Listen to this clip

Cooker Boy sent this clip along. It’s a CBC documentary (17 minutes) on the economy of New Brunswick from 1965. It talks about a lot of the pressing issues of today. Also an interesting interview with KC Irving.

Of particular interest is the deliberate action by the government and Irving to grow the Northern NB economy.

There’s even a quote that it is more lucrative to be on UI (today’s EI) than to work.

If we don’t know the past, it will be harder to shape the future.

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0 Responses to Listen to this clip

  1. David Campbell says:

    Anybody know what the budget of the New Brunswick government was in 1965? I would dearly like to know. In this clip above, LJR says he put $20 million of government money into an economic development project and he would ‘put more if required’. $20 million in 1965. We haven’t seen that kind of hutzpa in a New Brunswick Premier in a long time.

  2. scott says:

    Key word in your phrase is “said”. That explains a lot when you look at the policy accomplishments of both the federal and provincial Liberals. To this day they only have the Charter to hang their hats on. Economic development??? Well….

  3. Cooker Boy says:

    I had the same reaction as David when I watched this. Even if they didn’t spend that kind of cash, just talking about $20 million and KC talking about dropping $100 million would have gotten people excited and hopefull at the time. Hell, it would get people excited today!

    What I really took away from it was the honesty and candid comments from both the Premier and Irving. With today’s spin doctors, you never hear the unfiltered message.

  4. Anonymous says:

    Keep in mind there was a very special feature of the time-namely, he had to ‘buy in’ Noranda, or else KC was also going to run most of the mining in New Brunswick. How much of that 20 million went to Noranda we don’t know, but we don’t know how much Lord may be putting into the Bathurst deal either.

    If you look at NB now, clearly the past doesn’t provide any good news. Heck, ten years later Hatfield put more than that into ONE car company. Now THERE was chutzpa, something ‘big dick’ had lots of too (but it may have been chemically enhanced)

  5. Anonymous says:

    Liberals or conservatives makes no difference, their policies amount to the same. The fed liberals axed services and privatized to levels Mulroney never fantasized in his wildest dreams. The same is true of democrats in the states.

    This was exactly what the Canadian Council of Chief Executives had ‘advised’, a council that Martin was well acquanted with. There isn’t a government in the ‘industrial world’ that isn’t ‘business friendly’. That’s the order of the day.

    But that doesn’t do any good for economic development. Maybe David will post that study I sent him from the OECD, the link is here:

    http://www.oecd.org/dataoecd
    /29/21/36960925.pdf

    Notice that federal tax credits still go to resources in the maritimes, while the OECD says that Canada even ‘subsidizes’ manufacturing too highly when more tax credits should be aimed at services, where job growth is a feature-not technological enhancements.

    However, one should ask WHY the tax credits are the way they are, and certainly the feds wouldn’t give a *&^% whether the economy goes up or down, but the reality is that the politically active wealthy autocrats just happen to be in resource extraction. Tax subsidies ALWAYS go to those with the loudest lobby, and if people forgot those stories of how the Irvings operate on capital hill, they should go reread the articles from a few years back about all the ministers who stayed over at the Irvings place.

  6. David Campbell says:

    I consider the Bricklin project to be one of Hatfield’s greatest successes. I have stated this in this blog on several ocassions. Cancer sometimes takes a long time to kill but it eventually does. If you want to beat it, you sometimes need some pretty strong therapy – and that’s what we do not see circa 2006.

    http://www.davidwcampbell.com/2005/02/tip-your-hat-to-malcolm-bricklin.html

  7. David Campbell says:

    Has the NB government ever asked the feds to look at tax breaks for new economy operations?

  8. Anonymous says:

    Virtually every service sector industry has clamoured for changes to the federal tax structure, even provincial.

    Notice that New Brunswick has the lowest of all provinces in provincial corporate taxes, in case you missed the link they are down to 2%. The OECD uses ‘marginal effective tax rates on capital’ which it sees as a more accurate number than blanket corporate tax on profits.

    As of 2005 Canada was highest in the industrial world. However, the fact that NB is lowest BY FAR shows that the OECD’s conclusions are a little off, at least within this federation.

    But how do you change legislation? You lobby. Most of these service companies get by on contracts, or at least meet their payroll without a whole lot to spare. In other words, they aren’t billionaires like the resource extractors.

    As the study points out, it is far more efficient to have value added taxes on consumption than to tax production and distribution. However, as they say, politically that is a non starter, prices in Canada are already quite high, mostly in things like food, where there are oligopolies at work inflating prices.

    The study was very interesting though, as it points out a ‘potential’ panacea, although just a potential one.

    I think a lobby should point out the reverse, that taxes should be HEAVIER on resource extractors, and lighter on services.

    If you want proof of that, again, just go check out the study that shows just HOW kind to resource extractors the feds are in New Brunswick- the federal marginal tax on capital for resource companies in New Brunswick is almost ZERO-the lowest in Canada.

    And who do you think benefits from that? Again, think MP’s staying the night at company “cottages”.

    You’ll notice that ALL the maritime provinces are low on the marginal tax rates-even lower than Alberta, which, ironically, should mean that investment would be far higher. Again, that shows there is more at work within the federation, and as the study from Maine points out, taxation is just one issue, and not even one of the main issues that corporate investors are looking at.

    But remember, with those taxation levels so low, if you ALSO cut the taxes on services, you are left with a province that can’t pay for anything.

    So once again, if you want to see the ROOT of the problem, just look at the industries that are getting away with robbery. And that’s a POLITICAL issue, not an economic one. Just think how much could be done with even a tiny increase in one sector. Remember, Irvings and McCains are among the richest in the WORLD, that’s shitloads of capital, but look how miserly their investment in the province is.

    And its too bad a bricklin wouldn’t visit now, since without the auto pact they could access federal funding and actually sell in Canada. I guess Dick really was ahead of his time.