Manitoba’s government has cut an economic development group, calling it an unnecessary bureaucracy, similar to the surgical and diagnostic task force it also disbanded.
However, the man who led the group that helped to bring hundreds of millions of dollars in investment to the province insists they made important headway in growing Manitoba’s economy.
The economic development board, created by the former Progressive Conservative government in early 2022, was dedicated to “fostering strong economic growth, attracting investment, promoting trade and creating high-quality jobs for Manitobans,” according to a news release at the time.
But Jamie Moses, the government minister now responsible for economic development, investment and trade, characterizes the board instead as “highly politicized” and claims it worked “outside the normal confines and scope” of the province’s economic development department.
“What we’ve done is we’ve taken the projects that the board is working on, folded them into our current department so that they can actually get the proper review, the proper analysis that they were not getting before,” Moses said in an interview.
Moses didn’t provide examples of where the board went astray in pursuing economic opportunities, but he said the NDP government found no proof the board received treasury board approval to rent a downtown Winnipeg office space. Rent and other operating costs totalled nearly $300,000 a year, according to a document provided by the government.
An initiative of Heather Stefanson’s government was the formation of an economic development board that supported the launch of the Manitoba First Fund, which helped generate more than $100 million worth of private sector interest. (Randall McKenzie/CBC)
The province said two staff positions were eliminated when the board was disbanded and the remaining employees were absorbed into the economic development department.
Since those staff are continuing to work on the same projects, Moses argued the elimination of the board won’t impede the economic progress of Manitoba.
“I want to be clear that we’ve reached out to industry partners on this and we’ve opened up the lines of communication, so that work of growing our economy is going to continue and it’s going to continue in a way that is collaborative, that is working with Manitobans and it’s going to set us up for success into our future for today and tomorrow,” Moses said.
As the economic development board secretariat for 20 months, Michael Swistun said he worked “very closely” with the department.
The allegation they weren’t collaborating “would be like saying that the organization of the treasury board is somehow not accountable or outside government, but that doesn’t make any sense.”
In addition to having a dedicated staff, the board also established a committee of cabinet. Swistun said the committee was invaluable because large-scale economic opportunities needed to consult with multiple government departments.
“We could respond to these proponents efficiently rather than in silos, because a lot of times the complaint that we’re hearing from the business community that it’s difficult to approach on large-scale projects because you’re dealing with so many different departments.”
Swistun said he wouldn’t prejudge the NDP’s approach to pursuing economic activities — which will include the formation of a Premier’s Business and Jobs Council, bringing together leaders in business, skilled trades, labour and other areas — “but I think there’s merit to having a subcommittee of cabinet that’s focused on economic development.”
The economic development board helped secure funding to rebuild the rail line to Churchill, licensing and permits for a $900-million solar glass manufacturing facility in Selkirk and direct flights from Winnipeg to L.A. and Atlanta, Swistun said in a LinkedIn post.
Swistun was informed he lost his job only a few hours after the NDP government was sworn into office on Oct. 18, he said.
Jeff Wharton, the former economic development minister, said the board and its secretariat served as point people for businesses inside and outside Manitoba looking to grow.
The minister of the department can help, but demands on their time are immense, said the PC’s critic for the file.
“We need to go out and find business and that’s exactly what the board secretariat was charged to do.”
During question period on Friday, the PCs took jabs at the NDP over the board’s elimination by claiming the premier was disbanding the economic horse that pulls the social cart, a play on one of Wab Kinew’s favourite catchphrases.
Kinew responded that it was another layer of bureaucracy that duplicated the work of Economic Development Winnipeg, which the province already funds.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
