Debates of February 23, 2018 (day 15)

Date
February
23
2018
Session
18th Assembly, 3rd Session
Day
15
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O'Reilly, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Thompson, Mr. Vanthuyne
Statements

Thank you, Mr. Testart.

Thank you. Is that also a function of case workers and income support and that kind of social services side of things? So are we getting into more than just the service centres and service operators but actually case managers and client officers who are working with people in impoverished circumstances? Thank you, Mr. Chair.

Thank you, Mr. Testart. I know that is more of an Education, Culture and Employment issue, but does the Minister have any information on that?

Well, no, just to say that the Member is correct. I mean, it is through the case work. Also, the GSOs will help them with that, as well, so that proves the importance of those positions, as well. Thank you, Mr. Chair.

Thank you. Mr. Testart.

Thank you, Mr. Chair. So I think these kinds of benefits, these tax benefits, are really effective mechanisms for the government to get money into the pockets of the people and to allow those people to spend back into the local economy. So we have several new forms of taxation that we know are going to come down; well, two, I should speak to directly, cannabis and carbon. Both of those have a stated public policy objective. The revenues we use from that in many jurisdictions, especially in the context of carbon, they've created new tax benefits to put some of those revenues back into the pockets of citizens to help deal with the cost of living increases caused by a tax, and also into other funding available to corporations and businesses; but if we are to create a tax for carbon that is a similar to the cost of living tax credit, are we going to be establishing a low carbon tax credit? Is that part of the game plan moving forward on carbon tax? Thank you.

Thank you, Mr. Testart. Minister.

Thank you, Mr. Chair. Mr. Chair, we are looking at a number of different options, and I think we've gone before committee and presented some of those options. We are waiting to hear back from committee. We'll continue to have those discussions, and then in the absence of waiting on the response from committee, I do not think we should be having that discussion on the floor of the House; but just to assure people that we have done our work and we do know what some of the effects may be, and we are taking steps to mitigate those. Once we have our conversations with committee, then we'll be able to publicly discuss that. Thank you.

Thank you. Mr. Testart.

Thank you. So any changes or any development of tax credits that you would see in the mains normally, if we are to have those discussions, they will happen at a later date and any financial implications to this budget will be discussed at a later date. Can the Minister confirm that?

Thank you. Minister.

Thank you. Anything further, Mr. Testart?

Yes, one last thing. Like my honourable friend from Frame Lake, I always have to ask the same thing, too. I am looking for the tax cut to small businesses. Could the Minister point me to the area in the main estimates that contains that tax cut? Thank you.

Thank you. Minister.

Yes, thank you, Mr. Chair. Mr. Chair, the Member does not see it in there because it's not there. We have not put it in there, and chances are, and I have said it before, there is a number of other ways that we help small business. So I am not sure if it's one we'll see by the end of the Assembly, but again, we have those discussions with committee. Thank you, Mr. Chair.

Thank you. Mr. Testart.

I am disappointed, but I will look forward to further discussing this both on the floor of this Chamber and in committee. Nothing further. Thank you, Mr. Chair.

Thank you, Mr. Testart. I have no one further on my list, so I will call this activity. Everyone can speak once to a section; only once, as was discussed in committee. There is always another kick at the can when we get to the departmental summary. So I will call this activity. Management Board Secretariat, operations expenditure summary, activity total, $64,180,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Thank you, committee. Office of the Comptroller General, starting on page 156. Comments or questions from committee? Seeing none, office of the Comptroller General, operations expenditure summary, activity total, $65,044,000. Does committee agree?

Speaker: SOME HON. MEMBERS

Agreed.

Thank you, committee. The last two pages are information items about the liquor revolving fund that are inexplicably here instead of with the liquor revolving fund. Do I have comments on these information items? Ms. Green.

Thank you, Mr. Chair. I know we talked about the liquor revolving fund a little earlier. My specific question is whether the government has money to put aside to start up cannabis sales; that is, they have to buy the cannabis in order to re-sell it. So where is the money for that? Thank you.

Thank you, Ms. Green. Minister.

Thank you, Mr. Chair. Mr. Chair, it's not showing up in here because the federal legislation needs to be passed before that, and I think, when that does happen, that will happen through the liquor revolving fund. Thank you, Mr. Chair.

Thank you, Minister. Ms. Green.

Thank you, Mr. Chair. I recognize that the legislation hasn't been passed yet. Does the Minister have an estimate of how much money is required to start up cannabis sales? Thank you.

Thank you, Ms. Green. Minister.

The quick answer is no, Mr. Chair. We do not know what it's going to cost to start up cannabis sales. Thank you, Mr. Chair.

Thank you. Ms. Green.

Thank you, Mr. Chair. Mr. Chair, I am surprised to hear that. This is a methodical and planning sort of department, and we know that this legislation is being considered and there is an implementation date, so at what point would the Minister know how much start-up money is required? Thank you.

Thank you, Ms. Green. Minister.

Thank you, Mr. Chair. I have to apologize to the Member. Of course, you know, we are doing some preliminary work and some preliminary numbers, and I think I made a commitment earlier in the deliberation to go back to committee and have a discussion with committee on this particular issue. Thank you, Mr. Chair.

Thank you. Nothing further from Ms. Green. We can return to the departmental summary on page 139, but first, committee, we will discuss the proposed borrowing plan of the Government of the Northwest Territories. It is on page 141, but it also has its own blue tab, the second blue tab in the binder on page XV. Do we have comments or questions on this? First, Ms. Green.

Thank you, Mr. Chair. Mr. Chair, my first question concerns page 130. The actual amount of personal income tax or the revised estimate of income tax for the current fiscal year is about --

Ms. Green, first we are discussing the borrowing limit, which is on page 141 and also in the second blue tab, and then we will return to the departmental total, where that can be discussed. So right now we are on page 141, or the second tab, borrowing plan. So should I go to Mr. O'Reilly?

Ms. Green. Sorry about that.

That's okay. I beg your pardon; I created some confusion there. What I see, Mr. Chair, is that we are very close to our $1.3 billion borrowing limit. Under what circumstances would the government apply to increase that limit? Thank you.

Thank you, Ms. Green. Minister.

Thank you, Mr. Chair. Mr. Chair, I realize we are getting fairly close. I have had an initial discussion with the Minister of Finance and I did say that I was looking forward to having a further discussion on this particular issue if there was a need to increase our borrowing limit. Thank you, Mr. Chair.

Thank you, Minister. Ms. Green.

Thank you, Mr. Chair. Mr. Chair, I wonder: is the Minister of Finance for Canada receptive to the idea of increasing the borrowing limit? Thank you.

Thank you, Ms. Green. Minister.

When you first discuss issues with the federal Ministers, initially they're not receptive to them. You just have to convince them as to why you need it, and then you get support from the folks in the Northwest Territories. We've had those discussions. I can't say whether or not he was receptive, but we make a case and they look at it based on the case we make and make a decision based on that. Thank you, Mr. Chair.

Thank you, Minister. Ms. Green.

Thank you, Mr. Chair. So what kind of a case has the Finance Minister made in this initial interaction to increase the limit? Thank you.

Thank you, Ms. Green. Minister.

Thank you, Mr. Chair. Mr. Chair, I have had an initial discussion with the Minister of Finance, saying that we need to get into a discussion to talk about an increase to our borrowing limit, so our challenge now is that we put the information together, we go down, we make a good argument as to why we need it, and then the decision is, hopefully, made from there. So the initial discussion I had with him was just to give him a heads-up that we are looking to come forward with a case as to why we think our borrowing limit needs to be increased. Thank you, Mr. Chair.