The Manitoba government is forcing another tax on cattle producers by insisting that a new beef levy be mandatory and nonrefundable, says the president of the Manitoba Cattle Producers Association.
The province wants a $2 per head beef levy collected to support the development of more cattle slaughter capacity in Manitoba. The government has pledged it will match producer contributions, with a review of the initiative to take place in three years.
However, the MCPA last week appealed to the province to make the levy refundable.
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The association agrees more slaughter capacity is needed, said MCPA president Ken Crockatt, but producers should have the right to choose where they invest their money.
A refundable levy would help to ensure accountability in how the money collected through the beef levy is spent, Crockatt said.
A nonrefundable levy amounts to “another tax being shoved down” the throats of producers, he said.
“We have repeatedly asked the provincial government to make its new beef levy refundable,” said Crockatt in an April 19 News release
news. “Those requests have fallen on deaf ears.”
Manitoba agriculture minister Rosann Wowchuk confirmed April 20 that the beef levy will be mandatory and nonrefundable, despite the request of the MCPA.
Wowchuk said she talked with producers across the province who want more slaughter capacity. A levy was among the suggestions she heard as a way for all cattle producers to contribute and for all to share in the benefits.
“If you really want to increase slaughter capacity, if you really believe in your industry, there has to be some commitment,” she said last week.
“I’ve listened to producers and I’m giving producers an opportunity to be part of solving the slaughter capacity problem that we have in this province.”
Last month Wowchuk announced the formation of the Manitoba Cattle Enhancement Council. The council will manage the funds collected through the new beef levy and from the province’s matching contributions.
“It is the council that will make the final decision on how they will use the funds,” said the minister.
“They will make the decision on which facilities they will take an equity position in.”
The province pledged it would provide the first $1 million of its matching contribution immediately. The province also committed to advancing the council $10 million in repayable start-up financing.
