News release

Cape Breton Regional Municipality Benefits From Nova Scotia

Premier's Office

PREMIER'S OFFICE/TREASURY/POLICY BOARD--Cape Breton Regional Municipality Benefits From Nova Scotia


The Cape Breton Regional Municipality (CBRM) has 170 million reasons to support its current relationship with the Government of Nova Scotia.

Energy Minister Cecil Clarke, on behalf of Premier John Hamm and Treasury and Policy Board chair Michael Baker, released today, March 19, the first comprehensive expenditure overview of provincial activities in the CBRM. The analysis showed that for fiscal year 2002-03, the most recent year available, the Nova Scotia government contributed $170 million more in the CBRM than it collected in revenue.

"For the last three years, Nova Scotia's growth strategy has recognized the very specific economic challenges and opportunities facing the communities in CBRM," said Mr. Clarke. "That's why, as a provincial government, we continue to live up to and exceed our financial obligations to the people of CBRM during a period of major economic transition."

Based on data from CBRM's own governance study, the municipality generates $688 million in revenues to the provincial government. The cross-government overview of expenditures directly attributed to CBRM shows total provincial spending at $858 million.

The top six departments and agencies in spending are:
Department of Health: $280.6 million Community Services: $122.2 million Department of Education: $107.26 million Service Nova Scotia and Municipal Relations: $30.3 million Sysco demolition, cleanup and employee pensions: $28.8 million Transportation and Public Works: $24.3 million

Mr. Clarke also noted that, of the $20.8 million spent by Nova Scotia Economic Development in fiscal year 2002-03, $6.3 million was invested towards projects and activities in the CBRM.

"With about 12 per cent of the population, CBRM received 30 per cent of the investments made by Nova Scotia Economic Development," said Mr. Clarke. "That's the level of support this government has for creating the climate for jobs and growth in the CBRM."

Mr. Clarke said that recent declarations by CBRM Mayor John Morgan about an economic crisis in the municipality due to a lack of support from the federal and provincial governments are not reflected in fact. He added the provincial analysis likely understates direct provincial spending in CBRM, because it did not include such direct costs as long service award payments and medical insurance premium payments to retired civil servants and teachers made annually.

"The problems in the Cape Breton Regional Municipality are clearly not due to a lack of provincial dollars," said Mr. Clarke. "The problems in the CBRM can only be overcome through strong leadership, with all governments working together, in concert with the private sector, to transform our regional economy into the powerful force we know it can be. I encourage the mayor and council to accept Premier John Hamm's invitation to work with me, and our partners in the federal government, to make lasting, positive improvements for our citizens."