Legislative Assembly briefs
Debt ceiling concerns finance minister
Elaine Anselmi
Northern News Services
Published Friday, February 6, 2015
SOMBA K'E/YELLOWKNIFE
The 2015-16 budget was released Feb. 5 but Finance Minister Michael Miltenberger was prodded with questions about the future of spending in the territory before the document was tabled.
"The minister has noted that we're looking at trying to increase our debt ceiling," said Inuvik Boot Lake MLA Alfred Moses on Feb. 4.
"If that doesn't go through, can I ask the minister, what is the plan of action should our debt ceiling not be increased?"
Miltenberger responded that, should the government be limited to an $800 million borrowing limit, there would be no capacity for any new projects including: the Mackenzie Valley Highway link from Norman Wells to Wrigley, the conversion of winter roads to all-weather roads and the exploration of energy cost reduction in Yellowknife and communities.
"We will be reduced to concluding the projects we have on our books to try to free up some capital," said Miltenberger.
"We have $350 million allocated, roughly, for the Stanton renovation, for example, which is going to take up a lot of our room. We have the conclusion of the Tuk-Inuvik highway and the fibre optic link. So, without the borrowing limit increase, we are going to be severely constrained for the life of this government and for the next."
Dolynny outs cabinet for travel
The final sitting of the 17th legislative assembly saw fingers pointing at cabinet for its $750,000 trip to China, Japan and Ottawa to promote NWT tourism and resources.
"One cannot avoid, as of late, observing all the travelling occurring within our government," said Range Lake MLA Daryl Dolynny.
With a population base of 40,000 and a limited budget, Dolynny said the government is obligated to proceed with utmost caution in spending. He referenced the previous fervent debates around the cost of making junior kindergarten available in the territory.
"Although this JK roll-out cost only a mere $750,000, it was deemed impossible for this government to find money from within current budgets, and sadly, to this day, they continue to dig their heels in defiance," said Dolynny.
"I'm sure many of us have been asking the question, if they, being cabinet, can find three quarters of a million dollars for travel to China and Ottawa from within their budgets, then surely we can do the same for such ill-funded new initiatives as junior kindergarten."
Lafferty calls RRSPs 'rainy day fund'
Bringing forward a concern of her constituents, Frame Lake MLA Wendy Bisaro questioned income support policies in her member's statement, saying they are forcing residents to become reliant on the government.
"Income support policy demands that the resident cash in any extra money, money such as an RRSP or the value of a vehicle. Use that up before income support can be granted, says (the Department of) Education, Culture and Employment (ECE)," said Bisaro.
"We as a government seem determined to force people into poverty so we can dole out a few dollars to help them get by."
Directing her question toward ECE Minister Jackson Lafferty, she asked whether it was the department's intention to force people into poverty, or lift them out of it. Noting that the policy had been this way for many years, Lafferty said RRSPs are a "rainy-day fund," therefore residents should be using these resources before seeking government assistance.
"That the Registered Retirement Savings Plan is considered a rainy-day fund. I would like to suggest that it's going to be raining awfully hard when people reach retirement age, and if they have no pension from their work, which many of our residents do, then it's going to be raining very hard," said Bisaro.
"I can't accept that rationale."
The program is based on need and has to be fairly divided among all residents, Lafferty said.
"(While) an individual has an RRSP, most of the Income Assistance clientele do not have anything," he said.
"So we must be fair to that clientele. That is part of the reason we have regulations in place, polices in place."
Lafferty added that major changes had been made to the program in 2007 and 2011, and it would again be reviewed 2014-15.
