Thank you, Mr. Speaker. Mr. Speaker, as a Member of the 13th Assembly, I found myself in an unfortunate situation going back to my constituents time and time again telling them, "Reductions. You will have to make do with less."
It seems, Mr. Speaker, that in the first year now of the 14th Assembly, our government is proposing taxes. We cut back, now we are going to tax. It seems like there is no other avenue. Meanwhile, we have strategies flying off here, there and everywhere in the Northwest Territories. That alone probably covers what the Minister is looking for in fees here.
Mr. Speaker, this tax has been flogged on the highways, byways, board rooms, back rooms and no doubt even in the boys' room. Mr. Speaker, the Minister himself stated this is a huge industry. It is developing and growing into an enormous potential and yes, the Northwest Territories holds a bright future in the area of tourism.
In fact, Mr. Speaker, I had an opportunity for a number of years to work in the tourism sector. I alone with my father and family operated Nuktigvik Tours. We did a river and fishing tour operation. I know in that market, it is competitive. If you could not match the lower price of your competitor, you were going to be squeezed out of the market.
Mr. Speaker, in Inuvik itself, we have had a number of concerns raised with the cost of living. The cost of hotels went up and there were rumours around town that they jumped up too much and so on and so forth. Now I must say that the hotel group in Inuvik has done a lot to rejuvenate the economic activity within the community, but there is only so far you can go before you hit the wall, as they say. I know the Minister is trying to stop from hitting the debt wall. As I see it, it is a band-aid solution.
If we are going to do comparisons, Mr. Speaker, we have to compare apples to apples or oranges to oranges. I think we have to look at how we are going to do things and how we are going to operate and how we are going to tell the people of the Northwest Territories we will work for their benefit. How will we show them that we support the tourism industry?
Again, if we compare ourselves with the Yukon, Mr. Speaker, they have a huge area in tourism. More than three times the amount we spend is what they spend in tourism, and the results show. They have a huge...the "rubber-tire market", as they call it, as well as those who fly in to Whitehorse in the Yukon...it is very good. We hold the same potential.
Mr. Speaker, what I found after working in the tourism industry when we had regional tourism bodies and the government of the day decided to pull them altogether and make one tourism association for the Northwest Territories, I saw the decline of tourism in my region.
We count on the "rubber-tire market" in Inuvik. The Dempster Highway is a vital link when it comes to tourism. Most of those people stay in campgrounds. So is that the next area we are going to look at to tax?
I have heard the Minister and another Member state that the Northwest Territories is not known. I must say we must have been doing something terribly wrong with the millions of dollars we spent in the area of tourism if nobody knows where the Northwest Territories is.
That is not a fact of just putting more money after it. It is what are we doing wrong? The idea of just putting more money into the pot does not work. I know, for example, I spoke with the Hotel Association in Inuvik along with bed and breakfast operators. They would support it on condition. However, from what I have heard from the Minister and what has been flying around about the hotel tax, there is nothing there that would meet those conditions as far as I can see to date.
We talk about getting the tourists here. Again, how will the hotel tax get the tourists here? In Inuvik, the rate for hotel rooms is equal to those at the Delta in Edmonton, Vancouver and so on. Can we do the same thing in the Northwest Territories, in Inuvik or in Yellowknife?
The potential is good but out of the $1.1 million that might be left to the department, how will it divide that up amongst hotel groups, amongst tourism operators, outfitters, the central tourism industry organization here in Yellowknife? How will you do that?
The fact is there has been too much information going back and forth that has not been concrete. Not concrete enough to get my support. We heard initially four or more rooms will be taxed. Then we heard a commitment saying no, all rooms will be taxed, bed and breakfasts included. Now the Minister today says we are looking at four rooms or more because of some by-law situation, especially here in the city.
Mr. Speaker, when we should be trying to be more competitive, this Minister seems to be proposing to push the costs up in the Northwest Territories. How are we going to sell ourselves to the rest of the jurisdictions, to the tourists who can travel in Alberta, British Columbia, Newfoundland, and tell them come North? We want to take an extra five percent out of your wallet when you stay in our rooms.
I believe Alberta has such a good market in their area because for one thing, they do not have a sales tax like other jurisdictions in Canada. I agree with the statement made earlier by Mr. Dent regarding the area of whether we follow other jurisdictions. It is like following friends. Not all the time do your friends have the best intentions or have all the knowledge. Just following somebody for the sake of following is not the wisest way of living.
The fact is, in the legislation the Minister talked about, there would be a sunset clause and if this does not work, we will get rid of it. I understand that in the bill, there is no sunset clause. I am sure when they said the payroll tax was being introduced, we will just try this and it only costs so many dollars to be administered. Payroll tax continues to exist and it costs much more than they anticipated. Is it worth a million dollars, Mr. Speaker, to tax our people? A million dollars divided between all the interests in tourism?
We have heard Mr. Krutko say that he had support from his community to have the tax administered in the community. I know the Department of Finance is having a difficult time with self-government. Self-governments are pushing for their own tax regime and this government is hanging onto the strings. So can we even do that to communities? I do not think that would be possible.
We know it is going to go into the general revenues of this government. How is it broken out from there? Who knows how it is going to happen? It is not concrete enough.
Initiative should be applauded by the Minister. He is lucky. He is trying, and I say within the Department of Resources, Wildlife and Economic Development, I know there are quite a number of strategies that are outlined for a number of years. Why do we continue with more strategies? Why do we not as a government say look, we have a serious problem here. Let us reduce some of this travel and conference industry that is supported by the Government of the Northwest Territories and put that money where it is needed, like the tourism groups.
This is piecemeal, Mr. Speaker, and we have to quit operating piecemeal. Let us put a solid plan together. Show us how this will really work. Do the homework and come back when it is ready. Right now as I see it, Mr. Speaker, this is not ready and I will not be supporting it. I will vote against this bill. Thank you, Mr. Speaker.
-- Applause