GN will hold the limit on borrowing, Ng says

Hunter Tootoo, MLA for Iqaluit Centre, pressed Finance Minister Kelvin Ng this week to divulge the Government of Nunavut’s borrowing limit – and how close the GN is to reaching its limit.

The government has received several federal grants in the past few months that stipulate that the funding must be matched with an equal contribution by the GN.

But where will the GN, which by all accounts is broke, find that money? Tootoo asked Ng if the GN, like the NWT, would seek to increase its borrowing limit – and go even deeper into debt.

Ng said that the GN will maintain its $200-million borrowing limit, which includes a guarantee for Crown corporations including the Nunavut Housing Corp. and the Nunavut Power Corp.

He added that some of the GN’s contributions are included in the 2004-05 capital plan, which was released this week.

But he also said that the federal government is entering into these cost-sharing agreements with full knowledge that the GN is broke.

“The federal government is aware of the needs of Nunavut, and that is reflected in being able to access federal dollars without being penalized for our current situation,” Ng said.