NORTHWEST TERRITORIES
The Conservative government in Ottawa is committed to helping train a larger skilled workforce in Canada and funding infrastructure projects, such as the Inuvik-to-Tuktoyaktuk highway, according to federal Finance Minister Jim Flaherty.
Michael Miltenberger: Feds living up to promise of keeping transfer payments stable. |
Flaherty made his comments in the House of Commons in Ottawa March 21 while giving his 2013 budget speech.
However, Western Arctic MP Dennis Bevington said with very little new spending - $75 million for 2013-14 and $249 million promised for 2014-15 - there is not much good news in Flaherty's budget plan.
"I think, at a time when the economy is doing as poorly as it is, a third austerity budget in a row is going to be very difficult for recovery - it's not going to aid the recovery. We definitely need more infrastructure investment in the Northwest Territories."
While the $200 million in federal funding for the 137-km Inuvik-Tuk highway is good for the territory, the NWT also needs an all-weather road from Wrigley to Norman Wells and a power transmission line for the South Slave to take full advantage of the Taltson hydroelectric dam, said Bevington.
Both of these projects are expected to cost hundreds of millions of dollars.
Highlights in the budget include the establishment of a Canada Job Grant to help fund apprenticeship programs, a revamped Building Canada Plan to improve transportation infrastructure, and a Venture Canada Action Plan to help Canadian entrepreneurs.
The Canada Job Grant aims to support apprentices, who may apply for the grant, which will give up to $15,000 per person for training - $5,000 provided by the federal government, $5,000 from the territorial government and $5,000 from the employer.
NWT Finance Minister Michael Miltenberger said March 21 the GNWT will be looking at how to take advantage of this federal funding to increase financial support for Northerners who wish to receive certification in the skilled trades.
"In addition to that, we are going to be supporting the use of apprentices in federal construction projects and maintenance contracts," said Nunavut MP Leona Aglukkaq March 21.
"It's not new money, it's redirected money," said Bevington on the federal government's investment in this grant program.
The money is coming from the Labour Market Agreement program which was created in the 2007 federal budget. This program is set to expire in March 2014.
Bevington also questioned the benefits of the grants. Large, profitable operations already offer training to workers, so would this cause the federal and territorial governments to subsidize existing training, he asked.
"Also, will it be affordable for small businesses?" asked Bevington.
In the NWT, seven new mines could start production by 2017, increasing the need for mine training programs in the territory, said Mike Bradshaw, NWT Chamber of Commerce executive director.
Federal cuts to Mine Training Society funding on March 31, 2012, through the Aboriginal Skills and Employment Partnership program have not yet been replaced.
"I think this government has really done a good job of funding training organizations over the past, certainly two terms, perhaps longer than that," said Bradshaw. "But the needs for training in the Northwest Territories are quite unique. We prospect eligible trainees in small communities and then help them with things as simple as numeracy and literacy skills. It's a very expensive process - you're developing a workforce one person at a time."
"I think we have to make our own case in Ottawa - and it's a pretty compelling case given the need in the mining sector - to get more people into the workforce," said Bradshaw.
After facing down the "worst recession in a generation," the federal government is promising to balance its books by 2015, Flaherty said in the House of Commons.
It will do so without reducing the amount of transfer payments to the territory, including $1.2 billion this year in territorial formula financing, nor will it cut health or social transfer payments. Flaherty also promised not to increase taxes in the coming fiscal year, however, the federal government is tightening "tax loopholes," which Flaherty said should save the Government of Canada $4.4 billion over the next five years.
For Miltenberger, news that transfer payments will remain stable - with or without added revenue promised by a final devolution agreement - is assurance the federal government is living up to its promise to not "balance the budget on the backs of the provinces and territories."
"He made us a commitment 18 months ago now and he's honoured that here. Of course, we greatly appreciate that," Miltenberger said.
Next, the House of Commons will go into four days of debate on Flaherty's budget plan. The official opposition, the New Democratic Party, will then move for amendments to the plan, and then the Liberal Party will have a chance to propose its own amendments.
The proposed amendments and proposed budget plan will then need to pass through the House of Commons. At this point, Flaherty may introduce his budget implementation act. This is expected to happen in Ottawa next month.
