The Manufacturing and Marketing of Steel in Canada: Dofasco Inc., 1912-1970

In light of the strategic and economic importance of steelmaking it is almost inevitable that governments will become involved in the industry's affairs. The task facing the historian of the industry is to explain the nature and consequences of this involvement. Steven Tolliday used the term "institutional impactedness" to describe government-business relations in interwar Britain [17]. After 1945 alternating policies of nationalization and denationalization created an uncertain business environment. Paul Tiffany suggested that in the United States "institutionalized divisiveness" was the main cause of endemic confrontation between steel firms and the government [16]. Both historians argue that the character of business-government relations affected the international performance of the British and American steel industries. In Canada the government has played a major role in facilitating the transformation of steelmaking from an infant industry into an internationally competitive force. The involvement of the Federal and Provincial governments ince 1945 has assumed two forms. First, Nova Scotia and Quebec have purchased firms and provided financial support both to offset locational disadvantages and to encourage the pursuit of non-economic objectives. 2 Consequently, political considerations have influenced corporate planning and the public sector has become dependent on government support. Second, the Federal authorities have extended a variety of incentives to privately-owned firms, leaving management o determine the direction of growth in response to the market. This second approach as helped to create a technologically advanced and internationally competitive industry. As Canada and the U.S. approach free trade, it is an appropriate time to examine how past relations between the government and Canadian steel