Mahsi cho, Mr. Speaker. [English translation not provided.]
On June 14 I asked questions in the House about the cost of living issues in Tu Nedhe communities. I indicated people are having difficulty with the cost of living. However, today, as people and families try to better their lives and find work, government policy prevents them from maximizing the benefits of employment.
Mr. Speaker, the high cost of economic rent is a huge factor in small communities. A public housing client who lands a job in one of the mines impacts his or her rent upon returning from the first turnaround. This all too often results in individuals quitting their jobs and going back to $32 a month rent. Rapidly rising costs of fuel and the increasing power rate and other maintenance costs for homeowners in small communities are having a big impact on household budgets. Add to this the high cost of food in these smaller communities and the family budget is impacted much, much more.
Mr. Speaker, as a government we need to do something now to address this urgent situation. The outlook is not good, yet the government plans various taxes to erode the disposable income of a working person. The high cost of living and the current system of taxes do not support the working class in a smaller community. As a matter of fact, it makes it easier for one to make the choice of unemployment, to receive government assistance to provide for their family’s needs. In effect, Mr. Speaker, government policy will play a role in keeping people on income support and/or in public housing.
Without debt the average NWT family needs to earn about $90,000 a year to remain self-sufficient and self-reliant. The current average income in the Northwest Territories is $96,000. The average income is $117,000 in Yellowknife; however, the average income in Tu Nedhe is only $46,000. This means the government, on average, needs to subsidize Tu Nedhe families almost $44,000 to offset the impact of a higher cost of living in Lutselk’e and Fort Resolution.
If you want to stop the leakage, change the policies. This would result in lower costs of living and make it feasible to work and get off the government system.