Whitehorse Daily Star

Opposition parties condemn spending warrant

Territorial opposition MLAs say they aren't surprised, but are questioning why the Yukon Party government is using a $197.9-million special warrant to meet its April 1 financial requirements.

By Stephanie Waddell on March 12, 2008

Territorial opposition MLAs say they aren't surprised, but are questioning why the Yukon Party government is using a $197.9-million special warrant to meet its April 1 financial requirements.

The special warrant was signed Monday by Commissioner Geraldine Van Bibber. It will be used to cover government spending until the end of April.

As both Liberal House Leader Gary McRobb and NDP Leader Todd Hardy pointed out, with the legislature set to reconvene on March 20, the government should have passed an interim spending bill, which would have enabled opposition members to raise questions about it before it was passed.

"It's needless," McRobb said today of the spending warrant, after noting he would have supported an interim supply bill for the government to meet its April 1 obligations.

Among those are annual transfers to various organizations and governments like municipalities, Yukon College, the Whitehorse General Hospital and for social assistance cheques, among other purposes.

"There's no reason to have a special warrant," Hardy said, also stating he would have supported an interim supply bill.

Both opposition members argued special warrants are there for special circumstances when the legislative assembly is unable to debate the spending.

The move is part of a "continuous pattern" by the Yukon Party government, which has used the special warrants at the beginning of each fiscal year since 2003, McRobb said.

Prior to 2003, governments normally passed interim supply bills early in the spring sitting to make sure funds were available for the start of the fiscal year.

Premier Dennis Fentie argued this morning the government wants to ensure funding is available within the first month to cover transfers, wages and other expenses while an interim supply bill is considered from the end of April until the budget passes.

This will mean there's no gap in spending, he said in an interview.

In the 1990s, Fentie recalled, there was a case where opposition members filibustered an interim supply bill and prevented it from passing.

"We ensure that won't happen," explained Fentie, who doubles as Minister of Finance.

McRobb recalled how the government's investment last year of $36.5 million into the asset-backed commercial paper (ABCP) market was found by the Auditor General to have contravened the territory's Financial Administration Act.

Given that, McRobb said, he would have expected the government to have demonstrated improvements to gain more public confidence.

"It shows this government's lack of respect for the democratic process and disregard for the public trust. Mr. Fentie and his colleagues haven't mended their ways since the bad investment scandal, and that's unfortunate," McRobb said in a statement.

While he would have supported an interim supply bill, Hardy said he will now continue to question the government on how it goes about getting funds before the 2008-09 budget is approved.

The NDP leader is also calling for the premier to appoint someone else as Minister of Finance.

Between negotiations with three other levels of government (municipal, first nations and federal) on a variety of issues, and taking on matters in other departments (such as the Department of Justice's look at ABCP investments and so on), the premier has a lot on his plate, Hardy said.

With the territorial budget doubling over the past five years and approaching the $1-billion mark, a minister who can devote his or her full-attention to the portfolio is needed, Hardy argued.

The last time the Finance minister's role was separated from the office of premier was in the 1980s under Tony Penikett's NDP government. Piers McDonald held the position of Finance minister then.

"There's nothing in the rules that says the premier has to be Finance minister," reads a statement by the NDP leader.

"That's not how they do it in the federal government, or in the provinces. I think we've reached the point where we should be separating those two functions."

Hardy also argued the recent controversy around the ABCP investments may have been avoided if the Finance minister didn't also have the duties of premier to attend to.

While the NDP leader plans to introduce a motion in the house calling for a cabinet shuffle that would see Fentie give up his role as Finance minister, the premier said this morning the Finance portfolio has been part of the premier's obligations and will continue to be under his watch.

"It's part of my responsibilities," he said, after stating that Hardy could change that if he's ever elected to government.

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