WEDNESDAY NOVEMBER 9, 2016 5
A SUPPLEMENT TO THE WINNIPEG FREE PRESS
ECONOMIC GROWTH MUST DRIVE PUBLIC POLICY DECISIONS
ACCORDING TO THE PROVINCE OF MANITOBA’S OWN ECONOMIC FORECAST, THE PROVINCE’S REAL GDP IS EXPECTED TO GROW BY 2.1 PER CENT THIS YEAR – WELL ABOVE THE CANADIAN AVERAGE OF 1.3 PER CENT – AND BY 2.2 PER CENT IN 2017. W hen looking at other key economic indicators such as Manitoba’s unemployment rate of six per cent — again, better than Canada’s seven per cent — and retail sales that have increased by 6.7 per cent in the first six months of 2016, you would think Manitoba’s economy was firing on all cylinders. But that’s not the case. According to the Manitoba Prosperity Report, which compares a number of key economic indicators with the three other Western provinces, Manitoba has some work to do to compete. Take, for example, both high school and post-secondary graduation rates. While Manitoba is experiencing improvements in both
per week than that same worker in Alberta, and $100 less than someone in Saskatchewan. When you add in the fact that the Basic Personal Tax Exemption in both Alberta and Saskatchewan is almost double the exemption in Manitoba, and that personal income tax rates are significantly better in those provinces, the financial benefits of living in those provinces become clearly evident. There is no question the Pallister government’s first six months in office have proven to be challenging, with its first budget projecting a deficit of over $900 million and Finance Minister Cameron Friesen indicating that it would be another eight years before Manitoba would be able to balance the books. This prompted S&P Global Ratings (previously known as Standard and Poor’s), to bump the province’s credit rating to AA- from AA. The agency says the downgrade reflects the expectation that Manitoba will have a sustained debt burden for several years that is higher than that of its peers, and that the negative outlook reflects the view that the province
The provincial government has started the process of conducting a comprehensive value-for-money review of government spending to ensure better value for taxpayer money. At the same time, it has committed to establishing a Red Tape Reduction Task Force to cut unnecessary red tape that stifles growth and kills job creation. The Manitoba Chambers of Commerce (MCC) believes that measures such as these are crucial to getting our provincial finances in order and restoring confidence in the business community. Prior to the spring provincial election, MCC and five other prominent business organizations in the province urged political parties to support seven key public policy pillars that are critical to “Growing Manitoba’s Economy.” Based on Manitoba’s financial situation, the most critical of those seven pillars is fiscal competitiveness. Manitoba must have an effective and fiscally prudent government committed to creating a competitive tax jurisdiction to attract and retain new investment. MCC has argued that for Manitoba to achieve the level of prosperity needed to take our economy to the next level, the provincial government must share with Manitobans its commitment to ensuring that economic growth is the driving force behind all its decisions. And while there is still a lot of work to be done, it appears the government is listening. Chuck Davidson is president of the Manitoba Chambers of Commerce. ■
> When it comes to average weekly wages, a Manitoba worker earns almost $300 less per week than that same worker in Alberta , and $100 less than someone in Saskatchewan
faces significant challenges bringing itself back into fiscal balance. While it may look bleak for the Manitoba economy in the short term, some of the measures the current government is undertaking do provide confidence to the business community over the long term.
of these important categories, we still rank dead last when compared with the provinces that make up the New West Partnership. In addition, when it comes to average weekly wages, a Manitoba worker earns almost $300 less
BY CHUCK DAVIDSON
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2016-10-20 2:32 PM
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