Liberals propose public bank to spur Manitoba entrepreneurs
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Hey there, time traveller!
This article was published 08/08/2019 (2636 days ago), so information in it may no longer be current.
Liberal Leader Dougald Lamont says a government he leads would create a business development bank to support Manitoba entrepreneurs.
Surrounded by Liberal candidates at wind-swept Portage and Main on Thursday, Lamont estimated the initiative would cost $78 million in the first year.
He said a lack of investment capital is an impediment to economic growth and job creation in the province.
The creation of a publicly owned Manitoba Business Development Bank would be the cornerstone of a Liberal government’s economic growth strategy, he said.
“What attracts people, what gets people to stay in Manitoba is opportunity because the most important thing in the world is a good job,” Lamont said.
A publicly owned bank that would not only provide loans, but invest in local companies over a 10-15 year time frame, is a better growth strategy than offering tax incentives to outside firms to invest in Manitoba, he said.
The Liberals estimate that of the $78 million spent in the first year of the bank’s operation, $70 million would be allocated to loans and equity investments in firms while $8 million would be devoted to start-up costs and administration.
He said the soon-to-be vacated Bank of Montreal building at Portage and Main “would be a pretty awesome place” for the bank’s headquarters. (The Bank of Montreal has announced it will move its Manitoba headquarters from the heritage building to a new space next spring.)
Lamont foresees government investment of “at least $50 million” a year in the new bank until it become self-sustaining “in the medium term,” a period of eight to 10 years.
The bank would invest in “growth-focused” Manitoba businesses, including start-ups, co-ops, social enterprises and farms. It would provide investments anywhere in size from a few thousand dollars to $10 million.
Finance Minister Scott Fielding, speaking on behalf of the Progressive Conservative party, called the idea “a bit risky for taxpayers.”
Manitoba already leads the nation in private-sector investment, he said, as the PCs have focussed on “getting the fundamentals of government right” by lowering taxes and cutting red tape.
larry.kusch@freepress.mb.ca