Bob McLeod

Thank you, Mr. Speaker. We’ve been looking at finding ways to reduce the cost of living for a long time. There are no silver bullets in doing that. The biggest cost for the average homeowner or family is cost of energy, so we think an Energy Charrette will help us find a way to do exactly what the Member is suggesting. Thank you, Mr. Speaker.

We are looking at both, Mr. Speaker. Short-term, what can we do in terms of conservation and so-called low-hanging fruit and also the longer term approach to power generation. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. As we’ve said several times, the Energy Charrette is to move us away from transmission to generation and dealing with the potential of having to live with low water going forward. So we expect to see the outcomes that will show us how to go forward in terms of empowering energy users, so that we can help find a way to become more independent in power generation and also to find cheaper ways of producing power. Thank you, Mr. Speaker.

The reason it costs us money is it reduces the amount of personal income tax that we collect. For example, the 2008 increase, since the claimed amount must be the lesser of the maximum allowable of $6,022.50 and 20 percent of net income, taxpayers with net income of less than $30,115 will not benefit from a northern resident deduction increase.

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.