April 8, 2009

Manitoba keeps budget balanced during downturn

RICHARD GILBERT

staff writer

Manitoba’s balanced budget includes stimulus spending designed to boost the construction of basic infrastructure.

It increases infrastructure spending by $625 million to $1.6 billion.

Finance Minister Greg Selinger predicted that the increased spending will create 10,000 jobs this year.

“Infrastructure at the provincial level is usually a code word for highways, bridges, sewers and any kind of construction work that is paid for by one of the three levels of government,” said John Doyle, the Manitoba Federation of Labour’s communications co-ordinator.

“So that’s good news for our members in the construction sector.

“From the standpoint of the construction sector, particularly road and heavy construction, the provincial budget contained significant earmarks.”

Infrastructure spending includes: $545 million to upgrade and build roads and highways; $46 million for water and waste-water projects; $160 million for social housing renewal; a four-year capital plan to construct new schools and renovate existing facilities; and investment in the construction of health care facilities.

“As far as infrastructure spending is concerned, it’s a matter of how fast it gets going,” said Larry Bockstael, president of Bockstael Construction.

“We are predominantly interested in health care and education, but there is always a good spin off in the construction of roads for concrete and structural work, as well as small bridges.”

The president of the Manitoba Heavy Construction Association agreed that the government is moving in the right direction with this budget.

“It (the budget) offers an interesting and balanced approach which recognizes that decisions have to be made to try and protect economic momentum in Manitoba during an extraordinary global recession,” said Chris Lorenc.

The government has drawn on reserves in order to balance the budget, cut taxes and maintain spending during a period of economic weakness.

The government’s will also reduce debt payments over the next two years.

“The budget also did some key advances by putting more money into skills training and apprenticeship training to make sure that we have the skilled workers to do all this,” said Doyle.

“They have also made sure the Manitoba Bursary fund is healthy and able to respond to the needs of students leaving high school and going into post-secondary institutions or skilled training programs.”

The budget provides additional seats for apprentices and a new bursary fund for prospective apprentices, as well as new tax credits for employers who provide apprenticeship placements.

“The education and apprenticeship tax credit is good,” said Bockstael. “It will provide significantly more funding to Red River College, which is excellent.”

The general corporate income tax rate will drop from 13 per cent to 12 per cent as of July 1, and the tax for small businesses (with income up to $400,000) will be cut to zero as of December 1, 2010.

The general Corporation Capital Tax will still be fully phased out by the end of 2010.

Print | Email | Comment