Manitoba government eliminates economic group that attracted investment in favour of in-house option – CBC.ca

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.

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.

He said the board was similar to the Tory-run task force designed to cut surgery and diagnostic wait times, which the NDP considers inefficient.

Economic development head defends work

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.  

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