Debates of March 10, 2009 (day 26)

Total department, not previously authorized, $6 million.

Agreed.

Thank you, committee. Does the committee agree that completes Supplementary Appropriation No. 1, (Infrastructure Expenditures) 2009-2010? Mr. Abernethy.

Thank you, Mr. Chairman. I move that consideration of Tabled Document 25-16(3), Supplementary Appropriation No. 1 (Infrastructure Expenditures) 2009-2010 now be concluded and that Tabled Document 25-16(3) be reported and recommended as ready for further consideration in a formal session through the form of an appropriation bill. Thank you, Mr. Chairman.

Thank you, Mr. Abernethy. The motion is on the floor and is being distributed now. The motion is in order. To the motion.

Question.

Question has been called.

---Carried

That completes consideration of Supplementary Appropriation No. 1. The Minister may excuse his witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Thank you, committee. Does committee agree that we will now move on to consideration of Bill 5?

Agreed.

Thank you. Does the Minister have opening remarks?

Mahsi, Mr. Chairman. I am pleased to speak to you about Bill 5, the Professional Corporations Act.

This bill would allow self-employed members of regulated professions to incorporate where they are not now permitted to do so; provided that the member’s professional responsibilities are not affected.

Lawyers, accountants and most health professionals may not currently incorporate, as the limited liability of an ordinary business corporation is inconsistent with their professional responsibilities. While members of these professions accept that liability for professional errors or misconduct should not be diminished, the ability to incorporate can provide tax advantages for individuals in business that are not currently available to members of these professions.

Mr. Chairman, in order to remove this disadvantage, this bill allows for the creation and recognition of a different type of corporation, a professional corporation. Such a corporation should be treated the same as all other corporations, including for tax purposes, except that its voting members must be members of a designated profession and it would not have the limited liability that other corporations have.

This legislation was requested by the legal, accounting and medical professions. The development of the bill has been a joint effort. Justice staff worked closely with officials from the Department of Finance, responsible for legislation in respect of the accounting professions and the Department of Health and Social Services, in respect of the health professions. The bill was completed after consultation with the professions that might be affected.

This bill supports the principle of fairness in the taxation system, creating the same choices for professionals as for other businesses in the Northwest Territories and the same choices professionals would have if they resided and practiced in most other Canadian jurisdictions. Attracting and retaining professionals is currently a challenge in the NWT and the absence of legislation to permit them to operate within a professional corporation may be one factor.

Mr. Chairman, I would like to thank the Standing Committee on Social Programs for its review of Bill 5 and members of the various professions for their input into the development of this bill. I would be happy to answer any questions that Members may have. Mahsi, Mr. Chairman.

Thank you very much, Minister Lafferty. I would now like to ask the chairperson of the Standing Committee on Social Programs which reviewed this bill to make comments. Mr. Beaulieu.

Thank you, Mr. Chairman. The Standing Committee on Social Programs conducted its public review of Bill 5, Professional Corporations Act, on January 16, 2009. The committee thanks the witnesses, Ms. Linda Whitford of the NWT Law Society and Mr. Robert O’Rourke, for their participation. The committee also thanks the Minister and his staff for presenting the bill.

Mr. Chairman, the bill allows members of certain professions to incorporate. In addition, the governing bodies of these professions are enabled to create bylaws or rules regarding the professional corporations. Members of a profession who are shareholders in or employees of a professional corporation are subject to the same professional and ethical responsibilities as other members of the profession in respect to their dealings with their clients and their governing bodies.

Mr. Chairman, non-substantive amendments have been made to the bill by committee motion and with the concurrence of the Minister. Following the committee’s review, a motion was carried to report Bill 5, Professional Corporations Act, to the Assembly as ready for Committee of the Whole as amended and reprinted. This concludes committee’s opening comments on Bill 5. Individual Members may have additional questions or comments as we proceed. Thank you, Mr. Chairman.

Thank you, Mr. Beaulieu. I would now like to ask the Minister responsible for the bill if he would like to bring witnesses into the House.

Yes, Mr. Chairman.

Thank you, Minister. Does the committee agree?

Agreed.

Thank you, committee. I will now ask the Sergeant-at-Arms to escort the witnesses into the Chamber.

Would the Minister please introduce his witnesses?

Mahsi, Mr. Chairman. To my left I have Mark Aitken, director of legislation, and Gary McDougall, director of legal registries. Mahsi, Mr. Chairman.

Thank you, Mr. Minister. I will now open the floor to general comments on Bill 5. Does the committee agree that we will move to detail, clause by clause?

Agreed.

Thank you, committee. Bill 5, Professional Corporations Act, we will start with Clause 1.

---Clauses 1 through 18 inclusive approved

Thank you, committee. To the bill as a whole.

Agreed.

Does the committee agree that Bill 5, Professional Corporations Act, is now ready for third reading?

Agreed.

Thank you, committee. Bill 5 is now deemed ready for third reading.

---Bill 5 as a whole approved for third reading

Thank you, Minister and your witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Thank you.

Committee, we have agreed to consider Bill 9, Northern Employee Benefits Services Pension Plan Protection Act. I will ask Minister Miltenberger, responsible for Bill 9, to introduce the bill.

Thank you, Mr. Chairman. I am pleased to present Bill 9, Northern Employee Benefits Services Pension Plan Protection Act.

The purpose of Northern Employee Benefits Services, or NEBS, is to administer the pension and group benefits of participating employers residing in the Northwest Territories and Nunavut.

This bill provides protection from creditors for the pension entitlements of Northwest Territories members of the NEBS Pension Plan and restricts the ability of members to pledge as security their pension entitlements under the plan.

Mr. Chairman, that concludes my opening remarks. Thank you.

Thank you, Minister Miltenberger. Would the Minister like to bring witnesses into the House?

Yes, Mr. Chairman.

Thank you, Minister. Does the committee agree?

Agreed.

Sergeant-at-Arms, will you please escort the witnesses into the House.

Minister Miltenberger, could introduce your witnesses?

Thank you, Mr. Chairman. I have with me Margaret Melhorn, deputy minister of Finance, Mr. Rob Taggart, director of policy and planning, and Mr. Ian Rennie, legislative council. Thank you, Mr. Chairman.

Thank you, Minister. I will now open the floor to general comments on Bill 9. Mr. Ramsay.

Thank you, Mr. Chairman. I am just wondering about current plan holders under the NEBS Pension Plan that have pledged security. Are creditors going to be able to go after it once this legislation is passed? Are creditors going to be able to go after pension plan holders that have already pledged their plans as security? Thank you.

Mr. Chairman, I will let Mr. Taggart respond to that.

Thank you, Mr. Minister. Mr. Taggart.

There is no retroactivity associated with this.

Thank you, Mr. Taggart. Thank you, Mr. Ramsay. Are there any further general comments? Does committee agree we move to detail?

Agreed.

Committee, Bill 9, Northern Employee Benefits Services Pension Plan Protection Act, clause 1.

---Clauses 1 through 6 inclusive approved

To the bill as a whole.

Agreed.

Thank you. Does committee agree that Bill 9, Northern Employee Benefits Services Pension Plan Protection Act, is now ready for third reading? Bill 9 is now deemed ready for third reading.

---Bill 9 as a whole approved for third reading

Thank you to the Minister and witnesses. Sergeant-at-Arms, please escort the witnesses. Thank you, committee. Mr. Abernethy.

Thank you, Mr. Chairman. I move that we report progress.

Thank you, Mr. Abernethy. The motion is on the floor. It is not debatable.

---Carried

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

Mr. Speaker, your committee has been considering Tabled Document 25-16(3), Supplementary Appropriation No. 1 (Infrastructure Expenditures) 2009-2010; Bill 5, Professional Corporations Act; and Bill 9, Northern Employee Benefits Services Pension Plan Protection Act, and would like to report progress, with one motion being adopted, that Bills 5 and 9 are ready for third reading, that consideration of Tabled Document 25-16(3) is concluded, and that the House concur in those estimates and that an appropriation bill to be based thereon be introduced without delay. Mr. Speaker, I move that the report of Committee of the Whole be concurred with.

Thank you, Mr. Bromley. Motion is on the floor. Do we have a seconder? The honourable Member for Frame Lake, Ms. Bisaro.

---Carried