Hay River (Mar 03/03) - Just how will the GNWT pay for changes suggested in the upcoming energy strategy?

At a recent consultation in Hay River, the GNWT's special advisor on energy suggested one way might be higher taxes on petroleum products.

Dennis Bevington pointed out those taxes in the NWT are among the lowest in the country. "We don't tax very high at all."

He added, "We do have some opportunities to raise revenue."

When asked about the cost of implementing the coming recommendations, Bevington said work is underway to provide estimates to the government.

"We're pricing out the various strategies we're going to propose," he said.

A discussion paper being distributed during the consultations explains that the GNWT has the authority to establish rates of taxation on all types and uses of fossil fuels under the Petroleum Products Tax Act.

Different fuel products are taxed at different rates, depending on what purpose they are used for.

The use of diesel fuel for heating is exempt from NWT taxation, while natural gas is exempt for any purpose.

The discussion paper notes changing the tax rates is one instrument government has to influence consumer behaviour. For example, increasing the tax on diesel fuel would drive up the price and encourage consumers to be more efficient or switch to alternate forms of energy, if available.

"On the other hand, higher prices for diesel fuel would create hardships for those consumers unable to reduce their consumption or switch to other forms of energy," the discussion paper states.

In late January, the premier's Energy Secretariat began a consultation trek to every community in the NWT.

Bevington says it's necessary to visit every community because each has unique energy opportunities and challenges.

A draft energy strategy will probably be ready by April, followed by more consultations and a final document in June.

Bevington said work has been ongoing for a year and a half.

Bevington said the government is determined to present the energy strategy to the current assembly.