Debates of January 21, 2004 (day 2)

Thank you, Mr. Speaker. I took a vested interest in listening to the Finance Minister’s budget process update and feel that, with the number of problems he encounters in the revenue and expenditure section, I’ve made a few comments on how we should encourage the government to introduce tax exemptions to improve upon that kind of development for our residents of the Northwest Territories. So my question to the Minister is whether he is prepared to introduce new tax exemption mechanisms and, if so, how does he intend to implement this new initiative? Thank you, Mr. Speaker.

The Minister responsible for FMBS, Finance, Mr. Roland.

Return To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. Mr. Speaker, as I stated, the government is going to have to look at the whole expenditure side, as well as the revenue side, to try to come up with a balance of how much debt we’re going to carry and go forward from there. Mr. Speaker, there are some options that are out there that we can look at. Mr. Speaker, our problem right now is that we don’t have enough revenues to deal with our fiscal situation. So we’re going to have to look at how we can come up with revenues, and if Mr. Allen has some suggestions for areas that we can look at that would create some more revenues then we would gladly take that into consideration.

In reference to Bill C-48 that was dealt with by the federal government and responds to concerns raised by the industry in the resource sector. They have undertaken some initiatives and I’m not very familiar with that area, but we’d have to look at that. My immediate concern in preparing for our next step in bringing main estimates forward for this Assembly is to look at the level of expenditures versus our revenue side. As I stated in my Minister’s statement, in fact we do have a problem and the gap is widening between the revenues we have and the expenditures.

So right now we haven’t looked at any specific exemptions. We have looked at a number of other areas, but not any exemptions. Thank you, Mr. Speaker.

Supplementary. Mr. Allen.

Supplementary To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. I acknowledge the fact that we had a briefing on the statistics of the Northwest Territories and some of the costs that are related to that. It leaves no doubt that our communities, Mr. Speaker, are in a sad state of economic and social development today. Again, I would ask the Minister of Finance if he is willing and able to formulate tax policy that would stimulate that systemic change to the economic and social development of this territory. Thank you.

The Minister of Finance, Mr. Roland.

Further Return To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. Definitely, I would be interested in looking at our tax policies and see how they could spur some further economic development, for example, or how they could impact on social wellbeing of residents of the Northwest Territories. But we must also understand that there’s a cost to doing some of these things and because our revenue base isn’t a very large one, those have an immediate impact on other programs and services. I’m willing to look at tax solutions out there that could lessen the impact to the residents of the Northwest Territories, but at the same time we must balance that off with what level of expenditures we’re willing to make in other program areas. Thank you, Mr. Speaker.

Supplementary. Mr. Allen.

Supplementary To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. I will be tabling a couple of documents later this afternoon. I would make reference to the fact that we have the ability to introduce some tax exemptions that would help us facilitate social and economic growth in the Northwest Territories. Again, I would ask the Minister if he would elaborate for the benefit of the people of the Northwest Territories if he’s willing to adopt new tax initiatives that would be part of the strategy to improve operational efficiencies in economies throughout the North? Thank you.

The Minister of Finance, Mr. Roland.

Further Return To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. Mr. Speaker, as I stated earlier, I would be glad to sit down and look at the information provided. We are, as government, looking at a whole number of options to enhance our budget or look at creating and stimulating some development in the Northwest Territories, provided that we do not lose from our revenue base and impact other programs and services that we deliver as a government. Thank you.

Final supplementary. Mr. Allen.

Supplementary To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. With all due respect, I know the difficulty that the Finance Minister is faced with, considering our fiscal situation. But would he now assist in facilitating a number of tax reform meetings specific to Inuvik and perhaps if we could coordinate jointly a tax reform forum in Inuvik to get some further ideas? Thank you.

The Minister of Finance, Mr. Roland.

Further Return To Question 18-15(2): NWT Tax Exemption Options

Thank you, Mr. Speaker. I would gladly meet with Members of this House in their communities or in committees to discuss options that are available to us as government that could enhance the programs and services we have available or lessen the impact of the cost of living in the Northwest Territories. At the same time, we must look at the whole picture as a government and see what balance we can strike. I would gladly meet with the Member and discuss the initiatives he’s discussed and see how we can move those along. Thank you.