I would like to call the committee to order. We have a number of items to be dealt with. Bill 7, An Act to Amend the Education Act and the Property Assessment and Taxation Act; Bill 8, An Act to Amend the Property Assessment and Taxation Act; Bill 9, Supplementary Appropriations No. 2, 1998-99. What is the wish of the committee? Mr. Ootes.

Thank you. Do we agree that we will deal with Bill 7, 8 and 9 consecutively? Agreed?

Agreed.

Thank you. Mr. Todd, do you have any opening remarks?

Indeed I do, Mr. Chairman. Today I am introducing Bill 7, which amends the Education and Property Assessment and Taxation Act in order to restore the authority of the Minister of Finance to set education and property tax

rates in municipal taxation areas. It has been brought to our attention by the Department of Justice that the authority of the Minister of Finance to set education property tax rates in municipal taxation areas was inadvertently removed when the new Education Act and related amendments to the Property Assessment and Taxation Act were passed in 1996. Prior to the changes brought about by the 1996 Education Act, the Minister's authority to set education tax rates was established by Section 76 of the Property Assessment and Taxation Act. Under that provision, the Minister had the authority to set education mill rates where there is no board of education established in respect of the municipal taxation area. This meant that the Minister could set education mill rates in all NWT municipalities except Yellowknife, since Yellowknife was the only municipality that had its own boards of education.

In the new Education Act, boards of education became district education authorities. The Property Assessment and Taxation Act was then amended, so that all references to boards of education became district education authorities. However, the definition of district education authority in the new Education Act included other kinds of education bodies that did not have the power to receive money raised through local property taxes. Since the Minister's authority to set education tax rates in municipal taxation areas is limited to areas where there is no district education authority, his authority had effectively, though inadvertently, been removed.

The amendments I am introducing today would ensure the Minister's authority to set education mill rates is the same as it was prior to July 1996. The amendments include a provision in the Property Assessment and Taxation Act that would specifically state that the Minister may set education mill rates in municipalities where there is no education body that has been allocated the power to receive money collected from education property taxes. The amendments would be deemed to be effective as of July of 1996, by making the legislation retroactive we would be legalizing the 1997 and 1998 mill rates orders that have already been signed. Thank you, Mr. Chairman.

Thank you, Mr. Todd. Chairman of Government Operations, Mr. Erasmus.

Thank you, Mr. Chairman. On September 24, 1998, the Standing Committee on Government Operations reviewed Bill 7; An Act to Amend the Education Act and the Property Assessment and Taxation Act. The committee would like to thank the Minister of Finance and his officials for presenting the bill and responding to issues raised by the committee. Bill 7 would amend the Education Act and the Property Assessment and Taxation Act to correct an error when the Education Act came into force in 1996.

The new act inadvertently removed the authority of the Minister of Finance to set education property tax rates in municipal taxation areas. Before 1996, the Minister of Finance had the authority to set education mill rates in areas where there was no board of education. The new Education Act removed the term "board of education" and replaced it with new "district education authorities" and "divisional education

councils".

Both the former boards of education and other types of education bodies were continued as district education authorities. Under the new act, a district education authority may have the power to receive money raised through education property taxes, but only if that power is delegated to it by the Minister. If the authority does not have the power to receive money raised through education property taxes, it does not have the power to determine the amount that must be raised.

In these cases, it was intended that the Minister would continue to have this authority. This bill will correct errors and incorrect references in both acts and provide that the Minister will be able to establish an education mill rate for each property class in a municipal taxation area where there is no education body with the power to receive money raised through education property taxes.

These amendments would come into force retroactively, as of July 1, 1996, when the new Education Act came into force. The bill would also set the 1998 Iqaluit education mill rate and deem previous orders and regulations made under the act to have come into force July 1, 1996.

Mr. Chairman, committee members may have questions or comments on the bill as we proceed. This concludes the Standing Committee's comments on Bill 7; An Act to Amend the Education Act and the Property Assessment and Taxation Act. Thank you, Mr. Chairman.

Thank you, Mr. Erasmus. Before we get into general comments, I would like to offer the Minister an opportunity to bring in the witnesses, if the Minister so wishes.

Agreed? Thank you. Proceed.

Thank you. For the record, Mr. Minister, would you kindly, introduce your witnesses to the Committee.

Yes. Thank you, Mr. Chairman. On my immediate left is Ms. Rebecca Veinott, who is involved with the Justice Department, Legislation, and next to her, of course, is Mr. Munro, who is the Manager of the Taxation Department, and on my immediate right is Ms. Margaret Melhorn, who is the deputy minister of Finance. Thank you.

Thank you, and welcome to the committee. General comments.

Detail.

Detail. Clause-by-clause. Bill 7; An Act to Amend the Education Act and the Property Assessment and Taxation Act. Page 1. Education Act. Clause 1. Agreed?

Agreed.

Thank you. On page 3, Property

Assessment and Taxation Act. Clause 2. Agreed?

Agreed.

Thank you. On page 4, Miscellaneous. Clause 3. Agreed?

Agreed.

Thank you. Clause 4. Agreed?

Agreed.

Thank you. Clause 5. Agreed?

Agreed.

Thank you. Commencement. Clause 6. Agreed?

Thank you. Bill as a whole. Agreed? Does the committee agree that Bill 7 is ready for third reading?