Thank you very much.
We'd like to thank the Standing Committee on Finance for the opportunity to appear before you as part of your consultations and preparation for the 2018 budget.
The NWT Association of Communities represents all 33 communities in the N.W.T., from the smallest of Kakisa, with a population of 52, to Yellowknife, with a population of approximately 22,000. We advocate on behalf of our members, deliver programs, share information, and provide numerous member services.
This submission focuses on three major priorities for federal action in the upcoming budget: infrastructure funding and climate change, increasing the supply of housing, and restoring tax exemptions for expense allowances paid to municipally elected officials.
First, on infrastructure and climate change, it has been very heartening to see additional funding being allocated to municipal infrastructure in the last few federal budgets, especially the allocations that are base plus. We would strongly encourage this to continue and to be enhanced.
Great inroads have been made in ensuring that additional funds are allocated to the north and, for the most part, many of the new infrastructure programs have been evolving to embrace many of the recommended parameters that you will find in detail in our written submission.
Building communities in the north is important for local, social, and economic sustainability. A recent study completed by the Conference Board of Canada's Centre for the North showed that, for every $1 million invested at the community level, 13 jobs are created as compared to roughly half that for federal and territorial direct spending.
In this time of climate change, many additional expenditures will be required as well in order to ensure the sustainability of communities and the territorial economy. Climate change is both a challenge and an opportunity in the north. The NWTAC has completed a study showing that the fiscal impacts of permafrost decay alone on public infrastructure will be in the order of $1.3 billion. This will prove to be an additional burden, but it will also be an opportunity in the future.
Given the role this region plays in national sovereignty and supporting resource development, these investments should be seen as critical to nation building.
These improvements will result in equalization of regional opportunities, reduction of geographically based obstacles to improve standards of living, and comparable economic development. Construction and service industries will benefit from the ability of municipalities to effectively access and spend funds in the northern economy and provide training and management development opportunities. Northerners’ standard of living will be increased by the improvement of community services.
As well, programs that encourage the development of territorial projects, which will encourage trade, including highway development projects like the one undertaken for the Mackenzie Valley Highway, will have significant impacts on economic development and will increase the resilience of communities on that route to climate change.
The second priority is increasing the supply of housing. In the majority of N.W.T. communities, heavy reliance upon public housing is required as a result of high unemployment and the lack of a private housing market. Relative to the rest of Canada, more N.W.T. residents live in crowded conditions, and their houses are more in need of major repair. The percentage of households in core need stands at 12% in communities considered to have a private housing market and 42% in non-market communities. The N.W.T. Housing Corporation routinely reports waiting lists for housing units in excess of 400 applicants.
Although we have seen some progress on this front in recent budgets, more needs to be done. Progress on overcoming the deficit of affordable, adequate, and available housing in the N.W.T. cannot be achieved without a renewed federal commitment to fund the construction and renewal of social housing. Chronic homelessness and inadequacy of housing must be eliminated through proven strategies and tax incentives, or other measures must be used to stimulate new rental and affordable housing construction. Special territorial funding transfers are required to preserve and renovate existing social housing units. This funding will also serve as a stimulus to the local economies where houses are being constructed and maintained.
Finally is the restoration of tax exemptions for expense allowances paid to municipally elected officials. Recruiting candidates to run for municipal council is a challenge in the N.W.T. Often, many positions are acclaimed or have no candidates at all. The loss of the exemptions for expense allowances paid to municipal elected officials will exacerbate this challenge. The removal of this exemption may stress municipal budgets in order to ensure that salaries do not drop.
Thank you again to the committee for this opportunity to present our perspective to you.