Dear premier Stephen McNeil and finance minister Diana Whalen,
I want to congratulate you on developing and presenting a difficult budget. As a former Commissioner of ONE Nova Scotia (aka the Ivany Commission), I know all too well the financial and demographic challenges of this province. Hard decisions need to be made and new directions taken. This is not an easy task, particularly for government.
I am writing to you from the perspective of my role on the Commission and in particular with regards to the creative economy. Our report did not focus on the creative economy, for a variety of reasons—partly omission, partly our fast-tracked timeline and lack of time for adequate discussion and agreement by Commissioners. Nevertheless, in our consultations throughout Nova Scotia, the people who came out to our meetings were often craftspeople, small creative business owners, engaged citizens who spoke strongly about our cultural sector. It is so much a part of who we are, we are often unable to define it. Growing up in Cape Breton, I can say that so many of my continued ties to the island are because of the culture, crafts and creativity of residents, despite the obstacles to success.
I strongly urge you to reconsider the reduction of the Film Tax Credit. My reasons are manyfold, some practical, some political, but overall in the interests of the future of this province.
I have no personal ties to this industry. While the tax credit is generous, it has built a strong film industry in Nova Scotia. It has spawned new businesses and given us a foothold in the global arena of film. The film industry is one of the few that is distributed across our rural and urban communities—allowing us to maximize our assets, and adding incredible value to the potential for our communities to make the most of their scenic attributes and historical settings.
Perhaps most importantly, this industry attracts and maintains young creative people who want to live here. We need this more than anything right now, as we are not going to move ahead and achieve new ways of doing things without our creative class. On a personal note, I do know at least five families who are deeply affected by this cut. They are valued members of our communities—they contribute more than many other people—because they are artists and care deeply about staying in Nova Scotia. But they will leave.
We have built up a solid reputation for excellent productions. From a financial perspective, now that the US dollar has strengthened, Nova Scotia is in an even better position to attract international productions. This is the type of industry we need to foster, increase our exports and continue to strengthen the value chain. It is one of the few industries where we have successfully built supporting companies and businesses around the primary industry. The skill set will be much needed as we rebrand Nova Scotia, promote our province and businesses, increase tourism and begin a new narrative. Without our storytellers, and those who work in film and multimedia, we will not be able to do this.
As you know, I care deeply about the future of Nova Scotia. I feel personally responsible when a business closes, a young family leaves, a community struggles to survive. Since the Ivany Commission officially ended last April, I have given over 40 talks on the Commission process and report. I do this on a completely volunteer basis, because I think it is so important that we communicate well to our citizens and that we inspire action at the local level. I have never used my position on the Commission to advocate for a particular economic project, business or policy decision.
As you may recall, in the early days of the NDP they made the decision to cut funding to the Yarmouth Ferry. This had significant economic impacts across the Maritimes, has ended up costing taxpayers much more than had the status quo been maintained and has arguably been a difficult file for your government. This decision to cut the film tax credit will likely be the equivalent of the cutting of the Yarmouth Ferry, prematurely, before we fully understand the impacts. Before we fully understand and have quantified the benefits.
As we recommend in the Now or Never Report (Transformational Change V) I urge you to consult with the industry, the people working in it, and come up with a reasonable option for moving forward. I know that it is difficult to back down on a budget decision. From my understanding, the industry is open to constructive consultation and discussing a path forward.
Again, I urge you to rethink this decision and adequately map out the potential options with the industry as well as fully understanding the impact of this decision. It will impact thousands of Nova Scotians and our communities, at a time when more than ever we need young, creative people.
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This article appears in Apr 9-15, 2015.
Thank you, Susanna.
I like what I just read Susan,last night on face book a friend of mine posted Steven McNeil with an election speech saying a lot of what you just said and I replied. Was there a mistake somewhere or was that speech a dam lie!
This morning Diana Whalen said:
“no other industry, not forestry, fishing, manufacturing – nothing else is subsidized the way film is.”
Those are all resource driven economies- the old way of thinking. We can’t sell off our geological and oceanic wealth anymore.
Film is part of the creative idea economy- if anything, more things in that field should get stimulus-
precisely BECAUSE they can GO or BE anywhere.
the digital tax credit is, wisely, untouched-
so INTERACTIVE storytelling ideas are more important than LINEAR storytelling? They totally cross pollinate and support one another!
there it is right here posed below,how can you stand up in an election speech and talk like that then cut it off,the film business.
I have stood by for the last fifty years and watched Nova Scotia communities lose their tools to work with,their natural resources,fishing,farming and forestry to a hand full of business men in business with politicitains talking bullshit about helping the communities and at the same time cutting our throats.
I think that there was a lot of Gov money in most industries,”aquaculture” for instance,they haven’t cut that off yet.Most every fishing,farming and forestry that is still in business has been given a lot of gov money to stay in business and keep everyone else out!
It is so important that the government of this province reverse this decision. If we’re holding our own as far as the economy is concerned, it is probably because of the immense creative talents in Nova Scotia. If the government wants to take away the incentive for people who want to create, and incidentally, grow the economy, then I imagine more talented people will just leave. This is such a shortsighted decision by our government that I’m surprised more isn’t being said. A good place to start is with big industry that doesn’t even come close to creating new jobs and growing the provincial economy. Maybe its time to shift some of those tax breaks to where it would do the most good…our youth, small business and the ‘creative class.’
Such a fine piece, Susannah. Thank you!
Every arguement aside…
Providing funding – especially public money – to businesses that do not employ Nova Scotians (people do not pay tax, live or play in Nova Scotia) is bad business.
There is a lot wrong with this article but I take particular exception to the statement that the credit has built a strong film industry. This is an industry that is apparently capable and willing to pack and head for greener pastures just soon as their taxpayer funded subsidizes dry up. That’s not a strong industry. That’s just an elaborate make work project.
It comes down to what Tim Bousquet wrote in the Halifax Examiner today the gist of which might be summed up that governments just can’t serve the people anymore because they are serving corporations and the rich. One writer here mentions aquaculture. We know what Cooke got from his pal, Darrell Dexter while I think it was over a hundred organizations signed a letter against open pen fish farming because it threatens a people’s industry–traditional fishing. And still it goes on. Convergys got wage subsidies and left after five years in Cornwallis first and soon after at their other plant. At least the individuals who benefit from the film tax credit stay here and it grows as a result of their skills. Bousquet’s other message was solidarity: that we need to support any group of Nova Scotians who are being divided and conquered by this bottom line way of thinking that, funnily enough, doesn’t affect the upper echelons of society. Why isn’t the McNeil government touching the ludicrous pension and cutting back wages. Do they really think they are worth over a hundred thousand dollars and more? It’s nothing but greedy people who just want to take the last crumbs (as Bousquet wrote) from the people.
Settler Ally: How can you be against subsidies to rich corporations while supporting the film tax credit? You do realize that the film credit is a payout to corporations – often rich ones. Let’s just agree to end corporate welfare.
BTW – you are going to have a hard time in life if you take advice from people like Tim Bousquet.
This whole “no more corporate welfare” talk is the silliest bit of seabilly naivete to ever appear in the worlds of anonymous online comments and rich people chortling.
The problems of the day are largely economic in nature and the solutions certainly so.
Nova Scotia spends about 2% of its annual budget toward the notion of economic development. It’s always been true and it’s true of every other government at every level everywhere in the world. It’s as true in Fujain province in China as it is in Custer county Nebraska and it’s certainly true all across Canada.
Governments invest to compete for business in the world. There is no option of not trying.
The idea is that we can pool a tiny bit of our wealth and invest it together more effectively and efficiently on some big common goals (like attracting investment and jobs) than if we all just did it willy nilly ourselves.
Are you with me so far?
We can and should have never-ending discussions about where this economic development should be done and what tools and measures we use to decide among competing alternative investments. Most of all we should be very wary of HOW the decisions are made and by whom.
Ultimately, all the talk of corporate welfare and the various threads of numbers and rates are a distraction. Behind the scenes in government this fight is really a death match struggle to determine this ‘how’ between the old way of doing things and the new.
Look at the battle lines. It’s a struggle between the old pick-a-winner style of economic development where unnnamed, unfirable, unaccountable bureaucrats wield power, influence and intrigue to make huge risky bets on big box business men while leaving the rest of our ideas and innovators discouraged and divided and a new risk-diversified, citizen empowered, process of reward investment. The new way of economic development puts in place systems and practices with verifiable checks and balances that support sectors, industries and ideas that are uniquely positioned such that anyone with a great business plan and ambition can go out and be an economic development army of one. If they succeed – if they reach our stated goals and bring home the jobs and investment we need and they can audit and verify the result, only then they get our support, a tiny slice of the Economic Development pie which they can use to invest further in their business, in their ideas and in Nova Scotia… improving Nova Scotia… no risk and no cost to the taxpayers.
Obviously, I support the new way. It’s a matter of urgent interest to all Nova Scotians. Who would support the old way of doing things? The old way that got us… well, list the failures and foibles from the steel mills of Cape Breton to the criminal Economic Development Agents of Southwest Nova. They’re standing up to be counted this week: the powerful bureaucrats who we won’t need with the new entrepreneurial systems, the men who have power through riches, intrigue and office who’ve accumulated all they have by working the levers of the old system, and those, like the “no more corporate welfare” folks, whose only concern about the world is that it stay in one piece during his own lifetime. He is invariably successful and regards his good fortune not as a challenge to get close to the real problems of the age, but as proof of the correctness of everything he does. Nothing to him is less important than the shape of things to come or the needs of the next generation.