Marsi cho, Madam Chair. Committee would like to consider the following items: Bill 16, An Act to Amend the Income Tax Act; Committee Report 10-19(2), Standing Committee on Economic Development and Environment Report on Bill 3, An Act to Amend the Public Highways Act; Bill 3, An Act to Amend the Public Highways Act; Bill 12, An Act to Amend the Apprenticeship, Trades and Occupational Certification Act; Bill 13, An Act to Amend the Interpretation Act; Bill 14, An Act to Amend the Securities Act; Tabled Document 165-19(2), Government of the Northwest Territories Response to Committee Report 1-19(2), Report on Long-Term Post-Pandemic Recovery, Recommendations to the GNWT; Tabled Document 166-19(2) Government of the Northwest Territories Response to Committee Report 2-19(2), Report on Long-Term Post-Pandemic Recovery, Recommendations to the GNWT; Tabled Document 167-19(2), Government of the Northwest Territories Response to Committee Report 3-19(2), Report on Long-Term Post-Pandemic Recovery, Recommendations to the GNWT; and Minister's Statement 77-19(2), National Housing Co-Investment Fund. Marsi cho, Madam Chair.

Thank you. Does committee agree?

Thank you, committee. We will take a short recess and resume with the first item.

---SHORT RECESS

I now call Committee of the Whole back to order. Committee, we have agreed to first consider Bill 16, An Act to Amend the Income Tax Act. I will ask the Minister of Finance to introduce the bill.

Thank you, Madam Chair. I am here to present Bill 16, An Act to Amend the Income Tax Act. The main purpose of Bill 16 is to reduce the tax burden on our small businesses by reducing the small business tax rate from 4 percent down to 2 percent. With this reduction, Northwest Territories small businesses will incur a tax rate of 2 percent on taxable income under $500,000. Any taxable income over $500,000 will continue to be subject to the general corporate tax rate of 11.5 percent. This proposed measure will become effective on January 1, 2021.

We are also taking this opportunity to propose two housekeeping measures to keep the legislation current and maintain value harmonization with federal income tax legislation. The first housekeeping measure proposes changes in the calculation of the territorial age credit to include taxable split income to ensure seniors are not able to claim a higher age credit than they would otherwise be entitled. The second housekeeping measure proposes changes in the calculation of the territorial pension credit. This measure will allow Canadian veterans with certain income benefits received under the federal Veterans Well-being Act to claim the territorial pension credit.

That concludes my opening remarks, Madam Chair. I would be happy to answer any questions that Members might have.

Thank you, Minister. I will now turn to the chair of the Standing Committee on Government Operations, the committee which considered the bill, for opening comments.

Thank you, Madam Chair. Bill 16, An Act to Amend the Income Tax Act, received second reading in the Legislative Assembly on November 2, 2020, and was referred to the Standing Committee on Government Operations for review. On February 25, 2021, the standing committee held a public hearing with the Minister of Finance and completed its clause-by-clause review of the bill. I thank the committee for their efforts in reviewing this legislation. Individual Members may have additional comments or questions.

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

Yes, Madam Chair.

Sergeant-at-Arms, please escort the witness into the Chamber. Minister, please introduce your witnesses for the record.

Thank you, Madam Chair. Madam Chair, on my left is Kelly Bluck, director of fiscal policy from the Department of Finance, and on the right, Cherie Jarock, legislative counsel with the legislation division from the Department of Justice.

Thank you. I will now open the floor to general comments on Bill 16. Member for Kam Lake.

Thank you very much, Madam Chair. I just wanted to express my gratitude for this change. I think that this is a time when businesses can use the support and can also use their finances in better ways to grow and evolve their businesses. I appreciate the effort on behalf of the Minister in order to make this change, and I would like to just say thank you. Thank you.

Thank you. Member for Frame Lake.

Thanks, Madam Chair. I don't have any difficulty with the administrative changes here for the most part. I am concerned about the reduction in the small business tax rate. Can the Minister tell me why we are doing this? Thanks, Madam Chair.

Thank you. Minister.

Thank you, Madam Chair. We are a little bit behind some of the other jurisdictions in terms of our business tax rate for small businesses. This finally is an opportunity to bring us a little bit more in line and make us more competitive with some of our colleagues across the rest of Canada. Up to this point, we were at or near, in fact, the very top of the pile. This is an opportunity to, again, make us more competitive, and it's a good time. I think one of the MLAs has already mentioned that it's an opportunity to give a bit of release at an occasion and during a context where there has been quite a lot of challenges for small businesses, for all businesses, over the last year. Again, this is one where, really, we are getting ourselves to be more aligned with the rates that you see across the rest of Canada. Thank you, Madam Chair.

Thank you. Member for Frame Lake.

Thanks, Madam Chair. I take it from what the Minister said that this is really about tax fairness, being competitive, and so on. That's all good. Can the Minister tell me how much revenue the GNWT is going to lose as a result of this reduction? Thanks, Madam Chair.

Thank you. Minister.

Thank you, Madam Chair. I believe the reduction is approximately $1.4 million.

Thank you. Member.

Thanks, Madam Chair. Are there any plans, then, to make up this lost revenue somewhere else in the tax system? Thanks, Madam Chair.

Thank you. Minister.

Thank you, Madam Chair. This is not an occasion where there will be a commensurate raising of taxes or introduction of a new tax to directly offset the $1.4 million revenue loss. What is hoped, however, is that, by helping the sector become more competitive and helping small businesses be more competitive, we will see economic growth, which then can ultimately help create more taxpayers in the form of more small businesses, which can hopefully offset the revenue lost from the tax rate change. Thank you, Madam Chair.

Thank you. Member.

Thanks, Madam Chair. I take it from what the Minister said that there are not going to be any efforts to look at replacing the revenues in some way. How is the Minister going to apply this concept of tax fairness across the other kinds of taxes that we have to pay? Look, I heard the Minister characterize taxes as "burdens" earlier on. Taxes are actually the price of civilization. Governments don't run without taxes or some source of revenue, so how is the Minister going to apply this concept of fairness across other parts of the tax system? Thanks, Madam Chair.

Thank you. Minister.

Thank you, Madam Chair. At this point in the course of where we're at in our response to the pandemic and recovery from the pandemic, there was certainly a conscious decision that there would not be new taxes introduced in this particular budget, and there are no new taxes introduced in this particular budget. That's sort of a short-term response. I understand that the question really is looking at something much larger and much broader, and I have made inquiries with the department to look into what impacts there would be on individuals if we were to increase the tax burden for certain filers. At this point, the benefits are such that, unless we were to increase rates significantly, we would not be seeing an offset of this tax savings. We would simply be putting a pretty significant burden on a very small number of people, again, without necessarily making up for this particular change. At this moment in time, Madam Chair, again, there is not an increase intended or expected, whether it's to other income tax rates on the personal side or on the corporate side. Thank you, Madam Chair.

Thank you. Member.

Thanks, Madam Chair. I do appreciate that. Is the Minister willing to share some of that kind of analysis that she talked about? In the past, there have been revenue options papers generated by Finance Ministers. Is the Minister willing to make public perhaps an updated version of a tax options paper, or a revenue options paper, in preparation for the next budget? Thanks, Madam Chair.

Thank you. Minister.

Thank you, Madam Chair. I was pleased to get that suggestion last year, probably around this time, and I am happy to receive it and be reminded again. The process of going through budget dialogues and putting some of the information out was very helpful to me in this role but, I think, also to the department. We will certainly make sure that we engage in this process. I think, having adapted to COVID-19, it will be earlier this year than last year. Thank you.

Thank you. Member.

Thanks, Madam Chair. Yes. I appreciate it, and I did look at the materials that the Minister had used for her dialogue. I think the tax stuff in it was just a couple of slides, so a fuller version of an options paper would be much more helpful. Is that something the Minister could do? Thanks, Madam Chair.

Minister.

Thank you, Madam Chair. Yes, we will certainly make sure that there's a more fulsome discussion around what the tax impacts could be for introducing or otherwise modifying tax rates. Thank you.

Thank you. Member.

Thanks, Madam Chair. I appreciate the responses from the Minister. I am about tax fairness, and I just want to give the Minister a couple of ways in which she could raise $1.4 million for the public record. She could actually keep the rental fees that are in the current exploration licence for Husky Energy and carry those over into the significant discovery licence and raise $1.4 million a year. That's one option; she doesn't really have to do very much on that one.

The other one is, and I've said this before, we're one of the few jurisdictions in Canada that only has three personal income tax brackets. Alberta has five, and they went to that in 2016. British Columbia has five; they went to that in 2014. New Brunswick has six; they went to that in 2015. Newfoundland and Labrador has five; they did that in 2015. Nova Scotia has five; they did that in 2010. Ontario has five; they did that in 2014. Yukon has five; they did that in 2015. The federal government went to five in 2016. I don't understand why we still only have three. That is something I want to encourage the Finance Minister to look at.

I am about tax fairness, and we do need to help the least advantaged people in our society. That means sometimes rich people have to pay more, and that includes me. I am happy to have that public debate and discussion. There are a couple of areas that I would like the Minister to seriously consider to replace the lost revenue from this lowering of the small business tax rate. Thanks, Madam Chair. I think that's all I've got for now. Thanks.

Thank you, Member. Minister.

Thank you, Madam Chair. I agree, that is the kind of debate that should be happening in the House. Again, I will certainly commit to getting some of the details and financial numbers to the House so that that discussion can be brought to the floor.

Thank you, Minister. Are there any further questions? Member for Great Slave.

Thank you, Madam Chair. First of all, I just want to say that I'm in support of this reduction. I often heard last year about how we needed to support small businesses better. The majority of the businesses in the Northwest Territories would be considered to be small businesses, so injecting $1.4 million back into our private sector, I believe, it will actually be used much more efficiently with better return on our investment than perhaps done by the Government of the Northwest Territories, no detriment to the Minister's department. However, I think this is an excellent thing, and I actually would encourage and support a further reduction for small businesses in the North. I think this is wonderful. We weren't able at the beginning to necessarily provide relief to businesses, as we took care of health and safety first. We are now into an extended lockdown, compared to what we had first planned for, and as a result, we owe our small businesses this relief. I am fully in support of it. Kudos to the Minister and her team. Thank you.

Thank you, Member for Great Slave. Did the Minister want to respond, or you're good with that?

I'll take the positives out of that, Madam Chair, and leave it there. Thank you.

Thank you. Member for Hay River South.

Thank you, Madam Chair. I, too, am in support of this reduction. It's time that we start to recognize the importance of small businesses. I know that there was an attempt in the last Assembly to try and get the tax rate down to zero, and the government at the time did not even give it time to hit the floor for debate. I am very pleased to see that we have a group here that understands the importance of small businesses and is willing to give them support in whatever way they can. This is one small way to do it. Just as taxes are required for civilization, so is small business required to keep people working and to move ahead and move the economy ahead and grow. Again, I just want to say that I'm in full support of this bill. Thank you, Madam Chair.

Thank you, Member. Minister, did you have any comments?

Thank you, Madam Chair.

Any further questions or comments to general comments? No? Okay. Since there are no further general comments, we can proceed to the clause-by-clause review of the bill. Committee, we will defer the bill number and title until after consideration of the clauses. Please turn to page 1 of the bill. Clause 1, does committee agree?

---Clauses 1 through 5 inclusive approved

Committee, to the bill as a whole. Does committee agree that Bill 16, An Act to Amend the Income Tax Act is now ready for third reading?

Thank you, committee. Bill 16, An Act to Amend the Income Tax Act is now ready for third reading. Does committee agree that this concludes our considerations of Bill 16, An Act to Amend the Income Tax Act?

Thank you, Minister, and thank you to our witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Committee, we have agreed to consider Committee Report 10-19(2), Standing Committee on Economic Development and Environment Report on Bill 3, An Act to Amend the Public Highways Act. I will go to the chair of the Standing Committee on Economic Development and Environment for any opening comments. Member for Nunakput.

Thank you, again. Bill 3 had second reading in the House and was referred to the Standing Committee on Economic Development and Environment on June 23, 2020. On August 25, 2020, and on October 15, 2020, committee's review of the bill was extended. On August 19, 2020, the committee invited comments and proposed that amendments from the communities across the Northwest Territories, Indigenous governments, and businesses involved in the use of the construction of roads. The committee received a written submission from the City of Yellowknife. The committee held a public hearing on Bill 3 on October 14, 2020. It had concluded its review of the bill, with a public clause-by-clause review on February 10, 2021. The committee passed four motions to amend Bill 3, all of which received concurrence with the Minister. Thank you, Madam Chair. Individual Members may have additional comments or questions to it. Thank you.

Thank you, Member for Nunakput. I will now open the floor to general comments on Committee Report 10-19(2), Standing Committee on Economic Development and Environment Report on Bill 3, An Act to Amend the Public Highways Act. Do Members have any general comments? Member for Frame Lake.

Thanks, Madam Chair. I just would like to thank my colleagues that serve on the committee and the City of Yellowknife that made a written submission. This was an interesting issue that we had to deal with. GNWT was worried about incurring liability for winter roads that were being built off of our roads. We were told that this was an easy fix. We started to deal with this, actually, in the last Assembly. We didn't get to it, so it came back again into this Assembly. Although I thought it was supposed to be an easy fix, that's not the kind of bill we actually ended up with. We ended up with a bill that was going to absolve GNWT of any liability whatsoever for almost any highway, which was overkill, in my view.

It took a lot of effort on the part of the committee to work with the Minister to try to change the way that the bill read so that there was a more even balance of the rights of the government to try to protect themselves from liability but the rights of drivers to actually sue GNWT if highways are not maintained to certain standards. It took a long time to work with the Minister on this. That's why we had to get the extension, but I think we arrived at a good place. I also recognize that the Minister did commit to post a manual on the Infrastructure website that laid out and made more explicit and public standards for care and maintenance of our highways so that information is now public. All of this to say, Madam Chair, that committee had to work very hard on what I thought was an easy issue. We did fix a bill that needed a lot of work. I want to thank the Minister for working with us to get it right. Thanks, Madam Chair.

Thank you, Member. Are there any other general comments? All right. Thank you, committee. Do you agree that you have concluded consideration of Committee Report 10-19(2), Standing Committee on Economic Development and Environment Report on Bill 3, An Act to Amend the Public Highways Act?

Thank you, Committee. We have concluded consideration of Committee Report 10-19(2), Standing Committee on Economic Development and Environment Report on Bill 3, An Act to Amend the Public Highways Act. Committee, we have agreed to consider Bill 3, An Act to Amend the Public Highways Act. I will ask the Minister of Infrastructure to introduce the bill.

Thank you, Madam Chair. I'm here to present Bill 3, An Act to Amend the Public Highways Act. The Public Highways Act is administered by the Department of Infrastructure and governs, amongst other things, the construction, maintenance, access to and use of highways within the Northwest Territories. This bill will amend the Public Highways Act to address the Government of the Northwest Territories' liability for loss or damage resulting from a failure to maintain primary highways in the Northwest Territories.

This bill requires the Minister to maintain primary highways and provides that the GNWT is liable, with exceptions, for loss or damage resulting from a failure to do so. This bill will make it clear that the Minister has no duty to maintain roads that are not designated as primary highway under the Public Highways Act.

During Standing Committee on Economic Development and Environment review, recommendations were put forward and accepted, which:

• improved clarity that the GNWT is liable for a failure to maintain and
• address minor drafting issues.

I would be pleased to answer any questions Members may have. Quyanainni.

Thank you, Minister. I will now turn to the chair of Standing Committee on Economic Development and Environment, the committee that considered the bill, for opening comments. Member for Nunakput.

Thank you, Madam Chair. No. Having introduced Committee Report 10-19(2) earlier today, I have no additional comments to the bill at this time. I would just like to thank committee for all the hard work that they have done and my committee staff in their efforts in reviewing this piece of legislation. Individual Members may have additional comments, as well. Thank you, Madam Chair.

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

Yes, Madam Chair.

Thank you. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, will you please introduce your witnesses?

Thank you, Madam Chair. I am joined by witnesses Steve Loutitt, deputy minister for the Department of Infrastructure, as well as Jacques Roberge, senior legislative advisor with the Department of Infrastructure. Thank you, Madam Chair.

Thank you, Minister. I will now open the floor to general comments on Bill 3. Are there any general comments? Seeing that there are no general comments, can we proceed to a clause-by-clause review of the bill?

Committee, we will defer the bill number and title until after consideration of the clauses. Please turn to page 1 of the bill. Clause 1, does committee agree?

---Clauses 1 and 2 inclusive approved

Committee, to the bill as a whole, does committee agree that Bill 3, An Act to Amend the Public Highways Act, is now ready for third reading?

Thank you, committee. Bill 3, An Act to Amend the Public Highways Act, is now ready for third reading. Does committee agree that this concludes our consideration of Bill 3, An Act to Amend the Public Highways Act?

Thank you, Minister, and thank you to our witnesses. Sergeant-at-Arms, you may escort the witnesses from the Chamber. Committee, we have agreed to consider Bill 12, An Act to Amend the Apprenticeship, Trade and Occupational Certification Act. I will ask the Minister of Education, Culture and Employment to introduce the bill.

Thank you, Madam Chair. I am here today to present Bill 12, An Act to Amend the Apprenticeship, Trade and Occupational Certification Act. I want to thank the Standing Committee on Social Development for its interest in and review of the bill. The Apprenticeship, Trade and Occupational Certification Act gives the Minister authority to issue various types of certifications for apprenticeships, trades, and occupations in the NWT.

This bill seeks to amend the act to allow for the issuance of other prescribed certificates, to give the Department of Education, Culture and Employment the ability to issue certificates of achievement in business competency to NWT journeypersons, commonly known as Blue Seal Certificates. Blue Seal Certificates, which are issued in a number of other jurisdictions, formally recognize achievement in business competency when a journeyperson has completed recognized business courses and training. There is currently no mechanism for granting Blue Seal Certificates under the act.

Having a Blue Seal Certificate program in the NWT that formally recognizes the achievements of journeypersons in business competency would both support the growth of businesses and the continued professional development of journeypersons. The amendment would also keep the NWT aligned with other jurisdictions where Blue Seal Certificates or similar certificates are issued and encourage associated business education and training in the North.

I am pleased to bring forward these amendments that will have a positive impact on our residents and the NWT labour market. This concludes my opening remarks, and I would be pleased to answer any questions that the Members may have regarding Bill 12. Thank you.

Thank you, Minister. I will now turn to the chair of the Standing Committee on Social Development, the committee that considered the bill, for opening comments. Member for Kam Lake.

Thank you, Madam Chair. Bill 12, An Act to Amend the Apprenticeship, Trade and Occupational Certification Act, received second reading in the Legislative Assembly on October 29, 2020, and was referred to the Standing Committee on Social Development for review. On February 10, 2021, the standing committee held a public hearing with the Minister of Education, Culture and Employment and completed its clause-by-clause review of the bill. I thank the committee and committee staff for their efforts in reviewing this legislation. Individual Members may have additional comments or questions. Thank you, Madam Chair.

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

Yes, please.

Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, please introduce your witnesses.

Thank you. We have Mr. Michael Saturnino, assistant deputy minister, labour and income security, and Mr. Mike Reddy, director of legislation, Department of Justice. Thank you.

Thank you and welcome. I will now open the floor to general comments on Bill 12. Are there any general comments? Member for Yellowknife North.

Thank you, Madam Chair. I am happy to see this. I know that a number of jurisdictions do that, and there are more and more Blue Seal kind of courses popping up at colleges across the country. I am just wondering the impetus for this. Do we plan on giving out any Blue Seals as there are presently people waiting to be able to get certified for one of these? Thank you, Madam Chair.

Thank you. Minister.

Thank you. I think my dad is waiting. There is criteria that needs to be developed. There are a lot of different things that have to happen, but I can ask Mr. Saturnino for some clarification. Thank you.

Thank you. Mr. Saturnino.

Thank you. Member for Yellowknife North.

Thank you, Madam Chair. Yes. I am looking forward to seeing this, and hopefully, we can get a few of our Red Seals to also get Blue Seals. I am just wondering if there are any plans for Aurora College to provide the training required for a Blue Seal.

Thank you. Minister.

Thank you. If you look at other jurisdictions, what they do, there are a number of different courses that you can take. Then that is confirmed by the department, and then you get issued a Blue Seal. I am sure that Aurora College has those courses. I don't have a list with me, but as a polytechnic, they would definitely have those types of courses. Thank you.

Thank you. Member for Hay River South.

Thank you, Madam Chair. Yes, I am waiting to get my Blue Seal. I think it's a good thing because tradespeople, whether they know it or not, and I think most of them know it, they are businesspeople. I think having that extra certification and the ability to own and run their own business and maintain that I think is very important. It's a good change. The one question I would have is: if you have got people who are tradespeople but also have a degree in business, would they be allowed to challenge the exam or would they be grandfathered in? Thank you, Madam Chair

Thank you. Minister.

Thank you. Perhaps I can ask Mr. Saturnino to discuss how exactly this would roll out and what types of courses and when those courses would have had to have been taken, if it's looking in the past or future-looking. That should give Members an idea of what this would look like rolling out. Thank you.

Thank you, Minister. Mr. Saturnino.

Thank you. Member.

Thank you, Madam Chair. Yes, that clarifies it. I guess I've got to take the courses. Thank you.

Thank you. Member for Great Slave.

Thank you, Madam Chair. Yes. My colleague just made me think of a question there. Will there be the ability to take this program over a period of time? I'm assuming, of course, that you wouldn't have to do it all in one year or anything, but how long of a period of time would people get? Could they do this sort of as a part-time thing, take a course a year, and eventually, over time, work towards it? Or are they going to be restricted to doing it in a quicker time frame? Thank you, Madam Chair.

Thank you. Minister.

Thank you. I don't think we're there yet in the development, given that the legislation is just before us now, but if you look at other jurisdictions, sometimes, it's a program, sometimes, it's a combination of courses. There doesn't appear, from what I've seen, to be a strict time frame. As Mr. Saturnino said, if you look back 10 years, then perhaps we could see what was taken in those 10 years. I think there is some flexibility, and as with everything that we do here, we can adapt it to the realities of the North, as well. Thank you.

Thank you, Minister. Member for Great Slave.

Thank you. I do appreciate hearing the Minister say that. I worry, sometimes, as we go toward certifications and regulatory-type things, which we do need, there is often a reason why they don't get developed in the North specifically, because we can't support, sometimes, creating more red tape. Just more of a comment, but I'm really glad to hear that. Thank you.

Can we proceed to the clause-by-clause review of the bill?

Committee, we will defer the bill number and title until after consideration of the clauses. Please turn to page 1 of the bill. Clause 1. Does committee agree?

---Clauses 1 through 4 inclusive approved

Committee, to the bill as a whole, does committee agree that Bill 12, An Act to Amend the Apprenticeship, Trades and Occupational Certification Act, is now ready for third reading?

Thank you, committee. Bill 12, An Act to Amend the Apprenticeship, Trades and Occupational Certification Act, is now ready for third reading. Does committee agree that this concludes our consideration of Bill 12, An Act to Amend the Apprenticeship, Trades and Occupational Certification Act?

Thank you, Minister, and thank you to our witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Committee, we have agreed to consider Bill 13, An Act to Amend the Interpretation Act. I will ask the Minister of Justice to introduce the bill.

Thank you, Madam Chair. I am here today to present Bill 13, An Act to Amend the Interpretation Act. I would like to thank the Standing Committee on Social Development for their thorough review of this bill. A motion was made in committee to ensure there is an opportunity for public engagement prior to this bill coming into force, and I believe the bill has improved as a result.

Bill 13 will amend the Interpretation Act to allow for the elimination of seasonal time changes in favour of a permanent, year-round time standard. Specifically, the bill establishes a permanent time standard and prescribes that the Commissioner and Executive Council set this out in regulations that will replace the current Daylight Saving Time Regulations.

The proposed amendment will be brought into force by order of the Commissioner at a future date. This means that, after the bill receives assent, biannual time changes will continue to be observed until an order is made to make the change to a permanent time standard. This change was prompted by previously voiced public support, research findings that permanent time is healthier and safer, as well as a growing trend in which Canadian and international jurisdictions are eliminating seasonal time changes in favour of a permanent time standard. This amendment will position the NWT to be able to move expeditiously to a permanent time standard as this issue continues to evolve across Canadian jurisdictions.