Province would never meddle in MPI's negotiations with insurance brokers, Pallister vows

Manitoba Premier Brian Pallister is stressing that no member of his government exerted undue pressure on a Crown corporation.

His government has been catching flak for allegedly insisting that insurance brokers handle every online transaction, but Pallister denied any meddling.

"If we were, wouldn't we have resolved it by now in favour of one side?" Pallister asked on Wednesday. "We haven't done that.

"I would say that is compelling evidence we are about having a fair dialogue, not about pre-ordaining any outcome."

Brokers aren't needed: MPI

The Pallister government is accused of forcing the board of Manitoba Public Insurance to turn over all of its online services to insurance agents, despite the corporation arguing the involvement of brokers is an unnecessary expense. 

Internal documents, obtained by the Opposition NDP and made public this week, show MPI thought brokers weren't required for some of customers' simplest interactions with the Crown corporation, but the government repeatedly intervened to ensure brokers would remain involved. 

The decision is expected to cost Manitobans an extra $23 million over five years, above the $84.5 million brokers already receive in compensation. 

Pallister said he couldn't speak to the feelings of the people quoted in the documents, who said the government was prying in business it shouldn't. 

The fact is, MPI sought to displace the brokerage network from all electronic transactions, "which had never been advanced before under 17 years of the NDP government," Pallister said in an interview with CBC News.

"It would have had a devastating effect on hundreds of Manitoba families, who have a great personal stake in the [brokerage] network as it was designed."

Last October, MPI president and CEO Ben Graham wrote to a government official that "MPI does not believe it is appropriate or reasonable to increase broker funding to compensate for unnecessary services currently being provided that do not require the professional expertise of a broker."

The corporation estimated if brokers were removed from the simplest online services, like renewing driver's licences, the impact to the agents would be minimal, a memo said. Based on an estimated 20 per cent adoption rate, broker payment would drop $40,000 — 0.12 per cent of total compensation.

Pallister acknowledged the dispute between MPI and insurance brokers may need mending through conciliation or mediation. 

Cooler heads prevail

Minister of Crown Services Colleen Mayer has encouraged the two sides to work together, Pallister said.

"Our hope has always been, and I know the minister's hope has always been, that reasonable heads will prevail, that people will come together and they'll arrive at a solution."

NDP Leader Wab Kinew wasn't buying that Pallister is only an observer.

Pallister owns shares in an insurance business in Portage la Prairie, Man., which he founded.

"The premier can say what he likes, but I'm sure Manitobans are wise to the fact that he came out of the insurance industry and now he's in office cutting these deals for his insurance broker friends," Kinew said.

Pallister wouldn't answer if he personally thought brokers should have a say in every online transaction.

"I have a personal view there has to be a civil dialogue between the two parties."