Public Finances

Global's Marieke Walsh talks to Marco Navarro-Genie of the Atlantic Institute for Market Studies about the impact of cuts to the Nova Scotia film tax credit.

People in the film and television industry are planning a rally outside the Nova Scotia legislature today to protest a tax credit cut. Organizers say they will be at province house for several hours to send a message to provincial politicians over the refundable credit. The change announced by the governing Liberals will see the credit cut to $6 million from $24 million in next year’s budget. Film producers would also have access to an additional $6 million established in a fund for the creative sector.

Film tax credit cuts make sense, Halifax think tank says Not government’s job ‘to prop up businesses’ The provincial government shouldn’t back down on cuts to the Nova Scotia film tax credit, the head of a Halifax-based economic think tank said Wednesday. “The business of government is not to prop up businesses,” said Marco Navarro-Genie, president and CEO of the Atlantic Institute for Market Studies. “It’s to run a government.” “The real point ought to be whether government should be engaged in doling out public money to money-making industries,” he said. “It’s not government’s place.” Navarro-Genie said government shouldn’t cherry pick industries to subsidize, essentially choosing winners and losers. Instead, he said the province should tally up all the subsidies offered to industry and invest the money into an across-the-board tax cut. He said this would be more fair as it would put all industry on equal footing.

John Risley Calls Film Tax Credit 'Nuts,' Backs Government Changes Seafood baron John Risley, president of Clearwater Fine Foods Inc., says he's been watching the debate unfold "with dismay" as those opposed to the cut warned of "Armageddon" and a "tidal wave" of job losses. While many working in film have warned the changes will gut the industry, the head of think tank Atlantic Institute for Market Studies says there's been no independent analysis of whether the subsidy works. There are numbers being thrown left, right and centre. None of these are independent numbers," Marco Navarro Genie, the president of the Atlantic Institute for Market Studies. He said the film tax credit is essentially "free money." He also says productions can film here, but take advantage of other lower cost jurisdictions for pre and post production and still receive the Nova Scotia tax credit.

Bill Black discusses the upcoming budget and the size of Nova Scotia’s public sector. “Civil Servants: As argued by AIMS and others, the number needs to be reduced. This will only happen if the government has specific plans to simplify or eliminate activities, and can identify the particular departments where savings are to be achieved”.

PEI Minister of Tourism Robert Henderson agrees with a new report published by the Institute arguing that the province made a mistake in getting into the golf game as an owner and operator.

Times and Transcript reporter Cole Hobson discusses a paper that the Institute recently released, which its former Director of Research Ian Munro authored, that details PEI's golf tourism strategy and argues that it failed to make good use of taxpayer dollars on the Island. He outlines a number of useful lessons from which other provinces can learn.

In an article published by the Times and Transcript, one author cites a study released by the Institute in 2014 that measures the size and cost of Atlantic Canada's public sector and argues that the issue is ultimately about whether we have the right composition of public sector employment and compensation, not about whether it is costlier or bigger.