Terry Halifax
Northern News Services

Hay River (Oct 01/01) - A cool reception recently greeted the government harbingers of the proposed road toll in Hay River.

Finance Minister (left) Joe Handley and Transportation Minister Vince Steen met with Hay River town council recently to discuss the proposed highway improvement fund and highway freight toll legislation. - Terry Halifax/NNSL photo

Finance Minister Joe Handley and Transportation Minister Vince Steen met with Hay River town council and made a presentation on the controversial Bills 9 and 10.

Bill 9 details a $148 million plan to improve and upgrade highways in the NWT, while Bill 10 provides the cash by charging a permit fee for commercial vehicles travelling NWT highways.

Handley said no one wants new taxes, but the legislation will spur economic development, without cutting social programs.

"We had a choice to make; with the growing demand on programs we'd either have to cut back and gradually see ourselves grow broke or recognizing the opportunities in front of us," Handley said.

Handley said the government is already witnessing an increased burden on the social safety net through the recent boom and he says those costs will only increase.

"Economic activity and growth always bring extra costs to us as a government," he said. "The more development we encourage, the greater our costs are and the greater the burden becomes on our social programs."

Steen said the increased traffic on the highways has caused a rapid deterioration of the roads, particularly on the Ingraham Trail and Highway 3 from Rae to Yellowknife.

The new plan would force the completion of Highway 3 in four years rather than the current 10 years schedule, dividing the remaining 50 kilometres of road into two 25 kilometres of contracts.

Other improvements would see chip sealing the road to Fort Smith, a $10 million upgrade to the Dempster Highway and a further $20 million for maintenance on that road.

Handley said the GNWT hopes to ink a deal on resource revenue sharing and devolution of powers with the feds, but the roads can't wait.

"Just out of Diavik mine construction alone, the federal government stands to make over $500 million," Handley said. "The federal government is doing very well on development in the North."

"We're just asking that they invest some of that money back here," he added. "If they can't, we can't just sit and wait for it or we will just see our infrastructure fall around us."

Coun. Peter Maher asked if there will be a sunset clause written into the legislation.

"After the five years, is that it or are you going to continue it on forever," Maher asked.

Handley answered that there is no specific date attached to the law, he sees the road toll "as a temporary measure, until we have resource revenue-sharing."

Handley also said because the toll revenues are for a dedicated purpose they cannot be clawed back by the federal government under the formula financing agreement.

Shawn Carter, vice- president of Carter Industries, said his company currently does a lot of business trucking into the oil and gas fields of Northern Alberta, but this legislation will kill that business.

"The reason we are there is because we are competitive with the people out of High Level," Carter said adding that under the proposed toll he'd have to pay $145 each way for the trip. "Why would they want to call if they're going to get a $300 tax?"

While Fort Liard is about the same distance from Hay River and Fort Nelson B.C., Carter said the new toll will also force him from that market.

The standing committee on governance and economic development will hold public hearings in Hay River on Oct. 11-12.

Freight fundamentals

Impacts on goods trucked to:

Hay River

Fort Smith

Fort Resolution

Fort Providence

- figures courtesy GNWT