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PoliticsFinance2TuesdayOctober222013NEWSBRIEFSGNWTchargedwithexposingworkerstoasbestosatHeritageCentreZoltanKalnayasupervisorwiththedepartmentofPub-licWorksandServicesisbeingchargedalongwithhisdepartmentandthedepartmentofEducationCultureandEmploymentforfailingtopreventthereleaseas-bestosatthePrinceofWalesNorthernHeritageCen-treinYellowknife.Accordingtoacopyofthechargesworkerswereexposedtothehazardousmaterialintheboilerroomofthecentre.ThechargeshavebeenlaidbytheWorkersSafetyandCompensationCommitteeundertheNWTSafetyAct.Partieswillappearinter-ritorialcourtonNov.18.CanadianRangerstraininYellowknifeAround150CanadianRangersJuniorCanadianRang-ersleadersand1stCanadianRangerPatrolGroupstafffromtheNWTcametogetherinYellowknifelastweek-endtopassonguidancetoallthepatrolsexchangeideasandplanforfuturetrainingattheirannualleadershiptrainingevent.TheeventwasheldovertwodaysattheJointTaskForceHeadquartersinYellowknife.Exercisesfocusedonunitingleadershipandstandardizingtech-niquesandcommunications.The1stCanadianRangerPatrolGrouphasover1850Rangersin60patrolsacrossthethreeterritoriesandAtlinBC.FortSimpsonreghtersingledoutforNWTmeritawardScottWhitmorefromtheFortSimpsonFireDepart-mentwasrecognizedforhisworkkeepingfamiliesandhomessafefromthethreatofreattheannualFireServiceMeritAwards.Theawardsbasedonnomina-tionsfromcommunitymembersandrechiefsintheNWTareannouncedduringFirePreventionWeektohighlighttheimportanceofresafety.TheYellowknifeFireDepartmentandHayRiverFireDepartmentalsoreceivedawards.SCARYTIMESarehereGuardianTMWALLYSDrugsPharmacy.Souvenirs.Magazines.NewspapersToys.Cards.Stationary.LotteryTicketCentreMondaytoSaturday10a.m.to6p.m.Thursday10a.m.to8p.m.SundayCLOSED867872-2134AndtherearescarydealsatWallysHalloweenSaleAlargevarietyofcostumesandmakeupareonsalestartingOctober25ByMEAGANWOHLBERGAhigherpercentageofresourceroyaltiesgarneredafterdevolutionshouldbeputintotheHeritageFundtoen-surefuturegenerationsalsobenetfromtheone-timeex-tractionofnon-renewablere-sourcesintheNWTaccord-ingtoresidentsattendingthegovernmentssecondroundofbudgetconsultationslastweekinFortSmith.FinanceMinisterMichaelMiltenbergerwasinhishomeconstituencylastTuesdaytopitchresidentshisproposalforusingtherevenuestheter-ritorystandstogainfollow-ingthedevolutioneffectivedateofApr.12014.AfterdevolutiontheNWTwillbeabletokeep50percentofresourcerevenuesfromindustryintheterritory.Miltenbergersplanistoallocatevepercentoftheremainingroyalties-amaxi-mumofaround52millionafteraquartergoestoAb-originalgovernments-totherecentlyestablishedHeritageFundwiththerestgoingto-wardspayingdowndebtandinvestingininfrastructure.Noneoftheresourcereve-nueswillbeallocatedtowardsprogramsandservicesforwhichthegovernmentpays1.4billionannuallyoutoffederaltransferpayments.ThepositionthatImtakingisitwouldbeanabsolutefatalmistaketoputthatmoneythatistiedtotheupsanddownsofresourcedevelopmentintopro-gramsandservices.Itwouldbegoneinaheartbeatandwedstillbeleftwithourhugein-frastructuredecitsMilten-bergersaid.FivepercentnotenoughWiththelargestturnoutsofaronthebudgetconsulta-tiontourwhichhasvisitedBehchokoFortSimpsonandHayRiveralreadythismonthadozenFortSmithresidentstoldMiltenbergerthatwhiletheyagreethemoneyshouldnotgointoprogramsandser-viceshisplandoesnotprovideenoughnancialsecurityforthefuture.IfyouonlygowithvepercentyourenotreallysatisfyingtheintendedgoalofwhattheHeritageFundisforresidentJohnBlythtoldtheminister.Youonlygettodeveloptheresourceoncesoyouredevel-opingthisresourceinawaysothatfuturegenerationswhodontgettheopportunitytodevelopthatresourcecanstillexpectasimilarlevelofservice.AtpresenttheGNWTiswellbelowthe70-millionprojectedcaponresourceroyal-tiesanumberdependentontheterritoryscapitalexpenditures.AccordingtothedepartmentofFinancetheve-yearaveragewouldbecloserto42million.Withvepercent-or2.1million-goingintotheHeri-tageFundeachyearpluscom-poundinteresttheNWTwouldbelookingatatotalofaround65millionsavedupinthe20yearsitistogountouched.Thefundscurrentbalanceisjustover500000.Blythalongwiththemajorityofresidentsintheroomsaidtheydliketoseeanumbercloserto20or25percentgoingintotheHeri-tageFundmodelledonothersuccessfuljurisdictionslikeNorwaywhichputs100percentofitsresourcerevenues-bothfromroyaltiesandtaxes-intoitsfundandAlaskawhichputsaway25percent.ArecentreportfromtheFraserInstitutecriticizingAl-bertasheritagefundmodel-whichalsoreceivesvepercentofresourceroyaltiesayear-arguedthatthepercentageofcontributionstothefundisthemostimportantfactorinex-plainingthepoorperformanceofAlbertasfundcomparedtothatofNorwaysorAlaskas.ThoughtheministersaidthenumbercouldberevisitedinthefutureresidentAdamBatheworriedthattheamountwouldbehardertochangeonceitslockeddown.IwouldstartoffwithithigherbecauseIthinkitwillbemorepoliticallydifculttoraiseitinthefutureevenifitstosixorsevenpercent.Iwouldmakeitashighaspos-sibleBathesaid.WhileMiltenbergersaidNorwaysfund-currentlyworthover730billion-isobviouslytheonetoemulatehesaidanythingabovevepercentayearwilllikelybeatoughpoliticalsellconsid-eringittookhimfouryearstogettheHeritageFundestablished.Therearesomefolkswhowouldliketoseeusspendallthemoneybecauseweneeditalltoday-wecanuseitalltomorrow.TheideaofputtingitallintotheHeritageFundwouldnothavesupportIdontthinkfromanybodybecausewehavealltheseotherneedsweretryingtomeet.Sothevepercentwasapositionweputforwardasagoodstartingpoint.WeanticipatetheresgoingtobedebateaboutifitsenoughMiltenbergersaid.Theresnothingtosayitcantberevisitediftheresanupswingintheeconomy.Headdedthatpayingdowntheterritorysdebtandbuild-inglegacyinfrastructureproj-ectssuchasthe85-millionbreopticlineand700-mil-lionSnare-Taltsonhydroin-tertiewillalsobenetfuturegenerations.Theterritorycurrentlyhasa3-billioninfrastructuredebt.RoyaltyratestaxestobereviewedThecurrentroyaltyrateforminingoperationsintheNWTstartsat13.5percentofprotsandmovesupto14percentforprotsover40million.Whilethefederalgovern-mentismaintainingowner-shipoftheNormanWellsprovenareaforoilandgasdevelopmentafterdevolutionMiltenbergersaidtheGNWTwillstillgetroyaltiesforSahtupetroleumextraction.Offshoreoildevelopmentisyettobenegotiated.Taxratesforlargecorpora-tionsarearoundthenationalaverageof11.5percent.ThoughcorporatetaxeswillnotcontributetotheNWTsHeritageFundlikeinNor-wayMiltenbergersaidthatisapossibilitythatcouldbereviewedinthefuturekeep-inginmindthatcorporationsareckleandtrytoavoidlingtheirtaxesinjurisdic-tionswithhigherrates.Werenotrushingouttoputadditionaltaxesonany-body...butafterApr.1wewillbehavingadiscussiononthestructureofourresourceecon-omyhetoldTheJournal.ThenextresourcerevenueconsultationswillbeheldinYellowknifeInuvikandNor-manWellsbetweenOct.28andNov.13.NWTresidentsdemandmoremoneyforHeritageFundPhotoMeaganWohlbergFinanceMinisterMichaelMiltenbergershareshisplansfortheNWTsresourcerevenueswithresidentsinFortSmith.