Thank you for that kind introduction, Paul.
I want to begin by thanking the Metropolitan Halifax Chamber of Commerce for once again hosting the annual State of the Province address.
Changes in the worldwide economy are cause for concern for all of us. So, I’m grateful to have this opportunity to reassure Nova Scotians that our province is well positioned to weather the global economic uncertainty. And to let people know that my government is prepared to take decisive action to help them through what will be a difficult time.
So, what is the state of our province?
I’ve been talking to Nova Scotians from every walk of life, from every corner of the province. I’ve spoken to economists and fishermen, to bankers, retailers and construction workers. To stay at home moms and to students.
One thing is clear – people are concerned. They’re afraid their retirement savings won’t sustain them through their golden years. And they’re worried their job may become a casualty of the global economic down turn.
I share their concern.
We are already starting to see the effects of the global economic changes here in our province. Industries that are tied to the auto sector and the housing market have been the first to feel the impact of the slowdown. Over the next number of months its likely more people will be affected.
But, it’s not all doom and gloom. There are indications that Nova Scotia will fare better than many other regions.
I’m proud to tell you today that Nova Scotia’s unemployment rate remains the lowest in Atlantic Canada.
In fact, more Nova Scotians were working in October than ever before in our province’s history.
In the last three weeks, two IT companies have announced they are setting up shop and creating well paying jobs in our province – and there are more announcements to come.
The Atlantic Provinces Economic Council Financial outlook for 2009 forecasts a promising future for Nova Scotia. APEC highlighted Nova Scotia’s thriving defence, security, aerospace and life sciences sectors, as well as our economy's increased demand for labour and our low inflation rate.
The province’s Better Regulation Initiative is making it much easier for businesses to deal with government. And we are continuing to build on our competitive tax system in order to attract investment.
Consumer spending is up and tourism, which is so important to many part of Nova Scotia, held its own in 2008.
And economists from Canada’s chartered banks agree that our province is relatively well placed to ride out this economic storm.
The issue for Nova Scotians is how to convert these positive indicators into a prosperous future.
We believe the way to do that is by adhering to the strong fiscal management that has become our trademark.
Today, more than ever, we are reaping the benefits of the hard work that went into balancing the books and having a debt management plan.
That’s why its so important that we continue to grow the economy and balance the budget. That will mean tough choices. But I’ve made these choices before – when I came to government, we faced huge deficits. We were up to the challenge then – and I am up to the challenge now.
Others in the House of Assembly want to add to our budget pressure and push us towards a deficit. I believe that to be the wrong direction.
On December 19, Finance Minister Michael Baker will present an update of our province’s finances. And yes, the books are balanced. I don’t want to steal Minister Baker’s thunder . . . But it’s no secret that some of our revenues have taken a substantial hit lately. For example, natural gas prices are averaging well below what we had budgeted, with a corresponding impact on our revenues.
The easy solution would be to spend Nova Scotia into deficit.
That’s not the route we have taken. We have responded to these revenue challenges by going over the remaining budgets of every department with a fine-tooth comb.
Difficult decisions have been made. And more will be made in the months ahead. That’s the price of leadership.
At the same time, we must also make sure we are making the right choices on growing the economy.
I am prepared to take decisive action – to invest in one of the largest infrastructure programs Nova Scotia has ever seen – to build jobs and confidence from one end of the province to the other.
Our investments will put Nova Scotians to work, building and modernizing roads, public buildings and community infrastructure.
Our Finance Department estimates that for every dollar spent on infrastructure, $1.50 is generated throughout the economy. Money that pays mortgages, buys groceries and keeps communities vibrant.
Investing in infrastructure, with its immediate and lasting benefits, is a far better use of tax dollars than creating new programs with short-term benefits and long lasting price tags.
I have pressed the Prime Minister on the need to get the infrastructure funding moving more quickly. We have to remove the bottlenecks in the system. We also need Ottawa to be flexible on how provinces use infrastructure funding. But above all, we need our Members of Parliament to stop the partisan politics and get back to the business of governing.
We know that national infrastructure renewal programs work.
We have spent hundreds of millions of dollars on federal-provincial-municipal infrastructure agreements.
Projects funded this way have provided thousands of Nova Scotians with clean water.
They have provided Nova Scotians, young and old, with first class recreational facilities and more opportunities to live healthier, more active lives.
Just ask a soccer player what she thinks of the investment being made in the Cape Breton Health Recreation Complex. Ask a swimmer from Truro or a hockey player from Colchester County what the recently announced Regional Civic Centre will mean to him.
These are legacy projects that will serve our people and our communities for many years to come.
We have also undertaken critical infrastructure projects on our own.
We’re investing more than 19 million dollars to make high speed internet service available to every Nova Scotian by the end of next year.
We’re well on our way to fulfilling our promise to pave 2-thousand kilometres of roads – the equivalent of traveling from Halifax to Port Hawkesbury seven times. – That sounds like an average week for me. –
Over the next 10 years, we will invest 1.6 billion dollars in new long-term care facilities that will provide older Nova Scotians with the care and dignity they deserve.
We’re giving our youngest Nova Scotians the best possible start with new schools, like the one opened earlier this week in Musquodoboit.
And we are acting now to meet the skills needs of tomorrow with investments in our community college network.
These projects are valuable to communities. But I believe the value is increased in challenging times. The jobs associated with these projects have the power to transform a community.
I believe we need to have action now on the Atlantic Gateway.
I want to see work begin as soon as possible on twinning Highway 104, the Burnside connector and the Gateway Logistics Park. We have already started the preliminary work on the multi-trans corridor known locally as “the rail cut.”
Strategic Infrastructure Partnerships are another innovative way we are going to meet the needs of Nova Scotians – in this case, to tackle Nova Scotia’s multi-billion dollar infrastructure deficit.
Through these partnerships, we will be able to fast track construction of crucial infrastructure and protect taxpayer dollars.
After careful consideration, and with the advice of Partnerships BC, we are preparing to move forward with three projects.
Detailed businesses cases are being developed for new correctional facilities in Antigonish and Cumberland counties, the twinning of Highway 104, from Sutherlands River to the Canso Causeway, and for the trunk mobile radio system used by police, fire fighters and other first responders.
I have every confidence that these important projects built under Strategic Infrastructure Partnerships will come in on time and on budget.
My government will not stay stuck in the past, doing things a certain way simply because that’s the way they were always done.
We are prepared to act when we see an opportunity to better the lives of Nova Scotians. We’re willing to step into areas that we have avoided in the past.
That’s the reason I became involved in the debate about downtown Halifax development.
My goal has never been to inject the province in the business of municipalities. But neither will I shirk my responsibilities to the people of Nova Scotia.
Those who say that downtown development is solely a Halifax matter, and not a provincial concern, are simply wrong. That’s like saying the Stanfield International Airport only affects Enfield.
We cannot have a healthy provincial economy without a healthy Halifax – that’s a fact I have heard repeatedly from many of you in this room. And when businesses tell me they want to expand to Halifax – that they want to create jobs here and grow our economy, but can’t find adequate office space – it becomes a provincial issue. And I will not sit idly by.
With the passage of the Halifax Charter and Halifax By Design bills, we are giving the province’s largest region greater independence and the tools to adapt to their changing economic needs. These pieces of legislation will be effective guides to continued growth in the city that will respect Halifax’s proud history.
As I said at the outset, the economic conditions that have lead to global turmoil will not bypass our province. There will be challenges ahead. But, I am confident Nova Scotia will emerge stronger. Our budget will be balanced. Prudent investments will help keep people employed. Working Nova Scotians will build infrastructure in their communities that will provide benefits for many years.
Nova Scotia has a government with a track record of success. A government eager to innovate and to seize opportunities that will improve the lives of Nova Scotians.
Nova Scotia will make its way out of this economic turbulence, helped by a government that steps in when it must, and steps back when it should.
I have every confidence in the people of this province and our enthusiastic business community.
I wish to thank the chamber for this opportunity to speak to you this afternoon.
I’m happy to take a few questions.
Thank you.
Thank you for that kind introduction, Paul.
I want to begin by thanking the Metropolitan Halifax Chamber of Commerce for once again hosting the annual State of the Province address.
Changes in the worldwide economy are cause for concern for all of us. So, I’m grateful to have this opportunity to reassure Nova Scotians that our province is well positioned to weather the global economic uncertainty. And to let people know that my government is prepared to take decisive action to help them through what will be a difficult time.
So, what is the state of our province?
I’ve been talking to Nova Scotians from every walk of life, from every corner of the province. I’ve spoken to economists and fishermen, to bankers, retailers and construction workers. To stay at home moms and to students.
One thing is clear – people are concerned. They’re afraid their retirement savings won’t sustain them through their golden years. And they’re worried their job may become a casualty of the global economic down turn.
I share their concern.
We are already starting to see the effects of the global economic changes here in our province. Industries that are tied to the auto sector and the housing market have been the first to feel the impact of the slowdown. Over the next number of months its likely more people will be affected.
But, it’s not all doom and gloom. There are indications that Nova Scotia will fare better than many other regions.
I’m proud to tell you today that Nova Scotia’s unemployment rate remains the lowest in Atlantic Canada.
In fact, more Nova Scotians were working in October than ever before in our province’s history.
In the last three weeks, two IT companies have announced they are setting up shop and creating well paying jobs in our province – and there are more announcements to come.
The Atlantic Provinces Economic Council Financial outlook for 2009 forecasts a promising future for Nova Scotia. APEC highlighted Nova Scotia’s thriving defence, security, aerospace and life sciences sectors, as well as our economy's increased demand for labour and our low inflation rate.
The province’s Better Regulation Initiative is making it much easier for businesses to deal with government. And we are continuing to build on our competitive tax system in order to attract investment.
Consumer spending is up and tourism, which is so important to many part of Nova Scotia, held its own in 2008.
And economists from Canada’s chartered banks agree that our province is relatively well placed to ride out this economic storm.
The issue for Nova Scotians is how to convert these positive indicators into a prosperous future.
We believe the way to do that is by adhering to the strong fiscal management that has become our trademark.
Today, more than ever, we are reaping the benefits of the hard work that went into balancing the books and having a debt management plan.
That’s why its so important that we continue to grow the economy and balance the budget. That will mean tough choices. But I’ve made these choices before – when I came to government, we faced huge deficits. We were up to the challenge then – and I am up to the challenge now.
Others in the House of Assembly want to add to our budget pressure and push us towards a deficit. I believe that to be the wrong direction.
On December 19, Finance Minister Michael Baker will present an update of our province’s finances. And yes, the books are balanced. I don’t want to steal Minister Baker’s thunder . . . But it’s no secret that some of our revenues have taken a substantial hit lately. For example, natural gas prices are averaging well below what we had budgeted, with a corresponding impact on our revenues.
The easy solution would be to spend Nova Scotia into deficit.
That’s not the route we have taken. We have responded to these revenue challenges by going over the remaining budgets of every department with a fine-tooth comb.
Difficult decisions have been made. And more will be made in the months ahead. That’s the price of leadership.
At the same time, we must also make sure we are making the right choices on growing the economy.
I am prepared to take decisive action – to invest in one of the largest infrastructure programs Nova Scotia has ever seen – to build jobs and confidence from one end of the province to the other.
Our investments will put Nova Scotians to work, building and modernizing roads, public buildings and community infrastructure.
Our Finance Department estimates that for every dollar spent on infrastructure, $1.50 is generated throughout the economy. Money that pays mortgages, buys groceries and keeps communities vibrant.
Investing in infrastructure, with its immediate and lasting benefits, is a far better use of tax dollars than creating new programs with short-term benefits and long lasting price tags.
I have pressed the Prime Minister on the need to get the infrastructure funding moving more quickly. We have to remove the bottlenecks in the system. We also need Ottawa to be flexible on how provinces use infrastructure funding. But above all, we need our Members of Parliament to stop the partisan politics and get back to the business of governing.
We know that national infrastructure renewal programs work.
We have spent hundreds of millions of dollars on federal-provincial-municipal infrastructure agreements.
Projects funded this way have provided thousands of Nova Scotians with clean water.
They have provided Nova Scotians, young and old, with first class recreational facilities and more opportunities to live healthier, more active lives.
Just ask a soccer player what she thinks of the investment being made in the Cape Breton Health Recreation Complex. Ask a swimmer from Truro or a hockey player from Colchester County what the recently announced Regional Civic Centre will mean to him.
These are legacy projects that will serve our people and our communities for many years to come.
We have also undertaken critical infrastructure projects on our own.
We’re investing more than 19 million dollars to make high speed internet service available to every Nova Scotian by the end of next year.
We’re well on our way to fulfilling our promise to pave 2-thousand kilometres of roads – the equivalent of traveling from Halifax to Port Hawkesbury seven times. – That sounds like an average week for me. –
Over the next 10 years, we will invest 1.6 billion dollars in new long-term care facilities that will provide older Nova Scotians with the care and dignity they deserve.
We’re giving our youngest Nova Scotians the best possible start with new schools, like the one opened earlier this week in Musquodoboit.
And we are acting now to meet the skills needs of tomorrow with investments in our community college network.
These projects are valuable to communities. But I believe the value is increased in challenging times. The jobs associated with these projects have the power to transform a community.
I believe we need to have action now on the Atlantic Gateway.
I want to see work begin as soon as possible on twinning Highway 104, the Burnside connector and the Gateway Logistics Park. We have already started the preliminary work on the multi-trans corridor known locally as “the rail cut.”
Strategic Infrastructure Partnerships are another innovative way we are going to meet the needs of Nova Scotians – in this case, to tackle Nova Scotia’s multi-billion dollar infrastructure deficit.
Through these partnerships, we will be able to fast track construction of crucial infrastructure and protect taxpayer dollars.
After careful consideration, and with the advice of Partnerships BC, we are preparing to move forward with three projects.
Detailed businesses cases are being developed for new correctional facilities in Antigonish and Cumberland counties, the twinning of Highway 104, from Sutherlands River to the Canso Causeway, and for the trunk mobile radio system used by police, fire fighters and other first responders.
I have every confidence that these important projects built under Strategic Infrastructure Partnerships will come in on time and on budget.
My government will not stay stuck in the past, doing things a certain way simply because that’s the way they were always done.
We are prepared to act when we see an opportunity to better the lives of Nova Scotians. We’re willing to step into areas that we have avoided in the past.
That’s the reason I became involved in the debate about downtown Halifax development.
My goal has never been to inject the province in the business of municipalities. But neither will I shirk my responsibilities to the people of Nova Scotia.
Those who say that downtown development is solely a Halifax matter, and not a provincial concern, are simply wrong. That’s like saying the Stanfield International Airport only affects Enfield.
We cannot have a healthy provincial economy without a healthy Halifax – that’s a fact I have heard repeatedly from many of you in this room. And when businesses tell me they want to expand to Halifax – that they want to create jobs here and grow our economy, but can’t find adequate office space – it becomes a provincial issue. And I will not sit idly by.
With the passage of the Halifax Charter and Halifax By Design bills, we are giving the province’s largest region greater independence and the tools to adapt to their changing economic needs. These pieces of legislation will be effective guides to continued growth in the city that will respect Halifax’s proud history.
As I said at the outset, the economic conditions that have lead to global turmoil will not bypass our province. There will be challenges ahead. But, I am confident Nova Scotia will emerge stronger. Our budget will be balanced. Prudent investments will help keep people employed. Working Nova Scotians will build infrastructure in their communities that will provide benefits for many years.
Nova Scotia has a government with a track record of success. A government eager to innovate and to seize opportunities that will improve the lives of Nova Scotians.
Nova Scotia will make its way out of this economic turbulence, helped by a government that steps in when it must, and steps back when it should.
I have every confidence in the people of this province and our enthusiastic business community.
I wish to thank the chamber for this opportunity to speak to you this afternoon.
I’m happy to take a few questions.
Thank you.
