Glen Korstrom
Northern News Services

NNSL (Nov 01/99) - Federal-territorial bickering has helped put the GNWT into a projected $16-million accumulated deficit at the end of the 1999-2000 fiscal year.

Finance Minister Charles Dent said disputed claims in both the non-insured health benefits agreement and the Hospital Care--Indian and Inuit Agreement caused the GNWT to revise its revenue projections from the federal government by about $14 million.

The revised estimates reflect rejected and disputed claims covering the past four years.

"The federal government says that the invoices were for services that they won't cover. We think that they should," Dent said.

One example of a disputed claim that Dent gave is the case of an escort who travels with a person who needs medical care.

"(The federal government) is saying that for the medical condition that the person is being sent out to get treated, they did not need an escort so we're not going to pay."

As for why the GNWT paid for expenses that it was not sure it would be reimbursed for, Dent said he was sure that the GNWT department of health thought all disputed expenditures were legitimate and would be covered under the agreements.

"I think the belief is that they should be covered. That's the situation we find ourselves in. It's still under dispute," he said.

Dent said all government departments are urged to cut costs wherever possible.

"I've asked departments to look for opportunities to reduce expenditures and if at all possible to economize so that we can come in under the (projected) $16-million accumulated deficit (at the end of the current fiscal year)," Dent said.

"I don't think we're looking for dramatic things. I think what departments are going to do is look for areas where there is not a big impact."

One example of recent department cost cutting is the Department of Transportation deciding to close ferries at all locations earlier than in past years.

Pay equity settlements for 82 per cent of current and former GNWT employees accounted for $8 million more in expenditures than expected.

After the disputed health claim settlements, pay equity was the second largest factor in the $29-million extra shortfall that the government announced this week.