Spending drop questioned
Capital budget on infrastructure declines 78 per cent
Shane Magee
Northern News Services
Friday, October 21, 2016
SOMBA K'E/YELLOWKNIFE
The territorial government introduced its infrastructure budget last week but one MLA is questioning why it shows the government cutting capital spending by 78 per cent over four years.
Frame Lake MLA Kevin O'Reilly has questioned why the capital budget shows infrastructure spending on the decline. - James O'Connor/NNSL photo |
The spending plan still to be approved by MLAs outlines how money will be spent on infrastructure in the fiscal year starting April 1 - things like security improvements to the North Slave Correctional Centre, the new Stanton Territorial Hospital and expansion of Ecole Allain St-Cyr.
This year, the GNWT expects to spend up to $488.8 million. The new budget sets a target for 2017-18 of $266 million, dropping to $107 million in 2019-20.
Frame Lake MLA Kevin O'Reilly questioned the drop when the budget was reviewed Monday by a committee of MLAs.
O'Reilly pointed out Finance Minister Robert C. McLeod has said spending is being slashed now to allow for greater infrastructure spending in the coming years.
The minister pointed out the 2019-20 budget is only a projection so far and may change in the following years. It's an explanation O'Reilly said he accepts in a follow-up interview with Yellowknifer, though he still questions the message it sends.
"What messages are you sending to the public and regular MLAs when a day or two earlier you've talked about the need to cut programs, services and staff to reach $150 million target so you can invest more into infrastructure, but your capital budget doesn't actually show that investment - there's something wrong," he said.
O'Reilly and other MLAs also pointed out the capital plan lists $91.7 million in spending for a department that doesn't exist - the Department of Infrastructure. The government plans to only introduce this department in its spring budget by merging transportation with public works and services. The government introduces the capital budget before the operations budget to allow companies time to prepare for the short summer construction season.
"As far as the amalgamation goes, we're not assuming anything," McLeod said when questioned about the department issue by Deh Cho MLA Michael Nadli on Tuesday.
McLeod said the government will include the amalgamation in the operating budget, which would come into effect the same day as the capital budget - April 1.
This year's spending plan includes a number of tourism and park related projects in the capital region: Fred Henne Territorial Park causeway improvements; replacement of the Fred Henne day use lookout and playground; replacement of the boat launch at Pontoon Lake and Prelude Lake; and a boardwalk and lookout point at Yellowknife River Territorial Park.
Those projects are among $3.7 million included in the Department of Industry, Tourism and Investment spending.
Another big project involves the Northwest Territories Housing Corporation carrying out "major" retrofits to 103 units of public housing in Yellowknife.
Education, Culture and Employment is expected to spend $23.6 million. That includes a gym for Ecole Allain St-Cyr, two specialized classrooms and
two regular classrooms.
Projected Health and Social Services spending includes an 18-bed extended care unit scheduled for completion in 2018-19, though it's not yet clear where the facility would be located.
The Department of Justice expects to spend $16.8 million, which includes fencing upgrades and more cameras at the North Slave Correctional Centre. An inmate escaped from the facility in August by exploiting a "gap" in the physical security. He climbed a hand railing and jumped on the roof - running across it to an area of the building that isn't fenced in and then fleeing into the city.
The department also will undertake more renovations at the Yellowknife courthouse.
How much will each of these various projects cost? The public isn't allowed to know yet.
Unlike how most provinces - and even the City of Yellowknife - present their capital budgets, the GNWT does not include cost estimates of each project in the budget, rather including a lump sum by department.
Asked about the issue last year, a department spokesperson stated the figures are withheld so targets for tendering bids aren't provided in advance.
