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NorthAnalysis

5 things to watch during the Yukon Liberals' first spring sitting

All eyes will be on Liberal Premier and Finance Minister Sandy Silver this sitting as he delivers his first budget and launches his government's legislative agenda. It's Yukon's first new government in 14 years.

Premier Sandy Silver made a lot of promises on the campaign trail. Can his party deliver?

The Yukon legislative assembly in Whitehorse. MLAs will be back in session Thursday afternoon as the spring sitting gets underway. (Paul Tukker/CBC)

For the first time in 14 years, the spring sitting of the Yukon legislature which begins Thursday afternoon will see a new territorial government in action. The Liberal administration of Premier Sandy Silver has takenthe reins from the long-governing Yukon Party.

Silver's caucus is made up oflegislative newbies, with Silver himself the only Liberal MLA with territorial legislative experience.

Premier Sandy Silver and his cabinet members were all smiles after being sworn in last December as Yukon's first Liberal government in 14 years. (Nancy Thomson/CBC)

But despite theinexperience, the Liberal cabinet isan educated bunch made up oflawyers, engineers, and several university graduates.

The Liberals promised respectful, transparent government if elected.

Willthey deliver?

Here arefive things to watch during this legislative sitting.

1. Where's the beef?

The budget is always the big eventof the year not just for legislators and government departments, but indeed for all sectors of the Yukon's economy, given how excessively dependent the territory is on government spending (read: federal transfer payments).

During its tenure, the Yukon Party steered the territory through the unpredictable shoals of the commodities markets, sometimes not so well (Yukon'sgross domestic product has taken a dive inrecent years).

And while Yukon still has no net debt, expect the days of the surplus budget to end at least in the short term. The Yukon Party spent generously over the summer and fall and last year's projected surplus of $9.4million has gone the way of summer wages.

Premier Sandy Silver's first budget will be delivered next week, and itwill indicate his priorities for the territory how he'll put the Liberal stamp on programs, policies, and capital projects. And it's time: the Liberals have already been in office for six months.

2. A Capital Plan

One unsavoury aspect of taking the reins of office from a party that's been entrenched for a decade and a half is that you inherit all itsbig plans for bricks-and-mortar projects, or what's known in government parlance as "capital builds."For the Liberals, some havealready been builtbut the spending headachescontinue.

The 'WTF' - Dawson City's troubled wastewater treatment facility. (Chris Windeyer/CBC)

That's the case with the Dawson wastewater treatment facility, or what then-opposition MLA Sandy Silver once dubbed the "WTF".It's nowhis W.T.F.

The government has filed a lawsuit against CorixUtiliites, the Alberta company that built the plant. The facility is still not operating as it should, and the town of Dawson has refused to assume ownership.

Then there's the massive Whistle Bend continuing care facility costing $146 million to build, and already seeing somesetbacks. Plans for underground parking had to be altered, and there have beenissues with a sinking foundation.

The company, PCL Construction, says it's not a problem. The minister has ordered his own engineering review.

The previousgovernment balked when asked to divulge how much it will cost to operate the facility once it's open. That too now lands on the Liberal lap. A 150-bed facility won't run on a dime. And there's a good chance it's been "overbuilt", because the original design called for 300 beds.

The Whitehorse airport apron was replaced in 2015 but the government is suing the contractor, Norcope, claiming faulty work. (Vic Istchenko/CBC)

The Whitehorse airport tarmacalso has issues. The government is suinglocal company Norcope, claiming shoddy work on a$3.7 million contract to replace the apron.

The demolition of the old F.H. Collins high school has also encountered delays and may seecost overruns of a couple million dollars. Will the public be expected to pony up?

The Liberals will also be expected to make some headway on a new Francophone high school, which the former government committed to another big chunk of change.

3. Promises, promises

That brings us to the Liberals' plans, both for capital projects and programs. Yukoners have been patiently waiting to see which campaign promises the party will make good on, and how soon.

First off, they promised a five-year capital plan for government spending, something the contracting community welcomesbecause it provides predictability.

The Liberals also promised to issue government tenders early in the year, so contractors can be ready to actually build during construction season.

Both those commitments have fallen by the wayside this year, but expectations will be high for next year's cycle (changes in the procurement process, however, are being put into place for this year).

The Liberals also said they would eliminate the small business tax, and reduce the corporate tax rate from 15 to 12 per cent, by July.

Silver also promised to create a $10 million economic investment fund at the Yukon Development Corporation, pave the Dawson City runway, fast track the second fibre-optic line into the territory, and help communities develop community plans and "mining within municipality"policies, compensating miners where appropriate (a potentially expensive undertaking).

They also promised to spend $30 millionper year to help Yukon governments, businesses and homeowners renovate and retrofit for energy efficiency.

They committed to making National Aboriginal Day a statutory holiday, create a public registry for lobbyists, legislate fixed election dates and amend the Access to Information and Protection of Privacy (ATIPP) Act to make government more transparent.

That'sbut a small sampleof the Liberals' platform promises. Granted, the government has until 2021 to deliver,but people will expect to see some real progress this first year.

4. Crafting a Yukon carbon tax

Carbon pricingwas a centralissue of the 2016 election campaign (fracking was another).

Yukon Party leader Darrell Pasloski called the territorial election last October at the Bigway Foods in Whitehorse. (Dave Croft/CBC)

Yukon Party candidates hung theirhats on apromise to keep the territorycarbon tax-free, even holding the election call in a grocery store to make a point about the cost of living.

But it's difficult to fight an idea that's being pushed by the federal government and has been accepted by most other jurisdictions.

All the provinces agreed to a framework for carbon pricing with the Vancouver Declaration of 2016; now the Yukon government must work with the federal government to craft a plan that will work here a remote northern jurisdiction with a small population, a heavy relianceon fossil fuels, and a dependenceon resource extraction industries.

We can expect many a question from the Yukon Party on this topic; not so much from the NDP.

5. First Nations: Feelin' the Love

The Liberals concentrated heavily on First Nations relations during the election campaign, and to his credit, Silver worked hard in the preceding yearsto build solid relationships with Yukon First Nations governments.

Yukon Mines Minister Ranj Pillai with Council of Yukon First Nations Grand Chief Peter Johnston at the AME Round Up in Vancouver in January, signing a memorandum of understanding to work together on mining in the territory. (Nancy Thomson/CBC)

The Liberals made a great showing at this year's mineral roundup and other industry forums, coming out in force with First Nations' partners. Theysigned a joint memorandum of understanding on mineral development.

The Liberals acted as midwife to produce a joint letter in support of the federal Bill C-17, which repeals the four problematic clauses of Bill S-6. It's signed by the government, the Council of Yukon First Nations, and the Yukon Chamber of Mines. The mining industry likes to see this kind of harmony; it means they can assure investors that their cash is secure.

The Liberal government has avoided court with the Tr'ondk Hwch'in First Nation over consultation on mineral staking.

The Kaska are the sticking point on the First Nation file. The Ross River Dena Council and Liard First Nation are outliers who aren't interested in the Umbrella Final Agreement.

Early in their tenure, the Liberals extended the free-entry staking ban to include the remainder of Kaska territory (Ross River has had a moratorium since 2013).That means 23 per cent of the richest mineral land in Yukon is off-limits to exploration.

So here's the real test of Silver's oft-stated commitment to reconciliation:can the Liberals crack the decades-long intransigence of the Kaska? Can they reach agreement on what "consultation and accommodation"looks like, and where it applies?

Smooth relations with other First Nationsischild's play in comparison.