Kerry McCluskey
Northern News Services

IQALUIT (May 24/99) - As the cabinet and ordinary members of the Nunavut Legislative Assembly continue to hammer out the details of the budget they have to explain to their constituents, members of Nunavut's business community seem to be warming to the idea of the conservative spending plan.

Handed down on May 14 by Finance Minister Kelvin Ng, the $610 million in available revenue will be spent cautiously among the 11 government departments, and on capital expenditures, with an additional $10 million in a contingency reserve put aside for unforeseen expenses.

While many social programs will remain waiting in the wings for at least another year, the conservative figures tabled by Ng come in balanced and according to Nunavut's business community, that's good news.

Kenn Harper, the vice-president of Urbco Inc., a major shareholder of infrastructure in Nunavut's capital, said the tough numbers were what the territory needed it's first year out of the gate.

"It's a conservative and conscientious budget and exactly what Nunavut needs in its early days," Harper said.

With business interests in real estate, retail stores and hotels, the long-time Nunavut business figure said Ng's work will help Nunavut prosper in the long run.

"Over the long-term, the impact on business people in Nunavut will be positive because it sets the tone that the Nunavut government will be cautious in its spending. This will help avoid unpleasant surprises down the road," Harper said.

His business colleague and the vice- president of the Baffin Regional Chamber of Commerce, Steven Roberts, agreed with Harper's predictions, but said the GN must go back to the federal government and discuss the future of the formula financing grant.

"We urge them to continue their dialogue with the federal government in the areas that need to be addressed," Roberts said, citing the need for extra dollars in the areas of economic development and public housing.

Roberts said the BRCC recognized the government was working with serious financial constraints and that while they had wanted to see more dollars handed out, they knew Ng had taken the debt-free route.

"It's a responsible budget. There's not much any of us could have to say there," said Roberts."We appreciate the constraints that the MLAs and Cabinet have at the moment."

But while he was understanding of the stringent nature of Ng's premier budget, Roberts said it raised important questions about the fiscal feasibility of the GN's idea of decentralization.

"It raises serious concerns if there is enough money to do what Footprints 1 and 2 suggested could be done with the decentralized model...one has to question the plan."

Fred Hunt however, the chief executive officer of the Nunasi Corporation, said that if the decentralized model was axed, it would devastate many Nunavut communities.

"Severe repercussions would happen if they ever decided to abandon it," Hunt said.

Nunasi, one of four shareholders in the Nunavut Construction Corporation, has been involved in developing commercial and residential infrastructure in 11 of Nunavut's communities. Currently in the third year of a four-year project, Hunt questioned what would happen to the millions of dollars worth of buildings and expected salaries if the plan was cancelled.

"If the government is discussing the model, I hope they take all the social and economic impacts in the communities into consideration."

Wilf Wilcox, a director for Nunasi, said the GN couldn't just close their eyes and hope the cost of implementing decentralization would go away. He said that if necessary, the federal government should help the GN follow through on their obligations to Nunavummiut.

"The feds might have to come to the plate and help things along," Wilcox said.

Also a business owner in Cambridge Bay, Wilcox said the balanced budget was good, but that involving the private sector in infrastructure development only ended up costing the government more money in the end. He advised caution in using the much-celebrated P3 initiatives and said he hoped the government would come through with more money for capital projects in their next fiscal year.

"Most business people were prepared for a transitional year, but our expectation for next year is that it will be business as usual. The government has to make sure they are the driver of activity."