Debates of June 7, 2006 (day 7)

Thank you very much, Mr. Speaker. My questions are a follow-up as a result of my Member’s statement with regard to O and M and the Department of MACA. I’m sure that, well, perhaps the Minister can tell me, Mr. Speaker, if the department is aware of the gap that already exists in the new funding formula for transferring the responsibility of O and M to the communities. It really, really makes sense to everybody’s eyes, but using a three-year rolling average just doesn’t work, just because of the increase in energy costs. I’d just like to know if the Minister is aware of this, have the communities contacted him and what’s the initial plan to address this? Mahsi.

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

Return To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you, Mr. Speaker. Mr. Speaker, we have been working on a number of funding allocations that we provide to the communities. We have had discussions with the NWT Association of Communities. We have had discussions with LGANT, Local Government Administrators in the Northwest Territories, and we’ve also had a discussion in the communities with the different municipalities about a number of areas where we provide funding. Of course, the New Deal is something that’s on the drawing board and we have rolled out the information and communications to the community. We’ve also been allocated some new dollars to put towards the capital infrastructure in the communities and this has increased from $17 million to what it is now at $28 million. We’ve provided that information and we continue to provide that information for the communities. As part of this process in reviewing community governance, we’re also reviewing the water and sewer subsidy and we are also having discussions regarding the O and M for the community for governance. We will continue to do so. We have another round of discussions happening this spring and we plan to bring some of that information forward when we complete all those discussions. Thank you.

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

Supplementary To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you very much, Mr. Speaker. Is the Minister’s approach to a discrepancy between how much a community spends and how much a community will receive through this complex funding formula, will that be addressed this year or is that something that the communities can discuss and raise with the Minister soon, because it will impact their current year’s budget, Mr. Speaker?

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you, Mr. Speaker. Mr. Speaker, yes, there is and some discussion has already taken place. There is discussions and concerns brought forward by the two associations that we work with and have working groups with. We have had discussions with the community. We’ve been alerted of areas of concern. For the most part, the communities have come back and informed us that the funding formula is okay but the funding amount may be not adequate. So they’re asking us not to change the formula, but maybe look at the amounts that are allocated through the formula and that maybe we need to do something in that area. We hope to have all this information in place and have some decisions so that we can bring some of this stuff forward during the business planning this fall. Thank you, Mr. Speaker.

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

Supplementary To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you very much, Mr. Speaker. I have been in contact with the Minister’s office to advise him that this fiscal year…and he’s absolutely right; the communities are happy with the formula, it’s just that because of the rising energy costs in the last six months, like, this formula probably took some time to work on, the six months that they took to work on this formula is just when the gas and fuel prices were rising, Mr. Speaker. Will the Minister address this year’s shortfall this year as opposed to waiting until next fiscal year? Thank you.

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you, Mr. Speaker. We always take the position to deal with the communities that accumulate a deficit and I’d like to point out we only have, I think this year we have four communities that have accumulated deficits and we continue to work with a recovery plan, we work on doing analysis where they may have overspent or where there are issues about shortfall. So we’ll continue to do those things. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Your final supplementary, Mr. Menicoche.

Supplementary To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you very much, Mr. Speaker. No, the issue is that there is already a shortfall because the funding that communities are getting is based on a three-year average, but the average did not include the skyrocketing increase in the O and M, which is basically fuel. So that’s the shortfall that the community has asked me to address. Will the Minister look at some type of funding options to provide, to prevent this hardship for this fiscal year? Mahsi cho.

Thank you, Mr. Menicoche. Mr. McLeod.

Further Return To Question 72-15(5): Transfer Of GNWT Programs And Services To Communities

Thank you, Mr. Speaker. Mr. Speaker, the budgets for this year have already been set. I would have to take that under consideration and review the situation with each community. Each community has unique needs and we have historically dealt with the communities and tried to address the issues that are causing them concern and will continue to do so, and if there’s a mechanism of working some kind of fiscal arrangement, then we’ll explore those options. Thank you, Mr. Speaker.