MPI, Liquor and Lotteries to trim 15%, Manitoba premier says

It's time for Manitoba's Crown corporations to start trimming at the top, Premier Brian Pallister says.

"We have set specific management reduction targets of 15 per cent from each organization as a starting point," Pallister said on Monday, referencing Manitoba Liquor and Lotteries and Manitoba Public Insurance.

Last Friday, Manitoba Hydro announced it would seek a workforce reduction of 900 staff, starting with offering severance packages to employees. Hydro added the number of executive positions would be reduced by 30 per cent and three vice-presidents had already been let go.

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"I compliment the people at Hydro for facing the challenge they must face. We all have to face it here and our Crown corporations shouldn't be an exception," Pallister said.

Pallister said "monopoly delivery organizations tend to get fatter at the top" and the previous NDP government didn't address it.

"We are addressing it now," he said.

After the trimming, the premier said they will look at data, research from consulting firm KPMG and recommendations from their performance advisory team for what else the Crowns will need to do.

"We are getting some cross-provincial comparisons done so we will have a better sense of how we look in our Crowns versus others around the country Crowns and private sector models because we need to not just do better than all the other Crowns in Canada, we want to do better than the private sector delivery companies as well."

Last October, MPI reported a net loss of $30.9 million for the six months of its fiscal year ending Aug. 31. The month before, Manitoba Liquor and Lotteries scrapped a $75-million plan to move its headquarters to downtown Winnipeg, saying it would not be a responsible use of public money.

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