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Premier Ranj Pillai

Premier offers vigorous defence of new budget

When it comes to the 2023-24 fiscal year budget, Premier Ranj Pillai is sticking to his guns.

By Morris Prokop on March 7, 2023

When it comes to the 2023-24 fiscal year budget, Premier Ranj Pillai is sticking to his guns.

Following the budget’s tabling last Thursday, the Star sat down with Premier Ranj Pillai on Monday to discuss the fiscal blueprint and the reaction to it from the opposition parties.

Pillai was asked if he agrees with Opposition Leader Currie Dixon’s assessment that both the budget and the premier lack vision for the territory’s future.

“I would have to disagree in a very strong way,” he replied.

“Because what we’ve done over the last six years as a team has been identify a number of strategies. And those strategies were built with the idea of Yukoners as well as our team. And I can tell you that in my role, I contributed to that process.”

Pillai said those plans include Putting People First – YG’s plan to transform health care, the renewable energy plan, including the Atlin hydro project and Yukon Energy’s grid-scale solar battery storage project on Robert Service Way, and cultural and tourism industry strategies, as well as the Missing and Murdered Indigenous Women and Girls’ initiative.

Pillai also mentioned the territory’s housing plan and five-year capital plan ($484 million).

According to Pillai, the Yukon Party’s capital spending was set at $200 million when it was in power.

“I think all of those plans together provide a vision forward,” said Pillai. “That’s not just about my vision. It’s not just about the vision of our team, but it’s about the vision of Yukoners, because we did extensive consultation on all that work.”

Pillai added the child care subsidy is “near and dear” to his heart.

He also listed energy rebates and an increase in funding to seniors as recent initiatives.

Regarding business, Pillai listed eliminating the small business tax, creating employee sick leave provisions and the Economic Development Fund as accomplishments of his government.

“Our vision will be trying to help vulnerable folks, but also at the same time making smart decisions, I think, when it comes to the taxpayers’ dollar.”

Pillai said future plans include more work with the private sector on land development. He cited the former Tank Farm land off Hamilton Boulevard, which has a potential of 1,200 lots.

Regarding contamination concerns with the area, Pillai noted, “There’s been a ton of remediation done.”

The premier was asked about Dixon’s assertion that Liberal government policies are making it hard on private businesses. Pillai said his government has been very consistent on how it has linked the minimum wage to the Consumer Price Index. The wage will rise to $16.77 hourly on April 1.

He asserted that the Yukon Party is suggesting people should be making an average of $35,000 a year.

“In this marketplace, that is a very difficult place for somebody to be able to sustain themselves.”

Pillai said he spoke to the Yukon, Whitehorse and First Nations Chambers of Commerce last Friday. He told them, “I don’t think you just want people to live cheque to cheque. I think you want people to spend money at your stores.

“So I stand by that decision. It is a different opinion than the Yukon party. But I think having a minimum wage where it is, is appropriate.

“And I also would add that we’re talking about 891 people out of almost 23,000 people that are making that wage.”

Regarding the capital budget, Pillai said that money is going to the private sector.

“We allocate the money to projects, and the private sector builds those projects. I think that’s (an) incredible investment.”

Pillai pointed out that Dixon was the Economic Development minister under the 2011-16 Yukon Party government.

“I would put my record against his record on the economic development files,” the premier said.

“I’ve been in this role for going-on six years. We’ve pretty much had the lowest unemployment and one of the strongest, if not the strongest, economy. And when he was there, they were driving things into a recession.”

Regarding the Yukon Party’s assertion that there is nothing new in the 2023-24 budget, Pillai said new initiatives will be announced this week – including a loan program.

“We are watching interest rates go up, and we want to make sure that there’s money available to people in Whitehorse to work with Yukon Housing, on building homes.”

Pillai also mentioned the Destination Development Fund under the Department of Tourism and Culture. It was created last year.

“I think there’s some dollars in there (the budget) to offset some of the costs that people have for food for their children,” Pillai said.

The Star asked him about NDP Leader Kate White’s concern regarding making more money available for a golf course irrigation project ($2 million) than combatting the opioid crisis ($1.4 million).

“I think that comes across as sort of a sensational comment,” Pillai replied.

“If you look to one of those items, and you say, ‘oh, you’re putting x amount of dollars towards a recreational facility and that money should be used over here.’

“That’s not how the money flows. We have a reporting structure, we identify the projects, and we put them in place.

“When it comes to where we are on dealing with the opioid crisis, the challenge is overall; it’s not just opioids, it’s alcohol.”

Pillai said officials are looking at supporting mental health workers, pointing to $10 million invested through Putting People First.

He said he agrees with some items in the Confidence and Supply Agreement (CASA), which the Liberals and the NDP signed Jan. 31, that involve more health care capacity.

“That’s put towards making sure that people that are battling with addictions, that there’s enough spots available for them in the institutions that we have here,” he said.

“I think about our focus on land-based healing. All of those pieces have to come together to take on the challenges of the crisis.”

Regarding the territorial debt, Pillai confirmed that his government is projecting $528 million in accumulated debt by the time the CASA agreement is done in 2025.

He again pointed to Standard and Poors’ AA rating and the CD Howe Institute’s A- rating of the government’s financial health.

“The decision we made was to invest in infrastructure,” the premier declared.

“So there was money that was available from the federal government … the ratio is usually 75 cents from the federal government and 25 cents for us.

“We saw there was an infrastructure deficit, whether it be everything from bridges to roads, energy infrastructure, there was need everywhere.

“We stand by our plan,” Pillai added.

“We do have greater debt than we did last year. But we have rebuilt a tremendous amount of infrastructure across the Yukon, and our financial house is in order.

“We are still very focused on maximizing the use of taxpayers’ dollars and our (federal) transfer (payment).”

Pillai mentioned the Nitsulin Bay Bridge at Teslin as an example of vital use of taxpayers’ dollars. The current $163- million estimate makes the project the costliest in Yukon history.

“When somebody is coming to the table with 75 per cent of a project, funded on one side, we think it makes smart business decisions or government decisions to be only having to put 25 cents in.”

Pillai again defended his right to be serving as premier, a job he assumed on Jan. 14 after having been acclaimed to succeed Finance Minister Sandy Silver as the Liberal leader.

“The reason that I get to sit in the legislative assembly is because of the people in Porter Creek South,” Pillai said.

“That’s their seat, and they voted for me to be in the seat (in the April 2021 election).

“And I really appreciate the fact that the majority of folks there had confidence to give me an opportunity to go back into the seat.

“When it came to the leadership of the party, I put my name forward. In the end, it turned out that there was nobody else who put their name forward. I have a right to be here working on behalf of Yukoners.

Pillai added, “We want to make sure that this is a place where all Yukoners can call home. That’s our approach in this mandate.”

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