What Economic Slowdown

• CTF outlines "The Good, The Bad and The Ugly" from Throne Speech/Economic Update
• CTF Calls for All-Party Committee to Conduct Spending Review

Winnipeg: The Canadian Taxpayers Federation (CTF) responded today to the provincial throne speech and economic statement by releasing a "The Good, The Bad and The Ugly" analysis.

"The government's steady as she goes approach completely ignores the fact that Manitoba is in tough economic times" said CTF Manitoba director Colin Craig "The government should be cutting non-priority spending, not starting up programs that tell people how to open up bank accounts."

"The Good"

Previously announced tax relief will proceed as planned. This includes:

• Small reductions to personal income taxes
• A reduction to the small business tax rate from 2% to 1% as of January 1, 2009
• A reduction in the corporate tax rate from 13 to 12% as of July 1, 2009
• Continued phase-out of the capital tax
• Aviation fuel tax relief to support new CentrePort initiative 

"The Bad"

• No acknowledgement of need to curb spending (non-health care spending up 6% from 2007 budget)
• No material fiscal update details - i.e. details on potential withdraw on rainy day fund
• More social programs (i.e. Financial Literacy Initiative), increased corporate welfare (i.e. Business Start) 

"The Ugly"

• No long term plan for reducing dependency on handouts from other province
• No long term plan for debt repayment
• No long term plan for tax relief 

The CTF Recommends:

• Immediately halt all discretionary spending (trips, hiring freeze, non-priority capital projects, non-priority grants)
• Cut spending (i.e. promo items, corporate welfare, advertising)
• Strike all-party committee to review government-wide spending and consider areas for:

1. Asset/land sales
2. P3's/contracting out
3. Program elimination
4. Government-wide salary review
5. Develop long-term plans in the area of debt repayment, reduced dependency and tax relief.

- BACKGROUNDER -

Over the last ten budgets, no province in Canada has become more dependent on handouts from other governments than the province of Manitoba. This is largely due to significant increases in spending across the board.

In fact, taking health care expenditures out of the equation, since the 2007/08 budget, spending has increased across the board by 6%, more than double Manitoba's inflation rate.

In order for Manitoba's provincial government to become a sustainable entity that can provide the services required of government, it needs a long-term plan to reduce non-priority reduce spending, tackle the debt, reduce taxation levels and embrace the private sector.