Premier suggests scrapping rebates for companies like Loblaw could put them 'out of business' in Manitoba

Manitoba's premier responded to criticism of her government for sending hundreds of thousands of dollars in education property tax rebates to corporations like Loblaw by suggesting on Tuesday that ending those rebates could amount to putting such companies "out of business in this province."

Heather Stefanson made the comments during question period after Opposition NDP Leader Wab Kinew said Manitoba gave a rebate of $325,000 to the company that owns stores like Real Canadian Superstore and No Frills. 

"The company that the leader of the Opposition is referring to employs more than 3,000 Manitobans ... and he's talking about putting them out of business in this province," Stefanson said.

"Millions of dollars of tax revenue that we get as a government from this very corporation that the leader of the Opposition is talking about, and he's talking about shutting them down in the province of Manitoba."

Kinew pushed back on that idea, saying that such a profitable company shouldn't need the rebate cheque to stay afloat.

"There is no risk that this company goes out of business," he said.

"A company owned by Galen Weston, which is so wildly profitable, should not get an extra $325,000 from this PC government — especially not when that $325,000 is being taken from revenue that is supposed to fund public schools."

The update comes a day after the NDP presented calculations that show Superstore locations in Winnipeg and Brandon collected $300,000 in education property tax rebates in 2021.

CBC analyzed the NDP's information and every Superstore location in Winnipeg is at least 50 per cent owned by an entity controlled by its parent company, George Weston Limited, whose two main businesses are Loblaw and Choice Properties REIT.

Loblaw Properties West owns five Winnipeg Superstores outright and has a half interest in two locations. Choice Properties REIT — 62 per cent owned by George Weston Limited  — owns the Superstores on Regent and Portage. 

The Brandon Superstore which was issued a $17,000 cheque is owned by a Chicago-based property company.

Based on this analysis, George Weston Limited-affiliated companies received $226,000 in rebate cheques.

The NDP also said on Monday while it would keep the education property tax rebates if elected, it would do away with them for some commercial property owners. But Kinew wouldn't reveal how his government would determine which owners of commercial properties are entitled to the rebate, other than to state "I think local is key."

After question period on Tuesday, Kinew told reporters he's not worried that businesses like Loblaw might choose to leave or scale back investments in Manitoba based on potentially losing the rebate.

"This company is hugely profitable and they didn't ask for this handout from the PCs. So what we're saying is that this company will still be wildly profitable," he said.

"Why don't we use these resources to invest in our public schools, especially when we hear educators saying that education is underfunded in Manitoba?"