Province gives businesses loan guarantees amid tariffs

Manitoba’s response to the U.S. waging economic war on Canada includes tens of millions of dollars in loan guarantees to companies to protect and create jobs in the province.

Last month, the provincial cabinet ordered a $15-million loan guarantee requested by Lexington Real Estate Holdings Ltd., which owns Palliser Furniture, but didn’t put out a news release to announce it. A spokesperson said it wasn’t announced because of a communication blackout during the Spruce Woods byelection.

“We know that the tariffs that Donald Trump has put on have hurt Canadian companies right across the country,” said Jamie Moses, minister responsible for trade and job creation.

“Here in Manitoba, we work with businesses to make sure that we can support workers and support having good jobs here.”

The loan guarantee will protect approximately 190 manufacturing jobs at Palliser, Moses said.

On Friday, when news broke that Palliser Furniture had cut 11 administrative positions, the minister issued a statement that said the province asked the company about the jobs cuts. “These are senior management positions and we have reaffirmed that all front-line manufacturing jobs are and will continue to be protected,” Moses said.

Palliser president and chief executive officer Peter Tielmann did not respond to a request for comment last week.

The aerospace sector that employs thousands in the province has also received help.

In March, cabinet approved a $9-million loan to Magellan Aerospace Ltd. after announcing in January a combined $17 million in funding, with $8 million as grants and $9 million in the form of a loan to be repaid over 12 years.

Premier Wab Kinew said at the time that some of the money would be used to set up a state-of-the-art machining centre, a new testing environment, and create 64 new jobs at Magellan, in a partnership with Red River College Polytech and Tec Voc High School.

“We know that this will help them continue to grow and provide educational opportunities for the next generations of workers in the aerospace industry.”

“We have thousands of jobs in the aerospace sector in Manitoba,” Moses said. “We know that this will help them continue to grow and provide educational opportunities for the next generations of workers in the aerospace industry.”

Cabinet orders can take time to deliver. By the time an order for a provincial loan of $6.2 million to Winkler Meats Ltd. was issued March 19, the company had sourced private sector funding and didn’t need the loan, Moses said.

Also in March, cabinet approved a loan of $10.75 million to Sapphire Springs Inc. in the Rural Municipality of Rockwood. The company is building an Arctic char fish farm at the site of the former Department of Fisheries and Oceans’ experimental fish hatchery. The company says it is on track to open in 2026 and begin producing 5,000 metric tonnes per year, increasing the global supply of Arctic char by about 50 per cent.

“They’re going to employ over 100 folks, approximately, directly in their facility,” Moses said. “It will have huge spin-off effects for indirect jobs as they create that new Arctic char facility. It would position Manitoba as being one of the leaders in the industry of Arctic char production.”

The fish is reportedly in demand from chefs and foodies because of its mild flavour, light flaky texture, and versatility in cooking.

“We’ve got a big market for that product,” Moses said.

To access markets, Manitoba passed Bill 47 that removes trade barriers for goods and services between Manitoba and other jurisdictions in Canada, the minister said.

“It’s so that what we’re producing here in Manitoba can reach other Canadians, grow our economy here, nationally, and then also work to make sure that those products can reach international markets as well.”

Meanwhile, Statistics Canada on Friday reported the unemployment rate rose 0.2 percentage points to 7.1 per cent in August, for the second consecutive month.

Employment in Canada fell by 66,000 in August (0.3 per cent drop), extending the decline recorded in July, when employment fell by 41,000 (0.2 per cent drop).

In Manitoba, employment declined by 5,200 in August (0.7 per cent drop).

— with files from Aaron Epp

carol.sanders@freepress.mb.ca