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Ottawa, March 24, 2003
2004-024

Budget 2004 Supports Canada's North

Providing support to address the unique circumstances of Canada’s northern territories is a key element of Budget 2004, Minister of Finance Ralph Goodale announced today.

“The Government of Canada provides substantial and growing support to the territories,” Minister Goodale said. “This budget recognizes the key needs and priorities of the North.”

Minister Goodale cited specific initiatives including:

• Northern Economic Development: $90 million will be provided over five years to support a Northern Strategy that will aim to ensure that economic development opportunities are developed in partnership with northern Canadians.

• Contaminated Sites: $3.5 billion will be provided over 10 years for a major multi-year cleanup of federal contaminated sites, over 60 per cent of which is expected to occur in the North-contributing to an improved environment, economic development and employment opportunities for Aboriginal communities and northerners.

• Funding for Health Care: Health transition funding provided after the February 2003 First Ministers’ Accord on Health Care Renewal will be made ongoing, providing $20 million a year to bolster health care services in the North.

• Northern Oil and Gas Development: $75 million will be provided over three years to ensure that the Government of Canada and regional authorities can respond in a timely, responsible and effective manner to the tremendous opportunity of pipeline and oil and gas development in the North.

• Territorial Formula Financing: Territorial expenditure bases will be increased, which will provide an additional $150 million over five years to support territorial investments in their priority areas.

“I am pleased this budget starts the cleanup of the Giant Mine in Yellowknife,” said Ethel Blondin-Andrew, Minister of State (Children and Youth). “This is an important step.”

Larry Bagnell, Parliamentary Secretary to the Minister of Indian Affairs and Northern Development with special emphasis on Northern Economic Development, added: “Economic development is essential for the North. The Prime Minister has asked me to define the role the Government of Canada will play in that process. That exercise becomes even more important with the $90 million that has been allocated to support the Northern Strategy.”

The Government of Canada is also putting in place new five-year arrangements with territorial governments for Territorial Formula Financing (TFF), the principal federal transfer to the three territories.

TFF payments are unconditional grants and are governed by agreements with the territories, which are updated every five years. The new agreements, which cover the period from April 1, 2004 to March 31, 2009, will commit additional resources to assist territories to invest in key priorities and respond to the unique challenges in the North. The TFF expenditure bases will be increased, providing an additional $150 million over five years to allow each territory to target its priorities.

As a result of these new TFF arrangements, the Government of Canada will transfer approximately $1.8 billion to the three territorial governments in 2004-05. Over the next five years, these transfers are projected to total more than $10 billion to ensure territorial governments have the resources to provide northern Canadians with health and other public services.

“These are important new investments into priority areas for northern Canadians,” said Nancy Karetak-Lindell, Member of Parliament for Nunavut. “For instance, it is estimated that 60 per cent of the funding for contaminated sites will be invested in Nunavut. That, combined with economic development and funding for health care, has long been the focus for northern MPs.”

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