Jim's Budget Speeches - Budget 2006
Hon. Jim Rondeau
Minister of Industry, Economic Development and Mines
Budget Speech
May 4, 2006
I am very pleased to speak in favour of this very progressive budget.
I look at the budget as having some themes. First one is the theme of being green, environmentally friendly. The second one is growing, where our economy is growing. We are growing the numbers of jobs. We are expanding the province, and the economic pie is definitely growing. The last theme is it is a great place to live in and raise a family. By talking about each of these themes, I hope I will convince the members opposite to vote for a very progressive, positive budget that does well for all Manitobans.
I look at it this way. When we are talking about the first one, green, and talking about environmental, first, it is the first time we are building hydro-electric generating power. We are working in co-operation with others to do this. If you look at the wind energy, where what we are doing is we are working out a private-public partnership to build an environmentally friendly capacity for wind energy, this is very positive. It is good for farmers. It is good for the economics, as far as getting land rental. It is good as far as the energy usage because it is a renewable energy. It is also very, very good because we do it in partnership with industry. So that is very positive.
It is also very positive where we are also working in partnership with Aboriginal communities to develop our hydro-electric generation capacity. So what we are doing is we are working in a partnership with not only the industry, but also with Aboriginal communities. I think this is where we are able to excel over the former government, the Conservative government. Where they thought there was only one answer, we know that by working together and collaborating we can develop this province with multiple partners, with multiple co-operative ventures to grow the economy.
I think that the Minister of Finance (Mr. Selinger) should be commended for having unprecedented growth in our GDP, where we have in excess of $12-billion growth in six years, $12-billion growth. That is unprecedented. I know that members opposite really question numbers, but I hope that they can learn how to read because that is a big number. It has so many zeros I know the members opposite would not be able to just look at it quickly and understand such a huge growth in such a short period of time.
But I think the way it works is by looking at where we can develop win, win, win situations for all Manitobans and all the rest. I look at when we are talking about green. We are talking about working with industry to develop the biodiesel capacity. This is something that has never existed and we are building the biodiesel capacity.
I look at just other examples of where we want to work in co-operation with people. So, when you talk about the Hydro Power Smart initiative, this is really good because what we are doing is Hydro is providing the people of Manitoba opportunity to save. Often they sit there and they say, oh, we should hand money out. What we have done is we have handed out an opportunity, an opportunity for Manitobans, not just to save for one year or get cash for one year, but to get cash on an ongoing basis. So, if they replace their old furnace, which is 60 percent efficient, and they then get a 90 percent efficient furnace, they will save money this year, next year and they will save money in the future. That is the type of win, win we are going to do. We are not only planning for the short term, but the short term and the long term, so we have triple wins here.
Let us talk about population. The members opposite today in Question Period talked about all the people leaving. Well, according to Statistics Canada, and I refer the members to Statistics Canada, we have had a population growth, that is a population growth of over 30,000 people in the last six years. This is reflective of three communities. If we brought Flin Flon, The Pas and Thompson into the province, that is the type of growth that we have had in this province in the last six years. This is a change from the 1990s where we had population decreases. So what we have is we have changed the trend.
I want the members to pay close attention to the statistics from StatsCan. In the youth, ages 15 to 14, over the last six years, from 2000-2005, the population labour force for this group has grown by a total of 7,800 or 1,300 per year. So that is under the NDP. It has grown an average of 1,300 a year, and 506 in the last two years alone, 506 per year in the last two years alone.
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Under the Conservative government, from 1989 to 1999, youth population fell by a total of 18,000 people or 1,600 per year. So the last six years of our performance is a 79 percent improvement over the Tory government. The labour force, the youth, has grown by about 6,100 or 1,000 per year under ours, where it fell by 17,800 or 1,600 per year under the Tories. So the labour force has increased; the population has increased under our government that fell under the Conservative government. Please refer to Statistics Canada because they have information that you should probably make yourself availed of.
Also, youth employment. So this is not only the labour force, but the employment. The employment for youth from 2000 to 2005 has grown by 6,000 people, or approximately 1,000 a year. From 1989 to 1999, youth employment fell by a total of 13,300 or 1,200 per year. So last year's, our record, is an 83 percent improvement over the previous period.
So let us make it simple for the members opposite: We have more young people here; more young people are entering the labour force; and the amount of people who are unemployed that are young has fallen, and it has fallen because more young people are working. So please pay attention. I would be pleased to provide that information, those statistics to the members opposite if they do not know how to use the Web site.
Next: So our population is growing and, just for specific numbers, under the former government there were 157,005 people from 15 to 24 under their former government, and under our government right now 168,654. Those are numbers provided by the Manitoba Bureau of Statistics and StatsCan. So please take note, there are more people. And they often wonder why there are more people here and more young people.
Well, I would like to take note of some of the industries that have grown and have been very positive as far as our economy. One is the film industry. The film industry has grown by leaps and bounds. This is where people make good money with their high skills, high talent, and it is an exciting industry. It has grown multiple times under our government's watch. And I know that it was a small industry under the former government, under the Conservative government, but that has grown by leaps and bounds under our government, under our stewardship.
We have new media. We have all sorts of new media, exercises going on here. The Minister of Advanced Education (Ms. McGifford) talked about the new training course we are trying to devise, but we are working with industry to create educational opportunity and then good-paying jobs, and, in the case of new media, you are talking between $40,000 and $80,000 a year. It is exciting, and we want to continue to do that.
If you look at life sciences, the life sciences industry has just been going gangbusters. We are one of the country's leaders, and what is interesting about the life sciences is that we have been growing that program at about 10 percent. So, while Canada's life sciences have increased, while Manitoba has 4 percent of the population, it holds 10 percent of the national biotech activity. The annual revenues exceed $440 million and the average life science sector income is between $50,000 and $60,000, and R&D, research and development, jobs incomes are about $80,000. To tell you how this works, the Province directly spent $26.9 million on R&D, and that has been up 62 percent since the 1999 budget. In Budget 2005, we boosted the value of the R&D tax credit by 33 percent to encourage private sector research and development activity.
So what we are trying to do is by increasing the tax credit in the budget that the members opposite held up, what we are doing is allowing new companies to invest in new processes in research, in development of their products, and that is good. Manitoba is now home to 41 biotech companies. That is a 10 percent growth in two years, operating in the life science sector. There are now over 2,300 employees, which is a growth of 35 percent in two years, and there are also 30 research and development companies representing approximately 1,900 employees.
The interesting part about this is when the members say, what is your vision. Ernst & Young's Global Biotechnology Report in 2004 ranked Manitoba as the fastest-growing biotech sector in Canada. This has been confirmed by a third party, Industry Canada, and it said that Manitoba's biotech sector has grown by 40 percent in the last three years. The report went on further to note Manitoba's boom is partially explained by the provincial government's effort to grow biotechnology sector within the province. So it shows that we can work with industry to create high-value jobs, high-skill jobs and develop it in partnership with the private sector. I think that is very, very positive, Mr. Speaker.
When we start talking about other investments, again, you look at a plan, and you look at how we can carry through a plan. Working with a number of organizations such as the manufacturers, we have listened. What we did, for the first time, we started to look at the PST on equipment, on investment. We listened to what the companies said. They had said for years they have been asking the former Conservative government about eliminating this, to get rid of it so that people who are going to make an investment in their company, that they get some up-front capital in order to be able to do that. So we listened to the manufacturers.
I am pleased to say that what we did was we started to make part of the retail sales tax refundable to manufacturers. We started out at 20 percent, and this year we moved to 35 percent. The interesting part is the members opposite delayed that. They pushed against our manufacturers. They pushed against the industries in Manitoba. So what they have done is they have hurt the industries in Manitoba. So, when they are talking about being friends of business, they delayed, they pushed back against the industries. So, while the Canadian dollar is going up above the 90 cents and manufacturers would come and say what can you do for us, our government had a plan and moved it forward to make sure that 35 percent of the PST was refundable.
What did the members opposite do? They delayed it. They slowed down and they said, no, manufacturers, we do not want to help you. We do not want to help to create jobs. We do not want to keep you competitive. Go away. We want to do the old Tory thing, which is do nothing. They do not want to work with industry, work with business and make us competitive.
So I am pleased that we have changed the policies. I am pleased that the change done by the Minister of Finance (Mr. Selinger) and our government will lead to a huge change. So StatsCan, again, an independent third party, has said that Manitoba will lead the country in capital investment in 2006, with a 14 percent growth, more than double the national growth rate of 6 percent.
The private sector is booming with an investment forecast to grow by 10.4 percent, double the national growth rate of 5.1 percent. It also says that the value of building permits was up 78.6 percent, a growth rate higher than cities like Regina, Vancouver, Edmonton, Calgary and Toronto. We are growing. Companies are talking about making more capital investment.
I want to correct the members opposite. I know that they do not want facts to get in the way of questions during Question Period, but I would like to make sure that the members opposite know the information from Statistics Canada. In the last 12 months, and I quote, an additional 13,400 new private-sector jobs have been created. Again, in the last 12 months, an additional 13,400 private-sector jobs have been created, a 3.1 percent growth that far exceeds the national growth rate of 1.8 percent, and third best among provinces.
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Now, this is interesting because another factor that the members opposite seem to confuse is that since 1999, 64 percent of the jobs created were in the private sector, 64 percent. The interesting part is if you read The Globe and Mail-I would encourage you to start doing that-on March 31, 2006, the report said that according to StatsCan, Manitoba families had the fourth highest median income among the provinces behind Alberta, Ontario and B.C. So they have been moved very, very far ahead, and we continue to grow.
Now, not to confuse the members opposite, but I will explain again on the labour force. In 1995, the labour force, that is the amount of people who are involved in the labour force, there were 556,900 people under their watch, so 556,900 people. If you talk about the private sector, it was 391,100, almost 400,000. The public sector was 125,400.
The interesting part is in 2005 there were some changes. The amount of people employed was 609,400 people. That is more. That is about 50,000 people more. If you look at the private sector/public sector breakdown, there were 434,700 in private sector, and the public sector had grown to 145,000.
So the interesting part about the changes is under the former government the amount of public sector employees was higher than under our government. So the amount, the size of the public sector has gone down. The size of the private sector has gone up. The amount of people who are employed in the private sector has gone up. The amount of young people has gone up. The amount of young people employed in the province has gone up.
Mr. Conrad Santos, Deputy Speaker, in the Chair
So I hope the members opposite will take the time to look at Statistics Canada, avail themselves of the statistics from the Manitoba government and read.
So we have better youth retention. Part of that is by having a plan where we are getting jobs that are exciting and having Manitoba moving forward.
I think it is interesting to note some of the programs that our government has worked with industry to put in. The first one is the Advanced Manufacturing Initiative. What this is, it is a federal-, provincial- and industry-led coalition where all partners are financially contributing, and what it is doing is it is working with industries and businesses to make sure that they are using the latest technology, latest systems to make sure that they are competitive around the world.
This is a program that our government has initiated and has grown. Companies I have talked to have said they have 8, 10, 12 percent savings on it. It is helping with the amount of inventory. It is helping with processes. This is wonderful, and it shows how our government can work with all groups in a co-operative fashion. It can work with federal government, the provincial government and industry. We have done that and we have had wonderful reviews from organizations like the Canadian Manufacturers' Association.
Other groups are the Composites Innovation Centre. What this is doing is it is again working with the federal, provincial and industry. What we are doing is working with companies like Boeing and others where they are using advanced composites to improve the products Manitoba is putting to market. So they are working with planes; they are working with buses; they are working with multiple vehicle companies and different products to make sure that we are not just producing some products or average products but state-of-the-art products designed for the world.
I have heard time and time again how this wonderful investment and co-operative effort from our government and industry has led to job creation, to new opportunities for Manitoba. It is, again, something that our government helped put in that did not exist prior to 1999. I am pleased to say it is creating and growing the economy.
The other one is the vehicle technology centre. Again, working with farm implement dealers, with different organizations, what we are doing is we are showing how to use and incorporate lean techniques in order to save money and better produce manufacturers, because most people do not realize we produce 75, 78 percent of all the buses in North America, both highway and coach buses and city buses. That is a huge opportunity now and in the future.
We are also working in technology where we are trying to use the best of the vehicles, the lighter vehicles, vehicles that run on different fuels, and we will continue to do that. I am pleased to see that we can do that and continue to grow our province in co-operation with many industries.
You look again at our record versus the members opposite who often talk about tax relief, who often talk about what they should do about business, but what it is is a lot of air and talk, but it is no action. I am pleased to be part of a government that acts and acts on all benefits.
So the other members crowed about how the Conservative government, the federal Conservative government, dropped the small business tax rate from 12 to 11.5 percent. They were so excited about this 0.5 percent change. I am surprised that the members opposite voted against budgets that dropped the small tax rate from 8 percent, and what we are moving to now is 3 percent. So we are not dropping it by 0.5 percent, we are dropping it 16 times that much, where we are dropping it to 3 percent from 8 percent. So I am very, very pleased that we continue to move forward in helping small businesses, which is 93 percent.
We are also moving the corporate income tax rate down, and, in just this budget alone, moved the tax rate down for business $17 million. That makes it $146 million annually. We are also working to reduce the red tape.
We are working to increase the Provincial Nominee Program for people and for businesses and people who want to establish businesses in Manitoba. Although we have the second lowest unemployment rate with the growing economy, we expect to do well in the future.
I also wanted to explain some of the new programs that we are introducing. One is BizCoach which is, again, another wonderful co-operative program between business and government. What it is doing is it is taking successful business leaders, linking them to new entrepreneurs and what it is doing is it is developing those skills. This was a suggestion from the Canadian Federation of Independent Business and from the Chambers of Commerce, and we are working with them to develop these programs.
So I am pleased that the members opposite continue to vote against the businesses. I am pleased that the members opposite do not lower taxes, and I am pleased that you did not put in good innovative programs, because I think that by us being in government for many, many, many more years, we will continue to make it brighter for all Manitobans.
I will talk briefly about some of the programs with seniors. Again, we are going to increase the shelter benefits to seniors and those who are on low income. That is going to increase by $7.8 million, and that will help deal with the increasing shelter costs. One of the problems with the growth is because we are growing so fast the prices of houses are going up. I know the former government, the Conservative government, did not have that problem. House prices were not going up because people were leaving the province under the former government, as I explained earlier in my speech. We are growing the province, hence house prices go up. Because of that we have to deal with the people who are not able to look after themselves fully, so the shelter benefit is going to kick in with the $7.8-million increase.
We are also increasing $13.6 million for supported living for people living with mental disabilities. We also have a four-year, $98-million, Aging in Place, long-term program for seniors, which is increasing supports for those living in their homes without going into institutions.
I know that the members opposite would not vote against increasing the shelter benefit, would not vote against helping those people living with mental disabilities and would not vote against the seniors who are aging within their own homes and living in their own homes. I would be surprised at the Conservatives and the two independent members. I know that the Liberals often talk a good talk, but they do not vote with people. They do not vote with their heart. What they do is they vote with the Conservatives. They vote with the opposition. I wonder whether there is truly a difference between the Liberals and the Conservative Party. They will vote against people living with mental disabilities, those in shelters and the seniors. We support those groups and we will continue to support those groups.
Finally, I am pleased that, as Minister of Mines, we have changed the mining regulations so now we are third best in the country, according to the Fraser Institute. I know the Fraser Institute is seemingly a left-leaning organization; however, they have said that we are the third best jurisdiction in the world in mines. That is probably why we are at record levels of exploration.
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We have also worked to develop an Aboriginal hiring program in the Aboriginal prospectors course. We opened a new mine in Bissett. There is a new mine in Bissett that is going to be pouring the first gold bars shortly. I am pleased to let the members opposite know that about 65 percent of the population are local Aboriginal people working in the mine. That is wonderful.
I think that it is really important to tie education and training, which has expanded under our government, into employment. When the crunch comes, people are talking about workforce. Often what we talk about is we talk about the biggest cost of doing business. We want an educated, skilled workforce. You do that by tying the education plan to employment. We do that. We make it affordable. We make it accessible. The members opposite have not. They have shown that they want to crank the cost. They want to make education very, very exclusive. We want to include all people.
Just to show some of the simple things, the change between the rhetoric and the practicality. Under the former government, people living in homes had their education tax go up from 1990 to 1999, in Winnipeg. The change was about 58.7 percent in Winnipeg in my area. Under 1999 to 2006, it has gone down 13.5 percent. I know it is not tons, but under theirs up almost 60 percent, under ours down. I know the members opposite have confusion over certain math, but up and down should be easy.
Finally, we have cut personal income tax, and property tax cuts gone to about $472 million annually. The middle income tax rate has gone down to 13 percent as of January 1, 2007. The $100 personal exemption has gone up. There has been $80 million in personal income tax cuts, property tax cuts, business tax cuts, support for the seniors, support for youth and new programs. Just to let you know why there may have been a little bit of confusion over what we were doing with youth, it was simple. Why we were confused is because there were over 200 programs for youth in this government, so many that are doing such good work to keep youth here that we want to talk about them and all want to brag.
In conclusion, I think we have done wonderful. I will support this budget for an innovative, growing province. I would hope that you support all people in the province and vote for it.
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