ECBC’s end is concerning given today’s economic climate

‘It makes more sense to fix the problems’

The end of Enterprise Cape Breton Corp. is the topic of the day and can withstand a little more commentary.

As the corporation’s first chief operating officer/chief executive officer, I felt more than a little nostalgia and considerable disappointment over the government’s action. It makes more sense to fix the problems, if any, than to scrap ECBC.

ECBC was born out of the Cape Breton Development Corp. (Devco), which in turn drew on the model of the federal regional economic expansion department.

After 22 years of operation, all of the Devco industrial development division’s program instruments, together with some expansion to include the Strait of Canso, were transferred to the new corporation, ECBC.

The timing of the decision to end ECBC is unfortunate, following Ray Ivany’s very worrisome description of the state of Nova Scotia’s economy.

In addition to the loss of ECBC’s “topping-up” features, the government scrapped the Atlantic Canada Opportunities Agency board of directors, eliminating still another citizen’s window on how well the government is working to improve Atlantic Canada’s economy.

In a column published on June 5, 2012, I questioned whether a full review of the ACOA approach should be undertaken. ECBC’s existence has been questioned and envied since its inception, as was Devco’s industrial division before that.

I frequently found myself defending the crown corporation vehicle when visiting ACOA offices outside of Cape Breton.

Before the March 29 announcement of the ACOA board’s cancellation, I had planned to recommend the appointment of one or more Cape Breton residents to that board. However, now one is obliged to conclude that federal emphasis on Atlantic Canadian economic development is diminishing.

That’s certainly not a confidence-builder, especially given Ivany’s prediction, paraphrased in a story by The Canadian Press, that: “Nova Scotia is doomed to endure an extended period of decline unless population and economic trends are reversed and suspicious attitudes about business are changed.”

The Cape Breton economy more than reflects the lagging economies of the rest of Atlantic Canada, except for some regions of Newfoundland.

In a April 28, 2012 article, under the heading “Truly two solitudes,” senior Globe and Mail reporter John Ibbitson wrote: “The Tories’ great good fortune is that the West and suburban Ontario, where they are strongest, are also the dynamic growth centres of the country. But Conservative success there leaves Atlantic Canada declining politically as well as economically and in terms of population. And, more dangerously, it isolates Quebec.”

As I stated in my June 5, 2012 piece, ACOA has been helpful in assisting business and community projects; but if Atlantic Canada is being left behind, isn’t it time to reexamine the federal government’s key policy and intervention instruments?

ACOA has not and will not measurably boost the region’s economy as only one actor in an attack on the entire region’s declining fortunes.

A couple of the many initiatives that could be effective are re-entry into the federal-provincial joint development agreement mechanism and the reintroduction of the federal economic development coordinator’s position.

A substantial amount of detailed policy and economic analysis for governments to build on is already in hand, and negate the inclination for more studies.

Rob Moore, the minister responsible for ACOA, raised several puzzling questions.

On a positive note, the reopening and enhancement of the Port Hawkesbury office is a positive move. Also, the commitment to continued employment for existing ECBC employees is important.

However, not so clear are the implications of transferring ECBC staff to public service status. In federal circles, departments are allocated human resources by person-years. Will new person-years be allocated to the Port Hawkesbury office, or are they to be found elsewhere in ACOA?

And while the minister’s commitment to maintaining ECBC’s budget is helpful, he proceeded to state that its flexibility and discretionary authority will be eliminated.

The reality is that much of ECBC’s budgetary planning cycle is based on historical performances. And the portion of the corporation’s budget allocated for mine site remediation is separate from financing for traditional project development.

In the days ahead, it will be useful for those interested in the changes to secure copies of the draft legislation to better understand the real implications.

The deals are done and time spent on protest is useless. But vigilance against unfairness is important.