OTTAWA
The first Liberal budget released last week keeps promises to raise the Northern Residents Deduction by 33 per cent and allocates billions on First Nations.
Key budget points
- Northern Tax Deduction - increasing by 33 per cent as promised in last fall's federal election
- First Nations - $40 million for national inquiry into missing and murdered aboriginal women; $1.2 billion for First Nations, Inuit and northern communities
- Old Age Security - age benefits kick in returned to 65
- Mining - 15-per-cent Mineral Exploration Tax Credit extended for another year
- Parks - $42 million to develop Thaidene Nene National Park on Great Slave Lake and another park in Nunavut; $21.6 million to pave highways through Wood Buffalo National Park
- Education - $3.9 million more for the Northern Adult Basic Education Program to support delivery of adult basic education by colleges in the territories
- Health - $13.8 million per year for expansion of Nutrition North food program
Source: Federal budget
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To pay for this, Federal Finance Minister Bill Morneau's budget projects a $29.4 billion deficit in 2016-17 with no expectation of returning to a surplus within the next four years, breaking election promises to keep deficits around $10 billion and get out of the proverbial red.
NWT Chamber of Commerce executive director Mike Bradshaw panned the deficits.
"Over the term of their office, the Liberals are going to add another $100 billion or more to the deficit with absolutely no plan in how to turn the tap off," he said last week.
For the North, there's an increase in the maximum daily residency tax deduction to $22 from $16.50 to address the cost of living. The measure will be effective Jan. 1 and is expected to cost the federal government $255 million over five years. Liberal NWT MP Michael McLeod said he's pleased the budget followed through on commitments to help the North.
Territorial Finance Minister Robert C. McLeod said in an e-mail statement he's also pleased with the change.
"This will put money in the pockets of Northerners," he stated. The news release from the GNWT pegs the amount territory residents will save at $6.8 million.
Premier Bob McLeod stated in a news release he hopes the federal government will make further changes to the deduction to tie it to changes to the cost of living.
"I hope we can persuade the federal government to consider indexing the Northern Resident's Deduction or at the very least examine the rate on a semi-annual basis, instead of on an ad-hoc basis," the premier, who is also the MP's brother, stated.
Liberals will spend an additional $1.2 billion on First Nations, Inuit and Northern communities. That includes $732 million over two years for housing needs. About $12 million will be spent in the Northwest Territories over the next two years for housing, something MP Michael McLeod believes is needed.
"That's something that I heard lots about through my campaign in almost every community," he said.
Dene National chief Bill Erasmus is also pleased with the budget.
"We're satisfied with the pronouncement of the financial commitments in the federal budget to indigenous communities in the Northwest Territories and across the country," he stated.
The funding includes $40 million over two years for a national inquiry into missing and murdered indigenous women. Erasmus stated such an inquiry "must include an international component such as the United Nations to monitor and provide outcomes that are attainable."
A further $10.4 million over three years has been slotted for renovations and construction of new shelters for victims of family violence in First Nations communities.
Also, Indigenous and Northern Affairs Canada will get $10.7 million over two years for renewable energy projects in communities that generate power with fossil fuels. The Liberals plan to spend $120 billion over 10 years on infrastructure. There are two phases of spending: This first will add about $6.8 billion more than what's already on the books over the next two years for public transit, water, waste management and housing infrastructure. This will be followed by bigger projects to shift to a low-carbon economy in a second, eight-year plan.
The budget commits an additional $111.8 million over two years in the Homelessness Partnering Strategy, which is the fund Yellowknife is tapping for its housing first plans to move people from emergency shelters into housing.
Aklavik Mayor Charles Furlong, president of the NWT Association of Communities, welcomed commitments to enhance broadband service, cultural and recreational infrastructure and address the high cost of living in the North.
"We will continue to monitor the implementation of these announcements and ensure that our member communities are represented as strongly as possible," he said in an e-mail statement.
Nutrition North is set to receive $13.8 million per year for expansion of the food subsidy program to all Northern isolated communities.
As well, there's $500 million over five years for a new program to extend and enhance broadband Internet service in rural and remote communities.
Given the "challenging time" for small mineral exploration companies, the budget extends the 15-per-cent Mineral Exploration Tax Credit for another year at a cost of $20 million. Bradshaw said the NWT and Nunavut Chamber Of Mines had asked for the credit to be extended for 10 years.
More than $42 million will be set aside for developing Thaidene Nene National Park and another proposed park in Nunavut.
The Liberals are also doubling down on a Conservative election promise to chip seal Highway 5 From Fort Smith to Wood Buffalo National Park for approximately $14 million. The budget has set aside $21.6 million to pave highways through the park. As well, the government is setting aside $19 million over five years to gather existing research and traditional knowledge of the Arctic environment and conduct new research, which the budget states will help assess the potential environmental impacts of future oil and gas activity in the Beaufort Sea.
The budget also allocates $3.9 million more for the Northern Adult Basic Education Program to support delivery of adult basic education by colleges in the territories.
Among the budget items affecting seniors: The Harper government's increase to the eligibility age for Old Age Security and Guaranteed Income Supplement benefits to 67 from 65 has been scrapped. It will remain at 65.
The government has also committed to continuing discussions with the provinces, territories and the public on enhancing the Canada Pension Plan.
- with files from John McFadden
