Kent Driscoll
Northern News Services
Monday, March 26, 2007

IQALUIT - David Simailak has an extra $37.6 million for the government of Nunavut's coffers, but he is far from declaring the latest federal budget a success for Nunavut.

"This new TFF (territorial financing formula) is an excellent start, but we are not there yet. However, strategic investments outside TFF will still be required to help our government reduce dependence on the federal government," said finance minister Simailak to his fellow MLAs.

Nunavut's Federal Support for 2008-08 By department: TFF: $893 million Canada Health Transfer: $24 million Canada Social Transfer: $11 million Infrastructure: $32 million Source: Federal budget

"It is a good budget for the North," said federal finance minister Jim Prentice, in a March 20 interview with News/North.

"Nunavut will benefit from, by reason of its location, $39 million over two years to fund fisheries science," said Prentice. That figure is not included in the $960 million total.

While Simailak is moderately pleased with the budget, the Nunavut Association of Municipalities (NAM) is not. The group was looking for more funding that would go directly to the hamlets, not the GN.

"The federal budget will neither improve the quality of life in Nunavut or bring the territory any closer to economic prosperity. We are very concerned that the Government of Canada and the Government of Nunavut have taken no action themselves on the O'Brien Panel's recommendation and have not supported local governments to do so," said Elisapee Sheutiapik, Iqaluit Mayor and President of NAM.

Prior to the federal budget, Simailak was wondering if the federal government would even follow the O'Brien report. That government sponsored study - chaired by Al O'Brien, former deputy provincial treasurer of Alberta - recommended increased funding for the territories.

"I am pleased that, by and large, the O'Brien report recommendations are contained in Monday's budget," said Simailak.

Simailak said a shift to base funding from per capita funding, cost-based increases over years instead of a set per cent annual increase, and simplified measurement, estimate and payment criteria were O'Brien recommendations he was pleased to see in place.

While he has $37.6 million more in hand today compared to when he released the territorial budget, Simailak is in no hurry to start spending it.

"This government must continue with its commitment to fiscal responsibility, fiscal discipline and accountability. We must stay the course through implementing measures of efficiency, effectiveness and economy," said Simailak.

There may be some more good news for Nunavut. Prentice had some hints for Nunavummiut during his interview.

"We have discussed the possibility of a port for the Eastern Arctic and decisions will be made for the ships as well in the days ahead," said Prentice.

Patient wait times are not a huge issue for Nunavut, since very ill patients are transferred to southern hospitals, and are subject to their schedules. But southern wait times are Northern wait times when it comes to major medical work.

"There's $4.5 million dollars available to deal with patient wait times over the next three fiscal years for the North," said Prentice.

- with files from Jason Unrau