After being urged to act, Manitoba government about to tackle inflation with new relief

Manitoba's government won't rest on its laurels any longer in the face of soaring inflation.

For months, the Progressive Conservative government has referenced past affordability measures — such as tax breaks — when asked to respond to the ever-rising cost of living, but now the premier teased her government would come up with a new initiative. 

On Monday, Heather Stefanson said enough Manitobans have bent her ear — and that of her government. 

"I think it's being out listening to Manitobans and just recognizing that there has been some challenges," the premier told reporters after an unrelated news conference, citing the rising interest rate as one issue

"As things start to evolve … we need to make sure that we're in a place where we can make those changes to ensure that Manitobans have the resources that they need to be able to put food on the table for their kids, clothing on their back and be able to drive them to community centres for their kids' programs."

Stefanson wouldn't tease what the announcement would be. She only said her government has been evaluating all the ideas that people have been floating around, in response to issues ranging from the price of gas to groceries. 

Existing measures made a difference: premier

The premier said she recognizes what other jurisdictions have done to shoulder inflationary pressures. Those comparisons have demonstrated where Manitoba has already been proactive, Stefanson said.

"We've already indexed things to inflation here in Manitoba. We've already given money back in the way of our property tax reduction. We're looking at the MPI rebates we did, but we recognize there's still more to do."

Those affordability measures took effect well before recent months, when inflation kept mounting.

Many Manitoba property owners received a second round of property tax rebate cheques in June, but that program was announced in 2019 as a Tory election promise. 

Finance Minister Cameron Friesen has previously ruled out the idea of a gas tax holiday, as Alberta has done. Friesen said the province only collects one fuel tax that's fixed, no matter the price at the pump, but it's the federal government that should offer relief since it collects three separate taxes. 

Stefanson wouldn't say Monday if gas tax relief was coming in Manitoba, but she repeated the ask that Ottawa steps up. She suggested the federal government could temporarily stop collecting the carbon tax, which is now 11 cents per litre.

NDP Leader Wab Kinew said the premier is a "little late to the game" on this file, after critics urged action for months.

The NDP has been calling for an all-party committee to investigate rising costs.

Groceries, gas should be considered: critic

"When we're looking at the affordability crisis that the average family is facing, I think we do have to consider all these various tools that we have at our disposal," Kinew said.

"I think if you ask the average family, it's the cost of groceries that's going to be top of the list in terms of those drivers of the rising cost of living, though, of course, gas and hydro bills are also piling up, too."

Elsewhere, Alberta instituted a gas tax holiday while also offering $50 monthly rebates on electricity and Quebec sent out a $500 payment to everyone making $100,000 or less.

Liberal Leader Dougald Lamont said the Manitoba government shouldn't pat itself on the back. 

Manitoba had the second-highest inflation rate in the country last month, Statistics Canada reported. 

"Whatever the PCs have been doing hasn't been working," Lamont said. "The PCs have increased government debt by billions of dollars, often to cut cheques to people who don't need the help, and Manitobans have nothing to show for it."

Stefanson took to the Bourkevale Community Centre soccer field on Monday afternoon to officially launch a new $100 million fund to support arts, culture and sports organizations in the province.

The new pool of money will flow $34 million in the first year of the three-year program to provide grants for capital projects, special initiatives and community celebrations.

The premier and Sport, Culture and Heritage Minister Andrew Smith stressed that all community groups are eligible to apply for these grants, with the first intake opening in August. 

In her tours of the province, Stefanson said it is clear that many facilities are in dire need of repair.

"We need to make sure that we increase the funding and the capital funding for those projects, so that they can be there for not just next year or the year after, but really for decades and generations to come."