It would be great to have "one system to rule them all" and not have to worry about trying to mesh different systems together, but the fact is that it's difficult. We know that from systems that we currently have that do not talk to each other, and so we really need to know a lot more about what we are going to do. We really need a solid plan before we invest in something like that. At this point, there is not a plan to create this system, but we really do need to put in the work to make sure that we do not just spend a whole bunch of money for nothing. Thank you, Mr. Speaker.
Thank you, Minister. Oral questions. Member for Yellowknife North.
Thank you, Mr. Speaker. My questions are for the Minister of Finance regarding the liquor pricing review that is currently being undertaken. My question is: as part of that review, will the Minister increase the small brewery discount, thus lowering the cost of beer taxed that is produced in the Northwest Territories? Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. Minister of Finance.
Thank you, Mr. Speaker. The pricing review is not done yet. It is on track and on time, and it should be back by March. Once we have the information back, available to us, we will be able to make some decisions. Right now, beer manufacturing, of which there is exactly one individual, is receiving a fairly significant discount in terms of the typical markup that would normally be seen. Where they are at right now is worked on fairly significantly between that producer and the department, so I am confident, Mr. Speaker, that, when that review information comes back, we will again work with our local producers or local producer and figure out an appropriate way forward. Thank you, Mr. Speaker.
The Minister's answer gets to my next point directly. I believe we are presently where the Yukon was about 20 years ago, where they had one brewery, and now they have multiple in multiple communities. They have opened a distillery. There is an industry growing with people working, northern labour. There are jobs existing. I hope one day I can stand in this House and another MLA can ask questions about local manufacturing of wine, beer, and spirits in this territory. My question for the Minister is: is there work being done to assess the barriers for expanding the manufacturing in this industry? I know right now that both the federal Excise Act applies as well as a number of different departments across the GNWT, and there is an extremely high capital barrier to anyone wishing to produce locally made alcohol in the territory. Has the department conducted a review of the barriers that people face in wanting to get into this industry?
This is one time when I want to give a simple answer and say no, but that is not a simple answer. I think it's really more as the Minister of ITI, in some ways, that I think I would be answering this question, which is really around barriers that small businesses, small- and medium-sized businesses, might have in order to open their businesses, become entrepreneurs, or innovate existing businesses. That is the kind of work that gets done regularly.
A couple of examples I would give right now: firstly, with respect to liquor specifically and the Liquor Act, to the extent that there may be some barriers within that, if there are, if that is the perspective of the industry, that review is about the get underway very shortly, looking at ways of streamlining and modernizing that act. The second one, Mr. Speaker, is the red tape review. There is a red tape review undergoing work right now, and I would strongly urge anyone who says that there is a barrier to this industry to respond in to that effort so that they are well aware of, in fact, what barriers there are so we can reduce them.
The reality is that anyone who is looking to brew beer in the NWT is never going to do it with local northern labour and get to a price point anything comparable to the large producers in the South. There are simply too many input costs to be competitive. When we look at the generous discount, as the Minister frames it, the price per litre that we are taxing beer at that is locally produced in the Northwest Territories is still not comparable to Ontario's microbrewery rate, for example. We are taxing them at a higher rate so that that beer will never be competitive with the Molson Canadians of the world, an example, who I might point out are currently locking out their union.
I think one of the ways to fix this would be to allow locally produced beer to directly sell to restaurants. Right now, if you produce beer, you have to sell it to the liquor commission and then buy it back with those taxes. If you want to sell beer in a tasting room, you have to sell it first and then buy it back more expensively, at a price per litre that just is not competitive and really never will be, given the cost of labour and doing work in the North. My question to the Minister is: as part of this pricing review, can we allow locally produced beer to directly sell to restaurants without going to the liquor commission to be sold first?
I think, actually, that is a regulatory question, and that then falls back to the Liquor Act review that is underway. The good news is that there is much work happening and many opportunities to affect change that will make things hopefully better. It has to be done in a methodical way and in a process-oriented way. One thing I have discovered in this role is that liquor brings out a myriad of different opinions about whether it should be controlled or whether it should be more open and whether there should be more production or whether there should be less production. It has to be methodical. We have to go out to the community. The Liquor Act review is going to do that, and it's going to ask some of those questions. Do we need to change the way people can buy liquor, sell liquor? Those are exactly some of the questions we will be asking in the course of that.
Mr. Speaker, I wish to table the following two documents: "Follow-up Letter for Oral Question 497-19(2) Corrections Workplace Assessment;" and "Follow-up Letter for Oral Question 528-19(2) Integrated Case Management." Thank you, Mr. Speaker.
Thank you, Minister. Tabling of documents. Minister of Industry, Tourism and Investment.
Mr. Speaker, I wish to table the following document: "Follow-up Letter for Oral Question 532-19(2) Environmental Remediation and Economic Recovery." Thank you, Mr. Speaker.
Thank you, Minister. Tabling of documents. Item 15, notices of motion. Item 16, motions. Item 17, notices of motion for first reading of bills. Item 18, first reading of bills. Item 19, second reading of bills. Item 20, consideration in Committee of the Whole of bills and other matters: Committee Report 8-19(2), Standing Committee on Rules and Procedures Report on Motion 5-19(2): Referral of Point of Privilege Raised by Member for Monfwi on March 10, 2020; Minister's Statement 77-19(2), National Housing Co‐Investment Fund; Tabled Document 165-19(2), Government of the Northwest Territories Response to Committee Report 1-19(2), Report on Long-Term Post-Pandemic Recovery - Recommendations to the GNWT; Tabled Document 166-19(2), Government of the Northwest Territories Response to Committee Report 2-19(2), Report on Long-Term Post-Pandemic Recovery - Recommendations to the GNWT; Tabled Document 167-19(2), Government of the Northwest Territories Response to Committee Report 3-19(2), Report on Long-Term Post-Pandemic Recovery - Recommendations to the GNWT; and Tabled Document 286-19(2), Main Estimates 2021-2022.
I will call Committee of the Whole to order. What is the wish of committee, Mr. Norn?
Marsi cho, Madam Chair. Committee wishes to deal with Tabled Document 286-19(2), Main Estimates 2020-2021 for the Department of Municipal and Community Affairs and, if time permits, the Department of Lands.
Thank you. Does committee agree?
Agreed.
Thank you, committee. We will take a short recess and resume with the first item.
---SHORT RECESS
I will now call Committee of the Whole back to order. Committee, we have agreed to consider Tabled Document 286-19(2), Main Estimates 2021-2022, the Department of Municipal and Community Affairs. Does the Minister have any opening remarks?
Thank you, Madam Chair. Yes, I do. I am here to present the 2021-2022 main estimates for the Department of Municipal and Community Affairs. Overall, the department estimates proposed an increase of $4.9 million, 4.3 percent over the main estimates 2021. These estimates support the mandate objectives for the Department of Municipal and Community Affairs while continuing to meet the Government of the Northwest Territories fiscal objectives to prioritize responsibilities and strategic spending.
Highlights of these proposed estimates include initiative funding increase of $3.3 million to increase the municipal funding for community governments. This funding will support both the capital and operations and maintenance funding needs of the community governments.
Forced growth increase of $1.4 million for grant-in-lieu, property taxes programs to support new government infrastructure in the communities of Fort Smith, Hay River, and Inuvik. Forced growth increase of $199,000 to support continued implementation of the Deline Got'ine self-government financing agreement. These estimates continue to support the priorities of the 19th Legislative Assembly.
Taking action to reduce the municipal funding gap with the investment in this budget, our government has made strong advancement towards the goals of reducing the municipal funding gap by $5 million within the lifetime of this government.
Supporting the goals of Indigenous governments who have achieved self-government agreements by meeting our commitment under the Deline Got'ine Government financing agreement. Providing communities new opportunities to raise additional revenues by advancing a process for the transfer of lands within the municipal boundaries or to those communities who wish to take greater control of land management.
The department's main estimates reflect progress on MACA's key mandate objectives. I look forward to the discussion during the detailed review. That concludes my opening remarks. Mahsi.
Minister, do you have witnesses to bring into the House?
Yes, I do, Madam Chair.
Thank you. Sergeant-at-Arms, please escort the witnesses into the Chamber. Minister, would you please introduce your witnesses?
Thank you, Madam Chair. With me today, I have deputy minister Eleanor Young and Gary Schauerte. Thank you, Madam Chair.
Thank you, Minister. Welcome. Committee has agreed to forego general comments. Does the committee agree to proceed to the detail contained in the tabled document?
Agreed.
Committee, we will defer the departmental summary and review the estimates by activity summary beginning with community governance starting on page 330 with information items on page 333. Questions? Are there any questions under community governance? Seeing no questions under community governance, please turn to page 331. Municipal and Community Affairs, community governance, operations expenditure summary, 2021-2022 Main Estimates, $2,118,000. Does committee agree?
Agreed.
Thank you. We will now move to community operations beginning on page 334 with information items on page 337. Questions? Seeing that there are no questions, please turn to page 335. Municipal and Community Affairs, community operations, operations expenditure summary, 2021-2022 Main Estimates, $2,277,000. Does committee agree?
Agreed.
Thank you, committee. We will now turn to the directorate beginning on page 338 with information items on 341. Questions? Member for Kam Lake.
Thank you very much, Madam Chair. I see under the policy and planning line that the dollar figure between 2019 and 2020 actuals and the main estimates for this year, that the financials have actually come down. I am wondering if the Minister can speak to why the policy and planning division dollars have come down and what that division intends to accomplish this year? Thank you.
Thank you, Member. Minister of MACA.
Thank you, Madam Chair. We do have the discussion of our legislation amendments under review right now. I will have Ms. Eleanor Young comment and reply to the Member. Thank you.
Thank you, Minister. Deputy Minister Young.
Sorry, Madam Chair. I don't have the detail on the breakdown from the 2019-2020 actuals for that specific line. We will have to come back with that one. Thank you, Madam Chair.
Thank you, Ms. Young. Member for Kam Lake.
Thank you very much, Madam Chair. I'm wondering if the Minister would be able to expand on what legislative priorities the Department of Municipal and Community Affairs has for this coming year? Thank you.
Thank you, Member for Kam Lake. Minister of MACA.
Thank you, Madam Chair. We have three legislation priorities that are coming forward. I will have Ms. Eleanor Young just reply on to where we are actually sitting at that with those amendments coming forward for review. Thank you, Madam Chair.
Thank you, Minister. Deputy Minister Young.
Thank you, Madam Chair. In the coming year, the focus will be on three specific pieces of legislation. First of all, under the property assessment and taxation act, we are breaking that work into two components, with the first component being administrative changes that we can bring forward early in the life of this Assembly, and then there will be a phase 2 of that legislation brought later in the Assembly on some of the more difficult or complicated areas of that legislation that require more consultation with our stakeholders.
We are also beginning the engagement with stakeholders on part 2 of our Fire Prevention Act legislative review, which focuses primarily on the plan review and inspection component of the act. We are also picking some work back up on the seniors and disabled property tax legislation and planning to bring that work forward.
Those are the pieces of legislation. There are two other minor things that I will mention. On the policy side, we had committed to doing work on all of our funding policies over the life of this government, and for this coming year, that focus will be on our water and sewer services funding policy and updating that policy. Then, although not under our legislation, per se, we are working with the Department of Justice on the implementation of the ATIP Act. That involves working with our stakeholders for an implementation component of the community government aspect of that act. In total, there are five different areas that will be focused for legislation in the coming year. Thank you, Madam Chair.
Thank you, Ms. Young. Member for Kam Lake.
Thank you very much, Madam Chair. There is some really exciting legislative work being done in MACA with a lot of potential for this year, from rolling out ATIP to funding policies, which is definitely top-of-mind for communities, as well as the much-anticipated Fire Prevention Act. I am just wondering if the Minister feels that this is an accurate budget to be able to get that work done. Thank you.
