Preamble: In today’s globally competitive business environment it is imperative that government create a climate that attracts new business and allows existing businesses to prosper.

Various economic indicators have shown that Manitoba has continually lagged behind other provinces. Whether it is taxation levels, job growth numbers or average weekly wages Manitoba has not performed at an acceptable level

Business leaders have clearly told us that they don’t believe Manitoba’s business climate is competitive with other provinces. In an effort to achieve a more economically competitive climate in Manitoba business leaders have indicated that increased tax relief is a key component. The only way taxes can be reduced however is through a combination of increased revenues and a reduction in spending.

Resolution:  That the Government of Manitoba: 

a) create a culture in the public sector that inspires and rewards employees for finding efficiencies;

b) review all programs every year to determine where the payoffs are the greatest and identify areas where spending can be reduced or eliminated;

c) further to the efforts described in c), establish a Commission on Efficiencies that engages the public in an effort to determine if the services provided by the Province are being done in a cost-effective and efficient manner; and

d) consider the use of ‘sunset clauses’ in all new program spending.

Resolution Report:  

MCC Advocacy (additions since last report are in italics):

May 21, 2008: An MCC ‘Inside the Chamber’ Web Story entitled “IT HAPPENED AT THE AGM: PART 3 – MCC Announces Resolutions For 2008-2009″ provided access to each and every Resolution passed at the AGM. Notice of this story was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.

June 4, 2008: For the first time ever the MCC made available its handbook on ‘Policies & Resolutions’ which contains Resolutions in one handy format. An MCC ‘Inside the Chamber’ Web Story entitled “MCC Releases Policy Handbook” announced this initiative. Notice of this story was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.

June 6, 2008: Resolution books were sent to every MLA and every Member of Parliament that hails from Manitoba. The following had this Resolution specifically drawn to their attention with a detailed letter setting out the background to this issue, Government initiatives (where applicable), and an argument for the Resolution:

• Minister of Finance

October 2, 2008: Forwarded a Resolution report to the local chamber that sponsored this Resolution seeking input as to how this issue can move forward.

October 20, 2008: The 2008 third quarter edition of the Focus mentioned this Resolution in its report on the MCC AGM. The Focus magazine goes out to 10,000 businesses and community leaders across Manitoba.

December 3, 2008: A web story covering the Minister of Finance’s edition of the MCC Speaker Series highlighted this Resolution. Notice of this story was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.

February 26, 2009: This Resolution was featured in the MCC’s Pre-Budget submission to the Government of Manitoba. The submission was posted on the MCC website and was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.

Developments (additions since last report are in italics):

September 30, 2008: The Minister of Finance wrote to the Manitoba Chambers as follows:

The expenditure and revenue amounts presented in your letter reflect the Budget estimates of revenue and expense in each year. As such, the values shown are not adjusted for inflation, yet you have contrasted them with inflation-adjusted GDP growth rates. That might give the impression that revenues and expenditures outpace growth in the economy, and do not reflect changes in the population requiring services.

Since 1999/2000, nominal growth in GDP has been 57.7%. Over the same period, total revenue has grown 53.7% (2008/09 Budget vs. 1999/00 adjusted) in part due to the increase in federal transfers as Ottawa has recommitted to investments in health, social services and the renewed Equalization program. Total expenditure has increased 50.6% (2008/09 Budget vs. 1999/00 adjusted) – less than the 80,5% increase in Manitoba Infrastructure and Transportation department spending, the 78.9% increase in Health spending, and the 66.9% increase in overall (public schools and post-secondary) education spending. (The ‘adjusted’ expenditure and revenue for 1999/2000 reflect public accounts data adjusted for the accounting change relative to provincial-municipal tax sharing and the Building Manitoba Fund.) 

As illustrated by the data above, both revenue and expenditure have grown less than the Manitoba economy; and the growth of both is roughly in proportion to both the need for expanded services and the province’s ability to fund them. As an added point of information, I would like to point out that the growth in taxation revenues over the same period is considerably lower – at 41.6% – reflecting our Government’s commitment to reducing tax rates.

Current Status (additions since last report are in italics):

January 27, 2009: The MCC will mention this issue as part of its 2009 Pre-Budget Submission.