1. Between a Rock and a Hard Place: The Report of the Newfoundland and Labrador Commission on Our Place in Canada Douglas Brown

2. Our Place in Canada Royal Commission Mandate Royal Commission Mandate Process Process Framing of the Issues Framing of the Issues Conclusions and Recommendations Conclusions and Recommendations Post-Commission developments Post-Commission developments

3. Royal Commission Mandate Returning to 1949: what were the expectations on joining Canada? Returning to 1949: what were the expectations on joining Canada? Comprehensive: examine all aspects of NL relations with Canada Comprehensive: examine all aspects of NL relations with Canada Forward-looking: how to renew and strengthen “our place” in Canada Forward-looking: how to renew and strengthen “our place” in Canada Open-ended: how to increase “prosperity and self-reliance” Open-ended: how to increase “prosperity and self-reliance”

4. Commission Proces Appointed May 2002; reported July 2003 Appointed May 2002; reported July 2003 Three Commissioners: Vic Young, Elizabeth Davis and James Igloliorte Three Commissioners: Vic Young, Elizabeth Davis and James Igloliorte Small staff Small staff 25 public meetings, dozens of private ones 25 public meetings, dozens of private ones Research program of 30 studies Research program of 30 studies 15 months, budget of $2.3 million 15 months, budget of $2.3 million

5. Why a Commission General malaise due to long-term effects of 1992 cod moratorium, outmigration and federal budget cuts of 1995 General malaise due to long-term effects of 1992 cod moratorium, outmigration and federal budget cuts of 1995 Specific political rationale to give Grimes government a boost, find new ideas for intergovernmental strategy Specific political rationale to give Grimes government a boost, find new ideas for intergovernmental strategy Political risks: “creating a monster” of raised expectations, no new solutions, too big a mandate, not enough time Political risks: “creating a monster” of raised expectations, no new solutions, too big a mandate, not enough time

6. Framing the Issues Trying not to blame Canada Trying not to blame Canada Facing hard truths Facing hard truths Embracing a sense of place Embracing a sense of place Seeking a “new way of relating” Seeking a “new way of relating” Devising an integrated strategy Devising an integrated strategy

7. Hard truths Economic disparity…still in last place Economic disparity…still in last place Fiscal crisis…again Fiscal crisis…again Fisheries teetering on the brink Fisheries teetering on the brink Rural communities in sharp decline Rural communities in sharp decline Severe out-migration Severe out-migration Weak constitutional position Weak constitutional position

8. Key conclusions and recommendations No to separation, no to the status quo No to separation, no to the status quo Need for collaborative federalism Need for collaborative federalism To be the “principal beneficiary” of offshore oil revenues To be the “principal beneficiary” of offshore oil revenues Concerted effort to restore the fisheries Concerted effort to restore the fisheries A new partnership for hydro development A new partnership for hydro development Putting the fiscal house in order Putting the fiscal house in order Facing up to rural sustainability Facing up to rural sustainability

9. No to separation… Proud to be Canadian Proud to be Canadian Only 12 percent want independence Only 12 percent want independence Huge level of dissatisfaction with how Canada works Huge level of dissatisfaction with how Canada works Terms of Union cannot be amended Terms of Union cannot be amended

10. Collaborative Federalism Need collaborative, not competitive federalism Need collaborative, not competitive federalism Respect for NL as a province Respect for NL as a province More federal presence More federal presence More flexibility and accommodation to unique needs More flexibility and accommodation to unique needs Senate Reform Senate Reform Council of the Federation Council of the Federation

11. Offshore Oil Atlantic Accord, negotiated by Mulroney- Peckford in 1985: NL was to be the “principal beneficiary” in fiscal terms Atlantic Accord, negotiated by Mulroney- Peckford in 1985: NL was to be the “principal beneficiary” in fiscal terms Initial fiscal projections of Accord unrealistic Initial fiscal projections of Accord unrealistic Government of Canada reaps 75 to 80 percent of total revenues Government of Canada reaps 75 to 80 percent of total revenues Got to revisit the deal Got to revisit the deal

13. Last Chance for the Fishery Too much fed-prov squabbling Too much fed-prov squabbling Need an action plan to address stock rebuilding, prevent foreign over-fishing, have joint management of licensing Need an action plan to address stock rebuilding, prevent foreign over-fishing, have joint management of licensing

14. Churchill River Hydro Churchill Falls contract of 1969 with Hydro Quebec still costs NL an estimated $800 million a year in lost profits Churchill Falls contract of 1969 with Hydro Quebec still costs NL an estimated $800 million a year in lost profits But forget about linking new “Lower Churchill” project with renegotiated deal But forget about linking new “Lower Churchill” project with renegotiated deal Instead get other partners (e.g. Feds, Ontario) to promote an equitable new development Instead get other partners (e.g. Feds, Ontario) to promote an equitable new development

15. Provincial Fiscal Reform Unsustainable fiscal deficit Unsustainable fiscal deficit Offshore oil revenues not going to close the gap Offshore oil revenues not going to close the gap Need to balance the budget, engage in program review (i.e. can’t do it all) and address pension liabilities Need to balance the budget, engage in program review (i.e. can’t do it all) and address pension liabilities

16. Rural Sustainability Survival of rural Newfoundland is at stake Survival of rural Newfoundland is at stake No one wants to discuss the issue No one wants to discuss the issue Commission failed to get consensus Commission failed to get consensus Need for a sustained public dialogue or deliberation Need for a sustained public dialogue or deliberation There is a cross-Canada search for solutions There is a cross-Canada search for solutions

17. Impact of Commission NL is here to stay in Canada NL is here to stay in Canada Confident sense of place: something to build on Confident sense of place: something to build on Greater sense of realism Greater sense of realism Portrays gaps in cohesion as a community Portrays gaps in cohesion as a community Some blamed report as not bold enough Some blamed report as not bold enough Provided a good foundation for a fresh approach Provided a good foundation for a fresh approach

18. Developments since 2003…1 Williams government gets elected November 2003, program very similar to Commission report Williams government gets elected November 2003, program very similar to Commission report Premiers agree to a new Council of Federation, December 2003 Premiers agree to a new Council of Federation, December 2003 Paul Martin and Stephen Harper both promise a new deal on the offshore – Martin government delivers, Feb. 2005 Paul Martin and Stephen Harper both promise a new deal on the offshore – Martin government delivers, Feb. 2005

19. Since 2003… Budgetary position of province much improved Budgetary position of province much improved Oil-driven economy pushes NL into 6 th or 7 th place nationally Oil-driven economy pushes NL into 6 th or 7 th place nationally Rural out-migration continues Rural out-migration continues Williams takes aggressive line with feds over equalization, fishery and with business over oil, hydro and mines Williams takes aggressive line with feds over equalization, fishery and with business over oil, hydro and mines