Debates of October 2, 2008 (day 35)

Topics
Statements

I suppose the first challenge would be to agree on the definitions or come to understand the definitions of the words that the Member is using — stabilize, levelize — in relation to corporate taxes and those types of things. Clearly, the goal of the government, as laid out by the Premier and that I as well spoke to in my fiscal update, is to come up with affordable government that has new revenues coming in, where we have a government that we can afford, yet we maintain the high level of services that people have come to expect. We’re working diligently to reach that point.

Speaker: Mr. Speaker

Thank you, Mr. Miltenberger. Final supplementary, Mr. Hawkins.

Thank you, Mr. Speaker. As I started off in my very first question to talk about how I seem to be so unquoted that it’s messy, I want to ask the Minister what he is going to do to continue to consult. That’s all I was asking. What are you doing to consult with Members as a discussion paper on these tax initiatives before you run out to the public and scare them?

Mr. Speaker, I recollect, I believe, it was the Member saying this just today in this House: just do these specific taxes; don’t bother; let’s just get at it; we know which ones are the right ones.

This whole process we’ve laid out with the revenue options paper, the mail-out across the North, the two day round table, the briefing of committee, the business planning process which we’re going to feed all this information into, is all geared to engage fully the wisdom and advice that we’re going to get from the committees and the Members, even the Member opposite from Yellowknife Centre, and their feedback into this process to make sure we come up with the best decisions possible.

Speaker: Mr. Speaker

Thank you, Mr. Miltenberger. Oral questions. The honourable Member for Kam Lake, Mr. Ramsay.

Question 407-16(2) Fuel Price Regulations

Mr. Speaker, I want to pick up on the questions I had earlier, but this time I’m going to ask the questions of the Minister of Finance.

The one thing I think residents here in the Northwest Territories have a difficult time with is that we ship our resources south — look at the Norman Wells Pipeline, the proposed Mackenzie Gas Project — and then they get trucked back to us, and our residents get charged exorbitant prices for the fuel once it gets back to the Northwest Territories. We have the resources here. That’s the thing I take issue with. I think we need to find a way and means to keep some of this resource here at home to feed our own residents.

I’d like to ask the Minister of Finance: in regard to regulating fuel prices here in the Northwest Territories, I’m wondering if the government has ever done any work in that area to look at the pros and cons of regulation of that industry, as they do in Atlantic Canada.

Speaker: Mr. Speaker

Thank you, Mr. Ramsay. The honourable Minister of Finance, Mr. Miltenberger.

Mr. Speaker, there’s been work done in other jurisdictions like New Brunswick and Nova Scotia, and assessments of the programs by economists, from what I understand, have concluded that while there may be specific short term, minor gains and political gains, overall there are significant political and economic costs once ceilings are put into place.

Just for discussion purposes I’d like to ask the Minister today if his government, the government here, would take a look at regulating gas prices and home heating fuel prices here in the Northwest Territories. At least let’s look at it. Let’s put everything on the table, the pros and cons. I think our residents need that stability in pricing and not the volatility that they’ve been experiencing lately.

What I would like to offer to do is to share the information we have on the issue of regulating fuel prices and gas prices with the Member, the Chair of the EDI committee, and whatever other information they may require. Then we can sit down and have a discussion so that we’re talking from the same base of information. We’ll see as we move forward what may be possible. Clearly, there’s been work done in other jurisdictions, and I’ll commit to doing that so that we can have that informed discussion.

Mr. Speaker, I thank the Minister for that.

Another question that I do have — and it’s an issue that I’ve raised in the House — gets back to home heating fuel and the fact that the Government of Canada charges GST on home heating fuel. There’s an election going on right now, and I do believe that the Government of the Northwest Territories has to be working with their counterparts in Nunavut and the Yukon Territory to make the federal government understand that charging GST on home heating fuel in northern Canada is the wrong thing to do and that they should stop that practice immediately. That message has to be sent loud and clear to the federal government. Mahsi.

Mr. Speaker, we’ll note the Member’s concern. I think we’re down to less than two weeks now before the election. The issue of the economy and the cost of living has become one of the major themes in the election, and the Premier as well has heard the concerns. We’ll talk about this and how to best approach that particular issue when we have our next gathering tomorrow morning.

Speaker: Mr. Speaker

Thank you, Mr. Miltenberger. Final supplementary, Mr. Ramsay.

Interjection.

Speaker: Mr. Speaker

Thank you. Oral questions. The honourable Member for Weledeh, Mr. Bromley.

Question 408-16(2) Cost of New Tax Collection Efforts

Thank you, Mr. Speaker. The Minister of Finance can stay standing if he’d like.

My question is on revenue options. Specifically, in this case, one of the things I always hear back when I’m trying to come up with innovative ideas is that the cost of tax collection is prohibitive. Right now the federal government collects our taxes for us. If we take it on, is the Minister investigating what the actual cost of that tax collection would be so that we can make an informed judgment on whether that’s a valid response or not?

Speaker: Mr. Speaker

Thank you, Mr. Bromley. The honourable Minister of Finance, Mr. Miltenberger.

Thank you, Mr. Speaker. We’re considering, as we look at potential taxes that were laid out in the options paper, that the new ones would probably require new legislation. As well, depending on which tax it is, it would require a new collection and administration. So, yes, those are issues that we have to factor in and subtract from the potential gains from those types of taxes.

I’m hoping that this side of the House will be able to see the results of that exercise too. Is the Minister looking into revenue options that were not in the revenue options paper? Are his officials looking into other options perhaps as a result of the round table? If so, what are they?

We’re reaching out to Northerners for all and any advice they would care to give us. For example, the Territorial nominee program for immigration was not specifically listed, I believe, in the options paper. It’s something that we’ve been discussing. Same with the better application of the socio-economic agreements to the mines to get fly in workers to actually live in the North. So, yes, we’re looking for all ideas that could help lead to that.

In the two day round table there was significant longer term discussion about how we better market the Northwest Territories, how we sell the great advantages, how we list things and let people know about health programs for seniors and social or financial assistance for students. They have given us advice and identified issues we know are issues; for example, housing for staff in communities.

The exercise was positive enough that all the members present agreed — and I committed to this — that we would meet from now on for the life of this government at the same time next year here in Yellowknife. We’ll meet to go over what has been done, what the landscape is, how we move forward and how we keep factoring in that particular advice we are getting from all the folks from across the North so that we do it on a more planned, consistent way and not just when we are being squeezed for money.

I think the Minister semi-anticipated my next question. There are, as he mentioned, just less than a couple of weeks left. It happens to coincide almost with the federal election.

Are there any particular areas that our public should be aware of that you are interested in comments on that you have not heard from them on? This is an opportunity for our public to hear about that, and I think we’ve had some response on that. If there are any comments on how the public can best focus their comments on areas that might be most fruitful, this would be a good chance to hear about it. Thank you.

The area that is of most interest, the preferred vehicle for everybody we talked to, is the area of new revenue that is not going to come from taxes. The things we have talked about are in terms of the population growing carefully and developing revenue streams in a broadened economic base. For example, the Minister of ITI would be glad to talk to you about the recent diamond cutting operation that has set up an operation in Yellowknife. It is an opportunity that has been realized.

Those are the types of things that I think people are keenly interested in. They tell us as well as the government to control our cost, which, as I have indicated in my fiscal update, we are planning to do.

Speaker: Mr. Speaker

Thank you, Mr. Miltenberger. Time for question period has expired. Mr. Bromley will have a final supplementary.

Interjection.

Speaker: Mr. Speaker

Thank you. The honourable Member for Great Slave, Mr. Abernethy.

Thank you. Mr. Speaker, I seek unanimous consent to return to item 8 in Orders of the Day.

Unanimous consent granted.

Question 409-16(2) Initiatives to Address the High Cost of Living

My question is for the lead Minister responsible for the strategic initiative committee on reducing the cost of living. As I indicated in my Members’ statement, there has been a continued reference to $140 million in subsidies to reduce the cost of living in the NWT.

I believe that these subsidies don’t actually reduce the cost of living; rather, they just make it possible for residents who are struggling to meet their basic needs. So for the Minister responsible: can the lead Minister please identify some of the initiatives the cost of living committee has considered that will actually decrease the cost of living for Northern residents? Thank you, Mr. Speaker.

Speaker: Mr. Speaker

Thank you, Mr. Abernethy. Ms. Lee.

First of all, I have to disagree, Mr. Speaker. I disagree with the Member that the subsidies have not reduced the cost of living. It doesn’t reduce the cost of goods. It has a way of masking the true cost of things, but it does reduce the cost of what the consumers are paying, whether it be housing or power subsidies. You get a subsidy on your power and thus reduce them.

We are working with the ministerial committee on energy to look at all options, alternative energy options, including building hydro, because I believe and we believe that the government needs to look at the long term and make those investments so that we fix the problems for the future as well as what we are doing now. Thank you.

I obviously disagree with the Minister. Subsidies aren’t available to every resident of the Northwest Territories. Most residents of the Northwest Territories don’t get subsidies for anything. Most of the subsidies are for individuals who are under the average salary line, who require assistance just to meet the basic needs of living on a given day. I don’t see how they reduce the cost of living for the average employee or the average person in the Northwest Territories.

I would like to just follow up. One of the items she mentioned was roads. Clearly, roads are a way to reduce the cost of living, but I don’t remember seeing in the last budget and I don’t remember seeing in any of the supps any indication that we are going to be creating new roads or all season roads to any of the communities that don’t already have them. So how are roads, in fact, reducing the cost of living to residents? By residents I mean the vast majority of residents of the Northwest Territories.

I think more details of what exactly these projects are will be coming forth in the business planning review process in a couple of weeks. There are very specific investments being made to extend runways, for example. In some of the small communities we are improving road access. We are improving winter bridges to connect winter road icebridges, and we are making investments in alternative energy programs. So there are some real, specific things to help with cost of living issues in the midterm, short term and long term. Thank you.

Once again it sounds like we are still moving forward on things that we have already done and talked about. I don’t see any new roads being built to increase access, seasonal access, all season access, to roads.

One of the things that we’ve heard out in the streets to actually help reduce the cost of living are things like milk subsidies. I don’t see the cost of living committee coming forward….

I don’t actually see that many programs or services that are geared to actually reducing the cost of living for the vast majority of residents. Once again subsidies are for people who can’t afford the basic needs. Roads. There are no new roads, and each year we are not making it a little bit better, which actually….

Speaker: Mr. Speaker

Do you have a question, Mr. Abernethy?

The trucks are still charging the same.

Can you, the Minister responsible, identify any specific project, anything, that will be reducing the cost of living — anything, any project — for the vast majority of residents of the Northwest Territories? I am talking….

Speaker: Mr. Speaker

Thank you, Mr. Abernethy. Allow the Minister to answer.

Thank you, Mr. Speaker. Subsidies do reduce the cost of living. All of our programs are targeted at different people with different needs, whether it is housing, income security, senior housing, SFA, even health programs. If he is asking if we are going to be writing a cheque to 42,000 people tomorrow, he is probably not going to find that.

But we are looking at investments in commercial power subsidies. For many communities the cost of goods is a big issue, and if we could help with the cost of power for businesses, we are hoping that might help out in some way. The territorial power subsidy applies to everybody.

I just want to inform the Member and the House that I am the lead Minister for this committee. We work together with member Ministers, but the specific proposals with dollars and projects and details about what we are proposing will be presented to the Members for review in the next business cycle, which begins in November. We have to submit it.

Speaker: Mr. Speaker

Thank you, Ms. Lee. Item 9, written questions. Item 10, returns to written questions. Item 11, replies to the opening address. Item 12, petitions. Item 13, reports of committees on the review of bills. The honourable Member for Inuvik Twin Lakes, Mr. McLeod.

Reports of Committees on the Review of Bills

Bill 10 An Act to Amend the Pharmacy Act Bill 13 An Act to Amend the Legal Profession Act

Speaker: Mr. McLeod

Thank you, Mr. Speaker. I wish to report to the Assembly that the Standing Committee on Social Programs has reviewed Bill 10, An Act to Amend the Pharmacy Act, and Bill 13, An Act to Amend the Legal Profession Act, and wishes to report that both Bills 10 and 13 are ready for consideration in Committee of the Whole. Thank you.

Tabling of Documents

Speaker: Mr. Speaker

In accordance with section 21(1) of the Retiring Allowances Act and section 11.1 of the Supplementary Retirement Allowances Act I hereby table the Pension Administration Report — Retiring Allowances Act and Supplementary Retiring Allowances Act at March 31, 2008.

Document 90-16(2), Pension Administration Report — Retiring Allowances Act and Supplementary Retiring Allowances Act at March 31, 2008, tabled.

Speaker: Mr. Speaker

Item 15, notices of motion. Item 16, notices of motion for first reading of bills. The honourable Member for Frame Lake, Ms. Bisaro.

Notices of Motion for First Reading of Bills

Bill 19 Donation of Food Act

Thank you, Mr. Speaker. I give notice that on Monday, October 6, 2008, I will move that Bill 19, Donation of Food Act, be read for the first time. Thank you.

Speaker: Mr. Speaker

Thank you, Ms. Bisaro. Notices. Item 17, motions. Item 18, first reading of bills. Item 19, second reading of bills. Item 20, consideration in Committee of the Whole of bills and other matters, Tabled Document 75-16(2), with Mr. Abernethy in the chair.

Consideration in Committee of the Whole of Bills and Other Matters

Thank you. I call Committee of the Whole back to order. We have two tabled documents for consideration. What is the wish of the committee? Mrs. Groenewegen.