Eighteen Years of C.C.F. Accomplishment in Saskatchewan

MR. KENT: The Notice of this meeting advised you that the speaker today would be Hon. T. C. Douglas, the National leader of the New Democratic Party, and formerly the Premier of the Province of Saskatchewan for almost 18 years. On Tuesday afternoon, he advised me that, on account of the debate in the House of Commons on Canada's defence policy that is taking place today and tomorrow, it was not possible for him to be here today. He explained that his party had been urging such a debate for some time and now that it had been definitely announced by the Prime Minister, he had no alternative but to cancel his arrangement with us. He asked me to express his sincere regrets to you and, in addition, he very kindly assisted in having a distinguished personal friend of his take his place.

That friend is the gentleman on my right, Honourable John Hewgill Brockelbank, a veteran minister of the government of the Province of Saskatchewan, who is now the Provincial Treasurer and Deputy Premier of that Province. It was only by flying here last night and returning during tonight that he could undertake this task. We are very much indebted to him. Mr. Brockelbank was born on a farm in Grey County, Ontario. He moved with his parents to a farm west of Battleford, Sask., in 1911 and received his education in Saskatoon. He served in France and Belgium with the Princess Patricia's Canadian Light Infantry in 1917 and 1918. Elected to the Saskatchewan Legislation in 1938, he has been re-elected in every general election since. In the first government, headed by the Hon. T. C. Douglas in 1944, he was Minister of Municipal Affairs. Then Minister of Mineral Resources until 1962.

May I say to Mr. Brockelbank that we are interested in Saskatchewan. We know about the curling Richardsons, the great Regina Roughriders and also that there was some dispute last summer about the introduction of a medicare scheme. We know that by population it is the fifth largest province-that its population has decreased a little in the last 20 years but that its resources have increased considerably. Its development and prosperity is important to all of Canada.

Mr. Brockelbank is going to speak on the subject chosen by Mr. Douglas: "Eighteen Years of C.C.F. Accomplishment in Saskatchewan".

MR. BROCKELBANK: It is an ill wind that blows nobody good. It is my good fortune that your speaker for today is detained in Ottawa and I have the honour and privilege of speaking to you. For you that ill wind has not been so kind.

I wish to thank you for your hospitality and kindness. I am impressed today with modern travel. I left my home in Regina two hours after midnight this morning and I expect to be back in my home by midnight tonight.

The subject I am going to talk about today is very close to my heart but I will try to give you the hard cold facts of the case. The C.C.F. and its successor, the New Democratic Party, is a part of the world-wide democratic socialist movement. Twelve years after its formation the C.C.F. elected in Saskatchewan the first socialist government in North America.

Although this party has not yet elected another government it has had a profound effect on the structure, function and policies of other political parties in Canada. It is not unreasonable to say that people all across Canada have benefited because of the accomplishments of this C.C.F. government.

Critics are fond of repeating that the Saskatchewan economy has been stagnating, that Saskatchewan has been "lagging behind" other provinces and that the Saskatchewan people have been subjected to great amounts of compulsion and coercion. The facts are quite the contrary. Indeed, in many significant respects, Saskatchewan far from "lagging" has shown higher rates of growth than most other provinces. In addition many measures have been pioneered in Saskatchewan which have removed basic anxieties enabling her people to pursue richer and more wholesome lives.

To demonstrate this we have, where possible, relied upon official Dominion Bureau of Statistics and Saskatchewan Economic Review reports to compare conditions that existed in 1944 and those that prevailed in the latest year for which official statistics are available. In some cases official statistics do not go back as far as 1944. In those cases, the earliest available figures have been used.

In 1944, less than 18% of the net value of commodity production in Saskatchewan came from outside agriculture. By 1960 this had risen to over 50% even though 1960 was one of the better years for agriculture. The net value of non-farm production was in 1960 more than 5 times what it was in 1944.

Far from "stagnating", non-farm production has grown faster in Saskatchewan since 1944 than in any other province except Alberta and more than twice the national average. In terms of the rate of increase from 1944 to 1960, Saskatchewan ranks highest of any province in mining, second highest in manufacturing, second highest in electric power and third highest in construction.

The growth in mining has been particularly spectacular. The net value of mineral production in Saskatchewan has increased about ten-fold between 1944 and 1960, the fastest rate of growth of any province, more than twice the rate of increase for all Canada. Since 1960 Saskatchewan has started to produce potash which adds even more to this impressive growth. In 1944, Saskatchewan ranked sixth among the mining provinces. Today it is fourth. No one will claim that Saskatchewan is an important manufacturing province. It isn't. At least not yet. But it is not nearly as far behind as it was in 1944. The rate of increase in the net value of manufacturing in Saskatchewan is second only to that in Alberta and considerably higher than the national average.

Political opponents take delight in saying that there are very few more employees in manufacturing in Saskatchewan now than in 1944. This is true. But this is also true for Canada as a whole.

From 1944 to 1960, manufacturing employees in Saskatchewan increased from 12,361 to 12,918, an increase of 4.5 %. For all of Canada manufacturing employees in 1944 numbered 1,223,000. In 1959 the total was 1,304,000, or less than 7 % more.

It is of interest to note that approximately 2,000 of the 12,000 manufacturing employees in Saskatchewan in 1944 were engaged in war-effort sawmill operations. A Saskatchewan Royal Commission on Forestry determined that at the rate of cut in existence then, Saskatchewan's timber resources would be depleted in a few years. To protect the future of this industry the government set limits on production on a sustained yield basis resulting in a reduction of approximately 1,800 employees in this particular industry. An increase of 4.5% in the number of manufacturing employees in Saskatchewan as compared to less than 7% for all of Canada is rather remarkable in view of the tremendous decrease in employment in this one industry.

The productivity per worker in Saskatchewan manufacturing industries in much higher than the national average. Expressed in terms of "net value of production" per worker in manufacturing, the increase nationally in the period 1944 to 1960 was 147%. During the same period, productivity per manufacturing worker in Saskatchewan increased 181%, the fastest rate of growth of any province. In 1944 Saskatchewan was fourth in terms of productivity per worker exceeded by British Columbia, Alberta and Ontario. In 1960 Saskatchewan stood first amongst the Canadian provinces. In other words, while the productivity per worker in Canadian manufacturing was about the same in 1944 as in Saskatchewan, by 1960, the net output per worker in Saskatchewan was running 14% higher than the national average and growing at a faster rate than in any other province.

Next to mining, construction has increased most rapidly in Saskatchewan, increasing almost six-fold in terms of net value of production from 1944 to 1960. Saskatchewan ranked third in terms of rate of growth in construction being exceeded by Manitoba and Alberta but the differences among the three were not very great.

Again in electric power, the sinews of industry, Saskatchewan has shown a phenomenal rate of growth increasing almost four-fold from 1944 to 1960 and at almost twice the national rate. Only Alberta exceeded Saskatchewan's rate of growth during the period.

The number of domestic users of electric power in Saskatchewan rose from 58,089 in 1944 to 215,732 in 1960, an increase of 271 %.

Agriculture is the most vulnerable point in the Saskatchewan economy. First of all, there are very considerable year to year variations in production due to the weather. For instance, wheat production in the post-war period has varied from 449 million bushels in 1952 to an estimated 124 million bushels in 1961.

Secondly, by far the greatest part of Saskatchewan's agricultural production is shipped outside the province. Grain in particular is generally exported outside Canada. Thus the return to Saskatchewan farmers is determined in a market over which they have no, or little, control. This has been reflected in the fact that the price to the Saskatchewan farmer for a unit of production is very little higher now than it was in a post-war year like 1947 (and is considerably below the post-war peak of 1951) while the general price level has advanced considerably.

As a result of these two factors, the net value of agricultural production has, in the post-war period, varied between a high of $810 million in 1952 to an estimated low of $181 million in 1961. There is no doubt that this variability due to weather and depressed farm prices has had considerable adverse effects on the Saskatchewan economy. That in spite of this the industrial advance in Saskatchewan should be so considerable must be regarded as a remarkable achievement. The agricultural cost-price squeeze has made it extremely difficult to maintain an adequate standard of living from farming. There has been a simultaneous technological revolution in agriculture. This problem has been extremely acute in Saskatchewan and has demanded considerable attention from the provincial government. Some measure of success in meeting this problem is reflected in the fact that in 1956 only 4,487 or 4% of Saskatchewan's 103,391 farms produced less than $1,200 a year, compared to 21 % for all Canadian farms or less than 1/5 of the Canadian average. Saskatchewan is third amongst the ten Canadian provinces in terms of the number of farms, but 10th in terms of the percentage of farms producing less than $1,200 per year.

Saskatchewan's per capita personal income, the amount of money available to every man, woman and child, clearly illustrates the importance of agriculture to Saskatchewan's economy and also the beneficial effect of industrialization.

In 1962, a better than average crop year, Saskatchewan's per capita personal income is expected to be above the Canadian average. It is estimated at $1,673 per capita or an increase of 163% over 1945. This compares with $1,184 per capita in 1961, a crop failure year.

Saskatchewan's personal farm income in 1961 at $67 million was the lowest it had been since 1941, yet Saskatchewan's personal income per capita in 1961 was 290% over what it was in 1941 compared with an increase for all Canada of 203% during the same time period. Despite the worst crop failure in 20 years, Saskatchewan's 1961 per capita income increased 86% over 1945.

The opposition has tried to claim that investment has lagged in Saskatchewan. The truth is just the opposite. Official D.B.S. investment figures only go back to 1948. In 1948, in terms of private and public investment per capita, Saskatchewan ranked only sixth among the provinces and was almost 20% below the national average. Alberta, British Columbia, Ontario, Manitoba and Quebec, all were ahead of Saskatchewan. Saskatchewan was ahead only of the Atlantic Provinces.

In 1962, on the other hand, Saskatchewan was third exceeded only by Alberta and British Columbia and was 11 % above the Canadian average. In this period (1948-62 ), public and private investment has grown at a rate 10% greater than the Canadian average.

Well, then, the opposition says, if there has been so much industrial advance why has the population of Saskatchewan grown so slowly? The answer, of course, is that they are looking at the wrong figures. They have looked at total figures which include farm population when they should have looked at urban population.

Farm population, as is generally known, has been declining throughout Canada and since Saskatchewan has the largest proportion of rural population of any province, the impact of this decline on total population has been greater in Saskatchewan than in other provinces. During the last twenty years the number of Saskatchewan farms decreased by 32,976 from 126,900 in 1941 to 93,924 in 1961. The average size of farms increased by 213 acres from 473 acres in 1941 to 686 acres in 1961, or 45%.

To examine the impact on population of industrial growth, one naturally looks at urban population. Here in recent periods, the rate of growth in Saskatchewan has been the second largest in Canada exceeded only by Alberta. For instance, from 1951 to 1956, its urban population increased by 27.5% as compared to 21.5% for all of Canada.

The Liberal Party has constantly blamed the C.C.F. government for the relatively slow rate of total growth of population in Saskatchewan. What they fail to mention is that Saskatchewan's population began to decline following the 1931 census. By 1951 this trend had been reversed with steady increases since that time. In the decade 1951 to 1961, Saskatchewan's population increased by 11.2% and surpassed the mark reached in 1931. This is significant when we compare it with population statistics of North and South Dakota-two American states just immediately south of Saskatchewan with the same topography and economic conditions as those in Saskatchewan. In the decade 19501960 North Dakota's population increased by 2.1% and South Dakota's by 4.1%. By 1960 neither state had the population they had in 1930.

The opposition has often claimed that the C.C.F. government has meant a big crew of so-called bureaucrats in Saskatchewan. The truth is that far from having the biggest bureaucracy, Saskatchewan has one of the smallest in Canada. Of the eight provinces reporting, Saskatchewan ranks only fifth in terms of the number of civil servants per population and this in spite of programmes that exist in Saskatchewan for which there is no duplicate in other provinces.

Prince Edward Island, Newfoundland, Alberta and Nova Scotia are higher. Only New Brunswick, Ontario and Manitoba are lower. Quebec and British Columbia have refused to supply this information to the Dominion Bureau of Statistics.

Moreover, Saskatchewan's C.C.F. government has by far the best record of any provincial government on civil service reform. Under legislation introduced by the C.C.F. following a survey by the objective Public Administrative Agency of Chicago, a merit system for the appointment and promotion of civil servants was established. This is completely independent of government control. Under this reform, two divisions of an independent Public Service Commission were formed; a Classification Division to rank and rate every position within the civil service and outline the qualifications necessary for the job; and a Selection Division to administer the merit system for the appointment and promotion of civil servants.

In the fall of 1944 the C.C.F. government passed legislation extending bargaining rights to civil servants. To this day Saskatchewan is the only province to grant civil servants collective bargaining rights with the Crown.

Saskatchewan's provincial taxation is below the national average. In the 1961-62 fiscal year, Saskatchewan's per capita provincial tax was 11 % below the national average ($88.01 as compared to $99.43). It was only a little more than two-thirds of the per capita provincial tax in Ontario and British Columbia and also lower than Quebec.

This is on the basis of comparable figures and does not include the taxation required for the medical care programme in Saskatchewan since in other provinces without the medical care programmes, an equivalent amount would be spent privately. However, even providing for what might be raised in a full year by the increase in the sales tax and income tax, Saskatchewan's per capita provincial tax would still be lower than British Columbia and Ontario. Even more important to recognize is that federal taxation per capita is more than 3 times as high as Saskatchewan's provincial taxation.

Today Saskatchewan's per capita tax burden is third amongst Canadian provinces even when including the recent increases for medical care. There was a time however, when Saskatchewan's per capita tax burden was second (just below British Columbia) and well above the Canadian average. The year was 1943-44-the last year of Liberal administration in Saskatchewan. Between 1943-44 and 1961-62, per capita taxation in Saskatchewan rose 4.2 times while per capita provincial taxation for Canada rose by 5.8 times. During this time, New Brunswick was the only province which had a lower rate of increase and this stood at 4.0, only slightly lower than Saskatchewan.

The Liberal Party claims that since 1944 the Saskatchewan Government has introduced 600 new taxes and increased 600 others. While this is true of Saskatchewan and indeed, true of most other provinces, it is of interest to note just how these totals were arrived at. Fifty-one of the 600 new taxes were royalties on power and telephone poles of various heights and widths. Since 1944 there has been a $1 increase in 11th grade correspondence school fees. Accordingly, the Liberals list this as a tax increase. Hundreds of similar trivial instances can be found. It was in such a manner that the Liberals arrived at their grandiose totals of new taxes and tax increases.

The real measure of the debt burden on a provincial government is the net debt. This is the gross debt less assets. The opposition, however, talks about the gross debt of the province which was $517.3 million at March 31, 1962, as compared to $218 million on April 30, 1944. The point is, however, that the net debt has shrunk from $145.0 million in 1944 to about $22.6 million at March 31, 1962. Indeed, Saskatchewan now has the second lowest per capita net debt charges of any province. Only Alberta spends less on debt charges.

The financial record of the Saskatchewan C.C.F. Government is a remarkable success story and reveals sound business-like management of the province's fiscal affairs. Budgetary surpluses were achieved in 16 of the 18 years the government has been in office. Total budgetary surpluses amounted to $91,331,362. Total budgetary deficits came to $5,780,602, leaving a net surplus of $85,542,760. This surplus has been the major item in the reduction of Saskatchewan's net debt.

The opposition has attempted to create the impression that the story of Saskatchewan's Crown Corporations is one of failure and heavy financial loss. This is far from the case. The total deficit of those Crown Corporations which lost money was $1,850,000 but this has been more than counterbalanced by surpluses of $14,770,000 realized by other Crown Corporations established by the C.C.F., as well as surpluses of $46,790,000 on the two crown corporations in existence in 1944 which have been tremendously expanded under the present government.

School grants in fiscal 1962-63 will be $34,700,000 as compared to less than $3,000,000 in 1944. In 1962-63 school grants were 112 times the total financial assistance given schools in the 11-year period 1934-44. Since assuming office the C.C.F. has contributed $257,383,000 to local ratepayers in the running of their schools.

Better salaries has increased teachers' standards resulting in better education for Saskatchewan's youth. In 1962 the average teacher's salary in Saskatchewan was $4,570 or a 291% increase over the 1946 figure of $1,167. A result of this is that the number of Grade 12 examination papers getting passing marks or better is continually increasing. The total in 1953 was 23,204; in 1955, 37,333. In 1962, the total reached 65,329.

In 1949 the government established a Student Aid Fund to assist students to obtain further knowledge after completing high school. To date 11,113 students have obtained loans valued at $3,489,895. In 1959 the Legislature voted to provide scholarships for Grade XII graduates proceeding to courses in institutions of higher learning. In 1962, 395 scholarships were awarded with a value of $178,700. To date 1;419 students have been given scholarships totalling $654,900.

In 1960 the Legislature voted to assist teachers holding Standard Certificates to attend university and work toward a Professional Certificate. During the past 3 years $171,000 has been given 172 teachers under this programme.

Enrollment at the University of Saskatchewan has increased by 290%, from 1,530 students in 1945 to 5,971 students in 1962.

Provincial operational grants to the university were $4,143,000 in fiscal 1962-63 an increase of 702% over the $550,000 granted in 1944. Total operational grants since 1944 amount to $32,588,000. Facilities at the university have almost trebled in the last 18 years. Capital expenditures since 1944 amount to $30,930,000 making a total provincial expenditure at the University of Saskatchewan of $63,518,000.

The welfare of the people must be the first concern of any government. In Saskatchewan the government has carried this concern for the welfare of the people to a new high.

There are approximately 60,600 Saskatchewan people for whom the provincial government assumes complete or partial financial responsibility.

The senior citizen care programme is without parallel in Canada. 4,000 are accommodated in modern housing and nursing homes built by municipal, church and charitable organizations with provincial assistance. (More than 600 others live in provincial geriatric centres.)

In 1947 Saskatchewan led the way for Canada when it introduced a comprehensive Hospital Services Plan. In 1962 it again led the way with a prepaid medical care plan.

Since its inception the Hospital Services Plan has paid $330,168,000 in hospital bills for Saskatchewan citizens, increasing from $7,000,000 in 1947 to $38,106,600 in 1962. In addition, the plan has had a direct effect upon raising hospital standards and thereby improving health conditions in Saskatchewan. The removal of all financial barriers has resulted in an increase in the number of citizens receiving hospital treatment. In 1960 Saskatchewan was first amongst the provinces in terms of the number of hospi-tal admissions per 1,000 population being 49% above the Canadian average. In 1946 Saskatchewan was third and only 29% above the Canadian average. The number of deaths per 1,000 admissions dropped to 20.4 in 1960 from 23.0 in 1946. Saskatchewan's position amongst the provinces in this respect improved to third place in 1962 from fifth place in 1946. In other words, Saskatchewan far outstrips other provinces in hospital admissions and is at the same time reducing the death rate per 1,000 hospital admissions.

Just as the Hospital Services Plan has improved hospital standards and the health of Saskatchewan citizens, so can it be expected that the recent Medical Care Plan will, in time, raise medical standards and increase the level of health of Saskatchewan residents.

In 1945 the province started to provide assistance toward the construction costs of general hospitals. Saskatchewan now has the highest number of hospital beds per 1,000 population in Canada. In 1944 Saskatchewan was fourth in this respect amongst the provinces and was below the Canadian average.

Saskatchewan had the first cobalt bomb for treatment of cancer in Canada. It has a free cancer diagnosis and treatment programme. We established the first air ambulance service in Canada. Close to 14,000 seriously ill or severely injured patients have been transported by air ambulance since the service began. Saskatchewan was the first province to provide free polio shots for all its citizens.

Saskatchewan has the most advanced labour legislation in Canada. Outstanding features of this are: highest basic minimum wage, most effective provisions for prevention of child labour and the best provisions for holidays with paythree weeks after five years with an employer. Other provinces range from nothing to two weeks. It is the only province with 8 paid public holidays, collective bargaining rights for civil servants-again the only province with such provisions, equal to or better than other provinces in workmen's compensation, hours of work, fair employment practices, equal pay for women and the greatest assistance to apprentices and unemployed trainees.

The Saskatchewan Power Corporation power generating capacity has increased almost 1,500% since 1943 from 34,000 kw to 546,000 kw. Electrical customers (including customers in communities purchasing power in bulk) have increased from 71,887 in 1948 to 262,824 in 1961, an increase of 266%. In 1944 only 293 farm homes were served by electricity. By 1961 this number had increased to 57,996. The total number of rural customers in 1961 is 162,201. Investment in the Saskatchewan Power Corporation is $382,000,000.

In ten years the Saskatchewan Power Corporation has increased its natural gas customers from 290 to over 88,000 in all cities and in 130 towns and villages. Purchases of gas from the corporation were $39,423,000 in 1961, an increase of close to 100 times over 1953 purchases of $423,000.

There has been a 332% increase in the number of Saskatchewan Government Telephones in the last 18 years, from 47,000 in 1944 to 203,000 in 1962. Steady progress is being made towards providing 24 hour service for all Saskatchewan Government telephone users. Ninety-seven per cent of the telephone users enjoyed 24 hour service in 1962 as compared to 91% in 1959. Automatic dialing systems are being installed at a rapid rate. To date 170,000 or 84% of S.G.T. customers enjoy automatic dial service. Financial assistance is given by the publicly-owned telephone system to rural telephone customers so that telephone service for farm families will be further improved.

Motorists in Saskatchewan have the protection of the most outstanding automobile insurance in Canada. They have the only automobile insurance provided at cost.

Because of the many unique features of the Compulsory Automobile Insurance Plan in Saskatchewan, not found anywhere else in North America, it is necessary to combine the coverages under the Compulsory Plan with the additional benefits provided by a Package Policy in Saskatchewan, to arrive at a basis of coverage which is comparable to that which might be obtained in the other provinces. Automobile Insurance rates in Saskatchewan are substantially lower than those in other provinces.

Increased provincial assistance in such fields as education and local roads has kept Saskatchewan's per capita rural municipal tax burden considerably below the average for the five westernmost provinces. This can be illustrated when one considers the rural tax burden on each acre of taxable land. Saskatchewan's tax burden per taxable acre is 21 % below that of Alberta and 37% below that of Manitoba. Saskatchewan's per capita municipal debt is the lowest of the five westernmost provinces. As a result Saskatchewan citizens pay substantially less in debt charges resulting in larger amounts of money available for providing needed municipal services.

In 1960 the provincial government embarked upon a bold new programme to provide water and sewer facilities for citizens in Saskatchewan towns and villages.

Better rural travelling while keeping the tax burden to a minimum has been a prime aim of the Saskatchewan government. In the past 18 years $59,210,000 has been made available to municipal authorities to build and improve grid roads, bridges and ferries. The importance the Saskatchewan government places on improving rural life is indicated by the tremendous increase in funds made available for this programme. In 1962-63 funds expended on the programme were $6,827,500 as compared to $546,300 in 1944-45, an increase of over 1,100%.

In the past, Saskatchewan was constantly criticized for the condition of its roads. When the C.C.F. came to power in 1944 they inherited a highway system with only 13 8 miles of dust free roads. Substantial progress has been made since then with close to 3,000 miles of dust free roads in Saskatchewan as of March 31, 1962. It should be remembered when comparing various provincial highway systems that Saskatchewan has greater total road mileage than Manitoba and Alberta combined. Saskatchewan was the first province in Canada to complete its section of the Trans-Canada Highway.

I have probably bored you with statistics and what you may think is bragging. Is assure you I have kept to the facts. If I have bored you with these facts you will understand why I had to do so if you hear our opposition.

THANKS OF THE MEETING were expressed by Mr. Sydney Hermant.