Campaign rebates saved, PST cut coming as Manitoba government, NDP reach compromise on budget bill

A compromise at the 11th hourhas saved thegovernment budget bill that will cut the provincial sales tax in Manitoba to seven per cent.

The NDPreached adeal with the Progressive Conservatives on Wednesday to allow the bill to go through, while keeping arebate on campaign expenses that the Manitoba government wantedto eliminate.

Theofficial Opposition partyhas the option to delay up to four pieces of legislation untilthe next legislative session. The NDP threatened to hold up the budget bill because of the proposal to scrapthe rebate an ideathe NDPslammed as "undemocratic."

The amended billnow includes a 25 per cent rebate for parties and candidates who get at least five per cent of the vote in an election.

Under previous legislation, 50 per cent of campaign expenses could be returned, but only if the candidate or party garnered at least 10 per cent of the vote.

NDP Leader Wab Kinewpreviously argued cutting the rebate woulddiscouragelower-income people from running for office over fears they'd carry significant debt.

Hethinks the government accepted the amendment becauseit realized more Manitobans should run for office, not fewer.

"We took it seriously that [cutting the rebate]would prevent some peoplefrom being able to put their name on the ballot. Wegot a win," saidKinew, adding the deal came together behind closed doors at the "11th hour."

'I don't get my own way all the time': Pallister

Premier Brian Pallister agreed to the compromise to ensure his PST cut isbacked by legislation.

Delaying the budget bill could have also delayed the PST cut in the event of an early election call, since all legislation that hasn't passed is cancelled once the writ is dropped.

"In about a month my wife and I will be celebrating our 30th anniversary.I don't get my own way all the time," the premiersaid.

"Sometimes if you want to build a relationship and we try to work with the opposition parties sometimes you have to give a little bit."

Thebill is now slated to pass by June3.

The NDP will hold over four billsuntil the next legislative session. Those includethe Labour Relations Amendment Act and theLiquor, Gaming and Cannabis Control Amendment Act (Cannabis Social Responsibility Fee).

On Tuesday, the NDP voted in favour ofthe budget bill during its second reading, allowing it to go to the committee stage and giving them a chance to argue the public subsidy for campaign expenses was worth saving.

Pallister previously suggested he might go to the polls early if the NDPdelayed the budget bill even though he earlier saidthe cut would be made even if thebill was delayed.

He acknowledged on Tuesdaythe PST cut would have takeneffectwithout the bill being granted royal assent,but it wouldn't bepermanent without legislation.

The bill's passage is expected to hurt the NDP and Liberals, which have relied heavily on the campaign expense subsidy.

The Tories are much better off financially without the subsidy than the opposition parties. The partyreceivedover $2 million in donations last year more than triple the amount raised by the NDP.

Liberal Leader Dougald Lamont said the process of passing the budget bill has beena "game of chicken" between the government and NDP.

The Tories wantthe legislation in place in case they call an election far earlier than the scheduled date of Oct. 6, 2020, he said.

"[Pallister has] been trying to come up with a good reason, a good phony reason, to call an election and to put his opponents offside," he said, "and the PST isn't going to be it."

Lamontspeculated the election would take place in July.