According to Doyle by Norman Doyle

Author:Norman Doyle
Language: eng
Format: epub
Publisher: Flanker Press
Published: 2013-03-14T16:00:00+00:00

To further bolster the federal case for a shutdown, both parties were fully aware that, during the course of the negotiations that would take us into Confederation, the provincial officials had indicated to Prime Minister St. Laurent that they were somewhat uncomfortable with the fact that it was unclear what was meant by Canada “taking over” the Newfoundland Railway. St. Laurent wrote a letter stating that “it would not seem fitting to include in formal terms of union, matters of this kind, since they are scarcely of a constitutional nature. I am therefore sending you the enclosed memorandum covering these various items. While these will not form part of the Terms of Union, they contain statements of the policy and intentions of this Government if union is made effective by the approval of the Parliament of Canada and the government of Newfoundland and confirmed by the parliament of the United Kingdom.”

In addition to St. Laurent’s letter, further clarification was given by the federal government on other aspects of the railway. They, Canadian National, would be entrusted with the responsibility of operating the Newfoundland Railway and Coastal Steamship Services, and it would be their responsibility to see to it that the services were furnished commensurate with the traffic offering. It all sounded very nice, but the phrase “traffic offering” seemed to ring out an ominous tone; a phrase like that, no doubt, could cast a shadow on the federal government’s so-called responsibility to operate the railway ad infinitum. In any event, I don’t believe that as a government we were too anxious to stay the course on this losing proposition. I think we wanted out of the railway as much as the feds did.

The Sullivan Commission had prepared a report on transportation in the province and presented it to the Newfoundland House of Assembly in 1978. The commission recommended that the railway be abandoned, that it would be of greater benefit to the province to look for a better highway system. The commission also took the position that St. Laurent’s letter had the effect of modifying the Terms of Union and that “the letter obligated the federal government to maintain the Newfoundland railway regardless of cost, but only as long as there was reasonable demand for its services.”

Aha!—reasonable demand for services. “Reasonable demand” was the catchphrase the Newfoundland government had to take into account in making the decision to go for a much-needed roads deal.

In spite of the outcry from numerous circles to maintain this dying service, the situation seemed very much like a no-brainer. Surely the public could see that there was no choice in the matter. The feds were holding all the cards, so it was a matter of playing the hand you’re dealt. However, as one minister who was fairly close to the proceedings, I did not perceive any strong-arm tactics by the feds to get the deal done. As far as I was aware, we could have the railway as long as we wanted, but the question would still have to be asked: Why?

There was no doubt in Peckford’s mind which way he had to go.

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