Nova Scotia Farm Loan Board Crown Corporation€¦ · Economic Update China's near-insatiable desire for commodities provides the global economic backdrop against which all economies—
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Nova Scotia Farm Loan Board
Nova Scotia BusinessIncorporatedBusiness Plan 2006–2007
Capital Grant (Industrial Properties) 2,000,000 0 2,000,000
Total 34,071,000 29,993,000 4,078,000
The following are total financial requirements to enable NSBI to continue existing activity and introduce new
services that address critical gaps in the market place for existing and potential clients:
1. Operating Budget:
Recurring $9,381,000
Non-recurring $850,000
Total Operating $10,231,000
2. Loan Valuation Allowance $1,600,000
3. Strategic Investment Funds $20,240,000
$32,071,000
4. Capital Grant
(Industrial Properties) $2,000,000
Total $34,071,000
5. Capital Allocation
(Nova Scotia Business Fund):
Advances $20,000,000
Repayments $7,500,000
Crown CorporationBusiness PlansNova Scotia Business Incorporated
75
Outcomes andPerformanceMeasuresThe table below outlines the planned
outcomes for fiscal year 2006–2007. As a
results-focused organization, NSBI remains
committed to measuring results that
directly impact the goals and objectives of
the organization.
For the first four years of NSBI's existence,
job creation has been the primary
measurement tool to gauge the
organization's overall success. This
measurement remains for fiscal year
2006–2007, but a more holistic approach to
measuring success will be incorporated and
will better reflect the total incremental
return that is generated to the province by
virtue of NSBI's activities and clients. This
shift reflects the existing labour market and
the near-generational low unemployment
rate in the province, as well as NSBI's
continued efforts to focus on higher-value
opportunities and jobs. This increased
emphasis on higher-end, higher-valued
projects is consistent with the province's
economic strategy to create greater
prosperity throughout the province.
NSBI is driven by the success of its clients,
with successful clients positively impacting
economic growth within the province.
Economic growth leads to increased
incremental tax revenues for the province,
which can be used as a source of funding
for government priorities such as health
care and education. Prosperity for the
province remains the ultimate driver of
NSBI's activities.
Nova Scotia Business Incorporated
76
Goa
lIn
dica
tor
Mea
sure
Base
Yea
r Ta
rget
s Ta
rget
sSt
rate
gies
to
Ach
ieve
Tar
get
2003
–04
2005
–06
2006
–07
Prom
ote
the
grow
th o
f new
and
exist
ing
busin
esse
s in
Nov
a Sc
otia
by
enab
ling
them
to s
ucce
ed w
ithbu
sines
s op
port
uniti
es in
both
loca
l and
exp
ort
mar
kets
*Mov
ed to
mea
surin
gqu
alifi
ed le
ads
in
2004
–200
5
Nov
a Sc
otia
com
pani
es e
xpan
dbu
sines
s w
ithin
N
ova
Scot
ia
Num
ber
of q
ualif
ied
refe
rral
s fo
r ex
port
deve
lopm
ent,
inve
stm
ent,
or fi
nanc
ing
240
(unq
ualif
ied
lead
s)*
120
Ou
tcom
es a
nd
Perf
orm
ance
Mea
sure
s
•Pr
oact
ive
busin
ess
mee
tings
•C
ontin
ue to
bui
ld a
war
enes
s of
NSB
I in
regi
onal
NS
Num
ber
of q
ualif
ied
refe
rral
s to
ext
erna
lpa
rtne
r ag
enci
es
n/a
140
Attr
act l
eadi
ng-e
dge,
sust
aina
ble
busin
ess
inve
stm
ent t
o N
ova
Scot
ia
FDI i
n N
ova
Scot
iaN
umbe
r of
com
pani
esth
at r
eloc
ate
part
or
all
of th
eir
oper
atio
ns in
Nov
a Sc
otia
8 co
mpa
nies
15 c
ompa
nies
•Se
ek n
ew s
usta
inab
le b
usin
esse
s to
rel
ocat
e or
ex
pand
in N
ova
Scot
ia
Econ
omic
ben
efit
toN
ova
Scot
iaAv
erag
e gr
oss
sala
ry o
fne
w jo
bs c
reat
ed th
roug
hbu
sines
s at
trac
tion
and
rein
vest
men
t
$25,
000
$32,
500
•D
evel
op F
DI s
trat
egie
s ba
sed
on in
nova
tion
Fisc
ally
pru
dent
finan
cing
Aver
age
port
folio
ret
urn
on in
vest
men
ts u
tiliz
ing
SIFs
40–5
0%40
–50%
•St
rate
gic
utili
zatio
n of
SIF
s to
est
ablis
h gr
owth
indu
strie
s
•Se
ctor
-spe
cific
tact
ical
pla
ns
120
180
12 c
ompa
nies
$34,
500
40–5
0%
Volu
me
and
dive
rsity
of e
xpor
tsN
umbe
r of
com
pani
esin
trod
uced
to n
ewm
arke
ts/f
urth
er a
dvan
ced
in e
xist
ing
mar
kets
80 c
lient
s10
0 cl
ient
s•
Del
iver
y of
tailo
red
expo
rt d
evel
opm
ent s
ervi
ces
incl
udin
g Ex
port
Pro
spec
tor,
Trad
e M
issio
ns11
0 cl
ient
s
Goa
lIn
dica
tor
Mea
sure
Base
Yea
r Ta
rget
s Ta
rget
sSt
rate
gies
to
Ach
ieve
Tar
get
2003
–04
2005
–06
2006
–07
Prov
ide
acce
ss to
cap
ital f
orne
w/e
xist
ing
busin
esse
s in
Nov
a Sc
otia
, with
the
inte
ntof
enh
anci
ng v
alue
-add
edgr
owth
for
the
prov
ince
’sec
onom
y
Incr
emen
tal v
alue
inve
stm
ent p
roje
cts
Num
ber
of fi
nanc
ings
with
new
/exi
stin
gco
mpa
nies
util
izin
g N
ova
Scot
ia B
usin
ess
Fund
20 fi
nanc
ings
20 fi
nanc
ings
•N
ew p
rodu
ct o
fferin
gs
•Sh
arpe
ned
busin
ess
deve
lopm
ent f
ocus
•D
evel
opm
ent o
f par
tner
ship
s w
ith o
ther
fina
ncia
l age
ncie
s
Qua
lity
port
folio
man
agem
ent
Impa
ired
loan
rat
ioN
ew m
easu
re fo
rFY
200
6–20
07N
ew m
easu
re fo
rFY
200
6–20
07•
Port
folio
man
agem
ent s
trat
egie
s
Part
ner
for
finan
cing
solu
tions
Annu
al c
lient
re
view
com
plet
edN
ew m
easu
re fo
rFY
200
6–20
07N
ew m
easu
re fo
rFY
200
6–20
07•
Port
folio
man
agem
ent s
trat
egie
s
15 fi
nanc
ings
[20
incl
udin
gnu
mbe
r of
succ
essf
ulfin
anci
altr
ansa
ctio
nsus
ing
exte
rnal
part
ner
agen
cies
]
5% o
r le
ss
100%
of c
lient
sre
view
ed
Incr
ease
the
visib
ility
an
d re
cogn
ition
of
Nov
a Sc
otia
—its
bus
ines
scl
imat
e, a
dvan
tage
s,
and
capa
bilit
ies
Awar
enes
s of
NSB
I’sro
le in
Nov
a Sc
otia
Perc
enta
ge p
oint
incr
ease
over
bas
e m
easu
re o
faw
aren
ess
of N
SBI
Busin
ess
30%
2 pe
rcen
tage
poin
t inc
reas
eov
er b
ase
year
•Bu
sines
s ev
ents
, e.g
., Ex
port
Ach
ieve
men
t Aw
ards
•C
omm
unic
atio
n to
ols,
e.g
. web
site,
art
icle
s, a
dver
tisin
g
2 pe
rcen
tage
poin
t inc
reas
eov
er b
ase
year
78
Tota
l ret
urn
to th
e pr
ovin
ceLe
vera
ge r
atio
of p
artn
er:
NSB
IRa
tio o
f 1:1
Ratio
of 1
:1•
Mai
ntai
n co
-inve
stm
ent p
hilo
soph
yRa
tio o
f 1:1
Tota
l fin
anci
al r
etur
n on
inve
stm
ent f
rom
NSB
Ifin
anci
ng
New
mea
sure
for
FY 2
006–
2007
New
mea
sure
for
FY 2
006–
2007
•Fo
cus
on to
tal v
alue
of a
pro
ject
TBD
Ove
rall
perfo
rman
ceJo
bs w
ithin
N
ova
Scot
iaN
umbe
r of
jobs
ret
aine
dan
d cr
eate
d by
clie
nts
3,70
0 m
aint
aine
dan
d ne
w
3,70
0 m
aint
aine
d an
d ne
w*
•At
trac
t com
pani
es to
Nov
a Sc
otia
•H
elp
exist
ing
com
pani
es w
ithin
Nov
a Sc
otia
gro
w
•Pr
ovid
e fin
anci
al s
olut
ions
•5-
year
cum
ulat
ive
targ
et o
f 18,
000
Expo
rt s
ales
Incr
emen
tal e
xpor
t sa
les
of N
SBI e
xpor
tde
velo
pmen
t clie
nts
TBD
$25
mill
ion
•At
trac
t com
pani
es to
Nov
a Sc
otia
•H
elp
exist
ing
com
pani
es w
ithin
Nov
a Sc
otia
gro
w
•Pr
ovid
e fin
anci
al s
olut
ions
•5-
year
cum
ulat
ive
targ
et o
f 18,
000
Tota
l pay
roll
Tota
l pay
roll
impa
ct
of N
SBI c
lient
sTB
D$1
20 m
illio
n•
Attr
act c
ompa
nies
to N
ova
Scot
ia
•H
elp
exist
ing
com
pani
es w
ithin
Nov
a Sc
otia
gro
w
•Pr
ovid
e fin
anci
al s
olut
ions
•5-
year
cum
ulat
ive
targ
et o
f 18,
000
3,20
0m
aint
aine
d an
d ne
w
$28
mill
ion
$110
mill
ion
Goa
lIn
dica
tor
Mea
sure
Base
Yea
r Ta
rget
s Ta
rget
sSt
rate
gies
to
Ach
ieve
Tar
get
2003
–04
2005
–06
2006
–07
Dev
elop
an
actio
n-or
ient
ed,
clie
nt-fo
cuse
d or
gani
zatio
nal
cultu
re th
at e
ncou
rage
s,em
pow
ers,
and
sup
port
shi
gh p
erfo
rman
ce
Empl
oyee
trai
ning
an
d de
velo
pmen
t%
of e
mpl
oyee
spa
rtic
ipat
ing
in tr
aini
ngan
d de
velo
pmen
tpr
ogra
ms
50%
of
empl
oyee
s80
% o
fem
ploy
ees
•Pr
ovid
e an
d pr
omot
e tr
aini
ng a
nd e
duca
tiona
l pro
gram
s
Busin
ess
cultu
re—
deliv
er r
esul
ts w
ithin
cost
man
agem
ent
stru
ctur
e
Ope
rate
with
in a
nnua
lop
erat
ing
budg
et$6
.815
mill
ion
$8.9
8 m
illio
n•
Max
imiz
e op
erat
ing
effic
ienc
y an
d co
st e
ffect
iven
ess
80%
of
empl
oyee
s
$10.
2 m
illio
n(r
ecur
ring
and
non-
recu
rrrin
g)
Tota
l ret
urn
to
the
prov
ince
Tota
l fin
anci
al r
etur
n on
inve
stm
ent f
rom
N
SBI a
ctiv
ity
New
mea
sure
for
FY 2
006–
2007
New
mea
sure
for
FY 2
006–
2007
•At
trac
t com
pani
es to
Nov
a Sc
otia
•H
elp
exist
ing
com
pani
es w
ithin
Nov
a Sc
otia
gro
w
•Pr
ovid
e fin
anci
al s
olut
ions
•5-
year
cum
ulat
ive
targ
et o
f 18,
000
TBD
*Not
e: W
ith
th
e ex
isti
ng
stro
ng
labo
ur
mar
ket
and
the
nea
r-ge
ner
atio
nal
low
un
empl
oym
ent
rate
in
th
e pr
ovin
ce, N
SBI
will
con
tin
ue
to f
ocu
s on
hig
her
-val
ue
oppo
rtu
nit
ies
and
jobs
. Th
is i
ncr
ease
dem
phas
is o
n h
igh
er-e
nd,
hig
her
-val
ued
pro
ject
s is
con
sist
ent w
ith
the
prov
ince
's ec
onom
ic s
trat
egy
to c
reat
e gr
eate
r pr
ospe
rity
thro
ugh
out t
he
prov
ince
. In
add
itio
n, N
SBI c
onti
nu
es to
focu
s on
its
targ
etto
cre
ate
and
mai
nta
in 1
8,00
0 jo
bs o
ver
its
firs
t fi
ve-y
ear
man
date
an
d is
tra
ckin
g to
exc
eed
this
tar
get.
80
NSBI remains fully committed to delivering
a return on investment for the province and
continues to hold itself to the highest
standards of corporate governance and
accountability. As stated previously, the
fiscal year 2006–2007 corporate measures
have been enhanced to reflect the
organization's continued commitment to
economic growth and prosperity for the
province. Increased economic growth
creates additional provincial taxes, which
can be used as a funding source for
government priorities such as health and
education.
Crown CorporationBusiness PlansNova Scotia Business Incorporated
81
Payroll Debate
Overview • The payroll rebate is based on targeted employment creation and new payroll generation.
• This financial incentive may be used when it can be shown that anapplicant's project generates a net economic benefit to the province in one or more of the province's key economic sectors.
Amount • Between 5 per cent and 10 per cent of the applicant's gross incrementalpayroll, depending on the applicant's strategic location or business sectorand the net economic benefit generated to the province.
Eligibility • The applicant's business must be considered eligible according to NSBI's operating regulations.
• Nova Scotian and out-of-province firms located in Nova Scotia creatingnew jobs in Nova Scotia are eligible for the payroll rebate program.
• Applications for assistance must be project-based. Projects are expected to create sustainable long-term new employment. Cyclical peaks inemployment will not be considered for assistance.
• The project should result in the creation of at least 50 new jobs (FTEs) in Nova Scotia. However, under certain circumstances, projects creatingfewer than 50 FTEs may be considered when there is high strategic value or strong economic benefit.
• Companies that have previously received assistance under the programwill not be eligible for additional assistance unless the project isincremental to the peak FTE level attained by the company under the previously provided assistance.
• Projects that are considered to be competitively harmful to existing Nova Scotia business will not be considered.
ApplicationRequirements
1. Most recent financial statements of the assisted company
2. Share structure and share ownership in the case of private companies
3. Cash flow forecast
Appendix AStrategic Investment Funds Pursuant to NSBI Regulations, Policies, and Guidelines/Procedures
Nova Scotia Business Incorporated
82
Payroll Debate
Criteria • The company and the project must have reasonable prospects (business plan) for continued growth and success. The company shouldbe profitable, with a proven track record. In addition, the project shouldbe mainly export oriented and/or be in a strategic economic sector.
The company must also demonstrate
• strong management (corporate and local)
• compliance with Environment Act, Occupational Health and Safety, and Labour Standards Code (if already established in Nova Scotia)
• economic benefit to the province (e.g. estimated number of jobscreated/maintained, linkages with other sectors, non-competition with Nova Scotia industries, import substitution, etc.);
• an acceptable credit history
PerformanceConditions
• Assistance is based on specific targets that the assisted company mustachieve. The most usual will be the creation of (x) jobs by (date), all ofwhich are still in place at the end of the period, with an average annualsalary/wage of $ (amount), defining a job as 2000 hours of work per year.
• The applicant must produce an auditor's report certifying that theemployment and wage targets have been achieved and containing the following information:
- incremental gross wage or payroll bill (including benefits) and thenumber of incremental employees and hours worked according to the company's records on each anniversary date from the actualcommencement of operations
- gross wage or payroll bill (including benefits) and the total number of employees of the company on each anniversary date from the actual commencement of operations.
PaymentTerms
• Payable 12 months after the project commencement and annuallythereafter, on each anniversary from the project commencement.
• In certain circumstances payments may be considered more frequently than annually.
• Payment term generally should not exceed five years.
Appendix AStrategic Investment Funds Pursuant to NSBI Regulations, Policies, and Guidelines/Procedures