Thank you, Mr. Speaker. Mr. Speaker, I believe I saw the same letter that the Member did just before I came into the House this afternoon, and I've indicated to the staff that I want to talk to the deputy minister about the situation there and get briefed so that we can ensure that there is no diminishment of services in the community, and that we're flexible enough to accommodate the program deliveries that are in that particular situation. Thank you.

The time for oral questions has expired. Item 7, written questions. Mr. Yakeleya.

Thank you, Mr. Speaker. My written question is for the Minister of Aboriginal Affairs.

Can the Minister of Aboriginal Affairs provide the following information on the progress and tracking of the implementation process of the Sahtu Dene and Metis comprehensive land claim (1993), specifically the chapter on economic measures?

1. Has the Ministry of Aboriginal Affairs conducted any reviews of the economic measures chapters of other settled land claims in the Northwest Territories?
2. What, if any, report did the ministry have that provided a "report card" for the GNWT's role in implementing their part of the agreement under the land claim document?
3. How much of the economic measures items have been implemented in the settled land claims area?

Thank you.

Item 7, written questions. Mr. Braden.

Item 7, written questions. Item 8, returns to written questions. Minister of Municipal and Community Affairs, Mr. Zoe.

Mr. Speaker, I have a return to written question asked by Mr. Braden on March 24, 2004, regarding reclamation of Miramar Con Mine. Mr. Braden asked if there is a specified reclamation standard in the Con Mine leases that the leaseholder must achieve. The leases require Miramar Con Mine to prepare a restoration plan dealing with, among other things, the removal of buildings and structures on the property, roads, and the land in general. The plan is to be prepared with the objective of restoring the land to an environmentally-safe and reusable condition, to the satisfaction of the deputy

minister of Municipal and Community Affairs. In determining what constitutes an environmentally-safe and reusable condition, the department refers to existing standards and guidelines under territorial and federal legislation.

Miramar Con Mine has five leases with varying termination dates. The lease on the Rat Lake parcel expires in 2006. The leases on Tin Can Hill and Armstrong Island expire in 2011. The leases on the mine site and the town site both expire in 2021. The leases require that a restoration plan for the parcels be submitted to the deputy minister of Municipal and Community Affairs approximately two years prior to the expiration date of each of the leases. Municipal and Community Affairs is working through the process established by the Mackenzie Valley Land and Water Board to arrive at one abandonment and restoration plan satisfactory to all regulatory bodies.

The department has deemed that the draft abandonment and restoration plan, submitted by Miramar Con Mine as required under their federal water licence to the Mackenzie Valley Land and Water Board in March 2003, is an acceptable format for the restoration plan that is required to be submitted under the leases. Municipal and Community Affairs participates on the technical working group that is currently reviewing the draft Miramar Con Mine abandonment and restoration plan and intends to adopt the draft abandonment and restoration plan once it has been finalized and approved by the Mackenzie Valley Land and Water Board, provided it meets the test of environmentally safe and reusable as required under the leases.

Mr. Braden further asked if the leases permit the Minister to set or alter the standards of reclamation that Miramar Con Mine must meet. The answer is yes. The deputy minister has the authority to direct Miramar Con Mine to revise the restoration plan. This process is ongoing and being monitored through Municipal and Community Affairs' participation on the technical working group, chaired by the Mackenzie Valley Land and Water Board, and which is currently reviewing Miramar Con Mine's draft abandonment and restoration plan.

Finally, Mr. Braden asked if the reclamation standards are not achieved by Miramar Con Mine what remedies are available to the Minister to have the necessary work carried out. The deputy minister can order the restoration of all or any part of the property and any expenses incurred by the deputy minister in doing so would be recovered from Miramar Con Mine as a debt due to the Commissioner of the Northwest Territories. The deputy minister's authority to order the restoration of all or any part of the property, should Miramar Con Mine fail to do so, is contained in the Commissioner's Land Act and regulations. Thank you, Mr. Speaker.

Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Item 11, reports of standing and special committees. Item 12, report of committees on the review of bills. Item 13, tabling of documents. Mr. Dent.

Thank you, Mr. Speaker. Mr. Speaker, I have two documents to table. First I wish to table the following document entitled Report and Recommendations of the NWT Judicial Remuneration Commission, dated March 2, 2004.

Mr. Speaker, I'd also like to table the document entitled Labour Standards Board Annual Report for the Years April 1, 1996 to March 31, 2003. Thank you, Mr. Speaker.

Item 14, tabling of documents. Mr. McLeod.

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document entitled Environmental Rights Act, 2002-2003 Annual Report. Thank you, Mr. Speaker.

I wish to table a report entitled Cultural Enhancement of the Northwest Territories Legislative Assembly Building and Grounds, prepared by Outcrop Communications Ltd. for the Legislative Assembly in April 2003.

Pursuant to section 19(b) of the Legislative Assembly and Executive Council Act, indemnities, allowances and expenses regulations, I wish to table a statutory declaration of residents of those Members of the Legislative Assembly of the NWT who are seeking reimbursement for their capital accommodation pursuant to section 24(1) of the Legislative Assembly and Executive Council Act for the fiscal year 2003-2004.

Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motion for first reading of bills. Item 16, motions. Item 17, first reading of bills. Mr. Roland.

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Thebacha, that Bill 6, an Act to Amend the Payroll Tax Act, 1993 and the Income Tax Act, be read for the first time. Thank you, Mr. Speaker.

The motion is in order. To the motion.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Bill 6 has had first reading. Item 17, first reading of bills. Item 18, second reading of bills. Mr. Zoe.

Thank you, Mr. Speaker. I move seconded by the honourable Member for Thebacha, that Bill 5, Tlicho Community Government Act, be read for the second time.

Mr. Speaker, this bill gives effect to chapter 8 of the Tlicho agreement relating to Tlicho community governments. It establishes the community governments of Behchoko, Wha Ti, Gameti and Wekweti and describes their boundaries. The provisions for community governance are modeled upon those set out in the proposed statutes included as schedules to Bill 25, the Municipal Statutes Replacement Act, through variances due to results from the Tlicho agreement.

This bill provides for transitional matters, including the initial composition of the council of each community government, the first election of council members, the establishment of initial land administration by-laws which will govern upon establishment of a community government and the statutes of by-laws, contracts, rights and obligations of the Hamlet of Rae-Edzo and the Charter Community of Wha Ti. Consequential amendments are provided for and a sequential coming into force regime is established with specified provisions coming into force on assent and the remainder coming into force on the effective date of the Tlicho agreement. Thank you, Mr. Speaker.

The motion is in order. To the principle of the bill.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Bill 5 has received second reading and accordingly the bill is referred to committee.

Item 18, second reading of bills. Item 19, consideration in Committee of the Whole of bills and other matters: Bill 2, An Act to Amend the Income Tax Act; Bill 3, An Act to Amend the Income Tax Act, No. 2; and, Bill 4, Supplementary Appropriation Act, No. 3, 2003-2004. By the authority given to the Speaker by Motion 2-15(3), the House is resolved into Committee of the Whole to sit beyond the time of adjournment until the committee is prepared to report, with Mrs. Groenewegen in the chair.

We are dealing with Bill 2. I want to ask Mr. Roland if you would like to introduce the bill.

Thank you for the opportunity to present Bill 2, An Act to Amend the Income Tax Act.

Two weeks ago, in my budget address, I announced increases to personal income tax rates for higher income individuals, an increase to the corporate income tax rate for large corporations, and an increase to the payroll tax. The bill before you is necessary to implement the first these measures. Bill 2 would increase our corporate income tax rate for large corporations from 12 to 14 percent effective January 1, 2004.

This measure will be effective in 2004. Because of this, we need to advise the federal Minister of National Revenue of our new rates before April 15th of this year so that they can be administered by the Canada Revenue Agency. In order for this changed to be implemented, this bill needs to be passed in this sitting of the Assembly.

As I stated in the budget speech on March 17th, this measure is part of a package of revenue and spending measures necessary to meet our target of a balanced budget in 2006-07. As I announced in the Assembly last week, the federal Minister of Finance has agreed to postpone rebasing the formula financing tax effort factor for the grant by one year. This change, along with the other spending and revenue measures announced last week, will allow us to achieve a balanced budget in 2004-05.

However, this federal measure, while welcome, only postpones our deficit for one year. We still need to make the spending and revenue changes outlined in the budget in order to balance our budget by 2006-07. We still face the debt wall in two years. The tax changes I announced are still necessary.

The change in our corporate income tax rate from 12 percent to 14 percent is expected to raise $8 million in 2004-05, and similar amounts in future years. As I stated last week, when the formula financing tax effort factor is rebased, we will actually lose revenue on a net basis. An extra $12 million in revenue at the 12 percent rate would lose $12.8 million on the grant. Rebasing has only been postponed one year, until 2005-06. Unless we can develop alternatives to the current approach to tax, we must work on the assumption that rebasing will go ahead.

Some Members raised concerns about the loss of our competitive position on corporate income tax rates, and have asked what this might mean for corporate tax filings in the NWT.

However, even at a rate of 12 percent, we would be unlikely to receive any tax windfalls similar to those received in the past, since Alberta is scheduled to reduce its corporate tax rate to 11.5 percent on April 1st. We could not afford to compete with Alberta and lower our rate to 11 percent. At that tax rate, increases in our tax base would cost us even more in net revenue losses.

This measure is necessary for our long-term fiscal stability, and I strongly believe that our government's

balanced approach to tackling our fiscal challenges, that is spending reallocations and revenue initiatives was well received by the federal government, who saw we were not relying only on increased federal support, but were prepared to take measures to deal with these challenges ourselves.

Mr. Chairman, I would be pleased to answer any questions the committee has on this measure. Thank you.