The reduction of the PST announced Thursday with the provincial budget has garnered a lot of attention, but not everyone is celebrating.
Finance Minister Scott Fielding said Thursday the PST will be reduced to 7 per cent effective July 1, six years to the date the previous government hiked the tax “without consulting Manitobans.”
NDP opposition leader Wab Kinew said while he criticized the move by the NDP at the time, cutting it back now may not be the best course of action.
“I think Manitobans have to ask themselves, if that tax is going to be reduced, you’re going end up saving maybe 10 cents when you go out to buy lunch,” Kinew said.
“Is that worth paying $100 more on your Hydro bill since Pallister took office? Is that worth losing emergency rooms in the city of Winnipeg? Is that worth $120 million cut to healthcare? I suspect a lot of Manitobans are going to say no.”
Kinew noted, in addition to cuts to healthcare, the budget failed to offered anything to deal with the addictions crisis.
Kinew said he was also discouraged by what he considers a lack of concrete planning for the future as far as jobs are concerned.
“Every time we go to Shoppers Drug Mart or we go to Safeway and we see that automated checkout counter, we know the job market is changing because of technology,” he said.
Kinew said that as the parent of a child entering high school next year, he would like to see the Manitoba government ensure that good jobs are available for young people once they leave high school or university, as well as preparation for re-training workers who will lose employment due to automation.
“I’m not seeing anything about that in the budget today and I think that’s a missed opportunity.
“Rather than cutting post-secondary and the education sector like this government is doing, we should be investing and we should be helping Manitoba pivot towards a technology-driven economy.”
Winnipeg Mayor Brian Bowman, who has been openly critical of the province over funding agreements, said the budget left many unanswered questions.
“What they haven’t done is identify or indicate they are going to fill the provincial hole in the 2018 roads budget for the city of Winnipeg. That’s something, as you know, we are having to reconcile in the 2019 budget.
“Once again they’ve identified a ceiling for provincial supports for infrastructure for the City of Winnipeg but what they haven’t identified is a floor,” Bowman said.
While he acknowledged the budget accounted for “accelerated regional roads”, he said there was “nothing new” that would clarify the outstanding issues in the city budget.
Bowman said he will continue to press the province for answers, adding the city is not the only one feeling challenged.
“We’re not alone in the relationship with the province of Manitoba. You only have to talk to the federal government, school divisions, colleges, universities, the lists go on.”
There were a few political critics who were pleased with elements of the budget. Business leaders suggested the deficit reduction was welcome news and the PST cut would be good for consumers.
Todd MacKay of the Canadian Taxpayers Federation said he thought it might take the Pallister government a little longer to make good on their promise to lower the PST, but was excited to see it come down.
“That’s going to save taxpayers a lot of money. This makes a difference for families, it make a difference for virtually every taxpayer in the province. It’s huge.”
WATCH: ‘Christmas comes early’: Taxpayers federation applauds PST cut
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