This is page numbers 6031 - 6090 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 tax.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

I feel like an eager beaver. Merci, Monsieur le President. Your Standing Committee on Rules and Procedures is pleased to provide its Report on the Review of Bill 56: An Act to Amend the Legislative Assembly and the Executive Council Act, No. 2, and the Draft Code of Conduct.

Introduction

The Standing Committee on Rules and Procedures (committee) is pleased to report on its review of Bill 56: An Act to Amend the Legislative Assembly and Executive Council Act No. 2 and the Draft Code of Conduct for Members of the Legislative Assembly of the Northwest Territories.

The Draft Code of Conduct was tabled in the Legislative Assembly and referred to the committee on March 11, 2019. Bill 56 was given second reading in the Legislative Assembly and was referred to the Committee on June 4, 2019.

If adopted, the Draft Code of Conduct would replace the current Members' Conduct Guidelines as the rules that govern Members' behaviour. The Draft Code of Conduct includes an explanatory guide.

Bill 56 would amend the Legislative Assembly and Executive Council Act to:

  • modify the oath of office sworn by Members to include specific obligations;
  • clarify the conflict of interest regime in respect of Members and former Members;
  • require the adoption by the Legislative Assembly of a Code of Conduct that establishes standards for the conduct of Members;
  • require Members to comply with any Code of Conduct adopted;
  • create the Office of Integrity Commissioner to carry out the duties of the former Conflict of Interest Commissioner, as well as similar duties in relation to the Code of Conduct;
  • clarify the obligations of Members with respect to the receipt of gifts and personal benefits; and
  • correct inconsistencies and errors identified in the Act.

Background

The Legislative Assembly adopted Motion 6-18(1) on December 17, 2015, which, among other things, referred the Members' Conduct Guidelines to the committee for a comprehensive and public review, including a thorough examination of conduct guidelines from other jurisdictions, both parliamentary and non-parliamentary organizations, all relevant legislation, and the Rules of the Legislative Assembly of the Northwest Territories.

The committee filed CR-2-18(2): Interim Report on the Review of Members' Conduct Guidelines on October 25, 2016. The purpose of the interim report was to outline useful information to support public discussion, consultation, and further research that would lead to recommendations for consideration by the Legislative Assembly

The committee filed its final report, CR-7-18(2): You Are Standing For Your People: Report on the Review of Members' Conduct Guidelines. This report included several recommendations, including:

  • changes to the oath of office sworn by Members of the Legislative Assembly;
  • the adoption of a Code of Conduct that included more specific and enforceable obligations;
  • the role of the Conflict of Interest Commissioner be expanded to include responsibility for receiving and investigating complaints respecting breaches of the Code of Conduct; and
  • the conflict of interest provisions of the Legislative Assembly and Executive Council Act No. 2 be publicly reviewed.

Bill 56 and the Draft Code of Conduct were developed at the direction of the Board of Management of the Legislative Assembly in response to these recommendations.

I'd like to turn the next part of the report over to the honourable Member for Tu Nedhe-Wiilideh. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Member for Tu Nedhe-Wiilideh.

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Marsi cho, Mr. Speaker.

Public Engagement

The committee held public meetings in Fort Smith, Yellowknife, and Inuvik. At each public meeting, a presentation was made by committee staff outlining the proposed changes to Bill 56, and the contents of the Code of Conduct. Committee also publicly released a briefing note on Bill 56 and the Code of Conduct to make it easier for members of the public to review the material.

A number of individuals and organizations made submissions to the committee, either in person or via written submissions. Written submissions are attached as Appendix A.

Committee received comments from the following:

  • Alternatives North,
  • Arlene Hache,
  • Graham White, Professor Emeritus, University of Toronto,
  • Gwich'in Tribal Council,
  • Keith Sulzer,
  • Mark Bogan,
  • OpenNWT, and
  • Status of Women Council for the Northwest Territories.

The committee heard general support from presenters, and received several recommendations for improvement. The committee thanks every individual and organization who attended these meetings to share their views on Bill 56 and the Code of Conduct.

A clause-by-clause review of Bill 56 was held on Wednesday August 14, 2019. At the clause-by-clause review, 17 motions were passed, making amendments to the Bill as described in the next section. A copy of all of committee's motions is attached as Appendix B.

What We Heard on Bill 56

Transition Periods

There were concerns that the transition period or "cooling-off" period for former Members was too short, and it was recommended the transition period for Regular Members be increased to one year for one term in office, and two years for Members who served as a Minister or Speaker in the 12 months prior to them ceasing to be a Member.

Committee considered these submissions carefully but chose not to recommend these changes. During the transition period, a Member who served as Speaker, Premier, or Minister in the 12 months before the dissolution of the Assembly or who served three or more terms as a Regular Member, cannot accept or hold a contract, employment, or an appointment from the GNWT or an organization in which they had significant official dealings with in the 12 months prior to them ceasing to be a Member.

Currently, the transition period for Regular Members is four months for each term in office, to a maximum of 12 months. Committee was concerned a longer transition period, particularly for Regular Members, would act as a barrier to people standing for election as MLA. It was noted that Regular Members do not play a direct decision-making role in day-to-day government functions, and, as such, a longer transition period was not necessary. Committee amended Bill 56 to make the transition period for Regular Members four months, regardless of the number of terms served, to remove a potential barrier to choosing to run for MLA, ensuring people do not face barriers to future employment in a public role.

Integrity Commissioner

Bill 56 changes the title of the Conflict of Interest Commissioner ("the Commissioner") to the Integrity Commissioner. The committee did hear some questions on the need for this name change. Committee noted that this recommendation came from the Commissioner and is consistent with the title used in Ontario and Nunavut. The committee concurred with the Commissioner's suggestion.

Mr. Speaker, I would now like to turn the reading over to the honourable Member for Thebacha. Thank you.

The Speaker

The Speaker Jackson Lafferty

Masi. Member for Thebacha.

Louis Sebert

Louis Sebert Thebacha

Thank you, Mr. Speaker.

Significant Official Dealings

Committee heard that the term "significant official dealings" should be defined to provide more clarity and to reflect the increased decision-making role of Ministers in the post-devolution environment. Committee considered this carefully and conducted a review of other jurisdictions in Canada and found that, in most jurisdictions where the terms "significant official dealings" and "official dealings" are used, they are undefined.

The committee consulted with the Commissioner on this point, and it was his recommendation that the term remains undefined to allow for a more contextual or case-by-case analysis, as each issue arises. The committee agreed with the Commissioner's advice. Recognizing the important role the Commissioner plays in interpreting and applying the act, committee passed a motion that would allow the Commissioner to make recommendations for changes to the act as part of their annual report.

Controlling Interest

In the act, a conflict of interest may arise where a Member, their spouse, or dependent child has a controlling interest in a corporation or similar organization. Committee heard submissions that the term "controlling interest" may not fully capture all situations where a Member may have a beneficial interest in a corporation or similar organization. It was recommended that "controlling interest" be replaced with the term and concept of "beneficial ownership" to bring it in line with current best practices and the Canada Business Corporations Act.

The committee accepted this recommendation and passed a number of motions to make this change throughout the Legislative Assembly and Executive Council Act. A motion was also passed to amend the bill to require that any Members report any beneficial ownership as part of their public disclosure statement filed with the Commissioner.

Disclosure of Gifts and Personal Benefits over $400

The Legislative Assembly and Executive Council Act provides that a Member may not accept a gift or personal benefit directly tied to their duties as a Member unless it is received as part of normal protocol or social obligations that accompany their office. Gifts or personal benefits over $400 become the property of the Legislative Assembly or Government of the Northwest Territories. Where gifts or personal benefits over $400 are received or the total value from one organization in one year exceeds $400, they must be reported to the Commissioner. Committee passed a motion that requires the value and description must be reported and included as part of a Members' annual disclosure statement.

Oath of Loyalty

While there was general support for the new oath of loyalty, concerns were raised about Members making a commitment to act in a manner that was consistent with the Northwest Territories Act as this was a piece of federal legislation and could in fact limit the ability of Members to push for changes to the role and powers of the Legislative Assembly. Committee agreed and passed a motion removing the reference to the Northwest Territories Act from the oath of loyalty.

Transparency and Public Accessibility

Several presenters noted the need for increased accessibility to information that is made public under the Legislative Assembly and Executive Council Act. It was noted that Members' public disclosure statements are available publicly but are only accessible by hard copy in the library at the Legislative Assembly in Yellowknife. It was also noted that a number of documents that the Commissioner is required to produce are tabled in the Legislative Assembly, but a member of the public must know about these documents and then search through all tabled documents posted on the Assembly's web site.

Committee made a number of amendments to the bill to require that all of these documents be posted online on a registry to be made more publicly accessible. Further, the committee made the following recommendation.

Recommendation 1:

The Standing Committee on Rules and Procedures recommends that the Legislative Assembly of the Northwest Territories create a separate section on its web site for the Integrity Commissioner and that all documents that must be posted on the register be located on this page.

Thank you, Mr. Speaker. I would like to turn this now over to the Member for Nahendeh. Thank you.

The Speaker

The Speaker Jackson Lafferty

Masi. Member for Nahendeh.

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker.

What We Heard on the Draft Code of Conduct

Statement of Commitment

Several presenters felt that the language of the statement of commitment should be changed. It was felt that the use of language such as "our people" and "our land" implied a sense of ownership by Members or set Members on different level than residents of the Northwest Territories. Other presenters felt that the Indigenous cultures of the Northwest Territories should be better reflected in the statement of commitment. Committee accepted these recommendations and has proposed that the statement of commitment be adopted as follows:

As Members of the Legislative Assembly of the Northwest Territories, we acknowledge that we have accepted a responsibility to serve the people of the Northwest Territories. We seek wisdom, strength, courage, honesty, and compassion from the people of the North, both from those who have built our past and from those who are shaping our future. As legislators elected to govern the Northwest Territories, we will do our utmost to:

  • Hear the voices of all that live in the Northwest Territories;
  • Preserve Indigenous traditional knowledge, languages, and the traditions of the various cultures and bridge them with new ways to build a better future for people in the Northwest Territories;
  • Provide legislation, policies, and services for the good of the people as individuals, families, and communities;
  • Promote the equality and equity of all people in the Northwest Territories;
  • Distribute resources fairly and justly; and
  • Respect and honour the land and all its inhabitants.

Application of Code of Conduct to Members

Committee heard some concern that the Code of Conduct was no longer written in a way that was personalized; for example using "we" instead of "I." Committee noted this concern, but also noted that where the Members' Conduct Guidelines were voluntary, and a Member agreed to be bound by them, the Code of Conduct will apply to all Members. However, in light of these concerns, the committee made the following recommendation:

Recommendation 2

The Standing Committee on Rules and Procedures recommends that the 19th Assembly have a public ceremony where each Member agrees to and signs the Code of Conduct.

Mr. Speaker, at this time, I would like to turn the reading back over to the honourable Member for Frame Lake. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Member for Frame Lake.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President.

Application of Access to Information and Protection of Privacy Act

Committee received one submission which expressed concern that the Access to Information and Protection of Privacy Act ("ATIPP") does not apply to Members. Committee noted that ATIPP does not apply to protect the parliamentary privileges of Members. Committee also noted that the Draft Code of Conduct expressly deals with the issue of privacy and requires Members to take appropriate steps to protect the confidentiality of any personal information, personal health information, or other confidential information that comes into their possession.

To reflect the concerns raised, and to assist Members in meeting this requirement of the Draft Code of Conduct, committee made the following recommendation:

Recommendation 3

The Standing Committee on Rules and Procedures recommends that all Members of the 19th Assembly receive privacy training to assist them in protecting the confidentiality of any personal information, personal health information, or other confidential information that comes into their possession.

Ongoing Review

The Draft Code of Conduct is intended to be a living document, and it may require changes in the future as it is applied to situations. The committee makes the following recommendation:

Recommendation 4

The Standing Committee on Rules and Procedures recommends that the 19th Assembly review the Code of Conduct to ensure it continues to meet the needs of the Assembly and residents.

Communication Of Outcome

Committee believes that it is important the residents of the Northwest Territories be aware of the changes to the Legislative Assembly and Executive Council Act and the new Code of Conduct, if adopted. Committee believes information on the code should be easily accessible and available in plain language. As a result, the committee made the following recommendation

Recommendation 5:

The Standing Committee on Rules and Procedures recommends that, upon adoption of the new Code of Conduct and the coming into force of Bill 56, that a news release be distributed and plain language materials be posted to the Legislative Assembly website explaining the changes.

This concludes the committee's report on the review of Bill 56 and the Draft Code of Conduct. Mahsi, Mr. Speaker.

I seek unanimous consent to waive rule 100(4) and have Committee Report 30-18(3), Standing Committee on Rules and Procedures Report on the Review of Bill 56, An Act to Amend the Legislative Assembly and Executive Council Act, No. 2, and the Draft Code of Conduct, received and moved into Committee of the Whole for consideration later today. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. The Member is seeking unanimous consent to waive rule 100(4) and have Committee Report 30-18(3): Report on the Review of Bill 56: An Act to Amend the Legislative Assembly and Executive Council Act, No. 2, and the Draft Code of Conduct to move into Committee of the Whole for consideration later today.

---Unanimous consent granted

Committee Report 30-18(3) is now moved into Committee of the Whole for consideration later today. Mahsi. Reports of standing and special committees. Item 13, reports of committees on the review of bills. Member for Yellowknife North.

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Cory Vanthuyne

Cory Vanthuyne Yellowknife North

Thank you, Mr. Speaker. I wish to report to the Assembly that the Standing Committee on Economic Development and Environment has reviewed Bill 46, Public Land Act, and wishes to report that Bill 46 is now ready for consideration in Committee of the Whole as amended and reprinted. Thank you, Mr. Speaker.

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The Speaker

The Speaker Jackson Lafferty

Masi. Reports of committees on the review of bills. Item 14, tabling of documents. Minister of Environment and Natural Resources.

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. I wish to table the following document entitled "Northwest Territories Waste Resource Management Strategy and Implementation Plan." Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Tabling of documents. Member for Frame Lake.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I would like to table the following document. It's three pages excerpted from the Northwest Territories Association of Communities website. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

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. Item 19, second reading of bills. Item 20, consideration in Committee of the Whole of bills and other matters: Bill 25, An Act to Amend the Workers' Compensation Act; Bill 39, Environmental Rights Act; Bill 42, An Act to Amend the Petroleum Products Tax Act; Bill 43, An Act to Amend the Income Tax Act; Committee Report 26-18(3), Report on the Review of the Carbon Tax Bills: Bill 42: An Act to Amend the Petroleum Products Tax Act and Bill 43: An Act to Amend the Income Tax Act; Committee Report 28-18(3), Report on the Review of Bill 25, Act to Amend Workers' Compensation Act; Committee Report 30-18(3), Report on Bill 56, An Act to Amend the Legislative Assembly Act and Code of Conduct; Minister's Statement 151-18(3), New Federal Infrastructure Agreement; Minister's Statement 158-18(3), Developments in Early Childhood Programs and Services; Minister's Statement 211-18(3), Addressing the Caribou Crisis; and Tabled Document 442-18(3); 2030 NWT Climate Change Strategic Framework 2019-2023 Action Plan.

By the authority given to me as Speaker by Motion 7-18(3), I hereby authorize the House to sit beyond the daily hour of adjournment to consider the business before the House, with the Member for Hay River North in the chair.

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The Chair

The Chair R.J. Simpson

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

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Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. Committee wishes to consider Committee Report 26-18(3), Standing Committee on Government Operations Report on the Review of Bill 42, An Act to Amend the Petroleum Products Tax Act, and Bill 43, An Act to Amend the Income Tax Act; Bill 42, An Act to Amend the Petroleum Products Tax Act; and Bill 43, An Act to Amend the Income Tax Act. Thank you, Mr. Chair.

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The Chair

The Chair R.J. Simpson

Thank you, Mr. Beaulieu. For clarity, the committee would like to consider the recommendation as a committee report, followed by Bill 42, followed by Bill 43. Is that correct? Mr. Beaulieu.

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Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. That is correct. Thank you, Mr. Chairman.

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The Chair

The Chair R.J. Simpson

Thank you. Does committee agree?

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Some Hon. Members

Agreed.

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The Chair

The Chair R.J. Simpson

Thank you, committee. We will consider the report and the bills after a brief recess.

---SHORT RECESS

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The Chair

The Chair R.J. Simpson

I will now call Committee of the Whole back to order. Welcome back, committee. We have agreed to first consider Committee Report 26-18(3), Standing Committee on Government Operations Report on the Review of the Carbon Tax Bills; Bill 42, An Act to Amend the Petroleum Products Tax Act; and Bill 43, An Act to Amend the Income Tax Act. I will turn to the chair of the Standing Committee on Government Operations for opening remarks. Mr. Testart.

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Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. The Standing Committee on Government Operations concluded its review of Bill 42, An Act to Amend the Petroleum Products Tax Act; and Bill 43, An Act to Amend the Income Tax Act on August 7, 2019 with a public clause-by-clause review held at the Legislative Assembly building.

The committee read their substantive report into the House yesterday. To commence its review of Bill 42 and Bill 43, the Standing Committee on Government Operations sent letters inviting input from an extensive list of stakeholders, including all municipal and Indigenous governments in the Northwest Territories and a number of non-governmental organizations.

The committee held one public meeting in Yellowknife on August 1, 2019. As well, the committee received four written submissions on the bill, from the Arctic Energy Alliance, a joint submission from Ecology North and Alternatives North, Northwest Territories Association of Communities, and the City of Yellowknife. On behalf of the committee, I would like to thank everyone who provided input on Bills 42 and 43.

While I have the floor, Mr. Chair, I will take the opportunity to reiterate the frustrating process committee experienced in its review of these bills. Committee began its engagement with the Minister of Finance as far back as 2017. Despite multiple attempts to provide recommendations to the Minister on the GNWT's planned approach to carbon pricing, each time, committee was rebuffed. Although committee recognizes that the Minister was very forthcoming with information and updates with respect to the negotiations of carbon pricing with the federal government, committee was denied any meaningful opportunity to shape the GNWT's carbon pricing plan, an approach that did not meet committee's expectations to be involved in such a crucial decision for the Northwest Territories.

This situation was further exacerbated during the committee's clause-by-clause review of the legislation, the two bills, by a lack of information available to support committee in its public consultations. I should note that the federal government bears a great deal of this responsibility, as well. Correspondence written to the federal Minister of Environment and Climate Change was returned without answering committee's questions or providing additional information that could have helped the committee compare the merits of the GNWT's plan with the merits of the federal backstop. Ultimately, committee was unable to render a decision on which approach to carbon pricing would be of greatest benefit to the Northwest Territories and did not seek amendments as a result. Again, this was a very frustrating process as committee had higher expectations to be more involved in a collaborative role with the Minister of Finance and the government on co-developing a carbon pricing plan that worked for everyone in the Northwest Territories.

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