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Election expected after federal budget
Mayor, Miltenberger point to positives, but defeat looms of government

Andrew Livingstone
Northern News Services
Published Wednesday, March 23, 2011

SOMBA K'E/YELLOWKNIFE - The federal budget came down Tuesday afternoon, and for Yellowknife and the North there wasn't much to be excited about.

But now that the three opposition leaders saying they have no plans to support it, it's likely the budget won't survive and residents will head to the polls later this spring.

Federal Finance Minister Jim Flaherty delivered an election-style budget with a number of new initiatives geared toward families, small and medium-sized businesses and seniors, and no new taxes to Canadians.

Flaherty announced $300 million annually to increase the Guaranteed Income Supplement (GIS) for low-income seniors which would provide $600 annually for a single senior and $840 for couples. The finance minister also announced tax credits for family caregivers, volunteer firefighters and a tax credit for children's art activities.

Western Arctic MP Dennis Bevington said the budget just doesn't cut it for Canadians and the country is likely headed for the polls." Bevington said the increase in GIS for seniors wasn't nearly enough - in fact, it was less than half the increase he said the NDP wanted in the budget.

"We were looking for around $115 per person, per month," Bevington said. "It's considerably less than what we were hoping for. It doesn't cut it.

"They've painted our issues into the budget but they've provided them with very little substance. There was really very little there that was going to help Northerners."

Mayor Gord Van Tighem said the commitment from the federal government to work on a long-term approach for replacing aging infrastructure, and the plan to establish a permanent and stable gas tax fund, will help reduce infrastructure costs.

"The major bulk of infrastructure is within municipalities and we see that every year when we pop water lines and replace roads, so the fact they've agreed to ... develop a long-term plan and a funding strategy is great. It's something we've been pushing for."

Territorial Finance Minister Michael Miltenberger said the plan to make the Gas Tax Fund permanent will bring security and long-term planning opportunities to communities in the NWT.

"It provides a much-needed security, so that we know it's coming and it's already in place and we don't have to worry about it being changed or amended or cut, so it will provide a good measure ... to the communities," he said, adding it's "somewhat debatable whether (the budget) will ever see the light of day."

Gerda Groothuizen, deputy fire chief of life and safety prevention and president of the NWT Fire Chiefs Association, said she was extremely pleased to see the volunteer firefighter tax credit included in the budget. Groothuizen said the Canadian Association of Fire Chiefs had been working since mid-2010 to get this tax credit included and she said it will be a huge benefit to improving retention of volunteer firefighters in the city.

"It's giving that much more tax relief, which is that much more incentive to getting volunteers and it may help with their retention in the long run," she said of the two-dozen volunteer firefighters in Yellowknife.

"Across the territory this is hopefully going to make a huge impact for our firefighters."

Bevington said the firefighter tax credit isn't as good as the budget makes it out to be.

"That tax credit, if you read it carefully, you can either take the $1,000 tax exemption for your honorarium (for) being a volunteer firefighter, or you can claim the tax credit for $450," he said.

"So really, you're just replacing one tax credit with the other. It's not as great as it sounds."

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