Thank you, Mr. Speaker. I want to continue with some questions for the Minister of Finance. It’s easy to be critical, but I think sometimes you also have to offer some suggestions. I’d like to ask the Minister if the government has ever entertained what it would mean to our population if we did away with the personal income tax here in the Northwest Territories. Instead of increasing it, what if we did away with it? What would that mean, and would they be able to deliver that type of analysis for our consideration?
Thank you, Mr. Ramsay. The honourable Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. I believe that work has been done, looking at, if not getting rid of income tax completely, a type of flat tax. I can commit to share that information with the Member and with committees.
I think it’s creative things like that that we need to look at. We need to be attracting people here, and we need to be competitive. So we need to be looking at everything.
One of the things I was hoping to ask the Minister today, and I think he’s heard it loud and clear…. There’s no appetite, whether in Yellowknife, Inuvik, Fort Smith or Hay River for that matter, for tax increases that are going to add to the cost of living here in the Northwest Territories. There’s absolutely no appetite for it. It’s already expensive enough to live here.
I’m wondering if the Minister could commit to taking the proposed initiatives that will increase the cost of living for our residents and putting them on the shelves for the time being. Let’s start discussing some other options. Those ones have no place here.
What we have in the North is a very high level of service by this government with some of the best programs, I believe, in the country, be it for seniors, health, the SFA or some of our housing programs.
The question is, it’s not just taxes. The issue is the type of government we want and we think we can afford. What are we prepared to pay to have that government and those types of services? Very clearly, we’re going to come forward with all the work we’re undertaking right now. There will be a full chance for committee to engage in the discussion. We’re doing the preparatory work to get all that pulled together. As we move into the business planning process, I’ll be coming forward with all that work so we can have the full discussion.
At this point I think we have to keep our options on the table, both with reductions and revenue options, which include growing the territory and the economy as well as possible tax considerations.
Mr. Speaker, I agree with the Minister of Finance, but I think if we’re going to have an overall view of everything, we need to have all of our cards on the table. Until the government goes out and does the analysis of our spending government-wide, we won’t be able to do that. Today we don’t know the value of the dollars we are spending. That type of analysis hasn’t been done. Until it’s done, I’m not sure what we’re going to gain by going through this process, or any other process for that matter, budget to budget, unless we get a handle on where we’re spending our money and how effective every dollar is that we’re spending. We need to do that level of analysis.
Like I said, it doesn’t have to happen overnight. It could be one or two departments a year. We have to start somewhere in order to make a difference, and I’d like to see that happen.
I appreciate the Member’s concern. We have committed to and the Assembly has voted money for a process that we are now undertaking. The plans have been laid out. We’re prepared to work with committee to make sure they’re the best plans possible.
I’d also point out that every year this Assembly, through the work of the committees and the government, votes a budget. If this Assembly makes determinations that the government is too big or that there are changes needed, then the authority to make those changes is here.
We came forward with a number of options last year. There was significant debate. We’ve regrouped. We’re going to come forward with another package geared to those reductions. As well, we’re going to come back with other options in terms of revenue.
This Assembly has the authority in this hall to make those decisions. If the determination is made that we’re going to shrink government by 25 per cent or we’re going to make a decision, then that’s the way our institutions are set up. We’re bringing forward our best work here to say that this is what we need to have a sustainable government. We’re looking forward to working with committee and Members to in fact achieve that goal.
Thank you, Mr. Miltenberger. Final supplementary, Mr. Ramsay.
Thank you, Mr. Speaker. Again, I think the Minister is correct in what he’s saying, but I just have to say what we saw last budget session. That happened because of haphazard cost cutting measures government-wide. There was no rhyme or reason to what happened in February.
I’m saying something needs to happen so that level of analysis, the detailed information, does take place so we can all make decisions collectively. I just didn’t see that happening. When you just hand it over to your DMs and tell them to cut $6 million in this department, $7 million in that department, you’re just going to get back the product they want you to get back. There’s no political direction there. So I think we need to take the reins back.
I’d like to ask the Minister again: will he commit to some type of zero based spending review government-wide? It doesn’t have to be every government department today, but we have to start somewhere.
Mr. Speaker, that commitment has already been made. There’s a program review that’s been set up. There’s been money voted for their operation. We’ve laid out the work plans, the terms of reference for the committee. We’ve committed to working with committee to lay out the planning and engagement so they, along with Cabinet, have an oversight role to play.
As the Member indicated, that’s a process that’s going to take time. This is a large, complex organization with many, many component pieces. In the meantime we have another business planning process cycle now upon us. We’re going to be doing capital. We’re going to be moving into the business planning process. We’re going to be coming forward with further suggestions on what the government is proposing in terms of reductions and revenue options. Clearly, we’re going to have to work through this process as we wait for this program review process to kick into gear. We can’t wait, so between us we’re going to have to come up with a way to have a sustainable government.
Thank you, Mr. Miltenberger. The honourable Member for Weledeh, Mr. Bromley.
