The 2008 Manitoba Budget Address

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The 2008 Manitoba Budget Address - (PDF size 672 k)

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Mr. Speaker and Members of the Legislative Assembly, it is my honour to present Budget 2008, our government’s ninth consecutive balanced budget.

Manitoba is a province that is enjoying more success today than it has in decades. Eight years of solid economic growth, strategic public investments and prudent fiscal management have combined to produce greater prosperity for Manitobans and their families.

The foundation of our economy is rock solid: our population is growing, industries are profitable, unemployment remains low, and our cost of living continues to be affordable. More young people are going to college and university, and a growing number are choosing to put down roots here.

When Moneysense magazine ranked 123 of Canada’s cities on the basis of both economic and quality of life factors, three Manitoba cities placed in the top 25. That is more than any province other than Ontario.

The strength of our economy is a tribute to every Manitoban. Each and every day, our government is working with Manitobans - helping to build a strong economy by putting people first and managing our resources responsibly.

Our government invests in Manitobans’ priorities – health care, education, infrastructure, public safety, and environmental protection. For eight years, we have invested wisely, managed the public debt, reduced taxes, and encouraged growth in the economy. Budget 2008 continues this balanced approach, building upon our successes and preparing our province for the future.

We are preparing for the future because there are challenges ahead of us. We cannot ignore events in the global economy. The competition for skilled labour is fierce, the high dollar challenges our export industries, and the slowdown in the U.S. economy threatens to limit growth around the world.

These global economic threats are real. But Manitoba is well-positioned to meet these challenges head-on.

Mr. Speaker, our diverse economy, our enterprising business community, our hard-working and highly trained workforce, and our government’s sound economic strategies will ensure that we meet these challenges.

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"The Manitoba economy will fire on
all cylinders again this year."

Conference Board of Canada, March 2008

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The strength of our economy in 2007 is reflected in the statistics:

• the economy grew by 3% overall in 2007, outpacing Canada for the second consecutive year;
  
  
• population increase was the highest in 25 years, driven by exceptional levels of immigration and the best interprovincial migration numbers in almost a quarter century;
  
  
• employment grew 1.6%, as the employment rate and labour force participation rate reached all-time highs;
  
  
• average weekly earnings grew 4.2%, stronger than Canada and the highest increase in almost 20 years;
  
  
• housing starts were up by 14%, well above the modest gains for Canada;
  
  
• retail sales rose 9.5%, second highest in Canada;
  
  
• farm receipts increased 18%, almost double the national growth;
  
  
• capital investment grew 17%, and is expected to grow a further 19% in 2008;
  
  
• private investment grew 9.5% and Manitoba will lead the country with a 22% jump in 2008; and
  
  
• foreign exports increased 13%, even as national exports increased by only 2%, with strong gains to all major markets.

The development of clean, renewable energy continues to be a central part of our long-term vision to build the economy. Electricity exports are forecast to produce $5.5 billion in revenues over the next 10 years.

While growth may slow due to changing conditions in the Canadian and world economies, Mr. Speaker, our economy is still predicted to grow by 2.7% in 2008, well above the 1.9% predicted for Canada.

In the face of more uncertain economic times ahead, our government’s strategy will be to focus on maintaining the gains we have made, holding steady to the same course that has served Manitoba so well.

Today’s budget will support our province as it continues to grow and prepare for the future. The budget reflects our commitments to move forward on:

• delivering quality health care and promoting healthy living;
  
  
• promoting a cleaner, healthier environment;
  
  
• implementing new education and training opportunities for young people here at home;
  
  
• providing safer communities;
  
  
• keeping Manitoba affordable;
  
  
• developing our clean energy advantage for the benefit of all Manitobans; and
  
  
• building our economy, building our communities.