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For the past year, members of the Panel have been immersed in all manner of issues related to Equalization and TFF—everything from details of how the programs work, to models used in other countries, academic analyses and ideas, complex formulas, and detailed simulations. In the case of TFF, many of us have come to know more about the North than we ever imagined before this experience.
Not surprisingly, we’ve learned about issues that extend well beyond the mandate of this Panel. We’ve heard about the hopes and dreams of people to ensure that the North reaches its full potential. We’ve heard frustrations about current living conditions in some parts of the territories and serious problems with education, health, suicide, and a whole range of social issues that, quite frankly, can no longer be ignored. We’ve talked with territorial leaders and officials about the importance of TFF to their current and future plans. We’ve heard from federal officials who understand the challenges of the territories and have sincerely tried to address those challenges through changes to TFF and other federal programs.
The Panel cannot end its report without at least commenting on some of these broader issues.
First, we heard that discussions regarding devolution and resource revenue sharing agreements between the federal and territorial governments (particularly in the Northwest Territories) have been delayed while the work of the Panel was under way. We strongly encourage governments and Aboriginal leaders to resume negotiations and reach agreements. The potential for resource developments in the territories is perhaps the best opportunity they have to achieve their dream of self-sufficiency and self-reliance. Provinces with rich natural resources are able to benefit from those resources. The same principle of net fiscal benefit should apply to the territories.
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| The goal of providing reasonably comparable public services to people in the territories has to be met through a combination of adequate federal support, active promotion of economic development in the territories, and sound financial management. |
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Second, as noted at the outset of this report, there’s a strong sense that the North is in a fragile state of transition. The promise of substantial economic development is just starting to be realized, but clearly there will be costs involved. In many respects, the lack of sufficient infrastructure combined with serious challenges in health care and education and a host of other social issues may well be a serious barrier to economic development. And the risk that too many northerners, particularly Aboriginal and Inuit people, are ill-prepared to benefit from the anticipated prosperity economic development can bring, is very real indeed. To put it bluntly, these are issues that TFF alone cannot address. For the foreseeable future, it’s likely that there will be mounting pressure on the federal and territorial governments to work together to address these issues either within or outside of TFF.
Third, the situation in Nunavut is serious and demands attention. In part, these are structural gaps that date back to when Nunavut was established. But the initial evidence is there and cannot be ignored. Without urgent concerted action to improve housing, health, education, and quality of life for people living in Nunavut, particularly Inuit people, there is little hope that things will change for the better. The Panel urges the Government of Nunavut, the Government of Canada, Inuit leaders, and a wide range of organizations, groups, and agencies to come together to address these issues before the situation gets even worse.
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| The Panel heard about the need to embrace and work together to achieve a strong vision for the future of Canada’s territories. And we encourage the federal government and all Canadians to support that vision and help make it a reality. |
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Fourth, the Panel understands that the costs are higher and the challenges of delivering public services are more complex in the territories. At the same time, like all governments across Canada, the territories must continually search for the most innovative, effective, and efficient ways of meeting their citizens’ needs at a cost their taxpayers can afford. The goal of providing reasonably comparable public services to people in the territories has to be met through a combination of adequate federal support, active promotion of economic development in the territories, and sound financial management.
Finally, the Panel heard about the need to embrace and work together to achieve a strong vision for the future of Canada’s territories. As outlined in the Joint Federal-Territorial Northern Strategy:
The North is a place where self-reliant individuals live in healthy, viable communities, and where northerners manage their own affairs. It is a place where strong, responsive governments work together to build a prosperous, vibrant future for all. It is a place where northern traditions of respect for the land and environment are cherished, and actions and decision- making are anchored in the principles of responsible, sustainable development. It is a place where citizens celebrate their diversity. The North is a place where the territories and their governments are strong contributing partners in a dynamic and secure federation.
- Joint Federal-Territorial Northern Strategy
Nation-Building: Framework for a Northern Strategy34
The Panel believes that this new approach to TFF will accommodate and
support this vision. A vision that will take the territories beyond the “fragility” of today to a strong and self-reliant future. A vision that will fulfill the promise of economic development and create a better quality of life for northerners. And we encourage the federal government and all Canadians to support that vision and help make it a reality.
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