'No sacred cows:' N.W.T. budget prepares people for program, staff cuts

The N.W.T.'s government's 2016-2017 budget was met Wednesday with a mix of relief and seeming acceptance of potential, though not severe, belt-tightening. 

"Well, nobody said the word austerity," said Mike Bradshaw, executive director of the N.WT. Chamber of Commerce, about the months of pent-up (and ultimately bloated) anxiety about large-scale government layoffs.

There were indeed cuts announced or confirmed, including 58 employees put on notice of a potential layoff, but even organizations whose budgets are being slashed met the news with a surprising degree of understanding.

"There are no sacred cows; revenue is going to be tight," said Darrell Beaulieu, chair of the N.W.T. Business Development and Investment Corporation, a Crown corporation that gives out loans to businesses in the territory.

The government is proposing to cut BDIC's core funding by $493,000, but Beaulieu says that just means BDIC will have to get creative with its money, and perhaps partner with aboriginal-owned development corporations or aboriginal governments.

"You can't just depend on government all the time. We've got to be able to partner. I think that's going to be the key," he said.

Shuttering oil and gas office 

The Mackenzie Valley Petroleum Planning Office in Hay River is being closed.

Bradshaw of the chamber of commerce thinks that's a smart move.

"Everyone, including the premier, is saying we're not going to have any oil and gas activity for the next 10 years," said Bradshaw.

"Let's take those resources and put them back into the mining development department because that's where our future is ... At least, that's where our best guess is."

Ben MacDonald, a member of Alternatives North, said he thinks there's enough talk of mining already in the budget.

"There's a lot of talk about diversification of the economy, but then we don't really see that in the numbers that are presented here. The biggest areas that got attention are the commodities," he said.

The Come Make Your Mark Campaign, which tried to attract people to come live and work in the territory, is also being shuttered.

"If it doesn't prove results, don't do it," said Bradshaw.

Airline fees

The government outlined several ways it hopes to raise that much-needed money, including an increase to the landing fees airlines pay to the territorial government.

"I'm not so sure that the airlines are going to be happy with an increase," said Wendy Bisaro, the former MLA for Frame Lake. 

"I know it's a really tight line for profits right now with Northern airlines."

The government also wants to introduce airport improvement fees for flyers booking tickets to and from Yellowknife.

Kevin O'Reilly, Bisaro's Frame Lake successor, says that goes against the government's stated goal of not affecting N.W.T. residents' pocketbooks.

"The minister today spoke about how there's no new taxes but at the same time we're introducing airport improvement fees that are going to increase the cost of living and cost of air travel," said O'Reilly.

He says the government is not giving enough consideration to other revenue raising options, such as a tax on sugary drinks or making "high-income earners" pay more in income taxes. 

But he said those fights will have to wait for future budget sessions.

"I don't think the government was prepared to go at it this time."