Yellowknife (Apr 25/05) - Territorial entrepreneurs are wading in for their share of the gas tax rebate program.

With a federal election looming, business people are calling for the money from the gas tax rebate program - known as the New Deal for Cities and Communities - to flow through this fiscal year.

Jack Rowe of Rowe's Construction in Hay River said programs which assist in building the North's infrastructure are needed. Rowe and Iqaluit's John Jacobsen, president and owner of Tower Arctic, said the North's infrastructure needs totally eclipse the infrastructure needs of the south. - Paul Bickford/NNSL photo

Infrastructure Minister John Godfrey said during a conference call Tuesday that the Northwest Territories and Nunavut will see $75 million through the program.

Deborah Delancey, deputy minister of Municipal and Community Affairs said the Northwest Territories' portion - $37.5 million - is expected to be disbursed over five years, with $4.5 million expected this year. Businessmen throughout the North are not mincing words about the importance of infrastructure.

Jack Rowe, owner of Rowe's Construction in Hay River, said the Northwest Territories is facing increased resource activity and increased demands on infrastructure.

"We don't have enough residents to pay for increased wear and tear," he said.

"We have limited access to capital," said Rowe.

The Hay River businessman said measures that work down south, such as user charges or broadening the tax base, don't work in the North because of a lack of population.

Rowe was part of the group of business and political leaders that traveled to Ottawa earlier this month to lobby for devolution of federal government powers and a credible resource revenue-sharing plan.

Comparing the gas tax rebate to the GST, Rowe said when the federal government brought in the GST, gas was worth close to 50 cents a litre, delivering 3.5 cents on every litre to Ottawa.

Today, gas prices are closer to a dollar a litre.

Rowe argued for a cap on market-driven consumption taxes like the gas tax, with anything above the cap going back to the provinces, territories or municipalities.

Rowe also said Northern contractors are hesitant to make significant capital investments because of a lack of clear long-term planning by the federal government.

John Jacobsen, president and owner of Tower Arctic in Iqaluit, said the gas tax rebate program is a small drop in what amounts to a "very large bucket" of infrastructure needs within Nunavut.

"We have third-world water and sewage infrastructure," said Jacobsen.

When it comes to infrastructure cash, Jacobsen said, "band-aides are being used when major surgery is required.

"One good water treatment plant in the south can look after 30,000 people, that's nearly the population of Nunavut," said Jacobsen.

"We have 28 communities and each needs water and sewer and proper garbage facilities and housing. The list goes on and on and on."