[English translation not provided.]

Good afternoon, my friends. Given the difficult economic times we are currently in, more people in the Northwest Territories may find themselves in financial difficulty which could lead to declaring bankruptcy.

In bankruptcy, some essential assets are exempt in order to allow people to rebuild their lives, and those are defined in law. I took a look at the current NWT legislation that sets out what exemptions people can keep if they do file for bankruptcy. I was surprised at how outdated the NWT legislation is, which came into force in 1948. In reference to livestock, bees, ploughs, the items that have no reflection on what the majority of NWT residents own in this century.

I was also shocked at how low the value of exemption property was in the NWT legislation. The equipment necessary to work is capped at the maximum of $600, including things like a motor vehicle, your principal residence was capped at $3,000. The maximum of household furniture and appliances was $200.

If the intention of the legislation is to provide people with some essential assets so they can rebuild their lives after bankruptcy, then it needs to be updated and reflect the reality of life in the Northwest Territories today.

Exemptions vary among provinces and territories. After division, Nunavut implemented and amended the legislation. The exemption items include tools, vehicles, other equipment used by people for hunting, fishing, trapping, and for gathering of food. The legislation also includes exemptions for medical aids and devices necessary for the health and mobility of disabled people. It also makes some important exemptions of money received under the common experience payments cannot be exempted. In Alberta the exemptions of personal property can get as high as $40,000.

I seek unanimous consent to conclude my statement.

---Unanimous consent granted

In Alberta, the exemptions for personal property can be as high as $40,000 and the maximum exemption of equipment for work is $10,000. These

are exemptions for other jurisdictions. How inadequate our current legislation is facing the reality of what’s happening today. It also shows how vulnerable NWT residents are under this legislation.

The government needs to ensure the residents of the Northwest Territories have updated legislation that reflects the reality and views on exemptions of assets. I urge the Minister and Cabinet to make every effort to implement this legislation and make the amendments necessary so people who do declare bankruptcy can at least rebuild their lives.