NDP candidate pledges to close Business New Brunswick

Published Wednesday August 25th, 2010, by Shawn Berry, The Daily Gleaner, Page A5

Campaign | NDP says it would stop transferring money to private firms

A University of New Brunswick economist touted as a star candidate for the NDP is vowing to close Business New Brunswick and cut off the $200 million a year the department provides in incentives.

Tony Myatt, an economics professor at the University of New Brunswick who will run for the NDP in Fredericton-Silverwood, speaks with party Leader Roger Duguay on Tuesday. Myatt, the party's Finance critic, said he would do away with Business New Brunswick.

Tony Myatt, who will run for the New Democrats in the Fredericton-Silverwood riding, is the party's Finance critic. He said incidents such as the loan to Atcon show why government needs to get out of the business of subsidizing for-profit companies.

"We will close Business New Brunswick, ending the transfer of millions of dollars of public money to private companies that too often go bankrupt or refuse to pay the loans we the public have made them," Myatt said Tuesday.

But an industry group said such a move would be short-sighted given that jurisdictions across North America are using the incentives to help create jobs.

The NDP made a show of introducing Myatt because an opinion article written by Myatt last month has been cited by a number of Progressive Conservatives in the lead-up to the election.

But the economist, who in 2007 sought the Green Party of Canada nomination in the federal riding of Fredericton, said he's running for the NDP because he believes the Progressive Conservatives are proving no different than the Liberals.

"The Alward Conservatives are not putting forward an honest plan for our province to live within its means. Although they cite my writings in an attempt to position themselves as fiscally responsible, the Conservatives continue to make unaffordable election promises just like the Liberals and support the Liberals' unsustainable tax cuts. That's not good enough."

Myatt repeated pledges to hold the line on taxes, maintain front-line health and education services and reduce the MLA pension increases.

Myatt said the province is on track to be among the most indebted provinces in the country, which will lead to spending cuts.

"But the premier isn't talking about cuts. He is not telling us he plans severe cuts to health and education spending in order to pay for tax cuts."

Dominic Cardy, the NDP's provincial campaign director, said eliminating Business New Brunswick and focusing on education is a better recipe for long-term economic growth.

"You put the focus on the workers. You make sure the people who are going to take the jobs are the ones who get the investment. So then when a business comes in, the business is looking and they've got this great pool of people to choose from. That's what leads to higher jobs," Cardy said.

"The proof of the truth of our policy is the way Business New Brunswick has been run, with all of the Atcons and the dozens of smaller and larger failures over the years."

Cardy said Business New Brunswick's 135 employees would be moved into other departments or offered early retirement.

"We're not doubting the goodwill and hard work of the people who work there, we just think it's a project that's fundamentally flawed," Cardy said.

David Plante, New Brunswick representative of the Canadian Manufacturers and Exporters, said it's tough to talk about doing away with incentive programs when provinces and states across the continent are competing by offering tax breaks and incentives.

"The reality is incentives in the form of interest-free loans are a fact of life for North American jurisdictions. It would be unrealistic to just wholeheartedly eliminate these provisions," he said.

Plante said it's clear the province needs to address its fiscal situation. He said changes to taxation and regulation have farther-reaching impact than loans or grants.

"But it would be really naive to suggest that you can just eliminate them entirely," Plante said.