Keewatin v. Minister of Natural Resources

Part 11. Post-Treaty Events 187income taxes, the sale and licensing of Crown lands was the engine and fuel of provincialambition. Mowat's strategy, dubbed "Empire Ontario," was to maximize Ontario's area andexploit the resources in the less populated areas of the province for the benefit of the metropolis,Toronto.[966] Vipond's report, Ex. 123, contains the following:At pp. 13-14The basic principle of forest management in Ontario, both pre- and post-Confederation, was thatforests were for rent but not for sale. For various reasons, this basic policy… for Ontario… produced"an extraordinary financial bonanza throughout the last two decades of the nineteenth century." AsNelles notes, "(w)henever the provincial treasurer required additional revenue to meet hisobligations…, the Commissioner of Crown Lands merely auctioned off another batch of timberlimits." … Timber rights…were so lucrative … that, according to Nelles' calculation, between 1867and 1899 timber fees accounted for approximately 30% of the total revenue of the government ofOntario. …2011 ONSC 4801 (CanLII)With so much at stake, Ontario guarded its right to manage its forests vigilantly – even when thisprovoked controversy with the federal government. …At pp. 16-17Political: …The exploitation of natural resources generated revenue that could be used to developthe sort of infrastructure – roads, schools, cheap power – that would generate more revenue. Thiswas the essence of Ontario's strategy to build a modern industrial state. Yet as revenue needs grew,so grew the need to enlarge the hinterland from which resources could be extracted. Thus, for OliverMowat, who served as premier from 1871-1896, extending Ontario's boundaries beyond the limitsestablished in 1867 was absolutely essential to the future health and prosperity of Ontario. ……Extending Ontario's boundary was not simply about economic development, however. There were atleast two political motivations as well. First, by controlling more resources over a broader territory,Mowat's Liberals believed they would build enduring political support for their party andgovernment. … Control over land and natural resources simply increased the opportunities fordispensing patronage enormously.At p. 18:These imperatives, at once economic and political, help to explain why the dispute over theplacement of Ontario's western and northern boundaries became one of the signature strugglesbetween Mowat's Ontario and Macdonald's Ottawa. …[Footnotes & references omitted.[967] After three days of hearings in August 1878, the Boundary Commission decided that thewest/east boundary between Ontario and Canada was about at the westerly limit of the Treaty 3lands. The Disputed Territory, roughly 2/3 of the Treaty 3 lands, was held to be in Ontario. Itwas a big victory for Ontario. There was a huge rally in Niagara Falls and parades were held tocelebrate in Toronto, London and Bothwell.The Conservatives are Elected[968] Before either Ontario or Canada could act on the decision of the Boundary Commission,Macdonald's federal Conservatives won a federal election and took office again on October 17,1878.