Thank you, Mr. Chairman. I’d like to thank the Minister for his comments.
Members of the Standing Committee on Government Operations met with the Minister of
Finance on April 1, 2008, to review the Draft Main Estimates for the Department of Finance.
Committee members made note that the department is proposing to spend $10.959 million in operation expenses for the fiscal year 2008–2009.
Committee members offer the following comments and issues arising out of the review of the 2008–2009 Draft Main Estimates.
Revenue Increase and Stabilization
Committee members found that in order to create long-term financial stability for the Northwest Territories, the government should not only look at reducing costs but also explore options for revenue increases.
The committee suggested that the Minister look into the following options:
•
The creation of a Heritage Trust Fund that
would allow for progress in the negotiations about resource revenue sharing. Such a Heritage Trust Fund would generate savings for future generations. The GNWT could also transfer portions of potential future surpluses into this trust. Trust fund models to be considered for this undertaking would be Norway and Alaska.
•
Other members felt that the fluctuations in
adjustment for the GNWT’s revenues are too high and suggested the creation of a revenue stabilization fund. The goal of such a fund is to offset fluctuations in GNWT revenues from Canada; namely, grants, transfer payments, corporate income tax and personal income tax.
•
The committee also encouraged the
government to look into alternative means to generate revenue, like taxation of minerals and resources, the introduction of a carbon tax or changes to the fuel tax administration.
The committee hopes that alternatives and new initiatives for revenue generation will be presented during the next business planning cycle.
Operational Review of the Liquor Licensing Board and the Liquor Commission
During the review of the Liquor Revolving Fund, members discussed the operation of the Liquor Commission and the Liquor Licensing Board. Members suggested that the GNWT should explore options to make the operations more efficient and should consider alternative means for liquor control, licensing, distribution and sales.
Recommendation
The Standing Committee on Government Operations recommends that the government undertake a functional review of the operations of the Liquor Commission and the Liquor Licensing Board.
Those conclude the comments of the Government Operations Committee. I’d like to thank the Minister for meeting with us in April, as well as his staff. I’d also like to thank our researcher, Regina Pfeifer, and our clerk, Patricia Russell. Thank you very much.