Give people more say in Newfoundland and Labrador’s economic future

The critical state of Newfoundland and Labrador’s economy was on full display in the 2018 provincial budget. The problems are big, real and upon us. Many economic indicators are pointing toward decline for the foreseeable future.

Confidence among small business owners in the province is the lowest in Canada and there continues to be significant concern among small business owners about the state of the economy. There is little sign the government recognizes this concern as deficits grow and maintenance of the debt is now eating up the equivalent of half the cost of healthcare. Moreover, there is no credible plan in sight for a balanced budget and the government continues to depend heavily on oil royalties.

It’s clear the province’s economic woes are serious enough to cause real worry. While much of the immediate problem indeed lies in dependence on natural resources through boom and bust cycles, there is lots of evidence to show shortsighted fiscal management, political interference, and inadequate governance tools all play a role.

These are the reasons why the Canadian Federation of Independent Business (CFIB) supports the creation of an allparty committee on economic development in Newfoundland and Labrador.

When one compares the governance structure of Newfoundland and Labrador to other jurisdictions, there are glaring inadequacies. For example, Newfoundland and Labrador does not have a robust committee system to allow for the full ventilation of policy ideas. The existing Standing Committees deal mostly with departmental estimates and do not review legislation with the benefit of public or stakeholder testimony.

This is unfortunate because often Standing Committees expose flaws in legislation, make useful amendments, and allow stakeholders an opportunity to publicly critique the direction of government. Active standing committees would also allow for the participation of citizens as they are given a way to provide their input. This would be a marked improvement over the current public consultation process, under which views are provided without any knowledge as to how they inform policies and programs.

In addition, an active standing committee process would address the issues related to Newfoundland and Labrador’s size. As the saying goes, everyone knows everyone in Newfoundland and Labrador, which increases the risk of conflict of interest. For instance, if one is not a member of government or a favoured stakeholder, access to cabinet can be highly restricted. The Premier and cabinet ministers meet with whom they please and legislation is crafted with little public transparency beyond what passes for debate in the House of Assembly.

While it is always important for the Government of Newfoundland and Labrador to improve governance structures, the state of the economy requires greater urgency. More recently, the All- Party Committee on Mental Health was established resulting in very positive work bringing attention to mental health issues and recommending substantive, beneficial initiatives. We see benefits in a similar process being used to provide transparent and robust input on the economic future of the province.

It’s an opportune moment for the provincial government to strike an all-party committee on economic development to allow all Newfoundlanders and Labradorians an opportunity to bring forth ideas and be a part of solving the serious economic problems facing the province.

Jordi Morgan is Vice President, Atlantic for the Canadian Federation of Independent Business