Manitobans have confidence in their province. This
confidence is rooted in rising incomes, a diversified
and stable economy, and our continued success in
meeting challenges and winning markets both in
Canada and around the world.
This confidence is reflected in the exceptional growth
in the record of consumer spending in the province
since 2000. Retail sales in Manitoba have grown by
about $3.1 billion over the past five years. This 33%
increase in retail spending is one the highest growth
rates in Canada.
Another way Manitobans are showing their
confidence is through investment in the province.
For many Manitobans, their investment is in their
homes. Single family home construction in Manitoba
has outpaced Canada’s growth in four of the last five
years. According to Canada Mortgage and Housing
Corporation (CMHC), Manitoba is the only
province in Canada which will see continued growth
in single-detached starts in 2006 and 2007.
Manitoba’s total new housing starts construction,
including apartments and condominiums, has
increased by 85% over the past five years, significantly
stronger than Canada’s increase and one of the best
increases among provinces. This record of increasing
levels of home construction will continue. CMHC
forecasts that almost 10,000 more housing units will
be built in Manitoba over the next two years.
For others, investing in Manitoba means investing in
machinery and equipment, offices and commercial
buildings. A number of major capital investments
have been made in Manitoba over the past several
years, including the MTS Centre, major capital
investments in the chemicals industry by Albchem
Industries Ltd. and Nexen Inc., the J.R. Simplot
potato processing plant in Portage la Prairie, major
expenditures in mining by companies like Inco Ltd.
and HudBay Minerals Inc., and a number of major
investments in life sciences industries by companies
like Biovail and Cangene Corporation.
Investment in machinery and equipment (M&E)
is a crucial element of economic performance.
That is because investment enhances an economy’s
productive capacity, and leads to greater productivity
and growing incomes. M&E investment lays the
foundation for future growth and competitiveness.
According to Statistics Canada, the level of real
(after inflation) investment in M&E grew by 30% in
Manitoba between 1999 and 2004. This is one of the
strongest growth rates among provinces and almost
double the rate of growth for Canada overall.
Overall capital investment growth is expected to
continue, with Manitoba leading all provinces
in 2006. According to Statistics Canada, capital
investment is expected to rise 15% this year, with
private capital investment climbing by 10%, double
the national rate of increase.
What makes Manitoba an attractive place to invest?
The province offers investors a competitive business
environment – an environment built upon a unique
combination of factors we call The Manitoba
Advantage:
- a productive, well-educated and multilingual
labour force
- an extremely favourable business cost environment,
including competitive office and land costs, low
construction costs and affordable taxes
- one of North America’s lowest electricity costs with
highly reliable, renewable and environmentally
responsible hydro-electricity
- modern and extensive communications
infrastructure
- an extensive network of research and development
facilities, supporting innovation and technology
diffusion
- a convenient mid-continent location in the North
American central time zone
- cost-effective transportation links and intermodal
facilities providing shipping by road, rail, air and sea
- an extremely favourable cost of living, including
among the lowest auto insurance rates in Canada
- reliable and accessible public services, including
quality universal public health care and education
- safe communities, affordable child care, a dynamic
cultural and artistic community, and an attractive
natural environment – all of which contribute to
an unsurpassed quality of life
This budget paper provides details on The Manitoba
Advantage, including business and personal costs
and taxes, facts on Manitoba’s quality of life and
Manitoba’s Arts and Culture Advantage.
What is the Manitoba Advantage?
Manitoba has one of Canada’s most diverse
economies. It is home to a number of major industries
including aerospace, bus manufacturing, food
processing, health products and research, financial
services, cultural industries, electricity, chemicals,
agriculture and transportation. While the province
has considerable strength, it also has balance: no one
sector dominates the Manitoba economic landscape.
Provincial economic diversity adds stability to the
overall economy. Manitoba’s real Gross Domestic
Product (GDP) growth has been one of the most
consistent among the provinces over the last five
years. This economic certainty contributes to a more
stable work force and a predictable local business
climate.
Manitoba’s published hydro-electricity rates are
among the lowest in the world. Manitoba Hydro, one
of North America’s major electricity companies, has
generating capacity of over 5,000 megawatts, with
tremendous potential for future growth. Virtually
all of the province’s electricity is generated by clean,
reliable and environmentally desirable water-powered
facilities. In addition, in 2006 a new 99 MW wind
farm will be fully operational, adding even more clean
energy supply to Manitoba’s electricity portfolio.
|
 |
 |
Manitoba is located at the northern end of the mid-continental
trade corridor, as well as at the major
junction of Canada’s east-west transportation system.
Winnipeg is the only major city between Vancouver
and Thunder Bay with direct U.S. rail connections.
These factors position Manitoba to further expand
trade and transportation links. Winnipeg’s extensive
and modern rail car marshalling facilities can handle
over 5,000 rail cars per day. Three of Canada’s top
ten for-hire trucking carriers are headquartered in
Winnipeg. An estimated 350-400 carrier firms
operate in Manitoba, and 90% of these operate interprovincially or internationally. Together, these
facilities offer substantial flexibility and cost savings
to business, with ready access to the world’s largest
market.
A flexible and convenient air transportation system
is vital to business success. Winnipeg International
Airport is one of the few major North American
airports that operates 24 hours a day. The airport
offers a broad range of services, including international
carriers, commuter airlines, jet freight, and extensive
cargo and courier facilities. In 2005, it served a record
high 3.2 million passengers, an increase of 6.5%
from 2004, and moved over 150 million kilograms
of air cargo. Also in 2005, the Winnipeg Airports
Authority embarked on an extensive, multi-year capital
improvement program with planned investment of
$560 million over the next four years, including the
construction of a new air terminal building.
Churchill is the only deep-water port in the Prairie
region. Located on Hudson Bay, the port brings
Atlantic Ocean trade diversity into Western Canada.
The Port of Churchill offers shippers major cost
advantages for ocean shipping to and from Europe,
Africa and Latin America.
Manitoba has an abundance of natural resources.
The mining industry extracts and processes a diverse
mix of minerals including nickel, zinc, copper, gold,
cesium, tantalum and oil. Manitoba has a large and
long-established forestry industry that produces
paper, newsprint and lumber. The inland commercial
fishing industry is one of Canada’s largest. A
temperate climate, rich soil, fresh water and a large
land base have made Manitoba a key agriculture
producer. Careful management of Manitoba’s natural
endowments ensures the sustainable development of
these resources now and in the future.
Manitobans enjoy advanced connectivity through a
comprehensive telecommunications infrastructure.
Broadband services are widely available and the
extensive cellular network covers virtually all the
province’s population.
Research and innovation continue to play an
important role in Manitoba’s economic growth and
diversification. The province has a strong and growing
knowledge cluster in a number of fields, although the
research and development (R&D) presence is most
notable in life sciences. Private industry, government
and post-secondary institutions contribute to the
province’s growing R&D infrastructure.
Manitoba remains committed to providing quality
public services such as health care. There are no
premiums or personal charges for medical services
in Manitoba for either employers or individual
Manitobans. This is a major advantage over U.S.
locations for both businesses and residents. In the
U.S., employers offering benefits paid an average of
more than US$8,000 per employee for family health
care insurance in 2005.
Having the skills and knowledge to take on the
challenges of the 21st century is a prerequisite for
a prosperous and growing economy. Manitobans
enjoy a quality public education system, including
affordable, high-quality post-secondary education
opportunities in several universities and colleges.
Higher education continues to be affordable in
Manitoba, with undergraduate tuition among the
most affordable in Canada. About 21,000 students
attend the University of Manitoba, the largest of
Manitoba’s five universities, on a full-time basis, with
another 16,000 attending part-time. The University
offers a wide range of post-secondary programs,
including a diverse selection of graduate programs,
sciences and arts, medicine, law, architecture, fine
arts, engineering and agriculture. Another 17,000 students are enrolled in full- or part-time study
at Manitoba’s four other universities. As well as
university study, over 15,000 students are enrolled
in full- or part-time study at Manitoba’s four
community colleges.
Competitive operating costs and taxes have made
Manitoba one of the least expensive provinces in
Canada to do business. More details on Manitoba’s
business cost advantage can be found in Appendix 1,
Manitoba’s Competitive Environment for
Manufacturing.
Manitoba’s Quality of Life Advantage
Winnipeg is a growing cosmopolitan centre
of 700,000, and workers enjoy the benefits of
convenient and community-minded living. The
average commuting distance to work in Winnipeg is
less than six kilometres, the lowest of any Canadian
city with population over 500,000.
Winnipeg is recognized as one of Canada’s most
family-friendly cities. Affordable living costs,
good schools, excellent child-care options and safe
neighbourhoods make Manitoba a highly desirable
place to raise a family.
Manitobans care. The rate of volunteerism in the
province is consistently among the highest in the
nation. Moreover, Manitobans have the highest
proportion of charitable giving of any province.
This reflects Manitobans’ community spirit and
long tradition of helping others. The Government
of Manitoba also provides indirect contributions
to culture through tax credits on charitable
donations. In 2003 over $658 million was donated
to all registered charities in the province, including
$310 million from individuals. Through income tax
deductions and credits, the government of Manitoba
supported charitable donations in the amount of
$105 million in 2003, including $49 million in tax
credits to individuals.
Winnipeg has an active and vibrant artistic and
cultural scene, including the Winnipeg Art Gallery,
the Manitoba Museum, the Royal Winnipeg Ballet,
the Winnipeg Symphony Orchestra, the Manitoba
Theatre Centre and many other live theatre groups.
Manitoba also boasts many contemporary cultural
attractions.
Manitoba’s diverse population has created a rich
and fascinating mosaic of cultural and artistic
accomplishments. For more details, see The
Manitoba Arts and Culture Advantage.
In November 2004, the new $135 million, 15,000 seat
multi-use sports and entertainment facility, the MTS
Centre, opened in Winnipeg. With superb acoustics
and excellent sightlines, the world-class MTS Centre
venue is drawing numerous entertainment events
to Manitoba. In 2005, an entertainment industry
survey showed that the Centre had become one of
the top ticket venues in North America. In 2007, the
MTS Centre will be the site of the Women’s World
Hockey Championships. The location of this state-of-the
art facility in downtown Winnipeg is also acting
as a catalyst for further development of Winnipeg’s
downtown district, which is already the site of many
major capital projects this year.
Manitoba has a long sporting tradition. There are
professional sports teams in the Canadian Football
League, American Hockey League and the Northern
Baseball League. With more than 120 golf courses,
Manitoba has one of the highest ratios of golf courses
to golfers in Canada, as well as one of the highest
golfing participation rates in Canada. More than
one in four Manitobans tee off in the province each
year. In 2006, football fans from across Canada will
converge in Winnipeg in the fall as we play host to
the CFL Grey Cup Championship game.
Manitobans enjoy their natural environment.
Beaches, lakes, rivers and parks are an integral part of
Manitoba’s quality of life. Manitoba is a province of
100,000 lakes – you’re never far from an opportunity
to participate in water sports like canoeing, kayaking,
or swimming, or to just relax at one of Manitoba’s
world-class beaches. Proximity to lakes and
affordable vacation homes has given Manitobans one
of the highest rates of vacation homeownership in the
country. Winnipeg is green – the city is home to the
largest urban forest park in Canada, and Winnipeg
is also home to the largest mature elm tree urban
forest in North America. Winters offer extensive
family recreation opportunities for skiing, curling,
snowmobiling and (of course) hockey! Whether
you are an observer or a participant, the choices for
recreation are almost endless.
Conclusion
Budget 2006 builds on Manitoba’s considerable
advantages. To show Manitoba’s cost competitiveness
in more detail, two Appendices are attached. The
first, Manitoba’s Competitive Environment for
Manufacturing, provides a detailed comparison of the
taxes and costs faced by representative manufacturers
in various Canadian and U.S. cities.
The second is an Interprovincial Comparison of
Annual Personal Costs and Taxes.
