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December 4, 2008 PREMIER COMMITS TO NEW MANITOBA APPRENTICESHIP TAX CREDIT– – –$3-million Targeted Tax Credit To Help Address Labour, Skills Shortage: Doer In his annual State of the Province address, Premier Gary Doer committed today to introduce a new Manitoba tax credit that will target labour shortages and help fill a training gap in Manitoba’s apprenticeship program.
“In Manitoba, we have listened to business and labour, both of whom have identified a gap in our apprenticeship training program,” said Doer. “Currently, a federal tax credit applies only to the first two levels of what can be up to a five-level apprenticeship training program, while a provincial credit encourages employers to hire apprenticeship graduates.
“A gap exists between these two tax credits and today we are filling this gap by introducing a new, targeted tax credit that will be available through levels three, four and five of an apprentice’s training program. This will ensure a tax credit is in place at the beginning, middle and end of apprenticeship training programs.”
Many professions and trades, like electricians, plumbers and carpenters, require trainees to complete four levels of training as an apprentice before being awarded certification to work in these trades. A few require as many as five levels. Manitoba’s new tax credit, along with the existing federal tax credit for levels one and two, will mean an incentive to retain apprentices will be in place through all levels of an apprenticeship and will help encourage employers to retain apprentices until their training is complete.
The tax credit is estimated to be worth $3 million a year to employers and will come into effect Jan. 1.
“Ensuring more apprentices complete their required training today will mean more journeypeople are available tomorrow to build, wire and plumb our houses and workplaces,” said Doer.
The premier made this commitment as part of his annual State of the Province address which highlighted the importance of moving Manitoba forward in the face of economic uncertainty by building for the future and focusing on the fundamentals.
“As a province, we have two choices when responding to the current economic challenges,” said Doer. “We can retreat or we can keep moving forward.
“I believe now is not a time to retreat from our balanced policies or from our long-term growth strategy. We need to continue building a strong foundation that focuses on the fundamentals and this in turn will help ensure a strong future for our province.”
The premier noted today’s announcement supports other tax measures intended to strengthen the province’s competitiveness and build CentrePort, Manitoba’s inland port, including the commitment to reduce the aviation fuel tax for cargo flights from 3.2 cents per litre to 1.5 cents per litre and expanding the tax exemption for international flights to include all cargo flights to and from the United States.
The premier added that today’s commitment complements other provincial initiatives to expand the skills base of the Manitoba economy including:
· continuing investment in the purchase of technical training spaces for apprentices including
$2.8 million announced in Budget 2008; · committing to modernize Manitoba’s apprenticeship system by implementing the recommendations of the Apprenticeship Futures Commission,
· establishing training and apprenticeship targets for major capital projects funded by the province, and
· ensuring the apprenticeship system is more flexible and responsive to changing economic and labour market dynamics.
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