Mr. Speaker, I would like to ask the Minister if Cabinet examined the negative impact on the cost of living and employment of our citizens as far as looking at other jurisdictions to determine whether additional taxing is the way to go.

Mr. Speaker, that’s part and parcel of the work that’s currently underway. We’re going to be bringing forward a package on the next phase of reductions. We’re going to be bringing forward a package that deals with the revenue options, both bringing people into the North and growing the economy, as well as looking at those areas where increased taxes may be advantageous.

Thank you, Mr. Miltenberger. The honourable Member for Great Slave, Mr. Abernethy.

Thank you, Mr. Speaker. Earlier today my colleague from Hay River South mentioned the application for a rate increase that the NWT Housing Corporation has put forward to the Public Utilities Board. My question is for the Premier.

Given that the rate increase, if it does in fact occur, will actually increase the cost of living for every resident of the Northwest Territories, I’m curious whether or not bonuses have been provided to the senior managers of the NWT Housing Corporation for the 2007–08 fiscal year.

Oh, I meant Power Corporation.

Thank you, Mr. Abernethy. The Hon. Premier, Mr. Roland.

Thank you, Mr. Speaker. The NWT Power Corporation has indeed filed an application to the PUB for rate riders to deal with the cost pressures around fuel to deliver the services. The board operates at arm’s length from this Assembly through the NWT Power Corporation Act. They have gone out to seek outside sources to

look at the method of bonus or merit pay that they would deal with, and they’ve come back with an area…. I believe they’re in the process of finalizing what and who would qualify.

Thank you, Mr. Roland. The honourable Member for Kam Lake, Mr. Ramsay.

Thank you, Mr. Ramsay. The honourable Minister of Finance, Mr. Miltenberger.

Thank you, Mr. Speaker. I believe that work has been done, looking at, if not getting rid of income tax completely, a type of flat tax. I can commit to share that information with the Member and with committees.

I think it’s creative things like that that we need to look at. We need to be attracting people here, and we need to be competitive. So we need to be looking at everything.

One of the things I was hoping to ask the Minister today, and I think he’s heard it loud and clear…. There’s no appetite, whether in Yellowknife, Inuvik, Fort Smith or Hay River for that matter, for tax increases that are going to add to the cost of living here in the Northwest Territories. There’s absolutely no appetite for it. It’s already expensive enough to live here.

I’m wondering if the Minister could commit to taking the proposed initiatives that will increase the cost of living for our residents and putting them on the shelves for the time being. Let’s start discussing some other options. Those ones have no place here.

What we have in the North is a very high level of service by this government with some of the best programs, I believe, in the country, be it for seniors, health, the SFA or some of our housing programs.

The question is, it’s not just taxes. The issue is the type of government we want and we think we can afford. What are we prepared to pay to have that government and those types of services? Very

clearly, we’re going to come forward with all the work we’re undertaking right now. There will be a full chance for committee to engage in the discussion. We’re doing the preparatory work to get all that pulled together. As we move into the business planning process, I’ll be coming forward with all that work so we can have the full discussion.

At this point I think we have to keep our options on the table, both with reductions and revenue options, which include growing the territory and the economy as well as possible tax considerations.

Mr. Speaker, I agree with the Minister of Finance, but I think if we’re going to have an overall view of everything, we need to have all of our cards on the table. Until the government goes out and does the analysis of our spending government-wide, we won’t be able to do that. Today we don’t know the value of the dollars we are spending. That type of analysis hasn’t been done. Until it’s done, I’m not sure what we’re going to gain by going through this process, or any other process for that matter, budget to budget, unless we get a handle on where we’re spending our money and how effective every dollar is that we’re spending. We need to do that level of analysis.

Like I said, it doesn’t have to happen overnight. It could be one or two departments a year. We have to start somewhere in order to make a difference, and I’d like to see that happen.

I appreciate the Member’s concern. We have committed to and the Assembly has voted money for a process that we are now undertaking. The plans have been laid out. We’re prepared to work with committee to make sure they’re the best plans possible.

I’d also point out that every year this Assembly, through the work of the committees and the government, votes a budget. If this Assembly makes determinations that the government is too big or that there are changes needed, then the authority to make those changes is here.

We came forward with a number of options last year. There was significant debate. We’ve regrouped. We’re going to come forward with another package geared to those reductions. As well, we’re going to come back with other options in terms of revenue.

This Assembly has the authority in this hall to make those decisions. If the determination is made that we’re going to shrink government by 25 per cent or we’re going to make a decision, then that’s the way our institutions are set up. We’re bringing forward our best work here to say that this is what we need to have a sustainable government. We’re looking forward to working with committee and Members to in fact achieve that goal.

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

Thank you, Mr. Speaker. Again, I think the Minister is correct in what he’s saying, but I just have to say what we saw last budget session. That happened because of haphazard cost cutting measures government-wide. There was no rhyme or reason to what happened in February.

I’m saying something needs to happen so that level of analysis, the detailed information, does take place so we can all make decisions collectively. I just didn’t see that happening. When you just hand it over to your DMs and tell them to cut $6 million in this department, $7 million in that department, you’re just going to get back the product they want you to get back. There’s no political direction there. So I think we need to take the reins back.

I’d like to ask the Minister again: will he commit to some type of zero based spending review government-wide? It doesn’t have to be every government department today, but we have to start somewhere.

Mr. Speaker, that commitment has already been made. There’s a program review that’s been set up. There’s been money voted for their operation. We’ve laid out the work plans, the terms of reference for the committee. We’ve committed to working with committee to lay out the planning and engagement so they, along with Cabinet, have an oversight role to play.

As the Member indicated, that’s a process that’s going to take time. This is a large, complex organization with many, many component pieces. In the meantime we have another business planning process cycle now upon us. We’re going to be doing capital. We’re going to be moving into the business planning process. We’re going to be coming forward with further suggestions on what the government is proposing in terms of reductions and revenue options. Clearly, we’re going to have to work through this process as we wait for this program review process to kick into gear. We can’t wait, so between us we’re going to have to come up with a way to have a sustainable government.

Thank you, Mr. Miltenberger. The honourable Member for Weledeh, Mr. Bromley.

Thank you, Mr. Speaker. My question is on some of the statements in the sessional statement presented by our Premier. I’d like to start by briefly saying that we want to “develop our vast oil and natural gas resources as

soon as possible to the maximum benefit of Northerners.”

To me this is an absolute oxymoron; this is the definition of an oxymoron. They do not go together. We have no ability to levy royalties and so on. Can the Premier explain to me where he sees the truth in that statement?

Thank you, Mr. Bromley. The Hon. Premier, Mr. Roland.

I am taking a big breath, Mr. Speaker. The Member is asking where the truth is in the statement. I don’t know where he’s heading with that. He has his own beliefs as to where we should go as a government, and my stance is on positions I put forward.

Mr. Speaker, the fact is that our economy and the heating of our homes in the present day require resources. We have those resources in the Northwest Territories. In fact, we have resources that would help the climate change initiative if we were to switch to alternative natural gas instead of home heating oil, for example, and diesel fuel for generation of electricity through power plants.

When you look at the opportunities that come with that and the opportunities that the aboriginal business corporations are involved with now and want to be involved with…. They’re looking to take part in activities that would see development in the Northwest Territories.

Yes, as a government we need to also take the necessary steps, and we are. We will be coming forward with the business plans with a significant investment package that would see us start investing in alternatives rather than maintaining the status quo. We’re starting to do that, but we do live in an environment that requires resources. The world is hungry for them, and we need revenues to operate government programs. If we can’t reduce, we can’t tax people. We need economic development, and we have that potential in the North. That’s simply what’s being stated.

To me that clearly shows a lack of understanding about what the costs are of these sorts of developments when we do not have the ability to levy the taxes and the oil fees that we require to get those benefits.

I ask the Premier: given the rate at which we’re mining our diamonds and shipping them out of the Northwest Territories, and along with that the labour to develop that and so on, does the Premier think we’re getting maximum benefit from our current mining of diamonds and the complete using up of this resource as fast as we can?