Liberal MP Larry Bagnell in Whitehorse on July 25. Bagnell says the new resolution passed by the federal Conservatives to keep 100 per cent of royalties in the Yukon won’t make much of a difference right now. (Crystal Schick/Yukon News file)

Federal Conservatives promise the North can keep northern resource royalties

Liberal MP Larry Bagnell says the Conservative resolution wouldn’t make much of a difference today

The federal Conservative party passed a resolution promising to keep 100 per cent of northern resource royalties in the territories.

The resolution came out of the party’s national convention, held in Halifax on Aug. 26. It will be part of the Conservative platform going into the next election, said Jonas Smith, the Yukon representative on the Conservative Party candidates national council.

Right now, Smith said the territories keep resource revenue at differing rates. In the Northwest Territories, the territorial government keeps up to 50 per cent of natural resource revenue, though there is a cap on that.

“In the Yukon, under the agreement with Canada, the resource revenue offset arrangements provide for the first $6 million in global resource revenues having no offset against Yukon’s territorial formula financing (TFF) grant,” said Eric Clement, a spokesperson for the Yukon’s Finance Department.

“For global resource revenues in excess of $6 million, the offset is 100 per cent. That is for every dollar above the $6 million amount, a dollar is deducted from Yukon’s TFF grant.”

Smith said the idea was to simplify things across the North by keeping all of the revenue in the North. This would give the territories the same deal as the provinces, most of which retain 100 per cent of resource revenue (provinces have rights to crown land that the territories do not).

Larry Bagnell, Liberal MP, said this resolution doesn’t currently make much of a difference in the Yukon. Right now, under the current formula, with the revenue coming in from resources, the territory already keeps 100 per cent. This resolution only makes a difference if resource revenue levels go up, which could cause clawbacks to kick in.

“At the moment, it’s sort of academic,” Bagnell said. He said no one in the Yukon has ever lobbied him to change the formula, which was last updated in 2012.

Smith agreed to some degree.

“When you look at Yukon government’s annual budget, ($6 million) is three days worth of operating money.”

However, he pointed to a number of companies and upcoming projects, including Victoria Gold, Keno Hill and additional advanced exploration projects, as promising.

“It wouldn’t take much, if we can get a couple working, to crack that number.”

He said the resolution was passed almost unanimously, and received loud cheers from the roughly 3,000 people in the room.

“One key thing to stress here is this is intended for the territories and the governments to wholly retain 100 per cent of royalties and not have the transfer payments clawed back in any manner,” said Smith. “We didn’t want to give with one hand and take away with the other.”

Contact Amy Kenny at amy.kenny@yukon-news.com

resource royaltiesYukon

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Premier Sandy Silver, left, and Chief Medical Officer Dr. Brendan Hanley speak during a COVID-19 update press conference in Whitehorse on July 29. Silver urged “kindness and patience” during the weekly COVID-19 update on Oct. 21, after RCMP said they are investigating an act of vandalism against American travellers in Haines Junction.
(Alistair Maitland Photography file)
COVID-19 update urges “kindness and patience” for travellers transiting through the territory

“We need to support each other through these challenging times”

Whitehorse Correctional Centre officials have replied to a petition by inmate Charabelle Silverfox, who alleges she’s being kept in conditions mirroring separate confinement, arguing that her placement isn’t nearly as restrictive as claimed. (Joel Krahn/Yukon News file)
Inmate not being kept in restrictive confinement, WCC argues in response to petition

Whitehorse Correctional Centre (WCC) officials have replied to a petition by an… Continue reading

wyatt
WYATT’S WORLD

Wyatt’s World for Oct. 23, 2020

Kwanlin Dün First Nation chief Doris Bill holds up a signed copy of the KDFN <em>Lands Act</em> agreement during an announcement at the Kwanlin Dün Cultural Centre in Whitehorse on Oct. 20. Under the new act, called Nan kay sháwthän Däk’anúta ch’e (We all look after our land) in Southern Tutchone, KDFN will be able to allot citizens land to build their own houses on, for example, or to use for traditional activities. The First Nation will also be able to enforce laws around things like land access and littering. (Crystal Schick/Yukon News)
Kwanlin Dün First Nation’s Lands Act comes into force

The act gives the First Nation the authority to manage, protect and enforce laws on its settlement lands

Two doctors in Watson Lake say they are at risk of losing their housing due to a Yukon Housing Corporation policy that only allows one pet per family. (Wikimedia Commons)
Healthcare workers in Watson Lake say housing pet policy could force them to leave

The Yukon Housing Corporation has threatened evictions for having more than one pet

Evan Lafreniere races downhill during the U Kon Echelon Halloweeny Cross-Country Race on Oct. 16. (Inara Barker/Submitted)
Costumed bike race marks end of season

The U Kon Echelon Bike Club hosted its final race of the… Continue reading

Smartphone showing various applications to social media services and Google. (Pixabay photo)
National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

Education Minister Tracy-Anne McPhee, right, before question period at the Yukon legislative assembly in Whitehorse on March 7, 2019. The Yukon government announced Oct. 19 it has increased the honoraria rates for school council members. (Crystal Schick/Yukon News file)
Honoraria increased for school council members

Members of school councils throughout the territory could soon receive an increased… Continue reading

Triple J’s Canna Space in Whitehorse on April 17, 2019, opens their first container of product. Two years after Canada legalized the sale of cannabis, Yukon leads the country in per capita legal sales. (Crystal Schick/Yukon News file)
Yukon leads Canadian cannabis sales two years after legalization

Private retailers still asking for changes that would allow online sales

A sign greets guests near the entrance of the Canada Games Centre in Whitehorse on June 11. The city announced Oct. 16 it was moving into the next part of its phased reopening plan with spectator seating areas open at a reduced capacity to allow for physical distancing. (Crystal Schick/Yukon News file)
CGC reopening continues

Limited spectator seating now available

During Whitehorse city council’s Oct. 19 meeting, planning manager Mélodie Simard brought forward a recommendation that a proposed Official Community Plan amendment move forward that would designate a 56.3 hectare piece of land in Whistle Bend, currently designated as green space, as urban residential use. (Courtesy City of Whitehorse)
More development in Whistle Bend contemplated

OCP change would be the first of several steps to develop future area

asdf
EDITORIAL: Don’t let the City of Whitehorse distract you

A little over two weeks after Whitehorse city council voted to give… Continue reading

Whitehorse City Hall. (Joel Krahn/Yukon News file)
City hall, briefly

A look at decisions made by Whitehorse city council this week

Most Read