Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to provide a brief update to Members of the House on meetings held earlier this week in Ottawa, including a meeting with Prime Minister Martin and Members of his Cabinet on October 24th and the First Ministers' meeting that the Honourable Floyd Roland and I attended on Tuesday, October 26th.
On Sunday, October 24th, the Premiers of Yukon, Nunavut and I met with the Prime Minister, Ministers Goodale, Robillard, Scott and Blondin-Andrew to discuss the commitment set out in the Throne speech to develop a comprehensive strategy for the North. The Prime Minister provided his assurance that he would work with northern Premiers on developing and implementing this strategy.
Mr. Speaker, in summary, we agreed the strategy must be jointly developed by the federal and territorial governments and in cooperation with aboriginal people and northern residents, should include joint priorities and would include short, medium and long-term objectives.
Mr. Speaker, an important outcome of this discussion was the commitment made by the Prime Minister that the strategy would be developed on the principle that northerners must have control over their resources and be the primary beneficiaries of development in the Northwest Territories.
Our officials met with federal officials a number of times this week to jointly develop a work plan on how to move forward with the development of this strategy. These meetings will continue next week. I hope that we will be in a position to formally launch this initiative with the Prime Minister in late November.
Mr. Speaker, a separate meeting was held in Ottawa between the Deputy Premier, the Honourable Floyd Roland, and federal Ministers Scott, Efford and Blondin-Andrew. The primary purpose of the meeting was to discuss resource development in the Northwest Territories and the need for the federal government to begin discussions with northern governments on an agreement that ensures northerners are the primary beneficiaries from the development of our resources.
This meeting follows the advice we received from the Members of this Legislative Assembly last week to pursue the negotiation of an agreement that provides northern governments with an equitable share of royalties from northern resource development.
Mr. Speaker, the focus of the First Ministers' meeting on October 26th was on equalization and territorial formula financing. These are the key federal transfer programs designed to allow all jurisdictions in Canada to provide reasonably comparable public services. The meeting on Tuesday focussed on three issues:
- • the total amount that Canada will dedicate to the equalization and formula financing programs over the next few years;
- • the allocation of those transfers amongst provinces and territories; and,
- • the mandate and makeup of the panel of experts that will be appointed to make recommendations on the issue of allocating equalization payments and territorial formula financing transfer in the longer term.
Mr. Speaker, I can advise the House that the First Ministers' meeting resulted in the following outcomes:
- • The federal government has committed to provide the three territories with a minimum funding floor of $1.9 billion in 2004-05 and $2 billion in 2005-06. This is an increase of $68 million in 2004-05 and $100 million in 2005-06 in new funding over the most recent federal estimates for 2004-05.
- • The total base funding amount will escalate by 3.5 percent on an annual basis starting in 2006-07.
- • The three territories have agreed on a funding allocation based on the average grant provided by the Government of Canada over the last three years. Under this arrangement, the Northwest Territories will receive 35.7 percent of this. This will result in increases of approximately $25 million to the Northwest Territories grant this year and $38 million next year.
- • An expert panel will be established to make recommendations on how equalization and territorial formula financing levels should be allocated in 2006-07 and beyond.
- • In addition, this arrangement includes an agreement that the federal government will not rebase the tax effort adjustment factor next year. The net result of this is a further increase of approximately $50 million next year.
-
---Applause
Mr. Speaker, this new arrangement is a fundamental change in the way our formula arrangements have worked over the last 20 years. The base funding allocation to the territories will now be fixed, as it is for the provinces, and will escalate at a fixed amount of 3.5 percent annually starting in 2006-07. After the initial two-year period, the allocation of the grant amongst the three territories will be decided based on recommendations by an independent outside panel.
Mr. Speaker, there are a number of outstanding issues with respect to the treatment of adjustments for prior years and other technical issues with respect to the territorial formula financing agreement. We intend to work with the federal government to resolve these issues over the coming months.
Mr. Speaker, in summary, the First Ministers' meeting and the bilateral meetings we had when in Ottawa were a good beginning. We are committed to work with the federal government to develop a forward-looking northern strategy. We are also committed to working with our aboriginal government partners to ensure that northerners benefit fully from the development of our resources. With respect to future First Ministers' meetings, we are looking forward to working on other critical issues facing the North and Canada, including the issues facing aboriginal peoples, childcare and post-secondary education. Thank you, Mr. Speaker.
---Applause