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MLAs call for Northern allowance increase

Mike Bryant
Northern News Services

Yellowknife (Feb 13/06) - Regular MLAs voted unanimously Thursday to call on the government to seek a bigger Northern living allowance for territorial residents.

The motion, presented by Great Slave MLA Bill Braden, notes that the $5,475 yearly tax break the federal government gives to Northerners hasn't increased since 1991.

"People have been talking about the high cost of living here, but it's time to start doing something about it," said Inuvik Twin Lakes MLA, Robert McLeod.

The cost of living in the North occupied most of the attention of MLAs Thursday, as they tried to put pressure on cabinet to reach out to the Yukon and Nunavut governments, Northern MPs and the provinces to present a common front to Ottawa.

There was no recommendation included into the motion, MLAs called for an "annual indexing" of the allowance to keep up with the cost of living.

They said NWT residents spend approximately $2,000 a year more on food than the Canadian average, and $2,400 more on housing.

Nahendeh MLA Kevin Menicoche spoke of visiting the "Granny from Nahanni" in Nahanni Butte, who was pleased with his gift of tinned snuff because she can't afford to buy any of her own.

"She said, 'I have to spend all my money on bills,'" said Menicoche.

The territorial government spends $128 million each year to help Northerners make ends meet.

"There isn't another government, perhaps other than Nunavut, that spends on the amount of subsidies we spend," countered Handley.

Finance Minister Floyd Roland warned that the government stands to lose $1 million from its budget on federal grants for every $1,000 extra northern living allowance increase.

Handley said cabinet couldn't vote because the motion was an order for government action, which would put cabinet ministers in conflict had they voted for it.