Premier Brian Pallister says his Progressive Conservative government has made good progress on reining in spending since being elected last April. In a year-end interview, Pallister clearly stated this remains the top priority. He recapped some of the steps already taken by his administration.

"We've lowered the size of government at the top, starting there, by about 30%. And now, we're working on the mid-management piece which has been really big compared to all the other provinces. We're looking to review it and reduce positions there as well. We'll keep working this coming year on reducing the size of government at the top because we think that's the way to get ourselves to more sustainable, better government."

Pallister says they have also started lowering taxes and are working on a plan to reduce red tape for agriculture and small businesses in an effort to help them become more profitable. He adds they believe there should be more money on the kitchen tables of Manitobans and in small businesses which should eventually lead to the creation of more jobs.

Going forward, Pallister says it will take a complete, cooperative effort, including union leadership, to improve Manitoba's financial situation.

"As a former labour rep, raised by a mother who was a 40-plus year union member, I believe the unions have the right to their perspectives being heard and I most certainly want to make sure that we're respectful of that right. In the new year, I need everybody to work together because we've got some major challenges we've got to face up to. We just had a credit-rating knockdown twice in the last 18 months. I need our labour leaders to be real leaders and be part of the solution and not just part of the problem."

Pallister adds financial stresses will become even bigger in 2017 with federal government planning cutbacks in health care spending combined with the spectre of rising interest rates which, he says, will make is even more difficult to service the province's large debt from the previous NDP government.