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Economic uncertainty could affect Manitoba government's plans: Doer
Last Updated: Friday, October 17, 2008 | 4:12 PM CT CBC News


Will the Manitoba government backtrack on its promise to cut taxes for businesses?

NDP Premier Gary Doer seemed to suggest Friday that global financial problems could change the government's plans for the province.

Doer, heading off to Montreal Friday to talk with other Canadian premiers about the volatile economy, said Manitoba may fast-track some infrastructure projects — such as upgrades to Winnipeg's wastewater treatment system — to get them done ahead of tougher economic times.

But when asked if he would also accelerate promised tax cuts for businesses, Doer replied: "The first question you should ask is, 'Will you honour those?'"

The answer to his question, however, was a bit unclear.

In releasing its latest budget last April, Doer said the government would cut the small business tax rate to one per cent in January 2009, and cut the general corporation income tax rate to 12 per cent in July 2009, a cut of one percentage point to each.

"Everything is subject to balancing the budget," he said Friday.

"We will continue to look at revenues and expenditures and come forward, and I would not speculate at all … we're doing all our due diligence, as you would expect. That's where we are — doing due diligence."

Opposition leader Hugh McFadyen, a Progressive Conservative, said he was not surprised to hear Doer hedging.

"They've always put an asterisk next to those numbers in the budgets and said, 'subject to balanced budget requirements,'" he said.

"Well, the fact is, Bill 38 doesn't require them to balance their budget anymore."

Bill 38, the Balanced Budget, Fiscal Management and Taxpayer Accountability Act, passed earlier this month, allows the government to balance its budget over four years, rather than one, as was previously required.

Doer met with business and labour leaders in Manitoba on Thursday, ahead of the Montreal premiers' meeting, and said Friday he would raise several topics they had discussed, including increasing business access to credit and enhancing trade with China, India, Europe and other markets.

Manitoba’s diversified economy is performing relatively well and is expected to be among the better performers in 2008, Doer added. The province is also outperforming the Canadian average on a majority of indicators including retail sales, weekly income and overall exports