Thank you, Mr. Chairman. The Report of the Standing Committee on Infrastructure on the Department of Finance.
The committee reviewed the options available to the Department of Finance to increase revenues to help pay for existing and proposed programs and services. In the Minister's opinion, increasing corporate income tax at this time would deter any new businesses from coming to the north and would be a hardship on existing businesses. The Minister also noted that most of the corporate income tax is paid by a small number of corporations and any increase would be borne largely by these few businesses.
The proposed Public/Private Partnerships (P3) initiative was discussed as one of the financing tools available to address capital infrastructure deficiencies. The committee is of the opinion that if the proposed P3 program is implemented efficiently, effectively and reasonably, it may address some of the infrastructure problems the government is confronting.
Committee Members discussed the current resource royalty tax regime, which is projected to provide little direct benefit by way of additional revenues from the pending diamond industry. The Minister indicated that the department is attempting to renegotiate the existing tax regime to develop a more appropriate royalty structure, particularly for the diamond industry.
Other creative options must also be considered. Committee Members are of the opinion, that since the diamond sector makes extensive use of the Northwest Territories infrastructure, the industry could contribute to its maintenance and development.
The committee recommended that the government examine additional revenue options such as a highway toll tax for commercial trucks involved in the mining industry, specifically, the diamond sector.
Mr. Chairman, on the Northwest Territories Child Benefit, the committee examined the proposed Northwest Territories Child Benefit, which would provide a tax credit to families based on the number of children, in proportion to their annual income.
The program would be administered by the federal government in conjunction with its National Child Benefit Program. The benefits would be mailed out to families in monthly payments. The committee recommends the adoption of the proposed Northwest Territories Child Benefit for low-income families.
On the formula financing, incremental and transitional costs for division, committee Members were concerned about the negotiations relating to the incremental and transitional costs for division. Issues such as severance pay and office leases, which are, in part, responsibilities of the Government of the Northwest Territories are of particular concern. These figures will be more clearly identified in the division transition document being prepared by the Nunavut Interim Commissioner.
The committee looks forward to receiving the Interim Commissioner's analysis of incremental and transitional costs of division.
Mr. Chairman, on the question of training positions for Nunavut, the committee noted that no Nunavut training positions are identified in the Department of Finance main estimates. Committee Members are aware of the Interim Commissioner's role in relation to staffing the new Nunavut government. However, there needs to be adequately trained staff in advance of division to fill positions in the new territory.
Therefore, the committee recommended that the Department of Finance consider taking steps to access the training funds available through the Nunavut Unified Human Resource Development Strategy, which provides funding for Nunavut training positions. That concludes the report, Mr. Chairman.