Unique challenges in the Territories

Assessing how TFF works today and deciding what changes should be made to improve the program for the future cannot and should not be done in isolation of the larger context of the unique challenges of the territories.

Because TFF plays such an important role in supporting essential programs and services in the territories, the stakes are high.

Because TFF plays such an important role in supporting essential programs and services in the territories, the stakes are high. Changes to the current program can have a dramatic effect on the ability of the territories to promote economic development, secure much-needed investment, and provide basic education, health, and other services to a growing population. Combined with that, a number of major economic developments are currently in progress, anticipated, or are being planned. Responsibilities for resource developments have been devolved to Yukon and to First Nations and Aboriginal governments. In the Northwest Territories and Nunavut discussions are still underway.

The combination of these challenges is unique in Canada. How they are addressed will have a profound effect on the future of the territories.

Further information on the unique needs in the territories is included in Annex 2.

“The variance within the North is as great as the variance across all jurisdictions and these different circumstances create different costs for providing government programs and services, and also dramatically different fiscal capacities.” - Joint Territorial Submission to the Expert Panel6

6. Government of the Northwest Territories, Government of Nunavut, Government of Yukon. (2005). Joint Territorial Submission to the Expert Panel on Equalization and Territorial Formula Financing, p.  9.

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