Nunavut MLAs pay the bills, then scram for summer

Housing Minister Hunter Tootoo announces a $60 million cost overrun at the Nunavut Housing Trust during a May news conference. MLAs passed the neccessary bills to cover much of those costs last week, including $16 million in cuts to government departments. (PHOTO BY CHRIS WINDEYER)

MLAs wrapped up their summer session by paying part of the bill from the $60-million Nunavut Housing Trust fiasco.

Legislators passed Bill 31, a $16-million supplementary appropriation, before the assembly ended a marathon session around 8 p.m. June 10.

Finance Minister Keith Peterson told reporters most of the cuts came from unfilled positions and slashing expenses like travel and benefits.

“We told the departments to stay away from the programs and services because we still want to deliver programs and services to Nunavummiut,” he said.

Cuts contained in Bill 31 include:

• $5.2 million from the Department of Community and Government Services;

• $2.7 million from the Department of Education;

• $2.3 million from the Department of Justice;

• $1.7 million from the Department of Finance;

• $806,000 from the Department of Economic Development and Transportation;

• $726,000 from Nunavut Arctic College;

• $715,000 from the Department of Culture, Language, Elders and Youth;

• $685,000 from the Department of Human Resources; and

• $526,000 from the Department of Executive and Intergovernmental Affairs.

Peterson said departments, except for Health and Social Services and Education, were expected to trim three their operating budgets by three per cent each.

The Department of Health and Social Services wasn’t asked to cut anything, since escalating health care costs always push it over budget every year anyway.

That likely helped appease MLAs who were reluctant to chop program spending to pay for the housing trust shortfall.

“I don’t want services that we really need to invest on, like education, suffering because of this exercise,” said Iqaluit West MLA Paul Okalik, during debate on the appropriations in committee of the whole June 8.

Peterson even said the fiasco showed that the GN has financial flexibility and can reallocate money in emergencies.

Quttiktuq MLA Ron Elliott said he wants the GN to take financial management lessons from the debacle.

“This is helping the government be more realistic with their budgeting,” he said.

The GN also put off $22 million in capital spending and dipped into its contingency fund for $2.3 million to help pay for the cost overruns, where were produced mostly by labour costs, at the housing trust.

Meanwhile, the Nunavut Housing Corporation is making $18.9 million in cuts of its own to make up the rest of the difference.

Housing Minister Hunter Tootoo was fortunate to escape the session with his cabinet job, after Okalik floated a motion calling for Tootoo’s removal from executive council.

That motion never came to a vote, but MLAs left for the summer warning Tootoo he’s on thin ice for his performance as minister.

Nanulik MLA Johnny Ningeongan went so far as to say Tootoo is on “probation.”

On the last day of the session Tootoo thanked MLAs for their work on the legislation needed to cover the $60 million, which will allow the government to complete construction of hundreds of homes this summer.

He also vowed to get the housing corporation’s finances in order.

“Accountability has been demanded by my colleagues and rightfully so,” Tootoo said June 10. “The Nunavut Housing Corporation realizes the seriousness of the over-commitments under the trust and has implemented the necessary financial controls which were previously missing.”

An audit of the Nunavut Housing Trust is underway by accounting firm Deloitte & Touche and is expected by the end of the summer.

Bill 31 was one of 14 bills granted royal assent by new Commissioner Edna Elias, before MLAs scrambled out of the capital for the summer.