Improving the climate for Manitoba businesses

How do we measure up?

• Manitoba ranks 3rd best on tax competitiveness for the corporate income tax, small business tax, small business threshold, sales tax, gas tax and diesel tax. And we have committed to eliminate the capital tax in 2010.



• Out of 154 Canadian cities, MoneySense Magazine ranked three Manitoba cities in its top 20 list for overall prosperity - Winnipeg, Brandon and Thompson, more than any province except Ontario. All three also improved in rankings in 2008 compared to 2007. Winnipeg went from 13th to 7th, Brandon from 19th to 18th, and Thompson from 25th to 19th.



• Independent 2008 KPMG studies show:


• Winnipeg has the 20th lowest Total Effect Tax Rate of 102 cities in 10 countries. (Competitive Alternatives, KPMG’s Guide to International Business Location, 28/07/08)



• Winnipeg has the 3rd lowest effective Corporate Income Tax Rate out of 102 cities. (Competitive Alternatives, KPMG’s Guide to International Business Location, 28/07/08)



• Winnipeg ranks 3rd in comparative business costs among mid-sized Midwestern cities behind Oklahoma City and McAllen Texas, but ahead of Edmonton and Calgary. (KPMG, Competitive Alternatives, 27/03/08)



• Winnipeg’s most cost-effective industries were in the R&D and Software sectors (Biotechnology, Clinical trials, Electronic Product Testing, Advanced software and Content development). (KPMG, Competitive Alternatives, 27/03/08)

Lower business taxes

• By 2010 Manitoba will become the first small business tax-free zone in Canada. Thanks to the NDP Manitoba now boasts the lowest small business tax rate in the country — 2%. When we came to power in 1999 it was 8%, the second highest in the country. It will take a still further drop to 1% in January 2009, giving Manitoba small businesses an additional $9.7 million annually in tax breaks.



• The NDP is also phasing out the general Corporation Capital Tax completely by 2011. The phase out began this year with a drop from 0.5% to 0.4%. The tax has already been eliminated entirely for manufacturing and processing corporations as of July this year to help them adjust to the challenges posed by the strong Canadian dollar.



• The Doer government has taken the general Corporation Income Tax rate down from 17% in 1999 to 13%. There will be a further reduction in July 2009 to 12%.



• We’re increasing the payroll tax threshold by one-quarter. Fewer than 5% of employers currently pay this tax. One-third of these will benefit from the higher threshold.



• We’ve enhanced the very successful Film and Video Production Tax Credit by introducing a 5% bonus for films with a Manitoba producer and doubling the Frequent Filming bonus to 10%.



• We’ve introduced a new 30% provincial non-refundable income tax credit for individuals and corporations who invest directly in emerging community-based enterprises that require more capital than community partnerships can provide.

Investing in a skilled workforce

• Since 1999 there has been a 72% increase in apprenticeships - from 3,700 to 6,400. We made a commitment to work with employers to create 4,000 new apprentices over 4 years. Budget 2008 increased funding to provide for 1,100 new apprenticeships seats at the colleges beginning in September 2008.



• Red River College’s full-time enrollment has increased by 58 per cent, to 10,433 students from 6,595 since 1999.



• Total provincial operating funding to our colleges has doubled since 1999.



• Through our College Expansion Initiative, we’ve funded over 80 new or expanded cutting-edge college training programs in key economic sectors such as health, aerospace, digital multi-media and information technology.



• Budget 2008 provided $18 million for training, employment support, and skills upgrading in partnership with the federal government under the new Canada-Manitoba Labour Market Agreement - a new program aimed at people who have difficulty entering the labour market.



• We’re building a new $45 million trades centre at Assiniboine Community College that will double apprenticeship and training opportunities to over 1,400 students.



• We’re developing a new and expanded $15 million Heavy Equipment Transportation Centre at Red River College. Since 2001 enrollment in heavy-equipment transportation courses has more than doubled. The new building will allow the college to expand capacity by 60% to 368 students in 2009-10. The expansion will support Manitoba’s growing green-energy economy by conducting applied research and advanced training in leading-edge technologies such as biodiesel, ethanol, hydrogen and electric hybrids, hydrogen fuel cells, and emissions and cold-weather testing.



• We’re investing in innovative ways of bringing more Manitobans in to the trades. Two mobile labs worth $3 million will enable Red River College to bring trades training to rural and northern communities.



• The Doer government introduced a 60% income tax rebate on tuition fees for students who have graduated from any post-secondary program, whether a university, college or apprenticeship program, and have chosen to live in Manitoba.

Cutting-edge services for Manitoba businesses

• BizCoach, an arm’s length non-profit organization, accelerates business learning by linking entrepreneurs with experienced business mentors to assist them with matters such as financial management, business startup, business growth, sales, human resource management, financial management and business networking.



• Business Gateway Website provides one-stop shopping for entrepreneurs with questions on every subject from startup to growth to succession planning.



• Bizpal, a new online business permit and licence service that saves time spent on paperwork and helps entrepreneurs start up faster, and gives ready access to information on permits and licences.



• TAXcess was launched by our government at the request of business owners to provide an on-line file and pay system for PST and other provincial taxes.

From research to business innovation

Learning from regions that have been successful at commercializing research and innovation, the government is working to foster greater collaboration and integration within the community.

• The Innovation Council, made up of business, research and community leaders will advise on the social and economic benefits of innovation and on the commercialization of research.



• Our Integrated Technology Commercialization Strategy will help build a critical mass of leading high-tech companies capable of competing in global markets.



• Our Capital Markets Strategy will address financing, infrastructure and investor awareness measures.

Figures current as of October, 2008

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