Premier sells PST hike to big business crowd

WINNIPEG – Manitoba Premier Greg Selinger made a sales pitch Thursday in front of a tough crowd.

His annual state of the province speech focused on his government’s controversial plan to raise the provincial sales tax.

He was trying to sell the tax hike to Manitoba’s business leaders, most of whom opposed it. The PST rose one point to eight per cent in July.

“Yes, we did make a difficult decision this spring to add one cent on the dollar for the PST, and I know that caused some heartburn,” said Selinger.

He then listed highway upgrade project after project paid for by money he said will come from the tax increase.

He also announced $110 million to fix the Trans-Canada Highway east to the Ontario border. A portion of the TransCanada will soon be dubbed the Terry Fox Memorial Highway, Selinger said.

“When they talk to a business crowd they talk about infrastructure,” said Colin Craig of the Canadian Taxpayers Federation. “When they talk to others, they say it’s about funding health care and education, which is completely different, so it’s politician speak.”

But for some, it was enough.

“If those things come, it’s going to be a vibrant province,” said Doug Stephen of WOW Hospitality.

While the Winnipeg Chamber of Commerce said it’s unsure whether the tax hike was necessary, it will keep watch over provincial spending for the next 10 years.