Mr. Chairman, the bill would amend the Tobacco Tax Act to deem a certain amendment to the tobacco tax regulations to have come into force before the amendment came into force under the Tobacco Tax Act and the Statutory Instruments Act.

Mr. Chairman, this bill is being brought forward because there was an error made in the Department of Finance, and consequently we are asking for the bill to bring the amendments to the tobacco tax regulations into force before the amendment came into force. It is a long, complicated story, Mr. Chairman, and we will get into it with Mr. Todd, I am sure.

Chairman of the standing committee on finance, Mr. Todd.

Comments From The Standing Committee On Finance

Mr. Gargan.

Mr. Chairman, what does that mean? The regulations were not implemented when the Tobacco Tax Act

was approved, so is this a retroactive act? What happens during that time that people were paying tobacco tax?

Mr. Pollard.

There was an error made. Somebody picked up a wrong number. All the people who sell tobacco in the NWT were advised, and they charged the correct amount, except that the regulation had the wrong number in it. We are just doing this bill to make the collection of those taxes at the rate the retailers charged, legal.

Mr. Gargan.

What was the mistake?

Mr. Pollard.

Mr. Chairman, each calendar quarter, the retail tobacco prices are surveyed. On the basis of this survey, a new taxable price is calculated. The changes are usually minor.

To implement the new taxable price, a regulation must be prepared by the legislation division. The regulation must be registered to legally implement the new taxable price. The regulation to come into force October 1, 1991 contained an error, and an incorrect taxable price was registered. A new regulation was prepared with the correct taxable price, and was registered, and came into force October 15, 1991. During those 15 days, Mr. Chairman, although we were charging the correct price, the regulation under which we were charging that price contained the wrong number.

To ensure that the correct regulation is made effective as of October 1, an amendment to the Tobacco Tax Act has been prepared. This is the reason for the bill, Mr. Chairman.

Thank you. General comments. Shall we go clause by clause? Agreed?

Agreed.

--- Agreed

Thank you. Clause 1, deemed commencement of certain regulation. Agreed?

Agreed.

--- Agreed

The bill as a whole. Agreed?

Agreed.

--- Agreed

Thank you. Is Bill 12 now ready for third reading?

Agreed.

--- Agreed

Thank you. Bill 5, An Act to Repeal the Neptune Resources Corporation Loan Guarantee Act. Mr. Pollard.

Minister's Opening Remarks

Thank you, Mr. Chairman. Bill 5 would repeal the Neptune Resources Corporation Loan Guarantee Act. This bill is on our books and has never been used. We have no intention of using it, Mr. Chairman. We are merely asking for repealing of this bill. Thank you.

Thank you. Chairman of the standing committee on finance, Bill 5.

For the record, Mr. Chairman, the standing committee on finance reviewed this bill during its meeting on March 4. We had no concerns with the bill and agreed to recommend this bill to the House for consideration.

Thank you. Are there any other general comments? Are we ready to go clause by clause?