'We haven't really earned our spurs'
Minister reflects on three years of pre-budget consultations
Miranda Scotland
Northern News Services
Published Monday, January 26, 2015
NORTHWEST TERRITORIES
Finance Minister Michael Miltenberger's three-year commitment to hold budget consultations has come to an end.
GNWT Finance Minister Michael Miltenberger sought feedback during a budget consultation meeting in Fort Simpson, Nov. 17. - Shane Magee/NNSL photo |
His department released a 14-page report Jan. 15 summarizing suggestions made during the last round of public meetings, which were held between October and December.
As Miltenberger prepares to release the territorial budget next month, he said the suggestions foremost on his mind pertain to cost of living, balancing government finances, infrastructure investment, and economic growth in the communities.
"When you see the budget it's going to reflect the current economic situation that we're in and those realities that we have as a government," said Miltenberger.
The territory's economy has slowed since 2008 and the future of the resource sector is shaky with diamond mine closures looming.
Some participants in the consultations cautioned against a repeat of the 1990s when the government faced a similar situation and resorted to budget cuts, which negatively affected the territory's population and economy, the report states.
Many residents said they want current program and service levels to remain the same while others proposed additional services, such as publicly-funded daycare, a NWT healthy foods and nutrition strategy, and a nurse practitioner in every community.
Previous budget dialogues have led the government to increase spending on social programs the past couple years, said Miltenberger.
"We're spending about $1.6 billion on programming, the majority of which goes to the social envelope. So we're listening closely as we manage our expenses.
"This year we're going to continue to maintain programs. We're looking at controlling our costs, being as efficient and effective as possible."
Increasing the government's debt ceiling to $1.8 billion from $800 million and growing the population by 2,000 people over the next four years remain priorities for Miltenberger.
Participants offered a number of suggestions to attract people to the NWT and get them to stay. They argued the GNWT is stunting recruitment by requiring candidates to have unnecessary credentials, the report states.
NWT residents said they're also unimpressed with how the GNWT often doesn't make permanent jobs available to students after they complete internships.
Efforts must also be made to reduce the cost of living, noted participants.
"The high cost of energy and a frustration on the lack of speed changing from diesel fuel to alternative energy sources was heard in a number of sessions," reads the report.
Residents suggested the government adopt a carbon tax, start a green fund, and introduce small business grants to encourage investment in alternative energies.
Infrastructure was also a popular topic, with some participants adopting the view that the government should avoid taking on debt given the current economic climate. Others advocated making investments in infrastructure that would generate a return, such as building a Tlicho road or the Wrigley-Norman Wells portion of the Mackenzie Valley Highway.
"Representatives from a number of different community's noted that the Norman Wells area had a lot of potential resource activity and businesses in other communities such as Hay River would also benefit from this activity by providing services such as transportation," the report states.
Nearly 100 residents took part in the 2014 consultations, held in Behchoko, Fort Simpson, Hay River, Fort Smith, Yellowknife, Inuvik and Norman Wells. About 80 people participated in 2013, compared with more than 130 in 2012. The department received nine written submissions the first year, then 20 and 11 the following two years.
The price tag for the 2014 round of consultations was about $40,000. The cost covered advertising, printing, meeting room rentals and refreshments, translator services, and travel for Miltenberger and his staff. The government also paid to bring three representatives from small communities into the regional centres.
The exact cost to do this is not yet known but it's estimated at $3,000 or less. News/North asked Miltenberger if he thought the Department of Finance should continue to run pre-budget consultations. He replied the he believes the meetings "have value."
"I've gotten many comments about how people appreciate the effort. That it's, for them, good to see the government, especially a central agency like finance, come outside of Yellowknife to take the time to go into the regions."
Miltenberger acknowledged it was challenging finding dates that worked for residents and noted meetings had to be booked early so the department had time to advertise.
"Invariably by the time we got there people's calendars would fill up with other things and often times we ended up competing with other events," he said.
"If you keep doing it you're going to build up ongoing interest. Right now it's still relatively new and we haven't really earned our spurs when it comes to people being convinced that it's worth the effort to come out."
It will be up to the finance minister for the 18th legislative assembly to decide whether to continue holding consultations.
Resident comments from recent GNWT budget consultations
"Let's not increase our expenditures, let's not take on more debt that saddles future generations, let's not take on large infrastructure projects given that there is not a well-spring of wealth in the foreseeable future."
"Without action to improve social conditions, scarce funds will continue to be siphoned off to paying the negative costs of social malaise, such as policing and courts, health impacts and poor economic engagement."
"Let's make sure we're not stepping over a dime to pick up a nickel."
"We have to break the systemic welfare cycle through driver education, technical training, putting kids into the workday mindset at an early stage."
"The GNWT appears to be focusing on the large corporations to do business when it needs to place more emphasis on home-grown business. If the global economy warrants it, the multinationals will come and build infrastructure."
"We don't want to be Yukon with the big Whitehorse and nothing else - communities are key, especially the smaller communities as the hubs feed off the smaller communities. We need to show growth in the small areas - real jobs."
Source: Budget Dialogue 2014: Taking Stock
