and  a  supplies  were  was r e m o v e d .  monopoly,  By  the p r o v i n c i a l  of a source of continuous revenue.  F i f t h , under t h e new P o l i c y D i r e c t i v e s , t h e c o s t o f t h e bingo licence  to  non-profit  substantially. the  total  percent Since  The c o s t  prize  organizations was i n c r e a s e d  money a w a r d e d  of t h e gross  revenues  the D i r e c t i v e s also  has  from  increased  one p e r c e n t  i n any one s e s s i o n , generated  established  from  of  t o one  the session.  a ceiling  f o rthe  p r i z e b o a r d f o r any s e s s i o n (a f i x e d $7,500 ), t h e r e v e n u e from licence licensing percent license  fees  would  f e e had t o  have  been  limited.  Therefore,  the  change and by s e t t i n g t h e f e e a t one  o f t h e gross r e v e n u e , t h e c e i l i n g on t h e c o s t o f t h e to  considerably. especially  non-profit  organizations  C l e a r l y , l i c e n c e fees those  with  large  bingo  has  been  raised  f o r non-profit  groups,  operations,  s i g n i f i c a n t source of revenue f o r the government.  110  are a  Casinos The in  " P o l i c y D i r e c t i v e s Respecting British  Columbia"  l i c e n s i n g of c a s i n o s c a s i n o l i c e n c e s may  ( e f f e c t i v e June  year.  casino  o n l y be  of  Lottery  1986)  apply  to  the  L i k e bingo l i c e n c e s ,  h e l d by n o n - p r o f i t may  Events  apply  organizations.  f o r three licences in  E a c h l i c e n c e a l l o w s the o r g a n i z a t i o n to o p e r a t e a  f o r up  Although, and  3,  as w e l l as bingos.  Each non-profit organization any  Licensing  to t h r e e  a t one  nights.  time,  manage t h e i r own  non-profit 'casino  organizations  nights',  f o r the  would past  host  several  years the  usual procedure has  been f o r a non-profit agency to  obtain  casino  then  a  commercial undertook the  licence  casino  operator.  responsibility  necessary  gaming  a d v e r t i s e m e n t s , and  and  contract  The  generally  a  commercial  for securing equipment  with  a  and  organizing  operators  location,  providing  personnel, and  private,  placing  conducting  the  events.  In  May,  order from  1986,  the  to c u r t a i l and 'organized  stringent policies  Provincial Secretary to p r o t e c t the  crime', i t was  regulations.  were  As  a  announced  growing  gaming  that  industry  n e c e s s a r y to i m p l e m e n t consequence,  the  * b e t t i n g l i m i t s were d r o p p e d from $5.00 to $2.00; were l i m i t e d t o any  111  more  following  adopted:  * the hours of o p e r a t i o n  in  period  of s i x hours a f t e r 6:00 p.m.; * t h e p o l i c y t h a t t h e c a s i n o had t o be h e l d as an a d j u n c t to a s o c i a l event  would be enforced;  * a maximum of 12 l i c e n c e s per week were to be a l l o c a t e d within the Greater  Vancouver R e g i o n a l D i s t r i c t ; and  * n o n - p r o f i t groups were t o r e c e i v e 50 p e r c e n t r a t h e r than 35 p e r c e n t o f t h e gross  When t h e new P o l i c y groups e x p r e s s e d shorter  hours  D i r e c t i v e s were i n t r o d u c e d , n o n - p r o f i t  concern  would  revenues generated  proceeds.  that the lower  have  a severe  a t casino events.  betting  impact  l i m i t s and  on t h e g r o s s  Although the charities  were t o be g i v e n 50 p e r c e n t , i n s t e a d o f 35 p e r c e n t , i t was anticipated flowing  that,  the increase i n the  to n o n - p r o f i t s would  gross  revenues  limits  (Vancouver  Those  overall,  which  individuals  would  not compensate result  from  f o r the lower  the lower  a coalition  betting  Sun, May 3, 1986).  who  were  involved  i n the  fund-raising  a c t i v i t i e s of the n o n - p r o f i t o r g a n i z a t i o n s formed into  percentage  and p r o c e e d e d  to lobby  themselves  policy-makers i n  o r d e r t o have t h e b e t t i n g l i m i t s once a g a i n r a i s e d t o $5.00. In  April,  1987, t h e p r o v i n c i a l  casino r e g u l a t i o n s which The  maximum  government  announced  were t o be e f f e c t i v e  new  on May 1 s t .  b e t was once a g a i n i n c r e a s e d t o $5.00.  The  c h a r i t i e s w o u l d c o n t i n u e t o r e c e i v e 50 p e r c e n t o f t h e gross proceeds.  However,  a t t h e same t i m e ,  112  the government  i n c r e a s e d i t s s h a r e o f t h e g r o s s p r o c e e d s from t o 10 p e r c e n t . Gaming  The g o v e r n m e n t a n n o u n c e d t h e f o r m a t i o n o f a  Commission  responsibility Columbia.  five percent  and  charged  t h e members  with  the  f o r c o m p i l i n g a r e p o r t on g a m b l i n g i n B r i t i s h  At the same time, a moratorium  was declared on the  i s s u a n c e o f any new c a s i n o l i c e n c e s u n t i l November, 1987, a t w h i c h time t h e Commission (Vancouver  Sun, A p r i l 2, 1987).  Currently,  three  'liberalization' March  1 8,  effectively  groups  are interested  o f t h e gaming  1 987).  The  However, because  regulations  non-profit  l o b b y e d t o have  i n o r d e r t o maximize  each  was e x p e c t e d t o s u b m i t i t s r e p o r t  i n effecting (Vancouver  organizations  casino betting  limits  raise  have  increased  no more than 12 casino l i c e n c e s are granted  week i n t h e G r e a t e r V a n c o u v e r  organizations money  Sun,  t h e i r p e r c e n t a g e o f t h e gross p r o c e e d s .  R e g i o n a l D i s t r i c t , and  those l i c e n c e s a r e d i s t r i b u t e d t h r o u g h a l o t t e r y , profit  a  are excluded  by h o l d i n g  a casino.  from  many  non-  the opportunity to  In order to enhance  tourism, the private sector are interested i n seeing "world class"  c a s i n o s e s t a b l i s h e d i n r e s o r t a r e a s s u c h as W h i s t l e r .  F i n a l l y , the government i s i n t e r e s t e d i n both gaming industry and increasing p r o v i n c e from t h i s s o u r c e .  113  the revenues  r e g u l a t i n g the  which flow  to the  The Government and Gambling Throughout British  the r e c e n t e v o l u t i o n  Columbia,  legalized  gambling  the  o f t h e gaming  government's  industry i n  position  has been ambiguous.  On  vis-a-vis  the one  hand,  p o l i c y - m a k e r s have made p u b l i c s t a t e m e n t s t o t h e e f f e c t t h a t t h e r e w i l l be no e x t e n s i o n of l e g a l i z e d g a m b l i n g beyond t h a t w h i c h i s p r o v i d e d by n o n - p r o f i t groups. the  government  has  moved  to extend  On t h e o t h e r hand, the opportunities to  gamble on l o t t e r y t i c k e t s and i n c a s i n o s . a t t e m p t t o b o o s t r e v e n u e , t h e B.C. permitted  the sale  bingo p a r l o u r s . 5 announced casinos  I n  of ' p u l l t h e  F a l l  F o r e x a m p l e , i n an  Lottery  tabs' i n l i c e n c e d  1986,  o f  slot  to both  machines on two  w h i c h r u n b e t w e e n V i c t o r i a and S e a t t l e . slot  machines had been i n s t a l l e d  The  views  taken  Historically, and  gambling  'criminal'.  labelled  as  toward  a  and  gambling  premises  and  the A t t o r n e y - G e n e r a l  the government's i n t e n t i o n  and i n t r o d u c e  C o r p o r a t i o n has  establish  of the  ferries  By e a r l y May,  were  have  1987  operative.  changed  over time.  has been r e g a r d e d as ' e v i l , 1  'sinful',  More r e c e n t l y , e x c e s s i v e gambling has been disease  (Conrad,  1981;  Blaszczynski,  1985;  C u s t e r , 1979; D i c k e r s o n , 1981).  Generally, the a c t i v i t y  been  an  (and  still  i s ) seen  as  undesirable  has  pursuit.  T h e r e f o r e , i n o r d e r t o j u s t i f y any e x p a n s i o n i n t h e f i e l d o f legalized sufficiently  gambling, persuasive  the  government  rationale.  114  must  provide  a  In t h e p a s t ,  the arguments i n favour  opportunities provide money  have i n c l u d e d :  from  gambling  activities  educational  activity;  to  certain  enhance  province  activities undertaken  or charitable  opportunities  gamble gambling  tourism;  rather  than  gambling  lost  provide  The  government has a c t i v e l y from  activities  extending  illegal  i n the  establishments  which industry  opportunities.  pursued  gambling  opportunities to increase  activities  by i n t r o d u c i n g  more  The developments have included  new  machines, and plans f o r  Higher revenues are also a n t i c i p a t e d from  However, a t the same time,  reduced the revenues  increased  the government has  flowing to non-profit agencies through  the i m p o s i t i o n o f i n c r e a s e d  F unding S o c i a l Services Activities Although  casinos)  be k e p t  c r e a t i o n o f t h e monopoly on bingo p a p e r and  l i c e n c e fees.  gambling  (particularly  and, t h e gaming  the i n t r o d u c t i o n of s l o t  f l o a t i n g casinos.  to highly  recreational,  groups;  curtails  States;  employment  opportunities to gamble. lotteries,  community  t o gambling  will  revenues  cultural,  B.C. d o l l a r s w i l l  i n the United new  by  activities  located  the  on  c a n be d i v e r t e d  legally  are  its  taxes  gambling  a s i g n i f i c a n t s o u r c e o f r e v e n u e f o r t h e government;  desirable  will  of expanding  the foregoing  r e g u l a t i o n o f bingo and c a s i n o s .  Fro m  the Proceeds  discussion  115  has been  o f Gam b l i n g very  broad-  (  ranging,  there  attention. larger  are  While  variety  (Canadian  of  i t has  issues  which  the g o v e r n m e n t has  lottery  States),  several  lottery tickets  tickets  a r e now  deserve  closer  continued to o f f e r a to  a  broader  marketed  market  i n the  partially justified i t s actions  on  United  the  basis  t h a t the r e v e n u e s w h i c h were g e n e r a t e d were t o be used f o r the  benefit  of  communities  However,  an  Columbia's  Public  through 1985 lottery  and  e x a m i n a t i o n of Accounts  reveals that,  tickets  non-profit  the  organizations.  Government  of  British  f o r the f i s c a l y e a r s ended although revenues from  are i n c r e a s i n g  e a c h y e a r and  community groups have r e c e i v e d  increased  1982  the sale of  non-profit  and  amounts through the  L o t t e r y Fund, e a c h y e a r a s i g n i f i a n t amount has been l e f t i n the  f u n d ( T a b l e 4:1).  basis the  In  t h a t such groups a r e t o b e n e f i t from  s a l e of l o t t e r y  fact,  I f sales are being encouraged  be disbursed  May  machines Although  1 987, on  should a l l the revenue  government two  British  finally Columbia  a spokesperson f o r non-profit  not, i n  machines  slot  Steamship  vessels.  groups stated  t h a t the  promised  to  charity,  according  t o the B r i t i s h C o l u m b i a S t e a m s h i p g e n e r a l  manager,  the slot  been  103  of  g e n e r a t e d by  had  installed  proceeds  revenues  the  the p r o c e e d s of  to them?  the  board  tickets,  on the  machines  would  be  r e d u c e t h e s t e a m s h i p company's d e f i c i t and not be to charitable organizations  (Vancouver Sun,  116  May  6,  used  to  disbursed 198 7).  TABLE 4:1 Summary o f Revenues, E x p e n d i t u r e s and L o t t e r y Fund B a l a n c e s F i s c a l Year Ended 1983 1984  1982 Revenue from Lottery Ticket Sales $25,913,997  1985  28,137,960  60,021,992  84,493,299  16,132,831  28,658,227  56,761,841  49,175,942  1,461,355 $29,999,659  1,565,627 27,913,765  1,729,605 29,444,311  3,025,350 61,736,318 *  L o t t e r y Fund Grants Other Expenditures Balance  * Balance o f L o t t e r y Fund a t March 31, 1985 i n c l u d e s $13,282,332 r e c o v e r a b l e advance to the B.C. L o t t e r y C o r p o r a t i o n Source:  Government o f B r i t i s h 1982-1985.  Columbia  Public  Accounts,  Presently,  the government i s moving to expand both i t s d i r e c t  i n v o l v e m e n t i n t h e gaming i n d u s t r y and i n c r e a s e i t s r e v e n u e s through such i n d i r e c t  means as s e t t i n g h i g h e r l i c e n c i n g  f o r n o n - p r o f i t o r g a n i z a t i o n s and t h e c r e a t i o n on  such  goods  complicated  as b i n g o  on  area previously their  The  by t h e i n t e r e s t o f p r i v a t e  gaming i n d u s t r y . an  paper.  ability  conducting gaming  of  situation  fees  monopolies is further  entrepreneurs i n the  What e f f e c t w i l l these e n c r o a c h m e n t s upon dominated to  by n o n - p r o f i t  meet  activites?  117  funding  organizations have  shortfalls  through  Gambling  has  a l w a y s been a c o n t r o v e r s i a l and  contentious  i s s u e , w i t h many o f t h e a r g u m e n t s based on m o r a l s e n t i m e n t s . However, a recent 1987)  touched on what are,  issues surrounding expansion article to  a r t i c l e i n t h e V a n c o u v e r Sun ( M a r c h 26, perhaps,  what i s c u r r e n t l y h a p p e n i n g v i s - a - v i s t h e  o f t h e gaming i n d u s t y  pointed  s e v e r a l of the paramount  i n British  expansion of l e g a l i z e d gambling.  being  taken  through  t o expand  installing  the  i t s policy vis-a-vis  In addition, steps are  the opportunities  gambling  a b s e n c e o f any p u b l i c d e b a t e . may  The  o u t t h a t , t o d a t e , t h e g o v e r n m e n t has f a i l e d  make a c o h e r e n t s t a t e m e n t r e g a r d i n g  the  Columbia.  facilities  t o gamble (e.g.  on  f e r r i e s ) i n the  Although, ultimately, c i t i z e n s  choose t o have e x p a n d e d o p p o r t u n i t i e s t o gamble, i t i s c i t i z e n s who s h o u l d  choose - b u t only  after  considering  a l l t h e r a m i f i c a t i o n s o f s u c h a d e v e l o p m e n t , n o t only t o nonprofit organizations,  but also t o s o c i e t y  Finally,  non-profit  recently  f o r those turned  t o , or that  i s s u e s t h a t s h o u l d be c o n s i d e r e d ? bingo have been r a t e d from If  organizations  are already  upon gaming t o g e n e r a t e f u n d i n g  generally.  heavily  shortfalls,  that  have  dependent  are there  moral  F o r example, l o t t e r i e s and  as r e g r e s s i v e  (on a s c a l e  'highly r e g r e s s i v e ' t o ' p r o g r e s s i v e '  w h i c h runs  ( s e e , S u i t s , 1979).  a s i g n i f i c a n t number o f p u r c h a s e r s o f l o t t e r y  t i c k e t s or  bingo p l a y e r s a r e p e r s o n s on l i m i t e d i n c o m e s , and n o n - p r o f i t  118  o r g a n i z a t i o n s a r e b e i n g f o r c e d t o r e l y upon f u n d s f r o m these s o u r c e s as a r e s u l t o f g o v e r n m e n t f u n d i n g c u t s ,  what l o n g -  term e f f e c t s w i l l t h i s have on n o n - p r o f i t a g e n c i e s ? disadvantaged,  in reality,  welfare programs? social  service  those  individuals  In  paying  Is 'privatization  groups t o depend, whom  they  1  for their  own  Are the social  f o r c i n g some n o n - p r o f i t  f o r funding,  on  many o f  serve?  o r d e r t o p r o v i d e an e m p i r i c a l b a s i s f o r a d i s c u s s i o n o f  these and o t h e r i s s u e s , we t u r n now t o t h e r e s e a r c h and t h e findings.  119  NOTES  A discussion of the l e g a l i t y and c o n s t i t u t i o n a l i t y of t h i s c o n t r a c t b e t w e e n t h e l e v e l s of g o v e r n m e n t has been d i s c u s s e d elsewhere ( s e e , Osborne and Campbell, 1986). I t w a s p r e d i c t e d t h a t t h e new a r r a n g e m e n t would s i g n i f i c a n t l y reduce B r i t i s h Columbia's share of the a m o u n t due t o t h e f e d e r a l g o v e r n m e n t u n d e r t h e p r o v i n c i a l / f e d e r a l agreement over j u r i s d i c t i o n ( Vancouver Sun, A p r i l 15, 1985). In B r i t i s h Columbia, not a l l funds a r e channelled i n t o the L o t t e r y Fund A c c o u n t f o r d i s b u r s e m e n t t o c h a r i t a b l e organizations. S i n c e 1981, t h e e n t i r e p r o c e e d s from one p a r t i c u l a r l o t t e r y game - L o t t o 6/4 9 (renamed B.C. Expo Lotto) - have been earmarked f o r eliminating the Expo '8 6 deficit. L o t t o 6/49 has p r o v e d so p o p u l a r t h a t i t has garnered a major portion of the l o t t e r y market. As L o t t o 6/4 9 r e v e n u e s i n c r e a s e d , s a l e s o f n e a r l y a l l t h e o t h e r l o t t e r y t i c k e t s d e c r e a s e d ( V a n c o u v e r S u n , A p r i l 15, 1986 ). The o r g a n i z a t i o n t h a t c o n d u c t e d t h i s p a r t i c u l a r s e s s i o n i s a n o n - p r o f i t s o c i e t y b a s e d i n New Westminster. However, many other groups conducted s i m i l a r sessions i n o t h e r bingo p a r l o u r s . I t i s not known whether these o t h e r s e s s i o n s have been as f i n a n c i a l l y s u c c e s s f u l . P u l l t a b s a r e a h i g h l y r e g r e s s i v e l o t t e r y game w h e r e b y , i f t h e i n d i v i d u a l p u l l s t h e v a r i o u s t a b s on t h e c a r d and uncovers matching symbols, he o r she w i n s .  120  Chapter V METHOD  The  Research  As a r e s u l t of ' p r i v a t i z a t i o n , 1  many n o n - p r o f i t o r g a n i z a t i o n s  have e x p e r i e n c e d a r e d u c t i o n i n , o r c o m p l e t e government funding.  The  elimination of,  e m p i r i c a l research component  of the  t h e s i s c o n s t i t u t e d an a t t e m p t t o a s c e r t a i n w h e t h e r n o n - p r o f i t social such  service budget  gambling  Given  o r g a n i z a t i o n s have deficits  with  to  counterbalance  generated  by  conducting  activites.  the e x p l o r a t o r y  hypotheses  funds  tried  nature  were not tested.  of the r e s e a r c h ,  Rather,  specific  the research was  guided  by t h e f o l l o w i n g q u e s t i o n s .  Has there been a change i n the types of non-profit agencies  raising  money  through  the  conduct  of  gambling a c t i v i t i e s such as bingo and c a s i n o s ?  2.  Were more s o c i a l welfare programs being funded i n this manner at the end of December, the case i n December,  3.  Have the agencies who 1986  1986 than  was  1982?  r e c e i v e d l o t t e r y licenses i n  experienced reductions i n funding received  from government o r o t h e r s o u r c e s ?  121  4.  Have  any  funding  counterbalanced gambling  6.  adequately  by r e v e n u e s g a i n e d by  conducting  activities?  What e f f e c t , i f any, has s u c h f u n d - r a i s i n g  efforts  had  service  on  which  The  r e d u c t i o n s been  staff,  and  the agency  the  level  or  type  of  offers?  Subjects  Initially, employed research  the to  following  select  purposes.  w o u l d be those (R.S.B.C.,  a  non-profit social  which c.  rationale  welfare  were  agencies  included i n the  for study  were r e g i s t e r e d under the S o c i e t y A c t 3 90 ).  However,  since  non-profit  p r o v i d e a v a r i e t y of s e r v i c e s or s e r v e v a r i o u s  f u n c t i o n s , which services,  and  Non-profit agencies  1 979,  s o c i e t i e s may  definitions  may  o r may  further  set  not be c o n s i d e r e d s o c i a l w e l f a r e of  criteria  for  selection  was  employed.  Beginning  in  1983,  the  Provincial  government  (through f i s c a l restraints) or i n d i r e c t l y , reductions) reduced  Mental  the F a m i l y S u p p o r t  Retardation C o-ordina tors,  Assessment Teams, Transition Partem  manpower  s e r v i c e s o r d i s c o n t i n u e d programs.  f o l l o w i n g were d i r e c t l y a f f e c t e d : Program,  (through  directly,  Counsellors, Child  Child  The  Worker Abuse  Houses f o r B a t t e r e d Women, Post Care  122  Workers,  the  Provincial In-  service  Resource  Programs, Collective.  Team,  Planned  Public  Health  Parenthood,  Health  I n a d d i t i o n , b e n e f i t s a v a i l a b l e under the GAIN  were reduced and the health care  by  two percent,  was  Legal Aid  a n d t h e Women's  program only  Clinics,  during  a time  budget was increased  when t h e i n f l a t i o n  rate  f i v e percent (Magnusson et a l , 1984; B.C.G.E.U., 1986).  Consequently, alternate provided  i f the non-profit  funding  to provide  by g o v e r n m e n t , t h e r e  sector  those should  was  services  utilizing previously  be an i n c r e a s e  i n the  number o f n o n - p r o f i t a g e n c i e s t h a t d e l i v e r s e r v i c e s i n any o f t h e a r e a s o u t l i n e d above.  Therefore,  any n o n - p r o f i t  agency  delivering services to children, youth,  handicapped,  seniors  or low income  t o be s o c i a l  welfare  groups were c o n s i d e r e d  a g e n c i e s f o r t h e purpose o f t h i s  research.  I t i s w o r t h m e n t i o n i n g t h a t t h e B.C. Gaming C o n t r o l refused  to participate i n the project.  following original research  design  Branch  Consequently, the  had t o be amended.  n o n - p r o f i t a g e n c y t h a t c o n d u c t s bingos o r c a s i n o s  Every  i n British  Columbia i s required t o obtain a l i c e n c e from the B.C. Gaming Control Branch. requests agency  information  regarding  and, s p e c i f i c a l l y ,  provided. would  The l i c e n c e form  contains  a section  which  the c h a r i t a b l e nature of the  the types of services  which are  By e x a m i n i n g t h i s s e c t i o n o f t h e l i c e n c e f o r m , i t  be p o s s i b l e  to categorize  123  agencies  into different  i.e.,  types;  sports  clubs,  service  clubs  or  social  service  agencies.  This information  to  conduct  a c o m p a r a t i v e a n a l y s i s of the t y p e s of a g e n c i e s t h a t  utilized  gambling 1986.  would  revenues  have enabled the researcher  t o f u n d t h e i r a c t i v i t i e s i n b o t h 1982  Therefore,  a  letter  D i r e c t o r of t h e B.C.  (Appendix  Gaming  1)  was  C o n t r o l Branch  sent  Branch  allow  refused  the  researcher  personally following  to both  compile  procedures  provide  access  the  to  the  the  However,  the i n f o r m a t i o n files  information.  were  to  t o r e q u e s t the  Branch's a s s i s t a n c e i n p r o v i d i n g t h i s i n f o r m a t i o n . the  and  As  in a  and  to  order  to  result  the  followed.  Procedures L o c a t i n g the Sample In use  an  attempt  gambling  to l o c a t e those s o c i a l s e r v i c e a g e n c i e s revenues  D i r e c t o r i e s of Services culled.  to supplement f o r both  their  Vancouver  and  that  handicapped, Religious research,  offered  d i r e c t s e r v i c e s to  s e n i o r s o r low  groups,  income  hospitals,  groups  groups  were  were not i n c l u d e d .  arts,  travel,  A card  124  file  were those  youths,  identified.  to  t h r i f t s t o r e s , housing p r o j e c t s o r t e n a n t s '  r e c r e a t i o n a l groups,  the  Burnaby,  children,  organizations  human p o t e n t i a l d e v e l o p m e n t o r g a n i z a t i o n s , and  budgets,  From the d e s c r i p t i o n of t h e s e r v i c e p r o v i d e d ,  agencies  that  promote groups,  primarily social  tourism of 225  or s e l f - h e l p agencies  was  compiled.  Subsequently"/  the researcher  each agency.  The n a t u r e  Executive she  (and an a s s i s t a n t )  of the study  telephoned  was e x p l a i n e d t o t h e  D i r e c t o r o r o t h e r a p p r o p r i a t e i n d i v i d u a l , and he o r  was a s k e d i f t h e a g e n c y was i n v o l v e d i n h o s t i n g bingo o r  casino  events,  whether the agency r e c e i v e d  money from t h e  L o t t e r y Fund, o r i f r a f f l e s were u t i l i z e d as a means t o r a i s e funds. she  I f t h e i n d i v i d u a l r e s p o n d e d i n t h e a f f i r m a t i v e , he o r  was a s k e d t o p a r t i c i p a t e by c o m p l e t i n g  Utilizing identified  this as  method, receiving  101  agencies  revenues,  a questionnaire.  out of either  i n d i r e c t l y , from v a r i o u s g a m b l i n g a c t i v i t i e s . method e m p l o y e d t o l o c a t e t h e a g e n c i e s , not  comprehensive  surrounding  and i s r e s t r i c t e d  areas.  225  were  directly  or  Because of the  t h e f i n a l sample i s  to Vancouver  and t h e  C o n s e q u e n t l y , no c o n s i d e r a t i o n i s g i v e n  to t h e e x t e n t t o w h i c h s o c i a l s e r v i c e s i n o t h e r a r e a s o f t h e province are involved i n conducting  An  eight  gather (ii)  page  questionnaire  (Appendix  information regarding:  their  sources  gaming  of funding;  2) was d e s i g n e d  (i) the size (iii)  activities.  to  of the agencies;  reductions  i n budgets  s i n c e 1983; ( i v ) i n c r e a s e s i n s e r v i c e s i n c e 1983; (v) why t h e a g e n c y began r a i s i n g events;  money t h r o u g h h o s t i n g bingo o r c a s i n o  ( v i ) the persons i n v o l v e d i n agency f u n d - r a i s i n g ; and  125  ( v i i ) any e f f e c t s t h a t t h e h o l d i n g o f gaming e v e n t s may have had  on b o t h t h e s t a f f a n d  agency  the l e v e l s of s e r v i c e s which the  offered.  The l i m i t e d t i m e a v a i l a b l e f o r t h e c o m p l e t i o n o f t h e r e s e a r c h precluded  any e x t e n s i v e  pre-testing  However,  i t was c i r c u l a t e d  of the questionnaire.  among s e v e r a l individuals  employed  in  m a n a g e r i a l p o s i t i o n s w i t h i n n o n - p r o f i t o r g a n i z a t i o n s and,  on  t h e b a s i s o f t h e i r s u g g e s t i o n s , some minor m o d i f i c a t i o n s  to the questionnaire were  The  questionnaire  anonymity.  guaranteed  Consequently,  questionnaire  could  participate,  so  confidentiality  and  personnel who completed the  without  Approximately  mailed,  b u t who  both  agency  do  agency or themselves. questionnaires were  made.  identifying  either the  t h r e e weeks a f t e r t h e  those agencies t h a t had agreed to  had n o t r e s p o n d e d ,  were c o n t a c t e d by  t e l e p h o n e and a s k e d  w h e t h e r any p r o b l e m s o r d i f f i c u l t i e s had  been  i n their  encountered  questionnaire.  Of  received funds,  i n 101  that  conducted  such  were  agencies  money d i r e c t l y raffles,  to  complete  T h i s h e l p e d t o i n c r e a s e t h e response  t h e 225 a g e n c i e s  personnel  attempts  indicated  from  or indirectly, events.  polled  gaming from  rate.  by t e l e p h o n e , that  the  the  their  agency  activities,  lottery  other  groups  that  Q u e s t i o n n a i r e s were sent t o 98 o f  t h e s e a g e n c i e s , as p e r s o n n e l i n t h r e e d e c l i n e d t o p a r t i c i p a t e  126  before  seeing  the  r e s p o n d e n t s who  questionnaire.  For  two  d e c l i n e d , l a c k of t i m e and  of  the  three  s t a f f were  cited  questionnaires  that  as the r e a s o n s f o r a r e f u s a l to p a r t i c i p a t e .  Table  5:1  provides  were r e t u r n e d . percent agency events. the  breakdown  was  of t h e  S i x t y - t h r e e q u e s t i o n n a i r e s were r e t u r n e d  r e s p o n s e r a t e ) , and directly  of t h e s e ,  (64  35 i n d i c a t e d t h a t the  involved i n conducting  bingo o r  casino  F i v e i n d i c a t e d t h a t the a g e n c y r e c e i v e d money from  conduct  of  L o t t e r y , and application once  a  raffles,  the  Lottery  Fund  or  s i x i n d i c a t e d t h a t the a g e n c y had  to  been  Senior's  submitted  conduct bingo or casino events and  t h e i r a p p l i c a t i o n had  the  would  an  begin  approved.  E i g h t of the 63 c o m p l e t e d q u e s t i o n n a i r e s were d i s c a r d e d f o r the  p u r p o s e s of  had  e i t h e r r e c e i v e d i n - k i n d donations  were  this study,  insignificant.  returned  with  Eight  p r i m a r i l y b e c a u s e the or the  incompleted  explanations.  agencies  amounts i n v o l v e d  questionnaires  Agency s t a f f refused  to  were  complete  them e i t h e r because of the time required, or because they the  agency  information  b o a r d ) were  u n w i l l i n g to  requested.  One  d i s c l o s e the  questionnaire,  t h a t the a g e n c y c o n d u c t e d c a s i n o e v e n t s , i t was  incomplete.  Of the  63  was  (or  level  that indicated s p o i l t because  questionnaires received,  only  4 6 were c o n s i d e r e d r e l e v a n t f o r the p u r p o s e s of t h i s s t u d y .  127  of  TABLE 5:1 A Breakdown o f Those Q u e s t i o n n a i r e s That Were Returned Number o f a g e n c i e s d i r e c t l y involved i n conducting casinos or bingos  35  Number o f a g e n c i e s which have a p p l i e d f o r bingo o r c a s i n o licences  6  Number o f a g e n c i e s which r a i s e money through r a f f l e s , or r e c e i v e money from e i t h e r the Senior's L o t t e r y or L o t t e r y Fund  5  Questionnaires  discarded  8  Number o f a g e n c i e s which r e t u r n e d uncompleted questionnaires  8  Questionnaires  1  spoilt  n = 63  Procedural The  B.C.  research  Difficulties Gaming  Problems  C o n t r o l Branch's r e f u s a l t o a s s i s t i n t h e  was a n n o u n c e d a f t e r  Consequently, and  and Other  the a l t e r n a t i v e  a p r o t r a c t e d p e r i o d of time. strategy  was h a s t i l y  devised  subject to extreme time c o n s t r a i n t s .  Some  of the agencies  especially  found  since i t arrived  the questionnaire  during  128  a p e r i o d when  onerous, budgetting  f o r the next f i s c a l year was a major concern. the period  from  January  to April  I t may be that  i s n o t t h e optimum  during which to d i s t r i b u t e questionnaires.  time  Given t h a t agency  s t a f f a r e i n v o l v e d i n b u d g e t s u b m i s s i o n s and n e g o t i a t i o n s , i t is  reasonable  t o assume  that  questionnaires  would  have  a  l o w e r p r i o r i t y t h a n might o t h e r w i s e be t h e c a s e .  For  many  i n d i v i d u a l s , gambling  controversial  topic.  apparent  instability  personnel  may  communications  have  felt  regarding  activities.  reluctant  to disclose  requested.  In addition, within  gambling  generally as a  the gaming  the need  t o be  a  r e s u l t of the  industry, guarded  agency i n their  t h e a g e n c y and i t s i n v o l v e m e n t i n  In any event, the l e v e l  some  agencies  of information  which  were was  P o s s i b l y , i t would have been h e l p f u l t o u n d e r t a k e  personal i n t e r v i e w s i n order to supplement through  remains  questionnaires.  129  the data gathered  Chapter VI RESULTS  The  f o l l o w i n g i s a c o m p i l a t i o n and  was  gathered  survey  by  from  a n a l y s i s of the d a t a t h a t  those a g e n c i e s w h i c h  completing  and  participated  returning  the q u e s t i o n n a i r e .  B e c a u s e the a g e n c i e s were so d i v e r s e , i t was construct a typology. and  However, a description of the  the  non-profit social  service  sample are i n v o l v e d i n gaming, and i n v o l v e d , are e x a m i n e d . an  involvement  a g e n c i e s and  i n gaming has  their staff  had  The  completed  the  non-profit sector is diverse.  This  organizations in  the r e a s o n s t h e y  an  impact  q u e s t i o n n a i r e s from  would  and  served  seem  'specializing'.  to  This  the  became which  upon b o t h  the  46 a g e n c i e s i n d i c a t e t h a t As  shown  i n Table  a g e n c i e s p r o v i d e d b e t w e e n f o u r and  programs,  e x t e n t to  follows.  Agencies  thirty-five  The  agencies  A d i s c u s s i o n of the e x t e n t t o  The  or  not p o s s i b l e t o  t h e i r programs and s e r v i c e s i s p r o v i d e d .  which  i n the  a  variety  indicate  of  that  development  may  6:1,  six services  client populations. agencies result  were from  not  either  agency personnel attempting to meet perceived community needs or the  availability  multi-target programs.  group  of  funding  agencies  F o r e x a m p l e , one  f a m i l i e s or i n d i v i d u a l s ;  for specific deliver  wide  variety  The of  agency provided counselling f o r  a crisis line  130  a  programs.  and  suicide  follow-up  services seniors  to and  the  general  shut-ins;  psychiatrically  a  therapeutic  disabled;  general population  and  population;  a  meals-on-wheels work  volunteer  program  bureau  other agencies;  and,  for  serving  to the the  f o o d a i d f o r the  low-income.  Although before,  four as  operating  agencies  Table  after  b e t w e e n 1961  and  one  N.D.P. formed the government.  establishment  may  began  established  of  The  1983  1972-75 f a c t that  would seem  a g e n c i e s w h i c h are  been c u r t a i l e d  by  the  societies  have been an i n c r e a s e  i n the  established  provide  purchase-of-service was  agency  or  to  semi-  restraint  1983.  However, there non-profit  1930's  agencies were  agency has been established since  measures of  the  only seven began d u r i n g the  independent of government has  agency  in  only  While eleven  1971,  s u g g e s t t h a t the  under  operating  indicates,  19 84.  period, when the only one  6:2  began  established  purchase-of-service  contracts. primarily  c o n t r a c t and  in i t s bid, i t is likely need to f u n d - r a i s e .  solely  to was  t h a t s u c h an  to For bid  number of services  example, on  a  if  government  subsequently successful agency  would  have  C o n s e q u e n t l y , s u c h a g e n c i e s would  a p p e a r i n the sample.  131  an  no not  TABLE 6:1 The Groups Which Received Services and the Number of Programs or Services Provided by Agencies Target Groups Psychiat. Youth Mentally Physical. Disabled Chem. Dep. Native/ Learning Women Children Elderly Handic. Disabled Adults Adults Ethnic Disabled  Family  MultiTarget Groups  Number of programs/ services provided by agency 1-3  5  1  1  1  4-6  2  2  2  2  7-9  1  5  10 - 12  2  13 - 15  1  Over 15  5  TABLE 6:2 The Years i n Which the Agencies Were E s t a b l i s h e d  Pre 1951 1961 1972 1976 1981 -  1950 1960 1971 1975 1980 1983  6 6 11 7 11 4  1984 1985 1986  1 0 0  n = 46  As t h e d a t a i n T a b l e 6:3 size  indicate,  the a g e n c i e s v a r i e d i n  f r o m t h e v e r y s m a l l , w i t h no f u l l - t i m e  staff,  to the  v e r y l a r g e , w i t h between 100 and 199 f u l l - t i m e  staff.  Of the  44 a g e n c i e s t h a t p r o v i d e d  information regarding  the numbers  of  f u l l - t i m e , p a r t - t i m e o r v o l u n t e e r s t a f f , the l a r g e s t group  of  agencies  staff. staff, two  (20) e m p l o y e d b e t w e e n one and n i n e  E i g h t a g e n c i e s employed between 10 t e n employed between  employed  between  and 19  20 and 34 f u l l - t i m e  35 and  49  full-time  a g e n c i e s employed between 100 and 299 f u l l - t i m e  133  full-time full-time  staff,  staff. staff.  and  Three  TABLE 6:3 Numbers of F u l l - T i m e , Part-Time and V o l u n t a r y P e r s o n n e l Employed by Agencies Number of  Staff  F u l l Time  0  P a r t Time  Volunteer  2  8  4  20  25  6  10 - 19  8  3  9  20 - 34  10  6  4  35 - 49  2  1 - 9  3  50 - 74  2  4  75 - 99  4  100 - 299  1  3  6  500  1  1000  1  Varies  1  n = 46 M u l t i p l e responses p e r m i t t e d  Forty-one individuals budgets 86,  reported serving approximately  349,440  d u r i n g t h e i r l a s t a c c o u n t i n g y e a r . The c o m b i n e d  f o r a l l t h e 46 a g e n c i e s d u r i n g t h e f i s c a l y e a r 1985-  or the calendar year  seven had  agencies  1986, t o t a l l e d $36,941,199.  of the 46 agencies had budgets  budgets  over  $500,000  under $449,000 while 19  (Table 6:4).  134  Twenty-  TABLE 6:4 The S i z e of Agency Budgets Under  $100,000  6  199,999  7  200,000 - 299,999  7  300,000 - 399,999  5  -  499,999  2  500,000 - 599,999  0  600,000 - 699,999  4  700,000 - 799,999  0  -  899,999  0  900,000 - 999,999  1  100,000  400,000  -  800,000  1 Million  1.5  Million  6  1.6 M i l l i o n - 2 M i l l i o n  4  Over 2 M i l l i o n  4  n = 46  Of t h e 46 a g e n c i e s , o n l y 12 r e c e i v e d 70 p e r c e n t o r more o f their over  income from one source  and o n l y 25 a g e n c i e s  51 p e r c e n t of t h e i r budget from one source  Twenty-one a g e n c i e s  When an agency has a v a r i e t y less  require  more s t a f f  (Table 6:5).  were i n v o l v e d i n p u r c h a s e - o f - s e r v i c e  c o n t r a c t s and 19 r e c e i v e d p r o v i n c i a l  course,  received  reliance  government core funding.  of f u n d i n g s o u r c e s , t h e r e i s o f  on any one s o u r c e .  time  to c u l t i v a t e  sources.  135  However, i t may  and m a i n t a i n  those  TABLE 6:5 Sources of Agency Funding Source  Under 1 1-10  Prov. gov. purch. of services Prov. gov. core funding Federal gov. purch. of services Federal gov. core fund. Municipal grants Philanthropic trusts Client fees Casino or bingo Lottery fund Senior's lottery Raffles Donations from indiv. or businesses Service clubs Agency generated rents, membersh. etc. Income from other agencies or organizations Miscellaneous interest income, etc. United way Fed. government employment programs Other fund raising In kind donations  11-20  Percent of Budget 21-30 31-40 41-50  5 6  4 2  1 1 3 3 3 9 1 4 4  8 2 16 8 17 15 3  3 2 3 1 4 6  16 14  19 3  3 1  1  6  4  2  1  3  6  4  3  8 8  1 4  6  1 1  3 10 1  1 3  3  1  n = 46 Multiple responses permitted  4  2  3 1 3 3  1  2 2  2  1  1  51-60  61-70  1 2  2 1  1  1 1 1 .1  1 1  1 2  1  1  1  1  71-80  81-90  91-100  Gaming and the N o n - p r o f i t S e c t o r Thirty-five either  agencies reported being d i r e c t l y  c o n d u c t i n g bingos o r c a s i n o s , o r both.  some o f these a g e n c i e s h o l d r a f f l e s p r o v i n c i a l government l o t t e r y t i c k e t s a commission have  long  been  a source  same p e r i o d ,  conducting  In a d d i t i o n , money, o r s e l l  ( f o r which they r e c e i v e  o f f i v e c e n t s on the d o l l a r ) .  c o n d u c t i n g c a s i n o s from that  to raise  involved i n  of revenue,  Although  18 a g e n c i e s  1983 o n w a r d s ( T a b l e 6:6).  24 a g e n c i e s  also  became  raffles began During  involved i n  bingos.  TABLE 6:6 The Years i n Which Agencies Began Conducting in Order to Raise Money Casino Pre 1961 1966 1971 1976 -  1960 1965 1970 1975 1980 1981 1982 1983 1984 1985 1986  Bingo  Raffles  Gambling  Events  Sale of L o t t e r y Tickets  4 1 3  2 1  2  4 3 10 7  2 7 9  5 3  2 3  1 2 2 1  1 3  n = 35 M u l t i p l e responses p e r m i t t e d  Agencies t h a t began  c o n d u c t i n g c a s i n o and/or bingo events i n  1982 o r b e f o r e , r e p o r t e d t h a t they had done so because they:  137  (i) wished  to broaden  their  f u n d i n g base;  ( i i ) c o u l d not  o b t a i n f u n d i n g from any o t h e r s o u r c e , ( i i i ) wished to augment current  funding;  supporting  While  (Table  or,  ( i v ) wished  become  t h a t began c o n d u c t i n g c a s i n o  bingo events d u r i n g 1983  and a f t e r  self-  cited  and/or  some of these same  none began o p e r a t i o n s i n o r d e r t o b r o a d e n  f u n d i n g base ( T a b l e 6:7).  their  Rather, they r e p o r t e d t h a t : ( i )  t h e y had  l o s t a l l or p a r t of t h e i r p r o v i n c i a l  funding;  ( i i ) they had  but  been  had  more  6:7).  those agencies  reasons,  to  or  i d e n t i f i e d the need f o r new  r e f u s e d government  a g e n c i e s * c o r e f u n d i n g had  not  funding; or,  private services  ( i i i ) the  i n c r e a s e d t o keep up  with  inflation.  The  35 a g e n c i e s d i r e c t l y i n v o l v e d i n c o n d u c t i n g b i n g o  and  c a s i n o e v e n t s garnered anywhere from below one p e r c e n t to as much as  92 p e r c e n t of t h e i r  t o t a l annual  y e a r 1985-86 (or c a l e n d a r year 1986) asked what e f f e c t  from  budget f o r f i s c a l t h i s source.  l o s i n g t h i s source of revenue would have on  t h e a g e n c y , o n l y f o u r of the 31 a g e n c i e s indicated  t h a t such a development would  impact on the agency.  that  responded,  have no  significant  The bingo and c a s i n o e v e n t s  by these a g e n c i e s c o n t r i b u t e d l e s s total  When  budgets.  138  conducted  then one p e r c e n t to t h e i r  TABLE 6:7  The Reasons Why Agencies Began Conducting Casino or Bingo A c t i v i t i e s  To broaden funding base Those who began during 1982, or before  1  Agency could not obtain funding from any other source  Agency retained Agency Agency levels lost lost part of govt. part or or a l l funding a l l of i t s of i t s but wished provincial private to augment funding funding funds  1  Those who began during 1983, or after n = 35 Multiple responses permitted  Agency designed new program(s), but was refused government funding  Agency core funding not increasing commensurate with increases i n inflation  4  13  9  2  9  Agency wished to become more s e l f supporting  1  11  8  2  However, f o r those a g e n c i e s whose gaming a c t i v i t i e s generated over one p e r c e n t of t h e i r t o t a l annual budget, were c o n s i d e r e d v i t a l .  such  revenues  Agency p e r s o n n e l e x p r e s s e d  their  p e r c e p t i o n s of t h e i m p a c t t h a t l o s i n g s u c h r e v e n u e s  would  have on  t h e agency.  'problematic , 1  The  respondents  ' d i s a s t r o u s ' and  used  words such  'hardship' to d e s c r i b e the  e f f e c t t h a t l o s i n g gaming revenues would have on the From t h i s i n f o r m a t i o n , i t i s a p p a r e n t t h a t , even where r e v e n u e s f r o m g a m i n g may funds were c r i t i c a l , the  agency  For  example,  revenues  and  could  as  agency.  i n cases  have been s m a l l , t h e e x t r a make the d i f f e r e n c e  between  continuing to operate or being forced to close.  from  an agency  w h i c h g e n e r a t e d 2.3 p e r c e n t of i t s  gaming e v e n t s d e s c r i b e d the e f f e c t s of  such gaming revenues  as " c a t a s t r o p h i c  cutbacks i n s e r v i c e d e l i v e r y " .  Two  - resulting  losing  i n severe  a g e n c i e s , which generated  17 and 92 p e r c e n t of t h e i r revenues through gaming, responded t h a t they would c l o s e i f they l o s t these funds. i n d i c a t e s how gaming  Table  6:8  agency p e r s o n n e l p e r c e i v e d the e f f e c t of l o s i n g  revenues.  140  TABLE How  6:8  Agency S t a f f P e r c e i v e the E f f e c t of L o s i n g Gaming Revenues  No s i g n i f i c a n t impact on agency  4  Would f o r c e agency to develop o t h e r methods of r a i s i n g funds  2  A r e d u c t i o n i n ' e x t r a ' money  2  A r e d u c t i o n i n core f u n d i n g  1  A reduction i n s t a f f  3  A reduction i n services/programs  5  A r e d u c t i o n i n both s t a f f and programs  4  Hardship,  8  d i s a s t r o u s , problematic  Agency would c l o s e  2  No response  4  n = 35 The  questionnaire  gaming  sought to determine what e f f e c t the loss of  revenues  would  respondents provided influenced  by  a an  have  on  the  agencies,  s u b j e c t i v e a n s w e r s w h i c h may  number  of  variables.  agency  which  personnel  of  has  funds may  f e e l l e s s d e p e n d e n t on  any  a  For  counterbalanced agency type,  has  the  been  by  increases  involved  in  in  another.  141  The a  the of  There i s  source  f u n d - r a i s i n g of  more the agency i s l i k e l y to be  source  source.  the l i k e l i h o o d t h a t a l o s s of r e v e n u e from one  the  have been  example,  diversified one  and  may  be  longer  an  particular  dependent upon that  source.  As t h e r e v e n u e s become more p r e d i c t a b l e y e a r a f t e r  y e a r , t h e r e i s a l i k e l i h o o d t h a t t h e y w i l l become an i n t e g r a l part of the agency budget.  Agency  personnel,  expenditures from economizing funds  the budget,  crucial  agency of funds  gaming  as the only  operations.  (and  who  means  left  political  may  perhaps,  to provide social  winds.  time,  personnel  services  t h a t are amenable feel  perceive  f o r agency  s e r v i c e s may  F o r example,  which  to government  more  urgent  about  fall  special  coverage  of a  favoured  a t any p a r t i c u l a r t i m e .  of agencies  In  a l l other  result i n some s e r v i c e s being  present  may  In this instance, a l l  have i n v e s t i g a t e d  certain  funded) o v e r a n o t h e r ,  contracts  r e a l i z e that there are no other  economic v a r i a b l e s or press  p a r t i c u l a r problem  a l l excess  to the operation of the agency.  In addition,  groups,  trimmed  unsuccessfully will,  to shifting  interest  already  can t a k e n .  personnel  sources  victim  have  measures w h i c h  become  addition,  who  At the  do n o t p r o v i d e  purchase-of-service cultivating  and  maintaining a l t e r n a t i v e sources of funding.  Six  agencies  licenses,  have  or both,  applied and p l a n  a c t i v i t i e s sometime i n 1987. that,  although  they  had  f o r either t o commence  bingo  or  casino  conducting  such  Three of the agencies r e p o r t e d not experienced  budget  g o v e r n m e n t f u n d i n g had n o t k e p t pace w i t h i n f l a t i o n .  142  cuts, I t was  hoped  that  agency  f u n d - r a i s i n g , through  to subsidize  current  e x i s t i n g l e v e l s of s e r v i c e . provincial order  funding  gaming,  would  programs i n o r d e r  allow the  to  One a g e n c y had l o s t p a r t o f i t s  a n d hoped  t o make  up t h e s h o r t f a l l i n  to r e t a i n one half-time s t a f f person.  This same agency  has needed an a d d i t i o n a l f u l l - t i m e w o r k e r f o r t h r e e  The  two remaining  agencies  crucial  to  years.  were p l a n n i n g t o f u n d - r a i s e  t o augment c u r r e n t f u n d i n g . considered  maintain  A s u c c e s s f u l outcome  maintaining  levels  of  only  was n o t staff  or  services.  Having  described  gambling, the  we t u r n now  issues  effects  the agencies  and t h e i r  involvement in  to an a n a l y s i s of t h e i r r e s p o n s e s t o  of funding  levels,  service  d e l i v e r y and the  of f u n d - r a i s i n g .  L e v e l s of Funding Of  t h e 44 a g e n c i e s  reductions reported  that  i n funding  having  provided  w h i c h have o c c u r r e d  experienced  government o r p r i v a t e funding reported  t h a t they  elderly,  reductions sources.  had e x p e r i e n c e d  p r o v i n c i a l or f e d e r a l funding agencies,  information since  regarding 1983, 23  from e i t h e r t h e i r Fourteen  a partial  agencies  decrease i n  s i n c e 1983. Of t h e 14, n i n e  which d e l i v e r e d s e r v i c e s to N a t i v e I n d i a n s , the psychiatric clients,  developmentally  disabled,  143  the p h y s i c a l l y or  children  and  the  general  population,  had t h e i r  budgets reduced by as l i t t l e  as seven  and as much as 70 p e r c e n t .  However,  m u l t i - s e r v i c e agencies  Five m u l t i - s e r v i c e agencies of t h e i r p r o v i n c i a l reporting  a  I n a d d i t i o n t o the 14 a g e n c i e s  decrease  funding,  four agencies,  Indians,  the e l d e r l y ,  i n provincial  and the g e n e r a l  reported  or f e d e r a l  which d e l i v e r e d s e r v i c e s t o N a t i v e population,  l o s i n g 100 p e r c e n t o f t h e i r p r o v i n c i a l f u n d i n g . f i v e agencies  hard h i t .  l o s t between f i v e and 49 p e r c e n t  funding.  partial  were p a r t i c u l a r l y  reported  In addition,  experiencing a reduction  i n funds  r e c e i v e d from v a r i o u s o t h e r non-governmental sources.  Of the 44 a g e n c i e s in  l e v e l s of f u n d i n g  been no decrease. of  providing information regarding  s i n c e 1983, 21 r e p o r t e d t h a t t h e r e had  As the data i n Table 6:9 i n d i c a t e ,  the 21 r e c e i v e d no government f u n d i n g .  t h a t agency income was not keeping the n i n e a g e n c i e s  although  rates  o r demand  that reported  service contracts.  four  reported  in levels  Given  for services.  no d e c r e a s e r e c e i v e d  that,  of funding  had been no i n c r e a s e c o m m e n s u r a t e  of i n f l a t i o n  agencies  Of  t h a t r e c e i v e d core f u n d i n g g r a n t s from the  had been no d e c r e a s e  s i n c e 1983, t h e r e  reported  pace w i t h i n f l a t i o n .  o r f e d e r a l governments,  there  s i x out  W h i l e one o t h e r  a g e n c y r e c e i v e d no g o v e r n m e n t f u n d i n g , p e r s o n n e l  provincial  decreases  with  S i x of the purchase-of-  such an arrangement, i t i s assumed  144  that,  as s e r v i c e l e v e l s  increase  increased,  agency income would a l s o  proportionately.  TABLE 6:9 The Funding Arrangements o f Those Agencies R e p o r t i n g Decreases i n Funding s i n c e 1983  Agencies that received no p r o v i n c i a l o r f e d e r a l government funds  6  Agencies t h a t r e c e i v e d p r o v i n c i a l or federal core f u n d i n g  9 *  Agencies  No  fulfilling  purchase-of-service  contracts  6  _____ * 4 a g e n c i e s r e p o r t e d t h a t , w h i l e t h e r e was no d e c r e a s e , f u n d i n g was n o t k e e p i n g pace w i t h i n f l a t i o n o r demand for services.  Levels of Service D e l i v e r y Agency personnel  r e p o r t e d t h a t t h e r e had been an i n c r e a s e i n  demand f o r service since 1983, and 41 out of 46 agencies were providing  increased  levels  of s e r v i c e .  These  agencies  i n d i c a t e d t h a t l e v e l s o f s e r v i c e had i n c r e a s e d a n y w h e r e from five  percent  t o 230 p e r c e n t .  accomplished the task through  t h e more  I n some  of p r o v i d i n g  efficient  145  use  instances,  higher  agencies  l e v e l s of s e r v i c e  of volunteers,  by  giving  clients for  less  time,  example,  balance  the  or r e - d i s t r i b u t i n g  curtailing  a  the  recreation  agency resources;  program  i n order  budget.  Impact of F u n d - R a i s i n g on Agencies and  Staff  When an agency decides to become i n v o l v e d i n any venture,  may  result  in  a  Involvement  in fund-raising  negatively,  the  quality  fund-raising  w h e t h e r of a s h o r t - t e r m o r l o n g - t e r m  decision  to  variety  may  productivity  of  affect,  of  nature,  consequences.  either positively  employees,  the  levels  of s e r v i c e s p r o v i d e d , o r the t y p e s of s e r v i c e s  are provided. a g e n c y and  However,  the i m p a c t  the  of f u n d - r a i s i n g  or or  which on  the  s t a f f w i l l be t e m p e r e d by a number of v a r i a b l e s ;  namely, the s i z e of the agency; who raising;  how  necessary  revenue  generated;  i s i n v o l v e d i n the f u n d -  i t i s to r a i s e  and,  the  way  funds;  i n which  the amount of the  revenue i s  u t i l i z e d by the a g e n c y .  In o r d e r to r a i s e f u n d s , an a g e n c y must have a t i t s d i s p o s a l the n e c e s s a r y human r e s o u r c e s .  In 34 out of the 35  agencies  currently  casinos,  directly  involved  conducting on  a  bingo  continuous  or  basis (Table  staff 6:10).  are  Twenty-one  agencies reported t h a t members were i n v o l v e d i n fund-raising, nine r e p o r t e d c l i e n t i n v o l v e m e n t , involving  volunteers.  Only  four  and  33  agencies reported  agencies  reported  p r o f e s s i o n a l f u n d - r a i s e r s t o c o n d u c t the gaming e v e n t s .  146  using  If,  f o r example, an  must become and to  fulfilling  agency employs few  As  high  their regular  l e v e l s of  of  bingos  also  increased  involved the  i n the  addition,  11  24  One the  agency  increased  had  agency reported  but  administration  in  that  had  f r o m , the  involved  fund-raising  in  substantially.  on  staff  tasks.  time  the  positive  for bringing  together  i n the  for  the  volunteer  amount of time i n d i v i d u a l s t a f f activities  side, staff,  pursuit  of  i n d i v i d u a l s together to  may  be  be  fund-raising members, a  agency.  147  are  reduced the  minimal.  may  serve  c l i e n t s and  common  goal.  In  work toward a goal  to s t r e n g t h e n t h e i r c o m m i t m e n t to b o t h one g o a l s of the  In  T h e r e f o r e , the i m p a c t of f u n d - r a i s i n g on  mechanism  bringing  directly  been r e d u c e d .  agency, the s t a f f or programs may  Also,  the  responsibility for  In those a g e n c i e s w i t h l a r g e r s t a f f c o m p l e m e n t s or p o o l s to draw  that  fund-raising  accounting  that  turnover.  increased  p e r s o n n e l not  who and  reported  d e l i v e r y of d i r e c t s e r v i c e s had  will suffer  staff  resulted  w o r k l o a d s of  agencies  either levels  agencies reported  casinos  enterprise,  associated  eventually  a f f e c t e d or the  6:11,  or  workloads for s t a f f . had  duties,  'burn out' and  i n d i c a t e d i n Table  conduct  those s t a f f  remain involved in fund-raising, in addition  of d i r e c t s e r v i c e w i l l be from  s t a f f , and  as  a  volunteers addition, may  a n o t h e r and  serve the  TABLE  6:10  I n d i v i d u a l s I n v o l v e d i n Agency F u n d - R a i s i n g Number of Agencies Staff Members Clients Volunteers Professional fundraisers  34 21 9 33 4  n = 35 M u l t i p l e responses p e r m i t t e d  The  revenue generated  v a r i e t y of purposes; reduce  the  equipment;  agency hire  increases;  and  through f u n d - r a i s i n g may  namely, to supplement c o r e f u n d i n g ; t o deficit;  purchase  land,  additional  staff;  provide  to develop  and  e v a l u a t e new  t h o s e a g e n c i e s where f u n d - r a i s i n g necessary raising  be used f o r a  efforts  buildings  may  n o t be v i e w e d  onerous e n t e r p r i s e .  programs. are  in a positive  in fund-raising. the s t a f f and  In  absolutely  manner.  fund-  It  may,  be c o n s i d e r e d a n e g a t i v e  and  Five agencies reported that there  had  been a d e c l i n e i n s t a f f morale as a r e s u l t of the  directly  salary  t o t h e c o n t i n u e d e x i s t e n c e of t h e a g e n c y ,  because of i t s v e r y n e c e s s i t y ,  which  for  or  T a b l e 6:11  involvement  s e t s o u t t h e v a r i o u s ways i n  o f t h e a g e n c i e s have been a f f e c t e d ,  indirectly.  148  both  TABLE  6:11  The E f f e c t of F u n d - r a i s i n g on the S t a f f of the A g e n c i e s Number of A g e n c i e s S t a f f hours i n v o l v e d i n d i r e c t s e r v i c e i s reduced because of s t a f f i n v o l v e m e n t in fundraising  11  A d e c l i n e i n s t a f f morale  5  An improvement i n s t a f f morale  9  Increased workloads f o r s t a f f due t o the d i r e c t o r i n d i r e c t involvement i n f u n d r a i s i n g  24  A d d i t i o n a l s t a f f have been h i r e d w i t h revenues g e n e r a t e d through fundraising  11  No response  4  n = 35 M u l t i p l e responses p e r m i t t e d  Some a g e n c i e s  reported that  fund-raising  was  absolutely  n e c e s s a r y t o m e r e l y s u s t a i n s t a f f and p r o g r a m s a t c u r r e n t levels,  r a t h e r than a l l o w i n g  s e r v i c e s o r generate shown i n T a b l e funding  had  a financial  6:12,  not  them to e i t h e r expand s t a f f For example,  as  nine agencies reported that l e v e l s  of  changed,  since  replaced other funding cuts. had  not  generated  revenues  f u n d i n g . One  generated through f u n d - r a i s i n g  149  additional  F o r two a g e n c i e s ,  sufficient  cutbacks i n p r o v i n c i a l  surplus.  or  to  income  only  fund-raising  counterbalance  agency used the  to supplement  revenues  t h e agency's  requirements. revenues  t o reduce t h e i r  Fund-raising Twelve  Three a g e n c i e s  had  r e p o r t e d u s i n g the  deficit.  more p o s i t i v e  benefits  f o r other agencies.  r e p o r t e d t h a t i n c r e a s e d revenues  agency s t a f f  t o develop  a g e n c i e s had  used  new  had  allowed  programs (Table 6:12)  the revenues  term programs.  One  and  w h i l e another  services,  additional  t o mount and  the  and e i g h t  evaluate short  agency was a b l e t o i n c r e a s e b o t h s a l a r i e s used  the  funds  for  capital  expenditures.  I n summary, t h e n o n - p r o f i t s o c i a l  service agencies  which  p a r t i c i p a t e d i n t h i s study were d i v e r s e , both i n s i z e and types of programs and s e r v i c e s which the study was indicate  s m a l l and  that,  as  a  they o f f e r e d .  p r e l i m i n a r y i n nature, result  of  the  Although  the  results  implementation  ' p r i v a t i z a t i o n ' measures, n o n - p r o f i t s o c i a l  service  the  of  agencies  a r e t u r n i n g t o gaming i n o r d e r t o r a i s e funds.  The B.C.  Gaming C o n t r o l Branch  research project. Branch  files,  analysis events  those  firm  has  i n the  Without being a b l e t o o b t a i n a c c e s s to the  i t was  i n 1982  draw any there  of  r e f u s e d to p a r t i c i p a t e  i m p o s s i b l e to conduct  agencies  and  1986.  which  a  comparative  were c o n d u c t i n g  T h e r e f o r e , i t was  gaming  i m p o s s i b l e to  c o n c l u s i o n s as t o w h e t h e r , o v e r t h e y e a r s ,  been  a  change  150  in  the  types  of  non-profit  organizations raising  money through the conduct  of  gambling  activities.  TABLE  6:12  The U t i l i z a t i o n of Those Revenues Generated through Conducting Gaming A c t i v i t i e s A d d i t i o n a l revenues have a l l o w e d s t a f f t o d e v e l o p new programs  12  A d d i t i o n a l revenues have a l l o w e d s t a f f to mount and e v a l u a t e s h o r t term programs  8  L e v e l s of s e r v i c e have not changed because a d d i t i o n a l revenues r e p l a c e d other funding cuts  9  A d d i t i o n a l revenues have e n a b l e d the agency to i n c r e a s e both l e v e l s of s e r v i c e and s a l a r i e s  1  L e v e l s of s e r v i c e d e c r e a s e d because gaming income has not been s u f f i c i e n t to r e p l a c e money l o s t as a r e s u l t of government f u n d i n g c u t s A d d i t i o n a l funds used t o  2 supplement  core f u n d i n g  1  A d d i t i o n a l funds used t o reduce agency d e f i c i t  3  A d d i t i o n a l funds used f o r c a p i t a l No of revenues e x p echange, n d i t u r e amount s generated was too s m a l l t o make a  1  difference  3  No response  4  n = 35 M u l t i p l e responses p e r m i t t e d  151  Although  the r e s u l t s i n d i c a t e d  t h a t c o n s i d e r a b l y more t h a n  half of the 3 5 agencies c u r r e n t l y become  involved  planning  since  t o become  1983  (with  involved  involved  i n gaming  several  i n 1987),  have  other  agencies  without  the co-  o p e r a t i o n of t h e B.C. Gaming C o n t r o l B r a n c h i t was a l s o not possible  to determine,  with  any  certainty,  whether  more  s o c i a l w e l f a r e p r o g r a m s were being funded t h r o u g h gaming i n 1986  than was the case i n 1982.  F o r most of t h e a g e n c i e s w h i c h  have become i n v o l v e d i n t h e  gaming i n d u s t r y , bingo and c a s i n o e v e n t s have become a v i t a l source of income. forced even  to reduce close.  reduce  agencies  agencies demand  interest  f o r service.  between  that  this  or  e q u i p m e n t , o r o f f e r and  five  was  the f a c t  they  had e x p e r i e n c e d  a n d 230 p e r c e n t .  that  i f revenues  counterbalanced  almost  a l l the  an i n c r e a s e d  had been i n c r e a s e d For over  had o c c u r r e d i n t h e f a c e  half the  of reductions i n  e i t h e r government or p r i v a t e sources.  o f t h i s i n c r e a s e d demand  even  staff,  a r e a b l e t o use t h e funds t o  L e v e l s of s e r v i c e  f u n d i n g r e c e i v e d from view  lay-off  programs.  reported that  agencies,  In  services,  the agency d e f i c i t , purchase  particular  from  or eliminate  Other  evaluate new  Of  Without such funds, many agencies would be  from  funding  bingo  f o r service, and  casinos  r e d u c t i o n s , they  152  i t is likely  may  adequately n o t have  counterbalanced  increased  operating  costs  and t h e c o s t s of  new s e r v i c e s .  The  s t a f f of t h e a g e n c i e s have s h o u l d e r e d t h e r e s p o n s i b i l i t y  for  the fund-raising.  hours i n v o l v e d has  Although,  i n some  agencies,  i n d i r e c t s e r v i c e have been r e d u c e d , o r t h e r e  been an i n c r e a s e  i n t h e w o r k l o a d s of s t a f f  due t o t h e  i n v o l v e m e n t i n f u n d r a i s i n g , f o r t h e most p a r t , t h e r e been a decline i n s t a f f morale. the  staff  has n o t  Such a development speaks to  high l e v e l s of c o m m i t m e n t f o u n d among s t a f f i n t h e non-  profit  social  service  sector.  153  Chapter V I I IMPLICATIONS  The  abandonment o f K e y n e s i a n economic t h e o r i e s i n f a v o u r o f  monetarism,  a development which has been l e g i t i m i z e d by a  neo-conservative  ideology,  most W e s t e r n w e l f a r e  has had f a r - r e a c h i n g  states.  In B r i t i s h  e f f e c t s on  Columbia,  these  developments have a f f e c t e d t h e d r a f t i n g o f s o c i a l p o l i c y and, consequently,  the d e l i v e r y o f s o c i a l  may be t h a t ,  as a r e s u l t o f c h a n g e s w h i c h a r e o c c u r r i n g  within  programs.  It  the broader economic system, and the r e s u r r e c t i o n o f  privatization deficits,  and g a m i n g a s  the s o c i a l  service  a l s o undergoing a s i g n i f i c a n t  As unemployment forced  welfare  t o seek  methods o f r e d u c i n g sector  i n British  budget  Columbia i s  transformation.  l e v e l s s o a r e d i n 1982-83, more people were income a s s i s t a n c e .  As a r e s u l t ,  a larger  p e r c e n t a g e o f t h e p r o v i n c i a l M i n i s t r y o f Human R e s o u r c e s ' budget was g i v e n over t o d i r e c t t r a n s f e r payments. t o accommodate the i n c r e a s e d  demand f o r income  r e v e n u e s were s h i f t e d away f r o m education  assistance,  t h e a r e a s o f w e l f a r e and  and the p r o v i s i o n of d i r e c t s e r v i c e s and programs  (Government of B r i t i s h Columbia, 1980-82, 1985). to reducing the  I n order  the l e v e l s o f s e r v i c e i t had p r e v i o u s l y  Ministry  altogether,  In addition  either funding  organizations  severely t o many  (B.C.G.E.U.,  154  curtailed, non-profit  1985).  or  eliminated  social  I t could  provided,  service  have  been  p r e d i c t e d t h a t t h i s c o m b i n a t i o n of e v e n t s would r e s u l t i n the non-profit  sector  coupled with,  facing  increased  i n many i n s t a n c e s ,  demands f o r  reductions  service,  i n government  funding.  By  withdrawing i t s funding,  the government appeared to  forcing  non-profit  funding  i f they were to c o n t i n u e  conservative  agencies  to  seek  a l t e r n a t i v e sources  to operate.  of  Indeed,  p o l i t i c i a n s s u g g e s t e d t h a t i f the  neo-  eliminated  s e r v i c e s were r e a l l y n e c e s s a r y , t h e c o m m u n i t y , f a m i l y c h u r c h would does n o t , supposed groups.  intervene  of  course,  to  provide  speak  a l t e r n a t i v e s are The  government was  to  them. the  Such a  issue  of  i n c l u d e d both p r i v a t i z a t i o n and  or  suggestion  whether  actually available pursuing  be  for  the  these  a course of a c t i o n  that  abandonment (Magnusson e t a l ,  1984).  A l t h o u g h the course of  the  were d i v e r s e provided. are,  number of a g e n c i e s w h i c h were s u r v e y e d research  for this  i n both s i z e and  perhaps, t a k i n g p l a c e a c r o s s  1983,  their  agencies  demand f o r s e r v i c e s . being  the  not  they  s e r v i c e s w h i c h were  being  responsible  the spectrum of  experienced  an  They c i t e d a v a r i e t y of  f o r the i n c r e a s e d  155  report  non-profit  Agency p e r s o n n e l r e p o r t e d had  the  large,  T h i s i s s i g n i f i c a n t i n t h a t the t r e n d s they  social service organizations. since  t h e s i s was  in  that  increased factors  as  demand w h i c h , i n some  instances served:  reflected  the  nature  "the p o p u l a t i o n was  longer";  "hospitals  were  of r i g h t s " ;  "more women working";  provincial  client  waiting  agency";  group  being  " s e n i o r s were  discharging  had  the  the  ageing";  "facilities  awareness of  longer  of  patients  lists";  "increased  living  sooner"; awareness  " b e t t e r programs"; " p u b l i c  "high  unemployment";  government support";  "the  "lack  economy"; and,  of "the  i n a b i l i t y of the t r a d i t i o n a l s a f e t y net to meet human needs".  In a d d i t i o n , not  only  had  there  demand f o r s e r v i c e s s i n c e 1983, t h a t they  had  been an  increase  agency p e r s o n n e l  over  70  percent  source.  Due  possible  to draw f i r m  reductions social sources,  their  funding  the  levels  agencies  from  any  one  to the l i m i t a t i o n s of the r e s e a r c h , i t i s not conclusions;  i n government  s e r v i c e agencies or  of  the  reported  been s u c c e s s f u l i n p r o v i d i n g i n c r e a s e d  of s e r v i c e . However, l e s s t h a n o n e - t h i r d of received  in  funding  t o seek  to adopt what has  however, i t may have  forced  be  that  non-profit  income f r o m a v a r i e t y o f  been d e s c r i b e d  as a  'shotgun'  approach to s e c u r i n g funds ( i . e . o b t a i n i n g s m a l l e r amounts of funding  from a g r e a t e r number of  W h i l e f u n d - r a i s i n g i s not new is,  sources).  to most n o n - p r o f i t groups, i t  perhaps, t a k i n g on g r e a t e r s i g n i f i c a n c e .  decreasing  budgets and  increased  In the  demands f o r s e r v i c e ,  agency p e r s o n n e l are becoming k e e n l y i n t e r e s t e d i n a l t e r n a t e ways of r a i s i n g  the funds n e c e s s a r y  156  face  of  many  exploring  to supplement  their  agency  budgets.  'entrepreneurial' s p i r i t , the  social  personnel,  service  Indeed,  there  are signs  that  an  born o f n e c e s s i t y , may be p e r v a d i n g  sector.  F o r example,  who a r e a s s u m i n g t h a t  some  agency  the economic system i s  u n l i k e l y t o change i n the near f u t u r e , a r e i n v e s t i g a t i n g the possibility agency  of e s t a b l i s h i n g small  with  a d d i t i o n a l revenue.  c u r r e n t l y planning  If,  non-profit  A community  the  college i s  a s e r i e s of seminars designed to provide  information regarding in  businesses to provide  the o p p o r t u n i t i e s and p i t f a l l s  organizations  becoming more  involved  "entrepreneurial".  i n f a c t , a more p r e s s i n g need t o r a i s e f u n d s i s t a k i n g  n o n - p r o f i t s o c i a l s e r v i c e a g e n c i e s i n t o new, l e s s t r a d i t i o n a l areas,  they w i l l  that w i l l  be f a c e d  w i t h a host o f c h a l l e n g i n g  require resolution.  f u r t h e r but, f i r s t ,  These i s s u e s w i l l be  issues analyzed  i t i s n e c e s s a r y t o examine the a r e a o f  ' e n t r e p r e n e u r i a l ' a c t i v i t y t h a t has been t h e f o c u s o f t h i s t h e s i s ; namely, gambling.  Gaming and the N o n - P r o f i t In the p a s t ,  Sector  many s p o r t s , s e r v i c e , r e c r e a t i o n a l o r r e l i g i o u s  groups have conducted b i n g o s , c a s i n o s raise  funds.  Secretary's  The  Annual  Office reflect  Reports  or r a f f l e s i n order to of  the P r o v i n c i a l  the f a c t t h a t , s i n c e  1979, t h e  number o f n o n - p r o f i t o r g a n i z a t i o n s  t h a t have a p p l i e d f o r , and  been g r a n t e d  such e v e n t s has  l i c e n c e s t o conduct  157  increased  (Table  7:1).  However,  i n a d d i t i o n to t h i s o v e r a l l  i n the  number of n o n - p r o f i t a g e n c i e s t h a t use  to r a i s e funds, the r e s u l t s of the r e s e a r c h m a j o r i t y of t h o s e n o n - p r o f i t  increase  gaming  events  indicate that  s o c i a l service agencies  p a r t i c i p a t e d have become i n v o l v e d s i n c e  the that  1983.  Some agency p e r s o n n e l i n d i c a t e d t h a t the proceeds from e i t h e r bingo or casinos  have been c r u c i a l t o m a i n t a i n i n g  current  l e v e l s of s e r v i c e s , as w e l l as p r o v i d i n g o t h e r b e n e f i t s . example, one has  Executive  D i r e c t o r s t a t e d t h a t " s i n c e our  been so e f f e c t i v e , the  Board of D i r e c t o r s has  For  casino  been  able  to t u r n t h e i r a t t e n t i o n away from f u n d - r a i s i n g f o r a t i m e  and  actively  the  agency".  do  some s h o r t  However,  and  long  without  the  term g o a l  planning  on-going revenue  bingo, t h i s agency "would be b a r e l y a b l e  for  from  their  to e x i s t " .  Such a development has broad i m p l i c a t i o n s , from both a moral standpoint  and  i n view of the developments w h i c h are  p l a c e w i t h i n the gaming i n d u s t r y . the broader i s s u e s of the way g e n e r a l l y , and before  moving on to c o n s i d e r  social  service  organizations  to p r o v i d e  services.  order  158  I t i s n e c e s s a r y to a d d r e s s  i n w h i c h gambling i s  whether d e v e l o p i n g  taking  perceived  the i n d u s t r y i s d e s i r a b l e ,  the r a m i f i c a t i o n s of r e l y i n g on  gaming  non-profit proceeds i n  TABLE 7:1 The Number of L i c e n c e s I s s u e d t o N o n - P r o f i t O r g a n i z a t i o n s  1979 Ticket  Lotteries  Casino  Licences  1982  F i s c a l Year Ended 1983 1984  1,394  1,495  1,696  1,802  591  543  615  656  916  1,017  1,223  1,381  Concessionaire Licences  17  1  8  7  Social  32  37  28  39  5  18  19  27  2,955  3,111  Bingo  Licences  Clubs  Agricultural  Fairs  Total  3,589  3,912  $ Millions Estimated gross revenue by organization Estimated c h a r i t a b l e d o n a t i o n s by organizations  $9.18  35.0  75.2  94.0  2.97  10.0  22.5  25.0  Licence fees collected Source:  .31  .34  .41  .56  M i n i s t r y of P r o v i n c i a l S e c r e t a r y Annual R e p o r t s  Despite the f a c t t h a t gambling throughout never  societies,  been  especially  perceived  f o r undetermined reasons, as  a  totally  widespread gambling  legitimate  f o r c e r t a i n groups of people.  have a l w a y s been a t t e m p t s imposing  has a l w a y s been  has  activity,  In a d d i t i o n ,  there  t o c o n t r o l and r e g u l a t e gambling  moral and l e g a l s a n c t i o n s .  159  by  However, i t appears t h a t  gambling  among  t h e 'upper  classes'  has n e v e r  been as  p r o b l e m a t i c as gambling among the 'lower c l a s s e s ' . (1983) p o i n t s out t h a t  i n a n c i e n t Egypt,  Martinez  the common people  who gambled too much were put t o work on the pyramids.  Ashton  (1898) c i t e s an E n g l i s h e d i c t , dated 1190, as e v i d e n c e  of the p r e v a l e n c e o f gambling among a l l c l a s s e s a t t h a t t i m e . The  e d i c t p e r t a i n e d t o the C h r i s t i a n army under the command  of R i c h a r d the F i r s t o f England and P h i l l i p o f France, d u r i n g the Crusade. the degree  I t p r o h i b i t e d "any person i n the army,  o f k n i g h t , from  beneath  p l a y i n g a t any s o r t o f game f o r  money" (Ashton, 1898; p. 13). What i s i n t e r e s t i n g about edict  i s that,  although i t prohibited  gambling  among t h e  l o w e r ranks o f the army, the two Monarchs and t h e i r of k n i g h t s r e t a i n e d the p r i v i l e g e o f p l a y i n g  this  entourage  whatever  games  o f chance they p l e a s e d .  Downes  e t a l (1976;  gambling  p.  34) a r g u e  that  the r e v i s i o n i n  l a w s , i n n i n e t e e n t h c e n t u r y England, r e f l e c t e d "the  concern o v e r t h e 'example' s e t the poor by the p r o f l i g a c y o f the r i c h ;  and t h e p e r c e p t i o n , t h e n t e n t a t i v e l y  expressed,  t h a t t h e l a t t e r m a t t e r e d l e s s , m o r a l l y o r s o c i a l l y , than the i n d u l g e n c e s o f the poor". morality  of the poor  Supposedly, was  f o r m u l a t i o n o f gaming laws.  160  t h i s concern over the  an u n d e r l y i n g t h e m e  i n the  Some  interesting  hypotheses  c a n be  g e n e r a t e d as t o t h e  p o s s i b l e reasons f o r the apparent double s t a n d a r d s which have been a p p l i e d t o the r i c h and the poor throughout h i s t o r y : ( i ) i n a n c i e n t t i m e s , gambling by the masses may have r e p r e s e n t e d a s e c u l a r i z a t i o n of r e l i g i o u s p r a c t i c e s ; the b e n e f i t  o f the a r i s t o c r a c y  spend  time gambling  their  that  (ii)  'common' people s h o u l d  i n s t e a d o f w o r k i n g ; and,  'common' people s h o u l d not expect t o improve position  through a c t i v i t i e s  of time.  opportunities  are  These  forms  double  eradicated  The argument t h a t u n l i m i t e d  undesirable,  (iii)  t h e i r economic  o t h e r than work.  s t a n d a r d s of m o r a l i t y have not been t o t a l l y the passage  i t was not t o  one  of  with  gambling the  main  j u s t i f i c a t i o n s f o r c o n t i n u e d government c o n t r o l o f the gaming industry. in  view  However, the argument appears somewhat  fallacious  o f t h e g o v e r n m e n t ' s r e c e n t move t o i n s t a l l  m a c h i n e s on c r u i s e s h i p s ; t h e p l a n s t o i n s t a l l  slot  c a s i n o s on  these same s h i p s ; and, the c o n s i d e r a t i o n b e i n g g i v e n t o "the d e s i r a b i l i t y o f p o l i c y f o r d e s t i n a t i o n r e s o r t and o r i e n t a t e d gaming a c t i v i t i e s "  In  addition  undesirability  to  issues  (Vancouver Sun, A p r i l 2, 1987).  regarding  of gambling  generally,  faced w i t h other concerns.  the d e s i r a b i l i t y  were,  i f a significant  so).  or  agency p e r s o n n e l a r e  As we have s e e n , b o t h  t i c k e t s and b i n g o have been r a t e d as r e g r e s s i v e games ( c a s i n o s a r e l e s s  tourism  lottery gambling  The q u e s t i o n s t h a t were  number o f p u r c h a s e r s o f  posed  lottery  t i c k e t s o r bingo p l a y e r s a r e persons on low incomes, and non-  161  profit these  o r g a n i z a t i o n s a r e b e i n g f o r c e d t o r e l y on funds  from  s o u r c e s as a r e s u l t o f government f u n d i n g c u t s ,  what  long-term  effects  will  this  have  on a g e n c i e s ?  d i s a d v a n t a g e d p a y i n g f o r t h e i r own s o c i a l By  encouraging  individuals  Are the  w e l f a r e programs?  t o spend what l i t t l e  money  they  have on g a m b l i n g , a r e n o n - p r o f i t a g e n c i e s c o n t r i b u t i n g t o t h e p r o b l e m s of c e r t a i n members o f t h e i r c l i e n t  groups?  O b v i o u s l y , t h e r e a r e no c l e a r - c u t answers t o these q u e s t i o n s . If,  a s L i v e r n o i s (1986) s u g g e s t s , t h e g o v e r n m e n t  rate  on l o t t e r y  distributed  tickets  to general  was l o w e r and t h e r e v e n u e s  were  revenues,  less  r e g r e s s i v e form of t a x a t i o n . argued  take-out  they  would  In a d d i t i o n ,  be a  i t may w e l l be  t h a t the numbers o f c h r o n i c poor w i l l not r e m a i n  because they a t t e n d bingo s e v e r a l t i m e s a week. a r e poor  because o f the c o n d i t i o n s p e r v a i l i n g  s o c i a l and economic s t r u c t u r e . the argument t h a t , l i k e schemes,  R a t h e r , they i n the l a r g e r  t h e r e i s substance t o  the s i x t e e n t h c e n t u r y p o v e r t y  the 'welfare  elimination  Perhaps  state'  of poverty  poor  never  as a g o a l .  had t h e  relief  complete  The p r o v i s i o n  of  o p p o r t u n i t i e s t o gamble may n o t c o n t r i b u t e t o t h e problems o f certain  groups o f people.  provide  the s e t t i n g  F o r example,  wherein  individuals  bingo  p a r l o u r s may  can s o c i a l i z e ,  and  s u p p o r t community o r g a n i z a t i o n s w h i l e they e n t e r t a i n the p r o s p e c t o f w i n n i n g some 'extra' money.  162  The  uncertainty  deterred  s u r r o u n d i n g these k i n d s of i s s u e s  some a g e n c i e s  from  becoming  involved  may have  with  gaming.  A l t h o u g h the r e s e a r c h d i d not i n v o l v e an i n - d e p t h e x a m i n a t i o n of  this  particular  a s p e c t o f the n o n - p r o f i t  sector's involvement had  concerns  survey.  came t o l i g h t  When  organization  i n gaming,  agency  service  t h e f a c t t h a t some a g e n c i e s  during the i n i t i a l  personnel  was i n v o l v e d  social  were  i n gaming,  asked  telephone  whether the  they responded  t o the  q u e s t i o n i n a number o f ways: "the Board says no, i t s a moral i s s u e " ; "the Board has adopted a p o l i c y o f no gambling, moral  issue";  "gambling  "the o r g a n i z a t i o n  doesn't  i t sa  i s opposed t o gambling";  f i t with providing  services  t o the  community"; and, "we won't take money from the poor".  Only  10 out o f 41 a g e n c i e s t h a t  indicating  that  there  had b e e n  were surveyed  responded  c o n t r o v e r s y among  by  staff  r e g a r d i n g the moral i s s u e s around gambling, and t h e s p e c i f i c s of  the issues  were n o t d i s c l o s e d .  I n some i n s t a n c e s ,  a  d i f f e r e n t i a t i o n was made between bingos and c a s i n o s ; t h a t i s , bingo  was s e e n  gambling.  as a " s o c i a l  event",  The r e c e n t c h a n g e s i n b o t h  b i n g o and t h e bingo  while casinos  were  the perceptions of  i n d u s t r y g e n e r a l l y have been d i s c u s s e d .  A l t h o u g h , a c c o r d i n g t o t h e C r i m i n a l Code, b o t h b i n g o and c a s i n o e v e n t s a r e c o n s i d e r e d gambling, i n b i n g o by t h e C a t h o l i c C h u r c h activity  t o be viewed  the l o n g  has, perhaps,  involvement caused  this  as the more benign and ' l e g i t i m a t e ' o f  the two.  163  Conducting the  bingos and c a s i n o events can be v e r y l u c r a t i v e and  money  Directors  very may  appealing.  initially  While  members  o f Boards of  be r e l u c t a n t t o become i n v o l v e d i n  gaming e v e n t s , they may be won over by the f i n a n c i a l r e t u r n s . Although  gambling  g e n e r a l l y , and, i n p a r t i c u l a r ,  p r o f i t s o c i a l s e r v i c e sector involvement  t h e non-  i n the a c t i v i t y ,  p r e s e n t no moral o r o t h e r i s s u e s f o r many i n d i v i d u a l s , may c h o o s e n o t t o d e a l w i t h any o f t h e q u e s t i o n s  may  others simply  because they p e r c e i v e no o t h e r v i a b l e methods o f r a i s i n g the needed revenues. afford  One respondent commented t h a t  t o worry about t h e morals of gambling,  "we  cannot  i t b r i n g s us  needed funds w i t h the l e a s t p o s s i b l e e x p e n d i t u r e o f t i m e and effort".  S i n c e people a l w a y s have and a l w a y s w i l l gamble, any a t t e m p t s to d e t e r t h e a c t i v i t y a l t o g e t h e r may prove as u n s u c c e s s f u l as Prohibition. lotteries,  Because  people  enjoy  gambling  they have l o n g been a p o p u l a r  games  like  way f o r n o n - p r o f i t  groups and r e l i g i o u s o r g a n i z a t i o n s , as w e l l as the s t a t e , t o r a i s e funds. T h e r e f o r e , an argument c o u l d be made t h a t t h e r e a r e no r e a s o n s , o t h e r than those o f a moral n a t u r e , profit  social  opportunities  s e r v i c e o r g a n i z a t i o n s should f o r people  t o gamble.  whether or not n o n - p r o f i t s o c i a l  why non-  not p r o v i d e t h e  However,  the i s s u e o f  s e r v i c e agencies  should  become i n v o l v e d i n t h e gaming i n d u s t r y i s c o m p l i c a t e d by the  164  fact  that  the  responsibility and  government  has  f o r many s o c i a l  private sector.  moved  to  shift  the  s e r v i c e s onto the n o n - p r o f i t  I t w o u l d a p p e a r t h a t some  non-profit  agency p e r s o n n e l f e e l t h a t they have no c h o i c e as t o whether or not t o be i n v o l v e d provide  i n gaming i f they w i s h t o c o n t i n u e t o  s e r v i c e s t o the groups f o r which t h e government  no l o n g e r a c c e p t r e s p o n s i b i l i t y . of  'privatization'  moral  At  I t i s , perhaps, the wedding  and gaming t h a t  represents  the paramount  issue.  t h e same  time  organizations sector)  that  increased  numbers  ( b o t h w i t h i n and o u t s i d e  have become i n v o l v e d  i n gaming  of  non-profit  the s o c i a l i n order  direction  o f gaming  in British  a m b i g u o u s and i t s a c t i o n s  Columbia  contradictory.  service  t o support  t h e i r v a r i o u s a c t i v i t i e s , the government's p o s i t i o n the  will  regarding has  While  been  lottery  t i c k e t s a l e s a r e promoted on the b a s i s t h a t the funds s u p p o r t community o r g a n i z a t i o n s  and programs,  large  u n d i s t r i b u t e d a t t h e end o f e a c h y e a r . million  sums  H o w e v e r , o v e r $13  was removed from t h e L o t t e r y Fund and " l e n t "  B.C. L o t t e r y was s t i l l  Corporation  outstanding  Lottery Corporation  E a r l i e r t h i s year, installed  f o r start-up  remain  expenses.  t o the  The amount  as o f March 31, 1986 ( B r i t i s h Columbia  Annual Report, 1986).  when i t was proposed t h a t s l o t machines be  on g o v e r n m e n t - o w n e d  cruise  ships,  p r o m i s e d t h a t the money would be d i s b u r s e d  165  the Premier  to c h a r i t i e s .  In  May,  1987,  he s a i d "he  (the) p r o f i t s 13,  1987).  ...  was  would go  According  to  wrong when he p r o m i s e d ... to c h a r i t i e s " the  that  (Vancouver Sun,  Attorney  General,  May  "for  the  moment, the p r o f i t s w i l l be put toward the c o r p o r a t i o n ' s and  the $400,000 r e n o v a t i o n  board" (Vancouver Sun,  The  May  cost f o r b u i l d i n g mini-casinos 13,  while  eliminating w i t h one  the  government  grants  to  the  1987).  other. profit  is  reducing  non-profit  social  services service  The  into general  s h i f t i n g of l o t t e r y  s e c t o r and  problematic.  i n t o general For  example,  f u n d s away f r o m  revenues may Livernois  used to support d e s i g n a t e d  a c t i v i t i e s and is  sector  revenues, w i t h  not,  the in  slightly  groups p r o p o r t i o n a t e l y  i n that  r e c r e a t i o n a l or  i t benefits  more than low  However,  what  i s problematic  apparent  i n recent  regarding  the gaming i n d u s t r y .  high  i s the  duplicity  g o v e r n m e n t a n n o u n c e m e n t s and  substantial  both the  components of the  casino  166  itself, that  cultural profits income  income groups" (p.  Over the p a s t f i v e y e a r s , bingo and  non-  revenues,  programs, "the e x p e n d i t u r e of l o t t e r y  progressive  the  (1986) argues  when l o t t e r y funds are not t r a n s f e r r e d i n t o g e n e r a l are  and  hand, i t i s busy s h i f t i n g gaming revenues away from  t h e n o n - p r o f i t s e c t o r and  but  on  s t a t e m e n t s made by these s e n i o r C a b i n e t m i n i s t e r s suggest  that  be  debt  that  10). is  actions  changes have a f f e c t e d gaming  industry  and  the nature  earlier  of the developments  chapter.  reflected  The  impact  i n the estimated  were  of these  gross  outlined  developments i s  r e v e n u e and c h a r i t a b l e  d o n a t i o n f i g u r e s o f the n o n - p r o f i t o r g a n i z a t i o n s b i n g o s and c a s i n o s fiscal  (Table  7:1).  i n an  involved i n  F o r example, a t the end o f  1982-83, o r g a n i z a t i o n s r a i s e d $75.2 m i l l i o n and, a f t e r  meeting expenses, the groups were l e f t w i t h $22.5 m i l l i o n f o r their charities.  However, i n f i s c a l 1983-84, and i n s p i t e o f  g r o s s revenues o f $94 m i l l i o n , w i t h only in  the o r g a n i z a t i o n s  $25 m i l l i o n a f t e r expenses.  net revenues,  despite  were  The m i n i m a l  an a l m o s t $20 m i l l i o n  left  increase  increase i n  gross revenues, r e f l e c t s the f a c t t h a t groups p a i d out l a r g e r prizeboards  The of  as the bingo i n d u s t r y became more c o m p e t i t i v e .  government i s a b l e the n o n - p r o f i t  flow  s e c t o r and, t h e r e f o r e ,  t o those groups.  control  t o c o n t r o l and c u r t a i l the a c t i v i t i e s  P r e v i o u s l y the government was a b l e t o  the a c t i v i t i e s  dispensing  or  the revenues which  of the n o n - p r o f i t  withholding  grants  or  sector  through  contracts.  By  e n c r o a c h i n g i n t o an a r e a p r e v i o u s l y dominated by n o n - p r o f i t s w h i l e , a t the same t i m e , regulation,  curtailing their activities  the government i s e n s u r i n g  through  that agencies  will  a l w a y s be dependent on the government, as e i t h e r a d i r e c t o r indirect  source o f funds.  been a b l e non-profit  I n the p a s t ,  the government has  to c o n t r o l the types of s e r v i c e provided  by t h e  s e c t o r by r e f u s i n g t o f u n d p r o g r a m s w h i c h were  less 'politically'  attractive.  167  I t i s conceivable  that, i n  future,  gaming  licences  may  only  be  granted  to  c h a r i t a b l e o r g a n i z a t i o n s w h i c h a r e deemed t o be 'worthwhile' organizations  or  'necessary'  may  a l w a y s be  services.  those  providing  Non-profit  f o r c e d to sway i n the  political  winds.  The  f i n a l p o i n t i s perhaps the most s t a r t l i n g .  As Table  7:1  i n d i c a t e s , each y e a r government revenues from gaming  are  increasing.  I t i s e x p e c t e d t h a t government revenues  increase  an  to  particular,  the  even  greater  increased  degree  as  a  c o s t of b i n g o and  result casino  will  of,  licences  t o n o n - p r o f i t o r g a n i z a t i o n s ; the government monopoly on paper; the casinos.  i n t r o d u c t i o n of s l o t Insofar  remain  involved  necessary  to  for  the  government gets direct  no  the  longer  organizations  revenue  non-profit  i n gaming  provide  government w i l l profit  as  s e r v i c e s , as  agencies  i n order  social  to  will  continue  raise  services  will  continue  the  for  b i t e s of  the  could  w e l l as r e d u c i n g  funding  the  these nonincreasing  say  cherry".  to  money  which  to provide  One  bingo  eventually  accept r e s p o n s i b i l i t y ,  government. "two  m a c h i n e s ; and,  in  By  that  the  reducing  t o the  non-  p r o f i t s e c t o r , the government has c u r t a i l e d i t s e x p e n d i t u r e s . When n o n - p r o f i t o r g a n i z a t i o n s t u r n to gaming, they become a source of revenue, w h i l e  simultaneously  p r o v i d i n g the  s o c i a l s e r v i c e s w h i c h the government has abandoned.  168  vital  As  an i n c r e a s i n g  sought  number o f n o n - p r o f i t  alternative  reductions  sources  of  revenue  i n government f u n d i n g ,  been met, t o a s i g n i f i c a n t through gambling. conservative privatization  (i.e.,  being  should  be m a k i n g  The  effort  of  generated  with  regard  of r e s p o n s i b i l i t y  s e r v i c e s onto the n o n - p r o f i t  c h a r i t a b l e groups.  result  i n view o f the neo-  taken  social  revenues a r e d i s b u r s e d  a  d e g r e e , by r e v e n u e s  the s h i f t i n g  every  as  have  t h e i r r e q u i r e m e n t s have  I t would appear t h a t  approach  organizations  sector),  to ensure  to non-profit  f o r many  the government  that  social  to  a l l gaming  s e r v i c e or other  C l e a r l y , i t i s n e g l e c t i n g t o do so.  C h a l l e n g e o f the 'New R e a l i t y '  In a d d i t i o n t o the v a r i o u s problems o u t l i n e d above, t h e r e a r e some  more  general  organizations activities.  concerns  raising  associated  funds  For example,  through  with  entrepreneurial  i f a "non-profit"  e s t a b l i s h e s a small business i n order  t o make d e c i s i o n s  profitability? wages be h i g h e r that r a i s i n g  based  i n the face of  on t h e need  I f the e n t e r p r i s e  organization  t o generate funds, can  the agency s u s t a i n i t s h u m a n i t a r i a n v a l u e s having  non-profit  to  maintain  i s profitable,  should  than minimum wage, e s p e c i a l l y i n the event  s a l a r i e s reduces the p r o f i t  margin?  I f the  e n t e r p r i s e were t o become h i g h l y p r o f i t a b l e , would the agency be  e x p l o i t i n g i t s employees i f only  paid?  t h e minimum wage  I s p a y i n g minimum wage j u s t i f i a b l e on the b a s i s  the agency i s both u s i n g  profits  169  to provide  social  was that  services  and  c r e a t i n g jobs?  At t h i s p o i n t , these p e r p l e x i n g  questions  remain unanswered.  However,  there  are various  positive  a s p e c t s t o a non-  p r o f i t o r g a n i z a t i o n becoming i n v o l v e d i n o p e r a t i n g enterprise.  F o r example,  any b u s i n e s s  a business  may be developed on  the b a s i s of p r o f i t - s h a r i n g by the agency and employees. addition,  as n o n - p r o f i t  upon government f u n d i n g controls),  they w i l l  r o l e on b e h a l f  organizations  In  become l e s s dependent  (and, l e s s s u s c e p t i b l e t o government be a b l e  of t h e i r  t o adopt a s t r o n g e r  client  group.  advocacy  As n o n - p r o f i t  social  s e r v i c e a g e n c i e s move i n t o the b u s i n e s s s e c t o r , t h e i r e f f o r t s will  be f o r t i f i e d  approach  by t h e a b i l i t y  to both  business  and  t o be c r e a t i v e i n t h e i r the d e l i v e r y  of  social  services.  At  t h e same t i m e ,  while  some s o c i a l  s e r v i c e workers  may  a c c e p t what perhaps may be thought o f as a " c h a l l e n g e " ,  and  seek  may  out n o n - t r a d i t i o n a l ways o f r a i s i n g  f e e l t h a t such a development w i l l values  o f the agency.  funds,  others  compromise the i d e a l s and  I n such an i n s t a n c e ,  i t i s possible to  p r e d i c t a c l a s h o f i d e o l o g i e s - between those i n d i v i d u a l s who a c c e p t the c h a l l e n g e and  created  by the s o - c a l l e d 'New R e a l i t y ' ,  those who do not.  I n summary, i t i s c l e a r t h a t  170  the a d o p t i o n of a s t r a t e g y of  privatization  - one  of m o n e t a r i s t simply  the  of the t a c t i c s f l o w i n g  economic p o l i c i e s  t r a n s f e r of  - has  involved  adoption  more t h a n  f o r the p r o d u c t i o n  of  s o c i a l s e r v i c e s from the p u b l i c to the p r i v a t e r e a l m w i t h  the  government  continuing  Privatization for  responsibility  from the  has  to  financial  i n v o l v e d a measure of  many n o n - p r o f i t been reduced  in real  Rather  than d i s c o n t i n u i n g have  terms o r  support.  "abandonment" s i n c e ,  s o c i a l service agencies,  either  organizations  provide  funding  withdrawn  altogether.  t h e i r a c t i v i t i e s , many  chosen  to  secure  has  non-profit  funding  through  c o n d u c t i n g gambling a c t i v i t i e s .  This  d e v e l o p m e n t r a i s e s a number of  implications.  For example, can  traditionally to a new  relied  on  important issues  p r i v a t e agencies,  government f i n a n c i a l  " e n t r e p r e n e u r i a l " environment?  and  which have  support,  I f they do,  adapt  how  will  they r e s o l v e the moral c o n f l i c t embedded i n the c l a s h between the  business  service  objective  objective  of  of  p r o f i t a b i l i t y and  answering  unmet  the  social  needs?  More  i m p o r t a n t l y , can p r i v a t e n o n - p r o f i t o r g a n i z a t i o n s r e s o l v e moral and they do  practical  so,  dilemmas a s s o c i a t e d  t o what e x t e n t  are  with  gambling?  they u n w i t t i n g l y  the government's r e s p o n s i b i l i t y  to p r o v i d e  refuses  to  use  disadvantaged?  the  into  discharging  of revenue  t h e c o f f e r s of a g o v e r n m e n t  money  These k i n d s  171  to  meet  the  of q u e s t i o n s  If  s e r v i c e s to those  i n need w h i l e , i r o n i c a l l y , a c t i n g as the g a t h e r e r s which i s channelled  the  needs deserve  of  that the  further  c o n s i d e r a t i o n and r e s e a r c h ,  particularly  i f the e x p e r i e n c e of  non-profit  in  Columbia  organizations  r e f l e c t i o n of the s i t u a t i o n  British  i n other  172  provinces.  is  but  a  BIBLIOGRAPHY A l l e n , R.C. and Rosenbluth, G. (Eds.), (1986). 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A S o c i a l C o n t r a c t o r S o c i a l i s m ? , In Richards, J . and K e r r , D. (Eds.), Canada, What's L e f t ? A l b e r t a : Newest Press Perryman, G. (1984). P r i v a t i z a t i o n - What Does I t Mean? B r i t i s h Columbia: S o c i a l Planning and Research C o u n c i l Piven, F.F. and Cloward, R.A. (1971). Regulating the Poor: The Functions of the Welfare State. New York: Pantheon Books Piven, F.F. and Cloward, R.A. (1982). War. New York: Pantheon Books P o l a n y i , K. (1964). Boston: Beacon P r e s s  1984.  New  Class  The Great T r a n s f o r m a t i o n .  Pound, J . (1971). Poverty and London: Longman Group L t d . Province, The. July 2 2  The  B.C.  A  181  Vagrancy  i n Tudor  Bingo Battleground.  England.  Redish, A., Rosenbluth, W., and Schworm, W. (1986). Provincial Fiscal Policies. I n A l l e n , R.C. a n d R o s e n b l u t h , G. 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Public Opinion, Ideology London: Routledge & Kegan Paul  T e r r e l l , P. and Kramer, R. (1984). Nonprofits. Public Welfare, 4_2(1),  C o n t r a c t i n g with 31-37  Therborn, G. and Roebroek, J . (1986). The I r r e v e r s i b l e Welfare S t a t e : I t s Recent Maturation, I t s Encounter with E c o n o m i c C r i s i s , and i t s F u t u r e P r o s p e c t s . I n t e r n a t i o n a l J o u r n a l of H e a l t h Services, 16, 319-337 Titmuss, London:  R.M. (1977). Welfare and Society. Heinemann E d u c a t i o n a l Books L t d .  183  Titmuss, London:  R.M. (1958). Essays on 'The Unwin University Books  Welfare  State'.  T u r n e r , F.J. and T u r n e r , J.C. (1981). C a n a d i a n S o c i a l Welfare. Ontario: C o l l i e r MacMillan Canada, Inc. Unknown Author. (1771). The L o t t e r y display'd, or the Adventurer's Guide; Showing The Origin, Nature and Management of the State L o t t e r y : the Errors and Losses I n c i d e n t to the Drawing, Registering and Examining: the Method of Guarding A g a i n s t t h e i r p e r n i c i o u s E f f e c t s ; and of r e c o v e r i n g P r i z e s , h i t h e r t o sunk t h r o u g h i m p e r f e c t I n t e l l i g e n c e , o r L o s s of Tickets?" Also ~The Nature of Insuring T i c k e t s , With Rules f o r eliminating the Premium, at any Period of the Drawing: to Which i s Added, A Concise View of a l l the State L o t t e r i e s to the present Time. London: A. C a l d w e l l and Co. Vancouver Sun, The. Fired. Februry 6  1985.  Chief of B.C.  Vancouver Sun, The. Paperwork. March 8  1985.  C h a r i t i e s Lose Tax  V a n c o u v e r Sun, The. Lawyer. March 22  1985.  Lottery  Lottery  Ads  Branch  Breaks i n  Lured  Vancouver Sun, The. L e v e l i n B.C. April  1985. 15  L o t t e r y Fever Reaching  Vancouver Sun, The. Way. A p r i l 15  1985.  B.C.  Accused:  Epidemic  Has to Pay to Go I t s  Own  Vancouver Sun, The. 1985. L o t t e r y Disease Attacks Well-Being of Province. April 2 6 Vancouver Sun, The. 1985. f o r Bingo Laws. A p r i l 27  0 f o r Overhaul Eyed by Chabot  Vancouver Sun, The. Illegalities. April  1985. 30  Chabot Seeks Proof of Bingo  Vancouver May 17  1985.  Sun, The.  Would You  184  Gamble i n Cariboo?  Vancouver May 9  Sun, The.  1985. Another Way t o Prey on the Poor.  Vancouver  Sun, The.  1985. Gambling  Goldrush.  May 17  Vancouver Sun, The. Submitted. May 17  198 5.  Bingo Law breaking Allegations  Vancouver Sun, The. P r o f i t s . August 3  1985.  Welfare Week Spins Biggest Bingo  Vancouver Sun, The. 1985. L i t t l e C h a r i t i e s Feeling the Pinch as Huge H a l l s Draw The Players. August 3 Vancouver Sun, The. 1985. 32 Bingo Charities Suspended i n B.C. Gaming Rules V i o l a t i o n s . September 24 Vancouver Sun, The. September 28 V a n c o u v e r Sun, The. B i n g o . November 5 Vancouver Sun, The. November 9  1985.  Bingo Operators Angry  1985. T h e R e c o v e r y  Diet:  B o o z e and  1985. New Rules f o r Bingo Drawn Up.  Vancouver Sun, The. 1985. Chamber of Commerce Resort Casinos. December 12 Vancouver Sun, The. Lunacy. December 13  a t Penalty.  1985.  Urges  Casino Idea i s H y p o c r i t i c a l  Vancouver Sun, The. 1985. Senators F e a r Gambling Open Door. December 12 Vancouver Sun, The. 1986. We've Become a Nation of Sore Losers. January 13 Vancouver A p r i l 15  Sun, The.  1986. Gambling  185  Watch Claimed.  B i l l to  Vancouver Sun, The. 198 6. Gambling Funds. May 3  Charities Fear Loss of  Vancouver Sun, The. 1986. McCarthy Throws Wrench i n t o B.C.'s Wheels of Fortune. May 31 Vancouver Sun, The. 1986. Obey the Law, June 7  McCarthy Simply T e l l s Gamblers:  Vancouver Sun, The. 1986. New Worried Operators Say. June 12  Bingo Rules a Bust,  Vancouver Sun, The. June 13  1986.  New  B.C. Casino Rules to Stay.  Vancouver Sun, The. July 2 5  1986.  Bettors Abandon Casinos.  Vancouver Sun, The. 1986. Gambling Casinos Planned on B.C. Ferry Run to Seattle. September 18 Vancouver Sun, The. Booster. August 9  1986.  Vancouver Sun, The. 1986. Suggests. September 5  L i g h t s Turned Out on Bingo  Expo D e f i c i t on Target, Premier  Vancouver Sun, The. 1986. F e r r y Gambling Plan a H i t With Casino Firm. September 19 Vancouver Sun, The. 1986. B.C.'s Ship Casino Plans Face Tough Odds i n U.S. September 29 Vancouver Sun, The. Says. October 9  1986.  Gambling a Bad Deal, Harcourt  Vancouver Sun, The. October 10  1986.  An Open Door f o r the Mob.  Vancouver, Sun, The. 1986. Slot Machine. October 30  New  186  L o t t e r i e s Work L i k e  Vancouver Sun, The. 198 6. Under the B(Branch), Charity: Legion Gives $614,000 to a i d Others. December 18 Vancouver Sun, The. 1986. Dealt Them Out. October 15  Charities Claim Gambling  Rules  Vancouver Sun, The 1986. Bingo, Car Washes Help Give Extra Cash t o S c h o o l s . October Vancouver Sun, The. Urges C i t y . January  1987. 14  Review Casino Rules, Planner  Vancouver Sun, The. Plan. January 17  1987.  Cleric Attacks Ferry  Vancouver Sun, The. B.C. F e r r y Casinos. Vancouver Sun, February 4  The.  1987. Premier Says No January 23 1987.  Policy on  Dice to  Gambling  Vancouver Sun, The. 1987. Gambling, Labour on B.C. B u s i n e s s 'Wish L i s t ' . F e b r u a r y 19 Vancouver Sun, The. Input. March 13  1987.  Vancouver Sun, The. 1987. Gaming Laws Will' Be Eased.  New  Sun,  The.  1987.  Vancouver Sun, The. 1987. Under New Rules. A p r i l 2  Clarified.  Restraints  Gaming Chief Wants Public  Casino Operator March 18  Vancouver Sun, The. 1987. Well-Mannered Opening Night of F i r s t Vancouver Casino. Vancouver March 26  Gambling  Gambling  Crowd Attends March 23  Hold Your Bets, Let's Debate I t .  Charity Casinos Get More Money  187  Vancouver Sun, The. 198 7. B e t t i n g L i m i t R i s i n g t o $5.  Strapped April 3  Charities Pleased  Vancouver Sun, The. May 6  1987. C h a r i t i e s Seek Casino Cash  Vancouver Sun, The. May 6  1987. C a s i n o s on t h e High Seas  Warren, C.B. (1981). New Forms o f S o c i a l C o n t r o l . B e h a v i o u r a l S c i e n t i s t , 2 4 ( 6 ) , 724-740  American  W e d d e l l , K. (1986). P r i v a t i z i n g S o c i a l Services i n the U.S.A. S o c i a l P o l i c y and Ad m i n i s t r a t i o n , 2_0(1), 14-27 Weinstein, D. and D e i t c h , L. (1974). The Impact of L e g a l i z e d Gam b l i n g : The S o c i o e c o n o mic C o n s e q u e n c e s o f L o t t e r i e s a n d O f f - T r a c k B e t t i n g. New Y o r k : Praeger Publishers Wineburg, R.J. (1984). Pulling Together or Tearing Apart: Birds o f a Feather Must Choose. Public Welfare, 4 2 ( 3 ) , 26-30 Wineman, S. (1984). The P o l i t i c s of Human Services: R a d i c a l A l t e r n a t i v e s t o the W e l f are State. Montreal: Black Rose Books Wolfe, D.A. (1984). The Rise and Demise of the Keynesian Era i n Canada: Economic Policy, 1930-1982, i n Cross, M.C. and Kealey, G.S. (Eds.), Modern Canada: 1930-1980. Toronto: McClelland and Steward  188  APPENDIX 1  189  APPENDIX 2  191  IF YOU WISH TO COMPLETE THIS QUESTIONNAIRE ANONYMOUSLY, YOU MAY LEAVE THIS SECTION BLANK. Name o f N o n - P r o f i t  Agency:  May I c o n t a c t you i f I r e q u i r e any a d d i t i o n a l i n f o r m a t i o n : Yes  No  ( I f y e s ) , name o f C o n t a c t Person:  In what y e a r d i d your agency b e g i n I s t h e agency  operating?  a branch o f a n a t i o n a l o r g a n i z a t i o n ? a branch o f a p r o v i n c i a l o r g a n i z a t i o n ? an autonomous agency?  B r i e f l y s p e c i f y the k i n d s o f p r o g r a m s / s e r v i c e s t h a t a r e o f f e r e d and t h e group t o whom they a r e t a r g e t t e d : Program  T a r g e t group  T o t a l Number o f Programs What was the t o t a l number o f i n d i v i d u a l s s e r v e d by a l l the agency programs d u r i n g your l a s t a c c o u n t i n g y e a r ? How many f u l l - t i m e s t a f f , both c l e r i c a l and p r o f e s s i o n a l , a r e employed by t h e o r g a n i z a t i o n ? How many p a r t - t i m e s t a f f , both c l e r i c a l and p r o f e s s i o n a l , a r e employed by the o r g a n i z a t i o n ? How many v o l u n t e e r s a r e used on a r e g u l a r b a s i s ? 192  What was t h e t o t a l annual budget f o r a l l programs o f f e r e d by the agency d u r i n g the f i s c a l y e a r 1985/86 ( o r the c a l e n d a r y e a r 1986?) P l e a s e p r o v i d e a breakdown o f the above f i g u r e by source (a b e s t e s t i m a t e w i l l be s u f f i c i e n t ) : P r o v i n c i a l government purchase o f s e r v i c e c o n t r a c t s P r o v i n c i a l government annual core f u n d i n g  grants  F e d e r a l government purchase o f s e r v i c e c o n t r a c t s F e d e r a l government annual core f u n d i n g  grants  Municipal grants G r a n t s from p h i l a n t h r o p i c t r u s t s Client  fees  Casino  licenses  Bingo  license  L o t t e r y Fund Senior L o t t e r i e s Association Raffles Donations  from p r i v a t e i n d i v i d u a l s  Donations  from p r i v a t e b u s i n e s s e s  Donations from o t h e r n o n - p r o f i t groups. P l e a s e l i s t the agency.  Donations from s e r v i c e o r g a n i z a t i o n s (e.g. The L i o n s C l u b s , Kinsmen, R o t a r y ) . P l e a s e l i s t the s e r v i c e o r g a n i z a t i o n .  Other ( p l e a s e s p e c i f y )  TOTAL  193  i  S i n c e 1983, has your agency e x p e r i e n c e d a r e d u c t i o n i n f u n d i n g from any of the sources mentioned above? Source  % Reduction  S i n c e 1983, has your agency e x p e r i e n c e d an i n c r e a s e d demand for service? E s t i m a t e d % i n c r e a s e i n demand i n 1984 (over 1983) E s t i m a t e d % i n c r e a s e i n demand i n 1985 (over 1984) E s t i m a t e d % i n c r e a s e i n demand i n 1986 (over 1985) In your judgement, has the agency s i g n i f i c a n t l y l e v e l s o f s e r v i c e s s i n c e 1983? T a r g e t group  increased i t s  %^ I n c r e a s e  In y o u r o p i n i o n , what i s the major reason(s) f o r t h i s increase?  In your judgement, has the agency s i g n i f i c a n t l y decreased i t s l e v e l s o f s e r v i c e s s i n c e 1983? T a r g e t group  %^ Decrease  194  In your o p i n i o n , decrease?  what  i s the major  reason(s)  When d i d s t a f f , members o f t h e a g e n c y , r a i s i n g money through -  for this  or others  begin  Year  H o l d i n g c a s i n o events H o l d i n g bingo games Conducting r a f f l e s or l o t t e r i e s Selling Lottery Tickets  P l e a s e i n d i c a t e what prompted the i n d i v i d u a l s i n v o l v e d t o b e g i n r a i s i n g money through h o s t i n g bingo o r c a s i n o act i v i t i e s : The agency c o u l d not o b t a i n f u n d i n g from any o t h e r source The agency l o s t p a r t o r a l l o f i t s p r o v i n c i a l funding  _  The agency l o s t p a r t o r a l l o f i t s f e d e r a l funding  _  The agency l o s t p a r t o r a l l o f i t s p r i v a t e f u n d i n g The agency r e t a i n e d i t s l e v e l s o f government f u n d i n g but wished t o augment a v a i l a b l e funds The agency r e c o g n i z e d a s p e c i f i c need and designed a new program, but was r e f u s e d government f u n d i n g f o r the new s e r v i c e Other/Remarks  195  _  Who i s i n v o l v e d i n the agency's fund r a i s i n g e f f o r t s : Staff _ Members o f the agency Clients Volunteers P r o f e s s i o n a l fund r a i s e r s  How d i d you, the s t a f f , o r o t h e r s i n v o l v e d w i t h your agency, become aware o f the o p p o r t u n i t y t o r a i s e funds through gambling o r l o t t e r y a c t i v i t i e s ?  I f you began t o r a i s e money through h o l d i n g gambling events because o f r e d u c t i o n s i n f u n d i n g , p l e a s e answer the next q u e s t i o n ; i f n o t , p l e a s e l e a v e blank and c o n t i n u e . Have any f u n d i n g r e d u c t i o n s been a d e q u a t e l y c o u n t e r b a l a n c e d by revenues gained by c o n d u c t i n g gambling a c t i v i t i e s : Yes  No  Comments:  196  What e f f e c t , i f any, has t h e h o l d i n g o f gambling e v e n t s had on the s t a f f o f the agency? S t a f f hours i n v o l v e d i n d i r e c t s e r v i c e a r e reduced because o f s t a f f i n v o l v e m e n t i n fund r a i s i n g A d e c l i n e i n s t a f f morale An improvement i n s t a f f morale C o n t r o v e r s y among s t a f f r e g a r d i n g m o r a l issues I n c r e a s e d w o r k l o a d s f o r s t a f f due t o t h e i r i n v o l v e m e n t i n fund r a i s i n g I n c r e a s e s i n f u n d i n g a l l o w e d agency t o h i r e more s t a f f Other, p l e a s e  explain/comments:  What e f f e c t would l o s i n g t h e revenues from gaming have on the agency?  What e f f e c t , i f any, has h o s t i n g gambling e v e n t s had on t h e l e v e l o r types o f s e r v i c e s which the agency o f f e r s ? I n c r e a s e d revenues have a l l o w e d s t a f f t o d e v e l o p new programs I n c r e a s e d revenues have a l l o w e d s t a f f t o mount s h o r t - t e r m i n n o v a t i v e programs i n o r d e r t o a s c e r t a i n t h e i r effectiveness The l e v e l s o f s e r v i c e have not changed because the a d d i t i o n a l income r e p l a c e d o t h e r f u n d i n g c u t s The l e v e l s o f s e r v i c e have d e c r e a s e d because the income g e n e r a t e d through gambling e v e n t s has n o t been s u f f i c i e n t t o r e p l a c e money l o s t through government f u n d i n g c u t s Other, p l e a s e s p e c i f y :  197  Does your agency donate any of the proceeds t h a t a r e r a i s e d through gaming t o o t h e r n o n - p r o f i t a g e n c i e s ? I f so, would you p l e a s e l i s t them.  Can you l i s t any o t h e r a g e n c i e s t h a t , to your knowledge, have t u r n e d t o a l t e r n a t i v e sources o f f u n d i n g a f t e r e x p e r i e n c i n g cut backs i n f u n d i n g from p r o v i n c i a l o r f e d e r a l government sources? Agency  A l t e r n a t i v e Source of Funds (e.g. h o s t i n g g a m b l i n g a c t i v i t i e s , o t h e r f u n d - r a i s i n g a c t i v i t i e s , more emphasis put on p r i v a t e d o n a t i o n s , i m p l e m e n t i n g a fee s t r u c t u r e )  Can you l i s t any o t h e r a g e n c i e s t h a t , to your knowledge, have been f o r c e d t o c l o s e a f t e r e x p e r i e n c i n g c u t backs i n f u n d i n g from p r o v i n c i a l o r f e d e r a l government s o u r c e s ? Agency  Approximate Date of C l o s u r e  198  THANK YOU FOR TAKING THE TIME TO COMPLETE THE QUESTIONNAIRE. IF THERE ARE ANY ADDITIONAL COMMENTS YOU FEEL YOU WOULD LIKE TO MAKE, PLEASE FEEL FREE TO DO SO.  199  

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