Opportunities in P.E.I.

In 2016 I had a letter to the editor that was published in one of New Brunswick’s newspapers titled “Give New Industries a Tax Free Zone.” At the time of publishing, New Brunswick was $13.4 billion in debt. Today the debt is almost $14 billion without counting the impact of what COVID-19 will do to increase the overall debt total.

With New Brunswick almost in bankruptcy, and with an economy expected to shrink by 4.3 per cent in 2020, New Brunswick needs to look at revolutionary ideas to attract foreign investment and increase both domestic and foreign trade.

Former Prime Minister Stephen Harper in 2002 said there was a culture of defeat in Atlantic Canada, alluding to our lack of ability to grow in economic development. While I don’t agree with that comment, I do feel that if we do have a fault as Atlantic Canadians, it is that we are too trusting in believing that the powers in Ottawa and

Western Canada are looking out for our best interests. As Atlantic Canadians we need to unite with one voice in Ottawa and demand economic change.

How can Prince Edward Island benefit?

If P.E.I. would participate in the concept of having taxfree zones, companies would locate to P.E.I. where that industry would have a sustainable competitive advantage that cannot be found in other areas of Atlantic Canada. The concept of a tax-free zone is simple. Companies will either pay zero or no tax for five years, with incentives that after the five-year period, taxes are expected to be paid but can be further reduced to another threshold, if the company’s net income increases and job creation reaches specific targets. There will be no corporate welfare, meaning subsidization from the taxpayer. Zero tax should be enough to attract companies to locate. Companies coming to the province must be in a new industry which is not already present on the Island.

The rest of Canada will not be able to develop tax-free zones until it is determined that our region is equal in wealth to the average economic development of other provinces. An emphasis to develop environmental sustainability is important. Is P.E.I. interested in joining with the rest of Atlantic Canada in working on the concept of creating tax-free zones in your province ?