Jason Unrau
Northern News Services
Monday, February 12, 2007

YELLOWKNIFE - There were few surprises in Finance Minister Floyd Roland's budget address Wednesday.

Calling it a "hold the line" budget without any "bells and whistles," the underpinning theme of Roland's speech was the need and desire for the North to get out from under Ottawa's thumb.

Finance MinisterRoland: tired of federal claw backs

Roland says 'time is running' out for the Northwest Territories to get a resource revenue sharing deal allowing it to reap more benefits from its mining, oil and gas industries.

The possibility of a gas pipeline down the valley made Roland's message all the more critical.

"In 2005/2006, the federal government received $244 million in oil and gas and diamond royalties from our territory alone," he said. "We get no share of those royalties. This just doesn't add up."

What the GNWT did get after federal grants and transfer payments was $1.231 billion, an increase of 4.3 per cent from last year

While the general feeling among MLAs is positive the federal government will implement recommendations from a 2006 Expert Panel Report, which would mean more revenue for the territories, Roland referred to 2007/2008 projected spending as "stay the course."

"It's (a) conservative (budget), based on what we know we have in the bank, not what we think we'll have," the finance minister told reporters in a pre-budget press conference.

Premier Joe Handley called it a "well balanced" budget, noting increased spending on education and housing as sticking with his government's priorities. An overall spending increase of 8.3 per cent to $1.15 billion, Education, Culture and Employment accounts for the biggest single chunk of spending, rising 10.4 per cent to $286 million in 2007/2008. Funding for health care rose just 4.6 per cent to $277 million.

Tu Nedhe MLA Bobby Villeneuve's reaction to the budget was at best, lukewarm.

"It's OK but not as hunky-dory as the minister says, there could be more money for education, social programs and health infrastructure," he told News/North following the budget speech.

Villeneuve also questioned the worth of the New Deal, crafted under the current government and promising $22.5 million in formula funding directly to community governments.

"It just touches on what communities need in terms of programs and services, it's a deal but not a sweet deal as it doesn't look beyond five years," he said.

Hay River South MLA Jane Groenewegen called it a "maintenance budget" with, "no new projects, no new tax changes and no new large initiatives."

"And Hay River was conspicuously absent from any mention," Groenewegen added.

Former MLA and chief of Behchoko Leon Lafferty believed there was not much difference between this budget and the year previous. Lafferty also expressed his concern with the GNWT "putting a lot of money on exploration and development" while at the same time trying to address environmental challenges such as the government-reported caribou decline and industry's impact on that.

As for hammering out a resource revenue sharing deal with Ottawa, Lafferty said getting everyone - federal, territorial and aboriginal governments - on the same page was not as tenuous as many think.

"One obstacle is you have to convince aboriginal governments that it won't negatively affect their land claim agreements on ongoing land claim negotiations," he said. "And the equitable sharing of the revenue. Other than that there are no hurdles."