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'Less service' from job cuts in budget
Alternatives North spokesperson says city will feel effects, Aglukkaq lauds exploration funding

Galit Rodan
Northern News Services
Published Friday, March 30, 2012

SOMBA K'E/YELLOWKNIFE
Despite calling the federal budget "Canada's plan for jobs, growth and long-term prosperity," the government will be slashing 19,200 federal civil service jobs through layoffs and attrition.

The job losses are one of many measures aimed at reducing Canada's deficit during the global economic downturn and creating what federal Finance Minister Jim Flaherty called a path to "sustainable, long-term growth."

Though a large proportion of the job losses are expected to occur in Ottawa, Yellowknife resident Suzette Montreuil of social justice coalition Alternatives North said Northerners will feel the effects.

The cuts "are still going to result in less service for Canadians," she said. "We keep talking about this myth of trimming the fat. I know a lot of federal public sector workers and I don't hear a lot of them saying they're sitting around and doing nothing. They're not just an expense. They're a service."

As expected, the age of eligibility for Old Age Security will increase gradually to 67 from 65 over a period of six years, from 2023 to 2029, meaning Canadians aged 54 and older as of March 31 will not be affected.

In his budget address, Flaherty told the House Thursday that the change was the result of a demographic shift among Canadians.

"Canadians are living longer and healthier," he said. "There are fewer workers to take their place when they retire. Canada has changed. Old Age Security must change with it."

Despite the demographic realities, Montreuil said she was concerned about how the change would affect seniors in the North.

"Anything to do with funding for seniors is always a significant Northern issue," she said. "It's difficult to understand, really, why you would go after seniors."

Departmental spending cuts, including $191.1 million over three years to the Heritage Department and $160.6 million over three years to the Department of Aboriginal Affairs and Northern Development, are expected to yield savings of $5.2 billion annually. The cuts to the Heritage department means CBC funding will be slashed by $115 million over three years - a 10 per cent reduction.

The cut that generated the most buzz, however, was that of the penny, which will be pinched right out of production. The Royal Canadian Mint will cease issuing pennies this fall.

"Pennies take up far too much space on our dressers at home," said Flaherty. "It costs a taxpayer a penny-and-a-half every time we produce a penny."

The penny will remain in circulation, however, and will retain its value for transactions.

Also on the chopping block is the Katimavik program, a youth leadership volunteer program that Montreuil said had "really benefited" Yellowknife in the past.

"The government is eliminating the Katimavik program, as it reaches a relatively small number of participants annually at a relatively high cost per participant due to the nature and duration of the experience," according to the 2012 budget document.

In a reform that is likely to be controversial, the government announced its "one project, one review" policy for major economic projects.

"We will implement responsible resource development and smart regulation for major economic projects," said Flaherty in his budget address. "We will streamline the review process for such projects, according to the following principle: one project, one review, completed in a clearly defined time period" of 24 months.

Federal Health Minister Leona Aglukkaq said the announcement was good news for the North, especially the mining sector.

"I think it's widely recognized in the NWT that the regulatory process is an obstacle to development," she said, adding that the Yukon's process is "modern and moving forward quickly."

The government has committed to investing $165 million in resource development over two years.

Aglukkaq said legislation would have to be amended to move forward in addressing some of the issues in the North.

"I have to wonder how that would work in the Northern kind of context where we have a variety of boards with different functions and land claim settlements," Montreuil said.

In the wake of an announcement last month that the NWT's debt ceiling has increased to $800 million from $575 million, the federal budget commits the government to changing the Northwest Territories Act, adding new regulations aimed at ensuring "consistent treatment of borrowing across the three territories and with their Public Accounts," though no further details are offered in the document.

Amending the act "will allow the territories to move forward in areas of infrastructure as they see fit," said Aglukkaq.

In another initiative that could benefit the North, a tax credit aimed at helping junior exploration companies raise money, which was due to expire tomorrow, has been extended for another year.

The 15-per-cent mineral exploration tax credit is an incentive to individuals who invest in mineral exploration. It is given in addition to regular tax credits mineral exploration companies give to investors through flow-through shares.

The government also committed $12.3 million over two years to continue to assess diamonds in theNorth.

Aglukkaq said Health Canada positions would be opening in Yellowknife and Iqaluit for the first time ever.

"Health Canada wants to enhance its presence in the North," she said. "Right now there's a huge void."

The federal government projects a balanced budget by the 2015-2016 fiscal year.

Western Arctic MP Dennis Bevington could not be reached for comment by press time.

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