EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
In this regard, Mr. Speaker, this government will continue to work cooperatively with the other two territorial governments to get a fair and adequate deal from the federal government so we can better deal with our major social, economic, and fiscal challenges.
It will remain paramount to manage all future pressures within our available financial resources.
This is a difficult balance for a government to achieve.
We need to move ahead in solving problems which require additional and sometimes significant new amounts of funding, without spending money we do not have.
We must achieve this balance.
We will continue to look for the best way to do things.
We will continue to consider unique Nunavut solutions to some of our pressing social and economic problems.
Much has been done in this regard.
Over the coming months, the members of the Legislative Assembly will be devoting their energies to the consideration of further policy and program changes to improve the well being of Nunavummiut.
I will now provide a fiscal update for the 2003-04 year before outlining our plans for this year.
Mr. Speaker, as a result of significantly higher than anticipated federal transfers, projected total revenues for 2003-04 have been revised upward by $49.2 million to $853.7 million.
This increase is mainly the result of increases made to Nunavut’s population estimates from the 2001 Canada census.
The population adjustments affected the years 1999 through to 2003 and resulted in large prior year increases to transfers.
On the expenditure side, total budgeted requirements have increased to $909.9 million, or $66.8 million above what had been originally allocated to spend.
Over $42.0 million of this increase was for capital projects.
Taking these changes into account, an operating deficit of $29.2 million is now anticipated for the 2003-04 year.
This compares to the $11.6 million deficit originally budgeted.
This deficit will be financed out of the government’s cash reserves which accumulated during the first five years of operation.
The fact that the government did not have to borrow for its operations during the first five years was a significant accomplishment for the First Legislative Assembly.
We intend to continue to act in the same financially responsible manner, Mr. Speaker, but first I will outline some of Nunavut’s challenges.
Our challenges were great when the territory was formed in 1999, and they remain large now as we begin the second government mandate.
Government spending has been driving our economy for the last five years.
But now that the main functions of government are established, the growth in government spending will slow down.
We must change the current heavy reliance on the public sector.
We need to develop an economy that relies also on the private sector to make a more significant contribution, an economy that will support and stimulate development in both the traditional and wage-based economies; one that will provide choices in employment for Nunavummiut.
Mr. Speaker, this can not happen overnight, and the stage needs to be properly set to ensure that we have a reasonable chance of success.
We are at an early stage in our development.
We still have significant needs in key areas that are critical to building our economy, which are well documented in The Naujaat Challenge.
One thing that makes Nunavut unique in Canada today is that we are struggling with the early stage of our development.
This is a stage that most Canadian jurisdictions, including the other two territories, faced a long time ago.
The serious infrastructure deficit that is hindering our social and economic development is well known.
Communities continue to struggle with infrastructure needs.
But, Mr. Speaker, we are moving ahead.
The Government of Nunavut is a leading partner in the Nunavut Economic Forum.
This organization, made up of over 22 organizations including NTI and the federal government, will implement the Nunavut Economic Development Strategy which was released last fall.
The recent Federal Budget announced a five-year commitment to a new Northern Strategy, which will invest $90 million in northern economic development across the three territories.
We hope a major portion of this new funding will be invested in Nunavut’s economic priorities.
We have started to work with the federal government on several infrastructure initiatives and we are seeking their cooperation on others.
As all Members of the Legislative Assembly know, at the center of our challenges is the vital need for more housing.
Housing is extremely expensive in Nunavut.
Most Nunavummiut live in subsidized housing because they lack the resources to afford their own home.
This has meant overcrowded homes for many Nunavummiut, which in turn contributes to other social and health problems.
Recently the National Aboriginal Housing Association endorsed Nunavut’s urgent requirement for the federal government to reinstate a sustainable social housing program for Nunavut.
The government is working with NTI to present our case for more federal assistance in dealing with our housing situation.
We must have full authority and responsibility over our resources, through a devolution agreement.
As a result of recent discussions between Premier Okalik and the Minister of Indian and Northern Affairs, Mr. Speaker, we are very pleased that the Government of Canada is now committed to such an agreement.
It will give us authority to levy and collect resource royalties and other revenues from our natural resources.
It will give us more control over the resource development plans and allow us to maximize economic benefits for our territory.
We are committed to getting this agreement during this current mandate so we can further develop our economy and help provide employment and other benefits to people in Nunavut.
We stand ready to address all of our challenges.
We will base our efforts on Pinasuaqtavut principles and incorporate Inuit societal values through the application of Inuit Qaujimajatuqangit.
We all remain strongly committed to these fundamental principles upon which the territory of Nunavut was created.
Fiscal Plan
I will now move to our fiscal plan for the 2004-05 year. Mr. Speaker, total expenditures in this budget are $850.7 million.
Over 87 percent of this amount, or $742.8 million, is allocated for operations and maintenance expenditures.
The remaining 13 percent, or approximately $108 million, is allocated for spending on capital projects.
Taking into account estimated appropriation lapses of about $27 million, mainly for capital projects, we are projecting a deficit of approximately $13.4 million for government departmental operations.
This deficit will be financed or offset by using most of our remaining cash reserve.
While we will not need to borrow to finance this deficit, we have to ensure that we manage our operations in a fiscally responsible manner.
Currently we have approximately $57 million available of the borrowing limit imposed on Nunavut as part of the federal Nunavut Act.
Of the $200 million limit, the remainder is set aside to cover the $143 million of guaranteed debt for the Nunavut Housing Corporation and the Nunavut Power Corporation.
Most of this guaranteed debt was assumed prior to division.
We are projecting revenues from all sources to be about $876.5 million this year.
About $74.1 million of this revenue is generated internally in Nunavut from our income taxes, consumption taxes, payroll taxes, and other own-source revenues such as fees and levies.
This represents about 8.5 percent of our total revenues.
Our tax base is small and will only grow as we move forward in developing our economy.
Mr. Speaker, I am pleased to announce that this budget contains a reduction in property taxes.
Effective the 2004 taxation year, the education component of the Nunavut Property Tax will be eliminated.
This measure will benefit all property owners in Nunavut and will reduce the high cost of maintaining a home.
This measure will also help encourage home ownership, and in time help alleviate the shortage of housing.
The vast majority of our revenues come from the federal government in the form of transfers.
The single largest of these transfers comes from the Formula Financing Arrangement.
Other transfers include the Canada Health Transfer and the Canada Social Transfer.
Included in the Canada Health Transfer is Nunavut’s share of the recently announced $2.0 billion increase to provinces and territories for healthcare.
Because this transfer is allocated on a per capita basis, Nunavut’s share of this new funding is only about $1.9 million.
The Formula Financing transfer is about $735 million for the 2004-05 year, and represents approximately 84 percent of all our revenues.
Discussions involving the renewal of the Formula Financing Agreement have focused on the adequacy of the transfer to help meet Nunavut’s needs.
During renewal discussions, a business case was presented to the federal government to underline the fact that the transfer appears only adequate to meet operating and maintenance expenditures in the short term.
The recent federal budget did announce a number of changes to the formula which mean a larger transfer to Nunavut.
However, the increases will not allow the territory to make the type of significant investments in basic infrastructure which are needed.
I will now outline some of our major expenditures by department, based on allocations proposed in the main estimates and capital estimates.
The expenditures presented do not include the $66.2 million contained in the contingencies for collective bargaining and other anticipated expenditures we have included in our fiscal plan for 2004-05.
These amounts will be brought forward for consideration by the Legislative Assembly later this year once details are known.
Mr. Speaker, we all recognize that the provision of quality education is critically important to the territory and its population as we move towards self-reliance.
The Department of Education will see an overall increase in its budget this year from $8.6 million to $190.4 million.
This increase recognizes our commitment to education, including its social and economic benefits, by having a better trained and educated workforce.
The department has increased the grant program under the Financial Assistance to Nunavut Students by about $2.0 million to meet the increased number of students sponsored by FANS who are participating in post-secondary education programs.
Mr. Speaker, I am very pleased that we are enhancing the Income Support Program in this budget.
Effective June 1, there will be a 10 percent increase to the food allowance component of this program.
This increase will enable people across Nunavut who receive assistance under this program to deal much better with the high cost of groceries.
The Department of Health and Social Services will have $210.9 million allocated to it for the 2004-05 year.
Of this, $182.2 million will be for programs and services delivered by the department, and $28.6 million for capital expenditures.
Two new health facilities will be opening during this year, one in Cambridge Bay and the other in Rankin Inlet.
In addition, we are continuing with the construction of a new hospital in Iqaluit.
These health facilities will cost in excess of $103 million.
Together with a residential care facility in Chesterfield Inlet to be opened this year, and a fully equipped health centre in Arviat which opened in 2001, and the replacement of health centres in Pond Inlet and Igloolik, access to basic healthcare in the territory is being greatly expanded.
These projects also provide much-needed jobs and economic benefits within the communities, including job training opportunities.
A plan to expand the scope of healthcare programs and services available within the territory, including training opportunities, will ensure a continued focus on developing self-reliance at the community level.
Telehealth services will be expanded to an additional seven communities in Nunavut, supplied by $2.7 million in funding received from the government of Canada through the Primary Healthcare Transition Fund.
The Maternity Care Workers Program will be expanded, leading to qualified midwives in a number of communities.
In this program emphasis is focused on incorporating traditional Inuit practices.
These telehealth and maternity care services will reduce the high costs of medical travel and allow for more services to be provided in communities.
Targeted resources will be provided to the newly formed Nunavut Suicide Prevention Council in the areas of training and prevention, including mental health, addictions and community wellness.
The Nunavut Housing Corporation will continue its programs aimed at increasing housing supply during 2004-05.
The corporation will be allocated a total of $95.1 million in operating and capital funding from this government.
However, the corporation will spend a total of $170.6 million when contributions from Canada Mortgage and Housing Corporation and Industry Canada’s Strategic Infrastructure Fund are included.
Over the next two years, this $40 million infrastructure fund project will result in at least 160 new public housing units constructed in Nunavut.
At least 80 units will be built in, and-or delivered to Nunavut communities this construction season.
Initial staff housing needs for the new health centres in Rankin Inlet and Cambridge Bay also will be addressed.
Ten units will be built in each of these communities, with occupancy slated for early 2005.
Additional operating and maintenance funding of $1 million is being made available to local housing organizations to meet the needs of these new public housing units.
The Nunavut Housing Corporation will continue to introduce proactive, community-led changes to its programs during 2004-05.
These changes will include changes to home ownership programs which will make them accessible, increased funding limits to ensure homeowners’ health and safety concerns are adequately addressed, and new home maintenance programs for our seniors and persons with disabilities.
The Department of Justice has been allocated a total budget of $56.2 million.
The operating portion of this budget is $49.0 million.
In an effort to provide inmates with the opportunity to serve out their sentences closer to home, the Department of Justice has been allocated $1.5 million for the establishment of the Kugluktuk Healing Centre.
This new facility will employ 12 staff, most of whom will be beneficiaries from the community.
This facility will also offer healing programs at the community level aimed at helping inmates reintegrate into the community.
This budget allocates $600,000 for the establishment of a human rights tribunal as a result of the passage of the Human Rights Act.
The new legislation requires that the tribunal be in place by November of this year.
Before implementation of the act, public information will be provided to ensure that all Nunavummiut have a good understanding of their individual rights and how the tribunal will work.
This act will make it possible for the tribunal to consider human rights issues from a Nunavut perspective and include Inuit Qaujimajatuqangit in its reviews, which was not possible under the federal legislation.
Additional funding has been allocated to address the on-going budget shortfalls for the Legal Services Board, court services, and corrections and community justice.
This new funding will address the shortfall that has existed to date with delivering this program and will make it easier to meet the justice needs of Nunavummiut.
Mr. Speaker, the Department of Culture, Language, Elders and Youth has been allocated $16.6 million for 2004-05 to preserve and enhance Inuit culture, language, and heritage and to support healthy active living opportunities for Nunavummiut.
Under the guidance of Minister Tapardjuk, the department will place increased emphasis upon the incorporation of IQ principles and values in Government of Nunavut policies and programs.
As a result of the government’s recent restructuring, CLEY has assumed additional responsibility for programs and services related to Sport Nunavut, recreation and leisure, and public libraries.
This will enhance CLEY’s delivery of programs in the areas of active living, culture and heritage.
An increase of $115,000 in youth programs will allow the development of programs for youth that support culture and community life, instil pride, and develop leadership skills.
The department will be developing a comprehensive elders’ strategy that will focus on linguistic, senior, and cultural programs for this very important part of our society.
In the 2004-05 year, the department will provide $4.6 million in grants and contributions to communities to support capacity building in the areas of culture, heritage, language, communications, the arts, sport, recreation and leisure.
Economic Development and Transportation
Mr. Speaker, the economic development and transportation department was established with the clear mandate to strengthen economic development across Nunavut.
It will help build a more self-sustaining territory.
It will help ensure that Nunavummiut have the transportation, business, and knowledge infrastructure to participate fully in the economic opportunities the government anticipates for the territory.
The department also will help stimulate development in both the traditional and wage-based economies, working closely with the private sector and land claim organizations.
The department has a budget of about $40 million in the 2004-05 year.
Of this amount, more than $12 million will be spent to operate our vital transportation systems, including airports, motor vehicles and roads, coast guard re-supply sites, and small craft harbours.
Implementation of the Nunavut Transportation Strategy will be a priority of the department, including acting on the recommendations of Airport Investment Strategy For Nunavut.
The promotion of the Nunavut-Manitoba road project also will be a priority, as will be the Bathurst Inlet Port and Road project.
Both of these large projects would result in economic benefits and jobs.
These projects, and the development of small craft harbours and improved airports in Nunavut, depend on the outcome of ongoing discussions with the federal government.
A total of $14 million will be invested in economic development activities by the department.
More than $1.5 million of that amount will be used to support the development of our minerals and petroleum resource industries.
Included is $450,000 for the Geoscience Program, to help stimulate increased private investment in Nunavut’s mining industry.
This year, the value of mineral exploration could reach an all-time high of $120 million in private funding.
The department will also invest $2.7 million in tourism, trade and export development.
In addition, a portion of the $14 million will be invested to build our community economies.
This includes $2 million to provide contributions to local businesses and to operate business loan services through the Nunavut Business Credit Corporation and Regional Business Development Centres.
It also includes more than $5 million in funding for municipalities to hire community economic development officers, and for the Community Initiatives Program.
Mr. Speaker, the creation of a separate Department of Environment reflects the high priority this government places on its responsibilities for the protection and promotion of our environment and natural resources through Avatimik Kamattiarniq.
For the 2004-05 year, $16.1 million has been allocated to this new department.
Of this amount, $14.2 million has been budgeted for operations and $1.9 million for capital projects.
This budget supports initiatives to deliver on a wide range of regulatory and program functions, and the implementation of specific statutory and legal obligations, including commitments under the Nunavut Land Claims Agreement.
Funding support to the Hunters and Trappers Organizations, Community Harvesters’ Assistance Program and Regional Wildlife Management Boards will continue.
Investment will continue to encourage and support a viable and sustainable fishery and fur sectors through cooperation with key stakeholders.
This year we will develop and implement the Nunavut Sealing Strategy and the Nunavut Fishing Strategy.
This will provide support for increased economic opportunities in these sectors for Nunavummiut, within the principles of conservation and sustainability.
Mr. Speaker, this new department will enforce the Environmental Protection Act, Nunavut Climate Change Strategy and Inuit Impact Benefit Agreements for Territorial Parks.
This will help ensure that the development of a strong sustainable economy does not come at the cost of our environmental, natural, and heritage resources.
Community and Government Services
The creation of the Department of Community and Government Services will allow the government to maximize the use of resources to support communities and other government departments.
The department has been allocated a total budget of $132.9 million.
Of this amount, $108.8 million has been budgeted for operations and $24.1 million for capital projects.
It will facilitate improved technical services related to capital infrastructure and information technology.
It will increase emphasis on protection services including fire, emergency measures operations, and building inspections.
For communities, it will mean improved capital planning, project management, program delivery, and technical services are delivered in a financially efficient way.
The government has demonstrated a firm financial commitment to supporting municipalities, and will continue to do so under this mandate.
Base funding to municipalities, through the Municipal Operating Assistance Program, will be assured and the 13 percent increase that communities received beginning last year will be continued.
This budget will continue support for municipalities by providing funding for the Nunavut Association of Municipalities Insurance Exchange.
The budget includes $1.5 million for this purpose, which will bring the total amount of funding provided so far to $3.5 million.
This year communities will benefit from additional major infrastructure funding in cooperation with the Government of Canada.
The Strategic Infrastructure Fund will provide $20 million for water and waste water projects and another $20 million for housing projects over the next three to four years.
This funding, which is matched by our government, will allow us to address some priority needs in communities.
In addition, we are involved in negotiations with Canada for the Municipal Rural Infrastructure Fund which would fund other much needed infrastructure projects in communities.
The government, in cooperation with NTI, has carried out a comprehensive review which has resulted in substantial enhancements to the current NNI Policy.
Changes to the policy took effect on April 1.
These changes will assist in advancing the goals of Inuit employment and support for local businesses.
The Department of Human Resources has been given a budget of $18.1 million for the 2004-05 year.
Mr. Speaker, the $4.2 million allocated for the Inuit Employment Plan and the $1.1 million for training account for almost one-third of this budget.
The department is responsible for the implementation, management and monitoring of the Inuit Employment Plan in all departments and crown corporations.
Through the newly established Inuit Employment Branch, it can assist departments to develop recruitment, retention and succession planning strategies.
This includes the coordination of a government wide Inuit Management Internship Program aimed at placing more beneficiaries in coordinating, supervisory and management positions.
The department is planning to undertake considerable effort on reducing barriers to staffing and job evaluation processes.
A review of government resources allocated to training and development will further contribute to the promotion and retention of beneficiaries.
The Department of Finance has been allocated a total budget of $52.5 million.
For 2004-05, the department will continue the electrical power subsidy to help ensure that all Nunavut residents have access to reasonable utility rates.