Get Manitoba on track, revitalized

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This article was published 31/05/2016 (3449 days ago), so information in it may no longer be current.

Opportunity seized or opportunity lost? This is perhaps the fundamental question that Budget 2016 will answer.

Expectations are high for Finance Minister Cameron Friesen’s first budget today, aided by the new government’s pronouncement that within its first term, Manitoba shall become Canada’s “most improved” province. Given the magnitude of Manitoba’s fiscal dilemma — now pegged at slightly over $1 billion — the room for improvement is indeed vast.

Much ado will be made by many, myself included, as to the tone and direction carved out by the new government’s first foray into Manitoba’s finances. Yet, for the Winnipeg Chamber of Commerce, our expectations for Budget 2016 haven’t changed materially from those previous.

What has changed is an expectation that the new government will heed the repeated mistakes of the past and embrace the opportunity to lay a solid financial foundation characterized by responsibility, empowerment and innovation. In doing so, Budget 2016 has the real potential to transcend from mere line-item accounting to the beginning of a revitalized Manitoba that inspires, excites and attracts people and prosperity.

Manitoba’s books must return to black if we are to create individual and investor confidence that Manitoba is a solid proposition for long-term commitment. However, it is unrealistic to expect a return to balanced budgets overnight. Manitoba’s financial quagmire was years in the making and will take years to rectify.

What is realistic is the expectation of a firm commitment, timeline and action plan. To that end, Budget 2016 must demonstrate that the annual ritual of runaway deficits that defined the last decade has ended, and Manitobans can now confidently expect real and substantial annual reductions in the deficit.

This call to action on fiscal responsibility is neither ideology nor austerity, which has become the new buzzword designed to fan the fires of fear. Since when is living within your means an ideology? My parents just called it life.

Budget 2016 should also set the stage for the introduction of a three-year budget cycle to promote longer-term planning and results orientation through more stable and predictable funding for departments. The Council of the European Union’s multi-annual financial framework (MFF) enables member countries to undertake spending commitments over multiple years, ensuring both budgetary discipline and flexibility against evolving pressures. As part of the 2014-20 MFF, a number of performance improvements were introduced to enable enhanced budget management for results.

The new government’s pledge to reduce the PST to seven per cent should prompt a wider consideration and treatment of Manitoba’s tax regime. Eighteen years have passed since Manitoba last conducted a comprehensive review of our tax system through the Manitoba Lower Tax Commission.

Friesen, through Budget 2016, can do more than play around the fringes. The announcement of a public commission to press reset on Manitoba’s tax matrix, to ensure it is relevant, competitive and fair for all, is needed.

In the interim, Budget 2016 should move immediately to modernize Manitoba’s basic personal income tax exemption to match the federal exemption, and institute indexation for all income tax brackets to encourage, rather than penalize, Manitobans for personal growth.

Efficiency is absolutely a key factor for success. Claims that the provincial government is efficient already belie the fact that efficiency isn’t a destination, but a process of continual pursuit.

The time for a reinvention of our public services has never been stronger, and Budget 2016 must trumpet its arrival. Our public services require a modern innovation mandate, the hallmarks of which include results-based programming with service goals and standards; resource flexibility and budgeting agility for more experimentation; redesigned government department structures built around forging multi-disciplinary teams; and co-designed and co-delivered services that engage the private, not-for-profit and other community stakeholders.

There is one area for which the business community has exceedingly high expectations in Budget 2016 and beyond.

According to the 2015 state of the business community survey, sponsored by the chamber and World Trade Centre Winnipeg, almost 60 per cent of respondents indicated that the former NDP government had stopped listening to the needs and concerns of local business.

For the first time in a long time, we now look forward to an open mind and attentive ear on Broadway, one that weighs the needs and aspirations of all Manitobans equally.

Ultimately, successful budgets go beyond balancing the books, creating a competitive climate and providing vital public services. They generate optimism, inspire confidence and prompt people to action. That’s the opportunity for Budget 2016.

Loren Remillard is the executive vice-president of the Winnipeg Chamber of Commerce.