Former Manitoba Premier Howard Pawley spoke to a public hearing of the Commission on Quality Public Services and Tax Fairness in Windsor and reflected on his term in office and his government’s dedication to a strong public sector. The following is an edited excerpt of his presentation:
I want to keep my comments short because I was not intended to be a part of today’s program.
I think what you are doing today is extremely important. Especially in these times when there is a distinct shift toward the right.
For a few minutes I’m going to talk about my own experience, as Premier of Manitoba, from 1981 to 1988. You will recall that 1981 was the beginning of the era of Thatcher and of Reagan. From all the governments in Canada then, whether Conservative or Liberal, there was a definite shift to the right and to anti-labour.
Now I just want to mention for a moment that in 1981 we did the unbelievable. We were prepared to take Lyon Conservative government and their constant repetition of the phrase ‘acute retracted restraint.’ It was an attempt to cut back on many areas. That government had only been elected in 1977. We had succeeded in defeating that government in 1981.
In contrast to the professional advisors we said we are prepared to do battle on the economic front and the jobs front. The consequences of that, I’ll share with you this morning, was that it was the only time in Manitoba history where a government was defeated after only one term in office. No where else in the history of Manitoba had that ever occurred.
We saw the need to move in an opposite direction. We were prepared to increase corporate tax affecting the wealthier people within the community and taxes affecting the wealthier people within the community. Contrary to much antagonism from many, we did not believe in a regressive tax system. We thought we should move toward a fairer tax system.
We said, ‘No,’ what we’re going to do is ensure that the less well-off get their fair share. They are the ones who buy groceries at the local store. They are part of the community. What they earn they spend within the community. Unlike the more well-to-do who will spend their money on foreign bank accounts and foreign travel and other areas. We were going to ensure that as much of that money as possible was going to stay in the province.
We launched a jobs fund. And I must say, in a positive way, we were able to work out an agreement with the labour movement that within 24 hours, the labour agreement provided that for a six-month period there would be a deliberate attempt to create more jobs in the province. It wasn’t, as was the Rae government’s attempt in Ontario in the ‘90s, to fight the deficit. It was part of our stimulus program in the province.
There was, during that period, economic growth. The Globe and Mail wrote an editorial that specifically singled out Manitoba as a province of success. It was a province that was creating more jobs and economic growth during this period. This demonstrated the recognition that we had a different policy and a different approach.
In 1986 we went to the polls. There was antagonism towards us. But when people went to the polls they said, ‘We’re as mad as hell at the Pawley government on the French language question … but we don’t trust any other party on the economic or jobs front. This was contrary to the best political and economic advisers who in 1981said, ‘Don’t touch this; don’t touch that.’
And I think if I can make this comment, I think there is a tendency for us to give the right the credibility that exceeds all reasonableness today that somehow they are the credible party when it comes to restraint. They are not. We should be taking them on directly.
In Manitoba, Manitobans remain proud of their public sector.
One other item I want to mention to you is how under the Schreyer government in 1970 we brought in public auto insurance. It was a vicious battle. I was under police protection. Ten thousand people one time demonstrated their opposition. But do you know what the case is today in Manitoba? Liberals and Conservatives pay tribute to public auto insurance. They would never undo public auto insurance.
This demonstrates the courage to carry on the public sector where the need is greatest.
As a community we have to take another look at the direction in which we are going … the strategies we pursue and the battles we take on. They are difficult. But they are worthwhile.
