Winnipeg Free Press

Winnipeg Free Press (Newspaper) - August 1, 2006, Winnipeg, Manitoba Tuesday August 1, 2006 bad Kitty up tax Dow Nash a Dollar Friday aug 4, 6 30pm 780-3333 business is 11,830.96 11,185.68 2,091.47 88.37 ? . ? 7.28 -34.02 -2.67 0.02 editor Steve Pona 697-7292 i i b4 . Doing great. And not so great Economy a doing Fine but number of workers Falls by Murray Mcneill t to new economic reports paint starkly different pictures of How the Manitoba Economy is per forming. The conference Board of Canadas lat est provincial economic forecast issued yesterday predicted Manitoba will Post the third strongest economic growth in the country this year at 3.7 per cent. Only Oil Rich Alberta and Newfoundland and Labrador will do better at 6.6 per cent and 4.6 per cent respectively. Underpinning this result Are a Boom in construction a rebound in agriculture output and robust activity in the mining sector the conference Board report stated. However that dose of encouraging news was offset by new statistics Canada figures also released yesterday that show Manitoba was one of three provinces to record a drop in the num Ber of payroll employees in the first five months of this year compared to the same period last year. It also had the lowest increase in average weekly earnings during that period at a meagre 1.9 per cent. That was less than half the National average of 4.1 per cent and Well off the leading Pace of 5.6 per cent set by British Columbia and Newfoundland and Labrador the figures show. Marie Christine Bernard the con Ference boards associate director of provincial forecasting said in an inter View the Board expects economic out put in the provinces construction sector to jump by 21.2 per cent this year because of a number of Large construction projects such As the red River flood Way expansion and the wus Khatim generating station in North Ern Manitoba. Mining output meanwhile is expected to grow by 7.7 per cent she added while agriculture output should increase by 7.3 per cent. She said even if the hot dry weather this summer reduces Grain yields they la still be an improvement Over last years disastrous results. Dan Overall director of policy and communications for the Manitoba Chambers of Commerce said real Gap Phil Hossack / Winnipeg free press archives Jordan Vorlage / Canadian press archives Adella Harding / associated press archives Manitoba is expected to Post third strongest economic growth in Canada thanks to healthy construction agriculture and mining industries. Growth of 3.7 per cent would certainly be Welcome news for Manitoba. However the weak payroll and weekly earnings numbers cast a dark Cloud Over that otherwise sunny forecast he added and raise serious concerns about the provinces longer term economic prospects. Overall said the weak num Bers suggest the Manitoba Economy in to creating higher Quality higher paying jobs at the same Pace As Many of the other provinces. The number of Quality jobs being created is an Economy a Canary in the Coal mine he said. So if those Are lag Low income Farmers get $550-m boost new program offers Cash business advice by Larry Kusch Low income Canadian Farmers ? some of whom can barely afford to feed themselves and their families ? stand to Benefit from a new Federal program that will provide them with Cash and some business advice. Agriculture minister Chuck Strahl announced the two year $550-million Pilot program in Winnipeg yesterday. Under the Canadian farm families options program eligible Farmers will see their individual and family net incomes topped up to $15,000 and $25,000 respectively. For example if a farm family has a total income from All sources of $17,000, the payment will be $8,000. To qualify Farmers must also undergo a farm business assessment or take some form of skills training to help them with their farm Strahl said. This initiative comes from the governments determination to provide greater support to farm families who Are at the Core of our Rural communities he told reporters. To be eligible Farmers must have Gross farm revenues before expenses of at least $50,000 and must have filed farm income with the Canada Revenue Aid program at a glance agriculture minister Chuck Strahl announced a two year program to assist Low income Farmers yesterday. Who is eligible individual Farmers with a net income of less than $15,000 or farm families with a net income of less than $25,000. They must have had Gross farm revenues of at least $50,000. What will they get net incomes for individual Farmers and family farms will be topped up to $15,000 and $25,000 respectively. For instance if a farm family earned $17,000 from All sources it will receive $8,000. How soon will they get the Cash within 30 Days of the Federal government receiving the completed application Strahl said. What other help will they get Farmers will also receive free advice on How to make their farms More profitable and be eligible for federally assisted skills training. How do Farmers apply application forms Are available at or by calling toll free 1-866-367-8506. Agency Cra for 2005 and be farming in 2006. Strahl said Cra information shows depending on How Tough the farm that As Many As 26,000 Canadian Farmers ers years have been prior to that he May be eligible for the program which said it could mean the difference was first mentioned in the conserva Between them going Down or staying Tives May budget. Alive financially and coming through Strahl made the announcement in a it the next downtown Winnipeg hotel surrounded David Rolfe president of Keystone by several Manitoba conservative maps agricultural producers said the fact and Farmers. That there Are thousands of Farmers who one of those Farmers Irvin Funk of qualify for the program really brings Grunthal said there Are a lot of reasons Home the fundamental underlying prob Why some Farmers May find themselves lems facing in need of the program be it Adverse some of the Farmers who Are feeding Ging its a Harbinger of an Economy that is going to be facing some difficulties Down the Road some have argued that having the third lowest average weekly earnings in the country ? it was $666.06 in Manitoba in May compared to the National aver age of $749.94 ? can be a Good thing because it helps make Manitoba Compa Nies More competitive and can help attract new businesses to the province. But others like Overall and univer sity of Manitoba economics professor John Mccallum say it can also make it More difficult for Manitoba Compa Nies to attract and retain skilled work ers and to generate the kind of tax revenues needed to pay for government programs and services. We need to ask ourselves what kind of jurisdiction we want to be Overall said. Do we want to be known As a Low wage province or do we want to be known As a province that has an abundance of High Quality higher paying jobs the statistics Canada numbers also raise the question of How the Manitoba Economy could be growing at such a healthy Pace yet be producing such weak payroll employment and weekly earnings increases. Usually if an econ omy is firing on All cylinders wages and employment Levels Are also increasing at a healthy rate. I thought that was a bit Peculiar Bernard admitted. But it could be just a temporary however Mccallum said its a continuation of a Long term trend that has seen Manitoba consistently under per form most of the other provinces when it comes to labour Force employment and earnings growth. wheat Board payments lower than expected by Larry Kusch the Canadian wheat Board yesterday announced initial payments for wheat and Barley that Are substantially lower than what it expects Farmers will eventually receive for these crops in the months ahead. Beginning today the initial payment Farmers will receive at the elevator for top Grade bread making wheat with 12.5 per cent protein is $137.50 a tonne. In its latest Outlook published last week the Canadian wheat Board projected that it would be Able to fetch an average of $208 a tonne from Domestic and foreign buyers for no. 1 Canada Western red Spring wheat 12.5 per cent protein in the coming year. However Ever since the Federal trea sury had to cover a shortfall of some $80 million several years ago ? when the final realized Price fell Short of the initial Price ? successive governments have been cautious in the level of initial pay ments they approve said wheat Board spokeswoman Maureen Fitzhenry. She said the wheat Board had recon agriculture minister Chuck Strahl seen with virology lab in background mended an initial wheat payment of said scientists working there Are among the Best in the world. More than $150 a tonne based on its Market projections in May. But that was themselves and their families. Its got to or even How to exit farming although More than the Harper government was change he said in a news release. Strahl stressed this is not the programs prepared to approve. Strahl said the purpose of the program intent. Ever since we ran a deficit in the Pool in to just to hand out Money. Ottawa some $500 million of the $550 million account in ?02-?03, they be been taking wants to help Farmers figure out Why announced yesterday is new Money part an indefensible Large risk margin their businesses Arent profitable. Of $1.5 billion in new farm assistance because they Don to want to be stuck Cov if this is a consistent and continuing announced in the May budget. Ering the Pool accounts again Fithen problem ? they made no Money last a further $50 million is being made by said of successive Liberal and year they made no Money this year ? available through existing Federal Busi conservative regimes. Look at that obviously something has to change. And Ness advisory and skills training pro Price spread its so Well help them make those Grams the government said. Some of the advice May concern How continued. to Transfer the farm to a son or daughter please see wheat Board b6 Marc Gallant / Winnipeg free press ;