Press Release - December 4th, 2008

R(16)041208118

FINANCE MINISTER PROVIDES ECONOMIC AND FISCAL UPDATE

YELLOWKNIFE (4 December 2008) - The Honourable Michael Miltenberger, Minister of Finance, provided an update on the NWT economy and fiscal outlook today. Minister Miltenberger also released the results of his revenue options consultations.

"The NWT is not insulated from the changes occurring in the world economy. The resource sector represents more than a third of our economy. Slowdowns will have an impact here in the NWT", said Minister Miltenberger. "The good news is that the GNWT is in a stable fiscal position. The fiscal plan we put in place last winter and spring leaves us well positioned to address the challenges posed by world economic conditions."

As the GNWT prepares its 2009 Budget, to be presented in February, the Minister released a report on the revenue consultation conducted earlier this fall. In September, the public was invited to submit their views on how the government could raise an additional $40 million in annual revenues.

The government will be implementing measures to raise $10 million in new revenues in 2009-10. However, given rapidly changing economic circumstances, the Minister announced that any decisions about raising an additional $30 million from tax increases in 2010-11 would be deferred until economic conditions are more certain. The Minister also announced that the GNWT would not be introducing an NWT sales tax or increasing the NWT fuel tax.

"Northerners told us they did not want the GNWT to introduce tax increases that would raise the cost of living or make it more expensive to do business here without making sure we were getting the best value for the dollars we are already spending. I want to assure NWT residents that we are doing this", said the Minister. "We will have to look more closely at controlling our spending growth if we do not increase our revenues in near term."

The Report on Revenue Consultations can be found on the Department of Finance website at http://www.fin.gov.nt.ca/.

For more information contact:

Julia Mott
Cabinet Communications
Government of the Northwest Territories
(867) 669-2304
(867) 445-5669 cell
Julia_mott@gov.nt.ca