Thank you, Mr. Speaker. My questions today are for the Premier and relate to the issue of cost of living in the Northwest Territories. I know that perhaps we were a little critical about not enough revenue options in the budget, but we don’t want revenue options for this government that hit directly at the pocketbooks of Northerners. One thing that does that right now, which is on our books, is the payroll tax. During the election campaign — I haven’t had a chance to raise this in the House yet — I had a lot of people talk to me about that payroll tax, how it went from 1 per cent to 2 per cent and how the rebate related to that did not go up accordingly. We enjoy a fairly favourable personal tax rate. We enjoy the northern residents tax deduction, which has just gone up recently. But this payroll tax at 2 per cent without a corresponding rebate is hitting Northerners hard.
I’d like to ask the Premier: when was the last time the payroll tax was reviewed, and is it something that we could look at to alleviate the cost of living for Northerners?
Thank you, Mrs. Groenewegen. The Hon. Premier, Mr. Roland.
Thank you, Mr. Speaker. As we initially sat down, we looked at a number of tax options that were available to us. The payroll tax is one factor. On the other side, as the Member has mentioned, the cost of living tax credit is also available to Northerners. There was some adjustment a number of years ago, in line with the changes. We’d be prepared, as we’re talking about launching a discussion paper on tax options in the Northwest Territories…. We’re going to Members with that and then going out to the public for some discussion and debate around those issues. We could include this area into that work.
Mr. Speaker, the Premier has set up strategic initiative committees, and one of them is tasked with looking at issues related to the cost of living. Is this something that could be assigned to this committee, as well, in looking at the cost of living in the Northwest Territories in light of taxes?
Mr. Speaker, the tax options we work with, as at this point, stay with the Department of Finance, under the revenue-generating capacity that it has, and our relationship with the federal government and so on. I think we could still work through that scenario, working with Members and deciding where we can go — whether we strike, as we did, for example, on the climate change work. Coming together with some Members, looking at taking that discussion paper out, is an option we can look at.
Mr. Speaker, after we charge employees in the Northwest Territories a 2 per cent payroll tax and then we give a rebate to people and we also pay for the administration of the tax, what do we end up netting from the payroll tax, approximately, in round figures?
Mr. Speaker, the initial payroll tax was established at 1 per cent. Once you paid out the cost of living tax credit to Northerners, the net was very small indeed. Going to 2 per cent has netted the Government of the Northwest Territories more revenue on the general revenue side, and as we would highlight in our budget — I don’t have the specific numbers at this time, but we’ll get that — I know it has increased. There is a more substantial amount that does remain with the Government of the Northwest Territories.
Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.
Thank you, Mr. Speaker. Just in summary, then, and to be very specific: are we being told today that the Premier will look at a review of the payroll tax of 2 per cent?
In the context of looking at our tax options available to us as Northerners, looking at the other side of it, the equation on the cost of living as well as the tax rebate that we do have, I’m prepared to put that in as part of the discussion as we go forward as the Government of the Northwest Territories.
Thank you, Mr. Roland. Oral questions. The honourable Member for Kam Lake, Mr. Ramsay.
