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This page intentionally left blank
Canadian Annual Review
of politics and public affairs
2000

E D I T E D B Y DAVID M U T I M E R

Published with the support of York University by

University of Toronto Press
Toronto Buffalo London
 www.utppublishing.com
© University of Toronto Press Incorporated 2006
Toronto Buffalo London
Printed in Canada

ISBN 978-0-8020-9089-8 (cloth)

ISBN 0-8020-9089-3 (cloth)

Printed on acid-free paper

Library and Archives Canada Cataloguing in Publication

Canadian annual review of politics and public affairs.

1971-
Continues: Canadian annual review, ISSN 0068-8215.
Issue for 2000 edited by David Mutimer.
ISSN 0315-1433
ISBN 0-8020-9089-3 (2000 issue)
1. Canada - Foreign relations - 1945— Periodicals.
2. Canada - Economic conditions - 1945— Periodicals.
3. Canada - Politics and government - Periodicals.
FC2.C36 320.971'064 C71-2093

This book was published with the support of York University.

University of Toronto Press acknowledges the financial assistance to its
publishing program of the Canada Council for the Arts and the Ontario
Arts Council.
University of Toronto Press acknowledges the financial support for its
publishing activities of the Government of Canada through the Book
Publishing Industry Development Program (BPIDP).
Copies of the Canadian Annual Review published annually for 1960 to
1982 and 1984 to 1999 are available.
Contents

Contributors xi

Preface xiii

Canadian calendar xv

Editor's introduction - the year in review 3

The federal government, politics, and national institutions

by Robert Everett 9
ELECTION 2000 12
Early hints of a fall election 12; Birth of the Canadian Conservative
Reform Alliance 13; A new day dawns 15; By-elections: enter the
leaders 18; Fine-tuning the cabinet 18; Crossing the floor: expul-
sions and defections 19; The election call 20; The field
forms 21; Parties and platforms 21; On the hustings 23; The
debates 24; Electoral outcome 25; Fund-raising and
expenditures 27; Aftermath 28
NATIONAL INSTITUTIONS 30
Senate 30; Auditor General 30
E C O N O M I C I N D I C A T O R S AND ISSUES 32
Economic indicators 32; Budget 2000 32; The mini-budget 33;
The Bank of Canada 34; Shake-out in mass media and
telecommunications 34; Bailout for NHL teams? 37
FEDERAL-PROVINCIAL RELATIONS
The Clarity Bill 37; Health-care accord 38
vi / CONTENTS

MAJOR POLICY FIELDS 39

A thin legislative agenda 39; Airline industry rules 40;
Licensing of the Canadian Broadcasting Corporation 41;
Same-sex legislation 42
THE PASSING OF PIERRE T R U D E A U 43

SCANDALS AND CONTROVERSIES 44

Management of Human Resources Development Canada 44;
The Prime Minister's riding 45; Lawsuit against Mr Day 47;
Without peer: Mr Black's lawsuit against the Prime Minister 48

Canada in the world: foreign affairs and national defence

by Christopher Spearin 49
FOREIGN AFFAIRS 51
United States 51; Illegal immigration 53; World Trade
Organization 54; Asia-Pacific 57; Middle East 58; Europe 60;
International summitry and the developing world 62; United Nations
and human security 66
DEFENCE POLICY 70
National missile defence 70; Reform and personnel
management 72; Defence budget and procurement 74; CF opera-
tions of note 76

Municipal affairs by Emmanuel Brunet-Jailly and Warren

Magnusson 79
URBAN POLITICS AND LOCAL GOVERNMENT 79

CITIES IN THE MARKETPLACE 83

THE CULTURES OF CITIES 88

REGIONAL GOVERNANCE 92

LOCAL DEMOCRACY 95

CITIES IN CONFEDERATION 98

British Columbia by Carey Hill 100

PREMIER DOSANJH 100
 CONTENTS / vii

MR C L A R K ON T R I A L 102

MR C A M P B E L L IN Q U E S T I O N 103

SPEECH FROM THE T H R O N E 104

HEALTH 104

FORESTS 106

B A L A N C E D - B U D G E T LAW 107

NATURAL RESOURCES 109

WILDLIFE 110

ECONOMY 110

Alberta by Harold Jansen 113

BILL 11 113
E N E R G Y AND REBATES: POWER POLITICS IN ACTION 115
THE FLAT TAX BECOMES REALITY 117
THE LEGISLATURE 118
STOCKWELL DAY GOES NATIONAL 120
THE FEDERAL ELECTION IN ALBERTA 121
THE PARTIES 123
THE ECONOMY 124
MISCELLANEOUS 125

Saskatchewan by Joseph Garcea 127

ELECTIONS 127
Provincial by-election 127; Federal election 129; Municipal elec-
tions 130
P R O V I N C I A L POLITICAL PARTIES 130
New Democratic Party 130; Liberal Party 132; Saskatchewan
Party 132; Conservative Party 133; Aboriginal parties 133
FEDERAL POLITICAL PARTIES 133
Liberal Party 133; New Democratic Party 134; Alliance
Party 134; Progressive Conservative Party 135
viii / CONTENTS

THE L E G I S L A T U R E AND G O V E R N M E N T 135

The executive 135; The Legislature 137
THE BUDGET 138

THE E C O N O M Y 141

I N T E R G O V E R N M E N T A L AFFAIRS 142
Federal-provincial relations 142
A B O R I G I N A L AFFAIRS 143

CONCLUDING OBSERVATIONS 146

Manitoba by Geoffrey Lambert 147

THE L E G I S L A T I V E SESSION 147

POLITICS AND P O L I T I C A L P A R T I E S 151

THE E C O N O M Y AND E C O N O M I C D E V E L O P M E N T S 152

The Territories by Ken Coates and Greg Poelzer 156

THE F E D E R A L E L E C T I O N IN THE N O R T H 158

THE Y U K O N T E R R I T O R Y 160
Demographic change 161; Economic challenges 161; Territorial
politics 161; Other issues 164
NUNAVUT 164
Demographic change 165; Economic challenges 165; Territorial
politics 166; Other issues 167
THE N O R T H W E S T T E R R I T O R I E S 167
Demographic change 168; Economic development 169; Territorial
politics 169; Other issues 171

Ontario by Robert Drummond 173

EARLY-YEAR EVENTS 175

SPRING SITTING OF THE L E G I S L A T U R E 179

S U M M E R RECESS 184

FALL SITTING OF THE L E G I S L A T U R E 187

TRANSITIONS 192
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 CONTENTS / ix

Quebec by Daniel Salee 193

FACING ONE S DEMONS: IDEOLOGICAL TENSIONS A R O U N D
THE S O V E R E I G N T Y I S S U E 193

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 ! L I V I N G WITH T H E A F T E R -
SHOCKS OF THE 1995 REFERENDUM 198
THE R E - E M E R G E N C E OF THE L A N G U A G E ISSUE 201

THE WINDS OF CHANGE: RECONFIGURING PUBLIC MANAGE-

M E N T A N D R E F I T T I N G P U B L I C POLICIES 203
Health care: to privatize or not to privatize? 204; Higher education:
private-sector values as a guideline 207; Municipal mergers and the
reorganization of local governance 209
L O O K I N G A H E A D ... 211

New Brunswick by Richard Wilbur 212

E N D I N G H I G H W A Y TOLLS 212

R E D U C I N G THE PUBLIC WORKFORCE 213

P R E P A R I N G NEW B R U N S W I C K E R S FOR A B A D - N E W S
BUDGET 214

B A L A N C I N G H I G H W A Y M A I N T E N A N C E WITH B U D G E T
CUTS 216

COPING WITH M O U N T I N G HEALTH-CARE COSTS 217

A N U N E V E N A N D A T TIMES C O N F U S I N G E C O N O M I C
PICTURE 220

LATE THRONE SPEECH A SIGN OF THE TIMES 222

Prince Edward Island by Peter Edward Buker 223

THE ECONOMY 223
FISCAL E V E N T S 225

THE LEGISLATURE AND POLITICS 226

x / CONTENTS

OTHER EVENTS 229

Nova Scotia by Robert Finbow 232

POLITICS 234
THE LEGISLATURE 236
THE ECONOMY 239
INTERGOVERNMENTAL RELATIONS 241

Newfoundland and Labrador by Peter Neary and Melvin

Baker 244

Obituaries 253

Index of names 257

Index of subjects 273

Contributors

M E L V I N BAKER, Archivist/Historian, President's Office, Memorial

University of Newfoundland
E M M A N U E L B R U N E T - J A I L L Y , Assistant Professor, School of Public
Administration, University of Victoria
PETER EDWARD BUKER, Assistant Professor, Department of Political
Studies, University of Prince Edward Island
KEN C O A t E S , Dean of Academics, Sea to Sky University, Squamish, BC
ROBERT D R U M M O N D , Associate Professor, Department of Political
Science, York University
ROBERT E V E R E T T , University Secretariat, York University
ROBERT FINBOW, Associate Professor, Department of Political
Science, Dalhousie University
JOSEPH G A R C E A , Associate Professor, Department of Political
Science, University of Saskatchewan
C A R E Y H I L L , Doctoral Candidate, Department of Political Science,
University of British Columbia
HAROLD J A N S E N , Assistant Professor, Department of Political
Science, University of Lethbridge
GEOFFREY L A M B E R T , Professor, Department of Political Studies,
University of Manitoba
W A R R E N M A G N U S S O N , Professor, Department of Political Science,
University of Victoria
PETER N E A R Y , Professor, Department of History, University of
Western Ontario
GREG POELZER, Associate Professor, Department of Political Studies,
University of Saskatchewan, and University of the Arctic
D A N I E L S A L E E , Professor of Political Science and Principal of the
School of Community and Public Affairs, Concordia University
CHRISTOPHER S P E A R I N , Deputy Director of Research and Assistant
Professor of National Security Studies, Canadian Forces College,
Toronto
R I C H A R D W I L B U R , Fundy Promotions, St Andrews, New Brunswick
This page intentionally left blank
Preface

In last year's edition of the Canadian Annual Review, I indicated that

we would be gradually introducing a series of changes to the organiza-
tion and content of the volume, following last year's inclusion of the
newly created Nunavut. This year we continue with a discussion of the
politics of Nunavut, together with the other two northern Territories,
and make three other changes to the text.
The first is that we have decided to eliminate the separate chapter on
federal-provincial relations, which has long been a staple of the
Review. This change reflects our judgment that it no longer makes
sense to pull this issue out of the broader discussion of politics and
public affairs, for two reasons. The first is that ongoing debate about
the future of Canada and Quebec, which has dominated federal-pro-
vincial relations for so long is, for the moment at least, not taking the
form that it has done. The second is that the scope of these relations, as
the provinces take ever-greater responsibilities, has spread to the point
that it is found in most, if not all, issues. On behalf of the Review, I
would like to take this opportunity to thank Michael Howlett, who has
written this section since 1987, and has provided a valuable contribu-
tion to our understanding of Canadian politics.
The second is that we have introduced a chapter on Municipal
Affairs. This decision reflects the growing importance of municipal
governance in Canada. Both as a result of the very high level of urban-
ization in the country - at 77 per cent one of the highest in the world -
and of the downloading of services, municipal government is more
important today than at any time in our history. While technically
municipalities are creations of the provinces, the issues that are faced at
this level of government are quite distinctive, and, of course, are often
the most relevant to the day-to-day lives of Canadians.
The changes in Canadian life that have given rise to the first two
changes to the Review have also led us to the third. The clear division
between federal and provincial perspectives around which the volume
xiv / PREFACE

has long been organized no longer makes the kind of sense it once did.
The federal and provincial governments both overlap increasingly on
important issues and act independently in similar spheres. We have,
therefore, removed these divisions from the organization of the text.
Furthermore, the tacit importance given to provinces by their ordering
within the text seems to us out of keeping with the tenor of the times.
We have opted in this edition for an essentially geographic ordering of
the provincial and territorial chapters.
We see the Review as a work in progress, and so intend to introduce
further changes in the years to come, guided by our goal of reflecting
as clearly as possible the issues and practices of government that are of
greatest importance to Canadians.
Together with these changes, this volume also sees comings and
goings of a more usual nature, as authors leave and join the excellent
group that brings you the Review. I would like to take this opportunity
to thank those leaving and welcome those joining us. Jocelyn Coulon is
leaving, having provided the chapter on Quebec in the 1997, 1998, and
1999 editions. We are fortunate to be joined by Daniel Salee of Con-
cordia University. Since 1987 James Lawson authored our sections on
the northern Territories, and is succeeded this year by Ken Coates of
the Sea to Sky University and Greg Poelzer of the University of
Saskatchewan. Christopher Spearin of the Canadian Forces College is
also joining the Review this year, contributing the chapter on Canada's
foreign affairs and national defence, a chapter that has been authored
by Dean Oliver since 1992. The addition of a new chapter gives us the
opportunity to welcome two other new authors to the fold: Emmanuel
Brunet-Jailly and Warren Magnusson, both of the University of Victo-
ria, have jointly authored the new Municipal Affairs section. To all
those leaving, our heartfelt thanks for your sustained efforts on behalf
of the Review; and to those joining, a hearty welcome.
In closing, I would like to say a special word of thanks to Marshall
Beier of McMaster University, who has compiled the Calendar and
Obituaries. As anyone who has had reason to assemble a calendar of
events knows, it is a painstaking and often thankless task.
Canadian calendar 2000

JANUARY
2 Objecting to the pension and severance package
offered by the federal government, miners at the Cape
Breton Development Corp. begin a wildcat strike. It is
a year since Ottawa announced that it will be getting
out of the coal-mining business.
5 The federal government announces that it is closing
down the monitoring and coordination centre set up to
deal with feared computer system failures associated
with the so-called Y2K bug, confirming the success of
efforts to resolve the widespread date-format problem
before the roll-over to the year 2000.
- With total sales in excess of 1.5 million cars, 1999 is
reported to have been the best year for automakers in a
decade and the second best ever.
11 The future of the Voisey's Bay nickel-mining mega-
project is put in question as Inco Ltd rejects the New-
foundland government's call for a firm commitment to
process the ore in the province.
- A U.S. court rejects a bid by the Grand Council of
the Cree and a U.S. environmental group to prevent
the sale of power to the United States by Hydro-
Quebec.
12 With the easing of fears of a millennium-related
terrorist attack, heightened security measures along
the Canada-U.S. border are relaxed.
13 The Canadian Radio-television and Telecommunica-
tions Commission unveils its plans for the gradual
introduction of specialty digital television channels
that will revolutionize signal delivery to consumers.
- Defence Minister Art Eggleton confirms that Canada
xvi / CANADIAN CALENDAR 2000

will withdraw its peacekeeping troops from East

Timor.
14 In order to evade protests, and against the objections of
community leaders, plutonium from decommissioned
U.S. nuclear weapons is secretly flown to the Atomic
Energy Canada labs at Chalk River, Ontario, to be
evaluated as a fuel for Candu nuclear reactors.
18 The Federal Court of Appeal rules that suspected ter-
rorists can be deported to another country even if they
might face torture.
- Ontario Premier Mike Harris announces that anyone
convicted of cheating the province's social welfare
system will thenceforth be permanently denied access
to welfare support.
19 Federal Human Resources Minister Jane Stewart
releases an audit showing that her department may
have mismanaged as much as $1 billion in grants for
job creation, training, and literacy.
- Federal Health Minister Allan Rock unveils gruesome
images of tobacco-related illnesses that will accom-
pany new warnings on cigarette packages by the end of
the year.
24 The Ontario Public Service Employees Unions warns
that provincial government plans to privatize jails
holding the province's most dangerous youth offend-
ers will put the public at risk.
26 BCE announces that it will spin off most of its stake in
high-performing Nortel Networks to its shareholders.
29 A United Nations-sponsored conference in Montreal
crafts an agreement on the trade of genetically modi-
fied products that will allow countries to refuse
imports they judge unsafe.
30 Reform Party leader Preston Manning wins the sup-
port of 75 per cent of delegates to the party's biennial
convention in Ottawa. The strong endorsement of his
leadership is read as a mandate to proceed with plans
to 'unite the right' through what will be called the
Canadian Reform Conservative Alliance.
31 The federal government approves the $8 billion take-
over of Canada Trust by the Toronto Dominion Bank.
 CANADIAN CALENDAR 2000 / xvii

FEBRUARY
1 The federal government announces that it will give
compensation to civilian sailors who gave wartime ser-
vice in Canada's merchant marine.
- Quebec Anglo-rights group Alliance Quebec
announces a constitutional challenge to a provincial
language law requiring that all companies in the
province conduct internal communications in
French.
3 The Newfoundland government offers a $3,000 incen-
tive to new nurses who remain in the province.
- A report on homelessness in Toronto finds that it is on
the rise and will continue to grow without a significant
commitment from both the federal and provincial gov-
ernments to subsidized housing.
4 Four years after Casino Rama began operating near
Orillia, an agreement is reached on the distribution of
revenues among Ontario Native groups.
7 Defence Minister Art Eggleton says his department
will make testing available to members of the military
who believe they might have been exposed to depleted
uranium while on postings abroad.
11 Foreign Affairs Minister Lloyd Axworthy reacts
angrily to U.S. Senator Diane Feinstein's suggestion
that lax Canadian laws and poor border control have
raised the spectre of a terrorist threat emanating from
Canada.
- Justice Minister Anne McLellan introduces legislation
that will give same-sex partners equal access to,
among other things, child-care tax breaks and pension
benefits.
14 Rejecting the suggestion that a renewed federalism
should be his party's objective, Quebec Premier
Lucien Bouchard reaffirms his commitment to Quebec
sovereignty.
15 In response to American criticism of Calgary-based
Talisman Energy's involvement in the Sudanese Civil
War, Foreign Affairs Minister Lloyd Axworthy says
Canadian policy will not be dictated by Washington.
17 The federal government announces that it will recog-
nize post-traumatic stress disorder as a disability
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