Debates of October 29, 2013 (day 40)

Date
October
29
2013
Session
17th Assembly, 4th Session
Day
40
Speaker
Members Present
Hon. Glen Abernethy, Hon. Tom Beaulieu, Ms. Bisaro, Mr. Blake, Mr. Bouchard, Mr. Bromley, Mr. Dolynny, Mrs. Groenewegen, Mr. Hawkins, Hon. Jackie Jacobson, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Moses, Mr. Nadli, Hon. David Ramsay, Mr. Yakeleya
Topics
Statements

Thank you. We’ve had several meetings with the leadership of the K’atlodeeche First Nation, with the chief and several council members where we provided information on our understanding on how the reserve, because Hay River is a reserve, how that works. Certainly, as a government we’re committed to providing services just like any other community in the Northwest Territories, recognizing that the K’atlodeeche First Nations have a very special treaty relationship with the Government of Canada and we’re prepared to assist in whatever way we can. Thank you.

Thank you. The GNWT prides itself in providing trail breaking leadership in the advancement of treaty and Aboriginal rights, and rightly so. I think this Legislature has a legacy of leaders that have blazed a trail in forging public government, First Nations and treaty rights movements.

Can the Premier agree, at this point, to being…and you can be exploring the idea of supporting the establishment of a framework for programs and services in terms of its funding and delivery. For example, on housing. I recently had a constituency meeting on the reserve and a constituent made the point that perhaps the reserve is coming to a housing crisis. In the meantime, negotiations are still going forward. So would the Premier agree to immediately establish a framework in terms of delivery of programs and services? Mahsi.

Thank you. We’re still investigating certain areas and we have two reserves in the Northwest Territories. One is Salt River and the other one is in Hay River. They’re two different considerations because of the fact that in 1975, when the Hay River Reserve was established, there were some considerations that were negotiated which were different from the Salt River First Nations. But we’d be prepared to meet and work with the K’atlodeeche First Nation to clarify those areas of responsibility. Thank you.

Thank you. I’d like to thank the Premier for making the suggestion of a meeting with the chief and council. My question is in terms of the GNWT’s policy in dealing with First Nations and recognizing the reserve has a unique treaty relationship with the federal government on a band-level basis. However, from time to time, from negotiations at different levels, the GNWT takes a fairly different position and takes on the trilateral position with the GNWT, the federal government and the First Nations.

How would the GNWT ensure it follows consistent policy in dealing with the K’atlodeeche First Nation? Mahsi.

Thank you. As I indicated, our deputy minister of Aboriginal Affairs met with the chief of the K’atlodeeche First Nation and because we have two different reserves and we’re dealing with both of them differently, we want to make sure we’re very clear in what our responsibilities are, and we will continue to work with them to clarify what those responsibilities are. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. The Member for Hay River North, Mr. Bouchard.

QUESTION 396-17(4): REVIEW OF TRUCKING REGULATIONS

Thank you, Mr. Speaker. I have questions for the Minister of Transportation today. In the springtime I was asking him questions about the transportation and trucking industry and some of the differences that we have in jurisdictions. He’d indicated to me that they were in the process of doing a review. I’m just wondering: Where is that review of those regulations in comparison to other jurisdictions currently?

Speaker: MR. SPEAKER

Thank you, Mr. Bouchard. Minister of Transportation, Mr. Ramsay.

Thank you, Mr. Speaker. I want to thank the Member for bringing the concerns to the House. Last year and again earlier this year, we were looking at harmonizing our regulations with other jurisdictions, especially in Western Canada. The Member had brought up the issue of tri-drive vehicles. We’ve got a two-year pilot project that’s underway, including a company from Hay River that’s taking part in that exercise. We also are looking at the Class 3 driver’s licence and allowing people with a Class 5 licence to tow or drive a commercial vehicle that’s towing a trailer up to 4,500 kilograms. So we are making some positive changes and we really want to be at the forefront. Concerns the Members bring to this House come from businesses and companies doing work here in the NWT. So we take the thoughts and ideas the Members bring to the floor of the House very seriously. Thank you.

Thank you. I’d also like to remind the Minister of another issue of the trailers and registering one plate tied to the trailer so it stays with the trailer. That’s another issue that’s out there.

But I’ll ask the Minister, conveniently we had a Minister from Yukon Transportation here and I’m just wondering if he’s been having other meetings with other Ministers from other jurisdictions to figure out the differences in our regulations and trying to compare them.

Thank you. At the FPT table, it’s more high level. Certainly at the officials’ level, discussion is continuing on regulations and how we can best serve the people of the Northwest Territories and companies that are doing business here in the NWT.

Getting back to the issue of licence plates on the front of vehicles on commercial vehicles over 4,500 kilograms, it has always been the practice and the law here in the Northwest Territories that plates be in the front so that officers don’t have to go underneath the trailer to see what the plate is. That’s always been the practice and we did take a look at what it would cost to have plates on the front and the back. We just felt that it was too big of a task and too expensive to go through that process. So again, for commercial vehicles over 4,500 kilograms, plates are required to be at the front of the vehicle.

Also, I should mention, now that we’ve got the tolling system in place at the Deh Cho Bridge it’s very important that the plate in the front is visible and able to be taken a photo of by the camera equipment. Thank you.

Thank you. The Minister seems to be leading right into all of my questions here. He’s answering the first one mentioned the tri-drive program and that they’re experimenting with that for two years. I’m just wondering if there has been a lot of uptake and if he has any initial indications of how the program is working and any feedback that we’re getting from the tri-drive experimental project.

Thank you. We have five tridem drive tractor units that have been registered to three companies in the NWT; one in Inuvik, one out of Edmonton and also one out of the Member’s constituency in Hay River. They have submitted reports to the Department of Transportation.

Again, this is being done on a two-year trial basis to see what impact these heavier loads potentially will have on our infrastructure, our road infrastructure, especially on the chipseal portions of our highways. We’ll be glad to share the findings of these reports with the Member and other Members if they’d like to see the findings of those reports. But we’re almost a year into that two-year program. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Ramsay. Final, short supplementary, Mr. Bouchard.

Thank you, Mr. Speaker. The Minister also alluded to the tolls on the Deh Cho Bridge. I’m wondering if we have any kind of audit or any kind of information on that tolling system. Have we collected more than expected, are we still having difficulties registering some of these companies? Just a quick update on the tolls on the bridge for trucking.

Thank you. I do know folks that have been issued a ticket for not paying the toll aren’t too happy with the $1,700 ticket they do receive. We have been collecting revenue. It’s an effort to pay for the infrastructure we have in place across the Mackenzie River at Fort Providence. I can get the detailed information on the collection of tolls, what we’ve collected to date and what the projections are for the Member, the standing committee and Members of this House. I don’t have that detailed information with me today. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Ramsay. Member for Range Lake, Mr. Dolynny.

QUESTION 397-17(4): INSTITUTION OF MINERAL TAX

Thank you, Mr. Speaker. Earlier today in my Member’s statement, I clearly indicated that this government is leaving money on the table and is clearly not working in a fiscally prudent manner for the people. This government and Minister of Finance have a fiduciary obligation to the people and to capture a significant portion of economic grant royalties and taxation since it rightfully belongs to the public. Why this government continues to ignore pleas of citizens in trying to find new sources of revenue I am not sure, but what I am certain of is, if nothing is done, as the good Minister always reminds us, it will be decided in 706 days from now. So let’s dive into the world of opportunity and ask our Minister of Finance what fuels his obdurate refusal for not listening to the people.

Why is the Minister of Finance so inflexible so as not to consider the will of the people when it comes to considering any new forms of mineral taxation? Can he clearly fortify his reasons as to his continued refusal to deal with this question? Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Dolynny. Minister of Finance, Mr. Miltenberger.

Thank you, Mr. Speaker. We’ve just had some discussion in this House about cost of energy, the fact that it’s driving Northerners away and it is crippling business. So one of the reasons we are very careful and we haven’t touched taxes for a number of years and we have looked at efficiencies is because we don’t want to add to the burden of business or to Northerners. We are spending millions on improving our energy efficiency and we are spending millions on looking at transmission line expansions, all tied to affecting the cost of living productively and to lower it. The issue of raising taxes, getting our fair share, we’ve had that discussion and we made a calculated decision that it is not in our best interest at this time to raise taxes. Thank you.

Mr. Speaker, we’ve had this discussion. That’s what I’m hearing from the Minister, but we did not include us on this side of the House. It is has been a Cabinet decision.

After devolution, this government will have the opportunity to raise royalty rates which, for the record, haven’t changed in years and are embarrassingly some of the lowest rates in Canada in the free world. This government, for years, has been content with not capturing what is owed to the people. There is still opportunity for the NWT to raise royalty rates and still remain competitive.

Will this Minister commit to the House and to the people that this will be done immediately post-devolution? Thank you.

Every year for months we have budget cycles and, of course, this Legislature and the Members are involved in the budgeting process and if there was a unanimous decision on the other side of the House to say we want to raise taxes here, there or wherever, of course that would have a bearing. But the reality is two things, that they are fully involved and we have listened to the debate and concerns around the North and we’ve been through this House year after year with budgets and we have been holding the line to not add a burden on our businesses or on our residents and we are continuing with that. There has been nothing in this House that would give us pause to change that, other than the Member standing up saying he wants taxes raised on industry, on resource rent.

After devolution we are going to inherit a royalty regime and we’re going to look at it very carefully, but we are going to be very measured, thoughtful and thorough about how we implement devolution. There is going to be no rush to any kind of kneejerk reaction as it comes to any type of change to the royalty regime until we are very well settled and have a good look at that whole issue. Thank you.

Mr. Speaker, I encourage the Minister to bring those discussions within the life of the 17th Assembly. I’m looking forward to it.

Capital tax which is applied on a corporation paid-up capital is a stable revenue stream and is another form of tax that most provinces and territories levy while the NWT does not. According to the GNWT’s own analysis from the Department of Finance, a tiny 0.3 percent tax on paid-up capital of large corporations would net $12 million in annual revenues. Keep in mind that in the past 10 years, federal corporate income taxes have been reduced from 22 to 15 percent. This gap leaves a significant revenue-raising opportunity for GNWT.

Can the Minister indicate to this House why his department has refused the implementation of such a taxation model?

Mr. Speaker, we have a model that we have developed through our Territorial Formula Financing Agreement. We’ve looked at our costs in the Northwest Territories. We have an 11.5 percent corporate tax rate. We have a 4 percent small business rate. We are in the middle of the pack in most of our taxation.

When we take over the royalty regimes, of course we are going to look at them very carefully. We are going to offer briefings to the other side of the House. We are going to offer briefings to Northerners so we fully understand how taxes are implemented, how royalties are exercised in this territory in the different resource areas and they’re not all the same.

It is fairly complex. We want to be very thorough and measured on how we do that. In due course, in the fullness of time, we’ll have those discussions. Come April 1st, we are not charging down the road to start raising taxes before we’ve even established ourselves in a very careful, measured way. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Dolynny

Thank you, Mr. Speaker. I must remind the Minister that we aren’t the middle of the pack when it comes to taxes. We are actually one of the lowest when it comes to royalty rates and we don’t have a mineral tax, so we don’t have anything to compare with.

If there is any doubt at all in the facts presented here today, then, clearly, would this Minister take this to the people? Will he conduct a public review of economic rent from the non-renewable resources to ensure fair capturing of public revenues? Will he seek out all forms of taxation revenues? Will he stand on the side of accountability and commit to the people this obligation within the next 128 days?

Mr. Speaker, in fact in the last Assembly we did those roundtables and they were based on revenue generation and we did look at taxation. We did it for three cycles, if my memory serves me correctly. The consistent feedback we got from Northerners across the regions, when we brought them to Yellowknife, was that this was not a good time to raise taxes. Thank you.

Tabling of Documents

TABLED DOCUMENT 147-17(4): NORTHWEST TERRITORIES ECONOMIC OPPORTUNITIES STRATEGY

Mr. Speaker, I wish to table the following document, entitled Northwest Territories Economic Opportunities Strategy. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Ramsay. Mr. Miltenberger.

TABLED DOCUMENT 148-17(4): EXCERPT FROM ROBERT HAWKINS, MLA FOR YELLOWKNIFE CENTRE, FACEBOOK PAGE

Mr. Speaker, I wish to table the following document, an excerpt from Mr. Robert Hawkins, MLA for Yellowknife Centre, Facebook page. Thank you, Mr. Speaker.

TABLED DOCUMENT 149-17(4): SUMMARY OF MEMBERS’ ABSENCES FOR THE PERIOD MAY 29, 2013 TO OCTOBER 16, 2013

TABLED DOCUMENT 150-17(4): ANNUAL REPORT OF THE EQUAL PAY COMMISSIONER FOR THE PERIOD JULY 1, 2011, TO JUNE 30, 2012

TABLED DOCUMENT 151-17(4): ANNUAL REPORT OF THE EQUAL PAY COMMISSIONER FOR THE PERIOD JULY 1, 2012, TO JUNE 30, 2013

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Pursuant to Section 5 of the Legislative Assembly Executive Council Act, I wish to table the Summary of Members’ Absences for the Period of May 29, 2013, to October 16, 2013.

Colleagues, pursuant to Section 40.23(2) of the Public Service Act, I wish to table the following two documents, the Annual Report of the Equal Pay Commissioner for the Northwest Territories for the Period of July 1, 2011, to June 30, 2012; the Annual Report of the Equal Pay Commissioner for the Northwest Territories for the Period of July 1, 2012, to June 30, 2013.

Notices of Motion

MOTION 26-17(4): UNIVERSAL AFFORDABLE DAYCARE

Thank you, Mr. Speaker. I give notice that on Thursday, October 31, 2013, I will move the following motion: Now therefore I move, seconded by the honourable Member for Sahtu, that within the next 12 months, the Government of the Northwest Territories conduct a feasibility study on putting in place universal, affordable child daycare run by people trained in early childhood development and education, similar to the systems in Quebec and Scandinavia;

And further, that the Government of the Northwest Territories provide a response to this motion within 120 days. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Bromley. Item 16, notices of motion for first reading of bills. Mr. Miltenberger.

Notices of Motion for First Reading of Bills

BILL 28: SUPPLEMENTARY APPROPRIATION ACT (INFRASTRUCTURE EXPENDITURES), NO. 3, 2013-2014

BILL 29: SUPPLEMENTARY APPROPRIATION ACT (OPERATIONS EXPENDITURES), NO. 3, 2013-2014

Mr. Speaker, I give notice that on Thursday, October 31, 2013, I will move that Bill 28, Supplementary Appropriation Act (Infrastructure Expenditures), No. 3, 2013-2014, be read for the first time.

Mr. Speaker, I also give notice that on Thursday, October 31, 2013, I will move that Bill 29, Supplementary Appropriation Act (Operations Expenditures), No. 3, 2013-2014, be read for the first time. Thank you.

Second Reading of Bills

BILL 26: AN ACT TO AMEND THE LEGISLATIVE ASSEMBLY AND EXECUTIVE COUNCIL ACT

Mr. Speaker, I move, seconded by the honourable Member for Kam Lake, that Bill 26, An Act to Amend the Legislative Assembly and Executive Council Act, be read for the second time.

Bill 26 modifies the allowance and expense entitlements of Members of the Legislative Assembly. Thank you, Mr. Speaker.