I’m sorry, Mr. Chair; perhaps you could repeat that. It’s very hard to hear back here.
Ms. Bisaro, for the record, could you introduce your witness, please.
Yes, certainly. Thank you, Mr. Chair. With me is Ms. Kelly McLaughlin. She’s legislative counsel, legislative division with the Department of Justice, GNWT.
Thank you, Ms. Bisaro. Welcome, witness. General comments with regard to the Bill? Ms. Lee.
Thank you, Mr. Chairman. On behalf of the government and as the Minister of Health and Social Services I would like to speak briefly in favour of this private Member’s public bill, Bill 19, Donation of Food Act. The proposed bill would exempt the donor, including individuals and businesses, from liability when donating food provided that the donor does not intend to injure and is not reckless. The bill does not apply to a person who distributes donated food for profit.
Mr. Chairman, the current Public Health Act regulates the safety and sanitary handling and preparation of food, but it is not designed to provide food donor protection from liability. This stand-alone piece of legislation will be able to fill that gap. The Public Health Act and its applicable regulations will continue to ensure that donated food is handled in a safe manner and applies to any establishment where food is served to the public.
Mr. Chairman, the bill before us today is consistent with other food donor protection legislation enacted in nine other jurisdictions in Canada. The legislation, when enacted, will be a useful tool in reducing wasted food, especially perishable products like vegetables and dairy products that are most frequently disposed of by retailers and food distributors. Rather than ending up in landfills, nourishing food will be distributed to those who are most in need. Given that all jurisdictions have substantially similar legislation, we feel confident that it can be safely implemented in the North.
Mr. Chairman, I’d like to take this opportunity to thank Ms. Wendy Bisaro, Member for Frame Lake, for bringing this bill forward and all the other Members who have supported it. I would also like to personally recognize the valuable contribution of Mrs. Ruby Trudel, a well known Yellowknife resident who has taken on not only this latest worthwhile initiative but many other public health and wellness issues over the years for the benefit of our residents, not only in Yellowknife but all over the North.
This legislation will go a long way in providing legislative assistance to our partners like the Mrs. Trudels in our communities large and small who volunteer their time and resources to provide food to those in need.
General comments on the bill? Mr. Bromley.
Thank you, Mr. Chair. Just very briefly I wanted to add my voice of accolade here to Ms. Bisaro and Mrs. Trudel and to those who helped put this together.
We heard earlier today about some of the waste recovery proposals the Minister of ENR is proposing. This is a full cost accounting approach. We know that our food now comes from thousands of kilometres away. To have that energy expended and the cost.... A lot of that food going to waste is crazy in today’s world. So very briefly, all kudos, and I’m very happy to see this bill go forward.
General comments? Clause by clause? Okay; we can draw our attention to Bill 19. We’re on page 1, clause 1.
Clauses 1 through 3 inclusive approved.
To the bill as a whole.
Bill 19 as a whole approved.
Does committee agree that Bill 19 is now ready for third reading?
Bill 19, Donation of Food Act, approved for third reading.
Bill 19 is now ready for third reading.
I’d like to thank Ms. Bisaro and her witness. Sergeant-at-Arms, could you escort the witness out.
As we agreed, the next bill we’ll be dealing with is Bill 14.
At this time I’d like to ask the Minister responsible for the bill if he has any opening comments. Minister Miltenberger.
Thank you, Mr. Chairman. I’m pleased to present Bill 14, An Act to Amend the Income Tax Act.
This amends the provisions of the Northwest Territories Income Tax Act to make them consistent with parallel provisions of the Income Tax Act, Canada, that relate to the charitable donations tax credit, the medical expense tax credit, assessment of returns and tax avoidance.
These amendments are routine housekeeping measures that will have no significant impact on our revenues and which will not change income tax rates. These changes are necessary to keep the Northwest Territories Income Tax Act harmonized with the federal act.
Ensuring our act is consistent with the federal act helps reduce the complexity of administration for both the taxpayer and the Canada Revenue Agency. Under our tax collection agreement with Canada, if we do not harmonize our act, we could be required to pay additional administration costs.
The proposed legislation amends the act to make the treatment of the NWT charitable donations credit consistent with the federal treatment. A taxpayer claiming this tax credit will be required to use the same donation amount for the purpose of calculating both the federal and territorial credits. This will prevent people who move from or to the NWT from either losing part of the credit or being able to claim part of it twice.
Harmonizing the provisions of the medical expense tax credit will increase the benefit for the small number of NWT taxpayers who claim medical expenses for dependants. In 2007 an estimated 20 NWT taxpayers had about $32,000 in medical expenses for dependants that would be eligible for a credit.
The proposed legislation also adopts several relevant sections of the federal act dealing with administrative procedures on filing income tax returns, assessments, withholding of tax and payment of tax owing. This amendment further simplifies the administration of both acts by the Canadian Revenue Agency.
Finally, the general anti-avoidance rule in the federal Income Tax Act was introduced in 1988 as part of the tax reform. It has been used by the Canada Revenue Agency as the last resort to disallow tax benefits from abusive or unacceptable tax planning transactions that are inconsistent with the overall object or spirit of the law. Unlike tax evasion, tax avoidance does not face prosecution in a criminal court.
The Canada Revenue Agency has requested that the NWT establish a similar provision. The proposed legislation will amend the act by introducing a new section on a general anti-avoidance rule that parallels the federal general anti-avoidance rule provision.
Mr. Chairman, I am prepared to answer questions Members may have.
At this time I’d like to ask the standing committee that reviewed the bill if they have any opening comments. Mr. Abernethy.
Thank you, Mr. Chair. The Standing Committee on Government Operations held a public hearing on Bill 14, An Act to Amend the Income Tax Act, on October 6, 2008.
The proposed amendments make the Income Tax Act consistent with similar provisions in the federal Income Tax Act. These amendments were recommended by the Canada Customs and Revenue Agency and are part of a nationwide updating exercise.
The Northwest Territories, Nunavut and New Brunswick are the three remaining jurisdictions needing to update their legislation. The affected provisions are related to charitable donations, medical expense tax credits, returns and assessments, withholding and payment, and to tax avoidance.
The amendment to the medical expense tax credit provisions will allow caregivers to claim more of the medical and disability related expenses incurred on behalf of their dependent relatives.
The proposed new section on general anti-avoidance rules will provide for the identification of tax avoidance transactions and permit the reversal of the tax benefits from these transactions.
The proposed changes to the NWT charitable donations credit will require a tax creditor who claims a federal donation to credit the same value for the purpose of the NWT donations credit.
This concludes the committee’s comments on Bill 14, An Act to Amend the Income Tax Act. Individual members of the committee may have comments or questions as we proceed.
At this time I’d like to ask the Minister if he’ll be bringing in any witnesses. Mr. Miltenberger.
Yes, Mr. Chairman.
Does committee agree the Minister brings in his witnesses?
Agreed.
Sergeant-at-Arms, could you escort the witnesses in.
For the record, Mr. Minister, could you introduce your witnesses.
Thank you, Mr. Chairman. I have with me Ms. Margaret Melhorn, Mr. John Monroe and Ms. Lana Birch from Finance, FMB.
Do you want to clarify that for the record?
Thank you, Mr. Chairman. Ms. Birch is from Justice.
Thank you, Mr. Minister. Welcome, witnesses. At this time general comments with regard to Bill 14. General comments?
Detail.
Okay; we’ll switch to Bill 14. Page 1, clause 1.
Clauses 1 through 6 inclusive approved.
Bill 14, An Act to Amend the Income Tax Act. The bill as a whole.
Bill 14 as a whole approved.
Does committee agree that Bill 14 is ready for third reading?
Bill 14, An Act to Amend the Income Tax Act, approved for third reading.
Bill 14 is now ready for third reading.
With that, I’d like to thank the Minister and thank his witnesses. Sergeant-at-Arms, could you escort the witnesses out.
Committee of the Whole, Bill 16, Write-off of Debts Act. At this time I’d like to ask the Minister sponsoring the bill if he has any opening comments. Mr. Miltenberger.
Thank you, Mr. Chairman. I’m here to introduce Bill 16, Write-off of Debts Act, 2008–2009.
This bill authorizes the write-off of debts listed in the schedule of the act. Pursuant to section 24 of the Financial Administration Act, Legislative Assembly approval is required for the write-off of government assets or debts exceeding $20,000. Pursuant to section 82 of the Financial Administration Act, the write-off of debts owed to a public agency exceeding $20,000 and the write-off of debts owed to the Workers’ Safety and Compensation Commission exceeding $50,000 must receive Legislative Assembly approval.
The write-offs being proposed in this act will not require a new appropriation. They will be charged against allowances for bad debts that were established in department budgets at the time it was determined that collection of the debt would be unlikely.
I wish to emphasize that the write-off of a debt does not relieve a debtor of the liability for repayment. The government will continue to attempt to collect the outstanding amount. Through continued reviews by staff, future recovery of the debt may still be achieved. In addition, in the case of debts owed by companies, staff will track the principals of each firm for future credit reference.
That concludes my opening remarks. I would be pleased to answer any questions Members may have.
Thank you, Mr. Minister. At this time I’d like to ask the standing committee who reviewed the bill if they have any comments on the bill. Mr. Abernethy.
Thank you, Mr. Chair. The Standing Committee on Government Operations reviewed Bill 16, the Write-off of Debts Act, 2008–2009, at a meeting on October 3, 2008.
Following the clause by clause review a motion was carried to report to the Assembly that Bill 16 is ready for consideration by Committee of the Whole.
This concludes the committee’s general comments on Bill 16. Individual Members may have comments or questions as we proceed.
Thank you, Mr. Abernethy. At this time I’d like to ask the Minister if he’ll be bringing in any witnesses.
Yes, Mr. Chairman.
Is committee agreed the Minister bring in his witnesses?
Agreed.
Sergeant-at-Arms, could you escort the witnesses in, please.
For the record, Mr. Minister, could you introduce your witnesses.
Thank you, Mr. Chairman. I have with me Margaret Melhorn, deputy minister of Finance, FMB, and Ms. Louise Lavoie, assistant comptroller general, Finance, FMB.
Thank you, Mr. Minister. Welcome, witnesses. At this time I’d like general comments in regard to Bill 16.
Interjection.
Does committee agree to go clause by clause?
Agreed.
We’ll move to deal with Bill 16, Write-off of Debts Act, 2008–2009. We’ll move to page 3, Schedule, Debts Written-off, Total: $424,708.95.
Bill 16, Schedule, Total Debts Written-off: $424,708.95, approved.
To the bill as a whole.
Bill 16 as a whole approved.
Does committee agree that Bill 16 is ready for third reading?
Bill 16, Write-off of Debts Act, 2008–2009, approved for third reading.
Bill 16 is now ready for third reading.
Sergeant-at-Arms, could you escort the witnesses out.
Next on our list we’re dealing with Bill 17, Forgiveness of Debts Act, 2008–2009. Mr. Yakeleya.
