Debates of June 6, 2006 (day 6)

Mahsi, Mr. Speaker. The high cost of northern living, Mr. Speaker, is an issue that affects each and every one of us every day. It is an issue that is often debated directly and indirectly in this Assembly. We have taken some steps to address this, Mr. Speaker. Last October, we passed motions in this Assembly on energy costs and the overall cost of living. We, through our committee system, requested the government to bring forward information and proposed actions on the high cost of energy and the high cost of living. They did so. I think they did so in a very useful and a progressive manner.

Mr. Speaker, in February of this year, this Assembly did something else. We passed a motion calling for an increase in the federal northern residency tax deduction and the ongoing annual indexing of this deduction to the cost of living.

Mr. Speaker, in the NWT, we have been told that on an annual basis we spend on average $2,000 more on food than the average Canadian, we spend an extra $2,400 on housing and our utility bills are $1,200 higher, yet the federal government’s northern residence tax deduction has remained unchanged since 1991, at approximately $5,475.

Mr. Speaker, in the recent federal budget, all Canadians received some limited degree of tax relief. We are going to see the GST drop by one percent on July 1st. Personal income taxes for Canadians have also been reduced. But what about the high cost of living here in the NWT?

Mr. Speaker, our own ability to make a universal, equitable change in the cost of living for all of our residents is very limited, but the federal government can. This is why we asked in our motion in February for our Premier to speak with the Yukon and Nunavut counterparts about a pan-territorial appeal to Canada to make this very progressive change. I will be following up with the Premier to see how he has advanced that request, Mr. Speaker. Thank you.

---Applause