Thank you, Mr. Speaker. I am very concerned about the apparent inequities in the manner in which the government provides subsidy programs to municipalities in the
Northwest Territories for the provision of water and sewage services.
At the present time the Department of Municipal Community Affairs administers the water and sewage subsidy program that pays the difference between the economic and subsidized rates of water and sewer services to residential and commercial users in the settlement corporations and the hamlets. With the exception of Norman Wells and Iqaluit, there are no water or sewer subsidy program for tax-based municipalities. Norman Wells and Iqaluit receive subsides that are negotiated in the turn over agreements with this government.
I understand that a policy was developed by the Department of Municipal and Community Affairs to deal with the water and sewer subsidy for taxed-based municipalities, but that was never approved by the Financial Management Board. When we, in Fort Simpson, first heard about it we were quite happy about the positive move of this government.
Mr. Speaker, this situation caused a great deal of inequity within the system and placed a great deal of financial strain on municipal taxing authorities. In Fort Simpson, the current policy on water and sewer subsidy has caused a tremendous strain on the financial resources of the municipal government. Although classified as a tax-based municipality, the village of Fort Simpson simply does not have a large tax-base to draw upon. In fact, it is smaller in actual population than the larger hamlets, such as Pond Inlet, Rae-Edzo or Pangnirtung. Despite this, the current policy of the government is that the current water and sewer system in Fort Simpson should be operating as a stand-alone system. This is simply unrealistic.
Mr. Speaker, the best possible solution for this problem is for the government to introduce a water and sewer subsidy program for all tax-based municipalities. Failing that, an exception must be made to recognize the special difficulties faced by Fort Simpson and to provide a subsidy program to the community, similar to what is available to hamlets in the Northwest Territories. Mahsi.