NUNAVUT
Territorial Finance Minister Keith Peterson spoke with Nunavut News/North about the federal budget and its implications for Nunavut while he attended a meeting of Kitikmeot last week.

Under construction The Government of Nunavut is currently in the process of building 258 new public housing units in 14 communities. Here is a breakdown of the number of units by community: Iqaluit 33 Repulse Bay 20 Arviat 45 Clyde River 20 Coral Harbor 10 Kugluktuk 20 Baker Lake 30 Rankin Inlet 20 Whale Cove 5 Taloyoak 10 Cambridge Bay 10 Iglulik 5 Pond Inlet 15 Kugaaruk 15 Source: Nunavut Housing Corp.

He wasn't impressed despite accolades by Conservative Nunavut MP Leona Aglukkaq, who considers this a "very good budget for Nunavut."

Aglukkaq cites the debt cap rise, an increase in federal transfer payments and ongoing infrastructure programs available to all jurisdictions as cause for her positive review.

"The decision on the increase of transfer payments to the territorial government, and separate from all of that all the other infrastructure budgets, and separate from all of that is the borrowing limit.

"So when I say the North is well positioned, there's a lot of flexibility for the Nunavut government to work with those levers now on those areas of what their priorities are for them. The increase in transfer payments allows them flexibility to manage the territorial government's priorities," she said.

However, transfer payments are predetermined arrangements, based on complicated formulas already in place and not special to this particular budget. Peterson says Nunavut now has a good credit rating, which partly depends on the stability of transfer payments. However, these payments, for a territory without its own power to collect taxes, covers basic needs - programs and

services.

So, from Peterson's perspective, the federal budget was business as usual except an increase in the debt cap - up to $650 million from $400 million. But that doesn't mean the GN can go on a spending spree.

"We're not off awarding big contracts. We've got to be very efficient and effective with our money," Peterson said.

The problem with Nunavut is that it needs significant and committed investment now, much like the provinces enjoyed as they joined Confederation. That isn't happening in the profound way it needs to in order to meaningfully improve the lives of Nunavummiut.

"We're treading water here ... unless we get some serious assistance from Canada ... I'm not just saying give us money. I'm saying invest in us, then we'll contribute. For example in Cambridge Bay, they're building the Canadian High Arctic Research Station. That's a significant investment. Things like that can really help people."

In Cambridge Bay, at the mayors meeting, a few of the mayors turned up the heat on Peterson.

"I was making a presentation and three of the four or five mayors were getting on me a little bit about housing in their communities, critical housing needs in their communities. The MLA for Gjoa Haven was sitting in the audience, Tony Akoak, who has raised the issue many times in the house about housing for Gjoa Haven ..."

Akoak, MLA for Aglukkaq's home community of Gjoa Haven, raises the issue every chance he gets. On March 12 in the legislative assembly, he said, "I rise today to speak about the ongoing housing shortage in Gjoa Haven. As you will recall, I raised this issue during our recent fall sitting. I will continue to raise it in this house until the situation begins to improve in Gjoa Haven."

Akoak went on to describe "shocking situations" of overcrowding, small homes that have more than a dozen people living in them in a community that did not benefit from the most recent round of housing allocations.

"I do recognize that Gjoa Haven is not unique and I do understand that all communities in Nunavut face housing shortages ..." Akoak said.

"We are all very much aware of the social problems that result from housing shortages and overcrowding. Substance abuse, elder abuse, health problems, and truancy are all made worse by overcrowding and homelessness.

"It is important that our communities have confidence that their needs will not be neglected forever."

The GN has twice asked for $300 million to address a situation that see some Nunavut families sharing one small house with up to 20 people. Peterson says the first time this happened was three years ago.

"In one of minister Flaherty's budgets, I think it was 2013, they gave us $100 million and we're building 240 or 250 houses."

Peterson put another request in December, again for $300 million.

"We didn't get anything. Everyone knows we need between 3,500 and 4,000 housing units in Nunavut. There are long waiting lists in most communities."

Peterson says he will continue to lobby the federal government for help with housing.

In November, Nunavut News/North reported that it would take $1 billion to correct the housing crisis.

But housing is only one of the infrastructure problems facing the territory, albeit the one most concerning. Power plants, airports, health centres and waste facilities are also high on the list of needs. Federal infrastructure programs, which Aglukkaq mentioned, are accessed by submitting proposals. Peterson says the GN has several proposals being considered, but he can't speak about them in case they don't come through.

Most concerning is the state of existing infrastructure and its history.

"When Nunavut was established in 1999, we inherited a lot of aging infrastructure. A lot of the housing and infrastructure didn't appear to be well-maintained when we took over," he said. "Our power plants, for example, were well along in their life spans. They've only gotten older. All we're doing now is asset management - putting a new generator here, a new generator there. Only very infrequently do we have sufficient money to build a new power plant in any community."

There is the possibility of accessing the fund for infrastructure of national significance.

"Something that might support the private sector, so they can then develop mineral resources. We have all these minerals, for example in the Slave Geological Province over between Yellowknife and the Kitikmeot, but you can't get to them because there are no roads, no airports, no marine infrastructure - and if you can't get to the assets, the resources, they're really of no value to you.

"We need ports, we need roads, we need airports - we'll continue to chip away at all that."

Meanwhile, Peterson will persevere, patiently reciting his mantra: "Invest in Nunavut."

"If you invest in Nunavut, put people to work, they're going to pay taxes. They will start contributing significantly to our gross domestic product in Nunavut and Canada. And you can take people off the income support. You're creating some economic wealth and prosperity for people."

The federal budget did offer a sweet treat of significant importance for Inuit - a $5.7 million investment in a seal skin certification and marketing scheme Aglukkaq says is currently in development.

However, the potential sale of seal skins, no matter how exciting after years of fighting with the European Union, will not alter the fact that Nunavut has been in dire need of homes for years.

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