Tories, NDP trade barbs over economic secretariat

Hey there, time traveller!
This article was published 24/11/2023 (1039 days ago), so information in it may no longer be current.

The Tories have accused the NDP government of removing “the economic horse that pulls the social cart” by disbanding the economic development board secretariat, which the premier called an unnecessary bureaucracy that “trapped” economic growth.

The former Progressive Conservative government created the secretariat to support the economic development board of cabinet — which will remain in place — last year.

The secretariat attracted “dozens” of businesses wanting to invest in Manitoba and would’ve created “thousands” of jobs, opposition PC leader Heather Stefanson said in the legislature Friday.

“Why did the premier disband the very economic horse that pulls the social cart in our province?” she asked during question period, citing one of Kinew’s favourite political catchphrases.

“What we did is cut through another unnecessary layer of PC bureaucracy, just like we did when we disbanded the diagnostic and surgical (recovery) task force,” Kinew said.

His government announced Nov. 17 that it was doing away with the task force that was established by the PCs in response to pandemic-related backlogs in surgeries and diagnostic procedures.

“What we did is cut through another unnecessary layer of PC bureaucracy, just like we did when we disbanded the diagnostic and surgical (recovery) task force.”–Wab Kinew

The secretariat’s activities included ensuring action was taken on economic development board decisions, recommending policy to incentivize greater private investment, liaising with the business community and establishing benchmarks and tracking outcomes.

It was led by financial analyst Michael Swistun and had 14 staffers, including four post-secondary students. Its budget was $2.1 million.

“Over the PCs’ time in office, they created layer upon layer of bureaucracy which (sought) to create financial benefits for their insider friends but got in the way of delivering results for the people of Manitoba,” Kinew told the chamber.

“Case in point,” the premier said, “When it comes to (the secretariat), Manitoba already funds Economic Development Winnipeg to have offices at Portage and Main. Why did we need to hire the leader of the opposition’s friends and pay for a separate set of offices at a Portage and Main office tower?”

The secretariat paid nearly $25,000 a month for offices and parking at 375 Main St., known as One Lombard Place, according to the lease agreement with Richardson Centre Ltd. It spent $150,669 in “fit-up” costs for the offices, including $35,342 for electrical, data and voice connections, $52,462 for new furniture and $20,000 for a cellphone booster, according to information provided by the government.

Stefanson said Friday that Swistun and the secretariat “did incredible work.”

That included some 60 projects, a dozen of which “had very real short- and medium-term prospects for Manitoba,” potentially generating $24 billion in investment and $3 billion in new tax revenue for governments, a PC spokesman said Friday.

Details of some of those projects had been made public, including Azure Sustainable Fuels Corp., which filed a proposal to government this week for a renewable fuels production facility; Canadian Premium Sands, which wants to build a solar glass manufacturing facility in Selkirk; the expansion of Winkler Meats; and Sapphire Springs’ plans for an Arctic char fish farm north of Winnipeg in the R.M. of Rockwood.

Jeff Wharton, the economic development critic for the PCs, said in an interview those companies have been left in a lurch without the secretariat.

During question period, Wharton said the secretariat worked to boost investments and jobs that would’ve increased provincial tax revenues — until Kinew took office.

“He fired the horse, loaded up the cart, (then) slammed the door on the barn on all new business in Manitoba,” Wharton told the house.

“He fired the horse, loaded up the cart, (then) slammed the door on the barn on all new business in Manitoba.”–Jeff Wharton

He asked the premier to explain how he plans to pay for health, education and the social services.

Kinew said economic growth was bogged down by bureaucracy under the PCs.

“One of the challenges that the hardworking people of Manitoba have faced under the PCs’ two terms in office is that the economic horse of this province was trapped in layers and layers of PC mud,” the premier said.

“The unnecessary bureaucracy that the former government created that (sought) to benefit their friends got in the way of the private sector, got in the way of blue-collar Manitobans getting to work,” Kinew said. “We’ve already shown in one month that we’re going to deliver results and we’re going to continue creating thousands and thousands of good-paying jobs over our time in office.”

carol.sanders@freepress.mb.ca