News Release Archive


Premier John Savage, New Brunswick's Premier Frank McKenna and
Premier Brian Tobin, of Newfoundland and Labrador, spoke with a
group of journalists in Toronto today as part of their joint
efforts to aggressively promote the Atlantic region and the
advantages it can offer to the business community.

The three premiers said the new harmonized sales tax (HST) in
their provinces has made Atlantic Canada the prime business and
investment location in the country.

"The Conference Board of Canada and the Atlantic Provinces
Economic Council both share our view that the HST will have a
positive impact on the economy of Atlantic Canada," said Premier

"In Nova Scotia, we expect as a result of the HST, our provincial
gross domestic product (GDP) will grow by 0.8 per cent. As
provincial governments, we have accepted the challenge of doing
what we can to create an environment which will allow the private
sector to do what it does best --- create jobs ... that's what
harmonization does for us. Investments will be made and jobs will
be created," Premier Savage said.

Premier McKenna said that joined together, "Our voices are much
stronger and our message will reach more business leaders and
decision makers around the globe."

He said, "The HST is giving us a great competitive advantage in
the Atlantic region, and is perhaps the biggest single impact on
our economic prosperity of any measure in history."

"Business in other parts of Canada, and indeed outside, should
strongly consider investment in Atlantic Canada," said Premier

"We are here today to tell you that the HST will mean a fairer,
simpler and economically efficient tax system which will result
in substantial benefits for both business and consumers alike.
This is a win-win situation which we strongly feel that
businesses should pursue --- it's the Atlantic advantage,"
Premier Tobin said.

Under the new sales tax system, anyone setting up shop in Nova
Scotia, New Brunswick, Newfoundland or Labrador, will receive
full input tax credits under the new sales tax system. This, said
the premiers, will remove embedded taxes and result in a lower
cost of doing business, and lower prices for consumers.

They said that because businesses will be able to price their
goods more competitively, it will be particularly advantageous
for exported goods, which will be free of sales tax.

The Atlantic premiers told the Toronto audience that steps will
be taken to ensure that businesses inside and outside the
harmonized zone are treated equitably. In addition the cost of
complying with tax laws will decrease.

They said businesses will have one set of tax laws, rules and
regulations instead of the two which currently exist. This, they
said, will reduce the compliance and paper burden on business,
and allow business to concentrate on more productive activities.

The three provinces have cooperated in an "Atlantic Advantage"
advertising campaign in The Globe and Mail, The Financial Post
and Les Affaires to promote investment in the Atlantic region.


Contact: David Harrigan  902-424-6600

trp                     Nov. 19, 1996 - 2:55 p.m.