Thank you, Mr. Speaker. Mr. Speaker, I am pleased to provide my colleagues with an update on the department's progress on implementation of the new deal for NWT community governments and the ongoing support provided to communities as we move forward on this initiative.
Mr. Speaker, I recently met with the board of directors of the Northwest Territories Association of Communities to brief in detail on the funding announcements in the budget address regarding the new deal. I am pleased to advise that the association has welcomed this announcement and has reaffirmed their interest in continuing to work with my department to implement this exciting initiative. When fully implemented, it will result in expanded authorities and predictable revenues for all community governments to use to advance community priorities.
As Members of this Assembly heard in the budget address, there are a number of exciting details around the new deal on the horizon. Beginning in the 2005-06 fiscal year, we are transferring property tax revenues in the general taxation area to community governments. This is an interim step to making hamlets and charter communities municipal taxation authorities in 2008.
The taxation revenues will flow to community governments on an unconditional basis, however communities will be encouraged to use the funding for infrastructure development or related O and M.
As well, Mr. Speaker, with $1 million in planning and design funding in 2005-06, we are preparing to implement the separate allocation for community public infrastructure in the GNWT capital plan, effective in the 2006-07 fiscal year. We will allocate an incremental $413 million for infrastructure in non-tax-based communities and an additional $43 million for tax-based communities through a formula allocation that will be developed in consultation with the Northwest Territories Association of Communities. This predictable stream of funding, when combined with property tax revenues, federal gas tax funding, GST rebate and other sources of own-source revenues, will provide community governments with the flexibility to plan and construct community infrastructure, based on local needs and priorities.
The NWT new deal represents a fundamental change from today's approach. We recognize this will require ongoing support, advice and assistance to community governments as we make this important transition.
MACA recognizes the challenge that implementing the NWT new deal brings to some of our communities. Some communities do not have staff available to plan for and manage capital projects or to maintain existing and new infrastructure.
Other communities may not be equipped to undertake the administration functions that will accompany municipal taxation authority status.
To address these issues, Mr. Speaker, MACA plans to explore options for innovative capacity building at the community level through the work of the School of Community Government. This will be a primary focus of the new deal and we will work to ensure that community governments are ready, able and supported to the degree that they want and need to be, in taking on these new responsibilities. As the work on the new deal progresses, the department will collaborate with the Northwest Territories Association of Communities and community governments to develop workable transition plans that address capacity issues.
Mr. Speaker, the new deal for NWT community governments is a key priority for our government and the department is committed to working with our key partners, including the Northwest Territories Association of Communities, to ensure that communities are ready, willing and able. Thank you, Mr. Speaker.
---Applause