Province introduces legislation to strengthen Manitoba Hydro and improve financial accountability

The Manitoba government recently introduced the Budget Implementation and Tax Statutes Amendment Act (BITSA 2), with measures that would help keep Manitoba Hydro rates affordable and improve transparency and accountability in the province’s financial reporting.

“Our government is focused on making life more affordable for Manitobans, and that includes keeping hydro rates as low as possible for families,” said Finance Minister Adrien Sala. “Large cryptocurrency operations and AI data centres use significant amounts of electricity, and they should contribute fairly to the system we all rely on.”

The legislation would ensure revenue from a new levy on cryptocurrency operations and large AI data centres is returned to Manitoba Hydro residential customers. The new measure would be expected to save all residential ratepayers roughly $50 per year, and bills will be lowered monthly beginning early in the new year.

The legislation would also restore the Workers Compensation Board (WCB) to summary government for the purposes of financial reporting, to help improve systemic financial governance, accountability and transparency. The proposed changes follow consultation with the Office of the Auditor General, the WCB and employer and labour organizations.

“Manitobans deserve a clear and complete picture of the province’s finances,” said Sala. “The previous government removed the WCB from summary financial reporting, a decision that led the auditor general to provide multiple qualified opinions on the province’s books. We are restoring that accountability and financial oversight while protecting the WCB’s independence.”

The Manitoba government has included the WCB in its financials since the beginning of summary government reporting in 1989-90. The proposed BITSA 2 legislation would reverse the changes made in 2018-19 and formally recognize the government’s existing implicit guarantee of the WCB system.

The Manitoba government also engaged with Deloitte Canada, one of the most reputable professional services firms in the country, to provide advice on WCB’s reporting status and options to strengthen financial governance, transparency and accountability.