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Prohibition in Canada

Prohibition in Canada came about as a result of the temperance movement. It called for moderation or total abstinence from alcohol, based on the belief that drinking was responsible for many of society’s ills. The Canada Temperance Act (Scott Act) of 1878 gave local governments the “local option” to ban the sale of alcohol. Prohibition was first enacted on a provincial basis in Prince Edward Island in 1901. It became law in the remaining provinces, as well as in Yukon and Newfoundland, during the First World War. Liquor could be legally produced in Canada (but not sold there) and legally exported out of Canadian ports. Most provincial laws were repealed in the 1920s. PEI was the last to give up the “the noble experiment” in 1948.  

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Lobbying in Canada

Lobbying is the process through which individuals and groups articulate their interests to federal, provincial or municipal governments to influence public policy or government decision-making. Lobbyists may be paid third parties who communicate on behalf of their clients; or they may be employees of a corporation or organization seeking to influence the government. Because of the possibility for conflict of interest, lobbying is the subject of much public scrutiny. At the federal level, lobbying activities are governed by the Lobbying Act. Provinces and municipalities have their own lobbying laws and by-laws.

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Political Party Financing in Canada

The financial activities of political parties in Canada were largely unregulated until the Election Expenses Act was passed in 1974. Canada now has an extensive regime regulating federal political party financing; both during and outside of election periods. Such regulation encourages greater transparency of political party activities. It also ensures a fair electoral arena that limits the advantages of those with more money. Political parties and candidates are funded both privately and publicly. Election finance laws govern how parties and candidates are funded; as well as the ways in which they can spend money. (See also Canadian Electoral System.)

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Taxation in Canada

Taxes are mandatory payments by individuals and corporations to government. They are levied to finance government services, redistribute income, and influence the behaviour of consumers and investors. The Constitution Act, 1867 gave Parliament unlimited taxing powers and restricted those of the provinces to mainly direct taxation (taxes on income and property, rather than on activities such as trade). Personal income tax and corporate taxes were introduced in 1917 to help finance the First World War. The Canadian tax structure changed profoundly during the Second World War. By 1946, direct taxes accounted for more than 56 per cent of federal revenue. The federal government introduced a series of tax reforms between 1987 and 1991; this included the introduction of the Goods and Services Tax (GST). In 2009, the federal, provincial and municipal governments collected $585.8 billion in total tax revenues.

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Crown Corporation

Crown corporations are wholly owned federal or provincial organizations that are structured like private or independent companies. They include enterprises such as the Canadian Broadcasting Corporation (CBC), VIA Rail, Canada Post and the Bank of Canada; as well as various provincial electric utilities. Crown corporations have greater freedom from direct political control than government departments. As long as crown corporations have existed, there has been debate about their structure, accountability and role in the economy.