Debates of May 19, 2011 (day 11)

Thank you, Mr. Speaker. Every day this government loses revenue due to its failure to collect reasonable resource rents.

We have a bill before this Assembly for the creation of an NWT Heritage Fund to put aside funds from existing revenue for the future. The steps to devolution are started; actual implementation is years into the future.

The promise of additional resource revenues is a big part of that agreement’s allure to this government. But why wait to get a fair return from our natural capital? Various commentators have emphasized that the economic rent we are collecting now is much too low. The Pembina Institute report, When the Government is Landlord, makes a solid case for raising additional resource revenues, as do studies by Sustainable Prosperity. An Indian and Northern Affairs Canada study submitted to the Joint Review Panel and the department’s own website point out how low our rents are.

When it comes to non-renewable resources, we have only one chance to get the maximum gain for our irreplaceable loss. Yes, we do have to balance the need to make development attractive and economic, but low royalties aren’t the only reason industry invests in the NWT. Political security, a trained labour force, the public infrastructure, and services our taxpayers pay for, and above all, the world-class richness of our resources are huge incentives towards confident investment, as well.

The current rent and tax regime isn’t working. Our two largest diamond mines are halfway through their predicted lives. Year after year, capital cost write-offs destabilize and reduce corporate taxes while income slips away through low to no royalties. Given our push for devolution to increase resource revenues, given studies and the federal government saying our rents are unusually low, we owe it to the resource owners, our people, to make sure we are getting top dollar for value given. We don’t need an agreement-in-principle to start collecting full value, we have the authority now. The Mackenzie Gas Project, if it comes, will at least give us the opportunity for the real revenue returns future generations would wish we collected.

Work for devolution, yes, Mr. Speaker; plan for a Heritage Fund, of course; but those things are down the road while billions of dollars in irreplaceable resources are annually exported from the Northwest Territories untapped by this government. I will be pushing for a review of this next Assembly. Mahsi.

Thank you, Mr. Bromley. The honourable Member for Great Slave, Mr. Abernethy.