In the Legislative Assembly on April 26th, 1999. See this topic in context.

Budget Reply 3-13(7)
Item 10: Replies To Budget Address

Page 334

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. In regard to the budget, one of the things I see, just looking at it, I believe that we do have to spend more money in the area of health and social services and education. I believe that we do have to make sure that we do have a healthy and unique economy, but in order to do that, we have to have educated people, we have to have an educated workforce, and we also have to have the ability for those people to find jobs. Mr. Speaker, that is one thing that I seem to see very much lacking is how are we going to improve the education and health care system in the Northwest Territories to the residents we serve? Yet, Mr. Speaker, in the budget, I see a lot in regard to diamonds, in which it seems the diamond industry has caught the eye of this government. It seems like that is the focus this government.

Yet, Mr. Speaker, I think we have to look at where we are going to be in 20 to 30 years when our students go through our school system from kindergarten to grade 12. One person takes in the area of 15 years to strive for a bachelor of education, or whatnot. Yet, Mr. Speaker, in that area in the last four years, we have seen the increases that we have had to take by way of larger classroom size, shortages of teachers and nurses in our communities. Mr. Speaker, we continue to see this system that we implement or deliver in our communities still continue to be undermined by the shortage of revenues and also the problems continue that basically stack themselves on top each other.

Mr. Speaker, I see in the budget where we are looking at increasing our jail facilities because we have 40 percent, I believe, above the maximum capacity that the correction facilities can take. Yet, Mr. Speaker, we do not look at exactly why are so many people being incarcerated in the Northwest Territories and why is it that so many of those people are aboriginal people who come from our smaller communities? Is it because they are undereducated? Is it because they cannot find a job? Or is it the social conditions that they are living in, in our communities? I think we have to deal with the problems that are in our communities now. We have to invest in those problems that exist today. But, Mr. Speaker, our crime rates are higher than basically anywhere in the country. The size of our classrooms are almost the highest in Canada. Yet, Mr. Speaker, we have to also look at expanding the economy of the Northwest Territories. I believe we have to start considering the economy as a whole, where we do not just put all our efforts and energy into one sector of the economy and not consider the other sectors that are out there.

Myself, coming from the Mackenzie Delta, I know for a fact there is oil and gas potential in my riding. Yet, Mr. Speaker, in the last four years since I have been here, very little has been done by this government to entice the oil industry to come back to the Northwest Territories or, for that matter, assist the oil industry like we are assisting the diamond industry. I believe that this government has to take more responsibility in enticing all sectors of the economy, not just one, not just the diamond industry because everybody has diamonds on the brain, but I believe we have to find ways of enticing the economy in regard to our oil and gas sector, the mining sector, forestry sector, and our renewable resource sector to be able to take advantage of the opportunities that lie within the Northwest Territories as a whole, not just one geographical area which is basically around Yellowknife.

Also, Mr. Speaker, I for one, feel in regard to the budget, there is very little in terms of stimulating our infrastructure in the Northwest Territories. Yes, there is a lot of money for transportation in and around Yellowknife where you are looking at some $14 million in regard to the road between Rae and Yellowknife. Also, there is talk about putting some $15 million in to Highway 4, which is the Ingraham Trail, which basically only serves the mining companies, yet this government is going to spend in the area of $15 million to help the mining industry take advantage of moving their goods and services at a cost to the taxpayers in the Northwest Territories. I would like to know exactly why is that we are not spending the money to upgrade the road systems that serve the residents in the Northwest Territories, not the mining sector. In order to improve the economic base of the Northwest Territories, we do have to expand our transportation system to all the communities in the Western Territories. Mr. Speaker, in my riding, regarding Aklavik, I had a commitment from the Minister of Transportation, who is now the Premier, to look at the possibility of a long-term economic strategy to see what is the possibility of a constructed road from Aklavik to the Dempster Highway so they have year-round access of goods and services into Aklavik and being isolated at the present time.

Mr. Speaker, I also feel that we have to find new ways of generating revenues. Yes, we may be the lowest area in the country when it comes to taxes, corporate taxes, personal income taxes and whatnot. Mr. Speaker, we do not have any sales tax in the Northwest Territories, but there are a lot of advantages to the multimillion dollar corporations and companies who are presently in the Territories. I talk specifically about the diamond industry which, as we know for a fact, are going to be taking if not millions, billions of dollars out of the Northwest Territories in the next 25 years just with one mine. Yet those revenues are flowing out of the Northwest Territories, flowing to basically Antwerp, London and where all these major diamond companies are from. I think it is time that this government considers looking at some sort of tax on or around the, renewable resource industry in which these diamonds are leaving the Northwest Territories but we are not getting a big enough return on those investments.

Mr. Speaker, we hear a lot in this House in regard to gaining control over our resources. I, for one, know for a fact there is a process in place to deal with that particular matter. Mr. Speaker, in the last three and a half years, we have always seen it as a priority item of this government, yet no movement has been made in that area. In regard to looking at the residents of the Yukon, our next door neighbours, where the Yukon does have a Northern Accord which was signed between the Yukon Government, the aboriginal groups, and the federal government, I do not see what makes them any different than we are. They have land claims in the Yukon, they have aboriginal people, they have a territorial government. They were able to accomplish a Northern Accord in the Yukon, yet in the Northwest Territories, it seems like it is an impossible task or no one seems to take it seriously enough to put money at the front end, complete these negotiations and see how many of these resources will stay in the Northwest Territories.

The estimated statement in the budget is that over the next 25 years, there will be possibly two diamond mines from which the federal government will receive up to $7 billion in revenues. Seven billion dollars. We could run this government for seven years basically on one year of what the federal government is getting for their revenues, yet the Government of the Northwest Territories is still not moving on this particular item which is the Northern Accord to conclude those negotiations with the aboriginal groups in the Northwest Territories and try to find a process to resolve those.

Again, Mr. Speaker, I feel it is critical that we do seriously realize the implications that are in our small communities in regard to the social problems, the economic problems, and the problems that we see in regard to the school and the graduation rates that we see in our classrooms. I have gone to a number of graduations in my riding in the last couple of years. McPherson, which last year was the first time we had three graduates. In regard to Aklavik, there was one. And yet, we have, in the lower grades, almost 24 to 30 students in which, at the end of the day, we are only having one or two graduates coming out of our high school systems. Mr. Speaker, I feel a lot of that has to do with the frustration of not only the teachers but the students because of the lack of attention they are getting, trying to strive for their higher grades, and also having the materials to carry out their studies in a more reasonable and equitable manner like it is in the high schools in the larger centres where they have the ability to take on more courses, more programs, and be able to have access to credits and doing other things which are not available in our smaller communities.

Mr. Speaker, regarding the social conditions that we find ourselves in the Government of the Northwest Territories, unless we do something to improve the quality of education and the social conditions of a lot of our small communities, there will always be a large portion of the budget being spent in that area because of the conditions that we find ourselves in a lot of our smaller communities. I believe for one, that we have to improve those particular sectors and find new ways and new avenues to stimulate the economy by jobs. We have to look at what we have in our regions, our ridings and also in our communities and see exactly how we can expand on what is already there without having to spend large amounts of money to develop new industries or new economies.

I am talking, Mr. Speaker, in areas such as Fort McPherson where we have the tent and canvas shop. In Aklavik we have the fur shop, but yet there are opportunities and the ability to expand on the number of people working in those facilities and training more people to take on these jobs and be able to consider developing the economy in those two industries. We have in the Mackenzie Delta, the renewable resources industry regarding the caribou, the reindeer, in some cases muskox, and also a possibility of commercial fisheries in that area. We have to seriously look and see exactly how we can expand the renewable resources economy and also be able to put people to work and find the economic opportunity in that economy.

Also, Mr. Speaker, we also have to look at the whole question of the political environment that we find ourselves with land claim agreements, self-government agreements and also changes to the new Western Territories for what we knew as the old Western Territories, where I strongly feel that because of the change in balance of power in the new Western Territory, someone comes from a small riding like myself, that the shift of power in which does not give the smaller regions or ridings an opportunity to strongly make changes regarding how this government does business. I mean, Mr. Speaker, look at the capital expenditures of this government and this budget, there is no real major capital projects in the smaller ridings when it comes to stimulating community economies. Yet there are large projects in the larger centres when it comes to multi-million dollar projects. I feel, Mr. Speaker, there has to be more effort made to realistically and seriously look at the economies of the different regions, different sectors and finding ways to resolve those economic differences, finding jobs and putting people to work in the smaller sectors.

Mr. Speaker, regarding programs that are presently being delivered by this government. We have different programs, such as the Community Access Program and in housing, the Down Payment Assistant Program. Mr. Speaker, a lot of these programs are more structured in relation to large centres, for large portions of those dollars go to the larger centres. Regarding the question about the Down Payment Assistant Program, where we estimated through that, it generated over $45 million in housing sales and assisted 350 families. Mr. Speaker, I would like to know out of those numbers, exactly how much of those have gone into the smaller ridings verses a majority of those being spend in the large centres, such as Yellowknife. Mr. Speaker, the programs and services this government delivers have to reflect the people as a whole. It cannot be catered or structured only to one particular geographical area. It has to be structured in a way that it serves everybody in the Northwest Territories and it is an advantage for everybody in the Northwest Territories, not just one geographical area.

Mr. Speaker, there has to be more emphasis put into improving the education, health and social services of the people of the Northwest Territories. Again, Mr. Speaker, I would like to touch on my opening remarks. We have to deal with this problem that is at hand now. Yes, it may cost us a little more to deal with it now, but I believe, if we do not deal with it now we will have to pay for it later. Without having students or children in our communities that are educated who have an opportunity to go to kindergarten through grade 12 in our communities, but at the end of the day if they are not able to move on to post-secondary education or university because their grades are not good enough, what is the intention of education to begin with? I would like to ensure that we have the quality of education in all of our schools in the Northwest Territories which allows a student that graduates from any high school in the Northwest Territories to be able to step right into university or post- secondary education to get their bachelor degrees and also to be able to find a job at the end of the day. I believe, Mr. Speaker, that we have to deal with these problems now because I strongly believe that these problems are getting worse in the Northwest Territories and we will have to deal with it sooner or later. Hopefully it is sooner but if we deal with it later, Mr. Speaker, regarding the budget breakdown of the Finance Minister's statement, that after this year we may have a small $34 million surplus, but next year and the following years after we will not possibly have a surplus and we may be back into a deficit situation. Mr. Speaker, we have to have the ability to restructure the Northwest Territories and ensure that we are getting the most from the dollars we spend in this government.

I, for one, Mr. Speaker, strongly will not recommend but will consider looking at what they are doing in the Eastern Arctic. They are talking about restructuring their health boards and education boards with a possible savings of $4 million. I believe that if it works there, why would it not work over here? Why are we not looking at that in the new Western Territory? We have to find new ways and new initiatives of improving on what we have, but also consider that we may have to change what we are used to.

I, for one, Mr. Speaker, strongly feel that there may have to be a revision on how we deliver programs and services in the new Western Territories and also how we serve all the people in the Northwest Territories in conjunction of not who you are or where you are and exactly where your riding is. We all have to be treated in the same manner in allowing ourselves accessibility to programs and services that are delivered in the Northwest Territories as a whole. Not having the ability or access to a program because you know someone who may be heading up the program at headquarter level or having access to an individual who may be a friend of a friend of a friend who knows the Minister or a deputy minister. Those days should be behind us and we should have an open government that everybody has the same treatment and also has the same accessibility to programs and services in this government. With that, Mr. Speaker, thank you very much.

Budget Reply 3-13(7)
Item 10: Replies To Budget Address

April 25th, 1999

Page 336

The Speaker Samuel Gargan

Thank you. Replies to Budget Address. Item 11, petitions. Item 12, reports of standing and special committees. Item 13, reports of committees on the review of bills. Item 14, tabling of documents. Mr. Miltenberger.