Darrell Greer
Northern News Services

Rankin Inlet (Feb 28/00) - A $30- to $40-million surplus is being projected for the Nunavut government's first fiscal budget.

The announcement came from Finance Minister Kelvin Ng (left) during the legislative assembly's session in Rankin Inlet this past week.

Ng said initial radio reports implying MLAs were angry and frustrated by the announcement were inaccurate.

"There had been discussion about the surplus at a regular caucus meeting prior to coming to Rankin, so this certainly wasn't the first time members heard the actual numbers," said Ng.

Although Ng wouldn't say how much of the expected surplus is already targeted for specific areas, he did say the government has to deal with the fiscal situation of the regional health boards.

It is expected the boards will be swimming in $20 million worth of red ink, including the opening deficits of April 1, 1999.

"I see the surplus as being a bit separate. If we weren't in a surplus situation, we'd still have to deal with the deficits of the health boards."

Ng says MLA input into how any surplus will be spent is part of the budget development process for the 2000-2001 budget.

"Prior to our coming here, we conducted preliminary standing committee reviews.

"We'll have final standing committee reviews before the budget goes to the House."

Ng says he doesn't agree with the contention that the projected figures shouldn't have been released until the final budget is completed next month.

"I gave a half-year fiscal update in the House and, although I didn't go out and actively do a third-quarter one, it is something governments do on a regular basis.

"There are plans for us to be more proactive next year in getting that information out as regularly as possible."

Ng says there were no ulterior motives behind his announcement.

"It wasn't a strategic move or anything along those lines.

"I was simply answering a question on the current fiscal situation of the Nunavut government."

Arviat MLA Kevin O'Brien says there is concern over how the surplus is spent.

He says Ng should come back to the standing committees and discuss pressing needs such as housing and health.

"The members and the standing committees have to have some direct input, not the minister simply coming back and telling them where the money is going," says O'Brien.

"There should still be enough left over to address other concerns after paying down the health board debt."

O'Brien says earlier surplus estimates were grossly understated, adversely affecting MLA input during the budget process and standing committee discussions.

He says members were, however, made aware of the increase before Ng announced them publicly.

"My concern is the projected surplus given to us five or six months ago wasn't even close, so we weren't dealing with an accurate amount in our discussions.

"We want input into where this money is going and ensure project criteria is clear to everybody."