Floyd Roland

Thank you, Mr. Speaker. Mr. Speaker, we've not only in the Northwest Territories, Nunavut and the Yukon and provinces across Canada have raised the issue of fiscal imbalance with Ottawa on a regular basis; in fact, to the point where Finance Ministers have pushed on it so that the Premiers have now become involved and directed through the Council of the Federation that another panel be established. The federal government has recognized it by establishing an expert panel. We need to see what their reports will come out as, and then what will the federal government do with those reports, what...

Thank you, Mr. Speaker.

It is my honour and privilege today to stand before you and Members of this Legislative Assembly to present the budget for the Northwest Territories for 2006-07. I would like to take this opportunity to thank my Cabinet colleagues and the standing committees for their input, particularly for the committees’ work on pre-budget consultations.

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This budget comes at an historic time. Many of us have looked ahead with hope to the day when the Northwest Territories would be self-reliant and strong, with a thriving economy, jobs and opportunities for our people. Today...

Thank you, Mr. Speaker. Mr. Speaker, before we get to radical solutions or options that may be out there, there's a new government in Ottawa. We have to take a different stance, we have to get the message to them, and I'm looking for the opportunity I get to sit down with the new Finance Minister to see if he thinks the arguments, the business case that we put forward is adequate or not adequate to go with what we're asking for. That will then entail what we'll need to do as a jurisdiction. But ultimately, the message that is initially sent out about fiscal imbalance is a good one....

Thank you, Mr. Speaker. Mr. Speaker, as I announced back in our last sitting, the corporate tax situation we faced, we went from projecting a surplus of about $40 million down to where we are identifying now…In fact, at one time we predicted we would go into a slight deficit position. But because of adjusting our budget, we’ve managed to stay out of that area. But the immediate impact of our higher tax rates and the fiscal arrangements we have in Ottawa right now is that companies have started to move their file to other jurisdictions. In fact, as well, our estimates of companies paying...

Thank you, Mr. Speaker. We know that in the upcoming fiscal year, the year we’ve announced, July 1st, in that fiscal year, it is in abeyance. It’s a three-year agreement that could go to five years, as some of the indications that we’ve received. Ultimately, if a new arrangement is made with Ottawa and federal Finance about the fiscal arrangements in place or that will be put in place as a result of the expert panel report and the Council of Federation work, we’ll have some discussions about that risk and reward sides. Right now it is punitive. If it were to come back with the existing...

Thank you, Mr. Speaker. Mr. Speaker, I think again as we go through the budget process and lay out the details of that budget in each department, we’ll be able to show what we can deal with with the tools we have right now. That is one of our concerns, we need more resources to be able to deal with those things and ultimately that will be through a better fiscal arrangement with Ottawa and a royalty revenue sharing agreement that would see a net fiscal benefit to the Northwest Territories, which then we can take those funds and share with the rest of the people in the territory. If this...

Thank you, Mr. Speaker. Mr. Speaker, I think our goal, first and foremost, is to have the federal government remove the debt limit that they have placed on us. That would be the first goal and we would have to work hard to achieve that. We have one year to make that happen, because we’ll still be in government and still be in control of the purse strings as we start into the year 2007. As things sit right now, if we look that far down the road, we’ll have no room for a borrowing limit at that point. So we have to make some decisions and this is what’s going to change our approach, is how...

Thank you, Mr. Speaker. Mr. Speaker, I think there are a number of avenues that have opened up to us through the election process that we’ve just gone through across Canada with the Prime Minister-designate making it very clear that the fiscal imbalance issue needs to be direct -- repaired, I guess, is a simple way of putting it -- in fact, as well, in saying that he sees us in the North as being the ones that gain from the development of the North. So I think those are areas we need to work together on from the North and come up with a unified message, and I’m sure the Premier, as he meets...

Thank you, Mr. Speaker. Mr. Speaker, I move, seconded by the honourable Member for Weledeh, that Bill 18, Appropriation Act, 2006-2007, be read for the second time.

Mr. Speaker, this bill authorizes the Government of the Northwest Territories to make operation expenditures and capital investment expenditures for the 2006-2007 fiscal year. Thank you.

Thank you, Mr. Speaker. Mr. Speaker, what we’ve been doing, building on the discussions we’ve had to date, is as a result of the election, the direction we’re going, putting out our budget, the Premier is meeting with the regional leaders across the North to discuss some of the strategies we may engage to put our issues at the forefront for the new federal government. That is the latest situation we’re facing and working towards. Thank you.