Bills 9 and 10, if implemented, would severely impact upon the Government of the Northwest Territories' ability to maintain delivery of existing programs and services. The government, directly or indirectly, imports most of the goods it needs from the south. These goods may include heating fuel, construction supplies, medical equipment, textbooks and other essential goods. These goods are most likely shipped by carrier, which must pay the vehicle trip permit fee. These fees are passed on to the customer, in this case, the government.
A report prepared for the NWT and Nunavut Chamber of Mines concluded that:
The GNWT will pay a significant portion of the tax and it will lead to higher costs for the departments and agencies, as well as those of local governments, school boards and publicly funded agencies. In addition, the federal government would be impacted by the tax. It is estimated that the government sector will pay about $4 million or 20 per cent of the tax revenues in 2002. (A Review of the Proposed Road Tax on the NWT Economy, Preliminary Report -- A Report Prepared by Ellis Consulting for the NWT and Nunavut Chamber of Mines, October 2001, page 2)
Further, the NWT Trucking Association stated that:
Will the government be looking for more money to make up the added costs? Will municipalities be looking for more money from the GNWT or will they also raise taxes to pay for their increased costs? How much revenue will the government lose as a result of bankruptcy and losses in businesses and employment income? (Presentation by the NWT Trucking Association to the Standing Committee of the Legislative Assembly, October 17, 2001, page 2)
The general consensus amongst presenters is if the territorial government does not have the resources to maintain and expand its highway system, the government should lobby for and obtain the necessary funding from the federal government.