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NUNAVUT
The Pangnirtung harbour will be completed. The territory will soon manage and maintain its Arctic ports.

Leona Aglukkaq: "I think this budget is very good for the North." - NNSL file photo

Those are some of the highlights of the federal budget delivered by Finance Minister Jim Flaherty in the House of Commons on March 29. Titled Jobs Growth and Long-Term Prosperity, the budget calls for the elimination of the penny, for the eligibility age of old age security to increase to 67 years old from 65 by 2029 and for cuts to the Canadian Broadcasting Corporation.

Closer to Nunavut, the remaining $5.8 million – out of the $17 million – to complete the construction of the Pangnirtung harbour was approved for this fiscal year.

Fisheries and Oceans Canada will complete the transfer of responsibility for managing and maintaining Arctic ports to Nunavut and the Northwest Territories, something Ottawa had committed to in 2000.

Nunavut Finance Minister Keith Peterson said the GN will need to contact the federal department to find out what it means by that.

"That was an interesting comment in there, when they are talking about transferring responsibility. We don't have any details on that," he said. "It would be a fairly significant responsibility for the Government of Nunavut."

The department of Aboriginal Affairs and Northern Development will see its budget decrease by $26.9 million for the 2012-13 fiscal year, $60.1 million for 2013-14 and $165.6 million for 2014-15, the budget states.

Nunavut MP Leona Aglukkaq said the budget is about creating jobs in the long-term. For instance, Health Canada will be opening up positions in Nunavut.

"I think this budget is very good for the North," she said. "The job growth in the North we will see is going be in mining sector."

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.

She added transfers to the territorial government are not being cut, with Nunavut receiving $1.3 billion.

Peterson described the budget as prudent.

"He (Flaherty) is working his way out of a deficit situation, so I thought that was good. We've done it ourselves," said Peterson. "We weren't disappointed but we know it's a prudent budget."

The federal government proposes to amend the Nunavut Act to provide clear borrowing rules, ensuring consistent treatment of borrowing across this and the other two territories. Ottawa had previously announced it is doubling Nunavut's borrowing limit to $400 million.

Ottawa is also investing $5.2 billion over the next 11 years to replace and refit the Canadian Coast Guard's vessel and helicopter fleet.

Ottawa plans to have a balanced budget in the 2015-16 fiscal year. The deficit for 2011-12 is projected to be $8.5 billion lower than the previous fiscal year and is expected to decrease by an additional $3.8 billion in 2012-13, according to the budget.

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