Mr. Speaker, I give notice that on Thursday, June the 1st, 2023, I will present Bill 93, Practice of Engineering, Geoscience and Applied Science Technology Act, to be read for the first time. Quyananni, Mr. Speaker.
Thank you, Minister. Notices of motion for the first reading of bills. Minister responsible for Justice.
Mr. Speaker, I give notice that on Thursday, June 1st, 2023, I will present Bill 94, Miscellaneous Statute Law Amendment Act, 2023, to be read for the first time. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, I move, seconded by the Member for Inuvik Boot Lake, that Bill 90, An Act to Amend the Legislative Assembly and Executive Council Act, No. 5, be read for the second time.
Mr. Speaker, this bill amends the Legislative Assembly and Executive Council Act to adjust the allowance in part 5 of Schedule C annually using the average change in the consumer price index over the past five years. Thank you, Mr. Speaker.
Thank you, Member for Kam Lake. The motion is in order. To the principle of the bill.
Question.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. Bill 90 has had second reading.
Carried.
Second reading of bills. Member for Frame Lake.
Merci, Monsieur le President. I move, seconded by the Member for Thebacha, that Bill 91, An Act to Amend the Petroleum Products and Carbon Tax Act, No. 2, be read for a second time.
Mr. Speaker, this bill amends the Petroleum Products and Carbon Tax Act to establish an annual report with respect to the administration of carbon tax under the act. Mahsi, Mr. Speaker.
Thank you, Member for Frame Lake. The motion is in order. To the principle of the bill. Member for Frame Lake.
Merci, Monsieur le President. I want to make some remarks at second reading of this bill. It's a short bill and it follows up on a committee recommendation from the last Assembly on the original legislation, and I would just like to read this from the August 13th, 2019, report from Standing Committee on Government Operations, Recommendation 3:
Standing Committee on Government Operations recommends that the Department of Finance table an annual report in the Legislative Assembly on the carbon tax that provides details on:
Total carbon taxes collected;
Carbon taxes collected from large emitters;
Total rebates provided;
Number and nature of grants provided;
Costs of administering the carbon tax;
Reinvestment of carbon tax revenues;
Projected tax revenues for coming year; and,
An annual plan for future year reinvestment of carbon tax revenues.
So, Mr. Speaker, that was the recommendation from 2019, and I believe that this bill is a direct response to that.
I would note that we had further debate about this issue when we considered Bill 60 in this Assembly and, at that point, the Minister did indicate that she was considering bringing forward a bill that would at least address municipal grants and possibly other matters. It would be narrow in scope and, of course, we'll have further discussion on this moving forward.
But so my Private Member's bill, Mr. Speaker, focuses solely on annual public reporting by the finance minister of the money in/the money out on the carbon tax. It would also require an estimate of the cost of all of this, anticipated greenhouse gas reductions, and the effectiveness of the a description of the effectiveness of the carbon tax in reducing greenhouse gas emissions.
I acknowledge that there is already a voluntary reporting that does some of this, but I just would like to make sure that it continues as part of the legislation and that future finance Ministers would continue that practice under the legislation itself.
I want the public to know that I did try to work with Cabinet on this Private Member's bill. I provided a draft, sought their input, I did not get a response. There may be a couple of contentious items in the bill around whether there should be an estimate of greenhouse gas reductions and a description of the effectiveness of the carbon tax. But I believe that this is consistent with our open government policy, the government renewal initiative that's led by the Minister of Finance and, of course, the principles of sound program evaluation that have been raised in this House.
And I would like to just quote, Mr. Speaker, Hansard from May the 25th where the Finance Minister did confirm that, of course, the carbon tax is meant to actually reduce greenhouse gas emissions, and this is a quote from Hansard dated May the 25th.
Quote: The annual report that is put out by the Department of Finance on carbon tax, and the message from the Minister, it does quite clearly say from me the carbon tax is intended to encourage carbon conservation and the substitution to reduce greenhouse gas emissions.
So that's a quote from the Minister of Finance, and I think that's clearly links the issue of a carbon tax with greenhouse gas emissions and an attempt to reduce them. So I look forward to the review of the bill and further consideration of this bill by standing committee. Mahsi, Mr. Speaker.
Thank you, Member for Frame Lake. The motion is in order. To the principle of the bill. Government House Leader.
Thank you, Mr. Speaker. In the spirit of consensus government, Cabinet has taken the approach that we are not going to stand in the way of bills presented by Members at second reading. We're not endorsing the bill but we're not standing in the way of it either. So for those reasons, we will be abstaining from this vote. Thank you.
Thank you, Government House Leader. The motion is in order. To the principle of the bill.
Question.
Question has been called. All those in favour? All those opposed? All those abstaining? The motion is carried. Bill 91 has had second reading.
Carried
Second reading of bills.
Thank you very much, Mr. Speaker. Mr. Speaker, I seek unanimous consent to waive the rules and put Bill 90 directly into Committee of the Whole and not standing committee. Thank you very much, Mr. Speaker.
Thank you, Member for Kam Lake. The Member is seeking unanimous consent to move her motion to move Bill 90 into Committee of the Whole. Are there any nays? Member for Kam Lake, Bill 90 has been moved into Committee of the Whole. Thank you.
Carried
I now call Committee of the Whole to order. What is the wish of committee? Member for Frame Lake.
Merci, Monsieur le President. Committee wishes to consider Tabled Document 94119(2) and Tabled Document 94019(2). Thank you. We'd like to consider the operations sup first and the infrastructure sup second. Thank you, Madam Chair.
Thank you. Does committee agree?
Agreed.
Thank you, committee. We will take a short recess and resume with operations.
SHORT RECESS
Committee, we've agreed to consider Tabled Document 94119(2), Supplementary Estimates (Operations Expenditures), No. 1, 20232024. Does the Minister of Finance have any opening remarks?
Yes, I do. Thank you, Madam Chair. Madam Chair. I am here to present the Supplementary Estimates (Operations Expenditures), No. 1, 20232024.
The operations supplementary estimates propose a total increase of $103.952 million of which $21.6 million will be offset by revenues from the Government of Canada and $48.4 million is offset by appropriations lapsed in 20222023.
The operations supplementary estimates propose the following expenditures:
$48.4 million to continue to undertake flood recovery activities across the NWT;
$15.2 million in subsidies to address electrical rate pressures for NWT residents;
$8.7 million for Technology Service Centre costs incurred by departments and in support of cybersecurity enhancements for the GNWT;
$4.8 million for key activities identified by Members to finalize the 20232024 Main Estimates;
$2.2 million to support operations at the new Hay River Fish Plant;
$1.5 million for enhancements and extensions to the First Nations and Inuit Policing Program;
$762,000 for obstetrical services at the Stanton Territorial Hospital; and,
$653,000 for adult interritory supported living services.
Additionally, I am proposing the following supplementary expenditures, which are supported by federally funded agreements, including:
$10.8 million to support environment and climate change, including agreements to monitor various NWT species, to undertake discussions to support protected areas across the NWT, and to support wildfire and forest management in the NWT;
$2.8 million to continue work on the Aurora College transformation;
$2 million in support of activities for the Department of Justice, including drugimpaired driving, the Indigenous justice program, the drug treatment court program, and increased funding for legal aid;
$1.6 million for advancing hydropower work in the Northwest Territories via the Northern Responsible Energy Approach for Community Heat and Electricity Program;
$394,000 for the bilateral agreement on sport participation; and,
$309,000 in support of Women in Leadership and madeinthe-North campaign schools.
This concludes my opening remarks, and I would be happy to answer any questions the Members may have.
Thank you, Minister. Do you wish to bring witnesses into the House?
I do, Madam Chair.
Thank you. Sergeantatarms, please escort the witnesses to the Chamber.
Minister, would you please introduce your witnesses.
Thank you, Madam Chair. Madam Chair, I have on my left Mr. Bill MacKay, deputy minister of Finance. And on my right, Terence Courtoreille, the deputy secretary to the financial management board.
Thank you. I will now open the floor for general comments. Are there any general comments? Member for Frame Lake.
Yeah, thanks, Madam Chair. I'd like to find out what impact the supplementary spending will have on the supplementary reserve for operations. Thank you, Madam Chair.
Thank you. Minister.
Thank you, Madam Chair. So, Madam Chair, we have no, not this one, Madam Chair. Just one moment, or actually perhaps I will see if deputy minister or Mr. Courtoreille has it up in front of them.
Deputy minister.
Thank you, Madam Chair. So the impact on the supplementary reserve of this will the total impact is $32,890,000, and that is that's inclusive of federal contributions to the government, so the net impact is $32.8 million. So we have a $35 million reserve so there's $2.1 million left in the reserve. Thank you, Madam Chair.
Thank you. Member for Frame Lake.
Yeah, thanks, Madam Chair; that's what I was worried about. So there's only $2 million left in this supplementary reserve and we're, what, about maybe two months into the financial year, and there's probably likely to be maybe two, three more supplementary appropriations. What happens when that reserve is finished? Do we have to go shortterm borrowing and pay increased borrowing costs and so on; what happens? Thank, Madam Chair.
Thank you. Minister.
Thank you, Madam Chair. Yes, so, Madam Chair, if we do exceed the amount that's available in the supplementary reserve, then that does potentially draw down on what would have been in anticipated or projected to be as a surplus. Thank you, Madam Chair.
Thank you. Member for Frame Lake.
Okay, thanks. And so the supplementary reserve two years ago was $65 million, and I'm just wondering if someone can tell me why it was reduced to $35 million in this year's budget. Thank you.
Thank you. Minister.
Thank you, Madam Chair. Madam Chair, this is an amount that's more in line with what historical amounts for a supplementary reserve would have been, although I think even then still perhaps a bit enhanced. The $65 million was a number that we added or increased supplementary reserve to during COVID when it was apparent that, and very obvious, all governments were facing significant and unexpected needs that were arising over the course of that period of time. Obviously with the end of COVID, it was hoped that we would not continue to require that level of increase to the supplementary reserve. Thank you, Madam Chair.
Thank you. Member for Frame Lake.
