Debates of February 15, 2005 (day 36)

Thank you, Mr. Speaker. My questions this afternoon are for the Honourable Brendan Bell, the Minister of RWED and responsible for the GNWT’s diamond file. One estimate has it, Mr. Speaker, that some 200 people, including families, are involved in the sorting and cutting and polishing industry here in Yellowknife, using Canadian diamonds to make Canadian jewellery. But if you want to go and buy this, you have to pay 10 percent more than anywhere else in the world and that’s not really a very good situation. My question, Mr. Speaker, is has our government considered John Duncan’s private Member's bill in Parliament -- Bill C-259 -- and are we in support of it? Thank you, Mr. Speaker.

Thank you, Mr. Braden. The honourable Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Return To Question 387-15(3): Support For Jewellery Excise Tax Removal

Thank you, Mr. Speaker. The short answer is yes, we have and, yes, we are supportive. I think we’ve had some discussion around this with committee. I believe the Member would be aware that I’ve written Finance Minister Goodale and essentially expressed our sentiment that this, indeed, as the Member has put it, this tax should be axed. It has been around since 1918 and is the last luxury excise tax on the books. We don’t think it makes sense. The entire industry doesn’t think it makes sense. It has been one of the tenants of the National Diamond Strategy. The Retailers Jewellery Working Group did a survey of all their members who overwhelmingly supported the notion of doing away with this tax. So we continue to further that position and do intend on making a presentation to the Standing Committee on Finance, the federal committee reviewing this bill. They have not yet set the meeting date, but, when they do, we will make sure we are there to make a presentation. Thank you.

Thank you, Mr. Bell. Supplementary, Mr. Braden.

Supplementary To Question 387-15(3): Support For Jewellery Excise Tax Removal

Thank you, Mr. Speaker. The Minister has volunteered quite a bit of information there. I appreciate it and it’s, thankfully, no surprise that we are behind this bill. I wanted to ask further to this, the NWT has shown leadership in the formation of a National Diamond Council and I wanted to see if the Minister could tell us are other provinces, which are undoubtedly going to be involved in the diamond trade as well, also behind this excise tax amendment and are they also signalling their approval for this amendment? Thank you.

Thank you, Mr. Braden. Mr. Bell.

Further Return To Question 387-15(3): Support For Jewellery Excise Tax Removal

Thank you, Mr. Speaker. I can think of no jurisdiction that would not be in favour of doing away with this tax. Obviously the federal government is the concern here at this point. The Member indicated the amount of potential revenue loss to the federal government. We think that would be more than offset by the creation of jobs and potentially by the people who don’t report coming back from other countries and don’t submit the taxes that are lost to the federal government. So industry is behind doing away with this, and all of the provinces and territories are. It is a matter of impressing this on the federal government and having them sort of cede to the wishes of everybody in jewellery. Thank you.

Thank you, Mr. Bell. Supplementary, Mr. Braden.

Supplementary To Question 387-15(3): Support For Jewellery Excise Tax Removal

Thank you, Mr. Speaker. I’m not expecting the Minister to speak for the Minister of Finance for Canada, but I’m wondering if he might be able to tell us from his perspective what are Canada’s or does the Department of Finance in Ottawa continue to have objections? I understand that that committee has twice heard recommendations to amend this act; it has twice refused. Why are they continuing to do so? Thank you.

Thank you, Mr. Braden. Mr. Bell.

Further Return To Question 387-15(3): Support For Jewellery Excise Tax Removal

Despite continued lobbying from the Canadian Jewellery Association over the past four years by this government, my predecessors have written numerous letters to the federal government and they have not conceded at this point. It is our understanding that this was potentially coming out a couple of budgets ago and didn’t make the final cut. We were very disappointed by that. We’re hopeful that we can move this agenda forward and we think the National Diamond Strategy might be the vehicle that can bring together all of the interests of both industry and the provinces and bring the adequate pressure to bear, but the holdout, obviously, is the federal government who are holding all the cards in this one. Thank you.