The Member is seeking unanimous consent to conclude her statement. Are there any nays? There are no nays. You have unanimous consent to conclude your statement.

Thank you, Mr. Speaker. There is a very positive aspect to this. I do believe we released a statement yesterday talking about self-relying individuals and working towards wellness. I do not think anybody could disagree that active seniors are healthy seniors who have less need and make less use of the health care system. By engaging people as soon as they become seniors -- 55 plus for the purpose of the games -- the society hopes to get them active both physically and mentally and keep them active for the rest of their lives. In 2002, the oldest participant at the games was 92 years old. Team NWT's oldest competitor is 83 years young. My mother, who would probably not forgive me if I gave her age, is a much better bowler than I am.

Mr. Speaker, with Canada's rapidly aging population and escalating health care costs, it is obvious that the more we can do to keep seniors healthy and active, we will be building a more cost-effective system for everyone, governments and society in general.

I want to conclude my statement by stating to the Minister responsible for Seniors and Cabinet, that I am in full support of the proposal by the NWT Seniors' Society for $65,000 in funding to get the 35 seniors to represent the NWT. I would like to ask the support of Members in this Assembly and Cabinet and reply as soon as possible. Thank you, Mr. Speaker.

---Applause

Item 3, Members' statements. Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. For many years, the GNWT has hired its workforce using a three-stage policy, based on race, residency, gender and ability. In a report filed in November of 1998, called the GNWT Report on the Affirmative Action Policy, the government of the day committed to examining at least one aspect of this, which was the residency condition under this policy. To date, Mr. Speaker, we are looking at about six years now. I am not aware of any changes to the definition of a long-term northerner under the affirmative action policy.

Mr. Speaker, the Canadian Constitution does allow for affirmative action programs, provided they meet certain criteria. I assume that when the affirmative action policy was first introduced, this government confirmed that its policy did meet that criterion. But, over time, things change. The question now, I believe, is whether our affirmative action policy still meets the criteria and whether the government examines such policies on a regular basis.

Mr. Speaker, for a person to be classified as a P2 candidate under this residency criteria of the affirmative action policy, it is necessary that they spend over half of their lives in the Northwest Territories. Now, constituents have brought it to my attention that this provision of our affirmative action policy is, in effect, age discrimination. They point out, for example, that a person who moved here when they were 10 years old would be eligible for P2 affirmative action hiring status in our government when they were 20 years old, just in time to get a good education and enter our workforce. But their parents who may have moved here when they were 30 years of age would not be eligible for that same status until they were 60 years old, just in time to retire.

Mr. Speaker, this part of our policy is unfair to all of the people who made a commitment to the Northwest Territories. I can see merit in maintaining such a classification to recognize a commitment to people who have made a long-term investment here in the Northwest Territories. Our workforce should be representative of the people it serves. But, in my mind, half a lifetime is far too long for determining that a person is a long-term northerner eligible for hiring by this government. Thank you, Mr. Speaker.

---Applause

Item 3, Members' statements. Member for Tu Nedhe, Mr. Villeneuve.

Mahsi, Mr. Speaker. Mr. Speaker, over the past couple of weeks, I have had the opportunity to meet with several Ministers to discuss various issues of concern to my constituency, Tu Nedhe, and to the residents of the Northwest Territories. During the course of these meetings with the Minister of Finance, the Minister of Municipal and Community Affairs, the Minister of Health and Social Services, the Premier and the rest of the staff, I was assured that many of the valid concerns would be addressed in a timely and effective manner, although I realize that many issues cannot always be resolved quickly and to everybody's liking at all times.

Mr. Speaker, it is my privilege to share with this House my evaluation of the government's practices and priorities which relates to my constituency issues. Mr. Speaker, I am glad to say that this government is moving forward on addressing and resolving many issues of concern that have not received the same level of attention in the past. I am happy to see that there is cooperation, transparency and responsiveness to many concerns that are being brought to the government's attention in a manner that is both expedient and satisfactory on most accounts, like the creation of another family law clinic and the reinstatement of the language nest program.

Mr. Speaker, I would like to commend the government's cooperative teamwork approach to solving many outstanding problems, and I encourage them to continue to build my confidence in this government. Mahsi, Mr. Speaker.

---Applause

Item 3, Members' statements. Member for Inuvik Boot Lake, Mr. Roland.

Thank you, Mr. Speaker. Mr. Speaker, earlier this month, the students and staff of Samuel Hearne Secondary School in Inuvik narrowly avoided tragedy when the roof of the foyer collapsed. As a parent of three children in the school and as MLA for the area, I am grateful that no one was injured. Since then, efforts have been focused on getting students back to class so that they are able to complete their school year. Although the subsequent fire in the gymnasium was a major setback, the timely response of the Inuvik fire department and the efforts of the school and education officials, government departments, and regulatory agencies and contractors have paid off. After a few short weeks, the school has re-opened and classes have once again resumed at the SHSS this week.

I would like to take the opportunity to convey my appreciation to all the people in the department and the agencies that pulled together to ensure that the situation was addressed so quickly and efficiently. In particular, I would like to thank the firefighters who assisted in containing the fire.

Mr. Speaker, a great deal remains to be done. As a parent and MLA, I commit to working together with all associated agencies and individuals to ensure that students and staff are safe, secure and able to continue with their learning. Thank you, Mr. Speaker.

---Applause

Item 3, Members' statements. Item 4, Reports of Standing and Special Committees. Mr. Delorey.

Therefore, I move, seconded by the honourable Member for Tu Nedhe, that Committee Report 4-15(3) be received by the assembly and moved into Committee of the Whole. Thank you, Mr. Speaker.

The motion is in order. To the motion.

Question is being called. All those in favour? The motion is carried.

---Carried

Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, I seek unanimous consent to waive Rule 93(4) and have Committee Report 4-15(3) moved into Committee of the Whole for today. Thank you, Mr. Speaker.

The Member is seeking unanimous consent to move the report into Committee of the Whole for today. Are there any nays? There are no nays. You have unanimous consent. The report will be moved into Committee of the Whole for today. Item 4, reports of standing and special committees. Mr. Menicoche.

Thank you, Mr. Speaker. The Standing Committee on Accountability and Oversight is pleased to provide its report on the review of Bill 6, An Act to Amend the Income Tax Act, 1993 and the Income Tax Act.

The committee held public hearings on May 20 and 21, 2004, in Yellowknife. The committee would like to thank the NWT Seniors' Society for their presentation, and the NWT Chamber of Commerce, NWT and Nunavut Chamber of Mines and the NWT Construction Association for their joint written submission. The committee would also like to thank the Minister and his staff for presenting the bill.

Bill 6 is the final piece of legislation needed to put into effect the revenue initiatives announced in the 2004-2005 budget address. Bill 6 will increase the payroll tax from one percent to two percent, increase cost of living tax credits and reduce the personal income tax rate on the lower two income brackets. Bills 2 and 3, which were passed earlier this year, increased the large corporate tax rate and the personal income tax rates for the top two income brackets. The committee was advised by Department of Finance staff that, even including the payroll tax, the NWT's top personal income tax rate will still be one of the four lowest in Canada.

The combination of revenue measures represented by Bill 2, Bill 3 and Bill 6 will help to address the NWT's need to keep up with the tax efforts of other provinces and territories. The consequences of not keeping up are that the NWT would be penalized in its formula funding deal with Ottawa.

The increase to the payroll tax is primarily intended to allow the GNWT to collect more revenue from individuals who work in the NWT, but who reside and file their income taxes in other parts of Canada. The numbers of these fly-in/fly-out workers are steadily increasing as more resource developments come on-stream, and it is expected that there will be a significant spike with the construction of a Mackenzie Valley pipeline. Bill 6 will help to position the GNWT for increased resource development, although revenues from the payroll tax will continue to be modest unless and until the construction phase of the Mackenzie Valley pipeline begins.

The changes to the cost of living tax credits and the personal income tax rates for the lower two brackets are intended to partially offset the payroll tax increase for NWT residents. The committee commissioned independent research to gauge the combined impact of Bill 3 and Bill 6 on resident taxpayers in several different scenarios. The findings are appended to this report.

While the scenarios outlined are somewhat simplistic, they do confirm that lower and middle income wage earners will see modest net reductions in their overall income tax as a result of Bill 6.

Some residents with higher incomes will see a net loss as the higher tax credits and lower personal income tax rates will only partially offset the payroll tax increase for them. Taxpayers whose income comes from sources other than wages, such as pensions or self-employment, will see a net gain of as much as $800 because they will benefit from the changes to tax credits and tax rates although their income sources are not subject to the increased payroll tax.

Although some middle and high-income earners will see net losses in their take-home pay, the number of residents who will gain from these changes outnumbers those who will lose some income. In this context, those people who have fewer options to deal with the high cost of living in the NWT will be a little better off.

Although Bill 6 will directly benefit many lower and middle income earners, some committee Members stressed that tax increases cannot be looked at in isolation, but must be considered in the context of the high northern cost of living. Similar concerns were also raised in both submissions the committee received. The NWT Chamber of Commerce, NWT and Nunavut Chamber of Mines and NWT Construction Association suggested that an increasingly unattractive tax burden will make recruiting and retaining skilled and professional workers to the NWT even more difficult than it already is. The NWT Seniors' Society raised concerns that any tax reductions lower and middle income earners receive as a result of this bill could be more than offset by increases to the cost of living that result from a higher payroll tax.

The clause-by-clause review of Bill 6 took place on May 21st. Two amendments of a minor and technical nature were agreed to at that time.

Following the committee's review, a motion was carried to report Bill 6, An Act to Amend the Payroll Tax Act, 1993 and the Income Tax Act, to the assembly as ready for Committee of the Whole as amended and reprinted.

Mr. Speaker, that concludes the report of the Standing Committee on Accountability and Oversight on the review of Bill 6, An Act to Amend the Payroll Tax Act, 1993 and the Income Tax Act.

Therefore, I move, seconded by the honourable Member for Sahtu, that Committee Report 5-15(3), be received by the assembly and moved into Committee of the Whole.

The motion is in order. To the motion.

Question is being called. All those in favour? The motion is carried.

---Carried

Mr. Menicoche.

Mr. Speaker, I seek unanimous consent to waive Rule 93(4) and have Committee Report 5-15(3) moved into Committee of the Whole for today. Thank you, Mr. Speaker.

The Member is seeking unanimous consent to move the report into Committee of the Whole for today. Are there any nays? There are no nays. You have unanimous consent. Committee Report 5-15(3) will be moved into Committee of the Whole for today. Item 4, reports of standing and special committees. Item 5, returns to oral questions. Item 6, recognition of visitors in the gallery. Mrs. Groenewegen.

Thank you, Mr. Speaker. Mr. Speaker, as I said in my Member's statement, it's a pleasure to have the Grade 6 students from Hay River in the gallery today. I would like to name them if they could just quickly jump up so we can see you. First of all, before we do that, Ginny Groenheyde, one of their teachers and Bob White is one of the teachers. Also from the PA school, Carolyn Carroll and I would also like to recognize my assistant Wendy Morgan who put a lot of work into this. Now for the students: Keisha Kipling, Jaeda Larocque, Ben Corneau, Allee Geade, Madison Sabel, Tanya Maher, Irene Angulalik, Rie Wiedemann, Alexander Tatti, Luke Lafreniere, Jeffrey Fabian, Amy Carroll, Jeremy Carroll, Brett Soroff, Seth Norn, Brieanne Glaicar, Jordee Walsh, Keegan Beaulieu, Kaillyn McNabb, Deanna Crook, Danielle Gardener, Melissa McKinnon, Catherine Monkman, Cheslea Pukanich and Jordan Fabian. Thank you, Mr. Speaker.

---Applause