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Peterson predicts surplus
Cigarette tax goes up, Cambridge Bay gets addiction treatment centre pilot projectCasey Lessard Northern News Services Published Thursday, February 23, 2012
The predicted surplus is about 2.5 per cent of the overall budget of $1.47 billion. The government also has a contingency fund of $78 million for the year. Peterson continues his plans for "building a sustainable territory" by living "within our means," he told the legislative assembly Feb. 22. "Everyone was skating fairly close to the edge of their available allocation in 2010-11," deputy minister Chris D'Arcy said in a conference with reporters ahead of the budget announcement. Nunavut doesn't have much room to move, with 92 per cent of its money coming from the federal government, Peterson said. The government is in talks to continue federal support, and although Peterson would like to see Nunavut "reduce our dependence on the federal government." The territory's economy is unpredictable, he said. This became apparent after Newmont's decision to close the Hope Bay gold mine introduced uncertainty about the mining sector. Other than the Nunavut Housing Corporation, one of the only departments seeing notably increased spending is the finance minister's other portfolio and the government's most funded department, Health and Social Services, which will get a six per cent – or $19 million – increase to $317 million. The government is also considering whether to split the department in two, he said. Cigarette tax goes up by $1 per pack A cigarette tax hike of $0.04 per cigarette or $0.06 per gram of loose tobacco may offset some of Health's costs. Under the tax, smokers will see a pack of 25 cigarettes increase by $1 as of Feb. 24. "Nunavummiut must smoke less," Peterson said. "Our lung cancer rates far exceed the Canadian average. Heart disease, stroke and tuberculosis rob Nunavummiut of their future." At about $16.25 per pack, only smokers in the NWT and PEI pay more for cigarettes, D'Arcy said. The tax is expected to generate $3 million, which will likely be used for smoking cessation and prevention programs. Cambridge Bay gets treatment facility pilot An existing building in Peterson's riding of Cambridge Bay will be used to provide residential addiction treatment as a pilot program for Kitikmeot residents, who could access 28 days of care. "You can't just treat people and send them home. You have to have support for them," he said. "The mental health folks are there, and the wellness centre group has had experience doing that over the years." If approved, the program would start April 1, and cost approximately $250,000 to $300,000. If successful, the drug, alcohol and gambling treatment program could expand to other communities, he said, hinting to Nunavut News/North that Iqaluit could expect some news within weeks. Limited response to infrastructure needs Nunavut's current housing shortfall would require $1 billion to fix, Peterson said. The Nunavut Housing Corporation budget increases this year by $10.6 million to $158 million. The budget also includes $11 million for public housing and $1.8 million for staff housing to cover utilities and maintenance costs, Peterson said. Facing a $6 billion infrastructure deficit over the next 20 years, D'Arcy said the government budget is limited in what it can to increase the available housing in Nunavut. "There is no magic bag of money anywhere," D'Arcy said of the Canada-wide infrastructure funding shortage, noting Nunavut has done what it can to take advantage of available resources, including the gas tax and Building Canada fund. "None of the Canadian jurisdictions have a solid plan on how we're going to wrangle this beast." With a debt ceiling of only $200 million, $140 million of which was spoken for as of December 2011, the government is considering ways it can increase its available funds for infrastructure. Including $95 million of capital allocations and $45 million of carryover from last year, $140 million is available for projects. A planned Iqaluit airport upgrade, Peterson said, "would punch right through the current debt ceiling." As a result, Nunavut is in discussions with the federal government to raise the debt limit, because Peterson suggests his department's "improved financial management" means Nunavut could manage a larger debt. Arctic College takes over Piqqusilirivik management After its first year, which was fraught with registration struggles and start-up delays, the $28 million Piqqusilirivik cultural learning centre in Clyde River is leaving Culture, Learning, Elders and Youth for management by Nunavut Arctic College. "It's a school," Peterson told Nunavut News/North. "Nunavut Arctic College is in that business. Not to take away from the cultural school's ability to provide training in culture and tradition. It would just be more to provide logistics of helping advertise the program, helping students enter the program, providing instructors and that sort of thing." He did not believe there were any plans to use the facility for anything other than Piqqusilirivvik courses. Peterson also said the government also plans to launch a communications campaign to promote the benefits of Nunavut's natural resources, including the sealing industry. Three new teachers will join Nunavut's roster, and the government is injecting $8 million into the budget to pay them and to cover the $7.8 million required to meet contract obligations. Nunavummiut will also have improved access to a mature graduation program, which will see life experience credited toward GED requirements, which will help people qualify for better jobs and for post-secondary education. The government also plans to examine ways to promote Inuit language, culture, and entrepreneurship across departments. The public procurement process will be rewritten to ensure Nunavummiut have a "reasonable prospect of winning bids" for government contracts, Peterson said.
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