Thank you, Mr. Speaker. Good morning. Mr. Speaker, in his budget address, the Minister of Finance announced yesterday the new Northwest Territories Child Benefit, which will come into effect this July.
Ensuring that all our children have a strong start in life is critical to the future of the Northwest Territories. By making children everybody's priority, we can help build a better future for our children and for our society.
Recognizing this, federal, provincial and territorial governments came together to work on behalf of Canada's children. At the First Ministers' Meeting in June, 1996, the Prime Minister and Premiers made tackling child poverty a collective priority. They identified support for low-income families as critical in helping parents to better meet their children's needs. In 1997, the federal government announced the National Child Benefit.
This is an innovative and progressive approach for investing in children, designed by federal/provincial/territorial Ministers responsible for Social Services and coordinated by the Council on Social Policy Renewal.
The National Child Benefit requires the participation of both the federal government and provincial/territorial governments. As its initial contribution to this initiative, the federal government will provide an additional $850 million per year to enhance the National Child Benefit as a common income platform across the country. This commitment, which takes effect in July, 1998, will increase income support benefits for all low-income families with children. The territorial government is obliged to reduce income support payments equal to the amount paid by the federal government.
Mr. Speaker, as the Minister of Finance indicated in his budget address, this saving of income support money and $2 million additional monies from the territorial government will be invested in additional benefits to children in the north. With this funding, nearly 60 percent of NWT children will receive some benefits under the joint program. For example, a working family with four children and an annual income under $20,921 will receive $5,900 per year or almost $500 per month in addition to their regular income.
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This program, a joint initiative of the Departments of Finance and Education, Culture and Employment, is an initial step towards a more comprehensive agenda for children and youth that will be developed over the coming year.
The National Child Benefit, together with the reinvestment of income support funds, which are freed up, as well as additional monies from the territorial government, represents a substantial attack on child poverty in the north. Mr. Speaker, it is critical that we continue to place the highest priority on improving living conditions - now and in the future - for our children who are, indeed, our future. Thank you.