Merci, Monsieur le President. Committee wishes to consider Tabled Document 56119(2): Main Estimates, and Bill 39, Bill 41, and Committee Report 2619(2). Mahsi, Mr. Chair.
Thank you. Does committee agree?
Agreed.
Committee, we will take a short recess.
SHORT RECESS
I'll call the Committee of the Whole back to order. Committee, we have agreed to resume consideration of Tabled Document 56119(2): Main Estimates 20222023. I understand the Minister of Finance wishes to make a statement. Minister.
I haven't been given my clearance to speak so I just want to make sure I'm being heard? Okay, good. Thank you, Mr. Chair. Yes, Mr. Chair, I do have a few remarks.
Mr. Chair, as you know, over the past several weeks, the Legislative Assembly has been considering the 20222023 Main Estimates. This is my third time going through the budget review process and the associated negotiations that take place between Members and the Executive.
Negotiations are necessary because the Executive holds a minority of seats in the Legislative Assembly and therefore requires at least three votes from Members in order to pass the budget. We arrive as independents but we must move forward together within a spirit of consensus. And while we are each obligated to represent the people of our ridings, our Code, of course, requires that we accept a collective legislative responsibility to serve the people of the Northwest Territories.
Each of us answers to our constituents. That is a core principle of democracy. We each represent the diversity of views, perspectives and needs of all of our residents all at the same time. During the budget process, we must determine whether spending done for the wholeofgovernment and the whole of the Northwest Territories adequately advances the needs both of our individual ridings and the territory as a whole. Sometimes the right balance requires more weight towards a particular issue, or region, in order to be equitable. Other times, maintaining a balance means ensuring resources are available equally to all.
As Minister of Finance, I do not unilaterally decide the budget for all departments. Each department is responsible to achieve their core obligations to the territory and to advance their areas of responsibility under the mandate of the Assembly. They do so through the departmental budgets that we have been reviewing.
The Department of Finance oversees the overall fiscal strategy on behalf of the GNWT and supports the Financial Management Board that is made up of all members of the Executive Council. This body collectively is responsible for decisions that impact the GNWT as a whole.
The budget is not divided up per capita or into 33 community pieces. That is not how a budget that covers a territory as vast and as diverse as ours is structured. It would result in inequities and would not be representative of the different needs or costs. It also would not take advantage of economies of scale.
I believe our system is one to be proud of, especially on days like today when not only will a vote not be unanimous but we will not all agree even perhaps on some core issues. What makes our system special is that we must continue to engage in dialogue because continuing to seek future consensus, even in the face of current disagreement, is at the core of our system.
I want to briefly describe three key pieces that this government has brought to these budget negotiations.
The first is to be fiscally responsible and remain as close as cost neutral as possible. In other words, we not only offer added items to "sweeten the pot" but acknowledge that additions should have complementary reductions or increases to revenue. That would not be possible without the diligent work of Members of the Legislative Assembly asking hard questions about where money is spent and where we might find room for savings.
The second is that the entire GNWT budget does not get passed by the vote of one Member. I know that the Premier expects Ministers to be available to speak to every Member about individual regional, community and resident issues. Doing so can help identify when a particular area might need enhanced funding to better achieve its goals across the whole of the Northwest Territories. By doing so through the year, we hopefully do not arrive at a point where the budget needs to change at this stage to accommodate a single project but rather can be changed to reflect an expansion of a program that can then benefit the Northwest Territories as a territory.
Third, the vote of every single Member matters. So while I acknowledge that not every Member will vote in favour of the allocation of public resources contained within this budget, it is my hope that our process of ongoing engagement, discussion and consideration of what resources are available to help every NWT region, community, business and resident will lead us to new consensus in the future.
Before I review our additional budget commitments, I want to express my thanks to the work done by the Standing Committee on Accountability and Oversight in their review of the main estimates. The questions asked throughout the process help Ministers better align the functioning of programs and services for the people we all serve.
As well, I want to extend my very sincere gratitude to the chairperson and deputy chairperson of that committee who share with me the responsibility for these budget discussions. Our discussions were, in my view, frank, forthright, respectful, and always centered on a shared goal of achieving a result that reflected the values and priorities of the 19th Legislative Assembly.
Through these conversations, we have arrived at a budget that will enhance program delivery in the true spirit of consensus government for the benefit of all residents and that is reflective of the priorities of the 19th Legislative Assembly.
Resulting commitments are as follows:
Members have spoken passionately about the housing situation in the Northwest Territories. The need to improve our housing situation across the spectrum of housing needs and in all regions of the Northwest Territories is reflected in our priorities and felt by all Members.
I will commit to an additional $4 million per year in ongoing funding for the Northwest Territories Housing Corporation. This funding will provide financial support for home repair, fuel tank replacements, home purchase programs, mobility modifications, and to the seniors' home subsidy.
The GNWT is also committing onetime funding in 20222023 of $2.2 million for homelessness shelters.
Emergency and homeless sheltering is a challenge for many northern communities. This funding does not solve the Northwest Territories' homelessness problem but enables ongoing work and frees other resources to support new initiatives.
The Northwest Territories culture is unique and should be celebrated. To this end, I am committing $500,000 in ongoing funding to Northwest Territoriesbased heritage centres. This funding will give heritage centres across the North much needed financial support for both operational requirements and capital improvements. This will help ensure our culture and heritage can be proudly displayed for generations to come.
Nongovernment organizations are an important part of program delivery in the North. These partners are frontline advocates on behalf of the GNWT when delivering services around the North. At the same time, these organizations are often asked to do more with less and need more certainty in the funding they receive from government. With this in mind, I've asked the Department of Finance to develop procedures for multiyear funding agreements that allow for inflationary increases for those third parties who deliver core government programs or services on behalf of the government. The financial impact of this commitment will be included in future budgets for approval by this House.
Together, these additional commitments will add more than $6.7 million to the GNWT's budget of which $4.5 million is permanent and ongoing for future generations.
This budgeting exercise has not only been about strategically adding money to high priority areas. Members from both sides of this House have clearly raised concerns regarding the state of our economy, the rising cost of living, and the GNWT's level of spending and future borrowing requirements.
If we are all truly committed to the GNWT's financial health and to leaving the next government in a stable financial position, then we cannot only add to our budget without also seeking reductions or identifying opportunities for new revenues.
As soon as practically possible, I will be increasing the tobacco tax to make the Northwest Territories one of the highest taxed jurisdictions in Canada. The Northwest Territories continues to be one of the highest consumers of tobacco in Canada, and I am hopeful this increase in tobacco tax will change that. Increasing the tobacco tax is expected to raise as much as 3 to $3.5 million annually which will be used to help offset these additions to the 20222023 budget.
Additionally, I will be implementing targeted expenditure reductions to contract services across the GNWT to raise an additional $2.4 million annually. These reductions will be effective for the 20222023 fiscal year and will be permanently reflected in future departmental budgets.
Budget 20222023 was developed for the best interests of all regions and residents of the Northwest Territories. It will allow all communities, people, and organizations to have access to funding for projects and programs that will improve social outcomes and give all communities access to funding to improve infrastructure and services based on local needs.
The changes highlighted here will be implemented through supplementary appropriation during the May/June 2022 sitting. Continued attention to our fiscal strategy as we enter our final year of the 19th Legislative Assembly will be important, and I look forward to those ongoing conversations.
That concludes my remarks. Thank you, Mr. Chair.
Thank you, Minister. I'll now open the floor for general comments on the Minister's statement. Do any Members have general comments before we begin the departmental summaries? Mr. O'Reilly.
Thanks very much, Mr. Chair. I want to thank the Minister of Finance and her staff, and indeed all of our Cabinet colleagues, for these compromises and hard work that went into them. It's my understanding that Regular MLAs will reserve their comments on the budget to the appropriation bill that's expected tomorrow. Thanks, Mr. Chair.
Thank you, Mr. O'Reilly. Any further comments?
Seeing none, does the Minister of Finance wish to bring witnesses into the House?
No, thank you, Mr. Chair.
Committee, we have previously deferred the matter of consideration of departmental summaries. Members, we will begin with the departmental summary for the Legislative Assembly. Please turn to page 5 of the Tabled Document.
Legislative Assembly, operations expenditures, total department, 20222023 Main Estimates, $25,435,000. Does committee agree?
Agreed.
Thank you, committee, we will continue with the departmental summary for Education, Culture and Employment on page 29.
Education, Culture and Employment, operations expenditures, total department, 20222023 Main Estimates, $358,313,000. Does committee agree?
Agreed.
Thank you, Committee. We will continue with the departmental summary for Environment and Natural Resources on page 69.
Environment and Natural Resources, operations expenditures, total department, 20222023 Main Estimates, $98,723,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Executive and Indigenous Affairs on page 109. And Indigenous Affairs, operations expenditures, total department, 20222023 Main Estimates, $22,114,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Finance on page 137.
Finance, operations expenditures, total department, 20222023 Main Estimates, $35,239,000. Does committee agree?
Agreed.
Thank you, committee. Oh, Mr. O'Reilly.
Thanks, Mr. Chair. I think you said $35 million. I think it should have been $335,239,000. Thanks.
Can you just repeat that?
Sure, thanks, Mr. Chair. When I look at the page 137 in the main estimates for Finance, it's $335,239,000. I don't think we want to short change them by $300 million. But, you know, we're always open to further changes here, so. But no, I think we just need to get that number right. Thanks, Mr. Chair.
Thank you for pointing that out, Mr. O'Reilly. I was trying to just getting trying to get something for Hay River. Thank you.
Finance, operations expenditures, total department, 20222023 Main Estimates, $335,239,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Health and Social Services on page 169.
Health and Social Service, operations expenditures, total department, 20222023 Main Estimates, $594,777,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Industry, Tourism and Investment on page 203.
Industry, Tourism and Investment, operations expenditures, total department, 20222023 Main Estimates, $59,625,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Infrastructure on page 231.
Infrastructure, operations expenditures, total department, 20222023 Main Estimates, $278,853,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Justice on page 275.
Justice, operations expenditures, total department, 20222023 Main Estimates, $137,054,000. Does the Committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Lands on page 311.
Lands, operations expenditures, total department, 20222023 Main Estimates, $22,915,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for Municipal and Community Affairs on page 331.
Municipal and Community Affairs, operations expenditures, total department, 20222023 Main Estimates, $123,104,000. Does committee agree?
Agreed.
Thank you, committee. We will continue with the departmental summary for the Northwest Territories Housing Corporation on page 373. Please note, the Northwest Territories Housing Corporation is an information item only and will not be voted on.
Does the Committee agree this concludes our consideration of the Northwest Territories Housing Corporation?
Agreed.
Does the committee agree that this concludes consideration of Tabled Document 56119(2)?
Agreed.
Mr. O'Reilly.
Thanks, Mr. Chair. I move that consideration of Tabled Document 56119(2): Main Estimates 20222023 be now concluded, and that Tabled Document 56119(2) be reported and recommended as ready for further consideration in formal session through the form of an appropriation bill. Mahsi, Mr. Chair.
Thank you. The motion is in order. To the motion?
Question.
Question has been called. All those in favour? All those opposed? The motion is carried.
Carried
Tabled Document 56119(2) will be reported as ready for consideration in formal session through the form of an appropriation bill.
Thank you. And thank you, Minister. Committee, we'll move on to the next item.
Committee, we have agreed to consider Bill 39: An Act to Amend the PostSecondary Education Act. I will ask the Minister of Education, Culture and Employment to introduce the bill.
Thank you, Mr. Chair. I'm here today to present Bill 39: An Act to Amend the PostSecondary Education Act.
The PostSecondary Education Act received assent on August 21st, 2019, and is not yet in force. The act creates a structure for recognizing postsecondary institutions within the Northwest Territories and will enable the transformation of Aurora College into a polytechnic university.
The bill seeks to amend the PostSecondary Education Act to address gaps or inconsistencies in the act that were identified during the ongoing drafting of the related regulations. As well, an opportunity was identified to amend the section on Indigenous institutions to ensure it is more closely aligned with the 19th Legislative Assembly priority to implement the articles of the United Nations Declaration on the Rights of Indigenous Peoples.
Bill 39 will first remove an extra barrier for the recognition of Indigenous institutions by removing the requirement that Indigenous institutions first become recognized as postsecondary institutions through a separate process. The recognition process for Indigenous institutions will be determined through engagement with postsecondary and Indigenous government partners and will be set out in the regulations.
Bill 39 will also establish authority for fees and charges to be collected for certain services, such as quality assurance reviews or applications to ensure consistency and clarity within the act.
I wish to thank the Standing Committee for its thoughtful review and collaboration in helping to strengthen this bill through their motions to amend.
This concludes my opening remarks, and I would be pleased to answer any questions that Members may have regarding Bill 39. Thank you.
Thank you. Thank you, Minister. Minister, would you like to bring witnesses into the Chamber?
