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s Bernard Landry, Quebec’s new Premier, controversial? Of course he is. A separatist? Definitely. But in his radio address heard around the world about Canada’s “uselessness” in terms of Quebec’s economic development, there was an underlying message that should be music to the ears of corporate investors.
Landry (right), the former Minister of State for the Economy and Finance, wants to make Quebec an economic powerhouse in its own right, which can only mean one thing: new incentives and programs. And with Quebec’s already low labor costs and close proximity to markets, any other moves in the business-friendly direction are sure to catch the eye of any investor.
“We must continue to pursue prosperity,” said Landry in his inaugural speech on March 8. “We need to use the here and now, regardless of what happens, to consolidate the foundations of our economy and complete the changes in our major social programs. At the same time, Quebec must remain competitive on the international scene.”
Landry’s first move was to choose his new Deputy Premier and Minister of State for the Economy and Finance. Pauline Marois, the former health minister, was selected to fill Landry’s shoes as deputy premier, and Gilles Baril will serve as his new Minister of State for Regions and as Minister of Industry, Trade and Tourism.
At press time, Landry had been in office less than a week, so no report on his economic agenda had been provided, but one can be certain that it has been contemplated. If his reign as Deputy Premier and Minister of State for Economy and Finance is anything to go by, it will be interesting to watch Quebec’s prosperity in the years ahead.
A Taste of What’s to Come
Under Landry’s reign as Deputy Premier and Minister of State for Economy and Finance, the province’s economy boomed. In fiscal year 1999-2000, Quebec balanced its budget for the second consecutive year, “and the books will be balanced in 2000-2001 and the following years as well,” promised then Deputy Premier Landry. During the same period, the gross domestic product grew by 3.7 percent — 1.6 percent more than was anticipated — and job creation hit a peak unmatched since 1987 with 76,000 new jobs.
“In recent months, Quebec has experienced remarkable economic, financial and social success,” said Landry during the 2000-2001 budget speech as Deputy Premier. “Following decades of chronic deficit, public finances are at last in order. Economic growth is strong and the unemployment rate has been brought down to a level that has not been matched in 25 years.”
Buoyed by this success, the government in its current budget continued to invest in the transformation of the Quebec economy. The 2000-2001 budget provided C$675 million for provincial economic development. The government injected $310 million into such areas as assistance for modernizing pulp and paper mill equipment and loan guarantees for small business startups. Also included in the budget was a comprehensive 10-year tax holiday for all major investment projects.
An additional $290 million was earmarked for the creation of a Quebec infrastructure program. This funding goes to projects relating to drinking water supply, sewage treatment, recreation and culture, as well as roads and other transportation facility.
“Never, in all my life, have I seen such a strong economy in Quebec, whether judged in terms of its results or its structure,” said then Deputy Prime Minister Landry. “We chose the right strategies to meet the challenges facing us in building a modern Quebec and undertaking a technology conversion. This budget proposes that we go yet further on the path of progress and prosperity.”
If Landry is capable of this sort of prosperity as Deputy Premier, it should be interesting to see how he and the province perform in the future.
