NOVA SCOTIA INSURANCE INCENTIVES CAUSE CONTROVERSY

Nova Scotia’s provincial government has found itself in a political controversy after confirming that it was willing to offer incentives, such as payroll rebates, in order to persuade assurer Manulife Financial not to move jobs out of its newly acquired Maritime Life Subsidiary, which is headquartered in Halifax. Nova Scotia economic development minister Ernie Fage said that “we’ll use all the programmes we have to keep the jobs”. However, opposition NDP economic development representative Howard Epstein observed that “if it’s a question of keeping existing jobs here, then that moves the issue from incentive to blackmail. We just can’t get involved in that”. Liberal Manning MacDonald said that the government had no business offering incentives to insurers to stay in a city. “Insurance companies are making sufficient revenues in this province and elsewhere that they can be standing on their own”, he said. Both critics were puzzled why the government should be willing to spend taxpayers’ money when there was already legislation in place that requires Maritime Life to maintain its headquarters in Halifax. Government officials said that it was unclear whether that law could be enforced, since it may have been superseded by federal law changes in 2002.