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Right Honourable Sir J. A. Macdonald. First Prime Minister of Canada The Constitution Act, 1867 (formerly known as the British North America Act), passed by the British Parliament, created the Canadian federation, which originally comprised four provinces: Ontario, Quebec, New Brunswick and Nova Scotia. Two orders of government were established: the federal (or national) government, with its seat in Ottawa, Ontario, and the provincial governments. Provisions were made for legislative institutions modelled on those of Britain for both orders of government. Over the years, Canada has become a federation composed of ten provinces and three territories.

In 1867, Canada had few people and vast undeveloped areas, with weak links between regions. For these reasons, the founders of the Canadian federation gave the federal government the powers that allowed it to strengthen the links between the regions. The Constitution Act, 1867 divided powers between the federal and the provincial orders of government, with some powers to be shared.

The federal government's powers include immigration, indirect taxation, criminal justice and penitentiaries, defence, and trade and commerce (section 91).

The provinces' powers include education, health and social services, the administration of justice, prisons, and direct taxation (sections 92 and 93).

The two orders of governments consult each other about matters of mutual concern.

In 1867, although Canada became more independent from Great Britain, ultimate power remained with the British Crown. For instance, only the British Parliament could modify the Constitution Act,1867. Canada has since gradually obtained its full independence from Great Britain.

In 1931, for instance, with the passage of the Statute of Westminster in the British Parliament, Canada obtained full jurisdiction over the conduct of its foreign affairs.

In 1949, the Supreme Court of Canada became the highest court for all legal issues of federal and provincial jurisdiction, when appeals to the Judicial Committee of the Privy Council in London were abolished.

In 1982, the British Parliament passed the Constitution Act, 1982, which, among other things, gave Canada the power to amend its Constitution, including the Constitution Act, 1867 and all other acts of the British Parliament that had amended it over the years. Thus Canada became fully independent from Great Britain.

The Constitution Act, 1982 also introduced The Canadian Charter of Rights and Freedoms (sections 1 to 34).

The commitment of the Parliament and the government of Canada "to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation." (section 36). This commitment thus constitutionalized this distribution arrangement, which had been formally introduced through federal legislation in 1957.

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