Thank you, Mr. Chairman. I would like to add another voice onto the issue of the hotel tax and try to highlight some issues that are not, hopefully, a repetition of what the Members for Frame Lake and Yellowknife South have mentioned already.
With respect to the study, the consultants report the Minister mentioned, I would like to get a copy of that and know who did it.
Also, the information item we have here, a lot of it is based on Stats Canada statistics, which I understand because we cannot always have all the studies. However, I know for a fact, I live here in Yellowknife and I talk to the hotel operators and I have given a lot of thought about what this tax means.
I understand that there are hotel taxes when we travel all over the world or even every other city in Canada. But we are not Vancouver. We are not Toronto. We are not Edmonton. We are Yellowknife and the Northwest Territories. We do not have a conference industry. We have a fledgling tourism industry that needs a lot of support. I am not sure that this should be something that we should be adding on at the moment. What I am worried about is this tax base is so tiny. We have such a tiny population already and we have so few tourism operators from whom we are going to collect this tax. I am worried about the burden we place on these operators.
For example, the owner of the Igloo Inn told me that a five percent tax would constitute all of the money he spends on his utility bills. It comes right out of their pockets. What is so strange about this tax, what is irrational about it, is a government that has an $800 million budget has to go and institute a new tax to collect, in my view at best, about $800,000.
The Department of Resources, Wildlife and Economic Development budget is almost, I believe, $75 million. If the department and the Minister are really committed to the tourism industry, and I know he is, I have heard his election platform, then I think that he should understand that all the Yellowknife MLAs are committed to a tourism strategy. We are talking about how we can help them.
The concern I have is that we are imposing this paper burden and operational burden on a small operator, especially the little bed and breakfasts, without a plan, without a commitment shown by the government. For the government in the fiscal position that it is in, it is in a deficit position, it has not come forward with any cost cutting measures first.
The department has not volunteered to take one percent out of the Department of Resources, Wildlife and Economic Development's budget to come up with a plan as to where the money for this tax would be spent. Talking to the tourism operators I understand that they are desperate for money. They are willing to bite this pill, if they could be guaranteed that they will get the kind of attention that they desire.
It seems like it is a carrot that is hung in front of them. To say, "Well if you go with this tax you are going to get the money." the Minister has made no commitment whatsoever in this House that he is interested in direct taxation so that there is an absolute 100 percent guarantee that the money will go to tourism operators.
I know that he replies to that by saying that he is committed, "I said that I am going to do it." I think that we need to see more than that.
The fad words by all Ministers lately are Regional Capacity Building. The Minister of Aboriginal Affairs has mentioned that a few times. He mentioned that in Fort Simpson. He mentioned that in his capacity as Minister of Municipal and Community Affairs. The word is mentioned in the Intergovernmental Affairs Forum and this Minister has mentioned regional capacity. That is one of the two prongs that he is going to practice in terms of a tourism strategy. But what does it mean? We have not had, as a Member, as an Assembly, any discussion about what that means. What does it mean in the tourism context? I have no idea.
I would think that if the Minister is really committed to the tourism industry, as I know he is, and if he is really committed that the only way that he could address the tourism industry is by taxing them, the least he could do is find the money within to come up with a plan that shows what the need is and where the tax would fit in. This is cart before the horse. This was a total surprise attack.
Another thing with the consultation that I have a problem with is what he means by consultation. He says he is going to implement this tax and he is not prepared to do direct taxation. He already says that he knows what he needs in the tourism industry. So what I see from this consultation is that I am just going to sell this ideal. I am going to convince everybody within the next six months that this is what is good for them. I have a real problem with the notion of consultation in that way. Thank you.