Thank you. Your motion is in order. To the motion.

Question.

Question has been called. All those in favour, please raise your hands. Down. Opposed? Motion is carried.

---Carried

Schedule, vote 1, total O and M now reads $25,175,000. Agreed?

Agreed.

---Agreed

Now vote 2, capital. On the capital, total capital is $4,004,600. Agreed?

Agreed.

---Agreed

Total supplementary appropriation now is $29,179,600. Agreed?

Agreed.

---Agreed

Bill as a whole. Agreed?

Agreed.

---Agreed

Now this bill is ready for third reading as amended. Agreed?

Agreed.

---Agreed

Thank you. Now we go to Bill 2 in the green book. Borrowing Authorization Act. Mr. Minister, opening remarks.

Mr. Chairman, I would request the committee's permission to change witnesses if I may, please.

Does the committee agree?

Agreed.

---Agreed

Mr. Minister, for the record, please introduce your witness.

Thank you, Mr. Chairman. Mr. Chairman, the gentleman with me now is Mr. Eric Nielsen, who is the deputy minister of the Department of Finance. Thank you, Mr. Chairman.

Thank you. Mr. Minister, could you introduce the bill, please?

Minister's Opening Remarks

Thank you, Mr. Chairman. Bill 2, is a Borrowing Authorization Act. The purpose of this bill is to provide authority to the Commissioner or to the Minister or the Comptroller General acting for the Commissioner, to borrow money up to a limit of $65 million to ensure that the Consolidated Revenue Fund can meet lawfully authorized disbursements, and to repeal the temporary Borrowing Authorization Act, S.N.W.T. 1990, c.15, and the Borrowing Authorization Act S.N.W.T. 1991, c.36. Thank you, Mr. Chairman.

Thank you. Are there any remarks? The honourable Member for Keewatin Central.

Comments From The Standing Committee On Finance

Thank you, Mr. Chairman. I have a few brief comments to make on behalf of the committee with regard to the Borrowing Authorization Act.

The committee has concerns about the manner in which this bill was presented to the committee. The committee received a letter from the Minister of Finance on December 4, 1991, stating his intention of bringing this bill to the committee for consideration prior to this session. The committee reviewed this letter during its meeting on December 5th. Although we were concerned with the very short notice, the committee had several concerns about the intention of this legislation as set out in the letter. In essence, it would have given the government authority to borrow up to the limit the federal government has set for us pursuant to the Northwest Territories Act. This limit increases annually; $310 million for the current year; $350 million for 1992-93; $375 million for 1993-94; and $400 million for 1994-95. The government has already borrowed $200 million towards this limit.

The committee has strong objections to granting this authority without further legislative review, so the Minister agreed to withdraw this provision of the bill.

The committee received the bill itself on December 10th. The committee was pleased to see that the Minister sent the bill that would allow the government to borrow a specific amount -- some $65 million. The Minister informed the committee that this is the amount needed to cover the expected working capital shortfall that the government will have this year. The committee is concerned about this shortfall; however, we recognize that this is a fiscal situation that the current cabinet and finance Minister inherited and must now deal with.

It is the committee's opinion that borrowing money to pay our way is a frightening trend and is far from ideal. If we continue on this course, we will be in much the same position as governments in the South in the very near future.

Bills requesting further increases to the government's borrowing authority will not be received with much enthusiasm by the committee in the future. Thank you, Mr. Chairman.

Thank you. Are there any other remarks? The honourable Member for Thebacha.

Thank you, Mr. Chairman. I had asked at the committee level, and I would like to ask here, recognizing that this bill is repealing the Temporary Borrowing Authorization Act, S.N.W.T. 1990, c.15, and the Borrowing Authorization Act, S.N.W.T. 1991, c.36 which basically gave the authority to the Minister of Finance to be able to borrow up to $10 million. It is my understanding that that authority to borrow $10 million was to allow for loans to the municipalities in the Northwest Territories. It is further my understanding that these loans were not needed by the municipalities of the Northwest Territories. The Minister of Finance has publicly indicated that the GNWT basically needs $50 million, and now he is repealing the previous $10 million and coming in requesting $65 million. Can he clarify his government's position? Thank you.