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Nova ScotiaAnalysis

Is Stephen McNeil's concern over a 'business chill' a legitimate fear?

In response to a lawsuit filed Monday by the PC caucus, Nova Scotia Premier Stephen McNeil said his political rivals were sending the wrong message to the international business community. But a Dalhousie University economist says any impact from the legal action would be too small to measure.

Premier's comments are 'sort of boogeyman politics,' says Dalhousie economist

Nova Scotia Premier Stephen McNeil said the court action will send 'a chill' through the international business community. (Craig Paisley/CBC)

First thing Monday morning, Nova Scotia Progressive ConservativeLeader Tim Houston invited reportersto record his walk to the Law Courts in Halifax to file papers he hopes will eventuallypry loose details of the deal Bay Ferries has with the province.

The move came roughly a month afterthe deputy transportation minister toldthe partyand two news organizationshe would not be abiding by recommendations fromNova Scotia's information and privacy commissioner to release those papers.

Houston's walk, court papers in hand, was designed to keep the media spotlighton his party's most recent knock againstthe governing Liberals:secrecy.

The Official Opposition's "What Are The Liberals Hiding?" campaign was front and centre at the PC's annual general meeting in Halifax last weekend.

The Liberal caucus counterattacked, calling the legal action "a political stunt" and warning Houston was "playing politics with Nova Scotia'seconomy."

Nova Scotia Progressive Conservative Leader Tim Houston appears outside the Law Courts in Halifax on Monday. (Jean Laroche/CBC)

Speaking to reporters Monday afternoon, Premier Stephen McNeilfocused on the possible economic consequences of the fight over the Bay Ferries documents, saying it sends the "wrong message" to businesses.

"What the Conservative Party and Tim Houston are saying to private industry globallywho are looking at North America, including this city, [is]...you potentially run the risk of being taken to court over proprietary information," said McNeil.

"It will send a chill [to]people ...looking to do business in this province."

'Boogeyman politics'

But a Dalhousie University economistsuggeststhe chill would barely rate a shiver to anyone doing business internationally.

Prof. Lars Osberg teaches economics at Dalhousie University in Halifax. (Submitted by Lars Osberg)

"It's going to be pretty marginal and not detectable in real data," said Lars Osberg. "The international business community has a lot of uncertainties to worry about these days from trade warsbetween United States and China, the priceof oil,Brexit.

"There's lots going on in the international business community that's way, way bigger than this."

Osbergcalled the premier's warning of potentially seriousconsequences "boogeyman politics" whereMcNeil is trying to "scare the electorate with a dire outcome."

In an unrelated case, the day after the deputy transportation minister said the Bay Ferries documents would not be released, a Nova ScotiaSupreme Court justice ruled nursing home provider Shannexcould keep its documents private.

The company had asked the court to bar the release of details of its contract with the province after an unidentified member of the public requested the informationthrough freedom of information legislation.

A dubious win?

McNeil cited that case as an example of the information and privacy commissioner failing to strike the right balance between the public's right to knowand safeguarding confidential business information.

"This is ... a very similar situation," said McNeil. "The courts ruled that we were right. The courts ruled that information should not be released."

What the premier failed to say, however, was that the provincial government had actually agreed to release the information, but Shannex opposed the decision.

A blue and white ship emblazoned with the words
The province's information and privacy commissioner recommended the government reveal how much taxpayers are paying Bay Ferries to run its service between Yarmouth and Maine. (Brett Ruskin/CBC)

Asked to explain why McNeilcalled the court decisiona win for the province, his communications adviser David Jackson responded in an email:"Doesn't it illustrate the fact the province has to be careful about what information is released?"

"Health [Department] wanted to release it, the review officer agreed, but in the end, the court did not," hewrote. "So doesn't that show caution around releasing info is warranted?"

Nova Scotians should expect to hear morein the coming weeksfrom the PCs about Liberal secrecy, and from the Liberals about how the Official Opposition is ready to gamble with the province's economy.

The spring sitting is scheduled to begin Feb.28 less than two weeks before this case goes before a Supreme Court judge.