Kerry McCluskey
Northern News Services

Iqaluit (Mar 27/00) - With Greenlandic sealskin shoes on his feet and the customary rose in his lapel, Finance Minister Kelvin Ng handed down what's been billed as a good news budget to his colleagues in the Nunavut Legislative Assembly last Thursday afternoon.

Symbolizing the GN's desire to increase trade relations with their Greenlandic neighbours, Ng's shoes -- a gift from Premier Paul Okalik -- also represented the territory's drive to become less dependent on the federal government.

But with more than $582 million of the total $639 million in revenue still derived from federal transfers, the days of autonomy are far off. But that's not to say that a more independent territory isn't a goal for Ng and his colleagues.

By increasing transfers and gaining more control over Nunavut's resources, Ng said he hoped the territory would eventually be able to contribute more than 10 per cent in source revenues to the territory's total pot of money.

"We do have a commitment from (federal Finance) Minister (Paul) Martin. He did agree to take a look (at our books) after our first year of operation on exactly where our fiscal situation is ... and go from there," said Ng.

Martin's review -- and the impending re-negotiation of the formula financing agreement as set out in the contract signed last year with the Office of the Interim Commissioner -- will likely take place over the next few years.

And while the first made-in-Nunavut financial plan held few surprises for MLAs or Nunavummiut, the plum of the package was undoubtedly an estimated $34.1 million surplus.

Primarily a result of money saved because hiring is not yet complete, Ng said $15.3 million of the surplus would be spent while the rest would be banked as a hedge against future expenditures.

"I think that would be fair to say (that we're being conservative). I would rather be in the situation where we're going to spend extra funds than where we're going to reduce because we've overspent," said Ng.

But even though spending is up in many of the GN's departments, and the total revenues have increased by almost five per cent, not everyone sees the 2000-2001 fiscal plan with such optimistic eyes.

"I need to take a day or two to digest it, but I'm a little concerned about the spread of dollars across the board," said Kevin O'Brien, the MLA for Arviat. "It never goes far enough."

He added however, that increased spending on education and social housing was a step many MLAs wanted to see. O'Brien also said he was ready to face the gruelling process of debating the document over the next six weeks the legislature is scheduled to sit.

"That's part of the process -- you have to scrutinize it, analyze it and make sure that it's fair and meets the needs of the Nunavut people in a fair manner," he said.

Education Minister James Arvaluk, whose department received more than $150 million for expenditures, also said he would liked to have received more money, but could begin to make long-term plans with his allotment.

"The government has completely committed to taking education as a priority for the long-term," said Arvaluk.

"All in all, we've done well. (We're) going to do even more next year. That's the goal. This will allow the department of education to do a 20-year capital plan, rather than reacting to what has not been built or funded by the GNWT."