. E-mail This Article

Clawback to be canned

Government flip-flops on fuel rebate

Dave Sullivan and Richard Gleeson
Northern News Services

Yellowknife (Apr 11/01) - Responding to pressure from regular MLAs, social activists and the public, the government has reversed its decision to keep federal fuel rebates that were supposed to go to residents on income assistance.

"Any money previously received by the GNWT will be returned to residents as quickly as possible," said Education, Culture and Employment Minister Jake Ootes from Edmonton yesterday.

Ootes said public opposition prompted the reversal of a decision made last month to deduct the rebate from income support cheques.

The territorial government was going to channel the rebate back into general revenues, reasoning it already pays the full cost of heating for those on income support.

"(The standing committee on accountability and oversight) had sent a letter to Jake letting him know that all members of the committee wanted to see the decision reversed," said committee chair Charles Dent. "So I'm glad he's done that."

The clawback caused a surge in demand at Yellowknife's food bank. A committee of regular MLAs called on the government to allow those on income support to keep the rebate.

Welfare activist Maria King called the clawback "the last straw" and was trying to rally those on income assistance to appeal to the government for more income assistance money.

Ootes said the government is currently conducting a review of income support regulations and levels.

The Yellowknife single parent said income assistance recipients were already stressed beyond their ability to cope.

"The government can do what it wants, but we've got to tell them it's morally wrong. It's discrimination," says King.

One-time rebates, designed to soften the blow of sky-high heating costs due to the price of oil and gas, were issued by the federal government which does not consider its $250 cheques for families to be income.

An additional $320 rebate was offered by the territorial government to families that applied for it. Households earning over $75,000 yearly were eligible for half the amount.

Families were not eligible who live in government-owned housing, and that accounts for about half of everyone receiving assistance.

In total, the territorial government gives between $11 million and $13 million a year to welfare recipients.

In Nunavut, the federal fuel rebate was declared safe from that government's hands earlier this month.

NWT Housing Corporation spokesman Fred Peterson said 3,300 residents applied for and received the territorial government's $320 rebate, out of an estimated 5,000 who were eligible.