Moving on to statutory offices beginning on page 20. We can discuss the detail on page 21. To begin, grants, contributions and transfers. Questions on page 21? I see none, we’ll move to page 22, active positions. Mr. Blake.
Oh sorry, I thought you were on 20. It’s okay.
Ms. Green.
Thank you, Mr. Chair. Mr. Chair, I haven’t seen an expenditure line for the Commissioner of the Northwest Territories. Is he not paid by the Legislative Assembly? Thank you.
Thank you, Ms. Green. Mr. Speaker.
Masi. Part of the reason why you don’t see it on here is, my understanding is that position or the office is part of the Executive. Masi. Sorry, Mr. Chair.
Mr. Speaker.
I just got a confirmation from the Premier; it’s part of the federal government. Masi.
Thank you, Mr. Speaker. Ms. Green.
Thank you, Mr. Chair. My question is: does the federal government pay for all the associated costs, office, travel, staff, et cetera? Thank you.
Thank you, Ms. Green. Mr. Speaker.
Masi, Mr. Chair. Mr. Chair, obviously the Executive Office works closely with the federal government, whether it be appointing the Commissioner. At the same time, I believe the Executive, I’m not sure, but it covers the travels and the meetings. Probably a cost-share arrangement, but we can gather that information for the Member. Masi.
Thank you, Mr. Speaker. Ms. Green.
Thank you. Thanks to the Speaker for his answers.
Thank you, Ms. Green. Anything further to page 22? Seeing none we shall return to page 20. Questions on page 20? Mr. Blake.
Thank you, Mr. Chair. Just one question. I see a big increase to the Information and Privacy Commissioner, just over $100,000, so maybe just a little explanation on that. Thank you.
Thank you, Mr. Blake. Mr. Speaker.
Masi, Mr. Chair. Mr. Chair, the increase is due to the fact that we have new arrangements with the Nunavut government. We haven’t had that before, so that’s the reason why you don’t see the other line items. It’s just this year that we’ve entered into an arrangement so that the Conflict of Interest Commissioner, or sorry, Information and Privacy Commissioner can deal with the Nunavut jurisdiction as well, along with our jurisdiction. Masi.
Thank you, Mr. Speaker. Nothing further from Mr. Blake. Mr. O’Reilly.
Thanks, Mr. Chair. There’s also a couple of other changes here. There’s a reduction in the Language Commissioner’s expense line and a slight increase in the Human Rights Adjudication Panel. Can someone help me understand those, please? Thank you.
Thank you, Mr. O’Reilly. Mr. Speaker.
Masi, Mr. Chair. Mr. Chair, we’ve had several changes within the Languages Commissioner. Just recently the Languages Commissioner was recruited, and she’s also a lawyer, so there’s been some costs associated with previous dealings with the hiring and contracting a lawyer. At this point in time this individual doesn’t need those services, because she also provides legal advice. It’s $18,000, basically, in savings in that area. Then there’s the increase in the Human Rights Adjudication Panel of $35,000; that’s part of forced growth of $38,000 for a part-time admin assistant offset by $3,000 reduction in travel. It’s just part of the forced growth that we have to deal with. Masi, Mr. Chair.
Thank you, Mr. Speaker. Mr. O’Reilly.
Thanks, Mr. Chair, and I want to thank the Speaker for providing that information. I’m just curious, these independent statutory officers, do they prepare their own budgets and those are submitted then to the Board of Management for review, is that how the process works? Thanks, Mr. Chair.
Thank you, Mr. O’Reilly. Mr. Speaker.
Masi, Mr. Chair. Yes, the Member is absolutely right. They submit their budgetary proposals to the Board of Management and the Board of Management meet on that and makes the decision based on that. Each and every commissioner does their own reporting as well. Masi.
Thank you, Mr. Speaker. Mr. O’Reilly.
Thanks, Mr. Chair. No other questions, thank you.
Thank you, Mr. O’Reilly. I have no further questions. I will call this page. Legislative Assembly, statutory offices, operations expenditure summary, activity total, $1,873,000. Agreed?
Agreed.
Please return to page 5, Legislative Assembly total. Any final questions? Seeing none. Legislative Assembly, Legislative Assembly total $19,336,000. Agreed?
Agreed.
Does committee agree we’ve concluded consideration of Legislative Assembly?
Agreed.
Thank you, committee. I want to thank Mr. Speaker and his witnesses for appearing before us. Sergeant-at-Arms, you may escort the witnesses from the Chamber. The committee will continue our consideration of the main estimates. We have agreed to consider the Department of Finance. Does the Minister of Finance have any opening remarks?
Yes, I do, Mr. Chair. Mr. Chair, I am pleased to present the 20162017 main estimates for the Department of Finance. Overall, the department estimates total $213.9 million. This total includes:
operating contributions of $81.7 million to the NWT Housing Corporation.
$7.5 million to the NWT Hydro Corporation to offset additional diesel costs related to the low water on the Snare Hydro System.
Overall the department’s estimates propose an increase of $2.6 million or 1.2 per cent above the 20152016 Main Estimates.
These estimates continue to support the objectives of limiting expenditure growth in order to sustain the longterm sustainability of the fiscal framework. Highlights of the proposed estimates include:
an increase of $1.2 million to upgrade the government financial accounting and HR system, SAM and PeopleSoft;
an increase in contribution funding of $9.7 million, comprised of $7.5 million to NT Hydro and $2.2 million to the NWT Housing Corporation;
forced growth of $500,000 related to maintaining the government’s software licences.
These increases are offset by reductions totalling $8.8 million, $5.8 million in sunsets, and $3 million through staff reductions and efficiencies gained through divisional amalgamations.
The proposed Department of Finance estimates continue to support the priorities of the 18th Legislative Assembly and continue to advance initiatives that will support the sustainability of our territory for future generations. Specific activities in support of these priorities include:
maintaining a fiscal regime that facilitates economic growth while supporting social and environmental goals;
providing the necessary financial information based on sound fiscal analysis to support government policy development and decision making;
overseeing the management and protection of the government information resources;
ensuring that the programs and services delivered by Finance are responsive to client needs by continuing to implement more efficient and effective operational practices;
ensuring that amalgamated financial and employeeshared services provide clientcentric, valueadded, efficient, timely, and accurate services with strong internal controls to external and internal stakeholders;
ensuring that these services reflect leading practices in sharedservice delivery such as electronic approvals rather than inefficient and costly paperbased approaches;
maintaining a financially transparent and accountable government so there is public confidence in the prudence and integrity of the government operations.
I would also like to highlight that page 15 of the 20162017 main estimates outlines the borrowing plan for the government. This plan proposes to establish a total borrowing limit of $610,340,000, which is comprised of the following:
shortterm debt less than 365 days, $377 million;
longterm debt over 365 days, $231,024 million. I almost made that ”billions.”
Laughter
capital leases, $2,316 million.
The limits proposed in the borrowing plan will be included in the Appropriation Act (Operations Expenditures), 20162017. That concludes my opening remarks, Mr. Chair. Thank you.
Thank you, Minister McLeod. Does the Minister of Finance wish to bring witnesses into the House?
I would, Mr. Chair. Thank you.
Thank you. SergeantatArms, please escort the witnesses into the Chamber. Would the Minister please introduce the witnesses.
Thank you, Mr. Chair. Mr. Chair, to my right I have Mr. Sandy Kalgutkar, who is the deputy secretary to the Financial Management Board. To my left I have David Heffernan, who is our chief information officer. Thank you, Mr. Chair.
Thank you. As part of your consideration of the Department of Finance, committee will consider the government’s borrowing plan, but it will defer that for the moment. Committee will also defer the departmental summary and review the estimates by activity summary beginning on page 137 with the Department of Finance departmental total $213,904,000. Committee will defer this page and continue with 138, revenue summary, information item. Any questions? Mr. O’Reilly.
Thanks, Mr. Chair. Under the taxation list here, there’s a bunch of revenue coming in and there’s a couple of trends I’m just wondering about here. Personal income tax has been higher back in 201415, but the projection here is that it will continue to increase, even though we’re in tough economic times, so the personal income tax is increasing, but, payroll taxes, the projection is that there’s going to be a decrease. I’m just wondering if someone from the department can explain these two contrasting trends? Thanks, Mr. Chair.
Thank you, Mr. O’Reilly. Minister McLeod.
Thank you, Mr. Chair. I will refer that to Mr. Kalgutkar. Thank you.
Thank you. Mr. Kalgutkar.
Thank you, Mr. Chair. The variance… Is the Member wanting a general increase of explanation of all the taxes or just the payroll tax for now? Thank you.
Thank you, Mr. Kalgutkar. Any further questions? Mr. O’Reilly.
Thanks, Mr. Chair. I think we should be increasing our revenues, period. But I’m trying to understand why in the personal income tax there’s a projection for an increase, but at payroll tax we’re actually projecting a decrease. I’m just trying to understand why there’s those two different trends happening in the projections? Thanks, Mr. Chair.
Thank you, Mr. O’Reilly. Mr. Kalgutkar.
Thank you, Mr. Chair. The increase in the personal income tax is currently based on the tax projections that are currently estimated by the federal government. The first estimates that they are receiving right now are showing a slight increase in the personal tax. The increase is partially offset by a change to the Northern Residents Deduction. In terms of the payroll tax, the payroll tax is forecast to go down slightly due to a lower forecast in employment income. Thank you.
