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CANADIAN A N N U A L REVIEW OF POLITICS
AND PUBLIC AFFAIRS 1996
This page intentionally left blank
Canadian Annual Review
of politics and public affairs
1996

E D I T E D BY 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 2002
Toronto Buffalo London
Printed in Canada

ISBN 0-8020-3715-1

Printed on acid-free paper

National Library of Canada Cataloguing in Publication Data

Canadian annual review of politics and public affairs

1971-
ISSN 0315-1433
ISBN 0-8020-3715-1 (1996 issue)
1. Canada - Foreign relations - 1945- - Periodicals. 2. Canada -
Economic conditions - 1945- - Periodicals. 3. Canada - Politics
and government.
F5003.C216 320.9'7r064

University of Toronto Press acknowledges the financial assistance to its

publishing program of the Canada Council for the Arts and the Ontario
Arts Council.
This book has been published with the support of York University.
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
1981 and 1988 to 1996 are available.
Contents

Contributors ix

Acknowledgments xi

Canadian calendar 1996 xiii

Editor's introduction - the year in review 3

THE FEDERAL PERSPECTIVE 9

Parliament and politics by Robert Everett 11

NATIONAL INSTITUTIONS 12
Speech from the Throne 12; First cabinet shuffle 13; Second shuffle
and the resignation of David Collenette 15; March by-elections 16;
Who's sorry next? Liberal grief over the GST 17; Senate appoint-
ments 21; Election laws 21; Newfoundland constitutional amend-
ment 23; Auditor general 23; Krever inquiry 24; Pearson Airport
legislation 25
QUEBEC AND THE SOVEREIGNTY QUESTION 26
Plan A, Plan B 26; Canada Information Office 29
ECONOMIC POLICY 30
Economic indicators 30; Budget 30; Autumn economic statement 31;
Goods and Services Tax 33; Trade issues 33; The perils of Canadian
Airlines International 35
NATIONAL PARTIES 37
Liberals 37; Bloc Quebecois 37; Reform 40; New Democrats 42;
Progressive Conservatives 43
vi / CONTENTS

ABORIGINAL AFFAIRS 44
Royal Commission on Aboriginal Peoples 44; Indian Act
amendments 45; Aboriginal rights and fishing 45
MAJOR POLICY INITIATIVES 46
Tobacco controls 46; The persistence of poverty in Canada 48;
Immigration 49; Sexual orientation 50
CULTURE AND COMMUNICATIONS 51
Canadian Broadcasting Corporation 51; Canadian Radio-television
and Telecommunications Commission 53; Negative option
billing 54
PERSONALITIES AND CONTROVERSIES 54
The Prime Minister strikes out 54; Former prime ministers 55;
Ethics guidelines and cabinet conduct 56; The 'examination' of
Mr Jacob 57; Harassment on the Hill? 58

Ottawa and the provinces by Michael Hewlett 59

FROM THE PEOPLE TO THE COURTS: PLAN A, PLAN B, AND THE
BERTRANDCASE 59

FEDERAL DEBTS AND DEFICIT CONTROL! PENSIONS, (UN)EMPLOYMENT

INSURANCE, AND HEALTH CARE 63
Pensions 65; Unemployment Insurance 66; Health care 67
NEW BUSINESS 67
The GST revisited 67; Day-care redux 68
OLD BUSINESS 69
Native affairs 69; The fishery 70; The environment 70

Foreign affairs and defence by Dean Oliver 71

FOREIGN AFFAIRS 73
The United States and Hemispheric Relations 73; The United
Nations 74; Europe 75; War crimes 77; Russia and Eastern
Europe 78; Asia-Pacific 78; Africa 79
DEFENCE POLICY 82

The defence budget, military equipment, and training 83; Alliance

commitments 86; Arms control 88; The Somalia inquiry 91;
Organization and personnel 96
 CONTENTS / vii

THE PROVINCIAL PERSPECTIVES 99

ONTARIO by Robert Drummond 101
Restructuring I: systems and institutions 102; Restructuring II:
expenditures and revenues 108; Days of Protest, weeks of strike 113;
Changes in leadership 118
QUEBEC by Sylvie M. Beaudreau 123
NOVA SCOTIA by Robert Finbow 150
Politics 151; The Legislature 153; The economy 155; Intergovern-
mental relations 157
NEW BRUNSWICK by Richard Wilbur 159
The winter of our discontent 159; Downsizing continues 161; More
cuts and changes for the education system 164; The pros and cons of
call-centre jobs 165; Harmonized taxes, higher gasoline prices, and
toll highways 168
MANITOBA by Geoffrey Lambert 169
The Legislature 169; The economy 174; Politics and political
parties 176
BRITISH COLUMBIA by Carey Hill 178
NDP leadership race 178; Campaign 1996 180; Election
outcome 181; The (un)balanced budget 182; Other events 184; The
economy 187
PRINCE EDWARD ISLAND by Peter E. Buker 189
The economy 189; Fiscal events 191; The Legislature 192; Other
events 194
SASKATCHEWAN by Joseph Garcea 197
The Legislature and government 198; The budget and economy 206;
Around the province 209
ALBERTA by Harold J. Jcmsen 212
Now what? The politics of surplus budgets 212; The parties 217;
The Legislature 220; The economy 222; Miscellaneous 224
NEWFOUNDLAND AND LABRADOR by Raymond B. Blake 224
Politics 224; The budget speech 227; The economy 228; The
fishery 231; Education and religion 233; Federal-provincial
relations 234
viii/CONTENTS

YUKON AND NORTHWEST TERRITORIES by James B. LaWSOn 235

The territories, the federation, and the world 235; NWT: Public and
aboriginal government 236; The economy 239; Society 240; Yukon:
Public and aboriginal government 241; The economy 243;
Society 245

Obituaries 249

Index of names 253

Index of subjects 269

Contributors

SYLVIE M. BEAUDREAU, Assistant Professor, Department of History /

Center for the Study of Canada, State University of New York at
Pittsburgh
RAYMOND B. BLAKE, Assistant Professor, Centre for Canadian Studies,
Mount Allison University
PETER E. BUKER, Assistant Professor, Department of Political Studies,
University of Prince Edward Island
ROBERT DRUMMOND, Associate Professor, Department of Political Sci-
ence, York University
ROBERT EVERETT, University Secretariat, York University
ROBERT FINBOW, Associate Professor, Department of Political Science,
Dalhousie University
JOSEPH GARCEA, Associate Professor, Department of Political Science,
University of Saskatchewan
CAREY HILL, Doctoral Candidate, Department of Political Science,
University of British Columbia
MICHAEL HOWLETT, Associate Professor, Department of Political
Science, Simon Fraser University
HAROLD j. JANSEN, Assistant Professor, Department of Political
Science, University of Lethbridge
GEOFFREY LAMBERT, Professor, Department of Political Studies,
University of Manitoba
JAMES B. LAWSON, Doctoral Candidate, Department of Political
Science, York University
DEAN OLIVER, Post-Doctoral Fellow, The Norman Paterson School of
International Affairs
RICHARD WILBUR, Fundy Promotions, St Andrews, New Brunswick
This page intentionally left blank
Acknowledgments

David Leyton-Brown assumed the editorship of the Canadian Annual

Review from Rod Byers, who had succeeded Jack Saywell. With this
volume, I have the privilege of continuing the tradition of York Univer-
sity faculty serving as editors of this important publication of record. It
also continues the valued partnership between York University, which
manages the research, writing, and editing of the volumes, and the Uni-
versity of Toronto Press, which publishes this annual reference work
on Canada's political and economic affairs.
The 1985 volume marked the beginning of Heather Chestnutt's asso-
ciation with this program. She initially worked as a part-time assistant
while pursuing graduate studies, and more recently as the overall
manager of the project in the context of her larger responsibilities as
the Research Officer at York's Centre for International and Security
Studies. Heather has been the force which has ensured that the work
gets done, that academic standards are met, and that the UTP receives
delivery of an accurate, informed, well-organized, and clearly written
manuscript. In belated recognition of her central role in this ongoing
project, I am pleased to note that as of this volume she is formally rec-
ognized as the CAR's Managing Editor.
Another regular behind-the-scenes contributor is Marshall Beier,
who, throughout his years as a graduate student at York and as an
associate of YCISS, has been involved in the production of the CAR.
As with the past few volumes, it is again a pleasure to recognize
Marshall's excellent work in preparing the calendar of events and the
obituaries, and to thank him for providing assistance as required.
Of course, the most significant participants in this exercise are the
authors. I am grateful for their interest in contributing to the CAR and
their commitment to provide accurate, well-informed, and clear pres-
entations.

DAVID MUTIMER
CENTRE FOR INTERNATIONAL AND SECURITY STUDIES
YORK UNIVERSITY, TORONTO
This page intentionally left blank
Canadian calendar 1996

JANUARY
1 Unemployment Insurance premiums are cut, saving
employees and employers an estimated $1.3 billion in
1996.
5 Justice Howard Weston rules that long-term prisoners have
the right to vote in federal elections, saying that preventing
such prisoners from voting is an infringement of the Charter
of Rights and Freedoms.
8 Guy Betrand files notice in the Quebec Superior Court seek-
ing a permanent injunction against any future sovereignty
referenda in Quebec. This is Mr Betrand's second attempt to
win an injunction; last fall, despite ruling that the Quebec
referendum was illegal, Mr Justice Lesage refused to grant
the injunction.
- Statistics Canada reports that for the first time in twenty
years university enrolment declined, even though record
numbers of students are attending university.
- Fisheries Minister Brian Tobin officially announces his
hope to become the next premier of Newfoundland, replac-
ing outgoing Premier Clyde Wells; it is expected that Mr
Tobin will run for the position unopposed, as several poten-
tial challengers have publicly stated that they will not run
against him.
10 The Canada Mortgage and Housing Corporation reports that
the number of foreclosures on insured mortgages increased
by 17 per cent in 1995; the increase is the highest in ten
years. The report comes one day after the CMHC reported
that national housing starts have suffered their worst per-
formance in three decades.
12 A new electoral map is made official. The new map, based
on 1991 census information, changes the boundaries of
xiv / CANADIAN CALENDAR

most ridings, and increases the numbers of Commons seats

from 295 to 301.
13 Former Ontario premier Bob Rae announces that he will
step down from his position as NDP leader, effective
7 February.
14 A tentative free-trade deal is struck between Canada and
Israel.
15 'Team Canada II,' composed of the Prime Minister, seven
premiers, and close to 300 Canadian businesspeople, signs
$2.1 billion worth of trade deals with Pakistan and $3.4 bil-
lion worth of trade deals with India.
- Four days after becoming premier-designate of Quebec,
Lucien Bouchard resigns his House of Commons seat and
the leadership of the federal Bloc Quebecois.
18 In a letter made public today, Canada's UN envoy Robert
Fowler tells UN Secretary-General Boutros Boutros Gali
that Canada will withdraw its troops from Rwanda ahead of
schedule in response to the UN's reduction of its peacekeep-
ing forces even while the extent of its duties remains the
same.
19 More than forty groups and individuals file lawsuits in the
Federal Court of Canada today in order to prevent the head
of the public inquiry into the tainted blood scandal, Justice
Horace Krever, from making findings of wrongdoing in his
final report. The group, which includes the Canadian Red
Cross, is challenging the inquiry's right to make findings of
wrongdoing that could be used in civil or criminal proceed-
ings at a later date.
23 The federal government agrees to pay an Anglo-Italian con-
sortium more than $158 million in compensation for work
done, and more than $21 million in termination costs, after
the cancellation of the previous government's deal to pur-
chase fifty military helicopters.
- Conservative Senator John Sylvain announces his resigna-
tion from the Senate, effective 1 February, bringing Liberal
and Conservative seats to a 50-50 balance.
25 Madam Justice Joanne Veit of the Alberta Court of Queen's
Bench orders the Alberta government to pay more than
$740,000 in compensation to Leilani Muir. Ms Muir had
been forcibly sterilized as a teenager when it was errone-
ously determined that she was of below normal intelligence.
 CANADIAN CALENDAR / xv

26 Former federal fisheries minister Brian Tobin is sworn in as

Newfoundland's sixth premier.
29 Lucien Bouchard is sworn in as Quebec's twenty-seventh
premier.

FEBRUARY
1 Former Liberal MP Shirley Maheu is appointed to the Sen-
ate, resulting in the first Liberal-dominated senate since
1990 at fifty-one seats.
2 The controversial veto bill which allows Quebec, Ontario,
British Columbia, and the Prairie or Atlantic regions to veto
constitutional amendments is passed by the Senate in a 48-
36 vote.
7 Four Ontario university students are charged with several
crimes, including the obscure offence of 'intimidating the
Legislature' - an offence which carries a fourteen-year pen-
alty - for their role in a student protest of education funding
cuts; the protest resulted in more than $10,000 damage to
the Legislature.
9 Small- and medium-sized public service unions represent-
ing close to 20 per cent of the federal labour force ratify a
deal with the government, which eliminates most of their
job security and paves the way for the privatization of many
agencies and services.
- The Ontario Court of Appeal rules that lap dancing is a dan-
gerous and degrading act, overturning a 1994 decision to the
contrary, and effectively criminalizing the practice in
Ontario.
13 Chief of Defence Staff General Jean Boyle publicly states
that Canada's army is unfit to fight in a serious war, and that
he would challenge any government that tries to send the
Canadian army into such a situation.
- The Bank of Canada rate falls by more than twenty basis
points, reaching its lowest level in two years at 5.19 per
cent.
14 The Industry Department reports that the number of con-
sumer bankrupcies in Canada set a new record in 1995,
reaching levels not seen since 1991.
15 The Supreme Court of Canada rejects a challenge by three
retired Mounties to a lower court ruling that allows Sikh
RCMP officers to wear turbans. The decision, intended to
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