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MLA for Yellowknife Centre

Won his last election, in 2023, with 42% of the vote.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters March 29th, 2004

Thank you, Madam Chair. The Standing Committee on Accountability and Oversight conducted public reviews of Bill 2, An Act to Amend the Income Tax Act, on March 25 and 26, 2004. The committee would like to thank all the witnesses for their submissions which were made on very short notice. The committee would also like to thank the Minister and his staff for presenting the bill.

The committee was very concerned about the short amount of time allowed for the public to review and respond to this bill. Members appreciate that there were special circumstances in this case due to the recent territorial election which did not allow time for the usual opportunity to review and discuss draft business plans in advance for considering the budget. Further, the government is required to notify the federal Minister of National Revenue of changes to tax rates before April 15, 2004.

The committee wishes to put the government on notice that it will now allow short timeframes for public review to become the ordinary course of business for the 15th Assembly. The Minister acknowledged the concern and advised that he will endeavour to bring initiatives before the committee in a more timely manner in the future. Members expect the rest of Cabinet to adhere to the same standard.

Bill 2 proposes to raise the large corporate tax rate from 12 percent to 15 percent beginning with the 2004 tax year. Committee heard opposition to Bill 2 from Mr. David Connelly of the Yellowknife Chamber of Commerce, Mr. Mike Vaydik of the NWT and Nunavut Chamber of Mines, and Mr. Dave Tucker of the NWT Construction Association. All three presenters voiced concerns about the increase to the already high cost of doing business in the North and the impact it may have on the northern economy and businesses. The witnesses rightly pointed out that the business contributes a great deal to the North through jobs, training and spending. They also warn that the increase to the tax rate may encourage some businesses to rearrange their affairs in order to file some of the in income in other jurisdictions with lower tax rates.

In contrast, the committee heard support for Bill 2 from a representative of Alternatives North from Ms. Suzette Montrieul. Alternatives North does not believe the proposed tax increase is unreasonable and considers maintaining the GNWT's social programs to be more important than maintaining low tax rates. Ms. Montrieul pointed to a recent survey by the Centre for Research and Information on Canada that suggested most Canadians, including northerners, consider money for social programs like education and health care a higher priority than cutting taxes or reducing debt. Ms. Montrieul also pointed out that even with the increase to 14 percent, the NWT will still have the fifth-lowest large corporate tax rate in Canada. Further, unlike most other Canadian jurisdictions, the NWT does not have a tax on capital. As Ms. Montrieul stated, the NWT cannot hope to compete with its neighbour, Alberta, which is able to maintain lower tax rates as a result of the substantial oil and gas royalties it enjoys.

The committee finds it regrettable that the current fiscal situation has resulted in the government bringing this tax increase forward, however Members agree with Ms. Montrieul that maintaining social programs is the priority. The reality is that if corporate taxes remain at 12 percent, the GNWT will suffer a net loss as a result of the formula Canada uses to calculate its grant to the GNWT if the federal government does not change its approach in the next year. Members, therefore, believe that an increase is unavoidable.

Members wholeheartedly agree with Mr. Connelly, Mr. Vaydik and Mr. Tucker that the underlying issue is our formula financing agreement with Ottawa which is, as Mr. Vaydik stated, "ridiculous." All three witnesses offered their assistance in working with the GNWT to lobby Ottawa for a reasonable formula. The committee strongly encourages the government to take them up on this generous offer.

This concludes the committee's opening comments on Bill 2. Individual Members may have additional questions or comments as we proceed. Following the committee's review, a motion was carried to report Bill 2, An Act to Amend the Income Tax Act, to the Assembly as ready for Committee of the Whole. Thank you, Madam Chair.

Comments On The Business Incentive Policy March 29th, 2004

Thank you, Mr. Speaker. Mr. Speaker, my topic today is to ask an obvious question. What is the BIP? It's the business incentive policy, Mr. Speaker, but really what does that mean? It is to create a level playing field whereby we formally acknowledge that, tucked well within the beauty of our northern fresh air, our friendly-spirited environment, the government recognizes simple factors that need to be considered; obvious factors, Mr. Speaker, such as a jug of milk here costs more than it does in Calgary, and a kilowatt isn't as cheap as it is in Edmonton. Mr. Speaker, labour comes at a premium higher than it does in Fort McMurray. These are key principles that require corrective solutions and proactive steps. That is why we have the BIP.

Mr. Speaker, the BIP is intended to bring simple baseline market levels closer together so our businesses can compete with southern industries, national industries. Mr. Speaker, by waiving the BIP we could be affecting those who potentially are going to be taxed higher, so we are taking opportunity away from them but the government is asking us to support their corporate tax increase. It seems kind of strange to me. Mr. Speaker, waiving the BIP to me is a slap in the face of the principles it stands for. All I am going to suggest is that those who are responsible for slapping these people in the face save some energy in your arm to wave goodbye to our good, hard-earned money. Thank you, Mr. Speaker.

---Applause

Committee Motion 14-15(3): Recommendation To Establish Regular Reporting Of All Southern And International Travel, Carried March 29th, 2004

Thank you, Mr. Chairman. I am going to go on the faith that our Premier has committed to us as a Legislative Assembly on quarterly reporting. I don't feel comfortable doing all reporting, because I think what we are going to do is create a bureaucracy alone on this travel. When we are talking about making government work a little smoother, a little simpler, I would rather start with his comments, and then we can put that on the check. If we just said international travel, I would be comfortable with that, but all southern travel and international travel is a little too much for me right now. Like I said, if someone wants to make an amendment that says international travel, we can try that and see how much work that creates. I want to see the Premier living up to his commitment, I want to give him the chance to honour his commitment. So before I go too far and support a motion like this that creates a lot of bureaucracy, no. Thank you.

Committee Motion 13-15(3): Recommendation Regarding Self-government Implementation And Incremental Costs, Carried March 29th, 2004

Thank you, Mr. Chairman. Mr. Chairman, I am referring to page 2-70 under grants and contributions, Aboriginal Affairs. The line item I'm referring to is regional reorganization and capacity building. For the 2004-2005 main estimates we have a line item of $200,000, where I noted in 2003-04 in the revised main estimates there was zero, and it notes under actual under 2002-03 $40,000. So I am looking for the reason why basically one year, why did they take the year off, or what happened, or where did they go, or was this cost under some other line items that needs to be explained? Thank you, Mr. Chairman.

Committee Motion 13-15(3): Recommendation Regarding Self-government Implementation And Incremental Costs, Carried March 29th, 2004

Thank you, Mr. Chairman. If the Minister could just explain the anomaly under regional reorganization and capacity building. I notice in 2002-2003 we had $40,000 being spent in that section, yet during the 2003-04 year we had no contributions, then in 2004-05 we jumped to $200,000. If he could explain why, or was it funded under a different section, or why...Did nothing happen?

Committee Motion 13-15(3): Recommendation Regarding Self-government Implementation And Incremental Costs, Carried March 29th, 2004

Thank you, Mr. Chairman. I move that this committee recommends the government continue to hold to its position that incremental self-government costs are the responsibility of the federal government. And further, that the government maintains a strong position with respect to self-government implementation costs in order to ensure the GNWT does not pay costs that are the responsibility of the federal government.

Committee Motion 11-15(3): Recommendation That The Government Formally Respond To The Auditor General's Report On Land Claims Implementation, Carried March 29th, 2004

Thank you, Mr. Chairman. I would like to move that the committee recommends that the government prepare and make public a formal response to the Auditor General's observations in findings on land claims implementation within 60 days.

Committee Motion 10-15(3): Recommendation That Public Works And Services Adopt A Consistent Practice For Showing Compensation And Benefits Costs, Carried March 29th, 2004

Thank you, Mr. Chairman. I think I've exhausted my questions at this stage. I do have a motion so I will pause at this stage in order for anyone else with questions. Thank you, Mr. Chairman.