Division costs balloon
Over $110 million shortfall in federal funding predicted by Doug Ashbury
NNSL (Oct 10/97) - Getting Nunavut's public service working is going to cost more than was previously expected, a lot more. Setting up a second public service in the North now carries a price tag of at least $216 million, according to the Creation of Two New Territories Transaction Plan, tabled Wednesday in the legislative assembly. The GNWT has identified $116 million in costs on top of the $150 million Ottawa has set aside for creation of Nunavut. The $116 million is to create Nunavut's public service, with costs for recruiting staff, furnishing offices and regional decentralization. The $150 million goes to other transitional costs, such as paying the interim commissioner's salary and costs, 1999 election costs, community infrastructure. "While this ($150 million) funding was and is extremely important in moving the process forward, it is important to point out that the federal government had to allocate this funding without the detailed information that we now have at hand," Finance Minister John Todd said. "(Indian and Northern Affairs minister Jane Stewart) has agreed to (meet with) all parties to assess the transition costs identified by the GNWT," he said. There is no provision in the GNWT's current budget to pick up the difference, Todd said. Todd made the comments Wednesday in the legislature. The funding shortfall is just one of many flags in the report. Todd called the report one of the most significant documents produced in the move toward the April 1, 1999 division of the NWT. The report will serve as advice for the interim commissioner and the Nunavut Tunngavik Incorporated, a plan to action for the GNWT and a costing for the federal government. "Part of the message is that we are very short of time," minister responsible for Nunavut transition planning Goo Arlooktoo said. Minister responsible for western transition planning Charles Dent said he will table a report Tuesday which will focus on the western transitional costs related to division. Wednesday's report, shows Nunavut will not be fully autonomous April 1, 1999 and that new territory will likely have to enter into contracts with the new western territorial government to ensure delivery of service. Todd said any suggestion that this is a "make-work project for civil servants" is "bloody nonsense." He added that all Northerners will recognize the need for give and take. Contracts must be identified by the end of next month to provide assurances to existing staff. There is uncertainty among GNWT staff about which positions will be axed. They may opt to find work elsewhere, taking their experience with them.
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