Written by Gwen Black, Policy and Government Relations Manager.

Here are a few recent happenings you need to know for your business: 

Municipal 

City of Winnipeg 2025 Preliminary Budget Update 

The City of Winnipeg 2025 Preliminary Budget Update proposes a 5.95% property tax increase, increased funding for city services, and a concerning depletion of the Financial Stabilization Reserve. On January 22, The Winnipeg Chamber will appear in delegation before Executive Policy Committee to speak to the update.  

Check our analysis of the 2025 Budget Update.

Provincial 

Provincial Second Quarter Fiscal Update 

Manitoba’s deficit is expected to reach $1.3 billion, despite improved economic growth of 1.0% and increased revenues from corporate and retail sales taxes. The province’s net debt-to-GDP ratio is forecasted to decline to 36.4% (from 38.5%), but health spending is projected to exceed the budget by $438 million. 

It is imperative that we get back to balance, arrest the ballooning deficit and debt servicing costs, and put Manitoba on a healthy path of economic self-determination. We will continue to work with the provincial government to craft an economic strategy that drives efficiency, investment and growth.  

For the full update click here.

New Public Safety Strategy 

Manitoba’s new Public Safety Strategy was unveiled on November 14, 2024, aimed at addressing violent crime, retail theft, and the root causes of crime. The announcement included the addition of 12 new Winnipeg Police Service officers, making the Retail Crime Initiative permanent, and plans to hire 100 new mental health workers to work alongside first responders. Twenty-five of these new mental health workers set to start work by the end of March. 

For more details, click here. 

Federal 

Prime Minister Justin Trudeau’s Resignation 

On January 7, 2024, Prime Minister Trudeau announced his resignation marking a pivotal moment and opportunity for new leadership to address Canada’s challenges.  Strong leadership focused on stability and fostering growth is critical for Canada’s economic future. We call on the next Prime Minister to focus on action to boost productivity, reduce barriers to business growth, and strengthen our trade relationship with the U.S. 

Read the full Winnipeg Chamber of Commerce statement on Prime Minister Trudeau’s resignation here.

Federal 2024 Fall Economic Update 

After the abrupt resignation of Finance Minister Chrystia Freeland, the Government of Canada released it’s 2024 Fall Economic Statement. While the Statement introduced targeted measures to address immediate economic pressures, it lacked the fiscal leadership and transformative vision necessary to enhance productivity and drive economic growth.   

Bank of Canada Monetary Policy and Rate Cuts 

The Bank of Canada has been steadily reducing interest rates since June, with the December 2024 cut of 3.25% marking the fifth consecutive reduction. The decision to lower rates by 50 basis points reflects efforts to support Canada’s economic growth, which has been lagging expectations, despite inflation holding steady at roughly 2%. Adding to the uncertainty is the potential for the incoming U.S. administration to impose tariffs on products imported from Canadian, which has further heightened economic concerns. 

The next scheduled date for announcing the overnight rate target is January 29, 2025. 

Winnipeg Chamber Advocacy in Action: Update 

City of Winnipeg 2025 Preliminary Budget 

On January 22, 2025, our President and CEO, Loren Remillard, will appear at the Executive Policy Committee (EPC) meeting, to address the importance of economic investments that signal our city remains an open and attractive place for business investment and growth. 

Registration is now open for our 2025 Civic Leader Dinner on April 23 – your opportunity to get before the Mayor, Council and members of senior civic administration to speak directly to your concerns and priorities. Click here to get your seats today.

Board Meeting with Premier Kinew 

On December 3, The Winnipeg Chamber of Commerce Board of Directors held its annual meeting with Premier Kinew prior to his State of the Province Address. The Premier and Board Directors engaged in an open and transparent dialogue about economic development, downtown crime and safety, civic-provincial relations, U.S. trade relations, and Indigenous procurement.   

After the meeting, during his State of the Province Address, Premier Kinew announced his commitment to re-establish Manitoba’s trade office in Washington, DC.  

Manitoba Chambers of Commerce Advocacy Day 

Our Policy and Government Relations Manager Gwen Black participated in Manitoba Chambers Advocacy Day and met with several ministers to discuss Chamber priorities and voice member concerns. 

We were pleased to engage, alongside Chambers of Commerce from across the province, with Premier Wab Kinew; Ministers Sala (Finance), Moses (Business, Mining, Trade, and Job Creation), Kostyshyn (Agriculture), Naylor (Transportation and Infrastructure), Schmidt (Environment and Climate Change), Wiebe (Justice), Simard (Municipal and Northern Relations), Marcelino (Labour and Immigration), Bushie (Natural Resources and Indigenous Futures), Kennedy (Sport, Culture, Heritage, and Tourism), and Sandhu (Public Service Delivery); as well as the PC Caucus. Key topics of discussion included economic development, youth retention, the need for infrastructure investment, and crime and safety. 

Removing the PST/GST on Second-Hand Goods 

On December 9, 2024, The Winnipeg Chamber of Commerce wrote to Manitoba Finance Minister Sala to recommend the removal of GST and PST on the sale of second-hand items valued at $250 or less, as well as on repair services for second-hand items valued at $50 or less. 

A second-hand tax doesn’t make sense from a consumer fairness point-of-view, especially for the most financially vulnerable Manitobans who rely on buying second-hand goods.   Further, The Chamber contends the policy change would encourage greater reuse and repair, thereby diverting and reducing waste in our landfills. 

The Winnipeg Chamber has signed onto a national effort to drive the policy change in Ottawa as well. 

Recently Passed Labour Legislation 

During the 1st session of the 43rd legislature, the Government of Manitoba made amendments to The Labour Relations Act and Tendering Act after little to no meaningful consultation with the business community. In response, our President and CEO, Loren Remillard joined other business leaders signing a Manitoba Employer’s Council letter to Minister Marcelino. Hit this link to read the full letter.

Community Enterprise Development (CED) Tax Credit 

In December, The Winnipeg Chamber submitted a letter to the Government of Manitoba expressing support for proposed enhancements to the Community Enterprise Development (CED) Tax Credit. These changes, including raising the lifetime cap and share limits, will strengthen local businesses and attract private investment. Highlighting the success of Peg City Car Co-op, we emphasized how these improvements align with the government’s priorities of economic growth and small business support. Click here to read the full letter. 

US Trade Relations 

In response to President-Elect Trump’s potential 25% tariff, The Winnipeg Chamber, as part of the he Canadian Global Cities Council (CGCC) has requested a meeting with Christiane Fox, Deputy Clerk of the Privy Council and Associate Sectary to Cabinet, Chris Forbes, Deputy Minister, Finance, Philip Jennings, Deputy Minister, ISED, and Rob Stewart, Deputy Minister, International Trade to discuss how we can collaborate on a unified, Team Canada approach to trade relations with the United States in the years ahead. 

The CGCC is coalition of eight of Canada’s largest urban Chambers of Commerce and Boards of Trade representing more than half of Canada’s GDP and population. We are deeply invested in ensuring the economic resilience and competitiveness of Canada.