It has not been a great couple of weeks when it comes to economic news in Manitoba. Some of the challenges are beyond the control of government, but some are directly the result of government. And both have impacted negatively on the job market in the province.
Two large retailers announced that they were closing all or part of their operations in Manitoba. Cabela’s announced that it would be shutting down its distribution centre located in Winnipeg, putting 150 people out of work. Cabela’s placed their distribution centre in Winnipeg at a time when the NDP were promising not to raise taxes but have since undertaken some of the largest tax increases in Manitoba history. Cabela’s is moving its distribution centre to the lower taxed jurisdiction of Alberta.
Target stores in Manitoba will also be closing as a result of a decision by that company to close all of its Canadian stores. While it seems that Target was the victim of a poor business rollout strategy in Canada, the end result is the same, the Manitobans who were employed in those stores will be looking for new work. Added to the closing of Target are other big store closures such as clothing retailer Mexx and some Safeway stores. All of this comes after a year when few new jobs were created in Manitoba. No doubt the high tax policy of the NDP has played a part in the low job creation numbers.
There is also uncertainty being felt in the national economy because of low oil prices. While those low oil prices bring welcomed relief at the gas pumps for Canadians, it negatively impacts national government revenues. The impact on Manitoba will not be as significant as for our neighbors to the west, but it adds another layer of economic uncertainty.
Given the instability that exists, it would seem logical that government would be doing all it can to provide businesses with certainty. That logic seems to be lost on the Manitoba NDP government and in particular those that want to lead it.
Last week, NDP leadership candidate Theresa Oswald indicated that she would like to mandate a Manitoba Pension Plan. Employees and employers would be forced to pay into the plan. Ironically, it was just a few months ago when then Finance Minister Jennifer Howard said the idea of a Manitoba Pension Plan would be too costly.
Given the NDP governments track record of managing things like the doomed Crocus Investment Fund, it’s unlikely many Manitobans would want to have the NDP as their investment managers. Just as concerning was the message it sent to small and medium sized businesses that the cost to do business in Manitoba could be going up again. As the past few weeks have reminded us, business is free to move or can shut its doors if not successful. And when that happens many jobs are lost.
Manitoba has great potential to be a leader in job creation, even in difficult and uncertain times. But it needs a government that welcomes business, not scares them away.
