Saskatchewan Looks Better Everyday

After the election closed last week I jokingly said “Saskatchewan looks better today than ever before.” Upon closer reflection, this is not as much of a joke as it was last week. Before actually looking at the situation and comparing Manitoba and Saskatchewan, we could at least say “At least I don’t live in Regina!” when things weren’t looking so good. Now, it simply isn’t the case. Saskatchewan looks better every day, except for the days the Roughriders play.

Saskatchewan is doing things right. Why can’t Manitoba? The slogans say it all. As Manitoba blundered in spending millions on contracting the creation of a provincial slogan to a New York firm, Saskatchewan laughed. Spirited Energy… That’s all they could come up with? Are you kidding me? Alberta looks at us and says “we have the energy, keep the spirit.” North Dakota looks at it and asks “why did they steal the bison off of our license plates?”
Innovative by Nature… now that’s a slogan! It is better in every way and shows a desire to improve.

Improvement is exactly what Saskatchewan is doing right, and exactly the opposite of what has been happening in Manitoba. In today’s Winnipeg Free Press, Geoff Kirbson wrote that Manitoba has LOST 100 payroll positions in the first three months of this year, while at the same time neighbouring Saskatchewan CREATED 4000 jobs, according to Statistics Canada. The same article stated that out of the 285700 jobs created in Canada last year only 1000 were in Manitoba – which is less than ½ of 1%. Lets look at a possible reasons Manitoba has fallen behind.

#1 – The Payroll Tax
No (or few) large corporations will set up in Manitoba, let alone Winnipeg with this massive tax. Corporations are losing 2 fold. Employees are taxed on their income. Companies are taxed on their salary spending. Why does the province of Manitoba feel the need to be so unfriendly to businesses by taxing them not only on any income, but on expenses? Let’s face it; the large companies/corporations will be paying the large salaries professionals desire and with this tax, barely any large companies would set up in Manitoba, thereby eliminating those positions from Manitoba. Saskatchewan is right next door: only a couple hours away, and they don’t have a Pay Roll Tax. Where do you think an intelligent decision maker for a business would choose to set up – Manitoba where they are being charged an unreasonable tax, or Saskatchewan who offers a similar environment, with a friendlier, business minded government? The numbers speak for themselves. 100 jobs LOST vs. 4000 jobs CREATED.

The Free Press article also points towards other disturbing trends. Manitoba ranked 17 out of 28 for average incomes in cities. The average Manitoba income for a Winnipeg family is $68900. Winnipeg also ranked 18th in average income for single parent income at slightly over $30000. Winnipeg housing and property is known across the country to be very reasonable and affordable, however that's because it has to be. Given the poor salaries, and lack of willingness of large companies to locate in Manitoba, houses have to be cheaper. Moreover how is Manitoba supposed to retain its young graduates, professionals and skilled trades with such weak prospects of obtaining a successful career and large salaries?

In readings this posting, ask yourself why a government of a have-not province would introduce and maintain a pay roll tax, which discourages investment and growth. Ask yourself why people don’t make as much money in Winnipeg. Is it because we have an inherently weak economy, or is it because we have a weak economy partly die to a government that is not committed to fostering growth, investment, creating jobs and not working to attract big businesses so that Manitobans may prosper?