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SUPPLEMENTARY REPORT

DRIVING
MOMENTUM
A CASE FOR ACTION AND ACCOUNTABILITY
ON IVANY REPORT
HON. JAMIE BAILLIE
VICE-CHAIR, ONE NS COALITION

MESSAGE TO
NOVA SCOTIANS
Eighteen months ago, the Nova Scotia Commission on Building Our New
Economy released its final report Now or Never: An Urgent Call to Action for
Nova Scotians. Like all Nova Scotians, I took this call to action seriously. We
need a real action plan to grow our economy and make Nova Scotia an even
better place to live, work and raise a family.
I believe that Nova Scotia needs a unified effort for economic development, as
stated in the Ivany Report. This requires an action plan that all Nova Scotians
can get behind. While the report produced by the One Nova Scotia Coalition
has made some progress, it falls short of the ambitious action oriented plan the
authors of the Ivany Report called for. In short, it takes an incremental approach
without a clear, accountable driving force. In order to achieve success and
long-term prosperity, it will take the support of the private and public sectors,
but this government, and future governments, must accept the accountability
for moving us forward together.
As a member of the One Nova Scotia Coalition, and a father of two girls, I
want to create a better province for my children, I cannot offer an unqualified
endorsement of a plan that I know in my heart will not generate or sustain the
momentum needed to move Nova Scotia forward.
The Coalition plan has a number of good ideas, some of which are already
being implemented. Once the rollout out of this Coalition report is complete, I
am concerned that the responsibility for Ivany goal implementation will be so
diluted that it will not be clear who is responsible and accountable for progress.
The Ivany Report was unequivocal that the responsibility to make this happen
rests with the provincial government.
This responsibility should not be laid solely at the feet of this government.
All governments that follow, regardless of political stripe, must accept the
accountability to press forward and build on the successes. That can only
happen with a true action plan, with clear accountability. Nova Scotians
deserve to be told by their government when actions fall short of expectations.
The economic and demographic realities in Nova Scotia require this level of
commitment. I offer this report with a sincere intent to provide constructive
suggestions on how to increase and sustain momentum on Ivany goals,
strengthen accountability for results, and highlight how important it is to make
progress on six specific goals of the Ivany Report.

HON. JAMIE BAILLIE

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

CONTENTS :
PAGE 04
DRIVING MOMENTUM

PAGE 05
WHAT NOVA SCOTIANS EXPECTED

PAGE 06
A FOUNDATION FOR PROGRESS AND A STRONGER
NOVA SCOTIA

PAGE 07
LEADERSHIP AND ACCOUNTABILITY
INTERPROVINCIAL MIGRATION AND IMMIGRATION

PAGE 08
LABOUR MARKET PARTICIPATION

PAGE 09
GROWTH OF RURAL INDUSTRIES

PAGE 10
EXPORT TRADE

PAGE 12
FISCAL HEALTH

PAGE 13
CONCLUSION

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

DRIVING MOMENTUM
HOLDING OURSELVES ACCOUNTABLE
All-party Committee of the Legislature
Enact Ivany Report Goals into law
Independent Commissioner of Economic Growth

FOCUS ON PRIORITY IVANY GOALS


Real targets for international immigration and interprovincial migration
Youth employment strategy
Resource royalties stay in local communities
Support responsible resource development and IT jobs
Bring taxes down to support sustainable growth

DRIVING MOMENTUM
Set real annual targets for key Ivany Goals
Ministers report to legislature on goals

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

WHAT NOVA
SCOTIANS
EXPECTED
As a coalition member, I worry that the Ivany Report will become another report that did not lead to
change and progress because no specific means of accountability were established. Nova Scotians
accept that the government alone cannot solve all of the provinces economic problems, but they
do expect that a government they elect with a mandate of running the province, will accept core
accountability.
The Ivany Report was clear when it stated:

While the active participation of leaders from the private and community sectors and from
the other levels of government is essential, the primary responsibility for leadership and initiative
rests with the provincial government.1
The Coalitions report contains good ideas that could help move the province forward, but it falls
short by ignoring provincial government accountability. Success requires a defined strategy, outlining
clear targets to pursue, and assigning who is responsible for achieving them. An action plan must also
include ways to honestly evaluate whether a particular action is working or not, so the appropriate
response can take place in a timely manner. While the Coalitions plan calls for annual reporting, this
alone does not provide nearly enough accountability for achieving results. If no one is accountable for
the results, and there are no annual targets established, progress and success will be based more on
chance than a real plan. That is unfair to the many Nova Scotians who endorsed the Ivany Report.
Nova Scotians need to see measurable progress to buy in. For that reason, I firmly believe that the
achievement of the 19 Ivany goals should be a primary lens through which government evaluates its
priorities and decisions. This was the fundamental game changer of the Ivany Report. Current and
future governments must prioritize the long term well-being of this province over short term political
calculations, which pit Nova Scotians against each other. The latter truly is the status quo, old politics.
Fundamentally, the Coalitions report lacks any strong provisions that would make sure the Ivany Report
is the central consideration for the policies of government.

1 Nova Scotia Coalition on Building Our New Economy. 2014. Now or Never an Urgent Call to Action for Nova Scotians. 52

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

A FOUNDATION
FOR PROGRESS
AND A STRONGER
NOVA SCOTIA
I believe that the best way to drive change in attitude is to start making progress on achieving Ivany goals in
the short term. Eighteen months after the Ivany Report was released, it is worth asking how are we doing in
achieving wins and progress on our Ivany goals? Are we making progress or falling behind? Is government
doing enough to ensure that we meet our Ivany goals?
While Nova Scotians do not expect everything to have been achieved already, after almost two years they are
right to expect that priority areas should be set by now, with real progress to report on the intended results.
There must be a sense of direction and momentum to build upon.
Leadership starts with setting priorities. I believe that the Coalition report would have been significantly
strengthened had it placed greater emphasis and provided more accountability for results in the following six
areas that come from the Ivany Report itself. In the pages that follow, I will provide constructive ideas for how
we can strengthen our approach to these areas.
The six areas are:
1. Leadership and Accountability
2. Interprovincial Migration and Immigration
3. Labour Market Participation
4. Growth of rural industries such as fisheries, agriculture, and responsible
natural resource development.
5. Export Trade
6. Fiscal Health

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

LEADERSHIP AND
ACCOUNTABILITY

have resulted in the achievement of specific


targets established for the Ivany goals.

Finally, independent oversight is needed to


provide regular and impartial measurement
In order to ensure that our province
in order to evaluate progress. For this we
achieves all 19 Ivany goals by 2025,
need a new independent officer of the Nova
there must be a long-term, independent
Scotia Legislature: The Commissioner for
accountability structure in place for the
Economic Growth. This person would act
10-year implementation phase of the Ivany
essentially as a Chief Ivany Officer. This
goals. The Ivany Report recommended
person should have private and public sector
an all-party committee for this purpose. It
experience and be appointed for one, 10also recommended that the Ivany goals be
year term. He or she would report annually
enshrined in law, just like the successful
to the Legislature on progress in achieving
Environmental Goals and Sustainable
the Ivany goals.
Prosperity Act was structured.
These reports
I believe the legislature
WE NEED A NEW
would include
should create a true all-party
INDEPENDENT OFFICER OF comprehensive
committee, and enact the
THE NOVA SCOTIA
evaluations of
Ivany Report goals into law at
government
its first opportunity during the
LEGISLATURE: THE
decisions, policies,
fall session of the legislature.
COMMISSIONER FOR
and programs,
ECONOMIC GROWTH.
Responsibility for achieving
to ensure they
the Ivany goals should
are aligned
be assigned to Ministers
with the Ivany goals themselves. No
through a mandate from the Premier. These
government, present or future, could escape
ministers, accountable to the Nova Scotia
accountability for leading us to success on
House of Assembly, would be responsible for
the Ivany goals. This represents not only a
detailing how the actions of their respective
new era of good government, it is what Nova
departments, in coordination with others,
Scotia needs.

INTERPROVINCIAL
MIGRATION AND
IMMIGRATION
Population decline is an underlying and serious challenge we face. We have seen modest
improvements in the number of new permanent residents calling this province home through
international immigration up by approximately 140 in 20142 . However even modest improvements in
the number of new immigrants are often overwhelmed by the number of Nova Scotians leaving the
province for work elsewhere. The Ivany goal calls for tripling the number of new permanent residents
by 2025 in order to achieve our population goals for Nova Scotia.

2 Citizenship and Immigration Canada. 2015. Facts and Figures 2014- Immigration Overview: Permanent residents. http://www.cic.gc.ca/english/resources/statistics/facts2014/permanent/12.asp
3 Statistics Canada. Table 051-0011 - International migrants, by age group and sex, Canada, provinces, and territories, annual (persons), CANSIM (database).

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

To reach the target of 7,000 new permanent


residents per year by 2025, Nova Scotia
will have to increase its total number of
international immigrants by an average of
approximately 450 every year between now
and 2025. Achieving this goal will require
a specific, targeted plan, which considers
interprovincial migration. Fundamentally,
success in both areas is underpinned by the
need for increased economic activity and
employment opportunities for current and
new Nova Scotians.

The Ivany report calls for a net gain of


1,000 working age Nova Scotians through
interprovincial migration, annually, by 2025.
We have a long way to go to achieve that
target. We lost 542 Nova Scotians through the
first quarter of 20154, and lost 1,424 working
age Nova Scotians in total in 2014 through
interprovincial migration5. In order to reach
the Ivany goal, Nova Scotia must improve its
net interprovincial migration by an average of
approximately 215 annually over the next 10
years.

LABOUR MARKET PARTICIPATION


The Ivany Report set a labour force goal
of having Nova Scotias participation rate
achieve a level on par or higher than the
national average by the year 2025. Nova
Scotia continues to have troubling labour
market participation rates. In September 2015,
Nova Scotias labour market participation
rate was 62.9 per cent, the same rate as
February 2014 when the Ivany Report was
released, and still three points below the
national average7. The authors of the Ivany
Report estimated that achieving this goal
would bring more than 25,000 Nova Scotians
back into permanent attachment with the
labour force. Our continued lack of progress
on this goal indicates both the severity of
our demographic challenges, and the fact
that many Nova Scotians have lost hope and
stopped searching for good work in their
communities. This is particularly problematic
for our young working age population.

The health of our provincial economy and


renewal of communities in Nova Scotia
hinges on the provincial government creating
the right conditions for job creation. Our
ability to ensure that more Nova Scotians
become attached to the labour force will
strengthen our capacity to make sure that all
new Nova Scotians have real opportunities
for a good job. This must begin with our
youth. Government needs to prioritize
the development of a youth employment
strategy. It is critically important that more
youth become attached to Nova Scotias
labour force.
Furthermore, I believe the provincial
government, through the all-party committee
of the legislature, should establish targets for
a higher participation rate annually. Progress
against these targets should be the subject
of explicit evaluation by the new independent
commissioner.

4 Statistics Canada. Table 2-4. Quarterly population estimates and factors of demographic growth, provincial perspective Nova Scotia. http://www.
statcan.gc.ca/pub/91-002-x/2015001/t323-eng.htm
5 Statistics Canada. Table 051-0012 - Interprovincial migrants, by age group and sex, Canada, provinces and territories, annual (persons), CANSIM
6 Ibid.
7 Statistics Canada. Table 282-0087 - Labour force survey estimates (LFS), by sex and age group, seasonally adjusted and unadjusted, monthly (persons
unless otherwise noted), CANSIM (database). http://www5.statcan.gc.ca/cansim/a26?id=2820087

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

GROWTH OF RURAL INDUSTRIES


The Ivany Report told us that traditional rural
industries will be critical for the overall growth
of the provincial economy and the renewal
of our rural communities. To disregard the
importance of supporting these industries
commits Nova Scotia to further decline. Our
province must do more to encourage the
expansion of traditional industries in rural
areas such as agriculture, fisheries, forestry,
and mining in addition to exploring the possibilities for new activity in areas like onshore
gas development. Without sustained growth,
cuts to rural services will create a vicious
circle that makes it even harder for families to
remain in rural Nova Scotia.
With the recovery of the global economy, a
low Canadian dollar, and new opportunities
through international trade agreements, there
is a real opportunity for success in growing

our rural industries. There are actions that


could be taken immediately in forestry,
agriculture, fisheries, tourism, mining and
onshore gas development, for example.
Through meaningful expansion of these
industries we would improve our provincial
revenues and increase the number and province-wide distribution of good, well-paying
jobs.
To further boost investment in rural Nova
Scotia, the royalties associated with increased natural resource development could
remain with the local community, where they
can be reinvested in more jobs and growth.
The best way to pay for the services we all
cherish like roads, healthcare and education, and to keep more families in rural Nova
Scotia is to grow the economy and increase
revenue.

8 Statistics Canada. Table 282-0087 - Labour force survey estimates (LFS), by sex and age group, seasonally adjusted and unadjusted, monthly (persons
unless otherwise noted), CANSIM (database).

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

EXPORT TRADE
The government expects that growth in
exports will be very low in the coming years.
The government is projecting an increase of
0.1 per cent for 2015 and 3.4 per cent for 2016.
At this rate, it will be difficult to meet the Ivany
goal of increasing the value of exports to $20
billion, and increasing the number of firms
engaging in the export trade by 50 per cent.
A significant factor contributing to slow export
growth is the declining activity in offshore
natural gas production. This points to the significant opportunity for Nova Scotia through
the exploration of onshore gas. Quite simply,
we cannot set a goal to increase exports and
then quickly ban the growth of industries that
can help achieve that goal. The government
should be aligning policies to increase the
value of Nova Scotia exports by $600 million
annually, and encourage the industries
that can help us get there. Additionally, the
province should establish an annual target of
43 new firms participating in the export trade
annually.

In 2015, exports can take on many forms.


Traditional industries can work alongside
new, emerging opportunities. New business
startups, often export-oriented, are a growing
product of our IT industry. We support efforts
to encourage growth in the Information and
Communications Technology (ICT) field.
Adding the teaching of coding skills to our
education curriculum is a good move, giving
young Nova Scotians a chance to succeed
in these new jobs and develop their critical thinking skills. I support this, but rather
than leaving the program solely to large
international companies, the many talented
Nova Scotians with an expertise in this area,
should be given the opportunity to share
their knowledge with our students. Ensuring
fair access to capital, dedicated marketing
resources, and clustering of creative talent
will also move this industry along.

9 Nova Scotia Department of Finance. http://www.novascotia.ca/finance/en/home/budget/budgetdocuments/2014-2016.aspx

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A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

IT IS CRITICALLY IMPORTANT
THAT MORE YOUTH
BECOME ATTACHED
TO NOVA SCOTIAS
LABOUR FORCE

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

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FISCAL HEALTH
It is important to recognize that achieving the
Ivany goal for fiscal health not only requires
government to get its spending under
control, but to grow the economy. Cuts to
services and stagnant revenue growth are
not a recipe for long-term economic success
and the achievement of our Ivany goals.
When cuts are necessary, it is imperative that
they not come at the expense of economic
growth or the most vulnerable.

high taxes. This responsibility rests squarely


with government. Nova Scotias business
climate, and cost of living for every individual
and family, is directly affected by some of the
highest taxes in Canada. These high taxes
hold back economic growth. Without achieving viable fiscal health too many of the other
Ivany goals will remain difficult to achieve.
The Coalition report is silent on this matter
but it is fundamental and must be addressed.

No discussion of fiscal health would be


complete without addressing the issue of

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A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

CONCLUSION
In February 2014, Nova Scotians rallied around the Ivany Report. Regardless of region, political party, or sector
of employment, we all came together in support of the 19 goals in the Report. We knew deep down that its
call of Now or Never was right. This coalescence of Nova Scotians around a single report represented a
unique opportunity for government to act.
I remain as committed to the Ivany goals today as I was back then. I believe that instead of expecting less or
accepting the status quo, Nova Scotians must expect not only more from each other, but more from their
provincial government and elected representatives. I believe that after 18 months we should be further ahead.
We cannot let the Ivany Report or the One Nova Scotia Coalition Plan fail.
Accordingly, I believe the One Nova Scotia Plan is incomplete. First and foremost, it lacks clear accountability
measures for present and future governments. This omission puts the plan at risk.
I have presented a number of provisions to ensure effective accountability that I believe will strengthen the
plan. I have also identified six specific areas from the Ivany Report that should be strengthened and prioritized,
and provided proposed targets for achieving them.
It is my intention to provide this constructive response because I want to make sure that our beautiful province
will be even better for the next generation. This will only happen if we can generate momentum in the short
term. This momentum will be sustained when commitments are joined with true accountability.

A CASE FOR ACTION AND ACCOUNTABILITY ON IVANY REPORT

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