Richard Gleeson
Northern News Services

Yellowknife ( Mar 01/00) - The federal budget was hailed as a success by most business organizations but was a big disappointment to those hoping to see more money for roads, health care and education in the North.

Western Arctic Member of Parliament Ethel Blondin-Andrew saw good and bad news for the territories in the budget.

"It's a little bit of this and a little bit of that, but basically it's not bad," said Blondin-Andrew.

The three-term MP said income tax deduction increases proposed in the budget will cost the territorial government about $3 million in annual revenues. About 80 per cent of that will be made up by increases in other funding.

Territorial Finance Minister Joe Handley estimated yesterday that after adjustments to the formula financing grant are taken into consideration, the tax loss will total about $600,000 per year.

Handley said that though tax reductions in the budget will benefit Northern wage earners and businesses, the federal government disappointed on other fronts.

"It does not provide us with the money we had asked for and hoped to see, primarily in the areas of health and social services. While there is a provision in the budget for some infrastructure money, it is not adequate to meet our infrastructure needs, particularly in transportation."

Handley said a one-time injection of $3.4 million for health and education services in the North "is not enough to meet the increasing costs of providing these services."

Inuvik Boot Lake MLA Floyd Roland said low income Northerners can expect little relief from the federal government.

Citing the $7 cost of three litres of milk and the 95 cent a litre prices at the gas pumps in Inuvik, Roland said the $400 tax savings a low income family of four would realize is not nearly enough to keep up with increases in the cost of living in the North.

Yellowknife Great Slave MLA Bill Braden yesterday told the legislative assembly the budget highlighted for him the differences in the financial footing of the federal government compared to the NWT.

Noting the flexibility the Liberal government had to create new programs, enhance existing ones, reduce taxes, he said these are options territorial politicians "can only dream of at this time."

Even Handley said it will be a few days before the government has a clear picture of the net benefit or loss the federal budget will have on the government.

The NWT Chamber of Commerce has issued a "thumbs up" on Monday's budget.

"This budget should be good for the business community of the Northwest Territories," said Alan Vaughan, vice-president of the chamber.

"The reduction of personal and corporate taxes will effectively put more disposable income into consumer's hands which will benefit businesses bottom line and cause more money to be put back into investment and job creation."