However, Mr. Speaker, it is unfortunate that the media is acting in this way. The whole government evolves around media and reaction to the media. I used to find that difficult when I was a Cabinet Minister. I always take the attitude that if the media is writing about me then they leave someone else alone, and you give me free advertising, and that is one thing I hardly ever buy, advertising in the media.

I know, Mr. Dent finds that shameful, but that is all right. Now, Mr. Speaker, I wanted to mention, a few weeks ago when we had our hockey game against the media, I had to go home because I did have a previous commitment in Fort Smith. There was a long service award dinner for civil servants and many of them gave at least 20 years to this government, many of them were long-term northerners and many of them were in Fort Smith a long time. I found that the dinner itself was very good because you could tell that the people who worked for the government who received their years of service, were really committed to making change in the north. I want to read some of the speech because they asked me to be the key-note speaker and I would like to read some of the speech that I gave to them.

I can remember a time when the government's presence in Fort Smith had a very different face. I can even remember a time when I was a lot younger, when an older gentlemen would get up each morning, drive a government van through town -- probably Mr. Lewis remembers that because he was in Fort Smith at one time -- so that our civil servants would not have to make their own way to work. I do not know if Mr. Lewis got a ride to work, though, I forgot to ask him. I can remember the time the pool of secretaries were all seated in a designated working area without much hope of promotion, because at the time they were women. The lines of communication and the levels of bureaucracy were entrenched as though they were unwritten law.

I can remember what it was like as a young aboriginal person to walk into an office and to be confronted with bureaucratic attitudes that were often polite, but undeniably distant and impersonal. I am familiar with the things that were important. That was more than 20 years ago. Very rarely did I see anyone from a Fort Smith family, it became more noticeable the higher you went in the bureaucracy. I can remember the feeling that many aboriginal people shared, a feeling that career success in the public service was something that might be just reserved for other people. That was then, and I honestly believe that things are much different now.

Now I notice very different attitudes in the government offices in Fort Smith. Now I notice that people are being served more courteously and that there are more concerns for the issues they are bringing forward. I see a more collaborate approach within many government offices, one that is willing to recognize each person's contribution as valuable. I see a more active approach to reaching out, more of a willingness to work together with the town council, the band, the Metis local, the school and public interest groups. Now when I walk into a government office in Fort Smith, I see many people who have grown up in Fort Smith. I see more people of aboriginal descent working for our government in these regional offices, too. Most important, Mr. Speaker, at that dinner I told them that I see northern people of all backgrounds increasingly working their way to positions of senior authority. The face of the public service in Fort Smith has undoubtedly changed. As I am sure most of the people in our community would agree that it has been a change for the better. That change did not happen over night and it did not happen on its own. It happened because of a vision and the hard work that was contributed to by our local public servants themselves.

When the Bourque commission was going around I did a submission and told the Bourque commission that I believed Fort Smith should be a model to the rest of the north in terms of how our various cultures have united to form a community. I believe that Fort Smith can be looked at as a model of the way our long-term public servants have adapted and improved to meet the needs of the community. As you know, now is not an easy time to be a public servant.

I did cite a quote that was pointed out in an article published about two years ago by Graeme Scott, Queen's Council, on the commentary on the public's acceptance of government. I would like to quote a bit from Mr. Scott's writing. "There is no secret that there is a deep malaise in the country," he wrote. "There is no longer a belief that the problem belongs to someone else, or that it is all because of one or two unpopular leaders. Canadians are not just angry with politicians, they are unhappy about the whole institution of government and they have lost faith in the ability of the state to manage any major undertaking. This public perception has been steadily gaining ground for almost a decade at both the federal and provincial levels. Even though Prime Ministers and Premiers inevitably absorb the brunt of the criticism, make no mistake the public service is equally a target and no less a risk."

I thought long and hard about Mr. Scott's comments at the time. I went and found them again when I was getting ready to give that particular speech. I think in many ways those observations are quite accurate but, personally, I find them unfortunate. It was unfortunate that people who feel that way across Canada could not have an opportunity to see the positive impact which the flexibility of civil servants in my community and the commitment have made to community development in the Northwest Territories.

Mr. Speaker, those are basically some points I had told my constituents in thanking them for doing the work they do in my community. Those are the comments I made to them at the long service awards dinner.

Mr. Speaker, I think it is important to note as well that there has been a great deal of work completed in the Assembly. When I spoke earlier of the media I thought, oh well, they might want to throw mud at the elected Members of this House. Publicly funded CBC station may want to dig into personal matters and Members' personal financial matters to try and fabricate scandals. The senior bureaucracy in Yellowknife may complain because the departments are now held more accountable and the Federation of Labour put on silly events to try to ridicule MLAs. But the fact of the matter is that since the election there is not doubt about it that this House has got a great deal of work done. I will give you some figures.

During the first year of the 12th Assembly, standing and special committees of this House brought forward 24 committee reports and some of those reports were lengthy. During the first year of the 10th Assembly, committees dealt with only 10 reports. So we more than doubled that. The first year of the 11th Assembly, committees dealt with only seven reports. This year, this Assembly tripled the amount of reports than the last Assembly in the first year. So, there is no doubt there has been a lot of work done. We sat longer, we dealt with more issues and we coped with harder economic times than any other Legislative Assembly in the history of the Northwest Territories.

Committee procedures have been changed to allow almost unlimited public access to the process through which legislation is passed. Previously, this was mostly done behind closed doors. The Standing Committees on Public Accounts, Legislation and Agencies, Boards and Commissions have held major review initiatives with extensive public hearings. Not just in Yellowknife, but across the Northwest Territories. Even then the media was wondering what we were doing. We were consulting with the public, with the people out of Yellowknife.

The rules of the Legislative Assembly have just been revised to make them easier for average readers to understand. We are well on the way to seeing more open government through television coverage of question period and, hopefully, long-awaited access to information legislation.

---Applause

When the media or jaded bureaucrats or even Cabinet Ministers accuse MLAs of spending all their time bickering or accomplishing nothing, I tell them they are wrong, Mr. Speaker. Does it sound like the performance record of this Legislature is accomplishing nothing? I do not believe so. I think we work hard. Many times we come in here at 8:00 am. It is too bad there are no reporters sitting out there at 11:30 pm when we are sometimes finishing up our work for the day.

Mr. Speaker, I think now our Cabinet, at least for the most part, is made up of people who are more sensitive to human concerns at the community level. They seem to be less pressured into meeting the needs of their senior bureaucracies. I think this is a positive development because I have always believed politicians address the needs of the people, if we want to be bureaucrats or if we want the bureaucracy to run the government there is no need for politicians.

I think this is a positive development and I think it holds much promise for the future success of this government. The Cabinet, over the past three months, has shown greater political commitment to addressing people's concerns and issues. I believe, however, there are still some areas of concern though, and I want to raise these now so that they are on the record.

I have become concerned by the attitude that has been demonstrated over the course of the current session by my good friend, the Honourable Stephen Kakfwi. At times I feel he takes a rigid stand on several poorly reasoned administrative decisions. I have found that he has been uncooperative in responding directly to Members' questions. I want to state clearly that I do not appreciate the responses he has made, at times, with respect to myself and other honourable Members during debate. We have become familiar with these antics, as in previous sessions when he refused to rise from his chair to respond to a question posed from my honourable colleague from Deh Cho. I believe this type of attitude has become more noticeable during the current session.

I remember one time when he responded to a straightforward question regarding the housing strategy posed by my honourable colleague from Inuvik. He stated and I quote, "Mr. Speaker, I go to work every day with the optimistic view that I am going to be bashed by someone in some capacity or another. That is part of the job. Some take more pleasure in it than others, it is just part of the job as far as I am concerned." On March 15, he used the same tone to respond to my questions. I want to state clearly that I do not appreciate the comments he has made with respect to me regarding the way the debates have been held.

On March 15, when I asked him a question, he used the same tone to respond to my question about the preferential treatment accorded to the inmate that I had mentioned earlier. In that case he stated, "I do not see anyone asking for something specific to be dealt with. I do not agree with the Member that she is the sole spokesperson for what the public thinks should be done in any case." On March 22, he was at it again, Mr. Speaker. That day he tried to tell you, and I quote, "I do not mind answering questions in this House, but I do not like being interrupted by the Member because on record it gives the impression that I am not answering the question, or that I sit down in the middle of answering the question. There is no recording of the cat calling and the bits of petty abuse that the Member..." and then, thankfully, you cut him off at that point, Mr. Speaker. You made a good ruling.

Here is another instance. On March 26, just last Friday, I tried to clarify the confusion that he had generated about his decision to alter well operating programs at the River Ridge young offenders facility. He carried on. "The Member continues to interrupt and I think her constituents would probably ask her to be polite and listen when she asks a question, so she can get a good response. I would suggest that she try to pick up a good habit." Mr. Speaker, when I went home that weekend, my constituents said, "Whether he likes it or not, you listen to us, that is why we support you. You are a good listener and he should remember that." However, he should not make those types of comments in this House.

I think, why does he feel he is so special that he can tell other Members whether they are speaking for public concerns in their constituency? Why does he decide he is going to sit down in the middle of answering a question? Mr. Speaker, these Ministers are paid a salary that far exceeds what many of our constituents could dream of making. He is paid that salary because he is supposed to answer those questions that I pose to him, not to get what we call "cheeky." How dare he tell me that my constituents want me to pick up a habit of being quiet. I know what my constituents want of me. They know I am outspoken, that is probably why they vote for me. When they see poorly researched ministerial decisions, they want to know why.

I recall the same Minister getting himself into trouble and he had to withdraw inflammatory remarks directed to my honourable colleague for Mackenzie Delta before he went on the Cabinet. That happened when he did exactly the same thing. He presumed to tell the honourable Member for Mackenzie Delta about his performance in representing his constituency on Gwich'in land claims issues.

Mr. Speaker, there is nothing special about that Minister, but he has no authority to go around commenting on other Members' comments, whether they are speaking for their constituents or not. I hope he heeds my remarks because otherwise he will continue to place an impediment on the business of this House and to effect our cohesiveness as we attempt to address our consensus style of government.

Mr. Speaker, I do not go around and say, "Look, you did not do a good job as Minister of Intergovernmental Affairs. The Charlottetown Accord is dead." I do not bring things like that to him as some of the things he has put his efforts into are wasted efforts. I feel that sometimes these Ministers have to be a little more cautious in how they address us, because I will not tolerate it.

Mr. Speaker, as I continue to consider the performance of Cabinet Members, I would like to put my view on the record, particularly to the Minister of Renewable Resources. These two Ministers are not even in the House. It is too bad because I always tell people to their face what I think of them if I do not like it. He needs to devote more attention to some of the issues that are a priority. He needs to address, for example, the dumping in the Arctic. That is critical for the people of the Arctic. When he does not address some of the concerns, particularly today, when Mr. Pudluk, in frustration, ripped up his answer, that is not good.

I will tell you that I am pleased that some progress was finally starting to take place with regard to the finalization of the trans-boundary water quality agreement. I believe he should be commended for that. However, I hope that I will have an opportunity during the fall session to more carefully review exactly what steps have been taken and precisely what has been accomplished by the Minister and his department in that area.

I also want to note for the record that at times I have been disappointed with my good friend and what I observe as a growing defensiveness and a chauvinistic attitude of Mr. Morin. It is obvious, Mr. Speaker, by his actions earlier this session that Mr. Morin cannot take criticism as a Minister. Particularly, when it comes from a woman. We are good friends and he always tells me, "Women should always stay at home. Women should always walk two steps behind me." That is the type of attitude he has. I have to straighten him out.

I was really saddened by the defensive approach he took when I criticized him, he could not take the heat. He came back yelling abuse. The problem I have at times, Mr. Speaker, and I admit it, I am too candid. People cannot deal with candidness.

Mr. Speaker, to the Government Leader, the Honourable Nellie Cournoyea, I would say that I, and my constituents, appreciate the hard work and the ongoing commitment that she has demonstrated to the people and to the Government of the Northwest Territories. Sometimes I am simply amazed at the Premier's capacity to work long hours and get things finished. In most cases, I have noticed that she is able to motivate the same level of commitment and energy from the people around her. I want to tell the Government Leader that she is making a difference and to keep up the good work, I appreciate it.

---Applause

There have been so many times, Mr. Speaker, that I am grateful that she was chosen as Government Leader. I would like to encourage her to give advice to her Cabinet Members to improve in some areas. It has to do with their performance in responding to oral questions in the House. I would like to ask the Government Leader to tell the Ministers to read their briefing materials before session. They should read the briefing notes which their departments prepare, and not try to look through them when we are asking the questions. Too often, Mr. Speaker, ordinary Members come in this House with well prepared questions and issues which are important to our constituencies. My constituents ask me when I go home, "Why is there such a long time when Members ask question before a Minister answers. There is a really long pause before it comes back on the radio, why is that"? I have to tell them, they are trying to find the answer in their briefing notes and they cannot locate their briefing notes quickly. Sometimes they are thinking of the answer, but most of the time they are looking for the answer in their briefing notes. If they were to read their briefing notes prior to coming into the House, they probably would be able to remember the answer and tell it to us.

What is extremely frustrating, is when the current issues of the communities are unable to be answered and they take the questions as notice. Sometimes it is disappointing when they say they will discuss this with the Member outside of the House, or that they will send a letter to the Member about this. Today, I received a letter from Mr. Kakfwi, employment while on leave, about Mr. DuPerron who has been working with this government, not even two years, and he received leave without pay. A privilege which many people were denied. Mr. Speaker, if Members wished to deal with the issue privately they would never ask the question in the first place, they would not bring it into this House. Many issues I want dealt with, I go directly to the Minister, and leave the issue out of the House. However, some times they take the reply, I will look into it and get back to the Member, and some times they forget about it.

Mr. Speaker, in the first session of the 12th Assembly there were a total of 175 questions posed to the government, 41 questions were taken as notice. I figure that out to be about 23 per cent of questions which were taken as notice. During the second session there was a total of 922 questions, 139 of those questions were taken as notice. That was about 13 per cent. Up to March 30 in the third session there is a total of 652 questions, 77 questions have been taken as notice. That is about 11 per cent. There is no doubt there has been some improvement in our Cabinet's performance. Mr. Speaker, they should set a goal one every five to ten questions, they should be able to answer. I know if they come in better briefed, if they read their briefing notes, to take their responsibilities for providing information in question period, they probably could all stand up and not take any as notice. The Cabinet Members are fairly smart. That is why we chose them. Those are my comments about the Cabinet, Mr. Speaker.

Mr. Speaker, in reviewing the work which has been done in the House, I have noted that a new and more readable form has been developed for unedited Hansard. I have also noted that an index is provided in the front of each day's unedited Hansard, and I think that is positive. It is a very positive development. However, I must say that I have been approached by constituents questioning why it takes so long for edited Hansard to be completed and distributed to the communities. I tell them that we have just got a new company to do Hansard, give them time. We will be observing that, Mr. Speaker. I am sure they will be encouraged to try to get the edited Hansard out to the communities. Our constituents are only able to listen to one hour on the radio and they do not have other mechanisms to see what is going on in this House.

Mr. Speaker, one of the reasons that I have made such serious comments about the performance of this government was because I hope it will be able to put itself in a position to face the many pressing challenges ahead. The report of the Bourque commission, which was titled Working Towards a Common Future, was worth noting. I believe that we are going to need to work closely together if we are ever going to cope with the unprecedented changes that will be taking place in the Northwest Territories. I would like to comment further on some aspects of the constitutional challenges that will face us. I want to say that I have always been on the record as opposing the concept of guaranteed representation. As I look into the future for the western territory there is still no doubt that aboriginal people will form a minority within the expected population of 13,000. We have to ensure that the native home land is protected and that the rights of aboriginal people are guaranteed. I very much agree with the comments made by my honourable colleague from Nahendeh yesterday with regard to the need for community involvement and consultation in the constitutional process. I also think it is very critical that we somehow address the need to work towards a common future on a common footing.

Mr. Speaker, there have been too many injustices in the past. There has been too much of a history of exploitation of the people, of the land, of the resources, to overlook the need for adequate aboriginal representation within any government structure. If you look at Treaty 8 and the different treaties you will know that many of the historic commitments made by the Crown have not been fulfilled today. As native people, Mr. Speaker, this is our home land, other people are here to visit us and they want to make this their home, and we welcome them, they want to share our home land. We, as native people, have always embraced in a sharing culture. We have no problem with that. We have grown up with that concept. It is always a fundamental principle that we have grown up with, you learn to share. I certainly feel that if this Legislative Assembly is going to develop a constitution which is going to work towards a common future, one of the elements is to share the land. However, Mr. Speaker, until the claims for the native people of the north are settled, I am now of the opinion that it is vital that the concept of guaranteed representation be considered when we develop our western territorial constitution.

From our past experiences with sharing this land with non-native people, aboriginal people know that their culture can at times become easily oriented towards exploitation. I think we interpret this as greed. We only need to look at what has happened with respect to mining development. Since the diamonds have been discovered, all the exploration permits have been issued. There is no doubt that many of them have been issued to non-native people. In fact, permits have been issued to up to 40 million acres in regard to diamond exploration, to date. That is a great deal of land.

We use the land to provide us with resources to live from, for harvesting and spiritual purposes, not to exploit it for what we need. Therefore, Mr. Speaker, even though I have always been on the record opposing guaranteed representation, I now believe that the new western Arctic constitution will need some mechanism for ensuring that appropriate aboriginal representation, by that I mean aboriginal representation is in place within the system of government.

Mr. Speaker, I want to at this point in time thank a few people, particular in my constituency. I want to give my thanks to the past Reverend Dexter who is no longer the reverend for the Anglican church, but is still a resident of our community who has put Fort Smith on the map on many different occasions for all the work he has given and devoted to the Anglican church in Fort Smith.

I want to thank the band for the continual support they give me. The Metis local for their continual support. I want to thank the town councillors who give me continual support, sometimes my mayor has a different opinion but I know the town council supports me. I particularly want to thank my staff in Fort Smith. I also want to thank the Clerk of the House for all the help he gives MLAs.

---Applause

I thank him for the past ten years of service and I wish him another ten years, at least. He probably could endure more, though, because we are pretty good to him.

Mr. Speaker, I want to thank the Law Clerk for the assistance she gives me when I need it, and the research staff for their assistance. They work long hours and they work hard.

Mr. Speaker, just a remark about my constituency accomplishments. The one accomplishment that I have been most pleased and happiest about this year, as you know Mr. Speaker, the people of Fort Smith were distressed to learn that our local banking access would end in June when the Canadian Imperial Bank of Commerce was scheduled to close their doors. I want to thank the Bank of Montreal for listening to our concerns and for agreeing to open full service banking operations in Fort Smith within the very near future.

---Applause

I feel very proud of that accomplishment because I had to tell my constituents who wanted to go to negotiate with the Bank of Commerce to settle for lesser services, no. When you believe in what you are doing you do not settle for less. I told them that evening, and I got negative press for it saying I scolded my constituents because I believe they should not settle for second best. I said they deserve full banking institutions. We got together as community leaders, the chief, the Metis president, the mayor, the chamber of commerce, and convinced them that we should not have to settle for less. I said all the head offices for banking, financial institutions are in Toronto, we have to make our way there. We have to pitch in and tell them we need a bank for our community. We are not going to step backwards as a community, we have to go forward. That is what we did. We convinced them and now they are coming to Fort Smith.

---Applause

Mr. Speaker, believe it or not, that just about concludes my reply. I have to give thanks, as I said, to the staff of the Assembly, to my constituents in Smith, and even sometimes when the media does not give us proper news stories, at least what news they do get out they make an effort to get it out to the people. I certainly hope they can pick up and give more informative news to the people of the north.

On behalf of my family and myself, I hope each Member has a very happy, productive, and most importantly, a very healthy, summer. Mr. Speaker, I look forward to seeing all Members again and yourself in November once we depart from Fort Providence. Thank you.

---Applause

Thank you, Mrs. Marie-Jewell. Item 8, replies to opening address.

---Laughter

Item 9, petitions. Item 10, reports of standing and special committees. Mr. Antoine.

Thank you, Mr. Speaker. The Standing Committee on Finance, in accordance with its terms of reference, is pleased to submit its report on the review of Bill 26, An Act to Amend the Income Tax Act, No. 2, and Bill 27, Payroll Tax Act, 1993.

Background

Mr. Speaker, the Standing committee on Finance met in Yellowknife on five occasions in February, 1993, to consider the first Tabled Document 21-12(3): Payroll Tax Act. At that time, the committee consulted with the Minister of Finance and reviewed written submissions from the public who were invited to provide input. The committee also employed the services of a taxation specialist, Mr. William P. Daye, CA, to undertake a detailed review of the draft legislation with the Department of Finance.

The Standing Committee completed its initial review and tabled its report on February 18, 1993. The committee supported the principle and the objective of the policy initiative. However, the review raised a number of concerns, many of which related to the means of implementing this tax. As a result, the Standing Committee on Finance concluded that it could not recommend passage of the Payroll Tax Act in its present form.

The Minister of Finance undertook public consultation, redrafted the proposed legislation and tabled the following documents:

- Tabled Document 101-12(3), tabled on March 17, 1993 - Proposed Bill, Payroll Tax Act, 1993

- Tabled Document 102-12(3), tabled on March 17, 1993 - Proposed Bill, An Act to Amend the Income Tax Act, No. 2

- Tabled Document 104-12(3), tabled on March 19, 1993 - Summary of Proposed Regulations for Payroll Tax Implementation.

The proposed Payroll Tax Act was revised and on March 31, 1993, two bills received first reading. These are as follows: - Bill 26, An Act to Amend the Income Tax Act, No. 2

- Bill 27, Payroll Tax Act, 1993

Implementation Process

The Standing Committee on Finance is distressed by the process used by the government in attempting to implement the Payroll Tax Act. In the first place, the Minister of Finance failed to respond to the standing committee's report of February 18, 1993 in a timely fashion. Secondly, the government did not take the committee's suggestions regarding legislative process seriously. These actions defeated the purpose of the committee process and result in a situation whereby Members of the Legislative Assembly have been essentially presented with a last minutes ultimatum.

The third factor which concerned the standing committee was the fact that the public consultation process undertaken by the government has been too rushed. The committee noted, for example, that the government did not advertise in the newspaper widely circulated in the Inuvik region, the South Slave and the eastern Arctic. Finally, the Standing Committee on Finance feels strongly that the government has not allowed enough time for this important legislation to be properly considered in the Legislative Assembly. The committee is distressed by the possibility that important considerations have been overlooked, in the government's haste to implement the Payroll Tax Act by the initially established target date of July 1, 1993.

Purpose Of The Review

The purpose of the Standing Committee on Finance review of the proposed Payroll Tax Act and associated legislation and regulations is as follows:

- To assess the policy objectives of the proposed legislation;

- To determine whether the proposed legislation meets the policy objectives; and,

- To determine whether, in the context of total revenue and expenditures, the proposal presented is realistic and allows the government to fulfil its mandate.

Public Consultation

The Standing Committee on Finance was informed that the following actions have now been undertaken by the Government of the Northwest Territories regarding the proposed Payroll Tax Act:

- Writing to individuals and organizations, who had responded to the initial call for public input, explaining the revisions undertaken and asking for further input; and,

- Publishing a notice to the public, in the March 19, 1993 issue of Yellowknife and in the March 22, 1993 issue of News/North, inviting written submissions.

Revisions To The Proposed Payroll Tax Act

The revisions made to the proposed Payroll Tax Act, after its tabling on March 17 and prior to first reading on March 31, 1993, were reviewed by the standing committee's consultant and discussed with the Minister of Finance and his officials on April 1, 1993. The revisions were not substantial, rather they were required for reasons of legal or technical clarity and many were made in response to suggestions from the standing committee or the public.

For example, one set of revisions resolves a previous deficiency in the definitions of "employee" and "person." Another series of changes will provide a better method of dealing with employees who do not reside, and are employed only temporarily, in the Northwest Territories. The change will enable the establishment of a fixed amount below which temporarily employed non-residents will not be subject to the Payroll Tax Act.

Further changes clarify the anti-avoidance rules imposed and prevent employers from using service contracts with non-resident companies to avoid collecting the payroll tax from employees. A final revision resolves a previous deficiency with respect to the enforcement and collection system.

Assessment Of The Payroll Tax Scheme

Legislative Rationale

The Payroll Tax Act was developed in response to a need on the part of the Government of the Northwest for additional revenues. This tax is proposed as a key element of the 1993-94 fiscal framework. The government is counting on the revenue emanating from this taxation scheme to balance the budget.

The proposed Payroll Tax Act will meet its objective to obtain tax revenues from individuals who work in the Northwest Territories but who do not pay income tax here. The tax addresses the problem of leakage of potential tax dollars and will capture revenue from southern-based activities like the diamond rush and possible major transportation projects.

The Payroll Tax Act has been drafted to minimize the administrative burden for small businesses. Businesses with a total payroll of less than $200,000 will be required to file only once a year.

Recent budgets in other Canadian jurisdictions, such as British Columbia, Saskatchewan, New Brunswick, Newfoundland and the Yukon clearly indicate the trend of increasing taxes to fight deficits. Taxes need to be increased in some form in the Northwest Territories in order to avoid falling behind. When other jurisdictions in Canada increase their tax rates, it affects the performance of the formal financing agreement with Canada. The committee recognizes the need to raise more revenue through taxation.

Some written submissions and public commentary have suggested that the implementation of one percent payroll tax could soon be followed by increases in this proportion. In this regard, the bill has been referred to by some as "the thin edge of the wedge." However, any increases to the payroll tax can only be done by passage of an amendment to the legislation by the Legislative Assembly.

The proposed Payroll Tax Act will not create an unnecessary burden for low income earners and those in receipt of social assistance and workers' compensation. The tax will be accompanied by a tax credit through which northern residents whose incomes are less than $55,000 per annum will receive a rebate that equals or exceeds the tax paid.

One of the little understood aspects of the proposed taxation scheme is the tax credit which would accompany the payroll tax. The tax credit will be administered by the federal government through the proposed amendment to the Income Tax Act. Attachment one, prepared by the Department of Finance, illustrates the total impact of the payroll tax and the tax credit.

Committee Concerns

The Standing Committee on Finance recognizes that there will be difficulties with any taxation proposal. No tax system will please everyone. The standing committee, in its review, has noted a number of difficulties associated with the current proposal. These problem areas are described briefly below.

The standing committee wishes to make it clear that although one of the stated purposes of the proposed tax was to obtain tax revenues from individuals who work in the Northwest Territories, but who do not pay income tax here. It is now estimated that 70 to 80 percent of the revenue generated will come from residents of the Northwest Territories. This fact has generated some negative reaction to the tax among northerners.

By the time the proposed tax changes are fully implemented in 1995-96, it is projected that annual net revenues of approximately $1.6 million will be generated. In addition, approximately one per cent of this revenue will be absorbed by administration costs. These administrative costs do not include the costs which will be borne by employers to collect, remit and comply with the proposed Payroll Tax Act. The employers' cost is a hidden cost but it has potential to be quite significant. The committee has concluded that as a means of raising revenue, the Payroll Tax Act is too complex in relation to its revenue potential.

Taxation schemes, once implemented, tend to remain in place for a very long time. With this in mind, taxation schemes need to be well thought out and very carefully constructed. The Standing Committee on Finance is of the opinion that the necessary care and consideration has not been given to the development of the proposed payroll tax scheme. In addition, the committee is fearful that the government, once having implemented the payroll tax, will succumb to the ever-present and all to easy temptation to generate additional revenue by means of increasing the rate of taxation.

The standing committee is troubled by the fact that, under the present proposal, there are some classes of taxpayers who will receive a rebate even though they do not pay the payroll tax initially. This class of taxpayer is comprised of self-employed individuals. The Minister of Finance informed the committee that he believed that this class of taxpayer was relatively small. He indicated that attempts were made to alleviate this difficulty but that these attempts have been so far unsuccessful. He undertook to continue to search for ways to ensure that self-employed individuals, who are exempt from paying the payroll tax, will not receive a rebate.

Conclusion

The Standing Committee on Finance has met, initially on March 15, and again on four separate occasions on April 1 and 2, 1993, to fulfil its responsibility to carefully review the proposed legislation put before it. Several very real concerns emerged from these deliberations and these concerns are duly reported in this document.

The Standing Committee on Finance has worked very hard to ensure that this proposed legislation is as effective as it can be in achieving the fiscal policy objectives of the Government of the Northwest Territories. The committee feels that the proposed legislation has been improved immeasurably as a direct result of these efforts. However, the committee feels that these efforts have been hampered by the haste in which the government has attempted to implement the Payroll Tax Act.

The Standing Committee on Finance has completed its review and assessment of the proposed Payroll Tax Act and the Act to Amend the Income Tax Act, No. 2, within the confines of the limited time allocated.

Recommendations

The Standing Committee on Finance agrees that there is a need for the government to raise more tax revenues. The alternative to the payroll tax is either a further increase in personal taxes or an increase in the business tax. Given the alternatives, the committee believes that the implementation of a new tax, the payroll tax, may be the best alternative. On the basis of agreement with this rationale, some Members feels that Bills 26 and 27 are now ready to proceed.

However, other Members of the committee were outraged with the very flawed process of consultation with the Standing Committee on Finance and Members of the Legislative Assembly. The Minister did not act in a timely manner to deal with the initial Standing Committee on Finance recommendations so that Members would have a reasonable amount of time to consider the revised bill before today, nor has he communicated how the payroll tax and the tax credit will work to those Members who are not Members of the Standing Committee on Finance. For these reasons, some Members felt strongly that Bills 26 and 27 are not ready for passage at this time.

Therefore, this committee recommends:

Recommendation 1

That the following bills be moved into committee of the whole for further consideration. Bill 26, An Act to Amend the Income Tax Act, No. 2, and Bill 27, Payroll Tax Act, 1993. Recommendation 2

The committee recommends that the government continue to investigate ways and means to ensure that self-employed individuals, who are exempt from paying the payroll tax, will not receive a rebate.

Motion To Accept And Move Committee Report 20-12(3) To Committee Of The Whole

Mr. Speaker, that concludes the report of the Standing Committee on Finance, therefore I move, seconded by the honourable Member for North Slave, that the report of the Standing Committee on Finance on Bill 27, Payroll Tax Act, 1993, be received by the Assembly and moved into committee of the whole as the first item of business for today.

Your motion is in order, Mr. Antoine. To the motion.

Question.

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

The report will be put into committee of the whole today.

Item 10, reports of standing and special committees. Item 11, reports of committees on the review of bills. Mr. Antoine.

Report On Bills 26 and 27

Reports of committees on the review of bills, Mr. Speaker. I wish to report to the Assembly that the Standing Committee on Finance has reviewed Bills 26 and 27 and wishes to report that Bills 26 and 27 are now ready for committee of the whole. Mahsi.

Thank you, Mr. Antoine. Pursuant to rule 66(3), Bills 26 and 27 are ordered into committee of the whole. Mr. Pollard.

Thank you, Mr. Speaker. I seek unanimous consent to waive rule 66(5) and have Bills 26 and 27 moved into committee of the whole for today. Thank you, Mr. Speaker.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Bills 26 and 27 will be moved into committee of the whole today. Item 12, tabling of documents. Mr. Todd.

Thank you, Mr. Speaker. I wish to table the following document: Tabled Document 145-12(3), legislative action paper, the Workers' Compensation Act, March, 1993.

I wish to table the following document. Tabled Document 146-12(3), return to Oral Question 49-12(3), WCB policy changes to acquire information.

I wish to table the following document. Tabled Document 147-12(3), return to Oral Question 104-12(3), dollars provided for safety education.

Thank you, Mr. Todd. Item 12, tabling of documents. Ms. Cournoyea.

Mr. Speaker, I wish to table a document on behalf of the Honourable Don Morin. I wish to table Tabled Document 148-12(3), response to Committee Motion 64-12(3) on the recommendations contained in the report of the Standing Committee on Agencies, Boards and Commissions on the proposed elimination of the Northwest Territories Housing Corporation board of directors. Thank you.

Thank you, Ms. Cournoyea. Item 12, tabling of documents. Mr. Nerysoo.

Thank you, Mr. Speaker. I wish to table the following document. Tabled Document 149-12(3), return to Oral Question 539-12(3), plans for expansion of classrooms in Coral Harbour. Thank you, Mr. Speaker.

Thank you, Mr. Nerysoo. Item 12, tabling of documents. Mr. Ningark.

Thank you, Mr. Speaker. I wish to tabled three documents. Tabled Document 150-12(3), a letter written to me from Mr. Terry Sieffert of Taloyoak concerning the GNWT housing strategy.

Tabled Document 151-12(3), a copy of a letter from Mr. Terry Sieffert written to Peter VanLindenberg, superintendent of Government Services and Public Works, regarding the same issue.

Mr. Speaker, I wish to table Tabled Document 152-12(3), a reply from Mr. Peter VanLindenberg to Mr. Terry Sceiffert regarding the GNWT staff housing strategy. Thank you.

Thank you, Mr. Ningark. Item 12, tabling of documents. Mr. Patterson.

Thank you, Mr. Speaker. I wish to table Tabled Document 153-12(3), an article from March 24, 1993, issue of the Globe & Mail, titled Nuclear Waste Dumped at Sea, Russia Confirms. Thank you.

Thank you, Mr. Patterson. Item 12, tabling of documents. Pursuant to section 30 of the Northwest Territories Act, I would like to table Tabled Document 154-12(3), report of the Auditor General to the Legislative Assembly for the year ended March 31, 1992 on other matters. Item 12, tabling of documents. Mr. Nerysoo.

Thank you, Mr. Speaker. I would like to seek unanimous consent to return to Item 2, Ministers' statements.

The honourable Member is seeking unanimous consent to return to Item 2, Ministers' statements. Are there any nays? There are no nays. Please proceed, Mr. Nerysoo.

Thank you, Mr. Speaker, and honourable Members. Mr. Speaker, the number of NWT students attending post-secondary institutions has increased by about 30 per cent over the past five years. Since most of these students are eligible for student financial assistance this increase has put pressure on the student financial assistance program.

To administer this program more effectively and to ensure we have the resources to help as many students as possible, revisions have been made to the student financial assistance regulations which have been implemented for the fall semester of this year.

Deadlines will be set for post-secondary students applying for assistance. Students planning to attend schools starting in the fall semester must submit their applications before June 15.

Students wishing to attend classes in the winter semester must apply for assistance before October 15. The students whose programs would start in the 1994 spring inter-session must apply before February 15, 1994. Students who apply after these deadlines will not receive funding for that semester and will have to reapply for funding for the following terms.

Revisions have also been made to the rate structure of student allowances so that they are consistent with rates paid by the Department of Indian Affairs and Northern Development to aboriginal post-secondary students in the rest of Canada. I would like to note, Mr. Speaker, that the Northwest Territories student financial assistance program is one of the most generous in Canada and will remain so after these changes are introduced.

A basic grant is available to people who attended school in the Northwest Territories for at least three years, plus supplementary grants are available also to aboriginal people born in the Northwest Territories.

Primary and secondary loans are available to people who have lived in the Northwest Territories for at least three years and a needs assessed loan is available for one year of residence and for students facing financial hardship.

A student financial assistance program also offers scholarships for academic excellence and post-secondary. There are currently 1,160 Northwest Territories residents attending college or university with the assistance of this program.

The Department responsible for Education, Culture and Employment Programs will be informing students of the upcoming changes. Students and parents with questions on the new rate structure are encouraged to contact the advanced education office located in the region or call the student services division of my department for more information.

Mr. Speaker, I would like to add that these changes were, in fact, given notice to this Assembly approximately one year ago.