Thank you, Mr. Chairman, and good afternoon, and good afternoon to the committee. Thank you. I wish to report that the Standing Committee on Infrastructure reviewed Bill 19, the Municipal Statutes Amending Act 2, at meetings held in Yellowknife on August 19-21, 1997. These meetings were ably chaired by our friend and colleague, the deputy chair of the Infrastructure Committee, Mr. Seamus Henry.
The amendments proposed in the bill will allow for an expanded range of lenders and financing options available to communities, whether they are tax based or not. Previously, the municipal authorities were restricted to borrowing from the governments and banks. Financing options in the past were limited to debentures. With the amendments in the bill, communities can obtain a more competitive arrangement from a wider range of financial institutions.
During our August meetings, we discussed our concerns with the Minister and officials from MACA in addition to representatives from the Department of Finance and the Department of Justice. Our concerns focused on issues relating to limits being placed on the types of projects that can be financed. The need to identify clearly established approval criteria for borrowing, the need for a definition of the term "land development", restrictions relating to the maximum length of the borrowing term, and methods of debt service by non-tax based communities.
This committee is highly concerned about the fact that there is no definition of development of municipal lands. We ask the government to consider adding a clear, and explicit definition and the government said it was their preference to have this matter dealt with by way of policy. We strongly urge the government to re-think their position and include such a definition in legislation to be introduced in the 5th Session, failing which we as a committee may consider bringing forward a private Member's bill.
During the public hearings the committee received a presentation by representatives of Arctic Financial Limited, outlining their support for the bill, and they also raised questions regarding the rate payer borrowing approval mechanisms outlined in the bill.
The committee conducted the clause by clause review of the bill on August 21st and agreed to report the bill back to the House for further consideration in this, the committee of the whole. Thank you, Mr. Chairman.
