SA¹ú¼ÊÓ°ÊÓ´«Ã½

Skip to content

MLAs raise concerns over slowing economy, GNWT spending

Denny Rodgers says he fears consequences of no meaningful economic growth outside of government
denny-rodgers
"We must streamline our regulatory regime," says Inuvik Boot Lake MLA Denny Rodgers. Image courtesy of the GNWT


Several MLAs figuratively raised red flags in the legislative assembly on Feb. 25 due to slow population growth, a stagnant territorial economy and growing government expenditures. 

Inuvik Boot Lake MLA Denny Rodgers said it's time to put the economy first. 

"My fear is that with no meaningful economic growth in any sector other than the government, much of our talent will leave or have already left," said Rodgers, who insisted that the NWT ought to take greater advantage of its abundant natural resources. "We must streamline our regulatory regime so that national and international businesses do not look at us as a place with too much regulatory burden that require too much time and costs that come with that burden."

He again made reference to a 2021 GNWT report that estimates up to 19 trillion cubic metres of natural gas in the Mackenzie Delta could be developed and exported.

"Maybe its time we start to look... at economic working groups that utilize the expertise we have in the regions," Rodgers suggested. "We have many long-term residents... that have worked across many sectors and have a vast amount of knowledge to share."

Yet another challenge is the tight labour pool, according to Yellowknife Centre MLA Robert Hawkins.

"As I talk to employers, they talk about their struggles of getting anyone to work," he said. "We cannot let it go unforgotten that we have people such as the construction workers, the landscapers and even the restaurateurs who are struggling at filling positions." 

A new strategy is needed to stimulate territorial population growth because GNWT jobs alone are not doing enough to entice people to the NWT, he said. 

The NWT's population has hovered between 44,000 and 45,000 people since 2015.

"Population growth is a barrier to our success. In other words, it isn't being done. It's the wall that we can't seem to get past," said Hawkins. "I don't know what it will take to wake this government up from its sleepy slumber of saying if we don't have people, we can't fill the jobs. If we can't have jobs, we can't have growth, etcetera, etcetera. It's a vicious circle."

A larger population translates into higher federal transfers and more tax revenue, he noted. 

"This territory is in dire need. We need people now more than ever," he said.

Dehcho MLA Sheryl Yakeleya urged the government to put greater emphasis on building the economy in small communities, such as the ones in her riding. 

"We need better options and workforce training in our small communities," she said, adding that Aurora College learning centre closures in June "unfairly target Indigenous communities" and will add to the disparity between those small communities and the NWT's larger regional centres. 

She also advocated for more business advice being made available to people in small communities and spoke of tourism opportunities. 

"People want to visit. We can show them the Dene culture, our land, our way of life. We need more support in tourism to help people in small communities to make a business idea into a reality," said Yakeleya.

Bad long-term strategy, MLA contends

Shauna Morgan, MLA for Yellowknife North, pointed to some highlights from the GNWT's $2.4-billion 2025-26 budget as causes for concern. As examples, she mentioned the $12 million allotted for offsetting increases in electricity rates is "not a sign of a robust economic foundation SA¹ú¼ÊÓ°ÊÓ´«Ã½” that's the sign our power system is in major trouble."

She noted that an additional $64 million was required for healthcare and said "we've got hemorrhaging healthcare costs." She attributed much of that to a population that is sicker and failing to get preventative and primary care earlier to prevent more serious illness.

"So that's not a sign of success. We're spending more, but we're not necessarily getting better results," Morgan said. "So we can't be both pointing to those things as the source of our fiscal crisis but then turning around and bragging about spending money on those things like electricity bailouts and healthcare costs to demonstrate that we're working on our priorities. You can't have it both ways...

"The message coming through is that we need to tighten our belts, do more with less, just hold on with our fingernails," she said, adding that government funds can no longer be thought of as a "bottomless well, as occurred in years past. 

Monfwi MLA Jane Weyallon Armstrong noted that the GNWT is less than two per cent away from reaching its debt limit of $1.8 billion. The territorial government, she said, "is in a difficult spot." 

"On a personal level, I used to live my life like the GNWT. When I ran out of money, I borrowed more money from the banks. This is a bad long-term financial strategy," said Weyallon Armstrong. 

Future borrowing should be limited to infrastructure projects that can pay for themselves and contribute to the economy, she advised. 
 



About the Author: Derek Neary

Read more



(or

SA¹ú¼ÊÓ°ÊÓ´«Ã½

) document.head.appendChild(flippScript); window.flippxp = window.flippxp || {run: []}; window.flippxp.run.push(function() { window.flippxp.registerSlot("#flipp-ux-slot-ssdaw212", "Black Press Media Standard", 1281409, [312035]); }); }