Sure. The idea behind grandfathering is that we are going to cap somebody's rent and freeze it. They won't get the full brunt of the new rent scale, but if you happen to move into public housing, you become a senior this year and move into public housing, you are certainly going to pay a much higher rent than the person beside you who may have exactly the same circumstances, except for age. Isn't that the case?

Minister of Education, Culture and Employment, Mr. Ootes.

Mr. Speaker, the intent was to ensure that individuals who have moved into public housing under certain circumstances and with certain understandings, that that be addressed and it was addressed. Anyone new moving into public housing will understand the conditions of entering into public housing. Thank you.

Item 7, oral questions. Mr. Braden.

Thank you, Mr. Speaker. My question this afternoon is for the Minister of Finance, Mr. Handley. It's following on the delivery yesterday, Mr. Speaker, of the response to the NWT budget from the Canadian Federation of Independent Business, which I understand has just recently opened an office here in the NWT. Mr. Speaker, the CFIB is complimentary in a number of areas of fiscal measures this government has taken, but it also challenges the government on a number, especially related to taxes. There are a number of taxes that it asks about. The question I would like to ask, Mr. Speaker, regards the long-standing request of the CFIB, the Canadian Federation of Independent Business, to reduce our fuel taxes on the highway system. They suggest our rate now of 10.7 cents a litre is 73 percent higher than the Yukon's and 67 percent higher than Nunavut. They suggest it should be taken down to 6.4 cents per litre. Is this something that this government will be able to follow through on? Thank you, Mr. Speaker.

Minister of Finance, Mr. Handley.

Thank you, Mr. Speaker. The issue around taxes is one that we need to look at very carefully. I have not read the Federation of Independent Business's analysis of the budget, so I haven't had a chance to look at that. Mr. Speaker, we have to be careful too in using percentages because percentages can be deceptive in terms of what they really mean in differences, whether it's a difference between six cents or nine cents can sound like a lot if you do it on a percentage basis. If you look at our taxes compared to taxes across the country we find that our taxes are lower than most provincial fuel taxes, so I am happy with that side, that we are maintaining our tax levels as they are. The issue of lowering ours to the Yukon rate of 6.2 cents from what we currently have is one that we've looked at for a long time. This year is not a year where we can afford, as a government, given a deficit, to be lowering these taxes. Thank you, Mr. Speaker.

Supplementary, Mr. Braden.

Thank you, Mr. Speaker. Continuing on the same taxation area, the payroll tax is a rather chronic item as well and we learned from the CFIB that it has gained the amazing support of four percent of respondents. As a popularity contest, payroll tax is a bit of a failure. Obviously, the CFIB says this tax should be reduced substantially, if not eliminated. Does the government see the day when the payroll tax can be taken off our books? Thank you.

Minister of Finance, Mr. Handley.

Mr. Speaker, there are some Members who would recommend that we go to 10 percent, rather than remove it completely. There is a lot of debate on this issue. Mr. Speaker, if we were to do away with the payroll tax, we would also be tempted to do away with the northern tax credit that we provide to Northerners. As long as there is a net fiscal benefit for us in having the payroll tax, then we will continue it. It continues to be in our favour. It's certainly an advantage to people who live in the North and we do benefit from southern people who come and work here. At this point, I have no intention to remove the payroll tax. Thank you.

At this time, I will recognize the clock and that question period is over, but I will allow the Member to conclude his supplementary. Mr. Braden.

Thank you, Mr. Speaker. One further point is regarding local property taxes. The three that we talked about, Mr. Speaker, are within the top three or four on a list of criticisms or areas of change that CFIB is looking for. There is a trend or tendency in the rest of Canada, Mr. Speaker, for provincial authorities to download responsibilities to municipal levels. The CFIB says while its membership does not see this happening today in the NWT, it is very worried that this could be something we will want to do. I want to ask the Minister of Finance is it at all an intention of this government to download the responsibility for services and costs to municipalities? Thank you, Mr. Speaker.

Minister of Finance, Mr. Handley.

Mr. Speaker, no, it is not our intention to download onto municipal governments. We have never taken that stand and at this point, we have no intention of doing that. While saying that, we have to keep in mind that property taxes have to reflect a reality that is out there. So I suppose taxes will probably go up as inflation goes up and other things rise in price.

Thank you. Item 8, written questions. Item 9, returns to written questions. Item 10, replies to Opening Address. Item 11, petitions. Item 12, reports of committees on the review of bills. Item 13, tabling of documents.

In accordance with 99(3) of the Legislative Assembly and Executive Council Act, I wish to table the Annual Report of the Conflict of Interest Commissioner of the Legislative Assembly dated February 27, 2003.

Item 13, tabling of documents. Ms. Lee.

Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motions for first reading of bills. Item 16, motions. Item 17, first reading of bills. Item 18, second reading of bills. Item 19, consideration in Committee of the Whole of bills and other matters: Bill 3, Bill 6, Bill 7, Bill 8, committee reports 3-14(6), 4-14(6), 5-14(6) and 6-14(6) with Mr. Lafferty in the chair.

Mr. Chairman, I would like to recommend that the committee consider Bill 6 followed by Bill 7 and then Bill 8 and subsequent to concluding those three bills, we again resume consideration of Bill 3 and committee reports 3-14(6), 4-14(6) and 5-14(6) concurrently to continue with consideration of the budget of Education, Culture and Employment. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. Yes, I do. Mr. Chairman, colleagues, I wish to represent this legislation which implements the direction of the Legislative Assembly. On June 19, 2002, the Committee of the Whole adopted the recommendation of the Special Committee on the Implementation of Self-Government and the Sunset Clause that the Assembly enact electoral district boundaries commission legislation similar to that previously in force, but with such changes as may be desirable to maximize public involvement and to ensure the effective representation of all communities.

The proposed bill would provide for an electoral boundaries commission to be established by resolution of the Assembly within two years after the 2003 election and every second election after that. The bill is similar to the previous act, but includes the following changes:

• • A new provision clearly stating that the commission may undertake programs and measures to inform the public about the values and principles that underlie the determination of electoral boundaries and about the process that leads to that determination.
• • Addition of the following to the list of considerations to be taken into account by the commission in preparing its report: census data; information in the register of electors; community boundaries and boundaries established under lands, resources and self-government agreements; transportation; language and culture; public input; communications; and special circumstances relating to any existing electoral districts.
• • Several minor administration and technical changes.

Mr. Chairman, if required, and with assistance of the officials, I would be pleased to answer any questions on this bill.