Higgs promises major shakeup at Opportunities New Brunswick in state of the province address

Premier Blaine Higgs has unveiled what he calls a new direction for Opportunities New Brunswick, the province's lead economic development agency.

The premier used his second state of the province speech to confirm that the Crown corporation's CEO, Stephen Lund, won't be renewed now that his five-year contract is ending.

And to chart a new direction for the organization, he said the province consulted experts, business leaders and economists to set a new course for ONB.

"What we heard, essentially, is that we need to embrace a pro-growth agenda now," he told a crowd of business and community leaders gathered at the Fredericton Convention Centre.

Boosting immigration

That means finding a way to fill an expected 120,000 jobs that will become vacant in the next decade and pushing the federal government to increase the maximum number of immigrants the province can take in from 7,500 to 10,000 per year.

Higgs floated the idea of trying to grow New Brunswick's population to one million people by 2040, an increase that he says would boost the province's gross domestic product by $15 billion and add 100,000 jobs.

The embrace of Opportunities New Brunswick, and the premier's effusive thanks to Lund, marks a change for the premier.

As opposition leader, he denounced corporate subsidies and called for the CEO's firing over unimplemented recommendations made by the auditor general in the wake of the Atcon loan fiasco.

But Thursday night Higgs praised Lund "for his steady commitment to New Brunswick's growth, and for his role in helping to shape the future of ONB." Lund was hired by the previous Liberal government in February 2015.

New vision

Higgs said an overhauled ONB will play the lead role in implementing his vision of economic growth driven by the private sector and unencumbered by government bureaucracy, generous subsidies and political interference.

"Government actions can strangle us. They can drag us down. They can suffocate us with high taxes. They can drive people away to work in other provinces. And they can make our businesses uncompetitive by driving up cost," he said.

"It is a vicious cycle, and the worst is when the government has to step in to prop up industry sectors that became uncompetitive because their cost to operate climbed too high."

Since taking power in 2018 Higgs has spoken often of shifting ONB's focus. The organization's budget was reduced by $7 million in the first Progressive Conservative budget and 24 positions were eliminated last June.

Higgs said the agency will become the single point of contact for potential investors, using a standardized evaluation process that is transparent and "free of political interference."

The organization's role will be to guide businesses through the regulatory process so it moves more quickly. It will also open an office in Europe so that New Brunswick companies can grow and diversify their exports.

Higgs said the province will open another overseas office in India, this one to attract skilled workers and investors.

The PC government signalled a shift from job creation to employee recruitment last November when it said its 19 regional economic development offices would shift part of their focus to helping employers find skilled workers to fill vacancies.

Higgs said last night the provincial government will also become "a model user" of new technology to set an example for businesses adopting new tools and will launch a new marketing campaign to promote New Brunswick's brand.

"We need to talk about what is great about this province and there is plenty," he said. "We will showcase our success stories, especially those companies that are embracing immigration, exporting globally, and adopting innovation to drive productivity."

NB Power and health care

Higgs also signalled new moves in other areas, saying he has asked NB Power to develop a plan to reduce its level of debt without affecting power rates.

And he confirmed that he'll be announcing major changes to the health-care system within weeks to address an aging population and labour shortages.

He also said the province will use some of the money it's saving thanks to lower interest payments on a smaller accumulated debt to address addiction and mental health issues.

"There are no easy answers, but our government is committed," he said. "This is an issue that can't be ignored."