To the “disappointment” of brokers, Nova Scotia offers $1.8-million payroll rebate to promote growth of TD Insurance

The Government of Nova Scotia is offering a $1.8-million payroll rebate to support the expansion in Halifax of TD Insurance in Halifax, which plans to create up to 140 new full-time jobs over the next six years.
The Insurance Brokers Association of Nova Scotia (IBANS) expressed “disappointment” about the news, arguing against what it sees as a public subsidy for a direct writer competitor.
Nova Scotia Premier Darrell Dexter made the announcement on May 4 at the company’s office on Bayers Road in Halifax. The rebate is intended to support employee training, allowing the company to hire new graduates as it grows to meet business demand.
“This demonstrates how the province’s jobsHere plan, through strategic investment in business, is creating good jobs and growing the economy,” Dexter said in a press release. “TD Insurance is an excellent example of a business committed to growth in Nova Scotia and creating high-value jobs for Nova Scotians.”
TD Insurance added the payroll rebate would help the company to draw the best talent to meet the needs of its customers. “We already have a strong presence in Halifax and this is a great opportunity for us to partner with the province through [its private-sector-led business development agency, Nova Scotia Business Inc.] to help support our future growth,” said Jane Duchscher, senior vice-president of client services at TD Insurance.
The insurance industry in Nova Scotia employs 4,500 people at wages 38% higher than the provincial average, the government release notes. “According to InsurEconomy, a study released in March 2010, the industry will experience a 25% growth in employment over three years.”
But the independent broker channel in the province is growing as well, and it is doing so without the need for a government handout, the provinces’ independent brokers say.
“We are troubled by the decision to offer the hard-earned tax dollars of Nova Scotians for payroll rebates to a Canadian bank’s insurance call centre, while insurance brokers, not to mention many other small and medium businesses, succeed without government payroll support of any kind,” says IBANS chairman Ken Myers.
Insurance brokers in Nova Scotia have survived intense competition for a very long time, IBANS observes. It further says insurance brokers have maintained their presence in communities all across Nova Scotia, whereas banks generally have withdrawn and centralized their services to call centres in major cities.
“Quite simply, if the TD Bank’s business model works, then a payroll rebate isn’t required,” Myers says.