As the region’s first NDP premier, Dexter is not without a sense of occasion; he feels called to solidify Nova Scotia’s importance within the region. “Halifax has always been a gateway to this country and I want to reignite that sense that Nova Scotia is a nation-building province. We have a leadership role to play in this entire region.”
Dexter says the first step is to take a “regional view” of economic development, by marketing the Atlantic region as a connected market with 2.3-million people, rather than four distinct provinces. Of course, the news of the impending sale of New Brunswick Power to Hydro Quebec has undermined that vision. Dexter takes a typically pragmatic view: “No matter who the system operator is in New Brunswick, we’re going to have to do business with them.” His concerns about the sale however, reflect his pan-regional view; that a non-Atlantic system operator in New Brunswick may have interests that diverge from those of Atlantic Canada. “That would be concerning,” he says. He’s not yet saying what he’d actually do if that indeed proves to be the case.
Dexer’s views on economic development display a new level of statesmanship that is surprising from a leader who, a few short years ago, campaigned on public auto insurance and help for seniors. In fact, since taking power, Dexter has focused a significant amount of time on reaching out to business. Over the summer, he worked closely with Canadian Manufacturers and Exporters to introduce a manufacturing and processing investment rebate. He also introduced a higher equity tax credit rate. He has scheduled business missions to Ontario where he has met with leaders of firms such as Research In Motion, who have invested heavily in Nova Scotia in recent years. After conducting a personal audit of major CN assets in Nova Scotia, he arranged a meeting with president Claude Mongeau in an attempt to address logistics challenges at the Port of Halifax. While Dexter gushes about the attitudes of business leaders to the province (“They have some of their most productive operations here”), he is characteristically earnest about the real impact of his advances. “A lot of businesses simply want to look me in the eye and say, ‘I can make an assessment of this person’.” Dexter brushes off the notion that, in reaching out to business, he is selling out the social democratic aspect of his party, a criticism that was frequently leveled at Doer. “A lot of what has existed out there about the NDP and business is mythology that I have never agreed with or bought into.”
Even more surprising was Dexter’s response to the recent unveiling of a report from a panel of economic experts, which included Dalhousie economist Lars Osberg and APEC leader Elizabeth Beale, advocating raising taxes and cutting services in order to extricate the province from the fiscal hole of an ageing population, shrinking tax base and a heavy debt load. While no promises have been made, Dexter is considering raising income taxes and the HST to cover the projected $1.3-billion (largely) structural deficit. The news has prompted mixed reviews. “He clearly understands that we’re up against the wall with our fiscal situation in Nova Scotia,” says Valerie Payn, president of the Halifax Chamber of Commerce. “You have to admire his boldness early in his mandate, and the fact that, despite what people say about the NDP, he’s willing to be fiscally prudent.”
But others point out that raising taxes in Nova Scotia, just as New Brunswick is considering lowering its overall tax burden, could spell disaster for businesses. Nowhere is this as obvious as in Nova Scotia’s northern towns that closely border New Brunswick.
Amherst convenience store owner Michael LeBlanc put his life savings into purchasing his business 18 months ago. When the provincial government recently announced a tax hike on cigarettes (a cash cow for many convenience stores), LeBlanc estimates he lost 20 per cent of his business to New Brunswick competitors located a mere five minute drive away. In response, he put a large sign on the front of his property that read “Thanks NS Govt for Higher Taxes from NB Retailers.” A proposed two-per-cent hike in the HST could destroy his business, he says.
Your last issue featured the visage of Nova Scotia Premier Darrell Dexter. You identified him on the cover as the incrementalist. My dictionary “Funk and Wagnall’s Standard Dictionary” defines incremental as “a quantity added to another quantity”. Well, he’s making more headlines now for making a $2,000 plus acquisition of a camera at the expense of the taxpayer.
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As one might expect during these circumstances…’the premier is not available – he’s on a two week vacation.’
Under your headline you asked “what could possibly be next for Atlantic Canada’s First NDP Premier? From an incremental standpoint…1. he could recognize that he’s not really any different than his predecessor who apparently ran up a few thousand buying a screen to be used at “district meetings”. 2. Mr. Dexter could recognize the fact that he faces the same fate as Rodney in the next election. 3. perhaps he’s well suited now for another career move – photographer.
Oh yes, the word below ‘increment’ in the dictionary is “incriminate” and the word above it is “incredulous”!!!!!