Still no timeline on rollout of Nova Scotia Loyal program, committee told

January 24, 2024

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Economic development campaign promises, now stalled or abandoned by the majority Progressive Conservative government, generated sharp questions at a legislative standing committee meeting Tuesday.

“In 2021, two major planks for economic development by the current government were the Better Paycheque Guarantee and the Nova Scotia Loyal program,” Fred Tilley, the Liberal MLA for Northside-Westmount, said of PC Party promises made during the summer 2021 election campaign.

“We’ve come to learn that the first one, the Better Paycheque Guarantee, which was designed to put more money into people’s pockets, has been cancelled,” Tilley said.

The Cape Breton MLA said it has been promised in the past that government was within months of announcing a date of implementation for the loyal program but “we’ve been hearing from stakeholders in the local food and beverage industry that they’ve not had any consultation and they don’t know how it is going to improve their sales, how it’s going to affect their bottom line.”

Tilley said those local industry players don’t know if they will have to pay for the program or if it will be paid for by the government.

“Can we have a specific date when this program will be implemented and have the conversations been happening with local producers?” Tilley asked.

Short on specifics

“I can’t give you a specific date today,” responded Scott Farmer, the deputy minister of the provincial Economic Development Department.

“There’s some more design work that continues around the Nova Scotia Loyal program, there’s been a lot that’s advanced on it, but there are some final decisions that still need to get made so I can’t commit to a time for you today.”

Premier Tim Houston introduced the Better Paycheque Guarantee idea on July 13, 2021, in his successful push to win the election.

Fred Tilley, the Liberal MLA for Northside-Westmount, says it’s time the provincial government came up with a rollout date for the long-promised Nova Scotia Loyal program. – Francis Campbell

The program was intended to raise workers’ wages and create more jobs by giving Nova Scotia companies the option of recouping up to half the corporate taxes they pay by applying to the province and complying with the condition that the money recouped be paid to employees.

In October 2023, the premier said he wasn’t sure the paycheque program would go forward.

The government said in June 2022 that the provincial buy-local (loyal) program had moved into its prototyping phase. That was to include a team visiting stores and markets across the province to research consumer behaviour and hear directly from Nova Scotians about the program pitched as a rewards plan to encourage more people to buy local.

At that time, the Economic Development Department said that nearly $700,000 had already been spent on the program.

Farmer said Tuesday that engagement on the program “has been extensive across the province,” including a consumer survey of 10,000 Nova Scotians, 100 in-person brand events, 24 retail prototyping activities that engaged 5,000 people and “dozens upon dozens” of other events.

“We don’t want to leave any stone unturned, and if there are voices that are feeling unheard we’d certainly like to hear those before the program is finalized,” Farmer said.

Long on design

Tilley said given the extensive consultations and information gathered, “it’s hard for me to believe three years in we’re still at the design phase of this program.”

He said that during the election campaign, Nova Scotians were told the loyalty and paycheque programs were ready to go.

Scott Farmer, deputy minister of the provincial Economic Development Department, speaks at a recent natural resources and economic development standing committee meeting in Halifax. - Francis Campbell — Scott Farmer, deputy minister of the provincial Economic Development Department, speaks at a recent natural resources and economic development standing committee meeting in Halifax. – Francis Campbell

“Day 1, it was going to happen,” Tilley said, asking if Farmer could provide even a rough estimate of when the loyalty program will be rolled out.

“How close are we, are we a month away, a year away or are we not going to see this program?” Tilley asked.

Farmer said it’s not his decision as to when the program will be rolled out.“In the coming months is what I can offer to you,” Farmer said.

“When I say design, it’s design of the final, there is an interim brand and if anyone cares to go on the Instagram account, you can see lots of activity has occurred and lots of places where Nova Scotia Loyal has been promoted.

“There has certainly been an aspect of ‘learn by doing’ with it.”

CEBA conundrum

Gary Burrill, the New Democrat MLA for Halifax Chebucto, wanted information about the Canada Emergency Business Account (CEBA) loans from witnesses appearing before the standing committee on natural resources and economic development who were to discuss rural economy supports.

The federal loan program, with a maximum of $60,000, was provided to keep businesses afloat during the pandemic restrictions.

Businesses were expected to pay the remaining principle minus a forgivable portion by Jan. 18, 2024. After that date, if the principle was not repaid, businesses would lose the forgiveness portion and incur a five per cent per annum interest until the loan was repaid.

Saying a disproportionate number of affected businesses operate in the hospitality and tourism industry, Burrill wanted to know the number of Nova Scotia businesses from that sector that will be hurt.

Gary Burrill, the NDP representative for Halifax Chebucto, says a disproportionate number of businesses affected by CEBA loan repayments operate in the hospitality and tourism industry,l - Francis Campbell — Gary Burrill, the NDP representative for Halifax Chebucto, says a disproportionate number of businesses affected by CEBA loan repayments operate in the hospitality and tourism industry,l – Francis Campbell

Farmer said a December 2023 survey by the Canadian Federation of Independent Business found that 35 per cent had paid their loan in full, seven per cent had repaid some and had planned to repay in full by the Jan. 18 deadline, and 34 per cent were planning to repay by the deadline.

“That’s in the order of two-thirds of businesses saying they planned to (repay), which leaves a third who will be in a position where they either had to refinance or have their CEBA loan flip into a three-year term loan and five per cent interest rate,” Farmer said.
“They can pay the principle at the end, but the five per cent interest, when it kicks in, will be a new cost for them.

“That’s an impact.”

Justin Huston, deputy minister of the Communities, Culture, Tourism and Heritage Department, said he hadn’t heard a lot from tourism businesses about the CEBA loan.

“This is not one of those issues that is coming up on a regular basis,” Huston said of consultations with business about tourism strategy.

“I do think that they have been voicing that directly to the federal government because that is who the loan is through but we’re not seeing it as having a huge impact on the sector.”

Huston said his department does not have broad or percentage numbers of tourism businesses in Nova Scotia that have been affected by the CEBA loan repayment schedule.