Northwest Territories Member of Parliament Michael McLeod this week defended his governmentSA国际影视传媒檚 response to northern affordability and the cost of living.

SA国际影视传媒淕iven the challenges with our supply chains, given the uncertainty of the war in Ukraine, we may see an increase in prices stay in place for some time,SA国际影视传媒� he said in a telephone interview with Northern News Services on March 15.

SA国际影视传媒淲hether thatSA国际影视传媒檚 into the summer, ISA国际影视传媒檓 not sure. ThatSA国际影视传媒檚 all speculation.SA国际影视传媒�

SA国际影视传媒淪o I think people have to be prepared to manage their finances accordingly. WeSA国际影视传媒檙e unsure how long this is going to last.SA国际影视传媒�

McLeod admitted that high prices, including at the pumps, remain a serious challenge and that the situation could stay that way for the foreseeable future.

Although the federal governmentSA国际影视传媒檚 incremental carbon price increases will see another rise on April 1 for most of the country, he said that should not be confused for why gas prices are so high.

SA国际影视传媒淚 think we need to be very clear that the price people are paying for gas right now, those increases are driven by global market forces, not by the price of pollution,SA国际影视传媒� he said.

SA国际影视传媒淥n April 1, the price will increase for most of the country, but in the NWT because the pricing system first took effect on July 1, 2019, the [new] increase will not take effect until July 1, 2022.SA国际影视传媒�

McLeod pointed out that are other savings including that 16 communities SA国际影视传媒� those without year-round road access SA国际影视传媒� wonSA国际影视传媒檛 see gas price increases at all as fuel for those locations were purchased last fall.

SA国际影视传媒淲e need to be clear that in the Northwest Territories, the GNWTSA国际影视传媒檚 carbon levy does not apply to aviation fuel,SA国际影视传媒� he said.

SA国际影视传媒淭hereSA国际影视传媒檚 also a 100 per cent rebate on the heating fuel being applied at the point of purchase.

SA国际影视传媒淲e also have to recognize that the GNWT has introduced a cost of living offset through the Canada Revenue Agency, which provides $260 per year per adult resident and $300 a year for each child in the upcoming fiscal year.SA国际影视传媒�

Jennifer Phillips, executive director of the Northwest Territories Chamber of Commerce, said this week that the territorial government should consider pausing carbon price increases in the near-term to help consumers.

SA国际影视传媒淲e are concerned that these [carbon price] costs will make it more difficult for businesses to break even let alone make a profit after two years of lockdowns, closures, increased labour costs and significant financial losses,SA国际影视传媒� she said.

SA国际影视传媒淲eSA国际影视传媒檇 like to see the GNWT temporarily postpone the implementation of the carbon price increases, at least until inflation drops to normal levels, as Alberta has done.SA国际影视传媒�

Rebate programs

McLeod said the federal government is committed addressing affordability issues post-pandemic and has put in place several rebate programs. Among them are a full rebate on home heating fuel applied at the point of purchase. The GNWT also has a cost of living offset through the Canada Revenue Agency, which provides $260 per year per adult NWT resident and a $300 per year rebate for each NWT child in the upcoming fiscal year.

Interest rates

McLeod said interest rates are expected to increase this year in response to high prices and because of the Bank of CanadaSA国际影视传媒檚 efforts to return to more moderate inflation rates.

He said this issue is SA国际影视传媒渁 major source of uncertaintySA国际影视传媒� and one he is following very closely.

SA国际影视传媒淧rices for oil and other commodities have risen significantly,SA国际影视传媒� he said. SA国际影视传媒淭his will add to inflation around the world and have negative impacts on confidence and supplier disruptions that could weigh on global growth.SA国际影视传媒�

SA国际影视传媒淔inancial market volatility has increased and the situation is very fluid.SA国际影视传媒�

Phillips said that although increasing interest rates will help tame inflation, she remains worried about rising gas and food prices, tax increases, and the rise in mortgage rates.

She is also concerned about what it will mean for the territorySA国际影视传媒檚 finances.

SA国际影视传媒淲e also have concerns with the additional increase in potential interest costs for the territorial budgets,SA国际影视传媒� she said. SA国际影视传媒淲ith a current debt forecast of $1.59 billion dollars as of March 31st 2022 according to last yearSA国际影视传媒檚 budget, each time interest rates increase 0.25 per cent, the GNWT has to spend almost $4 million in extra spending due to that cost increase.

SA国际影视传媒淭hese funds could be used for many other programs and services to benefit Northerners.SA国际影视传媒�