Thank you, Mr. Chairman. Mr. Chairman, there are, for sure, a number of theories about what a government can do to try and increase revenues or keep revenues, but ultimately when you do look at the equations we're faced with and the formula and the working arrangement we have with Ottawa on formula financing, our options are limited. Our change in our fiscal strategy initially was based on the relationship we had with Ottawa around formula financing and tax effort. As I stated, under previous conditions, if we tried to be competitive in a sense and drop our corporate tax rate, we would be hit with a negative adjustment on transfer payments. As one of the measurements of our comparison to other jurisdictions was what we call tax effort adjustment factor, and that played a significant role in our fiscal strategy. Now with the existing situation, we find that does not play a role anymore, its 100 percent gain or loss. In this environment and looking at an immediate impact of having funds reduced, the short-term we'd have to look at our competitiveness compared to other jurisdictions. Longer-term there may be solutions looked at, but it would take something that not just one jurisdiction can do on its own. We can bring an issue to the table and talk with other jurisdictions about corporate taxes and setting a basin, and then having the federal government agree to something like that would be very difficult. So unfortunately, in the short-term, we're faced with the regime of trying to remain competitive. If the federal government does not deal with the expert panel report in a timely fashion, this could carry on for more than one year. That's something we'd have to be prepared to look at, again, in the environment of being competitive. Thank you.
Floyd Roland on Item 16: Consideration In Committee Of The Whole Of Bills And Other Matters
In the Legislative Assembly on February 28th, 2006. See this statement in context.
Item 16: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 16: Consideration In Committee Of The Whole Of Bills And Other Matters
February 27th, 2006
Page 1449
See context to find out what was said next.