Economic growth depends on investment, new deal for municipalities: MHCA
The federal government’s appointment of a task force on economic growth, led by former Bank of Canada governor Mark Carney, should focus all levels of government on the importance of growing the economy through strategic investment, MHCA President & CEO Chris Lorenc says.
In an email to Premier Wab Kinew, and key cabinet ministers, and Winnipeg Mayor Scott Gillingham and Council, Lorenc calls for all levels of government to work to raise the GDP, underscoring the need for strategic investments that will ensure Canada is an indispensable, reliable global trade partner.
“The opportunity to lead does not rest just at the federal level. Relationships between municipal and provincial governments are essential to a national ‘growing the economy’ effort.”
The MHCA, in the email, asks that Kinew and Gillingham start the discussion in Manitoba, engage with the private sector, through a meaningful review of at least two initiatives:
CHIEF ECONOMIC DEVELOPMENT OFFICER (CEDO).
Winnipeg can appoint a Chief Economic Development Officer with a mandate to champion and advance policies to grow the economy. The CEDO would be an executive team leader who would ensure economic growth played a central role in all City of Winnipeg investment, development and planning strategies and budgets.
Championing growth as part of a ‘whole-of-government’ approach creates a long overdue ‘growing the economy partnership’ with the provincial government.
NEW FISCAL DEAL
Negotiate a New Fiscal Deal that would redefine core responsibilities and give access to funding streams between provincial and municipal governments (and by extension Ottawa).
A new fiscal deal could give cities access to taxation authority directly generated from growth (for example, retail sales). Cities currently rely too heavily upon property taxes supplemented by service fees and levies to raise revenues. In contrast, provinces and the federal government see their revenues immediately grow with the economy, through income, corporate or sales taxes.
“An opportunity exists, as does the clear need, to improve upon what now exists,” Lorenc notes in his email.
“Leaders at the provincial and municipal levels, each engaged in 2025 budget deliberations, know that what currently exists is not only unsustainable, but inadequate to the challenges of the future.
