Build us a road, Whati chief says
Federal government meets Miltenberger in the middle, ups GNWT borrowing limit to $1.3 billion
Shane Magee
Northern News Services
Monday, April 27, 2015
SOMBA K'E/YELLOWKNIFE
Now is the time to build an all-season road to Whati says Chief Alfonz Nitsiza.
Finance Minister Michael Miltenberger, left, and Premier Bob McLeod speak during a news conference April 22 about the federal government’s decision to increase the GNWT debt ceiling. - Shane Magee/NNSL photo |
With the announcement last week that the federal government will increase the territorial borrowing limit by $500 million, he said the road must be seriously considered.
"I strongly feel that Whati should be a top priority," Nitsiza told News/North, adding it would provide construction jobs and provide an economic boost to the community of about 500 people, currently only accessible by air or winter road.
It could make building a new hydro-electric generation facility near the community cheaper and easier, he continued.
The GNWT will have greater latitude to consider such requests once the borrowing limit increase has been approved.
Finance Canada is also considering whether to change the way self-liquidating debt counts against the debt ceiling. Self-liquidating debt essentially is money borrowed
that pays itself back over time.
One example of self-liquidating debt is the Northwest Territories Hydro Corporation's $226.3 million debt. If Finance Canada allows for this change, this money would no longer count toward the debt ceiling because power corp. ratepayers are paying down the debt via their power bills.
The GNWT predicted in its 2015 budget it would be $85.6 million shy of the $800 million debt ceiling imposed by the federal government.
Increasing the ceiling to $1.3 billion and the self-liquidating change will give the territory much more wiggle room to consider major infrastructure projects that require borrowing money.
"It will allow us to look at projects, big projects," Finance Minister Michael Miltenberger said April 22 during a news conference with Premier Bob McLeod at the legislative assembly.
They both said no money has been earmarked for specific projects but made it clear the priority will be to invest in transportation and energy infrastructure to reduce the cost of living in the territory.
The only references to specific projects were the replacement of diesel generation with alternative sources in Yellowknife and building the first section of an all-weather road to the diamond mines northwest of the city.
Building about 150 km of all-weather road to MacKay Lake is projected to cost $300 million.
Miltenberger suggested the GNWT is examining whether a deal could be reached with the mines to cover construction and maintenance costs.
That could mean the debt taken on for construction could be considered self-liquidating.
Nahendeh MLA Kevin Menicoche said he'll oppose that project unless there's funding also kicked in from industry.
"For me, just like the Tuk road, it takes away spending in my riding," Menicoche said.
He pointed to two projects in his riding he wants to see get funded - a new health centre in Fort Simpson and a the rebuilding of sections of Highway 7.
Menicoche said he's not too worried about the GNWT's ability to borrow significantly increasing and what taking on more debt could mean.
"I'm actually in favour of the increase so that we can address our infrastructure and our infrastructure deficit," he said.
Miltenberger told reporters any projects undertaken have to be affordable and that the GNWT will maintain its credit rating.
"We've shown that we're very fiscally prudent managers of our money and I don't have any concerns that we're going to go out and blow it all," McLeod said.
Nitsiza, the Whati chief, said surveys carried out in the community show around 80 per cent support building an all-season road.
There are concerns from residents about liquor and drugs coming into the community should an all-season road be built.
"Those things are not going away," he said.
"We live in a more modern setting where those things are not going away."
Instead he wants to focus on the economic opportunities he sees a road would bring to the community.
"We don't have any jobs that we can hire people for, so we have to go out and find something or have development of some sort," he said. "With the road there would be employment."
