Paul Bickford
Northern News Services
Friday, January 29, 2007

HAY RIVER - A high-level territorial delegation, including Premier Joe Handley, were given a bit of a grilling before Hay River Town Council on Jan. 15.

Numerous concerns were raised by council, but the most contentious was a proposed slash to the GNWT's water and sewer subsidy, which will cost Hay River $200,000 a year.

"Quite frankly, it's hard for us to eat that," Mayor John Pollard said, adding it's not acceptable for the GNWT to claw back that much money and expect a municipality to pass it along to residents.

Municipal and Community Affairs Minister Michael McLeod said government has developed a new water and sewer subsidy formula, which is fair across the board.

Under the old formula, Hay River was getting $566,000 a year.

"We could not justify that," McLeod said.

The minister said the town will get about $1 million more in capital funding from the GNWT.

"There's considerably more money in the pot overall," he said.

McLeod suggested the town use some of the capital funding to help pay for aspects of water delivery, such as for the trucks which bring water to outlying areas.

Pollard rejected the idea of such cross-subsidization.

"We don't think that's responsible," he said.

Despite the town's objections, McLeod said it would be difficult to backtrack on the subsidy cut.

"I don't think we'd reconsider," he said.

However, while the cut has gone through cabinet and has been included in his department's proposed budget, McLeod said it still has to get final approval from the Legislative Assembly.

Pollard called on Hay River's two MLAs and those in Yellowknife, which is also facing a $200,000 subsidy cut, to fight the change.

Council also told Handley, as minister of aboriginal affairs, that it wants more information and input on the Deh Cho Process.

"It sends up red flags to this council that we may not be in the loop as much as we should be," said Coun. Dean McMeekin.

In particular, McMeekin is concerned about a recent federal offer for an agreement-in-principle that was turned down by Deh Cho First Nations, and suggested the territorial government is not representing Hay River concerns as forcefully as it should in the negotiations.

Handley said the GNWT is not trying to do anything behind the town's back.

If the offer for an agreement-in-principle had been accepted, there would still have been consultations, he said.

"It's still early in the process," he said.

Despite the premier's assurances, Coun. Ron Cook is still worried.

"It seems like we're the player being left out in the cold," he said.

Council raised numerous other issues with the cabinet delegation.

Pollard asked Handley if the idea of a one-rate zone for power is gaining steam in government. Hay River, as a town on hydroelectric power, opposes the idea of levelling out rates with communities using more expensive diesel power.

"We have no intention of interfering in the process," Handley said, adding that any rate application by the Northwest Territories Power Corporation must be approved by the Public Utilities Board.

Floyd Roland, the minister of health and social services, said government would examine whether the town needs a new hospital or if the existing one could be renovated.