Ditch tax cuts, labour groups urge

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This article was published 13/12/2023 (672 days ago), so information in it may no longer be current.

Labour groups have called on the Manitoba government to abandon the fiscal plan set out by the Tories in the spring budget and extend the timeline to eliminate the deficit.

An open letter signed by the Manitoba Federation of Labour, Manitoba Government and General Employees’ Union and Canadian Union of Public Employees Manitoba, among others, was sent to the NDP government Wednesday, as it released a supplement to its last economic update.

“The public services that Manitobans count on continue to feel the strain of $1.6 billion of tax cuts over seven years under the previous government. Vital areas like health care, education and core government and social services have been under-resourced for years,” the open letter reads.

It says research by Engage Manitoba concludes Manitobans want health care and education to be bolstered, while tax cuts are their lowest priority.

“The December 2023 $1.6-billion deficit projection makes it clear that the previous government’s fiscal framework was unsustainable and should not be committed to, moving forward,” the letter continues.

MFL president Kevin Rebeck called the fiscal framework in the current budget “largely a work of fiction.”

“Manitobans elected the new government to fix health care and repair public services after years of cuts under the Pallister and Stefanson PCs,” Rebeck said in a prepared statement. “If Manitobans had wanted tax cuts that largely benefit the wealthy, they would have elected the PCs this October.”

On Wednesday, NDP Premier Wab Kinew described the former Progressive Conservative government’s 2023 budget as “wishful thinking.”

Nevertheless, Kinew said he is committed to balancing the budget in one term and the fiscal framework his government has adopted will remain in place.

Tax cuts coming into effect in the new year are legislated “at this point,” he said.

“It’s important, as part of a balanced approach where we invest in health care, we’re balanced with the books, that we’re also offering predictability,” Kinew said. “You have households who have made their financial decisions for the coming year and we can’t pull the rug out from underneath you.

“You’ve got businesses who are making hiring decisions, they’re sending offers to people out of province trying to recruit them to come here to Manitoba.”

The premier said he plans to move with a steady hand while balancing deficit reduction and spending on government services.