Promises to eliminate the deficit inherited from the NDP while reducing taxes dominated the first throne speech of Manitoba’s PC government.
Fiscal issues made for a recurring theme throughout the document, as the government of Premier Brian Pallister attempted to outline the difficult path they intend to take to reduce Manitoba’s $846 million deficit.
Among promises to reduce the size of government and hold down spending, the speech promised to introduce a “stand-alone” referendum law to allow people to vote on major tax increases.
“Manitobans have a limited capacity to handle more taxes,” Pallister said at a news conference before the release of the throne speech.
Pallister laid responsibility for the province’s dire fiscal situation squarely at the feet of the previous government.
“We cannot fail to get a handle on the out of control spending growth that we've seen over the last number of years,” he said.
The government has finished the first phase of its review of the province’s fiscal performance and plans to release a review framework, including proposals to make “Manitoba the most improved province in Canada.”
They’ll review the province’s more than 200 agencies, boards and commissions, eliminating any that duplicate work or oversight, or those that are inactive. They also promised to abolish the Crown Corporations Council.
The goal is to reduce the number of agencies, boards and commissions by 20 per cent.
Legislation will be introduced to keep future public sector wage increases low. This will likely have an impact on collective bargaining, Pallister said at a news conference before the release of the throne speech.
“Settlements were made, which by all comparisons across the country were excessive,” said Pallister. “I think there's a clear signal here that we're serious about fixing the finances of the province.”
Crown corporations and regional health authorities will also need to find ways to reduce administrative and senior management costs.
The speech proposed a “return on investment test” that would help ensure value for money on investments in infrastructure, as well as social and cultural projects.
The government also plans to reduce restrictions on public-private partnerships when building capital projects.
The NDP has accused Pallister and the PCs of holding a hidden agenda to slash and privatize services, but Pallister said his plan will preserve front-line services.
The speech also promised to reduce “unnecessary” regulations. The PCs say the province has no system for regulatory accountability to measure performance and advise stakeholders of regulatory changes.
“For too long, Manitoba’s potential for greatness has been hampered by a lack of vision, a propensity for unsustainable spending and rising debt,” Pallister said in the speech.
The speech contained promises of economic development and consultations with rural, northern and indigenous communities.
They promised to continue working on Manitoba’s Look North initiative and the Northern Economic Development Strategy, and to continue employing and training local residents in infrastructure projects in rural areas.
To help the province's troubled child welfare system, the government promised to reduce the number of kids in care and create a stand-alone Office of the Children's Advocate with greater independence and ability to investigate and report on systemic problems.
In a nod to the challenge of combating climate change, the throne speech repeated the government’s pledge to introduce a “made-in-Manitoba” carbon pricing and climate change plan, with an eye towards the province’s environmental and economic circumstances.
During the election campaign, Pallister said he likely won’t be able to fully balance the budget until some time in his second term.
The government will release its 2017 budget some time in the spring of 2017.
- With files from Jeff Keele and The Canadian Press