Thank you, Mr. Chairman. Mr. Chairman, the Standing Committee on Government Operations reviewed Bill 16, An Act to Amend the Income Tax Act, No. 2, at its meeting on May 27, 1998. The committee would like to thank the Minister of Finance and his staff for presenting the bill. Bill 16 would amend the Income Tax Act to establish an NWT Child Benefit. The bill also provides for the electronic filing of tax returns. The bill implements the NWT aspects of the National Child Benefit Program. This program restructures the existing National Child Tax Benefit and Working Income Supplement Program to take effect July, 1998. The program is a joint approach agreed to by the federal, provincial and territorial governments. Under the program the federal government will increase its benefits for low income families with children by $850 million. Provinces and territories will decrease their social assistance payments for families with children by the national
benefit amount, while ensuring that the overall income support is not reduced and the net savings and income support costs for the provinces and territories must be reinvested into programs and services for low income families. This must be used to reduce child poverty, increase attachment to the work force or reduce overlap and simplify administration. The NWT will provide monthly payments to families based on net family income and the number of children in the family. The NWT benefit will be administered by Revenue Canada and paid monthly with the federal benefit to the child's primary caregiver.
Mr. Chairman, the standing committee had no difficulty with Bill 16. However, committee Members may have additional comments or questions on this bill as we proceed. This concludes the standing committee's comments on Bill 16, An Act to Amend the Income Tax Act, No. 2. Thank you, Mr. Chairman.