Intergovernmental Relations Post-devolution: Active Labour Market Policy in Canada and the United Kingdom 1996–2006

Abstract Devolution of active labour market policy has been pursued by both the Canadian and UK governments during the past decade and, as a result, new intergovernmental relationships have developed. These are compared, focusing in particular on relationships between the Government of Canada and the Government of the province of Alberta, and the UK Government and the Scottish Executive. The analysis concludes that intergovernmental relations and the workability of the intergovernmental relations system in the two countries are fundamentally different. This is due to distinct features in the structure of the state (the constitution, the number of sub-state governments and the asymmetry between them, how finances are shared, and how power is divided), and in the governing structure for active labour market policy (the degree of decentralization, the power of central government to act, the involvement of actors external to government, and the operation of the intergovernmental machinery) in each country. It is also due to the continued presence in the UK, during the period of this research, of two powerful forces of intergovernmental accommodation not found in Canada—a unitary party system and unified civil service. Keywords: Intergovernmental relationsdevolutionlabour market policy Acknowledgement Donna Wood acknowledges the financial support of the Centre of Canadian Studies at the University of Edinburgh. Thomas R. Klassen acknowledges the financial support of York University. The authors thank the 75 and more individuals in the UK and Canada who participated in confidential interviews as part of this research. Notes The Northern Ireland Assembly was suspended from 2002 to 2007. Canada also has three territorial governments which have a different constitutional status than provinces. Since this paper focuses on provincial governments in Canada, the term 'provinces' is used unless there is a significant territorial dimension. When the Scottish National Party assumed power in 2007, the Scottish Executive was renamed the Scottish Government. Sector Councils were established in the late 1980s, and the Canadian Labour Force Development Board was set up in 1991. This was done in conjunction with a major reform to the Unemployment Insurance programme, which was re-branded as Employment Insurance (EI). Although active measures could be delivered provincially, federal offices would continue to deliver passive Employment Insurance benefits. Since LMDA funding comes from the EI account, most funding can be used only to provide employment services to people who contribute. This effectively excludes those who may be in most need of active measures (e.g. immigrants, disabled, long-term unemployed, youth and aboriginal persons). For example: Youth Employment Strategy (1997), Opportunities Fund (1997), Foreign Credential Recognition (2003), Canadian Council on Learning (2004), and the Workplace Skills Strategy (2004). Wood Citation(2007) assessed that the provincial government now controls 84% of the policy and delivery responsibility for both active and passive labour market policy in Alberta. Alberta entered the Canadian federation in 1905, but did not gain control over natural resource revenues until the 1930s. There were also battles over the National Energy Program in the 1980s. Social Services Ministers and Immigration Ministers are also involved, as labour market programmes for disabled persons and immigrants are dealt with under their auspices. For example, during the period of this research the Government of Canada consulted on a green paper Knowledge Matters: Skills and Learning for Canadians (2002), while the provincial Council of the Federation consulted on Competing for To-morrow: The Future of Postsecondary Education and Skills Training in Canada (2006). In 2005 Jobcentre Plus had approximately 73 000 staff working in 1400 locations across Great Britain. There are different arrangements in Northern Ireland. Employment rights and duties, industrial relations, and health and safety are reserved, as is job search and support, except with respect to career services and assistance provided to people seeking work to obtain training. Wood Citation(2007) estimated that the Scottish Executive now control 45% of the policy domain, given their responsibility for skills training, careers advice, workforce development, job creation, labour market information and targeted measures for vulnerable groups. These include the National Employment Panel, the Skills Alliance, the Social Security Advisory Committee, the Disability Employment Advisory Committee, Sector Skills Councils, and the Sector Skills Development Agency. As well, the Centre for Economic and Social Inclusion hosts over 50 events every year, including welfare-to-work conventions of over 1000 delegates. Cameron and Simeon Citation(2002) suggested that success in intergovernmental relations for provincial politicians and civil servants is measured by their ability to wrestle the initiative from the federal government, limit its ability to intrude on their programmes and priorities, and increase provincial jurisdiction in areas of shared jurisdiction. For federal politicians and officials success lies in their ability to retain visibility, and shape and influence strategic and operational policy.

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