Mr. Chairman, when we put our business plan together to start looking at where we would go, we highlighted that in ’09–10 we would be identifying a potential $10 million in more revenues.

As well, I’ve highlighted through the Budget Address that we’ll be going out to committee with new revenue option potentials and then to the public for input. We would have to come back with that and look at what areas could be addressed for potential new revenues.

The other side of that, of course, when we go out to the people and businesses of the Northwest Territories, is that new taxes mean a higher cost of living, so we try to come up with that balance. We did identify, when we sat down with Members, to look at new revenues — minimum of $10 million for ’09–10.

Thank you, Minister Roland. Mr.

Beaulieu. Thank you, Mr.

Beaulieu.

Mr. Hawkins.

Thank you, Mr. Chairman. As the Finance Minister knows, one of my chief concerns is the ups and downs in our taxation income, and I certainly hope that’s one of his chief concerns as well. I brought to the front the issue — to him as well as to committee, and it’s in the report and I’m glad to see it there — of a revenue stabilization fund, because when our corporate taxes go up and down, we seem to be in crisis.

We’re in today’s situation, and if we notice this on our corporate tax alone, there’s a $40 million touch that is the difference between Revised Estimates of last year. It could actually be a lot deeper, when we finally do the numbers at large. The fact is that it could be at least $40 million, and it could be as high as $50 million.

Ultimately, the issue is not so much that; it’s how we find a way and a good policy that helps us avoid these types of ups and downs. That led me to my issue of a stabilization fund. Has the Premier put any thought into that, with his staff, the officials over in the Department of Finance, about developing a policy that can help us weather through a few of the drier days before those nice rainy days of lush taxes come in? Has he put any thought in, to that effect? Thank you.

Thank you,

Mr. Hawkins. Minister Roland.

Thank you, Mr. Chairman. We have indeed looked at a revenue stabilization fund. We’ve started to review what options there are and how we can put something together. So we’ve started to put that together. Once we can get enough information together, we’d be prepared to sit down with committee.

Thank you. First, when do you think committee will be able to see something like this? Is this an initiative — just for my clarity — that’s being supported by the Department of Finance, or is it being treated as a reaction of information, just to see the scenario?

Mr. Chairman, the Cabinet has looked at this. When we sat together early on with Members and put our vision and goals together, there was talk of a heritage fund or something of that nature. Cabinet has continued to have that discussion. We would also like to see some sort of program in place that would level off how we look at our resources and how we would need to adjust our expenditure patterns. It is something that has merit, and we’re pulling the pieces together and looking at what options we can start to work on.

I think that’s all fine and good. Just to the last question, as to when you think we could see some discussion paper or policy paper being moved to committee?

Mr. Chairman, I would hope that we could have something for discussion around the time we get together for our fall session.

Thank you, Minister Roland. Mr. Beaulieu.

Thank you, Mr. Chair. I just have a couple of questions on 3-10. The corporate income tax…. There’s probably a simple explanation, but I’m curious about the drop of $40

million in

corporate income tax and also the increase of $15 million in the personal income tax.

Also, the investment interest seems to be fairly volatile, moving from $14 million in actuals down to $200,000, back to $5

million, then over to

$4 million. I wouldn’t mind an explanation of some of those numbers. Thank you.

Thank you,

Mr. Beaulieu. Minister Roland.

Thank you, Mr. Chairman. The Member spoke of corporate tax, personal income tax and the investment interest changes. Hopefully, we’ve got it all, and I

will have

Ms. Melhorn give the detail on some of the changes that occurred.

What we find from year to year is we have to make adjustments, either for overpayment in previous years or underpayment. Those adjustments are recorded through this or changes on how we have to account for things. For the actual detail, I’ll go to Ms. Melhorn.

Thank you, Minister Roland. Ms. Melhorn.

Thank you,

Ms.

Melhorn. We’re on page 3-10, Department

Summary, Revenue Summary. Are there any questions? Agreed?

Department of Finance, Department Summary,

Revenue Summary, approved.

Moving along to page 3-13, Activity Summary, Directorate, Operations Expenditure Summary: $1.475 million. Agreed?

Department of Finance, Activity Summary,

Directorate, Operations Expenditure Summary: $1.475 million, approved.

Page 3-14,

information item, Directorate, Active Positions. Agreed?

Department of Finance, Activity Summary,

Directorate, Active Positions, information item (page 3-14), approved.

Page 3-15,

information item, Directorate, Active Positions. Agreed?

Department of Finance, Activity Summary,

Directorate, Active Positions, information item (page 3-15), approved.

Page 3-17, Activity Summary, Treasury, Operations Expenditure Summary. Mr. Bromley.

Thank you, Mr. Chairman. I noticed in the opening remarks of the Premier and on the next page regarding insurance premiums that we’ve managed to save $475,000 there. We did this by dropping the coverage that we have for bridges owned by GNWT. I can’t help but make note of the news in the last few days. I’m sure people have heard about the flash flood in Pangniqtuuq that took out two absolutely critical bridges as well as ten metres of permafrost right down to the bedrock. There was considerable damage. It will be tens of millions of dollars in Pangnirtung. It cut off their supply of water and their access to the sewage system, so their sewage is now having to be dumped into the ocean. It’s been declared an emergency and so on.

I just want to highlight that this is the sort of thing that can happen nowadays much more than it used to. It’s not something I’m happy to report on, but it highlights to me the need to think with these possibilities in mind. I’m wondering whether the department has considered these sorts of things in their decision-making and, if not, if there is a way that that can enter into it and that they can get some expert advice on that.

A lot of these things are not predictable, but they are the sorts of things that can happen and are becoming increasingly predictable.

Thank you,

Mr. Bromley. Mr. Roland.

Thank you, Mr. Chairman. To the area of insurance premiums we have paid a fair bit of attention over the years. When the industry was hit hard quite a number of years ago, we found the rates went up rather high, so we had to look at the level of insurance we had. When we did make some changes, we also put into place a risk management area as well as looking at our insurance piece. We do deal with insurance experts in looking at our assets and the mix we have and the level of insurance we carry. We do work with them in coming up with a plan as to what level of insurance we would put in place. We do work with experts in the field.

I’m happy to hear that. I appreciate those comments. Of course, the major reason for the increase in insurance rates has been climate change. It’s raised their expenditures an order of magnitude. Unfortunately, a trend is continuing in the same direction, but I’m glad to hear that the Minister is getting expert advice in this area. I’m happy to hear that this filter will be on all decisions made so that we can be sure to avoid the significant costs that Nunavut is now facing.