Andrew Raven
Northern News Services

Yellowknife (Oct 14/05) - The territorial government will claw back federal subsidies to low income families intended to offset sky-high costs of home heating, Employment minister Charles Dent said Wednesday.

The move drew immediate fire from Great Slave MLA Bill Braden, during question period in the Legislative Assembly.

"Where is the heart of the government?" he asked.

Ottawa announced last week it will give low income families and seniors $125 to $250 this winter as part of a larger five-year, $2.4 billion package.

The deal comes as oil and natural gas prices reach nearly unprecedented levels in the wake of two southern hurricanes and continued turmoil in the Mideast.

In response to questions from Braden, Dent said the territorial government will treat the subsidies as income for residents on social assistance.

"When we calculate rates (that will be) part of what they bring to the table," he said.

The government covers home heating costs and other necessities for people on income support, making the subsidies unnecessary, Dent said.

The intent of the rebates, however, is to give poorer Canadians a break from high fuel prices which affect the cost of everything from gas to bread, Braden said.

"Where is the relief?" he asked, and suggested the federal government also do away with the goods and services tax on fuels in the territories. "Northerners bear the brunt of cold winters."

The income support system fosters dependence, he continued, and the rebates could be one way for low income families to "get ahead."

Dent said it would be difficult to determine how many will be affected by the government decision.

Nationally, more three million people are expected to receive the grants.

The plan to siphon the federal dollars into territorial coffers is not unusual.

The territorial government also claws back child care subsidies, known as the National Child Benefit.