Thank you, Mr. Chairman. I recommend that we proceed with Bill 13 and Bill 14, in that order.

Thank you, Mr. Dent. Does the committee agree?

Thank you. We will proceed in that order after we have taken a break. Thank you.

--Break

I call the committee to order. I would like to call on the Minister responsible for Bill 13 for consideration by the committee, we have Bill 13 and Bill 14 and we have agreed to proceed with Bill 13 first. I would like to call on the Minister responsible, on behalf of Mr. Todd, I would like to call on Mr. Dent to introduce the bill. Would you introduce the bill, Mr. Dent?

Mr. Chairman, I am introducing Bill 13, An Act To Amend the Financial Administration Act. This bill amends the Financial Administration Act in two ways: by permitting the Minister of Finance to invest surplus money in accordance with the regulations and policies established by the Financial Management Board, and by clarifying the definition of a Public Officer.

Sections 57 and 81 of the Financial Administration Act, which defines the securities eligible for investment by the government and by public agencies, makes reference to the federal Canadian and British Insurance Companies Act. This act was repealed in 1991 and, therefore, the reference is no longer appropriate.

Bill 13 amends the Financial Administration Act to outline the investments in securities, investments or loans which may be made by the Minister of Finance.

Currently, Mr. Chairman, subsections 57(1)(A) and (B) are very narrow in scope because reliance was placed on subsection 57(1)(C) for inclusion of all other acceptable investments. With the repeal of the federal Canadian and British Insurance Companies Act, section 57(1)(C) became meaningless and it is now necessary to amend each subsection to permit the Minister of Finance to invest surplus money in accordance with the regulations and policies established by the Financial Management Board.

However, these amendments, Mr. Chairman, do not broaden the range of investments permitted under the act but provide enhanced flexibility for the Department of Finance to invest the government's funds. The department has developed internal investment policies consistent with these guidelines and these policies are regularly reviewed by a departmental investment committee.

Mr. Chairman, Bill 13 also changes the definition of "Public Officer" from "individual" to "person". Since the legal definition of a "person" includes a corporation, this amendment will allow the Minister of Finance to appoint a corporate agent, such as a fund manager, to invest the government's money. This change will allow the government to access the broader and more sophisticated knowledge of fund managers expert in the investing business.

The investment powers and responsibilities of the act are delegated to the deputy minister of Finance by directive. The deputy minister is responsible for ensuring prudent investment and management of government funds. Thank you, Mr. Chairman.

Thank you, Mr. Dent. I would like to call on the Member for Hay River, Ms. Groenewegen, on behalf of the Infrastructure Committee for the committee's comments on the bill.

The Standing Committee on Infrastructure reviewed Bill 13, An Act to amend the Financial Administration Act, on March 23, 1998.

The committee would like to thank the Minister of Finance and his officials for presenting the bill. The bill will amend the Financial Administration Act to expand the definition of a public officer to include a person acting as an agent of the government, authorize the investment of funds in the consolidated revenue fund and money belonging to public agencies in specified classes of investment, add a regulation-making power respecting the investment of money by the government and public agencies, and finally, permit the Workers' Compensation Board to invest in any securities and investments that it deems to be prudent.

The committee expressed concern that the amendment would not ensure investments meet conventional standards of creditworthiness. The Minister assured the committee that the amendments would provide the necessary regulation-making ability to set prudent and comfortable standards of investment guidelines.

Finally, the committee was concerned as to why an amendment was required now when the investment guidelines under the Canadian and British Insurance Companies Act expired in 1991. The Minister replied that the government's investment guidelines need to be established to ensure a greater degree of clarity and accountability.

Mr. Chairman, following the committee's review, a motion was carried to report Bill 13, An Act to Amend the Financial Administration Act, to the Assembly as ready for the committee of the whole. Additional comments or questions of Members may be posed as we proceed. Thank you, Mr. Chairman.

Thank you, Mrs. Groenewegen. On behalf of the committee, I offer the Minister the opportunity to bring in witnesses if he wishes.

Yes, Mr. Chairman, if you please.

Is it agreed that the Minister will bring in witnesses?

Thank you. Sergeant-at-Arms, bring in the witnesses, please. I call on the Minister to introduce the witnesses.

Thank you, Mr. Chairman. On my right I have Ms. Margaret Melhorn who is the deputy minister of the Department of Finance. On my left is Mr. Douglas Doak who is the Director of the treasury.

Thank you. We will now proceed clause by clause in review of Bill 13. I have Bill 13, an Act to Amend the Financial Administration Act. Agreed?

Thank you. On page 1, Clause 1. Agreed?

Thank you. Clause 2. Agreed?

Thank you. Clause 3. Agreed?

Thank you. On page 2, we have Clause 4. Agreed?

Thank you. Page 3; Clause 5. Agreed?

Thank you. Clause 6. Agreed?

Thank you. Clause 7 of Bill 13. Agreed?

Thank you. The bill as a whole. Agreed?

Thank you. Does the committee agree that Bill 13 is ready for third reading? Agreed?

Bill 13 is now ready for third reading. I thank the Minister and his witnesses.

Thank you.

We can now proceed to the next item on the agenda which is Bill 14, An Act to amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act. Mr. Henry.

Thank you, Mr. Henry. It is noted. I will call on the Minister responsible for the bill and, again, I will ask Mr. Dent, on behalf of the Minister of Finance, Mr. Todd, if he will introduce the bill.

Thank you, Mr. Chairman. As you have noted, on behalf of Mr. Todd, I am introducing today Bill 14, An Act to Amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act.

Mr. Chairman, this bill amends the Risk Capital Investment Tax Credits Act to allow the government to charge fees to companies registering under the act and to provide for the setting of those fees by regulations. This bill also amends the act to retroactively deem the act and the regulations made under the act to have come into force on the date the act was given assent, September 25, 1998.

In addition, this bill amends the Income Tax Act to give retroactive effect to a provision of that act respecting the investment tax credits established under the Risk Capital Investment Tax Credits Act. These changes correct two problems with the Risk Capital Investment Tax Credits Act which were not identified until the program's implementation.

Mr. Chairman, when the regulations were being drafted for the Risk Capital Investment Tax Credit Act, it was determined that the act inadvertently did not allow for fees to be charged for many of the services provided to companies registering under the act. This bill amends that act to allow for fees to be set by regulations for services provided under the act. When the program was introduced in the 1998-99 budget, it was announced that there would be fees to recover the cost of these services.

The original act was proclaimed on September 25, but the order bringing it into force was not signed until February 11, 1999. The details of the program administration had to be known prior to the act being brought into force. The amendment being introduced provides that the act came into force on September 25, in order to allow for tax credits for the 1998 tax year, as was originally intended, and announced in the 1998 budget. Thank you, Mr. Chairman.

Thank you, Mr. Dent. Could I again call on Mrs. Groenewegen, the Member for Hay River, on behalf of the Standing Committee on Infrastructure to present the committee's comments on the bill?

Thank you, Mr. Chairman.

The Standing Committee on Infrastructure reviewed Bill 14, An Act to Amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act, on March 23, 1999. The committee would like to thank the Minister of Finance and his officials for presenting the bill.

The amendment amends the Risk Capital Investment Tax Credits Act to allow the government to charge fees to companies registering under the act and to provide for the setting of those fees by regulation. The amendment will also amend the act to retroactively deem the act and the regulations made under the act to have come into force on the date the act was given assent, September 25, 1998. Finally, the act amends the Income Tax Act to give retroactive effect to a provision of that act respecting the investment tax credits established under the Risk Capital Investment Tax Credits Act. This amendment will allow tax credits for the 1998 tax year, as was originally intended.

Mr. Chairman, following the committee's review, a motion was carried to report Bill 14, An Act to Amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act to the Assembly as ready for the committee of the whole. Additional comments or questions of the Members may be posed as we proceed. Thank you, Mr. Chairman.

Thank you, Mrs. Groenewegen. I will offer the Minister the opportunity to bring in witnesses if he wishes. Mr. Minister.

Thank you, Mr. Chairman. I would like to keep Ms. Melhorn here and add another witness or two with the committee's agreement, please.

Thank you, Mr. Dent. Does the committee agree we can have more witnesses? Agreed?

You may proceed, Mr. Minister. Could I have the Minister introduce his witness?

Thank you, Mr. Chairman. We have

been joined, on my left, by Mr. John Monroe, who is the manager of Tax Policy.

Thank you, Mr. Dent. Welcome to the committee. I open the floor to general comments on the bill. Any general comments on the bill? Is the committee prepared to proceed clause by clause? Agreed?

We will now proceed clause by clause with bill 14. Cover sheet, Bill 14, an Act to Amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act. Agreed?

Thank you. On page 1 of bill 14, clause 1. Agreed?

Clause 2. Agreed?

Thank you. Page 2, clause 3. Agreed?

The bill as a whole. Agreed?

Thank you. Does the committee agree that bill 14 is ready for third reading? Agreed?

Thank you. Bill 14 is now ready for third reading, and I thank the Minister and his witnesses. Since that deals with all the items in our agenda, I will now rise and report progress.