Let’s not waste this opportunity
August has started out on a high note for our city. The 200th Anniversary of the Royal St. John’s Regatta was an outstanding success. Congratulations to all involved; the organizers and rowers, especially the M5 ladies crew who broke the course record.
We’ve also had some good news on the financial front for our province. Recently, the bond rating agencies released their reports on Newfoundland and Labrador and decided to maintain the status quo when grading the Provincial Governments risk for borrowing.
Standard and Poors is hinging a lot on the province sticking to its fiscal plan, noting “We expect the government will remain committed to returning to fiscal sustainability, although it will take some modest measures to reduce taxes and ease some of the increased burden on taxpayers that followed the slump in oil prices and the government’s initial policy response in fiscal 2017. We believe the government will not relent in its efforts to lower its operating costs.”
While we are counting on our government to reduce its operating costs, this is only one ingredient in the mix of our future financial health as a province.
A vibrant private sector is what is most important in driving an economy that ensures jobs and a healthy standard of living for all. We should not let the provincial government’s financial challenges cloud the opportunity to grow this province.
Yes, things have slowed, however, we have just come through a period of phenomenal growth.
It is unrealistic to think that we would not have some slower years. Economic growth is cyclical, especially for a province whose economy is so closely linked to the price of oil.
Standard and Poors says: “The economy of Newfoundland and Labrador should remain in a light recession (negative 0.8 per cent real GDP growth) in 2018, expand moderately in 2019 (about 1 per cent), and then slip back into another light recession in 2020.
So let’s use this light recession to ramp up and get on track for our next growth phase. As former British Prime Minister Sir Winston Churchill is attributed with saying: “The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.”
Our province has so much going for it. We have a strong sense of place and an incredible arts community that helps highlight our unique history. We have an abundance of natural resources just waiting to be developed.
The talent coming from our university and colleges is bright, our own engineering students are problem solving at Tesla! Newfoundlanders and Labradorians are a resilient, smart bunch.
But to ensure a successful economic recovery — we need a plan.
Last month the provincial government issued a call for proposals to examine prospects for Newfoundland and Labrador to identify promising areas of economic opportunity that will position the province for near-term improvement and long-term growth.
The Board of Trade has long been an advocate for the development of an economic action plan for the province. Inspired by the Michigan Turnaround Plan, the Ivany Report in Nova Scotia and the Scotland National Performance Framework, the board has organized several meetings with business leaders, chambers of commerce and industry associations and academia to rally them to be masters of our own collective economic destiny.
In addition, the board has conducted research into how other jurisdictions have set themselves up for long term economic success. The key components are:
• It is driven by the private sector.
• It has a well-articulated vision that has buy-in from all who effect or are affected — government, academia, the community.
• There is benchmarking and regular pulse-taking to ensure the approach is still relevant.
We are committed to doing our part as a catalyst for the private sector in this province to create jobs and enhance prosperity for all.
Let’s not forget that the economy is cyclical. Regardless if the glass is half empty or half full — we need to fill it up again. Necessity is the mother of invention, so entrepreneurial minds this is your wake up call.