Economic development report says Nova Scotia strategy needs changes
Posted Mar 20, 2014 02:04:20 PM.
This article is more than 5 years old.
A review of how the government gives financial help to business says the province has a role to play, but it has to do things differently.
Former Dalhousie University president Tom Traves was tasked in January to review Nova Scotia’s economic development assistance programs.
His report, released Thursday, recommends more arm’s-length decision making, investments linked to strategic economic objectives, and better evaluation and reporting.
“Most jurisdictions provide incentives to persuade businesses to expand or locate within its borders,” said Traves. “To compete, it appears, sometimes we must pay to play, but we must do so effectively and efficiently. Investments should be based on clear economic development principles such as innovation, productivity and improved exports across sectors, instead of short-term job creation,”
The recommendations include:
- an independent board to manage Jobs Fund investments
- capital investments that leverage additional funds and are measured against economic development principles
- strategies and projects that support companies in the same sector
- a single data-management system to streamline business applications and track clients who work with multiple departments and agencies
- greater authority, accountability and transparency for payroll rebates and loans from Nova Scotia Business Inc., tied to new job creation
- equity investments focused on early stage venture capital
- new accelerator program for start-up companies
- consolidation of trade development programs and programs to support interprovincial exporting
- an independent review of incentive programs and agencies every five years
The government’s first response came from Economic and Rural Development Minister Michel Samson, who said his department will consider what programming changes are needed to best respond to the Traves report.
“Government committed to creating a fair and competitive business environment,” said Samson. “That means offering a mix of economic development programs that work for businesses and are accountable to taxpayers.”
The full report is online: Review of Economic Development Assistance Tools: Assessment of Current Practices and Future Potential for Nova Scotia (PDF).
