The Constitutional Accountability for the allocation mechanism
(i.e. allocation of
resources, taxation, investment and liquidity in the economy) is
shared between the federal and provincial governments. As stated in
the Canadian Constitution, government has a commitment to furthering
economic development and to reducing disparity in opportunities.
promoting equal opportunities for the well-being of Canadians;
(b) furthering the economic development to reduce disparity in
opportunities; and
(c) providing essential public services of reasonable quality to
all Canadians.
It is significant for the Community Charter Act that the regional
and municipal governments have an administrative function and mandate
broadly limited to land uses and infrastructure planning. Revenue is
limited to property tax, business tax and transfers from senior
governments.
Canada’s Economic System
Whoever we are and wherever we live in BC and Canada, or anywhere
else in the world, the fundamental factors that create social
satisfaction is the same.
Quality of life, a good ecology, a stable tax base and political
stability depend on investment in sustainable economic production in
enterprises that distribute wealth in the local community via
employment.
What is government’s task in a democratic mixed economy such as
ours?
Investment in economic production, wealth generation and wealth
distribution depends on two interrelated fundamentals:
- a competitive sustainable business and industrial sector which
in pursuit of profit combines our resources into economic
production - distributing wealth and securing the tax base through
employment,
- a government sector that provides the service that the pricing
mechanism and private sector fails or is unable to provide, as
well as those services which the community in good democratic
order has decided should be provided by government. (Not to say
that government service must always be excluded from the pricing
mechanism.)
Today, most agree that the economic production of a competitive and
sustainable industry that generates well-paid jobs is the best way of
generating and distributing wealth and securing social satisfaction.
Experience over the past fifty years shows that the alternate method
of distributing wealth via tax transfers and individual and corporate
welfare is not sustainable.
We need government to monitor and identify problems in the
allocation mechanism that hamper investment, liquidity flow, and
economic production. Most will agree, it is not realistic to believe
that industry will take an overall community responsibility for these
issues.
Since community development depends on economic production
occurring in the local community, government’s first responsibility
must be to analyze and monitor shifts in the economy and marketplace
and to identify issues facing all sectors and individual industries
important to a local economy.
The questions society must ask:
What level of government has the accountability to identify and
address issues in the regional and local economy – such as in Prince
Rupert and recently in Kelowna - before the problems become acute?
What product and service can best be provided by:
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