Royal Commission on the Economic Union and Development Prospects for Canada : The Royal Commission on the Economic Union and Development Prospects for Canada was established under Order in Council P.C. 3438, dated 5 November 1982, under Part I of the Inquiries Act (R.S.C., 1970, c.I-13) and on the recommendation of the Prime Minister. Further appointments of commissioners were made by Order in Council P.C. 3582, dated 25 November 1982 and P.C. 158, dated 25 January 1983. The Commission was mandated to inquire into and report upon the long-term economic potential, prospects and challenges facing the Canadian federation and its respective regions, as well as the implications of such prospects and challenges on Canada's economic and governmental institutions and the management of Canada's economic affairs. The study was to include an examination of: (a) the appropriate national goals and policies for economic development, including the following: trends in labour market requirements and conditions; developments in the supply of raw materials, including energy sources; capital requirements and the cost structure in a highly competitive, technologically-sophisticated and interdependent world environment; trends in productivity, standards of living and social progress; industrial adjustment and growth; regional economic development opportunities and constraints in a national economic framework; the integrity of the Canadian economic union as it relates to the unity of Canada and the ability of all Canadians to participate in increased economic prosperity; and (b) the appropriate institutional and constitutional arrangements to promote the liberty and well-being of individual Canadians and the maintenance of a strong and competitive economy including the following: means for improving relations between governments, business, labour and other groups in Canadian society; the appropriate allocation of fiscal and economic powers, instruments and resources as between the different levels of governments and administrations; changes in the institutions of national government so as to take better account of the views and needs of all Canadians and regions, and to encourage the further development of the Canadian economic union.
The Commissioners were to proceed by reference to the following principles: (a) the Canadian economic is founded on the enterprise and productivity of individual Canadians supported by a unique mixture of public and private sector activity that reflects the traditional values of Canadian society; (b) Canadian economic policy must be assigned in the context of its relationships to Canadian political and economic independence and to the broader aspirations of Canadians as must be reflected in the responsibilities of governments; (c) the Government of Canada has the primary responsibility for managing the national economy, for encouraging reasonably balanced economic growth among the various regions of the country and for ensuring that fiscal disparities among provinces are reduced, while at the same time the provincial governments also have important responsibilities in the development and carrying out of economic and social policy; (d) the report was to take account of, and respect, the spirit of the Constitution of Canada and assume a continuing Canadian federal structure not significantly different from its present form. The commissioners were Donald Stovel Macdonald, Chairman; Clarence Lyle Barber, Albert A. Breton, Mary Angela Cantwell-Peters, E. Gérard Docquier, William M. Hamilton, John R. Messer, Laurent A. Picard, Michel Robert, Daryl Kenneth Seaman, Thomas K. Shoyama, Jean Casselman-Wadds, and Catherine T. Wallace. The secretary was J. Gérard Godsoe.
In the early 1970s, when oil price increases disrupted the world economy, accepted economic policies were called into question. As a result, Prime Minister Trudeau contemplated the establishment of a royal commission on Canada's economic future. In 1978, Alan Nymark, a government economist, produced a draft of the terms of reference for one. Nymark continued to plan for the establishment of a public inquiry on our economic prospects and helped bring about its appointment in November 1982.
Because of the recession, the economy was the main focus of the commission but there were other important issues facing the country. According to the Commissioners:
"The Royal Commission on the Economic Union and Development Prospects for Canada was established in the fall of 1982, in the aftermath of one of the most turbulent periods of Canadian history. On the economic side, Canada was just emerging from the worst recession since the 1930s. For much of the previous decade, the country had endured unprecedented levels of inflation .... In addition, however, we conducted intensive, often decisive, domestic debates over enormously complicated and difficult issues such as energy policy, our new Constitution and, especially, the question of whether Quebec would remain a part of Canada."
In order for Canada to plan for the future, the Prime Minister wanted the commission to examine the country's long-term economic potential. According to Prime Minister Trudeau, "we must look further ahead to see in what ways the country and its institutions might change to take full advantage of future opportunities for development" ... If we are to prosper we must find ways to lessen the clamour of federal-provincial argument, and to reach a consensus with far less pain. But, if this is to be achieved, we must ensure that national policies are designed so that all parts of Canada can benefit from them, and that national institutions are truly reflective of regional needs."
It is important to note that the "Macdonald Commission" proposed a free trade agreement between Canada and the United States. In fact, the Government of Canada opened trade negotiations with the Americans shortly after the commission completed its work and a Free Trade Agreement was signed between the two countries in January 1988 (see Robert Fulford, "Mission Impossible", Saturday Night, March 1985, pp. 34-41; Report of the Royal Commission on Economic Union and Development Prospects for Canada, Vol. 1, pp. xi-xiii and Office of the Prime Minister, Press Release, 5 November 1982).
Two rounds of public hearings of the commissions were held. In addition, a number of private meetings, seminars, town hall meetings, round table discussions, etc., were conducted with groups in the public and private sector. The first round of hearings took place in 27 towns and cities, across Canada as well as in five Arctic communities, from 6 September 1983 to 16 December 1983. The second round of hearings was held in Halifax, Montreal, Toronto, Calgary and Vancouver from 30 May 1984 to 28 June 1984. The commission filed 1,516 submissions. RG33-137 General Inventory
