It is expected that interest rates will climb another ½ percent before the end of the year. To many Manitobans, this is an almost unnoticeable change. Some Manitobans will pay more interest on their debt, and some Manitobans, who have the good fortune of having savings, will receive slightly more interest on their investments. Either way, the ½ percent increase in interest rates will not change their lifestyles.

For the Provincial Government, however, a ½ percent increase in interest rates makes a profound difference. According to the 2006 Manitoba Budget the Total Debt of the Province is projected to climb to $20.362 Billion. There will be a $618 Million increase to the debt this year alone. How much is $20.362 Billion? If you stacked $100 Bills on top of each other, the stack would be 300kms. (180 miles) high! That’s the amount of money that the Province pays interest on. The interest paid on the massive debt is $1.281 Billion a year. This interest amounts to an incredible $3 ½ Million a day!

We pay $3 ½ Million a day on the Province’s debt. What could this interest pay for? For less than 3 days interest we could rebuild P.R. #304. For less than 3 months interest, every Provincial Road and Provincial Trunk Highway in Lac du Bonnet Constituency could be rebuilt!

What is the effect of a ½ percent increase in interest rates to the Province? Because of the massive provincial debt, it means that Manitobans will be paying an extra $100 Million every year in interest! Clearly the Province should be concerned about this increase in interest rates. Instead of adding to the Total Debt, in these days of surpluses, we should be paying down our Debt! Instead of paying down our Debt, the NDP is adding $618 Million to the debt, this year alone!