The day before Manitoba’s latest budget was rolled out, Don Dewar was grinning and alluding to the good news it would hold for farmers.
The president of Keystone Agricultural Producers was confident farmers would get some tax relief.
The farm lobby group had worked hard for about a year convincing the government to remove provincial sales tax from new farm buildings.
But when Dewar emerged from the gallery of the legislature last week, he was underwhelmed.
“Did I miss something?” he asked.
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There were tax breaks in Manitoba’s fourth balanced budget, but none specifically for farmers.
Manitobans will pay about $60 million less in provincial income taxes next year as the personal income tax rate is shaved from 52 to 50 percent.
The government also announced it will reduce payroll taxes and make more businesses exempt from paying corporation capital tax.
It even removed provincial sales tax from customized computer software to help businesses prepare for the year 2000 computer crisis, and to spur job growth in that industry.
“A lot of people could find good news in there, and maybe as a Manitoban, it’s a bit of a good news budget,” said Dewar.
“But as an agriculture sector, there’s just nothing for us.”
Farmers in Alberta and Saskatchewan don’t pay provincial tax on new farm buildings, explained Dewar. KAP wanted Manitoba farmers to get the same treatment, especially with the massive livestock expansion much touted by the provincial government.
“Our governments talk about us being competitive in agriculture with the world, and I think we can be, but our government isn’t competing with other governments,” said Dewar.
About six months ago, KAP felt the government was ready to announce some tax relief for farmers who put up new buildings in 1997, said Dewar.
High expectations
When it didn’t come through then, Dewar was sure the government would make it a budget announcement.
Agriculture minister Harry Enns said he agrees with KAP and tried hard to get the tax removed. But his fellow cabinet ministers found it hard to believe removing the tax would spur more building when more than $60 million went into hog barns in the past year, said Enns.
“It’s difficult to argue we’re impeding hog barn expansion because of the tax.
“I’m happy that I managed to hang on to most of the money that I’ve got, because of the crowding and elbowing around the cabinet table when you get between the minister of health, the minister of education, the minister of justice,” said Enns.
