Premier says Yukon in a 'difficult' financial situation as he sets term priorities

Yukon Premier Currie Dixon says he wants his cabinet ministers to focus collectively on economic growth, energy and health care this term.

Dixon published one mandate letter addressed to his entire cabinet last week, doing away with the practice of each minister receiving individual mandate letters specific to their portfolios.

In his letter, Dixon heavily emphasizes growth. He promises to speed up housing development, build new infrastructure for energy and health care, cut red tape and fix permitting backlogs. He also pledges to “limit the growth of the public service” to a fiscally sustainable level.

“The background context of this entire mandate letter is that we find ourselves in a difficult financial situation in the Yukon government,” Dixon said in an interview. “The fiscal picture for the territory has never been weaker.”

Dixon said his government is in the early stages of building a spring budget.

“We’re struggling,” Dixon said. “It’s not looking as rosy as we had hoped.”

On Thursday, the government announced it had borrowed another $200 million from the bond market to pay for necessary upcoming infrastructure projects. 

Dixon said he’s also going to request an increase of the Yukon’s borrowing cap and expects a “negotiation” with Ottawa. The current borrowing cap is set at $1.2 billion, but the territory’s total borrowing is already approaching $900 million, Dixon said.

Yukon NDP Leader Kate White calls the announcement ironic.

“Both the premier and Minister [Brad] Cathers criticized the Liberals for increasing that borrowing limit," White said on Thursday. “Here they are, months later, saying this is their only option.”

When she read Dixon’s mandate letter, White said she noticed neither the environment nor climate change were directly mentioned. She also noticed a lack of stated support for “equity-seeking groups” like non-profits, especially after the Yukon Party didn’t renew the previous government’s free transit initiative. 

“Lots of Yukoners are left behind in it,” White said. 

Dixon said his government’s commitment to address the electricity grid doubles as a commitment to the environment. 

The other priorities stated in Dixon’s mandate letter are:

• Creating a long-term plan for energy.
• Upgrading the Whitehorse hospital and improving access to health care.
• Releasing land and encouraging development to make housing more affordable.
• Reviewing the education system and ensuring it’s “aligned with the needs of the economy.”
• Funding the RCMP and improving emergency preparedness.
• Modernizing the territory's mineral legislation.