Thank you, Mr. Speaker. In my Member’s statement today I talked about the need for a hotel tax which is being called upon by the Hotel Association asking the Minister of Finance to create such an initiative that could help support tourism initiatives in the Northwest Territories. What is the hesitation of the Department of Finance from simply creating a hotel tax that could be targeted to help support the tourism industry?
Thank you, Mr. Hawkins. The honourable Minister responsible for Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. It’s not an issue of hesitation. It’s an issue of getting feedback, getting some initial direction and positive response through the revenue roundtables and then mapping out the way forward. In this case, it was recommended that the ability to have a hotel tax be delegated down to the community level. The Member is talking about something for the Hotel Association. This points to the need for doing the proper work to in fact decide upon what would be the right structure. I’ve indicated in this budget that there’s not going to be any tax increases, so that work would be, if it’s being done, considered by the 17th Assembly.
The Hotel Association as well as a number of people in the tourism organizations out there all would like a hotel tax. I think they’ve been advocating for this particular type of tax for some time now. This is not a new initiative that’s been suggested. The Minister talked about downloading it maybe to further governance but I don’t think that’s the ideal approach. What conditions would the Minister of Finance need to be in place or to see supported in order to make it a territorial hotel tax?
The Member is correct. In fact, this hotel tax initiative did come before this House back in 2000 and was not successful in being approved by this House, the concern being driving up the cost of doing business and putting an extra burden on the tourism industry. In this particular case, the Member’s line of questioning versus what we heard at the roundtable in October points to, at the very least, a need for further discussion. The Association of Communities made the request and supported the request that it be delegated, at their request, to the communities. The Member’s talking about a territorial-wide one. That alone in itself is a source of contention that would need some revision and work. Thank you.
Mr. Speaker, I suspect under the Municipal Towns and Villages Act they have the ability to create a hotel tax, but that’s not exactly what they would like. They would rather see it as an across-the-board, fair, even policy created by the Finance Minister and, if anything, allow it to be targeted at tourism initiatives, that it could be a tax targeted with a special purpose.
Mr. Speaker, is there apprehension from the Department of Finance to creating a territorial tax from doing this type of initiative or do they just not want to do the work? Because as I understand it, tourism wants it and the Hotel Association supports this. I’m just trying to get a sense of what’s stopping the Department of Finance from moving on this particular initiative other than finding reasons not to. Thank you.
His statement is the first awareness that I have, the first notice that I’ve had that the Hotel Association wants a tax imposed territory-wide. Unless I’ve missed it or I’ve forgotten it, I don’t recollect hearing this specifically before. He has raised this issue for the first time in the House. There was a different approach suggested by the Association of Communities. Once again, that alone, in terms of how it would be applied, is going to require some discussion. It’s not that we’re reluctant. There’s work being done. It has been done. We’ve indicated in this budget, in the House here a couple weeks ago when I did the budget address, that there are no new taxes planned for this particular budget. If there’s going to be further work done and a decision made on a hotel tax, then that work will be carried out to fruition by the 17th Assembly. Thank you.
Thank you, Mr. Miltenberger. Your final supplementary, Mr. Hawkins.
Thank you, Mr. Speaker. It’s not my intention to break the promise of the Finance Minister when he says he’s holding the line on taxes, so he should be assured that I’m not trying to trip him up on that promise to the people of the NWT. Mr. Speaker, would the Minister of Finance be willing to come to a meeting, if I was able to arrange it, with the Hotel Association and even some municipality officials on this particular issue about creating the hotel tax initiative? That money could be targeted at the tourism industry, an industry that could use more money to help bring new dollars into our economy, which is a very important base to our overall strength of our northern business. Thank you.
As a matter of practice, I look seriously at every invitation that I get, especially ones that are put forward by Members of the Legislative Assembly, and I will, of course, give such an invitation, should it come from the Member, every full and due consideration that it deserves. Thank you.
Thank you, Mr. Miltenberger. The honourable Member for Great Slave, Mr. Abernethy.
