Adam Johnson
Northern News Services
Published Wednesday, January 23, 2008

YELLOWKNIFE - Premier Floyd Roland announced Tuesday that his government will cut $135 million from the upcoming budget, though details were scant on where these cuts will be made.

Premier Floyd Roland answers questions from the media after announcing the government would cut $135 million from the GNWT's upcoming budget. - Adam Johnson/NNSL photo

"In order to meet the assembly's goals, we cannot continue to do business as we have in the past," Roland said in the media room of the legislative assembly.

He said the government needs to tighten its belt to avoid future problems, as spending exceeds revenue.

"There will be some changes to programs and services and possibly to the staff that deliver them," he said, though he was not clear on how, or where, these cuts would be made.

"That level of detail is not available and has not emerged as of yet," he said.

Roland said the need for cuts became apparent during the legislative assembly's early planning sessions.

The news contrasts with the 2007/2008 budget, which contained a $81 million surplus. In that budget, revenue exceeded spending at $1.231 billion to $1.15 billion.

"Should employees of the GNWT be worried about their jobs?" asked one observer.

"I don't think that the people out there have anything to fear," Roland responded.

In a follow-up press release, Todd Parsons, president of the Union of Northern Workers - which represents GNWT employees - said he was "puzzled" by the announcement and had "serious concerns" for his members.

"Right now no one seems to know how much the public service will be affected," he said, though he said members should stay in touch with the union if they had any concerns.

Great Slave MLA Glen Abernethy said he agreed with the need for the cuts but worried about what the announcement would do to morale in the public service.

"This is clearly going to terrify people," he said, though he added, "If we keep spending beyond our means, we're going to be in a lot of trouble."

Abernethy recalled a series of cutbacks in 1996, resulting in layoffs.

"They cut lots of people - I was one of them."

In the end, many of the people laid off - complete with buyout packages - left the Territories and never returned, he said.

This had an impact on the NWT's population, and thus its transfer payment revenue, he said.