In the Eye of the Storm

Speech to the Saint John Region Chamber of Commerce
Saint John, New Brunswick
By Peter Watson, Chair of the National Energy Board
Tuesday, November 25, 2014

• The topic I will be speaking about today is:
  • “IN THE EYE OF THE STORM” - Pipelines and the National Energy Board”
• Over the past few years, the National Energy Board has found itself in unfamiliar territory...
  • on the front page of newspapers across Canada.
• And the demands on us seem to hit all of the major energy issues in twenty-first century Canada;
  • to lead the climate change debate,
  • to increase market access for Canada’s energy,
  • to allow more people to participate in our process,
  • to cut red tape,
  • to go faster,
  • to go slower,
  • to ensure that pipelines never fail,
  • and to answer to all the voices in the debate and to remain neutral through it all.
• It is a unique place for the National Energy Board, because for decades, Canada’s national energy regulator had a very low profile.
  • The NEB quietly processed applications. The public and media paid little attention.
• But in recent years, things changed.
• In 2008, the NEB had a total of 80 calls from the media.
  • Last year, the NEB had over 600 media calls.
• In 2006, the NEB had 8 interveners at a TransMountain pipeline hearing for a project that went through a National Park.
  • Today, there are 400 interveners at the NEB’s hearing into the Kinder Morgan TransMountain pipeline project.
• For some, the game changer was the 2010 BP Horizon blowout where millions of barrels of oil spilled into the Gulf of Mexico.
  • For others, it was the Enbridge pipeline rupture in Kalamazoo, Michigan later that year.
• And when the Northern Gateway Joint Review Panel completed its work in 2013, it had reviewed feedback from 1,450 participants and received 9,500 letters of comment.
• And very soon when the Energy East pipeline hearing begins, we estimate that over 5,000 people will be participating in the process.
• This review could very well be the biggest hearing in the history of the National Energy Board.
• It will examine the longest proposed pipeline project the Board has ever reviewed.

• The energy debate in Canada is complicated; it provokes strong and often polarized opinions.
• And the NEB often finds itself as a central figure in the stories spun out into the public arena.
• So today, I want to examine three questions, and discuss how the NEB came to be in the ‘eye of the storm.’
• The first question is - what is the NEB?  What is its mandate?
• Second, who is the NEB?  Who are the faces behind the institution? And more importantly, what is their character?
• And third, why does the NEB find itself in the eye of the storm and what are we doing about this?
• I will then conclude by discussing pipeline safety.

• But first, I wanted to share with you, a little about me.
• I was born and raised in Alberta, and went to University in Alberta.
• Prior to joining the NEB, I spent thirty one years in the Alberta public service.
  • That work included time as Deputy Minister of the Environment, Deputy Minister of Energy, and Deputy Minister of Executive Council and head of the Alberta Public Service.
• What I have found in my career to date is that the public rhetoric about energy vs. the environment is too often polarized - framed as right or wrong, with winners and losers.
  • In my experience it is not that simple - it is not an EITHER/OR discussion, but rather a BOTH/AND discussion.
• And that is perhaps the most fascinating part of Canada’s National Energy Board - it is one of the few institutions in this country that can work towards balancing these disparate views on specific projects.
• As every project we examine is reviewed on a number of criteria - including the environmental, the economic and the social aspects of the proposal.

• So let me tell you about the National Energy Board.
• The NEB is a quasi-judicial, independent body created by Parliament in 1959 to regulate international and interprovincial aspects of the oil, gas and electricity industries.
• We regulate pipelines, energy development and trade in the Canadian public interest.
• We are accountable to Canadians through Parliament - and we function at arm’s-length from Government.
• Doesn’t sound like a place you’d expect to be in the ‘eye of the storm’...does it?
• Today, the NEB regulates about 73,000 km of international and interprovincial pipelines and about 1,400 km of international power lines.
• Those pipelines ship about 134 billion dollars’ worth of oil and natural gas every year and the power lines transmit about 2.7 billion dollars’ worth of electricity in and out of Canada annually.

• So who is the NEB?  Who are these people that work in the ‘eye of the storm’? What is their character?
• The National Energy Board has a huge technical resource of about 450 staff.
  • It includes engineers, inspectors, engagement staff, and environmental specialists, among many others.
• The NEB has 13 permanent and temporary Board Members that are appointed by the federal government.
• From BC to Nova Scotia to the North West Territories - and many points in between, we have a highly accomplished Board.
• They range from biologists to farmers to engineers to life-long public servants to lawyers.

• So what is the overall character of the staff and Board of the NEB?
• First, they care. They feel personally responsible for helping to ensure the safety of energy infrastructure within communities, on First Nations lands, as well as on private lands.
• Their work in the community starts even before an application for a pipeline is made,  and they oversee safety for the full lifecycle of a pipeline - from concept, to its construction and operation, and then to its eventual safe abandonment.
• They also have tremendous expertise. Many staff at the NEB would be among the most knowledgeable professionals in the pipeline and regulatory business. 
• They have a passion for public service and a commitment to fairness, taking responsibility and doing the right thing.
• They also have the dedication and capacity to deliver.
• Last year, they carried out almost 300 compliance actions - ranging from inspections to audits to emergency exercises - and every day they work diligently to strengthen all aspects of our pipeline oversight.
• When pipeline companies do not do what they are supposed to - the NEB takes action.
• We have been given powerful tools designed to get a company back on track and discourage them from making the same mistakes again.  This includes,
  • issuing fines,
  • lowering the amount of product they are allowed to move through their pipelines,
  • or shutting them down completely.
• No matter what action we take, the goals are always the same - keep pipelines safe and protect the environment.

• So, why does the NEB find itself in the eye of the storm, and what are we doing about it?

• First, energy and environmental issues are more interconnected than ever before.
• Climate change and the debate around forms of energy that power our economy are global and systemic issues that people are passionate about.
• The big question being, why doesn’t the NEB take into account greenhouse gas emissions from the oil sands when it holds hearings for pipelines that propose to carry oil sands crude?
• Let me be clear - we at the NEB care about climate change.
• When we carry out pipeline reviews, we examine the greenhouse gas emissions that would emit directly from the construction and operation of that pipeline.
  • But as you would expect, those emissions are small.
• Let me also be clear that the NEB does NOT regulate the greenhouse gas emissions that occur when the crude oil is being extracted from the oil sands upstream of the pipeline,
  • that authority rests with provincial regulators.
• And we do NOT regulate the emissions that would occur when the oil in an NEB regulated pipeline is burned to power a manufacturing plant or a car,
  • that authority also rests with other regulators.
• At the NEB, we do our job. And Parliament has clearly mandated what our job is.
• Other governments regulate greenhouse gas emissions both upstream and downstream of the pipeline.

• Second. People are also questioning the independence of the NEB and whether they can trust us.
• In fact, during my short time at the Board, I have been accused of being in the back pocket of both industry and the federal government.
• So let’s deal with industry first.
• The National Energy Board’s budget is cost-recovered by a levy imposed on industry, the levy being akin to a tax.
• However, the public perception of cost recovery can be that we are obligated to rubber stamp every pipeline project that gets proposed. That is not true.
• You should think of the levy like the concept of “polluter pays” - or in other words - those who create the burden, or the need for oversight, pay the freight.
• Our Board Members and staff are bound by strict codes of conduct and conflict of interest requirements, which were created to ensure that they do not have any bias on matters before the NEB.
• We do not feel indebted or obligated to industry in any way.
• I also want people to know that we have denied applications in the past, although admittedly not very frequently.
• In some cases, companies withdraw an application if NEB testing uncovers flaws that are not fixable.
• But more often, once an application has been tested by the NEB - and the company incorporates the changes committed to during the assessment process - it is likely that the project can be constructed and operated safely.
• Every project undergoes a rigorous, science-based testing that is among the highest - if not the highest - standard for assessment in the world.
• And then - not only is an application for a pipeline subject to rigorous testing by the NEB staff, members and participants, they are always subject to further conditions attached to the approval.
• Those conditions often cost the pipeline company millions of dollars to implement, and quite frankly, are another example of the independence of the NEB from industry.
• Most importantly, when a project is approved by the NEB, we are very confident that it can be built and operated safely.
• And if we see evidence that the people operating the pipeline aren’t operating it safely - or if the project’s conditions are not being met - we will put a stop to the pipeline.
• And we have done that.

• The NEB is also independent from government in our regulatory decision-making role. We report to Parliament - the elected representatives of Canadians.
• The only way the Government can tell us what to do is to get changes to our Act passed through Parliament or to make orders to us through the ways set out in the NEB Act (which has not happened in recent history).
• Otherwise, if any government in Canada - provincial, federal or municipal - wants to tell us something about a project, they have to apply to participate in a hearing, just like everyone else, and provide us with the evidence and arguments that they feel are relevant.

• Now, some have suggested that recent legislative changes enacted by Parliament regarding timelines for our review process, have struck at the heart of our independence and put us under the thumb of the Minister.
• We are now subject to a 15 month legislated time period, during which we need to;
  • run a fair process (whether written or oral, or both),
  • analyze a highly technical application,
  • undertake a comprehensive environmental assessment,
  • prepare reasons,
  • and then have them translated into both official languages.
• And in those 15 months, we need to hear from people who are directly affected by the specific proposed project, as well as from those who have relevant information and expertise related to that project.
• It sounds daunting, doesn’t it? But I’m here to tell you that we believe this is doable.
• Not only do we believe it is doable from a process perspective, it also aligns better with Canada’s economic cycles.
  • The assessment of the feasibility of a pipeline cannot be held up for years - the market will not wait, and opportunities are lost when decisions cannot be made in a timely manner.
  • This is not good for Canada or for Canadians.
• Now, having said that, you need to know that I will not hesitate to seek an extension to a hearing beyond the 15 months if we need to get additional information to make our decision - or if we believe we need more time for intervenors to be fairly and properly heard.
  • That is our obligation and duty to Parliament and to Canadians.
• Each independent NEB hearing panel has the tough job of deciding what is relevant to the application before them.
• They also have the tough job of determining;
  • how best to receive that information,
  • how to test it's credibility,
  • and how much weight it should receive in their deliberations.
• They do this all - while being mindful of the many participants’ interests and desires, and Parliament’s intent regarding timelines.
• Meeting the time limit is achievable, and has been achieved in the past. However, it requires rigour in our process and in our actions - we need to be efficient and fair.
• If a panel does not require oral cross examination to test the quality of evidence, then they make the call not to use precious time for something that is not needed.
• Like any tribunal, the NEB has lots of experience with witnesses and lawyers grandstanding, rambling, and wasting time in oral public hearings (that applies to both applicants and intervenors).
  • That is not fair to anyone and it does not add to the quality of the analysis and recommendations.
• So, we have a difficult job to do...managing all the demands in our hearing processes...many of them relevant and focused - and some of them not.
• The legislation outlining the length of our reviews clearly shows the intent of Parliament - and we are comfortable with that.
• And with that intent in mind, we will move forward unfettered....and ensure our decisions are fair and reasonable.
• As I said, I will not hesitate to seek an extension...but only when the evidence supports it and it is required.
• we will not let our processes become a popularity contest.

• Another one of the issues we face is the concept of public consultation
• Jeffrey Simpson recently wrote a very good column asking ‘what does it mean to be consulted?’
• He then outlined the exhaustive multi-year process that the Joint Panel on the Northern Gateway pipeline went through: all of the communities they visited, all of the days of hearings they held, and all of the letters they received.
• And at the end of his column he wrote, “...we seem to have reached a point where even the most exhaustive examination by an apparently expert panel does not provide for enough consultation...if this kind of process does not cut it, has anyone got a better idea?”
• For us at the NEB - it is an important question.
• Because many of my 450 colleagues at the NEB literally lived and breathed the Northern Gateway hearing for years.
• In my short time at the Board, I have asked many people that were part of that hearing if they have a better idea on how we can consult Canadians.
• The conclusion I have come to does not necessarily involve the hearing process or the hearing room.
• Because the quasi-judicial nature of a hearing is probably part of the problem when it comes to the NEB building a better relationship with Canadians...as hearings are rule-bound, impersonal and just downright intimidating.
• Not to mention that many people who want to say something to us will not be considered directly affected and so won’t be able to participate in a hearing.

• In order for the Board to effectively serve the Canadian public, people need to have confidence in the NEB and believe in the Board’s ability to enforce rules and regulations that are in place to protect Canadians and the environment.
• And with all the attention on the NEB because of its role in energy development, there has never been a better time to tell our story...and to listen to Canadians outside of the hearing process.
• So I am very pleased to announce that the National Energy Board will be launching a cross-Canada engagement initiative early in the New Year.
• At that time, Members of the NEB’s Board, staff, and myself will visit every province in the country, as well as northern Canada, where will listen to Canadians on how the NEB can improve its pipeline safety and environmental protection program.
• We will meet with municipal leaders, Aboriginal organizations, environmental groups, first responders, academics, and other people and groups that want to meet us.
• In addition to meeting with Canadians from coast to coast to coast, we will also include an online discussion forum, open to anyone who wishes to share their views on pipeline safety and environmental protection.
• That discussion forum is live online right now, so Canadians can go to the NEB’s website (neb-one.gc.ca), follow the links, and then tell us what you think about NEB-regulated pipelines.
• When the Board’s cross-country visits conclude in late spring 2015, the NEB will host a pipeline safety technical conference. A report on this initiative and the technical conference will be released sometime in early 2016.

• So you can pick whatever word you want - consult, engage, listen - what’s important is we have decided to go out and meet Canadians on their terms, in their communities.
• We will go out and listen to what Canadians think we should do about pipeline safety and protecting the environment - and whatever else they want to tell us.
• Our goal is to engage with a broad range of interested Canadians through a variety of means.
• And I - as the NEB’s Chairman - need to spend more time sitting across the table from Canadians and community leaders, listening to their concerns about the pipelines we regulate.
• And in particular, we must spend more time engaging Aboriginal communities.
• Hopefully the outcome of this will be better relationships, and improved trust and confidence in the NEB.
• We won’t be able to address every issue but, hopefully, people will better understand our role and mandate, and what we are doing to help ensure that the pipelines the NEB regulates are constructed and operated safely.

• The final issue that I want to discuss is pipeline safety.
• And rest assured that at the NEB, we will never take pipeline safety for granted.
• As I’ve mentioned, the NEB’s inspectors and operations staff carried out almost 300 compliance actions last year - ranging from inspections to audits to emergency exercises.
• And every day they work diligently to strengthen all aspects of our pipeline oversight through amendments to regulations requiring more from companies, rigourous testing of pipeline applications, and the imposition of strict conditions.
• And that oversight has led to some interesting results.
• Every day about 3 million barrels of oil are transported in NEB regulated pipelines in Canada. Of all that oil, only about 300 barrels leaked from NEB regulated pipelines in 2013 - and that was from 9 different incidents.
• Now, some might say that 300 barrels is an extremely low number...but at the NEB we still think it is too high - we never rest easy on safety and environmental protection.
• We all know that the industry has had some very catastrophic incidents in the past....and if we are complacent - then the conditions will surface again for another catastrophic incident to occur.
• Our objective must be to continually strive for zero incidents.
• In Canada today, the public must have confidence that pipelines will be safe.
• So our plan is to continue to raise our performance on safety oversight.
• We will do that through improving what I call ‘safety culture.’ Let me explain what that means.

• Safety culture means managing every aspect of business that could affect safety and the environment - from hiring and budgets - to what a company decides its business priorities should be.
• When a company has a strong safety culture, everyone - no matter what job they do - is empowered to make important decisions on safety. Those actions are not just supported - but are rewarded by leaders.
• I’ve heard the word culture defined as “the way things work around here” - so if you think of it that way - the NEB expects pipeline companies to ensure the ways things work around here is an obsessive focus on putting safety first in everything they do.
• And when we look in the mirror at the NEB, we will put an obsessive focus on improving our quality systems for regulatory oversight.
  • So that we will never take the role we play in supporting safety - for granted.
• We will work with companies - and alongside communities - and share the same goal of making Canada’s pipelines the very safest they can be.

• In closing. I have to tell you that the view from the ‘eye of the storm’ is unique.
• While controversy and change swirl around us, the centre of the storm has to remain calm.
• For the NEB to remain relevant we need to be composed and absolutely committed to listening to Canadians and to helping ensure that the pipelines we regulate are safe and can be made even safer.
• You have my personal commitment that we will do both. Thank you.

Source: http://www.neb-one.gc.ca/bts/nws/spch/2014/nystrmsntjhnnb/index-eng.html

2014-2015 Federal Budget

February 11, 2014

The federal government’s 2014-2015 federal budget calls for a significant narrowing in the budget deficit to $2.9 billion in fiscal 2014-15 from the prior year’s shortfall of $16.6 billion. Ottawa then looks for the budget to get back to a surplus in 2015-16, with a $6.4 billion surplus.

The latest forecast projects annual program spending growth of roughly 1.9% in 2013-14, -0.4% in 2014-15 and 3.7% in 2015-16 (source: Canadian Chamber of Commerce). Most of the savings realized over the forecast horizon are a result of managing compensation costs and by moving National Defence funding for major capital procurements to future years.

The Saint John Board of Trade has long advocated for narrowing the skills gap through strategic investment. The Canada Student Loans Program is being expanded to provide apprentices registered in Red Seal trades with interest-free loans of up to $4,000 per period of technical training. Additionally, the government will take steps to ensure that apprentices are aware of the existing financial supports available to them while they are on technical training through the Employment Insurance (EI) program.

Further to narrowing the skills gap, the government will improve the Youth Employment Strategy to align it with the evolving realities of the job market and to ensure federal investments in youth employment provide young Canadians with real-life work experience in high demand fields—science, technology, engineering, mathematics and the skilled trades. $40 million will go towards supporting 3,000 full-time internships for post-secondary graduates for 2014–15 and 2015–16. $15 million will be reallocated annually to support up to 1,000 internships in small- and medium-sized enterprises.

One of the Saint John Board of Trade’s top priorities received direct mention as the budget will provide $28 million over two years to the National Energy Board to review project applications, including TransCanada Pipeline’s Energy East Project, within legislated timelines to provide timeline certainty. This funding will be fully cost-recovered from industry.

The Port of Saint John could see some assistance through the budget which provides $40 million over two years to accelerate repair and maintenance work at small craft harbours across Canada and $33 million over two years to support the divestiture of regional ports to local interests and the continued operation and maintenance of federally owned ports. Furthermore the West-side Port Saint John infrastructure project could receive funding from the new version of the Building Canada Fund.

Building Canada Fund Highlights

Starting in 2014–15, the $53-billion Building Canada plan will provide:

• $21.8 billion over 10 years through the Gas Tax Fund, including an additional $1.8 billion in support over 10 years through the indexation of payments at 2% per year.
• $10.4 billion over 10 years under the incremental Goods and Services Tax Rebate for Municipalities.
• $14 billion over 10 years for a new Building Canada Fund to support major economic projects that have a national, regional and local significance. The Government continues to consult with the Federation of Canadian Municipalities and other stakeholders to finalize the parameters of the new Building Canada Fund and is committed to launching the new Fund by March 31, 2014, according to the EAP.
• $1.25 billion over five years will be provide for a renewed P3 Canada Fund to continue supporting innovative ways to build infrastructure projects through public-private partnerships (P3s).
• $6 billion in federal support to provinces, territories and municipalities under current infrastructure programs in 2014–15 and beyond.
• $155 million over 10 years for First Nations on-reserve infrastructure from the new Building Canada Fund, in addition to allocations from the Gas Tax Fund.

On Saturday, November 2, 2013, the Telegraph-Journal ran a Commentary of the Hon. Craig Leonard, Minister of  Energy and Mines' speech delivered before the Saint John Board of Trade on Wednesday, October 30, 2013. Read the Commentary here.

On Wednesday, October 30, 2013, Hon. Craig Leonard, Minister of Energy and Mines spoke to Saint John Board of Trade Members and other business and community leaders about New Brunswick’s oil and natural gas sector. He shared his thoughts on the benefit to our region, including game-changing initiatives such as Energy East. To read the full text of Minister Leonard's speech click here.

Energy East Pipeline Projected to Create Thousands of jobs for NB!

An economic impact report developed by Deloitte & Touche LLP indicated the development of the west-east pipeline will create 868 NB jobs (direct, indirect & induced) plus another 2,866 NB jobs over the construction phase.
"We always knew this was a game changer for the Saint John region... we now have the numbers to prove it." David Duplisea, Executive Director, Saint John Board of Trade.
> news release    > backgrounder     > full Deloitte report

Endorsement of a West-East Pipeline

As Canada seeks to forge its own strength as a global leader in energy independence it is important that we look to place added prominence on those strategies that add value to separate regions of our nation. Alberta ha an existing problem, with the inability to get much of their crude effectively to market and New Brunswick struggles with high unemployment.

Alberta has struggled to gain support from other jurisdictions that have sought to refine their crude and bring gasoline to market. Other Canadian regions have dismissed projects and there is much documentation that the Keystone XL project will face long delays if it is ever constructed.

New Brunswick on the other hand has strongly supported a West-East Pipeline that would bring Alberta crude to the Irving Oil refinery in Saint John. The construction phase of the project would generate thousands of much needed jobs and the finished project would sustain hundreds more. As a province that receives equalization payments it is important that New Brunswick be afforded the opportunity to play a key role in this national energy strategy.

The federal cabinet has identified the West-East pipeline as an important piece of infrastructure to enhance Canada’s energy security and our ability to reach markets in Europe, which seeks to reduce their dependence on Russian oil, and Asia, which has a growing energy demand.

To help make that happen, Saint John offers two significant pieces of existing infrastructure: the Irving Oil refinery, Canada’s largest; and, Port Saint John, Eastern Canada’s largest port. Given the strength of these existing assets and their already strong relationship, Saint John is ideally placed to refine Alberta Crude.

Saint John is an integral part of what has become a national conversation about the development of a west-east pipeline from Alberta’s oil sands to Saint John’s Irving Oil refinery, Port Saint John and the export markets each can reach. Irving Oil has a strong track record as the first Canadian oil company to produce low-sulphur gasoline and diesel and the first oil company to receive the U.S. Environmental Protection Agency’s Clean Air Excellence Award.

Both organizations are proven to be able to handle the demands of this pipeline. Crude equal to that of Alberta Crude is already being imported to the Irving refinery and exported through the deep water port in Saint John. Our city is ready to assist the province of Alberta in getting their crude to market but we need the support of a national energy strategy. This project is too important to two regions to not have the full support of the nation and our federal government.

The Saint John Board of Trade has endorsed this project with the standards expected of any major industrial project, that it will meet community expectations around employment, investment and environmental impact. We are confident that all stakeholders from Alberta to New Brunswick will be engaged in an open dialogue that sees this national energy project come to fruition.

Recommendations

That the federal government:

1. Support the progress of a West-East Pipeline by publically supporting investing companies, the Province of Alberta and the Province of New Brunswick. The government should also seek to support groups such as environmental regulators and First Nations organizations to ensure an open and transparent National Policy.
2. Make Canadians aware of the energy independence and cost savings of getting Alberta crude to market and the additional the job creation and cost savings resulting from refining the crude in New Brunswick.

Submitted by… Saint John Board of Trade

News Release

Saint John Board of Trade Advocates for Store Owner Flexibility on Sunday Shopping Hours

September 16th, 2013

SAINT JOHN, NB The Saint John Board of Trade today announced the findings of its online membership survey regarding Sunday Shopping Hours. When asked “In some jurisdictions store owners can choose their own hours of operation on Sundays. Would you support a similar initiative in Saint John that would allow store owners the flexibility to choose their own hours on Sundays?” members overwhelmingly supported open Sunday shopping hours with 85.1% saying yes, while only 13.6% said no and 1.3% were undecided. This overwhelming support will lead the Saint John Board of Trade to advocate for its members by asking Saint John Common Council to amend the Sunday Shopping by-law to allow for store owners to choose their own hours.

With feedback from some members advocating for only afternoon hours on Sunday, the Saint John Board of Trade asked a follow up question but the tone remained the same, members want full flexibility. When asked, “Would you support a stipulation that only allows stores to open after noon with the hours of their choosing or should store owners be able to open any hours of their choosing on Sundays?” only 13.2% said that Sunday shopping should be restricted to the afternoon while 84.3% want full flexibility including the morning.

“Sunday Shopping hours have been a much debated issue in our community over the past few months. This is why we felt strongly that we need to consult our members properly before taking a position on this issue. Membership consultation is a staple of the Saint John Board of Trade and it has been a longstanding policy to only produce positions with adequate membership consultation. We feel strongly that we have reached out to our membership in the best manner (with 228 of our 543 companies responding) and we are pleased to advocate for their opinion” stated David Duplisea, Executive Director of the Saint John Board of Trade.

The Saint John Board of Trade will present its findings to Saint John Common Council on Monday September 16^th at 6:00pm. Full Survey results will be posted on the Saint John Board of Trade website on Tuesday September 17^th.

The Saint John Board of Trade is a nationally accredited business organization dedicated to fostering an economic climate that enhances growth, prosperity, and an improved quality of life in the community.  With more than 1,000 members, representing 600 small, medium, and large businesses and organizations and therefore, the interests of more than 30,000 citizens, the Board is a dynamic advocate and the principal voice for the business community of Greater Saint John.  It offers a variety of programs, activities, services, and networking opportunities designed to enhance the business prospects of members and the overall business climate of the area.

For more information contact:

Patrick Beamish

(506) 609-1119 

pbeamish@sjboardoftrade.com

To view the September 16, 2013 presentation to Saint John Common Council, click here.

The New Brunswick Government released their 2013- 2014 budget yesterday afternoon and your Saint John Board of Trade has provided feedback to several media outlets. We are very concerned that this budget continues to lead New Brunswick down a path where we are living beyond our means.

Members of the Saint John Board of Trade understand that we are living in tough economic times and sacrifices need to be made. Businesses everywhere are cutting expenses to ensure the long term viability of their company’s. Any of our 640 members would look at this budget and realize that we have a spending problem. This budget looks to reduce our deficit by increasing revenues rather than decreasing expenditures.

The Saint John Board of Trade’s pre-budget submission called on this government to make the tough decisions necessary to eliminate the deficit. We understood that this would result in increased revenue generation though taxes and fees. The corporate tax increase in this budget is within reason and keeps us competitive with neigbouring provinces. However, the increases in income taxes are a further burden on our already struggling small businesses as New Brunswicker’s will have less disposable income to support local entrepreneurs. This income tax increase will undoubtedly slow down our economic recovery.

Our position is that the budget should be balanced though tough spending cuts not adding revenue. This budget does not invest wisely, where the return on our dollar is more urgently required. As an example there are no structural changes to our health care system, which continues to cost more than we can afford. The budget does little to rationalize services and it makes it more difficult to attract physicians to our province. On the other hand our post secondary education system, where 90% of research and development in our province happens, is being asked to do more with less.

Our province needs to make tough economic decisions with how we spend our money and this budget fails to do so. The Saint John Board of Trade would be able to support the revenue increases if it meant that expenses would be decreasing at a higher level. However we cannot support a budget that asks New Brunswickers to pay more for services we cannot afford.

Larry Hachey

Chair, Saint John Board of Trade

The 2013 Pre-Budget Submission can be viewed here.

News Release

Saint John Board of Trade Endorses

Continued Shale Gas Exploration

February 7, 2013

SAINT JOHN, NB The Saint John Board of Trade believes the Province of New Brunswick needs to explore options regarding the sustainable development of our natural resources. We believe these sectors can and should sustain a robust and diverse network of activity that extends beyond direct employment to include innovation, scientific research, education and training, information technology, supply chains engaging hundreds of local businesses, multi-modal transportation networks, philanthropic contributions and more.

The Saint John Board of Trade feels strongly that the Province should move forward with the exploration of potential oil and natural gas in shale deposits in New Brunswick. Once the amount of recoverable reserves is established and the market conditions are fully understood, industry, government and public stakeholders can consider the environmental, economic and social impacts on the development of oil and gas extraction.  Although discussions related to appropriate environmental regulations and a royalty revenue model are considered to be vital to the overall evaluation of this resource, the immediate requirement is to understand the quantity of reserves and determine the overall viability of the industry.  The Saint John Board of Trade believes that continuing to explore the potential of this resource is in the best interest for New Brunswick.  

The Saint John Board of Trade is a nationally accredited business organization dedicated to fostering an economic climate that enhances growth, prosperity, and an improved quality of life in the community.  With more than 1,000 members, representing 600 small, medium, and large businesses and organizations and therefore, the interests of more than 30,000 citizens, the Board is a dynamic advocate and the principal voice for the business community of Greater Saint John.  It offers a variety of programs, activities, services, and networking opportunities designed to enhance the business prospects of members and the overall business climate of the area.

For more information contact:

Patrick Beamish

(506) 634-4158

pbeamish@sjboardoftrade.com

December 14^th, 2012

Honourable Blaine Higgs

Minister of Finance, Province of New Brunswick

Centennial Building

PO Box 6000

Fredericton, NB E3B 5H1

Dear Minister Higgs,

On behalf of the members of the Saint John Board of Trade we respectfully submit this letter outlining our view and recommendations for the 2013 pre-budget consultation process. As an organization representing over 600 members we understand that the financial position of the province is at a crossroads. The budgeting decisions made by this government will determine the fiscal health now and in future years. The Saint John Board of Trade has consistently advocated that the provincial government remain focused on eliminating the deficit.

The Saint John Board of Trade strongly encourages the province to stay the course with its plan for fiscal restraint. Cost cutting initiatives have and will continue to help sustain economic viability but continued cuts need to be consistent and strategic. In times of economic strain cities are looking for as much predictability and consistency as possible. However, we know that austerity alone will not lead to an economic recovery; we need to make investments that lead to high paying jobs and a stronger quality of life. The government’s approach to the budget should seek to strike a balance between fiscal restraint and the need for new strategic investments to sustain New Brunswick’s vitality. This balance will assist the Saint John Board of Trade in its vision to “make Saint John recognized as the best place in Canada to set up, run and grow a business, period!”

Saint John is the economic engine of New Brunswick so it is important that our leaders in Fredericton recognize and support initiatives that will revitalize this region’s economy. With80% of New Brunswick exports emanating out of the Saint John region, a strong Saint John will drive the provincial economy. The Saint John Board of Trade is advocating for a balance of investments and revenue generation to complement the austerity measures that are in place. Making strategic investments to the urban areas will afford the municipalities the opportunity to better contribute to the province by providing a better quality of life.

The Saint John Board of Trade and our members recognize that as responsible corporate citizens, we want to see continued efforts from our municipal and provincial leaders to reduce poverty in our community.  We feel that with a strong and vibrant economic climate, our members will be in a position to support these necessary initiatives not only with their time, but with their pocketbooks.

Investments

Health Care/Wellness – The province should seek to implement a strategy that will reduce the strain on our provinces health care system. Finding cost saving measures in one area of health care should be used to promote and strengthen other sectors of the health care system. The province should use cost savings from rationalizing delivery to fund wellness and innovation. This will allow the health care system to be sustainable and provide better care for all New Brunswickers.

Furthermore innovation within the healthcare system will allow us to export our research developments, further generating revenue. The Tucker Park Collaborative in Saint John is currently investing in SME’s that will produce dividends for our province in years to come.

A continued look at expanding the province’s network of collaborative care centres will not only have a measurable impact on how physicians, nurse practitioners, and other support staff work together to deliver excellent primary care, but will also reduce the funds directed to setting up sole practitioner offices. Cutting costs can be made through partnerships like these, ultimately providing better care for less money.

The province can reduce the strain on the health care system by making strategic investments in recreation and wellness education. By funding the necessary infrastructure and education we can reduce unhealthy behaviours that cost millions in government funding.

Infrastructure – The Province of New Brunswick needs to make multiple strategic investments in our province’s infrastructure. The strategy for infrastructure development needs to address the largest needs first. In Saint John, major transportation projects like the development of Route 1 and One Mile House Interchange will begin to alleviate damage to local roads but construction demand remains high. Given that our Common Council has defined roads as a priority for Saint John, continued cooperation between the city and the province is imperative.

The largest need for our city and the top priority of our Common Council is an overhaul of our city’s water system. This outdated infrastructure has consequences for both residents and industry alike and is a top quality of life issue for Saint John. Chronic underfunding of cities has forced the municipalities to find the resources to fix major infrastructure problems that should have been maintained for years. Capital renewal needs to be in the budget so that investments of this scale can be balanced and predictable. The Saint John Board of Trade commends the province for their commitment to this project and asks that the support continue in 2013.In addition, other transportation investments designed to enhance our intermodal connectivity to global markets through the port of Saint John will assist in creating new job opportunities throughout our province as shippers\receivers grow their business.

Economic Development – The new provincial economic development agencies are welcome addictions to the province’s investment strategy. As these groups form, we encourage the agencies to work closely with all other existing economic development agencies. Having these organizations located physically in the same building, as in Saint John, sends a positive message. Supporting existing development agencies that work in a more urban and less regional setting will also be crucial to industry growth in the coming years. Economic development in this province needs to focus on infrastructure investments that create jobs and wealth for New Brunswick. Economic development should provide the access points for capital, innovation and critical infrastructure.

Revenue

Tax Reform – The Board of Trade strongly supports the province in maintaining the low and highly competitive tax rate for the province. Additionally changes to the property tax structure have been well received by our members and we encourage additional efforts to eliminate double taxation.

The strain on the province’s finances however should not be completely solved with austerity measures. Increasing the HST must be explored as a way to balance fiscal responsibility and the

quality of life needed to increase our population. A modest increase to the HST would allow the province to control the deficit, pay down the debt without cutting necessary departments and social programs that are vital to the quality of life in New Brunswick.

Governance – The Saint John Board of Trade would be strongly encouraged by the province taking a strong leadership role on developing an urban strategy for New Brunswick. We know that the development of the three urban centres has the highest impact on the province as the return on invested dollar is greater. If each urban centre had a distinct and measured role to play in the advancement of the province, each city would have a better opportunity to succeed.

The Saint John Board of Trade supports the efforts by the province to change the Community Funding Model by supplying as much predictability and consistency as possible. Furthermore incentive laden pieces such as the portion of the grant that comes from revenue growth in tax base, allow for cities to gain from locally driven development. We support additional initiatives that give incentives back to cities based on economic and community growth.

Finally the Saint John Board of Trade will continue to advocate for the efficiencies identified in the Finn Report. We ask that the province move quicker to implement elements of this report as they lead to better regional cooperation and link with the efforts taking place in the Saint John region.

Natural Resource Development – The Saint John Board of Trade believes the Province of New Brunswick needs to explore all options regarding the sustainable development of our natural resources. We believe these sectors can and should sustain a robust and diverse network of activity that extends beyond direct employment to include innovation, scientific research, education and training, information technology, supply chains engaging hundreds of local businesses, multi-modal transportation networks, philanthropic contributions and more.

Saint John is the forestry hub for New Brunswick, accounting for the greatest number of forestry-related jobs in the Province.  A sustainable wood supply and timber objective is vital to securing and growing forestry related jobs and investment.

The province should move forward with the exploration of oil and natural gas in shale deposits across New Brunswick. Once the amount of recoverable reserves is established and the market conditions understood, industry and government together can make the economic and social decision on natural gas extraction.  Industry appropriate environmental regulations, once established, should be strictly adhered to and enforced. A royalty revenue model designed to motivate the initial production of oil and natural gas, adjusted as the industry matures, should be implemented.  Continuing to explore the viability of this resource potential is absolutely the best approach for New Brunswick.  

The conversation among members suggests a consensus behind the top priorities identified by the Mayor of Saint John in his State of The City speech.

1.       Pension Reform

2.       Water

3.       Roads

4.       Economic Development

5.       Wellness/Recreation

6.       Good Governance

The Saint John Board of Trade supports any contributions to these priorities and believes that the province should work very closely with our Mayor and Common Council to indentify ways in which these priorities can be realized.

The Saint John Board of Trade is a nationally accredited business organization dedicated to fostering an economic climate that enhances growth, prosperity, and an improved quality of life in the community.  With more than 1,000 members, representing 600 small, medium, and large businesses and organizations and therefore, the interests of more than 30,000 citizens, the Board is a dynamic advocate and the principal voice for the business community of Greater Saint John. The elected Board of Directors is representative of the diversity of the membership and their concerns.

We would welcome the opportunity to discuss these ideas and approaches with you further.

Sincerely,

Larry Hachey                            Imelda Gilman

Chairman                                 President