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Mr. Speaker, Nunavut’s economy continues to be heavily dependent upon the government sector.
As our government becomes more established we will ensure that benefits from government activity reach as many Nunavummiut as possible.
Our decentralization initiative has and will continue to result in long-term stable jobs spread throughout the territory.
Of course, a large degree of this progress will depend upon Nunavummiut having the required skills and trades.
Recently the Department of Finance opened its third regional office in Igloolik.
This has resulted in 17 positions being created in that community.
We expect that residents of Igloolik will fill all but one of these positions.
This is another good example of how decentralization can work.
Decentralization has generated an increased demand for goods and services in our communities.
Also, as a result of increased government and private activity, we see our service sector continuing to grow and becoming a larger part of the economy to support that activity.
Mr. Speaker, an important element of our economic plan is to provide financial and policy support to communities and businesses through ongoing initiatives such as the Nunavummi Nangminiqaqtunik Ikajuuti (NNI), the Nunavut Development Corporation, community economic development officer positions, and the many programs offered through the Department of Sustainable Development.
As my Honourable colleagues are aware, Nunavut’s promise in the mining area is recognized worldwide.
The mining industry continues to invest millions of dollars annually exploring, developing, and identifying opportunities.
There are many potential projects in Nunavut; the Jericho diamond project in the Kitikmeot and the Meadowbank gold property north of Baker Lake being two of the more prominent prospects.
Even with the ongoing investments and exploration, our mining potential remains largely untapped.
Our government will continue efforts, working with Nunavut Tunngavik Incorporated, Inuit Organizations and other agencies to promote the territory and see the development of viable projects.
As well, we will champion and support initiatives such as the Bathurst Inlet road and port project to facilitate the development of our natural resources.
In my first budget address, I indicated that we were committed to making progress on the transfer of authority and responsibilities over Nunavut’s natural resources from the federal to the territorial government.
Mr. Speaker, this devolution is essential if we are to be masters within our own jurisdiction and to fully share in the economic benefits that come from exploration and development of our natural resources.
Progress has been made in discussions with the federal government, but we must renew our commitment to this important area if we are to be successful.
In this regard, we need the goodwill and cooperation of the federal government.
Mr. Speaker, Nunavut has a number of unique geographic and social challenges that cannot be ignored, challenges that have a direct impact on government spending.
The first is our rapid population growth.
Between 1996 and 2001 Nunavut’s population count increased by 8.1 percent, which was more than double the national average.
In addition, our population is very young, about one-half of Nunavummiut are under the age of 20.
We will need to see a significant number of jobs created throughout the territory to match our population growth.
Young Nunavummiut must have the opportunity and be encouraged to learn skills that will enable them to successfully compete for future jobs.
Since our first budget three years ago we have allocated more than $70 million for capital projects for the Department of Education.
We also have increased the number of teachers in our school system, and this year we will be making more improvements to financial assistance for post-secondary students.
Our young and fast growing population place tremendous pressure on government programs and services.
Meeting these needs, particularly social needs, will continue to be a challenge for government.
When you factor in the vastness of our territory, the small size of our communities, and our extreme climate, the challenge of providing adequate programs and developing acceptable infrastructure becomes even greater.
This is further complicated by the fact that there is no road link between the territory and southern Canada.
Similarly, there are no road links between our communities.
Nunavummiut rely heavily on costly air travel.
All goods brought into Nunavut are shipped by water or air.
With the long Arctic winter, the ocean shipping season is short, lasting approximately four months, from early July to early November.
Even when using the most economical means of transportation, ocean shipping, the cost of most landed goods in Nunavut is substantially higher than other parts of the country. As a result the overall cost of living and doing business is higher in comparison to other parts of Canada.
This past year over $20 million in additional funding was provided to the Department of Health and Social Services to ensure the ongoing delivery of essential programs.
In spite of this, and like the situation in most other provinces and territories, our health care system remains under stress.
Costs for essential services such as medical transportation and treatment continue to increase.
Mr. Speaker, we will work hard to ensure that Nunavut has an effective health care system.
Our residents should have access to health services that are comparable to other parts of the country.
We continue to work with the birthright development corporations towards the construction of a new general hospital in Iqaluit and two new regional health facilities in Rankin Inlet and Cambridge Bay.
The total cost of these projects will be in excess of $80 million.
While we are carefully reviewing our options for funding these facilities, I want to assure you that these facilities will be built and will end up being owned by the Government of Nunavut.
Mr. Speaker, these are important investments that will lead to better access to health care in our territory.
Perhaps the single greatest challenge that we face is in the area of housing.
Housing is extremely expensive in Nunavut, often costing up to four times the Canadian average.
As a result of this, most Nunavummiut live in subsidized public housing, because they lack the resources to afford their own home.
The housing stock in the territory has grown at a rate far below our population growth.
This has meant overcrowded homes for many Nunavummiut, which in turn, contributes to other social and health problems.
Over the past three years, our government has allocated funding for the construction of over 150 new social housing units.
While this is a major investment, we realize that it falls well short of the need throughout the territory.
For this fiscal year we have allocated $17.7 million in capital funding to the Nunavut Housing Corporation (NHC).
When this is combined with Canada Mortgage and Housing Corporation (CMHC) funding for modernization and improvements of $4.3 million as well as the new joint NHC/CMHC Affordable Housing Program of almost $5 million, the total capital investment in social housing will be $27 million.
Mr. Speaker, this construction season will see at least one new home built in every Nunavut community.
Overall, at least 78 new social housing units will be constructed across the territory.
In addition to being a social and economic challenge, housing also is an operational challenge for our new government.
Without adequate housing we are unable to recruit and retain qualified employees.
This negatively impacts the quality of our programs and services, the development of the public sector workforce, and the overall goals of our government.
To address this challenge, and improve the efficiency of our operations, we have transferred responsibility for staff housing from the Department of Public Works and Services to the Nunavut Housing Corporation.
Consolidating public and staff housing responsibilities will allow for the better coordination of our efforts, the concentration of expertise, and in the long term, more consistency in developing and delivery of GN wide housing programs.
Mr. Speaker, we will continue to examine ways to encourage individuals to invest in the private housing market.
We recognize that we need to be novel in our approach to addressing public and staff housing issues.
A good example of such an approach is the employee condominium initiative. This undertaking will see up to 130 new staff housing units constructed in Iqaluit and our decentralized communities, which our employees will be able to buy.
The housing corporation is in the process of negotiating the construction and purchase of these new units from developers who have responded to the first phase of proposal calls.
The corporation also is in the process of carrying out the second phase of proposal calls, as well as finalizing information and educational packages for staff.
When the units are ready for occupancy, the housing corporation will provide assistance with the establishment and operation of Boards of Directors of the condominium corporations, and serve as a liaison between lending institutions and the purchasers.
As well, prospective homeowners may be able to access direct funding from the existing programs of the housing corporation.
Mr. Speaker, this is a new approach to providing affordable housing options for Nunavummiut.
Lessons learned from this initiative will influence our future approach towards improving housing in our communities.
The NHC also is finalizing details of the Tenant-to-Own Program for introduction this spring.
This program will allow public housing tenants who are ready and able to accept the responsibility of homeownership to purchase their home.
Nunavummiut who are in core need may receive mortgage-geared-to-income financing through the housing corporation, much like the successful “Access” program.
Clients not in core need, also will be eligible for the program.
I want to reinforce Mr. Speaker that our government remains strongly committed to the principles set out in the Bathurst Mandate, creating healthier communities, supporting families and individuals, and making Nunavut more self-reliant within Canada.
We recognize that addressing our housing and other major social issues will help the development of our economy and will benefit all Nunavummiut.
If we are to continue to meet the needs of our people and address our challenges we must maintain a strong partnership with the federal government.
The foundation for this partnership is continuous dialogue with priority issues discussed in a meaningful and productive manner.
Mr. Speaker, the Nunavut Fiscal Review agreed to last year by the federal Minister of Finance gives us an opportunity to present our views on our long-term fiscal situation and challenges to the federal government. It is our belief that long-term revenues will not keep pace with our expenditure needs.
This year we will begin negotiations with the federal government to renew the Formula Financing Agreement which expires March 31, 2004.
We must make every effort to maximize our benefits from the Formula Financing Arrangements and seek more favourable treatment or alternative arrangements specifically targeted at critical issues such as housing.
As part of a strong argument to the federal government for additional investments we must outline Nunavut’s needs and demonstrate that our government is responsible and accountable.
In addition, we must show that we are providing appropriate services in the most economical way.
In response, Mr. Speaker, last year we announced that we would be initiating a major Program Review exercise to help us plan to better meet the needs of Nunavummiut and maximize the benefits from our limited resources.
We committed to developing an inventory of government programs and services as the starting point for this exercise.
We have made good progress on this initiative.
An inventory document is being finalized and information is being refined to assist with future business planning.
It is our intention to release more detailed information along with an inventory of programs this fall.
Our Program Review Board has identified some 336 programs operated by our departments this past fiscal year.
I will now present some highlights of our findings:
On an expenditure basis, the largest 30 programs account for about 2 out of every 3 dollars that our government spends while the largest 100 programs account for nearly 9 out of every 10 dollars of spending.
About 1 out of every 2 dollars of spending was devoted to Health, Housing, Social Services and Education program activities.
More than $352 million dollars of programming activity was directed toward individuals and families.
241 programs delivered services directly to the residents and communities of Nunavut.
On a functional basis, less than 1 out of every 10 dollars of budgeted spending was oriented to government administrative activities, while nearly 3 out of every 4 dollars allocated was related to the provision of a specific service or particular product.
As part of our ongoing Program Review activities we will be consulting Nunavummiut.
This initiative will be led by the Department of Executive and Intergovernmental Affairs.
It is essential for government to know that its efforts and expenditures are consistent with the goals in the Bathurst Mandate and the needs of Nunavummiut.
Taking the necessary time to verify that any changes we introduce are right for our people is also an important element of this initiative.
Mr. Speaker, the results of Program Review will influence our approach to how we do things in coming years.
It is critical that we chart a course that is right for our people.
We must be realistic in our expectations and pragmatic in our approach.
While we will need help from our partners, we cannot expect others to solve our problems for us.
The Government of Nunavut is in the fortunate position of not having a significant accumulated debt, and we plan to stay this way.
Borrowing to finance operational spending on programs and services would be short sighted and only cause difficulties in the long term.
A significant debt load would mean that we would have to redirect funds that could be used for important social programs to pay interest costs.
If we are to meet growing pressures we will have to do many things differently and focus our efforts on our priorities.
Our ability to be innovative, resourceful, and more efficient will be critical if we are to get the most from our limited financial resources.
Mr. Speaker, our spending plan for 2002-2003 balances ongoing needs against available resources.
For this fiscal year our government has allocated over $759 million to fund programs, services, and capital projects throughout Nunavut.
The Departments of Education and Health and Social Services, along with the Nunavut Housing Corporation, will account for over 55 percent of our government’s total allocated spending.
As all Members of this Legislature appreciate, education and skill development is vital if we are to create a better future for all Nunavummiut.
Helping our people, at all ages, increase their knowledge and learn new skills will be central to Nunavut’s success. This includes promoting the values of IQ.
For 2002-2003 the Department of Education will have the largest departmental budget at $172 million.
Operations and Maintenance funding has increased to over $152 million.
As a result of increased enrolments, our schools will receive an additional $2.8 million for new teaching positions.
As well, we have allocated an additional $981,000 for school operations to support District Education Authorities.
In total, over $84 million has been allocated for the department’s School Operations Branch.
Additional funding of $740,000 has been set aside for enhancements to the Income Support Program.
These enhancements are targeted at the transition to work, and are intended to provide recipients with added support at this crucial time.
We have earmarked $500,000 for enhancements to financial assistance for students.
This added funding is to provide increased living allowance benefits for students.
As well, new funding, Mr. Speaker, of $474,000 has been designated for daycares.
Mr. Speaker, we know that the welfare of our territory depends on the health and well being of our people.
This is why the Department of Health and Social Services has been provided with a total budget of $156.9 million.
Included in this is $151 million for operations and maintenance, an increase of nearly $32 million, or more than 26 percent, over last year.
This large increase reflects the value that all Nunavummiut have for health care.
The Healthy Children, Families and Communities Branch of the department will spend over $31 million promoting the well being of Nunavummiut.
This includes over $1.7 million in new monies for community wellness programs.
In addition, almost $1 million will be provided for municipalities for alcohol and drug counselling programs.
Additional funding of $650,000, for a total of over $1.6 million, has been designated for the operation of a community-based long-term care facility in Chesterfield Inlet.
And, Mr. Speaker, More than $2.2 million has been devoted to moving forward with a new mental health and addictions strategy that will see a number of improved support services provided for Nunavummiut.
Two key aspects will be building community support networks as well as enhancing educational and supervisory support to Inuit staff.
Mr. Speaker, we are equally committed to addressing our housing needs in a meaningful and efficient manner.
With the consolidation of public and staff housing under one roof, the Nunavut Housing Corporation will be able to deal with the housing needs of Nunavummiut in a more focused, coordinated way.
A comprehensive plan for the transfer of all aspects of the staff housing function has been developed.
A major component of the implementation plan is the need to address the policy issues that form the basis of staff housing.
Over the next few months those policies and their attendant procedures will be developed, discussed, finalized and implemented.
For 2002-2003, $31 million has been transferred to the Nunavut Housing Corporation from the Department of Public Works and Services.
As well, an additional $2.8 million has been allocated to assist in acquiring new leaseholds, renovating units and adding capacity for staff housing development.
Operations and Maintenance funding for social housing also has kept pace with our expanded capital program.
Over $1 million in additional funding will be available to Local Housing Organizations to meet the needs of the new housing units.
I am pleased to announce that, with the addition of social housing funding from the CMHC of $58 million, the Nunavut Housing Corporation’s total budget for fiscal 2002-2003 will be $154.4 million.
The Department of Justice has been provided a total budget of $44.9 million.
We have increased funding for law enforcement by over $3.5 million.
This additional funding will enable the RCMP to station at least two officers in each of our community detachments.
In total, 14 new policing positions have been created, bringing the overall number in the territory to 97.
This public safety measure will benefit all Nunavummiut.
We also are increasing support for the Akitsiraq Law School.
Total funding for this innovative program, from the Departments of Justice, Human Resources and Education will be $688,000 for the coming year.
Within three years, students will graduate from this program, ready and able to continue making a valuable contribution to Nunavut’s future.
Mr. Speaker, spending on registries and court services will increase by $879,000 in 2002-2003.
This reflects the added workload associated with the Nunavut Court of Justice and increased services to the public.
Mr. Speaker, make no mistake, we remain firmly committed to supporting our territory’s unique culture and languages.
Likewise, our youth are Nunavut’s future while elders are a link to our unique history, both groups are worthy of respect and additional support from our government.
The Department of Culture, Language, Elders and Youth has been allocated nearly $9.3 million for 2002-2003.
This represents a funding increase of $1.9 million, or more than 25 percent, when compared to last year.
This additional funding is an investment to support areas that make Nunavut truly unique in Canada, and will enable the department to improve programs and services.
New initiatives include the development of the ‘Elders Council’, recognizing the valuable knowledge and contribution of our elders, $300,000 has been allocated for this initiative.
The department also has allocated new funding of $320,000 for a Toponomy Program to identify traditional Inuit geographic place names.
The Elders and Youth programs will receive $125,000 each to help communities promote the well being of Nunavut’s elders and young people.
Similarly, the Archaeology Program and Archive Program will each benefit from $100,000 of new funding.
As well, $100,000 has been allocated for the Nunavut Historical Advisory Board.
In the coming year the department will provide over $2.3 million in grants and contributions to support initiatives, including, Mr. Speaker, traditional language promotion and protection, as well as cultural and heritage programs.
The Department of Sustainable Development will be funded more than $37.9 million.
Of this amount, $35.5 million has been budgeted for operations and maintenance.
The department delivers and funds many vital programs that provide essential support for our economy, protection of our environment, and wildlife research.
Over 40 percent of the department's budget has been earmarked to fund programs through grants and contributions.
In total the department has allocated $15.8 million dollars to grants and contributions, this represents a $2.1 million increase from last year’s funding levels.
The department will continue to support the development of local economies by dedicating $2.8 million to the Community Initiatives Program.
Another $1.9 million will be provided to hamlets for community economic development officers.
Nunavut Tourism will be provided an additional $1 million, bringing its total funding. . .
. .bringing its total funding to over $2.3 million, to deliver tourism programs on our behalf.
Of course, the department will continue investing in Nunavut’s traditional economy and $317,000 has been set aside for Hunter's and Trappers Organizations, $251,000 for the Community Harvester Assistance Program, $223,000 for Regional Wildlife Boards, and $200,000 for the Nunavut Arts and Crafts Association.
Similarly, key investments will be made in renewable resource areas, $350,000 for the Fisheries Development and Diversification Program and $230,000 for the Commercial Fisheries Program.
Mr. Speaker, let me assure you that efforts to identify investment opportunities in Nunavut’s new economy will continue as well.
We will encourage new business ventures and expansion through the Business Development Fund.
Some $859,000 has been allocated for this initiative.
As well, nearly $3.5 million will be provided to the Nunavut Development Corporation to support community-based businesses and economic opportunities.
In addition, the Departments of Sustainable Development and Finance have been asked to work with the private sector and Inuit Organizations to quickly develop and bring forward a plan to implement an affordable and effective Nunavut Film Incentive Program.
The department will spend more than $1.5 million in the coming year on consultations with communities and preparation of the Inuit Impact Benefit Agreement for territorial parks, the Nunavut Economic Development Strategy, and the new Nunavut Wildlife Act.
This budget allocates $1.5 million for wildlife research projects and $400,000 for wildlife officer training.
The department has committed $250,000 toward climate change and environmental protection projects.