Thank you, Premier. Seeing nothing further from committee, I will call this department. Executive and Indigenous Affairs, total department, $19,194,000. Does committee agree?
Agreed
Thank you, committee. We have concluded consideration of Executive and Indigenous Affairs. I want to thank the Premier and the witnesses. Sergeant-at-Arms, you may escort the witnesses from the Chamber.
Committee, we have next agreed to consider the Department of Finance. The department begins on page 123 of the document. As always, I will turn to the Minister responsible for opening comments. Minister of Finance, do you have any opening comments for committee?
Yes, I do. Thank you, Mr. Chair.
Mr. Chair, I am presenting the 2017-2018 Main Estimates for the Department of Finance. The proposed estimates for the department reflect the amalgamation of the Department of Finance and the Department of Human Resources.
These estimates total $235.7 million, which includes the GNWT's operating contributions of $74.9 million to the NWT Housing Corporation. Overall, the department’s estimates propose a decrease of approximately $3 million or 1.3 per cent when compared to the restated 2016-2017 Main Estimates for the Departments of Finance and Human Resources.
Highlights of the department’s proposed 2017-2018 Main Estimates are as follows:
They include $20.0 million in strategic initiatives. This is primarily for the operations of the Mackenzie Valley Fibre Link Project, including the service payment and land access fees and for costs associated with the interim services agreement while the project is being completed.
A total of $6 million of the strategic initiative funding is for NWT Housing Corporation activities.
There is $557,000 in proposed forced growth. This is largely related to increases in the Cost of Living Tax Credit and interest expense related to long-term debt. A small amount of forced growth is related to the contribution to the NWT Housing Corporation.
The budget reflects transfers of $1.9 million. This is to implement the changes to the NWT Child Benefit and for the creation of the Shared Corporate Services Unit. These estimates also include increased amortization costs of $2.8 million.
The department’s budget reflects sunsets totalling $22.9 million. The Finance portion of this is $11.6 million and is mainly related to funds provided to the NWT Power Corporation to offset the costs related to low water and for costs associated with the development and construction of the Mackenzie Valley Fibre Link Project. The NWT Housing Corporation portion of the sunsets is $11.3 million.
Finally, the main estimates for 2017-18 reflect reductions totalling $4.1 million. This is primarily related to reduced travel, contracts and other O and M, and with savings associated with the amalgamation of Human Resources and Finance. A portion of these reductions also reflect the final budgetary impacts of the 2016-17 reductions. A total of $1.4 million of the reductions relate to the NWT Housing Corporation.
In conclusion, I would also like to highlight that page 129 of the 2017-2018 Main Estimates outlines the borrowing plan for the government. This plan proposes to establish a total borrowing limit for the GNWT of $771 million, which is comprised of the following:
Short-term debt $370 million
Long-term debt $400 million
Capital Leases $1.45 million
The limits proposed in the borrowing plan will be included in the Appropriation Act (Operations Expenditures), 2017-2018.
That concludes my opening remarks, Mr. Chair. Thank you
Thank you, Minister. Do you have witnesses you would like to bring into the Chamber?
I do, Mr. Chair.
Thank you, Minister. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, would you please introduce your witnesses to committee.
Thank you, Mr. Chair. Mr. Chair, to my immediate right, I have Mr. David Stewart. He’s the deputy minister of Finance. To my far right, Tara Hunter, who is the director of Management Service and Recruitment. To my left, I have Mr. Sandy Kalgutkar, who is the deputy secretary to the FMB. Thank you, Mr. Chair.
Thank you, Minister. Welcome to the witnesses. We open the floor to general comments from committee. Do we have any general comments on the Department of Finance? Mr. Testart.
Thank you, Mr. Chair. The Standing Committee on Priorities and Planning made one recommendation to the department, which was to complete the mandate commitment to lower the taxes on small businesses, and that was in the amount of 1 per cent. Apart from that, the overall operation of the department is complex.
The amalgamation of human resources was a source of concern. As again, these amalgamations are being motivated by cost savings rather than operational efficiencies. Committee wants to ensure that we’re making the best possible organizational changes that are going to benefit the public and also the public service.
A lot of the policies in the Department of Finance are exceedingly complex. In fact, typically our public account scores one of the lowest marks for transparency in Canada. It would be a wonderful thing if we could make this information as transparent and understandable to the average Northerner as possible. I think that is still something we need to work on as a government.
The source of that understanding will have to come from this department. We will continue to do our work and reviewing how we can make this complex financial information more understandable. We’ll continue to fight for tax competiveness in Canada’s North as well. With that, that concludes my comments. Thank you, Mr. Chair.
Thank you, Mr. Testart. Anything further from committee, as far as opening comments? Mr. O’Reilly.
Thanks, Mr. Chair. As we go through the pages here, I’ll have some comments on the revenues that we get as a government. Particularly with regard to tobacco tax license -- or, sorry, liquor revenues -- and how that compares to mining, oil, and gas royalty resource revenues that we’re able to keep now under the devolution agreement.
I have some suggestions about different forms of taxes that I’ll make to try to make sure that we capture more of the benefits of that. I’ll also be asking the Minister about any progress we’re making on indexing the Northern Resident Tax Deduction. I guess I’ll have some questions about some ongoing negotiations as well when we get to the human resources section of the amalgamated department. Thanks, Mr. Chair.
Thank you for the preview, Mr. O’Reilly. Seeing nothing further, we will move into consideration of the activities. The first activity can be found on pages 131 to 134. That is directorate. This is activity one of five; this is an $84 million activity. Comments or questions from committee on directorate, pages 131 to 134? Mr. O’Reilly.
Thanks, Mr. Chair. I’m looking at page 132, and this is the Northwest Territories Power Corporation snare hydro system. I know that, in the last couple of years, we’ve had to provide extra subsidies to the Power Corporation in terms of low water levels. How is it looking this year, Mr. Chair? Sorry, I’m just wondering what the water levels are looking like and whether there is any expectation that the Department of Finance is going to have to provide additional funding to the Power Corporation? Thanks, Mr. Chair.
Thank you, Mr. O’Reilly. Minister.
Thank you, Mr. Chair. Mr. Chair, earlier indications are that the water levels should be fine this year, and hopefully that holds true; then we won’t have to provide more money for low water levels.
Thank you, Minister. Mr. O’Reilly.
Thanks, Mr. Chair. Good news. I thank the Minister for that. I have no further questions, thanks.
Thank you, Mr. O’Reilly. Mr. McNeely.
Thank you, Mr. Chair. My question is on 132, program detail on the bottom there, other program costs, $6,000,077. I just want a little explanation on what is defined as "other"? Thank you, Mr. Chair.
Thank you, Mr. McNeely. Mr. Stewart.
Thank you, Mr. Chair. The program costs in the directorate are related to the deputy minister’s office, the office of the Chief Information Officer, and the shared corporate services unit that will be providing the services to both Department of Finance as well as Executive and Indigenous Affairs. Thank you.
Thank you, Mr. Stewart. Nothing further from Mr. McNeely. Seeing no further comments or questions. Mr. Thompson.
Thank you, Mr. Chair. In regards, I see office of the Chief Information Officer has an increase. Could the Minister explain why we have an increase in this area? Thank you, Mr. Chair.
Thank you, Mr. Thompson. Mr. Stewart.
Thanks, Mr. Chair. The increase there is primarily related to the Service Innovation Strategy. That office also takes care of our involvement in CRCT hearings and those sorts of events as well, but that would be the increase reason for that one. Thanks, Mr. Chair.
Thank you, Mr. Stewart. Mr. Thompson.
Thank you, Mr. Chair. I thank the deputy minister for his answer. Just to follow up on honourable Member from Sahtu, when we talk about other program costs, is there a rationale for it being split up, or why couldn’t we just put it into the areas that it should have been put in? Thank you, Mr. Chair.
Thank you, Mr. Thompson. Minister.
Thank you, Mr. Chair. Yes, Mr. Chair, I can understand the Member’s question because it does leave itself open for question when you use the word "other." I think we made a commitment in the past that we’re staying away from the word "other" and we were going to break it up and have that money specifically allocated to be different. I will make that commitment that we will remove the word "other."
Thank you, Minister. Mr. Testart.
Thank you, Mr. Chair. If there was a change in our tax rates, is it the director who would be responsible for implementing that change? Thank you.
Thank you, Mr. Testart. Minister.
Yes; it would be in the Management Board Secretariat as we go further in the document. Thank you, Mr. Chair.
Thank you, Minister. That will be the fourth activity. Mr. Testart.
Nothing further. Thank you.
Thank you, Mr. Testart. I have no one further on my list. I will call this activity. Mr. Testart again.
Thank you, Mr. Chair. I move this committee to defer further consideration of the directorate activity in the Department of Finance, Main Estimates 2017-2018 on page 132 at this time. Thank you, Mr. Chair.
Thank you, Mr. Testart. There’s a motion to defer. The motion is on the floor and being distributed. The motion is in order, non-debatable. All those in favour? All those opposed?
---Carried
Committee, we have deferred the activity directorate. As such, we shall move on to the next activity. This activity two of five, human resources. It can be found on pages 135 to 137. It is a $19.5 million activity. Human resources, pages 135 to 137. Mr. O'Reilly.
Thanks, Mr. Chair. Yes, I have had some constituents contacting me about ongoing negotiations with our main union, Union of Northern Workers, and I am concerned about the pace of negotiations. It has been some time since we have actually had a briefing on the negotiations, and I am wondering if the Minister could commit to providing a briefing to probably priorities and planning on what is happening with the negotiations? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
Thank you, Mr. Chair. No, Mr. Chair, I would be happy to appear before committee and give them a briefing. Thank you, Mr. Chair.
Thank you, Minister. Mr. O'Reilly.
Thanks, Mr. Chair. I do appreciate the commitment from the Minister to do that, and I am hoping it can be done in a timely fashion; probably, I do not know, sometime before June would be great. Do you think he can do that? Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Minister.
Thank you, Mr. Chair. Once we are through the budgeting process and we pass the budget, then I can commit to the Member that we will have a briefing to committee before June.
Thank you, Minister. Mr. O'Reilly.
Thanks, Mr. Chair. I do appreciate the Minister and thank him for that commitment and look forward to getting the briefing. Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Mr. Thompson.
