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This article was published 8/8/2019 (414 days ago), so information in it may no longer be current.

Liberal Leader Dougald Lamont says a government he leads would create a business development bank to support Manitoba entrepreneurs.

Surrounded by Liberal candidates at wind-swept Portage and Main on Thursday, Lamont estimated the initiative would cost $78 million in the first year.

He said a lack of investment capital is an impediment to economic growth and job creation in the province.

The creation of a publicly owned Manitoba Business Development Bank would be the cornerstone of a Liberal government's economic growth strategy, he said.

"What attracts people, what gets people to stay in Manitoba is opportunity because the most important thing in the world is a good job," Lamont said.

A publicly owned bank that would not only provide loans, but invest in local companies over a 10-15 year time frame, is a better growth strategy than offering tax incentives to outside firms to invest in Manitoba, he said.

The Liberals estimate that of the $78 million spent in the first year of the bank's operation, $70 million would be allocated to loans and equity investments in firms while $8 million would be devoted to start-up costs and administration.

He said the soon-to-be vacated Bank of Montreal building at Portage and Main "would be a pretty awesome place" for the bank's headquarters. (The Bank of Montreal has announced it will move its Manitoba headquarters from the heritage building to a new space next spring.)

Lamont foresees government investment of "at least $50 million" a year in the new bank until it become self-sustaining "in the medium term," a period of eight to 10 years.

The bank would invest in "growth-focused" Manitoba businesses, including start-ups, co-ops, social enterprises and farms. It would provide investments anywhere in size from a few thousand dollars to $10 million.

Finance Minister Scott Fielding, speaking on behalf of the Progressive Conservative party, called the idea "a bit risky for taxpayers."

Manitoba already leads the nation in private-sector investment, he said, as the PCs have focussed on "getting the fundamentals of government right" by lowering taxes and cutting red tape.

larry.kusch@freepress.mb.ca