Debates of February 14, 2005 (day 35)

Thank you, Mr. Minister. To page 3-33, liquor revolving fund.

Agreed.

We will now go back to page 3-10, revenue summary. Mr. Braden.

Thank you, Mr. Chairman. I appreciate committee going back to this to help sort out a few things. What I wanted to look at was some of the considerable variances in one area. In the corporate income tax for this current year, 2004-05, we opened the year with an expectation of $31.75 million in corporate income tax revenue. The revised estimates for the same year show us at some $46.33 million. That’s about a 50 percent increase within this current year in more corporate income tax. That’s a lot more revenue, Mr. Chairman. I am sure the Minister of Finance knows that. I wonder if we can get an explanation of the considerable jump, 50 percent, from forecast to revised. Thank you.

Thank you, Mr. Braden. Mr. Minister.

Thank you, Mr. Chairman. In the area of the corporate income tax, the changes that we see from the main estimates to the revised main estimates are mainly due to the way the federal government had done its estimations. It has changed the way it has done its estimations on a national basis for the corporate income tax. As a result of that, it has improved our position substantially. Thank you.

Thank you, Mr. Minister. Mr. Braden.

Thank you, Mr. Chairman. So this is not just a one-time thing, an adjustment. It’s a new ongoing way of calculating tax. Thank you.

Thank you, Mr. Braden. Mr. Minister.

Thank you, Mr. Chairman. Again, it’s a process that they’ve used and in our situation we would consider it, as probably every other jurisdiction, an improved estimation of where the corporate income tax would be for the fiscal year we would be in. Again, as the numbers become solidified as we actually get to count the returns that have been filed and so on, there could be further adjustments, but this is based on estimations that are made using the new way the federal government is doing it, which has changed our revised estimates. We are hoping that it continues to go forward. The estimations will, again, until they get changed again by the federal government, but this is a new methodology or new forecast on numbers. It’s something we hope that will continue. Again, it all gets adjusted to actuals when the filings are made. Thank you.

Thank you, Mr. Minister. Mr. Braden.

Thank you, Mr. Chairman. The other variance I would like to look into is also in the taxation area and it’s on the personal income tax side. We have a revised estimate for this current year of just over $56 million, Mr. Chairman. That’s going to drop to somewhere around $40 million next year and I am just wondering about that variance. It’s a considerable spread. In this case, a decrease in revenue and I am looking for an explanation there. Thanks.

Thank you, Mr. Braden. Mr. Minister.

Thank you, Mr. Chairman. Mr. Chairman, that drop is related to the implementation of our cost of living tax credit. So that’s why you see a significant change there. It’s the increase that we have put in place through our first budget process and gets implemented now. As that implementation occurs, we see the drop in our personal income tax. Thank you.

Thank you, Mr. Minister. Mr. Braden.

That will do. Thank you, Mr. Chairman, and thank you, Mr. Minister.

Thanks, Mr. Braden. Page 3-10, revenue summary.

Agreed.

We'll go back to the department summary, pages 3-7, 3-8 and 3-9. Agreed?

Agreed.

Page 3-7, operations expenditure summary. Under department summary, $7.900 million. Agreed?

Agreed.

Does the committee agree that consideration of the department's estimates is concluded?

Agreed.

Okay, I'd like to thank the Minister and thank you, Mr. Enge and Ms. Melhorn. What is the wish of the committee? Mr. Menicoche.

Mr. Chairman, to rise and report progress.

Is that a motion?

A motion to report progress.

Thank you, Mr. Menicoche. The motion is in order. To the motion. The motion is not debatable. All those in favour? All those opposed? The motion is carried.

---Carried

Could I have the report of Committee of the Whole, please? Mr. Ramsay.

Thank you, Mr. Speaker. Your committee has been considering Bill 19, Appropriation Act, 2005-2006, and Committee Report 9-15(3), and would like to report progress with one motion being adopted. Mr. Speaker, I move that the report of Committee of the Whole be concurred with.

Thank you, Mr. Ramsay. Do we have a seconder to the motion? The honourable Member for Sahtu, Mr. Yakeleya. There is a motion on the floor. The motion is in order.

Question.

All those in favour? Opposed? The motion is carried.

---Carried

Mr. Speaker, there will be a meeting of the Accountability and Oversight committee tomorrow morning at 9:00, and a meeting of Caucus at 10:30 a.m. Orders of the day for Tuesday, February 15th, at 1:30 p.m.:

Prayer

Ministers' Statements

Members' Statements

Returns to Oral Questions

Recognition of Visitors in the Gallery

Oral Questions

Written Questions

Returns to Written Questions

Replies to Opening Address

Replies to Budget Address

Petitions

Reports of Standing and Special Committees

Reports of Committees on the Review of Bills

Tabling of Documents

Notices of Motion

Notices of Motion for First Reading of Bills

Motions

First Reading of Bills

-

Bill 20, Supplementary Appropriation Act, No. 3,

2004-2005

Second Reading of Bills

Consideration in Committee of the Whole of Bills and Other Matters

-

Bill 15, Tlicho Community Services Agency Act

-

Bill 16, Northwest Territories Business

Development and Investment Corporation Act

-

Bill 18, An Act to Amend the Territorial Court Act

-

Bill 19, Appropriation Act, 2005-2006

-

Committee Report 9-15(3), Standing Committee on

Accountability and Oversight Report on the Review

of the Draft 2005-2006 Main Estimates

-

Committee Report 10-15(3), Standing Committee

on Governance and Economic Development

Report on the Review of the Draft 2005-2006 Main

Estimates

-

Committee Report 11-15(3), Standing Committee

on Social Programs Report on the Review of the

Draft 2005-2006 Main Estimates

Report of Committee of the Whole

Third Reading of Bills

Orders of the Day

Thank you, Mr. Clerk. Accordingly, this House stands adjourned until February 15, 2005, at 1:30 p.m.

---ADJOURNMENT

The House adjourned at 5:55 p.m.