Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Finance's 2000-2001 main estimates to the committee. The Department of Finance, for the most part, provides support to the executive branch and to program departments, rather than delivering programs and services directly to the public. However, the department, through its responsibilities for revenue generation and management and information gathering and dissemination, plays an important part in ensuring the government is able to deliver the programs and to make the informed decisions necessary to achieve its broader goals.
In 2000-2001, Mr. Chairman, the Department of Finance will continue to focus on three key goals, goals which are consistent with the vision laid out by the 14th Assembly in Towards A Better Tomorrow.
The first goal is that the fiscal regime of the Northwest Territories supports a stable political regime and a strong economy. Therefore, this fiscal year, the department will be addressing key issues such as:
•the adequacy of federal-territorial funding under both the formula financing agreement and other intergovernmental transfer arrangements;
•resource revenue sharing and devolution;
•the fiscal and economic impacts of non-renewable resource development;
•the financing of aboriginal self-government; and
•tax policy options and tax collection.
In addition, the department will be working to ensure that the government is able to secure appropriate and affordable debt financing and that government assets are appropriately insured.
The department's second goal is that the government has the fiscal and statistical information and analysis needed to support policy development and decision-making, particularly for key social and economic initiatives. Mr. Chairman, information is among an organization's most important resources. In order to properly address some of our largest challenges, we need information about our people, our social conditions, our economy, our fiscal situation and so on. We need to know where we are and whether we are making progress toward our goals.
The focus of the Department of Finance will be on ensuring that, as a government, we have good quality information that can shed light on our decision-making.
The third goal of the department is to be more responsive to client needs. The Department of Finance has many clients and endeavours to be responsive to all needs. In fact, in establishing its goals and strategies, the department has focused on the requirements of the government, including other departments, to achieve the vision of the Legislative Assembly. With respect to this particular goal, the department has focused on strategies to support efforts to promote the responsible use of liquor products.
In order to achieve these goals, the Department of Finance is requesting approval for a budget of $9,797,000 for the fiscal year 2000-2001. With five exceptions, the department's overall budget will remain unchanged from 1999-2000.
The major area of growth is that of interest costs. This budget includes an increase of $2,454,000 to cover the interest costs associated with increased borrowing. The budget also includes increases of $138,000 to fund increased property and liability insurance premiums and $167,000 to cover the additional cost of the federal government's changes to the Public Service Superannuation Act.
In total, the department has identified growth requirements of $2,759,000.
Offsetting these increases was a decrease of $1,120,000, reflecting the expiry of the 1999-2000 supplementary appropriation for interest costs and a decrease of $75,000 reflecting the end of the funding for the 1999 NWT labour force survey.
As I mentioned in the Budget Address, I am proposing a five percent tax on occupancy charges in commercial accommodation facilities with four or more rooms, effective April 1, 2001. If this tax is approved, the Department of Finance will be coming forward in the next business plan to implement the tax for inclusion in the 2001-2002 budget.
The Department of Finance has no capital budget, so is requesting no capital funding.
Mr. Chairman, I would be pleased to respond to any questions the committee may have.