Sahtu and Beaufort Delta companies hit by this year’s increased shipping costs can now apply for up to $30,000 each in GNWT support.
The funding was the most clearly defined of multiple measures announced by the territorial government on Wednesday.
The territory also says it will increase the seniors’ home heating subsidy “as needed” this winter, and will take steps to make sure extra traffic can be accommodated on the forthcoming winter roads.
The summer barge resupply season failed because of low water in the Mackenzie River, driving up the cost of goods and fuel that must now arrive by air or wait for the winter road. Gas prices spiked in Norman Wells last week and the cost of home heating is expected to similarly increase.
“We have been open and transparent with local community and government leaders that fuel costs will increase significantly due to the necessity of air transportation,” Imperial Oil told Cabin Radio this week. Imperial, which runs an oil facility in Norman Wells, is the town’s fuel supplier.
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Indigenous and community governments can also apply for the funding being rolled out to affected businesses, the GNWT said on Wednesday. The deadline to apply is March 2025.
Under the new program, affected businesses and governments “can receive up to 50 percent of the difference between the expected cost for shipping goods on the barge and the increased cost of alternative shipping, to a maximum of $30,000 per business.”
The overall sum being set aside is $1.8 million, which theoretically means at least 60 companies and governments could apply if they all received the maximum.
It’s not clear if the program will run in future years.
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“Right now, we’re treating this as a one-time funding arrangement,” industry minister Caitlin Cleveland said, with one eye on forecasts that suggest low water levels may not resolve themselves any time soon.
“We are seeing swings from one end of the spectrum to the other, where we’re having very high water levels” – as happened between 2020 and 2022 – “and very low water levels. We will continue to monitor water levels,” Cleveland added.
“The Sahtu region has the highest cost of living in the Northwest Territories and is definitely seeing the impact of this. We want to ensure residents have the basic essentials.”
More winter traffic
In terms of support for residents, the territorial government said it would “monitor cost-of-living increases connected to the cancellation of barges” and was “prepared to increase financial supports” through the heating subsidy it offers to seniors, which is currently worth $750 a month in Norman Wells.
The GNWT said “several measures are in place” to cope with extra winter road traffic.
The Mackenzie Valley Winter Road “will be widened where possible with additional signage,” for example, and there will be extra maintenance work with more equipment.
Premier RJ Simpson and Indigenous leaders have been meeting federal ministers in Ottawa this week, where this year’s failed resupply season and its consequences were a key topic. Building the all-weather Mackenzie Valley Highway, a project expected to require at least $1 billion in federal funding, remains high up the agenda.
“The GNWT is also working with Indigenous and community governments and the Government of Canada on long-term solutions,” the territory stated on Wednesday.
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“There’s a lot to learn and a lot to do to prepare for future climate-related supply route disruptions and emergencies.”
Where to apply
Application forms for the funding announced on Wednesday should appear on this page of the GNWT’s website.
In a statement, Sahtu MLA Danny McNeely welcomed the support announced on Wednesday.
“The increased costs and disruptions to essential supplies are a serious burden on both families and businesses throughout our region. The effects ripple through every aspect of daily life, from heating our homes to stocking shelves in our local stores,” McNeely wrote.
“I am grateful to the GNWT cabinet for recognizing the severity of this situation and for taking decisive action to provide much-needed relief. Their support will help alleviate the immediate challenges we face, and I look forward to continued efforts to strengthen our region’s resilience in the face of future disruptions.”
