Balanced budget focuses on fulfilling goals of Strategic Plan

2014-15 Budget

“This year’s budget reflects our continued commitment to the current and future social and economic needs of Nunatsiavummiut, while revitalizing our culture and language,” says the Minister.

Finance, Human Resources and Information Technology Minister Daniel Pottle today tabled a balanced budget that builds on the progress that has been made to meet the goals and objectives set out in the Nunatsiavut Government’s 2012-15 Strategic Plan.

“This year’s budget reflects our continued commitment to the current and future social and economic needs of Nunatsiavummiut, while revitalizing our culture and language,” says the Minister.

Of the $66.9 million budgeted for the 2014-15 fiscal year, which begins April 1, a total of $21.8 million is raised from own-source revenues, which includes a surplus of just over $2.2 million from the previous fiscal year.

A total of $45 million is set aside to deliver programs and services under the Fiscal Financing Agreement (FFA), which is negotiated between the Nunatsiavut Government and the governments of Canada and Newfoundland and Labrador every five years, or at other intervals agreed to by the parties. The FFA ensures funding is provided to the Nunatsiavut Government for the provision of programs and services to Inuit and other persons living in Inuit communities, at levels reasonably comparable to those generally prevailing in communities of similar size and circumstances in Labrador. As part of this agreement, the Nunatsiavut Government has to pay a percentage of its own source revenues back to Canada. In the 2014-2015 fiscal year, the amount projected to be paid back is approximately $555,000.

Other sources of revenue include personal income taxes and Goods and Services Tax (“GST”), received as part of tax agreements with the Government of Canada. The Nunatsiavut Government receives 95 per cent of all federal income tax received from residents of the five Inuit communities. About $3 million is collected from personal income taxes annually. Due to the completion of audits on these taxes from 2005-2010, the Nunatsiavut Government is able to bring into revenue $1.0 million that was previously remitted. The funds expected to be received from the GST in 2014-15 is $2.9 million, compared to $2.2 million last year.

Housing remains a major priority for the Nunatsiavut Government, notes the Minister, with a total of $7.5 million being set aside to help address a number of housing issues and initiatives.

“We are committed to developing and implementing a long-term strategy to look at all aspects of housing, as well as addressing current needs in our communities,” he says. “We remain hopeful that both the federal and provincial government will work with us to address this serious issue.”

The revitalization of Inuit culture and language is one of the top priorities of the Nunatsiavut Government’s Strategic Plan. This year’s budget sets aside funds for exhibit development and fabrication, to be completed in 2015-16. Funds are also being set aside for a number of language programs, including family Inuktitut nights, Inuktitut speak-offs, and implementation of the Labrador Inuktitut Language Program.

Another priority of the Strategic Plan is the transition of employees, not directly involved in the delivery of programs and services in Upper Lake Melville, to Nunatsiavut. To achieve this goal, $1.8 million is being set aside to address office space and staff housing requirements. As well, funds are being set aside for professional fees to assist with capacity building and human resource matters.

Nunatsiavummiut must be educated and well-trained to take advantage of opportunities in Nunatsiavut, notes Minister Pottle. Under the Fiscal Financing Agreement, $3.2 million has been appropriated for post-secondary education programs and services, which include the Post-Secondary Student Support Program and student services at the College of the North Atlantic. The Nunatsiavut Government will continue to enhance the funding received under the Aboriginal Skills and Training Strategy, with an additional $100,000 for the wage subsidy program.

It is important to ensure that the Nunatsiavummiut and Inuit companies are ready to take advantage of economic and resource-based activities in Nunatsiavut. Through the Economic Development Division, the Nunatsiavut Government will continue to invest $240,000 to explore private-public partnerships, business opportunities, economic strategies and provision of business seminars for current and future businesses in Nunatsiavut.

The Tourism Division is investing in the Northern Ranger experience package and continues to support and work with the Nunatsiavut Group of Companies for the Torngat Mountain Base Camp and Research Station.

The Nunatsiavut Secretariat has appropriated funds to hire a consultant to review energy needs and begin the process of developing an energy strategy, which would include addressing green energy sources, an important issue when attracting businesses to Nunatsiavut.

The Department of Lands and Natural Resources is continuing to establish a fund for the purchase of fishing opportunities, such as licenses and quotas. As well, the Department will continue to fund research on salmon for the Rigolet area. The Environment Division has budgeted for the continuation of the Lake Melville Baseline Environmental Study as well as the Sustainable Communities Initiative and the Nain Research Centre.

A total of $20 million from the FFA has been appropriated under the Department of Health and Social Development for programs and services, including, but not limited to, Mental Health and Addictions, Non-Insured Health Benefits, Suicide Prevention and programming for youth and elders.

“This year’s budget represents a significant investment in our future,” says Minister Pottle. “By meeting the goals and objectives of our Strategic Plan, the Nunatsiavut Government will be better positioned to create employment and other economic opportunities, while protecting and preserving our culture and way of life.”

Media Contact:
Bert Pomeroy
Director of Communication
(709) 896-8582
(709) 933-3777
bert_pomeroy@nunatsiavut.com

 

BACKGROUNDER

Nunatsiavut Secretariat

• The overall budget for the Nunatsiavut Secretariat, which includes the President’s office, has been increased by 0.5 per cent, or $9,800, from the previous year.
• The Secretariat will continue to implement its goals under the Nunatsiavut Government’s Strategic Plan, including exploring green energy, negotiations with respect to the Mealy Mountains National Park, moving forward with policy development and information management of corporate documents and data.

Nunatsiavut Affairs

• Under the FFA budget, a total of $7.5 million has been appropriated for housing, of which $2.5 million is being carried over from the 2013-14 fiscal year related to the Nunatsiavut Government’s planned housing strategy. A total of $1 million is being set aside to complete a housing risk assessment, to establish housing charettes with the goal to design a multi-unit housing complex, and to assist with the construction of a prototype.
• $2.4 million has been appropriated to Torngat Regional Housing Association to continue with the delivery of its programs.

Lands and Natural Resources

• The budget for the Department of Lands and Natural Resources has decreased by nine (9) per cent from the previous year.
• While there are no significant changes in current projects or programs, the Nunatsiavut Government is continuing to establish a fund for the purchase of fishing opportunities, such as quotas and licences. Funding for this will come from fees received from fishers and fishing enterprises.
• Research will continue on possible locations for a counting fence to monitor salmon in the Rigolet area.
• Funding is being provided for the continuation of the Lake Melville Baseline Environmental Study, the Nunatsiavut Government’s Sustainable Communities Initiative and the Going Off, Growing Strong program, as well as other ongoing initiatives.

Culture, Tourism and Recreation

• The overall budget for the Department of Culture, Tourism and Recreation has increased by 20 per cent over the previous year.
• A total of $250,000 has been budgeted towards exhibits for the planned Illusuak Cultural Centre.
• A contribution of $75,000 is budgeted for the Torngat Recreation Commission to support activities.
• The Labrador Inuktitut Training Program will enter into implementation phase during the new fiscal year.
• An Experience Development Specialist position will become permanent, with new marketing programs being planned and implemented.

Education and Economic Development

• The Department of Education and Economic Development will see a slight decrease in its budget from 2014-15 since it has successfully received funding from the Atlantic Canada Opportunities Agency for its activities.
• The Department will continue to implement priorities under the Nunatsiavut Government’s Strategic Plan in relation to education, capacity building and development of economic opportunities.

Finance, Human Resources and Information Technology

• The budget for the Department of Finance, Human Resources and Information Technology will be increased by 2.3 per cent over last year to strengthen and formulate policies, as well as to finalize all components of the Nunatsiavut Government’s plan to transition employees to Nunatsiavut.

Health and Social Development

• There is no significant change in the budget for the Department of Health and Social Development over 2013-14.
• $20 million from the FFA has been budgeted to support programs and services for Labrador Inuit, including, but not limited to, Mental Health and Addictions, Non-Insured Health Benefits, community programming, suicide prevention, and programming for youth and elders.

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