This is page numbers 4103 - 4182 of the Hansard for the 18th Assembly, 3rd 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 going.

Topics

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. As Chair of the Standing Committee on Government Operations, the committee has reviewed the legislative proposal and I'll speak to that now. Standing Committee on Government Operations reviewed the legislative proposal 18-6, An Act to Amend the Revolving Funds Act, on April 20th, 2018. The committee understands that the authorized limit of the Liquor Revolving Fund must be increased in order to enable to Liquor Commission to prepare for the impacts associated with the addition of cannabis sales to its operations. Given the tight timelines associated with the review of Bill 6, Cannabis Legalization and Regulation Implementation Act, and the extensive consultation that took place around the Liquor Commission's role in cannabis sales, the committee agreed to forgo the 120-day review period of Bill 19, An Act to Amend the Revolving Funds Act, to enable introduction of the bill during this May sitting. 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

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Are there other general comments from committee? Recognizing Mr. Testart.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. So I'll make use of the time allotted for opening comments to continue with some lines of questions for the Minister. So the increase to the revolving fund is $5.5 million. Can the Minister confirm if that is what's anticipated, the cost of the cannabis supply for the Liquor Commission is around that number or falls within that number? Thank you.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Minister McLeod.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Chair. Mr. Chair, the increase, as I said before, it hasn't been increased since 1990. An external auditor recently recommended an increase to the authorized limit, so this particular amount is not specifically ear-marked for cannabis, though I'm sure, during the operations of the Liquor Commission, that would have an effect on 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

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister McLeod. Mr. Testart.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. So from the committee's review of the legislative proposal, our committee's understanding was that it was to absorb the anticipated cost of cannabis. I hear from the Minister now that that's not in fact the case; it's just more or less a housekeeping amendment to modernize or update the bill since 1990. As the Minister has indicated, this increase could be used for the procurement of cannabis. Can the Minister comment on whether or not a supply agreement has been reached with a cannabis producer? Thank you.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Minister McLeod.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Chair. Mr. Chair, I believe we're in the final stages of negotiating an agreement with a supplier, and once that is finalized, we will give committee a heads up. 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

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister McLeod. Mr. Testart.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. Can the Minister answer how much of the fund was being utilized by liquor procurement? Thank you.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Minister McLeod.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Yes, thank you, Mr. Chair. Mr. Chair, at this particular point, all of it is being used to account for past growth in the operations of the Liquor Commission. 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

Page 4141

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister McLeod. Mr. Testart.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4141

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. So I specifically asked around the procurement of liquor for the purposes of retail sales. Can the Minister confirm the other purposes the fund is currently used for? Thank you.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Minister McLeod.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Mr. Chair, I would ask Mr. Kalgutkar to respond to that. Thank you, 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

Page 4142

Kalgutkar

Sorry, thank you, Mr. Chair. So the purpose of the limit is to ensure that the assets, the current assets, of the Liquor Commission don't exceed the current liabilities of the commission in an amount in excess of $6.5 million. So it is really there to allow the Liquor Commission to purchase the inventory necessary to operate the commission, but it is also there to ensure that the Liquor Commission manages its working capital efficiently, and then, when it does build up excess assets in terms of cash, it transfers that cash back to the consolidated revenue fund. 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

Page 4142

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Kalgutkar. Mr. Testart.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. How often do revenues exceed or does the fund exceed its limits? Are those transferred to general revenue? Is this a common occurrence? Thank you.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Testart. Minister McLeod.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Yes, thank you, Mr. Chair. I will refer that to Mr. Kalgutkar.

Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

Page 4142

The Chair

The Chair Frederick Blake Jr.

Thank you, 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

Page 4142

Kalgutkar

Thank you, Mr. Chair. Because the current limit is quite constraining, the Liquor Commission currently does make regular transfers into the consolidated revenue fund when it needs to. It likely does it on a quarterly basis. 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

Page 4142

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Kalgutkar. Mr. Testart.