Bob McLeod

Thank you, Mr. Speaker. On January 1, 2008, the northern residents deduction was increased 10 percent, from $5,475 to $6,022.50, the first increase since 1991. Our government has been working with the governments of Nunavut and Yukon to look at requesting an increase in the northern resident deduction. Three territorial Finance Ministers reviewed this, and on October 31, 2012, the Finance Ministers reported to the Northern Premiers’ Forum and also outlined a possible work plan.

Their report noted that increasing the northern resident deduction would decrease personal income tax revenues for...

Thank you, Mr. Speaker. We’re well aware of it and we gave the Members notice. We told them that we would be coming forward with some initiative in this area, and I believe we told them at least a week ahead of time. Thank you.

Thank you, Mr. Speaker. When we explained the rationale behind the $20 million it was so our clients and every community in the Northwest Territories wouldn’t have to pay an extra 13.7 percent increase in power for two years.

At the same time, we announced that we are holding an Energy Charrette on November 3rd and 4th. We’re committed to investing millions of dollars so that we can look at alternative and renewable forms of energy and any ways that we can empower the clientele that use energy in the North so that they can find cheaper ways to generate power. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. This government is doing a tremendous amount to reduce the cost of living. We subsidize the cost of living to the tune of about $200 million a year. We are organizing an Energy Charrette to give more personal responsibility to the people so that they can become more independent through energy generation, and we are also investing in infrastructure as we find that’s the best way to reduce the cost of living. Thank you.

I think there’s a country song called “The Cold Hard Facts of Life.”

---Laughter

I think when you compare Yellowknife to Deline or Ulukhaktok or any other community, it’s obvious there's the cost of transportation, the fact that there’s competition in Yellowknife so that keeps the prices down, and also in the small communities the businesses pay the fully burdened cost of energy. They have to pass that on to the consumer.

As a government, as I said, we spend about $200 million subsidizing the cost of living. We have done studies that show in communities like Sachs Harbour, even though you make...

That’s still a very good and important document. We will spend the money that we’ve outlined in that document over the next three years and I think it will benefit us all. Thank you, Mr. Speaker.

We are still in the process of finalizing attendance and we’ll give him the proper accounting in due course. Thank you, Mr. Speaker.

That is our objective and we want to get more money in Northerners’ pockets. We’re always being very vigilant in this area as well as looking in other areas such as reducing energy costs, so the Energy Charrette, we expect, will go a long ways to that end as well.

The tax collection agreement between the Northwest Territories and Canada requires that both jurisdictions use the same definition of taxable income. A northern resident deduction increase would reduce federal and territorial personal income tax revenue. In our forensic review, the 2008 increase in the northern resident deduction raised the maximum deduction to $6,022.50. At the highest combined federal and territorial tax rate of 43.5 percent, the $547.50 increase would provide annual savings of $235 for tax filers claiming the maximum $6,022.50. The Government of the Northwest Territories’...

The Member seems to be opposed to the fact that we assisted all of the clientele that use energy to the tune of $20 million and we’re hearing people are leaving the North because of that, and I’m very prepared to adhere to the principles and I gather that the Member is as well. So, thank you.