Steve Lambert, The Canadian Press

The Manitoba government said Thursday it will not appeal a court ruling that found the province was wrong to claw back hundreds of millions of dollars in federal benefit payments to kids in child welfare.

The government also appeared open to calls for it to return the money, which Indigenous leaders have said totalled more than $300 million.

"That is certainly on the table for discussion," Families Minister Rochelle Squires said.

"We certainly respect the ruling and we also respect and acknowledge that amends need to be made."

The federal and Manitoba governments announced a combined $147 million Wednesday to support a rail line through northern Manitoba with a history of service disruptions and delays.

The money comes on top of $157 million pledged by Ottawa since 2018 to change the ownership of the Hudson Bay Railway and the Port of Churchill, and to make repairs and upgrades.

"It's a sign that it's a very ambitious project, it's difficult terrain, and progress has been made," Dan Vandal, federal minister of northern affairs, said of the ongoing funding.

Tucked away in a sparsely populated stretch of prairie along the world's longest undefended border, the International Peace Garden has, for 90 years, quietly celebrated the friendship between Canada and the United States.

The openness between the two countries is clear here.

A small creek marks the border, and people walk freely over it and back again as they stroll among gardens, ponds and monuments. It's quiet enough to hear the gentle buzzing of bees among the flowers, some of which are laid out in the form of the Maple Leaf or the Stars and Stripes.

Manitoba could have a new statutory holiday to mark the National Day for Truth and Reconciliation by September, Premier Heather Stefanson says.

"Certainly, I would like to move on it and I just want to make sure we go through a respectful consultation process," Stefanson said in an interview this week.

"I don't want to see it as (just) a holiday. This is about a remembrance of truth and reconciliation."

A statue of Queen Victoria that was toppled and beheaded by protesters last year outside the Manitoba legislature is beyond repair and will not be restored.

"It's gone through a lengthy assessment process and is not repairable," Justice Minister Kelvin Goertzen said in an interview.

Trying to replicate it is also out of the question, Goertzen said, because it would cost at least $500,000.

"I know it will be disappointing to many people — it won't be recast — but that's the decision."

The Manitoba government said Wednesday it will provide $2.5 million to Indigenous groups to help find and commemorate unmarked graves at former residential schools.

The money, initially promised last year, is to be shared between groups including the Assembly of Manitoba Chiefs, the Manitoba Métis Federation and the Manitoba Inuit Association. 

The Indigenous groups, not the government, will decide how to spend the money.

Manitoba's natural resources minister stepped down from cabinet Monday and said he would resign his legislature seat within two weeks.

Scott Fielding, also minister responsible for liquor and lotteries, is going to pursue opportunities in the private sector, a government news release said. It did not provide details.

"Public service is extremely important but also means making great sacrifices to family life," Fielding wrote in a social media post.

The Manitoba government is open to the idea of a wide-ranging review of its taxes to remain competitive with other provinces, Premier Heather Stefanson said Thursday.

"We're always looking at better ways to deliver services to Manitobans and being competitive with other provinces is absolutely key to that," Stefanson said during a question-and-answer session with the Manitoba Chambers of Commerce.

Work has begun on a long-promised expansion of the St. Boniface Hospital's emergency room.

Manitoba Premier Heather Stefanson says the $141-million project will triple the size of the Winnipeg hospital's emergency department and improve patient flow.

The expansion was promised by former premier Brian Pallister in the 2019 provincial election and had been recommended by a group that reviewed hospital wait times in 2017.

The head of the Winnipeg Regional Health Authority has been warning of increasing wait times in ERs.

One of the landmark stores formerly run by the Hudson's Bay Co. is about to undergo a major transformation in the name of reconciliation with Indigenous people.

The company's six-storey, 655,000-square-foot building in downtown Winnipeg is being given to the Southern Chiefs Organization, which represents 34 First Nations communities in Manitoba.

The site will be transformed to include almost 300 affordable housing units, a museum, an art gallery and restaurants.