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National urban growth strategy in Canada Cameron, Kenneth Duncan 1970

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NATIONAL URBAN GROWTH STRATEGY IN CANADA by KENNETH DUNCAN CAMERON B.A., Bishop's U n i v e r s i t y , 1966 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n the School of Community and Regional Planning We accept t h i s t h e s i s as conforming to the required standard ) The U n i v e r s i t y of B r i t i s h Columbia A p r i l , 1970 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree tha permission for extensive copying of this thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Kenneth Duncan Cameron Department of Community and Regional Planning The University of British Columbia Vancouver 8, Canada April 30, 1970 i i A b s t r act In t h i s study, an attempt i s made to discover evidence of the presence of a national strategy f o r urban growth during the period from 1945 to 1969. Data f o r t h i s examination c o n s i s t s of the fe d e r a l throne speeches of the pe r i o d , a s e l e c t i o n of major pieces of fede r a l l e g i s l a t i o n , and the debates i n the House of Commons concerning t h i s l e g i s l a t i o n . A basis f o r d i s c u s s i o n i s l a i d by an examination of the nature of urban growth s t r a t e g i e s , the s t a t e of theory e x p l a i n i n g urban and regional development, and a b r i e f d i s c u s s i o n of the experience of selected f o r e i g n countries i n national urban growth s t r a t e g y . Results of the examination of the speeches, l e g i s l a t i o n , and debate are pres-ented i n d e t a i l i n two appendixes, while more general summaries appear i n the main body of the paper. A conception of the fragmented nature of the phenomena studied emerges i n r e l a t i o n to both housing and urban development p o l i c y , and area and regional development p o l i c y . However, a steady broadening o f the perspective of the federal government i s noted i n both areas, which i s a p r e r e q u i s i t e f o r an e f f e c t i v e national strategy. I t i s concluded that these two areas of federal p o l i c y concerning the d i s t r i b u t i o n of a c t i v i t y i n space have y et to be merged i n t o a comprehensive s t r a t e g y , and that the government has not yet considered introducing a regional dimension i n t o the e n t i r e range of i t s a c t i v i t i e s . Thus, the evo l u t i o n of national urban strategy i n Canada continues, and suggestions f o r future research are o f f e r e d . 111 TABLE OF CONTENTS CHAPTER PAGE •I INTRODUCTION: J U S T I F I C A T I O N , SCOPE AND PARAMETERS OF THE STUDY 1 A. I n t r o d u c t i o n B. R e a s o n s f o r t h e S t u d y C. H y p o t h e s i s D. S c o n e o f t h e S t u d y E. A s s u m p t i o n s and D e f i n i t i o n s (1) A s s u m p t i o n s (2) D e f i n i t i o n s F. O u t l i n e o f t h e R e m a i n d e r o f t h e S t u d y I I THEORIES OF URBAN AND REGIONAL GROWTH AND THEIR POLICY IMPLICATIONS 13 A. I n t r o d u c t i o n B. T h e o r i e s o f U r b a n and R e g i o n a l D e v e l o p m e n t (1) T h e m a t i c S t a t e m e n t (2) C e n t r a l P l a c e T h e o r y (3) C l a s s i c a l I n d u s t r i a l L o c a t i o n T h e o r i e s (4) B r i a n J . L . B e r r y : C e n t r a l P l a c e s and M a r k e t A r e a s ( 5 ) W a l t e r I s a r d : A n o t h e r E f f o r t a t S y n t h e s i s (6) Two T h e o r i e s o f R e g i o n a l E c o n o m i c G r o w t h (7) The T h e o r i e s : A F i n a l Word C. Public Policy: Theoretical Issues (1) The Basic Dichotomy (2) Three Public Policy Issues (3) Approaches to Policy D. Summary URBAN AND REGIONAL DEVELOPMENT POLICY A. Introduction B. Experience of Selected Foreign Countries in Urban and Regional Policy (1) France (a) Introduction (b) Historical Background (c) The Response: 1950's (d) Regional Policy and the Fourth Plan (e) Regional Policy and the Fifth Plan (f) Urbanization Techniques of the Fifth Plan (g) Assessment of the French Experience (2) Great Britain (a) Introduction (b) British Regional Policy to 1960 (c) British Urban Development Policy to 1960 V CHAPTER PAGE (d) The Regional Development Focus (e) The Debate on a National Urban Policy ( f ) Practical Steos Towards a National Policy (g) Assessment of the United States Experience C. The Canadian Context (a) Introduction (b) The Constitutional Context (c) The Housing Focus (d) The Regional Development Focus D. A National Urban Growth Policy IV THE THRONE SPEECHES: 1944-1969 It A. Introduction (1) General Comments (2) A model Throne Speech B. The Throne Speeches: An Overview (1) The Setting: 1944 (2) The Preoccupations: 1945 to 1969 C. Themes Relating to Urban and Regional Development (1) Housing and Urban Development (2) Regional Economic Development (3) Minor Themes D. Conclusions yi CHAPTER PAGE V THE SELECTED LEGISLATION 99 A. B. C. D. E. Introduction The Legislation (1) The National Housing Act, 1944 (2) The National Housing Act, 1954 (3) An Act to Amend the National Housing Act, 1954 (passed in 1964) (4) The Agricultural Rehabilitation and Development (5) The Atlantic Development Board Act (1962} (6) The Department of Industry Act (1963) (7) The Area Development Incentives Act (1965) (8) The Fund for Rural Economic Development Act (1966) (9) The Government Organization Act, Part V (1969) (10) The Regional Development Incentives Act (1969) Traces of a National Strategy for Urban and ". Regional Development (1) Housing and Urban Development (2) Regional and Area Development Conclusion: Groping with a Purpose The Contining Debate VI CONCLUSIONS 127 A. Introduction B. Conclusions from the Background Chapters v i i CHAPTER PAGE C. The Throne Speeches D. L e g i s l a t i o n E. General C o n c l u s i o n F. Fu t u r e Research BIBLIOGRAPHY 136 APPENDIXES 140 Appendix A: Notes on Federal Throne Speeches, 1944-69 Appendix B: Notes on S e l e c t e d F e d e r a l L e g i s l a t i o n , 1944-69 CHAPTER I INTRODUCTION: JUSTIFICATION, SCOPE AND PARAMETERS OF THE STUDY A. INTRODUCTION In t h i s study, an attempt i s made to discover evidence of the presence of a national strategy f o r u r b a n i z a t i o n i n Canada during the period since World War I I . Data f o r t h i s examination c o n s i s t s of the federal throne speeches of the p e r i o d , a s e l e c t i o n of major pieces of federal l e g i s l a t i o n , and the debates i n the House of Commons concerning t h i s l e g i s l a t i o n . A basis f o r d i s c u s s i o n i s l a i d by an examination of the nature of urban growth s t r a t e g i e s , the sta t e of theory e x p l a i n i n g urban and regional development, and a b r i e f d i s c u s s i o n of the experience of selected f o r e i g n countries i n t h i s matter. Results of the examina-t i o n of the speeches, l e g i s l a t i o n and debate are presented i n d e t a i l i n two appendixes, while more general summaries and a n a l y s i s appear i n the main body of the paper. A conception of the fragmented nature of the phenomena studied emerges, along with an i n d i c a t i o n of the d i r e c t i o n of e v o l u t i o n of f e d e r a l p o l i c y . B. REASONS FOR THE STUDY There are many reasons f o r undertaking a study of t h i s s o r t , i n s p i t e of the d i f f i c u l t and e l u s i v e nature of the subject matter. The most obvious reason i s the apparently increasing seriousness and complexity of our urban problems. Such observations have become 2 prevalent to the point of being c l i c h e s , and are now p a r t of the stock-in-trade of the l a y press. 1 P u b l i c concern has been increased by the p a r a l l e l drawn by many that problems s i m i l a r to those be s e t t i n g the c i t i e s of the United States are the l o g i c a l consequences of our own urban p o l i c i e s . A more r a t i o n a l presentation of the dimensions of Canadian urban problems i s to be found i n the Economic Council of Canada's Fourth Annual Review.^ The questions d e a l t with i n the Review have helped to s e r v i c e a growing p u b l i c debate on the subject of the f e d e r a l government's l e g i t i m a t e r o l e i n the e f f o r t to solve the country's urban problems. A s i g n i f i c a n t document on t h i s subject was the Report of the Federal Task Force on Housing and Urban Development, which was charged with the duty to examine housing and urban development i n Canada and to report on ways i n which the federal government, i n company with other l e v e l s of government and the p r i v a t e s e c t o r , can help meet the housing needs of a l l Canadians and contribute to the development of modern, v i t a l c i t i e s . 4 See, f o r Example, R.T. A f f l e c k , "Urgent Need f o r Urban Change," The Montreal S t a r , Aug. 17, 1968, p. 9 and John Schreiner, "The Dragged Out Dilemma of Canadian C i t i e s , " The F i n a n c i a l Post, Feb. 21, 1970. 2 Oane Jacobs, "A C i t y Getting Hooked on the Expressway Drug," The Globe and M a i l , Nov. 1, 1969,.p. 7. 3 Economic Council of Canada, Fourth Annual Review, (Ottawa: The Queen's P r i n t e r , 1967), pp. 173-276. Report of the Federal Task Force on Housing and Urban Develop-ment , Hon. Paul T. H e l l y e r , chairman (Ottawa: The Queen's P r i n t e r , 1969), L e t t e r of T r a n s m i t t a l . 3 Perhaps a more instructive indication of the attitude of the Trudeau government5 to this question came in May, 1969. At that time, the Hon. Paul T. Hellyer (minister responsible for housing) resigned from the cabinet in protest over the Prime Minister's s t r i c t adherence to the British North America Act, which placed urban affairs in the hands of the provinces. 6 However, the pressure for a stronger federal position in urban development continues to grow,^ but without the benefit of many specific ideas as to how the federal government might be able to do more than is presently being done. Accordingly a study of the poli-cies and goals of the federal government in its f i e l d of jurisdiction in the immediate past might be considered topical at this point. Another reason for this study is the emphasis which the Trudeau government has placed on the need for revision of the Canadian consti-tution, the British North America Act. Obviously, in view of the current constraints, a federal government convinced of a need for i t s presence in the process of urban and regional development might press for a recognition of its role in a new constitutional document. This concern is not evident in its major position paper for the continuing Sprime Minister Pierre E l l i o t t Trudeau and his government were sworn in on April 22, 1968. 6Paul Hellyer, "Couldn't Keep Promise So I Quit, Hellyer Says," Toronto Daily Star, May 10, 1969, p. 1. ''see, for Example, Douglas Sagi, "Liberals Told to Change or Cities Could Secede," The Globe and Mail, Nov. 22, 1969, p. 4, and Dave Ablett, "Liberals Pull for City Power," The Vancouver Sun, Nov. 18, 1969, p. 10. Both articles refer to the Liberal "Thinkers" Conference at Harrison Hot Springs, B.C., Nov. 20-23, 1969. 4 constitutional conference, and the provincial governments have been chary of raising the issue lest they lose their cherished constitutional monopoly on urban policy. In this context, i t would seem to be impor-tant to understand the implications of past federal actions before embarking on a major redistribution of powers. Federal position papers indicate no such understanding. The recent concern for equalizing regional economic disparities (eg. the new Department of Regional Economic Expansion) is a further region for undertaking this study, since the link between urbanization and regional development is now well known. It has been proposed that a major thrust of federal policy will be to equalize regional economic growth. Accordingly, i t would be useful to know i f consideration has been given in the past to the regionals incidence of federal legislation such as the National Housing Acts. It should be noted here that the concern of this paper is to determine the intent of the legislation rather than its actual incidence, the latter being beyond the scope of the paper. On a more general level, one could say that the postwar period was one in which the impact of the national government, and indeed all governments, on the private economy and the society in general has become pronounced and in many aspects, c r i t i c a l . One index of the economic impact of government activity is federal expenditures, which Rt. Hon. P.E. Trudeau, The Constitution and the People of Canada, Ottawa, The Queen's Printer, 1969. , 5 rose from 12.5% of the Gross National Product i n 1947 to 16.8% i n 1966. The expenditures of a l l governments rose from 24% of GNP i n 1947 to 38.1% i n 1966. 9 Therefore, the r o l e of the government as a spender i n the economy has increased s u b s t a n t i a l l y . In a d d i t i o n , the government as regulator of the p r i v a t e economy exercises a profound i n f l u e n c e , which i s i n e v i t a b l y f e l t i n u r b a n i z a t i o n patterns. The i m p l i c a t i o n s of these developments, while s i g n i f i c a n t i n the past, are even more impor-tant f o r the country's urban f u t u r e . On the s o c i a l l e v e l , the growth of the welfare s t a t e i n Canada has been manifest i n a great many programs which have taken the i n f l u -ence of the f e d e r a l government i n t o many corners of p r i v a t e l i f e . These influences have secondary e f f e c t s on u r b a n i z a t i o n p a t t e r n s , and have even tended to make government o f f i c e s nodes of a c t i v i t y i n some urban areas to a degree not experienced before. The above events have been accompanied by 25 years of v i r t u a l l y unbroken economic growth i n Canada, a period c h a r a c t e r i z e d not only by u r b a n i z a t i o n , but a l s o by the increased interdependence of economic a c t i v i t i e s , to the point that the impact of government p o l i c y i s imme-d i a t e , complex and far-reaching i n i t s i m p l i c a t i o n s . Since urban development i s dynamically bound up with the growth and s p a t i a l c o n f i g -u r a t i o n of the economy, there i s need f o r increased understanding and co-ordination of government a c t i v i t y from the point of view of urban imp! i c a t i o n s . Source: National Accounts Income and Expenditure. 6 F i n a l l y , the study i s approached by the w r i t e r as a l e a r n i n g e x e r c i s e , a preparation f o r more d e t a i l e d work i n the f i e l d of federal policy and i t s actual e f f e c t s on u r b a n i z a t i o n i n Canada. From t h i s point o f view, the study has the v i r t u e of showing i n an understandable way, what the f e d e r a l government has been doing f o r the past 25 y e a r s , and how i t s many a c t i v i t i e s are i n t e r - r e l a t e d . I t forms a foundation f o r f u r t h e r work which may show what the actual impact of the govern-ment i s on u r b a n i z a t i o n , and f o r a c o n t r i b u t i o n to d e f i n i n g what the fe d e r a l r o l e has been and perhaps what i t should be. C. HYPOTHESIS The hypothesis of t h i s paper i s t h a t the evidence of a national strategy for urban growth and regional development in Canada from 1944 to 1969 appears in the broadening scope of federal intervention in the areas of housing and regional economic expansion, subjects that are still considered separately in policy and remain to be integrated with other aspects of the federal impact on urbanization and regional development to form a comprehensive strategy. It is to be noted t h a t the search i s f o r evidences of a s t r a t e g y , and is not an attempt to show the e f f e c t s , r e a l or imagined, of fed e r a l l e g i s l a t i o n on urban and regional development. D. SCOPE OF THE STUDY In order to deal e f f e c t i v e l y with the t o p i c a t hand and to avoid making statements which cannot be substantiated by data, the scope of 7 the study has been l i m i t e d to a s p e c i f i c time period and s p e c i f i c data sources. The period 1944 to 1969 has been chosen f o r a number of reasons. F i r s t , as noted above, i t was a period i n which the problems of urban growth and the f e d e r a l government's r o l e became s i g n i f i c a n t and obvious. In a d d i t i o n , the 25 year period p r i o r to 1944 was domi-nated by the Depression and World War I I , major issues w i t h t h e i r o r i g i n s outside Canada, but issues which preoccupied Canadians and t h e i r government. In c o n t r a s t , the postwar period has been r e l a t i v e l y prosperous and, more important, a period i n which the maintenance of that p r o s p e r i t y and improving the well-being of Canadians was a f i r s t p r i o r i t y i n national p o l i c y . ^ I t i s the bias of t h i s paper that such a p r i o r i t y i m plies an urban growth s t r a t e g y . The year 1944 was s e l e c t e d as the beginning of the "postwar" period because i t was i n t h a t year that many of the programs which s e t the tone f o r postwar Canada were a r t i c u l a t e d , and some were even the subject of l e g i s l a t i o n i n that year. These were the c a r r o t s which many A l l i e d governments held out to t h e i r f i g h t i n g men to develop the morale necessary f o r v i c t o r y . Although some data from 1969 i s presented, the period r e a l l y ends o r g a n i c a l l y i n 1968, when the government changed In more recent times and p a r t i c u l a r l y s i n c e the War, the government has been i n c r e a s i n g l y concerned about the importance of maintaining, on the one hand, a high l e v e l of employment throughout the country, and of c o n t r o l l i n g i n f l a t i o n , on the other. This twin o b j e c t i v e has become and i s l i k e l y to remain the p r i n -c i p a l preoccupation of the senior l e v e l of government i n Canada i n the f i e l d of domestic p o l i c y as i t i s i n other c o u n t r i e s , i n c l u d i n g the United States and the United Kingdom. Report of the Royal Commission on Canada's Economic Prospects, Walter L. Gordon,~cEairman, (Ottawa: Tfie Queen's P r i n t e r , 1957), p. 420. 8 hands from the Rt. Hon. L.B. Pearson to the Rt. Hon. P.E. Trudeau. We are led to b e l i e v e that t h i s i s a change i n substance as w e l l as one of s t y l e s representing the a r r i v a l of a d i s t i n c t i v e new era f o r the national government. While i t i s as y e t f a r too e a r l y to assess the Trudeau government with c e r t a i n t y , i t would appear t h a t , at l e a s t from the point of view of urbanization and regional economic development, the new regime w i l l represent a departure. One can c i t e as support f o r 11 t h i s p o s i t i o n the reassessment of urban renewal, the new Department 12 of Regional Economic Expansion, and Finance M i n i s t e r E.J. Benson s 13 t e n t a t i v e steps towards d i f f e r e n t i a l tax treatment to high growth centres. In a d d i t i o n , t h i s search f o r a n a t i o n a l strategy f o r urban growth has been confined to throne speeches, selected major l e g i s l a t i o n and the debate surrounding passage of that l e g i s l a t i o n . Throne speeches have been included because they represent one of the few general l y a c c e s s i b l e and r e l i a b l e i n d i c e s of the goals and p r i o r i t i e s of a gov-ernment. They have the a d d i t i o n a l advantage of being a statement of what the government would l i k e to do, which can then be compared with the actual record of l e g i s l a t i o n . I t i s with t h i s l a s t idea i n mind "Neale Adams, "Costly Urban Redevelopment Projects are Shelved," The Vancouver Sun, Aug. 30, 1969, p. 70. 12 Guy Bourassa, "Establishment of the Department of Regional Economic Expansion," Ottawa, Department of Regional Economic Expansion, 1969. (Mimeographed). 1 3Hansard, June 3, 1969. 9 that the selected l e g i s l a t i o n and debate have been i n c l u d e d , p a r t l y i n the b e l i e f that evidence to support the hypothesis might be found i n the context and substance of such l e g i s l a t i o n , and p a r t l y to present the l e g i s l a t i o n as i n d i c a t i n g what was_ important to the government during t h i s period i n the f i e l d of s p a t i a l p o l i c y . One f u r t h e r matter must be made p e r f e c t l y c l e a r i n s e t t i n g out the scope of the study. I t i s tha t by undertaking t h i s r e t r o s p e c t i v e examination, i t i s not intended to demonstrate t h a t there ought to have been an urbanization s t r a t e g y , or that had i t e x i s t e d , i t should have been a f i r s t p r i o r i t y . I t i s recognized that the government must make laws to s a t i s f y the needs of the people as i t sees them -- th a t t r a n s -p o r t a t i o n p o l i c y , f o r example, must be r e l a t e d to the nation's transpor-t a t i o n goals, i f any, and that these may be viewed independently from the nation's possible urbanization goals. The only normative statement that might be made i s that where the two goals e x i s t and are not i n d i r e c t o p p o s i t i o n , one might be designed to complement the other as a matter of general governmental e f f i c i e n c y . Related to the above question i s the re c o g n i t i o n of t h i s paper that at no time does the government have more than a general i n f l u e n c e i n the national patterns of urban development. Federal p o l i c i e s can at best only nudge i n one d i r e c t i o n or the other the myriad p r i v a t e investment d e c i s i o n s , r a t i o n a l and otherwise, which together produce a p a r t i c u l a r c o n f i g u r a t i o n of development. 10 E. ASSUMPTIONS AND DEFINITIONS (1) Assumptions The f o l l o w i n g assumptions are made i n undertaking t h i s a n a l y s i s . (a) I t i s assumed that i f a national strategy f o r urban growth e x i s t e d , i t would be mentioned i n one or more throne speeches. (b) I t i s assumed that throne speeches represent a reasonable index of government goals and major l e g i s l a t i v e i n t e n t i o n s . (c) I t i s assumed that i f a national strategy f o r urban growth e x i s t e d i t would manifest i t s e l f i n the form and content of major l e g i s -l a t i o n which deals with economic development and settlement i n s p a t i a l terms. (d) I t i s assumed that the r e a l i n t e n t of any given Act i s d i s -c e r n i b l e from the language of that Act. (2) D e f i n i t i o n s I t i s important to define the f o l l o w i n g terms. (a) Urban growth i s a complex phenomenon which has three elements of i n t e r e s t here. F i r s t , i t implies a change i n the number of people and/or the proportion of population r e s i d i n g i n urban areas as defined by some technical c r i t e r i a . Second, there i s the incidence of such changes i n c i t i e s of d i f f e r e n t s i z e s (eg. the tendency f o r urban growth to be concentrated i n large c i t i e s rather than small c i t i e s or towns). T h i r d , an important f a c t o r i s the d i s t r i b u t i o n of c i t i e s i n the nation (eg. concentration around the i n d u s t r i a l i z e d heartland, or d i s t r i b u t i o n along t r a n s p o r t a t i o n l i n e s and nodes). A fou r t h element, the actual 11 structure of the cities that develop (eg. strong or weak core, special-ized or diversified, etc.) is important, but not as closely related to national policy as the others, and hence is of less concern here. (b) A national strategy for urban growth is a consistent policy of the national government relating to the achievement of a desired configuration of urban growth. Such a policy is spatially and func-tionally comprehensive with respect to a l l federal activities. (c) Selected major legislation is legislation which has the entire nation or more than one province as its scope, which involves a commitment of large sums of money to relieve social and economic prob-lems, and which has an explicit reference to urban problems or regional development. The selection was based on the descriptions of legisla-tion published annually in the Canada Year Book. Such selection is to a large degree subjective and arbitrary, and the author takes f u l l responsibility for inconsistencies which may be pointed out. (d) A speech from the throne . . . is a statement drafted by the Prime Minister and approved by the cabinet, which reviews concisely the state of the nation and recites in f a i r l y general terms the programme which the cabinet proposes to submit to Parliament in the coming session.'4 F. OUTLINE OF THE REMAINDER OF THE STUDY Chapter II augments the definition of a national urban growth strategy by discussing some of the elements of urbanization and 1 4R. MacGregor Dawson, The Government of Canada, revised by Norman Ward, (Toronto: University of Toronto Press, 1963), p. 378. 12 regional growth theory which e x i s t a t t h i s time. Chapter I I I considers some more p r a c t i c a l aspects of national p o l i c i e s , i n c l u d i n g a review of the experience of France, B r i t a i n and the United States i n t h i s f i e l d , and a b r i e f overview of the Canadian context. The Chapter concludes with a dis c u s s i o n of the components of a national urban growth str a t e g y . Chapter IV analyses the throne speeches, and Chapter V analyses the selec t e d major l e g i s l a t i o n and accompanying debate. In Chapter VI, conclusions are drawn. Two Appendixes present the r e s u l t s of the research i n more d e t a i l e d form: Appendix A f o r the throne speeches, and Appendix B f o r the l e g i s l a t i o n and debate. CHAPTER I I THEORIES OF URBAN AND REGIONAL GROWTH AND THEIR POLICY IMPLICATIONS A. INTRODUCTION In t h i s chapter a range of theory concerning urban and regional growth i s surveyed and assessed. From t h i s survey, various t h e o r e t i c a l viewpoints w i l l be discussed i n terms of t h e i r i m p l i c a t i o n s f o r n a t i o n -al p o l i c y . The object of t h i s and the next chapter i s to c l a r i f y the conception of urban and regional growth from both t h e o r e t i c a l and prac-t i c a l points of view, i n c l u d i n g p u b l i c p o l i c y responses. This d i s c u s -sion w i l l provide the foundation f o r an understanding of the components of a national strategy f o r urban growth. A f t e r a d e t a i l e d d i s c u s s i o n of these components at the end of Chapter I I I , a basis w i l l e x i s t f o r an i n v e s t i g a t i o n of the data f o r signs of t h e i r presence during the study period. The f o l l o w i n g theories w i l l be examined: Central Place Theory, selected c l a s s i c a l i n d u s t r i a l l o c a t i o n t h e o r i e s , Brian Berry's theory of c e n t r a l places and market areas, Walter Isard's synthesis of l o c a t i o n t h e o r i e s , and two theories of regional economic growth (sector theory and export-base theory). These were selected due to the f a c t that they provide a number of explanations of the concentration: of a c t i v i t i e s i n urban places, or the f a c t that they help to explain regional economic growth, or ( i n some cases) because they do both. Again, the s e l e c t i o n 14 process must be somewhat a r b i t r a r y , and the present chapter makes no pretension of exhausting the f i e l d . B. THEORIES OF URBAN AND REGIONAL DEVELOPMENT (1) Thematic Statement While the sources of the theories examined below are d i v e r s e , there would appear to be one u n i f y i n g theme underlying a l l of them. This theme i s that the s p a t i a l incidence of human economic a c t i v i t y i s not randomly or evenly d i s t r i b u t e d ; economic a c t i v i t y tends to concen-t r a t e around s p e c i f i c points i n space due to competitive advantages enjoyed by these points i n r e l a t i o n to other p o i n t s . That i s to say, there i s a concept of a core area i n which a c t i v i t y i s concentrated, and a periphery where i t is l e s s concentrated, which i s o r g a n i c a l l y r e l a t e d to the a c t i v i t i e s of the core. This symbiotic r e l a t i o n s h i p between core and periphery is c e n t r a l to a l l the theories examined, embracing the concepts of c i t y and r e g i o n , c e n t r a l and non-central goods, metropolis and h i n t e r l a n d , basic and non-basic a c t i v i t i e s , and many more. There are, of course, many v a r i a t i o n s i n degree of dominance of the periphery by the core or centre. Such v a r i a t i o n s r e l a t e to the degree of settlement, the extent of economic i n t e g r a t i o n , stages i n national development, d i f f e r e n c e s i n resources, and a host of other factors.. 15 Further, there are important variations in the scale at which the theorists deal with this phenomenon. Friedmann^ has pointed out that one can consider the centre-periphery concept at the global, continental, national, subnational, regional or even metropolitan and local scales. In this sense, a means of examining virtually a l l eco-nomic growth is suggested. Finally, there is a functional aspect to the centre-periphery concept. This aspect suggests that there are particular functions for which the region is much larger than for other functions which have more limited hinterlands. Thus, from a functional point of view, New York and Paris are both centres of a global region in haute couture, but a "general purpose region" encompassing most of the central func-tions of each of those cities would be more modest in scope. (2) Central Place Theory Central place theory, f i r s t developed by Walter Christaller,^ was the f i r s t modern comprehensive effort to explain urban development. The theory is based on a dichotomy between central and non-central goods and activities, leading to a hierarchy of urban places which are geometrically arranged in the ideal case. The following are the six main points of Christaller's theory: 'John Friedmann, Regional Development Policy (Cambridge, Mass.: M.I.T Press, 1966), p. 10. 2 ' ^Walter Christaller, Central Places in Southern Germany, trans, by Carlisle W. Baskin Englewood C l i f f s , N.J.,.. (Prentice-Hall, 1966). 16 (1) The main function of a city is to be a central place providing goods and services for the market area; therefore, cities are located central to the maximum profit area they can command. (2) The greater a city's centrality, the higher its order. (3) Higher order places offer a larger range of goods and services, but are more widely spaced than lower order places. (4) Low order places offer goods purchased frequently or convenience goods. (5) A hierarchy of central places exists. (6) Three hierarchies may be organized according to; (a) a market principle (b) a transportation principle, and (c) an administrative principle.3 The above formulation stems from Christaller's observation that as cities increase in size so does the distance between cities of similar size. While Christaller's concept was acceptable as far as i t went, i t did have the drawback of being overly concerned with geometry and rigid spatial relationships, without dealing in much detail with the combined effects of central functions in stimulating growth by their interaction. However, as shall be seen, the theory has had some interesting addi-tions, and i t is certainly a seminal work. 3Brian J.L. Berry and Allen Pred, Central Place Studies: A Bibliography of Theory and Applications, (Philadelphia: Regional Research Institute, 1965)7 PP- 3-4. 17 (3) Classical Industrial Location Theories Now the discussion turns to a group of theories concerning the location of industrial activity, both at the level of the agglomeration of activity and at the level of the individual firm. The area is rich in theory, and i t is only possible here to deal with major theorists with significance to the purpose of this paper. Thus, only the theo-rists which have had something to say about the dynamics of the concen-tration of industries are examined here. While the father of location theory, von Thlinen, made some gen-eral progress in methodology while considering how to run his estate, "Gut Tellow," at a profit, i t remained to Alfred Weber to attempt a general industrial location theory for the f i r s t time.4 Weber pursued an essentially evolutionary approach, developing a general basis by describing the transformation of locational structures as an undevel-oped region was settled and industrialized. Weber perceived five "strata" or stages of development, beginning with the subsistence agricultural system. This stratum serves as a basis for the develop-ment of the other strata, in which the lower order strata provide the lo c i i of consumption for the emerging higher orders. Thus, a primary industrial system develops out of the agricultural stratum, feeding on agricultural markets. A secondary industrial stratum develops from the former. This third stratum actually consists of many substrata, whose labour force (tradesmen and local functionaries) service the core of 4Carl 0. Friedrich, Alfred Weber's Theory of the Location of Industries, (Chicago: University of Chicago Press, 1929). 18 the economic system. The fourth stratum, the central organizing func-tion, consists of professionals and managers, and those living off accumulated wealth. Their location pattern is determined by other forces than economic, and is to some extent arbitrary. A f i f t h stratum, the central dependent function, consists of those who service the work-ers in the fourth stratum.^ Thus, like Christaller, Weber places emphasis on centrality, hierarchy and consumption as major determinants of economic develop-ment. But the theory does l i t t l e more than to describe the historic development of the strata and some of their interrelationships. It certainly does not give us any heuristic principle which can be applied at more specific levels of analysis. Its historical sequence is useful to an understanding of the time sequence of growth, and its concept of structural transformation in growth adds a dimension to central place theory. A second seminal work in location theory is that of August Lbsch,6 who develops a three-level typology of industrial concentration and size of economic region. In his analysis he uses the hexagon as the basic geometric term of spatial organization. The highest level, a "punctiform agglomeration," is illustrated when demand for a particular good, or for the organization of a particular function, is satisfied ^For a more rigorous and complete discussion of these and more minor theories, see Walter Isard, Location and Space-Economy, (Cambridge, Mass.: M.I.T. Press, 1956), Chapter 2. 6August Losch, The Economics of Location, trans, by W.H. Wolgom and W.F. Stolper, (New Haven: Yale University Press, 1954). 19 from one urban area or group of areas within the national space. Losch's example is the fact that a l l the shirt collars in the United States are made in Troy, New York. The second level of concentration of activity is "area agglomeration," which is subdivided into belt locations (where the market network is compressed) and di s t r i c t loca-tions (where the centres are compressed but the markets are separated). The third level relates to such ubiquitous commodities as bread, pro-ducers of which have no concentration, forming a true network of re-gions. Thus, Losch raises the question of distance as a c r i t i c a l factor in economic location, encompassing issues such as the value of low transport costs vs. economies of scale from one large plant, the benefits of proximity to customers in marketing and many more. While Losch did introduce the innovation of using an equation to describe spatial relations, his theory does not deal adequately with the proces-ses of interdependence, relying instead on a sectoral analysis which has grave limitations. In reviewing the location theorists, then, i t can be concluded that they help to explain more of the dynamics of centrality as de-scribed by Christaller, but they are unable to cope adequately with interdependence among industries in the same location. Weber provided essentially an explanation of the historical process of development, and Losch adds a typology of economic regions. 20 (4) Brian J.L. Berry: Central Places and Market Areas Brian J.L. Berry, a contemporary t h e o r i s t i n economic geography, has borrowed from Losch, and, more e x t e n s i v e l y , from C h r i s t a l l e r i n an e f f o r t to integrate the ce n t r a l place and the s e c t o r a l approaches. 7 His broader a p p l i c a t i o n of central place theory emerges when i t i s r e -formulated i n terms of i t s two central concepts, "range of a good" and " t h r e s h o l d , " 8 The outer range of a good i s the maximum distance con-sumers w i l l t r a v e l f o r t h a t good, and the minimum range encloses the minimum number of consumers needed to support the a v a i l a b i l i t y of the good i n that area. Threshold r e f e r s to the minimum purchasing power necessary to support the supply of a ce n t r a l good from a c e n t r a l place. Thus, Berry has selected consumption as the basic element i n the d i s -t r i b u t i o n of economic a c t i v i t y , with distance ( c l o s e l y r e l a t e d to transport) as a major determinant of l o c a t i o n . Berry merges his modi-f i e d c e n t r a l place a n a l y s i s with general systems theory, i n t r o d u c i n g a s e t of equations which describe the process i n a h i g h l y generalized way. Berry notes c e r t a i n c r o s s - c u l t u r a l s i m i l a r i t i e s , and documents the impact of technological change, such as the automobile e f f e c t i n dispersi n g a c t i v i t i e s . .Brian J,L. Berry, Geography of Market Centres and R e t a i l Dis-t r i b u t i o n (Englewood C l i f , N.J,: P r e n t i c e - H a l l , 196777 8D. Michael Ray, "Urban Growth and the Concept of Functional Region," i n Urban Stud if;',: A Canadian Perspective, ed. by N.H. Lithwick and Gi 11 es Paquet TTor'ont.o: "Methuen, "1968), pp. 47-49. 21 There are, however, some problems in Berry's formulation. These are centred around technological change and growing sophistication in the economy, which combine to produce a greater proportion of intangible goods (eg. television programs) whose distance factor is practically n i l . (5) Walter Isard: Another Effort at Synthesis A second effort to use previous theories of location and central places was mounted by Walter Isard in a complex work.9 Isard reviews a number of industrial location theories (including Weber, Losch, Palander and Predohl) and a number of market area theories (Christaller, Hotelling and Ackley). The primary tool of his analysis of economic decision making is the substitution principle, which postulates the replacement of one form of production input with another due to rela-tive price relationships. By means of this tool, Isard arrives at his central contention that transport inputs are the most important consid-erations in the location of economic activity. Isard postulates three general groups of location factors. First, there are the transport and transfer costs, which vary regularly with distance from any given point. Second, factors associated with production components are dealt with, such as labour, power, water, taxes and interest on capital. The third group consists of factors associated with agglomeration and de-glomeration economies. This group is interesting in that i t is a yWalter Isard, Location and Space-Economy (Cambridge, Mass.: M.I.T. Press, 1956). 22 typology of many issues of p u b l i c p o l i c y i n urban concentration. Agglomeration include economies of s c a l e , l o c a l i z a t i o n economies (de-ri v e d from the l o c a t i o n together of several firms with s i m i l a r products) and urbanization economies ( i n c l u d i n g easy access to s k i l l e d labour, c a p i t a l , t r a n s p o r t , e t c . ) . Deglomerative forces include diseconomies of s c a l e , r i s i n g costs due to d e n s i t y , and r i s i n g l i v i n g cost. This a n a l y s i s , borrowed from Weber and augmented, has l i t t l e to say beyond the obvious, but i t states the obvious very neatly. I t c e r t a i n l y i l -l u s t r a t e s the heart of the problem of metropolitan growth and sprawl, i n which nearly a l l the economies of agglomeration can be r e a l i z e d , and the corresponding costs avoided, by l o c a t i o n on the metropolitan f r i n g e . While Isard's work does represent a useful and d e t a i l e d d i s c u s -sion of a f a r - f l u n g c o l l e c t i o n of t h e o r i e s , he admits h i s i n a b i l i t y to make a cohesive general theory which i s s a t i s f a c t o r y . Further, Isard adds l i t t l e to the l i t e r a t u r e i n the way of new m a t e r i a l , and what he does add i s immersed i n his concern f o r d e t a i l and convoluted prose. (6) Two Theories of Regional Economic Growth This s e c t i o n examines two approaches to the explanation of eco-nomic growth i n subnational areas, given a c e r t a i n l e v e l of urbaniza-t i o n . These t h e o r i e s , the export-base theory and the sector theory, provide some i n s i g h t s , though they have important l i m i t a t i o n s , which 23 10 will be noted. The export-base theory proposes the concept that growth within a region arises out of the response of the region's industries to a change in demand outside the region's boundaries. The resultant expansion of economic activity spreads through the region by means of a multiplier e f f e c t . 1 1 Such stimulation enables the region to develop a base which is progressively broadened by the region's ability to respond to in-creasingly varied types of demand from outside the region's economic system. This recognition of linkages to the larger economic system is one of the most important contributions of the concept to the under-standing of regional economic growth dynamics. 12 The sector theory, associated with Colin Clark, harkens back to Weber's discussion of transformation of employment from one stratum to another in economic development. This theory holds that economic growth is a process of the successive rise of secondary and then t e r t i -ary sectors of industry relative to the primary agricultural sector. The main reasons for these changes are different income elasticities of demand for sectoral products and differential rates of change in labour productivity. Thus, as demand for food increases less rapidly than per l uFor a more detailed presentation of both these concepts, see H.S. Perloff, E.S. Dunn, Jr., E.E. Lampard and R.F. Muth, Regions, Resources and Economic Growth (Baltimore: Johns Hopkins Press, 1960), pp. 57-62. 11 Douglass C. North, "Location Theory and Regional- Economic Growth," Journal of Political Economy, Vol. 63, (June, 1955), pp. 243-258. 1 o Colin Clark, The Condi ti ons of Economi c Progress (London: Macmillan, 1940). 24 c a p i t a income, resources are di v e r t e d to the purchase of non-food goods and s e r v i c e s , leading to a r e l a t i v e d e c l i n e i n a g r i c u l t u r e . This theory underlies the concept of stages i n national economic development now enjoying wide currency. Both these approaches have important l i m i t a t i o n s . The export-base concept f a i l s to account f o r some of the growth which might be stimulated w i t h i n the region i t s e l f , due to f o r t u i t o u s combinations of resources o r , at a more advanced stage of development, to the s t i m u l a -t i o n of interdependence among a c t i v i t i e s w i t h i n the region. Thus, the d e f i n i t i o n of the boundaries of the region becomes v i t a l to the v i a b i l -i t y of the export-base approach. The sector theory recognizes the importance of r e g i o n a l l y oriented s e r v i c e functions as growth components i n t h e i r own r i g h t , but pr e d i c t a b l y does not deal adequately with external s t i m u l i to growth. In a d d i t i o n , s e c t o r a l aggregates are a broad means of c l a s s i f i c a t i o n , leading to many problems of a l l o c a t i o n of i n d u s t r i e s to one sector or the other. These two approaches, then, while l i m i t e d i n scope, y i e l d some important i n s i g h t s i n the process of regional economic development. (7) The Theories: A Final Word This b r i e f d i scussion has touched upon the works of many authors concerned with e x p l a i n i n g aspects of urban and regional growth. How-ever, a l l have been found to have t h e i r l i m i t a t i o n s , and t h i s discovery i s a source of f r u s t r a t i o n to both t h e o r i s t and student. However, the 25 process of economic development i s extremely complex and, one suspects, f u l l of dynamic forces which may doom even an apparently successful explanation to a short l i f e . An e f f o r t has been made here to c o r r e l a t e some common elements of central place theory, c l a s s i c a l i n d u s t r i a l l o c a t i o n t h e o r i e s , Berry's theory concerning central places and market areas, Isard's theory of l o c a t i o n and space-economy and the export-base and sector theories of regional growth. These elements represent a t l e a s t a rudimentary syn-th e s i s of a highly fragmented and complex set of processes. Important p o l i c y i m p l i c a t i o n s emerge from the above d i s c u s s i o n , and i t i s to these i m p l i c a t i o n s that the remainder of t h i s chapter i s devoted. C. PUBLIC POLICY: THEORETICAL ISSUES (1) The Basic Dichotomy By now some i n d i c a t i o n of a basic dichotomy i n the theories may have emerged, p a r t i c u l a r l y when the p o l i c y i m p l i c a t i o n s are considered. On the one hand, there are the e q u i l i b r i u m approaches, exempli-f i e d by the c l a s s i c a l l o c a t i o n t h e o r i e s , Isard's theory, and the sector model. These formulations recognize that growth must have i n i t i a l l y been spontaneous, and postulate t h a t i t i s t h i s way always. Under t h i s concept, i t i s argued that economic growth t r a n s f e r s i t s e l f from region to r e g ion, from centre to periphery, by means t o t a l l y c o n t r o l l e d by the operation of the free market economic system, with transport and commu-nic a t i o n s as the major determining forces. Thus, growth proceeds as 26 resources are used at an optimum level in the national economy, and the system returns to an equilibrium position after any change. Under these conditions, regional disparities would be reduced as growth is spread through the system's effort to reach equilibrium. "The equilibrium model, therefore, leads one to expect not a widening disparity in the rates of factor return and economic growth. . . but a gradual convergence of these rates."13 In short, what is good for Toronto is good for NOtre-Dame-de-Crabtree Mills. The second model has been labelled by Friedmann as the centre-periphery model, to which we have already referred. This approach holds that economic development occurs in a specific locational matrix, which is primarily urban and industrial in composition. It is at or near this matrix that economic organization, especially commodity and factor markets, work most effectively. Therefore, the argument runs, the process of economic development, particularly where i t is associated with urban development, will tend to increase regional disparity, so that what is good for Toronto will not necessarily be good -- and may even be bad -- for NStre-Dame-de-Crabtree Mills. Therefore, the stimu-lation of economic development must stem from the placement of urban-industrial areas in the hinterland, rather than any expectation that such areas will develop due to the growth of the national or world John Friedmann, Regional Development Policy (Cambridge, Mass.: M.I.T. Press, 1966), p. 14. Much of this discussion is inspired by Friedmann's work. 27 economy. Perhaps a clear idea of the extent of the gulf between these two theoretical positions can be gained by considering the controversy over the dynamics of the growth of the American West. For many years, his-torians gave credence to the thesis of Frederick Jackson Turner, which held that expansion of the frontier westward in a process of conquest and agricultural settlement explains American development. Thus, the equilibrium argument of development percolating outwards in a system of growth through agriculturally-oriented manifest destiny held wide acceptance. However, this thesis was definitively challenged by Richard C. Wade,^ who collected and reorganized the dissenting views into an alternative thesis. His view was that western development was the result of railway-building organized by the cities of the East, which was followed by the growth of towns at rail terminals, finally permit-ting the growth of a farming industry. Thus, Wade postulated a highly different view of the West from the more romantic frontier view of Turner: Western development was the product of Eastern industrial and managerial effort and was essentially an urban phenomenon. It was, in short, the expansion of the periphery through a system of colonial centres. l 4Richard C. Wade, The_ Urban Frontier, the Rise of Cities in the West, 1790-1830 (Cambridge, Mass.: Harvard University Press, 1959]". 28 Friedmann15 presents a detailed critize of the equilibrium model based on its lack of support from historical evidence. The p r i n c i p a l reasons for this absence of historical vindication are as follows. First, the expected diminished returns from operating at the centre have failed to materialize for most firms, even in the largest centres. (Events in United States central cities since Friedmann's publication in 1966 and the increased foot!ooseness of American industry could be raised here in opposition, but shifts have largely been intra-metropolitan: there has been no move to the true periphery). Second, Friedmann notes a failure of central industries to perceive peripheral investment opportunities. Third, export demand for goods produced at the centre as opposed to limited demand for the periphery's primary products has meant a widening disparity. Fourth, the coincidence of the centre with a large proportion of the national market leads to further central concentration. Fifth, the growth of what Friedmann has called the quaternary sector at the centre -- finance, research, govern-ments planning and control services -- has placed the centre in a state of constant technological change. Centrally located enterprise there-fore enjoys a l i t e r a l l y unique competitive advantage over the periphery. Friedmann's sixth point i s the heterogeneity of populations at the centre which he says is conducive to innovation and risk-taking. Finally, he points out the periphery's inability to make adjustments ! bJohn Friedmann, Regional Development Policy (Cambridge, Mass.: M.I.T. Press, 1966), pp. 14-16. 2 9 to the socio-economic changes produced by the confluence of the above f a c t o r s . This d i f f i c u l t y leads to the f a m i l i a r pattern of outmigration of the young and i n t e l l i g e n t along with the d i s r u p t i v e e f f e c t s of such outmigration on the peripheral economy. Also implied by t h i s i n a b i l i t y to adjust i s the a t t r a c t i o n of c a p i t a l from the periphery to the centre, instead of the opposite case. These problems lead to a b l u r r i n g of the regional problem as seen by the n a t i o n a l government, because the p e r i -phery appears to be f u l l of indigents u n w i l l i n g as w e l l as unable to i n v e s t i n the growth of t h e i r own area. I t can be seen from the above, then, t h a t the dichotomy between the e q u i l i b r i u m and the centre-periphery models i s c e n t r a l to the ques-t i o n of appropriate p u b l i c p o l i c y i n regional development. As Friedmann puts i t , "the centre-periphery model suggests the n e c e s s i t y f o r s t a t e i n t e r v e n t i o n , [while] the e q u i l i b r i u m model soothes policy-makers by reassuring them that the unhindered operation of market forces w i l l i n e v i t a b l y tend to e s t a b l i s h a s p a t i a l e q u i l i b r i u m . " ^ But Friedmann ignores the even more c r u c i a l issue of the regional incidence of the a c t i v i t i e s of the s t a t e i n a l l i t s more general r o l e s . I t i s not enough to suggest that the centre-periphery model leads to a j u s t i f i -c ation f o r state i n t e r v e n t i o n ; i t suggests that the s t a t e as a c e n t r a l function must look to the regional development e f f e c t s of a l l of i t s a c t i v i t i e s i f i t i s to s e r i o u s l y challenge regional d i s p a r i t y . This DJohn Friedmann, Regional Development P o l i c y (Cambridge, Mass. M.I.T. Press, 1966), p. 14. 30 element w i l l become i n c r e a s i n g l y important with the f u r t h e r growth of the p u b l i c sector i n national economics. (2) Three Pu b l i c P o l i c y Issues Assuming that the need f o r a regional development p o l i c y i s e s t a b l i s h e d , Friedmann points out three p a i r s of a l t e r n a t i v e s which immediately confront the p o l i c y - m a k e r . 1 7 To a large degree, such a l -t e r n a t i v e s are implied by the above dichotomy, and value judgments are necessary to resolve them. The f i r s t p a i r of a l t e r n a t i v e s i s "growth vs. wel f a r e . " I f one adopted the f i r s t a l t e r n a t i v e , one would use the resources of the central government to a s s i s t the development of areas of the country that already show strength i n order to advance the national economy as much as p o s s i b l e . Thus i f most of the population were not already i n such h i g h growth areas, then f u r t h e r s t i m u l a t i o n would soon r e s u l t i n such a d i s t r i b u t i o n , and the majority i n t e r e s t would therefore be served. This would be, then, a "fixed-economic-development, mobile-population" p o l i c y . The welfare a l t e r n a t i v e would imply a " f i x e d -population, mobile-economic-development" view. That i s , i t would suggest that the goal of the national government should be to e q u a l i z e , rather t h a n maximize, economic development, and i t involves a r e d i s t r i -bution of income among the population and throughout the national space. Obviously, the r e a l l y e f f e c t i v e p o l i c y would be the one which success-'John Friedmann, Regional Development P o l i c y (Cambridge, Mass.: M.I.T. Press, 1966), pp. 48-53. 31 fully combines certain proportions of both these elements, but i t is instructive to make a distinction between growth and welfare, two con-cepts which are too often taken to be synonymous. The second set of alternatives is "balance vs. imbalance." While the concepts of balance and imbalance have never been very clear-ly defined, the idea of "balanced growth" has enjoyed wide currency in public policy discussions. As Friedmann points out, one must know what regions and what scale one is discussing before being able to determine whether they are balanced. Obviously, no one would postulate that a uniform distribution of activity in space is desirable or possible. In the light of these problems, A.O. Hirschman has proposed a strategy of "controlled imbalance" 1 8 in which he celebrates disequilibrium as a dynamic element in economic growth. His definition of imbalance is relative to the relationship between core and periphery: i f disparity is increasing, public policy must attempt to tip the scales in favour of the periphery. Presumably the opposite case would hold true i f the periphery ever challenged the core. Second, there is the question of sectoral balance, but this has only secondary importance in spatial economics insofar as sectors are differentially strong in particular regions. The third set of alternatives, "concentration vs. dispersal," raises important questions for urbanization as a technique in economic '°A.O. Hirschman, The Strategy of Economic Development (New Haven: Yale University Press, 1958), Chapter.4. 32 development. In confronting t h i s problem, policy-makers must decide between the f o l l o w i n g a l t e r n a t i v e s . In the t h r u s t to develop backward regions (which implies a judgment i n favour of q u a l i f i e d d i s p e r s a l i n the national context) should resources be a l l o c a t e d more or l e s s ran-domly, or s e c t o r a l l y , or should s p e c i f i c s p a t i a l points be s e l e c t e d f o r s p e c i a l treatment at the expense of other points? Lloyd Rodwin, f o l -lowing some French t h e o r i s t s to be mentioned l a t e r , has neatly resolved t h i s dichotomy i n his proposal f o r "concentrated d e c e n t r a l i z a t i o n . " ^ 9 This term implies a s t r a t e g y of d e c e n t r a l i z a t i o n i n the n a t i o n a l space by e s t a b l i s h i n g new core areas, or growth poles. P a r a d o x i c a l l y , such an approach i s j u s t i f i e d on the basis that b e n e f i t s would spread out to areas outside the selected regional cores -- the d i s c r e d i t e d " e q u i l i b -rium argument." The s o l u t i o n of t h i s apparent c o n t r a d i c t i o n i s the observation that there can only be a regional development p o l i c y where there are d i s c e r n i b l e cores and peripheries -- p u b l i c p o l i c y can only create new cores; i t cannot (and should not) dismantle the core f u n c t i o n i t s e l f . (3) Approaches to P o l i c y Related to the above d i s c u s s i o n i s Friedmann's observation on the importance of regional development p o l i c y at various stages of Lloyd Rodwin, "Metropolitan P o l i c y f o r Developing Areas," i n Regional Economic Planning: Techniques f o r Less Developed Areas ( P a r i s : Organization f o r European Economic Development, 1961), pp. 221-232. 33 national economic development.20 He suggests that regional development policy is inappropriate in pre-industrial societies, c r i t i c a l to tran-sitional societies, vestigial in industrial societies, and shifted to a new focus in post-industrial societies. Thus, Canada, as an industrial economy, is largely concerned with "mopping up" regional disparities. The United States, in an early post-industrial stage, s t i l l has Appalachia and other pockets of poverty, but is shifting its emphasis to central-city disparities. Having located the points in national development where regional development policy is important, Friedmann proposes a typology of areas which require different regional treatment. The f i r s t is core areas, which require assistance from government to organize efficiently in a confined space. This implies planning as an important function, and planning must be done on a re a l i s t i c a l l y regional basis, involving tight controls on resource use. Secondly, there are the resource fron-tiers, where public policy must be directed towards broadening the economic base by means of reducing isolation, creating a new locational matrix, reducing the cost of living and many other means. Finally, downward-transitional areas require analysis of prospects for stimulat-ing economic development and relocation of surplus population. John Friedmann, Regional Development Policy (Cambridge, Mass.: M.I.T. Press, 1966), p. 7. 21 John Friedmann, Regional Development .Pol icy (Cambridge, Mass.: M.I.T. Press, 1966), Chapter 5, pp. 60-98. 34 In concluding his definition of the role of regional planning, Friedmann suggests that i t should include: (a) delineating development and programming regions; (b) formulating objectives for the spatial organization of the economy in the context of national planning; (c) engaging in regional economic, sociological, and geographic investigations; (d) establishing an interregional data system; (e) drawing up a general system of priorities for regional investments; (f) formulating development strategies for each of the major development regions identified that may serve as a reference guide for the specification and evaluation of more detailed regional programs; (g) initiating and providing continuing support of a comprehensive programming process in a number of key areas; (h) evaluating proposed investment projects for their locational efficiency, their consistency with other planned investments, and their implications for regional development. Regional planning, then, is viewed as a highly technical, complex assault on regional economic disparity. Again, i t is necessary to point out that adequate consideration is not given to the effect of the national government i t s e l f as an agent in the economy. The next chapter will document the efforts of France to do just this. Ibid., p. 100. 35 D. SUMMARY This has been a brief look at a broad range of theory, coupled with an examination of the policy issues arising out of basic dichoto-mies in theoretical outlook. Some of Friedmann's typologies concerning regional economic policy have been examined, and some criticisms offered. The next chapter continues the emphasis on policy problems with an examination of the experience of France, Britain and the United States in urban and regional policy. The Canadian situation is discus-sed briefly, and the concept of a national urban goowth strategy is elaborated upon. CHAPTER III URBAN AND REGIONAL DEVELOPMENT POLICY A. INTRODUCTION This chapter turns to more practical aspects of urban and region-al development policy at the national level. First, the experience of selected foreign countries in this f i e l d is reviewed. France was chosen because that country has more in this area than any other major Western nation. Britain was selected because that country has a record of developing regional policies with an important social input. The United States was chosen to show the effects of the North American milieu, and because i t has a federal structure similar in many (but not a l l ) ways to Canada's. The Canadian situation is then briefly discussed, and the chapter concludes with a discussion of a national urban growth strategy in the Canadian context. B. EXPERIENCE OF SELECTED FOREIGN COUNTRIES IN URBAN AND REGIONAL POLICY (1) France (a) Introduction France provides an example of a country in which the standard expectations of the equilibrium school of theory failed to materialize. 1 Principle sources for this discussion are J.R. Boudeville, Problems of Regional Economic Planning (Edinburgh: Edinburgh University 37 More p a r t i c u l a r l y , development has concentrated i n the Pa r i s region to the extent that t h i s region became s e r i o u s l y congested, and the r e s t of France was compared to a d e s e r t . 2 The expected diseconomies f a i l e d to set i n at the centre and there was no spur to development of the p e r i -phery. The f r e e market was unable to assess the i n d i v i d u a l f i r m or household with the marginal cost of l o c a t i o n i n the Pa r i s region. A number of features of the French s i t u a t i o n enabled i t to cope with the problem i m a g i n a t i v e l y . F i r s t , France i s a u n i t a r y s t a t e , untrammelled by problems of the separation of powers common to fede r a l s t a t e s . Instead, l o c a l a f f a i r s i n France are administered through an ancient system of "departments," whose heads ("prefects") are appointed by the central government. Another f o r t u i t o u s f a c t o r i s the f a c t t h a t French economic theory has been unusually r i c h i n s o p h i s t i c a t e d region-al thought. Perroux, Boudeville and Lajugie have a l l helped to develop the idea of growth poles and growth axes as means of organizing economic growth. I t should be noted that the more conventional theories of von Tinmen, Losch and Weber were rejected because they d i d not correspond to French empirical experience. Press, 1966), and Niles M. Hansen, French Regional Planning (Bloomington Indiana U n i v e r s i t y Press, 1968). J-F. Gravier, Paris e t l e desert f r a n c a i s ( P a r i s , Le Portulan, 1947). 5 3 I t could be suggested here, however, that the federal form of organization introduces a s t r u c t u r a l d e c e n t r a l i z a t i o n , and that French problems of s p a t i a l organization have been compounded by the absence of p r o v i n c i a l centres of administration and decision-making. 38 One final unique aspect of the French experience is closely related to both the existence of a unitary state and the high quality of French economic thought. This is French system of national economic planning. Using input-output techniques, the Commissariat General du Plan prepares a four-year plan in association with the Minister of Finance. Although tentative investment decisions reflected in the plan are not binding, a network of reciprocal expectations is established. From the beginnings of national economic planning in France soon after World War II, the spatial allocation of resources was recognized as an important element in national growth. However, i t was not until the Fourth (1962-65) and Fifth (1966-70) Plans that an explicit regional emphasis emerged. While the Fourth Plan differentiated among congested, intermediate and lagging regions in regional policy, the distinction was fuzzy and the Plan did not recognize the differing opportunity costs of investments in each type of region. The Fifth Plan, backed up by a number of important regional administrative changes, established DATAR (Delegation a 1'amenagement du territoire et a Taction regionale) which explicitly linked economic and spatial planning under the Prime Minister's direct supervision. The Plan also introduced some urbaniza-tion techniques, which will be discussed further below. The general effect of national planning, then, was to pave the way for introducing a spatial dimension to economic management as a logical extension of past policy. 39 (b) Historical Background We have noted that the hierarchical system of local government in France, in which each of the prefects of the 95 departments is ap-pointed by the central government, has aided and abetted the trend to overconcentration in the Paris region. The disadvantages of such con-centration were f i r s t seen in strategic terms, and during the period between World War I and World War II some munitions plants and other vulnerable installations were moved to the south and southwest regions. A number of influences combined to give regional policy new importance after World War II. First, military considerations, based on French helplessness when the Germans took Paris, again played an important part in demonstrating the need for decentralization. Second, new opportunities could be seen in the requirements of postwar recon-struction. Finally, the new perspective which grew out of the Depres-sion and the war made the diseconomies of the position of Paris very 4 clear. The problem was brought to public light by J-F. Gravier, whose influential book was widely discussed. This work linked the problems of the congestion of the Paris region with the problems of poverty in other regions in the country for the f i r s t time. French policy owes a great deal to this early perception of the link between regional pover-ty and urban congestion. Thus, there were three good reasons for attacking the problem in a comprehensive fashion. First, congestion in Paris was reaching a ^J-F. Gravier, Paris et le desert francais (Paris, Le Portulan, 1947). * 40 c r i t i c a l point. Second, the problems of regional d i s p a r i t y could no longer be ignored. F i n a l l y , the new concern f o r national economic planning demanded a l t e r a t i o n s i n resource a l l o c a t i o n f o r e f f e c t i v e economic growth, and means of introducing a s p a t i a l element i n t o eco-nomic development. (c) The Response: 1950's The French responded during the 1950's with a program which, while more comprehensive and ambitious than that of any other country, made many mistakes c h a r a c t e r i s t i c of innovation. In 1955, the govern-ment embarked on a program to r e s t r i c t the growth of Paris by means of an embargo on new construction or expansion f o r non-social purposes. This program evolved as loopholes were plugged u n t i l 1960, by which '.  time s p e c i a l l e v i e s on c e r t a i n types of c o n s t r u c t i o n were charged and grants were paid to a s s i s t c o n s t r u c t i o n of b u i l d i n g s f o r s o c i a l purposes (schools, h o s p i t a l s , housing, e t c . ) . These measures, while of some e f f e c t , were inadequate i n view of the magnitude of the task, and the b e n e f i t s of t h e i r a p p l i c a t i o n were eroded by the increases i n automobile usage and the r i s e i n the general standard of l i v i n g . The more p o s i t i v e task of d i r e c t i n g growth away from the Paris region was undertaken by the Regional Development S o c i e t i e s e s t a b l i s h e d by the government i n 1955. These were stock companies which enjoyed c e r t a i n tax and other concessions, and which were designed to help finance i n d u s t r i a l enterprises w i l l i n g to locate i n lagging regions. Gradually t h e i r powers were widened, and by 1962 they accounted f o r 41 about 40% of aid intended for regional expansion.5 They had diff i c u l t y in raising capital, however, and were criticized for being conservative in their investment policies and for being unwilling to co-operate with other agencies concerned with regional development as the latter have emerged. In addition to the Regional Development Societies, the govern-ment in 1955 established the Economic and Social Development Fund, which had a national mandate to assist in financing programs of modern-ization, regional expansion, industrial and agricultural conversion, retraining and decentralization. The Fund was organized under the Minister of Finance and administered by an Advisory Committee of senior government o f f i c i a l s . In spite of these efforts, what scanty evidence there is shows that industries have tended to locate in areas of existing prosperity, though the program has directed a larger proportion of growth out to the provincial citie s . Thus, the experience of the French with polar-ized development is reinforced. In conjunction with the above efforts, the government in 1955 began a policy aimed at decentralizing its own administrative activi-ties. An inventory of government operations in the Paris region was prepared, resulting in a l i s t of services and establishments whose presence in the Paris region was not a necessity. Since the government Niles M. Hansen, French Regional Planning (Bloomington, Indiana University Press, 1968), p. 61. 6Ibid., pp. 68-71. 42 and nationalized industries account for roughly one third of annual capital formation, decentralization of appropriate government ac t i v i -ties could be a powerful tool in reducing congestion and furthering regional development. However, the program in practice was hampered by its modest scale and its inability to secure co-operation from the agencies concerned. Thus, decentralization of government activity did not receive the rigorous test in France which i t deserves, and i t awaits conclusive judgment. By the early 1960's i t was obvious that the combined effects of the above measures, while obviously ameliorating the situation somewhat, would not be sufficient to bring about the reversal of trends thought to be necessary by the national government. One important administra-tive reform had been achieved, however, in the formation of 21 program regions, groups of departments which were headed by regional prefects. The evolution of this system from its inception in 1955 has seen more and more authority given to the regional prefect, offering real hope that the antiquated system of departmental local government will be broken down. Armed with its experience of the 1950's and with some progress on the administrative side, the government was prepared to attempt to integrate national and regional economic planning, beginning with the Fourth Plan. (d) Regional Policy and the Fourth Plan The general objective of the Fourth Plan was to develop social capital in order to enable the private sector to more easily bring the 43 people the benefits of an affluent society. As mentioned above, the Plan differentiated among different types of regions, and i t proposed to concentrate its assistance to lagging regions in growth poles. The other innovations included making forecasts and setting objectives for employment and objective by region, and the introduction of regional sections in the Plan. But there was a fundamental conflict in that the Plan involved --both conceptually and in development of the regional sections -- a regionalization of national objectives rather than the opposite or an equal weight to both. Thus, the international prestige of the franc took precedence over housing and urban services, for example. It was apparent that a more determined effort would be required of the Fifth Plan. (e) Regional Policy and the Fifth Plan In addition to DATAR which, as noted, linked economic and physi-cal planning directly, a number of administrative reforms were institu-ted in the early 1960's which made the prospects for achievement of the regional objectives of the Fifth Plan much brighter. Among these were the formation of Regional Administrative Conferences, the increased power of regional prefects, and the establishment of a Fund for Inter-vention for Amenagement du Territoire. In addition, the government budget was regionalized, so that the total extent of government invest-ment in a given region could be monitored. The latter effort was less than decisive in its effect, since the question of spillovers greatly complicated matters, but i t represented at least a step in the direction 44 of establishment of a regional balance of payments system. The Fifth Plan emphasized the effects of increased international competition (due to the Common Market and other arrangements), the need for greater labour mobility, and the need for more public capital and services. Within this context, the Plan proposed to advance the indus-trialization of the western region, to increase assistance to urban areas to cope with new industrial population, and to improve transport-ation and communications. The Plan proposed to organize urbanization by means of several techniques. (f) Urbanization Techniques of the Fifth Plan The Fifth Plan bases its urbanization policy on the development of a hierarchy of cities: a conceptual framework designed to bring about some functional decentralization of urban growth. The highest level in the hierarchy below Paris is that of the eight metropoles d'equilibre (Lyon, Marseille, Bordeaux, L i l l e , Strasbourg, Toulouse, Nantes and Nancy). These cities would become, in effect, provincial capitals. In addition, there would be intermediate centres (eg. Nice, Grenoble), which would perform lower order functions. Finally towns and rural villages would form the base of the hierarchy. The Plan proposes a psychological commitment on the part of public and private enterprise to use the metropoles as focuses of attention for growth outside the Paris region. 45 I t remains to be seen how e f f e c t i v e t h i s p o l i c y w i l l be, and i t i s f r a n k l y experimental. There i s evidence to suggest 7 that the s e l e c -t i o n of metropoles has been somewhat i l l - c o n c e i v e d , i n that some other c i t i e s are already growing f a s t e r or f o r some reason w i l l n a t u r a l l y have more influence than the chosen metropole i n a given region. A l s o , there i s no i n t r i n s i c reason why a whole region cannot be a metropole, as appears to be the empirical case i n the Rhone-Alps region. With regard to the continued growth of P a r i s , the F i f t h Plan proposes the concentration of urban development along two axes corres-ponding roughly to the north and south sides of the Seine v a l l e y . These axis w i l l be designated zones a urbaniser de p r i o r i t y , and amount Q to a l i n e a r c i t y . They w i l l contain eight new towns ranging i n s i z e from 35,000 to 300,000 i n population. (g) Assessment of the French Experience I t i s e a r l y y et to assess the most recent French p o l i c i e s con-tained i n the F i f t h Plan. However, one dominant impression i s that f o r a l l the e f f o r t s of a strong central government committed to the reorgan-i z a t i o n of the space-economy, there are no signs of a major s h i f t i n the basic trends. But success i n such things i s d i f f i c u l t to judge. One must consider what might have happened had the national government had no such commitment. I t seems reasonable to conclude that the Niles M. Hansen, French Regional Planning (Bloomington, Indiana U n i v e r s i t y Press, 1968), p. 244. g David N. Kinsey, "The French Z.U.P. Technique of Urban Develop-ment," Jojjrnj^. of the_ A j ^ Vol. 35, No. 6 (November, 196977 PP- 369-75. 46 problems would have been much more s e r i o u s , and that the strong meas-ures discussed above have had at l e a s t some e f f e c t . French experience has been characterized by a co n s i s t e n t p r i o r -i t y f o r urban and regional p o l i c y being taken by the national govern-ment. The B r i t i s h experience, to which a t t e n t i o n i s now turned, represents a story of e a r l y perception of the nature of the problem with remarkable c l a r i t y and twenty years of bungling before t h a t perception i s accepted. ( 2 ) Great B r i t a i n (a) Introduction On the face of i t , the B r i t i s h problem from the perspective of the e a r l y 1970 1s would appear to be s i m i l a r to that of France: how to cope with problems of congestion and regional poverty r e s u l t i n g from the dominance, both economic and p o l i t i c a l , of a large metropolitan region. However, there are important d i f f e r e n c e s between the two co u n t r i e s , both i n the nature of the problem and i n the p o l i c y response. F i r s t , the problem has not been as acute as was the case i n France; Great B r i t a i n has a number of p r o v i n c i a l centres with a healthy l i f e of t h e i r own. Related to t h i s i s the long t r a d i t i o n of l o c a l self-govern-ment i n B r i t a i n , i n contrast to the French system of departmental government. In a d d i t i o n , due to B r i t a i n ' s smaller land area which contains roughly the same s i z e of population as France, the physical environment i s more e a s i l y perceived as a f i n i t e national resource, to be used with care and e f f i c i e n c y . P a r t l y because of t h i s concern, the 47 B r i t i s h response to the problem has been l a r g e l y i n s o c i a l terms r e l a t e d to problems of density and d i s t r i b u t i o n (housing, unemployment, h e a l t h , e t c . ) . Thus, there i s less evidence of a Grand Design i n the B r i t i s h approach than i n the French. The r e s u l t has been some serious short-comings due to lack of comprehensiveness, while d i r e c t e f f o r t s to attack c l e a r c u t problems have met with some notable success.^ Urban p o l i c y and regional development p o l i c y up to 1960 w i l l be dea l t with as separate issues here, since they were regarded as such by the popular wisdom of t h i s period. (b) B r i t i s h Regional P o l i c y to 1960 The e a r l y antecedents of B r i t i s h regional development p o l i c y l i e i n the establishment of the I n d u s t r i a l Transference Board i n 1928, which was authorized to r e t r a i n and a s s i s t i n the r e l o c a t i o n of labour i n an e f f o r t to equalize i n d u s t r i a l labour demand and supply. The Depression led to the passage i n 1934 of the Special Areas Act to a s s i s t South Wales, Northeast England, West Cumberland and Clydeside-North Lancashire. The areas excluded towns and c i t i e s from ass i s t a n c e , which was provided by Commissioners to aid i n e s t a b l i s h i n g trading estates ( s i m i l a r to i n d u s t r i a l parks). Tax inducements were offered i n addition to d i r e c t a i d , and labour m o b i l i t y was increased by means of broadened i n d u s t r i a l transference arrangements. On balance, the pro-gram appears to have met with modest success. The Commissioners were P r i n c i p a l sources f o r t h i s section are Lewis Keeble, Town Plan-ing at the Crossroads (London: The Estates Gazette, 1961), and Gavin McCrone, Regional P o l i c y i n B r i t a i n (London: " George A l l e n & Unwin, 1969). 48 hampered by lack of f i n a n c i a l resources, the exclusion of towns and c i t i e s which could be used as growth p o i n t s , and the Depression i t s e l f ] 0 The government i n 1937 appointed a Royal Commission on the Dis-t r i b u t i o n of the I n d u s t r i a l Population under S i r Montague Barlow, which made an i n t e n s i v e review of the l o c a t i o n of population r e l a t i v e to j o b s , and the more abs t r a c t problem of the d i s t r i b u t i o n of the economic a c t i v i t y i n a s p a t i a l context. Its r e p o r t 1 1 was published i n 1940, and i t was overshadowed by the national concern with the War. This was unfortunate, f o r the report surveyed the problems and proposed s o l u t i o n s i n a manner whose comprehensiveness was not to be matched f o r more than twenty years. On s t r a t e g i c , economic and s o c i a l grounds, the Barlow report found that the e x i s t i n g trends i n the geographical d i s t r i b u t i o n of industry and population were undesirable. The commission agreed on the need to influence these trends i n the f u t u r e , and on the p a r t i c u l a r need to r e s t r a i n the growth of the London region. I t s major f i n d i n g s are summarized by Gavin McCrone as f o l l o w s : (1) That national action was required to i n f l u e n c e the d i s t r i b u t i o n of industry and population and that a Central A u t h o r i t y should be set up f o r t h i s purpose. (2) The objectives were to redevelop the congested urban areas coupled with d e c e n t r a l i z a t i o n of industry and population, and to achieve a regional balance of d i v e r s i f i e d i ndustry. Gavin McCrone, Regional P o l i c y i n B r i t a i n (London: George A l l e n & Unwin, 1969), pp. 99-102. n Report of the Royal Commission on the D i s t r i b u t i o n o f the I n d u s t r i a l Population, T l o n d o n : HMSO, Cmd. 6153, 1940). 49 (3) The use of garden c i t i e s , s a t e l l i t e towns, expansion of r u r a l towns and trading estates was to be reviewed as a means of implementing t h i s p o l i c y . (4) Assistance should be given to Local A u t h o r i t i e s to t a c k l e the problem r e g i o n a l l y and the Central A u t h o r i t y was to have the r i g h t to inspect a l l planning schemes. (5) The A u t h o r i t y was to be responsible f o r research on the l o c a t i o n of industry and the use of natural resources. I t was to be able to a n t i c i p a t e depression and encourage development before depression o c c u r s J 2 The commission thus recognized the l i n k between physical and s o c i a l ur-ban problems and regional economic d i f f i c u l t i e s and proposed a program of coherent a c t i o n . The report was notable f o r i t s economic emphasis: most other B r i t i s h a c t i o n has concentrated on the s o c i a l symptoms of problems which are e s s e n t i a l l y economic, as w i l l be seen below. The Barlow report was the foundation of the D i s t r i b u t i o n of Industry Act of 1945, which redefined and renamed the Special Areas as Development Areas (now i n c l u d i n g c i t i e s ) . R e s p o n s i b i l i t y f o r adminis-t r a t i o n of the Act was placed with the Board of Trade, which was empowered to b u i l d f a c t o r i e s , expropriate l a n d , make loans f o r i n d u s t r al e s t a t e s , provide basic p u b l i c s e r v i c e s , reclaim d e r e l i c t l a n d , and undertake s p e c i a l p r o j e c t s . One f u r t h e r power was placed i n the hands of the Board of Trade s h o r t l y a f t e r the Act was passed. This was r e s p o n s i b i l i t y f o r the b u i l d i n g l i c e n s i n g system, a wartime measure which allowed a degree of control over i n d u s t r i a l b u i l d i n g , which was 1 2 6 a v i n McCrone, Regional Policy, in B r i t a i j i (London: George A l l e n & Unwin, 1969), pp. 102-103. 50 replaced and put on a peacetime basis by the Town and Country Planning Act of 1947. Thus, the B r i t i s h Board of Trade, through i t s administra-t i o n of the i n d u s t r i a l development c e r t i f i c a t e system, as i t was c a l l e d , exercised power over a l l of B r i t a i n s i m i l a r to the power exerted by the French i n the Paris region during the French d e c e n t r a l i z a t i o n e f f o r t s of the 1950's. Another important p o l i c y formulated during the period immediately f o l l o w i n g the war was the b u i l d i n g of new towns, made necessary by the r e b u i l d i n g of war damaged urban areas at lower d e n s i t i e s . Such towns were s p e c i f i c a l l y l i n k e d with the i n d u s t r i a l estates program, but the p o l i c y languished with the coming to power of the Conservatives i n 1951. The d i f f e r e n t philosophy of the Conservative government and the p a r t i a l success of regional p o l i c y i n overcoming d i s p a r i t y combined to reduce the importance of regional development during much of the 1950's. By 1958, however, a general economic decline had begun to take i t s t o l l , and the problems of backward areas again became c r i t i c a l . In 1958, the Development Areas were expanded f u r t h e r , and Development Places (smaller areas of acute d i s t r e s s ) were added. This measure t i e d assistance to unemployment c r i t e r i a more c l o s e l y than before, and represented the predominance of s o c i a l objectives over economic needs i n the formulation of regional p o l i c y . This predominance was short-l i v e d , however, since 1960 represented a turning point i n B r i t i s h s p a t i a l p o l i c y , as w i l l be seen a f t e r developments on the urban p o l i c y scene are documented up to 1960. 51 (c) B r i t i s h Urban Development P o l i c y to 1960 B r i t i s h urban development p o l i c y has also shown a strong o r i e n -t a t i o n towards s o c i a l concerns ( h e a l t h , housing, s a f e t y , e t c . ) , and dates from the Public Health Act of 1875. I t has been s t r o n g l y i n f l u -enced by such s o c i a l reformers as Ebenezer Howard (garden c i t i e s ) and Pa t r i c k Geddes (regional environmental planning). L e g i s l a t i o n between the wars was l a r g e l y concerned with e s t a b l i s h i n g town (and l a t e r town and country) planning, as a l e g i t i m a t e governmental f u n c t i o n . I t w i l l be remembered that the Barlow report made a number of recommendations of relevance to urban p o l i c y . One of these, the forma-t i o n of a M i n i s t r y to deal w i t h planning, was implemented as e a r l y as 1943. The e l e c t i o n of the Labour Government i n 1945 r e s u l t e d i n a fl o o d of new i n i t i a t i v e s . One of these was the New Towns Act of 1946, which showed a commitment to t a c k l e the problem of metropolitan decen-t r a l i z a t i o n wholeheartedly, and adopted the method of using independent development corporations appointed by the M i n i s t e r to b u i l d new towns. The Town and Country Planning Act of 1947 was the b l u e p r i n t f o r postwar B r i t i s h planning p o l i c y , reorganizing the d i s t r i b u t i o n of planning powers among l o c a l agencies, and s e t t i n g out procedures to be followed i n the preparation of plans. However, these i n i t i a t i v e s f e l l short of expectations, p a r t l y because too much was attempted at once, and p a r t l y because of the i n a b i l i t y of the M i n i s t r y of Town and Country Planning to secure f u l l co-operation from other agencies of government. During the Conservative period (1951-64), considerable e f f o r t was exerted to downgrade planning as a governmental f u n c t i o n , although 52 a strong commitment to housing remained. During t h i s p e r i o d , only one new town (Cumbernauld) was b u i l t , and the Town Development Act (1952) instead provided assistance f o r the expansion of e x i s t i n g towns. One new element of p o l i c y was the green b e l t p o l i c y of Mr. Duncan Sandys, which was es t a b l i s h e d i n 1954. I t esta b l i s h e d green b e l t s around towns to be preserved i n pe r p e t u i t y , and i t has been the subject of much c r i t i c i s m f o r being too r i g i d . The M i n i s t r y of Town and Country Plan-ning underwent a s e r i e s of name changes, emerging as the M i n i s t r y of Housing and Local Government. On a regional s c a l e , the d i v i s i o n of powers between the M i n i s t r y and other government agencies ( M i n i s t r y of Transport, Board of Trade, etc.) did not permit the formulation of a u n i f i e d p o l i c y r e s o l u t e l y c a r r i e d out. To 1959, then, the Conservative stewardship of urban p o l i c y had been j u s t that -- conservative stewardship. I t remained to the re q u i r e -ments of the 1960's and a change i n government to bring about new prog-ress i n t h i s area. (d) The 1960's: Beginnings of a New Comprehensiveness There are three i n d i c a t i o n s of the e a r l y 1960's being a watershed i n s p a t i a l p o l i c y i n B r i t a i n . F i r s t , by 1960 i t was obvious t h a t regional poverty was more c r i t i c a l than a t any time since 1939. Second, i n 1960 the D i s t r i b u t i o n of Industry Acts were repealed and replaced by the Local Employment Act, the foundation of a new type of regional p o l i c y . F i n a l l y , the government ind i c a t e d that a high p r i o r i t y e x i s t e d f o r regional p o l i c y once again, but that i t would focus on the problem of s t i m u l a t i n g growth, rather than j u s t ameliorating d i s t r e s s . 53 On the urban p o l i c y scene, some new departures were also made at t h i s time. The appointment of the Buchanan Royal Commission i n t o the e f f e c t s of motor t r a n s p o r t a t i o n on urban areas r e s u l t e d i n a d e f i n i t i v e 13 work on the problem of urban t r a n s p o r t a t i o n . In 1961, the New Towns Commission was set up to take over ownership and management of new towns from the development commissions once the towns were complete. More important, by 1963 the f i r s t r e a l r e c o g n i t i o n since the Barlow report of the i n t e r r e l a t i o n s h i p s of regional p o l i c y , urban p o l i c y , transport and country planning had begun to dawn. This recog-n i t i o n came about i n three stages. F i r s t , the Local Employment Act of 1960 g r e a t l y streamlined the p r o v i s i o n of assistance to lagging regions, removing many of the previous c o n s t r a i n t s . Next, two White Papers published i n 1963^ on Scotland and Northeast England recognized the need to stimulate economic growth as the only means of permanently reducing unemployment. The means f o r t h i s s t i m u l a t i o n were to be to designate growth areas i n the regions concerned, and to co-ordinate p u b l i c p o l i c y i n order to give these areas greater advantages. In the same year, the Budget and Local Employment Act amended and g r e a t l y strengthened the assistance already a v a i l a b l e f o r regional development. The f i n a l stage i n the evolu t i o n of B r i t i s h s p a t i a l p o l i c y toward a more comprehensive view came with the l e g i s l a t i o n of the Labour 13 T r a f f i c i n Towns (The s p e c i a l l y shortened e d i t i o n of the Buchanan Report),""(London: Penguin Books, 1963). 14 The White Papers were based on the fi n d i n g s of the T o o t h i l l Report on the S c o t t i s h Economy (1960-61), and the Hailsham Report on the Northeast (1963). 54 government elected i n 1964. The I n d u s t r i a l Development Act of 1966 abolished the Development D i s t r i c t s and replaced them with new Develop-ment Areas, containing more than 40% of B r i t a i n ' s land area and 20% of the population. Scheduling of areas was no longer contingent upon employment c r i t e r i a alone, and the enlargement of the areas allowed more room f o r l o c a t i o n a l choice, which i n turn permitted the operation of natural growth dynamics. Thus, by 1966 the government had at i t s disposal a wide range of t o o l s f o r i n f l u e n c i n g the d i s t r i b u t i o n of population and economic a c t i v -i t y i n Great B r i t a i n . In a d d i t i o n , there were a number of c o n t r o l s on construction i n the form of the old I n d u s t r i a l Development C e r t i f i c a t e system, which were more r i g o r o u s l y applied than under the Conservatives. In 1963, an obvious gap was f i l l e d when s i m i l a r controls were placed on the l o c a t i o n of w h i t e - c o l l a r a c t i v i t y , since o f f i c e s comprised 50% of new construction by that time. These c o n t r o l s , o r i g i n a l l y applied to the London area, were gradually extended to other urban centres, and required the prospective b u i l d e r to show that i t was e s s e n t i a l to his own and the p u b l i c i n t e r e s t that he be allowed to locate i n the r e s t r i c t e d area. A more recent innovation i n B r i t i s h regional p o l i c y was the Regional Employment Premium system which, even i f governed by an employ-ment c r i t e r i o n , i s the f i r s t program to subsidize labour costs d i r e c t l y . This subsidy i s paid by means of exemptions from the S e l e c t i v e Employ-ment Tax on an employer i n manufacturing i n d u s t r y , provided that the industry claiming the exemption i s i n a Development Area. 55 Another weapon i n the government arsenal i s the growth of national and regional planning. The Labour Party i s h e a v i l y committed to national economic planning, and, soon a f t e r taking o f f i c e , assigned r e s p o n s i b i l i t y f o r co-ordinating economic planning to the M i n i s t r y of Economic A f f a i r s . The M i n i s t r y has been developing a co-ordinating r o l e i n regional economic planning. Up to t h i s time regional planning had been approached i n an e s s e n t i a l l y physical sense by the M i n i s t r y of Housing and Local Govern-ment under the revised Town and Country Planning Act. The culmination of the M i n i s t r y ' s work i n t h i s area was the South East Study of 1964, which was accompanied by a White Paper accepting most of i t s recommen-dations. The subject of the study i s the problems of B r i t a i n ' s most important metropolitan r e g i o n , containing 35% of the B r i t i s h population and the powerful London.metropolitan area. The study accepts the e x i s t -ing growth trends as too powerful to stop, but proposes to modify the trends i n two ways. F i r s t , the increase i n t o t a l population of the region i s to be reduced by means of pursuing energetic p o l i c i e s to secure economic growth i n other regions of the country. Second, w i t h i n the South East, growth i s to be d i v e r t e d away from the London region, and towards the f r i n g e zone of the South East, 40 to 110 miles from central London. The l a t t e r o b j e c t i v e i s to be achieved by the formation of three new c i t i e s and many expanded towns, along with r e s t r i c t i o n s on growth i n the London area. Thus, the l i n k between urban congestion and regional d i s p a r i t y i s recognized, 24 years a f t e r the p u b l i c a t i o n of the Barlow report. 56 In the meantime, the M i n i s t r y of Economic A f f a i r s was proceeding with i t s program to develop e f f e c t i v e regional economic planning, d i v i d -ing England i n t o 8 regions which, with Scotland, Wales and Northern I r e l a n d , make up a t o t a l of 11 planning regions. Two bodies d i r e c t the planning e f f o r t i n each case. The Regional Economic Council i s made up of l o c a l businessmen, trade u n i o n i s t s and the l i k e , and advises the Regional Economic Planning Board. The l a t t e r i s made up of c i v i l s e r -vants representing various departments involved i n a c t i v i t y i n the region, under the general co-ordination of the M i n i s t r y of Economic A f f a i r s . In t h i s way, l a t e r a l l i n k s are provided i n an e f f o r t to ensure a comprehensive approach. But the regional planning programs of the M i n i s t r y of Housing and Local Government and the M i n i s t r y of Economic A f f a i r s are not yet integrated under one a u t h o r i t y , and t h i s must i n e v i t a b l y lead to prob-lems of lack of co- o r d i n a t i o n , r i v a l r y and d u p l i c a t i o n of e f f o r t . Further, i t would appear that unless B r i t i s h urban p o l i c y i n general i s merged with regional development programs, progress w i l l be very s e r i o u s l y impeded. (e) Assessment of B r i t i s h Experience B r i t i s h urban and regional development p o l i c y has been, then, very much a stop-and-go, experimental a f f a i r . A f t e r an outstanding d e f i n i t i o n of the problems i n 1940 and a spate of w e l l - i n t e n t i o n e d l e g i s l a t i o n immediately f o l l o w i n g the Second World War, B r i t i s h p o l i c y i n t h i s area languished f o r most of the 1950's. The 1960's have seen a new emphasis on economic considerations rather than s o c i a l symptoms 57 of economic problems, and a new r e c o g n i t i o n of the r e l a t i o n s h i p between urban development and regional economic d i s p a r i t y -- a r e c o g n i t i o n which has s t i l l to be given f u l l p r a c t i c a l e f f e c t . At the same time, the marriage of national economic planning on the one hand, and regional economic and physical planning on the other, i s being consummated by degrees. (3) United States (a) Introduction In the case of the United S t a t e s , a new element enters the p i c -t u r e : the federal system of government. This f a c t o r has a double-edged e f f e c t i n that i t introduces a s t r u c t u r a l form of d e c e n t r a l i z a t i o n of government, while i t f r u s t r a t e s the e f f o r t s of a l l l e v e l s of government to take e f f e c t i v e a c t i o n to deal with problems of s p a t i a l o r g a n i z a t i o n . The American case c o n s i s t s of p o l i c y development around three f o c i i : a housing ( l a t e r "housing and urban development") focus, a 15 s o c i a l focus, and a regional development focus. (b) The Housing Focus In 1892, the U.S. Congress appropriated the f i r s t funds to study slums. This was the only action on the housing f r o n t u n t i l the 1930's, 15 The p r i n c i p a l sources f o r t h i s s e c t i o n are: United States Advisory Commission on Intergovernmental R e l a t i o n s , Urban and Rural America: P o l i c i e s f o r Future Growth (Report No. A-32) Washington: Advisory Commission on Intergovernmental R e l a t i o n s , (1968); United Nations, Urbanization: DevelOpment P o l i c i e s and Planning ( I n t e r n a t i o n -a l S o c i a l Development B u l l e t i n #1) (New York, 1968), Appendix A, pp. 97-105, and a t a l k given by Niles M. Hansen to the Geography Department of Simon Fraser U n i v e r s i t y on February 12, 1970. 58 when the government began to a s s i s t states and m u n i c i p a l i t i e s with the construction of p u b l i c housing, and i n i t i a t e d a system of mortgage i n -surance. The 1949 National Housing Act added assistance i n slum c l e a r -ance to the expanded programs f o r p u b l i c housing and mortgage insurance. "Slum clearance" became "urban renewal" i n the 1954 National Housing Act, which began the massive i n f u s i o n of funds to urban areas f o r rede-velopment of v i r t u a l l y every s o r t . These p r o j e c t s , while providing some needed removal of b l i g h t , have also been h e a v i l y c r i t i c i z e d because of t h e i r undesirable s o c i a l e f f e c t s . In the e a r l y 1960's U.S. p o l i c y began to take on a more compre-hensive aspect. The Open Space Land Program, begun i n 1961 , provided f o r federal assistance to municipal a u t h o r i t i e s f o r a c q u i s i t i o n of parks and other types of open space. But up to t h i s p o i n t , the goals of major federal programs had lacked cohesiveness. In 1965, the Department of Housing and Urban Development (HUD) was formed from the Housing and Home Finance Agency, with a mandate to combine a l l federal e f f o r t s i n the urban development f i e l d . The department i n i t i a t e d a system of planning, programming and budgeting, and v a s t l y expanded i t s research support, making research a major thru s t of i t s p o l i c y . A new comprehensiveness was r e f l e c t e d i n the Model C i t i e s Program, begun i n 1966, which permitted the combined use of p u b l i c and p r i v a t e resources i n the redevelopment of e n t i r e sec-tions of urban areas. This i s a demonstration program, concentrating on support f o r p r a c t i c a l experimentation on a huge sca l e i n urban redevelopment. 59 United States urban development p o l i c y has thus been character-i z e d by a process of growth by a c c r e t i o n , to the point where the federal government i s h e a v i l y involved i n urban a f f a i r s . At the present time, the federal government's r o l e i s to i d e n t i f y the national i n t e r e s t , then to provide f i n a n c i a l i n centives and technical support to l o c a l programs. 1 6 Local a u t h o r i t i e s are expected to provide i n i t i a -i v e , d e t a i l e d d i r e c t i o n and a d m i n i s t r a t i o n . But i n p r a c t i c e , federal involvement has been somewhat more aggressive. F i r s t , i t i s d i r e c t e d towards making b e t t e r use of the pu b l i c i n f r a s t r u c t u r e by c o n t r o l l i n g and co-ordinating assistance i n sewer, water and transport services as a means of d i r e c t i n g urban growth. Second, federal assistance w i l l be used to encourage compre-hensive planning of growth sources on metropolitan s c a l e . T h i r d , the government w i l l attempt to encourage more ingenious use of open space lands as a means of channelling urban, growth. F i n a l l y , the federal government might take an urban renewal approach to the development of suburban lands, i n v o l v i n g p u b l i c ownership and development of large 17 t r a c t s . I t should be noted that the above group of p o l i c i e s does not make any judgment as to the appropriate d i s t r i b u t i o n of urban growth '"United Nations, Urbanization: Development P o l i c i e s and Plan-ning ( I n t e r n a t i o n a l Social Development B u l l e t i n #1) (New York, 1968), p. 97. ^ U n i t e d Nations, Urbanization: Development P o l i c i e s and Plan-ning ( I n t e r n a t i o n a l Social Development B u i l e t i n #1) (New York, 1968), p. 97. 60 throughout the country or among various types of c i t y . Thus, the o r i g i n s of federal p o l i c y as a response to the c r i s e s of growth can be c l e a r l y seen, and p o l i c y has not reached the s o p h i s t i c a t e d l e v e l that i t has i n B r i t a i n and France, (c) The Social Focus The concern of the national government f o r the p l i g h t of the nation's poor began l a t e r i n the New F r o n t i e r a d m i n i s t r a t i o n of the l a t e President John F. Kennedy. The major r e s u l t of t h i s concern was the Economic Opportunity Act of 1964, which provided f o r assistance to community act i o n groups to enable them to attack the root causes of poverty through developing employment o p p o r t u n i t i e s , improving human performance, motivation and p r o d u c t i v i t y or b e t t e r i n g conditions under which people l i v e , learn and work. 1 8 Obviously, such a measure would have important e f f e c t s on urban s o c i a l r e l a t i o n s . But a new element of urgency was added by the r i o t s i n American Negro ghettoes, beginning with Watts i n 1964. These r i o t s emphasized the dimensions of a migration problem which had been growing f o r a century: poor, u n s k i l l e d blacks had been flowing i n t o the b i g c i t i e s from the South, seeking pr o s p e r i t y and encountering poverty, p r e j u d i c e , obsolescence and despair. I t i s not the purpose of t h i s paper to document the l a s t turbu-l e n t decade i n race r e l a t i o n s i n the United States. But the race issue Daniel P. Moynihan, Maximum Feasible, Misunderstanding (New York, The Free Press, 1969), p. 93. 61 has had important i m p l i c a t i o n s f o r national urban p o l i c y , p a r t i c u l a r l y at the implementation stage. Thus, urban renewal i s often damned f o r destroying v i a b l e urban ethnic communities. The a d m i n i s t r a t i o n of p u b l i c housing and welfare programs i s i n c r e a s i n g l y the object of at-tacks of r a c i s t abuse. On a more abstract l e v e l , strong a c t i o n on improving the urban environment i s seen as urgent i n order to avoid f u r t h e r r i o t s or more serious s o c i a l d i sorder. The debate continues, often i n highly emotional language, and the ghettoes smoulder, (d) The Regional Development Focus American ac t i o n on regional economic development began with the New Deal programs of the 1930's, the most notable of which was the Tennessee V a l l e y Authority (1933) which used p u b l i c works on a massive scale to overcome poverty i n that region. World War II put an end to the Depression, obviating the apparent need f o r f u r t h e r federal action 19 i n t h i s f i e l d u n t i l the 1960's. In 1961 the Area Redevelopment Act was passed, r e s u l t i n g i n a piecemeal, passive approach to regional economic development. In 1965, the Appalachian Regional Development Act e s tablished the Appalachian Regional Commission (ARC) to t a c k l e the problems of t h i s backward area. The Commission was empowered to provide tax incentives and d i r e c t subsidies to i n d u s t r i e s , and i t t r i e d to con-centrate i t s e f f o r t s w i t h i n the framework of a p r i m i t i v e system of growth centres. The program was hampered by the p o l i t i c a l l y i n s p i r e d Most of t h i s material i s based on a t a l k by N i l e s M. Hansen given to the Geography Department at Simon Fraser U n i v e r s i t y on February 12, 1970. 62 manipulation of the Appalachian region's boundaries, which now include parts of New York State and M i s s i s s i p p i . The Public Works and Economic Development Act of 1965 launched another agency, the Economic Development Administration (EDA), which replaced the system of multi-county d i s t r i c t s of the 1961 Act with f i v e new m u l t i - s t a t e regions. Under the A c t , EDA can provide a broad range of a s s i s t a n c e , but i t must be concentrated i n growth centres which the Administration has se l e c t e d w i t h i n each region. One r e s e r v a t i o n which c r i t i c s have about "this procedure i s the f a c t that the growth centres may not be large enough to have any r e a l e f f e c t on the growth of t h e i r regions. In addition to the problems of the Appalachia and EDA programs which have already been mentioned, there has been a paucity of co-oper-ation between the agencies. Thus, f o r example, the Coastal P l a i n s EDA region l i e s along the southern A t l a n t i c coast, while the Appalachian region l i e s several hundred miles f u r t h e r i n l a n d . Yet both programs not only ignore each other, but they also ignore the f a c t that the most v i t a l c i t i e s of t h a t area (Greensboro, Winston-Salem, A t l a n t a , etc.) and ide a l growth poles f o r e i t h e r region, l i e i n what Hansen c a l l s a " d e m i l i t a r i z e d zone" between the two regions, and do not q u a l i f y f o r ai d . Obviously, then, the United States has some distance to go before i t can be sa i d to have a t r u l y e f f e c t i v e regional development p o l i c y . (e) The Debate on a National Urban P o l i c y Most of the forces alluded to above have helped to stimulate a l i v e l y debate on an appropriate national urban p o l i c y . While a d e t a i l e d c h r o n i c l e of t h i s debate i s beyond the scope of t h i s work, i t may be u s e f u l to cover i t b r i e f l y , beginning with four highly s o p h i s t i c a t e d s t u d i e s which have appeared to help to s e r v i c e the debate. The four r e p o r t s are: B u i l d i n g the American C i t y (Report of the Commission on Urban Problems, Sen. Paul Douglas, Chairman. Washington: U.S. Govern-ment P r i n t i n g O f f i c e , 1969), The People L e f t Behind (Washington: Pres-i d e n t ' s Advisory Commission on Rural Poverty, 1968), Urban and Rural America: P o l i c i e s f o r Future Growth (Washington: Advisory Commission on Intergovernmental Relations Report No. A-32, 1968), and The New C i t y (Report of the National Committee on Urban Growth P o l i c y , W i l l i a m Canty, ed., Washington: Praeger, 1969). Each report postulates a r i s e i n U.S. population of 100 m i l l i o n by the year 2000, and each concludes that i t would be catastrophic to atterapt to accommodate t h i s increase w i t h i n the present system of large c i t i e s , as present trends i n d i c a t e w i l l happen. The reports p i n p o i n t the rural-push as we l l as the urban-pull aspects of migration p a t t e r n s , as a r e s u l t of federal farm p o l i c i e s , mortgage insurance measures, and the f a i l u r e of regional development programs. These f a c t o r s have re-s u l t e d i n 2/3 of the present population l i v i n g i n 230 metropolitan areas. The proposed response to t h i s challenge on the part of each of the reports v a r i e s , although there i s agreement on the need f o r massive 64 a c t i o n . The New C i t y recommends the b u i l d i n g of 110 new communities w i t h i n the next 30 years to provide homes and jobs f o r 20 m i l l i o n people. Ten communities would contain at l e a s t one m i l l i o n people each, while the other communities would average around 100,000 i n population. The People L e f t Behind places more emphasis on encouraging the growth of e x i s t i n g towns, p a r t i c u l a r l y i n lagging regions. Urban and Rural America endorses both of these s t r a t e g i e s . However, i t agrees with the Douglas report on the necessity of mounting a massive new e f f o r t to help solve the problems of e x i s t i n g c i t i e s . In Urban and Rural America, the ACIR goes i n t o a d e t a i l e d discus s i on of the r a t i o n a l e f o r a national urban growth s t r a t e g y . ^ I t showed that there were a number of j u s t i f i c a t i o n s f o r such a strategy. F i r s t was the existence of s i g n i f i c a n t e f f e c t s of government programs on the l o c a t i o n of population and economic a c t i v i t y and on the charac-t e r o f urban development. A r t i c u l a t i o n of an o v e r a l l strategy would give s p e c i f i c d i r e c t i o n to the e f f e c t s of these programs, both at state and f e d e r a l l e v e l s . Second, the government has already made important e f f o r t s to influence the process of urban and regional development (as o u t l i n e d above), but these e f f o r t s have been fragmentary and have often worked at cross-purposes. T h i r d , the Commission alludes to the serious consequences of allowing present trends to continue t h e i r random course United States Advisory Commission on Intergovernmental Rela-t i o n s , Urban and Rural America: P o l i c i e s f o r Future Growth (Washington Advisory Commission on Intergovernmental Rel a t i o n s , Report No. A-32, 1968), p. 125-127. 65 Fourth, a federal p o l i c y would a f f o r d an opportunity to a l t e r the d i r e c t i o n of e x i s t i n g trends which appear to r e i n f o r c e r a c i a l tensions. F i f t h , the ACIR f e l t that a continuation of present trends would tend to increase economic d i s p a r i t y i n the United States. Its s i x t h point was that continued poverty, r a c i a l problems and other products of urban growth trends would tend to lead to f u r t h e r piecemeal programs which might u l t i m a t e l y be more expensive -- and would c e r t a i n l y be less pro-ductive of r e s u l t s -- than a more comprehensive view. Seventh, a national p o l i c y would imply adequate planning process which would per-mit the consideration of a l t e r n a t e courses of action i n the l i g h t of long-term, far-reaching e f f e c t s , ending the past experience with un-happy by-products of w e l l - i n t e n t i o n e d p r o j e c t s . F i n a l l y , a national p o l i c y would enable the national government to undertake an a l l out offensive on the problems of e x i s t i n g big c i t i e s , while ac t i n g to ensure a more d e s i r a b l e d i s t r i b u t i o n of future urban population. The Commission proposes three basic thrusts f o r federal p o l i c y . F i r s t , the development of a na t i o n a l strategy should be begun immediate-l y at the cabinet l e v e l , i n v o l v i n g a l l aspects of the federal govern-ment's a c t i v i t i e s with an influence on urban development. Second, the Commission recommends the reassessment of the m u l t i - s t a t e regional planning areas and agencies. F i n a l l y , a new and expanding r o l e f o r state governments i s advocated by means of working out sta t e urban development plans. 66 (e) P r a c t i c a l Steps Towards a National P o l i c y I n h e r i t i n g HUD from Lyndon Johnson i n 1969, President Richard Nixon s i g n a l l e d a departure from past p o l i c y by appointing George Romney, a production man, as i t s head. He then e s t a b l i s h e d an Urban A f f a i r s C o u n c i l , modelled on the l i n e s of the National S e c u r i t y C o u n c i l , to "advise and a s s i s t him . . . i n the development of a national urban 21 p o l i c y . . . These two moves c l e a r l y i n d i c a t e d that HUD was to be b a s i c a l l y concerned with housing and matters d i r e c t l y r e l a t e d to hous-i n g , and the new C o u n c i l , to be headed by Daniel P. Moynihan, was to take the broader r e s p o n s i b i l i t y f o r developing the Administration's national urban p o l i c y . In a d d i t i o n , Nixon attempted to break the a l l i a n c e between HUD and the c i t y governments by t r a n s f e r r i n g the re-s p o n s i b i l i t y f o r the key Model C i t i e s program to the Urban A f f a i r s Council. Nixon also proposed to involve the states more than ever before i n t h i s program and i n federal e f f o r t s generally. 22 Moynihan, f o r his p a r t , has set out ten guides to urban p o l i c y , pointing out: (1) the poverty and s o c i a l i s o l a t i o n of minority groups i n central c i t i e s i s the s i n g l e most important problem of the American c i t y today; (2) that economic and s o c i a l forces i n urban areas are not s e l f -e q u i 1 i b r a t i n g ; "National P o l i c y f o r the Urban C r i s i s , " Resources, No. 23, January, 1970, (Washington: Resources f o r the Future, Inc.) p. 22. 22 I b i d . , p. 23. 67 (3) that the i n e f f e c t i v e response of l o c a l government to urban problems derives from the fragmented and obsolescent s t r u c t u r e of urban government i t s e l f ; and (4) that the primary object of federal urban p o l i c y must be to restore the f i s c a l v i t a l i t y of urban government. He then suggested that federal urban p o l i c y should: (5) seek to equalize the p r o v i s i o n of p u b l i c services as among d i f f e r e n t j u r i s d i c t i o n s ; (6) assert a s p e c i f i c i n t e r e s t i n the movement of people; (7) support and encourage the state governments to carry out t h e i r r o l e i n urban a f f a i r s r e s p o n s i b l y ; (8) develop and put i n t o p r a c t i c e more e f f e c t i v e i n c e n t i v e systems f o r states and l o c a l governments; (9) provide more and bett e r information concerning p u b l i c a f f a i r s ; and (10) develop a heightened sense of the f i n i t e resources of the natural environment and the fundamental importance of ae s t h e t i c s i n successful urban growth. One need hardly add that t h i s i s a modest undertaking i n consid-e r a t i o n of the magnitude of the task as o u t l i n e d by the ACIR and the other reports. There i s p r o v i s i o n f o r information about p u b l i c a f f a i r s , but no concern f o r the s p a t i a l d i s t r i b u t i o n of national urban growth. There i s "concern f o r the movement of people," but not concern f o r the de s i r a b l e d i s t r i b u t i o n of population among c i t i e s of various s i z e s . Perhaps the shortcomings of the ten points are somewhat i r r e l e -vant, f o r the Council has been weakened by i t s i n a b i l i t y to enforce agency compliance i n the federal establishment and by the promotion of Moynihan to the p o s i t i o n of P r e s i d e n t i a l Counsellor. What has been achieved i s the wresting of r e s p o n s i b i l i t y f o r urban p o l i c y from HUD, 68 with i t s preoccupation with housing. However, the new machinery f o r development of a national urban p o l i c y f o r the United States does not hold promise f o r e a r l y success. ( f ) Assessment of the United States Experience In the United States, then, slow progress has been noted under three broad f o c i i : housing, s o c i a l p o l i c y and regional development. I t i s unfortunately true that the development of p o l i c y has been spur-red on by r i o t s and s o c i a l d i s o r d e r s . While the importance of a comprehensive approach has been recognized i n a great deal of high q u a l i t y research conducted p r i m a r i l y by government agencies, government e f f o r t s to act on t h i s research have been meagre and half-hearted. Of p a r t i c u l a r note i s the f a i l u r e of the Nixon administration's new urban agency to recognize the true dimensions of i t s r e s p o n s i b i l i t y . C. THE CANADIAN CONTEXT (a) Introduction This s e c t i o n deals b r i e f l y with the Canadian context, dealing with the c o n s t i t u t i o n a l context and an overview of the two main f o c i i of Canadian p o l i c y i n t h i s f i e l d : the housing focus and the regional development focus. (b) The C o n s t i t u t i o n a l Context The B r i t i s h North America Act, the basic Canadian c o n s t i t u t i o n a l document, i s c l e a r enough on the issue of urban a f f a i r s : under Section 92, "Municipal I n s t i t u t i o n s i n the Province" are l e f t s o l e l y to the 69 p r o v i n c i a l governments. However, the proponents of a stronger f e d e r a l r o l e have often protested that the Fathers of Confederation could never have foreseen the extent of urban development i n Canada today. Further, the federal government has important r e s p o n s i b i l i t i e s (eg. t a x a t i o n , r e g u l a t i o n of trade and commerce, and shipping) which bear t a n g e n t i a l l y , i f not d i r e c t l y , on urban development. While regional economic development i s not s p e c i f i c a l l y mentioned i n the BNA Act, part of the o r i g i n a l reason f o r the banding together of the provinces was to r a i s e and equalize the standard of l i v i n g i n each province. This f a c t o r , combined with federal r e s p o n s i b i l i t y f o r a l l matters not s p e c i f i c a l l y assigned to the provinces, provides a j u s t i f i -c a tion f o r the federal presence i n regional economic development. 23 Regarding the federal s t r u c t u r e i t s e l f , Oberlander has docu-mented three basic r a m i f i c a t i o n s of federalism f o r urban development. F i r s t , the e s s e n t i a l l y conservative nature of federalism stands i n the way of e f f e c t i v e a c t i o n to deal with urban development. Second, the growing f i n a n c i a l stakes which senior governments have i n c i t i e s neces-s i t a t e s t h e i r support f o r comprehensive planning. T h i r d , l o c a l govern-ment requires a v a s t l y strengthened framework f o r dealing with urban development. An e a r l y e f f o r t to e s t a b l i s h a federal r o l e i n urban and regional development was made by the Commission of Conservation (1909-1921), H.P. Oberlander, "Community Planning and Housing: Step-Children of Canadian Federalism," Queen's Quarterly, LXVII (1961), No. 4, p. 665. 70 which had powers to deal with a l l matters of importance to the use of natural resources i n Canada. Thomas Adams, a B r i t i s h e c o l o g i s t and town planning enthusiast, was associated with the p u b l i c health commit-tee of the Commission, and was l a r g e l y responsible f o r the e a r l y establishment of a planning framework by most p r o v i n c i a l governments. (c) The Housing Focus As i n the United States, a major focus i n the development of the federal r o l e i n urban a f f a i r s i n Canada has been the area of housing. As i n the United States, t h i s involvement began with a l i m i t e d i n v o l v e -ment i n housing programs during the 1930's, with the passage of the Dominion Housing Act (1935) and the National Housing Act (1938). These measures were aimed as much at providing employment as housing. During World War I I , the government est a b l i s h e d Wartime Housing L t d . , which was responsible f o r f i n a n c i n g the cheap m u l t i p l e dwellings s t i l l strong-l y represented i n many Canadian c i t i e s . But federal involvement i n housing did not begin i n earnest u n t i l 1944 with the passage of the National Housing Act i n that year, whose main pro v i s i o n was f o r a system of j o i n t loans with p r i v a t e lend-ers f o r construction. The f o l l o w i n g year Central Mortgage and Housing Corporation was e s t a b l i s h e d as a crown corporation to administer federal p a r t i c i p a t i o n under the NHA. The development of housing p o l i c y w i l l be documented i n more d e t a i l i n Chapter V; i t i s s u f f i c i e n t here to note i t s growth by a c c r e t i o n , u n t i l by 1969 the federal government was i n -volved i n mortgage insurance,'urban renewal, p u b l i c housing, u n i v e r s i t y 71 housing and municipal sewage treatment, to name only the major areas. Indeed, the program i s so wide-ranging that some r e t h i n k i n g i s current-l y under way, as w i l l be documented below. (d) The Regional Development Focus A second, u n t i l r e c e n t l y less prodigious, area of federal p o l i c y has been the government's p a r t i c i p a t i o n i n various programs of regional economic development. In the 1930's the P r a i r i e Farm R e h a b i l i t a t i o n A d m i n i s t r a t i o n , again modeled a f t e r New Deal l e g i s l a t i o n , heralded a new concern f o r regional development. Although i t was not i n concept a regional i n t e g r a t i o n of resource development, i t answered an economic and p o l i t i c a l need. Again, the federal programs designed to aid i n regional and ru r a l development, the A g r i c u l t u r a l and Rural Development Agency (1961), the A t l a n t i c Development Board (1962), the Area Development Agency (1963), the Fund f o r Rural Economic Development (1966) and the new Department of Regional Economic Expansion (1969) w i l l be examined i n more d e t a i l below. But other programs of f i s c a l t r a n s f e r s and subven-ti o n s to various i n d u s t r i e s and regions have e x i s t e d almost since Confederation, making f o r a complex of secondary e f f e c t s . These are too numerous to document here, but two examples would include the Mari-time Freight Rates Act, dating back to the 1920's, which subsidized f r e i g h t rates f o r that region i n the amount of 20%, and the I n d u s t r i a l Development Bank, formed a f t e r World War I I to a s s i s t the foundation of new i n d u s t r i e s . These measures, and a host of others, make up a melange ;l 1 of arrangements which make the task of determining the true e f f e c t of fede r a l p o l i c i e s on regional development an almost hopeless task. The 1950 1s were marked by a pattern i n which the federal govern-ment gave assistance to worthy regional improvement projects on an ad hoc b a s i s , and the fortunes of such developments were hi g h l y vulnerable to the vagaries of p o l i t i c a l changes. These p r o j e c t s , mostly p u b l i c works on a massive s c a l e , would include the St. Lawrence Seaway, the South Saskatchewan River development and a large number of more modest developments. Also i n the 1950's, f e d e r a l - p r o v i n c i a l t r a n s f e r s f o r general purposes, whose roots were i n the tax r e n t a l agreements of World War I I , took on a s p e c i f i c emphasis on e q u a l i z a t i o n as a c r i t e r i o n f o r deciding on the amount of grants to be made to i n d i v i d u a l provinces. Thus, i n s o f a r as the fortunes of p r o v i n c i a l governments r e f l e c t the degree of regional poverty i n those provinces, the e q u a l i z a t i o n grants program i s a form of regional economic assistance. In terms of the e x p l i c i t regional development programs (ARDA, 24 ADA and the l i k e ) examined l a t e r i n t h i s paper, T.N. Brewis has ob-served t h a t "'[i]n every part of Canada, i n c l u d i n g the North, government i n t e r e s t i n development has waxed and waned." I t would appear, however, that government i n t e r e s t w i l l now be more constant, due to the recent formation of the Department of Regional Economic Expansion under the T.N. Brewis, Regional Economic P o l i c i e s i n Canada (Toronto-The Macmillan Company of Canada Limited, 1969)., p. 252^  73 Hon. Jean Marchand, which w i l l take over r e s p o n s i b i l i t y f o r administra-t i o n and co-ordination of a l l the d i r e c t a i d programs as documented below. I t i s apparent that the Department of Regional Economic Expansion w i l l be h e a v i l y involved i n urban development i n designated areas. I t i s authorized to provide assistance f o r v i r t u a l l y every p r o v i n c i a l or municipal endeavour, i n c l u d i n g l o c a l s t r e e t s , municipal s e r v i c e s , schools and even u n i v e r s i t i e s . For 1970-71 the Department has $79 m i l l i o n i n grants and $38 m i l l i o n i n grants a v a i l a b l e , and i t i s only g e t t i n g s t a r t e d . Thus, a connection between urban services and regional development i s made i n the federal assistance program, although i t remains to be seen how e f f e c t i v e co-ordination w i l l be with CMHC. D. A NATIONAL URBAN GROWTH POLICY This review of foreign experience and the Canadian context shows tha t few nations can report s i g n i f i c a n t success i n r e g u l a t i n g urban and regional development, and none can report a t r u l y e f f e c t i v e merging of these two areas of p o l i c y . I t i s also evident from the discussion that nations which have s e r i o u s l y pursued these p o l i c y goals to any extent (France and B r i t a i n ) have recognized that the two phenomena are two sides of the same c o i n , r e q u i r i n g a corresponding p o l i c y response. What, then, i s required of a national urban strategy? F i r s t , national p o l i c y must be informed by s o p h i s t i c a t e d i n f o r -mation regarding the d i s t r i b u t i o n of economic a c t i v i t y w i t h i n the national space, and the dynamics of that d i s t r i b u t i o n . Further, i t 74 must on the one hand have data on the r e a l costs of urban congestion which are not assessed to the marginal f i r m or household l o c a t i n g i n a large c i t y ; and, on the other hand, the costs to the economy of economic stagnation i n backward regions. Next, the national government must pinpoint areas of diseconomy caused by the d i s t r i b u t i o n of economic a c t i v i t y r e l a t i v e to the d i s t r i -bution of population. This information must be supplemented by data on the desires of the population and the needs of firms with respect to the s i z e and type of urban area they would pre f e r . (French studies 25 c i t e d by Hansen showed that more than h a l f a sample population i n the Paris region would locate elsewhere i f given an economic choice). Such information would be merged to produce a s e r i e s of a l t e r n a t i v e goal-d i s t r i b u t i o n s -- economically v i a b l e , s o c i a l l y d e s i r a b l e d i s t r i b u t i o n s of a c t i v i t y towards which p u b l i c and p r i v a t e p o l i c y could work. Once one of the g o a l - d i s t r i b u t i o n s was selected by the p o l i t i c a l process, the government's resources could be pressed i n t o s e r v i c e i n i n f l u e n c i n g growth. This e f f o r t would involve a l l three r o l e s of government: as provider of d i r e c t assistance (eg. housing and regional development), as regulator of the economy (eg. t r a n s p o r t a t i o n , f i s c a l and t a r i f f p o l i c y ) and as an economic establishment using and supplying goods and s e r v i c e s . A l l of these a c t i v i t i e s could be given regional dimensions. I t i s suggested here that i f such an approach were taken, the e f f e c t s on urban and regional development would be considerable. This Niles M. Hansen, French Regional Planning. (Bloomington: Indiana U n i v e r s i t y Press, 1968), pp. 34-37. 75 i s not to say that the goals would n e c e s s a r i l y be achieved, or that such an e f f o r t would obviate the need f o r co-operation from the other l e v e l s of government and the p r i v a t e sector. But the federal government could make s u b s t a n t i a l progress i n bringing about sound development i n the most important region -- the national space i t s e l f . I t i s to be noted here that no c o n f l i c t of c o n s t i t u t i o n a l j u r i s -d i c t i o n i s involved here: the federal government would be using the s u b s t a n t i a l powers to influenc e urban and regional a f f a i r s which i t already unquestionably has. I t i s also probable that t h i s i s the most e f f i c i e n t r o l e f o r the national government -- that d e t a i l e d matters of urban planning and government are best l e f t to the l e v e l c l o s e s t to the people involved. The f o l l o w i n g chapters w i l l present a n a l y s i s of the data c o l l e c t -ed to the emergence of some elements of such a st r a t e g y , Chapter IV dealing with the throne speeches and Chapter V dealing with selected l e g i s l a t i o n . A f i n a l chapter w i l l present conclusions. CHAPTER IV THE THRONE SPEECHES: 1944-1969 A. INTRODUCTION (1) General Comments The purpose of t h i s chapter i s to present the r e s u l t s of an examination of the federal speeches from the throne during the period 1944 to 1969. The actual notes from t h i s examination are presented i n a systematic chronological form i n Appendix A. In t h i s chapter, a model throne speech i s discussed. Then an overview of the speeches i s presented, designed to show the preoccupations of the government as time progressed. Themes are then selected which concern urban and regional development, and these themes are traced through the speeches i n chronological order. F i n a l l y , conclusions are drawn. (2) A Model Throne Speech Throne speeches are not c l o s e l y reasoned, c o n s i s t e n t documents, i n s p i t e of the f a c t that much of t h e i r content i s devoted to rather l o f t y d i s cussion of goals and ob j e c t i v e s . They are more accurately described as a catalogue of concerns which the government considers important, along with the o u t l i n e of general measures which the govern-ment proposes to implement i n response to these concerns. The t y p i c a l throne speech begins with reference to events con-cerning r o y a l t y -- v i s i t s , b i r t h s , deaths, etc. -- and assurances of the l o y a l t y of the Canadian people. This type of reference i s us u a l l y 77 followed by a b r i e f survey of the i n t e r n a t i o n a l s i t u a t i o n (almost always d i s t u r b i n g ) and the r o l e which Canadian f o r e i g n p o l i c y i s expect-ed to play i n helping to meet i n t e r n a t i o n a l problems. In the period s i n c e World War I I , t h i s s e c t i o n has made a r i t u a l of references to our support ( u n t i l r ecently) f o r NATO and our continuing b e l i e f i n the v i a b i l i t y of the UN, the Commonwealth, and the disarmament e f f o r t . The se c t i o n u s u a l l y concludes with a reference to the economic aspects of i n t e r n a t i o n a l t e nsion, and contains an admonition that the nation's domestic p r o s p e r i t y i s i n t i m a t e l y t i e d to i n t e r n a t i o n a l peace and eco-nomic expansion, j u s t i f y i n g the government's p a r t i c i p a t i o n i n various forms of foreign a i d . The model throne speech then turns to conditions on the domestic economic scene, which are i n e v i t a b l y rosy, r e f l e c t i n g the sound manage-ment of the government of the day. Problem areas are noted, and meas-ures may be mentioned here which the government w i l l propose to deal w i t h them. The speech w i l l then turn to more s p e c i f i c s o c i a l and eco-nomic problems, o u t l i n i n g t h e i r dimensions and, broadly, the c o r r e c t i v e measures contemplated. This s e c t i o n i s followed by n o t i f i c a t i o n to members of the House of Commons (since the speech i s read to a j o i n t session of the House and the Senate) that they w i l l be required to vote funds f o r various functions of government. The l a s t section i s a l i s t o f s p e c i f i c measures, amendments and r e v i s i o n s to l e g i s l a t i o n which the government w i l l be introducing. The speech concludes with a b l e s s i n g , u s u a l l y , "May Divine Providence guide you i n your d e l i b e r a t i o n s . " 78 The speech from the throne, then, i s t y p i c a l l y a broad review of the concerns of the government and of proposed measures to deal with these concerns. I t , and the debate on the speech which follows i t , i s one of the few occasions i n the Parliamentary session f o r the government to propose a cohesive program, and f o r the House of Commons to react. B. THE THRONE SPEECHES: AN OVERVIEW (1) The S e t t i n g : 1944 The beginning of the period of study i s dominated by governmental and p u b l i c concern with two recent and disastrous events: the Great Depression (1929-39) and World War II (1939-45). I t was recognized t h a t i t had taken the ca t h a r s i s of world war to p u l l the western nations out of the Depression, and governments everywhere were very much a f r a i d that once peace was won the economies of t h e i r countries would s l i p back i n t o the g r i p of depression. In a d d i t i o n , the Depression had brought about human misery which the government of Canada was determined never to allow again i f i t could p o s s i b l y be prevented. To t h i s end, welfare objectives were high on the l i s t of p r i o r i t i e s , both f o r t h e i r own sake and as a means of "pump-priming" designed to ease the t r a n s i -t i o n to a peacetime economy. By 1944, i t was c l e a r that i t was only a matter of time before the A l l i e d powers would be v i c t o r i o u s , and the government's throne speech of that year was c l e a r l y designed to promise the f i g h t i n g men and the home f r o n t the rewards necessary to spur them on to e a r l y v i c t o r y . The o b j e c t i v e , then, was to win the war and to provide economic s t a b i l i t y and s e c u r i t y i n the context of a l a s t i n g 79 i n t e r n a t i o n a l peace. (2) The Preoccupations: 1945 to 1969 The l a s t h a l f of the 1940's was dominated by the concern f o r smooth demobilization and reconversion, economic s t a b i l i t y and welfare, and the p r o v i s i o n of a l a s t i n g peace. By 1950, the throne speeches r e f l e c t e d the success of economic p o l i c y i n reconversion, but i t had become obvious t h a t peace i n the world was a tenuous c o n d i t i o n , and Canadian fo r e i g n p o l i c y became i n c r e a s i n g l y preoccupied with the con-s t r u c t i o n of NATO and other c o l l e c t i v e s e c u r i t y arrangements. The throne speeches of the 1950's are characterized by the t r a n -q u i l i t y which marked most aspects of national a f f a i r s . The speeches commiserate about the grave condition of i n t e r n a t i o n a l tensions, which provide a favourable backdrop to the government's s e l f - c o n g r a t u l a t i o n with regard to i t s a b i l i t y to manage the economy c o n s i s t e n t l y with i t s o b j e c t i v e s . I t i s , i n r e t r o s p e c t , a c u r i o u s l y p l a c i d period, as i f the nation's emotive power had been spent on handling the huge problems of the previous two decades. By 1957, however, the honeymoon had begun to be over. The Diefenbaker government was elected i n that year, more as a r e s u l t of L i b e r a l arrogance than of any r e a l p o l i c y blunders. But unemployment was worsening and developing s i g n i f i c a n t regional dimensions as the great resource e x p l o i t a t i o n boom came to an end. I t was, perhaps, not the best time f o r a new government to t r y i t s wings because the unem-ployment and other economic problems dominated the Diefenbaker years. That government's throne speeches are marked by economic concerns, which are oriented around the concept of "national development," a phrase which represents a more respectable version of Diefenbaker's "Vision of the North." The main t h r u s t of the response to the reces-sion as manifested i n the throne speeches i s an ambitious program of p u b l i c works designed to stimulate employment and growth i n western and northern Canada. L a t t e r l y , a g r i c u l t u r a l assistance programs were added to the program of "national development." Another concern was f e d e r a l - p r o v i n c i a l f i s c a l r e l a t i o n s , which were beginning to show signs of s t r a i n . During the Pearson period (1963-68), f e d e r a l - p r o v i n c i a l r e l a -t i ons emerged as a major concern of the throne speeches, with an added dimension being the implied c o n f l i c t between the two c u l t u r e s as a p a r t i c u l a r l y v o l a t i l e aspect of the tension. During t h i s p eriod, the concept of "co-operative federalism" was offered as a means of over-coming these problems, although the tendency l a t e r i n the period was to d i s a s s o c i a t e the f e d e r a l - p r o v i n c i a l from the c u l t u r a l issues. The 1967 throne speech, even allowing f o r Centennial year r h e t o r i c , repre-sented a major departure from previous concerns and a r e c o g n i t i o n of a new s o c i e t y whose demands the government would have to meet, as w i l l be noted below. The 1968 and 1969 speeches, while o f f e r i n g another a l t e r a t i o n of p r i o r i t i e s and a new slogan, do not o f f e r a d e f i n i t i v e p i c t u r e of the character of the Trudeau government as h i s t o r y i s l i k e l y to see i t . The frank aim of the 1968 speech i s to c l e a r up the business of the previous Parliament, and the 1969 speech i s more a c h r o n i c l e of 81 proposed reviews of p o l i c y than a program f o r a c t i o n . The two are i n -cluded i n our a n a l y s i s to show the e f f e c t s of a change i n s t y l e , and to j u s t i f y our consideration of the 1944-1968 period as an organic whole. C. THEMES RELATING TO URBAN AND REGIONAL DEVELOPMENT In t h i s s e c t i o n , themes w i l l be traced through the throne speeches, showing the concerns of the day i n matters e f f e c t i n g urban and regional development and, h o p e f u l l y , the evo l u t i o n of some concepts. (1) Housing and Urban Development There have been recurrent references to the issues of housing and urban development i n the throne speeches since the l a s t war, a l -though the question i s r a r e l y d e a l t with i n any broad perspective. One instance of a broader view was the 1944 throne speech, which noted that the . . . maintenance of f u l l employment w i l l r e q u i r e , i n the period of t r a n s i t i o n from war to peace, a rapid and e f f i c i e n t conversion of war i n d u s t r i e s , the enlargement of markets at home and abroad, i n t e n s i f i e d research i n t o new uses of our natural resources, pro-grammes of national and regional development, i n c l u d i n g housing and community planning. 1 The same speech promised "a measure to amend and supplement e x i s t i n g housing l e g i s l a t i o n . Hansard, 1944, Vol. I, p. 2. Loc. c i t . 82 The 1945 speech assured Parliament that housing was being b u i l t as f a s t as p o s s i b l e , but construction was being hampered by a shortage of b u i l d i n g m a t e r i a l s . The 1946 speech noted the persistence of the problem i n inadequate housing supply, and proposed to bring the three agencies then responsible f o r housing (CMHC, Wartime Housing Ltd. and the Veterans' Land Act Administration) under one m i n i s t e r . In 1947, the speech noted that the ob j e c t i v e of 1946 i n housing s t a r t s had been reached, and that house cons t r u c t i o n was progressing with the co-operation of p r o v i n c i a l and municipal governments. The 1949 speech offered to l i f t rent controls i n any province whose government was prepared to take over r e s p o n s i b i l i t y f o r control or o r d e r l y decontrol. I t also announced that housing functions would be c e n t r a l i z e d i n CMHC, which would be placed under the m i n i s t e r responsible f o r the Department of Reconstruction and Redevelopment. In 1949, t h i s name was changed to the Department of Reconstruction and Supply. I t was announced at that time that the National Housing Act would be amended to broaden i t s scope, f o l l o w i n g appropriate discussions with the provinces. In 1950, the throne speech noted that negotiations were proceed-ing with the provinces on housing and other matters, and proposed to introduce a measure to provide grants to m u n i c i p a l i t i e s having an excep-t i o n a l concentration of federal property. This proposal was elaborated upon i n the 1951 speech, i n which i t was r e f e r r e d to as providing spe-c i f i c a l l y f o r grants i n l i e u of taxes. The throne speech of l a t e 1952 noted that houses were being b u i l t at a record r a t e , and proposed that amendments be made to the NHA i n order to broaden the supply of 83 mortgages, e s p e c i a l l y f o r those on moderate incomes. By 1955, the throne speech was able to note f u r t h e r records i n house c o n s t r u c t i o n , due p a r t l y to the amendments passed i n the form of the National Housing Act (1954), which allowed the banks i n t o the mortgage f i e l d . The sec-t i o n on home improvement loans of that Act was soon to be proclaimed, the speech announced. The 1956 speech, a f t e r making the usual references to record housing construction i n the previous year, introduced the concept of "urban redevelopment" ( l a t e r to become "urban renewal") i n the f o l l o w -ing terms: The rapid growth of our centres of population has been a spec-t a c u l a r feature of our national development since the l a s t war, and i n that growth wide use has been made of the National Housing Act by our c i t i z e n s , p a r t i c u l a r l y i n suburban areas. One amendment now to be proposed i s designed to increase assistance to encourage redevelopment of older sections of our c i t i e s to t h e i r best use.3 The speech also noted that the home improvement loans sect i o n of the NHA had been proclaimed and that i t had been u s e f u l . The amount of money a v a i l a b l e would be increased. In 1957, the l a s t throne speech of the L i b e r a l government before t h e i r defeat by Diefenbaker's Progressive Conservatives noted that " [ r ] a p i d s t r i d e s are being made i n opening up our natural resources and i n our i n d u s t r i a l and urban growth." 4 I t announced that "[aln amendment 3Hansard, 1956, Vol. I , p. 3. 4Hansard, 1957, Vol. I , p. 2. 84 extending the scope of the Municipal Grants Act w i l l be l a i d before you to authorize the payment of grants i n l i e u of taxes on federal property i n a l l m u n i c i p a l i t i e s where such property receives normal municipal s e r v i c e s . " 5 The speech from the throne i n 1958 was the second of the Diefen-baker government, and i t introduced the concept of housing as make-work a c t i v i t y , i n response to the growing unemployment of that time. I t promised [a] vigorous programme of housebuilding, which has already proven to be a strong feature of our economy and which c o n s t i t u t e s the best opportunity f o r increased work i n meeting the needs of our people. My mini s t e r s are ready to co-operate f u l l y . . . i n f u r t h e r projects of slum clearance and urban development to improve the c i t i e s and towns of Canada. 6 An a l l - t i m e record l e v e l of house b u i l d i n g was r e f e r r e d to i n the 1959 speech, and f u r t h e r amendments were to be proposed to encourage the entry of s t i l l more pr i v a t e funds i n t o the mortgage market. The second throne speech of 1960 promised a s p e c i a l winter housing program, and undertook to modify the terms of housing and home improvement loans. I t was f u r t h e r proposed to amend the NHA to allow f e d e r a l - p r o v i n c i a l -municipal partnerships to buy and rent e x i s t i n g housing, and provide f o r loans f o r u n i v e r s i t y student housing and f o r sewage treatment p r o j e c t s . Loc. c i t . Hansard, 1958, Vol. I , p. 6. 85 No f u r t h e r reference of s i g n i f i c a n c e was made i n throne speeches to housing and urban development u n t i l the f i r s t speech of the Pearson L i b e r a l a dministration i n May of 1963, which announced a proposal to e s t a b l i s h a Municipal Development and Loan Board. Such a board would give loans and grants to m u n i c i p a l i t i e s f o r projects which would i n -crease employment and improve s e r v i c e s . The 1965 speech announced a broad program to ta c k l e "poverty and a d v e r s i t y , " which would include urban renewal, r u r a l development, and regional development, and which would be co-ordinated by the Prime M i n i s t e r ' s O f f i c e . In 1966, the government announced i n the throne speech that as part of i t s a n t i -i n f l a t i o n p o l i c y i t would continue to s t r e t c h out expenditures on con-s t r u c t i o n i n areas where pressures on the construction industry were heavy. The throne speech opening the Centennial session of Parliament in 1967 was, understandably, a broader and more sweeping document than i s customary. I t promised that p a r t i c u l a r a t t e n t i o n would be given to promoting co-operation among governments, u n i v e r s i t i e s and i n d u s t r i e s to provide solutions f o r a wide range of problems, i n c l u d i n g housing and urban renewal. I t stressed the need to restore beauty i n our environment, which has been marred by development f o r easy p r o f i t . Delving deeper, the speech stated: One of the great challenges of the century w i l l be our capacity to plan our urban development so that Canadians i n the future w i l l continue to enjoy the benefits of l i v i n g i n health and harmony with t h e i r surroundings. To t h i s end, the govern-ment intends to propose to the provinces that a s p e c i a l study of urban development be undertaken i n close consultation with 86 a l l the a u t h o r i t i e s concerned, which would be a v a i l a b l e to the f e d e r a l , p r o v i n c i a l and municipal governments and to the p u b l i c g e n e r a l l y ; so that a l l Canadians w i l l be aware of the problems which l i e ahead and so that a l l governments at a l l l e v e l s , w i l l have the best possible advice to a s s i s t them i n t h e i r own plan-ning and i n t h e i r respective c o n t r i b u t i o n s to t h i s great problem.7 The speech f u r t h e r proposed t h a t new housing programs would need to be commensurate with the "requirements that c l e a r l y l i e ahead." I t announced that a system of loans to a g r i c u l t u r a l and f i s h e r i e s associa-t i o n s and corporations would be i n s t i t u t e d to permit them to develop f a c i l i t i e s i n keeping with the needs of t h e i r communities. The reference to the broad study was c l e a r l y r e l a t e d to the proposal l a t e r made by Prime M i n i s t e r Pearson i n December of 1967 to the f e d e r a l - p r o v i n c i a l conference on housing and urban development discussed below. Since the throne speech was de l i v e r e d i n May, a new federal i n i t i a t i v e i n t h i s f i e l d had c l e a r l y been p e r c o l a t i n g up through the federal bureaucracy (or down from the Prime M i n i s t e r ' s o f f i c e ) f o r most of th a t year, to be scotched by p r o v i n c i a l reactions to the conference i n general. In c o n t r a s t , the 1968 speech, the f i r s t of the Trudeau govern-ment, did not see urban a f f a i r s w i t h i n the same c r i s i s framework. I t noted that "the growth of our population and the changes i n the nature of our mobile urban s o c i e t y lend a new importance to conservation i n i t s t r a d i t i o n a l sense." 8 I t proposed to reform the government of ?Hahsard, 1967, Vol. I , p. 4. 8Hansard, 1968, Vol. I , p. 8. Canada to "free Parliament so that i t can come to grips with d i f f i c u l t and pressing problems r e l a t i n g to youth, poverty, regional d i s p a r i t i e s , urban growth, i n d i v i d u a l w e l fare, and the a p p l i c a t i o n and encouragement of s c i e n t i f i c t e c h n o l o g y . I n the 1969 speech i t was promised that the Government w i l l play i t s part i n achieving [the ob j e c t i v e of 5 m i l l i o n new housing units i n f i v e years] . . . while emphasizing measures to s a t i s f y the needs of low income f a m i l i e s . This and r e l a t e d programs w i l l s timulate s o c i a l progress, employment, economic growth and urban improvement. They are a re c o g n i t i o n o f the need f o r every c i t i z e n to l i v e i n healthy and pleasant surroundings J O In summary, then, from the point of view of the housing and urban development theme, the throne speeches reveal the growth by a c c r e t i o n of a federal r o l e i n housing, punctuated by p e r i o d i c r e f e r -ences to a broader point of view (eg. 1944 and 1967) and modified dur-ing the Diefenbaker years by a view of housing as part of a p u b l i c works program to ease unemployment. This r e c o g n i t i o n of the secondary b e n e f i t s of s t i m u l a t i n g construction emerges i n a broader form i n the 1969 speech from the throne. ( 2 ) Regional Economic Development Regional and r u r a l economic development issues do not receive the mechanical and consistent a t t e n t i o n afforded housing i n the throne speeches, but references are frequent. Many such references are to 9Hansard, 1968, Vol. I , p. 8. 1 QHansard, 1969, Vol. I , p. 3. 88 p a r t i c u l a r projects i n which the government p a r t i c i p a t e d at various times, with more comprehensive approaches emerging a f t e r 1960. The 1944 throne speech contained, i t w i l l be remembered, the reference to developing programs of national and regional development i n order to maintain f u l l employment. One of the main thrusts proposed was the formation of a Department of Reconstruction "to promote and co-ordinate planning f o r national development and postwar employment." 1 1 I t was not u n t i l 1949 that f u r t h e r reference to regional develop ment emerged i n the throne speech. In that year, federal assistance f o r a tra n s - c o n t i n e n t a l highway was proposed, and i t was announced that r a t i f i c a t i o n would be sought f o r the 1941 tre a t y with the United States concerning the development of navigational and h y d r o e l e c t r i c power f a c i l i t i e s on the St. Lawrence River. The speech i n September, 1949, mentioned the Trans-Canada High-way again, along with f o r e s t conservation measures and assistance to the s h i p b u i l d i n g i n d u s t r y . Forest conservation measures were again promised i n the 1950 speech, which also noted that some regional unem-ployment had been experienced. In 1951, the throne speech again asserted the d e s i r a b i l i t y of developing the St. Lawrence R i v e r , but t h i s time i n the l i g h t of consid erations of "continental s e c u r i t y " raised by the Korean War. The second speech of that year, i n October, reported progress i n negotia-tions with the United States, and promised l e g i s l a t i o n to set up an Hansard, 1944, Vol. I, p. 2. 89 agency to carry out Canada's p a r t i c i p a t i o n . I t also announced appoint-ment of a commission to perform a c o s t - b e n e f i t study of the proposed South Saskatchewan River development, and the beginning of cons t r u c t i o n i n partnership with the governments of Nova S c o t i a , of construction on the Canso S t r a i t s causeway. Amendments were announced to the l e g i s l a -t i o n governing r a i l w a y s , i n c l u d i n g a measure to provide f o r payment to the railways of a subsidy to cover the costs of car r y i n g t r a f f i c over the unproductive northern Ontario s e c t i o n of the tr a n s c o n t i n e n t a l l i n e s ( t h i s measure l a t e r became known as the "Bridge Subsidy"). A b i l l would be introduced to e s t a b l i s h the Canada Land Survey. In 1952, the speech from the throne reported that the St. Lawr-ence Seaway proposals were i n the hands of the In t e r n a t i o n a l J o i n t Commission, and by the time of the second speech of that year, i n November, the Commission had approved the p r o j e c t . Approval would be sought that year, i t was announced, f o r improvements to Vancouver harbour, and a f e r r y s e r v i c e between Nova S c o t i a and Newfoundland and between Nova Scotia and Maine. A Canso S t r a i t s causeway would be proposed, even though a previous throne speech had announced the begin-ning of construction. The government noted that i t was co-operating with the provinces i n the f i e l d of water resources. The speech from the throne i n 1953 announced that the New York State Power Commission had granted the St. Lawrence Seaway a power l i c e n s e . The speech also mentioned the increasing importance of north-ern Canada, and i t was proposed to redefine the government's responsi-b i l i t y to the Yukon and Northwest T e r r i t o r i e s , i n c l u d i n g the A r c t i c archipelago and the welfare of Eskimos. The completion of arrangements f o r enlarged navigational f a c i l i -t i e s and the development of h y d r o e l e c t r i c power on the St. Lawrence were announced i n the throne speech of 1955. The speech a l s o noted some regional and seasonal unemployment, and proposed to make a v a i l a b l e loans to fishermen s i m i l a r to those a v a i l a b l e under the Farm Improve-ment Loans Act. I t observed, i n a d d i t i o n , that [ajmendments to the E l e c t r i c i t y and F l u i d Exportation Act and a measure to control works which a f f e c t the normal flow of r i v e r s which cross the i n t e r n a t i o n a l boundary w i l l be proposed f o r the purpose of ensuring that natural resources are developed i n the best i n t e r e s t s of the Canadian p u b l i c . ^ I t was the f i r s t salvo i n the b a t t l e between Ottawa and the government of B r i t i s h Columbia over the use of Columbia River power. The 1957 speech contained the observations that " e x c e l l e n t progress i s being made i n our national economic development" and that "rapid s t r i d e s are being made i n opening up and u t i l i z i n g our natural resources and i n our i n d u s t r i a l and urban growth." 1 3 The f i r s t throne speech of the Diefenbaker Conservative Govern-ment, read i n l a t e 1957 by the Queen h e r s e l f , introduced the idea of "national development" i n the f o l l o w i n g passage: My minis t e r s believe that a national development p o l i c y c a r r i e d out i n co-operation with the provinces, and i n the t e r r i t o r i e s , i s needed to enable a l l regions of Canada to share 2Hansard, 1955, Vol. I , p. 3. 3Hansard, 1957, Vol. I , p. 2. 91 i n the b e n e f i t s to be r e a l i z e d i n developing the resources of t h i s great nation. I t i s t h e i r i n t e n t i o n to propose to you from time to time programs and projects to implement t h i s great p o l i c y . As an immediate s t a r t upon a program of more extensive development i n the A t l a n t i c provinces, you w i l l be asked to authorize, i n j o i n t a c t i o n with the p r o v i n c i a l governments, the cr e a t i o n of f a c i l i t i e s f o r the production and transmission of cheaper e l e c t r i c power i n those provinces. You w i l l also be asked to provide assistance i n f i n a n c i n g the Beechwood p r o j e c t which has been under cons t r u c t i o n i n New Brunswick. My ministers w i l l advance t h i s n a t i o n a l development p o l i c y f u r t h e r by i n i t i a t i n g new discussions with the government of Saskatchewan i n order to make pos s i b l e the e a r l y commencement of construction of the dam on the South Saskatchewan River.14 The 1958 throne speech was more s p e c i f i c about nati o n a l develop-ment programs, l i n k i n g them to major expenditures on p u b l i c works to reduce unemployment. In t h i s respect, the speech announced proposals to construct a r a i l r o a d to Great Slave Lake, and roads to the Yukon and Northwest T e r r i t o r i e s . Research would be begun on e x p l o i t i n g mineral resources i n the A r c t i c i s l a n d s and a s t a r t was to be made on the South Saskatchewan dam. A Lakehead Harbour Commission would be created to handle increased demands on that port due to the forthcoming opening of the St. Lawrence Seaway. The 1959 speech continued the emphasis on national development, and proposed that a wise use of resources was needed to increase the standard of l i v i n g . A national energy board was to be proposed, along with "action to a l l e v i a t e the e f f e c t s of a ho r i z o n t a l increase i n 1 4Hansard, 1957-58, Vol. I , p. 6. 92 f r e i g h t r a t e s . g y i960, the government was able to observe i n the speech that the "national development program (had) stimulated a large increase i n northern e x p l o r a t i o n . " 1 ^ I t also proposed to submit the Columbia River Treaty f o r approval, along with new o i l and gas regula-t i o n s . A Department of Forestry was to be e s t a b l i s h e d , and i n 1960, major national development projects were to include Columbia power, a CN l i n e to Mattagami Lake (P.Q.), surveys of the Great Slave Lake r a i l -road and development of the Thames River (Ont.). The throne speech of 1962 noted that the government was consider-ing the material presented at the Resources f o r Tomorrow Conference i n Montreal i n 1961, and lauded t h i s conference as an example of the b e n e f i t s to be gained from intergovernmental co-operation. National development projects mentioned i n that speech included a r a i l r o a d from Matane to St. Anne des Monts (P.Q.), and the Winnipeg Floodway. Winter works would be increased. The throne speech opening the 1962-63 session of Parliament had many references to regional and national development. I t proposed a national economic development board, but did not go i n t o more d e t a i l . I t also announced that approval would be sought f o r an A t l a n t i c development board "to advise on measures and projects that w i l l promote the economic development of the A t l a n t i c region of Canada." 1 7 The 1 5Hansard, 1959, Vol. I , p. 2. 1 6Hansard, 1960, Vol. I , p. 2. 1 7Hansard, 1962-63, Vol. I , p. 8. 93 speech noted that the national o i l p o l i c y , then two years o l d , had i n -creased production and s a l e s . Studies on implementation of a national power g r i d were con t i n u i n g , as were studies of the recommendations of the (MacPherson) Royal Commission on Transportation i n view of "the important r o l e of t r a n s p o r t a t i o n i n the Canadian economy. i n the meantime, measures were promised "to reduce h o r i z o n t a l f r e i g h t rate increases . . . [which had] borne so h e a v i l y . . . on c e r t a i n a r e a s . " 1 9 The 1963 throne speech, the f i r s t of the Pearson p e r i o d , proposed to e s t a b l i s h a Department of Industry to provide c o n s u l t a t i o n , stimulus and ass i s t a n c e to i n d u s t r i a l firms i n t e r e s t e d i n expanding, p a r t i c u l a r l y i n areas of high unemployment. The Department would contain an Area Development Agency (ADA) to work with the provinces to bring about expansion i n areas where "a s p e c i a l t h r u s t f o r development [was] needed."20 The government proposed to equip the new A t l a n t i c Develop-ment Board with a c a p i t a l fund. The Columbia Treaty was to be presented f o r approval, and a d d i t i o n a l assistance f o r the Trans-Canada Highway would be proposed. The government intended to e s t a b l i s h an economic co u n c i l f o r Canada and a Canada development corporation. Payment of subsi d i e s to the railways would be continued u n t i l a longer-term s o l u t i o n to the problem of high f r e i g h t rates could be found. "Hansard, 1962-63, Vol. I , p. 9. Q Loc. c i t . ^Hansard, 1963, Vol. I , p. 7. In 1965, the government, i t w i l l be remembered, announced a broad program to tack l e "poverty and ad v e r s i t y , " to include urban renewal, regional development, re-employment and r e t r a i n i n g and r u r a l development, to be co-ordinated by the Prime M i n i s t e r ' s o f f i c e . The establishment of a Fund f o r Rural Economic Development (FRED) was promised, and amendments were to be made to the A t l a n t i c Development Board Act and the ARDA Act. The Area Development Agency would be expanded, and the measure concerning the Canada development corpora-t i o n was again promised. The throne speech of 1966 announced that r e o r g a n i z a t i o n of government was under way, which would bring about greater co-operation i n the f i e l d s of manpower, r u r a l development, energy and resources, Eskimo and Indian a f f a i r s , northern development, business laws, and crime and c o r r e c t i o n s . The new Economic C o u n c i l , the speech noted, had ind i c a t e d opportunities and needs f o r sustained growth. The measure to e s t a b l i s h FRED, and the amendments to the ARDA, ADA and ADB l e g i s l a t i o n were again promised. The time period f o r construction of the Trans-Canada Highway would be extended again. The 1967 throne speech contained many broad references to regional development problems. I t noted that the Fathers of Confeder-atio n had " b u i l t according to a federal plan because they knew that unity with c u l t u r a l and regional d i v e r s i t y could be harnessed to a Ol p o s i t i v e and enr i c h i n g r o l e i n no other way." The government Hansard, 1967, Vol. I , p. 1. 95 suggested that there was need to a s s i s t areas where human resources were u n d e r - u t i l i z e d . I t proposed to broaden the scope of the Area Development Incentives program (1965) and to increase i t s funds, and i t promised continued support f o r the ADB. I t was also stated that " [ f ] e d e r a l p r o v i n c i a l co-operation through the Fund f o r Rural Economic Development w i l l permit a major e f f o r t f o r regional planning f o r p a r t i c -22 u l a r areas i n Canada." Projects i n northeastern New Brunswick, Mactaquac, N.B., and the Interlake area of Manitoba would provide the government with "tools of knowledge and experience f o r the b e n e f i t of other regions throughout the country."23 Assistance to the Cape Breton coal i n d u s t r y was promised, and e f f o r t s would be made to combat p o l l u -t i o n , beginning with a Canada Water Act. The government also proposed to e s t a b l i s h "new incentives f o r industry and regional economic planning intended to strengthen the economy of the N o r t h . A concern f o r conservation of the environment was expressed. The 1968 throne speech, the f i r s t of the Trudeau a d m i n i s t r a t i o n , announced a major new of f e n s i v e on regional d i s p a r i t y , promising "the establishment of a department charged with the objective of ensuring that people i n a l l areas and regions of our country have as equal access Hansard, 1967, Vol. I , p. 3. Loc. c i t . Hansard, 1967, Vol. I , p. 5. 96 as possible to the opportunities of Canada's economic development." 2 5 A concern f o r "conservation i n i t s t r a d i t i o n a l sense" was expressed, the f i r s t response to which would be a Canada Water Act. In 1969, the throne speech s h i f t e d emphasis to development and pr o t e c t i o n of the resources of the A r c t i c . In a d d i t i o n , the government was holding "urgent d i s c u s s i o n s " with the provinces on p r o t e c t i o n of water resources. A review of the references to regional economic development i n the throne speeches, then reveals a concern f o r p a r t i c u l a r development projects as the main focus of the e a r l y 1950's. The speeches composed by the Diefenbaker government i n d i c a t e a view of regional development as part of a program of p u b l i c works w i t h i n a framework of "national development." But beginning with the l a s t part of the Diefenbaker per i o d , the 1960's show a tendency to look at regional d i s p a r i t y i n an ever broadening context, u n t i l the 1968 speech proposes a s i n g l e department to handle a l l the government's e f f o r t i n t h i s area. (3) Minor Themes An undercurrent of regional concern runs through throne speech references to resource and transport p o l i c y , but i n most cases the emphasis i s on the importance of these matters to the national economy. A constant f a c t o r i n throne speeches i s the s t a t e of the nation's a g r i c u l t u r e industry. This area of concern, the references to which cannot be documented f u l l y here, was dominated f o r most of the 1950's by preoccupation with the wheat economy of the P r a i r i e s . By Hansard, 1968, Vol. I , p. 7. 97 1960, a more comprehensive view was being taken, with reference being made to development of a national a g r i c u l t u r a l p o l i c y . S t i l l l a t e r , i n 1962, the emphasis s h i f t e d to r u r a l development, with the e s t a b l i s h -ment of ARDA, which was the subject of one fa c t u a l sentence i n the throne speech of that year. This emphasis was rei n f o r c e d by the Pearson government, which broadened the concept of r u r a l development to include n o n - a g r i c u l t u r a l r u r a l a c t i v i t i e s . The programs e s t a b l i s h e d under t h i s thrust were merged with the regional development programs to form the Department of Regional Economic Expansion i n 1969, and the Trudeau speeches r e f e r to t h i s area broadly and the problem of marketing surplus wheat. Thus, the tendency to a broadening view of the nature of r u r a l problems i s noted. D. CONCLUSIONS In terms of a national strategy f o r organizing a c t i v i t i e s i n space, then, the p i c t u r e of a melange of occasional broad p o l i c y commit-ments interspersed with frequent cases of near-emergency responses to pressing problems i s the one which emerges. The broader view obviously characterized the throne speech of 1944, with the obvious goal of encouraging the country to help win an e a r l y v i c t o r y . However, the fol l o w i n g speeches i n d i c a t e that t h i s i n i t i a t i v e was not maintained, and the 1950 1s are i n the main remarkable f o r t h e i r lack of any a r t i c -ulate goals, other than maintaining a high l e v e l of national income. The Diefenbaker program of massive p u b l i c works i n "national 98 development" was noted. But the impression of a short-run p o l i t i c a l l y -o r i e n t e d response i s implied by these p r o j e c t s — a l m o s t "pork-barrel on a n a t i o n a l s c a l e " - - r a t h e r than a coherent scheme .with a long range perspective. One c r e d i t to the Diefenbaker government i s the ARDA l e g i s l a t i o n , however, which w i l l be examined i n the next chapter. To a degree, one can f a i r l y portray the Pearson approach as an " i n s t i t u t i o n a l works" program rather than a p u b l i c works program, i n th a t a p r o l i f e r a t i o n of agencies was the L i b e r a l response to regional development problems. However, a successively broader view i s d i s c e r n -i b l e i n the throne speeches of the Pearson p e r i o d , culminating i n 1967, i n which a b l u e p r i n t of a t r u l y comprehensive approach to both urban and regional development i s presented w i t h i n (and somewhat beyond) the l i m i t s placed on the government by the federal system. An abrupt s h i f t of p r i o r i t i e s , or at l e a s t of emphasis, was noted i n the throne speeches of the Trudeau government i n the mounting of a f u l l - s c a l e attack on regional d i s p a r i t y , the new concern f o r the A r c t i c , and the view of urban problems as part of a whole complex of problems f a c i n g a modern s o c i e t y . Housing, p a r t i c u l a r l y f o r low income groups, s t i l l remains an important p r i o r i t y . But, as noted, i t i s e a r l y y et to advance these as f i n a l judgments of t h i s government's view. Some evidences, then, of a national strategy f o r urban and regional development have been uncovered i n the throne speeches f o r the period 1944 to 1969. CHAPTER V THE SELECTED LEGISLATION A. INTRODUCTION The purpose of t h i s chapter i s to examine the r e s u l t s of a survey of selected l e g i s l a t i o n . The f o l l o w i n g 10 acts w i l l be d e a l t w i t h : the National Housing Act (1944), the National Housing Act (1954), an Act to Amend the National Housing Act (1964), the A g r i -c u l t u r a l R e h a b i l i t a t i o n and Development Act (1961), the A t l a n t i c Development Board Act (1962), the Department of Industry Act (1963), the Area Development Incentives Act (1965), the Fund f o r Rural Economic Development Act (1966), the Government Organization A c t , Part V (1969) and the Regional Development Incentives Act (1969). While the s e l e c t i o n of such acts i s e s s e n t i a l l y a r b i t r a r y , i t was based on the d e s c r i p t i o n s i n the Canada Year Book"*. An act was selected f o r examination i f the d e s c r i p t i o n i n d i c a t e d t h a t i t had important d i r e c t urban and/or regional s i g n i f i c a n c e . A more systematic presentation of the content of each act examined, and the debate surrounding the passage of each a c t , w i l l be found i n Appendix B. In t h i s chapter, the acts are placed i n t h e i r context and t h e i r provisions and the surrounding debate w i l l be discussed b r i e f l y . Then Canada Year Book, (Ottawa: The Queen's P r i n t e r . Issued annually, 1944-68). TOO the traces of a national strategy f o r urban and regional growth are discussed i n se c t i o n C. F i n a l l y , a note on the continuing debate i s included. B. THE LEGISLATION (1) The National Housing Act, 1944 Faced with a serious housing shortage due to d i v e r s i o n of energies i n t o the war e f f o r t , the L i b e r a l government i n 1944 introduced a measure that broadened considerably the programs undertaken as make-work proj e c t s during the 1930's. The 1944 l e g i s l a t i o n e s t a b l i s h e d a system of j o i n t mortgage loans to be undertaken by the government and "approved lending i n s t i t u t i o n s " (insurance companies) to a s s i s t i n the construction of new houses. The l e g i s l a t i o n also made some s p e c i a l (but l i m i t e d ) p r o v i s i o n f o r encouraging r u r a l housing and f o r support f o r t e c h n i c a l research i n housing and community planning. The debate on the measure was dominated by the housing i s s u e , rather than any broader references to s p a t i a l planning, although the opposition alluded to the Curtis committee's report on reconstruction (See Appendix B). Stanley Knowles (CCF: Winnipeg North Centre) extracted the admission from the Hon. J.L. I l s l e y ( M i n i s t e r of Finance and Sponsor) that j o i n t loans with municipal housing agencies had been ruled out i n d r a f t i n g the b i l l because the government did not consider the m u n i c i p a l i t i e s capable of managing the money. The debate was highlig h t e d (for the reader i f not f o r the government) by a s t i n g i n g attack mounted by Gerry McGeer ( L i b . : Vancouver-Burrard), a maverick 101 L i b e r a l who damned the government f o r only i n c l u d i n g $20 m i l l i o n f o r slum clearance. He drew unfavourable comparisons with Parliament's w i l l i n g n e s s to vote $60 m i l l i o n f o r a b a t t l e s h i p i n time of war, and asked which was the r i s k i e r venture. (2) The National Housing Act, 1954 The 1954 Housing Act i s s t i l l the basic document i n the federal housing and urban development presence, although i t i s by now very much amended. In introducing the l e g i s l a t i o n , the Hon. Robert Winters ( M i n i s t e r of P u b l i c Works and sponsor) s a i d , There are two main provisions i n the proposed l e g i s l a t i o n . F i r s t , i t i s proposed to widen the group of lending i n s t i t u t i o n s to include the chartered banks and the Quebec savings banks which w i l l be empowered to make loans on the s e c u r i t y of insured f i r s t mortgages on r e s i d e n t i a l property. Second, i t i s proposed to abandon the present form of j o i n t loans under the National Housing Act and to s u b s t i t u t e a system of insured mortgage loans J The powers of the m i n i s t e r i n "housing redevelopment" were to be continued. In debate, the opposition were r i g h t f u l l y unimpressed, since the b i l l was not, i n f a c t , anything very new (with the exception of the insured mortgage program), but merely represented a c o n s o l i d a t i o n and updating of the 1944 Act. Paul H e l l y e r ( L i b . : Davenport) praised the b i l l as a great step forward, and noted i n p a r t i c u l a r the importance of land assembly c o s t s , construction costs (.partly due to more and l a r g e r Hansard, 1944, Vol. I , p. 998. 102 houses and applia n c e s ) , and high land costs as impediments to housing progress. He di d not say how he thought the b i l l would solve these problems. Opposition concerns included i n t e r e s t r a t e s , d i s c r i m i n a t i o n against smaller centres i n a p p l i c a t i o n of the previous l e g i s l a t i o n , and the f a c t that the b i l l d id v i r t u a l l y nothing f o r low income groups. In terms of the i n t e r e s t s of t h i s research, Mr. A.J. Brooks (P.C.: Royal) made a speech i n which he noted the migration of population from the maritime provinces to ce n t r a l Canada, and he urged a s o l u t i o n , saying "I think i t i s a s o l u t i o n which i s l i n k e d up with the housing problem i n Canada, and that i s the d e c e n t r a l i z a t i o n of industry . . . I be l i e v e we w i l l always have an acute housing s i t u a t i o n i n Canada u n t i l there i s some d e c e n t r a l i z a t i o n of industry i n t h i s country. . . " 2 In 1960, under the Diefenbaker government, the NHA was amended to allow CMHC to make loans f o r sewage treatment f a c i l i t i e s and f o r u n i v e r s i t y student housing. Other amendments have s t e a d i l y l i b e r a l i z e d the terms f o r insured mortgage and other loans. (3) An Act to Amend the National Housing A c t , 1954 (passed i n 1964) The 1964 amendments to the National Housing Act, 1954 were important enough to be considered here as a separate act. These amend-ments allowed CMHC to a s s i s t urban renewal and publ i c housing projects by means of loans and grants, dropping the requirement that urban 2Hansard, 1954, Vol. I I , p. 1395. 103 redevelopment projects have a s i g n i f i c a n t housing component. The Hon. J.R. Nicholson (Postmaster General and sponsor) introduced the measure as "a ba s i c change i n our concept, perhaps I should say a completely fresh approach, to some of the most vexing housing problems f a c i n g the c o u n t r y . F u r t h e r , he stated that . . . 90 per cent of the e n t i r e housing output associated with the National Housing Act has been provided f o r the middle income or upper income c l a s s e s . . . Canadian housing p o l i c y has been h e a v i l y committed to the support and a i d of the p r i v a t e market; and rather to the production of housing than to i t s d i s t r i b u t i o n . . ., In my view, and I speak as a m i n i s t e r of the crown, our best accomplishments i n p u b l i c housing are not impressive. In the view of the government i t represents the greatest s i n g l e area of f a i l u r e i n our federal housing p o l i c y . . . The goal of the l e g i s l a t i o n i s f r a n k l y ambitious and i t encompasses nothing l e s s than a decent standard of housing f o r a l l Canadians.4 Discussing urban renewal, Mr. Nicholson s a i d : We know there i s no automatic p r i v a t e market process which regenerates urban areas as they d e c l i n e . Therefore, the government believes that i f there i s to be such a regenerative process i t must be developed as a matter of p u b l i c p o l i c y . We propose to encourage and help the provinces and t h e i r municipal-i t i e s to develop i t together with the federal government and i t s agencies.5 The observations of Mr. Andrew Brewin (NDP: Greenwood) are so close to the subsequent assessment of urban renewal a f t e r f i v e years of operation that they are worth quoting: 3Hansard, 1964, Vol. IV, p. 3714. 4Hansard, 1964, Vol. IV, p. 3716. 5Hansard, 1964, Vol. IV, p. 3795. 104 Redevelopment schemes at the centre of big c i t i e s are apt to be very expensive; they do not meet the neighbourhood needs; the people are sometimes put out and expensive apartments are b u i l t i n t h e i r place; commercial areas grow up -- and t h i s may be p e r f e c t l y a l l r i g h t -- or o f f i c e b u i l d i n g s . This i s p e r f e c t l y good planning; but i f i t i s r e h a b i l i t a t i o n of what we already have that i s needed, t h i s type of c o s t l y redevelopment i s a great d i s s e r v i c e to the people of Canada. 6 Closer to the concerns of t h i s paper were the observations of three other Members. Mr. Reid Scott (NDP: Danforth) suggested a royal commission on housing and urban development to determine what the federal r o l e should be. Mr. Maurice R i n f r e t ( L i b . : St. James) suggested that these concerns be elevated to cabinet l e v e l through c r e a t i o n of a Department of Urban Growth and Development. On the other hand, Mr. G.W. Baldwin (P.C.: Peace River) f e l t that these approaches might not deal adequately with the r a p i d l y changing s i t u a t i o n , and s a i d he would prefer to see a standing or s e l e c t committee of the House of Commons on housing and urban development. The pressures of urban growth, i n broader terms than housing alone, were beginning to be f e l t . In 1969, the M i n i s t e r i n charge of housing, Mr. Robert Andras, announced that the urban' renewal program would be cut back to a nominal $25 m i l l i o n , and launched a major review of p u b l i c housing p o l i c y i n recognition of the f a c t that both schemes had had serious undesirable e f f e c t s . 6Hansard, 1964, Vol. IV, p. 3798. 105 (4) The A g r i c u l t u r a l R e h a b i l i t a t i o n and Development Act (1961) The ARDA Act, as the above piece of l e g i s l a t i o n has come to be c a l l e d , founded an Agency to provide f o r a broad range of assistance to provinces or i n j o i n t programs. Three main types of program were to q u a l i f y : projects f o r the a l t e r n a t i v e uses of land, r u r a l develop-ment p r o j e c t s , and s o i l and water conservation p r o j e c t s . Projects of the f i r s t type were to be "for the more e f f i c i e n t use and economic development of marginal or submarginal a g r i c u l t u r a l lands." Rural development projects were to be " f o r the development of income and employment opportunities i n r u r a l a g r i c u l t u r a l areas" and f o r improve-ment of l i v i n g standards i n such areas. F i n a l l y , s o i l and water conservation projects were to be f o r improvement and conservation of these resources i n order to "improve a g r i c u l t u r a l e f f i c i e n c y . " The source of the l e g i s l a t i o n l i e s i n the report of the s p e c i a l Senate committee on land use, which the Hon. A l v i n Hamilton ( M i n i s t e r of A g r i c u l t u r e and sponsor) quoted i n his i n t r o d u c t i o n speech (see Appendix B). In debate, the L i b e r a l s were at pains to point out t h e i r own successes with the P r a i r i e Farm R e h a b i l i t a t i o n Act, but offered no major objections to the b i l l , which passed unanimously on t h i r d reading. During h i s introductory speech, the Hon. Mr. Hamilton was eager to emphasize that the purpose of the l e g i s l a t i o n was not to reduce the number of farmers or to push farmers o f f the land. Taking a broader perspective, Mr. Hamilton s a i d : 106 While the program i s focused mainly on farm people, i t cannot be e x c l u s i v e l y a t r i c u l t u r a l . Rural economies are no longer separate from town or urban economies, and the program must be one of area development embracing l o c a l centres of population as well as the farms surrounding them.7 He f u r t h e r suggested that one of the f i r s t steps to be taken by p r o v i n c i a l governments should be to i n s t i g a t e a system of zoning that would ensure that f i r s t c l a s s farm land would remain i n a g r i c u l t u r a l use, and to base an assessment system on that p r i n c i p l e i n order that farmers are not taxed out of business. The ARDA program was f r a n k l y experimental. I n i t i a l l y , there were d i f f e r e n c e s of opinion w i t h i n the Agency and with the respective provinces as to whether the program should be p r i m a r i l y one of a s s i s t -ance to a g r i c u l t u r e or one aimed at encouraging a l t e r n a t e land uses. The proponents of the l a t t e r view won out, as r e f l e c t e d i n the second round o f agreements (1965) and the amendments to the l e g i s l a t i o n (1966). The l a t t e r changed the name of the Agency to the A g r i c u l t u r a l and Rural Development Agency and removed some of the r e s t r i c t i o n s t h a t required that approved projects be r e l a t e d s p e c i f i c a l l y to a g r i c u l t u r e . Thus l i b e r a t e d , one of ARDA's most important research projects has been the Canada Land Inventory, which promises to provide valuable information f o r more e f f i c i e n t land use i n t h i s country. ARDA has been plagued by problems, the most important of which has been d i f f i c u l t i e s i n securing co-operation with other agencies as Hansard, 1960-61, Vol. V, p. 5197. 107 Q they appeared on the scene. This problem has become more noticeable i n recent years, as the view of the Agency broadened, beginning with the second round of agreements i n 1965, a f t e r which resources were s h i f t e d to the support of education, t r a i n i n g , and non-primary employ-ment. But ARDA's movement in t o these f i e l d s implies i t s most important success: i t has been able to develop a high degree of co-operation between the two l e v e l s of government, an e s s e n t i a l f a c t o r i n any s o l u t i o n to Canadian regional problems. In 1969, ARDA was brought under the Department of Regional Economic Expansion. Perhaps that framework w i l l help to ensure appro-p r i a t e co-operation among other agencies. (5) The A t l a n t i c Development Board Act (1962) The A t l a n t i c Development Board arose out of recommendations of the A t l a n t i c Provinces Economic Council and the A t l a n t i c Provinces Premiers' Conference t h a t a federal a u t h o r i t y be established to channel c a p i t a l i n t o the region. Another source, i f the speakers i n the debate are to be be l i e v e d , was an issue of the A t l a n t i c Advocate (Fre d e r i c t o n , New Brunswick) i n March of 1962, which was devoted e n t i r e l y to possible means of a s s i s t i n g the economics expansion of the region. The Act establ i s h e s a f i v e member A t l a n t i c Development Board, charged with the duty to assess "factors relevant to economic growth i n the A t l a n t i c region [and t o ] . . . keep under constant review appropriate T.N. Brewis, Regional Economic P o l i c i e s i n Canada (Toronto: The Macmillan Company of Canada Limited, 1969), p. 112. ! 108 methods of f u r t h e r i n g the sound economic development of the A t l a n t i c region." In a d d i t i o n , the Board was to co-operate with the National Economic Development Board (never c o n s t i t u t e d ) , the National Productiv-i t y Council and a l l other departments and agencies of the government. In introducing the b i l l , the Hon. H.J. Flemming ( M i n i s t e r of National Revenue and sponsor) stated that The purpose of the A t l a n t i c development board w i l l be to suggest ways and means to improve conditions i n the area so that i t w i l l be more a t t r a c t i v e to industry. Many people bel i e v e that p u b l i c investment to a more than average degree i s necessary to create these conditions . . . I t would be responsible f o r presenting i t s recommendations to the government and co-ordinating the passage of projects approved through the federal departments which would be concerned with them." The main t h r u s t of the opposition attack on the b i l l was that i t did not place a c a p i t a l fund at the disposal of the Board, nor did i t give the Board power to i n i t i a t e a c t i o n on p a r t i c u l a r p r o j e c t s . The L i b e r a l s i n p a r t i c u l a r were vehement on t h i s p o i n t , saying that the Board would be t o t a l l y i n e f f e c t i v e without a c a p i t a l fund. T.C. Douglas (NDP: Burnaby-Coquitlam), while agreeing with t h i s p o i n t , was concerned with the p r o l i f e r a t i o n of bodies concerned with economic planning. Mr. John B. Stewart ( L i b . : Antigonish-Guysborough) claimed that the government was a f r a i d to touch one major area of regional planning -- labour migration assistance, as mentioned i n the report of the Gordon commission on Canada's economic prospects. Other members 9Hansard, 1962, Vol. I I , p. 2290. 109 bemoaned the absence of an o v e r a l l plan f o r development i n the A t l a n t i c provinces. In 1963, the L i b e r a l government, as part of the much maligned " S i x t y Days of Decision," amended the A t l a n t i c Development Board Act to give i t a c a p i t a l fund of $100 m i l l i o n to a s s i s t worthy p r o j e c t s , and to enable i t to i n i t i a t e i t s own p r o j e c t s . The same amendments in s t r u c t e d the ADB to prepare, i n conjunction with the r e c e n t l y formed Economic Council of Canada, an o v e r a l l development plan f o r the region. This plan was not completed when the ADB was disbanded. In 1969, the Government Organization Act merged the A t l a n t i c Development Board (renamed the A t l a n t i c Development Council) i n t o the Department of Regional Economic Expansion, and abolished i t s c a p i t a l fund and i t s executive powers. (6) The Department of Industry Act (1963) Another step taken during the S i x t y Days of Decision was to e s t a b l i s h the Department of Industry, as part of the L i b e r a l promise to "get things moving again." The source of t h i s department was the Department of Defence Production, which the Diefenbaker government had openly promised to use to award defense contracts to A t l a n t i c indus-t r i e s . I t s functions were taken over by the new Department of Industry. In a d d i t i o n , the new department was j u s t i f i e d on the grounds that manufacturing i n d u s t r i e s had no one to speak f o r them i n the cabinet, and Prime M i n i s t e r Pearson promised that the department would be one "which w i l l be f o r manufacturing industry what the Department of no A g r i c u l t u r e i s f o r f a r m e r s " 1 0 The most i n t e r e s t i n g part of the Act from the point of view of t h i s paper i s Part I I , "Area Development." This part enabled the cabinet to designate "any d i s t r i c t or l o c a l i t y i n Canada that i s deter-mined to require s p e c i a l measures to permit economic development or i n d u s t r i a l adjustment by reason of the exceptional nature or degree of unemployment i n that area" to receive assistance. Such assistance was to be i n the form to be determined by cabinet, but included "programs and p r o j e c t s . " Further, Section 1.1 gives the cabinet wide powers: Subject to any e x i s t i n g s t a t u t o r y p r o v i s i o n , the Governor i n Council may authorize and d i r e c t departments, branches and agencies of the government of Canada to undertake i n the execution of t h e i r respective duties and functions such s p e c i a l measures as may be appropriate to f a c i l i t a t e the economic development of any designated area or the adjustment of industry i n that area. The Act also e s t a b l i s h e d and structured the Area Development Agency (ADA). The actual assistance provided, while not i n the Act, took the form of accelerated c a p i t a l cost allowances and the remission of income taxes. In debate on the b i l l , the Right Hon. L.B. Pearson (Prime Minis-t e r and sponsor) placed the department i n context with the Economic Council: The point and purpose of the department of i n d u s t r y , which i t i s proposed to set up, w i l l be to a s s i s t i n transmitting these Hansard, 1963, Vol. I , p. 803. I l l various ideas [of the Economic Council of Canada] i n t o e f f e c t i v e action . . . I can hardly overemphasize the importance which we i n the government attach to the creation of t h i s new department.H Turning to Part I I , Mr. Pearson s a i d : . . . Mr. Chairman, I would mention p a r t i c u l a r l y the area development agency which i s proposed as an important part of the new department. The areas we are concerned with are those i n which unemployment i s heavy and chronic i n i t s nature, where s p e c i a l government action i s therefore c a l l e d f o r i n order to encourage economic development or i n d u s t r i a l adjust-ment . . . I t w i l l create i n Ottawa a small group of people whose s p e c i a l r e s p o n s i b i l i t y , on behalf of the m i n i s t e r of i n d u s t r y , w i l l be to make sure that various federal p o l i c i e s are conceived and co-ordinated i n a way which w i l l be of maximum help to the areas of maximum need . . . In t h i s sense the area development agency w i l l be co-ordinating rather than e x e c u t i v e . 1 2 The opposition's attack was focused on the idea that the depart-ment would be j u s t another c o s t l y bureaucracy, and Mr. J.P. Nowlan (NDP: Digby-Annapolis-Kings) noted that,the control of the Economic Council would be i n the hands of the president of the Priv y C o u n c i l , not the M i n i s t e r of Industry, making co-ordination between the two bodies d i f f i c u l t . In 1969, the opposition c r i t i c s were v i n d i c a t e d , as the Depart-ment of Industry was merged with the Department of Trade and Commerce and the ADA program was assigned to the Department of Regional Economic Expansion, eventually to be replaced by the regional development in c e n t i v e s program. Hansard, 1963, Vol. I , p. 803. Loc. c i t . 112 (7) The Area Development Incentives Act (1965) The Area Development Incentives Act was passed i n rec o g n i t i o n of the f a i l u r e of the p o l i c i e s e s tablished under the Department of Industry Act. I t empowered the M i n i s t e r of Industry to make develop-ment grants to applicants proposing to e s t a b l i s h a new f a c i l i t y or expand an e x i s t i n g one i n a designated area, provided he i s s a t i s f i e d t hat such projects w i l l improve employment opportunities i n the area. A maximum of 20% of c a p i t a l costs could be allowed as s e r v i c i n g expenditure to be paid to the m u n i c i p a l i t y by the M i n i s t e r . In a d d i t i o n , development grants were to be exempt from income ta x , but not excluded from c a p i t a l cost allowance c a l c u l a t i o n s f o r tax purposes. Projects were to be completed by the end of f i s c a l 1971, and i t was a condition of the grant that the applicant consult with the National Employment Service (now the Department of Manpower and Immigration) concerning h i s long and short term labour needs. A c a p i t a l fund of $50 m i l l i o n was e s t a b l i s h e d , and grants were excluded from supporting o i l or gas w e l l s , logging, mining, c o n s t r u c t i o n , farming or f i s h i n g . The M i n i s t e r of Industry and sponsor of the b i l l , the Hon. CM. Drury, stated that previous assistance plans had been of use only to those enterprises reaching an e a r l y p r o f i t p o s i t i o n , and had d i s c r i m i -nated against smaller e n t e r p r i s e s . Accordingly, a more d i r e c t form of assistance was needed. The opposition was highly c r i t i c a l of the previous program, i t s main objections being the t h i e v i n g of i n d u s t r i e s from t h e i r c o n s t i t u -encies by designated areas, and the c r i t e r i o n of unemployment as a 113 means of designation. One member condemned the b i l l as a wholesale copy of bad American l e g i s l a t i o n . Mr. Arnold Peters (NDP: Timiskaming) pleaded f o r the use of medium sized but d e c l i n i n g mining communities i n his area f o r new i n d u s t r i e s . I t remained to J . J . Greene ( L i b . : Renfrew South) to bring up the question of a national urban and regional development p o l i c y . He s a i d : I think that the tragedy of the Province of Ontario l i e s i n the f a c t that development has been c e n t r a l i z e d i n the metropolitan area and i n western Ontario and that generally speaking eastern Ontario and northern Ontario have been l e f t as "the poor South" of t h i s great and r i c h province. . . . This i s the f i r s t time i n the h i s t o r y of t h i s Dominion that t h i s approach has been taken. As we are i n many other areas, we i n t h i s country have been behind countries such as I t a l y , the United States and Sweden with regard to the d e c e n t r a l i z a t i o n of in d u s t r y . . . As I s a i d , f o r the f i r s t time the government of t h i s country has said that t h i s nation should be permitted to grow with some equitable d i s t r i b u t i o n of the sources of production and the sources of employment . . . .13 In 1969, t h i s program went under the Department of Regional Economic Expansion with the r e s t of ADA. (8) The Fund f o r Rural Economic Development Act (1966) The Fund f o r Rural Economic Development (FRED), established by t h i s Act, and administered by ARDA, added an important comprehensive element to the l a t t e r agency's work. Under the FRED program, the M i n i s t e r , with cabinet approval and upon the recommendation of the 1 3Hansard, 1965, Vol. I l l , p. 3017. 114 Advisory Board, could undertake j o i n t l y with the provinces or pay contributions to the provinces i n respect of comprehensive r u r a l development programs i n s p e c i a l r u r a l development areas. Comprehensive r u r a l development programs were defined as programs to promote the s o c i a l and economic development of the area and to increase income and employment o p p o r t u n i t i e s . The program had to make p r o v i s i o n f o r p a r t i c -i p a t i o n by c i t i z e n s of the area. A sp e c i a l r u r a l development area had to be predominantly r u r a l with widespread low incomes which had, i n the opinion of the advisory board, a reasonable p o t e n t i a l f o r s o c i a l and economic development. The advisory board was to c o n s i s t of senior federal o f f i c i a l s , and was to review proposals and make recommendations to the m i n i s t e r . The Hon. Maurice Sauve ( M i n i s t e r of Forestry and sponsor) c i t e d the need f o r a measure to plug the gap l e f t by the concentration of much of the e x i s t i n g ARDA program on a g r i c u l t u r e . This was to be a program of assistance to the non - a g r i c u l t u r a l sectors of r u r a l econ-omies, whose problems were so acute that no ordinary program would bring r e s u l t s f a s t enough. In the debate, Mr. A l v i n Hamilton (P.C.: Qu'Appelle) expressed general approval f o r the l e g i s l a t i o n , an augmentation of his own ARDA program, but noted that the Fund would have to be subservient to the Canadian Council of Resource Mi n i s t e r s (which ARDA i s ) i n order to be C o n s t i t u t i o n a l l y v a l i d . But i t was l e f t to Mr. Rosaire Gendron ( L i b . : Riviere-du-Loup-Temiscouta) to come up with the most s a t i s f a c t o r y discussion of the 115 urban-regional p o l i c y issue encountered i n t h i s s t u d y J 4 His remarks are duplicated at length i n Appendix B, and we s h a l l only summarize h i s points here. Mr. Gendron noted the problems created at both ends of the rural-urban migration a x i s , and wondered, on behalf of a l l r u r a l areas, whether these problems were r e c e i v i n g adequate a t t e n t i o n . He wondered i f national p o l i c y would come to recognize the need to r e d i r e c t the d i s t r i b u t i o n of economic benef i t s i n space, and whether any national p o l i c y would have e f f e c t . He speculated as to the r e l a t i v e costs of concentration i n b i g c i t i e s , and as to the r e a l desires of the people who had to l i v e i n them. As part of a s o l u t i o n , Mr. Gendron proposed a department of r u r a l development a t both p r o v i n c i a l and federal l e v e l s , the federal department to be headed by the Prime M i n i s t e r i n order to secure the co-operation of a l l agencies of government. Other major e f f o r t s would be d i r e c t e d to regrouping of m u n i c i p a l i t i e s , d e c e n t r a l i z a t i o n , p r o v i s i o n of urban s e r v i c e s , regional i n d u s t r i a l organizations and many more. Concluding, Mr. Gendron noted whimsically: Our t e r r i t o r y i s very well endowed with assets and p o s s i b i l -i t i e s . Father Lebret said that we have a l o t to learn from what we c a l l the underdeveloped countries. Such i s the case f o r the areas whose fundamental q u a l i t i e s must be r e v a l o r i z e d ( s i c ) and which must meet the challenges of our ancestors who wanted to make of those 30 acres of i c e and snow the second most ' i n d u s t r i a l i z e d country i n the world and the one with the highest standard of l i v i n g . . .15 1 4Hansard, 1966, Vol. V, pp. 4977-79. 1 5Hansard, 1966, Vol. V, p. 4979. 116 By now i t i s hardly necessary to add that Mr. Gendron i s a former mayor and former president of the Quebec Union of M u n i c i p a l i t i e s . Two other acts concern t h i s examination, but i t i s not pos s i b l e to report on the debates associated with them, since they are not yet indexed and, i n the case of one a c t , the comments are enmired i n debate on other aspects of government organization which do not concern t h i s paper. The acts are the Government Organization Act, Part V, and the Regional Development Incentives Act, both passed i n 1969. (9) The Government Organization Act, Part V (1969) The Government Organization Act (1969) i s a general a c t concern-ing a number of departments of government, and i n Part V i t e s t a b l i s h e s the Department of Regional Economic Expansion, the Trudeau government's sweeping new approach to regional economic problems, f i r s t headed by the Hon. Jean Marchand. As noted above, the Act replaced the A t l a n t i c Development Board, the Fund f o r Rural Economic Development A c t , and the Area Development Incentives Act, although e x i s t i n g agreements would be honoured. ADA was absorbed i n t o the st r u c t u r e of the new department. Other regional and area development programs and agencies f o r which the department was made responsible were unaffected by the l e g i s l a t i o n . These included the P r a i r i e Farm R e h a b i l i t a t i o n Act, ARDA, the Maritime Marshland R e h a b i l i t a t i o n Act, the A t l a n t i c Provinces Power Development A c t , and the Canada New S t a r t program. In terms of new p r o v i s i o n s , the Act gave the mi n i s t e r power over a l l matters of federal j u r i s d i c t i o n not by law assigned elsewhere, 117 " r e l a t i n g to economic expansion and s o c i a l adjustment i n areas r e q u i r i n g s p e c i a l measures to improve opportunities f o r productive employment and access to those o p p o r t u n i t i e s . " The m i n i s t e r i s to formulate plans and implement them w i t h i n the government, and to make p r o v i s i o n f o r co-operation with the provinces and the residents of the areas concerned. He can make contribu t i o n s or loans to provinces, set up j o i n t agencies, or make grants and loans d i r e c t l y to i n d i v i d u a l s . The department would be financed from regular appropriations by P a r l i a -ment and not by the use of sp e c i a l funds. The A t l a n t i c Development Council i s included i n the l e g i s l a t i o n , and i t i s to have j u r i s d i c t i o n over a l l programs having s p e c i a l i m p l i -c a t i o n s f o r that region. In ad d i t i o n to the designated areas program, the m i n i s t e r may c l a s s i f y an area as a special area i f employment op p o r t u n i t i e s are e x c e p t i o n a l l y l i m i t e d , thus making s p e c i a l federal a i d a v a i l a b l e . This l e g i s l a t i o n i s c e r t a i n l y much broader i n scope than even the t o t a l i t y of previous programs, but i t i s f a r too e a r l y to judge i t s e f f e c t i v e n e s s i n actual operation. (10) The Regional Development Incentives Act (1969) The Regional Development Incentives Act i s an overhaul of the previous Area Development Incentives Act. I t provides new c r i t e r i a f o r designation of areas, which may be as large as whole provinces. Such c r i t e r i a are the existence of e x c e p t i o n a l l y inadequate employment op p o r t u n i t i e s and evidence to s a t i s f y the cabinet that the prov i s i o n of 118 i n c e n t i v e s w i l l make a " s i g n i f i c a n t c o n t r i b u t i o n to economic expansion and s o c i a l adjustment w i t h i n the region." Incentives offered are primary incentives (20% of approved c a p i t a l costs or $6,000,000, which-ever i s l e s s ) and secondary incentives a v a i l a b l e i f the p r o j e c t involves a new product (5% of approved c a p i t a l costs and $5,000 f o r each new j o b ) , s u b j e c t to c e r t a i n maximums. In determining the amount of the i n c e n t i v e , the m i n i s t e r i s to take i n t o consideration the c o n t r i b u t i o n , economic and s o c i a l , which the p r o j e c t might make, the cost of provin-c i a l and municipal s e r v i c e s , the amount of p r o v i n c i a l and municipal s e r v i c e s , the amount of p r o v i n c i a l and municipal assistance provided, p o l l u t i o n c o s t s , etc. S i m i l a r p r o v i s i o n f o r discussion of manpower requirements as i n the ADA program i s made as a condition of the as s i s t a n c e . C. TRACES OF A NATIONAL STRATEGY FOR URBAN AND REGIONAL DEVELOPMENT By now, some i n d i c a t i o n of emerging trends i n the two major areas of l e g i s l a t i o n w i l l have become c l e a r . In t h i s s e c t i o n these trends w i l l be examined i n r e l a t i o n to the hypothesis. (1) Housing and Urban Development In housing, as elsewhere, a fragmented but s t e a d i l y broadening presence f o r the federal government i s observed. From the narrowly conceived p o l i c i e s of the King and St. Laurent ad m i n i s t r a t i o n s , commit-ted to the u t i l i t y of p r i v a t e enterprise and the s i n g l e family home, the f e d e r a l government was moving through the amendments of the MHA i n 119 the l a t e 1950's to a l a r g e r r o l e . The Diefenbaker years brought two new i n i t i a t i v e s i n the areas of sewage treatment and u n i v e r s i t y housing. By the time the L i b e r a l s took o f f i c e under Pearson i n 1963, they were ready to make the bold r e v i s i o n s embodied i n the 1964 amendments, with some very s e r i o u s l y counterproductive r e s u l t s . However, i t i s apparent that a lesson has been learned, i n that the "sandbox approach" that massive in f u s i o n s of funds f o r large projects w i l l solve everything appears to have been r e j e c t e d . As the Hon. Robert Andras, c u r r e n t l y the m i n i s t e r i n charge of housing, s a i d , "We w i l l . . . avoid new and f u r t h e r major int e r v e n t i o n s u n t i l we have at l e a s t s u f f i c i e n t under-standing of the consequences to j u s t i f y them i n the l i g h t of b e t t e r -i d e n t i f i e d urban objectives."'' 6 C e r t a i n l y , then, the current federal strategy r e f l e c t s a consciousness that more than j u s t a housing problem i s being faced. (2) Regional and Area Development The l e g i s l a t i o n reviewed shows an almost unbelievable p r o l i f e r -a t i o n of ad hoc programs, f o r which both L i b e r a l and Conservative governments have been responsible. In addition to t h i s l e g i s l a t i o n , the other acts brought under the Department of Regional Expansion f u r t h e r i n d i c a t e the extent of p r o l i f e r a t i o n of more minor measures which has taken place. Here too, however, a tendency to view problems i n an "Remarks by Honorable Robert Andras, Federal M i n i s t e r Respon-s i b l e f o r Housing," Is r a e l Bond Campaign Dinner i n honour of leaders of the Toronto construction i n d u s t r y , Toronto, Ontario, November 5, 1969. (Press Release), p. 9. 120 ever-widening context has been observable, culminating i n the a s p i r a -t i o n s ( i f not the actual achievements) of the Department of Regional Economic Expansion. Such programs have tended to r e f l e c t the power base of the p o l i t i c a l party which i n i t i a t e d them: the Conservatives with an a g r i c u l t u r a l base and a commitment to "national development, and the L i b e r a l s with a need to s a t i s f y r u r a l Quebec and parts of the Man*times faced with obsolescence of t h e i r communities, backed up by a strong sense of s o c i a l concern and Pearsonian generosity. In some respects, the m u l t i p l i c i t y of programs was a b l e s s i n g , l eaving the successful ones t h e i r successes i n t a c t , and allowing f o r some experimentation on d i f f e r e n t f r o n t s . C e r t a i n l y the problem of one big f a i l u r e has been avoided, and the newly integrated Department has a s o l i d basis of experience -- a l b e i t unpleasant i n some cases -- upon which to b u i l d a r e a l l y e f f e c t i v e , comprehensive program. Unfortunately the tendency to focus on unemployment as a c r i t e r i o n f o r s p e c i a l a s s i s t -ance p e r s i s t s , although i n a d i l u t e d form. I t i s to be hoped that t h i s f a c t i s only due to the absence of data upon which to base other c r i t e r i a , and that the development of such c r i t e r i a i s high on the Hon. Mr. Marchand's l i s t of p r i o r i t i e s . The s h i f t from the negative aspect of r e l i e v i n g d i s t r e s s to the p o s i t i v e one of achieving a more equal d i s t r i b u t i o n of economic growth remains to be made, at l e a s t i n l e g i s -l a t i v e form. l /The Conservatives were also impelled by the f a c t that a l l three mainland A t l a n t i c provinces had Conservative governments when Diefenbaker came to power. 121 D. CONCLUSION: GROPING WITH A PURPOSE On balance, then, there would appear to be grounds to suggest th a t important elements of a national urban and regional growth strategy began to emerge i n the major l e g i s l a t i o n of the study period. C e r t a i n l y , the federal government has learned through p a i n f u l experience that the sources of these problems l i e i n an i n c r e a s i n g l y broad and i n t e r r e l a t e d s et of events, and that the response must have s i m i l a r c h a r a c t e r i s t i c s . With a major reassessment of housing and urban development p o l i c y under way and a new department i n charge of area and regional development, progress i s c e r t a i n l y being made. Perhaps the 1970's w i l l see the l o g i c a l connection made between these two areas of d i r e c t action i n s p a t i a l p o l i c y . But even i f such a connection were made i t would s t i l l ignore the more general a c t i v i t i e s of the government as regulator and as an economic u n i t , and these a c t i v i t i e s have profound, i f unmeasured, e f f e c t s on s p a t i a l growth patterns. Before ending t h i s chapter, however, i t may be useful to b r i e f l y document the continuing debate on a national urban p o l i c y . E. THE CONTINUING DEBATE The Economic Council of Canada began the most recent phase of a l i v e l y d i s cussion which has surfaced at l e a s t onee every ten years i n t h i s century i n debate on Canadian p u b l i c p o l i c y . In i t s Fourth Annual Review, 1 8 the Council published now f a m i l i a r f i g u r e s concerning the 18 Economic Council of Canada, Fourth Annual Review (Ottawa: The Queen's P r i n t e r , 19b7), Chapter 7, pp. 173-225. 122 dimensions of future urban growth i n Canada: by 1980, 2/3 of the Canadian population w i l l l i v e i n 29 large major communities, and 1/3 w i l l l i v e i n Montreal, Toronto or Vancouver. The major problems presented by t h i s growth, i n the Council's view, are i n the f i e l d s of housing, urban sprawl and areal expansion, tr a n s p o r t a t i o n and t r a f f i c , 1 -water supply and p o l l u t i o n problems, and space f o r r e c r e a t i o n . The Review devotes e n t i r e sections to the problems of urban government and the f i n a n c i a l i m p l i c a t i o n s of urban growth, i n an i n t e r e s t i n g p a r a l l e l with the views of Moynihan. The Review gives data where l i t t l e data had pr e v i o u s l y e x i s t e d ; i t presents a balanced, r e s t r a i n e d and reasoned discussion of the urgent need f o r a c t i o n . For these reasons, the Review has had a wide i n f l u e n c e , beginning with Prime M i n i s t e r Pearson's f e d e r a l - p r o v i n c i a l conference on housing and urban development i n December of 1967. The timing of the conference was unfortunate from the point of view of the h o s t i l i t y of the provinces to new federal i n i t i a t i v e s , and i t was a p o l i t i c a l debacle f o r Pearson. Pearson i s reported to have s a i d of the conference, "They were the worst twenty-four hours i n my l i f e . " 2 0 In view of the other c r i s e s Pearson had faced ( i n c l u d i n g Suez, and the Rivard and other scandals), those were strong words indeed. yThe Council stated that urban transportation ranks i n economic importance with the problem of developing the national transcontinental transport system i n the past. Peter C. Newman, The Distemper of Our Times (Winnipeg: Greywood Publishing Limited, 1968), p. 393. 123 Pearson's speech to the conference,2"' however, i s an interesting presentation of his idea of the federal role in urban a f f a i r s . Outlin-ing the dimensions of the problem (based on the Economic Council's presentation), Pearson recognizes primary provincial responsibility for this area of p o l i c y , but suggests that problems of c i t i e s c o l l e c t i v e l y present a national problem which clearly concerns the federal govern-ment, In addition, federal responsibility for managing the national economy could be invoked. Noting the history of the federal involvement in housing, he turns to specific proposals. These included federal participation in planning for improved transportation, a federal legis-l a t i v e framework for an attack on p o l l u t i o n , and four broad changes in housing policy. These were: federal financial participation in compre-hensive urban regional planning and in advance acquisition of land; financial support for land assembly and development of new communities; housing subsidies as part of existing federal and provincial regional poverty programs; and more vigorous public support for low income housing. In perhaps the boldest move, Pearson proposes to establish an Advisory Committee on Housing and Urban Development, which would be appointed j o i n t l y by the two levels of government, and which would serve a function with regard to urban policy similar to that served by the Economic Council of Canada in economic policy. "Opening Statement by the Prime Minister to the Federal-Provincial Conference on Housing and Urban Development," (Ottawa: Press Release, December, 1967). 124 Pearson's proposals f e l l on deaf ears; a 1970 perspective c l e a r l y shows that they were opposite to the d i r e c t i o n of the ebb and flow of power between federal and p r o v i n c i a l government i n Canada. However, the Trudeau government began i t s term i n o f f i c e with the appointment of a task force on housing and urban development. I t s ?? r e p o r t , released e a r l y i n 1969, contains a large number of recommen-dations f o r minor adjustments i n p o l i c y , and not a fundamental assess-ment of the country's problems and the a l t e r n a t i v e s open. The report's r e a l o r i e n t a t i o n i s concerned with housing, which i t f e e l s can best be provided by governmental o r c h e s t r a t i o n of an e s s e n t i a l l y p r i v a t e market. In view of t h i s judgment, most of i t s recommendations are concerned with improving the a b i l i t y of t h a t market to provide housing i n greater quantity and d i v e r s i t y . In terms of "urban redevelopment," however, the report urges regional government on the provinces, a reassessment of urban renewal, and s p e c i f i c measures to check d e t e r i o r a t i o n i n c e n t r a l c i t y areas. The H e l l y e r report (as i t has come to be c a l l e d ) also makes b r i e f reference to the need to co-ordinate urban development and regional development p o l i c i e s , recommending that the "federal govern-ment should undertake in-depth studies to determine the e x p l i c i t r e l a t i o n s h i p between urban growth and regional development. 1 , 2 3 In JMP-TJl o l the Task Force on Housing and Urban Development, Paul T. H e l l y e r , Chairman, (Ottawa: The Queen's P r i n t e r , 1969), 2 3 I b i d . , p. 70. 125 terms of ad m i n i s t r a t i v e s t r u c t u r e , the report recommends the e s t a b l i s h -ment of a Department of Housing and Urban A f f a i r s , and d e c e n t r a l i z a t i o n of CMHC. In the f i e l d of research, i t urges the federal government to sponsor an expanded urban research program, oriented around " p r a c t i c a l " p r o j e c t s , i n c l u d i n g a central information bank and the b u i l d i n g of a "new c i t y " as a laboratory f o r urban research. Thus, the H e l l y e r r e p o r t , with l i t t l e time and l e s s i n the way of research support, proposes only some adjustments to e x i s t i n g p r a c t i c e s . But H e l l y e r resigned from the cabinet i n May of 1969, i n pr o t e s t over the government's f a i l u r e to implement his recommendations. 2 4 The new m i n i s t e r i n charge of housing, the Hon. Robert Andras, i s moving cautiously towards a r e d e f i n i t i o n of the federal r o l e . In a recent speech, Mr. Andras noted the need f o r a broader concensus on our urban o b j e c t i v e s , the need f o r objectives as wide i n scope as our urban r e a l i t y , and the need to know how the p o l i c y framework can be a l t e r e d to ensure attainment of those o b j e c t i v e s . Concluding, he stated I f t h i s c a l l s f o r a National Urban P o l i c y , then I would caution that i t would have to be: N a t i o n a l , not Federal, f o r t h i s would sure l y e n t a i l the c o l l e c t i v e response of Canadian s o c i e t y and a l l i t s p o l i t i c a l i n s t i t u t i o n s ; Urban, not municipal or l o c a l , f o r the senior government does not have the a b i l i t y nor should i t be allowed to run the See Paul H e l l y e r , "Couldn't Keep Pledge So I Quit, H e l l y e r Says," Toronto Daily S t a r , May 10, 1969, p. 1". 126 c i t i e s i n t h e i r i n f i n i t e and intimate d e t a i l , s t r e e t by s t r e e t , neighbourhood by neighbourhood. P o l i c y , not a c o l l e c t i o n of random, c o n f l i c t i n g , chaotic i n t e r v e n t i o n s . To those of you who balk at t h i s - and there w i l l be many -I throw out t h i s f a c t . By the year 2000 we s h a l l have more than doubled the s i z e of our l a r g e r c i t i e s , and the l a r g e s t c i t i e s may well grow by even more. Our problems now are t r i v i a l compared to the sprawl, the u n a v a i l a b i l i t y of housing, the n o i s e , the f i l t h , the t r a f f i c , the taxes, the violence t h a t we may well face. . . . But the magnitude of the challenge should not f r i g h t e n us - f o r i t provides to us as a s o c i e t y an opportunity never before taken up - a challenge to shape our future rather than be swamped by events. . , 2 5 In mid-1970, i t i s impossible to say whether the challenge Mr. Andras poses w i l l be taken up, or even i f he w i l l be permitted to i n v o l v e the federal government i n taking i t up. "An Address to the Canadian I n s t i t u t e of Public A f f a i r s , Toronto," by the Hon. Robert Andras, February 27, 1970 (mimeographed), pp. 17-18. CHAPTER VI CONCLUSIONS A. INTRODUCTION I t remains to draw some conclusions from the data and an a l y s i s presented above. In t h i s chapter, conclusions a r i s i n g out of the background chapters w i l l be presented, followed by general conclusions a r i s i n g out of the examination of the throne speeches and selected l e g i s l a t i o n . F i n a l l y , a general v e r d i c t on the hypothesis w i l l be presented, and suggestions f o r future research o u t l i n e d . B. CONCLUSIONS FROM THE BACKGROUND CHAPTERS In Chapter II a broad range of theory r e l a t i n g to urban and regional development, and to p u b l i c p o l i c y i n t h i s area, was examined. The general conclusion to be reached from t h i s examination was that the state of t h e o r e t i c a l thought on these issues i s a highly fragmented and u n s a t i s f y i n g one. This s i t u a t i o n i s p a r t l y explained by the short period of time during which regional development theory has received any s i g n i f i c a n t amount of t h e o r e t i c a l a t t e n t i o n . I t i s also explained by the extremely complex nature of the processes of urban and regional expansion, which may i n f a c t be a p a r t i a l explanation f o r the small amount of t h e o r e t i c a l a t t e n t i o n the processes have received. There i s , however, general agreement that economic a c t i v i t i e s d i s t r i b u t e them-selves i n space i n a nonrandom way, and that c e r t a i n areas enjoy a 128 comparative advantage which tends to lead to a concentration of a c t i v i t y i n these areas. The divergences of opinion centre around the question of the elements of such comparative advantages and how the dynamics of the processes have changed over time. Chapter II then turns to examination of the national p o l i c y issues implied by Friedmann's concept of centre and periphery. Here three dichotomies were noted. The f i r s t was growth vs. welfare i n the national economy, and i t ra i s e d the issue of whether resources ought to be devoted to pursuing some goal of o v e r a l l growth f o r the n a t i o n , or whether these resources ought to be channelled i n t o e f f o r t s to d i s t r i b -ute growth throughout the national space. The second dichotomy, balance vs. imbalance, d e a l t with another aspect of t h i s problem, posing the problem of whether any e f f o r t should be made to d i s t r i b u t e economic a c t i v i t y throughout the country, or whether a c e r t a i n imbalance i n the form of c l u s t e r i n g a c t i v i t y around core areas was not d e s i r a b l e , on the assumption that population would migrate to these areas. The t h i r d dichotomy concerned concentration vs. d i s p e r s a l , and r a i s e d the issue of whether an even d i s t r i b u t i o n of a c t i v i t y i n space was d e s i r a b l e , or whether there ought to be a strategy of a d i s t r i b u t i o n of centres: "concentrated d e c e n t r a l i z a t i o n . " I t was noted that these d i s t i n c t i o n s are semantic to a degree, but that they provide s h i f t s of the kaleidoscope which enable a c l e a r e r perception of real p o l i c y dilemmas to emerge. In Chapter I I I the experience of selected f o r e i g n countries i n urban and regional development was examined. In the case of France, 129 the most s o p h i s t i c a t e d e f f o r t at s p a t i a l management yet seen was examined, culminating with the merging of national economic and physical planning, and the development of a hierarchy of c i t i e s . However, "i t was also noted that much i s s t i l l to be done, and the experience so f a r has been i n c o n c l u s i v e . The examination of the B r i t i s h case revealed a preoccupation with s o c i a l aspects of what were e s s e n t i a l l y economic problems. The government only f a l t e r i n g l y heeded the sound advice i t received from the Barlow commission i n 1940, and i t was only i n the 1960's that the comprehensive view of that commis-sion was gaining f u l l acceptance i n government p o l i c y . An experience much c l o s e r to that of Canada was noted i n the case of the United States, another federal s t a t e , where p o l i c y had three main t h r u s t s . F i r s t , i n housing and urban development, a s t e a d i l y developing compre-hensiveness was noted i n the federal r o l e . This focus was given new urgency by s o c i a l and r a c i a l unrest, which was the second focus, which helped to develop an awareness of the s o c i a l c l a s s dimensions of urban problems. F i n a l l y , the United States has made some conservative and te n t a t i v e advances i n the f i e l d of regional economic development, and even here a broadening perspective was noted. As a conclusion to the background chapters, an overview of the Canadian s i t u a t i o n was presented, along with an explanation of the f u l l i m p l i c a t i o n s of a national urban growth strategy. I t was noted that the l a t t e r e n t a i l e d the federal government conducting a l l i t s a c t i v i t i e s w i t h i n a framework of a desirable c o n f i g u r a t i o n , previously agreed on, of urban and regional development. 130 C. THE THRONE SPEECHES In Chapter IV an analysis of one major portion of the data f o r the study was presented i n the dis c u s s i o n of the throne speeches. Here, the themes of housing and urban development and regional expansion and r u r a l development emerged. The growth of federal housing and urban development objectives by a process of accretion and with an emphasis on physical production and support of the p r i v a t e housing market was noted. But o c c a s i o n a l l y , as i n 1944 and 1967, a l a r g e r perspective was detected, showing f l e e t i n g glimpses of an awareness that housing short-ages were only one of a complex of pressures which urban growth was placing on the nation. In regional economic development p o l i c y , a concern with s p e c i f i c measures to r e c t i f y s p e c i f i c problems was noted i n the throne speeches throughout the 1940's and e a r l y 1950's. Then, i n 1957, the Diefenbaker government organized these s p e c i f i c measures around a loo s e l y defined concept of "national development" designed to bring economic progress to a l l parts of Canada. A new and comprehensive step, the ARDA program, was introduced i n 1961, but received only passing mention i n the throne speech of that year. The 1960's saw a great preoccupation with the A t l a n t i c region and with r u r a l development, which were the subject of a number of piecemeal proposals announced by throne speeches of both governments. The coming of the Trudeau government to power i n 1968 brought the reorganization and u n i f i c a t i o n of these piecemeal programs under the Department of Regional Economic Expansion. :' 131 In general, then, i t was noted that the major goals of the federal government during the study period concerned maintaining a high level of national income and a low level of unemployment, with the emphasis shifting from the former to the latter as the period progres-sed. Concomitant with this shift there appears to have been developing at least an implicit recognition that these goals, particularly high employment, have important spatial ramifications. D. LEGISLATION The second major portion of the data for the study was summarized and analysed in Chapter V. This data consisted of selected pieces of major legislation with direct implications for urban and regional development, along with the debates surrounding its passage. Here, i t was noted that all the legislation passed was mentioned in at least one throne speech, but that not all measures mentioned in the speeches were eventually implemented. In the general area of housing and urban development, the legis-lation again revealed a steadily broadening presence for the federal government through amendments to the National Housing Act. By means of these amendments, the federal role developed from that of a joint lender for housing to that of a wide-ranging financial authority, involved in urban renewal, public housing, university housing, sewage treatment, education and research. This role evolved in a piecemeal way u n t i l , in the general review initiated by the Trudeau government of major areas : of government policy, large portions of this program were curtailed due i i 132 to the lack of any coherent underlying philosophy f o r federal a c t i o n . The upshot i s l i k e l y to be that 1968 w i l l come to be regarded as a watershed i n t h i s area of p o l i c y as the search f o r a more appropriate and e f f e c t i v e f e d e r a l r o l e i s pressed. In the f i e l d of area and regional development p o l i c y , an i n c r e d i b l e p r o l i f e r a t i o n of s i n g l e purpose agencies was documented. Each of these was responsible f o r a p a r t i c u l a r part of the t o t a l regional development task, and often they were placed under d i f f e r e n t m i n i s t e r s . While i t i s inconceivable that any government would a c t u a l l y plan to take such an ad hoc approach, i t was concluded that the p r o l i -f e r a t i o n of agencies has probably given the government valuable experience i n several aspects of the problem, thus avoiding the one big f a i l u r e which might otherwise have r e s u l t e d . Indeed, i t i s u n l i k e l y that any government would have had the experience or the p o l i t i c a l gumption to have i n i t i a t e d a comprehensive program with as many elements and as much money as the c o l l e c t i v i t y had. Such an amalgamation was possible by 1968, hov/ever, when the Department of Regional Economic Expansion was created. The new department, encompas-sing a l l the previous programs, has not been i n existence long enough f o r an accurate judgment of i t s e f f e c t i v e n e s s to be made. I t was of i n t e r e s t to note that the opposition p a r t i e s seemed better able than the government to see the question of s p a t i a l organ-i z a t i o n i n i t s broader context, and p a r t i c u l a r reference was made to Mr. Gendron's speech concerning the FRED l e g i s l a t i o n , i n which the l o g i c a l connection was made between urban development and regional 133 poverty. But i t was concluded that the directions taken by the govern-ment in these two areas were generally in the direction of establishing the prerequisite elements of a true national urban growth strategy. The paper then turned to documentation of the recent developments in the continuing debate on urban policy. Here, i t was noted that worthwhile efforts have been made to portray the dimensions of the problem, and that the federal government is proceeding cautiously in view of past failures and constitutional s e n s i t i v i t i e s . E. GENERAL CONCLUSION The hypothesis of this paper was that the evidence of a national strategy for urban growth and regional development in Canada from 1944 to 1969 appears in the broadening scope of federal intervention in the areas of housing and regional economic expansion^ subjects that are still considered separately in policy and remain to be integrated with other aspects of the federal impact on urbanization and regional development to form a comprehensive strategy. The general conclusion of the analysis i s that the hypothesis i s v a l i d , with an important q u a l i f i c a t i o n . This is that there is no'evidence of a conscious strategy, but rather there are indications of a gradually broadening scope of policy which is a major prerequisite to a conscious strategy. In addition, as noted, the housing/urban development and the area/regional development f o c i i have yet to be linked together in even the most rudimentary form. It would appear that this linkage i s the one to watch for during the 1970's. In addition, there i s no indication 134 that g i v i n g s p a t i a l dimensions to a l l a c t i v i t i e s of government has even been s e r i o u s l y considered. While some . d i f f e r e n t i a t i o n has t r a d i t i o n a l l y been made among regions i n such matters as f r e i g h t r a t e s , and while Finance M i n i s t e r Benson's 1969 budget made some departures, there i s no evidence of a comprehensive strategy behind t h i s type of a c t i o n . But the review of the experience of f o r e i g n countries i n t h i s area of a c t i v i t y , p a r t i c u l a r l y that of France, should place t h i s short-coming i n perspective. The h i g h l y s o p h i s t i c a t e d program of that country, pursued with reasonable vigour, appears to have had l i t t l e e f f e c t as y e t . I t may indeed be too soon to judge the French e f f o r t , but i t i s obvious that a major commitment of resources i s required of the n a t i o n a l government i n order to bring about even modest r e s u l t s , and i t can be l e g i t i m a t e l y asked whether the problems of space-economy are serious enough i n Canada to warrant such a commitment. While t h i s choice i s e s s e n t i a l l y a hypothetical one u n t i l the matter becomes a more pressing p o l i t i c a l i s s u e , i t should be noted that many of the influences implied by such a strategy are already being exerted by the national government i n a more random fashion. I t might be considered d e s i r a b l e that the government at l e a s t put i t s own house i n order by stacking the cards i t has i n favour of a more d e s i r a b l e d i s t r i b u t i o n of growth. Second, the question may become more urgent as d i s p a r i t i e s and congestion increase, and the s p a t i a l incidence of economic growth, cen t r a l to the formation of the country, may again become central to i t s continued s u r v i v a l . 135 In mid-1970, one has the sense that new courses are being charted f o r the federal response to urban growth and regional develop-ment. I t i s hoped that t h i s paper has provided some documentation of what has gone before, and what might emerge i n the f u t u r e . F. FUTURE RESEARCH As has been noted several times i n t h i s paper, there are vast areas of the subject matter that have received only s u p e r f i c i a l a t t e n -t i o n . To make a d i f f i c u l t s e l e c t i o n from such a f i e l d , a number of themes might be suggested, p a r t i c u l a r l y i n the Canadian context. One obvious area of f u r t h e r i n v e s t i g a t i o n would be the t h e o r e t i c a l b a s i s , which may y i e l d more s a t i s f y i n g r e s u l t s than were recorded here. In a d d i t i o n , the a d m i n i s t r a t i o n of the programs mentioned was often as important as the l e g i s l a t i o n of the goals, and research aimed at appraising such a d m i n i s t r a t i o n w i t h i n the context of s p a t i a l p o l i c y i n general would be extremely germane. The examination of other l e g i s l a t i o n bearing t a n g e n t i a l l y on regional development (eg. transpor-t a t i o n acts) but not reviewed here would also be i n t e r e s t i n g . Of course, the extremely d i f f i c u l t task of documenting the actual e f f e c t s of the federal government as a general u n i t affords the l a r g e s t and p o t e n t i a l l y most rewarding type of p r o j e c t which could be launched on the basis of t h i s study. F i n a l l y , a f u r t h e r consideration of the experience of f o r e i g n countries i n s p a t i a l p o l i c y could be expected to y i e l d r e s u l t s to both students of theory and of Canadian p r a c t i c e . 136 Bib!iography Theoretical and P u b l i c P o l i c y Issues Berry, Brian J.L. Geography of Market Centers and R e t a i l D i s t r i b u t i o n . Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , 1967. B o u d e v i l l e , J-R. Problems of Regional Economic PIanning. Edinburgh: Edinburgh U n i v e r s i t y Press, 1966. . B u i l d i n g the American C i t y (Report of the Commission on Urban Problems). Sen. Paul H. Douglas, chairman. Washington: United States Government P r i n t i n g O f f i c e , 1969. Canty, W i l l i a m , ed. The New C i t y (Report of the National Committee on Urban Growth P o l i c y ) . Washington: Praeger, 1969. C h r i s t a l l e r , Walter. Central Places i n Southern Germany. Translated by C a r l i s l e W. Baskin, Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , 1966. Clark, C o l i n . The Conditions of Economic Progress. London: Macmillan, 1940. Friedmann, John. Regional Development P o l i c y . Cambridge, Mass.: M.I.T. Press, 1966 Friedmann, John, and Alonso, W i l l i a m , eds. Regional Development and Planning. Cambridge, Mass.: The M.I.T. Press, 1964. F r i e d r i c h , Carl J . A l f r e d Weber's Theory of the Location of I n d u s t r i e s . Chicago: U n i v e r s i t y of Chicago Press, 1929. H a l l , Peter. The World C i t i e s . New York: McGraw-Hi11, 1966. Hansen, Ni l e s M. French Regional Planning. Bloomington, Ind.: Indiana U n i v e r s i t y Press, 1968. Hirschman, A.O. The Strategy of Economic Development. New Haven: Yale U n i v e r s i t y Press, 1958. I s a r d , Walter. Location and Space-Economy. Cambridge, Mass.: The M.I.T. Press, 1956. Keeble, Lewis. Town Planning at the Crossroads. London, England: The Estates Gazette, 1961. 137 Losch, August. The Economics of Location. Translated by W.H. Wolgom and W.F. S t o l p e r . New Haven: Yale U n i v e r s i t y Press, 1954. McCrone, Gavin. Regional P o l i c y i n B r i t a i n . London: George A l l e n and Unwin, 1969. North, Douglass C. "Location Theory and Regional Economic Growth." Journal of P o l i t i c a l Economy, V o l . 63 (June, 1955), 243-258. P e r l o f f , H.S., et a l . Regions, Resources and Economic Growth. Baltimore: Johns Hopkins Press, 1960. Ray, D. Michael. "Urban Growth and the Concept of Functional Region." Urban Studies: A Canadian Perspective. Edited by N.H. Lithwick and G i l l e s Paquet. Toronto: Methuen, 1968. Richardson, Harry W. Regional Economics. New York: Praeger, 1969. United Nations. Urbanization: Development P o l i c i e s and Planning. I n t e r n a t i o n a l So c i a l Development B u l l e t i n No. 1. New York: 1968. United States Advisory Commission on Intergovernmental R e l a t i o n s . Urban and Rural America: P o l i c i e s f o r Future Growth. (Report No. A-32) Washington: Advisory Commission on Intergovernmental R e l a t i o n s , 1968. United States President's Advisory Commission on Rural Poverty. The People L e f t Behind. Washington, D.C.: President's Advisory Commission of Rural Poverty, 1968. Warner, Sam Bass J r . Planning f o r a Nation of C i t i e s . Cambridge, Mass.: The M.I.T. Press, 1966. Canadian Context Andras, Hon. Robert. "An Address to the Canadian I n s t i t u t e of P u b l i c A f f a i r s , Toronto." February 27, 1970. (mimeographed). Brewis, T.N. Regional Economic P o l i c i e s i n Canada. Toronto: The Macmillan Company of Canada L i m i t e d , 1969. Economic Council of Canada. "The Challenge of Rapid Urban Growth." Fourth Annual Review. Ottawa: The Queen's P r i n t e r , 1967. Chapter 7. Economic Council of Canada. "Regional Aspects of Federal Economic P o l i c i e s . " F i f t h Annual Review. Ottawa: The Queen's P r i n t e r , 1968. Chapter 7. 138 . "Evolution of the Federal Government's P a r t i c i p a t i o n i n Housing and Urban Development." Background paper f o r the F e d e r a l - P r o v i n c i a l Conference on Housing and Urban Development, Ottawa, December, 1967. (Mimeographed.) H e l l y e r , Paul. "Couldn't Keep Pledge So I Quit, H e l l y e r Says." Toronto D a i l y S t a r . May 10, 1969, p. 1. L i t h w i c k , N.H. and Paquet, G e l l e s , eds. Urban Studies: A Canadian Perspective. Toronto: Methuen, 1968. Oberlander, H.P. "Community Planning and Housing: Step-Children of Canadian Federalism." Queen's Quarterly, LXVII (1961), No. 4. 665-72. Pearson, Rt. Hon. L.B. "Opening Statement by the Prime M i n i s t e r to the F e d e r a l - P r o v i n c i a l Conference on Housing and Urban Development. 1 1 Ottawa, December, 1967. (Mimeographed Press Release). . Report of the Federal Task Force on Housing and Urban Develop-ment. Paul T. H e l l y e r , chairman. Ottawa: The Queen's P r i n t e r , 1969. Stone, Leroy 0. Urban Development i n Canada. Ottawa: Dominion Bureau of S t a t i s t i c s , 1967. Throne Speeches and Se!ected L e g i s l a t i o n . "Federal L e g i s l a t i o n . " Part of Chapter e n t i t l e d " O f f i c i a l Sources of Information and Miscellaneous Data" i n Canada Year Book. Ottawa: The Queen's P r i n t e r . Issued annually, 1944-68. . Hansard (Debates of the House of Commons of Canada). 1944-1969. . Statutes of Canada. Ottawa: The Queen's P r i n t e r , 1944-1969. B i b l i o g r a p h i e s Blumenfeld, Hans. "The Trend to the Metropolis: Bibliography." Ottawa: Canadian Council on Urban and Regional Research, 1969. Canada, Department of Regional Economic Expansion, Planning D i v i s i o n . Regional Development and Economic Growth: Problems, Analyses and P o l i c i e s : A S e l e c t Bibliography. Ottawa: the Department, May, 1969. 139 Hodge, Gerald. "Urbanization i n Regional Development," I I I . A_ Selected Bibliography. Ottawa: Canadian Council on Urban and Regional Research, 1969. Rodwin, Lloyd. Urban Growth Str a t e g i e s of Nations: A Comparative A n a l y s i s . Council of Planning L i b r a r i a n s Exchange Bibliography No. 105. M o n t i c e l l o , I l l i n o i s : Council of Planning L i b r a r i a n s 1969. APPENDIX A NOTES ON FEDERAL THRONE SPEECHES, 1944-1969 141 Throne Speech Year: 1944 Date: January 27, 1944 Hansard Volume: 19V Page: 1-3 A. Main Points Mar -- d e c i s i v e e f f o r t now c a l l e d f o r : v i c t o r y i n s i g h t . Need to r e l i e v e occupied countries and stimulate post-war i n t e r n a t i o n a l trade through speedy r e h a b i l i t a t i o n of t h e i r economies, Canada w i l l seek establishment of i n t e r n a t i o n a l o r g a n i z a t i o n to keep peace. Three broad areas of domestic post-war planning f o r " s o c i a l s e c u r i t y and human welfare: (1) Preparation f o r demobilization (2) R e h a b i l i t a t i o n and re-establishment of demobilized personnel (veterans, d i s a b l e d , dependents, etc.) (3) Reconversion of economic l i f e to peacetime (expenditures on development work, i n d u s t r i a l develop-ment bank (IDB), tax m o d i f i c a t i o n s to a s s i s t i n d u s t r i a l conversion). Need to develop comprehensive national welfare system, i n c l u d i n g nat i o n a l health scheme, which w i l l r equire co-operation of the provinces. B. Urban and Regional References " . . . programmes of national and regional development, i n c l u d i n g housing and community planning." p.2. required f o r maintenance of f u l l employment. A measure to amend and supplement e x i s t i n g housing l e g i s -l a t i o n . C. L e g i s l a t i o n Promised I n d u s t r i a l Development Bank, tax m o d i f i c a t i o n s , "A measure to amend and supplement e x i s t i n g housing l e g i s l a t i o n . " p.2., export c r e d i t s insurance, health insurance, pension plan, family allowances, p r i c e f l o o r f o r a g r i c u l t u r a l products. Departments: (1) Veterans' A f f a i r s , (2) Reconstruction "to promote and co-ordinate planning f o r national development and post-war employments" p.2, and (3) S o c i a l Welfare f o r the " f i e l d s of health and s o c i a l insurance." p.2. 142 Throne Speech Year: 1945 Date: March 19, 1945 Hansard Volume: 19 I Page:;.' 1 A, Main Points The War being won. Need to support the foundations of an i n t e r -n ational o r g a n i z a t i o n . B. Urban.and Regional References N i l C. L e g i s l a t i o n Promised Resolution f o r the San Francisco Conference to d r a f t the UN Charter to be presented to Parliament f o r approval. 143 Throne Speech Year: Date: 1945 September 6, 1945 Hansard Volume: Page: 20 I 1-2 A. Main Points War won through the working of a "moral law." Gratitude to the armed forces and the home f r o n t , (monument to be b u i l t i n Ottawa). In t e r n a t i o n a l e f f o r t s have led to U.N. Charter to be r a t i f i e d . IMF being e s t a b l i s h e d . A d d i t i o n a l measures forthcoming to help feed the f o r e i g n poor. In domestic a f f a i r s ; a recent federal p r o v i n c i a l conference on maintaining high l e v e l of employment and national income. Conversion i s progressing, seen i n the a b o l i t i o n of some war r e s t r i c t i o n s , the Department of Reconstruction and Supply, (to be established) and the forthcoming c o n s o l i d a t i o n of defense s e r v i c e s , Housing i s being b u i l t as f a s t as p o s s i b l e . Unemployment Insurance and Family Allowances now i n operation. Plan Old Age S e c u r i t y on a broader b a s i s . Need f o r medical care programme. Need to c l a r i f y Canadian c i t i z e n s h i p and adopt a f l a g . B. Urban and Regional References Housing being b u i l t as f a s t as p o s s i b l e - shortage of m a t e r i a l s . C. L e g i s l a t i o n Promised Department of Reconstruction and Supply, extended Old Age S e c u r i t y , Medicare, Canadian f l a g , c i t i z e n s h i p . 144 rone Speech Year: Date: 1946 March 14, 1946 Hansard Volume: Page : 20 I I 1-2 A. Main Points High p r i o r i t y f o r i n t e r n a t i o n a l a i d : "The maintenance of a high l e v e l of employment and national income i s a fundamental aim of govern-ment p o l i c y . " p . l . Must revive i n t e r n a t i o n a l trade. Loan to U.K. T r a n s i t i o n to peace time conditions speedy and with l i t t l e f r i c t i o n . Almost a l l the forces now home. Need to complete "Veterans' Charter" and e s t a b l i s h permanent armed f o r c e s . Housing a problem, e s p e c i a l l y b u i l d i n g m a t e r i a l s . CMHC est a b l i s h e d and working with Wartime Housing Limited and the Veterans' Land Act Ad m i n i s t r a t i o n . W i l l bring housing under one a u t h o r i t y . W i l l c l a r i f y Canadian c i t i z e n s h i p . Viscount of Tunis appointed successor to Gov. General. B. Urban and Regional References Housing s t i l l a problem--three agencies administering housing assistance to be brought under one m i n i s t e r . C. L e g i s l a t i o n Promised F i n a n c i a l l e g i s l a t i o n to support external trade. Revise and c l a r i f y Canadian c i t i z e n s h i p . 145 Throne Speech Year: Date: 1947 January 30, 1947 20 I I I 2-3 Hansard Volume: Page: A. Main Points Viscount of Tunis' f i r s t speech. I n t e r n a t i o n a l : tension has eased. Peace t r e a t i e s signed f o r some c o u n t r i e s . Canada making major c o n t r i b u t i o n i n i n t e r n a t i o n a l a i d . Canadian support f o r U.N., e s p e c i a l l y i n i t s conference on trade and employment. Domestic a f f a i r s : changeover going r a p i d l y and w e l l . Basis l a i d f o r peacetime armed f o r c e s . Industry almost completely reconverted. Employment high. Problems i n primary industries—government sponsoring marketing agreements to deal with excess demand. Wage and s a l a r y controls removed: w i l l only keep those controls which are needed to f i g h t i n f l a t i o n . Government w i l l ask f o r some extension of parts of the National Emergency T r a n s i s t i o n a l Powers Act due to expire March. Housing progress continues with the help of p r o v i n c i a l and municipal governments. Tax agreements arranged with seven of the provinces. Government w i l l sponsor conference on p u b l i c investment and s o c i a l s e c u r i t y . B. Urban and Regional References Housing progress continues with the help of p r o v i n c i a l and municipal governments. S t a r t s met the 1946 o b j e c t i v e . C. L e g i s l a t i o n Promised Enabling l e g i s l a t i o n f o r the U.N. Continuation of emergency powers. Approval f o r f e d e r a l - p r o v i n c i a l tax agreements. Readjustment of representation i n the House of Commons i n Accordance with BNA Act amendments. 146 Throne Speech Year: Date: 1947 December 5, 1947 Hansard Volume: Page: 20 IV 1-2 A. Main Points I n t e r n a t i o n a l conditions " d i f f i c u l t and d i s t u r b i n g . " Peace t r e a t i e s s t a l l e d . Canada e l e c t e d to the U.N. S e c u r i t y C o u n c i l . Domestically--"general p r o s p e r i t y . " F a i l u r e of trade to revive has complicated the balance of payments s i t u a t i o n . "A permanent s o l u -t i o n of our exchange problems and the fu t u r e well-being of the nation depend on the r e v i v a l of world trade." p.2. Temporary measures to conserve U.S. d o l l a r s . Some c o n t r o l s under continuation of T r a n s i t i o n a l Measures Act (1947) to be continued past Dec 31, 1947. In view of i n f l a t i o n problems, some controls have been restored. Housing i s progressing. F i s h e r i e s Prices Support Board, Maritime Commission, and Dominion Coal Board are a l l duly c o n s t i t u t e d . Negotiations f o r entry of Newfoundland are under way. B. Urban and Regional References Housing progressing. Government w i l l introduce measure f o r low-rental housing project f o r veterans. C. L e g i s l a t i o n Promised Increase i n i n i t i a l payment to producers of wheat under the U.K. marketing agreement. Low-rental housing p r o j e c t f o r vets. Labour measure. Committee on human r i g h t s . Revise Indian Act. 147 Throne Speech Year: Date: 1949 September 15, 1949 Hansard Volume: Page:- : 21 I 4-5 A. Main Points Now that Newfoundland i s part of Canada, we can turn to measures to make the Supreme Court the court of l a s t r e s o r t , to r e p a t r i a t e the c o n s t i t u t i o n (at l e a s t i n matters not a f f e c t i n g p r o v i n c i a l powers, r i g h t s of education and of language). World peace i s not f i r m ; NATO i s Canada's defence against communism. But economic health i s the best s e c u r i t y against communism. Canada i s s t i l l doing her best. In t e r n a t i o n a l wheat agreement now operating. At home, p r o s p e r i t y continues, i n a g r i c u l t u r e , c a p i t a l envest-ment, and employment. The labour s i t u a t i o n i s s a t i s f a c t o r y . New Old Age Pension agreements have been reached with 9 provinces. B u i l d i n g more housing than ever before, but demand i s s t i l l high. New a i r transport agreements reached with U.S. and U.K. g i v i n g us new routes and stops. B. Urban and Regional References More housing b u i l t than ever but demand i s s t i l l high. Following discussions with provinces, there w i l l be amendments to broaden the scope of NHA. Continuation of functions of Department of Reconstruction and Supply, i n c l u d i n g m i n i s t e r i a l r e s p o n s i b i l i t y f o r CMHC. Assistance f o r TCH. Amend Veterans' Land Act (1942) and P r a i r i e Farm Assistance Act. C. L e g i s l a t i o n Promised Consolidate defence forces and Department of National Defence. Broaden NHA. Continue functions of Reconstruction and Supply. TCH assistance. Measures f o r national trademark and l a b e l l i n g , f o r e s t conserva-t i o n , overseas telecommunications, assistance to s h i p b u i l d i n g and merchant shipping, and extend Import and Export Permits Act. 148 Throne Speech Year: Date: 1950 February 15, 1950 Hansard Volume: Page: 21 II 1-2 A. Main Points Procedure for constitutional change agreed to at a conference in January. A general conference scheduled for f a l l . Negotiations with provinces continuing on housing, TCH, and forest conservation. Full support to U.N. and to Colombo conference. "Cold War" situation ominous in spite of NATO's presence. Employment and prosperity "remain at a high l e v e l . " p . l . Good prospects for construction, capital development and consumer demand. But "seasonal and local factors" led to regional unemploy-ment in the l a s t few months. This was the f i r s t real test of Unemployment Insurance. Farm prices declining due to international pressures. Exports at a high level inspite of a world-wide dollar shortage. Trade negotiations to be commenced soon. B. Urban and Regional References Federal-provincial negotiations on housing, TCH, and forest conservation. Regional unemployment. Grants to municipalities with exceptional concentration of Federal property. C. Legislation Promised Re-introduced measures concerning the armed forces. Widen the scope and extend the benefits of Unemployment Insurance. Renew Wheat Board powers. Control and orderly decontrol of rents. Revise Indian Act. Grants to municipalities in l i e u of taxes. 149 Throne Speech Hansard Volume: Page: Year: Date: 1950 August 29, 1950 21 III 4 A. Main Points Unacceptable disruption in railway transport, due to strike. Korean war—original reason for special session. B. Urban and REgional References Nil C. Legislation Promised Act to send the Railway industry back to work. Measure to increase national security in view of the outbreak of war in Korea. 150 Throne Speech Year: Date: 1951 January 30, 1951 Hansard Volume: Page: 21 IV 1-2 A. Main Points Korea--an example of "communist imperialism." Working towards an integrated NATO f o r c e . Urgent need f o r St. Lawrence Seaway and power development "for continental s e c u r i t y . " The nation's work making powers to be expanded. W i l l a l t e r c i t i z e n s h i p r e t u l a t i o n s to require " l o y a l t y . " Domestic pr o s p e r i t y continues. F e d e r a l - p r o v i n c i a l r e l a t i o n s very c o r d i a l . The government w i l l receive reports of royal commissions on tra n s p o r t , and on national development i n a r t s , l e t t e r s and sciences. B. Urban and Regional References St. Lawrence Seaway and power development needed f o r continental securi t y . Grants to m u n i c i p a l i t i e s i n l i e u of taxes. Amend CMHC ac t . C. L e g i s l a t i o n Promised Canadian p a r t i c i p a t i o n i n Colombo Plan War powers to be given to Cabinet to use Department of Defence Production. Provisions of Veteran's Charter to apply to veterans of sp e c i a l f o r c e s . Amend Canadian c i t i z e n s h i p laws. Grants i n l i e u of taxes to m u n i c i p a l i t i e s . Proposals f o r c o n s t i t u t i o n a l amendments. Complete r e v i s i o n of Indian Act and Consolidated Revenue and Audit Act. Amend CMHC Act. 151 Throne Speech Year: Date: 1951 October 9, 1951 Hansard Volume: Page: 21 V 1-2 A. Main Points Primary reason f o r c a l l i n g the session was to pass l e g i s l a t i o n f o r a system of Old Age S e c u r i t y payments to those over 70 years, with no means t e s t , and to e s t a b l i s h a fund f o r such payments. Int e r n a t i o n a l s e c u r i t y furthered by support f o r Korean e f f o r t and f o r the newly integrated NATO f o r c e . I n f l a t i o n i s a problem with i n t e r n a t i o n a l sources. Conference between the PM and the U.S. government on the St. Lawrence p r o j e c t . B. Urban and Regional References An agency to be formed to operate Seaway. Commission to study costs and benefits of the proposed South Saskatchewan River Development. Construction under way on Canso causeway with the co-operation of the Nova Sco t i a government. C. L e g i s l a t i o n Promised Old Age s e c u r i t y l e g i s l a t i o n . Combines l e g i s l a t i o n . Agency to operate the Seaway. As a r e s u l t of the Royal commission report on transport--amendments to the Railways Act, CN-Cp Act, Maritime Freight Rates A c t , Bridge subsidy to be implemented f o r railway t r a f f i c through northern Ontario. As a r e s u l t of the Royal Commission on the a r t s : a b i l l to deal with radio and TV broadcasting and the fi n a n c i n g of the CBC. B i l l s to e s t a b l i s h an a g r i c u l t u r a l products board, Canada Land Survey, and to r a t i f y a f i n a n c i a l agreement with the U.K. 152 Throne Speech Year: Date: 1952 February 28, 1951 Hansard Volume: Page: 21 VI 1-2 A. Main Points Korea s t i l l a problem, but NATO i s strong and a Japanese peace t r e a t y has been signed. Colombo Plan to be expanded. The economy i s "very buoyant." Employment i s "generally speaking at a high l e v e l . " I n f l a t i o n a r y pressures continue to be strong. Foot and Mouth Disease has borken out i n Saskatchewan. The I n t e r n a t i o n a l J o i n t Commission w i l l consider a Canadian proposal regarding the St. Lawrence Seaway and Power development. B. Urban and Regional References CN l i n e to be constructed to l i n k Terrace to Kitimat. Canadian proposal to b u i l d St. Lawrence Seaway to go before the IJC. C. L e g i s l a t i o n Promised Further c o n t r i b u t i o n s to the Colombo Plan. CN l i n e from Terrace to K i t i m a t . Approve tax rental agreements. Complete r e v i s i o n of Criminal Code. Proposal f o r a National L i b r a r y . L e g i s l a t i o n concerning trademarks. 153 Throne Speech Hansard Volume: Page: Year: Date: 1952 November 20, 1952 21 VII 1-2 A. Main Points I n t e r n a t i o n a l - - s i g n s of lessening t e n s i o n , but Korean War continues. Europe i s more s e l f - s u f f i c i e n t . Queen E l i z a b e t h to be crowned i n June, 1953. Domestic s i t u a t i o n - - r e c o r d grain crop. Economic conditions favourable. External trade i s at a high l e v e l and i n f l a t i o n a r y pressures have eased. A new wheat agreement i s i n the negotiating stage. IJC has approved plans f o r the St. Lawrence Seaway. Government w i l l provide measures to e l i m i n a t e d i s c r i m i n a t i o n i n contracts and i n the p u b l i c s e r v i c e . The system of national health grants to the provinces has been a success. B. Urban and Regional References St. Lawrence Seaway has been approved. Improvements w i l l be made to Vancouver harbour. Ferry services w i l l be provided by the government from Nova S c o t i a to Maine and Newfoundland. A causeway to be b u i l t across the Canso S t r a i t s . Government co-operating with the provinces i n water resources. Measures to widen scope of NHA. C. L e g i s l a t i o n Promised Continue Emergency Powers Act. Improvements to harbours, f e r r i e s , Canso causeway. Co-operation with provinces i n water resources. Extend national health grants. Amend the NHA. TV s e r v i c e to Winnipeg, Vancouver, and H a l i f a x . 154 Throne Speech Year: Date: 1953 November 12, 1953 Hansard Volume: Page: 22 I 4-5 A. Main Points I n t e r n a t i o n a l - - a r m i s t i c e signed i n Korea. UN successful i n Korean c o n f l i c t , NATO successful i n Europe. External trade at record l e v e l s , but d o l l a r shortage remain a problem. External trade a major o b j e c t i v e f o r peace. The economy enjoys p r o s p e r i t y , but there are "sectoral problems." Housing i n need of f u r t h e r assistance. Northern Canada of in c r e a s i n g importance. New York State Power Commission has granted the St. Lawrence Seaway a power l i c e n s e . Further steps i n welfare are needed to a s s i s t p a r t i a l l y and t o t a l l y disabled i n co-operation with provinces. B. Urban and Regional References Housing—more houses being b u i l t than ever before, but NHA to be amended to increase and broaden the supply of mortgages, e s p e c i a l l y f o r those on "moderate" incomes. Increasing importance of Northern Canada. Change i n d i r e c t i o n f o r Department of Resources and Development. Plan to define the r e s p o n s i b i l i t y of government to the Yukon and Northwest T e r r i t o r i e s , i n c l u d i n g the A r c t i c Archipelago and the welfare of Eskimos. C. L e g i s l a t i o n Promised Amend Colombo Plan programme to improve i n t e r n a t i o n a l r e l i e f and r e h a b i l i t a t i o n . Increase and broaden the mortgage money supply. Changes i n Department of Resources and Development. Amend P i p e l i n e s Act to extend a u t h o r i t y of Board of Transport Commissioners over a l l i n t e r n a t i o n a l and i n t e r p r o v i n c i a l p i p e l i n e s . Federal and p r o v i n c i a l assistance to disabled. Revise Bank Act and the Criminal Code. Amend the Grants to M u n i c i p a l i t i e s Act. 155 Throne Speech Year: Date: 1955 January 7, 1955 Hansard Volume: Page: 22 II 2-3 A. Main Points I n t e r n a t i o n a l - - l e s s t e n s i o n , but war more awesome with the development of new weapons. C o l l e c t i v e s e c u r i t y important—need f o r un i t y i n NATO. Support f o r UN. Canada p a r t i c i p a t i n g i n In t e r n a t i o n a l Control Commissions i n Indo-China. Record house c o n s t r u c t i o n . Arrangements completed f o r the enlargement of navigational f a c i l i t i e s and the development of hydro power f a c i l i t i e s on the St. Lawrence. Domestic--storms i n Ontario and Nova S c o t i a have wrought damage and loss of l i f e . The economy i s "generally healthy." Poor wheat crop, and some regional and seasonal unemployment. B. Urban and Regional References Arrangements made f o r enlarged navigational f a c i l i t i e s and the development of hydro power f a c i l i t i e s on the St. Lawrence. Nova Scotia—Newfoundland and Nova S c o t i a — M a i n e f e r r i e s to be i n operation soon. Reference to regional and seasonal unemployment. Record house construction i n 1954 due p a r t l y to the NHA (1954) which allowed banks i n t o the mortgage f i e l d . Government w i l l make the secti o n on home improvement loans operative on February 1. Consolidate l e g i s l a t i o n a f f e c t i n g CNR. "Amendments to the E l e c t r i c i t y and F l u i d Exportation Act and a measure to control works which a f f e c t the normal flow of r i v e r s which cross the i n t e r n a t i o n a l boundary w i l l be proposed f o r the purpose of ensuring that natural resources are developed i n the best i n t e r e s t s of the Canadian p u b l i c . " p.3. Loans to fishermen s i m i l a r to those provided under Farm Improvement Loans Act. "A j o i n t committee of both house w i l l be proposed to examine, i n the l i g h t of the Municipal Grants Act and po s s i b l e amendments the r e t o , the f i n a n c i a l and other r e l a t i o n s h i p s of the government and the federal d i s t r i c t commission with the c i t y of Ottawa and neighbouring municipal-i t i e s . " p. 3. Amend Municipal Grants Act. 156 C. L e g i s l a t i o n Promised Removal of Ripple Rock Aid to storm v i c t i m s , Nova Sco t i a and Ontario. Programme f o r the t o t a l l y d i s a b l e d . Amend Unemployment Insurance Act to improve seasonal b e n e f i t s . Amend E l e c t r i c i t y and F l u i d Exportation Act and a measure to control works a f f e c t i n g the flow of r i v e r s crossing the i n t e r n a t i o n a l boundary. Amend War Veterans Act, B l i n d Persons Act, National Defence Act, replace Meat and Canned Foods Act, amend Municipal Grants Act. Throne Speech Year: Date: Hansard Volume: Page: 1956 January 10, 1956 22 I I I 2-3 A. Main Points International--some developments i n the past year i n the array of Canada's external concerns: Commonwealth, Colombo Plan, NATO, and UN. Royal commissions to be appointed on Radio and TV, and Canada's Economic Prospects. Economy--1955 "the most productive i n our nation's h i s t o r y . " High employment, harvest, housing record, trade. General p r o s p e r i t y , although oversupply of wheat i s a problem. Changes i n the Unemployment Insurance Act have had the desired e f f e c t , e s p e c i a l l y i n coping with seasonal unemployment. The government has sought to do pu b l i c works i n the winter time. Forthcoming f e d e r a l - p r o v i n c i a l conference: f i s c a l agreements and formation of a health insurance committee. Urban renewal important. B. Urban and Regional References Record housing construction i n 1955. "The rapid growth of our centres of population has been a spectacular feature of our national development since the l a s t war, and i n that growth wide use has been made of the National Housing Act by our c i t i z e n s , p a r t i c u l a r l y i n suburban areas. One amendment now to be proposed i s designed to increase assistance to encourage 157 redevelopment of older sections of our c i t i e s to t h e i r best use." p.3. Last year the home improvement secti o n of NHA proclaimed. I t has been useful and w i l l be amended to increase the loans a v a i l a b l e . A j o i n t committee to be es t a b l i s h e d to review the a c t i v i t i e s of the federal d i s t r i c t commission i n developing the national c a p i t a l . Amend TCH Act. C. L e g i s l a t i o n Promised Guarantees f o r bank loans secured by unsold wheat. The treasury to bear the costs of gra i n storage from August 1 as "carrying costs on abnormal carryover." Assistance with provinces f o r unemployed not covered by Unemployment Insurance. Co-operation with Ontario i n constructing p i p e l i n e across Northern Ontario to be leased to TransCanada P i p e l i n e Ltd. Amend TCH Act to accelerate completion. Amend NHA. Extend I n d u s t r i a l Development Bank: increase loans a v a i l a b l e through Canadian Farm Loan Board, P r a i r i e Farm Improvement Loans Act. L e g i s l a t i o n guaranteeing equal pay f o r equal work. Revise RCMP Act, Succession Duty Act. Throne Speech Year: 1956 Date: November 26, 1956 Hansard Volume: 22 IV (Special Section) Page 1 A. Main Points "You have been summoned at t h i s time because of the serious i n t e r n a t i o n a l s i t u a t i o n a r i s i n g out of h o s t i l i t i e s i n the Middle East and the events i n Hungary" p . l . B. Urban and Regional References N i l . C. L e g i s l a t i o n Promised Appropriations to e s t a b l i s h the emergency force f o r the Middle East and to provide r e l i e f to victims of "recent t r a g i c events i n Hungary." 158 Throne Speech Year: Date: 1957 January 8, 1957 Hansard Volume: Page: 22 V 1-2 A. Main Points I n t e r n a t i o n a l - - i n s t a b i l i t y i n Middle East and Eastern Europe. B e l i e f i n need to maintain u n i t y i n Commonwealth and NATO. Development of a non-mi l i t a r y branch of NATO i s progressing. Canada p a r t i c i p a t i n g i n peacekeeping i n Suez. The Hungarian r e v o l u t i o n repressed. Canada condemns t h i s a c t i o n and welcomes refugees. Domestic s i t u a t i o n - - " e x c e l l e n t progress i s being made i n our national economic development." p.2. Good crops. Some s t r a i n s on the supply of labour and m a t e r i a l s . Preliminary report of the royal commission on economic prospects to be tabled. CPR s t r i k e i s a cause of concern. Need f o r increased assistance to education. B. Urban and Regional References "Rapid s t r i d e s are being made i n opening up and u t i l i z i n g our natural resources and i n our i n d u s t r i a l and urban growth." p.2. E s t a b l i s h a j o i n t committee on e f f i c i e n t a g r i c u l t u r a l land use. "An amendment extending the scope of the Municipal Grants Act w i l l be l a i d before you to authorize the payment of grants i n l i e u of taxes on federal property i n a l l m u n i c i p a l i t i e s where such property receives the normal municipal s e r v i c e s . " p.2. Revision Federal D i s t r i c t Commission Act. C. L e g i s l a t i o n Promised Canada Counc i l , Grant to Canada Council to d i s t r i b u t e to Canadian U n i v e r s i t i e s f o r c a p i t a l works. Grant to National Conference of Canadian U n i v e r s i t i e s to be divided up by i t among a l l recognized i n s t i t u t i o n s . Amendments to extend the scope of the Municipal Grants Act. Amendments to the Merchant Seamen Compensation Act, North P a c i f i c Seal Fur Convention, Sockeye Salmon Commission Act. Revise narcotics law. Continue Canadian Wheat Board as sole sales agent f o r Canadian g r a i n . Revise Federal D i s t r i c t Commission Act. 159 Throne Speech Year: Date: 1957 October 14, 1957 Hansard Volume: Page: 23 I 5-6 A. Main Points Speech read by the Queen. "I am proud to contemplate the great heritage of this nation — the minerals, the for e s t s , the lands, the waters, the sources of power and energy which f i r e your ever-growing industries." p.5. Canada must also play her part in international a f f a i r s . Commonwealth, Colombo Plan contributions have been great. Active participation in NATO is important. Support for the UN. The government w i l l meet with the provinces next month to discuss f i s c a l relations. Measures to be brought forward to increase old age security pensions, veterans' allowances and to ensure agricultural price s t a b i l i t y . Problem of i n a b i l i t y to market grain to be eased by cash advance programmes. Safeguard the l i v i n g resources of the sea. "My ministers believe that a national development policy carried out in co-operation with the provinces, and in the t e r r i t o r i e s , i s needed to enable a l l regions of Canada to share in the benefits to be realized in developing the resources of this great nation. It i s their intention to propose to you from time to time programs and projects to implement this policy." p.6. Assistance to be granted to some Atlantic projects, development of the South Saskatchewan River, and the Columbia River development. B. Urban and Regional References. Problems in prairie agriculture. National development policy. "As an immediate sta r t upon a program of more extensive develop-ment in the Atlantic provinces, you w i l l be asked to authorize, in j o i n t action with the provincial governments, the creation of f a c i l i t i e s for the production and transmission of cheaper e l e c t r i c power in these provinces. You w i l l also be asked to provide assistance in financing the Beechwood project which has been under construction in New Bruns-wick." p. 6. New discussions with Saskatchewan government concerning the South Saskatchewan River, a settlement to be sought to international problems 160 d e l a y i n g development of the Columbia R i v e r . B i l l s r e l a t i n g t o c e r t a i n r a i l w a y branch l i n e s . C. L e g i s l a t i o n Promised M a i n t a i n modern defence f o r c e s . I n c r e a s e o l d age p e n s i o n s , i n c r e a s e war v e t e r a n s ' a l l o w a n c e s , p r i c e s t a b i l i t y f o r a g r i c u l t u r a l p r o d u c t s , cash advances to farmers f o r g r a i n s t o r e d on f a r m s . Measures t o p r o t e c t the l i v i n g r e s o u r c e s o f the s e a . Programs and p r o j e c t s i n a n a t i o n a l development p o l i c y . A s s i s t a n c e t o A t l a n t i c power p r o d u c t i o n and t r a n s m i s s i o n . Annual v a c a t i o n s w i t h pay f o r those i n i n d u s t r i e s under f e d e r a l j u r i s d i c t i o n , b i l l s r e l a t i n g t o branch l i n e s . 161 Throne Speech Year: Date: 1958 May 12, 1958 Hansard Volume: Page: 24 I 5-6 A. Main Points Succession of Commonwealth v i s i t s and conferences. Efforts needed to expand trade. Government could not avert Railway firemen's s t r i k e . Government w i l l introduce a B i l l of Rights. Major programme of public works to be undertaken with the provinces, especially a i r p o r t s , airways harbours, rivers and public . buildings. Railway to Great Slave Lake. Roads to the Yukon and Northwest T e r r i t o r i e s . Research on the development of the Arctic Islands for minerals. Construction of the South Saskatchewan Dam to be begun. The time is right for public investment, but we must guard against i n f l a t i o n . New arrangements to give financial security to provinces and muni ci pali t i e s . A small business section in the administrative machinery of aovernment. B. Urban and Regional References "A vigorous programme of housebuilding, which has already proven to be a strong feature of our economy and which constitutes the best opportunity for increased work in meeting the needs of our people. My ministers are ready to co-operate f u l l y . . . in further projects to slum clearance and urban redevelopment to improve the c i t i e s and towns of Canada." p.5. Increase in public funds available under NHA. Railroad to Great Slave Lake, roads to Yukon and NWT. Research on Arctic Islands minerals. Start on S. Saskatchewan River Dam. Lake-head Harbour Commission to handle new demands of St. Lawrence Seaway. C. Legislation Promised B i l l of Rights. Increase aid under NHA. Transportation and resource development measures (see. above). National Capital Act, National Parole Board, broadcasting regula-tory agency. Simultaneous translation in the" Commons. Amend Prairie Farm Assistance and Canadian Farm Loan Acts. Simultaneous translation in the Commons. Amend Prairie Farm Assistance and Canadian Farm Loan Acts. Amend Transport Act, National Parks Act, Hospital Insurance and Diagnostic Services Act. 163 Throne Speech Year: Date: 1959 January 15, 1959 Hansard Volume: Page: 24 II 2-3 A. Main Points International--Commonwealth v i s i t s and conferences. Some progress on disarmament. Need to protect outer space from m i l i t a r y use. NATO strengthened. Defence production arrangements with U.S. Economic assistance to underdeveloped countries needed. Domestic s i t u a t i o n — i m p r o v e unemployment through p u b l i c works, e s p e c i a l l y winter works projects f o r m u n i c i p a l i t i e s , "evidence of recovery from r e c e s s i o n . " "emphasis on national development." National energy board. Review of Veterans' Land Act regarding a g r i c u l t u r a l methods. Extend f e d e r a l - p r o v i n c i a l tax-sharing arrangements. Need f o r continuing review of f i s c a l r e l a t i o n s . B i l l of r i g h t s . B. Urban and Regional References. "emphasis on National development." Wise use of resources needed to increase standard of l i v i n g . National energy board. A l l - t i m e record i n house con s t r u c t i o n . Further amendments to encourage e.itry of pri v a t e funds i n t o mortgage market. More money f o r TCH. C. L e g i s l a t i o n Promised Approve increases i n i n t e r n a t i o n a l development bank and IMF. Crop insurance programme with provinces. B i l l of Rights. National Energy Board. Amend NHA, Export Credits Insurance A c t , Canada Shipping Act, etc . "Action to a l l e v i a t e the e f f e c t s of a horizontal increase i n f r e i g h t r a t e s . " 164 Throne Speech Hansard Volume: Page: Year: Date: 1960 January 14, 1960 24 I I I 1-3 A. Main Points Commonwealth " i n a state of rap i d c o n s t i t u t i o n a l development." NATO and other organizations helping to bring about "a l a s t i n g peace. . . strongest a s p i r a t i o n of Canadians." Need to protect outer space. Economic and technical aid "continues to be needed." New developments i n external trade. Canada's economic p o s i t i o n " g r e a t l y improved during 1959." Prospects "favourable." P o l i c y of national development i s having i t s e f f e c t . Securing income of farmers i s most important. B. Urban and Regional References "national development program has stimulated a large increase i n northern e x p l o r a t i o n . " p.2. Oil and gas found i n Yukon. Extend TCH Act. Amend NHA. Harbour commissions f o r Nanaimo and Oshawa. C. L e g i s l a t i o n Promised Commonwealth s c h o l a r s h i p s , Columbia River t r e a t y , new o i l and gas r e g u l a t i o n s , emergency l e g i s l a t i o n f o r farm assistance. B i l l of r i g h t s , universal retirement of judges at age 75, improve status of Yukon and NWT. Amend Combines I n v e s t i g a t i o n ADt to improve i t and to protect small f i r m s . Extend F e d e r a l - p r o v i n c i a l Tax-Sharing Act. U n i v e r s i t y grants, franchise f o r Indians, Department of Forestry, extend TCH Act, amend NHA. 165 Throne Speech Year: Date: 1960 November 17, 1960 Hansard Volume: Page: 24 VI 2-4 A. Main Points I n t e r n a t i o n a l - - t e n s i o n continues, but Canada consoled by Common-wealth, NATO, and UN acceptance of Canadian suggestion of food bank. Progress i n negotiations with provinces on p a t r i a t i n g the c o n s t i t u t i o n , and on f i s c a l arrangements. Economy—external trade at high l e v e l s , e s p e c i a l l y with U.K. Employment high, but "necessity of continuing expansion of the national economy at a pace s u f f i c i e n t to provide jobs f o r the record numbers who are now entering the labour f o r c e , as well as jobs f o r those who are displaced by automation and other technological changes." p.2. Therefore a need to stimulate employment and f u r t h e r national development. W i l l e s t a b l i s h Agricultural and Rural Development Agency (ARDA) as part of national a g r i c u l t u r a l program. National development p r o j e c t s : Columbia water power, CN l i n e to Mattagami Lake, P.Q., funds to survey Great Slave Lake R a i l r o a d , Winni-peg Floodway, Thames River development (Ont.). B. Urban and Regional References Special winter housing program. Modify terms of housing and home improvement loans. Amend NHA f o r mortgage lending to enable partnerships to buy and rent e x i s t i n g housing, loand f o r student housing, and loans f o r sewage treatment. Comprehensive national program of r u r a l r e h a b i l i t a t i o n and devel-opment. C. L e g i s l a t i o n Promised A measure to increase employment—expand assistance to municipal-i t i e s f o r winter works. Continue federal grants f o r h o s p i t a l construction f o r f i v e years a f t e r March, 1963, expiry date. P r o d u c t i v i t y c o u n c i l . Loans f o r small businesses. National development projects (see Above) Revise Customs T a r i f f Board. Supplementary budget f e f o r e Christmas. Measures concerning Canadian ownership and concerning insurance companies. 166 Throne Speech Year: Date: 1962 January 18, 1962 Hansard Volume: Page: 24 V 1-3 A. Main Points International--some grounds f o r optimism, although some pressure on B e r l i n . International peacekeeping, disarmament progresses, Commonwealth growing. Food bank a success. Increased Canadian diploma-t i c representation: Commonwealth, French A f r i c a , L a t i n America and Asi a . Support f o r NATO. Concern over Canada's i n t e r e s t i n the l i g h t of B r i t i s h negotiations with EEC. B e l i e f i n trade. Progress on BNA r e v i s i o n formula. Economy—previous government p o l i c i e s have had t h e i r e f f e c t . Improved employment. Government examining r e s u l t s of Resources f o r Tomorrow Conference Example of benefi t s of intergovernmental co-operation. Provinces to be i n v i t e d to consider l i n k i n g power sources. Farm and f i s h prices important. B. Urban and Regional References Resources f o r Tomorrow conference i n Montreal was a success. National development p r o j e c t s : Railway from Matane to St. Anne des Monts, P.Q., Gaspe r a i l w a y , and Winnipeg Floodway. C. L e g i s l a t i o n Promised Contributions f o r food bank and to external a i d . Give e f f e c t to recommendations of royal commission on p u b l i c a -t i o n s . Require reports by business and labour on for e i g n c o n t r o l . Independent e l e c t o r a l boundaries commission. Caspe r a i l r o a d , Winnipeg Floodway, increased winter works. Broaden Small Business Loans Act, Amend Farm inprovement Loans Act and Fisheries Improvement Loans Act. Acreage payments. Pension plan and other s o c i a l welfare l e g i s l a t i o n . National Welfare C o u n c i l , f e r r y from Sydney to Argen t i a , N f l d . 167 Throne Speech Hansard Volume: Page: Year: Date: 1962-63 September 27, 1962 25 I 7-9 A. Main Points International--propose conference on i n t e r n a t i o n a l trade ( i t s changing nature). Canada playing e f f e c t i v e role--NAT0, Germany, disarmement. S a t i s f a c t i o n with FAO. F e d e r a l - p r o v i n c i a l r e l a t i o n s — a g r e e m e n t on p a t r i a t i o n of c o n s t i -t u t i o n , f l a g and "other national symbols" are the current issues. Domestic a f f a i r s — 2 0 0 , 0 0 0 new jobs i n the past year. Objective i s one m i l l i o n i n the next f i v e years. Foreign exchenge problems. New exchange r a t e . Need to "maintain a climate i n Canada hospitable to f o r e i g n investment" p.8. Propose national economic development board to comment on economic p o l i c i e s and recommend p r o j e c t s . O b j e c t i v e — b a l a n c e d budget and governmental e f f i c i e n c y (Glassco) Royal commission on taxation appointed. F i s c a l measures to: create b e t t e r employment o p p o r t u n i t i e s , maintain high rate of growth, strengthen balance of payments and main-t a i n p r i c e s t a b i l i t y . E f f o r t to stimulate external trade. B. Urban and Regional References Divide NWT i n two and make them more self - g o v e r n i n g . National economic development board. A t l a n t i c Development Board--"to advise on measures and projects that w i l l promote the economic development of the A t l a n t i c region of Canada." p.8. ARDA going w e l l . The national o i l p o l i c y , two years o l d , has increased production and s a l e s . Studies on a national power g r i d continue. Royal commission recommendations on the "important r o l e of t r a n -s p o r t a t i o n i n the Canadian economy." p.9. "Changes to reduce h o r i z o n t a l f r e i g h t rate increases" which "have borne so h e a v i l y . . . on c e r t a i n areas." p.9. 168 C. L e g i s l a t i o n Promised Canadian c o n t r i b u t i o n to FAO Resolution regarding p a t r i a t i o n of BNA Act. Divide NWT i n two. E f f e c t to royal commission on p u b l i c a t i o n s . Independent e l e c t o r a l boundaries commission. National Economic Development Board. Reintroduce r e s o l u t i o n s to provide f o r growth: production incen-t i v e s , deduction of e x p l o r a t i o n expenses, c r e d i t s f o r p r o v i n c i a l logging taxes, tax measure to encourage research. A t l a n t i c Development Board. Amend IDB Act. Measure to provide feed grain i n Eastern Canada and B.C. Columbia River t r e a t y . Throne Speech Year: 1963 Date: May 16, 1963 Hansard Volume: 26 I Page: 6-7 A. Main Points These are troubled times r e q u i r i n g "courage and perseverance" Progress i s the work of a l l ; government's r o l e to provide leadership. Canada a nation of diverse c u l t u r e s , e s p e c i a l l y English and French. The government i s "determined that the partnership s h a l l be f u l l y equal." p.6. B & B Commission. Co-operative federalism. Canadian fo r e i g n objectives those of the Un Charter. But we must maintain c o l l e c t i v e s e c u r i t y e s p e c i a l l y through NATO. Our forces must have "modern weapons." Discussions with Kennedy and U.K. P.M. w i l l enhance the value of the Commonwealth. Importance of world trade f o r peace and domestic expansion. F i s c a l and monetary p o l i c y w i l l r e l a t e to unemployment through encouragement of i n d u s t r i a l expansion. W i l l i n i t i a t e system of two mini s t e r s i n charge of a g r i c u l t u r e - -one f o r east and one f o r west. B. Urban and Regional References. E s t a b l i s h Department of Industry with Area Development Agency to work with provinces f o r development where a "special t h r u s t f o r develop-ment i s needed" due to unemployment, p.7. W i l l amend ADB Act to provide i t with a c a p i t a l fund. E s t a b l i s h Municipal Development and Loan Board to give loans and 169 grants f o r projects to increase employment and improve s e r v i c e s . Amend NHA Canadian Development Corporation. Economic Council of Canada. Columbia t r e a t y . A d d i t i o n a l assistance f o r TCH. C. L e g i s l a t i o n Promised Adjustments i n manpower l e g i s l a t i o n . Department of i n d u s t r y — c o n s u l t a t i o n , stimulus and assistance. --contain Area Development Agency. Municipal development board, Canadian Development Corp., ECC, Department of A g r i c u l t u r e Act, Pension plan. Extend payments to r a i l r o a d s pending long-term s o l u t i o n s to rate problems. Throne Speech Year: 1964 Date: February 18, 1964 Hansard Volume: 26 II Page: 1-2 A. Main Points I n t e r n a t i o n a l - - t r a d e and t a r i f f negotiations proceeding. Disarmament t a l k s under way, mood of r e c o n c i l i a t i o n . Economy—"heartening expansion" of the economy. Propose a v a r i e t y of measures to increase employment and r a i s e the standard of l i v i n g . National f i s h e r i e s development programme. Reorganization of government. B. Urban and Regional References M i n i s t r y of Rural Development C. L e g i s l a t i o n Promised J o i n t ownership of Roosevelt-Campobello Park. Columbia Treaty. Comprehensive measures to reform railways. 170 Minimum wage law. Pension plan. Student loan plan. F e d e r a l - P r o v i n c i a l f i s c a l e q u a l i z a t i o n . M i n i s t r y of Rural Development. 12 Mile l i m i t , strengthen Canadian p u b l i c a t i o n s , c l a r i f y c i t i z e n s h i p r i g h t s , government reor g a n i z a t i o n of treasury f u n c t i o n s . Throne Speech Year: 1965 Date: A p r i l 5, 1965 Hansard Volume: 26 I I I Page: 1-3 A. Main Points International--grounds f o r concern. Vietnam. Un under pressure. Canada w i l l do i t s part through external a i d , UN support, peacekeeping, disarmament support. Commonwealth ties--new s e c r e t a r i a t . Close t i e s with U.S. Domestic s i t u a t i o n — u n i t y through national programmes and i n t e r -governmental c o n s u l t a t i o n . Anthems, r e p a t r i a t i o n of c o n s t i t u t i o n . Economy—high rate of growth. But poverty and a d v e r s i t y are drag on the economy. Need f o r broad programme f o r using resources: regional development, reemployment and r e t r a i n i n g , redevelopment of r u r a l areas, assistance to the needy, urban renewal, new opportunities f o r young Canadians. To be co-ordinated with the provinces under the Prime Mi n i s t e r ' s O f f i c e . Conference with the provinces on medicare. A g r i c u l t u r e — n a t i o n a l p o l i c i e s f o r farm products, beginning with National Dairy Commission. Royal commission to study f e a s a b i l i t y and d e s i r a b i l i t y of an ombudsman. B. Urban and Regional References A broad programme to t a c k l e "poverty and a d v e r s i t y " to include urban renewal, regional development, r u r a l development to be co-ordinated by Prime Mi n i s t e r ' s O f f i c e . Fund f o r Rural Economic Development (FRED); amend ARDA l e g i s l a -t i o n . Amend NHA and ADB Act. Expand ADA. 171 C. L e g i s l a t i o n Promised Auto pact. "0 Canada" national anthem. "Queen" the Royal anthem. P a t r i a t e consti t u t i o n . Expand ADA. New measures to re-employ workers displaced by automation. Loans and grants f o r vocational t r a i n i n g . FRED, amend ARDA, CYC. Canada Assistance Plan. Special a s s i s t -ance to family farms. National p o l i c y f o r farm products. Encourage feed grain transport to Eastern Canada and B.C. Veterans' measures, reform of c i t i z e n s h i p and immigration l e g i s -l a t i o n . Measure to encourage Canadian p u b l i c a t i o n s and Canadian broad-c a s t i n g . Film Development Corporation. Science Council of Canada. Canada Development Corporation. C o l l e c t i v e bargaining i n the pu b l i c s e r v i c e . Revise railway l e g i s l a t i o n comprehensively. Amend NHA and ADB Act. Throne Speech Year: 1966 A. Main Points I n t e r n a t i o n a l - - n a t i o n a l achievement depends on world peace and pro s p e r i t y . Support f o r UN, Commonwealth, NATO, etc. Strengthen integrated NATO fo r c e . Expand fo r e i g h a i d . Domestic s i t u a t i o n — b r o a d e n i n g b i l i n g u a l p u b l i c s e r v i c e , especi-a l l y i n the national c a p i t a l . F e d e r a l - p r o v i n c i a l arrangements very i m p o r t a n t — t a x s t r u c t u r e committee almost ready to report. Government reorganization under way—purpose to bring c l o s e r and better co-operation i n f i e l d s of manpower, r u r a l development, energy and resources, Indians and Eskimos, northern development, business laws, crime and co r r e c t i o n s . Prosperity unprecedented. Employment, a g r i c u l t u r e and trade a l l i n very good s i t u a t i o n . Economic Council of Canada i n d i c a t e d opportunities and needs f o r sustained growth. Prices a problem. Manpower development and improvements i n p r o d u c t i v i t y very important. An i n d u s t r i a l technology programme i s under way. Important to r a i s e and safeguard farm"income. Date: Hansard Volume: Page: January 18, 1966 27 I 7-10 172 B. Urban and Regional References Re-organization of departments dealing with r u r a l development, northern a f f a i r s , energy and resources. Inflation—government w i l l continue to s t r e t c h out expenditures on construction i n areas where pressures are heavy on the construction i n d u s t r y . Fund f o r Rural Economic Development. Amend ARDA l e g i s l a t i o n , ADB Act, NHA. Extend period of TCH. C. L e g i s l a t i o n Promised Canadian p a r t i c i p a t i o n i n Asia Development Bank. Amend National Defense Act. Approve f e d e r a l - p r o v i n c i a l f i s c a l arrangements f o r 1967. Anthems. Reorganize departments. Encourage research and development through tax i n c e n t i v e s . E s t a b l i s h Science Council. Co-operation with provinces i n worker t r a i n i n g . FRED. Measure f o r purchase and resale of uneconomic farms. Canadian Dairy Commission. Cash advances f o r Grain. Feed g r a i n . Auto parts agreement. CDC. Canada Assistance Plan. CYC. Medicare. Health Resources Fund. Scholarships and b u r s a r i e s . Amend Canada Student Loan Act. Expand u n i v e r s i t y grants; c a l l f e d e r a l - p r o v i n c i a l conference on u n i v e r s i t y assistance. Captial punishment d e c i s i o n . Films, National Arts Centre, c i t i z e n s h i p . Amend ADA Incentives Act, ADB Act. NHA. Throne Speech Year: 1967 Date: May 8, 1967 Hansard Volume: 27 II Page: 1-6 A. Main Points Continuance of new r o l e f o r governor general of "representing the Canadian people i n a broad range of t h e i r a c t i v i t i e s and a t t i t u d e s . " p . l . Tribute to Fathers of Confederation f o r t h e i r c o n s t i t u t i o n a l framework. "They b u i l t according to a federal plan because they knew that u n i t y with c u l t u r a l and regional d i v e r s i t y could be harnessed to a p o s i t i v e and enriching r o l e i n no other way." p . l . t . 173 Need to improve f e d e r a l - p r o v i n c i a l r e l a t i o n s w i t h i n the e x i s t i n g sound s t r u c t u r e . The main struggle f a c i n g Canadians i s against " s o c i a l i n j u s t i c e , against c u l t u r a l mediocrity, against s p i r i t u a l stagnation and against a l l forms of i n t o l e r a n c e . " p.2. We must "exercise wisdom and r e s t r a i n t in our demands upon one another." p.2. Employment i s higher than ever before. The government w i l l introduce measures to promote the crea t i o n of an environment f o r i n d u s t r i a l development i n the "broad i n t e r e s t s " of the country. Must a s s i s t designated areas where human resources are u n d e r - u t i l i z e d . The government w i l l table a White Paper on foreign ownership. Main external o b j e c t i v e i s the p u r s u i t of peace. Vietnam d i s t u r b i n g . Disarmament, NATO, U.N., Kennedy Round. W i l l expand external a i d . New challenges posed by urban development. Government evolving towards a national a g r i c u l t u r a l p o l i c y . B. Urban and Regional References "The concept of Confederation was a c a l l to occupy and develop h a l f a continent." p.2. Special measures i n designated areas are needed. Broaden scope of Area Development Incentives programme and increase i t s funds. Continuing encouragement to ADB. "Federal-provincial co-operation through the Fund f o r Rural Economic Development w i l l permit a major e f f o r t f o r regional planning f o r p a r t i c u l a r areas i n Canada." p.3. Projects i n N.E. New Brunswick, Mactaquac, N.B. and the Interlake area of Manitoba w i l l provide the government with "tools of knowledge and experience f o r the b e n e f i t of other regions throughout the country." Assistance to the Cape Breton coal i n d u s t r y . " P a r t i c u l a r a t t e n t i o n w i l l be given to developing a climate of co-operation among governments, u n i v e r s i t i e s , and i n d u s t r i e s , that w i l l provide e f f e c t i v e s o l u t i o n s f o r the great problems associated with our environment: with h e a l t h , t r a n s p o r t a t i o n , energy, communications, housing and urban renewal, food productions and many others that have p a r t i c u l a r relevance to this- country." p.4. National a g r i c u l t u r e p o l i c y . "The changing needs of r u r a l communities also deserve special a t t e n t i o n . " p.4. E f f o r t s to combat p o l l u t i o n . Canada Water Act. ". . . new incentives f o r industry and regional economic planning intended to strengthen the economy of the North." p.5. " I t i s e s s e n t i a l that the control and development of our environ-ment keeps pace. We have b u i l t towns and c i t i e s , canals and r a i l r o a d s , highways and other great works of construction at an unprecedented pace. But we have too often i n the past made beauty the poor s i s t e r of material gain and careless workmanship the pri c e of easy p r o f i t . We must lose no •more time i n making ugliness i n our environment as unwelcome as f i n a n c i a l losses i n our balance sheets. 174 One of the great challenges of the century w i l l be our capacity to plan our urban development so that Canadians i n the future w i l l continue to enjoy the b e n e f i t s of l i v i n g i n health and harmony with t h e i r surroundings. To t h i s end, the government intends to propose to the provinces that a s p e c i a l study of urban development be undertaken in close c o n s u l t a t i o n with a l l the a u t h o r i t i e s concerned, which would be a v a i l a b l e to the f e d e r a l , p r o v i n c i a l and municipal governments and to the p u b l i c g e n e r a l l y ; so that a l l Canadians w i l l be aware fo the problems which l i e ahead and so that a l l governments at a l l 1-evels, w i l l have the best possible advice to a s s i s t them i n t h e i r own planning and in t h e i r respective c o n t r i b u t i o n s to t h i s great problem." p.4. New housing programs commensurate with the challenges. Measures to promote co-munity development. C. L e g i s l a t i o n Promised Measure to a s s i s t Canadians moving to take up a new job. Canada Development Corporation. Canada Water Act. Cape Breton Coal measures. Community development measures. Increases i n external a i d . Revision of Immigration l e g i s l a t i o n . New broadcasting l e g i s l a t i o n . New Housing programmes. Loans to f i s h e r i e s and farm organizations f o r f a c i l i t i e s . P o l l u t i o n and conservation measures. Regional economic planning f o r the North. Divorce reform. Department of "Corporate and Consumer A f f a i r s . " New regulations governing s e c u r i t i e s . New measures r e q u i r i n g d i s c l o s u r e of corporate ownership. Throne Speech Year: 1968 A. Main Points Parliament meets amid great expectations--we must not t r y to do more than our i n t e l l e c t u a l and f i n a n c i a l resources can do w e l l . F i r s t p r i o r i t y — c l e a r up the business of the l a s t session. Government i s "deeply and i r r e v o c a b l y committed to the objectives of a j u s t society and a prosperous economy i n a peaceful world." p.5. Close connection between j u s t i c e and national u n i t y . Economic p o l i c i e s — o b j e c t i v e s the p u r s u i t of a prosperous economy and a f a i r d i s t r i b u t i o n of i t s proceeds. Reliance on natural resources no longer enough. Price l e v e l s are a problem. Date: Hansard Volume: Page: September 12, 1968 28 I 5-9 175 Need to reform Parliament. Must proceed by means of co-operation with other l e v e l s of government, "not only i n planning but i n implement-atio n as wel1." p.8. ". . . democracy today faces a d e c i s i v e challenge. . . . This challenge i s not abstract but a confrontation which you w i l l have to face by v i r t u e of your e l e c t i o n to t h i s Parliament." p.9. B. Urban and Regional References Measure r e l a t i n g to t r a n s p o r t a t i o n of a l l kinds. ". . . the establishment of a department charged with the objec-t i v e of ensuring that people i n a l l areas and regions of our country have as aqua! access as po s s i b l e to the opportunities of Canada's economic development." p.7. L e g i s l a t i o n r e l a t i n g to the encouragement of "manpower programs, regional improvements, domestic investment, export development, and resource a d m i n i s t r a t i o n . " p.7. "The growth of our population and the changes i n the nature of our mobile urban and i n d u s t r i a l s o c i e t y lend a new importance to conservation i n i t s t r a d i t i o n a l sense." p.8. Reform government to ". free Parliament so that i t can come to grips with d i f f i c u l t and pressing problems r e l a t i n g to youth, poverty, regional d i s p a r i t i e s , urban growth,'.individual w e l f a r e , and the a p p l i c -ation and encouragement of s c i e n t i f i c technology." p.8. C. L e g i s l a t i o n Promised O f f i c i a l Languages Act. Measures r e l a t i n g to Indians, c i t i z e n -s h i p , national symbols, t r a n s p o r t , communications, educational TV, Post O f f i c e , department of regional economic expansion, Kennedy Round, prices and incomes. Manpower programmes, regional improvements, domestic investment, export development and resource a d m i n i s t r a t i o n . Freshwater f i s h , Marketing Act, National Grains C o u n c i l , CDC, Federal Co-operatives Act, Export Development Corporation Act. Measures r e l a t i n g to conservation, information s e r v i c e s , an i n s t i t u t e f o r long-term research i n a l l aspects of modern s o c i e t y . 176 Throne Speech Year: 1969 Date: October 23, 1969 Hansard Volume: 28 II Page: 1-3 A. Main Points "Canada i s a fortunate country, blessed by nature and spared by war, but we are not immune from the e f f e c t s of c o n f l i c t s i n other parts of the globe." p . l . Continued support f o r UN, disarmament. Increased contact with governments of L a t i n America, A f r i c a and A s i a . Disapproval of the excesses of d i s s e n t i n other c o u n t r i e s , p a r t i c u l a r l y among the young. Need to extend the f r a n c h i s e by lowering the voting age to 18. The government attaches great importance to r e v i s i o n of the C o n s t i t u t i o n . The government e s t a b l i s h i n g programs to reduce regional inequal-i t y under l e g i s l a t i o n passed i n the l a s t parliament. A more equitable s o c i a l p o l i c y to a r i s e out of a forthcoming White Paper on s o c i a l s e c u r i t y . " i n f l a t i o n i s undoubtedly the most serious and the most d i f f i c u l t (economic problem) to c o n t r o l . I f we f a i l to c ontrol i t , the conse-quences could r a p i d l y prove d i s a s t r o u s , e s p e c i a l l y — b u t not o n l y — f o r those whose incomes are already low." p.2. "You w i l l also be c a l l e d upon to study proposals f o r tax reform aimed at a f a i r e r d i s t r i b u t i o n of the tax burden combined with favour-able conditions f o r growth i n the national economy."p.2. The marketing of grain i s a problem. The government w i l l continue to seek new markets, and w i l l introduce amendments to the Canada Grain Act to make our products more competitive. The government w i l l introduce a measure to allow i t to improve and preserve water resources, i n conjunction with the provinces. The A r c t i c w i l l soon undergo rap i d economic development. The government w i l l introduce measures to ensure control of p o l l u t i o n r e s u l t i n g from such development. Criminal Code amendments to be introduced to ensure the r i g h t to p r ivacy, and other i n d i v i d u a l r i g h t s . There w i l l also be a review of the laws governing f i n a n c i a l i n s t i t u t i o n s and measures to protect consumers. The government has undertaken a systematic review of longer term aspects of government p o l i c y , and w i l l present White Papers and other p o s i t i o n papers on external a f f a i r s , defence, tax reform, c i t i z e n -s h i p , s o c i a l s e c u r i t y , information and postal s e r v i c e s . 177 B. Urban and Regional References "During the l a s t s e s s i o n , Parliament enacted l e g i s l a t i o n which w i l l enable the Government, with the co-operation of the provinces, to set up programs to reduce regional d i s p a r i t i e s i n employment opportun-i t i e s and average incomes. In f a c t , despite the general cutback i n i t s expenditures, the Government, recognizing the o v e r r i d i n g urgency of these programs, has decided to a l l o c a t e an i n c r e a s i n g proportion of i t s revenues to them." p.2. "Our resources are immense, but they are not i n e x h a u s t i b l e . Although we must encourage t h e i r development, we must al s o conserve them and regulate t h e i r use. Water i s among the most precious of these resources. . . The Government has made known i t s views on t h i s serious problem, and has begun urgent discussions with the provinces. Upon t h e i r completion, the Government w i l l introduce l e g i s l a t i o n which w i l l enable i t , i n co-operation with the Provinces, to improve and preserve our water resources." pp. 2-3. "While the A t l a n t i c and P a c i f i c r e t a i n t h e i r t r a d i t i o n a l impor-tance f o r Canada, the A r c t i c Ocean and i t s coastal regions may soon enter a period of rapid economic development. . . The Government w i l l introduce l e g i s l a t i o n s e t t i n g out the measures necessary to prevent p o l l u t i o n i n the A r c t i c seas." p.3. "In the f i e l d of housing, despite the d i f f i c u l t i e s of i n f l a t i o n , the o b j e c t i v e i s to construct one m i l l i o n new housing u n i t s i n f i v e years. The Government w i l l play i t s part i n achieving that o b j e c t i v e while emphasizing measures to s a t i s f y the needs of low income f a m i l i e s . This and r e l a t e d programs w i l l s t i m ulate s o c i a l progress, employment, economic growth and urban improvement. They are a r e c o g n i t i o n of the need f o r every c i t i z e n to l i v e i n healthy and pleasant surroundings." p.3. C. L e g i s l a t i o n Promised A l i s t of 71 b i l l s was tabled with the throne speech. The most important of these were: Canada Grain Act R e v i s i o n , Criminal Code Amendments, International Development Research Centre B i l l , Motor Vehicle Safety B i l l , Canada Water B i l l , Northern Water Rights B i l l , Canadian Research I n s t i t u t e B i l l , and T e r r i t o r i a l Sea and Fishing Zones Act 1964 Amendments. APPENDIX B NOTES ON SELECTED FEDERAL LEGISLATION, 1944-1969 179 A. Short T i t l e : The National Housing Act, 1944. 8 George VI. Chapter 46 B. Long T i t l e : An Act to Promote the Construction of New Houses, the Repair and Modernization of existing Houses, the Improvement of Housing and Living Conditions, and the Expansion of Employment in the Postwar Period. C. Resolution: That, in order to promote the construction of new houses, the repair and modernization of existing houses, the improvement of housing and l i v i n g conditions and the expansion of employment in the post-war period, i t is expediant to introduce a measure to authorize the Minister of Finance: (1) to join with approved lending ins t i t u t i o n s in the making of loans under certain conditions for the construction of homes for prospective home-owners, and the sharing of losses, i f any, in respect of such loans, the aggregate amount of the advances to be made not to exceed one hundred million d o l l a r s ; (2) to join with approved lending ins t i t u t i o n s in the making of loans under certain conditions for the construction of houses to be rented to tenants and the sharing of losses, i f any, in respect of such loans, and to make loans to limited dividend housing corporations under certain conditions to assist in the financing of low rental housing projects, the aggregate amount of the advances to be made by the minister for the construction of houses for rental purposes not to exceed f i f t y m i l lion dollars; to authorize l i f e insurance companies under the j u r i s d i c t i o n of parliament to purchase land and construct thereon and manage low cost or moderate cost rental housing projects subject to certain conditions and to authorize certain guarantees in respect of such investments, and to authorize the Minister of Finance under certain conditions to make grants to municipalities, up to an aggregate amount not exceeding twenty mi l l i o n d o l l a r s , for the purpose of assisting in the clearance of slums or blighted areas; (3) to provide special assistance in the contracts with approved lending institutions to encourage the making of loans in rural areas, and to enter into contracts with manufacturers of building equipment to assure the production of components for rural homes on an economical cost basis, provided that the gross l i a b i l i t y of the dominion in respect of such contracts with manufacturers of components for rural homes outstanding at any one time shall not exceed five million dollars; (4) to guarantee under certain conditions loans for the repair, alteration and extension of existing homes to an aggregate amount of one hundred million dollars; 180 (5) to carry on and promote technical research and investigations designed to lower housing costs and promote better housing conditions and the more e f f i c i e n t planning of communities; and further to provide that the moneys required for the making of the said loan and grants and the payment of losses incurred under any guarantee or other contract authorized by the Act shall be paid out of any unappropriated moneys in the consolidated revenue fund and that a l l other moneys payable under the act, including the salaries of technical and c l e r i c a l staffs and a l l other expenses of administra-t i o n , shall be paid out of moneys appropriated by parliament for the purposes of the act. Hansard, 1944, Vol. 5972. D. Major Provisions Section (2) " ' o f f i c i a l community plan' means a master plan of community development and land u t i l i z a t i o n prepared by a local planning authority and legally adopted by or on behalf of a municipality." Part I: Housing for Home-Owners. Section (4): Minister may enter into contracts to provide loans. Terms : (a) for person owning land and intending to build or a builder intending to sel 1; (b) sound construction standards (c) loan to be at least 50% of the value, the maximum to be 95% of the f i r s t $2,000, 85% of the next $2,000, and 75% of the amount over $4,000. (d) the government to pay 25% of the loan. (e) interest charges to the borrower to be 4 1/2%. (i) maximum term to be 20 years unless there is a community plan, in which case term can be 30 years Part I I : Housing for Rental Purposes. Section (8) Loans for low-rental housing. Section (9) Loans to Limited Dividend Housing Projects. Section (11) Participation of Life Insurance Companies. Section (12) Assistance in clearing slum areas. Grant condi-tional upon conformance with o f f i c i a l community plan, upon sale to l i f e insurance or limited dividend housing corporation, and provincial approval. Grant not to exceed 50% of costs of acquisition and clearance. Maximum of $20 million to be allocated under this part. 181 Part I I I : Rural Housing Section (14) Minor adjustments to Part I to cover farm homes. Section (15) Minister to contract with manufacturer of compo-nent parts suitable for use in rural housing. Section (16) Maximum value of contracts to be $5 m i l l i o n . Part IV: Home Improvement Loans and Home Extension Loans. Section (17) Terms of loans; provision for cancellation of section by Minister after notice. Section (19) $100 m i l l i o n maximum. Part V: Housing Research and Community Planning Section (24) "It shall be the responsibility of the Minister to cause investigations to be made into housing conditions . . . and to cause steps to be taken for the distribution of information leading to the . . . understanding and adoption of community plans in Canada." Section (25) Minister to sponsor public lectures on "land, community and regional planning." Section (27) Provision for advisory committees. Part VI: General Section (28) Minister may employ s t a f f . Section (30) Minister to report to Parliament annually. E. Notes from the Debate (1) Major Issues Great pre-occupation with housing due to serious shortages. Many allegations that the act did not contain enough provision for urual housing. Stanley Knowles (CCF, Winnipeg North-Centre) exacted an admis-sion fron the Minister of Finance that no provision was made to assist municipal housing authories because the government f e l t these author-i t i e s were not capable of managing the assistance. Only limited dividend and l i f e insurance companies had the capability of handling such assistance. Cri de coeur from Gerry McGeer regarding the small amount allocated to slum clearance. (2) Quotations .(a) Hon. J.L. Ilsley (Lib.: Minister of Finance) (Sponsoring) "Broadly speaking, this part of the l e g i s l a t i o n [part V] places 182 s p e c i a l r e s p o n s i b i l i t i e s on t h e m i n i s t e r w i t h r e g a r d t o h o u s i n g c o n d i t i o n s t h r o u g h o u t C a n a d a and a u t h o r i z e s him t o u n d e r t a k e a c o m p r e h e n s i v e programme d e s i g n e d t o p r o m o t e s o u n d c o n s t r u c t i o n and t o e n c o u r a g e t h e d e v e l o p m e n t o f b e t t e r h o u s i n g and c o m m u n i t y p i a n n i n g . " H a n s a r d , 1 9 4 4 , V o l . p. 5 9 8 0 . "Hon. members w i l l h a v e n o t e d t h a t w h i l e t h i s b i l l i n v o l v e s many-s i d e d and c o m p r e h e n s i v e l e g i s l a t i o n d e a l i n g w i t h a l l p h a s e s o f t h e h o u s i n g p r o b l e m , n e v e r t h e l e s s i t d o e s n o t a d o p t t h e v i e w s o f t h o s e who b e l i e v e t h a t o u r m u n i c i p a l i t i e s s h o u l d e n g a g e d i r e c t l y o r t h r o u g h l o c a l h o u s i n g a u t h o r i t i e s i n a v a s t programme o f s t a t e h o u s i n g f i n a n c e d l a r g e l y by d o m i n i o n g o v e r n m e n t f u n d s . . . . [ U ] n d e r C a n a d i a n c o n d i t i o n s we c a n n o t b e l i e v e t h a t s u c h a programme w o u l d be s o u n d o r n e c e s s a r y . " H a n s a r d , 1 9 4 4 ; V o l . VI p. 5 9 8 0 . ( b ) M r . S. H. K n o w l e s ( C C F , W i n n i p e g N o r t h C e n t r e ) I s h o u l d l i k e t o r e a d a p o r t i o n o f t h e C u r t i s r e p o r t t o u c h i n g on t h i s p h a s e o f t h e m a t t e r , a p p e a r i n g a t p a g e s 9 and 1 0 : The c o m m i t t e e p l a c e s i n t h e f o r e f r o n t o f a l l h o u s i n g p r o j e c t s t h e m a t t e r o f town and c o m m u n i t y p l a n n i n g . Town p l a n n i n g i s e s s e n t i a l l y t h e m a t t e r o f u s i n g l a n d i n i t s m o s t e f f i c i e n t a n d s o c i a l l y d e s i r a b l e w a y . Many p e o p l e r e g a r d town p l a n n i n g as a m a t t e r o f p a r k w a y s , a r t e r i a l r o a d s , and s i m i l a r m e a s u r e s . B u t town p l a n n i n g s h o u l d mean t h e u t i l i z a t i o n o f a l l l a n d i n t e r m s o f l o n g - r a n g e and c a r e f u l l y c o n s i d e r e d o b j e c t i v e s . . . The i n s t i t u t i o n o f a t l e a s t t h e e s s e n t i a l s o f t own p l a n n i n g i s b o t h p r e l i m i n a r y and b a s i c t o h o u s i n g d e v e l o p m e n t s . The c o m m i t t e e , t h e r e f o r e , r e g a r d s i t as a s t e p w h i c h m u s t be t a k e n a t t h e e a r l i e s t p o s s i b l e moment i n p r e p a r a t i o n f o r p o s t - w a r h o u s i n g p r o j e c t s ; and i t m u s t be a dded t h a t on a c c o u n t o f t h e c o n s t i t u t i o n a l d i v i s i o n o f p o w e r s i n C a n a d a , town p l a n n i n g r e q u i r e s t h e c o - o p e r a t i o n o f a l l l e v e l s o f g o v e r n m e n t i n t h e f e d e r a l s y s t e m . I t i s e q u a l l y t r u e o f modern town p l a n n i n g t h a t i t r e q u i r e s i n n o v a t o r y l e g i s l a t i o n and a s p i r i t o f i n i t i a t i v e on t h e p a r t o f b o t h c i t i z e n s and g o v e r n m e n t . O n l y a w i d e r a p p r e c i a t i o n o f t h e n a t u r e and t e c h n i q u e s o f t own p l a n n i n g w i l l p r o d u c e t h e c o o p e r a t i v e a c t i o n n e c e s s a r y f r o m f e d e r a l , p r o v i n c i a l and m u n i c i p a l g o v e r n m e n t s . The Hon. member f o r M a c k e n z i e ( M r . N i c h o l s o n ) , who has s p o k e n f o r t h i s g r o u p on s e v e r a l o c c a s i o n s on t h e m a t t e r o f h o u s i n g , has a p p e a l e d a number o f t i m e s t o t h e g o v e r n m e n t a l o n g t h e v e r y l i n e s s e t o u t i n t h e q u o t a t i o n I have j u s t r e a d . He has u r g e d t h e g o v e r n m e n t t o c a l l c o n f e r e n c e s o f f e d e r a l , p r o v i n c i a l and m u n i c i p a l a u t h o r i t i e s so t h a t t h e y m i g h t g e t down t o b r a s s t a c k s on t h i s m a t t e r o f town and c o m m u n i t y p l a n n i n g w e l l i n a d v a n c e o f any h o u s i n g p r o j e c t upon w h i c h we m i g h t l a u n c h . H a n s a r d , 1 9 4 4 , V o l . VI p. 5 9 8 1 . 183 (c) Mr. Gerald G. McGeer (Lib.: Vancouver-Burrard) . . . I do not know how the figure of $20,000,000 was arrived a t , but certainly tviut amount would not go very far in slum clearance throughout Canada. . . . What would i t cost? How could i t be paid for? It could be paid for in the same way that we pay for our highways, our parks, or those things that we must have in war time and in peace time that never reproduce a dollar of money dividends, but could produce enormously in the dividends of culture, better citizenship and better community l i f e in a sounder, national economy. . . . In my opinion, of a l l the violations of the true s p i r i t of our Canadian constitution we find the greatest one in the s e l f i s h attitude of the federal parliament to the junior departments of government. I find no better expression of that same weakness, shall I say, in our national administration than in the attitude expressed in this b i l l in connection with slum clearance, and in the utter indifference on the part of the federal authorities to any desire to become associated with provincial and municipal governments in making conditions in c i t i e s better for the masses of the people. . . . It ?s a remarkable thing that men can think in terms of putting up $60,000,000 for a battleship which can be sunk in ten minutes; but when you come along and say that you would l i k e to have $10,000,000 invested in the City of Vancouver to improve the l i v i n g conditions of the children p a r t i c u l a r l y and the people generally, men w i l l shudder at the idea of giving a community that kind of protection, which is better than the protection given by a battleship where i t may mean the winning of a war. Hansard, 1944, Vol VI p. 6004-6006. Would i t not be possible for the government to provide under this measure at least the power to work out those schemes of improving our c i t i e s ? Let me plead on this basis: w i l l not the government assume and recognize that l i f e in the c i t i e s i s the very root of Canadian democracy? If i t deteriorates and goes down, i t cannot help having a serious effect upon the l i f e of the nation. Would not the government recognize, with i t s superior financial power and strength, that there is a great, growing, national need in which i t can serve in f u l l co-operation. . . . Does anyone believe for one moment that to do that kind of thing is beyond the capacity of the people of Canada? . . . And i f this government thinks for one moment that i t w i l l be allowed to f a i l to accept i t s responsibility for slum clearance, and i t s responsibility for the betterment of conditions throughout Canadian c i t i e s , i t i s making a very serious mistake. . . . What a pity i t is that there are just a few l i t t l e things we cannot seem to digest! Two hundred million dollars for family al1owances--and $20,000,000 for slum clearances! Hansard, 1944, Vol. VI p. 6007. 184 F. Significant Amendments (1) An Act to Amend the National Housing Act (1944) 9-10 George VI, 1945, Ch. 26. Section (6) --"minister" to mean the Minister of Finance or any person designated by law to act in his pi ace. Section (26) Maximum amount available under NHA raised to $150 mi 11 ion. Section (32) The Cabinet by proclamation may l i m i t the areas in which loans are made and determine cutoff dates for loans. (2) An Act to Amend the National Housing Act (1944) 13 George VI, 1949, Ch. 30. Section (8) permits loans to co-operative housing associations. (3) An Act to Amend the National Housing Act (1949) 15 George VI, 1951 , Ch. 32. Interest rate to be set by the cabinet. (4) An Act to Amend the National Housing Act (1944) 1-2 Elizabeth I I , 1953 , Ch. 42. Section (6) repealed; now grants of 50% of the cost of acquisition and clearance available provided the land is used for low rental housing or "for any federal, p r o v i n c i a l , or municipal public purpose," 185 A. Short T i t l e : The National Housing Act, 1954 2-3 Elizabeth I I , 1954, Chapter 23 B. Long T i t l e : An Act to Promote the Construction of Nev/ Houses, the Repair and Modernization of existing Houses, and the Improvement of Housing and Living Conditions. C. Resolution: That i t is expedient to introduce a measure to be substituted for the present National Housing Act for the further improvement of housing and l i v i n g conditions and for the purpose--(a) to authorize Central Mortgage and Housing Corporation to insure approved lenders, including banks, in respect of loans made by them to assist in the financing of new residential construction in urban and rural areas; also to insure, under certain conditions, loans for the repair, alteration and extension of existing homes; and (b) to continue and redefine the actual powers of the corporation as to the making of loans, the furnishing of guarantees, and the undertaking of feder 1 provincial projects; also to continue the powers of the minister to make grants in aid of housing redevelopment and for other matters necessary for the proper administration of the act. Hansard, 1954, Vol. I p. 997. D. Major Provisions Section (4) The Governor in Council [cabinet] can prescribe the interest rate, but the interest rate i s not to exceed the rate paid on government bonds by more than 2 1/4 % for low rental housing loans and by 1.5% for loans to mining, lumbering, logging and fishing corporations for housing for their workers. Part I: Insured Mortgage Loans Sections (6) (7) (8) and (9) outline a new system of insured loans, to be made by approved lenders and to be insured by CMHC. Such loans to be available to cover high percentages of lending values of various projects. 90% of the f i r s t $8,000 of the lending value and 70% of the remainder of the lending value for single family homes; 90% of the f i r s t $8,000 of half of the lending value, and 70% of the remainder of half the lending value, and 85% of the other half for two-family homes; 90% of the f i r s t $8,000 of the lending value of each house and 70% of the remainder for cooperative housing projects [single family homes]; 186 90% of the f i r s t $8,000 of half the lending value and 70% of the remainder of half the lending value, and 85% of the other half for two-family homes for co-operative housing projects; 80% of the lending value for multiple-family homes for co-operative housing projects; 80% of the lending value of rental housing projects. Part I I : Housing for Rental Purposes and Land Assembly Section (14) The Corporation can guarantee rentals to builders of rental housing projects under certain circumstances. Section (15) Insured mortgages available for rental housing. Section (16) Loans available to limited dividend housing projects. Section (17) Loans of 88% of the lending value available to corporations engaged in mining, lumbering, logging or fishing to provide housing, provided that the project is necessary to house the labour required for the corporations' operations. Section (19) Life insurance companies may invest in low or moderate income housing projects to a value up to 5% of their total assets. Section (21) Life insurance companies may invest in land for the purposes of land assembly for a housing development. Under these circumstances CMHC would guarantee return and interest on such an investment. Part I I I : Housing Redevelopment Section (23) CMHC may make grants to municipalities for clearance of substandard areas, amounting to 50% of the cost of acquisition and clearance. Part IV: Home Improvement Loans and Home Extension Loans CMHC can guarantee to a bank or approved credit agency loans for home improvement of up to $2500 for the f i r s t dwelling unit and up to $1250 for the rest of the dwelling units in a project. CMHC can guarantee to a bank or approved credit agency loans for home extension of up to $3750 for the f i r s t dwelling unit and up to $1250 for the rest of the dwelling units in a project. Both types of loan to have a maximum three year term. This section can be terminated by CMHC upon notice. Part V: Housing and Community Planning Section (31) "It is the responsibility of the Corporation to cause investigations to be made into housing conditions and the adequacy of existing housing accommodation in Canada or in any part of Canada and to cause steps to be taken for the- distribution of informa-tion leading to the construction or provision of more adequate and 187 improved housing accommodation and the understanding and adoption of community plans in Canada." Section (32) The Corporation can commission studies on housing conditions in Canada and elsewhere, construction cost factors, plans and designs, land u t i l i z a t i o n and community planning, etc. The Corpor-ation can commission public lectures and other publicity measures. Section (33) With the approval of cabinet, the Corporation may commission, directly or in partnership with any other federal agency, province, municipality, university, etc., technical research in housing problems. CMHC may further contract for the production of materials, component parts, etc, publish research, and make provision for promoting training in construction, design, land planning or community planning, or the management of housing projects. Part VI: Federal Provincial Projects Section (36) the corporation may undertake j o i n t l y with a provincial government or agency projects for the acquisition and development of land for housing and construction of houses for sale or rent. Cost-sharing to be on a 75% (federal) - 25% (provincial) basis. Part VII: General Section (37) Powers of CMHC to include ownership and management of housing projects, i n s t a l l services, etc. Corporation may pay certain taxes imposed by junior governments. E. Notes from the Debate (1) Major Issues Hon. Robert H. Winters (Lib.: Minister of Public Works and Sponsor) said that there were two main purposes to the b i l l : to broaden the group of lending institutions to include chartered banks, and to substitute a system of insured loans for the existing system of joi n t loans. The main concerns of the opposition were: interest rates, which were not being fixed by the l e g i s l a t i o n as in the past, an absence of adequate provision for assistance to rental housing, and an absence of concern for housing for lower income groups. Donald Fleming f e l t i t would grant immense power to CMHC (Hansard, 1954, Vol. I, p.1332) but George Hees called i t "a gigantic bluff" (Hansard, 1954, Vol. I I , p. 1370). Paul T. Hellyer (Lib.: Davenport) f e l t that the b i l l would represent a great step forward. The main problems in housing were, in his view, land assembly (blaming the Ontario government for not taking 188 advantage of provisions in the previous legislation) and construction costs, due to larger houses, more and larger applicances, and high land costs. (Hansard, 1954, Vol. I I , p. 1368). Claude E l l i s (CCF, Regina City) quoted a study by L.O. Gertler on slum areas, which found that while slum areas in an American city occupied 20% of the metro land area, they had 33% of the population, 45% of major crimes, 55% of juvenile delinquency, 50% of diseases, 45% of services costs, and 6% of tax rovoni'-. (Hansard, 1954, Vol. I I , p. 1375). E l l i s maintained that the b i l l would do nothing for 80% of Canadians. E. Davie Fulton (PC, Kamloops) expressed a concern for the housing problems of small communities. (Hansard, 1954, Vol. I I , p. 1560). The main concern of Stanley Knowles (CCF, Winnipeg North Centre) was whether the new National Housing Act would provide homes for those who could not have them previously. (Hansard, 1954, Vol. I, p. 1357). (2) Quotations (a) Douglas Harkness (PC, Calgary North) As some one s a i d , i t is a good idea to have the people scattered instead of congested in possible slum areas. . .a higher moral responsibility in rural areas. (Hansard, 1954, Vol. I I , p. 1391). (b) Hon. Robert H. Winters (Lib.: Minister of Public Works and Sponsor) There are two main provisions in the proposed l e g i s l a t i o n . F i r s t , i t is proposed to widen the group of lending institutions to include the chartered banks and the Quebec savings banks which w i l l be empowered to make loans on the security of insured f i r s t mortgages on residential property. Second, i t is proposed to abandon the present form of j o i n t loans under the National Housing Act and to substitute a system of insured mortgage loans. Although our supply of new houses in 1953 is greater than ever before, our population and number of families keep growing. This growth requires continued expansion of housing*, Hansard, 1954, Vol. I, p. 998. There has been a feeling that, through no particular f a u l t of the government or the corporation, the larger centres have received better treatment under the provisions of part I of the housing act than smaller communities. There were reasons for t h i s . But we hope, Mr. Chairman, that plans w i l l become possible under the new leg i s l a t i o n to carry the benefits of the new le g i s l a t i o n to a l l parts of Canada where a housing need exists. Hansard, 1954, Vol. I, p. 1000. 189 (c) Mr. A.J. Brooks (P.C. Royal) There has been a continued exodus of people [from the maritime provinces] to the central part of Canada, to the large industrial centres such as Montreal, Toronto, Hamilton, and other places. This has caused great congestion in these parts of Canada. It has also left.vacant houses in the sectors of the country from which those people came. . . This situation has developed in Canada as a result of our economy situ a t i o n . I was pleased indeed to hear the Hon. member for Calgary North [Mr. Harkness] suggest a solution. I think i t is a solution which is linked up with the housing problem in Canada, and that is the decentralization of industry. We can accommodate two or three times the population we have in the maritimes, and we would have two or three times our population i f we could retain our young people there and give them employment. I have often pressed for this in the House of Commons, and I believe we w i l l always have an acute housing situation in Canada until there is some decentralization of industry in this country. . . This is one way in which the federal government could assist the different provinces needing help. I t could assist in the decentral-ization of industry, and, in that way, relieve the housing problem. The problem is not a temporary one; i t has existed since the l a s t war, and even before that. And I am s a t i s f i e d that as long as the present economic condition exists we w i l l have these housing conditions. Hansard, 1954, Vol. I I , p. 1395. (d) Mr. Georges Villeneuve (Lib.: Reberval) I would also l i k e to say a word about small towns and v i l l a g e s . In the constituency I represent there are no large centres of population, but each l o c a l i t y wishes to do i t s share to ensure the future of our country. Until now, small towns and villages have not received a l l the attention they deserve. However, I note that banks w i l l now be able to make mortgage loans and that i t w i l l now be possible to help our small towns and villages expand, develop, and take a deeper inter-est in the country. Our small towns and villages are more important than ever, because we s t i l l have, in our vast country, wide open spaces, practi-cally uninhabited, while other not so distant d i s t r i c t s , are over-populated, and this is particularly true in the province of Quebec where one-third of the population lives in the southern part, while, in the rest of the province, the population i s very inadequately spread. Well, i f our small towns and villages can contribute to the development of the country through home ownership, I am convinced that in the future they w i l l play an important part in the development not only of our provinces but of the country as a whole. As a matter of f a c t , when home ownership is made easier for those who l i v e in small towns and v i l l a g e s , the economic structure is strengthened in the l o c a l i t y , the d i s t r i c t , the province, and throughout the country. Hansard, 1954, Vol. I l l , p. 1550. 190 F. Significant Amendments (1) An Act to Amend the National Housing Act, 1954. 4-5 Elizabeth I I , 1956, Ch. 9. Section 7. Provides new Part III "Urban Redevelopment" This new Part replaces the slum clearance Part and allows CMHC to make contributions to municipalities for the clearance of substandard areas, to a maximum of 50% of the costs. Such areas must have a signi f i c a n t housing component after redevelopment. Section 13, Amends Section 33 to allow CMHC to make arrange-ments with a province or a municipality with the approval of the province, to conduct special studies "relating to the condition of urban areas, to means of improving housing, to the need for additional housing for urban redevelopment." Section 17 Adds a new section (40A), allowing CMHC to make loans to Indians for housing. (2) An Act to Amend the National Housing Act, 1954 6 Elizabeth I I , 1957-58, Ch. 18. Raises the increment of lending value for the 90% loans from $8,000 to $12,000. (3) An Act to Amend the National Housing Act, 1954. 9 Elizabeth I I , 1960, Ch. T. Section 1 raises the proportion that may be lent from 90% to 95% of the f i r s t $12,000, and from 80% to 85% of the remainder. Section 6 amends Section 36 to allow federal provincial partnerships to acquire and clear land and construct housing on i t , and to acquire, improve and convert to housing buildings in an urban renewal area. Section 7 adds Part VI A, and Part VI B. Part VI A "Loans for University Housing Projects," provides for loans from CMHC for 90% of the value of university housing projects and sets a maximum of $50 million for this purpose. Part VI B, "Loans for Municipal Sewage Treatment Projects," provides for 66 2/3% loans on a 50 year term for the construction of municipal sewage treatment f a c i l i t i e s provided there is a need "to eliminate or prevent water or soi l pollution." The Corporation may forgive 25% of the principal and interest i f the project is completed by the end of March, 1963. (4) An Act to Amend the National Housing Act, 1954 11 Elizabeth I I , 1962-63, Ch. 17. Extends forgiveness provisions for sewage treatment loans to the end of March, 1965. 191 (5) An Act to Amend the National Housing Act, 1954 13 Elizabeth I I , 1963-64, Ch. 15. Section 1 allows greater fluctuation in interest rate in relation to rate of interest on government bonds. Section 2 allows for loans to be insured covering 95% of the f i r s t $13,000 and 70% of the remainder for most classes of loans. Section 7 New Part III "Urban Renewal" --dealt with as a separate housing act below. Public Housing Part IV. (6) An Act to Amend the National Housing Act, 1954 16- 17 Elizabeth I I , 1968, Ch. 39. Allows for loans to be insured covering 95% of the f i r s t $18,000 and 70% of the rest for most classes of loans. (7) An Act to Amend the National Housing Act, 1954 17- 18 Elizabeth I I , 1969, Ch. 45. Section 4 allows for loans to condominium projects on the same basis as for other projects. Section 7 repeals Section 16 allowing for direct loans to non-pr o f i t corporations for acquisition or construction of low-rental housing, and permits such loans to be made to any person for such a purpose. (8) An Act to Amend the National Housing Act, 1954 17-18 Elizabeth I I , 1969, Ch. 46. Section 1 extends the forgiveness provisions for sewage treat-ment loans to the end of March, 1975. 192 A. Short T i t l e : An Act to Amend the National Housing Act, 1954 13 Elizabeth I I , 1963-64, Chapter 17. B. 'Long T i t l e : Nil C. Resolution: That i t is expedient to introduce a measure to amend the National Housing Act, 1954, (a) to provide further assistance to provinces and municipalities carrying out urban renewal programs by authorizing Central Mortgage and Housing Corporation (hereinafter referred to as "the corporation")- to make contributions and loans to provinces or municipalities to assist them in meeting the costs of such programs, and for this purpose to provide for the payment out of the consolidated revenue fund of amounts not exceeding in the aggregate one hundred mi l l i o n d o l l a r s ; (b) to authorize the corporation to make loans and to insure loans made by approved lenders to owners of existing houses in areas included in urban renewal programs; (c) to authorize the corporation to make loans and contributions to provincially or municipally owned housing agencies for constructing or acquiring public housing projects and operating such projects, and to authorize the corporation to contribute a portion of the operating losses on any such projects that provide subsidized housing accommoda-tion to individuals or families of low income; (d) to permit federal-provincial public housing projects to include existing housing and hostel or dormitory type housing accommodation; (e) to authorize the corporation to make loans to non-profit organizations to assist in the acquisition or construction of housing accommodation for individuals or families of low income; (f) to authorize the corporation to make loans to co-operative associations and charitable corporations to assist in the construction of accommodation for university students and their families and to increase from one hundred million dollars to one hundred and f i f t y m illion dollars the maximum amount that may be paid out of the consolidated revenue fund for this purpose; (g) to authorize the corporation to make loans to provinces to assist in the construction or expansion of sewage treatment projects and to authorize the corporation to forgive repayment of twenty five 193 per cent of the principal and interest on any loans made to provinces or municipalities for this purpose in respect of work completed by March 31, 1967; (h) to increase from two b i l l i o n dollars to two and one half b i l l i o n dollars the maximum charge on the consolidated revenue fund for direct loans by the corporation; (i) to provide for the establishment of a special account in the consolidated revenue fund out of which amounts not exceeding in the aggregate hundred mi l l i o n dollars may be advanced to the corpor-ation for the making of loans to the holders of mortgages issued in respect of loans insured under the act and for the purchase by the corporation of mortgages issued to secure such loans; (j) to provide further for certain changes in the administra-tion of the act. Hansard, 1964, Vol. IV, p. 3713-14. D. Major Provisions Certain changes concerning interest rates, insurable portions of investments, and loans to non-profit corporations (see above). Section 7 repeals Part III (1956 "Urban Redevelopment") and replaces i t with a new Part I I I , "Urban Renewal," allowing the Corporation to make co; cributions to municipalities covering half the costs of preparing an urban renewal scheme, and of acquiring, clearing, servicing and disposing of land under an urban renewal scheme. In addition, the Corporation may make direct loans to municipalities covering up to 2/3 of the portion of the cost of an urban renewal scheme not covered by the grants. A maximum of $100 million was fixed on allocations under this Part. Section 8 concerns "Public Housing," under which the Corporation may make agreements with provinces or their agencies for the construc-tion or acquisition of a public housing project. Assistance in the form of loans covering 90% of the cost, grants covering up to 50% of the cost is provided f o r . Section 11 broadens the c l a s s i f i c a t i o n of agencies e l i g i b l e for loans for university housing projects. ' Section 14 extends the forgiveness provisions to projects for sewage treatment completed by the end of March, 1967. E. Notes from the Debate (1) Major Issues 194 Hon. J.R. Nicholson Lib.: Postmaster General) introduced the l e g i s l a t i o n , admitting serious inadequacies in previous housing p o l i -c i e s , notably in the fi e l d s of accommodation for low income groups, and in assistance in urban redevelopment. The proposed l e g i s l a t i o n had as i t s goal a decent standard of housing for a l l Canadians. The minister also s.-^ved notice of the federal government's recognition that the priva market would never be able to solve the housing problem, even i f assisted obliquely by government. Opposition speakers agreed with the le g i s l a t i o n in general, but there was concern for down payments, interest rates, and the problem of rural areas. Some suggested that housing and urban development be given a new emphasis through establishment of a royal commission, a standing Commons committee, or a full-blown ministry of housing and urban development. One member suggested the construction of a model c i t y . (2) Quotations (a) Hon. J.R. Nicholson (Lib.: Postmaster General and sponsor) The resolution is the forerunner of amendments to the National Housing Act which represent a basic change in our concept, perhaps I should say a completely fresh approach, to some of the most vexing housing problems facing the country. Hansard, 1964, Vol. IV, P. 3714. Canada's population is increasing at the rate of about 400,000 persons per annum. This increase in population is accompanied, as a l l hon. members know, by a decline in farm population; thus the increase in other areas is such that as a nation we need an output of roughly 125,000 dwellings per annum in our c i t i e s and towns—not in the rural areas—merely to keep abreast ofpopulation growth in housing require-ments . Hansard, 1964, Vol. IV, P. 3715. . ... 90 per cent of the entire housing output associated with the National Housing Act has been provided for the middle income or upper income classes. . . . Canadian housing policy has been heavily committed to the support and aid of the private market; and rather to the production of housing than to i t s d i s t r i b u t i o n . Hansard, 1964, Vol. IV, p. 3716. In my view, and I speak as a minister of the crown, our best accomplishments in public housing are not impressive. In the view of the government i t represents the greatest single area of f a i l u r e in our federal housing policy. [The legislation] w i l l offer a new technique in public housing. It w i l l also provide for some amplification of present techniques. The goal of the legi s l a t i o n is frankly ambitious and i t encompasses nothing less than a decent standard of housing for a l l Canadians. Hansard, 1964, Vol. IV, p. 3716. 195 . . . Canadian experience has shown that the loss of about one third of the gross expenditures on the most comprehensive redevelopment projects must be borne by and is being borne by the governments concerned. As indicated by this resolution, the federal government in the national interest is prepared to absorb in future a substantial portion of these losses. Hansard, 1964, Vol. IV, p. 3793. We know there is no automatic private market process which regenerates urban areas as they decline. Therefore, the government believes that i f there is to be such a regenerative process i t must be developed as a matter of public policy. We propose to encourage and help the provinces and their municipalities to develop i t together with the federal government and i t s agencies. Hansard, 1964, Vol. IV, p. 3795. '(b) Mr. A. Brewin (N.D.P.: Greenwood) Because of the fact that in Canada the responsibility is divided i t seems to me the danger i s that we do not have an adequate amount of planning and co-operation between the different levels of government. I f u l l y appreciate that there is a constitutional problem involved in direct communication between the federal government, which i s responsible for a substantial amount of the financing of housing, and the municipal governments which are, as has been said, the creatures of provincial l e g i s l a t i o n s . But the time has come when, i f we mean what we say about co-operative federalism in a v i t a l and urgent subject l i k e housing, we need constant conference among those who represent great urban areas l i k e Toronto--I mention that f i r s t because I happen to l i v e there--or Montreal, Vancouver or Winnipeg, the representatives of municipalities, which have the local i n i t i a t i v e to carry out these plans, the provinces which have their share of r e s p o n s i b i l i t y , and Central Mortgage and Housing Corporation. Hansard, 1964, Vol. IV, p. 3797. Redevelopment schemes at the centre of big c i t i e s are apt to be very expensive; they do not meet the neighbourhood needs; the people are sometimes put out and expensive apartments are b u i l t in their place; commercial areas grow up--and this may be perfectly a l l right--or office buildings. This is perfectly good planning; but i f i t is rehabilitation of what we have already that is needed, this type of costly redevelopment is a great disservice to the people of Canada. Hansard, 1964, Vol. IV, p. 3798. (c) Mr. Reid Scott (NDP: Danforth) It should be made clear that the problems of housing and urban development are in no way exclusively restricted to the large centres of population; the smaller towns in the rural areas are just as v i t a l l y affected by measures of this kind as the large city centres. . . . . . The f i r s t thing I think the government should seriously consider is the creation of a ministry of housing which should be headed by a f u l l time minister. . . [T]he connection between housing and good citizens is so obvious to me that t do not think i t needs any 196 documentation. . . This is just as important as national health and welfare, i t is just as important as fisheries and i t is just as important as forestry. Hansard, 1964, Vol. IV, pp. 4042-4044. These suggestions I make to the minister are obviously of a short run character designed to deal with this particular piece of l e g i s l a t i o n , but in concluding I want to suggest something else. I suggest to him that the real problem of urban l i f e i s , as I have sa i d , enormously complicated because i t involves a l l the needs of town planning, transportation, communication, i n d u s t r i a l i z a t i o n , commercial-i z a t i o n , as well as places for people to l i v e . It creates great social and psychological problems which none of us really understands and we do not have enough information with which to deal with them. I propose that the minister should give consideration to a long run approach to housing in addition to this l e g i s l a t i o n . I suggest to him that the government should consider appointing a royal commission on housing that could begin to s i t now and obtain the information we need to devise solutions to deal with the problems of urban Canada in the next two decades. . . . I should recommend a national housing policy to deal with a l l segments of society. . . . . . a long term program that is really designed to assist the whole problem of the development of urban Canada and the best way in which we, as the government, can handle i t . . . . It is impossible to isolate large housing programs from the economic impact on the Canadian economy. . . . So far as I am concerned these problems are not going to be solved by any stereotyped planning. I think we w i l l find that every town, every area w i l l have to be considered individually becuase of the climate, soil conditions and other factors such as railways, high-ways, and so on. Hansard, 1964, Vol. IV, pp. 4045-6. (d) Mr. Maurice Rinfret (Lib.: St. James) I would recommend to the government the establishment of a department of urban growth and development for the benefit of the planning of communities such as the hon. member for Danforth [Mr. Scott] referred to ea r l i e r today. I believe that in a country such as ours, with the potential growth we have, with the great wealth we have and the future everyone- knows stands before us, we should be prepared to do everything in our power to see that this growth is established on a proper basis for the citizens of Canada. Hansard, 1964, Vol. IV, p. 4062 (e) Mr G. W. Baldwin (PC: Peace River) . . .1 do not go along with [Mr. Reid Scott--Danforth] when he suggests that this matter might be the subject of a royal commission. This problem of housing and urban redevelopment is one which is extremely rapid in i t s occurrence and i t s changes and I do think that i f you set up a royal commission, by the time this commission were to draw i t s conclusions, the assumptions upon which those conclusions were based would no longer be v a l i d . . . .1 should l i k e to see a standing or select committee dedicated to the problem of urban redevelopment and housing. Hansard, 1964, Vol. IV, p. 4065. 197 A. Short T i t l e : Agricultural Rehabilitation and Development Act. 9-10 Elizabeth I I , 1961, Chapter 30 B. Long T i t l e : An Act to Provide for the Rehabilitation of Agricultural Lands and the Development of Rural Areas in Canada. B. (2) Preamble Whereas agriculture in Canada is undergoing technological changes that necessitate adjustments on the part of many Canadians engaged in this basic industry in order to maintain or raise their standard of l i v i n g ; And Whereas a l l Canadians, and Canadians engaged in agriculture in p a r t i c u l a r , may benefit by projects providing for the alternative uses of agricultural lands that are marginal or of low productivity, by projects for the development of new opportunities for increased income and employment and conservation of the so i l and water resources of Canada; And Whereas such projects can best be advanced on the part of Canada by the undertaking of research and the providing of assistance to provincial governments and agencies thereof with respect to such projects; Now Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: C. Resolution That i t is expedient to introduce a measure to authorize the Minister of Agriculture to enter into agreements with provincial governments or agencies thereof for the undertaking j o i n t l y with those governments or agencies thereof projects for the alternative uses of lands that are marginal or of low productivity, projects for the development of income and employment opportunities in rural agricul-tural areas, and projects for the development and conservation cf the soil and water resources of Canada; for the payment to the provinces of contributions in respect of the cost of such projects undertaken by a province or agency thereof; to authorize the Minister of Agriculture to undertake programs of research and investigation in respect of these matters; to provide for the establishment of advisory committees and the appointment of their members, and to provide for other related and incidental matters. Hansard, 1960-61, Vol. I I , p. 1403. 198 D. Major Provisions Section 2. Projects for the Alternative Uses of Land: the Minister, with cabinet approval, may enter into agreements with provincial governments to j o i n t l y undertake "projects for the more e f f i c i e n t use and economic development of marginal or submarginal agricultural lands," or he may make agreements to pay contributions in respect of the cost of such provincial projects. Section 3 Rural Development Projects: the Minister, with cabinet aporoval , amy enter into agreements with provincial govern-ments to undertake j o i n t l y , "projects for the development of income and employment opportunities in rural agricultural areas. . .and for improving standards of l i v i n g in those areas," or he may make agree-ments to pay contributions in respect of the cost of such provincial projects. In addition, the Minister may commission research oriented around these purposes, to be performed by any provincial government or agency, any university or educational i n s t i t u t i o n , or any person. He is to make use, wherever possible, of other agencies of the Govern-ment of Canada in such rural development projects. Section 3 Soil and Water Conservation Projects: the Minister with Cabinet approval, may enter into agreements with provincial governments to j o i n t l y undertake "projects for the development and conservation of water supplies for agricultural purposes, and... projects for s o i l improvement and conservation that w i l l improve agricultural efficiency," or he may make agreements to pay contri-butions in respect of the cost of such provincial projects. He may also commission research and investigation into such purposes, to be performed by a provincial government or agency. Section 6. The Minister may appoint such advisory committees as he deems necessary, and pay expenses of members appointed to such committees. Section 9. The Minister to report to Parliament annually. E. Notes from the Debate. (1) Major Issues The Liberal opposition took no major exception to the measure, which the Minister of Agriculture introduced as a major step forward in implementing national agriculture policy. The Liberals were at pains to point out their achievements with the Prairie Farm Rehabilitation Act. The b i l l passed unanimously on third reading. In 1966, during another debate on rural development, the Liberal Minister of Forestry praised the ARDA legislation of the Conservatives, saying "I believe that ARDA is one of the most useful and well conceived pieces of legislation on the Canadian statute books." (Hansard, 1966 , Vol. I l l , p. 4935). (2) Quotations (a) Hon. Alvin Hamilton (P.C.: Minister of Agriculture and sponsor) Generally speaking, the objective of the national agricultural program i s to give agriculture a reasonably f a i r share of the national income. . . . The Prime Minister stated on August 30, 1958--and I am quoting his words — that our concept of a national policy is based on the belief that the national welfare demands positive action to meet the basic causes of distress and maladjustment in particular industries and regions. Hansard, 1960-61, Vol. I I , p. 1403. Last session the special committee of the other place [Senate] on land use in Canada studied the question of marginal and submarginal land use. Their recommendations, found at page 248 of the second report, are well worth reading. I should l i k e to place these on the record for the information of those who study this debate: Whereas there is a need of elimination of problem areas in Canada where farm businesses are small, productivity low, and incomes inadequate for family requirements: The committee recommends, (1) (a) That further research be undertaken to define more the nature of the problem in low income areas and to pinpoint their location. (b) That a federal-provincial rural development program be instituted to deal with areas of greatest need. (2) That in implementing such a program the provincial governments participate on a co-operative basis; such co-operation to include the principle that both provincial and local authori-ties assume major responsibility for the i d e n t i f i c a t i o n of problems and needs of local areas and the i n i t i a t i o n , planning and development of appropriate action programs. (3) That the federal and provincial governments co-operate in assisting any such program with financial and technical assistance, said financial assistance to be provided through a cost-sharing agreement. (4) That the federal and provincial governments provide for a larger farm-management service and the expansion of educational f a c i l i t i e s with particular emphasis on leadership to ensure a prompt dissemination of the research results to those farmers who w i l l be most benefited therefrom. (5) That there should be some form of co-ordination of federal departments of agriculture; northern a f f a i r s and national resources health and welfare; labour; trade and commerce; f i s h e r i e s ; forestry; and citizenship and immigration with regard to a c t i v i t i e s under a rural development program. (6) That the special committee of the Senate on land use be reconvened at next session of parliament. . . . (Quotation interrup-ted by opposition members and never completed). Hansard', 1960-61, Vol. I I , p. 1404, 200 I should l i k e to make i t clear that i t is not the purpose of this l e g i s l a t i o n to reduce the number of farmers. Hansard, 1960-61, Vol. I I , p. "406. . .While the program i s focused mainly on farm people, i t cannot be exclusively a g r i c u l t u r a l . Rural economies are no longer separate from town or urban economies, and the program must be one of area development embracing local centres of population as well as the farms surrounding them. Hansard, 1960-61, Vol, V, p. 5197. . . .[I]t seems logical that one of the f i r s t steps to be taken at the provincial level which has control of property and c i v i l rights is to give serious consideration. . . to setting up a system of zoning land and then saying that land which is c l a s s i f i e d as grade A agricultural by statute can never be used for anything else but agriculture. . . If this zoning is followed by a basis of assessment, not on the expected development value of that land for purposes other than agriculture but as potential agricultural production on that land, then you could work out a f a i r assessment and a f a i r tax basis to gi\'e you the p o s s i b i l i t y of protecting that farm land in the future. Hansard, 1960-61, Vol. V, p. 5199. F. Significant Amendments (1) An Act to Amend the Agricultural Rehabilitation and Develop-ment Act. 14-15 Elizabeth I I , 1966, Ch. 11. This Act changes the emphasis of ARDA from pure agriculture to rural development. The long t i t l e is changed to "An Act to provide for the rehabilitation and development of rural areas in Canada." The t i t l e of the agency is changed to the Agricultural and Rural Development Agency. The stipulation that aid be provided for "marginal or submarginal agricultural lands" is changed to "rural lands." Similar provisions remove the necessity of areas receiving rural development assistance being a g r i c u l t u r a l . Water conservation projects can be "for agricultural or other rural purposes." 201 A. Short T i t l e : Atlantic Development Board Act 11 Elizabeth I I , 1962, Chapter 10. B. Long T i t l e : An Act to provide for the establishment of an Atlantic Development Board. C. Resolution That i t is expedient to introduce a measure to establish an Atlantic development board and to define the duties thereof, to provide for the appointment of the chairman and other members of the board and for the payment of certain expenses of the members thereof, to provide for the appointment of an executive director of the board, and for the payment of his remuneration, to provide further that the board may engage the services of such advisers and staff as may be necessary to enable i t to carry out i t s duties and to provide further for other related and incidental matters. D. Major Provisions Sections 3 & 4. Five members to be appointed by cabinet; one to be chairman. Section 9. Objects of the Board are "to inquire into and report to the Minister upon measures and projects for fostering the economic growth and development of the Atlantic region of Canada." The Board may "prepare. . .an assessment of factors relevant to economic growth in the Atlantic region,. . .keep under constant review appropriate methods of furthering the sound economic development of the Atlantic region, . . . [and] . . .with respect to particular measures or projects that may be referred to i t by the Minister, inquire i n t o , assess and report to the minister upon the feasability of such measures or projects and the effect thereof in relation to the economy of the Atlantic region, and make recommendation to the Minister. . ." The Board to "co-operate with the National Economic Development Board, the National Productivity Council and a l l departments, branches and other agencies of the Government of Canada. . . " Section 14. The Board "may engage on a temporary basis for any period of not more than two years the services of persons having technical or specialized knowledge or any matter relating to the work of the Board". . . Section 16. "The Board is not an agent of Her Majesty. . ." Section 19. Chairman to report annually to Parliament through the Minister. 202 E. Notes From the Debate (1) Major Issues Hon. H. J . Flemming (P.C.: Minister of National Revenue and sponsor) introduced the b i l l as a measure to. make the Atlantic region more attractive to industry by exploring and recommending courses of action to government. The main thrust of the opposition attack on the b i l l was that i t did not go far enough. J.W. Pickersgill (Lib. Bonavista-Twi11ingate) f e l t that the Board badly needed a capital fund to be truly effective noting that the Conservatives had promised such a fund in 1957. John B. Stewart (Antigonish-Guysborough) c r i t i c i z e d the b i l l for not recognizing the seriousness of the problem and not tackling the basic problems of the region head-on. These problems, in his view, were t a r i f f p o l i cy, transport p o l i c y , and the shortage of c a p i t a l . T.C. Douglas (NDP, Burnaby-Coquitlam), agreed on the need for a capital fund and noted that i t was now proposed that the country have four separate economic planning groups: the National Economic Development Board, the Atlantic Development Board (ADB), the National Productivity Council and the Industrial Manpower Adjustment Council. He f e l t this situation might lead to i n e f f i c i e n c y , and he questioned whether the ADB would adequately represent the concerns of the Atlantic region in i t s membership. (2) Quotations (a) Hon. H.J. Flemming (P.C.: Minister of National Revenue and sponsor) The purpose of the Atlantic development board w i l l be to suggest ways and means to improve conditions in the area so that i t w i l l be more attractive to industry. Many people believe that public invest-ment to a more than average degree is necessary to create these condi-tions. . . .A number of public works projects need immediate research . . .It would be responsible for presenting i t s recommendations to the government and co-ordinating the passage of projects approved through the federal departments which would be concerned with them. Hansard, 1962, Vol. I I , p. 2290. In the l i g h t of growing populations and the tendency toward mechanization, i t would be rash to assume that the labour surplus from the Atlantic region could be absorbed in the rest of Canada in the years to come, even i f i t were considered j u s t i f i a b l e as a national policy. . . .In the l i g h t of our present s i t u a t i o n , the role of the Atlantic development board, in a development program for the Atlantic provinces, might very properly be considered to be partly the develop-ment of the national economy with special relevance to the d i f f i c u l t i e s peculiar to the Atlantic region. . . . Hansard, 1962, Vol. I I , p. 2291. 203 (b) Mr. H.J. Robichaud (Lib.: Gloucester) It is to be hoped that the personnel of this new boa - i . . .will go a l l out to have the rest of Canada realize that our systems of transportation, taxation, t a r i f f charges and federal f i s c a l policies are detrim ;tal to the interests and general welfare of the Atlantic region. . . .The Atlantic development board should have not only a pas-sive r o l e , but i t should be empowered to act p o s i t i v e l y , to be free to i n i t i a t e studies and make recommendations on i t s own. . . .Thorough economic planning in the area is a must. . . [H]ow can such a board be effective unless i t is associated with a capital assistance fund administered by special agencies of the federal government. . . . Canada is one of the few countries in the free world where the retarded regions have not received special recognition. . . .1 would urge the government to consider the immediate establishment of a capital assistance fund agency. . . Hansard, 1962, Vol. I I , p. 2293-95. (c) Mr. D. Maclnnis (P.C.: Cape Breton South) . . .1 think we would a l l have to admit that since 1867 a l l of our t a r i f f negotiations have been conducted with a view to the develop-ment of a nation with a central core of strong industrial development. Well, I suggest the time is ripe for giving special consideration to the Atlantic provinces of Canada in future t a r i f f negotiations. . . .[There] must be a co-ordinated plan of development with action taking place in both the public and private sectors of the economy. This means you must have funds to stimulate economic a c t i v i t y . Hansard, 1962, Vol. I l l , p. 2303. (d) Mr. G. Crossman (Lib.: Kent) The maritime provinces, the birthplace of Confederation, made many sacrifices to make Canada a nation and are s t i l l contributing royally of their most cherished p o t e n t i a l , their youth. Hansard, 1962, Vol. IV, p. 2492. (e) Mr. John D. Stewart (Lib.: Antigonish-Guysborough) [In addition to loans, grants, tax incentives and government assistance in site improvement and plant construction, there is a] f i f t h device. . . .1 almost hesitate to mention i t ; I do not wish to arouse some members opposite, because I have noticed that this is a very delicate point with them. I refer to labour migration assistance. Whenever one mentions labour migration assistance, or indeed whenever one mentions the name of the hon. member for Davenport, one can generally count on an eruption from certain seats on the other side of the house. . . You may r e c a l l , s i r , that in the report of the Gordon commission there is a suggestion on pages 412 and 413 that i f various methods for dealing with labour surplus are not ef f e c t i v e , then the government is to intervene to assist people in moving to "towns and places where they may obtain employment. Hansard, 1962, Vol. I l l , p. 2493. 204 F. Significant Amendments (1) An Act to amend the Atlantic Development Board Act. 12 Elizabeth I I , 1963, Ch. 5 This act enlarged the Board to 11 members, and specified that "the membership of the Board shall be constituted in such a manner as to re f l e c t the economic structure of the Atlantic region." The Board was made an agent of Her Majesty. Further, the board was instructed to prepare, in consultation with the Economic Council of Canada, an overall co-ordinated plan for the economic development of the Atlantic region. It was permitted to undertake studies on i t s own i n i t i a t i v e . Most important, an Atlantic Development Fund of $100 million was established, to be used to support projects in need of financing with the approval of the cabinet. (2) The Government Organization Act, 1969 17-18 Elizabeth I I , 1968-69, Ch. 28 This act merged the Atlantic Development Board (renamed Atlantic Development Council) with the Department of Regional Economic Expansion and abolished the Atlantic Development Fund. 205 A. Short T i t l e : Department of Industry Act 12 Elizabeth I I , 1963, Ch. 3. B. Long T i t l e : An Act respecting the Department of Industry. C. Resolution That i t is expedient to introduce a measure (a) to establish a department of industry to be presided over by a minister of industry who shall be appointed under the great seal of Canada, to authorize the appointment of a deputy minister by the governor in council, and to provide for the appointment to the department on a temporary basis of persons having special knowledge of manufacturing industries to assist in the work of the department; (b) to provide for the estab-lishment under the direction of the minister of an area development agency and to provide for the appointment of a commissioner and a deputy commission for area development; and (c) to make a consequen-t i a l amendment to the Salaries Act to provide a salary for the minister. Hansard, 1963, Vol I, p. 801. D. Major Provisions Part I Department Constituted Section 5. The Minister may appoint persons having a special knowledge of manufacturing industries on a temporary basis. Such temporary appointments to terminate on May 31, 1964. Section 6. "The duties, powers and functions of the Minister extend to and include a l l matters relating to manufacturing industries in Canada over which the Parliament of Canada has j u r i s d i c t i o n , not by law assigned to any other department branch or agency of the Govern-mend of Canada." Section 7. The Minister to cause the Department to acquire "a detailed knowledge of manufacturing industries"; to promote their establishment, growth efficiency and improvement; and to develop and carry out programs to assist industries to adapt to change conditions, to develop an unrealized potential, and to promote the development and use of industrial technology. Section 8. Minister to act as Minister of Defence Production. Part II Area Development Section 9. "The Governor in Council may designate as a designated area for the purposes of this Act any d i s t r i c t of l o c a l i t y in Canada that is determined to require special measures to permit economic development or industrial adjustment by reason of the exceptional nature or degree of unemployment in that area." 206 Section 10. Minister empowered to undertake research and investigation in area development and to carry out "programs and projects to improve the economic development of designated areas." Section 11. "Subject to any existing statutory provision, the Governc in Council may authorize and direct departments, branches and agencies of the Government of Canada to undertake in the execution of their respective duties and functions such special measures as may be appropriate to f a c i l i t a t e the economic development of any designated area of the adjustment of industry in that area." Sections 12 and 13. Area Development Agency established and structured. Part III General Section 14. General authority of Minister to include using other agencies of the government, entering into agreements with provincial governments (with Cabinet approval), and consulting and conferring with representatives of industry, labour, provincial and municipal authorities "and other interested persons." Section 15. Minister to establish advisory committees. Section 16. Minister to report to Parliament annually. E. Notes from the Debate (1) Major Issues Right Hon. L.B. Pearson (Lib.: Prime Minister and Sponsor) noted that the measure came hard on the heels of l e g i s l a t i o n estab-lishing the Economic Council of Canada, and stated that the Department of Industry was designed to help to carry out recommendations that might be made by that Council. The main thrust of the opposition's strategy was to suggest that the agency would represent just another bureaucracy. (2) Quotations (a) Right Hon. L.B. Pearson (Lib.: Prime Minister and sponsor) The point and purpose of the department of industry, which i t is proposed to set up, w i l l be to assist in transmitting these various ideas [of the Economic Council of Canada] into effective action. . . The b i l l that we seek leave to introduce is one to create a department which w i l l be for manufacturing industry what the Department of Agriculture is for farmers. . . I can hardly overemphasize the importance which we in the government attach to the creation of this new department. . . . . .Mr. Chairman, I would mention particularly the area development agency which is proposed as an important part of the new department. The areas we are concerned with are those in which 207 unemployment is heavy and chronic in i t s nature, where special govern-ment action is therefore called for in order to encourage economic development or industrial adjustment. . .It w i l l create in Ottawa a small group of people whose special r e s p o n s i b i l i t y , on behalf of the minister of industry, w i l l be to make sure that various federal nolicies are conceived and co-ordinated in ways which w i l l be of maximum help to the areas of maximum need. . . .In this sense the area develop-ment agency w i l l be co-ordinating rather than executive. Hansard, 1963, Vol. I, p. 803 (b) Mr. J.P. Nowlan (NDP.: Digby-Annapolis-Kings) . . .[T]he control of that [Economic Council] is going to l i e in the hands of another minister, the president of the privy council, I think there is a real problem in the relationship of the departments of government. . . But here we have a solution arrived a t , apparently which . . .gives us the worst of a l l worlds. We are to have this council controlled by another minister, the President of the Privy Council, rather than by, say the Minister of Finance. . . Hansard, 1963, Vol. I, p. 805. 208 A Short T i t l e : Area Development Incentives Act 14 Elizabeth I I , 1965, Chapter 12. B. Long T i t l e : An Act to provide incentives for the development of Industrial employment opportunities in designated areas in Canada, and to effect certain related amend-ments in the Income Tax Act. C. Resolution That i t is expedient to introduce a measure to provide for the payment of development grants to assist the establishment of new manufacturing, or processing f a c i l i t i e s and the expansion of existing manufacturing or processing industries in order to improve industrial employment opportunities in designated areas in Canada; for this purpose to establish in the Consolidated Revenue Fund an Area Development Account to which shall be credited an i n i t i a l amount of f i f t y m i l l i o n dollars; and to effect certain related amendments to the Income Tax Act concerning the definition of a manufacturing or processing business and the application of section 71A of that Act in any case where a development grant has been authorized to be paid under the said measure. Hansard, 1965, Vol. I l l , p. 3001-2. D. Major Provisions Development Grants Section 3. The minister may make development grants to applicants establishing a new f a c i l i t y for expanding an existing one, i f he is sati s f i e d "that the proposed expansion of the f a c i l i t y w i l l provide improved employment opportunities in the area." Tax provisions Section 4 Grants to be determined by a formula in the Schedule (not part of the act). Maximum of 20% of capital cost after deducting a l l grants to be allowed as servicing expenditure to be paid to the municipality. Section 5. Area Development Account of $50 m i l l i o n . Section 7. Development grants to be exempt from income tax, but not excluded from capital cost for tax purposes. Limiting Provisions. Section 9. Development grants available only for projects committed by contract before July 1, 1965, and to be brought into commercial production before March 31, 1971. Employment Service Section 11, It is a condition of the grant that the National Employment service be kept informed on manpower requirements of the applicant, and that he discuss long term employment plans with the 209 applicants periodically. Amendments to Income Tax Act, Section 13. A manufacturing or processing business not to include o i l or gas wells, logging, mining, construction, farming, or fi s h i n g . E. Notes from the Debate (1) Major Issues Hon. CM. Drury (Lib.: Minister of Industry and sponsor) noted that the then current measures for area development (providing for tax holidays) had been in existence for two years had been inadequate due to the fact that they favoured businesses able to reach an early prof i t position and discriminated against small businesses especially attractive to low-income areas. Accordingly, more direct assistance was needed. The opposition mentioned the problems of industry being "thioved" from other, s l i g h t l y more prosperous areas adjacent to designated areas under the old system, the p o l i t i c a l implications of the scheme, and the basis on which designation is made. They attacked the new proposals as a giveaway program and suggested some other measures, such as remov-ing the federal sales tax for business in designated areas, and improving the quality of labour pools by means of education. (2) Quotations (a) Hon. C. M. Drury (Lib.: Minister of Industry and sponsor) The l e g i s l a t i o n w i l l provide funds for the payment of development grants. It w i l l establish a formula to determine the amount of grant to be provided to individual enterprises. It w i l l provide that such grants w i l l not be taxable income and w i l l not be deducted from capital costs for tax purposes. It w i l l amend certain provisions of the Income Tax Act concerning the definition of a manufacturing or processing enterprise, and the application of that act to development assistance. There is also provision for close l i a i s o n between the firms receiving development grants and the National Employment Service to ensure that the new employment opportunities are f u l l y exploited and the appropriate training f a c i l i t i e s established. Hansard, 1965, Vol. I l l , p. 3002. (b) Mr. A. D. Hales (PC: Wellington South) . . .Making outright grants is a most unusual way of inducing industries to settle in depressed areas. . . I think we should ask our-selves whether this is constitutionally sound. . . . The area develop-ment program is not o r i g i n a l . It is nothing more than another program which has been copied from the United States. . . . The ARA as i t was instituted in the United States four years ago contained some deep 210 p i t f a l l s into which the Americans have f a l l e n . . . Senator A. W i l l i s Robertson of Virginia said t h i s : "ARA is an unsound spending scheme through which bureaucrats may make or break c i t i e s and towns a l l over the country by granting or withholding federal money." Hansard, 1965, Vol. I l l , p. 3003-4. (c) Mr. M. Saltsman (N.D.P. South Waterloo) Two years ago the Department of Industry made provision for area development, and with disastrous r e s u l t s . . . I think the basis on which the designation was made was wrong, and I am afraid the Minister is considering this c r i t e r i o n in the new l e g i s l a t i o n . Hansard, 1965, Vol. I l l , p. 3005. (d) Mr. Arnold Peters (NDP: Timiskaming) [I disagree with] the trend to ignore the rural communities in favour of the urban centres. This has in part led to our urbanization which has taken place in Canada. But we are talking about communities with a population of 20,000 which have a l l the necessary f a c i l i t i e s already paid f o r . In many of these towns that have been b u i l t on the mining industry the municipal debt was paid off 10 or 20 years ago. We have the f a c i l i t i e s but we do not have the growth and development that other communities have experienced. We do not want to wait until the situation gets as bad as in the Maritimes. . . . Hansard, 1965, Vol. I l l , p. 3016 (e) Mr. J . J . Greene (Lib.: Renfrew South) . . . I think the tragedy of the Province of Ontario l i e s in the fact that development has been centralized in the metropolitan area and in western Ontario and that generally speaking eastern Ontario and Northern Ontario have been l e f t as "the poor South" of this great and rich province. . . . This is the f i r s t time in the history of this dominion that this approach has been taken. As we are in many other areas, we in this country have been behind countries such as I t a l y , the United Kingdom and Sweden with regard to the decentralization of industry. . . As I said, for the f i r s t time the Government of this country has said that this nation should be permitted to grow with some equitable distribution of the sources of production and the sources of employment so that there w i l l not be f i r s t and second rate citizens as there are today, and so that we w i l l at least try to minimize the gap between the mountains and the valleys in our economic picture. Hansard, 1965, Vol. I l l , p. 3017. 211 A. Short T i t l e : Fund for Rural Economic Development Act 14-15 Elizabeth I I , 1966, Chapter 41 B. Long T i t l e : An Act to provide for the establishment of a fund for the economic and social development of special rural development areas. C. Resolution That i t is expedient to introduce a measure to establish a fund in the Consolidated Revenue Fund for the economic and social development of special rural development areas, to provide for payments out of the said fund not to exceed f i f t y m i l l i o n d o l l a r s ; to provide also in conn :tion therewith for entering into agreements with the provinces for comprehensive rural development programs; and to provide further for the establishment and duties of an advisory board and for the administration of the fund. Hansard, 1966, Vol. I l l , pp. 2881-2. D. Major Provisions Section 3. FRED established, maximum commitment to be $50 mi 11 ion. Section 4. Minister may, upon recommendation of the Advisory Board and with cabinet approval , undertake j o i n t l y with the provinces or pay contributions to the provinces, in respect of a comprehensive rural development program in a special rural development area. No agreement to be entered into after March 31, 1970. Section 5. A "comprehensive rural development program is a program, consistinq of several development projects, that is designed to promote the social and economic development of a special rural development area and to increase income and employment opportunities and raise l i v i n g standards in the area, and that makes provision for participation by residents of the area in the carrying out of the program. A "special rural development area is a predominantly rural area within a province that is designated in an agreement. . . to be an area of widespread low incomes resulting from economic and social adjustment problems and that, in the opinion of the Board based on information submitted by the provinces with respect to physical, economic and social conditions in the area, has a reasonable potential for economic and social development." Section 7. "There shall be an Advisory Board consistinq of not more than ten senior o f f i c i a l s of departments or agencies of the govern-ment of Canada to be appointed by the Governor in Council. . ." Section 8. Board to consider and review proposals and make recommendations to the Minister. 212 Board to recommend rejection of a program which, in i t s view, could be better carried out under any other assistance program or without federal assistance. Section 10. Minister to report to Parliament annually. E. Notes from the Debate (1) Major Issues Hon. Maurice Sauve (Lib.: Minister of Forestry and sponsor) cited the need for a measure to plug the gap l e f t by the fact that programs in addition to ARDA were needed to aid the non-agricultural sectors of rural economies, and the fact that problems were so acute that no ordinary program would bring results fast enough. This measure was to provide massive aid through a coherent and comprehensive approach.. The main concerns for the opposition were that resources would not be enough to meet the objectives, that a program to set up industries was not necessarily the way to help agricultural areas, and that while ARDA was subservient to the Canadian Council of Resource Ministers (which assured i t s c o n s t i t u t i o n a l i t y ) , FRED would not be. (2) Quotations Hon. Maurice Sauve (Lib.: Minister of Forestry and sponsor) . . . [ I ] t is obvious from the s t a t i s t i c s and from detailed studies carried out that many rural areas have economic, social and resource use problems of such magnitude that extraordinary measures w i l l be required to solve them. The fund for rural economic development is one of these extra-ordinary measures. It is designed as a special weapon to help deal with areas in which rural development requires a coherence and compre-hensive approach. . . . It is essential to assert that the government does not want the fund to be used in the form of transfers. . . . The federal government w i l l retain considerable i n i t i a t i v e in a number of ways: 1. The federal government w i l l participate in the research and studies. 2. Direct federal programs w i l l be required to implement some parts of the plan. 3. The federal government w i l l j o i n t l y participate only in those parts of the program which are believed to be in the national in t e r e s t , and the p r i o r i t y attached to them w i l l be expressed in the degree of federal participation. . . . The board w i l l assure that interdepartmental co-ordination is achieved to implement the plans, and that a number of federal departments are actively engaged. Hansard, -1966 , Vol. I l l , p. 4938-41. 213 ( b ) M r . R o s a i r e G e n d r o n ( R i v i e r e - d u - L o u p - T e m i s c o u t a ) . . . We a l s o have some c o n c e r n w h i c h i s s h a r e d by a l l o u t l y i n g c o m m u n i t i e s , o r t h e l e s s f a v o u r e d a r e a s , w h i c h now s e e g r e a t e c o n o m i c c o n c e n t r a t i o n s t a k e p l a c e away f r o m t h e i r t e r r i t o r i e s , and i n r e l a t i o n t o t h e p r o b l e m s o f a g r i c u l t u r e , on w h i c h a man c o u l d o n c e make h i s own l i v i n g . . . [now r e l e a s i n g ] a g r e a t number o f f a r m e m p l o y e e s who c a n n o t f i n d e m p l o y m e n t i n o u r a r e a s and i n c r e a s e t h e h a e m o r r h a g i c o u t f l o w t o w a r d t h e l a r g e r s e c t o r s , w h i c h d e p r i v e s o u r s o c i e t y o f t h e d y n a m i c e l e m e n t s f o r t h e d e v e l o p m e n t o f o u r t e r r i t o r y . We a r e g r e a t l y w o r r i e d b e c a u s e we know t h a t , a t t h e p r e s e n t t i m e , i n d u s t r i a l d e v e l o p m e n t i s made i n r e l a t i o n t o g r e a t c o n c e n t r a -t i o n s o f p o p u l a t i o n and a l s o t h a t u n i v e r s i t i e s s e t t l e w h e r e t h e r e a r e r e s e a r c h c e n t r e s , t h u s a c c e n t u a t i n g t h a t m i g r a t i o n o f y o u n g p e o p l e f r o m t h e r u r a l a r e a s t o t h e c i t y and c r e a t i n g g r e a t p r o b l e m s We unde \,tand t h a t t h e i n d u s t r i a l i s t i s n o t r e s p o n s i b l e f o r t h e s o c i a l p r o b l e m s he c r e a t e s b u t , i n t h e e n d , h o w e v e r , t h r o u g h h i s t a x e s and h i s p a r t i c i p a t i o n t o t h e f i s c a l and e c o n o m i c l i f e o f t h e c o u n t r y , he f o o t s t h e b i l l . One may w o n d e r w h a t s o c i a l and e c o n o m i c p r o b l e m s t h o s e e c o n o m i c f o r c e s , l e f t a l o n e and a i m i n g t o w a r d t h a t g r e a t e r c e n t r a l i z a t i o n , c r e a t e a t a l l 1 e v e l s . A i r and w a t e r p o l l u t i o n , t h e e v e r - i n c r e a s i n g c o s t o f e x p r o p r i a -t i o n i n l a r g e c i t i e s f o r r o a d c o n s t r u c t i o n , u n d e r g r o u n d and a i r t r a f f i c , f i n a l l y t h e c r o w d i n g i n g r e a t c i t i e s o f o f t e n b a d l y p r e p a r e d p e o p l e f r o m r u r a l a r e a s . What does t h a t b r i n g a b o u t as s o c i a l and m o r a l p r o b l e m s ? What i s t h e g e n e r a l c o s t t o s o c i e t y and w h a t i s t h e p r o b l e m w i t h r e g a r d t o t h e s t a n d a r d o f l i v i n g and t h e j o y o f l i v i n g ? W i l l i t be n e c e s s a r y i n t h e e n d - ~ a n d t h a t i s t h e q u e s t i o n b e i n g a s k e d i n r u r a l a r e a s - - t o e n c o u r a g e p r o g r e s s w h e r e i t i s , w h e r e i t c a n happen o r i f i t w i l l be n e c e s s a r y t o s t o p t h a t d r a i n and t r y t o c r e a t e a t y p e o f e c o n o m i c s t a b i l i t y w h i c h w o u l d be b e t t e r d i s t r i b u t e d t h r o u g h -o u t C a n a d a ? In s h o r t , t o remedy u n e m p l o y m e n t i n r u r a l a r e a s , w i l l i t be n e c e s s a r y t o e n c o u r a g e o n l y a p o l i c y o f manpower m o b i l i t y ? W o u l d i t be a i m i n g t o o h i g h and t a x i n g t o o much o f o u r human and e c o n o m i c r e s o u r c e s t o w a n t t o b e t t e r e c o n o m i c s t a b i l i t y t h r o u g h o u t t h e c o u n t r y ? T h o s e a r e t h e q u e s t i o n s b e i n g a s k e d and t h e y w o r r y t h e r u r a l a r e a s w h i c h , i n s p i t e o f a l l , w a n t t o b u i l d , t o e x p a n d . F a t h e r P i e r r e s a i d : " - - t h a t a w o r l d g o v e r n e d t o p l e a s e t h o s e who a r e happy and n o t t o f r e e t h o s e who s u f f e r u n j u s t l y i s n e c e s s a r i l y doomed t o h a t e . " One may wonder w h a t t h e f e e l i n g o f f r u s t r a t i o n f e l t i n r u r a l a r e a s a b o u t t h a t c o n s t a n t m i g r a t i o n o f t h e i r p r i m a r y f o r c e s c a n r e s u l t i n a t t h e p o l i t i c a l l e v e l f o r t h e f u t u r e o f t h e c o u n t r y . I f some demagogues r e a l l y knew how t o c a p i t a l i z e on t h o s e f e e l i n g s o f f r u s t r a t i o n , t h e y c o u l d s o m e t i m e s l e a d us i n a d v e n t u r e s w h i c h w o u l d h a v e t e r r i b l e r e p e r c u s s i o n s on o u r c o u n t r y ' s f u t u r e . I s u b m i t t h a t , i n any c a s e , we w i l l have t o pay t h e p r i c e o f p r o g r e s s o r r e c e s s i o n , and by r e c e s s i o n , I mean l e t t h i n g s f o l l o w t h e i r 214 own course and do nothing to restore the economic balance to which I referred a while ago. It would be interesting to have exact figures on what I c a l l the price of recession. What is the social and economic cost of this youth migration? People, speaking in a popular way of this centraliz-ation toward large centres, translate this thought by saying: water goes to the river and developments of large centres invite governments to invest the necessary funds for public works and other services, while the same services are refused to smaller centres because i t would not be profitable. But shall we allow—and I return to my example— an extremely f e r t i l e land to be flooded and carried away into a single gulf, or shall we be able to embank i t to allow i r r i g a t i o n of i t s shores for the benefit of a l l the areas? The whole problem concerns the necessity to set up an economic balance throughout the province, throughout the country. This bad distribution leads directly to chronic and lasting unemployment in less favoured areas. There is also the danger that this unemployment, this destitution may lead to intangible social calamities, when there are so many oppor-tunities and so much good w i l l that have only to be put to good use, so much wasted talent and frustrated i d e a l s , which need only a l i t t l e hope and the p o s s i b i l i t y to solve these problems, and instead of being a burden, l e t alone a shame for society, they can become an important asset capable of contributing to the welfare of the country. It would be interesting to know exactly the s o c i a l , moral and economic problems which this human stream, poured as in a singV- g u l f , has involved for ' big c i t y . What is the exact cost of this over-crowding of popul -n and public investments necessitated by i t s greater t r a f f i c ? It i s easy to conclude that the economic forces l e f t to them-selves develop l i k e a cancer k i l l i n g the best c e l l s of our society, and developing great urban centres which are too large for man and cannot answer his deepest aspirations. A survey made in Paris among 7,700 families gave the extra-ordinary result that 80 per cent of them had concluded that i f they had the choice, they would prefer to l i v e in the country; 10 per cent were indifferent and 10 per cent were happy with their l o t . It may be easy to conclude that the large amounts invested in housing, which do not really meet the wishes of the people and to say that, one day, we might want to go back to nature, to own property where we could have a garden, a swimming pool, and other f a c i l i t i e s , that the dwellings we conceive at a heavy cost might become slums be because a l l those who w i l l have the opportunity to get out and the necessary income to do so, w i l l leave. Therefore, i t is necessary to reconsider the philosophy of urban renewal and to promote instead a better distribution of municipalities and also their opportunity for a more harmonious development. . . . I proposed,as president of Quebec union of Municipalities, the establishment of a department for rural development at both federal and 215 provincial levels. I admire the work performed by the minister and I am firmly convinced that this whole problem of rural development and war against poverty is every body's problem, in short the problem of every department, every crown corporation and every individ u a l . When a war is threatening, is everyone not urged to contribute to i t s cost and to share in i t s problems? I say that this department of national development should be headed by the Prime Minister himself, because only the Prime Minister can effect the required co-ordinated, among a l l the departments, ensure the centralization of their a c t i v i -ties so as to make them realize that i t is not enough to administer at best their own department, but that everyone should concern himself with promoting a more harmonious development of our economic a c t i v i t i e s . This responsibility should be shared equally by a l l crown corporations and companies, such as the General Financing Corporation, the C.F.U., whose mission should be not only to bring about a general improvement in their particular f i e l d but to implement regionalization and decentralization. If this is nobody's concern and efforts are dissipated, this serious problem w i l l never be solved. . . . Municipal regrouping must also be promoted to counter balance the large centres and to enable them to secure the equipment and the services required for desirable development. The dispersion of industry also represents a most urgent problem. This dispersion must be remedied by putting a premium on amalgamation, reconversion, plant building, to be paid automatically and dir e c t l y to the contractor who creates employment, and thus emphasize premiums on employment instead of premiums on unemployment. Additional assistance should also be given generously to equip and organize urban services in centres l i k e l y to bring about industrial development. The establishment of regional industrial development organiza-tions should be promoted. . . . Employees have well attended training courses, and i t may be the most interesting indication to observe the dynamism of those people. . . Everyone understands today the problem of agriculture cannot be solved unless economic s t a b i l i t y i s arrived at throughout the t e r r i t o r y , because a farmer needs that marketing; he needs urban centres growing within his te r r i t o r y which become a market for his products. Our territory is very well endowed with assets and p o s s i b i l i t i e s . Father Lebret said that we have a lot to learn from what we call under-developed countries. Such is the case for the areas whose fundamental qualities must be revalorized and which must meet the chal-lenge of our ancestors who wanted to make of those 30 acres of ice and snow the second most industrialized country in the world and the one with the highest standard of l i v i n g . . . . Hansard, 1966, Vol V. 4977-79. 216 (c) Mr. Arnold Peters (N.D.P.: Timiskaminq) . . . The ARDA approach i s one that can be supported by people l i v i n g in the rural environment -nd those in the urban communities. If the establishment of a manpower department has any vision such as that associated with ARDA, i t w i l l create a brighter picture for people in urban centres. Hansard, 1966, Vol. V, p. 4946. (d) Hon. Alvin Hamilton (PC: Ou'Aopelle) . . . My proposal is that we have to have some type of federally operated agency to carry out the purposes of ARDA, and ARDA includes this special area of rural development. . . I would suggest i t be called the national land and water services agency. Hansard, 1966, Vol. V, p. 4944. 217 A. Short T i t l e : Government Organization Act, 1969 B. Long T i t l e : Not applicable. C. Resolution Not available (debates not indexed). D. Major Provisions Part V. Department of Regional Economic Expansion Section 21. Department constituted. Section 23. Minister's powers to include " a l l matters over which the Parliament of Canada has j u r i s d i c t i o n , not by law assigned to any other department, branch or agency of the Government of Canada, relating to economic expansion and social adjustment in areas requiring special measures to improve opportunities for productive employment and access to those opportunities." Other duties related to economic expansion and social adjustment to be added by law. Section 24. Cabinet to designate special areas. Section 25. The minister to formulate plans for the economic expansion and social adjustment of special areas, and to co-ordinate the implementation of these plans within the government. Minister to make provision for co-operation with the provinces, and participa-tion of residents of special areas. Section 26. Minister, with cabinet approval, may enter into agreements with provinces for formulating and implementing plans for special areas. Minister may pay contributions to support provincial schemes in special areas, or j o i n t l y incorporate an agency for this purpose. Section 27. Minister to be able to agree with a province to pay a grant or loan to cover part of the capital cost of establishing, expanding or modernizing an enterprise, provided i t is essential to the successful implementation of a plan. Section 28. Minister to be able to make grants and loans directly to persons with cabinet approval. Atlantic Development Council Section 29 Council constituted with eleven members. Section 30 Council to re f l e c t the economic structure of the Atlantic region. Section 30 Council to advise the Minister, but not to i n i t i a t e investigations. General Section 40 Minister to report to Parliament annually. E. Notes from the Debate: not avail abl e "(debates not indexed) A. Short T i t l e : Regional Development Incentives Act. 17-18 Elizabeth I I , 1968-69, Ch. 56. 218 B Long T i t l e : An Act to provide incentives for the development of productive employment opportunities in regions of Canada determined to require special measures to f a c i l i t a t e economic expansion and social adjustment. C. Resolution Not available (debates not indexed). D. Major Provisions Section 3. Designation of regions: the "Governor in Council, after consultation with the government of any province or provinces, may for the purposes of this Act by order designate as a designated region, for the period set out in the order, any regions, comprising the whole of that province or those provinces ar any portion thereof not less than 5,000 square miles in s i z e , that is determined to require special measures to f a c i l i t a t e economic expansion and social adjust-ment. " C r i t e r i a for designation: "(a) existing opportunities for productive employment in the region are exceptionally inadequate; and (b) the provision of development incentives under this Act for the establishment of new f a c i l i t i e s or the expansion or modernization of existing f a c i l i t i e s in the region w i l l make a sign i f i c a n t contribution to economic expansion and social adjustment in the region." Section 4. Types of incentives. Two types: (a) primary development incentive for the establishment, expansion or modernization of a f a c i l i t y and (b) secondary development incentive i f the project w i l l result in the manufacture of a new product for the enterprise. Section 5. Maximum amounts. For primary development incentives, the maximum amount is to be the lesser of 20% of approved capital costs or^$6,000,000. For secondary development incentives, the maximum amount is to be 5% of approved capital costs, plus $5,000 for each new job created d i r e c t l y . The maximum total of both primary and secondary development incentives is to be the lesser of $30,000 for each new job, $12,0005000, or one half the approved capital costs. Section 6. Determination of amount of incentive. In determining the amount of an incentive, the Minister may consider: the probable contribution of the f a c i l i t y to economic expansion and social adjust-ment; the probable cost to provinces and municipalities of services to be supplied; the amount of other federal, provincial or municipal assistance to the project; the probable costs of pollution prevention or control; in the case of a processing operation, the adequacy of the 219 resources to be exploited; an:' "such other factors relat'ng to the economic and social benefits an'' costs of the f a c i l i t y as the Minister considers relevant." Section 8. 20% of capital costs allowable for servicing expenditures to be paid to the municipality or province. Section 9. Projects must be brought into production before December 31, 1976. Section 12. Development incentives to be exempt from income tax. Section 13. It i s a condition of the payment of a development incentive that the applicant w i l l keep the Department of Manpower and Immigration informed of his employment needs, that he w i l l discuss with that Department his long-term plans for recruitment and training of employees, and that he w i l l co-operate with that Department in programs of counselling, t r a i n i n g , adjustment, mobility and place-ment. Thi. condition to terminate with the f i n a l payment of incentive or on December 31, 1976. E. Notes from the Debate: not available (debates not indexed) 

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