Thank you, Mr. Chairman. I’m here to present the Department of Finance’s Main Estimates for the fiscal year 2008–2009.
The Department of Finance is responsible for the Government of the Northwest Territories’ revenue generation and management for fiscal, tax and economic policy development. Finance, therefore, plays an important role in ensuring that the government is able to deliver its programs and make informed decisions about the allocation of its resources.
By virtue of its mandate Finance is directly involved in a number of the GNWT’s strategic activities. Building on the government’s previous macroeconomic policy work, the department will be supporting the Maximizing Opportunities Strategic Initiative Committee in the development of an economic investment framework to guide our decisions regarding investments in the NWT economy. The department will also continue to play a key role in the negotiations on the Net Fiscal Benefit related to devolution and resource revenue sharing.
During 2008–2009 the department will continue to focus on the fiscal issues affecting the GNWT. This
includes priorities identified by the 16th Assembly,
like identifying and consulting on the revenue options available to this government.
Another key initiative for the department in 2008–09 is the finalization of the regulations under the Liquor Act to allow the new act to be brought into force later this year.
The Department of Finance has identified a total expenditure budget of $10.959 million for 2008–09. This represents a 4.4 per cent decrease over the 2007–2008 Main Estimates amount. The net decrease is composed of:
•
a budget reduction of $778,000;
•
a one-time increase of $123,000 to fund a tax auditor term position to the end of 2008–2009 fiscal year;
•
an increase of $128,000 to fund collective
agreement increases and improved Northern Allowance adjustments; and
•
a net increase of $25,000 to reflect a number of small administrative changes and transfers.
The department has reduced its expenditure budget by $778,000 through the following measures:
•
Reducing the premium on GNWT’s property insurance policy by reducing the total values insured, for a savings of $475,000. This was achieved by removing bridges owned by the GNWT, valued at approximately $190 million, from the policy. This change is expected to result in minimal additional risk for the GNWT.
•
Eliminating two positions in the department — an economic policy analyst position in the Fiscal Policy Division and a taxation assistant position in the Treasury Division — will save $181,000.
•
Reducing travel and contract budgets and
other administrative expenses will save an additional $122,000.
That concludes my opening remarks. I’d be pleased to answer questions Members may have. Thank you, Mr. Chair.