Thank you, Mr. Speaker, and thank you, colleagues, for your indulgence as I proceed with my first reply to a budget address. I've been a Member of this Assembly for just over a year and I wanted to share with you today some of my thoughts and observations. I'd like to begin by saying how interesting our financial situation
is. Last year after taking office we were faced with impending doom and gloom, debt wall discussions and straight cuts here for new Members. We were basically forced to stomach some new tax initiatives to increase our revenue and that meant that the public had to pay, as well. The payroll tax doubled from one percent to two percent and here we are a year later with a $44 million surplus, still flying by the seat of our pants.
Fiscal responsibility should go in tandem with fiscal surety and obviously things like resource revenue sharing, devolution and aboriginal self-government are going to impact our operation and the sooner we get the surety on our financial situation, the better off we will be. I do hope the new rules for formula financing, after the 2005-06 period, are beneficial to the Northwest Territories.
An Expert Panel on Equalization and Territorial Formula Financing will provide recommendations on how funding should be allocated amongst the three territories. Through this process, although this process has a certain amount of the unknown, I do think it will be an opportunity for the Northwest Territories to get additional surety on our finances going into the future.
All indications are that our tourism industry is rebounding from the 9-11 terrorism attacks, SARS and the mad cow scares. The GNWT has to ante up to this industry. Again, this year's budget is void of any increases to what government spends on tourism. There continues to be only lip service paid to the industry. Where is the evidence that we are going to put our money where our mouth is in terms of support for our tourism industry?
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This will not be the last time I say this, but tourism needs more resources. Through the next year, I do look forward to working with the government and Economic Development Committee, as well as the Minister of soon-to-be ITI, to find some money for tourism.
As a territory, we have come a long way in addressing social needs and we still have a long way to go. As a government, we've increased base spending by over $200 million in the last five years in the social agenda. Where are the results of this investment? Our graduation rate is 43 percent. If you compare this to the smallest populated province in the country, Prince Edward Island, which has a graduation rate of 85 percent, it's abysmal and I think we have a great deal of work to do in this regard. I think it's time maybe that we even re-evaluate where the resources are spent and what our priorities really are.
Addictions are also an area that I believe this government is falling down on. Whether it's crack, gambling, cocaine, alcohol and other drugs, addiction and addiction services should be a high priority of this government.