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Revenue solutions for NWT
Finance minister hints at revenue tax

James Chester
Northern News Services
Published Saturday, Oct. 10, 2009

HAY RIVER - When times are hard, the last thing anyone wants to hear about is taxes.

NNSL photo/graphic

Doug Ritchie of Ecology North presents his group's findings to Finance Minister Miltenberger and NWT business representatives, including Chuck Parker of the NWT Chamber of Commerce - James Chester/NNSL photo photo

But at Wednesday and Thursday's Revenue Options Round Table in Yellowknife, hosted by NWT Finance Minister Michael Miltenberger, taxes were on everyone's minds.

As business, community and environmental representatives presented their ideas to the room, the promotion of a resource tax was a common theme.

Mining and exploration bring revenue which is unsustainable in the long term. Meanwhile, Yellowknifers struggle with the high cost of living in the city.

"We're a resource-based economy," said Miltenberger, citing oil and gas, mineral extraction and the Mackenzie gas pipeline.

"I don't think there's going to be any shortage of companies wanting access to the resources, we're just have to make sure we're ready. The resource tax, we're going to look at that."

At the same time, the minister said, "there is downward pressure on corporate tax."

NWT Chamber of Commerce treasurer Chuck Parker spoke up on behalf of businesses. Parker claimed any increase in corporate tax would harm local businesses, now preparing for the tough winter season. Exploration companies, he said, need to be given incentives to work in NWT.

One of the problems mentioned at last year's round table was the migration of capital with "fly-in, fly-out" mining workers.

This year, Miltenberger gave Diavik mention for encouraging its workers to stay in the North. One of the problems, though, was the higher price of living in Yellowknife compared with living in the provinces.

One solution, said Miltenberger, is for the workers not to live in the capital. "Not every place is as expensive as Yellowknife," he said. "Some of the smaller communities, you can live much more affordably than here." It was carbon tax that failed to get people going.

"We have to put a price on carbon," said Doug Ritchie of Ecology North. "We've been avoiding these issues for the longest time."

Ritchie warned of the danger of rising sea levels.

"The worst case scenarios three or four years ago are now the best case scenarios," he said. "(We have to) think long and hard about the message we're sending out to the world."

With the UN Climate Change Conference in Copenhagen in December, provincial and territorial governments are taking their cues from the federal government.

"Cap and trade, that's coming," said Miltenberger.

Taxes, said the minister, "are the fuel that run government."

The resource tax has some support. But a carbon tax in NWT? It doesn't seem likely.

We welcome your opinions. Click to e-mail a letter to the editor.