Tax credits, police helicopter noted in throne speech

A police helicopter got the thumbs up Monday, but a harmonized sales tax was ruled outas theManitoba government launched the fall session of the legislative assembly.

The speech from the throne, read by Lt.-Gov. Philip Lee, outlined plans for education, jobs, health andimproved public safety. It was the inaugural throne speech forPremier Greg Selinger, who became the leader of the governing NDP in October.

After the speech was read, Selinger saidthe province's economy is forecast to shrink by 0.2 per cent by the end of 2009. But despite that, Manitoba is still projected to have the best economic performance in Canada, he said.

Selinger expects to draw on the province's fiscal-stabilization fund, also known as the rainy-day fund, in the next year to cover expenses, but it's not clear yet by how much.

One of these expenses will be a new helicopter for the Winnipeg Police Service, Selinger announced. However, he did not reveal how the government will help pay for it.

Keeping helicopter could cost $1M

Police Chief Keith McCaskill has estimated the helicopter would cost between $2 million and $3 million. That includes an infrared device to detect heat sources on the ground.

Operating the helicopter would cost about $1 million annually, McCaskill has said.

Earlier this month, Winnipeg Mayor Sam Katz told CBC News the city is willing to pay for a new helicopter if the province covers the operating costs.

Selinger said on Monday that he needs to have some discussions with the police service before making any financial commitment.

The NDP government is also putting cash into fixing schools and into a polar bear research and Arctic exhibit at Assiniboine Park Zoo, Selinger said. The government willinvest $310 million in new public schools and needed renovations to existing facilities.

Other initiatives include a tax credit for women receiving fertility treatments and new legislation preventing gangs from bringing armoured vehicles into Manitoba.

No HST

One thing Selinger has ruled out for his government is a harmonized sales tax. Manitobans would pay $400 million more a year in taxes if the PST and GST were merged into an HST, Selinger said.

A harmonized tax would be collected on such untaxed items as books and children's clothing, which are exempt from the PST.

Federal Finance Minister Jim Flaherty has been encouraging HST holdouts Manitoba, Saskatchewan and Prince Edward Island to adopt the HST. He has said he is prepared to cut cheques to those provinces to sign on to tax harmonization.

The legislative session will lastabout two weeks and will see the introduction of a number of bills before members start their Christmas break in the second week of December, government house leader Bill Blaikie announced last week.

Selinger was elected as NDP leader at a convention Oct. 17. He succeeded former Premier Gary Doer, who announced Aug. 27 that he was stepping down to become Canada's ambassador to the United States.