Federal/provincial responsibility-sharing creates inefficiencies, neglect

There is some overlap between the federal and provincial levels of government, known as areas of concurrent jurisdiction. In certain areas, such as taxation, agriculture, old age pensions, and natural resource extraction, both levels of government can pass laws, though if there is a conflict, the dispute may be settled through the justice ​system.​

Federal/provincial shared responsibilities include:

• Agriculture
• Immigration
• Old-age pensions
• Supplementary benefits

Others are cost-shared:

• Healthcare
• Homelessness
• Social housing
• Affordable housing
• Healthcare
• Ontario Disability Support Program (ODSP)
• Ontario Works (OW)

Consequences

Financial inefficiencies

One of the financial consequences of overlap is the redundancy of various program activities, in particular administrative activities. For example, with respect to human resources, a streamlining operation carried out following the merger of two programs would certainly result in cost reductions.

Worse services

Overlap represents a cost to clients since they must make an additional effort to secure the information they need to benefit from the services available from the two levels of government. For example, in the field of tourism, clients sometimes do not know which level of government to turn to for help. For business, the regulatory process can be a nightmare.

Federal-Provincial Program Overlap – Economics Division (1992)

UN expert: Responsibility-sharing between federal and provincial governments systematically creates situations of interjurisdictional neglect in Temporary Foreign Worker program

With due respect for the Canadian constitutional framework, the Special Rapporteur believes that the current arrangements for responsibility-sharing between the Federal Government and the provincial and territorial governments systematically create situations of interjurisdictional neglect that increase vulnerability to contemporary forms of slavery for certain groups and stymie efforts to protect and
assist victims, with particular impacts on Indigenous Peoples, migrants, persons experiencing homelessness and persons with disabilities. The current approach to federalism appears to prevent Canada from effectively fulfilling its human rights treaty obligations. As made clear in the Vienna Convention on the Law of Treaties, a State cannot invoke the provisions of internal laws as justification for its failure to perform a
treaty.

Report of the Special Rapporteur on contemporary forms of slavery, including its causes and consequences – Visit to Canada

Diminished impact

When the two levels of government take a different stand on an issue, the impact of their respective actions is considerably diminished. Moreover, situations fraught with competition and conflict lead to instances of overlap.

Federal-Provincial Program Overlap – Economics Division (1992)

Unclear political responsibility

Two schools of thought exist on this subject. Some feel that overlapping causes members of the public to have less control over their governments. When governments keep throwing the ball back into each other’s court, it becomes more difficult for the public to single out the level of government that is at fault. Overlap can therefore reduce the level of government responsibility.

Others believe, however, that overlap has some positive aspects. They feel that the public interest is better served when there is federal-provincial overlap and that competition between the two levels of government enhances the quality of the services provided, as is the case in the private sector. Those who subscribe to this view also believe that the public can in such instances turn to the other level of government when the first cannot fully meet its needs. Proponents of this theory are of the opinion that some overlap is a sign of a healthy federative system.

Federal-Provincial Program Overlap – Economics Division (1992)

Photo Credit: Adam Scotti (PMO)