Warning Sign: Manitoba Consumers & Businesses are Filing Insolvency Proposals More than Any Other Province
December 1, 2020
TREATY ONE TERRITORY, WINNIPEG, MB - Statistics Canada's report on year-over-year insolvencies and insolvency proposals show that Manitoba's consumers and businesses were in big trouble in the third quarter of 2020 - even before Code Red shutdowns.
Manitoba was a clear outlier, with insolvency proposals being far higher in Manitoba than any other province. Manitoba Liberal Leader Dougald Lamont, MLA for St. Boniface, said it's a sign that Manitoba's economy is fragile, and that the Pallister government's programs aren't doing enough to help.
Insolvency proposals are a way for people and businesses who are struggling to pay their bills to reorganize.
Manitoba was:
- The only province where consumer insolvency proposals went up, by 11.3%. In every other province, the number of proposals dropped.
- The highest percentage of business insolvency proposals, which increased in Manitoba by 125%. Newfoundland & Labrador and BC were the only other provinces where proposals went up. In all other provinces, the number was down.
- Corporate insolvency proposals are up by 500% in Manitoba. Only two other provinces saw increases - BC by 12.5% and Alberta by 12.5%. They were down in every other province.
"This is a very serious sign, because Manitobans and Manitoba businesses are clearly in deeper trouble than any other province, even before the Code Red Shutdowns," said Lamont. "There are far too many Manitobans - families, businesses and organizations - who are falling through gaps the PCs have refused to fill. The PCs have to step up, because it is clear that whatever they are doing, it is not working."
Manitoba Liberals have called for better income supports for individuals and revenue replacement for small business - especially in the form of grants, not loans, which only make debt worse.
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