Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 13, 2025, Winnipeg, Manitoba MONDAY, JANUARY 13, 2025 A4 ● WINNIPEGFREEPRESS.COM NEWS I MANITOBA Province’s job losses should be wake-up call for NDP P REMIER Wab Kinew’s econom- ic horse got a little weaker in December. Statistics Canada reported Friday Manitoba lost 7,200 jobs last month and saw its unemployment rate jump to 6.2 per cent from 5.8 per cent. Manitoba was the only province in Canada with an employment decline in December. It wasn’t a great way to start the year. Kinew frequently repeats the mantra that Manitoba needs a strong “eco- nomic horse” to “pull the social cart.” Like all provinces, Manitoba relies on good paying jobs and strong economic output to produce the tax revenues government needs to pay for front- line services in areas such as health care, education and justice and to fund municipalities. Employment is just one aspect of measuring the strength of the provin- cial economy, but it’s an important one. December was the second month out of the previous three where Manitoba saw a drop in employment. It’s too soon to hit the panic button — employment figures could very well take a turn for the better in January. But it’s not the way the NDP gov- ernment, which is grappling with a $1.3-billion deficit in 2024-25, wanted to start the new year. Fortunately, most of the job losses in December were part-time positions. That’s not to diminish the importance of part-time work, which many house- holds rely on to pay the bills and which governments need to help generate income taxes and consumption taxes. But it is not as bad as losing full-time jobs. Of the 7,200 jobs lost in December, about 7,000 were part-time positions. It was the second month in the fourth quarter of 2024 that Manitoba lost jobs. The province saw a net employment increase of 6,600 in November (all full- time positions as there was a decline in part-time jobs), following an employ- ment decline of 1,300 the previous month. It’s part of the reason the provincial government, in its second-quarter financial report released last month, reduced its income tax projection for 2024-25 by $39 million. It also down- graded real economic growth for Manitoba in 2025 to 1.6 per cent from 1.9 per cent in the 2024 budget. Manitoba still has one of the lowest unemployment rates in the country at 6.2 per cent (fourth lowest among the provinces). The national rate was 6.7 per cent in December. And overall, the province saw a net increase of 13,300 jobs from December 2023 to Decem- ber 2024 (although part of that is from population growth of 41,200, which contributed to a labour force increase of 29,800 during that period). Still, for a province running such a deep deficit, an employment decline of any kind right now is bad news, not only because of the loss of taxa- tion revenue but also because of the additional strain it puts on government support services, such as income assis- tance and rent support. It doesn’t help that both the previous Progressive Conservative government and the NDP government cut taxes by hundreds of millions of dollars, which has had a devastating impact on the provincial treasury. Growing the economy and creat- ing net new jobs is the only way the province will eliminate the deficit over time. It’s unlikely there will be any additional support from the federal government in the form of transfer payments in the short term, beyond the regular incremental increases. There could even be a decrease in equalization payments for Manitoba if the Conservatives win the next federal election (which they almost certainly will). Conservative Leader Pierre Poil- ievre has indicated in the past he wants to make the equalization formu- la “fairer” for all provinces, includ- ing Alberta (which does not receive equalization). All of which means the NDP gov- ernment will have to do far more to encourage private sector growth in the province through strategic invest- ments in key industries. Last week’s announcement that the province is pouring $17 million into the aero- space sector (an $8-million grant and a $9-million loan through Magellan Aerospace) is a good example of the kind of investments that are needed. But so much more is required, includ- ing finding ways to provide startup companies with much-needed venture capital. Education and job specific train- ing will also be critical to economic growth, as there are still severe shortages of skilled workers in many industries. Strengthening the economic horse that pulls the social cart means mak- ing smart decisions in government that contribute to economic growth. So far, Manitobans haven’t seen much of that from the Kinew government, which has been focused primarily on gim- micky policies, like bringing in a fuel tax holiday and proposing to freeze Manitoba Hydro rates. That will have to change if the prov- ince wants to grow the economy and return to a balanced budget. tom.brodbeck@freepress.mb.ca TOM BRODBECK OPINION Programs created by Liberal government could be on chopping block Housing groups fear federal funding will vanish after sooner-than-expected election M ANITOBA housing organiza- tions are scrambling to lock in funding for projects because of fear the cash will dry up if there is a change in government in Ottawa. Since Parliament has been prorogued until late March, there is a little breath- ing space, but far less than there would have been until the fixed election date in October. The election is likely to take place well before the fall because of Prime Minister Justin Trudeau’s resignation last week. Whether it is the Housing Accelerator Fund capital grant program announced in 2023 — expected to bring $122.4 mil- lion to Winnipeg to fast-track the de- velopment of 3,166 housing units — or the Reaching Home project to combat homelessness, programs created by the Liberals could be on the chopping block. Conservative Leader Pierre Poilievre, whose party leads national polls by a wide margin, said last Octo- ber he wants to scrap the housing ac- celerator program and replace it with his plan to use the funds to cover the costs of eliminating the federal sales tax from new homes sold for less than $1 million. Last September, the federal gov- ernment and the City of Winnipeg announced 11 housing projects had re- ceived $25 million from the accelerator fund. Jeremy Read, CEO of the Univer- sity of Winnipeg Community Renewal Corp., which is moving ahead with more projects after scoring $8.35 million for three of the 11 approved projects, said without the funds, construction might not go ahead. “It’s a concern for us, but it won’t affect (housing accelerator) dollars al- ready approved,” said Read. “There has been radio silence for what it could look like in any successive government. “The not knowing increases risk… it can make anybody (who wants) to in- vest in housing drop out… “I’m hoping the crisis we face as a country will supersede partisan posi- tioning and overcome political divides.” Read said the housing crisis won’t be resolved in the short term. “This is a decade-long problem,” he said. “I think the national housing strat- egy has been successful and it is just getting going. If you turn off the taps, that capacity will be lost.” Winnipeg South Liberal MP Terry Duguid, who was recently named fed- eral sports minister, said those fears are justified. “This is part of Pierre Poilievre’s playbook, which is cut, austerity and undoing good work that is occurring among governments,” Duguid said Wednesday. “The province, the city and the fed- eral government are participating in housing programs together. We are getting along very well, we are pooling our money and the Housing Acceler- ator Fund, a $122-million investment… if Pierre Poilievre is elected that pro- gram goes away.” A civic official said a new round of approved projects is expected to be announced later this month. The first-round announcement came four months ago. Mayor Scott Gillingham said the ac- celerator fund has already resulted in the support of 1,135 new housing units in the city. “The next round of grants will sup- port even more projects, including 653 units at the Portage Place, Wehwehneh Bahgahkinahgohn (HBC building), and Railside at The Forks developments,” said Gillingham. “Winnipeg has a multi-year plan to use the (accelerator fund) to get more housing built, with funding tied direct- ly to delivering results. So, like most mayors across the country, I hope the program is allowed to run its course. The good news is that housing remains a national priority. “We are committed to building more homes, and I’m optimistic this momen- tum will continue.” Provincial Housing Minister Berna- dette Smith said the NDP government is focused on what it is able to do. “Our priority is really working for Manitobans and making sure they have housing (and) that they have the sup- ports that they need,” said Smith “Regardless of who is in government federally, we will work with them to en- sure that we are getting our fair share and that agreements are respected and that Manitoba’s needs are met.” Sara Stasiuk, CEO of The Forks North Portage Partnership, said the organization is hoping to receive ac- celerator funding to assist in its de- velopment of one of the 10 new housing projects at Railside at The Forks. The project would see 91 units constructed, focusing on families and single-parent households. “Housing has been part of The Forks’ mandate since Day 1,” said Stasiuk. “The rest of the buildings aren’t de- pendent on the housing accelerator fund, so we don’t expect them to be de- layed. Many of our developers already have development permits in hand. We are looking at spring.” kevin.rollason@freepress.mb.ca KEVIN ROLLASON MIKE DEAL / FREE PRESS FILES Jeremy Read, CEO of the University of Winnipeg Community Renewal Corp., which is moving ahead with more projects after scoring $8.35 million for three of the 11 approved projects, says without the funds, construction might not go ahead. MIKAELA MACKENZIE / FREE PRESS FILES Winnipeg South Liberal MP Terry Duguid: ‘This is part of Pierre Poilievre’s playbook, which is cut, austerity and undoing good work that is occurring among governments.’ MIKAELA MACKENZIE / FREE PRESS FILES ‘Our priority is really working for Manitobans and making sure they have housing (and) that they have the supports that they need,’ says Housing Minister Bernadette Smith. MAN ARRESTED AFTER CORYDON STABBING A 37-year-old man is injured and a 29-year- old man remains in custody after a Fri- day-night stabbing. It happened at about 11:50 p.m. Jan. 10 at a residence in the 1000 block of Corydon Av- enue after an argument over living arrange- ments between two people who knew each other, Winnipeg police said in a news release Sunday. Richard Luke Archie, 29, is charged with aggravated assault and possession of a weapon. He is accused of stabbing the victim inside the home. The victim was taken to hospital in critical condition and was later upgraded to stable. MAN ARRESTED AFTER POLICE FIND SHOTGUN WINNIPEG police found a sawed-off shotgun in a taxi parked on Furby Street on Saturday morning. Officers were in the 500 block of Furby Street at about 6:15 a.m. Jan. 11 when they interviewed a man sitting in a taxi as part of a separate investigation. They found the man wasn’t involved in the incident at hand, but did have a 12-gauge round of ammunition on him in addition to the shotgun with an ob- literated serial number, the Winnipeg Police Service stated in a news release Sunday. A 22-year-old man was arrested and faces charges related to unauthorized possession of a firearm and ammunition. He was released on a promise to appear in court. His name hasn’t been publicly released by police. PAIR ARRESTED AFTER VEHICLE CRASHES INTO SNOWNBANK A man and a woman were arrested in the VLT lounge at Assiniboia Downs Saturday after allegedly crashing a stolen vehicle into a snowbank. The suspects were also charged with drug trafficking offences after police seized cocaine and methamphetamine from them, the Win- nipeg Police Service stated in a news release. The vehicle, a 2001 Dodge Ram 1500, was reported stolen Saturday morning during a commercial break and enter in the 1100 block of McDermot Avenue. Police received a tip that it was spotted in the St. James area, and police followed it to the 3900 block of Portage Avenue. The suspects ran away after getting the vehicle lodged in a snowbank, police said. Police seized 57 grams of methampheta- mine (estimated street value of $2,825) and 28 grams of cocaine ($2,750), as well as more than $1,600 in cash, scales and packaging material. Liam John Freeman, 24, of Winnipeg, and Desiree Dawn Hjorleifson, of Arborg, were both arrested, charged with several offences and detained in custody. BRIEFS www.movementcentre.ca/support ;