Is it safe to say that the grants and contribution transfers – we heard the number $15 million – is just a book entry until such time as the money starts flowing in a year from now or two years from now? Is this is a book entry? Thank you, Mr. Chair.

Thank you, Mr. Dolynny. Deputy Minister Aumond.

So just to be clear, is it a 25 percent model or is it a $15 million dollar model that is being accrued? I ask this with a caveat. Let’s say we have $130 million of resource revenues, what is the deciding factor? Is it the percentage or is it actually a fixed dollar that is being accrued?

Thank you, Mr. Dolynny. Mr. Miltenberger.

Thank you, Mr. Chairman. It’s the percentage.

No further questions.

Thank you, Mr. Dolynny. Next on my list, Mr. Bromley.

Thanks, Mr. Chair. I’m just wondering: with respect to the cost of living tax credit, is that related to the payroll tax and, if so, how and do they work together? Thank you.

Thank you, Mr. Bromley. Deputy Minister Aumond.

Thank you, deputy minister. Mr. Bromley, could you finish the question? Thank you.

Yes, thanks. Sorry. The question was: How are they related and how do they work together? Thank you.

How would that vary? Just on that, has the department… We obviously need revenue. This government needs revenue; I don’t think anybody questions that. Payroll tax, based on information provided by the Minister, is providing significant funds, some of which we lose through this cost of living tax credit, but it still leaves significant dollars. I believe it was increased from 1 percent originally to 2 percent. Given our situation

where we have so many migrant workers who live somewhere else and work here and take their dollars away so that there are very few benefits, this is the only opportunity we have that I know of. What’s the consideration for raising this from 2 percent to 4 percent or 5 percent?

Thank you, Mr. Bromley. Minister Miltenberger.

Thank you, Mr. Chairman. For the purpose of this budget, we have come forward with a budget that it stays at the 2 percent. Is there a debate that could be had next budget go around to talk about the efficacy of raising it, how does that work, what kind of additional revenue would it generate? That’s a discussion that we could have, but for this budget we’ve left it at 2 percent. Thank you.

Many Members have recommended that this be raised. Why was it not raised in this budget?

Mr. Chairman, upon review and reflection, the decision was to not raise taxes except for the modest increase we put on to loose tobacco at this point. Looking after our expenditures, managing to live within our revenues and budget for the additional revenue that we look to get through the Resource Revenue Sharing Agreement. Thank you.

I hope I would have your support to get an answer here. I know what the decision was, obviously. It’s represented in the budget here. I’m asking why. What was the thinking? What was the assessment of increases in the payroll tax? What were the barriers? Why didn’t we go there?

This is not the first year that this has been raised. This has been raised repeatedly during my short career as a politician, so I’m looking to find out why we are not taking advantage of this apparent real opportunity to increase our revenue when we so very clearly need revenue, as the Minister has said. Thank you.

Thank you, Mr. Bromley. We’ll go to Deputy Minister Aumond.

Thank you. I think that’s the reason why we went to a payroll tax is because we can’t just tax people that live somewhere else and fly in and out. That’s why we went to the payroll tax and that’s why we have this cost of living tax credit as you’ve just explained.

Why couldn’t we simply increase the tax and increase the cost of living tax credit to protect residents?

Thank you, Mr. Bromley. Minister Miltenberger.