PST hike could scare away investors, architect says

The PST hike in Manitoba could prove taxing to the province’s construction industry.

Manitoba’s NDP government introduced a 1% hike in the provincial sales tax effective July 1 of this year, and now local architects and builders are worried about what that might do to current and future developments in Winnipeg.

“Either the client has to find the extra money or we have to start removing things from the building,” said Architect Brent Bellamy.

Bellamy says he’s currently working on a $40 million building project in Winnipeg, but the tax hike will push the project $350,000 over budget.

“We have to start looking at removing windows, changing brick to stucco real qualitative issues for the building,” said Bellamy.

He worries this will be enough to push investors to look elsewhere to invest.

“At some point there’s going to be a tipping point,” said Bellamy, “that they’re going to be looking at Regina or Saskatoon instead of Winnipeg for those opportunities.”

The 1 per cent hike will generate $277 million dollars which the Selinger government claims will pay for improving infrastructure and flood proofing communities across the province.

“Consider the impact this has, not only on Manitobans today, the impact it’ll have on our kids and the next generation, this is not a government that can manage well,” said PC Leader Brian Pallister Thursday.

The Progressive Conservations think they have a solution, outlining ways the NDP could cut spending by $286 million a year, off setting the need for a PST hike.

Pallister says the NDP needs to cut staff saving over $100 million, scrap the $600,000 subsidy for political parties, and improve the tendering process for construction projects in the province which would save $35 million.

“The ‘spend DP’ is a government that thinks they should spend more,” said Pallister.

He vows if elected he will return the PST to 7 per cent.

“If we had our way, we wouldn’t need to undo it, it wouldn’t be done in the first place,” said Pallister, “and if people in Manitoba could vote on this we wouldn’t have to talk about this.”

The NDP scrapped the law that allows residents to vote on whether or not the PST should be raised.

“Those who argue referendum’s cost to much usually want all the power to themselves,” said Pallister.