It`s about time this reality received some press. The Dexter Gov. should really work this study to pour money into Halifax. More tourists in Halifax will mean spillover for the region. More busineess and industry in Halifax will mean more people in rural areas will be able to continue to live there by providing support for business and industry or by having their tax burden eased by HFX tax$$$.
http://thechronicleherald.ca/Front/1194389.html
Economy hinges on Halifax, study says
Prof has 24 ideas to spark N.S. prosperity
By JEFFREY SIMPSON Provincial Reporter and The Canadian Press
Fri, Jul 30 - 4:53 AM
DONALD SAVOIE
The economic success of Nova Scotia, and the other Maritime provinces, hinges largely on the health and prosperity of Halifax, a new study says.
Donald Savoie, who submitted his report on Nova Scotia’s economic development efforts to Premier Darrell Dexter on Thursday, is recommending the province capitalize to a greater extent on Halifax’s potential to spur wider growth and investment in the region.
"It’s a gem of a city, it’s a world-class city," said Savoie, a professor of public administration at the University of Moncton.
Savoie cited several attributes of the capital that could be further promoted to attract more business, including its natural geographic location next to the ocean, top-tier schools and research facilities such as Dalhousie University, and thriving firms like Ocean Nutrition.
"Success breeds success, and Halifax has spawned a fair number of success stories," Savoie said.
But it will be difficult for rural areas to prosper without Halifax leading the way, he said.
"There are people who point to Halifax to explain their economic woes," he said.
"Rural Nova Scotia needs a strong Halifax."
Savoie’s 45-page report, titled Invest More, Innovate More, Trade More, Learn More: The Way Ahead for Nova Scotia, lists 24 recommendations that include setting up a $50-million venture capital fund and cutting some corporate taxes.
Developing human resources through greater education and training — whether through adult learning, upgrading skills or stay-in-school programs — is at the top of the list, Savoie said.
"You can’t get it wrong if you go there," he said.
"Economic development is people."
But the province also needs to streamline its efforts to promote economic development, tasking Nova Scotia Business Inc. with making first contact with new firms from other areas and designating Innovacorp as the body dealing with all venture capital matters.
"There’s an awful lot of people running around doing economic development in Nova Scotia," Savoie said.
"We certainly don’t need more. They’re tripping over each other."
Savoie, who has written about regional development for 20 years, said Nova Scotia businesses need to invest more in research, and one way to do that would be to set up a venture capital fund with federal, provincial and private funds.
He said there’s a lack of venture capital in the Atlantic region, and small companies have a harder time finding startup cash than firms in Ontario, Quebec or the West do.
Savoie said Ottawa could provide $10 million to $20 million to help create a venture capital fund in the region, and the province should match that and then invite private partners to run the fund. He expects private venture capital investors would then match the public money.
"I’m saying they should go after the federal dollars . . . and it should be located in Halifax and it should have the freedom to invest wherever there are opportunities in Atlantic Canada," Savoie said.
Venture capitalists generally invest in small startup firms with the aim of helping them grow large enough to become profitable, publicly traded companies.
Savoie’s report also calls for the elimination of the province’s capital tax, which the Dexter government is already phasing out.
In addition, Savoie said, the province should increase tax credits for businesses that invest in themselves.
Dexter asked Savoie to come up with ideas on how the government could help the province’s private sector after an economic advisory report last November noted Nova Scotia’s dire financial situation.
Savoie acknowledged his proposals would cost the province more in tax revenues at a time when it is facing budget deficits. But he argued that the province must consider how much revenue a growing private sector could generate if it could invest more in its productivity.
Savoie also gave the government credit for trying to get the province’s financial house in order. He said Nova Scotia compares favourably to neighbouring provinces such as New Brunswick, which is facing a $750-million deficit and still unwisely planning to cut taxes.
"The Dexter government has made some courageous steps forward," Savoie said.
"Some tough decisions have been made."
Dexter commissioned the independent report at a cost of $85,000 and will now send it to his Council on the Economy for further study.
"There’s a lot to chew on in the Savoie report," the premier said.
"These are all things that we’ll be considering over the next couple months."
Liberal economic development critic Zach Churchill urged the province to immediately adopt some of Savoie’s recommendations, especially making its tax regime more competitive.
"We’ve been encouraging this government to reduce small business taxes," Churchill said.
"We need to make sure we have a system that supports small business owners and entrepreneurs."
Churchill also said a high HST and personal income taxes are holding the province back.
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‘Rural Nova Scotia needs a strong Halifax.’
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