Canadian federation works best when Ottawa doesn’t encroach on provincial jurisdiction

VANCOUVER—Canada’s federal and provincial governments are the most successful—and regional unrest is quietest—when the different levels of government remain in their constitutional lanes, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Except for certain federal interventions during times of national crisis, Canada functions best when the federal government doesn’t interfere in matters of provincial responsibility,” said John Ibbitson, media fellow with the Fraser Institute and co-author of Stay-in-Your-Lane Federalism: Keeping the Peace in Federal-Provincial Relations.

The study outlines the powers and responsibilities of the federal government in Canada versus the provincial branches and documents the history—and effect—of Ottawa intruding into provincial areas of jurisdiction.

It finds that when the federal government encroaches on provincial responsibility, such as during the 1970s, regional tensions and separatist threats increase. By contrast, during times of so-called “passive federalism” when Ottawa doesn’t intrude in areas of provincial jurisdiction, such as the mid-1990s to 2015, regional tensions and support for separatist movements subside.

Crucially, since 2014/15, Ottawa has been intruding again into areas of provincial responsibility, notably with dental care, pharma care, daycare and the carbon tax, among other policies.

In fact, in 2023/24 (the latest fiscal year of available data), federal transfers to the provinces totalled $100.2 billion—an increase of 58.8 per cent since 2014/15.

“Ottawa’s increasing intrusions into provincial areas of responsibility have led to increased regional tensions and separatist threats in Quebec and Western Canada,” said Livio Di Matteo, senior fellow at the Fraser Institute and co-author of the study.

“The evidence is clear—the Canadian federation works best, and national unity is strongest, when Ottawa and the provinces stay in their own constitutional lanes.”

Media Contact:
John Ibbitson, Media Fellow, Fraser Institute
Livio Di Matteo, Senior Fellow, Fraser Institute

To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 poste 721
drue.macpherson@fraserinstitute.org