Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight conducted public reviews of Bill 3, An Act to Amend the Income Tax Act, No. 2, on March 25 and 26, 2004. The committee would like to thank all the witnesses for their submissions, which were made on very short notice. The committee also thanks the Minister and his staff for presenting the bill.

As I indicated in my comments on Bill 2, the committee was very concerned about the short amount of time allowed for the public to review and respond to these tax increases.

Bill 3 proposed to raise the personal income tax rates on the two highest brackets effective July 1, 2004. The committee heard concerns about Bill 3 from both Mr. Mike Vaydik of the NWT and Nunavut Chamber of Mines, and Mr. David Tucker of the NWT Construction Association, who told committee the increase could affect their ability to recruit and retain skilled trades workers who are a highly mobile section of the labour force and in high demand across Canada.

Mr. Connelly of the Yellowknife Chamber of Commerce indicated to committee he did not have a concern with Bill 3.

The committee heard support for Bill 3 from Ms. Suzette Montrieul of Alternatives North. Similar to its position on Bill 2, Alternatives North does not believe the proposed tax increase is unreasonable and considers maintaining the GNWT's social programs to be more important than maintaining low tax rates.

The majority of committee members find this tax increase regrettable but necessary in order to maintain the GNWT's social programs.

This concludes the committee's opening comments on Bill 3. Individual Members may have additional questions or comments as we proceed. Following the committee's review a motion was carried to report Bill 3, An Act to Amend the Income Tax Act, No. 2, to the Assembly as ready for Committee of the Whole. Thank you, Mr. Chairman.