Pallister targets PST on home insurance in his first announcement of re-election campaign

Hey there, time traveller!
This article was published 07/07/2019 (1954 days ago), so information in it may no longer be current.

After a week of defending his record with the insurance industry, Premier Brian Pallister’s first campaign announcement for the upcoming election dealt with the same industry that has provided ammunition for his political opponents.

The PCs announced Monday they would eliminate the provincial sales tax on home insurance, saving each Manitoba household seven per cent on their bill. The savings would amount to about $70 per home each year, according to the party.

NDP leader Wab Kinew noted the PC promise comes after Pallister has repeatedly defended himself against accusations of protecting insurance brokers against a push to let customers do routine transactions with Manitoba Public Insurance directly online, which could reduce commissions for brokers.

“On this specific announcement that Pallister’s made, I do find it a little odd that a party leader whose been under fire for his close ties to the insurance industry starts his campaign on the issue of insurance,” Kinew said Monday.

Documents obtained by the NDP show the Pallister government pressured MPI last fall to extend what the Crown corporation felt was a rich contract for private insurance brokers by two years. The deal also calls for annual upward adjustments for inflation.

The ability to purchase a driver’s licence or renew an insurance policy online presents potential savings for MPI — and possible losses for private insurance brokers, depending on how the deal is structured.

The Insurance Brokers Association of Manitoba has demanded total broker control over online sales, a position MPI rejects.

Pallister hinted Monday that other types of insurance — such as travel or life insurance — could see their PST costs voided, too, as the Tories would “start taking the PST off the most essential things for Manitoba families.”

“We’ll be announcing other items as we move through the pre-election period, whether in the writ or prior. And as we do that, I’m sure Manitobans will be pleased to know they have a government that’s serious about helping make life better for them,” he said during a visit to a show home in Bridgwater Trails.

“That money that some would describe as being government money actually belongs to the people who work for it in the first place. I would argue that we’re just doing the right thing here and leaving more of that hard-earned money in the hands of the people who work for it.”

Liberal leader Dougald Lamont voiced concerns about the proposed “tiny little cut.” He questioned why it was the PCs’ first campaign announcement when it is “hardly a major platform plank.”

“They’re making a tiny little step when we all know there are some really big things that have to be dealt with in Manitoba, whether it’s health care, education or infrastructure. People are clamouring for much larger investments because, I think a lot of Manitobans are really struggling,” Lamont said.

“This is not going to make a big difference for those people who are really struggling to choose between things like medication or rent.”

Kinew called eliminating the sales tax on home insurance an “interesting proposal.” He emphasized affordability, including for first-time home buyers, will be an issue that’s top of mind in his party’s campaign.

“Yes, let’s find ways to make life cheaper for Manitobans.”

Meantime, Winnipeg Chamber of Commerce president Loren Remillard was glad to see a proposed tax reduction, but believes all political parties need to think bigger. He called for a “fundamental, system-wide review of Manitoba taxation.”

“While we welcome any reduction in taxation that will assist with our competitive position, we want to expand that again to the larger tax system,” Remillard said, pointing out the last time such a comprehensive review occurred was in 1999.

“Our economy has fundamentally changed in those 20 years. We want to make sure our tax system reflects those changes and allows us to be competitive with other jurisdictions in Canada and elsewhere.”

jessica.botelho@freepress.mb.ca

Twitter: @_jessbu