Canada’s Federal System

Is it an obstacle or an opportunity to a green economy?

What is Federalism?Federalism is a system of government where

two levels of government exist, each sovereign in its sphere of jurisdiction

The federal or central level takes care of all of those things that are common to the whole of the country while the provinces have jurisdiction over those things that are of local concern

Main Features1) There are two sovereign levels of

government created & protected by the Constitution

2) Each level of government has powers that are guaranteed by the Constitution

3) The central government will receive the external signs of sovereignty & economic powers while the rest is subjected to a process of bargaining & power allocation

4) Each level of government is given autonomous revenue sources so that it can finance it’s operation

Federalism is to be contrasted to:The Unitary system

A single sovereign government with the local governments subordinated to the central authority

The Confederal system The central government is subordinated to the

other member-states who retain full sovereignty

Federalism is usually adopted in countries that:Display differences of climate, geography,

religion, language, culture & economies                                        

Multinational & multicultural states that wish to preserve these characteristics  

Are too large for a single government to handle        

Are composed of regions that share a common external threat

BenefitsProvides a framework &

governance on interprovincial areas & those of mutual interest

Provides an opportunity for geographical wealth distribution

Allows provinces to retain a level of autonomy over local environmental & economic issues

Obstacles Diffusion of political accountability & responsibilityCreates the possibility of dependence on resource

wealth of other areasSeparate jurisdictions make policy implementation

difficult & can create jurisdictional competition“command & control” approach very difficult

Increases competition for prestige & blaming between political actors and levels of government

Can be expensive because of duplicationCan create interprovincial competition to decrease

business costs

Basis for Canadian FederalismOriginally called the British North America

Act of 1867, it was renamed the Constitution Act of 1867 in 1982

The is a division of powers outlined in the Constitution At the outset of confederation, 16 enumerated

powers in section 92 were given to the provinces with everything else—the residual powers—left to Ottawa, in section 91

The constitution gave Ottawa the power to levy any mode or system of taxation

A Division of PowersFederal Powers Provincial Powers Concurrent Powers

Trade & Commerce Direct taxation within the provinces

Agriculture

Any form of taxation Public lands Immigration

National defence Hospitals & health care

Old age pensions

Banking Municipal institutions

Aboriginals Education

Criminal law Property & civil rights

Interprovincial transportation & communication

Canadian Federalism & the Environment “A Nuanced Approach to the frame work”

Overlap between inter-governmental powers can cause uncertainty & ambiguity about authoritative limits

Canada has a history of being a resource-based economy (Staples Theory)

Political interpretations of what a “Green Economy” means differ

Federalism allows a Framework for Retaining Local Autonomy

Section 109 in the Constitution Act gives the provinces ownership of all lands, mines & minerals in the public domain within their borders

Section 92A updates & expands the powers granted in Section 109

Federal jurisdiction has not proven an impediment to provinces if they so please to pass legislation to protect the environment

Practical Obstacles for Provinces in creating a Green Economy

Reliance on resources as a revenue base

No extra-provincial effect for individual province's laws (ex. air pollution)

Municipalities are subordinate to the provinces

The Obstacles the Federal Government will face

Diffuse Methods of Control makes a "command & control" approach difficultOwnership issuesIndirect regulation from the federal level

(fisheries & shipping)Political cost diffusionGovernments rationally like to do things that

increase chance of re-electionCopenhagen fiasco

How the Federal Framework can be both a Benefit and an Obstacle

Canada Wide Accord on Environmental Harmonization, 1998

The Five Year Review in 2003

The Red Chris ProjectA gold and copper mine that is planning to

open in north-western BCLocated in an area called “Scared

Headwaters” (belonging to the Tahltan First Nations)

Within the area, three major salmon-bearing rivers (Department of Fisheries & Oceans responsibility)

A case where the Canadian Environmental Assessment Act (CEAA) is going to be going under review because of this project.

Why such a big deal?The problem of duplication : The Department

of Fisheries & Oceans did not do their own assessment2005ENV0071-000759.pdf

The federal government violated Section 91(24) by not consulting the First Nations people

As well, Section 21 in the Canadian Environmental Assessment Act (CEAA) was violated.

SummaryFederal & Provincial

authorities need to harmonize their respective review processes

Avoiding costly duplication & uncertainty was the key issue in this case for both levels of government and business

Was it a win for a greener economy?Revision of the

CEAAA ruling was made

recently on this case between MiningWatch Canada & the Federal government

ConclusionLimited legislative & taxation powers reside at

the local level resulting in limited self-determination for local communities

How one interprets the green economy will determine to what extent they see Canadian Federal system as an obstacle or an opportunity.

Living with a historical legacy The ambiguity & silence of the Constitution on

certain issues & jurisdictional conflict makes effective policy implementation difficult

ReadingsFederalism, Federative Systems, and Federations:

The United States, Canada, and IndiaDouglas V. VerneyPublius, Vol. 25, No. 2 (Spring, 1995), pp. 81-9

Rand Dyck, Canadian Politics: Critical Approaches. Canada: Thomson Nelson, 2008.

Green Party, “Infrastructure and Communities”; available at http://greenparty.ca/node/13311; Internet; accessed 25 January 2010.

Discussion QuestionWhat is the best way to overcome the

disparity between municipal responsibilities & their revenue base? Do you agree with the Green party’s idea that the federal government should fund municipal green initiatives?