WINNIPEG: The Canadian Taxpayers Federation (CTF) praised the provincial government today for its refusal to introduce new alcohol, land and restaurant taxes for municipalities.

"The Premier deserves a big pat on the back for refusing to give municipalities new taxing powers," said CTF Manitoba director Colin Craig "Manitobans pay enough in taxes. Creating a new tax during the current economic slowdown would be detrimental to families and the economy."

The CTF noted that there are plenty of initiatives that municipalities could pursue to reduce their costs and raise revenue through legitimate means. Some examples include:

Expenditure side:

• Partner for service delivery with non-profit organizations and the private sector;
• Bring salaries in line with the private sector;
• Develop P3's for capital projects;
• Increase usage of volunteers to reduce labour costs; and
• Focus on core services (i.e. the old saying - "pipes, pavement and policing").

Revenue side:

• Sell non-core assets (i.e. golf courses, convention centres);
• Sell surplus land (gain revenue from sale of the land & annual property taxes);
• Raise revenue through corporate sponsorships;
• Partner with the private sector to deliver services - i.e. coffee shops in public libraries (see University of Manitoba for effective partnership); and
• Convert service funding to user fees where appropriate (while not simply introducing cash grabs).

Craig also noted that on top of revenues raised through property taxes, municipalities will receive over $280 million in grants and tax sharing from the provincial government in 2008/09 alone.

"It is encouraging to see that the notion of a new 1% municipal sales tax has all but been rejected. If municipalities spent as much time figuring out ways to spend existing dollars more efficiently as they do asking for more dollars, we'd all be better off."