Thank you, Mr. Chairman. There is a feeling on this side of the table that the Payroll Tax Act is not going to pass. What is the probability, in case the act is not passed, of

this $155,000 going back to the G.N.W.T. revolving fund? Would that be the case if the Payroll Tax Act is not passed through this House? Thank you.

Thank you. Mr. Minister.

If the Payroll Tax Act is not passed by this House, then I cannot say that that $155,000 is going back into the pot because it will be largely spent, Mr. Chairman.

Thank you. Mrs. Marie-Jewell.

Mr. Chairman, I believe the problem is that the Standing Committee on Finance did not deal with this particular issue, questioning the need for $155,000 for implementation of the Payroll Taxation Act when the bill of the Payroll Tax Act has not passed through this House. The other problem that they had is that the payroll tax bill had been given to the Standing Committee on Finance and it is my understanding that the Standing Committee on Finance has decided to hold public meetings on the payroll tax. The results of the public meetings will determine whether the payroll tax is to be passed. I believe the problem for the Members is having to approve this funding recognizing we have no act in place.

We would like to ask the Minister if there are alternative measures. I know that the only way to actually deal with this through the process of the House, is to delete this from the supp, recognizing that he has expended some of the funding for development of legislation for developing forms. Other than the special warrant, is there another method that the Minister would suggest to address the dilemma that the Standing Committee on Finance is in? Thank you.

Thank you. Mr. Minister.

Mr. Chairman, without the authority to spend the money, I could not do that. There is no other way to do it within the Department of Finance and I would be acting improperly if I went away and spent other money and ended up short at the end of the year. Putting in a 1-800 number and having somebody there ready to answer questions that people are going to ask us about this particular tax, is important at this present time. We think it is important to be in a position to implement this tax. I understand the reservations of some of the Members about the payroll tax, but I would point out to them, Mr. Chairman, that the payroll tax captures those people who are not paying income tax in the Northwest Territories, because they file outside of the Northwest Territories on December 31 of each year. The bill that we passed early today Mr. Chairman, merely raises the personal income tax of people who live in the Northwest Territories. The other option that I have to get funds, is to come back and look at those personal income taxes again, but that would not capture those people who are earning a living in the Northwest Territories and are not paying tax here. That is why I feel that ultimately the committee will see that this is a wiser way to go and it does close the net on those people who are not paying any tax in the Northwest Territories.

The other thing that I would point out to the committee is that, because of the lag time on the payroll tax versus the tax credit system, this payroll tax bill will actually mean somewhere in the region of nine to ten million dollars to us next year and we will be short that money if that bill does not pass. Knowing all those details, and I fully understand that the Members of this committee have not had the payroll tax explained to them in detail yet, I see that ultimately this Legislative Assembly will approve that payroll tax and I would like therefore, to be bold and ask for the Members to approve the $155,000, Mr. Chairman. Thank you.

Thank you. Mr. Gargan.

Thank you, Mr. Chairman. Mr. Chairman with regard to this item, I would like to ask the Minister whether or not that .3 person year is required? Is most of all payroll tax of employees not done by computers? It is just a matter of increasing by one per cent.

Thank you. Mr. Minister.

Mr. Chairman, this person would be setting up the systems for the implementation of the payroll tax. This person would by answering a 1-800 number, so that employers wanting to find out more information on the payroll tax would be able to make a call and get that particular information. Yes, I think it is important that we get this .3 person year so that all those things can be in place and that there is somebody who is familiar with the tax that is available to people from across the Northwest Territories to provide them with information. Thank you, Mr. Chairman.

Thank you. Are there any other general questions with regard to tax administration. Mr. Ningark.

Thank you, Mr. Chairman. I hate to prejudge any issues before they happen, but the people across the territories are adamant about tax increases in any form or size. Also, I understand that the way to tax the transients, as people move in and out of the territories, is through payroll tax. This is given under the Charter of Rights and Freedom where the freedom of mobility is given. I understand clearly that most of the Members are instructed by different constituencies not to support any type of tax increase.

Going back to some of the Members' concerns, we are assuming that the payroll tax has passed. I would hate to approve that amount of money, prejudging that it would be passed. I am not comfortable with passing this appropriation at this point in time. Thank you.

Thank you. Any other general comments? Tax administration. Mr. Antoine.

Mr. Chairman, I would like to defer this particular activity until the end of the supp. We will come back to this later to give us a chance to see what we can do about it. Thank you.

Does the committee agree that we defer this particular item and go on with the other matters? Agreed?

Agreed.

---Agreed

We will consider it at the conclusion of this particular review. Agreed?

Agreed.

---Agreed

Department Of Culture and Communications

Culture and Communications, operations and maintenance, language bureau, not previously authorized ($408,000). Agreed?

Agreed.

---Agreed

Agreed.

---Agreed

Department Of Personnel

Thank you. Personnel operations and maintenance. Staffing, not previously authorized, ($42,500). Agreed? Mr. Zoe.