Thank you, Committee. I want to thank Mr. Speaker and his witnesses for appearing before us. Sergeant-at-Arms, you may escort the witnesses from the Chamber. The committee will continue our consideration of the Main Estimates. We have agreed to consider the Department of Finance. Does the Minister of Finance have any opening remarks?

Yes, I do, Mr. Chair.

Mr. Chair, I am pleased to present the 2016-2017 Main Estimates for the Department of Finance. Overall, the department estimates total $213.9 million. This total includes:

● operating contributions of $81.7 million to the NWT Housing Corporation.

● $7.5 million to the NWT Hydro Corporation to offset additional diesel costs related to the low water on the Snare Hydro System.

● Overall the department's estimates propose an increase of $2.6 million or 1.2 per cent above the 2015-2016 Main Estimates.

These estimates continue to support the objectives of limiting expenditure growth in order to sustain the long-term sustainability of the fiscal framework. Highlights of the proposed estimates include:

● an increase of $1.2 million to upgrade the government financial accounting and HR system, SAM and PeopleSoft;

● an increase in contribution funding of $9.7 million, comprised of 7.5 million to NT Hydro and 2.2 million to the NWT Housing Corporation;

● forced growth of $500,000 related to maintaining the government's software licences.

These increases are offset by reductions totalling $8.8 million, $5.8 million in sunsets, and $3 million through staff reductions and efficiencies gained through divisional amalgamations.

The proposed Department of Finance estimates continue to support the priorities of the 18thLegislative Assembly and continue to advance initiatives that will support the sustainability of our territory for future generations. Specific activities in support of these priorities include:

● maintaining a fiscal regime that facilitates economic growth while supporting social and environmental goals;

● providing the necessary financial information based on sound fiscal analysis to support government policy development and decision making;

● overseeing the management and protection of the government information resources;

● ensuring that the programs and services delivered by Finance are responsive to client needs by continuing to implement more efficient and effective operational practices;

● ensuring that amalgamated financial and employee-shared services provide client-centric, value-added, efficient, timely, and accurate services with strong internal controls to external and internal stakeholders;

● ensuring that these services reflect leading practices in shared-service delivery such as electronic approvals rather than inefficient and costly paper-based approaches;

● maintaining a financially transparent and accountable government so there is public confidence in the prudence and integrity of the government operations.

I would also like to highlight that page 15 of the 2016-2017 Main Estimates outlines the borrowing plan for the government. This plan proposes to establish a total borrowing limit of $610,340,000, which is comprised of the following:

● short-term debt less than 365 days, $377 million;

● long-term debt over 365 days, $231,024 million. I almost made that "billions."

---Laughter

● Capital leases, $2,316 million.

The limits proposed in the borrowing plan will be included in the Appropriation Act (Operations Expenditures), 2016-2017. That concludes my opening remarks, Mr. Chair. Thank you.

Thank you, Minister McLeod. Does the Minister of Finance wish to bring witnesses into the House?

I would, Mr. Chair. Thank you.

Thank you. Sergeant-at-Arms, please escort the witnesses into the Chamber. Would the Minister please introduce the witnesses.

Thank you, Mr. Chair. Mr. Chair, to my right I have Mr. Sandy Kalgutkar, who is the deputy secretary to the Financial Management Board. To my left I have David Heffernan, who is our chief information officer. Thank you, Mr. Chair.

Thank you. As part of your consideration of the Department of Finance, committee will consider the government's borrowing plan, but it will defer that for the moment. Committee will also defer the departmental summary and review the estimates by activity summary beginning on page 137 with the Department of Finance departmental total $213,904,000. Committee will defer this page and continue with 138, revenue summary, information item. Any questions? Mr. O'Reilly.

Thanks, Mr. Chair. Under the taxation list here, there's a bunch of revenue coming in and there's a couple of trends I'm just wondering about here. Personal income tax has been higher back in 2014-15, but the projection here is that it will continue to increase, even though we're in tough economic times, so the personal income tax is increasing, but, payroll taxes, the projection is that there's going to be a decrease. I'm just wondering if someone from the department can explain these two contrasting trends? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister McLeod.

Thank you, Mr. Chair. I will refer that to Mr. Kalgutkar. Thank you.

Thank you. Mr. Kalgutkar.

Thank you, Mr. Kalgutkar. Any further questions? Mr. O'Reilly.

Thanks, Mr. Chair. I think we should be increasing our revenues, period. But I'm trying to understand why in the personal income tax there's a projection for an increase, but at payroll tax we're actually projecting a decrease. So I'm just trying to understand why there's those two different trends happening in the projections? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Mr. Kalgutkar.

Thank you, Mr. Kalgutkar. Any further questions? Mr. O'Reilly.

Thanks, Mr. Chair. Sorry, I just didn't hear the last few words about why the payroll tax projections show a decrease in revenues. Thanks, Mr. Chair.

Thank you. Mr. Kalgutkar.

Thank you, Mr. Kalgutkar. Mr. O'Reilly.

Thanks, Mr. Chair. There's also a decrease, a substantive one, here, $5 million in property taxes and school levies that's projected. Can the department explain that decrease in revenues? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Mr. Kalgutkar.