November 19, 1996
(Executive Council)

Premiers Tobin, Savage and McKenna join forces in Atlantic Advantage for business investment

Premier Brian Tobin, Newfoundland and Labrador, Premier John Savage, Nova Scotia, and Premier Frank McKenna, New Brunswick, spoke with a group of journalists in Toronto today as part of their joint efforts to aggressively promote the Atlantic region and the advantages it can offer the business community. The three premiers said that the harmonization of the Goods and Services Tax (GST) with the provincial sales taxes in their three provinces has made Atlantic Canada the prime business and investment location in the country.

"Joined together, our voices are much stronger and our message will reach more business leaders and decision makers around the globe," said Premier McKenna. "The Harmonized Sales Tax (HST) is giving us a great competitive advantage in the Atlantic region, and is perhaps the biggest single positive impact on our economic prosperity of any measure in memory."

"Business in other parts of Canada, and indeed outside our great nation, should strongly consider investment in the Atlantic region," said Premier Tobin. "Premier McKenna, Premier Savage and I are here today to tell you that the HST will mean a fairer, simpler and economically efficient tax system which will result in substantial benefits for both business and consumers alike. This is a win-win situation which we strongly feel that businesses should pursue. It's the Atlantic Advantage."

Anyone setting up shop in Newfoundland and Labrador, New Brunswick or Nova Scotia will receive full input tax credits under the new sales tax system. This will remove embedded taxes and result in a lower cost of doing business, and lower prices for consumers. Because businesses will be able to price their goods more competitively, it will be particularly advantageous for exported goods, which will be free of sales tax.

Steps will be taken to ensure that businesses inside and outside the harmonized zone are treated equitably. In addition, the cost of complying with tax laws will decrease. Businesses will have one set of tax laws, rules and regulations instead of the two which currently exist. This will reduce the compliance and paper burden on business, and allow business to concentrate on more productive activities.

"The Conference Board of Canada and the Atlantic Provinces Economic Council both share our view that the HST will have a positive impact on the economy of Atlantic Canada," said Premier Savage. "In Nova Scotia, we expect that as a result of the HST, our provincial Gross Domestic Product (GDP) will grow by 0.8 per cent. As provincial governments, we have accepted the challenge of doing what we can do to create an environment which will allow the private sector to do what it does best - create jobs. That's what harmonization does for us. Investments will be made and jobs will be created."

The three provinces have cooperated in an Atlantic Advantage advertising campaign in the Globe and Mail, the Financial Post and Les Affaires to aggressively promote investment in the Atlantic region.

Contact:

• Cathy Dornan
  Office of the Premier
  Newfoundland and Labrador
  (709) 729-3570

  Maurice Robichaud
  Office of the Premier
  New Brunswick
  (506) 453-2144

  David Harrigan
  Office of the Premier
  Nova Scotia
  (902) 424-6600