Winnipeg Free Press (Newspaper) - February 10, 2014, Winnipeg, Manitoba
C M Y K PAGE A4
A 4 WINNIPEG FREE PRESS, MONDAY, FEBRUARY 10, 2014 TOP NEWS winnipegfreepress. com
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O NE hurdle done, another bigger
hurdle to go.
Premier Greg Selinger reportedly
escaped a face- to- face confrontation
with the NDP membership this
past weekend with little or no additional
damage inflicted upon his tattered
mandate.
It was not
a certainty
he would get
through unscathed.
Still
reeling from
poor opinionpoll
results, last
week Selinger
had to deal with
an act of mutiny
from within his
own ranks.
Former cabinet minister Christine
Melnick - who lied in the legislature
about involving senior civil servants
in a demonstration organized at the
Manitoba legislature - publicly criticized
the premier. She was ultimately
expelled from the NDP caucus.
As the week wore on, Melnick's
claims about being mistreated at
the hands of Selinger's senior staff
became increasingly questionable.
Still, Melnick's eruption and Selinger's
response were hardly banner achievements
for a government looking for
good news.
At this point, it appears Selinger's
senior political advisers - those same
people who got dragged down into the
whole Melnick affair - earned their
keep this past weekend. Party members
at the AGM did not pour salt into
Selinger's wounds by showing any sign
of dissent over recent events.
That speaks to diligent, floor- level
work by senior staff, who spent the
weekend holding hands, patting shoulders
and otherwise convincing the rank
and file there was still reason for hope.
Selinger was present throughout
the AGM, delivering a keynote speech
Friday night in which he directly addressed
the Melnick affair. Although
it was likely the top- of- mind issue for
New Democrats this past weekend,
there were no obvious signs of rogue
elements in the party demanding a
review of Selinger's leadership.
Perhaps the unveiling of a new negative
TV advertisement aimed at PC
Leader Brian Pallister helped. Nothing
rallies the troops like a good old- fashioned,
saucy attack ad.
Even though he deftly stickhandled
through the AGM, Selinger is unlikely
to get much of a respite. The premier
and his team now have to turn their
attention to the provincial budget,
which should be tabled in April. And
the fiscal outlook for the province is,
to say the least, grim.
The second- quarter fiscal update,
released in December, showed the
province now expecting a $ 485- million
deficit for this year, down $ 33 million
in the budget. That is progress, albeit
at a glacial pace.
The fact is the NDP desperately
needs to balance the budget, both
for the fortunes of Manitoba and for
its own political health. Selinger has
been rocked now by controversy and
internal strife, but his greatest issue of
vulnerability is the deficit.
Until now, however, Selinger has been
rigorously devoted to a strategy whereby
total spending has been slowed in
some areas and modestly cut in others.
Selinger has argued deep spending cuts
would be devastating to core services.
He has waited, patiently, for the economy
to grow and produce the revenues
necessary to shrink the deficit.
Selinger's plan has, to some extent,
come to fruition. The deficit is shrinking
and core services have been spared
the sting of deep austerity measures.
However, the deficit is not falling fast
or far enough to soothe the voters.
As a result, you can see a measure of
desperation entering into the shortterm
fiscal management. This week, it
was announced a full rollback of property
taxes for senior citizens would be
delayed by one year. The tax cut was a
key 2011 election campaign pledge.
The province would like to eliminate
the deficit altogether when it introduces
a budget in the spring of 2016. That
is also, coincidentally, an election year.
Failure to eliminate the deficit by that
date would likely break the camel's
back for Selinger and the NDP.
And it's important to note even
with austerity measures, Manitoba is
already facing other threats to its bottom
line. The province and Ottawa are
in a dispute over the population figure
used to calculate transfer payments.
Ottawa reduced Manitoba's population,
which resulted in a $ 37- million
revenue drop this year. More of this is
expected next year.
And let's not forget about the spring
flooding season. Selinger is farther
behind in reducing the deficit because
of the extraordinary flood of 2011.
Although no governing party could
ever completely overcome the $ 1- billion
tab for flood fighting that year -
half of which may be recovered from
the federal government - the Opposition
Tories have been effective in
framing the huge costs of fighting the
flood as evidence of a NDP spending
problem.
It may well be that by the time the
next budget comes forward, New
Democrats will long for the days
when they needed only to endure the
allegations of an aggrieved ex- cabinet
minister.
dan. lett@ freepress. mb. ca
Selinger
dusts off,
carries on
Next up, the provincial budget
DAN
LETT
O TTAWA - Lowering consumer
bills, training workers to fill indemand
jobs and balancing the
books will be key themes Tuesday
when Finance Minister Jim Flaherty
presents his latest spending plan.
With an eye on eliminating the deficit
in 2015 - in time for the next election
- Flaherty's budget must show
voters he's taking substantive action
to grow the economy with little or no
new spending.
With a $ 3- billion risk cushion built
into the budget, some observers say
Flaherty could eliminate the red
ink as soon as this year - a notion
the country's treasurer was quick to
shoot down.
" If we really forced the numbers,
we might be able to get close to a balanced
budget. I've never been a believer
in that," Flaherty said Friday.
" I think when we balance, which
will be next year, we need to have the
confidence of the Canadian people
that we are clearly balanced and
without question."
The Tories have offered a sneak
peek at some of the measures in
Tuesday's budget, including $ 800,000
to help skilled newcomers to Canada
find work in their fields or explore
other lines of work.
Flaherty said the budget will also
outline plans to curb the link between
terrorists, organized crime and charities,
and take measures aimed at
dealing with price differences between
Canadian and U. S. goods as the
loonie continues to fall.
Some are expecting benefits for
veterans, measures on injury prevention
and help for Canadians suffering
from dementia and related diseases,
as well as their caregivers.
The budget may also address the
Northern Gateway pipeline project by
way of improvements to tanker safety
and beefing up consultations with aboriginal
groups, as well as spelling
out exactly how Ottawa plans to pay
for its recently announced reforms to
First Nations education.
But making government more efficient
and cutting costs wherever
possible will continue to be a central
budget theme, said Andrew Saxton,
Flaherty's parliamentary secretary.
" We've been successful at doing
that in the last couple of years; we've
saved taxpayers quite a bit of money
by finding areas in government where
we can improve and so that will continue
to be a theme," the Conservative
MP said.
Peter DeVries, a former senior official
at the Finance Department, isn't
convinced the Tories will inject much
excitement in the spending plan,
choosing instead to keep their powder
dry until the 2015 budget.
" The only commitment that the
government seems to be willing to
fulfil is his commitment to balance
the budget in 2015- 16," said DeVries,
an economics professor at Ottawa's
Carleton University.
The Tories could then lay out a
more detailed spending plan aimed
at making good on their previous
election promises, such as incomesplitting
for tax purposes and providing
more room in tax- free savings
accounts.
Observers point to the timing of the
Feb. 11 budget - right in the middle
of the Sochi Winter Olympics - as
a sign Flaherty will deliver a standpat
budget designed to bridge the gap
between a $ 5.5- billion deficit and the
anticipated surplus in 2015.
- The Canadian Press
OTTAWA - Finance Minister
Jim Flaherty says his upcoming
federal budget will contain
money for " major" infrastructure
projects.
Flaherty told CTV's Question
Period infrastructure is a good
investment, but the government
must be prudent at the same
time.
" There will be money for
infrastructure, and very importantly,
major infrastructure
projects in Canada, major economic
infrastructure projects,"
Flaherty said.
" It is all about the economy
and jobs. I mean, that's the
primary job of the federal
government in this country. We
will be investing and we will be
ensuring that we move forward
on the economic front, not just
balance the budget."
One such project might be a
second bridge between Detroit
and Windsor, Ont. Reports
earlier this month said Canada
plans to start buying land on
the Michigan side of the Detroit
River to build the new crossing
a short distance from the
existing Ambassador Bridge.
Canada's outgoing consulgeneral
in Detroit, Roy Norton,
told the Detroit Free Press Canada
is paying almost all of the
$ 2- billion cost of building the
new bridge with an eye to recouping
its money from future
tolls going in both directions.
" We're about to proceed with
land purchases some time in
the next few months, and we're
going to do that whether there's
been an indication from the U. S.
government on a commitment
to the customs plaza or not," the
paper quoted Norton as saying.
" That involves a little bit of
risk on our part, obviously, but
we're so confident that this
ultimately will be built that it's
prudent to do that."
In its recent throne speech,
the Harper government signalled
it would spend billions
of dollars over the next decade
on major regional infrastructure
projects. The throne
speech explicitly mentioned the
second Detroit- Windsor bridge,
subways in the Greater Toronto
Area, replacing the Champlain
Bridge in Montreal and building
Vancouver's Evergreen Line
rapid- transit extension.
Any spending on infrastructure
must get the approval of
the federal auditor general,
Flaherty told CTV.
Flaherty also said it's important
any federal infrastructure
spending doesn't fall prey to
corruption, as it has in some
parts of the country - a thinly
veiled reference to Quebec's
construction scandals.
The finance minister is set to
release his budget on Tuesday.
- The Canadian Press
Tories eye balancing books
Spending plan to be revealed Tuesday
Major
building
high on
to- do list
By Maria Babbage
JASON FRANSON / THE CANADIAN PRESS FILES
Finance Minister Jim Flaherty has to show he's taking action on growing the economy with little or no new spending.
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