$254 million in project spending
Lots of money for highways, little for education in 2014-15, but figure likely to rise
Laura Busch
Northern News Services
Published Monday, October 21, 2013
NORTHWEST TERRITORIES
Highway construction will receive the bulk of infrastructure dollars from the GNWT over the next year, according to the 2013-14 capital plan tabled by Finance Minister Michael Miltenberger on Oct. 17.
Throughout the life of this government - which passed the halfway point last week - Miltenberger has maintained a plan of fiscal restraint during the first two years and an increase in spending in years three and four.
The release of the main estimates is the first chance for the public to see just how much more money could be available during the 2014-15 year.
The $222.7 million earmarked for infrastructure investment in the 2014-15 Main Estimates is significantly more than the $123.4 million budgeted last year, but falls short of the actual amount spent by the GNWT on infrastructure projects last year - $283 million, suggesting the figure for next year will be much higher.
Miltenberger announced an additional $31 million to be added for NWT Housing Corporation infrastructure just hours after the capital budget was tabled - bringing the total planned infrastructure investment in 2014-15 to $254 million so far.
While Committee of the Whole was discussing the budget shortly after it was tabled, Mackenzie Delta MLA Frederick Blake Jr. said he was concerned the capital budget is little different from last year, despite promises that the assembly could count on an additional $50 million for infrastructure projects in 2014-15 and 2015-16.
Miltenberger maintained that the latest budget contains a significant increase over last year, and that more money is likely to be allocated to infrastructure projects before the final 2014-15 budget is approved next year.
Highway and winter road construction will receive $90 million in the next fiscal year, the bulk of which will go toward the construction of the Inuvik-Tuk Highway.
Blake said constituents in his riding are concerned about the highway project, and asked whether there was sufficient training done before construction began to allow those who live in the region to benefit from road construction jobs.
Those details will be disclosed in due course, said Miltenberger.
Other concerns raised by regular members included a perceived lack of funding for education and schools.
"We have some startling figures that speak to our failures in the small communities," said Deh Cho MLA Michael Nadli.
Throwing money at the problem may not be a complete solution, but having good-quality schools will make both teachers and students more excited about the learning process, he said.
"I'm disappointed in the shortfall on this regard," said Nadli.
In response, Miltenberger pointed to planning studies money for the schools in Colville Lake and Trout Lake. Both of these schools are currently in a state of disrepair and have been focal points many times in the legislature.
Once the studies are complete, the assembly can talk about allocating money for construction, said Miltenberger.
Included in the budget is funding to continue with construction on the new health centre in Fort Providence.
The main concern for the finance minister is addressing the territory's current $3 million infrastructure deficit, which he said will be done by increasing infrastructure spending by $50 million in 2014-15 and 2015-16, and then further increasing it by $100 million in 2016-17, which will be the infrastructure budget inherited by the 18th assembly.
Estimated infrastructure spending for 2014-15
Highlights:
- $90 million - Highway and winter road construction, including the Inuvik-Tuk highway
- $62 million - Health facility replacements and upgrades, including planning for Stanton Territorial Hospital project.
- $4 million - Energy efficiency upgrades to existing GNWT buildings
- $3 million - NWT parks improvements
Budget breakdown by department:
Percentages are rounded to the nearest tenth of a per cent.
- 40.6 per cent - Transportation
- 27.8 per cent - Health and Social Services
- 12.8 per cent - Public Works and Services
- 12.5 per cent - Municipal and Community Affairs
- 1.8 per cent - Justice
- 1.7 per cent - Education, Culture and Employment
- 1.2 per cent - Industry, Tourism and Investment
- 1 per cent - Environment and Natural Resources
- 0.2 per cent - Finance
- 0.2 per cent - Human Resources
- 0.15 per cent - Legislative Assembly
Sources: Capital Estimates 2014-15; Finance Minister Michael Miltenberger
