Manitoba liquor, lottery commissions to merge

Manitoba's Crown-owned liquor and lottery commissions will merge into one entity as the province announced sweeping cost-saving measures in its 2012 budget Tuesday.

New taxes and fees will raise almost $200 million in new revenue for the government. Expanding the seven per cent provincial sales tax onto items that were not previously taxed, such as various insurance products, haircuts over $50, spa treatments and tattoos will raise $100 million in new tax revenue, experts observed.

"It is a budget of restraint for a government at the early stage in the election cycle," said Chris Adams, vice-president of Probe Research.

Consumers will pay, he said, noting increased fees and a widening of the PST will raise $200 million in new revenue.

The move to merge the two Crown corporations is part of a range of cost-cutting measures that are expected to trim $128 million in expenditures in the coming year.

Manitoba also will freeze or slash spending in 10 departments, including aboriginal affairs, agriculture, housing and immigration.

It will reduce the number of health authorities from 11 to five, plans to reduce the number of boards and agencies, and will extend a reduction in cabinet ministers' pay by 20 per cent.

Manitoba expects to generate $75 million by selling some government properties, buildings and other assets. The cuts amount toan approximate four per cent overall reduction in core government spending of $11.7 billion.

Conversely, Manitoba will raise a variety of fees to boost revenue.

These include increasing fees for child registry checks and higher fees for issuing birth, death, and marriage certificates. Currently, land title registration costs $41. It will increase to $80 and raise an extra $3.5 million this year.

Finance Minister Stan Struthers said the combination of budget cuts and higher fees mean the government has managed to avoid increases to the sales tax, personal or corporate tax rates.

He said there would be some jobs lost in the merger of the Crown agencies and the reduction in the number of health authorities, but those will be back-office positions and executive management.

"It's not going to be front-line people who lose their jobs," said Struthers.