Thank you, Mr. Speaker. I want to use my Member’s statement today to address the issue of long-term financial stability for the NWT. I believe we can partially achieve this goal through equity investments in our resources and resource development.
Currently, as Members are well aware, our revenues come from two main sources: about 75 percent from the federal government through the territorial funding formula and the bulk of the remaining 25 percent from taxes.
Well, these sources fluctuate sometimes quite a bit from one year to the next, making it difficult to budget for our yearly expenditures. Those expenditures, mostly service delivery costs, rise at about 7 percent per year, no downward fluctuation there, unfortunately.
To provide a stable funding source, the GNWT can establish an equity position in large resource projects or developments. Right now we have an opportunity in the Mackenzie Valley Gas Project, but to date the government seems to have shown no interest in investing in this project. That is not to say we haven’t spent money on the project. The 2009-10 budget includes new funding in the amount of $250,000 for the Mackenzie Gas Project; a contribution to the Aboriginal Pipeline Group. And this amount must be added to funds already given to the Aboriginal Pipeline Group for at least the past three years. So far the GNWT has spent on the Mackenzie Gas Project, through the Aboriginal Pipeline Group, to the tune of some $2.3 million or so. I believe that instead of giving that money away, we could be investing those same dollars to the benefit of all NWT residents.
Mr. Speaker, we have missed other opportunities to invest in projects which would return dividends for many years to come. Equity opportunities with the four diamond mines in the past have missed us by. I believe we must not let equity opportunity in the Mackenzie Gas Project pass us by as well.
Returns on investments in large infrastructure projects can be used to provide a nest egg for our children, our children’s children and future generations to come or these returns can provide the government with a consistent stable revenue source of which, at the moment, we have none. We all know too well that this government does not receive royalties from resource development in the NWT right now and for the foreseeable future; something that must change if we are to become more independent of the federal government.
Taking an equity stake in resource development is simply another financial option open to this government. I am definitely not advocating irresponsible or risky investment, but I am advocating that we consider a policy on equity. I am asking Cabinet to look into such a policy and will have questions for the Finance Minister later on. Thank you.
Thank you, Ms. Bisaro. The honourable Member for Weledeh, Mr. Bromley.
