Remarks by Hon. John F. Hamm
Premier of Nova Scotia
Canadian Manufacturers and Exporters - Nova Scotia Division
World Trade and Conventions Centre, Halifax, Nova Scotia
September 19, 2001

Thank you....
Good morning. And thanks so much for the invitation to join you today.

I was asked to come here to speak about offshore fiscal fairness.

But first I want to take a few minutes to talk about what I believe is foremost in the minds of many of Nova Scotians today - especially those in the manufacturing and exporting sectors.

In the aftermath of the terrorist attack on the United States, we saw Nova Scotians express their support in real and tangible ways. Thousands dedicated their time and made available, their homes and their businesses to meet the needs of the 8,000 passengers who were diverted to our airport.

We also saw an outpouring of sympathy and solidarity across this province and across this country.

Nova Scotians took time to offer their support and condolences. And now I believe we need time to think about the implications; to reflect on the shockwaves that result from an attack of this magnitude.

The world has been reshaped, and our place in it has been altered. We need to take stock ... look at where we are and (to the best of our ability) anticipate where we might be headed.

There’s no doubt we are treading on new ground. But our province is strong. Our people are resourceful. And our position in North America strategic.

As you know, Nova Scotia is undergoing significant, important energy development. ...Secure, reliable energy sources have now become very important.

Nova Scotia is located on the Great Circle route connecting Europe, Asia and North America. ...Geography has now become more important.

Nova Scotia is the east coast base of Canada’s defense structure. ...Defense has now become more important.

Our proximity to the United States is our strength. With the advent of free trade, the border had become a formality for many of you. But, the reminder that borders are part of a security system has become only too real.

Those crossings are the arteries and veins of North American commerce. And our American friends are equally committed to maintaining the exchange of goods across these lines.

During a press conference last Wednesday, The U.S. Ambassador to Canada, Paul Cellucci, reminded reporters that it has been the policy of his government — indeed, the policy of President Bush — to (and I quote) "make sure law-abiding citizens and the free flow of commerce can continue between the United States and Canada."

Ambassador Cellucci also spoke about the "extraordinary trading relationship" our nations have cultivated. A relationship that is of great benefit to both countries.

And any disruption of trade between Canada and the United States harms both our economies.

Prime Minister Chretien chose the perfect quote during the National Day of Mourning. It bears repeating now. As Martin Luther King said: "In the end, it is not the words of your enemies that you remember, it is the silence of your friends."

Now is not the time to be silent. Now is the time to strengthen ties with our largest trading partner. Simply put, they need us and we need them.

Now is the time to strengthen Nova Scotia’s position as a strategic centre ... as a defense centre ... and as an energy centre. All of these just became more important.

Which now leads me back into this morning’s breakfast topic: our growing energy sector can be the foundation of important changes in our province. But, to achieve real change we will need to pursue our campaign for offshore fiscal fairness.

The events of the past eight days have reminded us that we draw considerable strength as a nation. Offshore fiscal fairness is a national issue; an issue of nation building.

Fifteen years ago, the Canada-Nova Scotia Accord determined the ownership of offshore resources and positioned them for a greater national purpose. The intent of the agreement was to return Nova Scotia to a stronger economic position ... to give us the means to stand on our own two feet.

In fact, in 1980 Prime Minister Trudeau said it quite clearly (and I quote):

"The commitment we have made regarding the offshore is that until the provinces with resources off their shores have reached the average income in Canada, we intend to see that they get the overwhelming part of the resources from the offshore."

His point was made even clearer by Leonard Hopkins, who was parliamentary secretary to the Minister of Mines and Energy - a seasoned cabinet veteran by the name of Jean Chretien.

Here’s what Mr. Hopkins had to say: "Until Nova Scotia’s per capita fiscal capacity reaches 110 per cent of the national average ... the province will receive all offshore revenue."

Unfortunately, that’s not the situation we’re facing right now. Under the current regime, for every dollar that flows to governments from Nova Scotia’s offshore revenues, Ottawa is set to gain about 80 cents. Nova Scotia gets just 20 cents.

This was clearly not the intent of the Accord. This was not what Prime Minister Trudeau had in mind. Nor was it what Prime Minister Chretien intended.

So what happened? Well, even the best intentions can be sidetracked by details and unforeseen events.

Nova Scotia was given the means -- like other provinces before us -- to turn our economy around. And we all agree on the principle of the Accord. What we don’t have is the means to deliver it.

The architects always recognized the need for a method to ensure Nova Scotia was able to reap the benefits from offshore development, but the one they designed failed.

That is why we continue to be consistent and persistent in our goals. I will briefly outline them for you today:

• First: Nova Scotia should be the primary beneficiary of its offshore resources.
• Second: Oil and gas are non-renewable resources and therefore must be treated differently than on-going renewable sources of revenue.
• Third: Natural resources in all Canadian provinces and territories should be treated similarly, and
• Fourth: It is in Canada’s national interest that economically challenged provinces, such as Nova Scotia, break the trend of dependency on federal subsidies and become economically self-reliant.

In short, our demands for offshore fiscal fairness are intended to put the principle of the Accord into practice. To ensure that Nova Scotians become the principal beneficiaries of their offshore development ... by ensuring Nova Scotia keeps all offshore revenues until it has a diversified and sustainable economy that is at least equivalent to the national average.

As a nation we grow stronger as our regions grow stronger. And because this is a well-grounded truth, it has resonated with people across this country. Provincial and federal politicians, government officials, many business leaders and private citizens — and even a few editorial writers and columnists — have expressed support for Nova Scotia’s Campaign.

Premier Ralph Klein offered Alberta’s endorsement during a visit here in June. And last month, I met with Premier Grimes of Newfoundland and we agreed we had much in common and a cause that could proceed jointly under a similar set of goals.

Today, I ask for your support.

Underneath all the legal documents, principles and intents is the fundamental issue of fairness. Other provinces used their resources to transform their economies — Nova Scotia deserves the same opportunity.

So my message to you is two-fold. I’m asking that you employ the wisdom and influence of your members, and work with us to help make Nova Scotia stronger in the months ahead.

And I’m asking that you use this same wisdom and influence in support of offshore fiscal fairness to help make this province prosperous and self-sufficient in the years ahead.

Thank you.