pc response to onens coalition report

7/24/2019 PC Response to oneNS Coalition report

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DRIVINGMOMENTUM

A CASE FOR ACTION AND ACCOUNTABIL

ON IVANY REPORT

HON. JAMIE BAILLIE VICE-CHAIR, ONE NS COALITION

SUPPLEMENTARY REPORT


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2 A CASE FOR ACTION A ND ACCOUNTABILITY ON IVANY REPORT

MESSAGE TO

NOVA SCOTIANSEighteen months ago, the Nova Scotia Commission on Building Our NewEconomy released its final report Now or Never: An Urgent Call to Action forNova Scotians . Like all Nova Scotians, I took this call to action seriously. Weneed a real action plan to grow our economy and make Nova Scotia an evenbetter place to live, work and raise a family.

I believe that Nova Scotia needs a unified effort for economic development, asstated in the Ivany Report. This requires an action plan that all Nova Scotianscan get behind. While the report produced by the One Nova Scotia Coalitionhas made some progress, it falls short of the ambitious action oriented plan theauthors of the Ivany Report called for. In short, it takes an incremental approachwithout a clear, accountable driving force. In order to achieve success andlong-term prosperity, it will take t he support of the private and public sectors,

but this government, and future governments, must accept the accountabilityfor moving us forward together.

As a member of the One Nova Scotia Coalition, and a father of two girls, Iwant to create a better province for my children, I cannot offer an unqualifiedendorsement of a plan that I know in my heart will not generate or sustain themomentum needed to move Nova Scotia forward.

The Coalition plan has a number of good ideas, some of which are alreadybeing implemented. Once the rollout out of this Coalition report is complete, Iam concerned that the responsibility for Ivany goal implementation will be sodiluted that it will not be clear who is responsible and accountable for progress.The Ivany Report was unequivocal that the responsibility to make this happenrests with the provincial government.

This responsibility should not be laid solely at the feet of this government.All governments that follow, regardless of political stripe, must accept theaccountability to press forward and build on the successes. That can onlyhappen with a t rue action plan, with clear accountability. Nova Scotiansdeserve to be told by their government when actions fall short of expectations.The economic and demographic realities in Nova Scotia require this level ofcommitment. I offer this report with a sincere intent to provide constructivesuggestions on how to increase and sustain momentum on Ivany goals,strengthen accountability for results, and highlight how important it is to makeprogress on six specific goals of the Ivany Report.

HON. JAMIE BAILLIE


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3A CASE FOR ACTION AND ACCOU NTABILITY ON IVANY REPORT

CONTENTS :

EXPORT TRADE

A FOUNDATION FOR PROGRESS AND A STRONGERNOVA SCOTIA

LABOUR MARKET PARTICIPATION

DRIVING MOMENTUM

GROWTH OF RURAL INDUSTRIES

WHAT NOVA SCOTIANS EXPECTED

LEADERSHIP AND ACCOUNTABILITY

INTERPROVINCIAL MIGRATION AND IMMIGRATION

PAGE 07

PAGE 09

PAGE 05

PAGE 08

PAGE 04

PAGE 10

PAGE 06

CONCLUSION

FISCAL HEALTH

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PAGE 13


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All-party Committee of the Legislature Enact Ivany Report Goals into law Independent Commissioner of Economic Growth

DRIVING MOMENTUMHOLDING OURSELVES ACCOUNTABLE

Real targets for international immigration and interprovincial migration Youth employment strategy Resource royalties stay in local communities Support responsible resource development and IT jobs Bring taxes down to support sustainable growth

FOCUS ON PRIORITY IVANY GOALS

Set real annual targets for key Ivany Goals Ministers report to legislature on goals

DRIVING MOMENTUM


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As a coalition member, I worry that the Ivany Report will become another report that did not lead tochange and progress because no speci c means of accountability were established. Nova Scotiansaccept that the government alone cannot solve all of the provinces economic problems, but theydo expect that a government they elect with a mandate of running the province, will accept coreaccountability.

The Ivany Report was clear when it stated:

The Coalitions report contains good ideas that could help move the province forward, but it fallsshort by ignoring provincial government accountability. Success requires a de ned strategy, outliningclear targets to pursue, and assigning who is responsible for achieving them. An action plan must alsoinclude ways to honestly evaluate whether a particular action is working or not, so the appropriateresponse can take place in a timely manner. While the Coalitions plan calls for annual reporting, thisalone does not provide nearly enough accountability for achieving results. If no one is accountable forthe results, and there are no annual targets established, progress and success will be based more onchance than a real plan. That is unfair to the many Nova Scotians who endorsed the Ivany Report.

Nova Scotians need to see measurable progress to buy in. For that reason, I rmly believe that theachievement of the 19 Ivany goals should be a primary lens through which government evaluates itspriorities and decisions. This was the fundamental game changer of the Ivany Report. Current andfuture governments must prioritize the long term well-being of this province over short term politicalcalculations, which pit Nova Scotians against each other. The latter truly is the status quo, old politics.

Fundamentally, the Coalitions report lacks any strong provisions that would make sure the Ivany Reportis the central consideration for the policies of government.

1 Nova Scotia Coalition on Building Our New Economy. 2014. Now or Never an Urgent Call to Action for Nova Scotians. 52

WHAT NOVASCOTIANSEXPECTED

While the active participation of leaders from the private and community sectors and fromthe other levels of government is essential, the primary responsibility for leadership and initiative

rests with the provincial government. 1


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I believe that the best way to drive change in attitude is to start making progress on achieving Ivany goals inthe short term. Eighteen months after the Ivany Report was released, it is worth asking how are we doing inachieving wins and progress on our Ivany goals? Are we making progress or falling behind? Is governmentdoing enough to ensure that we meet our Ivany goals?

While Nova Scotians do not expect everything to have been achieved already, after almost two years they areright to expect that priority areas should be set by now, with real progress to report on the intended results.There must be a sense of direction and momentum to build upon.

Leadership starts with setting priorities. I believe that the Coalition report would have been signi cantlystrengthened had it placed greater emphasis and provided more accountability for results in the following sixareas that come from the Ivany Report itself. In the pages that follow, I will provide constructive ideas for howwe can strengthen our approach to these areas.

The six areas are:

A FOUNDATIONFOR PROGRESSAND A STRONGERNOVA SCOTIA

1. Leadership and Accountability

2. Interprovincial Migration and Immigration

3. Labour Market Participation

4. Growth of rural industries such as sheries, agriculture, and responsiblenatural resource development.

5. Export Trade

6. Fiscal Health


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LEADERSHIP AND ACCOUNTABILITY

In order to ensure that our province

achieves all 19 Ivany goals by 2025,there must be a long-term, independentaccountability structure in place for the10-year implementation phase of the Ivanygoals. The Ivany Report recommendedan all-party committee for this purpose. Italso recommended that the Ivany goals beenshrined in law, just like the successfulEnvironmental Goals and SustainableProsperity Act was structured.I believe the legislatureshould create a true all-partycommittee, and enact theIvany Report goals into law atits rst opportunity during thefall session of the legislature.

Responsibility for achievingthe Ivany goals shouldbe assigned to Ministersthrough a mandate from the Premier. Theseministers, accountable to the Nova ScotiaHouse of Assembly, would be responsible fordetailing how the actions of their respectivedepartments, in coordination with others,

have resulted in the achievement of speci ctargets established for the Ivany goals.

Finally, independent oversight is needed toprovide regular and impartial measurement

in order to evaluate progress. For this weneed a new independent o cer of the NovaScotia Legislature: The Commissioner forEconomic Growth. This person would actessentially as a Chief Ivany O cer. Thisperson should have private and public sectorexperience and be appointed for one, 10-year term. He or she would report annuallyto the Legislature on progress in achieving

the Ivany goals.These reportswould includecomprehensiveevaluations ofgovernmentdecisions, policies,and programs,to ensure theyare aligned

with the Ivany goals themselves. Nogovernment, present or future, could escapeaccountability for leading us to success onthe Ivany goals. This represents not only anew era of good government, it is what NovaScotia needs.

WE NEED A NEWINDEPENDENT OFFICER OF

THE NOVA SCOTIALEGISLATURE: THECOMMISSIONER FORECONOMIC GROWTH.

INTERPROVINCIALMIGRATION ANDIMMIGRATIONPopulation decline is an underlying and serious challenge we face. We have seen modestimprovements in the number of new permanent residents calling this province home throughinternational immigration up by approximately 140 in 2014 2 . However even modest improvements inthe number of new immigrants are often overwhelmed by the number of Nova Scotians leaving theprovince for work elsewhere. The Ivany goal calls for tripling the number of new permanent residentsby 2025 in order to achieve our population goals for Nova Scotia.

2 Citizenship and Immigration Canada. 2015. Facts and Figures 2014- Immigration Overview: Permanent residents. http://www.cic.gc.ca/english/resourc-es/statistics/facts2014/permanent/12.asp3 Statistics Canada. Table 051-0011 - International migrants, by age group and sex, Canada, provinces, and territories, annual (persons), CANSIM (data-base).

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LABOUR MARKET PARTICIPATION

The Ivany Report set a labour force goalof having Nova Scotias participation rateachieve a level on par or higher than thenational average by the year 2025. NovaScotia continues to have troubling labourmarket participation rates. In September 2015,Nova Scotias labour market participationrate was 62.9 per cent, the same rate asFebruary 2014 when the Ivany Report wasreleased, and still three points below thenational average 7. The authors of the IvanyReport estimated that achieving this goalwould bring more than 25,000 Nova Scotiansback into permanent attachment with thelabour force. Our continued lack of progresson this goal indicates both the severity ofour demographic challenges, and the factthat many Nova Scotians have lost hope andstopped searching for good work in theircommunities. This is particularly problematicfor our young working age population.

To reach the target of 7,000 new permanentresidents per year by 2025, Nova Scotiawill have to increase its total number ofinternational immigrants by an average ofapproximately 450 every year between now

and 2025. Achieving this goal will requirea speci c, targeted plan, which considersinterprovincial migration. Fundamentally,success in both areas is underpinned by theneed for increased economic activity andemployment opportunities for current andnew Nova Scotians.

The Ivany report calls for a net gain of1,000 working age Nova Scotians throughinterprovincial migration, annually, by 2025.We have a long way to go to achieve thattarget. We lost 542 Nova Scotians through the

rst quarter of 2015 4, and lost 1,424 workingage Nova Scotians in total in 2014 throughinterprovincial migration 5. In order to reachthe Ivany goal, Nova Scotia must improve itsnet interprovincial migration by an average ofapproximately 215 annually over the next 10years.

The health of our provincial economy andrenewal of communities in Nova Scotiahinges on the provincial government creatingthe right conditions for job creation. Ourability to ensure that more Nova Scotiansbecome attached to the labour force willstrengthen our capacity to make sure that allnew Nova Scotians have real opportunitiesfor a good job. This must begin with ouryouth. Government needs to prioritizethe development of a youth employmentstrategy . It is cri tically important that moreyouth become attached to Nova Scotiaslabour force.

Furthermore, I believe the provincialgovernment, through the all-party committeeof the legislature, should establish targets fora higher participation rate annually. Progressagainst these targets should be the subjectof explicit evaluation by the new independentcommissioner.

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4 Statistics Canada. Table 2-4. Quarterly population estimates and factors of d emographic growth, provincial perspective Nova Scotia. http://www.statcan.gc.ca/pub/91-002-x/2015001/t323-eng.htm5 Statistics Canada. Table 051-0012 - Interprovincial migrants, by age group and sex, Canada, provinces and territories, annual (persons), CANSIM6 Ibid.7 Statistics Canada. Table 282-0087 - Labour force survey estimates (LFS), by sex and age group, seasonally adjusted and unadjusted, monthly (personsunless otherwise noted), CANSIM (database). http://www5.statcan.gc.ca/cansim/a26?id=2820087


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GROWTH OF RURAL INDUSTRIES

The Ivany Report told us that traditional ruralindustries will be critical for the overall growthof the provincial economy and the renewal

of our rural communities. To disregard theimportance of supporting these industriescommits Nova Scotia to further decline. Ourprovince must do more to encourage theexpansion of traditional industries in ruralareas such as agriculture, sheries, forestry,and mining in addition to exploring the pos-sibilities for new activity in areas like onshoregas development. Without sustained growth,cuts to rural services will create a viciouscircle that makes it even harder for families toremain in rural Nova Scotia.

With the recovery of the global economy, alow Canadian dollar, and new opportunitiesthrough international trade agreements, thereis a real opportunity for success in growing

our rural industries. There are actions thatcould be taken immediately in forestry,agriculture, sheries, tourism, mining and

onshore gas development, for example.Through meaningful expansion of theseindustries we would improve our provincialrevenues and increase the number and prov-ince-wide distribution of good, well-paying

jobs.

To further boost investment in rural NovaScotia, the royalties associated with in-creased natural resource development couldremain with the local community, where theycan be reinvested in more jobs and growth.The best way to pay for the services we allcherish like roads, healthcare and educa-tion, and to keep more families in rural NovaScotia is to grow the economy and increaserevenue.

8 Statistics Canada. Table 282-0087 - Labour force survey estimates (LFS), by sex and age group, seasonally adjusted and unadjusted, monthly (personsunless otherwise noted), CANSIM (database).


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9 Nova Scotia Department of Finance. http://www.novascotia.ca/ nance/en/home/budget/budgetdocuments/2014-2016.aspx

EXPORT TRADE

The government expects that growth inexports will be very low in the coming years.

The government is projecting an increase of0.1 per cent for 2015 and 3.4 per cent for 2016.At this rate, it will be di cult to meet the Ivanygoal of increasing the value of exports to $20billion, and increasing the number of rmsengaging in the export trade by 50 per cent.

A signi cant factor contributing to slow exportgrowth is the declining activity in o shorenatural gas production. This points to the sig-ni cant opportunity for Nova Scotia throughthe exploration of onshore gas. Quite simply,we cannot set a goal to increase exports and

then quickly ban the growth of industries thatcan help achieve that goal. The governmentshould be aligning policies to increase thevalue of Nova Scotia exports by $600 millionannually, and encourage the industriesthat can help us get there. Additionally, theprovince should establish an annual target of43 new rms participating in the export tradeannually.

In 2015, exports can take on many forms.Traditional industries can work alongside

new, emerging opportunities. New businessstartups, often export-oriented, are a growingproduct of our IT industry. We support e ortsto encourage growth in the Information andCommunications Technology (ICT) eld.Adding the teaching of coding skills to oureducation curriculum is a good move, givingyoung Nova Scotians a chance to succeedin these new jobs and develop their criti-cal thinking skills. I support this, but ratherthan leaving the program solely to largeinternational companies, the many talentedNova Scotians with an expertise in this area,should be given the opportunity to sharetheir knowledge with our students. Ensuringfair access to capital, dedicated marketingresources, and clustering of creative talentwill also move this industry along.

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IT IS CRITICALLY IMPORTANTTHAT MORE YOUTHBECOME ATTACHEDTO NOVA SCOTIASLABOUR FORCE


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FISCAL HEALTH

It is important to recognize that achieving theIvany goal for scal health not only requires

government to get its spending undercontrol, but to grow the economy. Cuts toservices and stagnant revenue growth arenot a recipe for long-term economic successand the achievement of our Ivany goals.When cuts are necessary, it is imperative thatthey not come at the expense of economicgrowth or the most vulnerable.

No discussion of scal health would becomplete without addressing the issue of

high taxes. This responsibility rests squarelywith government. Nova Scotias business

climate, and cost of living for every individualand family, is directly a ected by some of thehighest taxes in Canada. These high taxeshold back economic growth. Without achiev-ing viable scal health too many of the otherIvany goals will remain di cult to achieve.The Coalition report is silent on this matterbut it is fundamental and must be addressed.


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CONCLUSIONIn February 2014, Nova Scotians rallied around the Ivany Report. Regardless of region, political party, or sectorof employment, we all came together in support of the 19 goals in the Report. We knew deep down that itscall of Now or Never was right. This coalescence of Nova Scotians around a single report represented aunique opportunity for government to act.

I remain as committed to the Ivany goals today as I was back then. I believe that instead of expecting less oraccepting the status quo, Nova Scotians must expect not only more from each other, but more from theirprovincial government and elected representatives. I believe that after 18 months we should be further ahead.We cannot let the Ivany Report or the One Nova Scotia Coalition Plan fail.

Accordingly, I believe the One Nova Scotia Plan is incomplete. First and foremost, it lacks clear accountabilitymeasures for present and future governments. This omission puts the plan at risk.

I have presented a number of provisions to ensure e ective accountability that I believe will strengthen theplan. I have also identi ed six speci c areas from the Ivany Report that should be strengthened and prioritized,and provided proposed targets for achieving them.

It is my intention to provide this constructive response because I want to make sure that our beautiful provincewill be even better for the next generation. This will only happen if we can generate momentum in the shortterm. This momentum will be sustained when commitments are joined with true accountability.


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