The Manitoba New Democrats have accused the Conservative government of using an external review of Manitoba Public Insurance (MPI) as political cover for potential rate hikes, according to a report by the Winnipeg Free Press.
During a question period late last week, MPI critic MLA Matt Wiebe called on the government to reassure ratepayers that they won’t see increased costs in the wake of the review.
“Instead of taking accountability, the government is now trying to buy time with a nine-month review, a review that just so happens to be complete after election day,” Wiebe said. “It’s clear the PCs desperately want to buy time and to shift blame.”
The NDP’s comments come after Kelvin Goertzen, the minister responsible for MPI, ordered an external review of the Crown corporation amid concerns about rising costs associated with its technology modernization initiative.
Referred to as Project Nova, the initiative had seen its budget increase from $86 million to $290 million since it was first revealed in 2019.
A statement from Goertzen said the review is set to be completed on or before December 31.
Goertzen also directed MPI to “not propose any changes to rates for service or materially change its operations” while the review is ongoing.
“As I have stated in the past, the Manitoba government is reluctant to interfere in the general operations of Crown corporations,” he said. “However, a publicly held corporation is answerable to Manitobans for its service, expenditures, and operations.”
MPI is expected to file its 2024 general rate application with the Public Utilities Board (PUB) this summer, according to the Winnipeg Free Press.
Responding to the NDP’s comments on behalf of Goertzen, Economic Development Minister Jeff Wharton said that the opposition party was offered plenty of time to improve MPI’s information technology during the 17 years that it was in government.
“We are taking the initiative to ensure that we bring MPI into the 21st century,” he said. “Our government will definitely not put ratepayers at risk.”
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