I don’t have the expertise to indicate here in the House whether or not that would be a solution, but I would definitely go back to the department and discuss a solution with the deputy minister. If there are areas in addition to that one specific area referred to as Georgetown where flooding occurs at all times and the solution is something just south of our border there in the Yukon, we’ll have discussions with them and maybe be able to resolve that problem this winter. Thank you.
I would like to ask the Minister what is the department’s plan to address the flooding that happens every year at Georgetown. Thank you, Mr. Speaker.
I do believe that the department feels that they have been assisting with the situation. My understanding is that although the unit that was in jeopardy was moved, the member does not live in that unit so it continues to be in an area where it has flooded or has flooded frequently. We are looking at that now, as I indicated. We do plan to resolve the issue if we can, if we can work in that area and do something with the culvert, as the Member advised. If that is a solution, then we’ll work towards that. Thank you.
Thank you, Mr. Beaulieu. The honourable Member for Inuvik Boot Lake, Mr. Moses.
Thank you, Mr. Speaker. In a follow-up to my Member’s statement talking about small businesses and how we can support them, I have questions today for the Minister of Industry, Tourism and Investment. Every year we go through our budget process and we give out close to $12 million in grants and contributions to businesses across the Northwest Territories, particularly Support to Entrepreneurs and Economic Development funding, SEED funding.
Has this funding been utilized every year to its maximum potential, and when was the last time the SEED funding increased? Thank you, Mr. Speaker.
Thank you, Mr. Moses. The honourable Minister of Industry, Tourism and Investment, Mr. Ramsay.
Thank you, Mr. Speaker. The SEED program has been in place since 2008. We are currently reviewing the program. Also, we’ve added sectorial support through the SEED program for fine arts and crafts, the film sector and the Prospectors Grubstake Program as well. We certainly look forward to reviewing the program in an effort to try to make sure we have the best program to support small business here in the Northwest Territories. Our budget last year was just under $4 million. Thank you.
I’m glad to hear that the policy and the program are being reviewed. When you go on the website for ITI, you’ll notice there’s an online database that’s really helpful to businesses to get the funding they can access.
Under the section for grants and contributions – because we’ve heard today about the high cost of doing business, the high cost of power rates in some of the communities and we also heard earlier today that there is going to be an increase in the Minimum wage, so all this has an effect on the really small business, entrepreneurs in the communities – can any of this funding be accessed and used to offset some of the high cost of doing business such as power and some of the wages? Thank you, Mr. Speaker.
There’s a provision under the SEED policy for emergency type funding that is included under entrepreneur support. However, this is not an ongoing subsidy and businesses would be considered on a case-by-case basis should they attempt to access support through that entrepreneurial support program. Thank you.
The emergency funding, I know it’s not supposed to be ongoing to help our businesses, but over the summer we had low water levels on the Mackenzie River which resulted in some businesses having to ship their materials by air, which increases the costs.
What is the total amount for this emergency fund and heard on a case-by-case basis? We’ve heard our population is decreasing; people are leaving. The economy is low, so what is the total cost of the emergency fund that businesses can access? Thank you, Mr. Speaker.
I will get the actual figure for the Member. I don’t have that with me today, but I will get that figure for the Member. Thank you.
Thank you, Mr. Ramsay. Final, short supplementary, Mr. Moses.
Thank you, Mr. Speaker. My last question is, over the years the cost of doing business continues to increase, so when we have these policies and programs in place since 2008, obviously in our government we handle the forced growth situation department by department.
Is there something in some of these grants that will allow these small businesses to reflect the forced growth that they see in their businesses? Is there some type of program with the SEED or other grants and contributions that we have? Thank you, Mr. Speaker.
Under the SEED program, currently we have entrepreneur support, sector support and also I mentioned earlier the emergency support for businesses on a case-by-case basis. But as we move to review the program in its entirety, I think some of the points the Member has made today would be good to be looked at.
There are a number of businesses across the Northwest Territories, as the Member indicates, that are incurring high utility costs and operating costs. Again, it’s important the government has the supports in place to support business in the Northwest Territories, and through this program we hope to do just that. We look forward to concluding the review in the near future. Thank you.
Thank you, Mr. Ramsay. The honourable Member for Range Lake…Frame Lake, Ms. Bisaro.
Thank you, Mr. Speaker. I think my colleague got excited that he got a second chance at questions.
---Laughter
I have some questions today for the Minister of Education, Culture and Employment and I’d like to go back and revisit some of the questions I asked the Minister the other day about income assistance policies.
The Minister suggested in Hansard, and I’d like to quote from Hansard of the other day, “If an individual client presents, say, a suggestion to us, then we will seriously look at it,” and again, “From the general public, if there is more than one policy that they want us to make some amendments to, those are areas we will seriously consider looking at.” He also said that reviews are based on feedback they received from the clientele and the general public.
So I guess I’d like to know from the Minister, I asked about a review of policies. The Minister suggested to me that they have reviewed policies based on complaints from the public, complaints from clientele. So I’d like to know from the Minister, my question was a comprehensive review of policies, and I’d like to know if the Minister will commit to a comprehensive review of income assistance policies with a view to providing the best for our income assistance clients and to iron out some of the contradictions that seem to be in our current policies. Thank you.
Thank you, Ms. Bisaro. Minister of Education, Culture and Employment, Mr. Lafferty.
Mahsi, Mr. Speaker. When we did a comprehensive review back in 2004-06, based on the feedback that we received, we made some drastic changes in 2007. As I stated, there were some changes along the way, as well, with our income security programing in 2011.
We are always open to make changes as necessary, as long as it benefits the community and also the clientele. Those are some of the areas that we’ll continue to push forward within our department of income security programming. Mahsi, Mr. Speaker.
Thanks to the Minister and I guess I would have to say that 2007 is seven years ago, almost eight years ago now, and I think it’s about time that we have a comprehensive review of income securities policies. Piecemeal changes do not necessarily produce the best product.
I’d like to go back to the Minister’s statement that a RRSP for an income support client is a rainy day fund and needs to be used up. Yet, there is also an Income Support Policy which allows clients a RDSP, a Disability Savings Plan, or a RESP, an Education Savings Plan. Those do not have to be cashed in, yet a RRSP does.
So, knowing that RRSP is a protection for old age, and I’d like to know from the Minister how we can have two plans which are protectionist, so to speak, which do not need to be cashed in, and we have one which is a protectionist program and it does need to be cashed in. So how does the Minister reconcile keeping two and having the one that needs to be cashed in? Thank you.
Mr. Speaker, as I stated, a RESP or disability insurance, child disability benefits and CBS, they’re all exempt from the child tax benefits through our income security programming. RRSP is considered as funding that could be available.
We have to be fair because we are dealing with public money, and we’re dealing with the communities, 33 communities, and when an individual has a surplus of funding through an RRSP and an individual in small communities do not have any. So, as a department head, Minister responsible for Income Security Program, I have to focus in those areas. It’s public funding and we have to be fair to all the constituencies throughout the Northwest Territories. Those are just some of the areas that we are seriously looking at and how we can get around the system as well. Mahsi, Mr. Speaker.
To the Minister, I hardly consider it fair that we’re going to penalize somebody because they happen to be proactive and they happen to have the opportunity to save a little bit of money. Because I don’t have a RRSP, my next door neighbor has to cash it in because we both need a little bit of income support. That’s hardly fair and I think it therefore puts income support clients longer on the government dole and I really don’t think that’s where we should be going.
It seems to me that we penalize everybody in the income support programs because there are a few people that we feel either are scamming the system or they, in case, have a RRSP.
I would like to know whether or not the Minister will consider revising our policy so that the majority benefit, not the minority, and that the minority are dealt with as they should be. Thank you.
Mr. Speaker, as I stated, we must be fair and equitable when we are delivering the Income Security Program. As I stated before, when an individual has an RRSP, it could be a substantial amount, we don’t know the actual number, but we could use, let’s say, a figure of $200,000 to $250,000, for example. If the individual has that compared to other small community members who do not have any of that, we just have to be fair to these individual clientele. Having individuals receiving $1,200 from a small community that does not have anything versus an individual that may have RRSP of the same amount, we have to deal with this public money fairly and equitably.
As I stated with policies, any policies that require amendment or changes, I am always open to that. What Member Bisaro is referring to is an area that we should look at, so by all means, my department will look at options that we may consider down the road. Mahsi.
Thank you, Mr. Lafferty. Final, short supplementary, Ms. Bisaro.
Thank you, Mr. Speaker. I will be short. I guess I have to say to the Minister that the idea of fairness apparently is individualized, because I certainly don’t agree with the Minister’s characterization of fairness.
My last question, since he mentions that RRSPs need to be cashed in, I would like to know from the Minister what it costs the department to allow people to keep a RRSP. What extra money is the department spending to allow me to keep my RRSP and to give me a little bit of income support? Thank you.
As the Member knows, within our GNWT department there are various areas of subsidies that individuals can qualify for, whether it be training on the job or productive choices, those are some of the areas that we have provided over the years. Again, when we talk about income security as a basic needs subsidy programming, those that are in desperate need of subsidizing in a community, we found that over the years and have made some changes in 2007 and 2011 and we will continue to make those changes. Mahsi, Mr. Speaker.
Thank you, Mr. Lafferty. Time for oral questions has expired. Mr. Menicoche.
Thank you, Mr. Speaker. I seek unanimous consent to return to item 5, recognition of visitors in the gallery. Mahsi.
---Unanimous consent granted
I would like to take this time to recognize the Aurora College business admin class that’s in the gallery above me. A special welcome to Danita Allaire, she is a Fort Simpson constituent, as well as Sasha Hazenberg, a former resident of Fort Simpson. Also, welcome to the teacher and other students present with them. I hope you are enjoying question period as part of your introduction to a government course. Mahsi.
Thank you, Mr. Menicoche. Item 8, written questions. Item 9, returns to written questions. Item 10, replies to opening address. Item 11, replies to budget address, day two of seven. Item 12, petitions. Item 13, reports of standing and special committees. Item 14, reports of committees on the review of bills. Item 15, tabling of documents. Item 16, notices of motion. Item 17, notices of motion for first reading of bills. Mr. Miltenberger.
Thank you, Mr. Speaker. I move, seconded by the honourable Member for Yellowknife South, that Bill 43, An Act to Amend the Borrowing Authorization Act, be read for the first time.
Thank you, Mr. Speaker. I appreciate the second opportunity to try to get this through the House. I move, seconded by the honourable Member for Yellowknife South, that Bill 43, An Act to Amend the Borrowing Authorization Act, be read for the first time.
Thank you, Mr. Miltenberger. Bill 43 has had first reading.
---Carried
Good afternoon, committee. I would like to call Committee of the Whole to order. What is the wish of the committee? Ms. Bisaro.
Thank you, Mr. Chair. We would like to consider Tabled Document 188-17(5), Northwest Territories Main Estimates 2015-2016.
Thank you, Ms. Bisaro. Does committee agree?
Agreed.
Okay. We will commence after a short break. Thanks.
---SHORT RECESS
I’d like to call Committee of the Whole back to order. We have Tabled Document 188-17(5), Northwest Territories Main Estimates 2015-2016, before us. We have agreed to begin with general comments. I’d like to ask the Minister of Finance if he’d like to bring witnesses into the Chamber. Minister Miltenberger.
Yes, Madam Chair.
Thank you. Does committee agree?
Agreed.
Agreed. Thank you. I will ask the Sergeant-at-Arms to please escort the witnesses to the table.
For the record, Minister Miltenberger, would you please introduce your witnesses.
Thank you, Madam Chair. I have with me the deputy minister of Finance, Mike Aumond; and the deputy secretary to the FMB, Sandy Kalgutkar. Thank you.
Thank you, Minister Miltenberger. I will now go to Members for general comments on main estimates. Mr. Yakeleya.
