An Open Letter From Leader Currie Dixon

An Economy in Need of Change.

The Yukon’s economy is at a crossroads.

Prime Minister Mark Carney has called for a stronger, more productive national economy and has urged provinces and territories to act. The weak response from the Yukon’s Liberal-NDP government, though, has been driven by a lack of leadership, vision, and energy.

While the rest of Canada is increasingly focused on economic growth and productivity, our government is preoccupied with political infighting. The results have been stark. Last year, the Yukon was the worst-performing economy in the country. While every single province grew, our GDP shrank by about 3.3 percent. Despite our vast natural resources and deep entrepreneurial spirit, our economy has become bogged down in high costs, bureaucratic red tape, and harmful economic policies.

Permitting bottlenecks are crippling the placer mining industry and putting these often family-run businesses at risk. Along with the disaster at the Eagle Mine, these issues have combined to create uncertainty for the future of Yukon’s biggest private industry. Beyond the mining industry, we have seen this government layer on red tape for all small businesses. Take, for example, the “Extended Producer Responsibility” program that the Yukon Chamber of Commerce recently described as “financially cost-prohibitive, overly complex, and administrative” for Yukon small businesses. This new $10 million tax will drive up costs for retail businesses and their customers, who are already struggling with declining sales figures.

Businesses are also being squeezed by soaring energy costs as the government is now proposing a jaw-dropping 34% increase over the next three years. For businesses that can still afford to operate in the Yukon and want to grow, a decade of government inaction on commercial and industrial land development in Whitehorse has hindered their ability to do so. In this anti-business climate, we are sadly seeing the Yukon Chamber of Commerce shutting down, citing a “pending recession.” This is a wake-up call that it is time for a new government with bold new ideas.

We can unlock the Yukon’s economy by reducing business costs, empowering the private sector, and getting government out of the way.

First, we need a comprehensive program of slashing red tape and a new focus on keeping the growth and reach of government in check. The Yukon Party will end the current government’s process of drafting legislation and regulations behind closed doors and create new ways for the public and the business community to engage in meaningful ways. We will measure and report on the current regulatory burden on businesses and develop a clear target for reducing that burden. This will be followed by the implementation of a one-for-one rule, which will require the government to remove an existing regulation for every new one it imposes. The thicket of red tape and regulations on Yukoners needs to be trimmed so that the regulations that stay in place can be more effective.

We also believe we should lower costs on businesses through pro-growth, fiscally responsible tax measures. To achieve this, we will examine the feasibility of allowing businesses to accelerate the depreciation of their capital assets at a faster rate, thereby encouraging investment and job creation in your communities by providing larger upfront tax deductions. This initiative will aim to spur growth in mining, manufacturing, renewable energy, and housing development.

When it comes to land development, we will take a leadership role in developing commercial and industrial land in Whitehorse. After a decade of neglect, land shortages have stifled business expansion and job creation. We will fast-track development by partnering with municipalities and First Nations to unlock sites for commercial and industrial activity.

One of the biggest cost drivers for Yukoners and Yukon businesses has been the rising cost of electricity. These costs have been escalating due to ideologically driven decision-making and unrealistic goals of electrification. What we need is direct investment in reliable, cost-effective, and dependable energy sources, which will keep rates low while establishing the foundation for future renewable energy projects to be added. We also need to remain open to partnerships with First Nations and the private sector to inject investment into our grid.

The list of policy changes needed is extensive. Improvements to the government’s procurement system, working with First Nations to modernize Yukon’s mining legislation, and enhancing the resource regulatory regime to make it more efficient, as well as supporting the hospitality industry with more innovative pricing structures, are all necessary to get our private sector economy back on track.

Between what’s happening around the world and what’s happening in our country, Canadians and Yukoners are realizing that strengthening and stabilizing our economy is imperative.

We need a government that recognizes this as well. Later this year, a territorial election will be held. Yukoners will have a choice between more of the same or a new vision and direction.

My Yukon Party team and I are looking forward to offering Yukoners a change and a new direction, as we build a territory and an economy that Yukoners can be proud of.

 

Currie Dixon

Leader of the Yukon Party

Whitehorse, Yukon