Thank you, Mr. Chairman. Mr. Chairman, as in the committee report, we are very concerned that if the work that is being done to secure more funding with Ottawa, in the form or royalty revenue sharing, does not come through in the very near future, we are going to be facing some drastic situations when it comes to budgets and reductions.
I know the Finance Minister is very positive and upbeat regarding the discussions that are going on and I think it is a good thing in that sense. I think that we need to have a bit of shoulders when it comes to reality to really look at the situation.
I am aware departments will once again start working on budgets come late summer, in preparation for fall and work again in committees. If we do not have any new funding by that time, as the Minister stated in his opening comments, there is a further increase that includes over $2 million to cover the interest costs associated with increased borrowing needs.
Overall, this budget that is being put forward is one that leaves us in a cash deficit of over $28 million, and throwing that to our accumulated debt, we are running rather close to what is at times called the debt wall.
I do not like to be all that negative, but the fact is we are going to have one situation to deal with if new funding is not found.
The Minister has introduced the hotel tax to try to help on the tourism side, but the Northwest Territories on its own, our people in the North, is over 40,000. We do not have much room when it comes to taxes. The cost of living alone is eating away at people's budgets in the North, faster than increases can come along to offset those when it comes to employees.
I have used examples of my community, the cost of living that is going up, and I know the Minister and this department have to look at taxing options. Hopefully, that is a last resort. The funding we have received from that would have its own spin-off effects if taxes were to be increased.
Right now, even though there is talk of a lot of business, I know in my community, there is one group that owns the major hotels and they are fighting to stay alive. A loss of business would not help them right now. I have yet to have a real, in-depth discussion with him. It is something I will do over the summer.
With that, Mr. Chairman, I will leave some questions to detail as we go through it. Thank you.