Thank you, Mr. Chairman. I am not sure that it is overly simplistic to assume that an increase that is going to take $375,000 out of the pockets of insurance companies, is not going to Affect their cost of doing business, and therefore, have to be recovered.
Now, whether that is recovered entirely from the Northwest Territories, or also from the pockets of some of the consumers down south, is not a big factor. It is still going to have to come back to haunt some of the people here in the Northwest Territories.
I do not think it is simplistic to say something that is going to get $375,000, is not going to have some effect. It is the cost of doing business, it has to be recovered, the insurance companies have share holders that they have to provide profits to, and they have to make sure that they cover all their costs before they are going to see any profits.
So, it is not simplistic to say that it is not going to effect the rates here. It will effect the rates here. It has to. I think it is also simplistic to suggest that every revenue initiative that is suggested to this House will be turned down. I think in my opening comments I mentioned that I thought it was only fair that a government that wants to take in some tax revenues, say that they are taking in tax revenues, and be up front about it, present us with that kind of initiative, and see whether, or not, it gets turned down.
The other thing that I would like to comment on, is this argument that there has not been a rate increase since 1976. Well, does that mean we should increase the rates every year, as they go along? Maybe we should call it a fee, instead of a tax. If we increase it every year, in a hundred years, the fee, or tax, becomes 100 percent of the premium. The purpose of putting a percentage on, in the first place, was that you would see your revenues increase as the cost of the premiums increased, that, right there, gets you your automatic increase. There is not an argument for increasing the percentage taken each year.
I do not buy any of the arguments, and I will, still, oppose this bill.