At the time this article was
written Ron MacDonald was Member of Parliament for Darmouth.
The idea of a union of the Maritime
provinces is older than Canada itself. For generations business, academic and political
leaders in New Brunswick, Prince Edward Island and Nova Scotia have debated the
relative merits of some sort of economic or political union. Various factors
throughout the region’s history have prevented a union. This article looks at a
broadly based new movement to bring the provinces together in an economic and,
potentially, political union.
Changing global trading patterns
and the evolving nature of Canadian federalism are a clear impetus towards
greater provincial co-operation. The outcome of the Quebec referendum has put
this country on a path for change. Maritimers must not stand idly by while
decisions are made for them. We must work together to ensure our rightful place
in a strong and united Canada. A brief look at the history of the region
provides a proper context for the current Maritime union debate.
The Treaty of Utrecht of 1713
decreed that the Maritime provinces, then a single territory known as Acadia,
was to be British. However, this hegemony was not to last. In 1763, Cape Breton
became a separate province with Prince Edward Island following in 1789. New
Brunswick was established in 1784 and with the re-annexation of Cape Breton to
Nova Scotia in 1820, the present-day provincial borders were created.
Prior to Confederation and especially
in the mid-1800s, the Maritime provinces prospered on an economy based on
staple resources such as timber and the fisheries as well as shipbuilding and
coal production aided greatly in later years by the Reciprocity Treaty with the
United States. Unfortunately, the economic strength of the region would soon be
eclipsed by technological changes. An economy based on coal and timber was
doomed to failure as steam engine trains and steel ships became the standard of
the day for transportation. This economic situation was further complicated by
the realization that the vitally important Reciprocity Treaty would not be
renewed in 1866 as well as the fact that there was little hope for renewal of
the British Imperial Preference treaty. The region faced an uncertain economic
future.
Throughout this period, assorted
efforts were made to unite the three provinces into a single political entity.
Indeed, in the 1850s, the respective governors of the provinces proposed a
union but found little support among citizens of the region or the ruling class
of the mother country. A decade later, the controversy surrounding the creation
of the Intercolonial Railway, in which the Maritime provinces believed they
were ill-treated by the Canadians, fostered a new set of discussions on
Maritime Union. A conference was scheduled for Charlottetown in 1864.
The Canadian government requested
an opportunity to send delegates to this meeting to discuss a larger union. It
was at this conference that the nation we know today as Canada was born. As
Maritime historian J. Murray Beck noted in The History of Maritime Union: A
Study in Frustration, it was "the blandishments or the logic of
the Canadians that prevailed at Charlottetown". The delegates made the
fateful decision to defer the question of Maritime Union and, after several
days of presentations by the Canadians supporting a larger union, in the end
unanimously affirmed their desire for a larger union. Many believed that a
"strong central government seemed a necessary buttress against the
truculence below the border".
In 1867 Confederation began with
the provinces of Ontario, Quebec, New Brunswick and Nova Scotia. The new
federal government was intent on opening the western territory and creating a
national economy, complete with a national railway system, from sea to sea. It
was thought that the Maritimes resource industries and manufacturing sector
would profit from this new central Canadian market. Initially, this seemed to
be the case and the Maritime economy prospered after Confederation. The
Intercolonial Railway opened up new opportunities for the region and the
Maritimes achieved their highest level of economic activity in the early 1870s.
Still, the changing nature of the world economy soon took the wind out of the
sails of the Maritime development and from the mid-1870s until close to the
turn of the century, the region endured a period of poor economic growth. It
also marked, for the first time, the large-scale out-migration of skilled
workers to stronger job markets in central Canada and New England.
The introduction of the so-called
"National Policy" in 1887 did little to improve the relative economic
position of the Maritime provinces. Indeed, as the 1970 Maritime Union Study
noted; "in many respects...the economy of the Maritime provinces tended to
be competitive with, rather than complementary to, that of central
Canada." The high tariffs inherent within the National Policy also badly
damaged the regions main exports such as shipbuilding at a time when they were
struggling to adapt to new technologies.
From 1896 until the first World
War, Canada experienced unprecedented economic and population growth, growth
which unfortunately largely passed the Maritime provinces by. This time period
also began a trend which has essentially continued to this day, specifically a
concentration of large scale manufacturing in central Canadian urban
communities. At a time when thousands of immigrants settled in the Prairies the
Maritime provinces saw only limited population growth and a continued
out-migration of skilled workers. The present day economic integration of the
country was largely completed by this time but, as the 1970 Maritime Union
Study concluded, "the integration had come only to operate from the St.
Lawrence Valley to the Pacific Coast. The Maritimes had not built up any
substantial trade with the rest of the country". The few bright lights
being the Nova Scotia iron, steel and coal industries.
This lacklustre economic
performance sparked renewed interest in Maritime Union but the outbreak of
World War I quickly focused the region’s attention on more pressing matters.
After the War, development in central and western Canada resumed its frantic
pace while the Maritime manufacturing base, much of which had been converted to
military production, faced a difficult adjustment process in a largely stagnate
economy. This growing economic disparity once again led to complaints from the
region that it was not benefiting from Confederation. The federal government
responded to this so-called "Maritime Rights" movement, as federal
government’s often do, by creating a Royal Commission to investigate the
matter.
In 1926 the Royal Commission on
Maritime Claims, commonly known as the Duncan Commission, was created by
Mackenzie King who, in his letter to the Commission’s members, suggested that
"the question [of Maritime claims] is not a new one". The
Commission’s report acknowledged the glaring economic disparities between the
Maritimes and the rest of Canada and made several recommendations as how best
to address the situation. These included an increase in federal subsidies to
the region, a reorganization of the ports of Halifax and Saint John, a decrease
in freight rates on western movements, and subsidies to Nova Scotia coal
intended to make it more competitive in central Canadian markets. So began
close to 70 years of regional economic development policy which has yet to show
much real success.
Not surprisingly, the Great
Depression of the 1930s had an extremely negative impact on the region’s economy.
While the wartime economy essentially eliminated unemployment and utilized most
of the region’s industrial capacity, it did not result in increased sustained
industrialization in the post-war economy. Indeed, the dynamic growth
throughout Canada which once more took place following the war offered little
benefit to the Maritimes. The population of the region grew at a fraction of
the national average and personal per capita income increased largely as a
result of increased federal social spending.
In 1964, New Brunswick Premier
Louis J. Robichaud, now a Liberal Senator broached the subject of Maritime
Union at a First Minister’s Conference at the Confederation Centre in
Charlottetown. While not proposing Maritime Union outright, Robichaud suggested,
on the centennial of the Charlottetown meeting which forged Confederation, that
the idea deserved another look. Robichaud took considerable political risk by
proposing a second look at the issue. New Brunswick Acadians have traditionally
been leery of Maritime Union as they believed their culture would be better
served in a province where they made up a substantial portion of the
population. Premier Robert Stanfield of Nova Scotia and Premier Alex Campbell
of Prince Edward Island agreed with Robichaud’s proposal and the three
provinces commissioned the Maritime Union Study. The resulting detailed study
proposed political union yet despite initial optimism the idea faded once again
from public and political consciousness.
The rationales supporting Maritime
Union have never disappeared. Indeed, some have argued that Maritime Union
makes more sense now than it ever has.
It is clear to most, if not all,
political observers that for generations the legitimate and common concerns of
Maritimers have been diluted on the national stage by parochialism and
political infighting. The result has been successive band-aid solutions offered
by the federal government to systemic problems in the region’s economy. A
litany of successive acronyms from DREE to ACOA have been presented by the
federal government to act as a catalyst for sustainable economic development.
Although the ACOA philosophy of targeting small to medium-sized businesses is
an overdue step in the right direction, little true growth has been achieved
and some have argued that these regional agencies have in fact inhibited
private sector growth.
In a similar vein, federal social
programs have allowed the region to maintain an over-reliance on seasonal,
resource-based jobs. The ongoing cutbacks to federal expenditures which most
people, regardless of their political affiliation, agree are necessary to put
our financial house in order, could have a very real impact on the
sustainability of our economy. The new Canada Health and Social Transfer
system, announced in the February 1995 federal budget, will provide block
funding to the provinces for a range of programs where the federal government
once used matching dollars to establish programs with national standards. While
there are still mechanisms in place to provide for national standards, the
financial realities in the provinces, especially the Maritime provinces, could
very well see the development of a patchwork of social programs throughout the
country. It is quite clear that a unified Maritimes would spend less on
administration in areas like health and education and be able to direct more
resources to actual programs. There is little reason to maintain three separate
regimes for areas such as motor vehicle registration or health-care
administration or, for that matter, more than 140 provincial politicians in an
area with a population less than that of Metropolitan Toronto.
The provinces are becoming
increasingly powerful as the federal government decentralizes control in a
number of fields, mostly as a result of a financial crunch rather than any
ideological dogma. Premier Frank McKenna of New Brunswick quickly recognized
that regional development cannot be left primarily to the federal government
and during his mandate has taken aggressive steps to attract new business to
the province. As a result, New Brunswick has become a world leader in
telecommunications and thousands of new, direct jobs have been created. It is
this kind of initiative that the Maritimes must show to develop a place in the
post-industrial economy.
Another factor which supports the
union of the Maritime provinces is the multinational trading blocks which are
expanding throughout the world. The North American Free Trade Agreement (NAFTA)
will soon expand to include Chile, with the door open to other Central and
South American nations. The European Union continues to move toward greater
integration including a single unit of currency. The possibility of some sort
of NAFTA-EU merger has also been bantered about. These trading blocks are
changing decades old trading patterns. For Maritimers, this has meant and will
continue to mean a return to the old north-south trade with the United States
and New England in particular as well as opening up new markets in central and
south America. Unified economic development policies and a lower cost of
government and, therefore, lower tax burden for business, can only serve to
make our economy more competitive in these markets.
Perhaps the most pressing issue
facing the region and the country as a whole remains the Quebec question. The
narrow federalist victory in the October referendum makes it obvious that this
question is far from resolved. While few would look forward to either another
referendum or an attempt at constitutional agreement, it seems sadly clear that
either or both may be unavoidable. Since the Constitution Act of 1982, a
great deal of national energy has been expended in addressing the idea of
bringing Quebec back into the constitutional fold. While few doubt that Quebec has
legitimate concerns as it attempts to protect its unique culture, the
historical record clearly indicates that it is the Maritimes which has
economically benefited least from the Canadian confederation, not the province
of Quebec. Indeed, the less charitable would argue that Canada has been
consumed by attempting to keep Quebec content in the federal structure for
decades, occasionally to the detriment of the rest of the federation.
If or when the constitutional
debate begins anew, it will be vital that the Maritime provinces speak as one.
Our interests are similar, if not identical, yet are seldom presented as such.
As three separate entities each
with a fraction of the population of most other provinces, it is argued by some
that individually the Maritime provinces lack the moral authority to scuttle
any constitutional agreement, regardless of its impact. As a united area with
close to 2-million people, we will have a stronger voice and be able to better
represent our interests in any negotiations leading to a renewed confederation.
The counter argument is, of course, that three provinces carry more weight than
one. But federal governments of the day are often skilled in the game of divide
and conquer and the Maritime provinces have seldom stuck together during
federal-provincial negotiations on any number of matters.
The Maritime provinces are poised
for an economic renaissance in the post-industrial, knowledge-based economy.
Our location is no longer a hindrance but is instead an asset as a virtual land-bridge
between NAFTA and the EU. We have a strong technological base thanks to the
region’s numerous universities, an educated and motivated workforce, and a
quality of life second to none. But to achieve our economic and social
potential and protect our quality of life will require vastly increased
co-operation, lean administration, and a focus on economic development. As
Maritimers we have much more which unites us than separates us. The beauty and
resources of the region can be shared by us all, from the splendour of the
Miramichi River in New Brunswick to the beaches of Prince Edward Island to the
Cape Breton Highlands in Nova Scotia. A great many challenges face the region
but Maritimers must not fear the future but rather work together to ensure our
rightful place in it.