This is page numbers 43 - 80 of the Hansard for the 19th Assembly, 1st 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

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The Chair

The Chair Lesa Semmler

Minister of Finance.

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

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. In the short-term instruments, it would be 1.97 percent.

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

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The Chair

The Chair Lesa Semmler

Member for Yellowknife North.

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

Page 77

Rylund Johnson

Rylund Johnson Yellowknife North

Thank you, Madam Chair. Minister of Finance, I'm going to ask you to do some math on the fly, but, paying 1.97 percent, perhaps you could give me an estimate of what the debt management cost is on our $525-million figure. Thank you, Madam Chair.

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

Page 77

The Chair

The Chair Lesa Semmler

Minister of Finance.

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

Page 77

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

In the interest of time, Madam Chair, I'll just turn it over to Mr. Koe.

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

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The Chair

The Chair Lesa Semmler

Mr. Koe.

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

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Koe

Thank you, Madam Chair. It's a hard estimate to do quickly. It would be dependent on how much of this increase we're actually going to use, when we're going to use it, how we borrow it. What I can say from our current projections, right now, we're using banking overdraft, which is a much higher percentage. I do believe it's around prime plus one, so that's about 4.95 percent right now. Depending if we're using bank overdraft to our short-term rate, which is 1.97, I do believe, at the end of the day, even if we do this increase, if we use the instruments available to us at a lower cost, it would more than offset it and be about the same at the end of the year. Thank you, Madam Chair.

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

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The Chair

The Chair Lesa Semmler

Thank you. Member for Yellowknife North.

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

December 10th, 2019

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Rylund Johnson

Rylund Johnson Yellowknife North

Thank you, Madam Chair. Looking at this, our short-term borrowing limit is $525 million. Our long-term debt appears to be $419. We've now surpasses short-term over long-term. I really get a sense that this is a bit of a shell game in that we're moving money around, and I don't think that this is correctly characterized as short-term debt. Much of this, I am quite confident, is in fact long-term debt. Perhaps the Minister of Finance can tell me, I recognize this is getting largely into the budget, but what the expectation is for converting this short-term debt to long-term debt. Thank you, Madam Chair.

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

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The Chair

The Chair Lesa Semmler

Minister of Finance.

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

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Again, I share the Member's frustration of just seeing large numbers. Wanting the government to be fiscally responsible is a message that I am hearing loud and clear, and wanting to be fiscally responsible in a way that is responsive to the needs of the government long-term. Again, I'm hearing that loud and clear.

There is no intention to directly convert. The balance between short-term debt, long-term debt, and a budget is precisely the task that we are faced with in order to create the budget for 2020-2021. This particular supplementary appropriation bill is essentially a patch on a situation created by the 2019-2020 budget and our best effort to remain as fiscally responsible at this moment, under that passed budget, until the end of this fiscal year. Thank you, Madam Chair.

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

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The Chair

The Chair Lesa Semmler

All right. Member for Tu Nedhe-Wiilideh.

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

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Steve Norn

Steve Norn Tu Nedhe-Wiilideh

Mahsi, Madam Chair. I'm just listening to the Minister's comments and Mr. Koe's comments for this being a financial patch, and the lending rate of prime plus one. From what I'm hearing, of this $135 million, we're not entirely sure how much is going to be used or if it's all going to be used for this fiscal cycle.

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

Page 78

The Chair

The Chair Lesa Semmler

Minister of Finance.

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

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Chair, that's correct. The number that we settled on in terms of coming forward to the Assembly is one that we thought was certainly as low as possible, but while retaining sufficient flexibility, looking at the projected cash flows from now to the end of just this fiscal year, again.

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

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The Chair

The Chair Lesa Semmler

Thank you. Member for Tu Nedhe-Wiilideh.

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

Page 78

Steve Norn

Steve Norn Tu Nedhe-Wiilideh

No further questions, Madam Chair.

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

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The Chair

The Chair Lesa Semmler

Are there any further comments? No? All right. If there are no further comments, does the committee agree to proceed to the details contained in the tabled document?

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

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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

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The Chair

The Chair Lesa Semmler

2019-2020 Supplementary Estimates (Operations Expenditure) No. 3, Department of Finance, short-term borrowing, Office of the Comptroller General, not previously authorized, $135 million. Does the committee agree?

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

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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

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The Chair

The Chair Lesa Semmler

Thank you, committee. Do you agree that you have concluded consideration of Tabled Document 5-19(1), Supplementary Estimates (Operations Expenditures and Borrowing Authorization) No. 3, 2019-2020?

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

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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

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The Chair

The Chair Lesa Semmler

Thank you, Minister, and thank you to the witnesses for appearing before us. Sergeant-at-Arms, please excuse the witnesses from the Chamber. Does the committee agree that this concludes consideration of Tabled Document 5-19(1)?