Province pans federal budget, while city of Winnipeg relishes gas tax transfer

The federal budget lays out $22.8 billion in promises to Indigenous services, seniors and millennials — but the Manitoba government said it doesn't "meet the test" for the province.

The province's Conservative leaders had hoped for tax relief for Manitobans, more health care funding and compensation to account for border-crossing asylum seekers, but those wishes were not granted in Tuesday's budget.

"It does not meet the test for the average Canadian, average Manitoban," provincial Finance Minister Scott Fielding said. "And what they've been telling us is they think they're overtaxed and that's what we've been focusing on in Manitoba, putting a little bit more money in the pockets of Manitobans."

He said he was happy the budget is moving toward a plan for Canada-wide high speed internet by 2030.

Winnipeg is expecting a windfall of more than $40 million from the federal government's 2019 budget, which conveniently is similar to the amount the city says is missing from the province to fund 2018 road work.

Ottawa's decision to pour $2.2 billion more into the gas tax transfer will shake out to more than $40 million for Winnipeg for one year, city staff estimates.

"This funding, even on a one-time basis, would help Winnipeg address any number of its capital needs," Mayor Brian Bowman said in a statement.

Small businesses 'overlooked'

The budget does little to address rising costs for small businesses, according to Jonathan Alward, director of provincial affairs for the Canadian Federation of Independent Business in Manitoba.

"I think a lot of small business owners in Manitoba and across the country are going to probably feel … frankly overlooked, in this budget," Alward said.

"The budget really lacked tax relief and I think an awareness of all these cost increases that small business owners are facing, whether it's the federal tax changes, CPP premiums going up, a carbon tax coming," he said.

"The budget did very little to mitigate any of those significant costs increases," he said.

Alward said the budget does outline positive changes that will make it easier for small businesses and individuals to sell or transfer properties within their own family.

"Right now, it's actually more expensive to transfer your business, when you're retiring, to a family member than someone outside of the family. That's not right; it's not fair," he said.

There's also money in the budget that would put $250 each year toward job-related training, up to a maximum of $5,000 over a lifetime.

"Across Canada, Manitoba is no exception. We've seen a growing gap in skills and labour shortage.… We don't know what employees will be able to qualify for. We don't know if businesses are going to have any say in that," Alward said.

$8.1B for Indigenous services

The budget's single biggest investment is in Indigenous services: $8.1 billion over five years for improving health care, ending boil-water advisories on reserves and settling land claims.

"I'm not surprised that the government felt that it had to reinvigorate its promises made to Indigenous communities," said Jacqueline Romanow, chair of Indigenous Studies at the University of Winnipeg.

"When the government was first elected, the prime minister went out of his way to reach out to Indigenous communities and say things were going to be different," she said.

"That relationship has gone through tough times … so I think this is a way of trying to mend some fences," she said.

Romanow said the budget's plan to forgive loans that First Nations had to take out for land claims will help move the process forward for many communities in Manitoba, she said.

"First Nations are tired of being dependent, waiting for the government to give them handouts. They really want the land and resources to be able to support themselves."

Part of Tuesday's budget pledge is $1.2 billion over three years to develop a long-term approach for services for First Nations children. 

But that's something the federal government was required to make happen, Romanow said.

"The Supreme Court of Canada had ruled that they had to ensure Jordan's principle could take effect, so all First Nations children would have access to the same health care as other children in Canada."

The policy is named after a Manitoba First Nations boy with multiple disabilities who died after jurisdictional squabbles between federal and provincial governments over payment for his care.

Renata Meconse, with the First Nations Health and Social Secretary to Manitoba, is welcoming that promise.

"Those are services that children should be able to access just like any other Canadian child. That funding would bring up the services to be at par with other Canadian children in Canada."

Focus on seniors, millennials

Millennials are also being targeted in this budget, with a new shared mortgage program that could offset the purchase price of a first home by up to 10 per cent.

The budget also boosts the amount that can be withdrawn from RRSPs for a first-time home purchase — to $35,000 from the current $25,000.

The budget also looks to appeal to seniors, but the measures don't go far enough, according to Connie Newman, with the Manitoba Association of Seniors Centres.

"We're the bulk of the population today across Canada. There is more of us than under 15-year-olds. Expenses are going up. Medicare is a big issue. We're living longer. Some of us [are on] too many medications," she said.

The Liberals have been promising a national pharmacare program. The budget doesn't earmark significant money to create one.

That's a big problem for seniors, Newman said.

"I want to see it happen," she said. "We've been talking about national pharmacare for probably 10 years."

Newman said she's glad this budget proposes new measures to improve the security of workplace pensions when companies go bankrupt.

"You save all your life. You work all your life. You retire. Then all of a sudden your company is gone, and so is your pension," she said.

"That is horrific for many of our older adult seniors in this province."