Statement made on 14 November 2007 by Senator Charlie Watt
Hon. Charlie Watt:
Honourable senators, most of you may already be aware that the people of Nunavik, the people who I represent in this chamber — although not yet legally — live in a territory that has been geographically, economically and politically cut off from the rest of Canada.
The land of Nunavik, north of the fifty-fifth parallel, is delimited by the Quebec Boundaries Extension Act, 1912, that is the former Ungava District of the Northwest Territories. More than 10,000 Inuit live in 14 small, widely dispersed communities scattered along Quebec's northern coastlines up to 2,500 kilometres from Montreal.
The high cost of living, which is compounded by isolation and distance, brings a critical economic disadvantage to the people of Nunavik. We must address this serious problem urgently. My people are struggling on a daily basis to gain their rightful place in this country.
The high costs related to transportation in Nunavik are directly transferred to goods and services and this has a major impact on the purchasing power of its population. As a result, a Nunavik dollar is worth less than a dollar in southern Canada. Are honourable senators aware that on a tax percentage basis, per capita, Inuit are the biggest taxpayers in the country? Not only is the cost of living very high, but taxes in Nunavik also devalue the savings of individuals, and small businesses make hardly any profit.
The lack of a road network explains the high cost of food and other goods and is a barrier to economic development. Communities are virtually inaccessible, other than by air or sea. In this context, honourable senators, why does the Inuit population of Nunavik pay taxes for highways that do not exist?
According to studies, the inequities faced by the people of Nunavik can often be compared to situations in some Third World countries. Honourable senators, I could go into detail and enumerate a full range of differences in prices for gasoline, housing, food baskets, municipal services, hunting and fishing gear, and even bottled water. Instead, I will provide the names of a few reports that will prove enlightening on the subject. The first report is The Economic Disadvantage in Nunavik. The second is entitled Economic Disadvantage in Nunavik — Key Challenges and Proposed Remedies: The Case of Elders, Harvesters and Low Income Earners. Both these reports, which I circulated to honourable senators last February, were prepared by the Library of Parliament. The third report, from Laval University, is entitled Nunavik Comparative Price Index 2006.
Honourable senators, these reports paint a gloomy picture of the economic situation facing the people of Nunavik, a situation best summed up by the Nunavik Regional Board of Health and Social Services 2004-05 Annual Report. Indeed, the board estimates that 43 per cent of families in Nunavik live below the poverty line, compared to 17 per cent in the province of Quebec. These figures are not just a cry for help; these figures are the results of pain and are screaming at us for immediate —and urgent action.
Most government programs dedicated to Nunavik are established without taking into account the high cost of living facing the population. In practice, most agreements and programs target the development of communities instead of the individuals. Results are quite catastrophic for everyday life of Inuit families. In fact, a large part of subsidies and programs supporting higher professional, well-remunerated jobs, are being held by non-Inuit contractors. While these programs and subsidies were created and are still essential to help ensure economic development in Nunavik, the truth is that money returns south when the contractors are finished their work. This situation also prevails for permanent jobs.
Even on their own land, the people of Nunavik cannot fully benefit from support programs and subsidies created in the South. On top of not being able to harvest because of the high cost of hunting and fishing gear, my people are constantly confronted with government regulations that do not make any sense to us.
Honourable senators may know that unlike farmers and fishermen in the South who get subsidies for their harvesting, Inuit get nothing. The situation is so critical that a study found that hunting and fishing is seen by a majority of Inuit as an inaccessible luxury. It is time for legislators to wake up and help those people. Hunting and fishing are not recreational; they are essential for Nunavik's people since they provide their main source of food. Individuals should be allowed to claim equipment used for sustenance purposes as expenses in order for them to reduce their allowable taxable income.
Honourable senators, for the people of Nunavik to benefit from a more just society I have taken the liberty of introducing Bill S-214. This proposed legislation recognizes that tax breaks are needed to help individuals and to stimulate economic prosperity in Nunavik.
The first part of Bill S-214 is aimed at increasing the northern residents' tax deduction. Honourable senators, 20 years ago, in 1987, the tax deduction for northern residents was introduced to help northern working families deal with the high cost of living. Unfortunately, governments have not kept this tax deduction in line with inflation. It is absurd that this deduction has not changed in 20 years when we all know how inflation has increased dramatically during this time. Increasing the northern residents' tax deduction will put more money in the pockets of Nunavik's population which will, in turn, speed the economic development of our land. It is my belief that this is a small cost to the federal government in comparison to all the good it will bring to so many families.
The second part of Bill S-214 is aimed at amending the Excise Tax Act to eliminate the GST on all goods and services. It would also eliminate other taxes on fuel, oil, natural gas, diesel and other additives for generating heat and electricity, as well as on modes of transportation other than aviation. Honourable senators, this will help the population of Nunavik deal with the high cost of living. When you think that taxes are based on the product you purchase once it has reached Nunavik, you soon figure out that not only have you paid three to five times the price of that good in the South, because of transportation, but you have to pay taxes on that new price as well. Again, the Inuit population of Nunavik does not benefit from any transportation subsidy.
Honourable senators, this situation angers me because I see the suffering in my community. It is totally unfair to treat a part of the Canadian population this way. It is high time that my people were relieved of this endless pain and everyday stress. I look forward to working with honourable senators, as we lay the groundwork to ensure that Nunavik's population begins to progressively take its destiny into its own hands.
Nakurmïk.