I will call committee of the whole to order. We have a number of issues to consider in committee. What is the wish of the committee? Mr. Dent.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
In the Legislative Assembly on October 30th, 2001. See this topic in context.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Page 531
Charles Dent Frame Lake
Thank you, Mr. Chairman. Mr. Chairman, I would like to recommend we consider Bills 5, 7 and 13, in that order.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
October 29th, 2001
Page 531
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 531
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 531
The Chair Paul Delorey
We will take a short break and come back and consider Bills 5, 7 and 13.
-- Break
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 531
The Chair David Krutko
I would like to call the committee of the whole back to order. We are dealing with Bill 5, An Act to Amend the Education Act. At this time, I would like to ask the Minister responsible for the act if he has any opening comments introducing the bill. Mr. Minister.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 531
Jake Ootes Yellowknife Centre
Thank you, Mr. Chairman. The Education Act, implemented in 1996, establishes district education authorities and divisional education councils as governing bodies for education in communities and education divisions. The act allows the Minister to allocate various powers and duties to these governing bodies.
An oversight in the act has resulted in the Minister being able to allocate the power to education bodies to acquire both personal property and lands and buildings, but not the power to dispose of it.
This matter was brought to my attention by Yellowknife District No. 1 Education Authority. They were not able to register a transfer of land at the land titles registry because the power for them to dispose of lands and buildings could not be found in the act.
Mr. Chairman, the bill under consideration will correct this oversight by adding a power to dispose of personal property and a power to dispose of lands and buildings to the powers the Minister can allocate to education bodies.
Since the lands and buildings owned by the education bodies include schools, the bill requires written approval of the Minister before the education body can dispose of lands or buildings. This will allow me to ensure that adequate facilities for the delivery of education are maintained.
Mr. Chairman, the bringing into force of this bill to amend the Education Act will allow education bodies to dispose of property when necessary for the effective management of education in their jurisdictions.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 531
The Chair David Krutko
Thank you, Mr. Minister. At this time, I will ask the committee responsible for reviewing this bill, the Standing Committee on Social Programs, if they have any comments. Mr. Miltenberger.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. Mr. Chairman, the Standing Committee on Social Programs reviewed Bill 5, An Act to Amend the Education Act, at its meeting on October 17, 2001.
Members would like to thank the Honourable Jake Ootes, Minister of Education, Culture and Employment and his officials who appeared before the committee during the public review of this bill.
Bill 5 will provide to an education body the power to dispose of personal property held by the education body and, subject to the approval of the Minister, the power to dispose of real property held by the education body. At present, while education bodies have the power to acquire such property, they do not have the power to dispose of it. This legislation will correct that oversight.
Because schools and other facilities are located on or form part of real property, the approval of the Minister would be required so that no facility is inappropriately transferred or disposed of.
This concludes the Standing Committee's comments on Bill 5, An Act to Amend the Education Act. Thank you, Mr. Chairman.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
The Chair David Krutko
Thank you, Mr. Miltenberger. At this time, I would like to ask the Minister if he will be bringing in any witnesses.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Jake Ootes Yellowknife Centre
Yes, Mr. Chairman, I would like to bring in several witnesses and I will join them at the witness table.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
The Chair David Krutko
Thank you, Mr. Minister. Does the committee agree that the Minister bring in his witnesses?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
The Chair David Krutko
Sergeant-at-Arms, could you escort the witnesses in? Mr. Minister, for the record, would you please introduce your witnesses?
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Jake Ootes Yellowknife Centre
Thank you, Mr. Chairman. With me on my right is Diane Buckland, legislative counsel with the Department of Justice. On my left is Janet Grinsted. Janet is the senior policy advisor on legislation. Thank you.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
The Chair David Krutko
Thank you, Mr. Minister. Welcome, witnesses. General comments on Bill 5? Detail? Agreed?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
The Chair David Krutko
Bill 5 is now ready for third reading. Thank you, Mr. Minister. Thank you, witnesses.
I will call the committee to order. We are going to be dealing with Bill 7, Powers of Attorney Act. At this time I would like to ask the Minister responsible for this bill if he has any general comments to the bill? Minister Antoine.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 532
Jim Antoine Nahendeh
Thank you, Mr. Chairman. I am pleased to present Bill 7, Powers of Attorney Act, for your consideration.
A power of attorney allows a person to appoint someone else to handle his or her financial affairs. At the present time, if a person becomes mentally incapable, any power of attorney that they may have signed becomes void. Their family must make an application to the court under the Guardianship and Trusteeship Act to become trustee. This is a complex and costly process.
This bill will allow powers of attorney to include a provision that the power of attorney can either continue in force if the person who signed it becomes incapable, in which case it is called an enduring power of attorney, or spring into force at the time the person who signed it becomes incapable, in which case it is called a springing power of attorney.
Some of the features of this bill are:
- • It provides for the "grandfathering" of powers of attorney, which were signed before the coming into force of this legislation;
- • It allows a person to designate one or more persons who can decide if they have become mentally incapable;
- • It allows a person to designate someone to review the transactions handled by the attorney;
- • It states the basic requirements for a valid power of attorney;
- • It states the criteria for determining if a person is mentally capable of making a power of attorney; and
- • It provides that a copy of the power of attorney may be filed in the office of the public trustee.
In drafting this bill, we have had the opportunity to review the legislation that has been enacted in Canada over the last few years and to adopt the best features of that legislation in a manner which we believe will benefit Northerners. This bill is strongly supported by the Northwest Territories Seniors' Society, which has been consulted and had input into the bill.
Mr. Chairman, thank you for the opportunity to describe this bill. I will be pleased to answer any questions from committee members.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
The Chair David Krutko
Thank you, Mr. Minister. At this time I would like to ask the committee responsible for reviewing the bill if they have any general comments in regard to the bill. Mr. Miltenberger.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. The Standing Committee on Social Programs reviewed Bill 7, Powers of Attorney Act, at its meeting on October 17, 2001.
The committee would like to thank the Honourable Jake Ootes, who appeared before the committee on behalf of the Minister of Justice. The committee would also like to thank the Department of Justice officials for presenting the bill and responding to issues raised by the committee.
Bill 7 extends the legal scope of powers of attorney to provide a person with greater ability to plan for the management of his or her financial affairs in the event of certain contingencies such as his or her mental incapacity. As a result, this new act will reduce the necessity for legal proceedings relating to trusteeship orders.
The committee also heard from Theresa Crane, a resident of Yellowknife, who spoke in strong support of this important piece of legislation.
Mr. Chair, committee members may have questions or comments on the bill as we proceed. This concludes the standing committee's comments on Bill 7, Powers of Attorney Act. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
The Chair David Krutko
Thank you, Mr. Miltenberger. At this time I would like to ask the Minister if he would like to bring in any witnesses. Mr. Minister.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Jim Antoine Nahendeh
Yes.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
The Chair David Krutko
Agreed. Sergeant-at-Arms, could you escort the witnesses in? For the record, Mr. Minister, could you introduce your witnesses, please?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Jim Antoine Nahendeh
Thank you, Mr. Chairman. Mr. Chairman, to my right I have Mr. Mark Aitken, legislative counsel with the Department of Justice. To my left I have Larry Pontus, the public trustee. Thank you.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
The Chair David Krutko
Thank you, Mr. Minister. Welcome witnesses. General comments on Bill 7? Mr. Braden.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Bill Braden Great Slave
Thank you, Mr. Chairman. Very briefly, I will be speaking in favour of the bill. It is something that I have become more familiar with through constituents' appeals on this kind of legislation, and I commend the government for bringing it forward. It is as short and simple as that, Mr. Chair. It is good work and I support the initiative. Thank you.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. As we have heard the Minister introduce his bill and the committee speak to it, it sounds like this is a necessary procedure and act to implement to ensure that, as we have heard, the seniors of the Northwest Territories have a less cumbersome way of dealing with their belongings as things would progress when it comes to age and how they can deal with these matters, so I think it is a good thing. I just would like to know and ensure that, in fact, when we implement this act and pass this, that we are not on the other hand going to make it so cumbersome or so complicated that it would be difficult to follow the process.
I would just like to be assured that, as we implement this, that for those who are going to help and stand in for those that become incapable of handling their own affairs, it will not be so restrictive or become such a problem that it would make it difficult for, for example, family members who could take over some of the matters of finances and other things that require a person to make whenever they become incapable. Nowadays family members do sort of help out elders in situations like this, and I just want to ensure, and have the Minister state for the record, that as they take on these responsibilities through this process it will not be so much that the law would kick in that would put them in a position where it makes it restrictive for them to act on behalf of their own family members. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Sandy Lee Range Lake
Thank you, Mr. Chairman. Just for the record, I would like to express my support for this legislation. I think it is one that is overdue and is something that is very necessary for the benefit of those who for any reason become incapable of taking care of their affairs. I would like to commend the department and the Minister for bringing this forward, and the committee for putting it through. Thank you, Mr. Chairman.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Jim Antoine Nahendeh
Thank you, Mr. Chairman. If I could, I would like to respond to the honourable Member, Floyd Roland, who asked for some reassurance from myself as the Minister responsible for this legislation. Through the office of the public trustee, Larry Pontus, we will be developing an information package. We will put together a modeling of how this legislation will actually be enforced. With the help of the NWT Seniors' Society, we will make sure that we try to accommodate the family members who, up to this point in time in many cases that I am aware of, have been involved with their seniors. That is going to be taken into consideration.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
The Chair David Krutko
Thank you for that information, Mr. Minister. General comments? Clause by clause? Agreed?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 533
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
Some Hon. Members
Agreed.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 534
The Chair David Krutko
Bill 7 is now ready for third reading. I would like to thank the Minister and his witnesses. Thank you. As agreed, we will now deal with Bill 13, An Act to Amend the Income Tax Act. At this time, I would like to ask the Minister responsible for introducing the bill if he has any general comments. Mr. Handley.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Joe Handley Weledeh
Thank you, Mr. Chairman. Thank you for the opportunity to present Bill 13, An Act to Amend the Income Tax Act, No. 2, to the committee.
In February 2001, I announced in the budget address that effective with the 2003 tax year, the GNWT intended to change its personal income tax regime from one based on tax on tax to one based on tax on income. Tax on income refers to the fact that territorial tax will be calculated as a percentage of taxable income, rather than as a percentage of basic federal taxes, as is now the case.
As the Members are aware, we have proposed that the time frame for implementation of tax on income be accelerated to 2001. As of the 2001 tax year, all provincial governments will have moved to tax on income. The federal government, for reasons of harmonization of the national tax system and administrative simplicity, would like the entire country to use one system. The three territories have thus announced they will be working towards moving to tax on income for the 2001 taxation year.
When I met with the Honourable Paul Martin, Minister of Finance for Canada, last March, he specifically requested that the Northwest Territories move to tax on income effective 2001.
Recognizing the strain such a move would place on our resources, he offered to provide the necessary technical assistance and to reimburse us for our transition costs if we move to tax on income in 2001.
This bill was drafted with substantial technical assistance from Finance Canada. In allowing us to structure our own tax brackets, rates and tax credits, moving to tax on income will give the GNWT more flexibility to design our own tax system to meet the needs of northern residents.
However, many of the characteristics of the existing system will not change. We will continue to use the federal definition of taxable income. The Canada Customs and Revenue Agency will still administer our income tax and NWT residents will still file only one income tax return.
In June when I advised the Legislative Assembly of the government's intention to change to tax on income in 2001, I made several commitments:
- The change to tax on income will simply convert existing personal income tax rates. Individuals will pay no more tax in 2001 than they would under the current system. This legislation before the Assembly reflects this commitment.
- If the federal government lowers its tax rates for 2002, I will bring forward the legislation necessary to amend GNWT tax rates so that NWT residents pay no more tax than they would under the current tax on tax system.
- I also committed to establishing a Minister's Advisory Committee directed to consider options available to us under the new system and to come forward with recommendations for change by this fall. The committee has been working since May 1, and I anticipate being able to review its recommendations with Members before the 2002 budget.
We have also communicated with NWT residents to explain the change to tax on income. This summer, the Department of Finance distributed pamphlets explaining the change to all NWT households.
I believe this bill represents a change that is in the best interests of NWT residents. Moving to tax on income will give us more flexibility to design a made-in-the-Northwest Territories tax system.
Mr. Chairman, some minor technical amendments to the bill are proposed. These amendments will:
- Correct references in the act to definitions, whose section numbers have been changed by the amendment in the NWT Income Tax Act.
- Allow a credit of 45 percent of the federal credit for individuals with severe and prolonged physical or mental impairment to be transferred from an individual outside the Northwest Territories.
- Allow a credit of 45 percent of the federal credit to be transferred to a relative in the Northwest Territories by a student who is a resident of another province or territory.
- Ensure that mutual fund trusts receive a refund of NWT tax in the amount of 45 percent of the federal tax refunded on capital gains under Section 132 of the federal act.
- Correct wording in the French version.
Mr. Chairman, these amendments are necessary to ensure that all taxpayers in the Northwest Territories pay the same NWT tax under tax on income as they would under the old tax on tax system. Thank you, Mr. Chairman.
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The Chair David Krutko
Thank you, Mr. Minister. At this time, I would like to ask the standing committee responsible for reviewing this bill if they have any comments. Mr. Dent.
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Charles Dent Frame Lake
Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight conducted a public review of Bill 13, An Act to Amend the Income Tax Act, No. 2, on Monday, September 10, 2001.
The committee would like to thank the Minister of Finance and his officials for presenting the bill. The bill will change the income tax system in the Northwest Territories from one that calculates income tax on the amount of federal tax payable to a system that calculates income tax on the amount of taxable income.
This bill also makes technical changes to the territorial Income Tax Act to clarify the language and to update references to the federal Income Tax Act.
During discussions on the bill, the committee expressed concerns that the amendments will result in:
- • an increase in the amount of income tax payable;
- • a decrease in the level of NWT tax credits; and
- • a more complex tax filing exercise from the current tax system.
The Minister advised the committee that the proposed change to tax on income would simply convert existing personal income tax rates. Individuals will pay no more tax in the 2001 tax year than they would under the current tax system. The committee expressed concerns that although our territorial tax rates may remain the same, our territorial tax credits may not.
The department assured the committee that people will be entitled to the same tax credits available under the current system. The only change to our territorial tax credits is an increase to our northern cost of living tax credit, which was approved earlier by this Legislative Assembly.
The committee also observed that under the proposed tax system, it may be more complex for tax filers to complete an income tax return. The Minister replied that the proposed tax system would result in a different calculation, but it is not any more complex and may be simpler to use than the current system.
Bill 13 was amended in standing committee to renumber two French sections of the bill. As well, clause 4 of the bill was amended by striking out "on the last day of taxation" in that portion of the English version of the proposed subsection 2.3(4), preceding paragraph (a) and by substituting "on the last day of the taxation year."
Mr. Chairman, following the committee's review, a motion was carried to report Bill 13, An Act to Amend the Income Tax Act, No. 2, to the Assembly as ready for committee of the whole as amended and reprinted. Additional comments or questions of the Members may be posed as we proceed. Thank you, Mr. Chairman.
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The Chair David Krutko
Thank you, Mr. Dent. At this time, I would like to ask the Minister if he will be bringing in any witnesses.
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Some Hon. Members
Agreed.
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The Chair David Krutko
Sergeant-at-Arms, can you escort the witnesses in? Mr. Minister, for the record, could you introduce your witnesses, please?
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Joe Handley Weledeh
Thank you, Mr. Chairman. Mr. Chairman, with me are Ms. Margaret Melhorn, deputy minister of Finance; Mr. Pawan Chugh, mmmanager of tax policy, Department of Finance; and Ms. Diane Buckland, legislative counsel with the Department of Justice. Thank you.
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The Chair David Krutko
Thank you, Mr. Minister. Welcome, witnesses. General comments. Are there any general comments on Bill 13? Clause by clause?
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Some Hon. Members
Agreed.
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Bill Braden Great Slave
Thank you, Mr. Chairman. I will be voting in support of the Bill. There is one area that may have been covered in committee, but I think it is something that I would like to bring out, and that is the aspect of where and when the government deems that a change in the tax rate is required. I note that the commitment is there that nothing would take place before the 2002 budget. When a change is required or proposed, could the Minister describe for the committee what the process is by which that change is implemented? Does it go through some kind of public review or assessment? Is it done by regulation? What is the mechanism there so that the public can see when and how changes to tax rates are made? Thank you, Mr. Chairman.
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Joe Handley Weledeh
Mr. Chairman, any change like that would have to be made through a change in the bill, so it would have to appear before the House in the same process, certainly with the opportunity for public input.
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Some Hon. Members
Agreed.
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Some Hon. Members
Agreed.
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Some Hon. Members
Agreed.
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Some Hon. Members
Agreed.
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Some Hon. Members
Agreed.
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