Bracing for the second blow
Budget cuts are coming, but is there any fat left to trim?

by Richard Gleeson
Northern News Services

NNSL (Jan 27/97) - To achieve its goal of balancing its books, the government will be announcing about $100 million in spending cuts today when it releases the 1997-98 budget.

The cuts come on top of $80 million made last year, leaving many to wonder, what is left to give?

The government's mandate for the cost-cutting comes in the form of the Deficit Elimination Act, which came into effect at the start of this fiscal year. The act is straightforward on the target for division: the GNWT's books will be balanced.

But the consensus that brought the act into force has weakened as its effects have been felt.

There has been a steady stream of protests from ordinary members of the legislature as the impacts of the numbers hit home: slashing of the seniors' fuel subsidy program, deferring of capital programs such as hospitals and airports, privatization of government housing, cutbacks and closings to drug and alcohol treatment centres.

"There's going to be dramatic expenditure cuts -- that's a given," said Jake Ootes, chairman of the ordinary members caucus, which will be scrutinizing the budget, line by line, over the next few weeks. "The question is, where are they going to be done and in what fashion?"

Wherever those cuts come, the resistance to them will be expressed, first and foremost, by ordinary MLAs looking out for the interests of their ridings.

Ootes, speaking as a member rather than caucus chairman, cautioned that Yellowknife is in for a round of cuts apart from those in the government budget.

"When it comes time for division, who will get hit?" he asked. "Yellowknife, and nobody else. In another year the transfers from Yellowknife will be starting."

Ootes said that between downsizing and division, Yellowknife stands to lose a total of 500 high-paying government jobs.

One place where cuts could be made, said Ootes, is in the Business Incentive Policy. The government spends $25 million to $30 million each year on the program, which is designed to promote the development of Northern businesses.

Ootes said some projects being funded under the program are already established, and that savings of up to $10 million could be realized by cutting back.

Transposed on the interests of each electoral riding are a number of special interest groups that have already taken financial hits.

The NWT Seniors Society suffered its share of hits, but its president said the organization remains appreciative of the funding they do get.

"We hope they remember us and be as generous as they have been," said Esther Braden.

Braden noted the government is already funding a 1-800 seniors information line and covers the travel expenses of the NWT Seniors Advisory Council, composed of board representatives from all regions."

"We hope there are no changes, but if there are, we hope we are consulted first," she added.