Nathan VanderKlippe
Northern News Services

Yellowknife (Apr 12/02) - The GNWT needs to reexamine the philosophy behind its income support before it can decide whether to eliminate clawbacks on the program.

"We will have to have the debate in the government on what is income support," says Finance Minister Joe Handley. "Is it income for people in desperate situations, or is it a guaranteed minimum income?"

Handley's comments were prompted by a question from retired public servant Frank Cserepy at a budget briefing luncheon between the minister and a smattering of social and environmental groups.

Alternatives North has organized an alternative budget meeting four times previously; this luncheon was held last Friday.

Handley faced about a dozen questioners at the luncheon, who wanted answers on GNWT's support for everything from training programs, to regulating private construction of accessible buildings, to the road tax.

Groups around the table included the NWT Council for Persons with Disabilities, the NWT Status of Women Council and the Union of Northern Workers.

Handley prefaced his remarks on the budget by saying that the current government decided to focus first on obtaining economic stability, then to "move toward the political and social needs of the territory."

The 2002 budget drew little applause from the representatives, although criticism was generally hushed.

Handley highlighted some of the funds earmarked for social agencies by the GNWT this year, including $7.3 million for employment training, $2 million for a child welfare action plan and $7.5 million in tax breaks.

The minister drew fire from some of the representatives, who questioned whether money from the tax break went to those who need it most.

Handley promised to provide a breakdown of who benefitted from the break.

Barb Saunders, executive director of the NWT Status of Women Council, told Handley, "I don't think that (the budget) is balanced enough."

Saunders urged Handley to put more money into day cares for the communities. She called the $1 million granted this year "way below what should be there."

Coun. Kevin O'Reilly, saying he was speaking as a concerned private citizen, questioned the territory's ability to maintain a sufficient revenue stream.

"There's a growing gap in our revenues between what we need and should be spending," he said. "I'm not sure the answer for us is to become a corporate tax haven."

In response, Handley said he would consider imposing a tax on minerals and resources, but only as a last resort.

"If our backs get to the wall, we might have to do that," he said. "The problem we have with it is I just can't up and do it. I have to work it through the legislative assembly."

He also said the government could return to a road tax as a last resort.

Despite the criticisms, many of the groups agreed that this was a more balanced budget than in previous years.

Coun. Ben McDonald, who chaired the meeting, commented that, "there's been much more aggressive sessions of this in years past."

Handley also said:

• he will speak with Minister Responsible for Housing Roger Allen on encouraging developers to be create more handicap-accessible buildings.
• the GNWT has "to take a step further back" and examine literacy and lifestyle needs in employment training.
• he will look into equalizing funding to the territory's emergency shelters. "I think there's ways of using our money more effectively," he said.