Saturday, July 30, 2005

Premier Lord: Master Tactician?

I don’t consider myself much of a political analyst but it never seemed to me that Premier Lord was much of a political tactician. In fact, it seemed to me that the day to day politics of being Premier pretty much seemed to annoy him.

Consider the Orimulsion scandal. An $800 million dollar boondoggle and he shrugged his shoulders and said it was an innocent mistake (rough translation). I would have thought that he should have expressed ‘outrage’ as do ‘all New Brunswickers’ and ‘heads will roll’ or ‘we will get to the bottom of this’.

Or how about auto insurance. The response there was so tepid that he nearly lost after a first term – which would have been the first time this had happened since Confederation.

Or consider hospital closures in the North. Sheesh. That was anything but tactical.

And the list goes on. How about his suspected, alleged, rumoured, hinted run for the Federal Tories? That should have skyrocketed his image in New Brunswick as a potential national leader but instead he was positioned as detached from the needs of New Brunswickers.

But in the past year or so, something has changed. Maybe it was his inner circle shakeup after the election. I dunno but something ain’t right in suburbia.

Premier Lord has orchestrated a number of political masterstrokes in the past 12 months that I believe would propel him to a massive majority if an election was held right now (or in 3 months – consider my comment below about Nackawic).

Consider the Lepreau nuclear power station. If the Premier had just announced its refurbishment last year with no fanfare (same deal on the table as now) he would have got a little bounce but not much. But after 12-18 months of prophesying of the coming Armageddon (remember the 6% hike in rates if we refurbish Lepreau – just 4 months ago?), the folks in Saint John were so jittery that when he announced the refurbishment (which was going to happen all along) every resident of Saint John rose to their feet in praise. In Saint John right now, Premier Lord would sweep every seat. No one cares that Saint John’s economy has been tanking for 15 years – the last 18 months have been good (Irving LNG, Lepreau) and NB voters have short memories.

Or consider the ‘medical school’ for Moncton. This will cost the province almost nothing compared to the overall cost of the health care budget and in fact will most likely lead to cost savings but the positioning on it has been outstanding. You would think that a $100 million medical school was being built at U de M instead of a few new classrooms. And he has hinted a similar set up is coming for Saint John or Fredericton.

Call the election now, keep them on the edge of their seats!

Also consider the pulp mill in Nackawic. Never mind that the Province wouldn’t give financial incentives to Bowater and that is why the plant closed to begin with. If the Premier can convince the Indians to take over the plant (less staff, lower wages), he will look like a hero to all of the Saint John River Valley. Every one will gloss over the fact that the ultimate financial package for the Indian company will end up being around the same as the one they wouldn’t give to Bowater.

The list goes on. He passed on hundreds of millions in Federal childcare dollars because he wanted to ‘stand up’ for the stay at home moms in New Brunswick. That’s a political winner. Never mind that almost all the other provinces signed such a deal and have millions in new funding in their coffers.

Now they are talking up immigration which should shore up voters in Moncton and to a lesser extent in Fredericton.

So, the only area that is not basking in the Lordship’s glow right now is the North – and they have mostly written that area off anyway.

So, to recap. Five years of indecision, inaction, the worst job creation record in Atlantic Canada, the lowest level of foreign business investment, the second lowest rate of immigration, population decline for the first time since the Great Depression, the alienation of the Federal government, Orimulsion, etc. etc. etc. and 12 months of savvy moves and he is now in the driver’s seat again.

What I want to know is who’s the political operative behind the master? Who is making all these home run decisions?

All the Premier needs now is an ‘Al Hogan’ at the TJ, Gleaner and Acadie Nouvelle. He could stay in power as long as Hatfield.

The Lord help us all.



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Friday, July 29, 2005

Tee hee hee

Was there ever any doubt that Premier Lord wouldn't refurbish the Lepreau nuclear plant? Remember, last year he said it was uneconomical to refurbish and earlier this year he said that refurbishment would push up power rates by 6% for all New Brunswickers.

Now, at today's announcement he said:

"It makes good economic and environmental sense."


How did we get from an uneconomic decision that will significantly increase power rates to one that makes good economic sense?

Politics. The Premier is on a role right now. This will shore up his support in Saint John for the next election. The cost of the refurbishment will be accrued most likely under the next Premier and the power rate increases for New Brunswickers? Well, they are coming fast and furious and the Premier is banking that we will forget Orimulsion and Lepreau come election time.

Which we probably will.

Tee hee hee.

Ain't politics grand? Decisions can go from awful to wonderful based on a few swing seats.

I say we need to privatize NB Power, write off the debt somehow and start over with a sensible, long term, depoliticized energy strategy for the province.

But we won't will we?

Those predictions of an early election in New Brunswick might turn out to be true afterall.



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Newspaper editing

I've always had a secret interest in editing a newspaper. So, just for fun, I have 'edited' Al Hogan's meaningless and unfounded diatribe against city hall. Just for your amusement.

********************

Nobody's heard so why bother?

We say: Citizens of Moncton [AL HOGAN] have [has] lost faith and trust in their [his] civic government NOTE TO Writer: Al, you never liked Brian M - now you do?

The City of Moncton says it wants public input into what it calls its "Corporate Strategic Plan", which in plain language is its general "vision" statement for the coming five years, including goals, priorities and challenges. It is also updating its present "Municipal Plan" which is a more detailed nuts and bolts document involving policy, with an emphasis on land use (zoning).

But why would citizens [AL HOGAN] bother? Public input and consultation [AL HOGAN's useless We Says] is fine and good if it is meaningful and people have even a modicum of faith that their views will be heard and fairly considered. It is a waste of time if there is no faith they will be heard. Today, there is no faith, nor is there any reason for such faith and trust.

The mayor, council and administration have failed to consult [AL HOGAN] the public on significant matters such as the annual budget and Mapleton Park, they have excluded [AL HOGAN] the public, conducting business behind closed doors, rubber stamping items in open council without clarity or discussion, have failed to demonstrate understanding of why the [AL HOGAN] public is upset when the facts do emerge, nor shown any inclination to try to correct blunders [AS SINGLY DETERMINED BY AL HOGAN]. They have hidden behind public relations "strategies" that are not working and have sent unelected city officials to explain and defend council decisions.

Why would any citizen [AL HOGAN] take the time to provide input [AL HOGAN hammers them at every opportunity] when their elected officials are so clearly not listening [to AL HOGAN only]? In fact, the councillors themselves have at times been oblivious to the details of what they were approving, by their own admission [ior AL HOGAN's interpretation].

These are people whose job it is to know and represent the public. They've failed miserably [says AL HOGAN and nobody else].

Former Mayor Brian Murphy went a very long way to ensuring the public was always kept abreast of the city's thinking, its plans, and that business was done transparently and in the open. Not only did he consult [AL HOGAN], he actually listened [to AL HOGAN] and adjusted plans accordingly [based on AL HOGAN's We Says], which is why the CN Sportplex is so named rather than being called the Moncton Commons, his own preference. And that is but one example. Contrast that to the situation today. Faith and trust must be earned [so says AL HOGAN]. The city hasn't come close [so says AL HOGAN].If council expects easy assurances that it will do better in future to work, then it is deluding itself [avoid big words AL].

Until it proves via action it has heard the public [AL HOGAN] and is willing to respond appropriately [to AL HOGAN's We Says], any appeal for public [AL HOGAN's] input is empty and meaningless. Nobody [AL HOGAN]'s listening! Why should the public [AL HOGAN]?


Editor's Note: I know a lot of folks at City Hall and they are men and women of integrity. Al Hogan's attempts to drag them through the mud are deplorable. There is constructive criticism but Al goes well beyond this. He is trying to turn the public on their city and its elected officials like a spoiled child that can get its mommy to listen to it. He figures if he turns up the rhetoric to maximum, somebody at City Hall will bow down and do what he says. Stand firm, City Hall. Don't allow a bitter, hollow, unthinking, trivial editor to sway your thinking.



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Canada made me. How 'bout you?

I am reading through Norman Levine's Canada Made Me - a book written in the 50s that paints a fairly bleak view of Canada. Levine meanders across Canada from Halifax to Vancouver and back and then writes up some gritty and sometimes downright negative views of our country.

I find this quite refreshing after being inundated on a daily basis with all the talk about how great our country is: best healthcare system in the world, best quality of life, highest standard of living, most tolerant society, etc. etc. etc.

Problem is there is no international data to back any of these claims up. Further, I once heard that if you are the one saying how great you are (and no one else), that usually means you have a major self-confidence problem.

But I digress.

My point is that Levine makes some interesting economic development related points. As the book is set in the 1950s, that makes it quite intriguing.

Couple of points:

1) On immigration. He quotes an old Ukranian immigrant living in Edmonton who states that when they arrived in Canada in the early part of the century - they all wanted to settle in Ontario but immigration officials kept the train locked until Alberta - no one was allowed out. Point? If people want to move to your country, governments should be able to set policy about where then settle. Read: Atlantic Canada, Manitoba, Saskatchewan and just about anywhere outside the 6 or 7 biggest cities in Canada.

2) On economic development. He quotes from a tourism brochure for the City of Edmonton circa 1950. The brochure states something like city leaders want to make Edmonton the capital of the new west by attracting business and growing the economy. Imagine. An economic development pitch in a tourism brochure. In New Brunswick, you'll get a picture of the Premier pushing lighthouses.

Ahh, focus.



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Thursday, July 28, 2005

A little rant about Moncton (city)

I will remind frequent readers of this blog that I am a big supporter of Moncton. I think it's a great city to live and work and as I have lived in seven other cities in my life - I think I can speak with a little authority on the subject.

However, I have just been exposed to the dark underbelly of the City of Moncton and I would like to vent a bit. This is my perogative as a resident.

I just moved downtown into a glorious old house. Big, beautiful and somewhat costly - although half what it would be in downtown Halifax. So, I pull up into my garage on the first day and the arse end of my Sienna van is slightly over the sidewalk. I go into the house and five minutes later come out to find a $30 ticket for parking on the sidewalk.

Now, this is not why I want to vent. Although, I was expecting the Welcome Wagon and instead I got a kick in the arse - thanks a bunch.

No, my complaint is with By-Law #T-102.

You see, I had a good idea. While paying for this egregious violation, I would ask the city to provide me with a list of key by-laws that I could read and make sure that I wouldn't face the wrath of the eager Commissionairre again. So I am told curtly to go to the City web site and download By-Law #T-102.

It's 97 pages.

Welcome to Moncton.

Here's a tip for the long winded, bloviating City Hall employees that salivate when they get to write up these things.

How about a summary? You know. When you come by the house to welcome me to Moncton with the flowers and brochures - how about a little 2 pager that has 20-30 of the key by-laws summarized?

Does the city realize expect all new residents (and old ones for that matter) to plow through 97 pages? I might read this beast just out of curiosity.

If the city wants to attract people and grow its population - particularly its downtown - it should make a little more effort to be nice. Let's try and not turn off every new resident with vulturous Commissionaires, unweildy by-laws and curt city employees.

Just be nice.

Send around the welcome wagon? Hey, some cities do this, you know?

Just nice.

Sort of like my attitude towards Al Hogan :-)



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Obsessed with being #1

In psychological terms, denial is a very powerful way to cope (or not) with a significant problem or crisis.

When my wife moved here over a decade ago, besides the weather, there was one other thing about New Brunswick that raised her curiosity. She couldn't understand why all around New Brunswick things had to be the 'biggest' or 'best' or 'longest'. After reflection, I understood her point:
-World's highest tides
-World's largest axe
-World's largest lobster
-World's longest covered bridge
-World's largest blueberry (I think this is gone now)
-World's largest potato (outside Fredericton - is it still there?)

It seemed to her that New Brunswick was compensating for the fact that it was a small, cold, poor, marginalized place but pretending to be something it wasn't. She said New Brunswick shouldn't throw around all these meaningless titles and should focus on what its core attributes are.

So when I saw the new UNB brochure for the Forging Our Futures fund raising campaign, I just had to sigh. There it was in bold print on the front page - "We are aiming to be the top public university in Canada by the end of this decade..."

Now consider a few facts. On a per capita basis, New Brunswick universities receives the least amount of R&D funding in Canada. The percentage of the New Brunswick population that is university age is declining steeply and provincial government funding for post-secondary education will be more and more squeezed out by health care in the coming years.

Based on that, shouldn't UNB's goal be - to try and survive until the end of the decade?

I don't know UNB's plan but it should include:
  • *Attraction of significant out of province students
  • *Try and find a way to keep the 2,500 English language Moncton high school graduates in province. Moncton graduates more English kids from high school than Fredericton and has no local options (except Mt. A and ABU which are not aligned with 90% of graduates).
  • *Less reliance on government core funding (yes, yes we get the point you are trying to make - the word 'public' is used more times than any other in the brochure).
  • *More R&D - practical, commercializable R&D
  • *More attraction of top talent from outside Canada. I have followed Dalhousie University and their attraction of some of the top minds in the research world. That's what UNB should do for New Brunswick. In addition, this talent should be tied to economic development strategies for the province (if there are any). Dalhousie's attract of the top mind in Internet security from around the globe to head an institute is pure genius. What R&D going on at UNB has global implications? (I'm just asking - I really don't know).
  • More connectedness. Only one of over 50 people on the campaign's cabinet from the United States? There must be more UNB grads in senior management positions in the USA than that.

Time for UNB to become a global university. When I pick up global newspapers, I hear about research at Dal. Clinical trials at Dal. New global institutes at Dal. I'm not kidding. I monitor global media references to Atlantic Canadian universities and Dal references outnumber UNB by 20 times. It is very rare to see the name UNB in a U.S. publication - much less a European one.

UNB should be a catalyst to help attract foreign companies and investment to New Brunswick. When CNN is consulting a global expert in xx - it should be a UNB prof.

Why not?



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Wednesday, July 27, 2005

Advice for Alec Bruce

In his T&T column Is leaving home the only option? written yesterday, Alec Bruce continues another in a long line of articles, commentaries, case studies and blogs about the structural economic troubles facing New Brunswick.

I won't comment on everything he said except to say that I agree with his diagnosis but not with his cure (or lack thereof).

New Brunswick will never be Ontario. Moncton will never be Toronto. At least not in our lifetime. So people that want to be writers, physicists, rocket scientists, etc. may have to leave New Brunswick to pursue their careers.

I think I rank labour mobility as one of the most, if not the most, important element of a healthy economy. I think the many efforts by government to restrict labour mobility (through sub-par income subsidy programs such as EI) are a drag on an economy. So if you feel the itch to go and settle elsewhere - go and God be with you.

But we also need to make New Brunswick a place where people can move to. Thousands of people moved to Moncton in the past 15 years and not all of them were from Tracadie. Try Toronto, Calgary, Montreal and Vancouver. Middle and senior managers in call centres and regional offices. Other professionals in IT, etc. And, by the way 2/3 were Anglophones.

Policy makers should start getting the message and investing seriously in economic developmetn (we spend in NB the lowest in Canada on economic development).

Commentators and bloggers should stop sending mixed messages to government about priorities. Until our economy is strong and we are net contributors to the Canadian economy, we should always answer 'economic issues' to any freakin' surveyor that calls us during supper - as that is the primary way that governments determine policy and programs.



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Tuesday, July 26, 2005

Memories, misty water-colored memories

Memories, Light the corners of my mind; Misty water-colored memories, Of the way we were; Scattered pictures, Of the smiles we left behind; Smiles we gave to one another, For the way we were;Can it be that it was all so simple then? Or has time re-written every line? If we had the chance to do it all again, Tell me, would we? Could we? Mem’ries, may be beautiful and yet, What’s too painful to remember, We simply choose to forget; So it's the laughter, We will remember, Whenever we remember... The way we were... the way we were...

I just finished reading about South Carolina's Governor and his efforts to bring new business investment to that state. Here are some highlights:

The governor has proven time and again his willingness to do everything in his power to bring economic development projects to South Carolina.

Gov. Sanford worked extremely hard to win that project. Anytime I needed him to meet with company officials, he agreed. I’ve seen him travel across the Atlantic for a dinner meeting, just to get back on a plane to be in Columbia for work the next day. He traveled to Dallas for a breakfast meeting with Vought and made it back in time for the start of the legislative session that same day. When the companies visited Alabama, the governor personally flew out at 4 a.m. to pick up the site selection team members and bring them back to South Carolina.

Aren't you thinking what I'm thinking? Doesn't it sound like Sanford went to the Frank McKenna school of economic development?

Could you imagine our current Premier personally flying out at 4 a.m. to pick up the site selection team members?

Chuckle.

Memories, misty water-colored memories....



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Oregon - who'd a thunk it?

You know the top reponse that people give me when I ask them why major manufacturing companies don't locate in New Brunswick is we are too far from major markets.

Funny. Oregon is 1,000 miles from LA, 1,400 from Phoenix, over 2,000 from Chicago and that state led the U.S. for manufacturing growth last year with 6,000 net new manufacturing jobs.

Oregon is twice as far from the North American population as is New Brunswick.

Oregon, New Mexico, Wyoming. All growing strongly. All in the boondocks.

New Brunswick in the boondocks and shrinking.

Better find a better excuse.



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Three cheers for his Lordship

I just read that Dieppe's Mayor Yvon Lapierre has resigned as mayor of Dieppe. This is a tremendous loss for the Greater Moncton region.

Yes, I realize that Mayor Lapierre had a reputation for being a hard 'butt' but that feistiness was just what Dieppe needed when he came to power over 7 years ago. You see, Dieppe could have been content with the rapid population growth in the community. It could have said we aren't interested in economic development - we will rely soley on our residential growth. But that wasn't enough for the Mayor. He wanted to build a strong local economy in Dieppe. He wanted to be a force attracting - and he had some success - and that is good for Greater Moncton as a whole.

So put aside issues of City planning, water supply and the few other family spats that we have seen in Greater Moncton in recent years. The bottom line is that Mayor Lapierre had a passion for economic development and that was very good for Greater Moncton.

I can only hope the next Mayor continues this passion.



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Monday, July 25, 2005

The rich get richer

It's not enough that Arizona grew its population by 50% over the past 14 years. It's not enough that the economy is booming. No, the Governor wants more. She orchestrated a major tax incentive package to attract even more investments.

The measure, signed into law May 20 by Gov. Janet Napolitano, creates a new optional formula that businesses can use to reduce their state income taxes in Arizona. At Napolitano's insistence, the change takes effect only if companies commit at least $1 billion in capital investment projects.

So Intel just announced a $3 billion microchip manufacturing plan in Arizona - over 1,000 new, high paying jobs.

I particularly like the Governor's hutzpah. The tax incentive program only kicks in for projects of $1 billion in capital investment or more.

Contrast that with New Brunswick's last tax incentive program. Small business owners will be able to get a personal tax deduction on money they invest in their businesses.

So, to recap:

New Brunswick - tax incentives for small business - population decline and no real foreign direct investment.

Arizona - tax incentives only for projects of $1 billion or more - second fastest growing state/province in North America.

Don't you wish we could ship Volpe and Lord to Arizona and bring Napolitano here? Just for a few years, please?

Wow.



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Save the Miramichi - Give 'em Wal-Mart

Every time I visit the Miramichi (which is fairly regularly) I see the many signs entitled "Save the Miramichi!" I have discussed this in a previous blog but I'll raise it again in light of new information.

I just got finished reading a Maclean's article on the benefits of Wal-Mart. Anyway, this article says that local organizers in support of bringing a Wal-Mart to the Miramichi gathered 11,276 signatures of folks hoping that Wal-Mart would set up in Miramichi.

Here's a quote:

"The whole talk of the Miramichi was this petition," Foote remembers. "Lots of people would say, 'I'll sign, but we'll never get one,' and I'd say, 'C'mon, you've got to believe!' "

Now, I won't begin to try and explain the weird and wonderful world of the New Brunswick psyche - where Wal-Mart would be run out of one town (Rothesay) and enthusiastically supported in another (Miramichi).

My point is that these folks in Miramichi were so passionate about attracting a Wal-Mart that they got 11,000 signatures in an area that might, just might, have 15,000 adults.

"C'mon, you've got to believe!" - they said.

Unbelieveable on any one of a number of levels.

Here's an idea. How about 11,276 signatures in a petition to attract Michelin to the Miramichi? Or some other major manufacturer? How about 11,276 signatures to attract Ubisoft (the French video game developer) to the Miramichi instead of the company coming and raiding its workers? How about 11,276 signatures to demand that the government help the community transition from highly dependent on EI to one that is economically vibrant and growing?

No, it's much more important to attract Wal-Mart. "C'mon, you've got to believe!"

One day, somebody's gonna figure out how to harnass that misguided passion towards something slightly more important - saving the Miramichi.

Sheesh.



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Sunday, July 24, 2005

Al Hogan - a cynical display of partisan politics

Every time I think that Al Hogan over at the Times & Transcript can never ever surprise me again - he does. Consider his "We Say" segment this week about the resignation of Brenda Fowlie.

Some of his quotes include:

"...the real issue has been lost and ignored in this entire, highly partisan effort to embarrass the government."

"....considerable hypocrisy in the Liberal attack"

"The Opposition has got its figurative pound of flesh"

"...just a cynical display of partisan politics."


Now, consider another scenario for a minute. Let's say that Fowlie picked up a gun, walked up to somebody and shot them (hypothically of course). Would Al's "We Say" determine that the Opposition attempts to bring Ms. Fowlie to justice are just a cynical display of partisan politics meant to embarras the government?

Fowlie broke the law. If the Opposition hadn't raised the issue who would? The media? Al Hogan? Give me a break. It's a sad day indeed when elected officials can break the law - in a very serious way - and the editor of the largest newspaper in New Brunswick by circulation - turns it into a cynical display of partisan politics meant to embarras the Opposition.

Shame on Al Hogan for trivializing such an important matter. Shame on him for showing such a 'cynical display' of his own partisan politics. Shame on him for using his platform to project such a mind-numbing influence on the people of New Brunswick.

Somebody recently said to me they are glad they live in a country where guys like Al Hogan are able to say what they like without fear of reprisal (the whole free speech thing).

I would like to live in a country where newspaper editors are not in bed with the ruling party. Where newspapers and journalists as individuals are a positive influence on society challenging what needs to be challenged, supporting what should be supported - acting as a moderating force in society - helping us see the issues through a wide lense.



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Final comment on Lepreau - for now

Don't you think that NB Power is a textbook case for the privatization of the energy industry? I know the problems they had in Ontario and Alberta. I realize the shenanigans that went on in the U.S. I even realize that Nova Scotians are blaming the quasi-privatization of NS Power for the damage inflicted by the ice storms in that province.

But look at NB Power. Not very long ago it offered one of the lowest power rates to both business and consumers. It's Lepreau plant won awards. Electricity was one of New Brunswick's top exports. Wow. Now, power rates are skyrocketing. Lepreau is a black eye regardless of which decision is made. The Orimulsion scandal - on a scaled basis - is the most damaging miscalculation of any provincial power utility in Canada - probably in history (interesting that no one was fired or even reprimanded for that miscue). And to top that off - it seems that every decision made by the utility is based on 'political' considerations. Imagaine that. NB Power is in serious trouble and it still has to make decisions based on politics.

I think it's time to bring in Emera - the publicly traded company that runs - the regulated - NS Power. Sell them NB Power. Rather, ask them how much money New Brunswick would have to pay to give them NB Power - as by any measurement with NB Power's debt load - no one would buy them.

Bill Belliveau suggests in his T&T column this weekend that the Lord government bring in Bruce Power out of Ontario to retrofit and run Lepreau. I say why stop at that? We have got to get the politics out of the power - before we truly get zapped.

When you mix a government notorious for its inability to make decisions with a situation like NB Power that calls for bold leadership - you get a recipe for disaster.



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Friday, July 22, 2005

Common sense and telephones

It's kind of funny but sooner or later things that seem to make sense to a few people make no sense to others.

Take the telephone. When NBTel started to make serious inroads into offering home telephone services 70 years ago, the telephone came with the service. You ordered the service and you got the appliance (i.e. the telephone). Back then, nobody would have ever run a wire up to your house and then walked away. The telephone was the service - not the line on which the signal ran.

Now fast forward to the mid 1990s. The Internet was the new telephone. We were told that having the Internet would be critical to a good quality of life and economic success in the future.

Yet nobody thought to combine the signal (line) with the appliance (the computer). I was involved in an effort to get government to find ways to encourage folks to buy computers and the Internet in the mid 1990s. We were going to make NB a hotbed of technology - the 'living lab' for new applications.

But very few people had computers and we were 7th in Canada (1998) for households connected to the Internet.

Now I see that Aliant, 10 years later, is now offering a monthly service that combines the cost of high speed Internet with a computer.

I hope this helps. New Brunswick is now dead last among the 10 provinces for the number of households connected to the Internet.

eNB, the PC government's technology initiative was supposed to 'use technology to benefit all New Brunswickers. Well, we have dropped from 7th to 10th in the number of households connected to the Internet since 1999. Something is not working.

The government should have an interest in getting people connected and using the Internet. Something like 80% of all new jobs created (not including the retail and wholesale sectors) require a knowledge of the computer and New Brunswickers are rapidly falling behind in this vital area.

I realize this was a bit of a ramble so let me sum up:
1. The computer in 2005 is the telephone in 1950 - everyone needs one.
2. New Brunswick is falling behind - rapidly - in the usage of the Internet.
3. The government doesn't seem to care very much.
4. This is a big problem.
5. Kudos to Aliant. Their attempt to exploit a profit and market share situation may provide a side public benefit.



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Why NB will never boom or some such rot

Ok. In a nutshell here is the core reason why New Brunswick's will never boom without a fundamental shift in think on economic development.

Consider what New Brunswick's Premier has lobbied Ottawa for in recent years:
1. Money for Lepreau
2. Money for more Equalization
3. Money for stay at home moms (see my comment below before you prejudge me on this one)
4. Money for more Employment Insurance (I am not sure he lobbied for this but he got it)

Consider what he has let slip off the table: the regional economic development agreement (REDA) which matched Federal and Provincial dollars for economic development purposes.

Now, consider Ontario. After successfully negotiating a deal with Ottawa for hundreds of millions to attract automotive manufacturing investments, now they want a similar deal for aerospace. A new strategy out this week calls for the doubling of industry revenues in 10 years but it also suggests that the industry's hopes of landing new aircraft manufacturing programs in Ontario are conditional on government support.

"It's not about government providing the substantive portions of the investments, it's about them inducing companies to invest here,'' said Rod Jones, executive director of the Ontario Aerospace Council. Jones said aerospace needs a long-term plan similar to what Ottawa and the province generated for the automotive industry. Both levels of government kicked in cash to help cover research and training funds to help lure several billion-dollar investments, including a new Toyota plant.

About inducing companies to invest here.

Those are words you may never here from the lips of the New Brunswick Premier. You'll hear lots of talk about education, health care, Lepreau, Equalization, etc. but economic development, good luck. Lot's of talk about small business, entrepreneurs, now immigration - but attracting the jobs - not interested.

That's why Ontario will continue to grow and New Brunswick will continue to fall.

***********
NOTE on the stay at home mom thing. Listen, I am not against SAHMs. My wife has been one since we had our third kid and were freakin' busy all the time. But the federal child care strategy was designed to help working mother's get a break on daycare costs. New Brunswick has the second lowest Employment Rate (working age people actually working) in Canada and probably North America. Do we need to incentivize further parents to stay home and be subsidized to do so? Lord's position on this deal fulfilled two purposes: 1) to make Prime Minister Martin look bad during an election (please note that NS and NL both signed child care deals that very week); and 2) to pander to the rural areas which have much higher rates of stay at home parents. Well, he succeeded on both fronts. The Prime Minister looked ridiculous announcing a deal with NB only to have the Premier's Office say "they can come down if they like but we aren't signing any deal today" and the media coverage overwhelmingly supported Lord. The media said good for him for standing up for stay at home parents in New Brunswick - way to go.

Now we have no child care money at all. No Lepreau money (don't be naive). And even more acrimony between the Feds and NB than ever before.



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Thursday, July 21, 2005

Nova Scotia taking risks

As you know, my preoccupation involves the attraction of foreign investment to Atlantic Canada. My preference is for large, well-established multinational firms that are well-capitalized and have solid revenue and profit streams.

But not always firms with these characteristics can be convinced to locate in a place like Atlantic Canada so you modify your wish list a bit.

So, last week Nova Scotia announced that Versata, a California-based software firm, would be locating in Halifax and creating 75 new jobs. For those jobs, the province would provide them with $2.5 million in payroll rebates. This works out to just under $30,000 per job.

Now, Versata has include major losses - racking up almost $90 million in losses over the past four years on revenues of $80 million.

A bold move for sure but unlike New Brunswick which gives loans upfront, Nova Scotia gives 'payroll rebates' which I assume happen after the jobs are created.

A couple of points:
*Why doesn't NB look at payroll rebates? They are less risky than upfront loans which may never be paid back.
*Why isn't NB investing in a few bold ways like NS? A money losing California-based IT firm would send shudders through Centennial Place in Fredericton.



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Wednesday, July 20, 2005

Who's advising Nebraska?

It looks as if Nebraska has New Brunswick's disease of conflicting signals in economic development. The Governor of Nebraska unveiled last week a new economic development plan with tax incentives for growing small businesses. He stated: "When I became governor, I promised I would do all I could to improve businesses already in the state, and allow them to expand. That is essential to grow our state's economy." He continues" "It's important for our state to take action and respond to changes in the businesses climate, and use these tools to promote entrepreneurial incentives."

And then he announces the new program at a Frito-Lay plant.

Hmmm.

A new program to grow small business, improve businesses in the state and promote entrepreneurship.

And then talk about the large businesses like Frito-Lay.

I wish Nebraska well but if they go down the path of Atlantic Canada and spend 95% of their time, effort and programming on small business growth, they will get the same result as us.

Nebraska, and New Brunswick, need a greater number of large businesses to move into the state and create stable, good paying and long term economic stability.

And if you look at the example in Alberta, Ontario, Arizona, etc. when there is massive large business investment, the small guys make out just fine - thank you very much.

As I have said before in this blog, I asked an acquaintance of mine that owns a restaurant one time if