Federal budget offers thin gruel to Nunavut

Jim Flaherty’s 2011-12 budget, tabled March 22 in the House of Commons, provides $4.2 million to hire more judges and prosecutors for Nunavut, a pressing need highlighted last year by the territory’s chief justice. But apart from small measures for adult education, clean energy promotion, and student loan relief for young doctors and nurses in remote regions, there’s little in it for Inuit or the Nunavut territory. (FILE PHOTO)

Federal finance minister Jim Flaherty tabled a budget mostly devoid of major initiatives for the North, as the Conservative government tried to craft a document that whittled down Ottawa’s deficit.

The budget forecasts that Canada’s deficit will drop from $40.5 billion to $29.6 billion over the next year.

There aren’t many major new spending programs or tax changes, but the document contains an array of smaller initiatives aimed at a wide variety of interests.

Not surprisingly, Leona Aglukkaq, Nunavut’s MP and the federal health minister, sang the budget’s praises, particularly the $1.2 billion in federal transfers Nunavut is due to receive this year under the Territorial Formula Financing agreement.

“This is a great budget for the North,” she said.

Of note for Northerners is a plan to forgive up to $40,000 of the federal portion of student loans for doctors who practice in rural and remote communities.

Nurses and nurse practitioners will be eligible to write off up to $20,000 of their student loan debts.

“There are Nunavut (nursing) students who incur debt, so this is important,” Aglukkaq said.

The only big-ticket infrastructure item for the North is $150 million for the construction of a road from Inuvik to Tuktuyaktuk in the Northwest Territories.

Otherwise, the multi-million dollar projects of previous years are replaced with small and targeted programs including:

• $9 million over two years for expanded adult education programming in the three territories;

• $8 million over two years to promote the use of clean energy in Aboriginal and Northern communities; and.

• $4.2 million to help Nunavut hire more judges and Crown prosecutors.

Mary Simon, president of Inuit Tapiriit Kanatami, said she welcomes those specific items, as well as debt forgiveness for northern health care professionals, but said the budget doesn’t do enough to tackle the social problems facing Inuit.

“I am pleased by a number of measures that speak to longstanding Inuit concerns, such as the recruitment and retention of health care providers and increased resources for adult education programs,” Simon said in a statement.

“But I am concerned at the lack of any new funding for social housing or Arctic mental wellness facilities – for the second year in a row.”

Western Arctic MP Dennis Bevington dumped on the budget as a whole, though he offered lukewarm praise for the Inuvik-Tuktuyaktuk road.

“Building roads in the Northwest Territories will actually make money for the federal government in conjunction with things like pipeline and development of natural gas.”

But he called the Conservatives’ measure to entice doctors and nurses to remote communities a half measure.

Bevington said health professionals are so much in demand around the world that writing off up to $40,000 in student loans may not be enough to lure doctors to practice North of 60.

“We don’t think that approach would [be] adequate,” he said.

The budget also extends the 15 per cent mineral exploration tax credit, worth $120 million per year.

And it extends, at a cost of $870 million over two years, a popular program that offers tax credits for homeowners who retrofit their homes to make them more energy efficient.

The budget also offers an additional $600 per year for low-income seniors, or $840 per couple. And it provides $27 million over two years to improve weather services offered by the Meteorological Service of Canada.

But if the budget was designed to convince one of the opposition parties to support the government, it failed. All three opposition leaders slammed the budget and said they’ll vote against it.

That means a federal election this spring is virtually certain.

With files from Postmedia News