This is page numbers 837-874 of the Hansard for the 18th Assembly, 2nd 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 communities.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you, Mr. Chair. So the main reason for that decrease is because of Snap Lake ongoing care and maintenance, so it no longer pays the property tax. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thank you, Mr. Chair. So, even though the property is not in production, they still have all their assets there, the valuation of the assets have changed because they're not in production? I understood that property taxes were assessed based on your assets on the ground, not whether the facility is operating or not. Could I just ask whether that assumption is correct? Thanks, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you, Mr. Chair. So the value of the property tax is based on the assessed value of the parcel, so, because the mine is now on care and maintenance, the property tax is accordingly lower than what it was when it is in operation. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. It's interesting. I just don't understand why the -- all the same assets are there, some of them may not be used, why they're not valued at the same rate. But I'll accept the information as presented. It just seems rather strange to me.

The other question I have is about corporate income tax. We have wildly fluctuating amounts here. Last year the predicted revenue was $40 million, but only $25 million came in. This year the projection is for $60 million. Can the department tell me why these numbers keep going up and down and what we're doing to try to stabilize revenues from corporate income tax? Thanks, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you, Mr. Chair. So the Member is right. The corporate income tax is a very hard number to predict. One of the main reasons is we have a few large corporations paying a bulk of our tax and those corporations have options available to them to either carry losses back or move their tax or just pay -- some other avenues that they could take. Now, one of the things that we're doing to try to reduce the amount of variation is try to -- we're, starting in 2014, is we went to a five-year average of our corporate tax, and, hopefully, once we fully implement that, we'll see less variation in the corporate tax revenue projections. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. That sounds like a good way of increasing the predictability. I was also hoping, though, that the department might be looking at other forms of taxation, like a capital asset -- or capital investment tax and so on to try to have a more stable source of revenue, but I think that's a debate for another day.

I have one other question about taxation. I was at a meeting recently with the Yellowknife Health and Social Services Authority, and people there raised the issue of a tax on sugary drinks and noted that, in Mexico, when such a tax was brought in, it reduced consumption by 15 per cent. Is this something that the Department of Finance is looking into or prepared to look into? Thanks, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Yes, thank you, Mr. Chair. Mr. Chair, it's not something that we are looking at, at the moment. However, having said that, we are going into business plans in September. We have three weeks, I believe, with business plans. There'll be opportunity there for us to have that discussion with Members on a way forward. We look forward to having that discussion because we have seen some of the numbers that the Member references. So we'll have that discussion with Regular Members when we go through our business plans in September, and we'll plan a course of action from there. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

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

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. I look forward to having that discussion, as it is not so much raising the revenues. I think we want to look at trying to promote a healthier lifestyle and providing some incentives for folks to do that. I look forward to that discussion the next business plans. Thanks, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you Mr. O'Reilly. Minister McLeod.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

The Member made more of a comment. But we, as well, look forward to having that discussion. I can see where he is coming from. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister McLeod. Any further questions on page 138? Mr. Vanthuyne.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Cory Vanthuyne

Cory Vanthuyne Yellowknife North

Thank you, Mr. Chairman. I wonder if the department or the Minister could give us a little bit more detail and explanation on the line item of the investment interest. It appears over the last couple of years that it has been decreasing. So maybe an explanation on what it is and what we are invested in and why this seems to be decreasing over the last couple of years? Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Vanthuyne. Minister McLeod. Mr. Kalgutkar.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you, Mr. Chair. There are two elements to that revenue stream. Number one is when the GNWT gets its first tranche of cash from the federal government in terms of its grant revenue. It is in a cash surplus position for a couple of months, so we are earning some interest off that cash. We start to advance through the year, we enter into a cash deficit position, so that is why you see a declining investment revenue amount. Another element of that is some of our public agencies also have surplus cash that we hold in a pool. We also earn interest off that cash as well. So that is what is driving that. The reason it is decreasing is we just have, obviously, less money in the bank for a shorter period of time, so we are earning less interest revenue off it. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Kalgutkar. Any further questions, committee, on page 138, information item? I see none. We move to page 139, active position summary, information item. Any questions? Are we agreed?

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Agreed.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Brings us back to page 137. Finance, bureau of statistics, operations expenditure summary, activity total, $1,002,000. We will also defer this and move on to page 142. Active positions, information item. Any questions? I see none. Back to page 141. Bureau of Statistics, operations expenditure summary, total activity, $1,002,000. Are we agreed?

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Agreed.