Planning for a rainy day
The Government of NWT (GNWT) is considering new legislation (Bill 10) to create a new government Heritage Fund. We are watching development of the Fund closely to ensure it meets the future needs of the small businesses and citizens of the North.
The GNWT is creating the endowment-type fund that will grow for 10 years and then produce a small stream of income that would be used to fund government operations. Money for the fund will flow once the territorial government signs a resource royalty devolution agreement with the federal government. Alberta also has a long history with its own Heritage Savings Trust Fund and there are certainly some lessons to learn and pitfalls to avoid, particularly in terms of protecting the fund from political manipulations and interference.
We appeared before the Standing Committee on Government Operations on May 20th, 2011 to provide the perspective of entrepreneurs and small business owners on the creation of this Heritage Fund.