12 JULY 1946, Page 5

NEWFOUNDLAND'S FUTURE

By JOHN PARKER, M.P.

ELECTIONS for Newfoundland's National Convention have just taken place. This will be called together at a date most con- venient to its members, who have their livings to earn and who have to make the most of the short summer ; it is unlikely, therefore, to meet before the early autumn. The Convention will have to advise the British Government as to the best future form of government. Any recommendations will be submitted for final decision to a referendum of the whole people. For thirteen years Newfoundland has been ruled by a Commission consisting of three Britons and three Newfoundlanders under the chairmanship of the Governor; all appointed by the Dominions Office. A succession of deficits in the 'twenties reached catastrophic proportions in the slump of 1930-1933, and led to a suspension, by agreement, of responsible government. Further deficits in the late 'thirties, which were met by the British taxpayer, ended only with the wave of war-time prosperity which accompanied the construction of American and Canadian bases. Full employment produced large surpluses, which have created a reserve of over 30,000,000 dollars. The world demand for Newfoundland's fish in a period of food shortage has continued this good fortune, but there is no certainty that it will last. In making recommendations, the Convention will have to consider very seriously the future economic prospects of the island.

Settled from the West Country, Ireland and the Channel Islands and keeping its distinctive accent and traditions, Newfoundland has over 300,000 inhabitants.. A sixth of them live in the capital, St. John's, and most of the remainder are strung out in small "outports " along the coastline of an island somewhat larger than Ireland and its dependency of Labraddr which many times exceeds it in area. The fisheries have always been the chief source of employment. A small group of " Water Street Merchants " have controlled the export of their chief product—dried salted cod—and the import of the many necessities not.home-produced. The merchant has made a habit of advancing credit to the fisherman for the fitting-out of his boat and for his winter needs, and has taken his catch in return ; to cover himself he has charged high prices. The chief markets for cod have been the Mediterranean, West Indies and Brazil. A long-term decline in this trade is undoubtedly in progress owing to a gradual rise in the standard of life and increasing competition from other sources of supply. Before the war, therefore, prices obtained for cod were tending to fall.

The papek industry is the second most important from the point of view of employment, and far the most prosperous. Two large British companies, the Anglo-Newfoundland and Bowater-Lloyd's, have obtained concessions of the principal reserves of timber, and have developed modern paper-mills adjacent to well-laid-out company towns at Comerbrook and Grand Falls, the second and third largest towns in the island ; care has been taken to see that natural regenera- tion equals the cut. Mining is the only other industry of any size-- for iron ore on Bell Island, fluor-spar on the South Coast and lead and other ores at Buchans in the interior. Agriculture has never been fully developed, and a large part of the foodstuffs consumed have been imported, even those which could have been produced in New- foundland. This was partly due to the shortage of good soil, the best land being in the west, the last part of the coast to be settled. Also, men in the outports were out fishing most of the summer, which prevented them from clearing sufficient land. The holdings worked by their wives have been sufficient to provide only potatoes, a few other vegetables and an inadequate number of livestock. A railway- line across the island, the principal means of communication in a country so lacking in roads, and the essential coastal steamer services have been run by the Government for many years at a small annual loss.

It being impossible to collect direct taxation from most of the inhabitants, and Water Street being unwilling to pay much, the Government obtained most of its revenue from duties on imports. These provided protection for a few industries serving the tiny local market, but raised the already high cost of living to a fantastic level. Before 1939 poverty stalked the land. A large part of the population was on a low standard of poor relief ;- gross malnutrition was wide- spread ; T.B. ravaged the people ; housing was usually good in the outports, but there were bad slums in St. John's and Bell Island. When responsible government was suspended in 1933 Newfound- land's political system was discredited. The House of Assembly had been controlled in turn by rival groups backed by different Water Street merchants, and the spoils system had been in full operation. The civil service thus lacked security and experience. Trade unionism was practically non-existent, and there was no local govern- ment, with the unencouraging exception of St. John's. The only real experience in self-government was in the churches, which locally provided such schools as there were.

The first few years of Commission government were disappointing. Their principal achievement was the creation of a civil service on the British model ; the administration was freed from outside pressure and the tariff revised to reduce the cost of living. The continued deficits at first made it difficult to begin on any large-scale projects, and then the coming of the war delayed many schemes. A start was, however, made on a cottage-hospital system to cover most of the country. Then, as surpluses began to pile up, the Commission, at the request of the Dominions Office, worked out a ten-year recon- - struction programme. This was to be financed in the main by a £20,000,000 grant from the British Government, but the end of Lend- Lease terminated such prospects andlorced Newfoundland back on its own resources.

Education was made compulsory, a big school-building programme initiated and teachers' salaries raised. Inquiries were made into the problems of malnutrition and T.B. and the first steps taken to deal with them. A big housing scheme was started at St. John's. A Fisheries Board was created under the leadership of Mr. Ray Gushue, which improved the quality and prices of exports before 1939 ; the war consolidated its position. Bait and salt depots were organised near the fishing-grounds and the co-operative marketing of fresh lobsters from the west coast was encouraged. The building of a series of quick-freezing plants along the coast was pressed, if necessary with Government financial assistance. It was hoped that these would form nuclei for larger centres of population where better services could be provided than in the small outports. A good market in the American Middle West was anticipated. Considerable develop- ments have already taken place, but high prices in recent years have retarded modernisation. The traditional salted cod still supplies the larger part of the exports, and the Water Street merchant remains the dominant figure in the industry. Much of the drive for modernisation came from Mr. Dunn, a Scot who was Commissioner for Natural Resources for some years. He also imported land-clearing machinery.. This has been used to enlarge existing holdings and to clear a large area in the fertile Humber Valley where ex-Servicemen are to be settled. If these schemes continue Newfoundland should produce a much larger proportion of her food. During the war a ship-building yard was opened at Clarenville, where a dozen wooden motor cargo vessels, mainly for coastal trade, were constructed. It is intended to fit some with refrigerating plants so that they can take part in the fish trade.

A preliminary survey of hydro-electric resources showed plenty of power available. Newfoundland possesses few raw materials for manufacture, and has a population too small to provide a large home market. An agreenient has recently been made to exploit further timber areas in Labrador, and there are immense iron-ore resources in its interior. Apart from this find, prospecting for minerals has been disappointing. The great trans-Atlantic airport of Gander is in Newfoundland, and Goose, which is leased to Canada, is on her Labrador territory. The high cost of snow-clearance, however, means a subsidy of a million dollars a year, even if Gander is used as widely as is anticipated. It should, however, help to build up tourist traffic.

Under the Commission Government there has been a growth in democratic practices. Strong trade unions now exist among fisher- men, loggers, miners and civil servants ; the co-operative movement, with Government assistance, has become influential, especially on the west coast. Most of the larger settlements have elected urban district councils ; a few smaller outports have combined to form rural districts. Government encouragement of local initiative usually takes the form of a dollar-for-dollar grant. Intense dislike of local taxation has, however, had to be fought, and the mining community of Bell. Island, despite its slums, has refused to create a local council. Excel- lent work has been done by many councik in general " tidying-up."

Such is the record of the Commission which will have to be con- sidered by the Convention. The introduction of the rule by which all candidates must have been bona fide residents in their constituen- cies for two years has prevented the election of St. John's " carpet- baggers " who controlled the old Assemblies. Thirteen out of the forty-five members so far elected, however, are described as mer- chants. Most of the others are retired Government servants, pro- fessional men or technicians. The newly-created Labour Party has three members, and there are two Co-operative officials. It is surprising that only one farmer and no fisherman have been elected, although Kenneth Brown, the President of the Fishermen's Protective Union, was returned unopposed. The Convention will have to consider whether to recommend restoration of full self-government, confederation with Canada or maintenance of the Commission Government with or without modification. Confederation with Canada has been defeated on a number_ of occasions since 1867, but the feeling that the country is not strong enough economically to stand alone, and doubts as to how long present prosperity, will last, incline many now towards this solution. The recent increase in Canadian social services, particularly the large family allowances, should have an attraction, as Newfoundland could not possibly afford such services on her own. On the other hand, the fish and timber interests believe their bargaining position abroad to be stronger with Newfoundland as a separate country.' It seems unlikely that Con- federation will be recommended forthwith, although the opening of negotiations with Canada might be proposed following the restoration of self-government.