Spending is easy but saving takes work: Gerrard

WINNIPEG – In a lead up to the federal and provincial budgets, Manitoba Liberal Leader Dr. Jon Gerrard today said that a forward thinking and balanced approach must be used as guiding principles, with investments in physical and human infrastructure to plan for the economy of the future, investments in preventative and improved health care to reduce inflated costs and changes to ensure that low-income earners are not over taxed.

“To achieve optimum results budgets should address where governments will spend and where governments will save,” Dr. Gerrard said. “At the same time, any proposed tax cuts should be very carefully focused in order to bring economic benefits without burdening government’s ability to invest to bring us through the economic downturn.”

In times of economic downturn, physical infrastructure including rapid transit, roads, bridges, buildings, housing, water management systems and other physical investments are vital to ensure there are jobs for people. Equally as important, is the need for investment in human infrastructure including major investments in training and education with a focus on cooperative education, where individuals can gain experience while furthering their education.

“Improvements in sewage treatment in Winnipeg and other municipalities can help ensure clean waterways and better recreation and tourism opportunities,” Dr. Gerrard said. “Innovation is also critical because the economy of the future is based on clean energy transportation, energy efficient buildings and renewable energy products and services.”

On the other hand, in times of economic restraint, governments must also provide a clear and wise plan to save dollars. For example, there are areas of inflated spending where expenditures may increase drastically if no action is taken e.g. the increased incidence of diabetes in Manitoba.

“Diabetes has reached epidemic proportions in Manitoba and urgent action is needed to treat this seriously as an epidemic,” Dr. Gerrard said. “To reduce the ballooning expenditures on health care we must work quickly to implement measures to reverse the current surge in diabetes.”

Gerrard also said that it makes good economic sense to reduce the effective marginal tax rate on the poorest in Manitoba to a rate less than those who are well off because the high effective marginal tax rate takes away the incentive for people to work and earn income, even part time work.

“It is time to reduce this huge tax on our poorest citizens to encourage those who are poorest to work, at least part time, and help contribute to the economy,” Dr. Gerrard said. “This NDP tax on the poor should be the first tax to be reduced in the upcoming budget.”

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