Tabling of documents. Minister of Municipal and Community Affairs.

Mr. Speaker, I wish to table the following document entitled "Follow-up Letter for Oral Question 403-18(2): Seniors Sport and Recreation Program Funding." Thank you, Mr. Speaker.

Masi. Tabling of documents. Item 15, notices of motion. Item 16, notices of motion for first reading of bills. Item 17, motions. Item 18, first reading of bills. Minister of Justice.

Mr. Speaker, I move, seconded by the honourable Member for Hay River South, that Bill 24, An Act to Amend the Coroner's Act, be read for the first time. Thank you, Mr. Speaker.

Masi. The motion is on the floor. All those in favour? All those opposed?

---Carried

Bill 24 has had its first reading. First reading of Bills. Minister of Justice.

Mr. Speaker, I move, seconded by the honourable Member for Hay River South, that Bill 25, An Act to Amend the Residential Tenancies Act, be read for the first time. Thank you, Mr. Speaker.

Masi. The motion is in order. All those in favour? All those opposed?

---Carried

Bill 25 has had its first reading. First reading of bills. Minister of Infrastructure.

The motion is in order. All those in favour? All those opposed?

---Carried

Bill 26 has had its first reading. First reading of bills. Item 19, second reading of bills. Item 20, consideration of Committee of the Whole of bills and other matters. Bill 17, An Act to Amend the Income Tax Act, with the Member for Hay River North in the Chair.

I will now call Committee of the Whole to order. What is the wish of committee? Mr. Testart.

Thank you very much, Mr. Chair. Good to see you back. Committee wishes to consider Bill 17, An Act to Amend the Income Tax Act. Thank you.

Thank you, Mr. Testart. Does committee agree?

Thank you, committee. We will consider the act after a short recess.

---SHORT RECESS

I will now call the Committee of the Whole back to order. Committee, we have agreed to consider Bill 17, An Act to Amend the Income Tax Act. I will ask the Minister responsible for the bill to introduce it. Minister McLeod.

Thank you, Mr. Chair. We thank you for the opportunity to present Bill 17, An Act to Amend the Income Tax Act, to the Committee of the Whole. This bill responds to our commitment approved in the 2016-2017 budget to provide further financial assistance to low and modest-income families to raise their children through an enhancement to the Northwest Territories Child Benefit.

The amendments to the NWT Income Tax Act will allow us to enhance the NWT Child Benefit by providing a total of $2.2 million in direct support for children in families with annual income up to $80,000. This enhanced program supports a number of priorities in the 18th Legislative Assembly's mandate, including lowering the cost of living, fostering healthy families, and supporting the well-being of children so that they can develop to their full potential.

The new benefit amounts start at $815 for the first child under six and $652 for the first child six years of age and older. This per-child benefit is reduced for each additional child and as family income increases, but will provide benefits for children to every family with income under $80,000. This is a significant enhancement to the current program that completely eliminates benefits as early as $41,000 in annual income for a one-child family and $61,000 in annual income for a five-child family.

Bill 17 also includes the following technical amendments to the Income Tax Act to:

● incorporate provisions of the federal Income Tax Act on withholding of tax refund;

● update names of federal agencies;

● remove duplication of the Consumer Price Index determination;

● apply the federal penalty provisions for false statements, omissions, or gross negligence to the NWT Child Benefit program;

● eliminate the territorial Overseas Employment Tax Credit; and

● remove reference to the federal Education Tax Credit. Thank you, Mr. Chair.

Thank you, Minister McLeod. I will now turn to the Chair of the Standing Committee on Government Operations. The committee can consider the bill for any opening comments he may have. Mr. Testart.

Thank you, Mr. Chair. Mr. Chair, the Standing Committee on Government Operations concluded its review of Bill 17, An Act to Amend the Income Tax Act, on April 6, 2017, for the public hearing held here in the Legislative Assembly building. The bill amends the Income Tax Act by facilitating the provision of additional financial support to low- and modest-income families by:

● adjusting the formula for the NWT Child Benefit;

● incorporate provisions of the federal Income Tax Act that relate to the withholding of tax refunds;

● updating the names of some federal agencies;

● clarifying the definition of the Consumer Price Index;

● applying federal penalty provisions relating to false statements, omissions, or gross negligence in income tax returns;

● eliminating the Overseas Employment Tax Credit; and

● retaining the Education Tax Credit.

Members may have additional comments or questions as we proceed with the consideration of this bill. Thank you, Mr. Chair.

Thank you, Mr. Testart. Minister, would you like to bring witnesses into the Chamber?

Yes, I would, Mr. Chair.

Thank you. Sergeant-at-Arms, please escort the witnesses to the Chamber. Minister, would you please introduce your witnesses to the Chamber.

Thank you, Mr. Chair.

Mr. Chair, to my right, I have Mr. David Stewart, deputy minister of Finance, and to my left, I have Mr. Ian Rennie, who is the legislative counsel.

Thank you, Minister. I will now open the floor to general comments on Bill 17. Any general comments? Mr. Testart.

Thank you, Mr. Chair. I want to state my strong support for this bill. I think that it creates a very effective way to support modest- to low-income families through the enhanced NWT Child Benefit. It's a very progressive piece of government policy. It's income-tested and it's going to apply to I think the total number is 2,000 families after it is implemented. The only regret I have is that it's not a mandate commitment, and I believe it should be. It directly speaks to our support for lowering the cost of living. It directly speaks to our support for families in need. It's a very good piece.

The other parts of the bill, although less significant, are certainly required in order to modernize the legislation and update it vis-a-vis federal statutes. The committee did take its time to properly understand the NWT Child Benefit. There was a bit of confusion on how the bill was initially presented, but I'd like to also thank the department for taking the time to work with us to clearly express our concerns around how this bill was going to roll out.

I think the Minister, again, is deserving of some praise for effectively communicating both the policy objectives and the funding for this very important measure to alleviate poverty and give Northerners a leg up. With that, I will close my comments. Again, I state my very strong support for this bill. Thank you.