Debates of March 14, 2007 (day 2)

Thank you, Mr. Speaker. My questions this afternoon are for Mr. Roland, the Minister of Finance. It concerns the upcoming federal budget. Mr. Speaker, I would like to see if the Minister went to bat for tourism operators in the Northwest Territories who potentially face a major increase in the cost of their product sold overseas, because the Conservative government wants to apply the 6 percent GST to those packages, something that’s never been done before and creates an enormous barrier to these tourism operators. Did the Minister relay, on behalf of our tourism operators, objection to this move, Mr. Speaker?

Thank you, Mr. Braden. The honourable Minister responsible for Finance, Mr. Roland.

Return To Question 32-15(6): Federal Budget Wish List

Thank you, Mr. Speaker. Mr. Speaker, on that specific issue, most of my focus has been around formula financing and how we work that through the system and get the issues recognized on that end. So unfortunately, I haven’t had an opportunity beyond the northern residents tax deduction piece, as well, to work with my colleagues and other Finance Ministers around the country to bring this issue up on a territorial perspective of tourism. I haven’t had any direct contact with Minister Flaherty on that issue. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 32-15(6): Federal Budget Wish List

Thank you, Mr. Speaker. The Minister just mentioned item number two on the shopping list here, and that is the northern residents tax deduction. This Assembly passed a motion asking the Minister to take this up with his Nunavut and Yukon counterparts and then, of course, take it to Ottawa. Has the Minister now taken this request directly to Ottawa and what have they got to say about it, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 32-15(6): Federal Budget Wish List

Thank you, Mr. Speaker. Mr. Speaker, we have worked with our territorial counterparts on this file. As well, I have sent a letter to all the provincial Finance Ministers, because northern parts of the provinces would fall into a number of the zones that may be affected. Once we start receiving input back from them, we would hopefully carry a joint effort forward to federal Finance. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 32-15(6): Federal Budget Wish List

Mr. Speaker, there was consternation across the land in the last few months with cuts to many front-line social service organizations, Mr. Speaker. Especially of concern here in the North were cuts to those agencies involved in literacy and volunteerism. Mr. Speaker, this government chose to do some backfilling there and they’re to be complimented for that. But it is intolerable, unacceptable, that this should be a download from Ottawa onto the provinces and the territories. Mr. Speaker, has the Minister taken these cuts and our objection to them directly to Ottawa to ask for the federal government to restore this spending?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 32-15(6): Federal Budget Wish List

Thank you, Mr. Speaker. Mr. Speaker, the Premier has led the charge dealing directly with the Prime Minister’s office. As well, each department that was affected by that also contacted their appropriate federal Ministers to highlight their concern and the displeasure with the announcement that was made, and encouraged the federal government to re-evaluate its stance. Thank you.

Thank you, Mr. Roland. Final supplementary, Mr. Braden.

Supplementary To Question 32-15(6): Federal Budget Wish List

Finally, Mr. Speaker, the other big one on the shopping list here is related to the resource revolution stuff, is the formula financing deal that I know in fact we tried to crack that one even late in the previous Assembly, Mr. Speaker. After almost four years now, are we going to see some real progress in amending the very old-fashioned and cumbersome formula financing deal that we now have with Ottawa, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 32-15(6): Federal Budget Wish List

Thank you, Mr. Speaker. The work around formula financing has begun. There have been a number of technical meetings on what a new formula will look like. We understand that as part of this federal budget that will be launched, I guess you can say, on March 19th will include new arrangements for formula financing as well as equalization. So there is work in those areas and we’re waiting to see some of the detail on that. Thank you.