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Andrew Livingstone
Northern News Services
Published Wednesday, September 24, 2008

SOMBA K'E/YELLOWKNIFE - Round table discussions began behind closed doors Tuesday morning on Finance Minister Michael Miltenberger's revenue options paper with representatives from more than 20 organizations in attendance.

During opening comments, Miltenberger said the NWT enjoys a level of service comparable to any other Canadian jurisdiction but it doesn't come for free.

Michael Miltenberger: "Slashing government expenditures and jobs helps but it's not the only answer to sound financial stability"

"The struggle we have today as a government is to look at the level of service and the type of government we have and the steps we have to take to make it sustainable," he said.

Slashing government expenditures and jobs helps but it's not the only answer to sound financial stability, said Miltenberger.

"What's been determined is let's look at revenue generation," he said. "This is to replace further reductions. The exercise today is to be as creative as possible to look at options, not just taxes, to generate revenue."

For example, he said the GNWT is close to adopting a program that will allow immigrants to move to the territory with greater ease. The program could bring up to 150 people a year to the territories, Miltenberger said, generating an additional $3.3-million in transfer payments from the federal government annually.

The government is also considering options on how to attract at least 100 fly-in/fly-out workers to reside in the North.

"Everyone talks about the workers and the loss of wealth," he said. "It's looking at what makes sense for the government and for Northerners."

Media were not allowed to be in attendance after the opening remarks from the minister and the finance departments' presentation of the revenue options. Executive communications assistant Brad Poulter said it was to allow for participants of the round table discussions to speak openly. The doors will reopen to the public for the wrap-up session on Wednesday afternoon.

The Yellowknife Chamber of Commerce responded last week to the tax-heavy revenue options paper with a five-point action plan outlining alternatives for the GNWT. The first two points of the plan are intended to make the North a more attractive place to live.

"We're addressing bringing people into the NWT, making the territory more competitive to outsiders again," Chamber president Jon Jaque said. "On the second point we're stopping the attrition of people leaving. This whole plan is about people.

"Getting more people here and keeping the people here is crucial. We need to reduce the cost of living to make it more attractive for residents."

One point in the action plan suggests lowering the upper level income tax bracket in order to keep workers here, rather than moving to Alberta where the upper-end tax brackets pay less taxes.

"What is happening is people are moving to Alberta and paying their taxes there and working in the North," Jaque said. "They're saving money by living in Alberta, on taxes and cost of living.

"The people that are currently working here and living down south would no longer see the incentive of living in Alberta. It would be off the list. They'd get an incentive to buy and settle down here and they'd get the Northern living tax credit. You can see how that mechanism is tuned together so the people would be interested in staying here."

Jaque said because 65 per cent of the GNWT's revenue comes from the federal transfer payments, it makes more sense to focus less on taxes and more on people.

"Revenue is based on people and not taxes, it just makes sense to speak to that revenue source," Jaque said.

Mayor Gord Van Tighem said the idea of raising taxes throws up a red flag in the minds of Northerners. However, if the GNWT properly addresses and explains the benefits of tax increases, people might be willing to accept them, but alternatives also need to be looked at, he said.

"If there is some sort of logic to what is presented, there can be public acceptance," Van Tighem said. "It needs to be explained and they need to see the benefit."

The mayor said it could be a good opportunity for the GNWT's long-term vision to look into equity-sharing in resources. He pointed to the African country of Botswana, where 50 per cent of that nation's revenue comes from this and how they do not levy taxes against citizens anymore.

"It doesn't need to be a penalty, it could be a positive," he said.