Document Information

Date: 1971-02-08
By: Secretariat of the Conference, W. Ross Thatcher
Citation: Federal Provincial Conference, Remarks – Hon. W. Ross Thatcher, Premier of Saskatchewan (Ottawa: 8-9 February 1971).
Other formats: Click here to view the original document (PDF).

— Remarks —
Hon. W. Ross Thatcher
Premier of Saskatchewan

FEDERAL PROVINCIAL CONFERENCE
Ottawa , Ontario.
February 8, 1971.

UNEMPLOYMENT

Mr. Prime Minister

As everyone at this Conference knows, unemployment in Canada has grown to unacceptable proportions.

while the rate of unemployment in Saskatchewan is not as high as exists in most other provinces, the situation is still acute.

The slowdown in Saskatchewan economic activity was precipitated by the terrible crisis of our agricultural economy, as a result of extremely low grain sales in the export market.

Coupled with our problems in agriculture, our construction industry faced a bleak year as major construction projects such as the pulp mill and potash mines were completed.

Also, as our population levelled off and actually declined, the demand for residential housing dwindled to the point where housing starts have been most discouraging.

These factors have spread through to the service industries, and virtually every sector of our economy has been affected. The net result is that we are currently facing a level of unemployment which can only be termed as “unacceptable” to our people.

X X X X

In recent years, as elsewhere in the world, the trend toward larger farms has continued apace.

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During the period of expansion, our province’s economy was able to absorb those individuals who left the agricultural sector to seek employment elsewhere in our economy.

However, this was not the case in 1970.

As a result, we have experienced a decline in population as our residents sought employment in other provinces.

The trend is now reversing itself, as our people find the employment situation in other provinces often worse than that which exists in Saskatchewan.

Thus many are now returning to Saskatchewan.

X X X X

OUR GOVERNMENT BELIEVES THAT FEDERAL AUTHORITIES SHOULD JOIN WITH THE PROVINCIAL GOVERNMENTS IN AN ALL OUT WAR AGAINST UNEMPLOYMENT.

Such a campaign should be waged on an immediate emergency basis.

We all recognize that there is no easy solution.

However, it is inconceivable that a nation with the wealth and resources of Canada, should have so many workers out of jobs.

Surely this matter should be given top priority by all governments in the months ahead.

X X X X

[Page 3]

As in other jurisdictions Saskatchewan has already taken some major steps.

1. We have embarked upon a crash public works program which now exceeds 17 million dollars. We continue to seek additional practical projects.

2. We have commenced giving $500 grants on any new homes which are commenced.

3. We are making every effort to encourage expansion in the private sector.

We think we are on the verge of obtaining 2 mammoth projects — a pulp mill at Meadow Lake, and a uranium refinery at Wollaston Lake.

4. We have set up a revolving municipal loan fund to help local governments finance municipal projects.

X X X X

However, we realize that the action which a provincial government can take to combat unemployment is limited.

The federal authorities control international trade — they control fiscal policies — they control interest rates.

We are aware that Ottawa has recently taken some action which may ultimately alleviate the problem.

However in the short run, few immediate improvements are obvious.

[Page 4]

– Federal Loan Program —

The federal government recently announced a loan program to help provincial governments. Probably it will be most helpful to Quebec and even to the Maritimes.

But that program will be less than useless to Saskatchewan — since our province has no problem borrowing money.

In passing we cannot help but note that the percentage of total funds proposed for Saskatchewan, was much less than our fair share.

— Federal Public Works —

Our understanding is that Ottawa recently announced a new $103 million program of public works and additional manpower training services.

When related to the terrible needs of the nation, with respect may I say that such a program in our opinion is completely inadequate.

Again we note with dismay -— that Saskatchewan’s share of this program was $430,000 in special manpower training services, and virtually nothing in accelerated public works — well below 1% of the total share.

Our people sometimes wonder if Ottawa realizes that Saskatchewan is still a part of Confederation.

X X X X

Mr. Prime Minister again I emphasize that Saskatchewan has no easy solution to unemployment. I don’t think there are any easy answers.

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But surely the 11 governments represented around this table should be able to formulate some policies which would be helpful.

Our people must look to Ottawa for leadership. Co—operative courses of action must be found and adopted which will immediately stimulate the economy and create jobs now.

X X X X

Saskatchewan suggests a few steps which could be examined:

1) A massive and meaningful crash public works program by all eleven governments and particularly by Ottawa.

2) Immediate withdrawal of the sales tax on building materials at both federal and provincial levels.

3) Immediate withdrawl of the federal 3% temporary surcharge on personal and corporate income tax.

4) An extension of the Designated Area Legislation to include additional hard-pressed areas.

5) Temporary extension of the Unemployment Insurance Commission Benefits.

6) Finally we believe that any contemplated tax increases which may be proposed in the White Paper should be dropped.

This document has created an economic atmosphere in the business world which is causing major concern.

[Page 6]

Assurances should be given immediately that tax increases in the White Paper, will not further hinder business expansion.

X X X X

Mr. Prime Minister — our government believes that unemployment — not the Constitution is the number one problem — facing this nation.

Jobs are needed not next June or July — but now.

Let us try to find an emergency approach by all eleven governments, which will combat this cancerous Canadian crisis — without procrastination.

– Remarks —
Honourable W. Ross Thatcher
Premier of Saskatchewan.

FEDERAL PROVINCIAL CONFERENCE
Ottawa, Ontario.
February 8, 1971.

A CANADIAN COMMON MARKET

One of the most fundamental aspects of a Confederation is the establishment of a free trade area.

Accordingly, under the constitution, the Federal Government was given responsibility for governing interprovincial trade.

Provinces were prohibited from restricting the interprovincial movement of goods through the use of trade barriers. The wisdom of the founding fathers is indisputable on this matter.

X X X X

However, in 1971, we find ourselves in the unbelievable situation where provincial government bodies are restricting the movement of agricultural products from one province to another.

The so-called chicken-and—egg war commenced early in 1969, and has become progressively worse.

Since that time, poultry and egg marketing boards in most provinces have responded with restrictions.

This is not the time to point the finger of blame.

However, it is obvious that a solution must be found, or the whole nation will find itself in an impossible position.

[Page 2]

Unless action is taken — the so—called chicken—and—egg war could grow into a much broader national problem with un- precedented ramifications on other products such as sugar, fish and petroleum.

Already there are indications of other commodity groups requesting similar restrictions.

I say that these regulations undermine a basic principle of Confederation and must be ended.

X X X X

I urge the l0 provincial governments sitting around this table, to repeal all legislation or regulations which impair the interprovincial movement of poultry products.

If such co—operation is not forthcoming, then I believe it is the duty of federal authorities to iniate effective action.

Moreover, I believe Parliament should take whatever steps are necessary to prevent this situation from re—occurring.

Our Government is willing to act tomorrow to wipe out any barriers our legislation imposes on such interprovincial movements — provided other provinces are willing to do likewise.

X X X X

But in my opinion the main responsibility to end this impossible situation must lie with the federal government.

Saskatchewan asks for action now.

– Remarks –
Honourable W. Ross Thatcher
Premier of Saskatchewan.

FEDERAL PROVINCIAL CONFERENCE
Ottawa, Ontario.
February 8, 1971.

– FEDERAL PUBLIC WORKS –

– FEDERAL INCENTIVE GRANTS –

Mr. Prime Minister

Let me first of all express enthusiasm for such federal programs as the Designated Area legislation, and more recently, an accelerated Public Works Program designed to create jobs for the unemployed.

I have no argument with the stated intentions of these programs.

But our province is gravely concerned with their application.

X X X X

Public Works

At a previous Constitutional Conference, I presented evidence that showed Saskatchewan was to receive Federal Public works programs in 1970-71 amounting to only —— 48¢ per capita, compared to an average of ———————————— $3.59 in the rest of Canada.

Since that time, as nearly as we can ascertain an additional $l03 million has been announced by Ottawa for Public Works, in an attempt to create jobs for unemployed persons. Are you aware, Mr. Prime Minister, that Saskatchewan to receive less than ——————————— 1.6% of the total.

[Page 2]

It is my duty to tell you that in these programs, you are continuing to overlook the prairies — and particularly Saskatchewan.

Our appeals in this regard, for the most part continue to fall on deaf ears.

We understand the terrible necessity of giving major assistance in public works to Quebec.

But Saskatchewan is also a province in Confederation. We ask for our fair share of federal projects.

We assume that the federal government does not purposely wish to discriminate against the unemployed people in Saskatchewan.

X X X X

As in other parts of Canada, Saskatchewan has a dismaying number of unemployed.

Also to be counted are those who have left the province in the last year in search of employment, as well as those that are underemployed on our farms.

Mr. Prime Minister, our situation is serious.

The Saskatchewan Government has done its part in announcing accelerated Public Works programs amounting to about $17 million at this date.

I again appeal to you Sir, to review your priorities, and determine whether additional federal Works Projects cannot be found for Saskatchewan.

X X X X

[Page 3]

Department of Regional Expansion

Saskatchewan is even more concerned over the small share of economic grants which we are receiving under the Designated Area legislation.

The grant offers made to companies from the start of the program until the end of November, l970, show that of the $93.5 million of grants made, less than ————————————$4 million went to firms situated in Saskatchewan.

Moreover in this period of economic crisis, we are disconcerted by the slow speed at which applications are processed.

As at January 1st, Saskatchewan had at least 13 applications before the department for consideration.

A substantial number of these applications had been sent to Ottawa months ago.

X X X X

Additional Areas

Once again, Mr. Prime Minister, Saskatchewan ask that additional areas in our province be designated.

Cities like North Battleford, Prince Albert, Yorkton, Melville and many others find it grossly unfair that they are unable to receive federal grants.

speaking in the House of Commons on December 3rd last, the Finance Minister mentioned that additional areas in Ontario and Quebec would begin qualifying for assistance.

[Page 4]

May I on behalf of our people request similar treatment.

X X X X

Regardless of how sound the incentive grants are in principle — more and more people in my province are querying the small proportion which are coming to Saskatchewan.

Mr. Prime Minister, we ask for our fair share of dollars under the incentive program — no more— but surely no less.

– Remarks –
Honourable W. Ross Thatcher
Premier of Saskatchewan.

FEDERAL PROVINCIAL CONFERENCE
Ottawa, Ontario.
February 8, 1971.

SOCIAL POLICY

The Government of Saskatchewan holds rather strong views on this subject.

We must comment on the proposal put forward by the Province of Quebec.

X X X X

Our understanding of Quebec’s proposition is that any area of social policy should be a provincial responsibility.

It would place within provincial jurisdicition such matters as income securitY, (including Old Age Pensions, Unemployment Insurance, Family Allowances, etc.), health care, manpower training, justice, and housing.

X X X X

In other words Quebec as we see it, is asking for the best of both worlds.

While they want the Federal Government to finance all these social programs, they wish to disburse the services on a provincial basis, using their own criteria.

X X X X

If this proposal were adopted, it would appear that the functionsfinancial abilities of the Federal Government would be emasculated.

[Page 2]

Federal powers to combat regional disparities would be virtually eliminated.

Federal ability to combat recessions and unemployment would largely disappear.

If adopted, the Federal government would be the tax collector, the supplier of national defence, the overseer of trade policy, and little else.

Such a concept does not conform with our view of a meaningful Confederation.

X X X X

We in Saskatchewan believe that in these critical times, a strong central government is required with adequate economic powers to cope with national problems.

If Quebec persists with the demands she is making today, perhaps she should become a separate nation.

Because if Ottawa gave up the powers requested, Saskatchewan believes that Confederation could not continue to operate in an effective way.

Our province will never willingly agree to these proposals.