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PoliticsFinance9TuesdayFebruary1120142014TownofFortSmithNoticeAllresidentsofFortSmithwhoownadogarerequiredtoregistertheirdogwiththeTownofFortSmithasperDogControlBylaw678Section3.1.PossessionofanunlicensedandoruntaggeddogintheFirstOffenceSecondOffenceThirdOffense-7500-15000-30000FinesforDogsNotRegisteredwithintheMunicipalityofFortSmithPolicygroupgivesrecommendationsforHeritageFundLong-termpublicengagementcrucialforproperfundmanagementByMEAGANWOHLBERGFivepercentofannualresourcerevenueswontbeenoughtosatisfyalltherecommendationsanationalpolicygroupisputtingforthfortheNWTHeritageFundbutisastart.ActionCanadafellowsreleasedtheirnalreportdetailingbestpracticesforobtainingfutureprosperityintheNWTthroughthede-velopmentofaheritagefundonFridaymorninginOttawa.Thereportcompiledoverthelastfewmonthsbasedoninter-viewswithotherfund-holdingjurisdictionsandroundtablediscussionswitheconomistsandpoliticiansoutlinessixrecommendationsfortheter-ritorialgovernmentinmov-ingforwardwithitsnewfund.Therstofthoserecom-mendsestablishingafundcapableofachievingadualobjectiveofsavingandsta-bilisingaresource-basedeconomyforwhichmorethan5percentofrevenuesperannumwouldberequired.Resourcepricesareoftenquitevolatileandsotheamountoftaxesagovernmentcanexpectfromresourceswillgoupanddownalotinanygivenyear.Sohavingasta-bilisationcomponenttothatfundallowsyoutobasicallynormalizetheamountoftaxesyouwouldexpecttoreceiveperyearandyoucouldtakeitoutwhenyourbudgetaryinputsarelowerthanexpectedfellowAndreDiastoldTheJournal.Havingastabilisationcom-ponenttothefundpreventsonefromactuallyhavingtheurgetodipintothesavingspiecewhentimesaretoughbecauseyoualreadyhaveapiecetotapintowhentimesaretough.Itsinthecontextofthatobjectivethatwesaidyouwouldneedtoallocatemorethan5percent.AsitstandstheNWTsfundisonlylookingtosavemoneyfromresourceroyal-tiesforfuturegenerations.Ata5percentinputratethefundwillholdamaxi-mumof100millionafter20yearsifannualaverageroyaltiesare54millionandthefundachievesa5percentrateofreturn.Thegroupdidnotpointoutaspecicpercentageitthoughtwouldbebestforfundcontri-butionssayingitlieswithgov-ernmentpriorities.ItbasicallydependsonwhatyouwanttoleaveforfuturegenerationsDiassaid.NWTFinanceMinisterMilt-enbergerannouncedduringlastThursdaysbudgetaddressthatthegovernmentcannotcur-rentlyaffordtosavemorethan5percentofresourcerevenuesandsimultaneouslyfollowthroughonlegacyeconomicinfrastructure.Ifwewereamatureju-risdictioninacountrylikeNorwaythathasahundredsofyearsheadstartonusintermsofbeingbuiltupin-frastructureneedsmetsmallgeographicallywedalllovetobeinthatpositiontoputallthatmoneyaway.Butourre-alityisdifferentsowehavetobalancehesaid.Miltenbergersaidthe5percentisnotsetinstoneandcanbelookedatagainbyfutureassembliesiftheter-ritorybeginstoamasslargeamountsofroyalties.ThoughthatisthecaseSarahDaitchanActionCanadafel-lowfromtheNWTcautionedagainstdeferringsavingstothefuture.Thosedecisionsmadetodaythoughtheycanberevisitedbyfuturegovern-mentswillhaveasignicantimpactonwhatsgoingtobethereshesaid.ApartfromthestabilisationpiecetheActionCanadagroupmadeseveralrecommenda-tionsaddressingtheactualgovernanceofthefundfromtheprotectionofthesavingstomakingsmartinvestmentswhilealsoensuringpublicinputandtransparency.Sometimesitdoesntmat-terifyouputin5percent50percentor100percentintothefundifyoudonthavegoodwith-drawalordepositrulesfellowJuliaFan-Lisaid.EventhoughAlbertahadaheritagefundsetupin1976itsdepositruleswerenotveryclearandthereforeital-lowedsuccessivegovernmentstochangetheirmindseverynowandthenaboutexactlywhattoputinthefund.Allthefellowsagreedthatthefundshouldbeprotectedbythestrongestlegislationpossibletoguaranteesavingsforthefuture.CurrentlytheNWTHeritageFundispro-tectedfrompoliticaltamper-ingfor20years.Keepingpoliticalhandsoutofthefundiswherethecivicengagementpiecebecomessoimportantsaidthegroup.WhatwevelearnedonourresearchinNorwayisthatwhencitizensareengagedaboutthetopicandtheydemandthatthesavingsbekeptinthefundthatswheneverysinglepoliti-calpartyandeverysinglecon-sensusgovernmentthatmayformwillkeeptothewishesofthepublicFan-Lisaid.Thosedecisionsmadetodaythoughtheycanberevisitedbyfuturegovernmentswillhaveasignicantimpactonwhatsgoingtobethereinthefuture.ActionCanadafellowSarahDaitchBudgetgetsgoodgradesfromNWTChamberByMEAGANWOHLBERGInwhattheNWTCham-berofCommerceispraisingasthebeginningofaneweratheGNWTsbudgetreceivedmuchbettergradesthisyearthanlastfromthebusinesslobbygrouponitsannualreportcard.ThegovernmentreceivedaBonitsthirdbudgetofthe17thAssemblywhosethree-yeartermsofarhasbeencharacterizedbyfis-calprudence.LastyeartheNWTChamberawardedtheGNWTaC-forlackofforesightandinvestmentintheeconomychamberpresidentKathyGraysaid.The2014-25budgetshesaidismuchmorepromising.Forthepastfewyearsthebudgetaddresshasntbeenveryexciting.Thefirstprioritywasfiscaldis-cipline.InthatregardthegovernmentgetsanAforgeneratingsurplusesandpayingdowndebtGraysaidnotingthemovefroma1.3-millionsurplustoanestimated200-millionoperatingsurplusinthisbudget.Duringitstwoyearsoffiscaldisciplinethegovernmentwasalsoabletopaydownsomeofitslong-termdebtrestor-ingapositivevarianceof176milliontothefederalborrowinglimitof800million.AllofwhichmeansthattheGNWTcanbeginaddressingour3-billioninfrastructuredeficitthisyearincludingtheMacken-zieValleyFibreLinkwhichwevebeenadvocatingforseveralyearsGraysaid.ShealsopraisedtheGN-WTsnewinitiativetobringuptheterritoryspopula-tionby2000overthenextfiveyears.Thiscommitmentillus-tratesthegovernmentin-tentiontostemthedeclineandturnthingsaround.Webelieveitsanimpor-tantannouncementnotjustforgovernmentrevenuesbutalsofortheeconomyshesaid.Equallyimportantwasseeingnoincreasesintaxessheadded.ForthepastfewyearstheBudgetAddresshasntbeenveryexciting.Therstprior-itywasscaldiscipline.InthatregardthegovernmentgetsanAforgeneratingsurplusesandpayingdowndebt.KathyGrayNWTChamberofCommercePoliticsFinancePredictedSizeofNWTHeritageFundin20yearsifannualaverageroyaltiesare54millionandthefundachievesa5rateofreturn.ImageActionCanada