Mr. Speaker, for a lot of years we worked in partnership in the North, coming up with a process that we’re familiar with and understand, working with the federal government to draw down authority to the Government of the Northwest Territories and aboriginal governments and organizations across the territory. We will continue with that work. If Members feel there are other options out there, we’d be prepared to look at those.
Thank you, Mr. Roland. Oral questions. The honourable Member for Hay River South, Mrs. Groenewegen.
Thank you, Mr. Speaker. My questions today are for the Premier and relate to the issue of cost of living in the Northwest Territories. I know that perhaps we were a little critical about not enough revenue options in the budget, but we don’t want revenue options for this government that hit directly at the pocketbooks of Northerners. One thing that does that right now, which is on our books, is the payroll tax. During the election campaign — I haven’t had a chance to raise this in the House yet — I had a lot of people talk to me about that payroll tax, how it went from 1 per cent to 2 per cent and how the rebate related to that did not go up accordingly. We enjoy a fairly favourable personal tax rate. We enjoy the northern residents tax deduction, which has just gone up recently. But this payroll tax at 2 per cent without a corresponding rebate is hitting Northerners hard.
I’d like to ask the Premier: when was the last time the payroll tax was reviewed, and is it something that we could look at to alleviate the cost of living for Northerners?
Thank you, Mrs. Groenewegen. The Hon. Premier, Mr. Roland.
Thank you, Mr. Speaker. As we initially sat down, we looked at a number of tax options that were available to us. The payroll tax is one factor. On the other side, as the Member has mentioned, the cost of living tax credit is also available to Northerners. There was some adjustment a number of years ago, in line with the changes. We’d be prepared, as we’re talking about launching a discussion paper on tax options in the Northwest Territories…. We’re going to Members with that and then going out to the public for some discussion and debate around those issues. We could include this area into that work.
Mr. Speaker, the Premier has set up strategic initiative committees, and one of them is tasked with looking at issues related to the cost of living. Is this something that could be assigned to this committee, as well, in looking at the cost of living in the Northwest Territories in light of taxes?
Mr. Speaker, the tax options we work with, as at this point, stay with the Department of Finance, under the revenue-generating capacity that it has, and our relationship with the federal government and so on. I think we could still work through that scenario, working with Members and deciding where we can go — whether we strike, as we did, for example, on the climate change work. Coming together with some Members, looking at taking that discussion paper out, is an option we can look at.
Mr. Speaker, after we charge employees in the Northwest Territories a 2 per cent payroll tax and then we give a rebate to people and we also pay for the administration of the tax, what do we end up netting from the payroll tax, approximately, in round figures?
Mr. Speaker, the initial payroll tax was established at 1 per cent. Once you paid out the cost of living tax credit to Northerners, the net was very small indeed. Going to 2 per cent has netted the Government of the Northwest Territories more revenue on the general revenue side, and as we would highlight in our budget — I don’t have the specific numbers at this time, but we’ll get that — I know it has increased. There is a more substantial amount that does remain with the Government of the Northwest Territories.
Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.
Thank you, Mr. Speaker. Just in summary, then, and to be very specific: are we being told today that the Premier will look at a review of the payroll tax of 2 per cent?
In the context of looking at our tax options available to us as Northerners, looking at the other side of it, the equation on the cost of living as well as the tax rebate that we do have, I’m prepared to put that in as part of the discussion as we go forward as the Government of the Northwest Territories.
Thank you, Mr. Roland. Oral questions. The honourable Member for Kam Lake, Mr. Ramsay.
Thank you, Mr. Speaker. My questions today are for the Premier. It gets back to my Member’s statement.
It was over three years ago that I first raised the issue of tax exemption of the GST for the three northern territories with the previous government. I know some Cabinet Ministers were around and remember that discussion I had with then-Premier Handley.
I’d like to begin by saying that early last month the Yukon government passed a motion in the House by unanimous vote that their government would lobby the federal government to remove the GST on home-heating fuel, power generation and on the transportation of essential goods north of 60 degrees.
I’m just wondering where our government is at, considering that we’re talking about the cost of living and that it’s going to be one of the biggest issues, especially come winter when people are paying exorbitant prices for home-heating fuel. I’m wondering where that is on the government’s agenda. Mahsi.
Thank you, Mr. Ramsay. The Hon. Premier, Mr. Roland.
Thank you, Mr. Speaker. I’ve had discussions with Premier Fentie of the Yukon, looking at this initiative. In fact, at the time I attended the Western Premiers’ Conference, he attended the Finance Ministers’ meeting in Ottawa. We had discussions about carrying the message from both parts. We are engaged with the Yukon government, through our staff, to look at options that could be available to us. I’m aware, from the meeting in Ottawa with Finance Ministers, that other jurisdictions are, as well, interested in looking at what options may be available to them around the GST.
Thank you, Mr. Speaker. Maybe the Premier is familiar with the situation. He has had a discussion with Premier Fentie. As I mentioned, we’re here for another two days. Would his government be willing to come forward with a motion similar to the one passed by the Yukon government so that we, the Members of the 16th Legislative Assembly, can lend our support to the efforts of the Premier and Premier Fentie and Premier Okalik? I think that adds to their arsenal when they do go to Ottawa and try to fight for tax exemption on those important issues. Mahsi.
Thank you, Mr. Speaker. If this Assembly feels a motion is needed in this area, we would be glad to work with Members to come up with a joint initiative. We are at the table working with the Yukon, looking at how we can work jointly with them in advancing this. As well, at the Northern Premiers’ Conference we will once again be having discussions with northern Premiers. I’m sure Premier Fentie will be looking to address this as well.
Thank you, Mr. Roland. Oral questions. The honourable Member for Nahendeh, Mr. Menicoche.
Thank you, Mr. Speaker. My questions today are for the Hon. Norman Yakeleya, Minister of Transportation.
I hear with great interest that Highway No. 7 is still having its share of problems. That’s the section between Fort Simpson and Fort Liard. The conditions are still muddy, and the road is closed once again. This is really, really causing a lot of grief to constituents, especially those in Fort Liard. I know that the Minister committed to reconstruction and fixing of the drainage surface and great improvement. I’d just like to know what has been done in the planning stages so far, because I’m thinking that if they’re going to do that work, perhaps they should begin building that bypass road to provide uninterrupted access.
Thank you, Mr. Menicoche. The honourable Minister responsible for Transportation, Mr. Yakeleya.
Thank you, Mr. Speaker. The challenge of Highway No. 1 has certainly been a very frustrating point in our work on Highway No. 7 with our department and our contractors. Work is being done in terms of Highway No. 7 reconstruction. We are digging up that part of the section. What we want to do is take part of the section, dig it up, put the proper basing in there to rebase the road, and then reconstruct it to a passable section of road. We are looking at options in terms of how we can keep traffic moving between Fort Liard and the other communities, so we will take the Member’s suggestion. If it gets really bad, then we would have to look at a bypass to keep the traffic flowing for the people in Fort Liard.
Thank you very much, Mr. Speaker. I’d like to ask the Minister to reach out and grab all the resources he has, put them together and then build our road.
Mr. Speaker, I’d like to know how much work has been done to date. It’s apparent to constituents that it looks like nothing is being done, but I’d like to know: have tenders been provided? Who is going to do the work? When, at the bare minimum, can they build a bypass road past these muddy sections that are causing the most interruption?
Mr. Speaker, if I were to reach out, I would have other MLAs question me.
Mr. Speaker, we have looked at the road. We have a plan in place. Again, with the weather being on our side, Mother Nature plays a big part in terms of how much work we can get done. We want to do rebasing of that section. We are looking at it. I will instruct my officials to come back and look at the options. This is going to cause us a lot of hiccups during this season. We would have to look at a bypass that would at least be less disruptive to the travelling public of Nahendeh. I will get back and keep the Member informed. However, the contractors and our staff in that section are working extra hard. We’re working to see how soon we can get this road back into standard operational travelling condition.
Once again, the bypass road has got to be part of the reconstruction plans. I would like to know when they will be building and constructing the bypass road. Failing that, Mr. Speaker, can we get a bridge?
Mr. Speaker, we’ll have to wait for the bridge.
I will call my officials this afternoon, and we will, hopefully, have some discussions on the bypass road and see what type of work is being done so far. If a bypass road is something that we have to do, we will do it for the travelling public. However, I would like to first speak to my officials, and I will keep the Member informed in terms of the options that he’s talked about today.
Thank you, Mr. Yakeleya. Final supplementary, Mr. Menicoche.
Thank you, Mr. Speaker. I’d just like to reiterate one more time the frustration of the travelling public and the people of my communities at having the road closed.
Once again, can the Minister tell me when he can start building the road? I think we can still move gravel, even if the conditions are rainy, up to the muddy sections there. Thank you.
I understand the frustration from Liard residents and people in Fort Simpson about the road closure. I understand completely, because I come from a region that doesn’t have a road. I know the frustration the residents are talking about. I would share my frustrations with the Member here. We are moving on this road. We are looking at what we can do. We are looking at how we can get this road back into drivable condition.
We did have a road that was transferred by the federal government to this government. The standards weren’t up to par, so we are reconstructing roads right across the North to bring them to meet the National Standards Safety Code and have the safety of our public on these roads as a first priority. I will get back and I will speak with the Member after the House in terms of the details of action. I wouldn’t mind taking him to Highway No. 7 here and looking at how we can do this road to satisfy his people.
Thank you, Mr. Yakeleya. Oral questions. The honourable Member for Inuvik Twin Lakes, Mr. McLeod.
Thank you, Mr. Speaker. When I was reviewing senior management within the GNWT, I noticed that 15 per cent were aboriginal, and this was after 20 years of Affirmative Action. I was appalled at the numbers that I’ve seen. I use the word “appalled” because it sounds better than “totally disgusted.”
A few years ago they had the Public Service Career Training Program, which helped some of these people who had experience but lacked some technical skills. This helped them work their way up the ladder. It was a good program. My understanding is that it had a fairly good success rate. The program is no longer in existence.
I’d like to direct my questions today to the Minister of Human Resources. I’d like to ask him why the decision was made to cancel the program. Thank you.
Thank you, Mr. McLeod. The honourable Minister responsible for Human Resources, Mr. Bob McLeod.
Thank you, Mr. Speaker. My understanding is that it was a decision made at the time of division, at which time there was legislation that prevented the Legislature from going into a deficit position. At that time it was one of the reductions. There was a small portion that was left over that went into Education for training.
I’m not quite sure if I understand the answer, but since division our public service has grown quite a bit more than we had when Nunavut was still a part of the Northwest Territories.
I’d like to ask the Minister if he is aware of where that direction came from to cancel that program. Was it a decision made by the Legislative Assembly?
As part of a budget reduction exercise, it was a proposal that was put forward as part of the transition planning process from one government to the next incoming government. It was a proposal that was accepted and passed by the Legislative Assembly.
Mr. Speaker, I thank the Minister for that. We have a lot of good, hard-working aboriginals out there who want the opportunity to move up based on the merit of their work. Some of them can go to school, but a lot of them, like I said before, with experience to do the work, just need a little more training. By training them, I think this government would realize savings by not having to pay SFA if they’re going to school. They’d be taking the training and doing the work at the same time.
I’d like to ask the Minister what opportunities there are today for aboriginal employees of the government who wish to gain more training without having to go to school and to be able to work their way up the ladder.
The government still has programs that are available to be accessed. One is the Management Assignment Program, which has an intake of, I believe, 20 people per year, and I think it had taken input in until last year. Anybody who applies or whose name is put forward has to be assessed with regard to the skills they have. Then, basically, they obtain experience through transfer assignments and work assignments of that ilk.
Also, senior managers or departments have the ability to identify aboriginal people who have the potential to move up, and they can develop a training plan for them so that they can go out to university and get their graduate degree or what have you. These are the kinds of things that are usually negotiated at the deputy minister level. Other than that, they can take training, and the government will reimburse them when they successfully complete the course.
I said that I’d never endorse the practice of hiring aboriginals just to fill a quota, but there are many good, qualified and willing people out there. The Minister spoke of the transfer assignments. I think that’s just another way of getting specific people into specific positions. I don’t think it’s designed for aboriginals. I may pose that as a written question.
I’d like to ask the Minister if Affirmative Action applies to the MAP program.
The Affirmative Action Policy applies to the MAP program, but generally, it’s application-based. If an aboriginal person doesn’t apply, then they don’t have an opportunity to be selected.
I should point out that our government is looking at a number of different ways to try to address the problem. One is the employment equity program, whereby we would target specific groups and sectors to increase the number of aboriginal people. Also, we’re reviewing the Public Service Career Training Program, which was cut some years ago, to see if it could still apply.
Thank you, Mr. McLeod. Oral questions. The honourable Member for Tu Nedhe, Mr. Beaulieu.
Thank you, Mr. Speaker. Today in my Member’s statement I spoke about housing issues in the Northwest Territories. I have questions for the Minister of housing.
Has the Minister given direction to the Housing Corporation to establish a long-term plan that specifically addresses the issue of the CMHC’s declining fund?
Thank you, Mr. Beaulieu. The honourable Minister responsible for the NWT Housing Corporation, Mr. Miltenberger.
Thank you, Mr. Speaker. As the Member knows, that’s an issue of some complexity. We have engaged with the other provinces and territories. We passed a motion in this House recently for support and encouragement to the federal government. We’re going to work collectively with the other provinces and territories to encourage the federal government and Minister Solberg, and we acknowledged that in our Framework for Action. As we move forward with the business-planning process, we’re going to have to keep working on the political pressure to elevate this to the national table. The Ministers of Finance and the Premiers have also picked up the issue of housing as a critical national one for us. We have taken that offensive to address that issue.
Mr. Speaker, the Minister kind of answered my second question, about what the federal commitment has been so far, but I’m curious. I’m assuming that the decline is going to happen. I’m assuming that CMHC is not going to come back with long-term O&M dollars. My question is: has the Minister given direction to the Housing Corporation to address this issue of the CMHC declining fund?
Mr. Speaker, the intention is not to throw in the towel in terms of negotiations with and encouragement of the federal government. We’re convinced that sooner or later they’re going to have to recognize that they have a national crisis on their hands which they have to play a role in. In the meantime, as we go to our Framework for Action plan and our annual business-planning process, the issue of declining funding is going to become more and more evident, I believe, starting in 2010–2011.
