17 Apr Time to admit the mistake

This is the speech Stephen McNeil should give at his earliest opportunity:

Mr. Speaker, I rise to speak about the budget provisions affecting the Nova Scotia Film Tax Credit.

As both the One Nova Scotia Commission and the Broten Report have warned in the clearest of terms, Nova Scotia is on an unsustainable economic path. Our accumulated provincial debt and the relentless impact of demographics will render us incapable of providing the health, education, transportation, and human services our citizens expect and deserve unless we change course.

As we prepared the 2015-2016 budget, we were focused on this challenge. We were determined to make the tough decisions needed to get us back on a sustainable track. We were elected to make tough decisions, and we are not afraid of them.

It should surprise no one that the Film Tax Credit drew our attention. It is extremely generous—in our view, too generous.

We expected opposition. Every single expenditure in every Nova Scotia budget has a constituency that can be counted upon to fight for its continuation. There is no way to return Nova Scotia to a sustainable path without the courage to face and withstand criticism.

Nevertheless, we have been impressed by the passion so many young Nova Scotians feel for our creative industries, including film and digital media. We certainly share the belief that attracting and retaining creative young people is critical to the province’s future.

We have listened to the people affected by the proposed changes, and to their many supporters throughout the province.

We have listened to warnings from film industry executives about the disproportionate impact abrupt change could have on the complicated financial arrangements that enable filmmaking in Canada.

We have also listened to those who support the proposed changes and want us to stay the course.

We have listened, and we have heard.

I have personally come to the conclusion that the changes we proposed are too sudden and too severe.

In short, we made a mistake. And as governments should always be in such circumstances, we are prepared to make adjustments.

I still believe the credit is too generous. We need to find ways to support this vital industry that are not wildly out of sync with government support for other sectors. But we can do that more gradually.

At my direction, the government will introduce amendments to the budget that postpone changes to the film tax credit for one year. We will use that year to consult with industry, and find ways to scale back the cost of this program to taxpayers, without placing an untoward burden on the future of an industry whose importance we all agree on. This will still be a tough process. It will require best efforts—and sacrifices—on all sides.

Over the last week, thousands of Nova Scotians have raised their voices and asked us to reconsider a measure we thought appropriate. As befits this province’s wonderful creative community, they have done so in a spirited and colourful manner. I thank them for that.

We have listened, and we have responded. That is democracy at work.