Terms of Reference

The IEF Advisory Committee is established as an advisory body to the Minister of Economic and Rural Development (ERD), responsible for the Industrial Development Act.

As requested by the Minister of ERD, the Committee will provide independent advice and comments to the Minister on matters related to the provision of financial assistance under the Industrial Development Act.

The Committee will consider, review and provide advice and comments to the Minister in the following broad context:

“Is the transaction consistent with meeting the economic development objectives of the Province of Nova Scotia.”

The Committee’s advice shall be guided by the following general principles in reference to the economic development policy of the Government:

1. Sustainability – it is desirable that financial assistance should be provided to entities that are sustainable in the long term;
2. Competitiveness/Innovation – it is desirable that financial assistance be provided to enhance competitiveness and innovation which, in turn, leads to sustainability;
3. Incrementality – where an incentive forms part of the financial assistance, it is desirable that the benefits to the province exceed the cost of the incentive;
4. Productivity – it is desirable that the financial assistance enhance the productivity of the recipient entity;
5. Human resource development – financial assistance provided to invest in the development of employee skills and talent should be considered similar to investment in capital goods;
6. Social equity - the impact on employees and their communities should be considered as a fundamental element in the decision making process; and
7. Economic Development Policy – the financial assistance should be consistent with established government economic development policy at the time the decision is made.

The Committee will review any transaction over $500,000 in value or any transaction that has an operating budget impact of more than $50,000. In the case of an urgent matter, the Minister can decide to forego the prior review of the Committee.

The information provided to the Committee and the advice of the Committee will be considered as advice to Executive Council and subject to Executive Council privilege.

Due to the frequency of issues that will be presented to the Committee, most business of the Committee will be conducted via email and telephone conference. However, semi-annual meetings are scheduled with the Minister to provide the Committee with an opportunity to provide overall advice and comments to the Minister on the Fund.

Up to five (5) nominated by the Executive Council of the Province of Nova Scotia.

All appointments will be at the pleasure of the Province and will be for up to three (3) years subject to the provisions below. Members may be appointed for up to two, but only two, consecutive terms. There will be a Chair appointed by the Province who will chair meetings. Minutes shall be signed off by the Chair prior to official acceptance. Initial appointments will be for up to three years.

Members must:

1. Recognize that, as a Committee member, the member must act in the best interests of the Province;
2. Use the duty, care, skill and diligence of a prudent person;
3. Prepare adequately for each Committee meeting;
4. Recognize that time will be required to devote to ongoing training;
5. Recognize that service as a Committee member requires independent study and work above and beyond regular Committee meetings; and
6. Enter into a confidentiality/non-disclosure agreement in form acceptable to the Province.

Approximately 50 transactions per year are considered through the IEF. Therefore, frequent consultation with the Committee will be required. To enable the consultation process to function in an efficient manner, the use of email and telephone conference will be necessary. Committee members will be provided with information on transactions in advance of a set weekly conference call at a time to be determined by the Committee. Relevant staff of ERD will participate in the conference call to provide such additional information and explanations that the Committee may require. Committee members are requested to forward their comments to the Minister within 48 hours after the provision of information with copies to the Deputy Minister and Executive Director, Investment Division.

ERD shall provide administrative, research and such other support as shall be deemed necessary for the operation of the Committee.

The Committee will meet in person at least twice per calendar year with the Minister and Deputy Minister to provide a forum for general discussion of trends, concerns and other matters the Committee wish to discuss with the Minister.

These Terms of Reference may be amended:

1. By motion of the Committee subject to the approval of the Minister; or
2. By the Executive Council of the Province of Nova Scotia.

Subject to Section 8, these Terms of Reference are effective on and after May 13, 2010.