Richard Gleeson
Northern News Services

Yellowknife (Feb 22/02) - Joe Handley has struck a balance that, at first glance, has pleased both business and social activists.

The territorial finance minister's 2002-03 budget, released Wednesday, projects a $12.1 million deficit and calls for modest spending increases in social programs.

Finance Minister Joe Handley delivered his third budget address in the legislative assembly Wednesday. The 2002-03 territorial budget was praised as a step in the right direction by both business and social leaders. - Robert Dall/NNSL photo

Last week Handley said a goal of this budget, which is yet to be approved by MLAs, was to spin off some of the gains that have come from the booming economy into the social spending envelope.

Social activists said it was a good start.

Alternatives North's Suzette Montreuil called Handley's plan "a long overdue modest reinvestment in social programs."

Montreuil said the government has a long way to go to restore social spending to levels prior to the budget slashing that occurred during the second half of the 1990s.

"I think it's a fair budget," said NWT Status of Women Council president Barb Saunders.

"I'm pleased to see that they have taken some of the recommendations from community and grassroots people."

The council had lobbied for more child care spending. The budget proposes an additional $1 million in daycare subsidies. Saunders said that's a step in the right direction, but added much more is needed, particularly in terms of investment in treatment and health centres.

Karen Hoeft of the Salvation Army said social issues demand an integrated approach that goes beyond any single budget, but added the 2002-03 budget shows the government is attempting to address issues such as homelessness.

"I think we're working toward it," said Hoeft.

Yellowknife Mayor Gord VanTighem was hoping to see some support from the territorial government for housing development. The city wanted the government to provide funding for the development of infrastructure such as sewer and water lines to help offset the cost to private developers of building homes.

What the government proposed was a program that encourages rental housing development in non-tax based communities only.

"We've got problems in the tax-based communities as well," VanTighem said.

The mayor noted he will with a business group heading to Ottawa at the beginning of next month. They will be call for more federal investment in the NWT. "We'll try to get the money for the GNWT and then hopefully they'll give it to us," he said.

Yellowknife businessman Bill Aho will also be part of the coalition heading to Ottawa.

"My first impression is its a good news budget all the way around," said Aho, one of about 60 people who witnessed Handley's budget address.

"Typically when you hear a budget there's one or two things that stand out in your mind that will be difficult issues to deal with, but with this one that just doesn't seem to be there."

The plan to stimulate housing development in non tax-based communities is an example of addressing social issues and at the same time contributing to business development.

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