Thank you, Mr. Speaker. Mr. Speaker, the announcement in the budget address of $3 million to increase funding for water and sewer services was, I am sure, welcome news to NWT municipalities who are, like everyone else, struggling to keep up with the rising costs of labour, utilities and materials. Given the overall increase one would have expected that all municipalities could look forward to receiving at least, if not greater funding compared to the previous years.
Unfortunately, Mr. Speaker, this is not the case for Hay River, which under the New Deal for community
governments will see its funding for water and sewer services cut by $200,000. This is a decrease of 36 percent.
MACA's new water/sewer subsidy formula takes into account municipalities' fixed and variable costs, as well as their ability to raise revenues. Unfortunately, it seems that MACA has taken a cookie cutter approach when it comes to calculating the variable costs.
As I reminded the Minister on Friday, the Town of Hay River is responsible for trucked water and sewer services all the way from the West Channel to Paradise Valley, which is a distance of almost 30 miles, and I'm not aware of any other NWT community that provides services over such a large area. It seems obvious to me that costs like fuel, vehicle maintenance and person hours are going to be much higher when the service is provided over a 30-mile distance versus a one to three-mile distance, which I think would probably be the case in most NWT communities.
I believe the GNWT has historically recognized the extra cost of providing services along the Hay River corridor and funded the town accordingly. I, therefore, have to take issue with the Minister's suggestion last Friday that Hay River has been over funded in past years. In response to my questions on Friday, the Minister indicated that he expects Hay River to take funds from capital or other O and M programs to cover its $200,000 shortfall for water/sewer services. What kind of solution is this, Mr. Speaker? Is this the kind of financial management advice that MACA is handing out? Capital funds are for capital. That is why we have a Water/Sewer Subsidy Program to fund water/sewer services.
If the formula isn't quite right, if MACA has overlooked the fact that Hay River provides trucked services over a 30-mile corridor, then the Minister, I would respectfully suggest, may want to fix the formula, not to tell the town to dip into other pots of money for intended other uses. Later today, Mr. Speaker, I'll have more questions for the Minister of MACA on the water/sewer subsidy for Hay River. Thank you, Mr. Speaker.
---Applause