NDP MP Bevington presses for tax breaks for northerners

Western Arctic NDP MP Dennis Bevington is calling on Ottawa to give northerners a bigger tax break to help offset the high and rising costs of living north of 60.

Bevington said at a news conference in Ottawa Tuesday that the northern residents' tax deduction has not changed in 20 years, even though the cost of living in the North has risen during that time. Northerners spend, on average, $15,000 more a year on essential services than other Canadians, he added.

During the news conference, Bevington's staff circulated a photocopy of an Iqaluit grocery store's most recent specials flyer, which advertised a brand of laundry detergent for $19.99. The same detergent would cost about $6 in Ottawa.

Staff also circulated a paper that showed how the cost of food has changed in the North in the past 16 years. In Yellowknife, a weekly basket of non-perishable food for a family of four went up in price from $84 to $90 during that time period.

While Bevington acknowledged that the increase was only $6, he pointed out that food costs are only part of the higher costs of living.

"Housing, electricity, transportation, every aspect in the North costs more," Bevington said.

"Perversely, everything in the North, because it costs more, the Government of Canada [takes] more from us in GST than other Canadians. So the first step that Ottawa must take to help northerners cope with the high costs of living is to reduce the tax burden."

Bevington said he is calling for a 50-per-cent raise in the northern residents' tax deduction, as well as having future increases tied to a northern inflationary measure.

"The northern residents' tax deduction was first introduced in 1987 by the Mulroney government as a measure to offset the high cost of living in [the] territories and remote parts of Canada," he said.

"It does affect people and communities right across this country. There's aboriginal communities from one end of the country to the other, in northern and remote locations, [that] are affected. Other larger communities throughout northern Canada every single person that lives in northern regions has an opportunity, when they work, to gain some return from the tax system."

In the House of Commons Monday, Bevington accused Indian and Northern Affairs Minister Jim Prentice of doing little on the issue.

"Unfortunately, this minister feels the only way to develop the north is to give his friends in large southern corporations all the help while doing nothing for ordinary people and businesses in the north," Bevington said during question period.

"Increasing northern residents' tax deduction will help northern working families with the high cost of living and spur on economic development in Canada's north. Let's close the northern prosperity gap."

Prentice replied by saying his priority is to boost economic development in the North and create job opportunities through projects such as the proposed Mackenzie Valley Pipeline.