Whitehorse Daily Star

Parties disagree over anti-inflationary measures

The high inflationary trends for Whitehorse residents continue, as does the political sparring between the official Opposition and the governing Liberals.

By Whitehorse Star on March 27, 2023

The high inflationary trends for Whitehorse residents continue, as does the political sparring between the official Opposition and the governing Liberals.

The Yukon Party pointed out last week that the city’s inflation rate is the highest in the country, for the third month in a row, according to Yukon Bureau of Statistics data.

“This shows the Liberals’ limited attempts over the past year to help tackle inflation are not working,” the YP said in a statement last Thursday.

According to the bureau, the February year-over-year number for Whitehorse was seven per cent – almost two full percentage points above the national average.

“We have been sounding the alarm about inflation and its impacts on Yukoners for over a year,” said YP Community Services critic Patti McLeod.

“We have suggested suspending the territorial fuel tax, cutting the carbon tax on home heating fuel, and reversing the Liberal increase to insurance tax as ways to keep more money in the pockets of Yukoners.

“But the Liberals simply refuse to take these steps to help reduce the impacts of inflation,” McLeod said.

In 2022, the legislature passed an official Opposition motion to call on the federal government to remove the carbon tax from home heating fuel.

“So far, the Liberals have ignored the advice of the assembly and failed to make this effort on behalf of Yukoners,” the YP said.

On April 1, besides another carbon tax increase on fuel to 14 cents a litre, the party noted, the alcohol excise tax will rise by 6.3 per cent.

“This will put a further crunch on brewers, who will have to raise prices for consumers to offset this increased cost,” the YP said.

Cabinet communications staff released a statement replying to the YP’s points.

“The Yukon Liberal government understands the challenges that Yukoners are facing in light of rising inflation across Canada,” it said.

“This is why our government delivered a (March 2) budget designed to help make life more affordable for families, individuals, and businesses across the territory.”

When the Yukon Party was in office until late 2016, the statement noted, “forecasts showed multiple years of economic decline.

“Our economy shrunk. GDP shrunk. Under the Yukon Party government, the Yukon was in a recession.

“Reports from the Yukon Financial Advisory Panel and the Auditor General of Canada have identified the lack of financial planning under successive Yukon Party governments.”

Under the Liberal government, the statement added, “the economy is growing. Our government remains committed to continuing to take strong action to make life more affordable for Yukoners.

‘We are taking steps to reduce the burden of higher prices, especially on the most vulnerable Yukoners.”

Budgetary measures, the statement noted, include:

Extending the Inflation Relief Rebate Program, with the $50 per month rebate on ATCO Electric and Yukon Energy bills to be applied for five months this year;

Funding food programs in Yukon schools;

Providing a quarterly top-up to eligible recipients of the Yukon Senior Income Supplement;

Providing a $100 per month increase to eligible social assistance recipients;

Through the January 2023 Confidence and Supply Agreement with the NDP, raising the hourly minimum wage from $15.70 to $16.77 effective April 1;

Extending the sick leave program so businesses don’t have to shoulder an extra burden when employees are sick; and,

Providing commercial timber harvesting grants to reduce the cost for Yukoners heating their homes with firewood.

The government also created “a nation-leading” universal childcare program that saves parents up to $700 per child per month and provides children with the opportunity for early learning and development “while putting more disposable income in the hands of families and giving caregivers more choices if they want to work outside of the home.”

According to the Atkinson Centre for Society and Child Development, the Yukon is Canada’s new “leader in early learning and child care,” the statement noted.

“It was unfortunate that the Yukon Party voted against this program when it was implemented in the 2021-22 budget.”

The statement said the government “has demonstrated our commitment to maintaining a strong and stimulated economy with record investments in capital projects through the pandemic. These actions kept Yukoners employed and helped keep our private sector strong.”

Given McLeod’s and the Yukon Party’s calls for the government to take steps to reduce the impacts of inflation on Yukoners, “we expect the Yukon Party will vote to support our budget,” the statement said.

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