“There is a crushing infrastructure deficit in our communities across the province that needs to be addressed.”
— Manitoba Federation of Labour president Kevin Rebeck
We are pleasantly surprised to see labour and business now pulling together to try to get a handle of the staggering infrastructure deficit faced by Manitoba.
Organized labour is aligning itself with the province’s most powerful corporate movers and shakers to urge a reluctant provincial government to hike the PST in order to fix Manitoba’s crumbling roads and bridges.
As reported by the Winnipeg Free Press, the Manitoba Federation of Labour is sponsoring a resolution at this weekend’s NDP convention in Winnipeg calling on the Selinger government to increase the provincial sales tax by a percentage point and dedicate the proceeds to renew or replace municipal infrastructure.
“There is a crushing infrastructure deficit in our communities across the province that needs to be addressed,” MFL president Kevin Rebeck said.
“It is something we think is past due for the province to engage with municipalities and figure out how we can work together to address the infrastructure deficit.”
The Business Council of Manitoba, reported the Free Press, has been asking for the same thing for more than a year.
A one-point hike would raise an estimated $262 million a year. Manitoba is said to have an $11-billion municipal infrastructure deficit. Brandon Mayor Shari Decter Hirst has pegged Brandon’s infrastructure deficit at $165 million.
Jim Carr, the business council’s president and CEO, welcomed the MFL’s initiative.
“I’m very pleased that the Manitoba Federation of Labour has concluded that we don’t have enough revenue to tackle the growing infrastructure deficit,” he said Tuesday. “I welcome the resolution and I hope it passes.”
While the province has been hesitant to hike the PST to attack infrastructure, now that the NDP’s main supporters are giving the thumbs-up, the plan has some legs.
The tax hike would be relatively painless for the average consumer, but would provide Manitoba municipalities with a dedicated funding source that would allow them to tackle their infrastructure woes. Manitoba has committed to giving municipalities the equivalent of one percentage point of the PST for infrastructure purposes. But that simply replaces current funding and still isn’t enough to come near to fixing the problem. Our crumbling roads, sidewalks, bridges, sewers and water lines are in dire need of repair and upgrading. Reluctance for political reasons by successive levels of government over several decades to properly plan for infrastructure repair and maintenance — not to mention upgrades and expansion — has now resulted in a dire situation.
We agree wholeheartedly with those who say investing in infrastructure projects builds the economy. While providing proper situations for businesses to flourish, the actual act of building the infrastructure itself can provide impressive levels of employment.
So we encourage delegates to the NDP convention this weekend to pass the MFL’s resolution and then for the governing party to take the next steps to bring it into law.
This is one tax that we would accept the NDP levying on us. And we believe taxpayers in general would accept it once they see the jobs being created and the work being done.
Republished from the Brandon Sun print edition May 31, 2012
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