This is page numbers 4225 – 4252 of the Hansard for the 17th Assembly, 5th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was public.

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Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Madam Chair. I do have a motion. I move that the Department of Finance undertake the necessary audits and investigations required to ensure that revenues from self-reporting taxes are fully maximized and that the department report back to the Standing Committee on Government Operations with respect to its findings by August 31, 2014.

Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Dolynny. The motion is in order. To the motion. Mr. Dolynny.

Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Madam Chair. Well, it should be no surprise to the Cabinet and the Members in this room my continued journey on putting a lens on what I refer to as one of the largest loopholes in our taxation collection, I think, in modern history that we deal with in the Northwest Territories.

This loophole, this self-reporting loophole is exactly what it is. It’s a loophole. This self-reporting aspect

is rarely monitored by government. We don’t have enough investigators to do the audits, and clearly, when audits are done, miraculously, money is found. This motion clearly sets the stage and the concern not only as one Member has but a number of Members have. This is a committee motion and so I hope that this will put a little bit more lens on the subject. The fact remains, within the audited statements of public accounts there was, indeed, a $1.7 million shortfall in tobacco tax collection alone in the fiscal year. This is an 11.2 percent drop in tax collection with very little explanation, very little data, and very little statistical data to support why there was a drop.

There was some degree of discussion here in the House recently about it with the Minister of Finance and I believe that there is work being done. However, that being said, this motion is very clear, and this motion is very specific not only to tobacco but all self-reporting taxes including such things as fuel tax, as well, which also had a fairly substantial delta in returns from the main estimates. Those are my comments.

Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Dolynny. To the motion.

Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Question.

Committee Motion 33-17(5): Maximizing Revenues From Self-Reporting Taxes, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Question is being called. The motion is carried.

---Carried

Mr. Dolynny.

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Madam Chair. I have a motion. I move that, in future, the public accounts include a detailed explanation of how the Government of the Northwest Territories has performed for that fiscal year in relation to the Fiscal Responsibility Policy.

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Dolynny. The motion is in order. To the motion. Mr. Dolynny.

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Madam Chair. As I mentioned in my earlier comments today here, the Fiscal Responsibility Policy is very specific in how it deals with surplus, and clearly, this government has had surplus in years past, in some cases we’ve had substantial surplus, and that surplus has to follow within their own policy called the Fiscal Responsibility Policy, which states 50 percent of that is put into operation surpluses for infrastructure and 50 percent, roughly, goes back to short-term and long-term borrowing. I’m just kind of summarizing it in basic terms.

The concern committee had is we don’t know roughly where that surplus is indeed applicable, because the term of debt becomes the question. Is this debt new debt? Is this new debt for infrastructure or is this old debt, and are we actually physically paying down old debt which would really, when you look at the framework around the policy, it is definitely leading credence to. So committee had a grave concern as to whether or not this policy is as transparent as it can be. Quite frankly, that is the question at hand within the motion. We’re hoping that with future public accounts that the Fiscal Responsibility Policy is clearly articulated within the public accounts or in an addendum to which will actually break down what indeed is done with that surplus and how it is spent. Thank you, Madam Chair.

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Dolynny. To the motion.

Some Hon. Members

Question.

The Chair

The Chair Jane Groenewegen

Question is being called. The motion is carried.

---Carried

Mr. Moses.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

March 5th, 2014

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Madam Chair. I have a motion as well. I move that the Government of the Northwest Territories review its accounts receivable from Nunavut, the purpose of this review being to develop targets and measures to improve collections, and to identify and write off those debts that are deemed to be uncollectible. Thank you, Madam Chair.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Moses. The motion is in order. To the motion. Mr. Moses.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Madam Chair. Just before I begin, I too would like to thank the committee for all the hard work within the public accounts portfolio. Being this is the second time that we’ve moved forward in public accounts receivable, I just want to make note that again this year the standing committee noted with concern the substantial amount of money owing in accounts receivable from the Government of Nunavut. While this figure has decreased from close to $10 million in 2011-2012 to $7.78 million this year, the committee reiterates its concern that maintaining such a large interest-free receivable has cost implications for the GNWT in that the government may have to borrow and pay interest on additional funds for its own needs in addition to the loss of potential interest revenue.

The committee was encouraged last year that the government was reviewing its interest rate policy for other jurisdictions, with a view to perhaps charging Nunavut interest on individual items. The committee is far less encouraged this year to hear the comptroller general acknowledge that this account receivable is costing the GNWT money but that it’s not a common practice to charge interest to other jurisdictions, therefore bringing this motion forward, Madam Chair. Thank you.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Moses. To the motion.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Question.

Committee Motion 35-17(5): Review Of Nunavut Accounts Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Question is being called. The motion is carried.

---Carried

Mr. Moses.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Madam Chair. I move that the Government of the Northwest Territories monitor its loans receivable and develop targets and measures to improve collections, with a view to reducing the allowance for doubtful accounts to less than 30 percent. Thank you, Madam Chair.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Moses. The motion is in order. To the motion. Mr. Moses.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Madam Chair. The allowance for doubtful accounts is an estimate of the amount of accounts receivable upon which the GNWT does not expect to collect. In 2012-2013 allowance was about 41.4 percent of total loans receivable. In 2011-12 it was about 38.45 percent of the total loans receivable. The year prior it was approximately 30 percent.

The committee sees that this is a concern with the incremental increases over the years and wants to try to address that before next year gets a little bit higher. We want to make sure this government does the right thing in terms of monitoring it and setting targets and measures to improve these collections and do it sooner than later. Thank you, Madam Chair.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Moses. To the motion. Mr. Dolynny.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Madam Chair. I think Member Moses summarized it quite eloquently. I just need a few points to add to this motion.

What we’re referring to in this motion is hopefully setting up more of a target base approach for loans receivable. If we look at the history of this government, we were collecting literally at one point

in time I call it 70-cent dollars, and that number has dwindled from 2011 to 2013 to about 60-cent dollars on our doubtful loans. This is a bit problematic. Losing 10 cents on the dollar really, in essence, will be significant in the long run.

Good accounting principles, public accounting principles clearly state that targets should be achieved within this type of framework, and I believe this motion speaks to good accounting practices. So I’m hoping that this motion does echo that and we’re hoping that this motion does reflect for future public accounts that the government of the day will set the appropriate targets for loans receivable. Thank you.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Dolynny. To the motion.

Committee Motion 36-17(5): Improving Collections Of Loans Receivable, Carried
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Question.