We're having a good day, Mr. Speaker. [No translation available].
Mr. Speaker, let me tell you a story about perseverance and determination. It's about a place where the people are as rugged as the land they call home; where, despite the vast distances between each community, everyone knows everyone. It's about a government that has been tested time and time again by flood, fire, and pestilence, and rose to the occasion when its people needed it most. I am, of course, telling the story of the Northwest Territories. I am proud to be a part of this story. The NWT is my home, and it's the most spectacular place on earth. Nowhere can you find such stark natural beauty, pristine nature, and bountiful resources. From the shores of Great Slave Lake to the riverbanks of the Mighty Mackenzie and all the way to the vast Arctic Ocean, Northerners have occupied these lands since time immemorial, and this is no easy task.
For most of the year, our climate is an active danger to those who are unprepared, and you never know when a wolf, bear, or wolverine is right around the corner. But this experience is what breeds resilience in our people and provides us with the spark of creativity and ingenuity to do so much more with so much less. This is the story of the North, Mr. Speaker. It is our story.
Today, a new chapter is being written and it comes with much uncertainty. Yes, inflation continues to challenge our cost of living. Yes, our diamond mines are closing. Yes, we face the likely imposition of US tariffs. And yet even so, I remain optimistic for our future for if we, as a territory so small in population but so big on ambition, can overcome so much with grit and nerve, well, we can overcome these challenges and build a stronger future for our children and grandchildren.
At $2.5 billion, this budget has the second largest revenue gain in the history of the Northwest Territories. We boast a double A credit rating and are on the cusp of unlocking more fiscal flexibility to invest in our future, grow our economy, and create good jobs for all our residents. We have renewed alliances with Indigenous nations and brought new resources in from the federal government to meet our most pressing needs. Canada's National Arctic and Northern Policy Framework promises new investment and security for our communities as they fulfill their destiny as the custodians of Canada's sovereignty in an international contest for dominance in the North.
Mr. Speaker, our economy may be changing but our government's historic strong financial stewardship has prepared us for what we have always known was coming. We’ve managed the boom and bust cycle before but this time we have built a robust public administrative sector in our economy that acts as a stabilizing force for the often unpredictable cycles inherent to natural resources. While some in the past may have questioned why the GNWT has expanded its workforce to such a degree, well, this is why - to serve communities in times of economic turbulence and captain our economy back to prosperity. Northerners have nothing to fear. This government has got your back and we will continue to fight for you no matter the cost.
Mr. Speaker, I have a confession to make - I think this a very lovely story but sadly it's not the one we heard earlier today, and it's not the tone that has been set by this Cabinet. It's easy, as you can see, to draw on the strengths of the GNWT as a foundation for progress, but instead we hear time and time again from this government a tone that is both simultaneously overwhelmed and underwhelming. The government is broke; we're on the edge of the fiscal cliff; there's no money for your priorities, and on and on and on. This gloomy messaging is so pervasive that yesterday a constituent asked me, and honestly I might add, if the GNWT was declaring bankruptcy and shutting down and if so, what would happen to their government-backed loans.
The Member for Deh Cho often tells me that language is key to personal and professional success, that through proper messaging and positivity anyone can make things happen. It is a very wise message but seemingly lost on our speech writers as a government. So let's get into, Mr. Speaker, and tell the story of this budget. It starts and ends in the same place: The status quo.
Despite loudly proclaiming the fiscal sustainability strategy at the start of this Assembly — without the collaboration from Regular Members I might add, the GNWT continues to spend taxpayer money with abandon. Forced growth and new initiatives are supposedly held at $10 million a year and yet again we have in excess of $90 million in new spending, an overall -- an overall increase to the entire budget of 6.5 percent from the last estimates to the tune of $145.5 million.
Mr. Speaker, how are we supposed to tell our public servants they can't buy new pens and copier toner when we can't stick to our own promises on fiscal management? As we speak, nurses in the ER aren't allowed to buy ginger ale for patients, but we can blow past our spending caps without blinking an eye. Oh don't worry, if we hit the debt ceiling we can just ask for another billion dollars from the prime Minister. We already have a borrowing limit that equals our sister territories combined.
The public accounts do not lie, Mr. Speaker, and they paint a troubling picture. All financial health indicators point to a worsening economy burdened with public debt and totally reliant on federal transfer payments. Last year our resource royalties were a whopping zero dollars, which should continue to alarm Northerners, not because companies aren't paying their fair share but because so few of them are paying at all. This cannot continue. This government needs to take fiscal sustainability seriously or stop talking about it altogether because we're trying nothing, and we're all out of ideas.
Not only is this government failing to meet its sustainability goals, but its failing to meet its mandate to deliver on the priorities of the 20th Assembly. Of $2.375 billion, only $147.5 million are being used to fulfil our priorities. That's 6 percent. What political system delivers budgets where 94 percent of spending is directed by unelected public officials rather than elected representatives? If this isn’t the tail wagging the dog, then what is, Mr. Speaker?
Mr. Speaker, there is another story I want to tell. It's about our potential to be so much more. My honourable friends of the Regular Member seats have pleaded with our decision makers to take more measured risks and swing for the fences. We have yet to see that happen. But let me give you an example of what could come -- from what could happen for the Northwest Territories from our commonwealth family.
The Channel Islands are an archipelago in the English Channel off the French coast of Normandy. They are divided into two United Kingdom Crown dependencies: The Bailiwick of Jersey, which is the larger of the islands, and the Bailiwick of Guernsey consisting of Guernsey, Alderney, Sark, Herm, and some smaller islands. When comparing the economies of Jersey and Guernsey, Jersey generally performs significantly better with larger GDP, higher GDP per capita, and stronger growth in recent years, largely driven by a thriving financial services sector, while Guernsey's economy has shown signs of stagnation or even decline compared to their neighbours. By the numbers, Guernsey's GDP is 3,488 million pounds, or $6,249 million Canadian, compared to Jersey's of 6.5 billion pounds, or $11 billion Canadian. This is a staggering difference between the two economies, and while there are many differences between the two states, the financial services sector is a major pillar of Jersey's economy, contributing significantly to its GDP. The growth and stability of this industry is not by accident. The island imposes a corporate tax rate of zero percent for most companies, with financial service firms only paying 10 percent, making it an attractive destination for businesses seeking tax advantages. A maximum income rate of 20 percent applies to people who establish residency in Jersey. Those prospective residents who are high net worth individuals must meet and sustain a minimum income of 1.2 million pounds, or about $1.5 million Canadian. Income that exceeds this minimum is subject to an additional 1 percent tax and while -- and no taxes are levied against capital gains or capital transfers.
So why are the affairs, Mr. Speaker, of these two tiny islands two oceans away important to this House? Because it shows how different that a change in tax policy has profoundly reshaped the fortunes of Jersey compared to its neighbour. This is a lesson we must learn in the Northwest Territories. There is no reason why Northerners need to be taxed to the level we are today considering the high cost of living and the many challenges to our continued growth. The revenues earned from personal and corporate income tax are dwarfed by federal transfers and the territorial funding -- territorial financing formula grant. Furthermore, decreasing tax revenues would not affect this funding formula, allowing us to keep earning a grant based on average taxation rates while we actually charge far less. This would be a huge incentive for corporations and individuals to relocate to the NWT to take advantage of these lower tax rates. We can also seek to negotiate an exemption to federal taxation here in the NWT to extend this advantage further.
Is this novel approach to tax policy that incentivizes the growth of a financial services industry a new thing? Absolutely. Is it risky? Totally. But when you consider that the generational changes that could be borne from such a move, we can't afford not to do it or something like it. Far too often this entire system of government is paralyzed by its own profound lack of imagination and ambition. We can and must dream bigger if we are to save the NWT from an economic crash that will be far worse than the austerity exercises that have been contemplated in the past. Instead of a cohesive plan that achieves balanced budgets while building a better future, we have a government that continues to fail to curb its own expenditures while actively making program delivery worse through marginal cuts. This has resulted in a loss of confidence from Northerners in our economy, not to mention a morale crisis that is spreading fast through the public service.
Mr. Speaker, it's time to get back on track. We have precious little time in this Assembly to course correct and start making the right investments in our future. It's time to undo the cuts that have hurt our constituents and start making some real change for our economy.
Mr. Speaker, here are some ideas that we can start moving forward on. We can end the income testing for extended health benefits that has added additional costs to constituents where many of them are telling me they are worse off today than they were a year ago when we first took office. We can end the consumer carbon tax and transition to a cap and trade model to ensure that polluters pay and consumers don't, and we take the tax burden off of everyday northern families and working people in the Northwest Territories. We can expand professional development funding for health care professionals who are currently limited to -- I believe it's $2,000 and have to share hotel rooms when they go to conferences instead of being able to learn and network at these important events and encourage more people, more health care workers, to come to the Northwest Territories. We can double the mineral incentive program, maybe even triple it, and expand that economic multiplier across our economy and bring more exploration projects into the Northwest Territories. We can expand community funding to 100 percent of what they're owed by our own formula financing. Let's find the money to do that because money spent on local economics has the greatest impact, far more impactful than money spent by the GNWT. We can cut tax rates for beer and cannabis producers. These are small industries, but they have the potential to create enormous growth. Right now, small brewers in Alberta employ more people than oil and gas. This is something that could support our tourism industry, and all they're looking for is a little help from our government.
Mr. Speaker, we need a rooting decision for the Taltson hydroelectric submarine cable line. We need to complete that expansion and bring power, cheap affordable clean power into the Slave Geological Province. We've waited too long for a decision. Now is the time, and this government needs to move forward on that as quickly as possible.
We need to expand community safety officer programs throughout the Northwest Territories. We have had one pilot on the books that continues to be extended. Communities are hurting. We just heard the honourable Member from Monfwi talk about it today. There are drug dealers in our communities. There is crime in our communities and community members don't feel safe. We can't afford to put a detachment in every community, but we can afford community safety officers.
We need to look at our NIHB commitments, our non-insured health care commitments, which are -- we operate on behalf of the federal government. And for why? We're not getting paid for that, and we're spending an enormous amount of our own treasure for something that we're not getting compensated for. We have a great partnership with the Council of Leaders, with Indigenous governments, all across the territory. Let's rely on them to get Ottawa to pay for this program that is their responsibility. And while we're at it, let's get them to cover Metis health benefits as well. These are decisions that require some political will and capital to achieve, and this is the kind of leadership that Northerners are looking for. We can cut costs by showing real leadership and going back to the negotiating table. It doesn't all have to be lost as to jobs and programs.
Mr. Speaker, Aurora College is not working. It's been very clear to me, and many Members of this House, that this institution is continuing to take -- we continue to throw good money after bad on this. The closure of the CLCs with no notice to this Assembly, or even the Minister, is shocking to say the least. And I think it's time we let them sink or swim on their own. I'm proposing a 30 percent cut to their funding. They should establish a foundation, do some fundraising, and find those resources on their own. It's time for them to learn how to be an independent institution and cut the GNWT leash.
Mr. Speaker, oil and gas needs to be part of our future as well. We are in an increasingly insecure time for Canada and for the West. We cannot rely on trading partners that we could ten years ago. We might not even be able to rely on the US. So we need to develop our own sources of energy. And now is the time to incentivize and encourage people to look for oil and gas resources in the Northwest Territories and develop the proven resource that we already have - Cameron Hills, the work that the Inuvialuit are doing on their natural gas plant and, of course, the offshore which comes up for renewal, the offshore moratorium which expires in 2027. Let's plan for that future because if we get one offshore drilling rig can replace -- or will exceed the royalties of all the diamond mines put together. And that is money we can invest in our future that doesn't come from taxpayers, Mr. Speaker.
Mr. Speaker, we continue to pay too much money on agency nurses, agency nurses that are taking away local jobs, local opportunities, and not providing continuity of care in our communities. These are expensive, unnecessary, and we need to solve the fundamental problems in our health care system with staffing and morale and not keep hiring expensive hired guns from the south that have no connection to our communities. Mr. Speaker, we need to phase them out. We need to phase them out by 2026.
Mr. Speaker, I talked about our friends in Jersey and Guernsey. Mr. Speaker, it's time for a tax cut for personal income tax. It's also time for a tax cut in corporate income tax. As I said, these are -- we'll lose some revenue but the gains of an increased population of taking the edge off the cost of living, these are things we should be looking for and things we can deliver, Mr. Speaker. And I understand that chambers of commerce, that local banks, they've looked at this, they've explored this, let's work with them and bring a proposal forward for the Minister of Finance to execute. Let's lower the taxes now. It's not time to wait on this. It's time to act. Let's get ahead of things and start building a generational change for our future.
Mr. Speaker, if we legalize online gaming, something that I'm proponent of, we could bring in 7 to $8 million, as much as that in additional revenue for no administrative cost. Just imagine what we could do with that extra money. Imagine the jobs it would save, the programs it would save, the debt we could pay off just from writing a piece of legislation or some regulations. This is something we must do. It's something that is long overdue. And I know the Minister has said he is supportive, so I look forward to working with all the Cabinet on that one because I think taxation is something we need. But we can't be afraid of it. We can't be afraid of these industries that have a bad reputation because they're there, they're happening, and as long as they're unregulated, we can't keep people safe from them.
Mr. Speaker, we are putting enormous burdens on our schools and students and teachers with curriculum changes, with decaying infrastructure, things we need to invest in. Some places haven't had school replacements for a long time. It's time to look at our schools and -- especially the decisions that we place on them and fund them properly, especially therapeutic services. These are at-risk services because they are expensive, they're difficult to staff, but without them our kids will be even farther left behind, and Indigenous kids, in particular, will be most hardest hit if we pull back on therapeutic services. Currently, in Yellowknife at least, it's the school boards who are providing the lion's share of that funding. We need to help them succeed.
Mr. Speaker, we can offer -- we need to incentivize frontline workers in our health care system. We can only do that if we start spending more money on shift premiums, on labour market supplements, on retention bonuses for frontline nurses, doctors, and allied health care staff. We need to make the floor a desirable place to be because currently people are fleeing it like it's on fire. And that's not good for morale. It's creating staff shortages. I can show you numbers that would make your head spin, Mr. Speaker.
Mr. Speaker, I have many more ideas, and we'll take time speaking about them, but this is what we should be looking at, ways to do business differently, not status quo budgets that aren't moving the needle. How many more times are we going to have the same thing presented in this House whilst we're being told we're not allowed to spend money? Sustainability is the order of the day. If sustainability is the order of the day, let's see some reductions and they're just not there.
So, Mr. Speaker, I will be reviewing this budget. I will be presenting further ideas, but I am unsatisfied, my constituents are dissatisfied, and they're alarmed. We need to do better as a government, and we need to build a better future for the Northwest Territories. And I look forward to the debates in this chamber because we are far from doing that with Budget 2025. Thank you, Mr. Speaker.
