Debates of October 18, 2006 (day 10)

Thank you, Mr. Speaker. My questions this afternoon are for the Minister of Finance and it regards the motion that this Assembly passed last February regarding the northern residents income tax deduction. Mr. Speaker, this is recognition by the Government of Canada, the higher cost of living in northern regions. We currently see a level of deduction of $5,475 but this has not been changed since 1991.

Shame.

Mr. Speaker, it is something that in our motion we recognized as something that could have an immediate impact on wage earners here to manage the cost of living. Mr. Speaker, we requested that the Cabinet work with other territories, northern provinces and Ottawa to enhance this tax deduction, but we have not seen anything. In fact, in my question in June, the Minister said that we were waiting for further progress on territorial finance measures and resource revenue sharing. My question, Mr. Speaker, is have we got to the point with these two big issues that the government can now advance the northern residents income tax deduction, Mr. Speaker?

Thank you, Mr. Braden. The honourable Minister responsible for Finance, Mr. Roland.

Return To Question 128-15(5): Northern Residents Income Tax Deduction

Thank you, Mr. Speaker. Mr. Speaker, we have looked at this area in more detail. In fact, I'm bringing forward a discussion paper to the next Cabinet/FMB meeting to look at this issue in a little more detail. We’ve looked at the costing of it. It will cost our government money as well by increasing our portion or share of it. So we are looking at that area, as well as looking at how we would work with other jurisdictions, not only the Territories but other provinces that would fall into that rate zone that we fall into as well. Thank you, Mr. Speaker.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 128-15(5): Northern Residents Income Tax Deduction

Thank you, Mr. Speaker. It is encouraging to hear that we are putting together a paper. The motion of this Assembly in February requested quite specifically that the government initiate this with the other territories and the northern provinces. I am wondering if that specific request has been acted on at least in more recent weeks, Mr. Speaker.

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 128-15(5): Northern Residents Income Tax Deduction

Thank you, Mr. Speaker. Mr. Speaker, we are beginning our plans in the sense of how we would communicate and what sort of support we could build across other jurisdictions. More importantly, before we can do that, we need to know and understand the parameters of our own decisions we go forward on; how large to increase or push for an increase in a northern residents tax deduction. That portion of it. So we have to build our case of what we would like to do and move that forward. So we are coming with a discussion paper to Cabinet to follow up on this, as well as to come up with a plan to communicate that with other jurisdictions. Thank you, Mr. Speaker.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 128-15(5): Northern Residents Income Tax Deduction

Mr. Speaker, Members of AOC engaged in pre-budget consultations with a number of communities this fall. The cost of living was one of our central themes. In one community with the Members that I was with, we were approached very directly by a worker who said this was something that would make a considerable difference for them. This has broad, broad support, Mr. Speaker. The work that the government is doing now, I guess I would like to ask to what extent will the government be sharing that with other committees and, more important, with the broader community here in the NWT to test the acceptance and the adequacy of any such plan, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 128-15(5): Northern Residents Income Tax Deduction

Thank you, Mr. Speaker. Mr. Speaker, as I stated, I am bringing forward a discussion paper to Cabinet/FMB. Once I have given them information and had some discussion as to how we will target this and bring it forward to what level of increase in that northern residents deduction we are looking for, then I would be happy to meet with Members and go over where we have come with this and begin a plan of rolling out from there. Thank you, Mr. Speaker.