‘Big commitments’ promised

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This article was published 20/11/2023 (671 days ago), so information in it may no longer be current.

The first throne speech today from Premier Wab Kinew’s New Democrats will outline his government’s priorities for the legislative session, with many campaign promises to choose from.

The NDP has previously vowed to suspend the provincial gas tax, retain education property tax rebates, fix health care, end homelessness, provide free birth control, school lunches and electric vehicle rebates — all while balancing the budget in its first term.

One left-leaning think tank says that’s a tall order and something’s got to give.

Meantime, business leaders want to see how the NDP government plans to feed “the economic horse that pulls the social cart” (a common refrain from Kinew).

Expect “big commitments” with regard to housing and addictions in the speech from the throne, said Housing, Addictions and Homelessness Minister Bernadette Smith.

“What you’re going to hear in the throne speech is what Manitobans have told us,” the minister said Monday at an unrelated addictions awareness week event.

Smith added the NDP heard what Manitobans had to say at the doorstep during the recent election campaign, but wouldn’t provide any details.

“Stay tuned,” she said, repeating a phrase used often by the Progressive Conservatives when they were in power.

The head of the Winnipeg Chamber of Commerce wants to hear how the Kinew government plans to create a healthy business environment that allows Manitoba’s economy to thrive and pay for social spending.

“We are looking for, in the throne speech, a better sense as to how this government will feed the economic horse that pulls the social cart,” said Loren Remillard, chamber president and chief executive officer.

“Those elements include a province-wide economic strategy that incorporates tax policy, workforce development, infrastructure and access to capital,” Remillard said Monday.

“We understand that there are some immediate pressing challenges in health care and other areas and we look forward to the government moving forward on those.”

The local chamber also wants to see an “equally aggressive and long-term view of the economy and how government can help business create jobs,” Remillard added. “Government doesn’t create jobs — government creates the conditions for job creation.”

Meanwhile, a steady diet of tax cuts hasn’t fed the economic horse that pulls the social wagon — it has starved it, according to the authors of a report released Monday.

The Manitoba government is missing out on $1.6 billion in annual revenue after seven years of cuts to income tax, sales tax, education property tax and business tax by the previous PC government, says a Canadian Centre for Policy Alternatives report titled, Funding Our Way: Rebalancing Revenues and Spending for a Fair and Prosperous Manitoba.

That’s close to what Manitoba spends on post-secondary education and training in a year, and more revenue than was collected last year from corporate, fuel, land transfer, health and education payroll and tobacco taxes combined, according to the report.

“The NDP election commitments to keep nearly all these tax cuts, suspend the gas tax and balance the budget place serious constraints on Manitoba’s ability to repair the damage of seven years of cuts and underfunding of health, education and other public services,” said University of Manitoba economics Prof. Jesse Hajer, one of three authors of the 43-page document.

“These tax cuts have been funded by federal transfers for health, child care and other public services, and have led to Manitoba’s own-source revenues relative to economic output reaching record lows,” Hajer said Monday.

“A recession or change in direction at the federal government level could necessitate large cuts to public services if unwilling to reconsider cancelling these tax cuts or its commitment to balance the budget in their first term.”

The first session of the 43rd Manitoba legislature begins at 1:30 p.m., with the reading of the speech from the throne by Lt.-Gov. Anita R. Neville.

Whitehorse Drum Group will start and finish the ceremonies inside the legislative chamber in Winnipeg.

— with files from Danielle Da Silva

carol.sanders@freepress.mb.ca