Budget bill that includes PST reduction passes hurdle, but NDP still wants halt to campaign rebate cut

Manitoba's official Opposition is calling the government's bluff on a threat to hold an early election if the bill that includes a promised PST cut does not pass this spring.

The New Democrats voted in favour of the budget bill Tuesday so it could enter the committee stage.

But the Opposition party's approval comes with a caveat: the NDP wants Brian Pallister's Progressive Conservative government to walk back a controversial section of that same bill which would cut campaign rebates for political parties.

The NDP says eliminating the subsidy would make it harder for lower-income people to run for office, because of fear they would carry large campaign debts.

Pallister has said that taxpayers shouldn't reimburse political parties.

NDP can still delay budget bill

If the NDP does not get what it wants, the party can still decide to delay the bill on Wednesday. The Opposition party has the right to hold over a number of bills until the next legislative session in the fall.

"At this point, it really is up to the premier. The ball is in his court," NDP Leader Wab Kinew said outside the legislative assembly. 

"The only thing that could really prevent the PST from going down now is if he calls an early election," said Kinew. All legislation that hasn't passed would be cancelled once the writ is dropped.

That's why they're spending so much time worrying about this rebate — because they haven't done the work of fundraising.- Premier Brian Pallister

Kinew wouldn't say what his party will do on Wednesday, since there's still a possibility for closed-door meetings.

"The best outcome for me would be we have some changes for the pieces of the bill that we view as undemocratic."

The NDP's vote in favour of the bill comes after the party's MLAs recently slowed its progress with tactics such as reading the petitions slowly in the house.

Pallister said he doesn't believe the party that hiked the PST in 2013 is changing course. 

"Do you trust the party that told you before that they were not going to raise the PST and then did, or do you trust the government that ran on a promise to lower the PST and is keeping that promise?" Pallister told reporters.

Pallister has suggested that stalling the bill, which follows through on a 2016 campaign promise to cut the provincial sales tax by one percentage point, could be the justification he needs to call an election earlier than the next fixed election date of Oct. 6, 2020.

He said in an interview last week on CBC Manitoba's Information Radio he doesn't want to call an early election but could change his mind if the NDP stalled the bill, which he claimed would prevent the PST cut from happening by July 1. Previously, however, he said the cut will take effect July 1, even if the opposition delays the legislation.

Pallister acknowledged on Tuesday the PST cut could take effect without the bill being granted royal assent, but it wouldn't be permanent without the heft of legislation behind it.

"I can temporarily get it changed," he said, "but I would prefer to have the bill passed."

'Monumental' mistake: Pallister

He said delaying the budget bill would be a "monumental political error" for the NDP.

He argued the real reason the New Democrats are concerned with a subsidy for 50 per cent of campaign expenses is that their fundraising efforts lag considerably behind the Progressive Conservatives'.

The Tories received more than $2 million in donations last year — more than triple the amount raised by the NDP. 

"They're not doing very well with their fundraising, and I don't say this to be mean, but that's why they're spending so much time worrying about this rebate — because they haven't done the work of fundraising," Pallister said.

'Not interested' in snap election call

Pressed again on the possibility of an early election, the premier dampened expectation of an imminent call.

"I'm not interested in trying to snap an election call or take advantage of the position we have in power," he said.

But he also seemed to suggest he won't wait until 2020 to go to the polls.

Opposition parties would be critical if he used the platform of the year-long celebrations for Manitoba's 150th birthday to promote his own government, he said.

"I don't think Manitobans want to see politicians trying to get advantage out of using government money to fund events where they get to go and get on the grandstand and profile themselves."