This is page numbers 793 - 842 of the Hansard for the 15th Assembly, 4th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was housing.

Legacy Of The 15th Legislative Assembly
Item 3: Members' Statements

Page 797

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. Mr. Speaker, much of the history of the aboriginal people is through storytelling that is passed on from generation to generation. A hundred years from now, I would like to see our descendents tell a story of the brave Members of the 15th Legislative Assembly. They can speak of the Assembly, lead by Premier Handley and Finance Minister Floyd Roland, getting a deal from Ottawa that gave us our resource revenue sharing deal. This deal allowed them to enjoy the benefits that they have today: billions of dollars in our trust fund, Mr. Speaker. Not only that, the story would continue with Minister McLeod and MLA Pokiak leading the way in constructing an all-weather road from Wrigley to Tuk and then on to Paulatuk. They can tell of how it dropped the cost of living down. They can also speak on the housing mandate still being worked on.

---Laughter

They can tell of all the buildings in Inuvik still standing 100 years from now. Years from now, Mr. Speaker, I would like to see the people still talking about this Assembly and not being forgotten in two years. We have to give people years from now...We are on the verge of something big here and we can do something big for the Northwest Territories, so let's leave some history that people can speak about years from now. Thank you, Mr. Speaker.

---Applause

Legacy Of The 15th Legislative Assembly
Item 3: Members' Statements

Page 797

The Speaker

The Speaker Paul Delorey

Thank you, Mr. McLeod. Members' statements. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Mackenzie Gas Project Fiscal Assurances
Item 3: Members' Statements

February 6th, 2006

Page 797

Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you, Mr. Speaker. Today I rise to talk about my concern with the Premier's letter to the producers, also known as our letter of comfort. At the very least, Mr. Speaker, I would like to point out a few things. The first one is certainty. The Premier's letter was structured to define some certainty, a level playing field and a clear understanding of what is going to happen in the GNWT, the Northwest Territories for the producers. But, at the end of the day, I am concerned because Imperial Oil fired a shot over the NWT's bow and we didn't just surrender; we truly waved the white flag and said take whatever you want.

Mr. Speaker, I would like to quote off the letter, "It is not the intention of the GNWT to introduce or support any new, targeted tax or royalty changes..." Why would we give that away, Mr. Speaker? Why would we tell them up front that we are not going to do this? This should be something in our play book that is kept secret until that time is necessary. Mr. Speaker, this letter is now a policy statement, whether we like it or not. So any future discussion about taxes, Imperial Oil is going to come forward to us and hold this framed letter up and say, well, geez, Mr. Premier-of-the-day, the past-Premier, Joe Handley, had said that we weren't going to raise any taxes. And, by the way, we wouldn't have spent $7 billion if we didn't know what the market was going to be up there. So, Mr. Speaker, this is not just a feel good statement. It is possibly a moment-defining policy statement for the future.

Mr. Speaker, I would like to continue to quote, "In the absence of such an agreement," it says the GNWT wants you to communicate your agreement with Canada with us. So in other words, the GNWT has begged on bended knee for a tell us clause. So whatever Imperial Oil discussed with the federal government, it says tell us, just because we don't know what we are doing. We want to make sure that we are in on the deal.

Mr. Speaker, it's been said a number of times that this agreement can't tie our hands. Yes, it's even spelled out in this. But I'm telling you, Mr. Speaker, that I'm really concerned. It should have never been written. If we needed to write an agreement or send them a letter to make them feel good, we should have sent them a letter that basically said we will have responsible and fair taxing measures in the Northwest Territories, not unlike any other region in Canada. We will be responsible and sensitive to the lay of the land. So, Mr. Speaker, we did not have to go so far and spell it out that we would not impose any fiscal measures by adding taxes, or imply that in any way. I will have questions later for the happy Premier. Thank you, Mr. Speaker.

Mackenzie Gas Project Fiscal Assurances
Item 3: Members' Statements

Page 797

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Hawkins. Members' statements. Returns to oral questions. Recognition of visitors in the gallery. Oral questions. Before I go on to oral questions, Members, I'd just like to draw your attention to the rules that you have set for oral questions, and that is that your questions are to be allowed one preamble and then keep your supplementary questions very brief as far as preamble is concerned. I would just ask Members to keep those rules in mind when you're asking your questions. Oral questions. The honourable Member from Range Lake, Ms. Lee.

Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

Page 797

Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. Mr. Speaker, my questions are on the need to lessen the burden of doing business for small communities, as I stated in my Member's statement, and my question goes to the Minister of Finance. Mr. Speaker, I hope the Premier and Cabinet take comfort with that letter of comfort that they sent Imperial Oil. Now that we know their last-quarter profit was a record-breaking $1 billion. That's just the first quarter. I could see that this government is very anxious to give them a comfort letter, and the government is mobilizing their effort to give a let up to ATCO to get their $297 million housing project. Now I think I'd like to see some comfort on the part of this government to the small business. The Minister's of Finance budget had a mention of small businesses on page 7, Mr. Speaker, where it speaks to the fact that...The Minister states that at four percent, the small business taxation is competitive. What I can tell you, from the information from the Canadian Federation of Independent Business, which I believe was forwarded to Mr. Roland, it was an open letter to him and the Premier, it says that our 12 percent is not competitive. Actually, our rate is not competitive with our neighbours in Nunavut, Alberta and British Columbia, and it should really be at 12 percent. The Minister indicates that he working on a new plan for small businesses; I'd like to know if he can indicate to this House what that might be. Thank you, Mr. Speaker.

Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Ms. Lee. The honourable Minister responsible for Finance, Mr. Roland.

Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, the small corporate tax rate that we have in the Northwest Territories is one of the lowest in Canada. In fact, our small business corporate tax rate is at four percent. Ms. Lee mentioned 12 percent. That is referring to our large corporate tax rate. It was 12 percent. We previously moved it up to 14 and have announced, through the budget address, that we're proceeding to move it down to 11.5. So the small business corporate tax rate is at four percent, and we are having some discussions about how we can support the small business. Is it do we keep that area around; do we look at other programs we have in place that support northern businesses to see if there's something we could do with that? Thank you.

Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Supplementary, Ms. Lee.

Supplementary To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. Mr. Speaker, I'd like to suggest to the Minister that the time for discussing that might be coming to an end pretty soon here. This is his third budget and it is time for him to act as soon as possible, Mr. Speaker. One of the four things that the report mentions, in terms of the burden for small businesses, is the high taxation and a shortage of skilled labour, and some of the paper burden on the government which I think the government can really take leadership on. The WCB premium, I said it's tripled in the last three years, but it increased by 25 percent each of the last three years. I'd like to know if the Minister of Finance would undertake reviewing the burden on small businesses and come back to this side of the floor within the next couple of months so we could really take an action on that. Thank you, Mr. Speaker.

Supplementary To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Ms. Lee. Mr. Roland.

Further Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, the area of small businesses and our support for them is something that we are looking at. As I stated in the budget address, we need to come up with a plan as to how do we pursue this area and try to ensure that the small businesses have, indeed, a foot up here in the Northwest Territories. We don't have a lot of information at this point. There's been some preliminary discussions, but it's something we will follow up on. As we go down that path, I'd be more than willing to sit down with members in committees to give them an update. Thank you.

Further Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Final, short supplementary, Ms. Lee.

Supplementary To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. I do appreciate the different tax rate for the small businesses at four percent. I don't know if that is the competitive rate with our neighbours, which we often go by. The high cost of fuel and gas, and high cost of doing business in terms of hiring labour could be compensated by government's action of reducing costs in other areas, such as WCB. Could I ask the Minister to come back because I didn't hear a commitment from him? Could he commit to coming back with some solid package to this side of the table for discussion in the next two months? Thank you, Mr. Speaker.

Supplementary To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

Page 798

The Speaker

The Speaker Paul Delorey

Thank you, Ms. Lee. Mr. Roland.

Further Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, the areas, again, that we have been working on and considering around the small business and support for those have been more in the area of the small business corporate tax rate, which for the Northwest Territories is four percent. For Nunavut and the Yukon it is at four percent, as well. B.C. is 4.5 percent. Other jurisdictions go from five to as high as eight percent; Alberta being lower than us at three percent. But working towards trying to ensure small businesses have a good start here in the Northwest Territories. I had already committed; we are working on a package that we can bring back to Members of this House and look to see if that is enough in the ways of trying to provide the necessary support for small business. Thank you.

Further Return To Question 348-15(4): High Operating Costs Of Small Businesses
Question 348-15(4): High Operating Costs Of Small Businesses
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Oral questions. The honourable Member from Kam Lake, Mr. Ramsay.

Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

Page 798

David Ramsay

David Ramsay Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of Education, Culture and Employment, and it gets back to my statement that I made earlier. I believe that it's incumbent upon the Government of the Northwest Territories to ensure that it provides help to all day cares and day care providers. Mr. Speaker, I'm not advocating that arrangements currently at play with providers be rescinded or altered; however, as a government, we cannot allow day cares to suffer through prohibitive operational expenses. If what one day care gets, in what my research dictates, an $80,000 advantage, then something has to be done for the others who need help. The first question I have for the Minister of ECE is whether or not he's aware of the inequities that exist amongst Yellowknife day care providers. Thank you, Mr. Speaker.

Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

Page 798

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Ramsay. The honourable Minister responsible for Education, Culture and Employment, Mr. Dent.

Return To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

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Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. I'm aware that this government does provide opportunities to non-profit groups to lease space in what are called charity

leases. So, yes, there are operators in Yellowknife who are taking advantage of space that they're not paying rent for, and that is providing some operators, I guess, with a bit of a leg up. Thank you.

Return To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Dent. Supplementary, Mr. Ramsay.

Supplementary To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

Page 799

David Ramsay

David Ramsay Kam Lake

Thank you, Mr. Speaker. I think that's fair game. I think the government does do some of these charity leases and there are providers that operate out of government-owned facilities. But what I'd like to ask the Minister is if he recognizes these inequities, what are his plans to get more funding for other providers so that all have the same level of support and are working off the same page? Thank you, Mr. Speaker.

Supplementary To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

Page 799

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Ramsay. Mr. Dent.

Further Return To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

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Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. I know that in the last session, Mrs. Groenewegen asked if the government would look for places where we had opportunities for day cares to operate in government-owned facilities. So we did, with Public Works, undertake an examination of that. We have, in the past, made it a practice where there is space available to provide that space. So for instance, on the Hay River Reserve, the Aboriginal Head Start Program is operating in space there and isn't being charged rent. In Mildred Hall there's a Head Start Program this year that's not being charged rent. Our position has been that while this may not be totally equitable, it is a good use of public facilities to ensure that these good programs are able to run. Thank you, Mr. Speaker.

Further Return To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

Page 799

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Dent. Final supplementary, Mr. Ramsay.

Supplementary To Question 349-15(4): GNWT Support For Day Care Facilities
Question 349-15(4): GNWT Support For Day Care Facilities
Item 6: Oral Questions

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David Ramsay

David Ramsay Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, I would like to ask the Minister if the ones that are getting subsidized, are they for profit or are they not for profit? There is a distinction there. I would like the Minister to try to explain that distinction, profit or not profit. Thank you.