While the sale of BC Rail in 2004 did not come without its share of controversy, one of the better ideas of the Liberal government was to set aside $185 million and create the Northern Development Initiatives Trust (NDIT). The mandate of NDIT was to stimulate economic diversification and job creation in Central and Northern B.C.
Under the leadership of Janine North, last year's Business in Vancouver's Business Woman of the Year, the results have been impressive.
Since 2005, $100 million has been distributed by NDIT into 803 individual projects totalling over $1 billion in total project investments in central and Northern B.C.
From supplying grant writers that have assisted business and non-profits in writing funding applications worth $64.3 million to assisting in lighting up the Tumbler Ridge airport, NDIT has put our money where its mouth is.
Closer to home, NDIT was instrumental in assisting local developers to buy and subsequently close the PG Hotel with the subsequent benefit to our downtown.
Now NDIT has partnered with the City of Prince George to provide financial incentives aimed at encouraging commercial development and housing in the downtown. In short, NDIT has created jobs, helped new businesses get a start and improved our communities.
Contrast the success story of NDIT with that of Initiatives Prince George. Owned by the City of Prince George and with a budget of more than $2 million a year, its mandate is to undertake programs and projects designed to grow and diversity the local economy.
Besides attracting investment, tourism promotion and events for P.G., IPG is also supposed to assist in the completion of major business deals that have strategic value for our community.
Problem is, there haven't been any. Unlike NDIT which can point to hundreds of projects and numerous success stories, IPG has paltry little to show for the effort or the huge expenditures of taxpayer's dollars. Apart from monthly newsletters and attendance at lots of meetings and conferences.
During the worst recession in 30 years, it's doubtful IPG created a single job in the City of P.G., and a quick review of the IPG website confirms the obvious lack of success in achieving its mandate.
Where are the results for all the trips to China? Where are the new businesses? When will IPG close a single "major business deal" as it is one of its stated goals, promises?
While the city is currently discussing an audit of IPG's operations including hopefully what we have received for all of our millions, the private sector has filled the void in downtown Prince George.
With an election pending in November, and with taxpayers increasingly feeling the pinch, it is time for the city to revisit its whole model for economic development. The current model as exhibited by IPG is clearly not working.
Perhaps, given the success of NDIT, the city should either close down IPG or provide it with some measurable objectives that it can be measured by. Think tanks are for universities, not economic development agencies funded by cash-strapped taxpayers.
