The Canadian Federation of Independent Business has mixed emotions regarding the provincial government's announcements this week. Provincial Affairs Director Elliot Sims says there were some encouraging aspects included in the Throne Speech, including a review of government spending, and joining the New West Partnership. He also notes a commitment to reduce red tape will be beneficial to small businesses. 

CFIB Provincial Affairs Director Elliot Sims

"What we know in Manitoba is that businesses spend $1.2 billion every year, in terms of time and money, to comply with government regulations. About a third of that cost is really of no value, it's bad customer service from government, submitting the same information twice, it's really red tape or regulations that aren't having an impact on consumer safety or the quality of our environmental health."

However, he notes the government's plans also included a slightly concerning aspect. Sims feels the commitment to investigate carbon pricing as a way to combat climate change needs to be done right, or else there could be a significant negative impact on small businesses.

"That was something that wasn't really discussed in the election campaign, and we'll be watching closely to see exactly what they mean by a price on carbon. Our members across the country have various viewpoints on that, depending on what style of pricing mechanism is used. Some are far more harmful to the economy than others, so we'll be waiting eagerly to hear what the government has in mind."

That's not the only concern coming out of the legislature this week. Finance Minister Cameron Friesen presented the province's fiscal update on Wednesday, indicating Manitoba's deficit would be more than $1 billion.

"To see that deficit go to one billion means there must have been a significant increase in spending in the last number of months of the previous government, and that has us concerned. It means there's going to have to be a lot more attention paid to get the government's costs under control, and ensure tax payers are getting value for their money."

Overall while Sims says they're encouraged by what they're seeing, they'd like to see the new government do more to ensure competitive market conditions for small businesses.