Budget talks not all doom and gloom
Audience told declining resource revenues call for prudent action
Shawn Giilck
Northern News Services
Published Thursday, December 4, 2014
INUVIK
Finance Minister Michael Miltenberger visited Inuvik Nov. 18 for a budget consultation that left many of the 20-plus people in attendance feeling a little down.
Finance minister michael miltenberger: led a budget discussion Nov. 18 at the Mackenzie Hotel.
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Miltenberger and several staff members in the department painted a sombre picture of the state of finances in the NWT, due mostly to declining resource revenues.
Miltenberger told the audience that some very careful management is required over the next few years to balance promoting economic growth with controlling expenditures and debt.
That's in accordance with one of the GWNT's top fiscal planning principles, which is "the strength of economy will determine the level of revenues which are available for programs/services over the long term."
The GNWT must also "recognize and plan for the cyclical nature of revenues," he continued.
"We're still a very resource-based economy," Miltenberger said. "That means fluctuation."
"The GNWT spent $1.5 billion on capital projects in 2014," Miltenberger said. "Another $1.6 billion was spent on programs and services."
Those capital projects don't include some mammoth projects, such as the Inuvik-Tuk Highway, he added. Those are placed in an individual category due to their scale.
"We've taken on some very large projects that are not included in the regular capital projects," Miltenberger said.
He also touched on the fairly stagnant population growth in the NWT, saying "population growth depends on the economy."
Unlike what has been the case for some time, Miltenberger said the NWT government - and businesses by extension - are no longer the "employer of choice" for many people, who instead are flocking to Alberta and Saskatchewan.
Predictions are that by 2016-2017 the GNWT will be very close to borrowing money to help finance its programs and obligations, and that's "contrary to policy."
"We want to concentrate on what the right conditions for economic growth are," he said.
Miltenberger said the issues of managing the economy "help to keep him and his staff awake at night."
Miltenberger said one of the key factors in managing the economy is the government's attempt to have its borrowing limit raised.
Energy issues were one of the hot-button topics during the question and answer session following the presentation.
"We need more renewable energy," said Andre Ouellet, who added the GNWT was "20 years behind the times" in pursuing projects and technology.
"We're too reliant on oil and gas," he added.
Miltenberger bristled a little at the line of questioning, saying "we're actively pursuing energy opportunities and alternate energy.
"If we get our borrowing limit raised we are prepared to look at energy issues."
Dave Malcolm suggested that research indicated wind power is a viable option in the Western Arctic region of the NWT, but isn't viable further south. That means a one-size-fits-all solution isn't viable for the NWT.
After the meeting, one of the spectators, Simon Jozzy, said he was a little disappointed at the style of meeting.
He said he's attended the consultation sessions over the last two years, since they were introduced in 2012, and the format had been a little more of a roundtable discussion than simply a presentation, as this meeting was.
