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SUPPLEMENT TO THE WINNIPEG FREE PRESS - SATURDAY, SEPTEMBER 24, 2022
IN CHARGE OF CONSTRUCTION Leading at a critical time for industry
LESSONS FROM THE PANDEMIC PAGE 10
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View online at winnipegfreepress.com/ lifestyles
Inquiries: 204-697-7390
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A SUPPLEMENT TO THE FREE PRESS
Repair, rebuild Canada’s trade-infrastructure reputation
HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT
By Chris Lorenc, President of Manitoba Heavy
Colin Corneau photo
Construction Association and the Western Canada Roadbuilders and Heavy Construction Association P remier Heather Stefanson recently noted in a public release that, this month, she assumes the position of Chair of the next Council of the Federation, and will continue the push for increased federal transfers for health care. We agree on the priority. The pandemic has put our health care facilities and services through the ringer. Canadians should not be anxiously sitting, in pain, on unacceptably long wait lists for hip or knee surgery, or to see a doctor in an emergency room. It will take extraordinary effort, and funding, to repair the damage that COVID-19 has inflicted upon our health care systems. But where will Ottawa find the billions of dollars in increased annual funding the premiers are demanding? Our economy’s health and growth underpin the world-class public services Canadians depend on. And our economy is built on trade. Trade is responsible for 65% of the national GDP and 53% of Manitoba’s economy. So, our trade productivity generates the bulk of government revenues that support health care, education, and the other vital public services Canadians rely on. Trade depends on the efficient movement of goods and services on highways, ports, rail and air. Anything delivered to the doorstep ends its last mile on a road. But, if you can’t move it, you can’t sell it. In August, the Western Canada Roadbuilders and Heavy Construction Association co- signed, along with 8 leading Canadian business organizations, a letter from the Canada West Foundation to Stefanson, pressing her, as Chair of the Council of the Federation, to lead her provincial counterparts in championing significant increase in the national trade corridors fund, to improve the movement of goods in and out of Canada. The CWF in May released its report From Shovel Ready to Shovel Worthy – The Path to a National Trade Infrastructure Plan for the Next Generation of Economic Growth (To read, go to mhca.mb.ca and click on Advocacy and then reports). The report highlights the challenges Canada faces in competing for increased share of global trade markets. It lays out the fundamental first steps toward rebuilding Canada’s reputation as a reliable trade partner and its ability to compete in global trade markets. Canada is seriously lagging in the level of funding it invests on maintaining and building new trade infrastructure, and it does not have a cohesive trade infrastructure investment strategy. Our closest competitors – those vying for the same trade markets as Canada – have for years employed such strategies to identify, prioritize and invest in nation- building infrastructure renewal. Canada must catch up to compete, which is
You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time. At Westcon Equipment & Rentals Ltd. , we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time.At Westcon Equipment & Rentals Ltd. , we know that your work is important.When it comes to machines that are rugged, reliable, and productive,Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job – and unmatched performance that will earn you greater profits. Give us a call to learn more.
HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT HEAVY-DUTY COMMITMENT DEMANDS HEAVY-DUTY EQUIPMENT
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increasingly important in the post-pandemic economic recovery. Premier Stefanson has made clear, repeatedly, her support for increased trade and to ensure Manitoba and Western Canada’s supply chain is reliable and resilient in an era of climate change. Moving into the next meeting with Canada’s premiers in 2023, she has the opportunity to lead this critical economic file, to make the case for revitalizing and recapitalizing trade infrastructure investment so all regions of Canada benefit from the jobs that will be created, the sectors that can flourish, the wealth generated and revenues then returned to government, through increased trade, continentally and with the world. The timing is right. The federal government is undertaking a National Infrastructure Assessment, to know the condition and the needs of our trade transportation system. This is a long past-due initiative, as those who rely on the system know only too well. Canada’s reputation as a trade partner has suffered, domestically and internationally due to falling investment in our trade transportation infrastructure. In 2009, Canada was in the top 10 nations in the World Economic Forum index of trade infrastructure reliability. That plummeted to 32nd, in 2019, just ahead of Azerbaijan. Flowing from the National Infrastructure Assessment, Canada must implement a trade gateway and corridor infrastructure investment strategy. It’s the first step to winning back the confidence of not just investors and manufacturers at home, but those with whom we have penned new or expanded trade agreements. The global lack of confidence in Canada’s trade infrastructure is putting the country’s prosperity and post-COVID economic recovery at risk. Premier Stefanson is well-aware of the hazards, and the opportunities, ahead. Manitoba can lead Canada to sustained prosperity by championing a national trade gateway and corridor investment strategy so we can compete globally with the best.
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You work hard every day and need to get the job done right the first time. At Westcon Equipment & Rentals Ltd., we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job — and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time. At & Rentals Ltd., we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job — and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time. At & Rentals Ltd., we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job — and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time. At Westcon Equipment & Rentals Ltd., we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job — and unmatched performance that will earn you greater profits. Give us a call to learn more. You work hard every day and need to get the job done right the first time. At Westcon Equipment & Rentals Ltd., we know that your work is important. When it comes to machines that are rugged, reliable, and productive, Volvo is the market leader. Our equipment lineup will give you the capability to tackle every job — and unmatched performance that will earn you greater profits. Give us a call to learn more.
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Left to right: Carol Paul, Ellowyn Nadeau, Nicole Chabot and Colleen Munro (Colin Corneau photo)
In charge at a critical time for construction N o one in construction survives long if they’re not built for crisis – the weather, supply issues, workforce shortages.
recruitment,” says Van Buren. “We all want to see ourselves in the industries we work in, and know that we are valued at all levels.” Munro is working a number of options to recruit for her Lilyfield Quarry, in Rosser, and for a relatively new venture, called ROCKGLASS – super-strong material marketed as an “unbreakable” solution for broken glass, while providing security to residential and commercial properties, including heavy equipment. Hugh Munro Construction, in road construction for well over 60 years, decided to expand its business model and, aside from launching ROCKGLASS, concentrated on opening Lilyfield quarry in the RM of Rosser, complementing the operations of its other quarries and its Fort Whyte Lowbedding.
Coming out of COVID, the industry is juggling economic recovery issues and inflationary pressures, of which fuel prices are just the most visible. And this year, the seemingly incessant rain has upended construction schedules. It’s all testing the mettle of Manitoba’s industry leaders, tempered by deep experience from lengthy careers in construction. “There are a lot of challenges (this year),” says Nicole Chabot, Vice-President of contractor L. Chabot Ent. “This is a tough industry, and we’re accustomed to adapting, problem-solving and facing adversity head on.”
Bringing Lilyfield to market required vision and tenacity – others had failed to get it through development-approval hoops – and working with the municipality, community and the provincial government to protect access to valuable aggregate resources. “You have to drop the ego. You have to know and admit you’re not good at everything. You have to find the right people to do the things (you) can’t.” Munro is working with local training institutes to recruit and train glaziers, including MITT and the Manitoba Construction Sector Council, led by Carol Paul. Paul has expanded MCSC’s reach to recruit and train women, newcomers and Indigenous workers, including working with First Nations in Northern Manitoba. One annual highlight is the Manitoba Women in Trades conference, this year being held on November 16. Things are changing in the industry, but you still feel a covert element of discrimination, Paul says. Industry groundbreakers are important, helping to ensure people who haven’t traditionally worked in construction get their break, get mentored, acquire the skills and work their way up. “Colleen and Nicole are so open and receptive when speaking to people,” Paul says. “These women in leadership roles, they don’t have to tower over anybody. They’re humble and they’re determined.” “We’re modernizing the face of industry,” Chabot explains. “We’re an industry for everyone and women are part of making that change.”
Construction tends to throw crises after crises at its leaders, agrees Ellowyn Nadeau, a civil engineer and procurement specialist who now works as a construction management instructor at Red River College Polytechnic. “Every leader has their challenges, whether it’s a global pandemic or recession or a local labour shortage,” says Nadeau. But women handle challenges differently, and that makes a difference in the industry. “We make more effort to gather information and listen to others around us.” Nadeau and Chabot have seen much of it before. Between them they have 60 years in the industry. Today, they share another stage. Chabot was elected Chair of Manitoba Heavy Construction Association in 2020; Nadeau assumed the helm of the Winnipeg Construction Association earlier this year. The women are among a conspicuously female leadership group in the province – and at the national level – stewarding the industry through the current challenges. The industry is very good at adapting to major shifts, Chabot notes, which served it well when the pandemic hit. She also agrees a natural inclination to collaborate means women, especially in leadership roles, are an asset in tough times. “Woman are practical, hard workers with a cooperative, team mentality. We realize the importance of building and surrounding yourself with a smart, qualified team.”
Mary Van Buren says putting the spotlight on women is important for recruitment
The biggest issue is workforce recruitment, and convincing society to regard construction as meaningful work that can provide good-paying jobs and long-term careers. “For a long time, construction was seen as a last resort job for a lot of people. We need to be seen as a first choice,” stresses Chabot, whose company employs an average 90 people, operates permanent quarries in Bird’s Hill, St Clements, and Alexander, and typically works half a dozen jobsites over the capital region. And having women lead that change is a good thing. “The days of people working from sun-up to sundown are not the reality anymore,” she notes. “I feel for people who want to be at home with their families and kids because I feel the same way.” Colleen Munro, President of Hugh Munro Construction, says women tend to think outside the box more, a necessity when the whole business world is struggling to recruit people, post-pandemic. Munro knows the recruitment challenge well. The past MHCA Board Chair is now Chair of the Manitoba Construction Sector Council, established in 2009 specifically for workforce development. Women tend to look for allies and work collectively on problems, she says. “This is one thing women do better. We look for solutions outside of ourselves. It’s who you partner with these days in the labour force.” The work women have done to become part of a non-traditional workplace lends real benefit to the industry’s current challenge to recruit people from a variety of backgrounds, says Mary Van Buren, President of the Canadian Construction Association. “Showcasing more women in leadership roles is important in
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A SUPPLEMENT TO THE FREE PRESS
CIVIC ELECTION 2022
Growing Winnipeg’s economy: mayoral candidates
helps build a robust city that can thrive in the 21st century.” For Gillingham, economic growth enables progress. “Our quality of life, public services, public health, housing, reconciliation and even our ability to pivot to a greener energy mix all depend on the strength of our economy,” he said. Both Murray and Gillingham ranked economic growth as the No. 1 priority. The responses were among the replies to an MHCA survey sent to the mayoral candidates, seeking the policies and ideas of those vying to lead City Council for the next four years. Council candidates were sent a similar questionnaire. Shaun Loney, a social equity businessman, also sent in his priorities. Klein stressed that halting the exodus of Winnipeggers is the first step to returning the city to economic growth. “Once we have addressed the issues associated with disappearing residents and businesses, then the City will be set on a path for growth.” But moving to sustainable growth also depends on accountability and transparency. As mayor, Klein would introduce a cost-benefit or return-on-investment analysis for city projects. He joined Murray and Gillingham in underscoring the importance of collaboration
among capital region municipalities to promote development and investment that benefit all. Murray said collaborative and efficient approaches in the capital region are needed for land use planning, delivery of water and sewer services, and building roads connecting communities. Gillingham, drawing on his experience on the Winnipeg Metropolitan Region’s board, said a capital region economic development plan is needed to promote collaboration so the municipalities compete against other capital region jurisdictions, not each other. He also said CentrePort Canada’s full build-out is critical to realizing the region’s economic potential. “With its tri-modal advantage, CentrePort South will be one of the region’s most important employment lands and economic activity hub in the future.” Murray said if he were mayor, he’d consider the economic advantages of the proposed CentrePort South expansion. For Loney, creating green jobs for young people holds greatest potential for economic growth. But he is also concerned about the lack of progress on CentrePort South and sees a need to address the lack of serviced commercial and industrial land in Winnipeg. Both Murray and Gillingham were strong
204-989-4700 3000 Main St. West St. Paul, MB www.jcpavingltd.ca Klein said the city has to get its finances – and its accountability – in order before it can be seen to lobby for greater tax revenues and funding from the province and Ottawa. “The federal and provincial governments can see how the city hasn’t properly managed its finances, even with an almost 20% increase in tax rates (2.33% a year) over the past 8 years,” he replied. The municipal election is on October 26. advocates of striking a new, fairer deal so the municipality can see greater share of tax revenues with higher levels of government and generate new revenues. “To me, the critical issue isn’t just more revenue - it is finding a revenue model that grows with the economy so that city officials see a clearer incentive to support growth,” said Gillingham, who noted his platform has a ‘new fiscal deal’ plank. Murray said he would re-ignite the work he started, as mayor of Winnipeg in the mid-1990s, on the ‘New Deal for Cities’ campaign, “advocating for an improved, longer-term funding formula that further helps cities prosper, including through infrastructure funding.” US cities, including those within Winnipeg’s trade zone, he said, have stronger and more diversified revenues and greater abilities to manage costs.
F ront-runners for the mayor’s office in Winnipeg all agree on something: growing the capital city’s economy, including as part of the metropolitan region, is a top priority. Economic growth is a top priority of former Winnipeg mayor and former Ontario MPP Glen Murray, Coun. Scott Gillingham, who chaired city council’s finance committee for five years including through the stormy economic pandemic years and Coun. Kevin Klein, who represents Charleswood-Tuxedo-Westwood. “Our city is only as healthy as its least healthy residents. Everyone should have access to the benefits of public infrastructure, amenities and services,” said Murray. “Economic growth, if managed in a more equitable way, lifts up our entire city and helps it to prosper and attract new residents, wealth and growth.” He said sustained economic growth flows through ensuring a ‘return-on-investment’ lens is used in infrastructure funding decisions. Broader public investment needs to be justified on “whether it anchors and furthers our long-term success and prosperity, and
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GROWING OUR ECONOMY – PRIORITIES FOR WINNIPEG CITY COUNCIL
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• Elevate the Manager of Economic Development position to a level equivalent, or reporting, to the CAO PRESS FOR SUCCESSOR AGREEMENTS WITH SENIOR LEVELS OF GOVERNMENT • Press the province to enter into a ‘new fiscal deal’ with municipalities; and, press Ottawa and Manitoba for a successor plan to the accelerated regional street agreement DEVELOP A DETAILED STRATEGIC TRANSPORTATION INFRASTRUCTURE PLAN • Task a stakeholder group to recommend a detailed Strategic Transportation Infrastructure Plan that holds strategic goals, identifies where growth will occur, defines an appropriate “level of service” and prioritizes projects with the best ROI to GDP UPDATE FULL TRANSPORTATION SYSTEM CONDITION, NEEDS AND SUSTAINABLE FUNDING MODEL • Public Works report should provide an updated assessment of the condition and needs of local and regional streets, AT (including bicycle lanes) and dedicated bus lanes, and separately, bridges and structures – complete with dedicated financial strategies for each BUILDING BETTER ROADS • Create a Design Specification and Resource Management committee to consider research on and adoption of materials specifications used to build roads, along with their environmental and resource management impacts. To read MHCA’s full recommendations for City Council economic growth priorities click here: https://tinyurl.com/bdetd4vp
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Good roads key to Winnipeg’s growth, progress
L eading candidates for Winnipeg’s next may- or say a dependable transportation system is key to the city’s growth and future as a progressive community where all can thrive. The renewal of roads and infrastructure is an important to keeping Winnipeg vibrant, healthy and growing, says Glen Murray, who currently leads in the public opinion polls for the city’s mayoral race. “Roads and infrastructure are foundational to generating wealth in a city and building the economy,” Murray said. The MHCA sent mayoral candidates a questionnaire on a range of economic and road renewal issues, including where they rank road renewal as a priority. Murray said road renewal would rank as No. 1: “It needs to be done in a visionary and sustainable way that accommodates all modes of transportation and reduces our environmental footprint. “While roads must be designed well for their mobility functions, they also must be platforms for commerce and culture, and designed to build prosperous and beautiful communities.” Scott Gillingham said road renewal has been a high priority – and will continue as such – in every budget he submitted as Finance Chair of City Council for the last 5 years. But road renewal must be done in tandem with safety improvements, as a matter of social equity. “Road renewal will be the single largest consistent item in our budget after policing, and the single largest general budget in our capital plan,” Gillingham pledged. “My budget will include additional investments beyond those record levels.” Coun. Kevin Klein said as mayor he would make a ‘safer city’ his No. 1 priority, which beyond crime means ensuring all infrastructure is safe. “I will not tolerate structural collapses or major sinkholes and will strongly advocate for the funding to address such repairs as priorities in a new strategic infrastructure management plan developed with the co- operation of industry stakeholders and professionals,” Klein responded. All three candidates tied road renewal to a broader, strategic view of Winnipeg’s transportation network plans, to serve commerce and development for a stronger economy. And they spoke to the value of CentrePort Canada and the capital region, as a magnet for industry and commerce. Shaun Loney, who has experience in social equity enterprise, said he favours shifting the infrastructure priorities to a “fix it first” approach, doing a better job of looking after existing infrastructure before building in new areas. Loney would focus on transportation electrification and green infrastructure, such as solar. The annual budgets for local and regional street renewal have been under pressure in recent years as councillors look to the revenues raised by the “dedicated” 2% annual road tax to fund other priorities. In 2019, bridge repair became eligible to dip into the reserves raised by the 2% annual tax, for example, and more recently there have been calls to make the revenues available to fund active transportation facilities. Gillingham noted he voted for the capital budgets that broadened the funding criteria to include bridges. “If bridges are not financed, built or repaired, it will not matter much to drivers if the roads leading to them were renewed, since a closed bridge will do a lot more damage to our network than a broken road,” he said. Murray said the dedicated 2% tax increase, in conjunction with federal and provincial financing, has enabled significant upgrades to the road network. However, a lot of work is ahead to catch up on the infrastructure deficit and support all modes of transport, he added, noting the solution lies in negotiating a better city-financing deal with the province. Klein said he believes the city has not managed its finances well, and lacks accountability and transparency, which he would address. Still, the 2% tax revenues raised for infrastructure “will not be shelled out to other areas – we will stop the process of mixing accounts.” The MHCA has proposed that Winnipeg City Council establish a design specification and resource management committee, to bring industry and administration together on how roads are constructed and the materials used, along with resource-management practices. The candidates said they supported such a collaborative initiative; Loney noting he would be keen to discuss the idea. Murray said he would go further and develop Winnipeg as an infrastructure innovation lab, built on a wider partnership that included academic input. Gillingham said such a committee would also be tasked to negotiate an annual, joint “construction inflation price adjustment” based on data, added to pre-tendered road renewal contracts that can be signed three years ahead of annual capital budgets. “I would like to see Winnipeg at the international forefront of developing infrastructure solutions for cold weather climates,” noted Klein.
Phil Hossack photo
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Raising Canada’s global profile through trade infrastructure
By Mary Van Buren President, Canadian Construction Association C anada’s reputation as a trading na- tion is in steep decline. In just 10 years the country has fallen from 10th position to 32nd in terms of global confidence in its trade transportation infrastructure – just below Azerbaijan and ahead of Turkey and Saudi Arabia. While 65% of Canada’s GDP relies on trade, the federal government is only investing 0.9% of it – $21 billion annually – in transport infrastructure. This lack of investment is putting our nation at serious economic risk. A recent report by the Canada West Foundation, funded in part by the Canadian Construction Association (CCA) and our partners at the Western Canada Roadbuilders & Heavy Construction Association, looks at the importance of scaling up Canada’s trade infrastructure to fuel economic growth and improve the everyday lives of Canadians. From shovel ready to shovel worthy: The path to a national trade infrastructure plan identifies how the lack of coordinated and strategic infrastructure planning and investments has threatened Canada’s status as a trusted global trading partner. We need a long-term investment plan. It is vital that we move from quick fixes to a strategy that focuses on long-term solutions and value for Canadians. The Western Canada Trade Gateway & Corridor Initiative (WCTG&CI) has been sounding the same alarm. Scaling up our trade-enabling infrastructure – our roads, marine and inland ports, railways, airports and bridges – will build supply chain capacity, create transformational jobs and fuel our global competitiveness. The report charts a path forward that includes identifying Canada’s key trade gateways and corridors and establishing a national body to ensure key partners, including industry, are consulted so that all possible angles and expertise are considered when making future investments. More investment is needed for Canada to remain globally competitive, expand into new and emerging markets, attract investors, and boost employment. We need to show Canada can deliver the goods to market through a strategic trade infrastructure program. The federal government’s current National Infrastructure Assessment is an opportunity to etch a trade infrastructure plan into Canada’s long-term vision. A growth economy needs to include safe, sustainable and reliable transport infrastructure. These structures and facilities link resources to
industry, people to jobs and products to market. Unfortunately, there has been little concrete action to come out of the Assessment; meanwhile, other countries are building back from the impact of the COVID-19 pandemic. Building with resilience in the face of climate risks and enhancing our trade-enabling infrastructure will position us for long-term growth. Future investments must also be coherent, long-term, and guided by an independent body that can align federal, provincial, municipal, and Indigenous needs. Programs like the Investing in Canada Plan have fallen short of their targets because of the disconnect between federal priorities and provincial needs. Procurement methods must also be streamlined and modernized through the engagement of industry experts. The 2022 Federal Budget made some modest investments to improve supply- chain infrastructure and support the existing National Trade Corridors Fund, but it is not enough. Just to match the UK on a proportionate basis, we would require an additional $13 billion annually. Investing in trade transportation infrastructure is about getting goods to and from our domestic and overseas markets. But it’s also about ensuring the standard of living Canadians enjoy will continue, through the economic returns – including revenues to government – that spin off from those investments. Building for today’s communities and tomorrow’s Canada requires long-term planning and a well-developed trade infrastructure plan. That will pay dividends in return by accelerating economic recovery, increasing jobs and the diversity of opportunities available in the sector, combatting climate change, and supporting a strong supply chain.
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Tax-system review can help ALL Manitobans prosper
government undertook a tax-system review. And here is why it’s important. When looking at tax rates, the one that impacts all Manitobans is the Basic Personal Exemption (BPE), which is the amount of income an individual can earn before they are subject to personal income tax. In the most recent provincial budget, the province raised Manitoba’s BPE to $10,145. This is well behind the rate set in Ontario ($11,141), British Columbia ($11,302) Saskatchewan ($16,615) and Alberta ($19,369). Another area where there is room for significant improvement to be competitive with other jurisdictions is personal income tax rates and brackets. In Manitoba our lowest tax bracket is 10.8% and it ends at $34,431. Meanwhile, in Saskatchewan the lowest tax bracket ends at $46,773 and is 10.5%. What is even more problematic from a competitive standpoint is that the highest tax bracket in Manitoba starts at $74,417 and is 17.4%. Again, looking at our neighbour to the west, the top tax rate starts at $144,639 and is only 14.5%. With a highly mobile workforce and shortages across the country, having personal income tax rates that are competitive is essential. There are some areas where Manitoba is competitive, such as the General Corporate tax rate which sits at 12%, the same as Saskatchewan and B.C., and behind only Ontario (at 11.5%) and Alberta (8%).
When it comes to Small Business Tax, Manitoba leads the pack with a rate of 0% for businesses with income under $500,000. But on the flipside, business leaders have told us repeatedly the biggest barrier in Manitoba is the Health and Post-Secondary Education Tax Levy, better known as the payroll tax. Among the provinces, only Ontario and Manitoba charge a payroll tax. This tax is imposed on all employers with a payroll of $1.75 million (scheduled to increase to $2 million on January 1, 2023) and they pay 2.15%. Many employers have indicated this tax is a disincentive to grow their business. Now is the perfect time to focus on growing the Manitoba economy, and tax policy that supports the following three principles will help achieve that: • Growth – The tax system should stimulate economic growth. • Transparency – The tax system should be structured so that its intent can be clearly understood by the taxpayers and administered by authorities in an impartial and predictable manner. • Accountability – The government must be publicly accountable to taxpayers for revenues it raises and expends. The end results will leave more money in the pockets of all Manitobans, produce more jobs and create a more competitive businesses environment.
By Chuck Davidson, President & CEO of the Manitoba Chambers of Commerce T he past two years have been difficult for all Manitobans as the pandemic created numerous economic chal- lenges for thousands of businesses in the province. On top of that, workforce shortages, supply-chain challenges, increased costs, rising inflation and interest rates have resulted in the recovery not occurring at the pace we need. In today’s globally competitive business environment, the Manitoba Chambers of Commerce believes it is imperative for government to create a climate that attracts new business and enables existing businesses to grow and thrive in Manitoba. According to the 2021 Manitoba Business Outlook Survey, only 50% of small business owners believe Manitoba’s business climate is competitive with other provinces. Manitoba has been falling behind other provinces for 20 years – especially in the area of taxation. As the demand for skilled workers grows, Manitoba must take a generational look at how we can compete with other provinces. Other provinces have capitalized on areas where they can make the biggest impact on attracting workers, and it has left Manitoba playing catchup. It’s one of the reasons why the Manitoba
Chambers of Commerce has had long- standing policy calling on the provincial government to undertake a review of the tax structure (both personal and corporate), focused on examining: • Implementation of long-term provincial strategies to provide the business community with confidence and certainty that tax reduction is a priority, and • Setting a target of putting Manitoba’s tax levels and provincial tax threshold levels in the top three “most competitive” provinces. It has been decades since the Manitoba
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