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Nova Scotia would never consent to losing Cape Breton, now what?

Nigel Kearns Follow Me

Posted this 2019-01-08 1:28 PM AST (updated 2019-01-08 1:46 PM AST)

“Hear, you Cape Bretonians, descendants of the brave, enroll yourselves together, and freedom you shall have; Muster all your energies, and set your Country free: Despised by Nova Scotia, no longer shall you be!” -The Spirit of the Times, an early Cape Breton newspaper of 1844

To borrow the term, I wish to start with thanking all Cape Bretonians for taking this important first step, getting involved. Let’s start with honesty, as I type this I am both inspired and angry. Inspired by Senator Dan Christmas who had the courage to confirm that our island is dying and we require fundamental governance change if we are to survive yet angered by this statement from Dr. David Johnson a political scientist with Cape Breton University.

“It’s also highly unlikely that any government of Nova Scotia would ever consent to losing Cape Breton for to do so would be for Nova Scotia to lose a strong part of its claim of being a “Have-Not” province deserving of federal equalization funding.” – Dr. David Johnson Phd, Cape Breton Post; March 23, 2018

This statement has huge implications for the Cape Bretonians. We must ask, “Is Cape Breton declining because of circumstance or is it by design?” A review of Federal transfers to the Province of Nova Scotia goes beyond the $1.8 billion in Equalization; it also extends to healthcare and other transfers that increase the amount to $3.2 billion. In short, there are 3.2 billion reasons to restrict investment in this region to ensure Nova Scotia maintains its “Have-Not” status.

Yes, the statement made is bold; beyond bold it’s frightening. Yet when it comes to fairness there have been people advocating for the fair distribution of taxation and funding for a long time. Former mayor of the Cape Breton Regional Municipality, John Morgan brought a lawsuit to the Nova Scotia government that was dismissed on procedural grounds while the Nova Scotians for Equalization Fairness (NSEF) committee have been lobbying both Provincial and Federal governments for more than a decade and recently organized demonstrations. Unfortunately, these activities have resulted in token responses, false promises and deference by representatives from both levels of Government and the three major political parties. In short, if we are to force change, we must support these efforts by electing officials who are dedicated to Cape Breton and bring integrity and fairness back to politics, ensuring Cape Breton can prosper.

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Cape Breton United Party

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Posted by Nigel Kearns
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We must ask, “Is Cape Breton declining because of circumstance or is it by design?” In short, there are 3.2 billion reasons to restrict investment in CBI.

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Nova Scotians for Equalization Fairness Follow Me 2019-01-08 2:13 PM AST Reply 3 0 Christian and Nigel. Well done and you speak the truth. Something we here in Cape Breton are not used to from our politicians. We have gone from bad to worse here over the past 20 years. Trusting the politicians has not worked for us in anyway. The politicians here in Nova Scotia work for big business and they screw the people over in a major way. We are hearing from people from all over the province now at the NSEF and all we hear from are people who are very upset and frustrated with the provincial government and the resources they are spending on the regions capital city and the amount of neglect the "have not" communities have been forced to endure. There needs to be an audit performed on the Federal Equalization Transfer" and where the funds are being spent. This seems to be the issue that is ignored by all levels of government. The Liberals actually said when they were running that they would do an audit of the "Equalization" if they were elected into power and now they have proved that they are flat out liars because they will not even comment on their promise let alone do the audit. What is wrong with showing the people of the province where the money is being spent? What is wrong with being open and transparent? These are the questions we need to start to ask ourselves moving forward. We certainly hope that the CBUP are ready to step up and give people an alternative come election time. We need a new voice for Cape Breton and we need it soon. The NSEF would be happy to hold a public debate with potential politicians and we would love to have the CBUP participate in the event. The Federal Election is 8 months away and we certainly need better representation that the 2 MP's we have now. We will see a provincial election a year later and we need better representation there as well. Thanks for speaking the truth CBUP......
Brian Linden Follow Me 2019-01-08 4:33 PM AST Reply 0 2 I'm honestly not sure how to respond to this. Firstly, Dr. Johnson's quote is taken out of context and I would like to know the full statement in regards to what he was talking about, because I can think of at least 2 more pressing reasons Nova Scotia wouldn't allow the separation of Cape Breton from Nova Scotia, but more importantly I can think of many more reasons why separation would be a train wreck for Cape Breton. Next, the fair distribution of equalization has very little to do with our economic down slide, the attitude towards business owners and foreign business investment in our area has more of an adverse affect than a lack of unearned federal money. The biggest issue with Cape Breton, as an economic platform, is that we don't have a working railway, we can't produce anything because we can't ship anything off the island in any quantity. Our unreasonable property tax is also an enormous issue, and the unfair distribution of taxes among a shrinking and aging middle class is another issue being overlooked in favor of political non-starters. How well do you think it will go for us if we were to separate from NS with no railroad, no container yard, and no existing non-physical production infrastructure (This last one refers to things like medical R&D and technology development, things that can be produced but don't need to be shipped). Most of our problems are problems we created, youth has no incentive to stay, education is geared towards areas of industry that no longer exist in this country (let alone the island), business owners are looked at as some kind of adversary to be defeated at all costs, and the cost of land ownership (or what passes for land ownership in this country) is so high it's pointless to buy anything. Organizations like NSEF and CBUP, which are little more than a failed lobby group and a pointless political party designed to do nothing but dilute the vote further, are half the reason we are in this mess. Christian Murphy Follow Me 2019-01-11 11:52 AM AST Reply 3 0 Thanks for your point of view Mr. Linden. Firstly, Dr. Johnson's quote is not taken out of context, please read the Cape Breton Post article and explain how this is the case.....stating it is out of context does not make it true. Regarding your opinion over the distribution of equalization dollars may I point out a few facts? First, equalization dollars are placed into general revenues. When leadership and decision making is consolidated into a single geography, that region benefits economically from that consolidation. Health, education and other services have been consolidated thus the bulk of those jobs and related expenses are paid in that region as well as the economic spin-offs. To exemplify the disparity, it is important to compare the investments in Cape Breton healthcare versus a similar economy. Prince Edward Island has a population of 152K people while Cape Breton sits at approximately 132K. Based on the 2014/15 Budget for the now disbanded Cape Breton District Health Authority, the province was spending just shy of $300 million employed an estimated 2,500 healthcare workers while Health PEI has an annual operating budget of approximately $671 million (fiscal year 2018-19) and employs more than 4,724 employees. Healthcare spending per resident Cape Breton - $2,272 (2014/15) Healthcare spending per resident PEI - $4,414 (2018/19) Based on these facts, on Island healthcare is shorted approximately $180 million and it’s safe to assume the planned closure of two Cape Breton hospitals is a targeted move to further reduce healthcare spending to less than $300 million. Depriving the Cape Breton economy of a potential 2,000 needed jobs and the associated spin offs further degrades the regions financial outlook. Railroads! Interesting perspective! Railroads were born of the age of industry where bulk transport was required.....those industries have been off-shored to low cost economies. That era is gone. Brian Linden Follow Me 2019-01-11 12:25 PM AST Reply 0 0 first, I don't dispute your numbers, but I do dispute your assumption that it would, in any way, produce long term, sustainable growth for our island. Equalization is a response to a failure, it's like taking an advil during a flu, it treats the symptom of the headache, which is good, but doesn't do anything to help fight off the flu itself, for that you need time, patience, liquids, bed rest and several other things. If you ignore the other things you need, you will never get better and consuming the Advil long term will cause damage to the liver. Equalization is the Advil, and our economy is our liver. Next, we produce coal, we have a large base of low education, low skill workers and lots of land. That is a recipe for production, but without a railroad, we can't produce anything in quantities high enough to matter. If you think railroads are a thing of the past, you don't understand modern economics AT ALL, we live in a era of automated production, large scale packaging and shipping, online shipped consumption and creature comforts, to produce anything in those areas you REQUIRE a railroad. Name one modern economy that is successful without a railroad. Go on, I'll wait while you google. I found the article the quote is from, read in context, I believe his opinion more closely aligns with mine than yours. I wrote an article on all of this, you can see it here: https://capebreton.lokol.me/cape-breton-railroads-equalization-and-other-boring-stuff Christian Murphy Follow Me 2019-01-11 12:39 PM AST Reply 2 0 First off, $180 million dollars and 1800 jobs will have an economic impact immediately.....fyi, it's not because doctors don't want to come here, the College of Physicians and the NS Government is restricting investment, there have been multiple reports in the media on the subject and I have it under good authority that others that speak out are also forced out.....control the narrative. Long term economic development requires that Economic Development Agencies be shifted away from the HRM where the issue doesn't exist and relocated to the regions where it does exist. That starts the solution to your investment issue as well as jobs. Entrepreneurship is advocated seldom acted on beyond the advocating stage. His (Dr. Johnson) opinion may align, but the statement is not out of context and does represent an issue because the Province is addicted to free money and will not see it distributed based on need but on maintaining the system and the hold on those dollars by the HRM. Brian Linden Follow Me 2019-01-11 12:59 PM AST Reply 0 0 You have conflicting opinions in that comment, since equalization would also be free money to us. Next, Halifax's success is not the reason for our failure, Halifax has trains, and a container yard, and production infrastructure, and communications infrastructure, we do not. Your solution to our problems is community level welfare, and I, nor any self respecting business owner, will ever accept that as a desirable solution to our problems. Christian Murphy Follow Me 2019-01-11 1:02 PM AST Reply 2 0 Yes but it would go where it's needed not a growing economy that doesn't need it. Brian Linden Follow Me 2019-01-11 1:07 PM AST Reply 0 0 Still not the point, treating a flu without Advil is still possible, just less pleasant. How long do people intend to bang their heads against the politics wall before they refocus on things they can make happen without the NS or federal governments money and say so. Again, would it be nice to have the Equalization money? yea. Is it necessary? Absolutely not. It's not fair that Halifax takes all that money for themselves, but life isn't fair, so get over it and start focusing on things you can actually make happen. Christian Murphy Follow Me 2019-01-11 12:21 PM AST Reply 1 0 "This last one refers to things like medical R&D and technology development, things that can be produced but don't need to be shipped!" -Brian Linden I agree with you regarding this statement. Yet lets look at an issue that will arise around medical R&D. The College of Physicians, Dalhousie University, Provincial Government and provincial funding bodies are all located where? Just as a note, the HRM does not have an economic development issue, in fact it's one of the few growing economies in Nova Scotia.....logic would dictate that organizations such as these would thus restrict spending and investment in that region and redirect it to the economies that need it. The taxation issue is similar and has to be harmonized....where is the logic coming from when you tax one part of NS higher when it's one of the poorest regions. With 30% of our children living in poverty, should Government in good conscience direct efforts towards lowering taxes and increasing economic support to that region? Your feelings regarding investment and business people have some merit yet it is often directed towards those institutions that take more than they give.....attitudes towards entrepreneurship must change, but that also requires that the province focus efforts on the regions that need it most. The economic footprint of InNovaCorp and NSBI is again primarily sitting on the mainland....leadership, multiple offices and an incubator mall....it has also encouraged Cape Breton entrepreneurs to come to the HRM because of the facilities and support they will receive. This is nothing less than the Regan era brain drain only on a provincial level. Brian Linden Follow Me 2019-01-11 12:28 PM AST Reply 0 0 I am an entrepreneur and business owner on this island. Your synopsis of this situation is dangerously wrong from mine and my peers perspective. I have been trying to figure out a way to move my business into an area of large production (I build data systems, computer systems and other such technology systems), but because of a lack of large scale shipping options, I may not even have the option of making that expansion here. That means, I will be forced to take the potential jobs I would be creating elsewhere. You are completely out of touch with the people who own the businesses in your economy. Christian Murphy Follow Me 2019-01-11 12:52 PM AST Reply 1 0 Interesting, 45 Drives is quite successful without a railway and so is Protocase. Trucks have replaced rail in our region and I have some international experience in technology. I have to question the need for rail on that front. You must require massive input similar to say a COPOL that ships in pelleted polypropylene by truck and exports the same way. Brian Linden Follow Me 2019-01-11 1:01 PM AST Reply 0 0 It's not that I CAN'T do it by truck, it's that it's more EXPENSIVE to do it by truck. Shipping by train costs a fraction of what it costs by truck. Because of this I can't be competitive in price unless I produce my product in a place where the shipping is the least expensive. COPOL is a niche market, so it doesn't compare to my business model, basically they can get away with it due to the scarcity of what they are shipping. Christian Murphy Follow Me 2019-01-11 1:11 PM AST Reply 2 0 Unfortunately there are not enough of you to make a railway a viable business in this economy. Thus we must focus on what we have versus what we don't. Brian Linden Follow Me 2019-01-11 1:14 PM AST Reply 0 0 Except for the coal mine that is desperately trying to find a way to get their coal off this island in a profitable way. And Atlantic Furniture, that moved their operations off this island due to shipping concerns 15 years ago. And I'm sure 100's of startups that found homes in other communities because shipping from them was less expensive and more reliable. And those are just the things we know about. The fall of this island happened within 5 years of the railroad ceasing function. Brian Linden Follow Me 2019-01-11 12:35 PM AST Reply 0 0 Also, I used medical R&D as a cod example, this also applies to technology development, eCommerce management, data center development and a few other areas. Christian Murphy Follow Me 2019-01-11 12:56 PM AST Reply 1 0 Data center technology is restricted more based on connectivity than it is on hardware. Our diversification of the carrier infrastructure is the biggest risk factor here in Cape Breton, as well as cost. Perhaps if Hibernia Atlantic extended their sonnet ring to the area we could attract data center opportunities. Single points of failure put this region at a disadvantage. Brian Linden Follow Me 2019-01-11 1:04 PM AST Reply 0 0 We have multiple backbone connections and full and consistent satellite connectivity on this island, so I have no idea what you are talking about. 45 drives is a small scale data center, so we actually have one here. I spent years working for a large american organization that specialized in setting up large scale data infrastructure, this island would be perfect, except for the attitude, lack of trained professionals and the high property tax. Christian Murphy Follow Me 2019-01-11 1:18 PM AST Reply 1 0 Mr. Linden, people are not trees, they move where the work is....I personally supported the relocation of a family from the UK. Eskasoni has a nice data center albeit small scale also. The fiber routes have probably improved and I understand that NSP has a dark fiber also but the cost is historically higher than say New York where a data center could have more than 5 carrier connections. I have a worked with companies such as Citrix and have had the privilege to partner with Sprint in my past lives. So I have some experience albeit a bit dated since I stepped from behind a desk. Steve Lilley Follow Me 2019-01-12 11:42 AM AST Reply 3 0 Brian. I'm not here to offer an opinion but simply to provide clarification. 45Drives is not a data center neither small or large scale. We are a manufacturer of large scale data storage servers and ship product internationally from right here in Sydney. Brian Linden Follow Me 2019-01-12 11:47 AM AST Reply 0 0 I was under the impression that you were providing a small amount of hosting, and storage solutions.
Joe Ward Follow Me 2019-01-11 8:41 PM AST Reply 2 0 Whether we agree with the principles of the Equalization program or not, since it is in place right now, the following is a given: If the incoming cash windfall is distributed disproportionately, it will address the needs of each region disproportionately. Regions whose needs are funded to a lesser degree, are, therefore, more disadvantaged. Those disadvantages may be the catalyst for weakening the competitiveness of some regions and strengthening others. Property tax is one clear disadvantage with side effects. There is sufficient Equalization funding available to create equal tax rates both residentially and commercially in the CBRM. It's achievable in the next provincial budget. There are lots of views on the railroad, and it's a comprehensive topic. However, we must acknowledge that when we actually had an operating rail line, there was an insufficient business demand to keep it profitable. The NSEF is an effective lobby, has taken Equalization to a new peak of public concern, has engaged many politicians, and has the power to influence elections at all levels of government in the next couple of years. CBUP is coming online and has the potential to disrupt the traditional parties. Upper echelon business people don't lock themselves to particular regions. They choose the one that is the most advantageous fit for their opportunity. The larger the business, the more this holds true. Note: if the $~$2 Billion was suddenly withdrawn, the province of Nova Scotia would be immediately insolvent. Brian Linden Follow Me 2019-01-12 12:11 PM AST Reply 0 0 Half of this has no basis, firstly, the railroad was extremely profitable, and it was hugely controversial when it was sold to a private organization. It was also, originally, categorized as an essential service, no industry can survive (let alone grow) without a working railway, that's economics 101. NSEF has done literally nothing, has not won a single battle, has not produce any results. Compared to a group like CFIB or Salus Global, they can barely be considered a lobby group. We have received no additional equalization funding, we have been given no additional credence with the provincial party, and due to their ridiculous protests that frame them as little more than an activist group, Cape Bretoners and their businesses look like the whinny kid at a birthday party. Any party who only rides in a cause specific area is harmful to the vote, vote dilution is the reason the US elections are limiting for ballot parties and campaign funding. Crap like this is why we are considered a joke to the rest of the maritime provinces. I'm tired of seeing my peers (business owners and entrepreneurs between the ages of 25 and 35) moving away because of nonsense like this. The latest generation of business owners think this is ridiculous, and are just leaving. The direction these political movements are trying to take us in is leading to this island becoming nothing more than a retirement community. I have been to 3 provincial meetings where the railroad in CB has been brought up by Halifax MP's and Representatives, and it has been the CB MP's and representatives that have dismissed it. Anyone who is serious about running any kind of business large scale leaves, me included at one point, and possibly me again if I get fed up with this nonsense. I care about this island, but eventually I have to do what is best for me and my family. Joe Ward Follow Me 2019-01-12 12:49 PM AST Reply 2 0 What part of Economics 101 describes the scenario where an "extremely profitable" enterprise ceases to operate? You seem to be discounting the NSEF because you've clearly expressed a philosophical disagreement with the concept of Equalization. The NSEF deserves credit for its longevity, its extensive research, its elevation of the concern back to a top tier matter of public interest, for successful engagement with politicians at all levels (correspondence, meetings, video recorded meetings), for coercing municipal representatives into verbal support, for compelling Equalization to become a component of the PC leadership campaign, for harnessing local media, for consistently utilizing multiple channels to keep their mission top of mind (mainstream media, goCapeBreton, Cape Breton Live TV, social media), for recruiting people to assist (live streaming, video production), for spurring on citizens to think about, understand, and discuss Equalization more readily. And we'll find out in the next election how much support is lost by those who are at risk of losing votes from citizens who have Equalization as a concern. Not bad for a local Cape Breton group, whatsoever, regardless of anyone's overarching view on Equalization. You may feel their protests are whiny or ridiculous, but you don't speak for everyone. If the NSEF convinces only a few hundred people in the Sydney area that they are right, they'll cost Derek Mombourquette his MLA position, and put the Liberal majority in further jeopardy. The same scenario will play out in Glace Bay with MacLellan, and if Clarke runs for mayor again (or another role) that same lobby will dampen support for him, making that challenge even greater. In fact, it likely cost him the PC leadership role already. Brian Linden Follow Me 2019-01-12 1:02 PM AST Reply 0 1 I speak for the people who choose not to speak, but instead, act. From those in power, and from those in business at a provincial or national scale, everything about NSEF is ridiculous. In most circles it's literally a joke. NSEF isn't even registered as a lobby group, they are little more than a small group of individuals who seem to have an issue with the way government is being run but don't want to use official channels or get involved with a party themselves to make the changes they want to see made. The railroad fell to shambles because it was sectioned off and sold to a foreign private corporation, now it is unusable due to neglect. It should have been re-appropriated years ago, but now it's too late and would have to be rebuilt from scratch. Individual areas of a railroad will regularly fall into poor, low or complete loss of profit, but the greater railroad itself keeps it's veins open so business can expand, evolve, grow and transform. The sale of that railroad was an abysmal act by CN and they should be fined for it and forced to update our infrastructure. NSEF deserve no credit at all, they have no true political support, and only a modicum of public support. Their members regularly lash out at anyone who disagrees with or argues against them, they protest like university students who blame large businesses and corporations for layoffs, and they completely deflect any responsibility our community has for itself. Whiny children at a birthday party, that's the analogy I use regularly for them, and because of them having the label "lives in cape breton" becomes a laughing matter for anything serious about business off the island. Joe Ward Follow Me 2019-01-12 2:57 PM AST Reply 3 0 I think our core positions have been spelled out well by now, even if not fully aligned with one another, so I'll avoid becoming repetitive. In closing, I know the NSEF isn't perfect, but I do feel like you're projecting your own feelings onto wider groups that you don't actually represent. We're all, myself included, prone to doing so at times when we feel strongly about something and believe others must be like-minded. I do believe that your personal network probably has some people in it that are like-minded, but I don't think you can substantiate a statement like "In most circles, it's literally a joke" or that a "modicum" is really an objective take on the level of support they have. And while you can argue that you don't believe they've been effective, a heavy-handed statement suggesting they "deserve no credit at all" just doesn't seem to be a fair position. With that said, what I definitely appreciate about you is that you're clearly passionate about entrepreneurship, you think about economics at a larger scope, you invest time thinking about not only your business but the business environment, and that you're working hard on building a business - a task that certainly isn't easy anywhere, let alone in a market that has many disadvantageous factors to overcome. I enjoy your articles, as they definitely raise some thought-provoking points of consideration. It's easy to fall into a "filter bubble", and I believe it's very important to invest time in some alternative takes on things. So props to you for engaging in conversation and presenting your ideas in article format that encourage conversation. Now I need a Saturday afternoon sandwich. :) Brian Linden Follow Me 2019-01-12 3:15 PM AST Reply 1 0 The developers need to do some working on comment ordering, this was out of position for some reason. I'll be the first to admit that I'm very passionate about the things I am passionate about. I write opinion articles and comment on opinion articles, so I'm pretty unapologetic about the opinions I voice. I like to think of things from the angles others don't think of them in, which is why I tend to through out some off the wall and sometimes outrageous ideas. As long as it gets people talking, and thinking from more than their own perspective, I'm happy to take the hate. As far as the things like my statements of "deserve no credit at all" and "In most circles are considered a joke", as with any opinion comment or article, it comes from a place of personal perspective, people may not like the wording, but that's the opinion I've developed from the perspective I view the world from. I've been working with several groups from both on the island and off the island to try to find a way to make my company work here. This is where my frustration comes in, I don't want to be another story of someone who had to move away to make his dreams a reality, which is to build a worth while legacy for future generations of my family. I like debating and conversing on topics with you more than most Mr. Ward, you tend to have a balanced perspective compared to my non-conventional perspective on many things. Though, I believe we may be on opposite ends of the spectrum for economics and the involvement of politics in them. Either way, this was fun. Joe Ward Follow Me 2019-01-12 12:53 PM AST Reply 2 0 I think you're describing a conflicted position to some extent. You're presenting as a rational decision maker, but some of the recommendations or assertions you make, IMO, don't make sense: 1. Ignoring philosophy, increased distribution of Equalization funding to Nova Scotia, will have a direct positive impact on all business operators here. If you’re one of those operators, you will benefit. You’ll benefit even if you loathe the idea and consider it only as an undeserved handout.   2. Rational business people don’t relocate because they think local lobby groups are whiny. While it may be an annoyance in their day-to-day chit chat over coffee or online, it has no immediate influence on their business decisions. They’re either doing well here, or believe they’ll do better elsewhere. Relocating a business based on dislike of a lobby group is irrational, and likely not happening at all.   3. If you assert that the NSEF and CBUP have “literally done nothing”, then how are they “leading to this island becoming a retirement community”? If they are not shifting focus towards their cause, then they wouldn’t be leading to anything.   4. As a fully rational thinking business person, if your business is your top priority, then you should do what is best for it. If you feel that you can be more successful somewhere else, you should leave. I suspect, like many, your roots here are, therefore, based on a larger factor than just what is best for your business (e.g. remaining close to family). Brian Linden Follow Me 2019-01-12 1:06 PM AST Reply 0 0 This makes a great deal of assumptions about my personal life. I'm here at the moment because this was a good foundation community to begin the building of my business reputation: if you can make it work there you can make it work anywhere. So, if I can make the growth work here, I will make it work here, but in the next year or so I have to make a decision on it and if things continue on this way, it won't be the one the community wants. You are right about my assertion of the NSEF and CBUP, let me reword: They have done nothing POSITIVE. And, businesses relocate because of local politics all the time. Joe Ward Follow Me 2019-01-12 12:55 PM AST Reply 2 0 If a container terminal deal was closed, the railroad upgrade can be costed into the deal. With that said, the railroad and Equalization are not in conflict. I don’t know of any direct opposition to maintaining the railway from the NSEF, unless it’s a detail I missed. TBD.   All else being equal, it’s pretty much fundamentally inarguable that an increased Equalization transfer to the region will be tremendously beneficial to the economy. And that could range from simply creating an improved and more competitive market within the province, on up to being transformative. Protocase is the greatest example of rational business creation in Cape Breton. They assessed our market conditions and engineered a business model that can thrive here regardless of adverse conditions. Brian Linden Follow Me 2019-01-12 2:04 PM AST Reply 0 0 Protocase is a bad economic example. They are locally owned, corporately funded on an international level and in a niche industry. It's similar to the COPOL example that was brought up earlier. Also, there are so few examples that bringing them up pretty much proves my point. Our coal mine can't get off the ground because they don't have the economic tools required to make a mine work in this area. Using Protocase as an example of the possibility of business success on Cape Breton island is similar to using the Queen as an example of a successful monarch running a free society. It's technically correct, but misses the point.
Carl Jessome Follow Me 2019-01-12 12:09 PM AST Reply 3 0 If Nova Scotia lost Cape Breton they would no longer be the "have not" province to the extent they are now. Analogy time: We are the poor cousins living in the run down guest house. The rich cousins get money with the idea that they are to use this money to fix up the guest cottage and improve our overall lot in life. They throw a coat of paint on and straighten the shutters. The rest of the money is used on the main house and improving their already much better way of life. And the cycle continues. Brian Linden Follow Me 2019-01-12 12:13 PM AST Reply 0 0 In that analogy, I don't feel bad for the "poor cousins" AT ALL. They are living for free off of someone else's dime, they should be thankful for whatever they get, whether that be a brand new, shiny guest house with all the fixings, or a new coat of paint that brightens the place up again. It's not our cousins responsibility to take care of us, it's our responsibility to take care of ourselves. Bill Fiander Follow Me 2019-01-12 12:19 PM AST Reply 1 0 Carl's analogy did make reference that the money was to be used for the poor cousins. Brian Linden Follow Me 2019-01-12 12:25 PM AST Reply 0 0 The existence of evil or the will to do evil acts (stealing for instance) does not relieve the acted upon of their responsibility to do for themselves. The cousins are responsible for their own livelihood, to work for their prosperity and to do the things needed to make themselves successful. The troubles of the failed do not rest on the backs of the successful. Carl Jessome Follow Me 2019-01-12 12:28 PM AST Reply 2 0 Brian, the money is given to Nova Scotia to distribute to poorer, less fortunate communities, to help them help themselves. Bill Fiander Follow Me 2019-01-12 12:30 PM AST Reply 2 0 I do know we have to make a go of it here in Cape Breton ourselves. So called 'handouts' alone are not going to work. (I've read your latest piece and agree with it to a certain extent.) Equalization dollars, however, as I see it, are not being used in this area as they were intended to. Brian Linden Follow Me 2019-01-12 12:42 PM AST Reply 0 0 Figured I'd repost this from the facebook comments: Above response: "The existence of evil or the will to do evil acts (stealing for instance) does not relieve the acted upon of their responsibility to do for themselves. The cousins are responsible for their own livelihood, to work for their prosperity and to do the things needed to make themselves successful. The troubles of the failed do not rest on the backs of the successful." Now, let me expand: Our troubles are our own, we have no way to hold the provincial government accountable, that's our reality. "Do not concern yourself with those things you have no control over, for they blind you from the things you do have control over." We are able to build industry, we are able to start businesses, we are able to give tax breaks to first time land owners, we are able to change and manipulate our local property tax system. There are all kinds of things we can do locally, things we have control over, but we want to put all our problems at the feet of the people in Halifax. These are the principles most business owners operate under, and so, the thing I don't have control over is the greater attitude of the community I live in (if they won't listen to me). What I do have control over is the community I live in, which is why our more inventive and conscientious are moving away and creating industry for other communities. On a personal level, I've been both the cousin in the guest house, and the cousin in the main house. If you are living off the kindness of others, you show gratitude for whatever you get, regardless of if it what you believe you deserve. Bill Fiander Follow Me 2019-01-12 12:57 PM AST Reply 3 0 'And the meek shall inherit the earth" sort of thing. Of course if we sit back and wait for equalization dollars to be shared out in what we feel is fair, we may unfortunately be waiting a long time. In the meantime, of course, we have to do everything we can to make a go of it. If there is a business opportunity here, pursue it and try to be successful. I think it would be biting of your nose to spite your face if you left here, and a chance to be successful, because you weren't happy with how some people think. Brian Linden Follow Me 2019-01-12 2:11 PM AST Reply 0 0 It's not just how people think, it's the politics of the area, and the attitude of the people towards business. That's the basic mission I've been on lately, I can't think of a way to make my company succeed in this area without A) Attracting new talent to the island. B) Political reform making it easier to open business and re-zone land for different types of business at the municipal level. and C) better and more effective methods of transport off of the island. If these things don't change, or don't at least get on the road to change, it's not a matter of cutting off my nose to spite my face, it will be a matter of: having to go where the thing I want to do is possible. Carl Jessome Follow Me 2019-01-12 12:25 PM AST Reply 3 0 Thank you for getting the analogy Bill. Some people won't understand. Fortunately I made it for people who get it. Like the old adage goes: I can explain it to you, but I can't make you understand it. Thanks. Brian Linden Follow Me 2019-01-12 12:33 PM AST Reply 0 0 I get the analogy, I just disagree with it.
Lloyd Allan MacPherson Follow Me 2019-01-12 3:07 PM AST Reply 3 0 Let's say you, Brian are satellite location "A" and Halifax is a retail centre "B" (given more responsibility on oversight and distribution) and head office is in Ottawa. Let it be stated that it's important that both A and B remain in their current markets because both locations need a visible presence in their geographic location. So head office recognizes that based on market trends, location "B" might need more of a helping hand to cover costs and to have all their satellite locations remain viable in that market. They send this support through location "B". Every location agrees this is needed because of the strength of the business (a common trend in national brands). Head office gets a call from "A" stating the support needed and allocated for location "B" has apparently stopped. When it is investigated, it is realized that despite head office providing the necessary support for location "B" and satellites, "B" is using it instead to strengthen their own business unit. Upon further inspection, head office realizes that this has been going on unchallenged for some time, in various national locations with satellites being at the centre of the misappropriation. Head office then realizes that all businesses responsible for the distribution of this support have been using a clause in the operational procedures that allows them to make it very difficult to track, therefore almost impossible for human resources to identify the guilty parties without exposing the greater organization as complicit to the problem, based on their own error. As business owner of location "A" - would you take any shred of advice you've given in this round-about response? I really would like to know how you'd manage this for 'head office' if selected to do so. I'd also like to know how you'd expose this from satellite location A, if in fact 'head office' decided to cover it up. Brian Linden Follow Me 2019-01-12 3:26 PM AST Reply 0 0 Bad comparison, politics can not be run as a business because their is no trade of goods or services on the individual level for revenue generated. Because of this, the revenue transfer can't be looked at in the sense of an owners or boards liquid transfer to support a dropping or loss-full satellite facility. Though that is the most cogent argument presented in reference to Equalization I've heard, and made me think a little harder about the topic than usual. So, to answer the question itself, if this were to happen in any organization I held a financial stake in, I would immediately fire every layer of management that touched the problem, whether they were liable or knowing, or not. I would then redistribute funds from upcoming salaries and reclaim all severance packages to make up for loss as best as possible. After which, new policies would be created to ensure the same thing didn't happen again. However, there is a second issue with your argument, in the case of equalization, it's the stake holders themselves that are redirecting the funds, not the employed management. So, in this case, because a company is an authoritarian organization (all decisions are made by the owners, all direction chosen by the owners, and all liability given to the owners), the stake holders have every right to do with their money as they please, even if that means a leg of their company falls off. Brian Linden Follow Me 2019-01-12 3:40 PM AST Reply 0 0 I'd like to add: If by head office, you mean "the shareholders or owners of the company", then I wouldn't expose them at all. Doing so would cost me my job, and it's their company to destroy as they please. If it's the owners of the company making the choices, then I have no right to interfere with their vision for their company (a company that is their property). Lloyd Allan MacPherson Follow Me 2019-01-12 3:52 PM AST Reply 3 0 Relaying 'equalization' to someone as business savvy as yourself within a real-life business scenario was perhaps my way of trying to have you understand from a 'management' point of view, where the NSEF gets their inspiration and drive. Management - people, resources, and finances - is fully represented in politics and business. So head office created the problem with an operational oversight in a document that serves to instruct the management procedure, and now you are firing everyone on the team. Good luck on your future pursuits Mr. Linden. Brian Linden Follow Me 2019-01-12 4:01 PM AST Reply 0 0 Any manager involved in the use of the clause that allowed them to immorally utilize company money would be immediately terminated. After which, anyone else who knew what was happening but said nothing would be terminated. Then, anyone who should have known but didn't would be terminated. All terminated for either: illicit use of company funds. Or: Incompetence leading to financial loss. You may not like it, but that is actually a pretty toned down response to that by the standards of corporate business.

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