Thank you, Mr. Speaker. The way the government proposed it, would this fund cost this government any money?

Mr. Antoine.

Thank you, Mr. Speaker. My understanding of this arrangement is that it will not cost this government any more money than we are currently involved, which is very minimal. It will not have any effect on us.

Oral questions. Supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. Yesterday I heard this fund being classified as a subsidy. Would it be more appropriate to say that it is actually a rate that those companies would pay to access NorthwesTel's current system? Thank you.

Mr. Antoine.

That is right. It is not really proposed now as a subsidy but actually an assistance to any competing telecommunication service provider in the north to assure that reasonable service costs are available to other remote high-cost areas. It is not really a subsidy but sort of an assistance that will be provided to whichever telecommunications service provider who is successful in providing the service.

Oral questions. Final supplementary, Mr. Erasmus.

Thank you, Mr. Speaker. Could the Minister indicate when and where the CRTC hearings will be, so that people may participate? Thank you.

Mr. Antoine.

Thank you, Mr. Speaker. Mr. Speaker, there was a hearing in Whitehorse this last couple of days and there is another hearing set for Iqaluit, I believe for June 25th, and I believe that is the next one. Thank you.

Thank you. Question period is over. Item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Item 11, reports of standing and special committees. Item 12, reports of committees on the review of bills. Mr. Enuaraq.

Thank you, Mr. Speaker. I wish to report to the Legislative Assembly that the Standing Committee on Social Programs has reviewed Bill 17, An Act to Amend the Territorial Court Act and the Justices of the Peace Act and wishes to report that Bill 17 is now ready for further consideration of the Committee of the Whole.

Mr. Speaker, I seek unanimous consent to waive rule 70(5) and have Bill 17 ordered into the Committee of the Whole today.

The Member for Baffin Central is seeking unanimous consent to waive rule 70(5). Do I have any nays? There are no nays. Mr. Enuaraq, you have unanimous consent. Bill 17 will be ordered into the Committee of the Whole for today. Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motions for first reading of bills. Item 16, motions. Item 17, first reading of bills. Item 18, second reading of bills. Item 19, consideration in committee of the whole of bills and other matters. Bill 16, An Act to Amend the Income Tax Act, No .2, and Bill 17, An Act to Amend the Territorial Court Act, with Mr. Ningark in the Chair.

I call the committee to order. We have two bills here. Bill 16 and Bill 17. What is the wish of the committee? Mr. Ootes.

Agreed.

Thank you. Do I have the concurrence of the committee that we will deal with Bill 16 and subsequently Bill 17. Agreed?

Agreed.

Thank you. We will take a 15-minute break.

--Break

I would like to call the committee back to order. We have two items on the table. One is Bill 16, An Act to Amend the Income Tax Act, No. 2, and Bill 17, Territorial Court Act. We will proceed as agreed to, with Bill 16. Mr. Todd, do you have any opening remarks?

Thank you, Mr. Chairman. Mr. Chairman, this legislation will amend the Northwest Territories Income Tax Act to allow the Government of the Northwest Territories to implement the NWT Child Benefit, an initiative I announced in the budget address in January.

The NWT Child Benefit is the GNWT's contribution to the National Child Benefit Program. This is a joint effort by the federal, provincial and territorial governments to reduce child poverty in Canada.

We know that child poverty can have many unfortunate consequences, poor nutrition, mental and physical health problems, difficulties with the law, poor school performance, and ultimately, fewer job opportunities in later life.

This legislation will provide a benefit of at least $330 per child for all NWT families with net incomes of $20,921 or less. In addition, families with working income of $3,750 or more will receive an additional territorial worker's supplement. The supplement will be phased in so that the maximum benefit becomes available when working income reaches $10,000. The maximum amount will be $275 for the first child and $75 for the second child.

The maximum annual NWT Child Benefit, including the supplement, will be $605 for a one child family, $1,010 for a two-child family, and $1,340 for a three-child family. The benefit will begin to be phased out when the family net income reaches $20,921. The income level at which it would be eliminated for any individual family will depend on the number of children in the family. We estimate that about 60 percent of the NWT children will receive some benefit under this program.

The NWT Child Benefit will not be offset by lower social assistance payments. Starting this July, the federal government will be increasing the federal child benefit for low income families. Under the agreement reached between the federal government, the provinces and territories, the increased portion of the federal benefit must be treated as income for social assistance purposes. The provinces and territories must reinvest the savings in programs aimed at reducing child poverty. We have chosen not only to reinvest our estimated savings of $2.2 million in the NWT Child Benefit Program, but also to inject an additional $2 million annually into the program.

This program will reduce the disincentive for families on social assistance to earn wage income, since this portion of their income will not be reduced. In addition, the territorial worker's supplement provides an actual incentive to enter the work force, in order to receive the additional benefits.

The NWT benefit will be administered by Revenue Canada and delivered monthly together with the federal child benefit in a single cheque. The two amounts will be shown separately for information purposes.

If legislation is passed by June 30, 1998, the first payment will be issued on July 20, 1998.

The benefit will be paid to the children's primary care giver, the same parent receiving the federal child benefit. Usually, this is the mother.

In most cases, there will be no need for families to apply for the benefit. Families will be automatically considered for benefits if they have filed income tax returns as NWT residents. An application will be required following the birth or adoption of a child.

This legislation will result in low-income families being better able to meet their children's basic needs. In addition, low-income families will have an incentive to enter the work force if employment is available.

Finally, Mr. Chairman, this amendment to the NWT Income Tax Act also allows for the electronic filing of tax returns. This part of the amendment will not affect the administration of the act in practice, since Revenue Canada has accepted electronic returns from NWT residents for several years.

Thank you, Mr. Chairman.

Thank you, Mr. Todd. A chairman or a designate of the standing committee which reviewed the bill will make opening remarks. I believe it is Mr. Erasmus.

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.