Stainless Steele - Atlantic Business Magazine
Transcription
Stainless Steele - Atlantic Business Magazine
PUBLIC POLICY Stainless Steele Nova Scotia’s money man says his government won’t lose sight of balanced budget in its quest for re-election By Stephen Kimber “It’s a great day to be a Jets fan,” Graham Steele beams. It’s shortly before 8 a.m. and – if this is February 24th – we must be at the Holiday Inn in Stellarton. Steele, Nova Scotia’s finance minister, has come here for a breakfast meeting with the New Glasgow-Pictou County Chamber of Commerce. It’s the sixth of nine “dialogue sessions,” 15 “stakeholder meetings” and three community group gatherings he is staging as he criss-crosses the province, asking Nova Scotians for their input in the lead-up to his next provincial budget April 3. Last night at the hotel, Steele did four local media interviews. Later this morning, on his way to Port Hawkesbury for a luncheon session with the Strait Area Chamber of Commerce, he’ll stop in at CJFX-FM radio in Antigonish for a sit-down interview with its news director. Though the real subjects of all these sessions are the still-woeful-but-becomingless-so state of the province’s finances and the important question of how best to 38 | ATLANTIC BUSINESS MAGAZINE | May/June 2012 bring the fiscal state “back to balance” and better, Graham Steele can’t help but begin this morning by crowing that his beloved Winnipeg Jets had squeezed past the Tampa Bay Lightning the night before, keeping their flickering NHL playoff hopes alive. Steele, a Winnipeg native, was a hockeycrazed kid back in the 1970s during the Jets previous NHL incarnation. When a local radio station staged a sports trivia contest in which the prizes were tickets to upcoming games, Steele would plant himself by the telephone, surrounded by his collection of hockey trivia books, and eagerly wait for the announcer to ask a question. He won so often he eventually had to disguise his voice and use other people’s names when he called. Steele doesn’t mention his trivia prowess this morning, but few among the three dozen local business and community leaders attending would probably be surprised. There is a nerdy, earnest yet cheerful obsessiveness to Steele. And he is clearly the smartest person in any room he is in. “I’m not here to make a speech,” he says, easily shifting gears to the matter at hand. “I’m here to hear what you have to say.” But then, of course, he makes a speech; his promised 15-minute Powerpoint presentation “to lay the groundwork” stretches into 30. There is a lot to say. When Nova Scotia’s New Democratic Party swept into office in June 2009 – the first time the NDP had ever formed any sort of government in Atlantic Canada, let alone won a majority – there were great expectations, many of them created by party leader Darrell Dexter’s rosy, read-my-lips, new-programs-balanced-budget-no-taxincreases mantra. There were just as many trepidations, fueled not only by exactly those promises but also, in some quarters, by the stunning reality that conservative, mainstream Nova Scotians had actually elected a “socialist” government. Once in office, however, the new NDP government didn’t simply do a 180-degree turn on the economic promises it had PORT OF HALIFAX (N.S.) out “something he could with campaigned on; it threw in a couple of double THOUGH BORN AND in Winnipeg 2010 cargo: over 9.5 RAISED million metric tonnes, comprised primarily ofpractical” containerized cargo do (seafood, two undergraduate degrees. Law school – back flips for good measure. of Scottish immigrant parents, Steele saysHalifax newsprint, clothing, manufactured goods). handled 435,461 TEUs (twenty-foot equivalent units)formative in 2010, and has the capacity for 1.4 millionwhere TEUs.he There is room to his expand to a 2.5-million could follow fascination with The new government – like new his most experiences came during capacity if needed. father’s year-long what he calls the “laws of government” – governments of every stripe these days – his TEU pharmacy-professor seemed an ideal fit. He considered schools immediately commissioned a consultant’s sabbaticals – to Switzerland when he was Main clients: Twenty-one container shipping lines call here: ACL, AFL, China Shipping, CMA CGM, in Toronto and Halifax, Dalhousie report to show how badly the previous in grade four and North Carolina in grade COSCO, Eimskip, Hanjin, Hapag Lloyd, K Line, Maersk, Melfi, Mitsui OSK,choosing Nirint, NSCSA, NYK, in Ming largeand measure because “I’d never been administration had mangled the province’s 11. Discovering a Europe where Wilhelmsen, everyone Yang Oceanex, OOCL, TMSI, Wallenius Zim. to this part of the country.” His plan, he finances, creating the mess they were left didn’t speak English and a North Carolina Two 70-acre terminals as well asadmits, bulk, breakbulk terminals withget laydown was to and get ro/ro his degree and out, to clean up and, of course, forcing them to thatFacilities: wasn’t anything likecontainer Manitoba “opened areas capable of handling any type of cargo. By 2012, the Port of Halifax will have seven super poston his way to a successful career somewhere declare all previous promises null and void. my panamax eyes to the world,” and encouraged his cranes and deep berths to accommodate the largest ships afloat. else. He even did an internship at Blake, The consultants obliged, concluding that, love of travel. Future plans:in “The in place as a keyaNorth American Casselsthe&port Graydon, powerful Bay gateway Street if nothing changed, the province was on a His interest thefundamentals wider worldare was also to advance and we to work our partners law firm. to see that vision through to the end.” collision course with reality. By 2012-13, the stoked by will a continue Winnipeg Freewith Press paper and stakeholders – Michele Peveril, spokesperson, Halifax Port Corporation. But somewhere along the line, he met a annual deficit would be an unsustainable route; he says he “managed to read the fellow student, Tilly Pillay, a South African$1.5 billion while long-term debt would top whole paper” each day while he folded born woman whose family had moved to out at a future-defying $17 billion. copies for home delivery. PORT OF BELLEDUNE (N.B.) Nova Scotia when she was nine. They fell A follow-up report by a blue-ribbon ”I’m not sure I can explain why now,” he in love and decided to make Halifax home. panel of economic experts recommended allows with a smile, the young Graham 2010 cargo: total tonnage was 2.15 million metric tonnes, comprised of bulk but commodities (such as coal, zinc, wood pellets, etc.), liquid and project cargo. Today, he and Pillay – who practices law the government commit to bulk completely Steele also became a Young Liberal. with the province’s Justice Department – eliminating its annual deficits by 2012-13 “Somewhere,” he even has a John Turner Main clients: NB Power and Xstrata Zinc as well as tenants such as Shaw Resources, S&B Minerals have two children. and “implement Youth T-shirt from the party’s June 1984 and Groupe Savoie. tax increases, introduce “Nova Scotia,” Steele likes to point out, significant spending restraint measures and leadership convention. Modern equipment: Eastern growth Canada Stevedores, terminal operators, consistently politician-like, “is the place I chose to live.” focus more on economic to achieve one of Belledune’s But by then, he was on his way to Oxford invests in new equipment, including reach stackers, 150University tonne capacity speed But he didn’t choose what he saw as Nova this goal.” forcrawler two cranes yearsandinhighThatcherconveyors. Scotia’s peculiar brand of “tribal politics. The man Premier Darrell Dexter charged era England as a Rhodes Scholar, where People here voted Liberal or Conservative, with PaulBelledune “Dr. No”Port Martin to his his focusthewould not benext on topolitics with Futureplaying plans: “The Authority has just increased land available or on the not because of ideas but because of the way genial, Jean Guy” a partisan “P” on new loftier ideas We about terminalsoptimistic by 100 per cent; there“Regular is now a total of 88 acres available as wellbut as two terminals. plan to usewas the Graham new terminals, the new modular fabrication facility and be anpublic anchoraffairs.” of the economy in in which their parents voted, and that went Chretien Steele. “government and northern Newwell. Brunswick” – Jenna Doucet, director of marketing, Belledune Port Authority. back generations.” He chose In 1986, he returned to Canada to figure A B You have dreams about the success your business will have. 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To find out if East Hants is the best decision you'll ever make, call 1.888.883.4355 or email [email protected] success.easthants.ca Online extras: atlanticbusinessmagazine.com | 39 Online extras: atlanticbusinessmagazine.com | 23 Notes Whether you’re bringing electrical service to a public arena, a health clinic, a restaurant or a country home... 52-member legislature. “There was room for ideas in the NDP,” Steele explains, insisting he isn’t “highly partisan, though I can be when I have to.” Stephen McNeil chuckles when I quote Steele’s words to him. “I apologize for laughing,” Nova Scotia’s Liberal opposition leader says. “But Graham was highly partisan in opposition and he’s just as partisan now that he’s in government.” As a corporate lawyer in the early nineties, however, Steele managed to keep his political involvement low key, even lower after he joined the provincial Workers’ Compensation Board as an in-house lawyer in 1994. The last thing the Board – which was trying to cleanse its reputation as a refuge for patronage appointees Job – needed was for one of its key 1911-145A staff toFilebeName seen1911-145A as a partisan. Atlantic Business Journal 4.625x7.125 But after Steele returned to school for his Last Modified BW.indd master of law degree in 1997, he ramped up Prev. Users 2-6-2012 2:57 PM his political activities, campaigning openly Black Client Sommers for a successful NDP candidate during Bleed None the party’s breakthrough 1998 provincial election. Trim 4.625” x 7.125” None In that Live election, the party leapfrogged None the ToriesScale to become the official opposition and None came within one seat of forming a minority government. That opened up new behind-the-scene party jobs, including one Fonts & Placed Graphics as director of research. Steele, who had Fonts completed the course work for his master’s Myriad (Bold, Roman, Italic), Helvetica Neue (53 Extended, 83 Heavy Extended) degree but not his thesis and had “run out of Links money,” applied. He was hired. winco.tif (Up to Date; Gray; 9635 ppi), generator_greyscale.psd (Up Two years later, popular Halifax MLA to Date; Gray; 251 ppi), 30kW-150kW_System_greyscale.psd (Up to Date; Gray; 822 ppi), Sommers_Logo_BW.eps (Upand to Date) Eileen O’Connell died of breast cancer, Steele won her seat in a bye-election. Initially, he admits, “I didn’t like campaigning. I felt like I was bothering people.” But he soon realized “nothing that happens on the doorstep is personal. Was the person indifferent? Were they angry? You leave the doorstep with a useful piece of information. Now, it’s one of my favourite parts of the job. There’s no better way to spend time.” Which is one reason why – after he was appointed finance minister in 2009 – he was keen to shake up what he saw as an entrenched pre-budget non-consultation consultation process. “The minister would receive six or so interest groups, and then make a few speeches to the larger chambers of commerce and call that consultation,” he explains. “I wanted to do something different.” Steele acknowledges there was resistance – “I shouldn’t say that” – from within the finance department bureaucracy to his idea for broader consultation. But he is quick to describe that first year’s road show, during which he met with 19 different groups from Whitney Pier in Cape Breton to Yarmouth ...Work with Sommers to be sure your project gets the standby power solution it really needs. • Canada’s best-built generator systems for 75 years Sommers systems from 10 kW • toEasy-to-buy 2000 kW • Rental units available for immediate service installation, service & parts throughout • Nearby Atlantic Canada • Over 200 systems in stock for expedited lead times 707 Malenfant Blvd Dieppe, NB Canada 1.800.690.2396 www.sommersgen.com Authorized Distributor 40 | ATLANTIC BUSINESS MAGAZINE | May/June 2012 Inks “was about people, about who they knew. There wasn’t a single word about ideas. I just sat there for an hour and said not a single word.” But as he eventually settled into life in Nova Scotia in the early 1990s – Steele had joined Stewart McKelvey, the city’s largest corporate law firm – he realized he needed an outlet for his own ideas about government and public policy. He remembers getting a flyer in his mailbox one day from his district’s freshly elected NDP MLA, Robert Chisholm, announcing a party meeting. Steele went and, in 1991, joined the NDP. At the time, the party held just three seats in the Setup An incident early in his time in Halifax helped cement his aversion both to old-style politics and also to the province’s old-line political parties. To help make law school ends meet, Steele had taken a position as a residence don at the nearby University of King’s College. One day, the university’s then-president, John Godfrey, invited Steele (whose time as a Rhodes Scholar had given him a certain campus cachet) to the president’s lodge to chat informally with two of the province’s best known political partisans, former Tory MP George Cooper and soon-to-be Liberal MP Mary Clancy. “The whole conversation,” Steele recalls, “ and even hosted a province-wide video conference session with Acadians, as “the single best, most enjoyable part of my job and the part of which I am proudest. I heard from groups that were never heard before instead of the same people all the time. It widened the democratic process.” Not everyone agrees. Liberal Opposition leader Stephen McNeil, for example, who has spoken to many of the same groups as Steele (he was scheduled to address the New GlasgowPictou County Chamber the month after the finance minister) describes Steele’s traveling road show as a “charade,” based from its beginnings on contrived numbers and a false premise designed to lead to a pre-determined conclusion. “It was, ‘Pick your poison. Which programs do you want me to cut? Or which taxes do you want me to increase?’ The government’s real budget plan was set long before most of those consultations took place.” Even some on the left tend to agree. “We certainly had a serious and engaged exchange with the minister, and various officials within the finance department,” explains Christine Saulnier of the Canadian Centre for Policy Alternatives, a left-leaning think tank whose “alternate budget” champions targeted spending and a longer time frame to balance the budget. “I think he [Steele] listened, but has framed the problem and the solutions in a way that precludes our proposals.” Perhaps surprisingly, given initial expectations, business has been happiest with Steele. When the NDP was first elected, allows Valerie Payn, the president of the Halifax Chamber of Commerce, “some people were quaking in their boots.” But, she says, business has been generally satisfied with the NDP’s performance so far, particularly with Graham Steele. “Actually, he’s been quite good,” says Payn, who has worked with finance ministers from all parties during her 20 years at the I didn’t like campaigning. I felt like I was bothering people.” But he soon realized “nothing that happens on the doorstep is personal. Was the person indifferent? Were they angry? You leave the doorstep with a useful piece of information. Now, it’s one of my favourite parts of the job. 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If you ask Steele to name one new, innovative idea Communications he picked up during plorenet Inc.,the a consultation process, he demurs.company, “It’s not Woodstock, N.B.-based aboutsent coming up withonsome one has ViaSat-1 its idea way no aboard a ever heard of,” he tells me. “It’s about giving Proton rocket from a site in Kazakhstan people the October. chance to A be second heard, tolaunch be part is of this past the process.” already planned. Together, these satellites also, to be allow fair, about the willIt isreportedly for shaping previously debate. unavailable speed and bandwidth to rural, remote areas of Canada. According to Industry Canada, roughly “THIS THEofTHIRD YEAR of our four-year 94 perIScent Canadian households in ‘Back had to access Balance’ program,” connections Steele tells 2009 to broadband his local terrestrial business audience thisBut morning, through networks. while “and the third were year that been remote back to urban centres wellI’ve served, Pictou County as part were of our sections of the country not.pre-budget Today, as consultations.” much as 22 per cent of rural households year, broadband in addition connectivity to the face-to-face areThis without and the benefits provides. sessions, theitfinance department has gone According study you-be-theby SANE online with toana recent interactive, Consulting Inc., an Alberta-based system finance-minister website (backtobalance.ca) analysis network engineering that allows and voters to tinker with everything firm: “High-speed broadband lays the from lowering the HST to cutting payments foundation increasing taxes productivity to doctors for to increasing on the and stimulating economic wealthy – and see instantlydevelopment.” the impact on report “With theMoreover, province’s the bottom line. states, By budget day, better connectedness, people have budget better 3:57 thePMsite had received 575 website access to distant friends and family, more submissions. education andyear work and start oftenwith the “The first weoptions said, ‘let’s on-demand nature of broadband allows the facts,’” Steele explains. “We said to people better take control ofLet’s their lives, people, to ‘Look, this can’t go on. look at to and Where’s play according to their own thework options. the consensus?’” That schedules.” shaped the province’s own plan to eliminate humble theFrom deficitits in four years, home which isinon rural track New Brunswick, Xplorenet has broadly been and which Steele claims is still quietly cornering the market forquestions remote supported by the public. The key connectivity in recent years, having for this year, he says to his audience this purchased 100 per cent of the Canadian morning: “Should we continue to stick to the capacity ofwhat something called the Ka band. plan? And comes after?” In What an interview with CBCtempted last fall, comes after, onethe is also to company CEO John Maduri said, “By ask, for Graham Steele, now Nova Scotia’s the end of 2012, we’re going to be in a most powerful politician after Darrell Dexter? position to say that 100 per cent of Canada Does he have higher political ambitions, is covered with fast, reliable, high-quality perhaps to be premier himself? His answer broadband.” is quick – and clear. “I know myself and I’m The satellite launch coincided with not capable of political leadership, the kind Xplorenet’s completion of a 4G ground of leadership that articulates a vision and can station near Fort McMurray, Alberta. inspire people,” he tells me later. “My ability “As Europe, the U.K. and the U.S. have is to work in a supporting role to those true shown, the only practical way to get political leaders and help them achieve that real broadband to everyone, regardless vision.” of location, is via satellite,” said senior Which is whatBill he’sMacdonald. doing today. “And 4G vice-president Standing in front of hisinaudience satellite is a game-changer terms ofthis its morning wearing a wireless headset ability to deliver speed and capacity.” microphone, Steele, more professor than —Alec Bruce politician, employs a series of colorful X Halifax: 422-6290 Moncton: 855-0855 Toll Free 1-800-667-8468 Canadian Condominium Institute Xplorenet your facts.” promises satellite The larger perhaps is, did the launch will question bring internet consultations change any of Steele’s budget service down to earth charts and graphs to highlight his own government’s successes at managing expenditures – there is no mention of his own party’s previous election promises – and lay out what he sees as the possibilities and perils moving forward. Steele’s success can be measured in many ways, not least by the fact he’s managed to increase the province’s HST by two per cent, impose across-the-board budget cuts on school boards, rein in spending by health districts and hold most public sector wage increases to one per cent – without provoking the kind of public outrage one might have expected. So far, at least. Graham Steele has, without question, shaped the debate. At the same time, thanks to a combination of cutting departmental spending and the good fortune of continuing low interest rates, he’s managed to reduce – shades of Paul Martin – this year’s projected deficit of $390 million to “only” $261 million. The goal continues to be to balance the budget in 2013-14. Which will, of course, just happen to coincide with the end of the NDP’s first mandate. That is the inevitable point where a government’s policy of restraint inevitably meets a political party’s prospects for reelection. Nova Scotia’s NDP government wouldn’t be the first to squander four years of belt tightening and budget balancing in an orgy of pre-election spending. Graham Steele is careful when I ask if that will happen with his government. “It’s an interesting question,” he allows. “And I guess the proof will be in the pudding. But I don’t think so.” He says the fact most Nova Scotians have bought into his government’s back to balance plan for the past three years means they “would look dimly on a government that does one thing for three years and then changes course in the fourth year. You can earn more respect by being steady, meaning being steady all the time; thoughtful, meaning thoughtful all the time; and disciplined, meaning being disciplined all the time.” If his colleagues do become tempted to begin paving everything that moves, he adds, “all they need to do is remember what happened to the last government in Nova Scotia.” That Tory government lost office in spite of attempting to “put icing on everyone’s cake [in the 2009 election]. If that method worked, they would have been returned to office with a huge majority. But they weren’t – because that’s not what people Get No matter what – no matter where. want, not what they expect from us.” The proof will be in the pudding. And the icing. ON APRIL 2, 2012, the night before Graham Steele was to deliver his budget, Premier Darrell Dexter pre-empted his finance minister with the good news that, starting in July 2014, the province would begin rolling back the much-loathed two per cent increase in the HST it had tacked on in 2010. The next day, Steele formally announced the province was already doing so well he had been able to lard in some immediate, if modest tax relief. His budget increased non-refundable personal income tax credits, hiked the affordable living tax credit, cut the small business tax rate and eliminated the large corporations tax. Steele even slightly reduced a previously announced three per cent reduction in health care spending. And this year’s projected $211-million deficit, he said, is still on track to become a $15-million surplus next year. “With continued discipline on the spending front, some improvements in revenues, and smart, sensible decisions, we’re on target.” Icing with your pudding? | ABM to Get it there. Get it there through the Port of Halifax: reliably, effectively and efficiently. HalifaxGetsItThere.ca | 902.426.2620 Online extras: atlanticbusinessmagazine.com | 43