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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Kieron Testart

Kieron Testart Kam Lake

Mr. Chair, I move that this committee recommend that the Department of Finance table on annual report in the Legislative Assembly on the carbon tax that provides detail on: total carbon taxes collected; carbon taxes collected from large emitters; total rebates provided; number and nature of grants provided; costs of administrating the carbon tax; reinvestment of carbon tax revenues; projected tax revenues for coming year; and an annual plan for future year reinvestment of carbon tax revenues. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. There is a motion on the floor. To the motion. Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. During committee's review of the early stages of the carbon tax bill, the committee wrote to the department several times and encouraged them to bring forward reporting like this. There are models of carbon pricing in Canada, most notably in British Columbia, that require a tax plan to be tabled every four years, in the BC legislature, that clearly lays out how all of the money is being raised, where it is coming from, and where, ultimately, it is going to be spent. That is part of their budgetary process.

That kind of transparency and clarity is, the committee believes, the best way to ensure that we can guarantee to Northerners that the revenues raised from this new tax are going to their intended purposes. Without formal reporting like this, there will be no way to independently verify that the tax is largely revenue-neutral and being committed towards clean growth and climate change mitigation.

This is a crucial motion. We have had a commitment at the clause-by-clause review at the committee stage that the government was working on something. We were a bit dismayed that it was not in the bill proper, but hopefully, the ultimate reporting on carbon tax follows this recommends, and the public is able to see quite clearly how these revenues are being raised and what they are being spent on. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. To the motion. Mr. O'Reilly.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. I agree with this recommendation from the committee. I have made many statements in this House about the need for stronger accountability and reporting around the climate crisis. When I saw the bill, I was quite disappointed that there was nothing written into the bill that provides for or requires this kind of reporting. I support the work that the committee has done to review this and encourage that it be done. I think that it can and should have been part of the bill, so I do support this recommendation. Thanks, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. To the motion.

Some Hon. Members

Question.

The Chair

The Chair R.J. Simpson

Question has been called. All those in favour? All those opposed?

---Carried

Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Mr. Chair, I move that this committee recommend that the Department of Finance undertake an annual assessment of the impact of the carbon tax on greenhouse gas emissions in the Northwest Territories, to be reported in the annual report. This should be integrated with the reporting on greenhouse gas emissions under the climate change strategic framework and energy projects under the energy strategy. This will allow an evaluation of whether the carbon tax is effective in reducing greenhouse gas emissions. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you, Mr. Testart. There is a motion on the floor. The motion is in order. To the motion. Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. Again, this is another way that we can ensure transparency around the stated goals of carbon pricing to make sure that the impact on cost of living is going towards its intended purpose of mitigating the disastrous effects and deleterious effects of climate change on our fragile northern environment. The stated goals of this need to be around greenhouse gas emissions. Otherwise, why do it? This motion calls for exacting reporting on how effective the tax is being in meeting its stated public policy goals. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. To the motion. Mr. O'Reilly.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. In my opening remarks, I talked about Cabinet's crisis climate change plan, consisting of three separate initiatives. We have the climate change strategic framework, the energy strategy, and now carbon pricing. Unfortunately, there are no strong links between the three of them. This bill does not provide for any formal links between the other two parts of the strategy or the plan that this Cabinet has developed. In the absence of that, it is very difficult, I think, for anyone to see and understand how these are linked together and what kind of progress we may be making on some of these as a result of the carbon tax.

I talked numerous times about the need for integrated reporting. There has not been a clear commitment in writing. There is no legal requirement for that to happen as a result of this bill. All we are left with is trying to make a recommendation from the standing committee. I do support this. I will have more to say when we get to the bill itself. Thanks, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. To the motion.

Some Hon. Members

Question.

The Chair

The Chair R.J. Simpson

Question has been called. All those in favour? All those opposed?

---Carried

Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Mr. Chair, I move that this committee recommend that the Department of Finance undertake a comprehensive review and evaluation of its carbon tax approach, including public consultation, to be completed after the program is fully implemented in 2022. The purpose of the review is to determine the effectiveness of the program on reducing greenhouse gas emissions and to assess its impacts on the NWT economy in order to develop program improvements. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. The motion is in order. To the motion. Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair. Again, this is a way to ensure that the tax is being monitored for effectiveness and that any rebalancing of grants and rebates to offset any drawbacks from our local economies or territorial economy can be properly assessed by making necessary changes to the carbon pricing scheme. This motion is calling for or recommending that that be done in a formal and public process by the time the carbon tax reaches its full amount of $50 per tonne. Thank you.

The Chair

The Chair R.J. Simpson

Thank you. To the motion.

Some Hon. Members

Question.

The Chair

The Chair R.J. Simpson

Question has been called. All those in favour? All those opposed?

---Carried

Mr. Testart.

Kieron Testart

Kieron Testart Kam Lake

Mr. Chair, I move, to the extent it is possible before the dissolution of the 18th Assembly and for the public record, that the government provide a response to these recommendations, even of a preliminary nature, that committee may publicly disclose. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. The motion is in order. To the motion.

Some Hon. Members

Question.