Richard Gleeson
Northern News Services

Yellowknife ( Mar 03/00) - There may be tax cuts, but Inuvik Boot Lake MLA Floyd Roland says Monday's federal budget doesn't go far enough to help people in the North.

Of particular concern was the lack of relief from the federal government for low income Northerners.

Citing the $7 cost of three litres of milk and the 95 cents a litre prices at the gas pumps in Inuvik, Roland said the $400 tax savings for a low- income family of four projected in Monday's federal budget is not nearly enough to keep up with increases in the cost of living in the North.

Overall, Northern reaction to the budget was mixed.

Western Arctic Member of Parliament Ethel Blondin-Andrew saw good and bad news for the territories in the budget.

"It's a little bit of this and a little bit of that, but basically it's not bad," said Blondin-Andrew.

The three-term MP said income tax deduction increases proposed in the budget will cost the territorial government about $3 million in annual revenues. About 80 per cent of that will be made up for by increases in other funding.

Territorial Finance Minister Joe Handley estimated that after adjustments to the formula financing grant are taken into consideration, the tax loss will total about $600,000 per year.

Handley said that though tax reductions in the budget will benefit Northern wage earners and businesses, the federal government disappointed on other fronts.

"It does not provide us with the money we had asked for and hoped to see, primarily in the areas of health and social services. While there is a provision in the budget for some infrastructure money, it is not adequate to meet our infrastructure needs, particularly in transportation."

Handley said a one-time injection of $3.4 million for health and education services in the North, "is not enough to meet the increasing costs of providing these services."

Yellowknife Great Slave MLA Bill Braden told the legislative assembly the budget highlighted for him the differences in the financial footing of the federal government compared to the NWT.

Noting the flexibility the Liberal government had to create new programs, enhance existing ones, reduce taxes, he said these are options territorial politicians "can only dream of at this time."

Even Handley said it will be a few days before the government has a clear picture of the net benefit or loss the federal budget will have on the government.

Budget highlights

- federal personal income tax to be reduced an average of 15 per cent over next five years.

- reduction will amount to 18 per cent for low and middle income earners.

- typical family of four living on a single income of $35,000 would pay no federal income taxes after reductions come into effect.

- taxes to be indexed to inflation (ie. incomes that rise with inflation will not be subject to higher tax rate).

- Canadian Health and Social Transfer increased by $2.5 billion -- NWT share: $3.4 million.

- projected debt charges: $42 billion.