The Manitoba government has charted its financial course for the next fiscal year, though northern Manitoba MLAs and opposition figures find the budget lacking in help for the north.
The biggest headlines in Winnipeg were devoted to the one per cent decrease in the provincial sales tax, which is slated to go from eight per cent to seven per cent on July 1.
“In 2016, we promised to cut the PST. We’re keeping our promise. We’re working hard for Manitobans; working hard to help those who need it most,” reads the budget address by provincial finance minister Scott Fielding.
“Seniors living on a fixed income. Single parents. Small business owners. Young Manitobans entering the workforce. We are giving Manitobans the government they want, at a price they can afford.”
In an interview with The Reminder, Manitoba NDP leader Wab Kinew said emphasizing tax cuts instead of finding ways to increase funds either internally or externally could have negative effects.
“Is it worth it? I think that’s what a lot of Manitobans are asking. Is it worth it to see emergency rooms in Winnipeg close, to see the waits in Flin Flon, to see northern patient transportation deteriorate, all these things that we’re seeing change, whether its birth care leaving Flin Flon, whether it’s the Northern Patient Transportation Program falling to bad times, all these changes are happening because the government’s cuts. They’re so obsessed with this one PST thing, but there’s so much damage they’re causing to other areas that I think people should consider,” he said.
No funding dedicated specifically to projects within Flin Flon was dedicated in the budget, with few funding announcements specific to northern locales listed in the document. One project will include improvements to airports in St. Theresa Point, Norway House and Shamattawa.
The lack of firm investment commitment has drawn the ire of Flin Flon MLA Tom Lindsey.
“It’s not going to be good news for us. We need more investments in the north, not less. Mining is in serious trouble. We need exploration happening and we need more investment, certainly when it comes to health care in our region. I’m not sure what else they can cut without things shutting down altogether. More investment, not less, would be the answer,” he said.
The province announced more than $1 billion in funds for what it terms “strategic infrastructure”, including hospitals, schools, roads, bridges and other structures. Also included in the budget were funding allocations for 35 new primary care paramedic positions, 27 RCMP officers, setting aside $20 million for a new addictions and mental health agreement with the federal government and opening five new or enhanced health care facilities in southern Manitoba.
However, Kinew said funding for health care and education has creeped to below the rate of inflation, with increases of less than one per cent for both areas.
“I don’t need to tell people in Flin Flon that the situation with health care is getting worse and worse under this government. They responded to that crisis by cutting another $120 million from the health budget,” said Kinew.
“They’re cutting $100,000 from LifeFlight, so if people have an emergency and they need to be flown out to the Health Sciences Centre, that program is seeing a reduction. There’s also a cut to the highways budget, so that’s going to impact a lot of the roads that people depend on, $11 million from highways. If we look across the board, this is the conservatives taking scissors out and cutting everything - education, health care, highways.”
Mining shifts
Funding for resource development under the Ministry of Growth, Enterprise and Trade has been reduced, going from around $11,522,000 last year to an estimated $11,290,000 in spending this year. Most of the $232,000 cut will be from salaries and employee benefits, which will see a $127,000 decrease.
In the budget document itself, the province states the mineral and petroleum sectors pumped in $2.7 billion to Manitoba’s economy last year, rising by 17 per cent over the past year and employed 5,700 workers.
Those numbers are boosted mostly by an increase in petroleum value, which increased by 17.9 per cent. However, copper, nickel and zinc production declined by 12.3, 18.4 and 18.9 per cent each.
The number of major mines has been cut in half over the past two years, going from six operating in 2017 to only three with the closure of most work at the Birchtree mine in Thompson, the shutdown of Vale Canada’s smelting and refining operations in Thompson and the closure of Hudbay’s Reed mine last July.
The three mines left in Manitoba are the 777 and Lalor mines in Flin Flon and Snow Lake and the Thompson mine. 777 is anticipated to shut down by 2021, along with a likely closure of the Flin Flon zinc plant and mill.
The province cites the proceeding Alamos Gold project near Lynn Lake and the work at the former Puffy Lake mine site by Minnova as signs of hope for the industry.
Kinew said the government’s strategy for the industry is in need of improvement.
“For me, it’s clear what Flin Flon needs, as a community. Flin Flon needs exploration done so that we can find another ore deposit. The news about Snow Lake is certainly welcome, but I think for Flin Flon, to stay stable too is a major priority. The government can play a role,” he said.
“The government can use the Mining Community Reserve Fund, the government can make source investments to try and develop the industry across the north. That’s what they should be doing. However, the fact that we don’t see them doing that is a sign that this government, their priority is not the north. You can see that reflected in this budget.”
