Statement made on 04 March 2009 by Senator Charlie Watt
Hon. Charlie Watt:
Honourable senators, I am honoured to speak on this bill, which is essentially the same as Bill S-214, which I introduced in the last Parliament. The purpose of this bill is to provide tax relief for the people of Nunavik.
As most of you may already know, the people of Nunavik — the people who I represent in this chamber, although not legally yet — live on a territory that is geographically, economically and politically isolated from the rest of Canada.
Located north of the 55th parallel, Nunavik is defined by the Quebec Boundary Extension Act 1912. Prior to 1912, this land was known as the Ungava District of the Northwest Territories. More than 10,000 Inuit live in the 14 small, widely dispersed communities scattered along Quebec's northern coastline, up to 2,500 kilometres from Montreal.
The high cost of living, which is compounded by isolation and distance, brings in 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 that has a major impact on the purchasing power of its population. As a result, a Nunavik dollar is worth less than one in southern Canada.
Honourable senators, did you know that on a tax-percentage basis per capita, Inuit are the biggest taxpayers in this country? In fact, not only is the cost of living very high, but the taxes in Nunavik devalue the savings of individuals, and a small business can hardly make any profit. Moreover, the value of a dollar in Nunavik is worth only about 38 cents when we factor in the high cost of living. That is high.
The absence 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, I ask you, 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 details and enumerate a full range of price differences for gasoline, housing, food baskets, municipal services, hunting and fishing gear and even bottled water. Instead, I will give you the names of a few reports that are sure to enlighten you on the subject.
The first one 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 of these reports, which I sent to honourable senators in February of last year, were written 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, in my view, which is best summed up by the Nunavik Regional Board of Health and Social Services 2004-2005 annual report. In that document, the board underlines that about 43 per cent of Nunavik families live in poverty, while the figure for the province of Quebec is 17 per cent. This condition is not only a cry for attention; it calls on us to take immediate, 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 community instead of individuals. Results are quite catastrophic for the 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 most programs and subsidies were created and are still essential to help economic development in Nunavik, the truth is that money is going back south when the contractors are done with their work. This situation also prevails for permanent jobs.
Even on their own land, the Inuit of Nunavik cannot fully benefit from the support programs and subsidies created in the South. Besides 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 them. The Conservative government did nothing to help the situation in their last two budgets.
Honourable senators, did you know that unlike farmers and fishermen in the south, who get subsidies for their harvests, the Inuit get nothing? Things are so bad that a study confirmed a majority of Inuit see hunting and fishing as an unaffordable luxury. It is time for us, as legislators, to take note and adopt measures to help those people. Hunting and fishing are not recreational pursuits, they are essential for Nunavik Inuit, since hunting and fishing provide the Inuit with their main source of food. Individuals should be allowed to claim equipment they use for sustenance purposes as expenses, in order for them to reduce their taxable allowable income.
Honourable senators, for the people of Nunavik to benefit from a more just society, I have taken the liberty of introducing the bill that is before you. 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-227 is aimed at increasing the Northern Residents Tax Deduction. Twenty years ago, in 1987, the Northern Residents Tax Deduction 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. I believe it is absurd that this deduction has not changed in 22 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. This small measure will cost little to the federal government while doing a great deal of good to countless Nunavik families.
The second part of Bill S-227 will amend the Excise Tax Act, to eliminate the GST on all goods and services. It will also eliminate taxes on fuel, oil, natural gas, diesel and other additives for generating heat and electricity, as well as on transportation other than aviation. This will help the Nunavik population deal with the high cost of living. When you think that taxes are based on the product purchased once it has reached Nunavik, you soon figure out that, not only have you paid three to five times the price of those goods 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 subsidies. This situation angers me because I see the suffering and anxiety this has created in my community. It is totally unfair to treat a part of the Canadian population this way. It is high time that my people be relieved of this endless pain and the everyday stress that the Inuit must face be dealt with rapidly.
I look forward to working with honourable senators as we lay the groundwork to ensure that Nunavik's population begins to take its destiny into its own hands.
Nakurmïk.