News release

Federal Government and Nova Scotia signal new partnership through signing of service contract

HALIFAX, October 13, 1998...National Revenue Minister Herb Dhaliwal and M.P. (Vancouver South-Burnaby) along with Nova Scotia Finance Minister Don Downe, Business and Consumer Services Minister Keith Colwell, and Russell MacKinnon, Minister responsible for the Workers Compensation Act today signed a service contract aimed at forging a renewed partnership based on accountability, efficiency and high quality service.

"Guided by the terms of this service contract, the proposed Canada Customs and Revenue Agency, once established, would work to foster an environment in which Nova Scotia will benefit from the economies of scale of a mature, national infrastructure for the delivery of the province's revenue programs," said Mr. Dhaliwal. "The province would also receive individualized service levels, detailed reporting parameters for programs administered by the Agency and high quality client service standards," he added.

Based on increased flexibility in the type and range of programs and services that the proposed Agency would be able to offer, a number of new opportunities will be explored, including: the Nova Scotia Business Registry Project; a program to off-set refunds with outstanding debts in other provincial programs; and a partnership with the Workers Compensation Board to assist in the delivery of streamlined services to Nova Scotia businesses.

The four ministers signed the contract that will lay the groundwork to further improve and expand revenue services, enhance economic efficiencies and reduce program administration costs. The contract also ensures that the proposed Agency would be fully accountable to Nova Scotia for the provincial programs that it administers.

"This contract builds on the current strong, cooperative relationship between Nova Scotia and Revenue Canada and provides the means for our relationship to evolve under the new Agency," stated Mr. Downe. Mr. Colwell added: "The details of this framework make good business sense and will mean better, more cost-effective service, for the citizens of Nova Scotia."

Each of the initiatives being examined holds significant potential for Nova Scotia businesses and individuals. For example, the Nova Scotia Business Registry Project will link registrations for Revenue Canada's four major business programs (HST/GST, corporate income tax, payroll deductions, and import/export) with provincial registration for business names, provincially incorporated companies, Workers Compensation Board insurance, and various business licenses and permits.

In addition to being a full partner in the registry project, Workers Compensation Board in Nova Scotia is also exploring with Revenue Canada other opportunities for partnership in service delivery such as joint employer remittance for payroll deduction and Workers Compensation Board payments.

"Based on this contract, we look forward to providing new services aimed at supporting and improving the competitiveness of Nova Scotia businesses," said Mr. MacKinnon.

Mr. Dhaliwal added: "The potential collaboration being explored with the Workers Compensation Board could result in significant benefits for Nova Scotia businesses, both large and small, and has been recommended to us by representatives of the small business community."

Following terms of the contract, both parties will establish a senior management committee to ensure effective operation of revenue programs administered on behalf of the province.

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For further information, contact:

40T/98