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THE MANITOBA EMPLOYERS COUNCIL ­­­­­­­­­­­­­

NEWS RELEASE

 MANITOBA PROSPERITY REPORT HIGHLIGHTS ECONOMIC CHALLENGES FOR MANITOBA

Aug. 29, 2011 – The Manitoba Employers Council (MEC) today released a report that clearly shows that despite the fact over the last decade we have seen Manitoba’s economy grow in a slow, yet steady manner we find ourselves in many instances falling further behind neighbouring jurisdictions.

Over the last decade we have seen Manitoba’s economy grow in a slow, yet steady manner we find ourselves in many instances falling further behind neighbouring jurisdictions.

The Manitoba Prosperity Report reviewed and analyzed a number of key economic indicators over the last ten years to determine whether Manitoba has achieved its prosperity potential relative to British Columbia, Alberta, Saskatchewan and Ontario.

“The Manitoba Employers Council has chosen the indicators used in the Prosperity Report based on their focus on determinants of wealth creation and prosperity,” said MEC Chairman Bill Gardner. “The indicators are crucial to determining whether or not Manitoba isa competitive environment in which to do business – and if not – will give the business community a better understanding of the measures that need to take place to increase prosperity in this province.”

Some of the highlights of the Manitoba Prosperity Report are:

• Manitoba’s personal disposable income has increased by 20 per cent, but ranks last among its neighbours;
• Manitoba’s labour force has increased 12 per cent, but ranks last among its neighbours;
• Manitoba’s personal income taxes, for a two-earner family of 4 @$60,000, have decreased 15 per cent, but are, on an annual basis, the highest;
• Approximately 11 per cent of Manitoba’s labour force has less than a high school education, down from 16.5 per cent;
• Manitoba's the only province to post a net interprovincial migration loss each year;
• Manitoba is home to 35 of the top 800 largest companies in Canada, up from 27;
• Manitoba’s entrepreneurial intensity remains unchanged at 63 businesses per 1,000 population, below the 79 businesses per 1,000 population average.

“What’s encouraging in the Manitoba Prosperity Report is that Manitobahas experienced reductions in corporate income taxes, small business taxes and even personal income taxes,” said Winnipeg Chamber of Commerce President and CEO Dave Angus. “The challenge is that we haven’t kept pace with the taxation levels in other provinces.”

“The Manitoba Prosperity Reportalso reveals that labour force growth and high school and post-secondary graduation rates, while also improving, are again not keeping pace with other jurisdictions,” said Manitoba Chambers of Commerce President and CEO Graham Starmer.

The Manitoba Employers Council has shared the Manitoba Prosperity Report with the leaders of the three main political parties and is recommending Manitoba take action on several fronts:

• Growing our labour force, in part by reversing the annual net interprovincial migration losses;
• Following through on commitments to reduce the general corporate tax rate;
• Increasing the small business threshold
• Lowering personal income taxes through a combination of reducing rates, increasing brackets/exemptions and indexing to inflation;
• Reducing/eliminating the payroll tax, thereby enhancing our ability to increase our share of head offices; and increasing high school and post-secondary graduation rates.

For Media Interviews Please Contact:

Bill Gardner

Chairman

Manitoba Employers Council

Phone: 956-0560

Dave Angus

President and CEO

The Winnipeg Chamber of Commerce

Phone: 944-8484

Graham Starmer

President and CEO

Manitoba Chambers of Commerce

Phone: 948-0107

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Contact: Chuck Davidson – Vice President Policy
The Winnipeg Chamber of Commerce
Cell: 782-1679
Email: cdavidson@winnipeg-chamber.com