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Cost of living driving people away, MLAs

Herb Mathisen
Northern News Services
Published Monday, October 6, 2008

SOMBA K'E/YELLOWKNIFE - The NWT was the lone Canadian jurisdiction to report a decrease in population in the past year, despite being home to the highest average personal income in the country.

A Statistics Canada report stated the population of the territory decreased from 43,535 on July 1, 2007, to 43,283, by July 1 of this year a decrease of 0.6 per cent.

The decline is a result of residents moving from the NWT to live elsewhere in Canada.

On the first day of session, six MLAs stood up to address the rising cost of living and some argued it would drive residents away.

They were concerned an application before the Public Utilities Board to increase power rates could further exacerbate the problem. Also, the GNWT is considering new, and increases to existing, taxes.

Jane Groenewegen, MLA for Hay River South, asked Premier Floyd Roland and Finance Minister Michael Miltenberger "is it possible, by considering increased or new taxes, to be any further out of touch?"

Robert McLeod, MLA for Inuvik Twin Lakes, chose his words carefully.

"If I were to stand here and tell you exactly what the people of the Northwest Territories think about the proposed tax increases, I would be escorted out of this chamber in 30 seconds," he said.

Groenewegen and other MLAs suggested any new tax be directed at industry, to keep the cost of living down.

"You've got resource companies, development companies up here bleeding us dry," said McLeod. "They are paying Ottawa and what do we get out of it? Nothing. Nothing."

McLeod and Groenewegen said the NWT must attract workers and retain residents.

"People, including Northerners, have lots of options as to where they live and work," Groenewegen said.

Miltenberger said the government would take the feedback from members and was sensitive to taxpayers' fears of a cost of living increase.

He reiterated the tax option is at the consultation stage to determine ways to generate the $40 million in revenue the government said it needs over the next two years.

He said a rising population would raise revenue.

"What we are looking at are ways to grow the population," he said.

Miltenberger said the government was looking to sign a territorial nominee immigration program, to bring in workers for "jobs that are begging to be filled."

Miltenberger said that could bring in 150 workers this year, which would translate into a population increase of 400 when families are taken into account.

The government was also looking to work with mines to encourage at least 100 workers - who currently fly in and out of the North - to live in the NWT, he said.

Mines could offer things like higher Northern-living and housing allowances as incentives, he said. Those incentives would encourage people to make the territory their home.

Those 100 workers and their families could potentially mean 800 new residents in a year, added Miltenberger.

Considering the federal funding formula, where the GNWT gets $22,000 in federal transfer payments for each resident, that would put them close to the $40 million they are looking to gain.

In the report, Canada experienced a 1.2 per cent increase in population, while both Nunavut and the Yukon experienced an increase in population of 0.6 and 1.7 per cent respectively.

Vishni Peeris, demographic and social statistician with the NWT Bureau of Statistics, said the population numbers are not completely definitive.

"It's an estimation process," she said.

Statistics Canada uses numbers from the latest census, adds births, subtracts deaths and factors in an estimate of interprovincial migration and immigration from outside Canada. Immigration numbers are estimated by examining the Canada Child Tax Benefit and other tax records filed in each jurisdiction.

Peeris said there is definitely a margin for error, although it is not calculable.