Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 30, 2025, Winnipeg, Manitoba Ma r k e t * A N T I Q U E S * * C O L L E C T I B L E S * * C R A F T S * D O O R P R I Z E : 6 5 ” R C A S M A R T T V R A F F L E * 5 0 / 5 0 ALL PROCEEDS FROM THIS EVENT SUPPORT $5 ENTRY / KIDS UNDER 12 FREE LGCA # 750-RF-46735, 750-RF-46703, 750-RF-46734, 750-RF-46734 THIS WEEKEND! FEBRUARY 1 & 2 10 AM TO 4 PM – BOTH DAYS ASSINIBOIA DOWNS 3975 PORTAGE AVE OLD by Margie Gillis February 7-8 at 7:30 pm February 9 at 4:00 pm The Rachel Browne Theatre Buy tickets today online or at (204) 452-0229 SERVING MANITOBA SINCE 1872. FOREVER WITH YOUR SUPPORT. THURSDAY, JANUARY 30, 2025 WEATHER SUNNY. HIGH 0 — LOW -17 COMMUNITY REVIEW TEEN RIDES ALL WINNIPEG TRANSIT ROUTES TYLER SEARLE A MANITOBA grand chief who was recently reinstated after an alterca- tion in Ottawa and is at the helm of the massive downtown Bay store rede- velopment is engaged in a legal battle involving a multimillion-dollar land deal in east Winnipeg. Legal documents, filed in the Court of King’s Bench between November 2023 and August 2024, detail ongoing litigation between Southern Chiefs Economic Development Corp., Grand Chief Jerry Daniels and a private com- pany registered in Manitoba. The numbered company, which filed a countersuit and statement of defence after being sued, accuses Daniels of defaulting on a personal loan and then saying he could “influence the prog- ress” of the $20-million land deal, if the company demands he repay it. Court documents say Daniels was acting on behalf of the development corporation during negotiations to pur- chase five parcels of land on Dugald Road that were owned by the num- bered company. The company received a $100,000 deposit from the development corpo- ration on May 1, 2019. The multi-acre property was to change hands by Dec. 15, 2020, the documents said. The countersuit claims Daniels approached the company in 2018 after a letter of intent had been executed for the sale. He requested a personal loan in the form of a mortgage for the purchase of a condo unit in Winnipeg. The company agreed to provide the mortgage through an associated corporation and Daniels purchased the residence, the suit said. “During the period while develop- ment efforts were ongoing, Daniels went into default under the payment terms several times,” it said. “On numerous occasions, Daniels advised that he could influence the progress of the transaction agreed on if the (numbered company) did not desist in its demands (for payment).” “Ultimately, Daniels as directing mind of the (purchase negotiations)… advised that this property transaction would not proceed further.” The countersuit did not indicate the amount of the personal loan. It said Daniels secured other financing to buy out the debt owed. The land deal died, and SCO’s devel- opment corporation sued the num- bered company in November 2023, demanding it return the $100,000 deposit. That legal action sparked the statement of defence and countersuit, which were filed in May 2024. The countersuit seeks an order for SCO’s development corporation to forfeit the deposit and pay $766,000 in damages. MANITOBA Liquor & Lotteries is keeping a close eye on changing trends in alcohol consumption and online gambling that could affect the Crown corporation’s bottom line. President and CEO Gerry Sul identi- fied the decline in booze consumption as one of the biggest headwinds facing the entity that raises revenue to fund Manitoba’s social programs, during a legislature committee meeting to discuss MLL’s 2023-24 annual report. “Consumers are drinking different- ly. They’re drinking less,” he told the committee Wednesday. “As an orga- nization, this is what we’re focused on. How do we navigate through that? How can we pivot through that? But, of course, always in a socially responsible way.” Tories Trevor King, Kelvin Goertzen and Konrad Narth posed questions to Sul and Glen Simard, the minister re- sponsible for MLL, during the 2.5-hour meeting. The annual report shows revenue from liquor and beer sales — despite the six-week strike in summer 2023 — fell only 1.1 per cent, to $873.5 million. Beer sales were down 1.6 per cent while wine sales dropped 3.2 per cent. On the flip side, sales of ready-to-drink products went up by 7.4 per cent, or $8.3 million. MLL transferred $732.5 million to the provincial government for the year ending March 31, 2024. The figure is down from $740.9 million in 2022-23. Sul said media messaging around the link between alcohol consumption and cancer and the global downward trend in drinking could decrease revenue generation. “I think those things will weigh on consumers’ minds and have them ques- tion (the) amount of alcohol that they consume,” Sul said. He did not say what the Crown corporation could do to address the decrease in sales due to a change in drinking habits. In terms of gaming, which accounts for 52 per cent of MLL revenue, the concern relates to competition from online gambling on third-party applications. Online gaming revenue dropped by about $500,000. PlayNow.com, MLL’s online gam- bling website, has registered 150,000 players since it launched in 2013. The Crown corporation spent $4.5 million on advertising, most of which was targeted to combat illegal online gaming sites. NICOLE BUFFIE Canada’s response ‘has to be noticed,’ Kinew says after first ministers meeting Tax deferrals on table if hit with U.S. tariffs T HE Manitoba government may defer tax collection to support local companies if U.S. Presi- dent Donald Trump follows through on his threat to impose 25 per cent tariffs on Canadian products. Following Wednesday’s meeting of first ministers, Premier Wab Kinew told reporters he continues to be focused on preventing penalties on made-in-Manitoba goods and draw- ing attention to visible patrols along the border with North Dakota. At the same time, Kinew said Can- ada’s response “has to be noticed” if the new leader of the United States starts a trade war. “We can’t be a punching bag and we have to get our elbows up and let other folks know that we’re in the ring there, too,” the premier said during an afternoon news confer- ence at the Manitoba Legislative Building. Kinew has released few details about contingency plans, citing a de- sire not to get into hypothetical sce- narios and to maintain an element of surprise, should it be required in retaliation. On Wednesday, he hinted that tax deferrals — for example, postponing the collection of retail sales fees or corporate ones — are up for consid- eration. “If there’s a cash crunch, there’s a liquidity concern for business, if we can help to just allow people to have a bit of a bridge to more economic stability in the future… then that’s one concrete way that we could help,” he said, adding leaders are looking at short-term and long-term responses. The premier dodged specific ques- tions about whether the province is preparing retaliatory tariffs or, specifically, banning U.S. alcohol product sales — a possible reprisal B.C. Premier David Eby has suggest- ed for his province. Asked about his thoughts on Saskatchewan Premier Scott Moe’s vocal opposition to introducing dollar-for-dollar retaliatory tar- iffs, Kinew said he did not want to address any tactics that have yet to be cemented. Kinew noted he and his counter- parts across the country are not interested in escalating the situation with the U.S. and instead are taking advantage of a “window of opportu- nity” to stop the tariffs from taking effect. Trump initially floated 25 per cent tariffs on respective imports from Canada and Mexico as a response to his claims that both countries were failing to crack down on the illegal migration of people and drugs into the U.S. Since his Jan. 20 inauguration, the Republican leader has ordered a study on Canada-U.S. trade relations be completed by April 1. Trump has said tariffs could be imposed as early as Saturday. “We don’t have a trade imbalance with the United States. We import more than we export so it could be a double-whammy for Manitoba businesses if Canada goes dol- lar-for-dollar in retaliation,” said Loren Remillard, president and chief executive officer of the Winnipeg Chamber of Commerce. MAGGIE MACINTOSH ● TRENDS, CONTINUED ON A2 ● DANIELS, CONTINUED ON A2 ● TARIFFS, CONTINUED ON A3 MIKAELA MACKENZIE / FREE PRESS Premier Wab Kinew says he doesn’t want to get into specifics about contingency plans, preferring instead to maintain the element of surprise, if the U.S. imposes tariffs. Shift in drinking, gambling trends on Crown corp.’s radar Trouble piles up for SCO chief at helm of Bay project Recently reinstated Daniels at centre of legal battle over separate land deal ;