We have had three government budgets released recently and their impact on the housing industry and those who own houses has been mixed, if not confusing.
The federal budget acknowledged the role of new home construction and pledged investments in research to ensure Canada remained a leader in energy efficiency. There appears to be a commitment to long-term low-interest rates and a strategic long-term infrastructure plan although concern was expressed about escalating government imposed costs. Primary among these is a GST application that has remained unchanged since 1991.
Of course, in Manitoba, there is considerable concern about immigration reform and training for skilled jobs. Immigration has been a primary driver of Manitoba's economy and new home market. Any reduction in numbers or skills would be seen as detrimental.
Most notably in the City of Winnipeg budget was a 3.5 per cent property tax increase. It is an across-the-board tax, much like last year's frontage levy, shared by all presumably to pay for services and infrastructure to be used by all.
The recently released provincial budget has raised a number of questions and can be construed as good news or bad news, depending on how things play out. Last week, I was speaking to a friend who lives in an older part of town and his emotions ranged from excitement to uncertainty to concern.
Although concerned that he would be paying 2.5 cents a litre more for gas and $35 more in vehicle registration, he was excited to hear the money generated would be going towards infrastructure improvement. Given the crumbling nature of the roads and other infrastructure in and around his neighbourhood, he was elated to hear that upwards of $100 million could be generated.
However, that's when the questions started arising. Would this money be available for use in his area now or were there other priority areas such as flood relief to be addressed first?
The city and province seem to disagree whether this is new and additional money or a replacement for funds that are now being transferred to other areas of need. This was the uncertainty of which he spoke. Who is correct in their interpretation of the budget?
My friend in River Heights doesn't care. He just knows that he is paying more money to all three levels of government who said that fixing infrastructure was a top priority. He just wants his roads fixed.
Mike Moore is president of the Manitoba Home Builders' Association.
