Debates of February 10, 2005 (day 33)

Thank you, Mr. Speaker. I will be looking for a short answer from the Minister of MACA.

---Laughter

The song I sang in my Member’s statement from Sesame Street, Mr. Speaker, is very old, and it is as old as the issue of hamlet versus village in Fort Simpson. I would just like to ask the Minister of MACA, what is his position on where Fort Simpson belongs in terms of its municipal status with regard to hamlets, or does he see it belonging with the tax-based communities? Thank you, Mr. Speaker.

Thank you, Mr. Menicoche. The honourable Minister of Municipal and Community Affairs, Mr. McLeod.

Return To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. Mr. Speaker, I don’t think it is my position to side or give my opinion as to where I personally think the Village of Fort Simpson should belong, whether a tax-based or a hamlet. My job as Minister of MACA is to ensure that we have healthy and prosperous communities. If Fort Simpson has a problem with financing in the capacity of village status, I would certainly want to talk to them about it. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Supplementary, Mr. Menicoche.

Supplementary To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. What is happening is that the honourable Member for Great Slave was talking about formula financing, and that is some of the similar arrangements that our government has with the communities. What has been happening is that it has been reduced quite drastically from $1.4 million in 2002 to where it is today. I think we are running at $800,000, and the village cannot run with those drastic cuts in a skeleton budget. I am just wondering how the Minister sees the village capitalizing on the new one-third/one-third/one-third financing deal that is so good for the communities. Thank you very much, Mr. Speaker.

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. Mr. Speaker, in the last little while, we have had very good success in negotiating new pools of money for the communities to deal with some of the infrastructure deficit that we are facing. We have had an agreement or we received assurance that the money for the gas taxes is going to be rolled out in a certain way. That formula has been shared with us. We know we are going to get $37.5 million over the next five years under that program. We also heard today the Finance Minister announce that we will be looking at a base funding for capital for communities of $25 million. That is going to be starting to roll out the year after. We also have some money being allocated to us through the municipal rural infrastructure funding. This is the only program that requires matching funding at this point. We are looking at ways that we can accommodate some of the need to match the funding through our capital programs. We are trying to make our programs flexible enough so that we can accommodate the requests from the tax-based as well as the non-tax-based. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Supplementary, Mr. Menicoche.

Supplementary To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. Once again, I would like to go back to see where the department stands on reverting the Village of Fort Simpson back to a hamlet. Recently I was made aware that Fort Simpson will not have the financial capabilities in 10 years to at least increase their tax assessment roll. This growth won’t be a factor. I would like to ask the Minister is it his department resisting changing the Village of Fort Simpson to a hamlet? Thank you very much.

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. No, Mr. Speaker, we are not resisting. We have entered into discussions. We have initiated a study to look at the pros and cons of hamlet versus village. We want to be able to assure the community that the funding formula is calculated fairly and also that the money is factored in. All of the components that have to be factored in are also fair. This year, 2005-06, we are reviewing our community government funding policy, and we will be looking at all of the different communities to see how this rolls out and see which communities are being affected negatively. We also have committed to the Village of Fort Simpson, and I have had this discussion with the mayor, that we will take the time it requires to look at the formula. We will have a discussion. We will bring in resources to see where there may be a shortfall. If the formula is actually indeed flawed, then we should have a discussion about it and look at rectifying that. I have made that commitment to the community. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Final supplementary, Mr. Menicoche.

Supplementary To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. I believe I know where the flaw in the formula is. It is the line that says village or hamlet, Mr. Speaker. I understand that current legislation does not include a process for cities, towns and villages to change their status to hamlet. Would the Minister be prepared to introduce a bill in this sitting that would amend the legislation to allow Fort Simpson to become a hamlet? Mahsi cho.

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 358-15(3): Municipal Status Of Fort Simpson

Thank you, Mr. Speaker. I don’t think we would have all our review completed before the end of this session. I would point out, however, to the honourable Member, that the village was operating in the capacity of a village for some time. It has only been in the last while that they have been experiencing some problems. There have been programs to provide subsidy to a number of communities. This community has been one of them. We want to take a good look at it. Let’s find out where the problem is. If there is a problem, is it how the village spends its money? Is it the formula? What is causing the shortfall? Then we can move on to the next step from there. I can’t say with any certainty right now what that next step is going to be until we take a good look at it. We have a study that has been underway. We have been working at it. We have looked at it. We have seen the first draft. We have provided our input and our comments on it. It has gone back. We are expecting to have the final draft come forward by probably the end of February. I would appreciate if we could just take the time to look at it fairly and make our judgment call from there. Thank you, Mr. Speaker.