Some bold thinking at the Conservative Party of Canada's national convention in Halifax on the weekend has created a buzz across the North.
Now we need bold thinking to translate into bold action.
The Conservatives have endorsed the concept of allowing the three Northern territories to retain 100 per cent of the resource royalties generated within their respective borders.
The NWT fought long and hard to negotiate a devolution deal in 2013 that permitted the territory to keep 50 per cent of resource revenues, although there is a cap.
Since 1966, the territory has generated just over $1 billion in royalty revenues, or $1.2 billion, when adjusted for inflation, according to figures from the Department of Industry, Tourism and Investment. That's not exactly chump change.
But here's the potential rub: the Conservative resolution states that the 100 per cent of resource royalties would be granted through comprehensive resource revenue sharing agreements with the federal government. The details of those agreements would be critical. What we can't allow to happen is to gain an extra $50 million or so in annual resource royalties only to see it clawed back from our annual federal transfer payments, which amount to $1.3 billion this year. It would be too easy for Ottawa to give with one hand while taking away with the other.
So our politicians would have to enter those negotiations, should they ever occur, with sharp eyes and minds to ensure we're not a victim of the shell game. Providing the NWT's representatives' impose their will, the Conservative proposal would do the territories a world of good.
With a meagre cash surplus of $2 million in the 2018-19 territorial budget and NWT debt that has climbed over the $1 billion mark, our ministers and MLAs were kicking around the idea of raising taxes during deliberations in February. The NWT, like most other provinces and territories, needs more money.
There are unmet needs in education, health, housing, roads and other areas. This deficit puts the squeeze on municipalities, like the City of Yellowknife, which could use a boost in funds from the Department of Municipal and Community Affairs to address our lengthy list of needs.
The Liberal government has made commitments to the North and has delivered on some of them over the past few years but the gains could potentially be offset by detrimental policies like the moratorium on oil and gas drilling in the Arctic Ocean and the looming imposition of a carbon tax.
With a federal election expected in a little over a year, this royalties pledge from the Conservatives should force Liberal MP Michael McLeod and the NDP candidate to pressure their respective party leaders to match or surpass what Andrew Scheer and company have put on the table.
We shouldn't feel bad about coercing our politicians to partake in a game of one-upsmanship – our city and our territory deserve better.