May 19, 2007

Manitoba's timid Conservatives

After a campaign that has been widely panned for its tediousness, Tuesday’s Manitoba election may yet turn out to be a nailbiter. The NDP holds a comfortable lead in the latest poll, but turnout and Conservative strength in rural Manitoba should combine to make it a close race in the end.

Which is to say, this election was far from a sure thing...

After a campaign that has been widely panned for its tediousness, Tuesday’s Manitoba election may yet turn out to be a nailbiter. The NDP holds a comfortable lead in the latest poll, but turnout and Conservative strength in rural Manitoba should combine to make it a close race in the end.

Which is to say, this election was far from a sure thingm, notwithstanding Premier Gary Doer’s vaunted personal popularity. It was to be expected that the NDP would run a safe, front-runner campaign -- promising little, ducking debates, and emphasizing the premier’s golfing-buddy appeal at every turn. What was less predictable was the timidity of the Conservative campaign. 

For there was an audience among Manitobans for a more ambitious, risk-taking message, a mood for change of a kind I cannot recall. Growing up in Winnipeg, I don’t remember anyone getting too vexed about the annual exodus of young people. There was always someone to take their place, it seemed. Middle-of-the-road by temperament, a middle-class province for people in the middle of their careers, Manitoba neither boomed nor busted, its population neither rose nor fell much. It was a good enough place to live and work, and that suited most people just fine.

But lately one sensed a certain anxiety, an unsettled feeling that good enough was no longer good enough. Whether it was the allure of Alberta or the growing mobility that is the calling card of educated youth everywhere, the outmigration became too pronounced to ignore. The do-littlism of the Doer government over its eight years in office, changing nothing and antagonizing no one, might ordinarily encourage a similar sense of self-satisfaction in the public. But its complacency was also a potential vulnerability -- provided the Tories could light a fire under voters, making them feel that change was not only necessary but possible.

But that presupposed a robust, intellectually self-confident Conservative party, unafraid to expose its ideas to public scrutiny, without apology or undue hedging. Such a beast does not exist in this country. While its Manitoba variant, under its bright young leader, Hugh McFadyen, showed some signs of intelligence, even flashes of vision, the overall feeling was one of rather too clever micro-targeting, of a kind that has overtaken the federal party. All too often, the party found itself fighting on its opponents’ grounds, rather than defining the terms of debate.

The tone was set in the first week, with a Tory vow on the issue of privatization of Manitoba Hydro, the province’s electrical utility, that set new standards for craven excess. Perhaps it was too much to expect the party to commit to privatization, given the touchiness surrounding the issue. Perhaps it could have been excused for avoiding the topic, or even ruling it out in the near term. But so spooked were the Tories that they promised, not merely never to privatize Hydro, but to pass legislation making it impossible to do so without the support of every single member of the legislature.

A pledge to cut the provincial sales tax by 1 percentage point was less egregious, yet still in the too-clever-by-half category. As with the GST cut that was its inspiration, it had no discernible impact on the electorate, while claiming a large chunk of revenues that might have been used to fund a broader and deeper tax-cutting campaign. To their credit, the Tories did also promise modest cuts in income taxes, property taxes, and business taxes. But the message was one of incrementalism, rather than boldness. It suggested that what Manitoba needs is a little twiddling of the tax dials, rather than the sort of transformative, growth-oriented tax cuts that would truly change the way the province is perceived, not least by its own citizens.

The saddest part of this cautious trimming is how out of synch it was with the Tories’ own campaign rhetoric, which sounded many of the enterprising, let’s-get-this-province-moving-again themes I have suggested. I think the McFadyen Tories “get it” themselves, and to some extent they have succeeded in establishing themselves as the party of opportunity: the same poll that shows them trailing overall shows them leading among younger voters. But they lack the self-assurance to follow through on the logic of their own position, to back their rhetoric with substance.

And so for every useful nod in the direction of more competition in health care or choice in education, there were gimmicky, focus-group favourites like tax exemptions for bicycles. And, disastrously, there was the promise to “bring back the Jets,” the late lamented NHL franchise. Had the Conservatives been more ambitious themselves, they might have better packaged the idea as part of a more ambitious vision of the province. As it was, it looked desperate, a swing for the fences by a party that was otherwise content to hit singles. 

To convince the public that such things are attainable, the Tories had first to convince themselves. Their speeches said “we can do it,” but their platform said “I doubt it.”

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15 Comments

Anonymous Anonymous:

The NDP holds a comfortable lead in the latest poll, but turnout and Conservative strength in rural Manitoba should combine to make it a close race in the end.

No it won't. The Probe poll puts the Tories on 49% outside the Perimeter - virtually identical to the 48% they got in 1999 and only a 5-point improvement on the dismal 2003 result. In 2003, the same five-point swing from the PCs to the NDP. I think it's pretty safe to say that those voters are now returning to their more natural 'home' in the PC party. And whle we're on the subject, that 5-percent rural swing to the NDP in 2003 netted them a whopping one additional rural seat. In 1999, a nine-point rural swing to the NDP resulted in a staggering two rural seats changing hands.

Why oh why does the punditocracy keep telling us to look outside the Perimeter for seat shifts? Two seats will change hands - at most. This election, like every election in the post-1969 era, is all about the city, and the Tories are going to get their asses handed to them (again) in Winnipeg on Tuesday.

20/5/07 2:24 AM  
Anonymous Steve L.:

ok we have to look at things realistically.

there's certainly a near-comical stigma in Manitoba about privatizing its hydro, but when it comes down to it, whatever benefits that may come with privatizing it just isn't worth the political damage.

how many of the states in the free-market paradise down south doesn't have significant controls on the provision of electricity? the fact of the matter is, some things will naturally gravitate towards government control, even in a free market. not because it's "moral", but because it's actually more economically efficient. the same thing applies to water. which state down south devolves provision of tapwater to private companies?

of course, when it comes to things like health care, private sector solutions are obviously less cumbersome overall. unfortunately, we're not talking about Manitoba's health care. we're talking about its hydro. it's actually one of those things that can be managed decently by the government. whatever improvement that privatization can bring about (if any) would probably be unnoticeable by the public, so it's just not worth it. in fact, i can argue that California's spectacular energy shortages under Gray Davis's watch originated from an energy deregulation bill passed by Davis's gubernational predecessor. but that's another story.

as for taxation, i agree with income and sales tax cuts, but not necessarily property or business tax cuts. income should not be taxed if possible. that much we can agree on. sales taxes should always be tailored towards specific goods or services (like cigarettes, sleeping pills, gasoline, etc.). across-the-board sales taxes, like the GST and PST, are just excuses for spending for the sake of spending. the property tax is important for many things, such as internalizing market externalities (e.g. social detriments from casinos, pollution from industrial facilities, etc.), and putting the brakes on land price speculation (i obviously don't think Manitoba has to worry about land price speculation being a problem, but this is one of the fundamental purposes of the property tax). unless there is concrete evidence that property taxes are so high that it's severely hampering economic growth, it shouldn't be tampered with for no other reason than just-because. finally, while small businesses, like income, shouldn't be taxed if possible, larger businesses should always be taxed more than their smaller competitors to better avoid market monopolies or oligopolies.

and before anybody asks: no i don't think the capital gains tax should be eliminated. there. i publicly disagreed with Preston Manning and i'm still a Conservative voter. now we get on with life.

most importantly, though, economic growth can be more complicated than it seems. has any particular governor of California been credited with the rise of the Silicon Valley? no? well there you go. there was the creation of the Stanford Industrial Park, the aggressive municipal expansion of San Jose under the mayoral tenure of A. P. Hamman, and other factors that attracted venture capital like flies to rotten fruit (forgive the analogy - Silicon Valley certain isn't rotten fruit). the state government of California? not much.

there's only so much that the Manitoban provincial government can do to engineer a head start for its economy. the rest will have to depend on things the Premier has no control over. i guess it would be slightly better under a Conservative government than an NDP one, but given my understanding of Manitoba, revving up its economy will be a mammoth task for any Premier.

20/5/07 6:48 AM  
Blogger google:

Steve L: I agree that we have to take a look at things realistically, but that would preclude most of your comments, particularly your favoured vs disfavoured taxes.

Business taxes for the most part should not be preferred over personal income taxes. They are ultimately a poor, indirect cousin to consumption taxes, aimed at highly-mobile targets. Business resource taxes are the worst of all, leading only to increased high-grading.

Consumption taxes are best when almost universally applied, rather than cherry-picking, as you would have us do. Suffice to say that the two of us, let alone 30 million citizens, could not agree on which consumption to tax.

But you saved your most backwards comments for property taxes. Insofar as property taxes exceed fee-for-service, they are a tax on capital, and as such, one of the worst forms of taxation. Furthermore, they tend to be based on 'market value', which does not correlate well with service-consumption nor income. So property taxes are neither progressive nor good at matching the relative cost of externalities, as you would have them do.

Property taxes are also not a disincentive to speculation, but instead encourage the quick-flip, given that they tax capital on marginal valuation, pro-rated to time the asset is held.
Other investments are taxed on realized gains, not current marginal value (which is not the same as actual market value). To discourage speculation, property taxes would have to be based on gains and somehow inversely proportional to time the asset is held.

20/5/07 11:15 AM  
Anonymous Cory Schreyer:

This election campaign, like the one in 2003, was SO BORING. I wonder if this will be the case a decade from now when all of the Baby Boomers start retiring and find that their health care system can't support their needs; whichever party is in power in that election will be in trouble.

There are very few election signs for the candidates along the roads. I don't know if this is due to a lack of interest or a lack of funds or environmental reasons, but it sure is different from the 1980s and 1990s when it seemed like everyone had signs on their lawns.

20/5/07 11:36 AM  
Anonymous Steve L.:

i've never been the most anti-tax person. i'm sure if i disseminated more of my views, you'll be even angrier, "Google". suffice to say you (and others who may disagree with me - i'm sure there are more) are entitled to your opinions.

20/5/07 5:23 PM  
Blogger canuckistanian:

AC, you have been far too charitable in your assessment of the young mcfayden. what an embarassment, what a joke, what a rube, a total buffoon! anyone who voted, much less was in the innner circle, of the current mayor needs to be kept as far away from power as possible. we don't need two morons running manitoba.

21/5/07 3:37 PM  
Anonymous Anonymous:

we're talking about its hydro. it's actually one of those things that can be managed decently by the government.

Ontario Hydro was decently managed into billions of dollars of debt, a bunch of white-elephant (government designed) nuclear reactors, and a fat, overpaid bureaucracy. Don't know much about Manitoba Hydro but it's probably a similar boondoggle, in proportion to its size. In the USA the government-owned TVA is the biggest federal government ripoff and flat-out fiscal disaster since before New Orleans was under sea level.

People who want to expand government can always find supposed reasons why the free market failed, but in every case you will find governmental interference screwing up entrepreneurs and consumers. California's "deregulation" is a classic example. The market in which the brownouts occurred was anything but free. See The Great Power-Shortage Myth.

On my street I see natural gas and telecommunications services provided by private companies with very little regulation and with no help whatsoever from government (other than charging enormous fees for licenses and rights-of-way and then pretending to enforce "standards" to protect consumers from non-existent problems). There is no reason why water, sewer and electricity work better when run by the government - there are only lots of groundless suppositions about the alleged difficulty and danger in allowing entrepreneurs and consumers to decide for themselves what services will be consumed and at what price.

22/5/07 10:21 PM  
Anonymous Steve L.:

well, Doer got his third majority. i guess what we're talking about here will be mostly irrelevant.

nevertheless, i'm glad to see my flippant comments triggering discourse that is perhaps more involved than what we're normally used to. let me address some things.

the Mises article that you cited, Anonymous 10:21 PM, apparently stated that environmentalists prevented the building of new power plants. that was actually not the main reason. the energy deregulation bill i was talking about, AB1890, was signed in 1996, and it prevented utilities from initiating new long-term contracts to bring in new generating capacity (all subsequent increases in energy capacity up until the 2001 energy crisis came from buying electricity from the spot market). so, they couldn't have built new plants even if the environmentalists weren't there. that was what i was saying. perhaps what we're arguing are not so different, but do note that this was done in the name of deregulation. also, let's not forget that energy speculators like Enron were able to charge the Californian state electricity prices at up to 1600 times the traditional rates. this is also one of the reasons why it's not always a good thing for businesses to grow too big. hence why i prefer larger businesses to be taxed higher than smaller businesses (which shouldn't be taxed, if possible).

anyway, as it turns out, Manitoba Hydro is running its own debt just like Ontario Hydro. but the real question here is whether privatization will improve its current state. now the US isn't without its privately run power plants (they're just not as prevalent as publicly operated ones), or why else would the fictional town of Springfield in The Simpsons feature a nuclear power plant owned by none other than Mr. Burns? but do private power plants in the US necessarily have it better than publicly owned ones in the US? if that were the case, they would've dominated the electricity sector by now.

oh and since you brought up telecommunication services, let me point you to the municipal wi-fi question. in most municipal wi-fi debates, you will not find anyone claiming that the public solution (or, in Philadelphia's case, it was technically a mixed public-private partnership between the municipal government of Philadelphia and Earthlink, but in the public psyche it was "public") costs more than the private sector solution, which is quite unlike most health care debates. Verizon, on their part, only offers the issue of "fairness" as their argument. why is this? many things come into play, perhaps too much to be discussed in a mere comment on some guy's column-blog, but in short, some things are cheaper when publicly administered.

23/5/07 5:47 AM  
Anonymous Tiny Tewiliger:

Four more years of high marginal tax rates will surely vault Manitoba ahead of Alberta in economic growth.

Manitoba's 3 great natural resources:

(1) The Elderly

(2) The Civil Service

(3) Crown Corporations

oh, I almost forgot the Zoo.

23/5/07 6:51 PM  
Anonymous Mister Burns:

Excellent.

23/5/07 6:51 PM  
Anonymous Anonymous:

It was the women who made sure that Gary Doers quiet, compassionate and competent government stayed in power.
Incidentally why isn't competence given any respect? Massive tax reductions or any other "big deal" schemes wouldn't create oil reserves in Manitoba.
Dave Schellenberg

13/6/07 9:13 PM  
Blogger muthu:

This post has been removed by the author.

11/11/08 1:53 PM  
Anonymous Anonymous:

I suggest you READ the site in it's entirety before you spout off about government and ancestors.
it's very doable, just read over the numbers.
-------------------
Muthu

manitoba drug rehab

11/11/08 1:57 PM  
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