The annual pre-budget survey of business people in Steinbach, Hanover and Niverville by MLA Kelvin Goertzen shows an increase in concern with regard to the provincial economy; however, the intent of most businesses is to keep current 2008 staff levels for 2009, amidst the struggling economy.
“This is the first year since I have been doing the survey that I have seen such a heightened level of concern about the provincial economy,” said Goertzen. “It’s likely a combination of what we are seeing in the news and what is being felt in individual businesses.”
Goertzen has been doing the survey since being elected in 2003. This year’s survey found that:
• 80% of businesses who responded felt that the global financial crisis would hurt the Manitoban economy in the months ahead.
• Less than 50% of respondents felt that the Manitoban economy was doing well at this point in time.
• 64% of local businesses intend to keep their current staff levels for 2009, while 18% intend to hire more staff and 15% foresee a reduction in staff. 3% of businesses were unsure.
• 83% feel that the provincial government should balance its budget every year.
• 60% feel that free-trade has a positive effect on the economy while 19% feel that it has a negative effect on the economy. The remainder of respondents was unsure.
• 74% said a strong agricultural sector was very important to the success of their business.
• When asked which tax they felt would be most important to lower, the highest response was Personal Income Tax with the second highest being a reduction in Property Tax.
Goertzen noted that while there was considerable concern about the provincial economy, the majority of businesses, about 60%, felt that the local economy in Steinbach, Hanover and Niverville is performing well. While that number has been lower in past surveys much of the expressed concern was with the farming industry.
“The survey indicates that there is more confidence in the local economy than the provincial economy as a whole where concern continues to grow. Residents of our region are naturally optimistic which is part of our success. The responses show that optimism is mixed in with a bit more caution than we have seen in past years,” said Goertzen.
Goertzen uses the annual responses as part of a broader consultation process in preparation of the upcoming provincial budget. He expects to survey individual residents in these three areas for their views on the economy early in the new year.
