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July 2, 2003

No to Separation! No to Status Quo!

St. John's, NL: The Royal Commission on "Renewing and Strengthening Our Place in Canada" today released its Report to the public. It calls for a renewed partnership between the Government of Newfoundland and Labrador and the Government of Canada as the foundation for its Pathway to Renewal.

Powerful Set of Circumstances

The Report focuses on a powerful set of circumstances faced by Newfoundland and Labrador since Confederation. These circumstances have been dominated by the devastation of its once lucrative fishery, the loss of an astounding 70,000 people (12 per cent of its population) to out-migration in the last decade, and double-digit unemployment in each of the last 30 years. This has shaken the very foundation of Newfoundland and Labrador and fueled discontent and frustration about its place in Canada. Such deep-rooted frustration has been exacerbated by the inequitable outcome of the Churchill Falls development, and the unfolding realization that the intent of the Atlantic Accord, aimed at making the province the principal beneficiary of its offshore oil developments, will not be achieved.

The Commission concludes that there is a worrisome disconnect between the vast resources Newfoundland and Labrador brought into Confederation and its relatively disadvantaged position compared to that of other provinces. It has the nation's highest unemployment rate, lowest per capita income, some of the highest rates of taxation, highest per capita debt, weakest financial position, highest rate of out-migration and fastest population decline. Whatever else, the perpetuation of these kinds of economic and social disparities was not the expectation of the people of Newfoundland and Labrador when they entered Confederation in 1949.

A New Partnership - A Two-Way Street

Nevertheless, the Commission concludes that Newfoundlanders and Labradorians are proud to be Canadian. There was a loud consistent message: "No to separation; no to status quo." The Commission calls, therefore, for a new partnership between the Government of Newfoundland and Labrador and the Government of Canada. The measure of the new partnership will not be whether the two levels of government are getting along but whether they are getting things done. It will be reflected in the manner in which the two governments jointly deal with key issues, now and in the future, in the best interests of the people of Newfoundland and Labrador. It is a recommendation on how the federation can work better in the long term not only for Newfoundlanders and Labradorians but for all Canadians.

Most importantly, the new partnership will be a two-way street. The Report stresses the importance of improving the federation through Senate reform, improved First Ministers' meetings and strengthened alliances. In that sense, a new Canadian partnership requires the focused attention of all provinces and territories as well as the federal government. It may mean that the Pathway to Renewal will be a test case of our ability as a country to embrace collaborative federalism.

The Commission is of the view that the political environment in the country presents a unique opportunity for renewed federalism. There is an unusual coming together of new governments and new leaders, both federally and provincially. At the federal level, three of the opposition party leaders are relatively new in their mandates and a new Prime Minister will be in office by February 2004. By that time, as many as seven provinces could have newly mandated governments. Therefore, at the same time as the people of Canada are asking for significant change, there will be revitalized leadership with the opportunity to respond.

Pathway to Renewal

The Pathway to Renewal identifies many areas that require the immediate attention of the two levels of government, including the following five examples:
  • The current environment of competitive federalism dictates that both sides should commit to a more productive relationship based on understanding and collaboration;
  • An Action Team, jointly appointed by the Prime Minister and Premier, should be created immediately to deal with groundfish stock rebuilding, restoration of funding for fishery science and sustaining the all important shellfish resources;
  • Canada should partner with Newfoundland and Labrador and Quebec in a joint effort to ensure that the Gull Island hydro-electric site is developed as a major Canadian project;
  • Both levels of government should revisit the terms of the Atlantic Accord to ensure that the province becomes the principal beneficiary of its offshore oil and gas resources, consistent with the spirit and intent of the Accord; and
  • Both levels of government must be prepared to begin immediate and realistic negotiations on joint management in the fishery.
The Pathway to Renewal is built on the expectation that a new way of thinking and relating - based on fairness, equity and respect - can be achieved on the many issues requiring action. The actions required are not only between the two governments but involve Newfoundlanders and Labradorians pulling together to put an end to Labrador alienation, to meet the challenges of rural sustainability, to make social inclusion a way of life, to give young men and women the freedom to remain in or come back to the province, and to put the province's fiscal house in order. If the Pathway is to have an impact, progress will be evident in the short term. It is important, therefore, that a full assessment of the extent of progress be undertaken. The Report is recommending that such an assessment take place on or before June 30, 2005 and that a report be issued to the people of the province at that time.

Finding Our Place in Canada

The Commission has emerged from its deliberations with a renewed sense of hope and with realistic expectations that the key issues facing the province can be pursued in an environment of collaboration. Commission Chair, Vic Young, stated: "this is what the pathway to renewal is all about. It is about ending the kind of competitive federalism that has marked the relationship between the two levels of government for too long. It is about shifting the focus away from the past and looking to the future. It is about a new federal-provincial relationship that meets the evolving needs of Canada and Newfoundland and Labrador alike. It is about a better and brighter future. It is about making certain that, after 54 years, Newfoundland and Labrador finds its place as a respected partner in the Canadian federation." 

For further information, please contact:
Brent Meade, Office of the Royal Commission
(709) 729-3535 or (709) 727-8250

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