At the Manitoba Heavy Construction Association’s Leaders’ Forum on Thursday, September 25, Manitoba Premier Wab Kinew released his government’s new Economic Development Strategy in front of a packed crowd. The forum was titled “Growing the Economy” and was sponsored by fourteen business organizations. This bold initiative outlines the Premier’s plan to make Manitoba a ‘Have Province’ by 2040.
The core message was reducing or eliminating dependency on federal equalization by boosting provincial economic performance (GDP per capita) relative to other provinces. The Premier spoke extensively about Manitoba’s productivity, which he stated has been in decline since 2015, and how we need to build our province so our children and grandchildren have bright futures.
Here are the pillars of his plan.
1. Productivity Enhancing Investments
The government is committing to a new $50 million business loan program to Manitoba companies to finance productivity while enhancing investments. This means creating jobs with competitive wages in the sectors of new equipment and technology, including both unionized and non-unionized work. The Premier also referenced how there needs to be buy-in by private companies to unlock this potential. This specifically centred around the expansion of the Port of Churchill, and productivity growth, referring to the mega-project as a $30 billion dollar opportunity for the province. The Manitoba government wants to be a leader – not an equalization recipient. To achieve this, private dollars need to be part of the next phase of this project.
2. Tax Incentives – Credits
The government is going to Increase the small‑business venture capital tax credit by 36%, with a cap of up to $30 million. This will convert a portion of the Manufacturing Investment Tax Credit into an immediate retail sales tax exemption on new machinery and equipment. This means savings are realized immediately rather than via a credit later. This will reduce the lending businesses’ need to take on to make capital investments, improving cash flow upfront.
3. Retaining young people
During his address, the premier referenced misalignment between what is being taught in schools and the skills businesses are looking for. The strategy strengthens career development in schools to expand apprenticeship completion and build stronger connections between post-secondary institutions and employers. Ensuring graduates have clear pathways to rewarding jobs in Manitoba.
Building Manitoba and investing will also mean making sure people have safe places to call home. The Premier reiterated his commitment to moving Manitobans along the housing continuum, out of encampments and into more social housing units that the province is committed to building. The real challenge is space and determining where new housing units can be built within the city of Winnipeg and outside the perimeter.
The Manitoba Legislature resumes sitting next week, October 1, immediately following National Day for Truth and Reconciliation, a provincial statutory holiday enshrined under the Kinew government.
Expect this next session to be focused on building the economy, making headway on wait times – especially MRI’s, moving folks out of encampments, and as the Premier says, ‘Building One Manitoba.’