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Revamped federal budget gets mixed reviews in NWT
Re-commitment for highway welcomed, but cuts worrying

Paul Bickford and Kevin Allerston
Northern News Services
Published Monday, June 13, 2011

NORTHWEST TERRITORIES
The new Conservative government has outlined its vision for the near future in two back-to-back declarations of intentions - a Speech from the Throne and a budget - both containing items for the North.

NNSL photo/graphic

Federal Finance Minister Jim Flaherty, centre, is congratulated by Prime Minister Stephen Harper after delivering his budget speech on June 6. - photo by Jason Ransom; courtesy of the Government of Canada

NNSL photo/graphic

The following are some federal budget items of particular note to the NWT.
  • $150 million to support the completion of an all-weather road between Inuvik and Tuktoyaktuk;
  • $8 million over two years to promote clean energy technologies in aboriginal and northern communities;
  • $9 million over two years to expand adult basic education programming in the North;
  • $22 million over two years to help First Nations ensure that fuel tanks for essential services meet environmental safety standards;
  • Extending the temporary 15 per cent Mineral Exploration Tax Credit for an additional year until March 31, 2012, to help companies raise capital;
  • Attracting more health care workers to underserved rural and remote communities by forgiving up to $40,000 of the federal component of Canada Student Loans for new family physicians and up to $20,000 for nurse practitioners and nurses.

Source: Government of Canada

The two documents - mainly the budget of June 6, which is a revamped version of a pre-election budget from March 22 - received mixed reactions around the NWT.

The GNWT welcomed the budget reaffirming Ottawa's previous commitment to spend $150 million over the next five years to advance an all-weather road from Inuvik to Tuktoyaktuk.

Premier Floyd Roland said the funding is an important first step in a project to move the NWT toward greater economic self-sufficiency and advance Canada's sovereignty in the North.

"This funding recognizes the importance of supporting exploration, oil and gas development, and other economic opportunities in the NWT for the good of Canada," Roland said in a news release.

Tuktoyaktuk Mayor Merven Gruben also welcomed the budget's highway funding, noting it was first announced in the spring.

"Hopefully, we can get some work started this coming winter," he said.

The work will be good for the economy of the region, he added. "This is going to be perfect."

Plus, he noted the all-weather road, once completed, will benefit his town for years to come by helping to expand the tourism industry, and will strengthen Canadian sovereignty in the North.

NWT Finance Minister Michael Miltenberger said he expects some cuts to programs and services as a result of the budget, but Northerners shouldn't be overly concerned.

"They've already agreed to put some areas off-limits - the transfers to the provinces and territories, health and social services, equalization and formula funding," Miltenberger said. "So they're going to be looking internally at their own programs ... What those are have yet to be determined."

Western Arctic MP Dennis Bevington is concerned about how some of the $4.3 billion in expected cuts will affect the North.

"What we noticed was there were fairly large cuts to Northern programs - almost $300 million in cuts," said Bevington, pointing to $220 million in cuts to the Department of Aboriginal Affairs and Northern Development and $17 million from the Canadian Northern Economic Development Agency.

"We have put in an access-to-information request to Ottawa to find out exactly where these cuts will be," Bevington noted.

Jean Francois Des Lauriers, northern regional vice-president of the Public Service Alliance of Canada, said he is worried about how budget cuts will affect Northerners.

"This is again a budget that is irresponsible and reckless in fiscal restraint," said Des Lauriers.

It is outrageous to say that $4 billion in cuts are not going to affect people, he added. "You don't cut $4 billion in programs and not have a deep effect on the quality and the delivery of these programs."

Sarah Wright Cardinal, the president of Aurora College, welcomed the budget's $9 million in funding over two years to expand adult basic education in the three territories.

"As an institution that delivers adult basic education at our three campus locations and 23 community learning centres across the territory, Aurora College looks forward to seeing the benefits of any increase in funding and the ensuing positive impact these increases have on our adult learners," Wright Cardinal said.

In the Speech from the Throne on June 3, the federal government outlined its agenda in broad terms.

Among other things, the government committed to "support transparency" for First Nations communities by requiring chiefs and councillors to publish their salaries and expenses.

"To me, I don't think that's the issue, because we're compelled to report to our membership, to our citizens. We do that," said National Chief Bill Erasmus of the Dene Nation. "For example, this summer we have our assemblies and, in all of those assemblies, we have our audited financial statements that are dealt with in the open. There's transparency there."

Erasmus thinks the Speech from the Throne statement on chiefs' salaries and expenses resulted from a push by the Canadian Taxpayers Federation to somehow make it seem like First Nations are not being upfront about the money.

The funding is provided to First Nations by virtue of treaties and agreements with the Crown. He added, "By extension then, those dollars are not accountable to the general public."

As for the budget, Erasmus said it contained some good points.

"But I think we should be concerned because there was not a lot that we could find here that will assist the North and First Nations," he noted.

Erasmus said the good things, included funding for clean energy, adult education, ensuring fuel tanks in First Nations communities meet environmental standards, and the all-weather road from Inuvik to Tuktoyaktuk.

The Dene Nation was also pushing for funding for highway construction from Wrigley to Inuvik, he noted. "So we're going to have to continue working on that."

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