QUESTION PERIOD AT THE NEW BRUNSWICK LEGISLATURE!!! < Mardi >

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Economic Development
Mr. S. Graham: My question this afternoon is for the Minister of Business New Brunswick. A
recent publication of Atlantic Business had a feature story entitled Project HIP: The story of how
Nova Scotia scored the coolest company in Canada. The article goes on talk about Research in
Motion:
RIM’s technical support center, set to open in early 2006, will employ up to 1,200 level three and
level four technical support people over the next five years, with salaries in the $45,000 range. In
total, it’s a deal worth approximately $230 million to the city (of Halifax).
I will quote again from the article.
“The RIM deal is like this ray of light.” It’s also a milestone in NSBI’s (Nova Scotia Business Inc.)
campaign to transfer Nova Scotia—and Halifax in particular—into an IT capital.
This article clearly demonstrates how far New Brunswick’s economic development unit has fallen
in comparison to other provincial jurisdictions. My question to the Minister of Business New
Brunswick is this: Would he not agree that the time has now come to look for a new model for
economic development in the province?
Hon. Mr. MacDonald: Certainly, when the Leader of the Opposition and I both had the opportunity
to attend the KIRA Awards late last week, that was not the case. That was not what we heard. In
fact, we heard how New Brunswick was rapidly becoming the can-do province. There is some
credibility to that, because there are 30 000 people working in the IT sector in this province right
now. It is our fastest-growing sector, and we are continuing to make the strategic investments that
are necessary in order to keep that industry moving forward and growing.
Mr. S. Graham: In comments by one of Canada’s leading economists, Donald Savoie, pertaining
to the research file, he stated boldly:
I think New Brunswick was asleep at the switch and Lord is trying to rationalize his failure. It
doesn’t wash with me and I don’t think it will wash with New Brunswickers. A bit harsh, but frankly,
there is no excuse for this. You can spin it, you can rationalize it, but there is no excuse for being
asleep at the switch.
Those comments were made by Donald Savoie on December 14.
Now, we have a retired civil servant, Michael McBride, who was the director of investment for this
department. He stated publicly, referring to the government, that:
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They have not dropped the ball in the realm of economic development. Indeed they have yet to find
it. It really is time for someone to take a hard look at the economic development platform. Someone
needs to take our “Ship of State, chart a course and to actually sail it.
Mr. Minister, when you have a key civil servant who worked in your department and who is now
saying that it is time to look at a new model, do you not agree that the opportunity does exist, but
that the current model is flawed? I will remind the minister that it was his government that tore apart
one of the most dynamic economic development units in the country in 1999, by creating Investment
and Exports and Business New Brunswick. Remember, in this Chamber, two ministers would stand
because neither could concur on who was in charge of the file.
My question to the minister is this: In light of the fact that a leading economist is stating that we are
missing the boat; in light of the fact that a former civil servant, one of the leading directors of
investment, is stating that the ship has to change its course, will the minister not agree that we do,
indeed, have to change the model?
021 14:35
Hon. Mr. MacDonald: What we have to do in order to keep this province moving forward is to
create an environment that entices private sector companies to come in and set up shop in this
jurisdiction. It is working. We can cite examples like Virtual-Agent Services, which now has 14 sites
throughout this province, and is employing 750 people in this jurisdiction. We can talk about SNCLavalin,
which set up in Campbellton not that long ago. It moved its back-office operations to this
province out of the centres of Montreal and Toronto, and set up shop in this province because it felt
that we had the tools here that it needs to succeed. It felt that we had the workforce here that it needs
to move its company forward.
Mr. S. Graham: It is unfortunate that the minister will not acknowledge the current shortfalls that
exist within his department’s strategy to secure high paying jobs in New Brunswick. In fact, his own
spokesperson in Business New Brunswick stated:
“If a really large centre comes in to an area with well-paying jobs and demanding a certain skill
level, it can sometimes pull the workers away,” she said. “There’s a fear of—the term is called
cannibalization—of the workforce.”
There has to be an attitude change. The reason I am raising this today is that we saw 1 200 jobs, in
the $45 000 range, being allocated in Halifax. Those are jobs that could have come to New
Brunswick. I would like to propose a potential solution to the minister today. The reason why Nova
Scotia was successful is that it has developed a new model called the Nova Scotia Business
Investment Corporation. I think the time has now come for New Brunswick to look at a similar
model where an arm’s length creation, under a Crown corporation, is established for economic
development. Clearly, the CEO of this investment tool in Nova Scotia was successful in the
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Research In Motion project. That is why the time has come to look at the proposal we are
suggesting.
Hon. Mr. MacDonald: I want to take this opportunity to remind my learned colleague across the
floor that these are private companies. At the end of the day, the decision on where they locate is
theirs, and theirs alone, to make. We, on this side the House, will work diligently with each and
every company that presents an opportunity to come and set up in this province, to grow and
diversify the economy of this province. We will meet with each and every one of those companies
and find out what they need in order to build their business, and build their business here in New
Brunswick.
Mr. S. Graham: Nova Scotia Business Inc., which was set up as an arm’s length economic
development unit of government, as a Crown corporation, reports to a private sector board. The
minister and I are in concurrence. The private sector does have the key role in developing economic
opportunities for our province. That is why we are proposing that companies such as CGI would
have a key role in developing this new business model to secure these high paying jobs for New
Brunswick. That is where the opportunity exists.
The article in Atlantic Business Magazine that I am quoting goes on to say:
At a meeting with over a dozen U.S. venture capitalists, Lund,
—who is the CEO—
heard the same question coming up again and again. “Everyone wanted to know, ‘what’s your India
strategy.’”
The article talks about the Nearshore Campaign.
With Nova Scotia’s well-educated workforce, sound IT infrastructure and competitive cost of doing
business
—compared to the Silicon Valley—
Lund believes the province has what it takes to lure tech companies away from the sub-continent.
Can I ask the minister today, since Nova Scotia Business Inc. has an aggressive nearshore strategy,
to indicate to us what his near-shore strategy is?
Hon. Mr. MacDonald: I am familiar with the nearshore strategy of which the member of the
opposition speaks. In fact, I have had lengthy discussions with the companies that are trying to
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advance that strategy of economic development. I can assure the member opposite that where an
opportunity presents itself for New Brunswick, New Brunswick will be at the table.
Mr. S. Graham: Former civil servants in the minister’s own department are saying the exact
opposite. I will quote from a letter to the editor on May 1, 2006:
It is a sad commentary and a demonstration of just how far our great province has fallen in the
competitive business of attracting business. I am, of course, referring to the announcement of the
opening of the new Research in Motion support centre in Halifax.
022 14:40
The writer goes on to say:
Instead, our leaders, including Premier Lord, write glossy strategies full of ‘pillars’ and building
blocks’ and ‘foundations’ and they say things like ‘5 in 5’ [frankly 1 in 8 would be nice]. They really
do not seem to know what is happening in corporate Canada or the world and do not seem to be in
lock step with a competent public service.
When retired civil servants, who led the charge in economic development, are making statements
like this, the time has come to look at a new model. We are proposing a New Brunswick Business
Inc. model, where the private sector will set up an independent board as a Crown corporation, so that
New Brunswick can once again take the charge in economic development. Will you not admit that
it is a good idea, at least?
Hon. Mr. Lord: The Leader of the Opposition can read letters to the editor as much as he wants.
We value the opinions of different people, but the fact that a former civil servant writes a letter does
not, in itself, mean that it is the truth. We can find letters to the editor of past people who worked
for the government that talked about how the Liberals neglected the seniors and children of this
province and about how they could announce the same job five times without even creating that job.
If the Leader of the Opposition wants to look at results, I believe results are far more important than
letters to the editor.
There are over 36 000 more people working in New Brunswick right now than there were when the
Liberals were in office. The GDP growth per capita in New Brunswick was the third-highest among
the 10 provinces in the last seven years, and the average weekly earnings of New Brunswickers have
been the second-highest increase in the last seven years. We are doing far better than before, and we
will continue to do better by investing in people, by embracing innovation, by building strategic
infrastructure, and by lowering taxes—something that the Liberals never believe in.
Mr. S. Graham: I cannot believe that the Premier of New Brunswick is calling into account the
credibility of one of his former civil servants. This is not just any civil servant. He was the director
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of investment for the province of New Brunswick. He is saying that your government is not at the
table compared to other jurisdictions. That is why, today, we are raising the fact that we now need
to look at a new model. Nova Scotia has a model that seems to be having success. Nova Scotia was
successful in securing Research in Motion when this Premier was asleep at the switch.
The Premier likes to talk about his numbers in job growth. Unfortunately, today, people in New
Brunswick are working harder and making less every day. From 2001 to 2005, the average weekly
earnings did increase by 9%. However, provincial income taxes are up by 11%, municipal property
taxes are up by 36%, the cost of electricity is up by 17%, and the cost of transportation is up by 20%,
including insurance.
Yes, there are more people working, but they are working harder, in two jobs. That is why the
opportunity exists today. Let us build upon the success of what Nova Scotia has achieved. Will you
not admit that the time has come to look at a new model for economic development in New
Brunswick, possibly the model that we are proposing today?
Hon. Mr. Lord: The Leader of the Opposition can come here and say that we are asleep at the
switch and all those things, and quote his good friend Donald Savoie, who is a good friend of Frank
McKenna. Everybody knows that. However, the fact is that Donald Savoie also said that the Liberals
failed when it came time to create jobs, and in the 10 years that Frank McKenna was in office,
nothing had really changed. That is the reality, and he is a friend of Frank McKenna.
When the Leader of the Opposition states today that people are making less than before, that is
totally untrue. When he states that income taxes are higher, that is false. We have lowered income
taxes in six of the seven budgets that we have tabled. There are more people working. If he wants
to talk about former civil servants and their strategies, maybe he should tell us what he thinks of the
strategy of Francis McGuire, his personal economic adviser. Francis McGuire was a former deputy
minister, and his position is that we should not invest in the northern parts of New Brunswick. I want
to tell him and I want to tell the Leader of the Opposition that I do not agree with that former civil
servant.
Nous allons continuer à faire des investissements dans le nord du Nouveau-Brunswick. Même si le
Parti libéral veut continuer à abandonner les gens du Nord, nous ne les abandonnerons pas.
023 14:45
Mr. Murphy: There is an expression that applies to that blarney, and it is: Lead, follow, or get out
of the way. They need to get out of the way.
Stephen Harper’s federal government, through Statistics Canada, said a few days ago that we are
second-last now in GDP. I do not know what this Premier is talking about. It is blarney. His own god
says this. Considering the fact that we are now second-last in GDP growth in this country, my
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question to the Minister of Business New Brunswick is this: Does he have any plan to take us back
from the brink of being second-last in this country?
Hon. Mr. Lord: The member for Moncton North can use that language. Maybe we will check to
see whether or not it is parliamentary. He has a tradition and a pattern. One thing we know for sure
is that he does not want to lead. He loves to follow. When he had a chance last week to show his
support to the business community in Moncton by joining them on a flight to New York, he chose
to follow the weak leadership of his leader and to stay and be the obstructionist of the people of
Moncton. That is what the member for Moncton North did. We will not follow the lead of the
Liberals in being obstructionist. We will continue to lead in creating more jobs than ever before. I
invite the member for Moncton North to look at the statistics of Statistics Canada. Our GDP per
capita has had the second-largest growth in the last seven years—not second from the bottom, but
second from the top.
Mr. Murphy: I know weak leadership when I see it, because I am looking at it right now. That is
a fraction of a government. That is not a full government. It does nothing. In 1999, GDP growth,
according to Statistics Canada, was 6.2% for New Brunswick. We are now down to 0.5%. Wage
growth has slowed, investment has declined, and government spending in real dollars has been
reduced, especially in education. My question for the Minister of Business New Brunswick is this.
Does he have any policy initiatives whatsoever that will take us back to where we were in the time
of the Liberal government seven years ago?
Hon. Mr. Lord: I know that the Liberals love to live in fantasyland, and they want to go back to the
past. Sometimes they want to go back to the nineties, and sometimes they want to go back to the
sixties. One thing is clear about the Liberal Party of today: It does not believe in moving forward
into the 21st century. The facts are that from 1999 to 2005, New Brunswick ranked second from the
top in the country for GDP growth per capita. From 1987 to 1999, New Brunswick was in the
bottom half of the provinces. It is far better today than when the Liberals were in office. The
unemployment rate in the past seven years has been just above 10%, while in the miracle McKenna
Liberal years, the average unemployment rate was over 12%. The former President of the Liberal
Party may want to go back to those great days when he had all this power in the Liberal Party. I
much prefer making sure that we keep bringing the unemployment rate down. This year will see the
lowest unemployment rate in 30 years, and we are not done yet.
Mr. Murphy: It is funny that everybody out there is sitting except those people over there. Statistics
Canada says that we are second-last in GDP. The Atlantic Provinces Economic Council says that
we are second-last in job growth. There was a 9% growth in earnings from 2001 to 2005, but we
now pay 36% more in municipal property taxes, 17% more in electricity costs, 20% more in
transportation costs, and 11% more in provincial taxes. We have had nothing from this government
in pocket matters for the people.
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My question for the Minister of Business New Brunswick is simply this: Has he spoken with the
Minister of Finance with regard to reviewing and revising the figures for the economy next year in
light of this bad news from the Atlantic Provinces Economic Council and from Statistics Canada?
Is he consulting with the Minister of Finance? What is he doing?
024 14:50
Hon. Mr. Lord: Again, I want to correct the facts that are stated by the member for Moncton North,
because he is incorrect in what he is stating. The fact is that New Brunswick has had the secondhighest
weekly average earnings growth in the country in the last seven years, second from the top.
Those are the facts. The facts are that we have helped New Brunswickers keep more of their money
by lowering their taxes. I want to remind the member for Moncton North that every time that we
have lowered taxes, he and his whole party voted against reducing taxes for hardworking people.
They call that a gimmick. They much prefer taking the money away from hardworking people and
creating some sort of Liberal Sponsorship program. We will not let that happen. The member for
Moncton North can keep yelling and waving paper, but the facts are that New Brunswick has had
the third largest GDP growth per capita over seven years, as well as the second largest weekly
average earnings in Canada and he lowest unemployment rate in 30 years.
Garderies
Mme C. Robichaud : Mes questions s’adressent au ministre des Entreprises Nouveau-Brunswick.
Selon Statistique Canada, la force du travail en 2006, il y a eu une grande augmentation du nombre
de femmes sur le marché du travail. Au Nouveau-Brunswick, en 2006, 49 % sont des femmes et
51 % sont des hommes. En avril 2006, au Nouveau-Brunswick, il y a eu une décroissance du nombre
d’hommes mais une augmentation du nombre de femmes au travail. Comment votre ministère
prévoit-il appuyer l’augmentation du nombre de femmes sur le marché du travail en ce qui concerne
les garderies, puisque 76 % de ces femmes ont des enfants en bas âge?
L’hon. Mme Dubé : Cela me fait plaisir de répondre à cette question. La députée d’en face a
mentionné les garderies comme un moyen d’appuyer ces femmes qui sont sur le marché du travail.
Je suis fière de me lever à la Chambre, encore une fois, pour rappeler tout ce que nous avons fait et
tout ce que nous continuons à faire jour après jour pour améliorer les services de garderie, ce que
les gens du côté de l’opposition ont négligé de faire. Ils avaient un pauvre petit million de dollars
et, en dernier, ils l’ont même enlevé, comparativement aux 96 millions de dollars que nous
investissons cette année encore dans nos garderies. Nous donnons de la formation et nous
augmentons aussi le salaire de ces femmes qui jouent un rôle extrêmement important. Il y a
maintenant 3 000 places supplémentaires en garderie au Nouveau-Brunswick. Je vous dis que nous
n’avons pas terminé.
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M C. me Robichaud : J’imagine qu’on ne fait pas trop confiance au ministre des Entreprises
Nouveau-Brunswick, mais je lui pose une deuxième question. La semaine dernière, en NouvelleÉcosse,
il y a eu une motion pour appuyer les femmes au travail. Je lis :
Whereas in 2005 Nova Scotia signed a five-year agreement with the Government of Canada to
provide high quality accessible childcare; and
Whereas this agreement was terminated by the new federal government; and
Whereas Nova Scotian families require access to high quality childcare to undertake work and other
family obligations;
Therefore be it resolved that the Nova Scotia Legislature urge the federal government to provide
the multi-year funding necessary for parents in Nova Scotia to have real choices in childcare and
early childhood education.
Puisque nous savons qu’il y a une pénurie de places dans les garderies du Nouveau-Brunswick et
que les femmes sont un élément grandissant du marché du travail, comment prévoyez-vous attirer
des compagnies dans les collectivités qui n’ont pas de garderies? Pensez-vous que ces compagnies
paieront la note des garderies?
L’hon. Mme Dubé : Je peux vous dire que, de ce côté-ci de la Chambre, nous travaillons en équipe.
Je travaille de très près avec mon collègue des Entreprises Nouveau-Brunswick. C’est ce que nous
faisons jour après jour pour créer de l’emploi. Ce matin, le chef de l’opposition a réussi à dire que
plus de gens travaillent au Nouveau-Brunswick. Au moins, je suis contente qu’il a pu le rappeler à
la Chambre pour une première fois. En ce qui a trait aux garderies, je peux vous dire que ce
gouvernement-ci est extrêmement engagé. Nous savons que, pour les femmes qui travaillent et les
familles qui travaillent, nos enfants sont ce que nous avons de plus précieux. C’est vraiment
extrêmement important que nos enfants soient dans des garderies enregistrées où d’excellents
services sont à la portée de la main. Avec notre programme, notre budget et le premier ministre
Bernard Lord, c’est exactement ce que nous faisons. Il y a 3 000 places supplémentaires partout dans
la province depuis que nous sommes au pouvoir.
025 14:55
Cette année, l’opposition va voter contre cela. Nous avons 8 millions sur la table pour justement
développer d’autres places dans les garderies et certainement dans les milieux ruraux. Aujourd’hui,
on se lève et on essaie de nous faire la morale, mais, en réalité, les parlementaires du côté de
l’opposition sont contre les garderies, les femmes qui travaillent en dehors du foyer et les familles…
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Research and Development
Mr. Lamrock: This weekend, Donald Savoie was quoted in the newspapers as pointing out that
New Brunswick, because we have less private-sector spending in research and development, is more
reliant on making maximum use of the research and development done in the universities and in
other public sectors. He is absolutely right. We know that we have fallen further behind the rest of
the country and that the gap is widening in research and development spending, even though R & D
is how we create the really good jobs. We need to do something called commercializing research,
to make sure that we support entrepreneurs who want to take those ideas that are born in our
universities with our researchers, and find ways to build them into companies that create well-paying
jobs throughout New Brunswick. My question for the Minister of Business New Brunswick is this:
What new initiatives in the commercialization of university research will be brought forward in the
next few months?
Hon. Mr. MacDonald: I must say that I am pleased to see that the opposition has placed such a
focus today on the economic development of this province. It is about time that it does. We have
been working diligently as a province to make New Brunswick the smart province and to make it
the investment province. Having questions like this today gives us an opportunity to showcase
exactly what we have been doing. We have established a fund for innovation in the amount of $20
million. In addition, in this budget, we were able to put in $5 million more to help develop this
important infrastructure that we need in this province. It is growing. In fact, it is the fastest-growing
sector of our economy. We are working with our young people through postsecondary education and
training to help grow that as well.
Just to pick up on a question that the member for Miramichi Bay asked, in addition to providing
strategic investments in education, we are also helping to keep drunk drivers off the road.
Mr. Lamrock: The Minister for Business New Brunswick says that the knowledge sector is the
fastest-growing area of our economy under this government. We are second-last in economic
growth. That is like saying it is the best ice hockey team in Ecuador, because under this government,
being highest is not all that impressive. The fact of the matter is that Statistics Canada . . . I realize
that the government likes to say that reality has a liberal bias, but that is how reality is sometimes.
According to Statistics Canada, the gap between us and the rest of the country has grown in research
and development. In fact, the Canadian average in research and development just in the health sector
alone is larger than this government’s increase in the entire research and development silo. That is
the problem with this government. It puts $25 million in the fund, but it does not take it out.
What the Conference Board of Canada, in consultation with a group of 100 top CEOs, recommended
was a new tax credit for angel investors and to cover the full cost of companies who study and look
at using university-based research. Most states we compete with, and most provinces, are already
moving on it. The minister did not answer the first time. Will he answer this time? When will we
catch up with the rest of the country and offer a competitive tax credit for those who use R & D?
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Hon. Mr. MacDonald: Just for the member opposite, the comment about ice hockey in Ecuador
was not funny the first time he said it, and it is no more funny the third, fourth, or fifth times that
he said it. However, since he wants to quote Statistics Canada, let’s talk about exports and how our
exports last year grew more than those in the rest of Atlantic Canada combined. That is a fact from
Statistics Canada that we do not hear him quoting today. However, he needs to look at the whole
economy of this province. Certain companies need to be export-ready. We are providing that
assistance to them. Other companies need assistance with developing different trade, diversifying
the overall trade that they do with different companies, and diversifying the overall trade that they
have with different jurisdictions. We have funds in place to address that as well. We are working
with the business community of this province, and we will continue to do so.
026 15:00
Mr. Lamrock: I would say to the minister that the economy was not growing fast enough the first
time he said it, and it is not growing fast enough the fifth time he said it, because we are second-last
in economic growth, because the gap has grown in research and development, and because this
minister put $25 million in the bank, but does not have enough good ideas on where to spend it to
take it out and invest it in companies. He cannot give us any new ideas for commercialization. He
cannot tell us when he is going to move on tax credits, even though the top CEOs in Canada are
saying that is what they are looking for to invest. It is no wonder Captain Kirk was silenced by the
Klingons today. He does not know any of the answers.
My question is very simple. What we should be doing is this: Instead of reaching out to companies
across New Brunswick, we should be creating cluster-based economies to allow companies in
smaller communities to have access to the topflight research done in natural resources, energy,
forestry, and wind power, and use our natural resources. When will this minister have a tax credit
that will really promote equal opportunity by letting companies who invest in rural New Brunswick
and northern New Brunswick have access to university research? When will he catch up with the
rest of the country?
Hon. Mr. MacDonald: If the member opposite truly believes in tax cuts, why is it that each and
every time he had the opportunity to vote for them in this House, he voted against them? If he wants
to talk about tax reduction in this province, he should look at our corporate tax rate and how we have
taken steps to decrease that corporate tax rate. He should look at the small business tax rate in this
province and the fact that, when we took office on June 7, 1999, it was 6%. We have reduced that
to 1.5%, and it is going to reduce again. It is going to reduce to 1%. He does not like what he has
to hear. He is getting up and he is leaving the room. The truth is that we have put our money where
our mouth is, and we have made the investments in the people of this province.