Thank you, Mr. Chair. The project is specific to some of the deficiencies that were noted in the critical incident review, so it is the interior fencing and some issues with the roof and some security cameras, and those types of items that are included in this project. Thank you, Mr. Chair.
Thank you, Mr. Stewart. Mr. Testart.
Thank you, Mr. Chair. Is this work expected to be completed within the next fiscal year? Thank you.
Thank you. Minister.
Yes, it is, Mr. Chair.
Thank you, Minister. Anything further, Mr. Testart?
Thank you. Also, under court services, we have some funding for courthouse cells, secure interview rooms, and a common lobby for a courthouse. I know that our courthouse facility here in Yellowknife is not owned by the government, and has undergone a number of retrofits over the years. Is any more work anticipated past this point of this project, or are we going to continually see large appropriations, as this is around $795,000 in retrofits? Are we going to continue to pay these kinds of rates for the facility we are currently renting? Thank you, Mr. Chair.
Thank you, Mr. Testart. Minister.
Thank you, Mr. Chair. Mr. Chair, this is work that is being done now, and looking into the future, we would have to see a business case or see what we can do, going forward, looking for another courthouse building in Yellowknife, and then that challenge of our fiscal capacity, as well. There is some work that we need to do going forward, because the Member pointed out the fact that we have $795,000 identified in this particular infrastructure budget for that. There is some work to do, going forward. Thank you.
Thank you, Minister. Mr. Testart.
Thank you, Mr. Chair, and I do appreciate the Minister's comments about limited resources. I guess my concerns around this are: I know that a study was done many years ago on a new courthouse facility, but it just seems like this thing keeps eating money, as there are constantly new concerns that seem to be coming forward. It is an office tower that has been modified into a court facility, and the judiciary is intertwined with the Department of Justice, which is not an appropriate separation of power.
There are many concerns here, so I guess my concern is: although I know we have limited fiscal capacity in some areas, there are many capital needs such as schools and hospitals; but if we don't do something about this eventually it is going to continue to demand fiscal resources again and again and again, rather than just creating a purpose-built facility. Is the Minister willing to evaluate it on that merit? Not just the need for a facility, but how much this facility has consumed our fiscal capacity to date, considering we don't actually own the building. Thank you.
Thank you, Mr. Testart. Minister.
Thank you, Mr. Chair. Yes, we will evaluate it. Thank you.
Thank you. Nothing further from Mr. Testart. I see nothing further. For Justice, I will call the page. Justice, capital investment expenditures, community justice and policing, not previously authorized, $204,000. Does committee agree?
Agreed.
Thank you. Justice, capital investment, corrections, not previously authorized, $9,389,000. Does committee agree?
Agreed.
Thank you. Justice, Capital investment expenditures, court services, not previously authorized, $1,470,000. Does committee agree?
Agreed.
Thank you. Justice, capital investment expenditures, services to public, not previously authorized, $140,000. Does committee agree?
Agreed.
Thank you. Justice, capital investment expenditures, total department, not previously authorized, $11,203,000. Does committee agree?
Agreed.
Thank you, committee. On to page 18, the Department of Lands. Comments or questions. I see none. I will proceed to call the page. Lands, capital investment expenditures, operations, not previously authorized, $685,000. Does committee agree?
Agreed.
Thank you. Lands, capital investment expenditures, operations, not previously authorized, $685,000. Does committee agree?
Agreed.
Thank you. Lands, capital investment expenditures, planning and coordination, operations, not previously authorized, $274,000. Does committee agree?
Agreed.
Thank you. Lands, capital investment expenditures, total department, not previously authorized, $959,000. Does committee agree?
Agreed.
Thank you. Does committee agree that we have concluded consideration of Tabled Document 384-18(2): Supplementary Estimates (Infrastructure Expenditures), No. 2, 2017-2018?
Agreed.
Thank you, committee. Thank you to the Minister and your witnesses for appearing for us. Mr. Testart.
Thank you, Mr. Chair. I move that consideration of Tabled Document 384-18(2): Supplementary Estimates (Infrastructure Expenditures), No. 2, 2017-2018, be now concluded and that Tabled Document 384-18(2) be reported and recommended as ready for further consideration and formal session through the form of an appropriation bill. Thank you, Mr. Chair.
Thank you, Mr. Testart. There is a motion on the floor. The motion is in order and non-debatable. All those in favour? All those opposed?
---Carried
Thank you, committee. Committee, we have next agreed to consider Bill 15: An Act to Amend the Tobacco Tax Act. I will turn to the Minister responsible for any opening comments he may have. Minister McLeod.
Thank you, Mr. Chair. Mr. Chair, We are here today to review Bill 15: An Act to Amend the Tobacco Tax Act.
Legislation is required to amend the Tobacco Tax Act to allow changes to the tobacco tax collection system, to establish a tax duty stamp to be placed on tobacco products sold in the NWT, and to eliminate the commission paid to tobacco tax collectors. The establishment of a tobacco tax duty stamp will require that all tobacco products sold in the NWT be marked, stamped, sealed or labeled with a jurisdictional tax stamp. The introduction of a jurisdictional tobacco stamp will mitigate risks related to smuggling.
These changes will also simplify the administration and auditing of the tobacco tax collection process by reducing the number of transactions, streamlining the reporting, removing the need for inventory reconciliations, and ensuring that all inventories of tobacco products held by wholesalers are tax paid. Thank you, Mr. Chair.
Thank you, Minister. I will turn to the chair of the Standing Committee on Government Operations, the committee that considered the bill, for any opening comments that he may have. Mr. Testart.
Thank you, Mr. Chair. Mr. Chair, the Standing Committee on Government Operations concluded a public hearing on Bill 15: An Act to Amend the Tobacco Tax Act on April 6, 2017. A public clause-by-clause review was held on May 29, 2017. The committee heard from Mr. Roger Walker, owner and general manager of Territorial Tobacco Products, who raised concerns about tobacco tax collection that are outside of the scope of the bill. The committee understands the Department of Finance has taken Mr. Walker's concerns into consideration and has responded accordingly. The committee thanks Mr. Walker for his input. Members may have additional comments or questions as we proceed into consideration of this bill. Thank you, Mr. Chair.
Thank you, Mr. Testart. Minister, do you have witnesses you wish to bring into the Chamber?
Yes, I do. Thank you, Mr. Chair.
Thank you, Minister. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, would you please introduce your witnesses.
Thank you, Mr. Chair. Mr. Chair, to my right I have Mr. Jamie Koe, who is our Comptroller General for the Department of Finance, to my left I have Mr. Mike Reddy, who is legislative counsel with the Department of Justice. Thank you, Mr. Chair.
Thank you, Minister. I will now open the floor to any general comments on Bill 15. Mr. Testart.
Thank you, Mr. Chair. As I said earlier, the Standing Committee on Government Operations heard from Mr. Roger Walker as owner and general manager of Territorial Tobacco Products. Mr. Walker presented us with a great many documents and a long history of dealing with taxation of tobacco in the Northwest Territories and his concerns about potential tax slippage. We were also provided with information from the government's own internal audit bureau on this, and at this point the standing committee is content with the response from government, and his concerns fell outside of the scope of the bill, it was felt that there was limited involvement in what we can do, but certainly the issues he brought to the floor were relevant to our discussions around the purpose of this legislation which is one of which is the creation of a territorial stamp to prevent smuggling.
The other way the act changes is to require the collection of taxes on tobacco products at the time tobacco is acquired by wholesale dealers for the purposes of resale. There are around seven wholesalers that operate in the Northwest Territories. Only one of those is resident to the Northwest Territories which puts Mr. Walker in an uncomfortable position of advocating for an industry of which he is sole member. However, this purchase method does not really have a large impact on the major wholesalers that operate down south. Let us call them corporate wholesalers. But for Mr. Walker's operation it is a much smaller and territorial-based one. So I guess my question for the Minister would be does this move to a purchase method put an additional burden that particularly affects Northerners as northern businesses will be required to purchase upfront just like their southern counterparts? What we heard from Mr. Walker is that could be a cost of $200,000 to $500,000.
Was any consideration given to that when contemplating the purchase method or when considering whether northern businesses would have special dispensation to deal with the new regulations? Thank you, Mr. Chair.
Thank you, Mr. Testart. Minister.
Thank you, Mr. Chair. Mr. Chair, we believe that if the wholesaler manages their inventory correctly then it should not put them at a disadvantage. Thank you, Mr. Chair.
Thank you, Minister. Mr. Testart.
Thank you. Thank you for that. In the consultation around this bill, was Territorial Tobacco Products consulted on this and did the business provide comment on the purchase method? Thank you, Mr. Chair.
