There
are many acts, and still a greater number of forbearances,
the perpetual practice of which by all is so necessary
to the general well-being, that people must be held to
it compulsively, either by law, or by social pressure.1
Have
none of you heard of zoning before? Have none of you heard
of land use before? Is this such an entirely new concept
in the Province of BC, or is this the first time you think
the government really means it?2
Dave
Stupich, Minister of Agriculture
Address to the British Columbia Fruit Growers' Association
1973
The continued
deterioration of grower returns into the 1970s, exacerbated by
the 1969 freeze, was pushing the BCFGA into an increasingly reactionary
position regarding the conversion of orchard land. For the association,
the unencumbered right of the individual growers to dispose of
their property was to be jealously guarded as it was all that
was buttressing the industry from a more serious, internal crisis.
Growers who had replanted only three years earlier were particularly
hard-hit as their investment in new trees was completely erased
by the 1969 frost, while surviving trees could not be relied upon
to provide a decent level of income. Economic distress was swelling
the ranks of growers peddling fruit to the coast in contravention
of Fruit Board regulations. The industry was finding itself in
a precarious position: any change to restrict the sale of orchard
land, or any further increase in the numbers of growers peddling
fruit to Vancouver, would destabilize traditional marketing patterns.
The end-result of either scenario - land-use restrictions, or
the stringent enforcement of Fruit Board rules - opened the possibility
that growers, in a desperate attempt to remain solvent, would
bid to remove the monopoly status of BC Tree Fruits and undertake
their own, individual marketing. It is almost ironic then, that
it took a provincial election fought substantially on the issue
of farmland preservation in 1972 to make the BCFGA enunciate a
position on land-use issues. A newly elected administration was
determined to fulfill an election promise to halt the conversion
of agricultural land, while the Association was equally determined
to minimize any such changes. For growers, the potential that
a farmland freeze would limit their long-term options fragmented
opinion, spurring the re-emergence of a more militant group of
dissidents determined to exploit the unrest. Over the summer of
1973, the actions of these rebels and the political calculations
of the provincial government isolated the BC Fruit Board, throwing
the future of the single-desk into question. A compromise solution
to this turmoil, income subsidies introduced in the fall of 1973
designed to gain support for the government's farmland preservation
program, ultimately precipitated the abandonment of the orderly
marketing system.
For the
better part of a decade, dissidents opposed to the compulsory
requirements of the single-desk had remained marginalized within
the fruit industry. The defeat of Alfred Beich at the 1962 Convention
had marked an ebb of their influence. Thereafter, acts of protest
against the marketing system remained confined to the individual
sphere, generally taking form in a grower's own decision to peddle
fruit illegally. Less radical growers, however, who found themselves
unable to continue under the existing arrangements, could still
pursue the option of exiting the industry through the unfettered
sale of their orchards: an option many were to employ, effectively
confining the appeal of the dissidents to a small core of growers
composed of ardent individualists. Entering the new decade this
balance would be upset as a result of a second major freeze that
impacted the valley in less than five years. The arctic air masses
experienced throughout the winter of 1968-69 brought temperatures
only ever recorded during the great freeze of 1949-50. The timing
of the freeze could not have been worse as the young, unbearing
trees planted after the 1965 kill-off sustained the greatest casualties.3
The loss of so many trees, which had yet to yield any return on
investment, left many growers facing a daunting economic challenge.
The lucrative, but delicate soft-fruit crop was simultaneously
wiped out, leaving only the apple - representing seventy-nine
percent of the overall crop that year - to sustain the industry.4
For all growers, the prospects were bleak. Increased production
in Washington State had created a regional surplus in apples and,
reflecting the depressed market prices, apples sold through BC
Tree Fruits that year only fetched 3.4 cents per pound.5
At this rate of return the costs of packing and marketing the
crop were not being met, leading some packinghouses to issue charges
to their membership for handling their product instead of paying
them for it. All told, growers had been dealt a financial blow
that was nothing short of a disaster.
By
1970, an increasing number of growers found themselves falling
afoul of Fruit Board regulations as they attempted to obtain a
return on their fruit outside of legal marketing channels. The
inability of the industry or the Crop Insurance Act to mitigate
the economic losses encouraged some growers - growers who would
have never otherwise challenged the single-desk - willfully to
bootleg fruit to the coast. The desperate situation began to cast
the practice of illegal peddling in a different light, as no longer
the domain of those strictly out to profit at the expense of their
neighbours. For true dissidents, however, the low returns fueled
an escalating animosity towards the BCFGA, the Fruit Board, and
the monopoly status of BC Tree Fruits. In their eyes, this industry
triumvirate was slowly legislating the average orchardist into
poverty, an extreme view, but one that nevertheless held the potential
to attract more adherents during a period of turmoil. Such a dynamic
had been demonstrated in the mid-1950s when isolated, individual
discontent was galvanized into a somewhat broader, organized opposition
to the prevailing status quo favoured by the BCFGA executive.
Dissidents had sought to exploit the fragmented grower opinion
to push their own agenda beyond any relation to their representation
within the industry. By the early 1970s, all that remained to
trigger further dissent was another divisive or "wedge"
issue similar to the appointment of the Royal Commission in 1956.
The
Annual Report of the Fruit Board presented at the January convention
of the BCFGA could always be counted upon to be a rather routine
summation of activities conducted over the year. As policeman
to the industry, the Fruit Board could also be counted on to draw
the ire of dissidents, and 1973 proved no different as the board's
Report drew "heavy fire."6
Many of the complaints voiced in public revolved around the board's
perceived preoccupation with restrictive regulations and a lack
of any clearly stated objective for securing better returns for
the grower.7 Dissidents
chaffed under increased oversight as the board sought to stem
the tide of growers who "in desperation have decided they
could do better by themselves."8
Some of the more prominent and outspoken critics present were
Hans Rhenisch, a Keremeos grower who opened "debate"
on the board's report by querying whether "any legislation
the Fruit Board brings in will not simply be good for the Fruit
Board, but will in the final end make more money for the grower."9
Bert Hume followed with the rather telling statement that
In
no way will I co-operate in a scheme that is not returning
me my cost of production
Why is this board concerned
so emphatically with controls and regulations and ignoring
the real issue of returning the price to the grower? 10
Even
Alfred Biech was present, re-fighting old wars:
If
you talk about controlled marketing, that's fine. Mr. Stoll
[Hans Stoll, Vice-Chairman BC Fruit Board] says we are going
to ruin it and everything else. We are not ruining anything.
We want the Marketing Board to operate to our advantage but
if it is only going to operate to the advantage of the wholesalers
it will be down the drain. 11
Such
arguments against the single-desk and orderly marketing, however,
were long-familiar ones within the industry and, alone, did not
strike any chords with the majority of growers. If the dissidents
were to further their cause at all, a greater degree of dissatisfaction
amongst growers with the current state of affairs was required.
The announcement
of a provincial general election for September of 1972 would ultimately
provide the opening that dissidents required to influence grower
opinion towards their own end. For twenty years the land-use policies
of the Social Credit administration had sustained the evolution
of the BCFGA into a one-dimensional marketing agency. In this period,
the sanctity of private property and the virtues of continuous economic
development had ensured that the sale of farmland was executed without
any undue restrictions. However, the degraded ecosystems resulting
from increased urban sprawl and industrial expansion had slowly
begun to alter public opinion on environmental issues. A greater
public awareness surrounding the integrity of the province's agricultural
and natural resources ensured that their long-term preservation
became a central facet of the campaign. The Socreds' platform was
one that simply rested on their past record, the cornerstone of
which proved to be a piece of legislation passed only the year before.
The expropriation of four thousand acres of prime farmland on the
urban fringe of Vancouver, needed to build the Roberts Bank Superport
in 1967, had greatly discredited the government. Despite a surprisingly
strong election victory in 1969, the Socreds felt it necessary by
1970 to placate public opinion regarding the Superport's construction
by passing the Environmental and Land Use Act. Novel in its
design, the Act subjected all regions of the province to
the authority of a single Environment and Land Use Planning Committee
(ELUC).12 Due to the traditional
form of cabinet employed by the Socreds, however, the committee
was used only as an advisory body in a governing structure dominated
by the executive. With no effective oversight of changing land-use
patterns, the Socreds approach to preserving agricultural land actually
accorded with that enunciated by the British Columbia Federation
of Agriculture (BCFA).
The BCFA's
basic position was that the unclouded ownership of farmland was
fundamental to the long-term survival of the province's agricultural
community.13 The Federation's
position reflected the predominant view of its membership, who believed
that it was farmers who had preserved the land in the first place,
not society; and that state regulation would impose an undue hardship
by essentially tying them to their land. Barring the ability to
dispose of their property freely, farmers firmly believed it to
be essential that any zoning plan be accompanied by a reasonable
compensatory factor that took full account of underlying development
rights.14 The unknown variable
in the continuation of these ineffectual land-use controls was the
opposition New Democratic Party (NDP).
The
NDP entered the election favouring a direct bureaucratic regulation
of the landscape through a land-zoning program. If elected, an NDP
government would rely upon a land bank to provide liquidity in an
inevitably soft real-estate market for agriculturally zoned properties.15
While providing voters with a clear alternative to the governing
Social Credit Party, the NDP's platform was problematic in that
it did not specify how a land bank would determine the value of
farmland.16 It is unlikely
that it would have assessed the true market value of the land based
on the potential for subdivision, or other non-agricultural uses,
as such an approach would have undoubtedly bankrupted the province.
For producers who had invested a lifetime of work in agriculture,
usually with little else to show for their efforts than the value
of the land itself, the NDP's proposed zoning plan was anathema.
In the Okanagan, the electorate largely rejected the NDP and its
policies, voting in overwhelming fashion to support the status quo
by returning all three local Social Credit MLA's.17
The rest of the province was not as ready to return the incumbents
and, in the end, the NDP won the election with thirty-eight of fifty-five
seats.18 How the new administration
proceeded to fulfill its election promise has become one of the
defining moments in the agricultural history of British Columbia.
Less
than a month into office, the new Minister of Agriculture, Dave
Stupich, spoke before growers in Kelowna to inform them that the
preservation of farmland was going to be the top priority of his
department and government. As someone who openly supported the principle
of compensation for expropriated development rights, Stupich was
not representative of a majority viewpoint within his party.19
The plan that the minister came to favour was one drafted by his
own department but which had been rejected by the Socreds in 1971
in favour of the Environment and Land Use Act.20
It advocated the active regulation of farmland, restricting usage
to farm purposes only, while also endorsing the principle of development
rights and the obligation upon government to compensate farmers
adequately for the removal of said rights.21
The plan had been developed by the department to address the issues
of urbanization in the Fraser Valley, but Stupich sought to have
it applied broadly across the whole of the province.22
Irrespective of the minister's enthusiasm, there still remained
the fact that cabinet approval was required and that not all of
Stupich's colleagues shared his belief that compensation was a prerequisite
for a successful plan. Other options existed, such as the commitments
presented in the party's election platform towards a land bank.
Of even more significance were the internal dynamics of policy formulation
within the NDP cabinet.23
Having opted to maintain the traditional cabinet-level structures
of the previous administration, and lacking an authoritarian leader
similar to Bennett, the NDP's policy agenda quickly dissipated to
the point that the dominant factor in the decision making process
became the political entrepreneurship of the more forceful ministers.24
Seeking
to ensure the adoption of his own plan, Stupich used the venue of
the BCFA's Annual Convention in November of 1972 to make a formal
announcement that would limit his government's leeway on the issue
of farmland preservation. He declared that the NDP had not permitted
any rezoning of farmland since taking office that September, and
that anyone would be ill-advised to invest in farmland for the purposes
of developing it for industrial or residential purposes.25
The aftermath of the convention remarks was a rush by developers
and farmers alike to have their land rezoned in anticipation of
the government legislation that Stupich had so clearly hinted was
coming. Chaos at the municipal level forced the cabinet to introduce
an order-in-council on December 21st, 1972 freezing all rezoning
applications - a move that Stupich was purportedly able to orchestrate
by imparting to the cabinet the impression that the premier, who
was out of town at the time, had endorsed the move.26
To reverse the order-in-council at a later point would have been
to jeopardize any hope of rationally preserving the province's farmland,
and as Stupich's farmland plan was the only one on the table it
became the de facto template - for better or worse.27
The
industry's response was immediate and uniform as the BCFGA quickly
emerged as one of the more militant producer groups opposed to the
general intent of the order-in-council. That the Association would
threaten strikes and pickets in an attempt to overturn the farmland
freeze remains wholly consistent with the unofficial industry policy
in the 1960s of non-action on issues of urbanization. Following
the inability of the marketing structures to return to growers the
minimum costs of production after the 1969 freeze, the unencumbered
right to sell orchard land was all that was mitigating the plight
of growers. Removing that right would expose the fact that, under
the current conditions, orderly marketing was inadequate and the
industry was non-viable. The aging demographic profile of the average
orchardist in this period also ensured that the government's move
would be a controversial one. Many of the growers who had been established
after 1945 under either the Veterans Land Act, or through
immigration to the valley, were now entering the twilight of their
career as orchardists. Having invested the majority of their working
lives into the land, a change in occupation for these growers was
not a real alternative. After years of low returns, the one consolation
remained the potential of the land to act as a retirement nest egg,
providing a secure source of income in old age that had always remained
elusive growing fruit. Scheduled almost a month to the day after
the announcement of the order-in-council, the agenda of the 1973
BCFGA Convention was to be dominated by this debate surrounding
the proposed restrictions on farmland and acceptable forms of compensation.
The
original five-member BC Land Commission. Burnaby, 1973.
From left to right: Bert Brink, Mary Rawson, Bill Lane (Chair),
Ted Barsby, Arthur Garrish. |
In
keeping with tradition, the Minister of Agriculture opened the convention,
providing the first major forum for the government in which to explain
to producers the changes being proposed. While references were made
to an improved crop insurance plan and a loan to the Keremeos packinghouse,
the main thrust of Stupich's presentation was a plea for more time
in which to formulate a comprehensive legislative package.28
As he stated,
You haven't seen the legislation yet and the Cabinet hasn't
seen it yet. I cannot give you the details. I have to go to
the Cabinet myself and as I already told you the legislation
is evolving. 29
To placate
growers and forestall some of the protests planned against the farmland
freeze, Stupich advised the convention that there would be plenty
of opportunities for input and revisions. The NDP was a government
that would listen and assist farmers; all they need do was approach
the minister and he would work with them. Growers, nevertheless,
remained skeptical of Stupich, passing two resolutions asserting
the legitimacy of the BCFGA to play a leading role in shaping the
government's policy.30 That
Bill 42, the Land Commission Act, was introduced the following
month without any direct consultation from producer groups was a
direct rebuke to growers and the marketing structures underpinning
their industry. Two sections of the new act were especially galling:
the newly constituted Land Commission had the authority to designate,
without acquisition, lands suitable for long-term agricultural preservation;
lands so designated would not be "injuriously affected by reason
of the designation."31
During second and third reading of the bill, the only language the
government was willing to revise dealt with confusion over the scope
of the commission and its ability to expropriate lands.32
The willful omission of any form of economic subsidy or compensation
for lost development rights only increased the pressure on growers
to find a more profitable means of selling their fruit - thus pitting
them against the illiberal restrictions of the single-desk and orderly
marketing system.
BC
Federation of Agriculture protest on the steps of the Legislature
in Victoria. |
Only
following a massive demonstration on the steps of the legislature
by farmers opposed to Bill 42 did the government finally choose
to open a dialogue with producers regarding the best methods to
strengthen their economic position under the Reserve.33
The major initiative in this program was a joint study to be conducted
by the Department of Agriculture in co-operation with the BCFA.
Charged with assessing the long-term prospects of agriculture across
the province, the study's recommendations provided the framework
for the government's legislative agenda during the fall session.
To address the more specific problems of the tree-fruit industry,
where opposition to the Land Reserve was still white-hot, an agricultural
economist was commissioned to evaluate the structures of the industry
and recommend improvements. Finally, Stupich himself struck a Select
Standing Committee on Agriculture (SSCA) to tour the province during
the summer of 1973 to hear from producers who might not otherwise
be afforded a voice in the consultative process. Ironically, the
SSCA would actually fan tensions within the orchard landscape as
it provided a forum that unwittingly linked the anti-corporativism
of the dissidents with the unrest felt by the general grower body
following the passage of Bill 42. By convening a series of official
hearings to discuss the broad state of agriculture, the province
gave dissidents not only an opportunity to renew their assault upon
the single-desk, but an equal stature with legitimate industry representatives
in doing so. Although dissidents would be hard pressed to win many
converts to the position that BC Tree Fruits should be stripped
of its preferred status as sole selling agent, experiences from
1958 had shown that where they could be effective was in casting
doubt. Two organizations, the United Fruit Growers of British Columbia
and the Allied Growers of British Columbia, were formed specifically
to address the SSCA. Contrary to their assurances that they supported
marketing boards and the rule of law, both United and Allied argued
that BC Tree Fruits had become complacent, top-heavy, and structurally
incapable of providing a decent return; their arguments scarcely
masked their ultimate objective of doing away with the BC Fruit
Board altogether.34
Unlike
1958, however, the size and scope of the SSCA would not match that
of the MacPhee Royal Commission, being of a relatively fixed duration
and possessing a much broader mandate by touring the entire province.
As a platform for dissent, the SSCA's brief interludes through the
valley failed to provide the rebel organizations with the public
exposure they sought. The limited hearing schedule also allowed
newly pro-active industry supporters to stack meetings and ensure
that individuals unwilling to live with any sort of marketing controls
did not present an unbalanced viewpoint. Resistance from committee
members to accept the dissidents' argument that the single-desk
was, in fact, one of the problems facing agriculture in the Okanagan
further reduced the effectiveness of the hearings. Many of the MLAs
remained skeptical that a second or third selling agency would indeed
improve efficiency and not simply create duplication and destructive
competition.35 Despite the
initial legitimacy the SSCA hearings bestowed upon the dissidents
and their organizations, the inability to further their cause within
official channels led to the decision to begin working outside of
the law, and against industry structures. The preferred method of
the dissidents in manipulating public opinion would come to be "impromptu"
farmers' markets in Vancouver (which really were not spontaneous
events at all), and the subsequent coverage by the major media outlets
of the coast. As cherries were the first crop of the season to mature,
routinely the most profitable of all the fruit crops, and a relatively
small crop by volume (making them easy to transport), their marketing
became a natural flashpoint between dissidents and the Fruit Board.
In early
July, Allied Growers brazenly challenged the Fruit Board by having
it announced in the Vancouver media that a convoy of trucks would
be heading to the coast with a shipment of fresh cherries.36
The use of the convoy was designed to exploit the Fruit Board's
limited enforcement capabilities that had evolved over the years
to cope with the odd disgruntled grower, or unsuspecting tourist
hauling too much fruit out of the valley. When faced with non-co-operation,
inspectors only proved able, with the aid of an RCMP officer to
detain the lead vehicles, to halt a small percentage of the shipment.37
Once in the Vancouver market, the cherries were sold at forty cents
a pound, undercutting local retailers who had gone through legitimate
channels and were selling marked BC Tree Fruits product at forty-nine
cents per pound.38 As such,
the dissidents' claims of success, duly reported by the Vancouver
media, were dubious at best. The ability of rebel growers to command
a price as high as forty cents was entirely predicated on the presence
of BC Tree Fruits regulating the flow of its cherries to market.
Claims of a direct return of forty cents a pound to the grower were
also misleading for this did not take into account the shipping
and transit costs the dissidents absorbed in bringing their crop
to the coast. Dealing in such small volumes these costs would have
undoubtedly been far greater for the dissidents than for those growers
opting to sell through legitimate channels. The favourable response
to Allied's actions by the Vancouver consumers who purchased the
cherries and the media who gave the event fair coverage underscored
the ability of the dissidents to shape public opinion.
Two
uniformed BC Fruit Board inspectors seize cherries at the
Allied Growers' warehouse |
The
Fruit Board's response was an attempt to shift the growing confrontation
out of the glare of the media by seizing ten tons of cherries from
an Allied Growers' packinghouse.39
By impounding cherries in the Okanagan, dissidents would be denied
the opportunity of exploiting possible in-transit confiscation of
their crop to the media, or garnering public sympathy in Vancouver
through cut-rate fruit prices. Without access to modern storage
facilities, the Fruit Board's actions added a sense of urgency to
the rebel organization's actions, as neither Allied nor United possessed
the ability to prolong the life of their cherry crop. In desperation,
an injunction preventing the Fruit Board from seizing, detaining
or interfering with the sale of any Allied Growers' fruit was obtained
two days after the initial seizure.40
Given the maturation of the cherries at this point, and the small
window of opportunity afforded by the questionable arguments used
to obtain the court order, United Fruit Growers moved to transport
fifty tons of fruit quickly to Vancouver. By this point, however,
a number of Lower Mainland wholesalers and canners with a long history
of dealing with BC Tree Fruits were beginning to challenge the dissidents'
claims in the media. In transporting such a high volume of fruit
to the coast, the United Fruit Growers' had over-estimated the ability
of the Vancouver farmers' markets to absorb their cherries. When
approached by dissidents to purchase upwards of eight tons of unsold
cherries at prices of twenty cents a pound following the weekend
market, the wholesalers and canners reported the proposition directly
to the media.41 That Allied
Growers' approached BC Tree Fruits to dispose of 4.5 tons of its
cherries a few days later lent credibility to the media reports
about United Growers' earlier failure to dispose of their crop.42
To the industry leadership, the dissidents' request was seen as
an admission of defeat and an indication that the resolve to challenge
the Fruit Board was receding. Upon having Allied's injunction overturned,
the Fruit Board and BC Tree Fruits attempted to regain the initiative
in the "fruit war" by filing writs against the two rebel
organizations and thirteen individuals seeking damages and injunctions
preventing the continued transportation of regulated fruit.43
The Fruit
Board's determination to pursue the dissidents through the court
system could not have occurred at a more inopportune time, as the
political resolve of the NDP to uphold the more illiberal restrictions
of the single-desk was rapidly dissolving. The electoral defeat
of the Socreds the previous year had cast the continued viability
of the party as the conservative alternative to the NDP into question.
The provincial Conservative and Liberal Parties were increasingly
vying to assume Social Credit's mantle as the party of free enterprise.44
In an attempt to thwart the resurgence of these traditional parties,
W.A.C. Bennett stepped aside as the MLA for South-Okanagan in June
of 1973. Bennett's strategy was to orchestrate the nomination of
his own son to run in his place and assume the leadership, hopefully
renewing the party in the process. The by-election that was called
for early September would hold, therefore, serious ramifications
for the future dynamic of party politics in the province.45
Having won only two seats in the 1972 general election, the Conservatives
were parachuting their leader into the riding in the hopes of capitalizing
on the doubt surrounding the future of Social Credit. For the NDP,
the possibility of two, maybe three strong right-wing candidates
splitting the vote presented an outside chance for their candidate
capturing a seat they had never had a legitimate chance of winning
before. A defeat for both the Socreds and the Conservatives held
further potential to splinter any organized opposition to the NDP
through the next election campaign. As a result, during the course
of the summer the government became increasingly sensitive to any
situation that would elicit the types of reactions from voters that
had accompanied the introduction of Bill 42.46
Supporting the fruit industry against the dissidents' open defiance
was the manifestation of this dreaded scenario, as the government
would invariably be called upon to suppress individual rights as
BC Tree Fruits' and the Fruit Board's case made its way through
the court system. Through its actions, the industry was unwittingly
alienating the government support needed to underpin the legitimacy
of the entire Tree Fruit Marketing Scheme.
After
hearing arguments from both sides in the dispute, the presiding
Supreme Court Justice issued his decision in early August. A bombshell,
the Court sided with the dissidents, stating that nowhere in the
Natural Products Marketing Act did it appear the Fruit Board
had been given the right to appeal to the courts for injunctions.47
The Justice further countered that, in his opinion, the board had
not suffered any irreparable harm based on the actions of the dissidents.48
The direct impact of the ruling closed one of the less confrontational
avenues of recourse available to the industry. Section twelve of
the Natural Products Marketing Act still allowed for the
Fruit Board to impose fines and imprisonment on those contravening
its regulations.49 In appealing
the justice's decision, as the penalties outlined under section
twelve were much harsher than a restrictive injunction, the BCFGA
commenced the first steps needed to begin fining and charging rebels.
Members of the Association's executive approached what was thought
to be a sympathetic provincial cabinet about issuing an order-in-council
allowing inspectors, accompanied by an RCMP officer, to forcibly
enter any vehicle suspected of contravening board regulations.50
This was an exercise needed to allow for the necessary evidence
to be gathered and used against growers peddling fruit to the coast.
In a fateful decision, the cabinet turned down the Association's
request, a move that simultaneously scuttled the industry's appeal
of the Supreme Court decision.51
Even had an injunction been granted on appeal, without the ability
to search vehicles suspected of breaking the law, there would be
no meaningful way to enforce board regulations. The BCFGA president
aptly summed up the political overtones of the situation when he
noted "the Cabinet is not interested in any controversy that
would hold it up to criticism in this area."52
The
outcome of the court challenges and cabinet appeals was obviously
not what the industry had anticipated as enforcement mechanisms
were now suppressed, allowing the illegal movement of fruit to the
Vancouver market to resume uninterrupted. The only recourse left
to the industry was the Fruit Board's consistent refusal to sanction
the peddling by issuing licenses to the rebel organizations authorizing
them to sell in Vancouver. The partisan maneuverings of the NDP
throughout August had placed the industry in a highly untenable
position. Slight thought had been given to the task of restoring
the credibility and authority of the Fruit Board after the by-election.53
Discredited in the media by dissidents and facing uncertain support
within the grower body, the long-term functionality of the single-desk
was increasingly in doubt. Even more problematic, the questionable
status of the BCFGA as a representative voice for growers was jeopardizing
the NDP's major legislative package for the fall session of the
legislature.
The
cumulative result of the work done by the SSCA, the BCFA, and the
Department of Agriculture was the Farm Income Assurance (FIA)
Act, a companion piece of legislation to the Land Commission
Act. Income assurance was designed to raise commodity revenues
to approximate more closely the production costs faced by farmers,
without correspondingly raising the prices paid by consumers at
the local supermarket.54
The legislation did come with a wrinkle as it had been crafted in
such a way as to allow the government to apply the program on a
commodity-by-commodity basis, tailoring each application to the
specific needs of a given producer group. Traditionally, the BCFGA
as the democratic representation of the grower body would have been
the natural voice for the tree-fruit industry. The fruit wars, however,
had re-exposed old divisions amongst growers, precluding the Association
from assuming such a mantle. The ever-quixotic Minister of Agriculture
had even taken to stating publicly that he didn't "know who
they (the BCFGA Executive) represent anymore."55
Without a definitive reassertion of the grower will, any truly final
resolution to the fate of the BCFGA, rebel organizations, the continued
operation of the single-desk, and the future of the orchard landscape
would be unattainable.
Away
from the glare of the media spotlight that had engulfed other aspects
of the industry, Dr. S.C. Hudson had spent the summer months quietly
evaluating the structures involved in the packing and marketing
of Okanagan fruit. Charged with finding ways to restore a degree
of profitability to growers, Hudson's final report came to champion
the packinghouse reforms and amalgamations Dean MacPhee had recommended
fifteen years earlier.56
He believed that a major round of consolidation was required in
order to cut excess capacity and cost at the local level.57
On the issue of the single-desk, with forty-eight percent of BC
Tree Fruits sales going to other provinces, and thirty-three percent
to offshore markets, Hudson stated that only a central marketing
agency had the capacity to do a satisfactory job of disposing of
the entire Okanagan crop.58
Having stated his support for the existing system, Hudson went on
to comment on the more troubling aspects of his study, including
growers
[who] have been making a deliberate attempt to destroy the
confidence of other growers and the general public in the
concept of orderly marketing as developed in B.C. through
the circulation of statements, many of which are half-truths
at best. 59
To resolve
the atmosphere of uncertainty, Hudson recommended a plebiscite be
arranged in order for growers to confirm their support for the continuation
of a centrally controlled industry.60
When the Report was released in late September it was to be the
plebiscite, the twenty-fifth of twenty-six recommendations, that
drew the attention of all sides in the fruit war.61
Similar to the reception of MacPhee's Report, Hudson's confirmation
of central-selling and proposed industry re-organizations was being
steadily pushed aside by the all-consuming drama of the vote on
the single-desk.
With
the support of both the industry leadership and the dissident organizations,
Stupich tabled a motion in the legislature in early November, after
the Farm Income Assurance Act had received final reading,
seeking an endorsement for the plebiscite.62
In defining the implications of the vote, Stupich underscored the
significance of the BCFGA to the government's legislative agenda,
giving growers a stark appraisal of what a rejection of the single-desk
would entail. Through the medium of the press, the minister stated
his concern that, given the BCFGA's one-dimensional evolution into
a marketing agency welded to the single-desk, a vote against central
selling would, in effect, abolish the Association.63
In such an eventuality, the government would have no organization
representing growers with which to negotiate the establishment of
the farm income plan.64
A defeat for the Association would have also marked a fundamental
turning point in the history of the orchard landscape, for the association
was an extension of the growers' accommodation to the limitations
of the natural environment. Without some form of economic structure
to buttress growers from the vicissitudes of the natural, and a
rapidly expanding urban, environment, the small-scale family orchard
would recede from the face of the valley. The vote on December 12th
proved almost anti-climactic. Information meetings had been conducted
throughout the valley, and the dissidents, such as Rhenisch, made
occasional statements to the media expressing concern over the wording
of the plebiscite question.65
The final results conveyed the uncertainty facing the fruit industry
as only sixty-two percent of growers opted to retain the single-desk.66
This was a victory for the BCFGA, but with support well below the
seventy-five percent originally required under the Natural Products
Marketing Act to have the Tree-Fruit Marketing Scheme enacted.
What should have been the last salvo in the fruit war seemed to
have been fired, and apart from the obvious need to restructure
and address grower concern, the entrenched structures of the industry
had emerged victorious.
Unfortunately,
victory would prove to be hollow. Even with almost thirty years
of hindsight, all that remains clear is that six months after the
vote, on July 25, 1974, the course of the fruit industry and the
fate of the orchard landscape were forever changed. The Fruit Board
issued a regulation that re-affirmed BC Tree Fruits as the sole
selling agency in the valley, yet permitted for the first time the
operation of independent grower marketers.67
Section three of the order specifically provided that;
Any
grower or other person marketing any regulated product other
than inter-provincial and export trade may elect not to market
the same through B.C. Tree Fruits Limited, provided this section
shall not impair or affect contractual obligations with shippers
or others with respect to such regulated product or the marketing
of it. 68
To the
older generation of growers who had spent a lifetime defending the
orderly marketing system, the move was akin to a gutting of the
BCFGA.69 Dissidents had
attained the final victory by overturning the majority will of the
growers. The official history of the BCFGA, written on the centennial
of the association in 1989, records a variety of reasons that led
to the policy reversal that allowed the dissidents to achieve their
ends. Inflation caused by the oil embargo, a public backlash against
marketing boards, and many other factors are identified, but the
most prominence is reserved for the prevailing "political climate."70
As the historians wrote:
The
Fruit Board needed stronger enforcement powers for the upcoming
1974 growing season, but
when it became apparent that
the requisite amendments [to the Natural Products Marketing
Act] would not be made "due to the political climate
that prevailed," the Fruit Board decided to relinquish
most of it regulatory powers over the interprovincial marketing
of fruit. 71
Testimony
given by Stupich during court hearings into an alleged combine to
limit dissident access to storage facilities in the mid-1980s seemed
to corroborate this view. Based on the former minister's statement
before the court, the presiding justice summarized that the NDP
government had even made the provisions of the Farm Income Assurance
Act contingent upon the industry allowing growers to opt out
of compulsory single-desk selling "without interference."72
One can only assume that the surprising outcome of the plebiscite
changed the dynamics of government support for the industry. With
a less than convincing mandate from growers, it is probable that
the NDP became reluctant to enforce the more illiberal aspects of
the single-desk for the 1974 crop year. To qualify for the government
assistance a grower had to belong to the BCFGA; no provisions were
made for those who opted for independence, as dissidents had made
it clear throughout 1973 they could do better financially outside
of the Association.73 Regardless,
the removal of the compulsory aspect to the orderly marketing system
effectively ended the marketing structure used for over thirty years
to ensure the viability of the orchard landscape and of the individual
grower.
As
a substitute for the legally binding requirements of the Tree Fruit
Marketing Scheme, the FIA Act proved an unmitigated disaster.
In what became known as the Bernhardt Doctrine, growers were told
repeatedly that they could not have it both ways: they could not
sell their fruit outside of industry structures and at the same
time claim membership in the BCFGA, accessing the provisions of
income assurance.74 Without
blanket regulation of all fruit leaving the valley, however, policing
such an ordinance was virtually impossible. Growers determined to
exploit the system could either under-report or simply not deliver
their forecasted tonnage to the local packinghouse, while employing
a network of roadside stands and independent truckers to move the
remaining volume out of the Okanagan.75
To be caught was to risk expulsion from the Association, but the
logistics of investigating a suspected "fruitlegger" or
determining the origin of fruit moving out of the valley made it
difficult for the industry to enforce the rules.76
After thirty-five years of mandatory single-desk selling, the industry
once again had to contend with a reality in which, given a choice,
many growers would always find it to their personal advantage to
be half-in and half-out of any co-operatively based marketing venture.
The actions of these growers were far more destructive than the
continued presence of dissidents, who shunned the system all together.
Unable to adequately forecast the amount of fruit to be handled,
packinghouses invariably miscalculated product grade and supply
requirements - ultimately passing the increased cost of doing so
on to their membership. The sales agency was forced to contend with
a corresponding reduction in the quality of fruit, the possible
scenario of not filling all orders, and the deflationary pressures
resulting from unforeseen tonnage flooding the local fresh fruit
market. All these developments occurred against the backdrop of
a government assistance program that was intended to address chronically
low grower returns. In the span of nineteen months, almost two generations
of a collective struggle to bring stability to the orchard unit
and legitimacy to the conception of an interior fruit industry was
erased.
___________________________________________________________________________
Footnotes:
*
The term "Fruit War" was commonly used in the British
Columbia press during the 1973 cherry season to describe the confrontation
occurring between dissidents and the BC Fruit Board. "The
Fruit Wars" is also the title of a poem published by Harold
Rhenisch in Out of the Interior: The Lost Country, Cacanadadada,
Vancouver, 1993, p. 109. Harold Rhenisch is the son of Hans Rhenisch,
founder of the Okanagan United Growers and one of the more prominent
dissidents fighting against compulsory marketing in the early
1970s. Harold Rhenisch's poem appears in Appendix A.
1. John Stuart Mill, quoted in John Gray,
Mill on Liberty: A Defense, Routledge and Kegan Paul, London,
1983, p. 64.
2. Dave Stupich, quoted in BC Orchardist,
February, 1973, p. 12.
3. Jeannette C. Boyer, Human Response
to Frost Hazards in the Orchard Industry, Okanagan Valley, British
Columbia, Waterloo: Department of Geography, University of
Waterloo, 1977, p. 41.
4. Ibid.
5. The return for 1969-70 was a mere 3.4
cents a pound, compared with 7.2 cents a pound the previous year
and 6.8 cents a pound in 1967-68. British Columbia, Department
of Agriculture, An Economic Study of the Tree Fruit Industry
of British Columbia, S.C. Hudson, Victoria: Department of
Agriculture, 1973, pp. 5-6.
6. BC Orchardist, March 1973, p.
8.
7. Ibid., p. 8.
8. Hans Stoll, Vice-Chairman of the Fruit
Board, quoted in BC Orchardist, March 1973, p. 8.
9. Ibid.
10. Ibid.
11. Ibid., p. 10.
12. Edward W. Manning and Sandra S. Eddy,
The Agricultural Land Reserves of British Columbia: An Impact
Analysis, Ottawa: Environment Canada, Lands Directorate, 1978,
p. 9.
13. It is important to note that at this
time Charles Bernhardt, an Okanagan fruit grower and Vice-President
of the BCFGA, also headed the British Columbia Federation of Agriculture.
Bernhardt would also shortly be elected to the presidency of the
BCFGA at the 1973 Convention. It should not be surprising that
there was a close affiliation between BCFGA and BCFA policy on
this issue of farmland zoning.
14. British Columbia Federation of Agriculture,
submission to Cabinet, quoted in Country Life in British Columbia,
January, 1973, p. 2.
15. The NDP proposed a "land-zoning
programme to set aside areas for agricultural production,"
and the creation of a land bank to "purchase existing and
re-zoned agricultural land for lease to farmers on a long term
basis." Baxter, p. 8. The land bank would be offered as a
compensatory mechanism in lieu of the purchase of development
rights.
16. Much has been made about an ideological
debate that occurred within the NDP Cabinet between Dave Stupich,
Minister of Agriculture and Bob Williams, Minister of Resources,
and the issue of compensation towards farmers for the loss of
development rights. Stupich is purported to have been a more traditional
"socialist," favouring government control of the means
of production and control of the economy. He was also reconciled
to the view that government acquisition (i.e., the development
value of land) required government compensation. Williams, however,
influenced by the political philosophies of Henry George, believed
that land was a public resource/asset not requiring compensation,
and that zoning was a right of government. This view was reinforced
by Williams' experience as a municipal planner with the Lower
Mainland Regional Planning Board and its ability to zone land
for agricultural use (i.e., the 1963-67 LMRPB farmland plan) without
providing compensation. For more information, see Andrew Petter,
"Sausage Making in British Columbia's NDP Government: The
Creation of the Land Commission Act, August 1972 - April 1973,"
BC Studies, No. 65, Spring 1985.
17. Elections BC, http://www.elections.bc.ca/elections/electoral_history/30ge1972-1.html
(November 9, 2001).
18. Ibid.
19. Petter, p. 12.
20. Ibid., p. 7.
21. Ibid.
22. Ibid., p. 12.
23. The definitive piece in this literature
is Paul Tennant's "The NDP Government of British Columbia:
Unaided Politicians in an Unaided Cabinet," Canadian Public
Policy, Volume 3, Autumn 1977, pp. 489-503. The core of Tennant's
argument is that by adopting the traditional form of Cabinet practiced
by the Socreds, and in the absence of strong leadership, the NDP
Cabinet became nothing more than a "bargaining centre"
in which the political entrepreneurship of the more forceful Ministers
decided the policy agenda. Other works include Petter's "Sausage
Making," and Christopher Dunn's The Institutionalized
Cabinet: Governing the Western Provinces, Kingston: McGill-Queen's
University Press, 1995.
24. Ibid., p. 492.
25. Vancouver Sun, November 30,
1972, p. 1.
26. Vancouver Sun, December 27,
1972, p. 2. See also, Petter, p. 13.
27. Petter, pp. 12-13.
28. BC Orchardist, February 1973,
p. 12.
29. Dave Stupich addressing the British
Columbia Fruit Growers' Association's 84th Annual Convention,
January 16, 1973, quoted in BC Orchardist, February 1973,
p. 12.
30. A total of five specific resolutions
were passed in relation to the issue of farmland preservation.
They were: 1) The BCFGA demand full participation in, and proper
compensation for any restrictions placed on the property of members;
2) the firm opposition of the greenbelt policy as it applies to
orchard land unless it is accompanied by surtax protection raising
imported fruit to the level of Canadian production; 3) the BCFGA
press for adequate compensation or subsidy for all farm lands
alienated from normal use; 4) the provincial government to be
asked to consult farm organizations so that a satisfactory plan
could be established before enacting any greenbelt legislation;
and 5) the BCFGA to go on record as being opposed to arbitrary
zoning of farm land unless legislation is accompanied by a reasonable
compensatory factor of the produce of the land and for the development
rights. BC Orchardist, February, 1973, p. 10.
31. Section 8 of the Land Commission Act
originally gave the Commission the authority to designate agricultural
lands, parks, greenbelts and land banks. This power, however,
was seen as too broad in scope and was amended before second reading
to apply strictly only on agricultural land. Section 16 was seen
by many in the province as the end of private ownership of land,
and became a liability for the NDP in its attempt to chart a somewhat
moderate, reformist approach to governing the province. By designating
land as not injuriously affected, the NDP had closed the door
to the possibility of compensation for lost development rights.
Fruit growers objected to this measure as it erased the speculation
inflated value of their land. David Baxter, The British Columbia
Land Commission Act - A Review. Vancouver: Faculty of Commerce
and Business Administration, UBC, Report No. 8, 1974, p. 12.
32. Country Life in British Columbia,
April 1973, p. 1.
33. The demonstration was held on March
15, 1973.
34. The United Fruit Growers platform
actually stated that one of its objectives was "to assure
that any licensed packer-shipper (co-op) will be able to sell
to all buyers that are prepared to pay." In practice, this
would merely legitimize the practice of peddling fruit to the
coast, an illegal act most members of the two organizations willfully
participated in. United Fruit Growers' of British Columbia, "Platform,"
quoted in BC Orchardist, May 1973, p. 8.
35. Country Life in British Columbia,
July 1973, pp. 1-14.
36. Vancouver Province, July 5,
1973, p. 1.
37. Country Life in British Columbia,
August 1973, p. 1.
38. Ibid.
39. Vancouver Province, July 11,
1973, p. 1.
40. On appeal, it was determined that
Allied's lawyer had failed to inform the presiding judge that
federal legislation gave the Board power to regulate the inter-provincial
sale of BC grown fruit, that Allied was not a license packinghouse,
and that BC Tree Fruits was the sole designated agent to market
BC fruit. Ibid.
41. Vancouver Province, July 17,
1973, p. 8.
42. Vancouver Province, July 18,
1973, p. 27.
43. Vancouver Province, July 20,
1973, p. 10.
44. David Mitchell, W.A.C. Bennett
and the Rise of British Columbia, Vancouver: Douglas &
McIntyre, 1983, p. 426.
45. Ibid., p. 430.
46. Dave Barrett and William Miller, Barrett:
A Passionate Political Life, Vancouver: Douglas and McIntyre,
1995, p. 65.
47. Vancouver Province, August
9, 1973, p. 7.
48. Ibid.
49. Vancouver Province, August
10, 1973, p. 4.
50. The day after Mackoff's ruling Stupich
went on record as being very concerned over what precedent had
been established and stating he asked the Attorney General, Alex
MacDonald, to review the judgment. Vancouver Sun, August
17, 1973, p. 17.
51. Ibid.
52. Ibid.
53. By-election results: Bill Bennett
(Social Credit) 9,726 - Bryan McIver (NDP) 6,390 - Derril Warren
(PC) 6,023 - John Dyck (Liberal) 2,434. Source: Elections BC,
p. 319.
54. Wendy Holm, The Agricultural Land
Reserve in the Okanagan: Renewing the Public Policy Prescription,
(report submitted to the B.C. Fruit Growers Association), Bowen
Island: W.R. Holm and Associates, 1997, p. 18.
55. Vancouver Sun, November 6,
1973, p. 8.
56. MacPhee had originally proposed two
approaches to amalgamating packinghouses. One was to create four
dominant packinghouses in each of the Okanagan's four geographic
regions. The other option was to amalgamate all the packinghouses
into one single authority. Hudson formulated his proposal for
packinghouse reform as a combination of MacPhee's proposals. He
favoured a central packing authority to buy, build, sell, develop
and operate fruit marketing facilities, with the creation of new
packing associations in each of the Okanagan's geographic regions.
British Columbia, Department of Agriculture, An Economic Study
of the Tree Fruit Industry of British Columbia, S.C. Hudson,
Victoria: Department of Agriculture, 1973, pp. 114-116.
57. Ibid., p. 94.
58. Ibid.
59. Ibid.
60. Ibid., p. 101.
61. The Vancouver Sun reported on September
26th that both Hans Rhenisch and the Executive of the BCFGA had
endorsed Hudson's call for a plebiscite. Both sides confidently
predicted victory as Rhenisch boldly claimed that any vote would
go 60% in favour of his group. Vancouver Sun, September
26, 1973, p. 39.
62. The Farm Income Assurance Act received
third and final reading in the Legislature on October 17, 1973.
Vancouver Sun, October 18, 1973. p. 10. The motion for the plebiscite
received approval with 39 members of the House voting for, and
5 against. Hansard, November 2, 1973. p. 1422. & Vancouver
Sun, November 3, 1973, p. 10.
63. Vancouver Sun, November 8,
1973, p. 8.
64. Ibid.
65. Vancouver Sun, December 20,
1973, p. 15.
66. Ibid.
67. British Columbia, Supreme Court, Regina
v. British Columbia Fruit Growers' Association, Kelowna, B.C.,
June 28, 1985. (decision), p. 6.
68. Ibid.
69. Arthur R. Garrish, "The Orderly
Marketing System," Okanagan Historical Society, 50th
Report, 1986, p. 63.
70. David Dendy and Kathleen M. Kyle,
A Fruitful Century: The British Columbia Fruit Growers' Association
1889-1989, Joan McIntyre (editor), Kelowna: British Columbia
Fruit Growers Association, 1990, p. 132.
71. Ibid., pp. 132-133.
72. Supreme Court, p. 7.
73. Ibid., p. 8.
74. It was known as the Bernhardt Doctrine
after Charlie Bernhardt, President of the BCFGA at the time, who
repeated its tenets so often that they became associated with
man on an individual level. Garrish, p. 63.
75. David Dendy and Kathleen Kyle, p.
133.
76. The term "fruitlegging"
or "fruit-rustling" was given by the industry to individuals
who misused their membership in the BCFGA this way. Ibid.,
p. 134.
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Copyright Christopher John Garrish. All rights reserved.
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