EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
Bill 28 is the Deficit Reduction Act and Bill 29 is An Act to Amend the Income Tax Act. These Bills are designed to help the government improve its fiscal position.
They do this by introducing two measures to increase the taxation revenue of the government, and one measure to provide tax relief to Nunavummiut.
Bill 28 deals with tax measures to increase revenue. The first measure is an increase in the amount of the tax on cigarettes and cigarette tobacco. The second measure is an increase in the Payroll Tax on the wages earned by employees in our territory.
Bill 29 deals with a tax measure to provide tax relief to lower income Nunavummiut. This bill increases the cost of living benefit to help offset the increase in the Payroll Tax.
Nunavut has one of the highest smoking rates in the country, and the health costs associated with this addiction will one day cripple us both financially and as a people.
Tobacco taxation in the territory has not changed for many years, yet it is generally agreed that raising taxes can help reduce the amount of smokers.
Bill 28 is proposing to raise Tobacco Taxes to match the highest levels in the country, and encourage Nunavummiut, and most importantly, our youth, to either stop smoking, or never start.
The new level of taxation will be $42 per carton of cigarettes and 14 cents per gram of tobacco. This is an increase of $10.80 per carton and 5.4 cents per gram.
My departmental officials will be monitoring consumption figures for tobacco in the months ahead, and will report back to the Legislative Assembly on the results next fall. The proposed Tobacco Tax changes may increase the possibility for smuggling and illegal tobacco sales.
It is my hope that the increased Tobacco Tax will instead reduce the number of smokers in Nunavut.
Bill 28 is proposing to raise the Payroll Tax from one percent to two percent for all employees earning wages in Nunavut. The Payroll Tax is paid by all employees who work in Nunavut, whether they are residents or not.
The Payroll Tax primarily targets transitory workers who come into the territory to work and earn wages but then return to their homes in other parts of Canada.
The entire amount of the Payroll Tax that transitory workers pay stays with the government.
On the other hand, the Payroll Tax is also paid by Nunavummiut. All Nunavummiut, unlike non-residents, receive a cost of living tax benefit that helps offset the amount that they have to pay in Payroll Taxes.
Bill 29 is proposing that the cost of living benefit increase from $750 to $1,200. The proposal also simplifies the manner in which the benefit is calculated, and it will be changed from a two tier calculation to a single calculation.
This measure will not completely negate the increase of the Payroll Tax and some Nunavummiut will end up paying more in Payroll Tax than they did before. This measure does ensure that Nunavummiut who earn $60,000 or less receive a cost of living benefit equal to the amount of Payroll Taxes that they have paid.
Based on recent Statistics Canada information, 77 percent of Nunavummiut earn less than $60,000.
An area that will be examined is that of consultants and self-employed contractors, as it pertains to the Payroll Tax.
Currently, the Payroll Tax Act only covers employees; it does not tax the earnings of self-employed individuals.
This covers many of Nunavut’s entrepreneurs, but also includes many consultants and contractors, who reside in other parts of Canada.
As my colleague, the Member for Iqaluit Centre, has pointed out, there are many consultants and individuals working on contract in our territory.
I have directed my officials to review and bring forward options for discussion, to look for ways to create an equitable and fair tax system that includes all sources of individual income, however derived, in our territory.
These tax initiatives, Mr. Chairman, are being proposed to generate additional revenue for the government. These initiatives are proactive measures by the government that will not only help to address our current fiscal deficit but also the future fiscal position of our territory.
The government recognizes that these tax initiatives alone will not address our fiscal deficit and will continue to work collaboratively with the federal government to secure a fair and equitable Territorial Formula Financing Agreement for Nunavut.
Do you have witnesses you would like to bring to the table? Minister Simailak.
Chairman: Thank you. (interpretation) Sergeant-at-Arms, if you would escort the witnesses, please.
(interpretation ends) Minister, please introduce your witnesses.
On my left is Mr. Peter Ma and to my right, Mr. Peter Tumilty.
Chairman: Thank you, minister. (interpretation) Welcome Mr. Ma and Mr. Tumilty.
Does the Chair of the Standing Committee on Government Operations and Accountability have opening comments?
Yes, I do. I just want to note that yesterday we had two Browne’s up there and today we have two Peters.
The Standing Committee on Government Operations and Accountability has had the opportunity to scrutinize Bills 28 and 29 and I am pleased to be able to make some opening comments today on these two initiatives.
Members enjoyed a productive dialogue with the minister and his officials during his appearance before the standing committee. The standing committee was pleased to note that the minister shared a number of the concerns and observations raised by the committee.
The committee supports the increase in the Tobacco Tax while recognizing the importance of ensuring that the effects of the increases are closely tracked to evaluate their impact on both rates of tobacco consumption in the territory and government revenues.
The committee also noted the importance of ensuring that such tax increases do not result in the unintended consequence of creating black markets.
In scrutinizing the increase to the Payroll Tax, the standing committee was mindful of a number of issues.
Statistics produced by the Canada Revenue Agency and available on its website reveal an informative picture of the territory and its tax filers. For the 2004 tax year, approximately 32 percent of tax filers reported an annual income of $10,000 or less. Approximately 75 percent of tax filers reported an annual income of $60,000 or less.
Approximately one in four tax filers reported an annual income of more than $60,000. Just over 1,000 tax filers, or seven percent, reported an annual income of $100,000 or more.
Committee members recognize that those in the higher income categories can afford to make a greater contribution.
However, the committee was concerned that lower income Nunavummiut and those in tight circumstances, such as single parent households, be protected from the increase in the Payroll Tax. The standing committee was pleased to receive a commitment from the minister that he will introduce further legislative measures at the next sitting of the Assembly to provide a cost of living supplement for single parents.
The standing committee expressed its concern that the Payroll Tax system needs to be rigorously evaluated to ensure that it achieves its primary objective of capturing a measure of revenue from individuals who earn income in Nunavut, but maintain their residences elsewhere.
The standing committee was pleased to note the minister’s commitment to moving forward with measures to ensure that the system does so, especially in relation to contractors and consultants.
The standing committee also noted with satisfaction the minister’s goal of strengthening compliance measures undertaken by the department, as well as working with such entities as the Canada Revenue Agency to gain a more accurate picture of how the Payroll Tax is impacting resident and non-resident workers in Nunavut.
The standing committee also appreciated the minister’s willingness to consider what tax options are available to the government in the area of addressing the high rate of junk food consumption in Nunavut, which also results in significant costs to the health care system to treat such conditions as diabetes, and dental issues.
That concludes my opening comments. I’m sure other committee members and I will have questions for the minister. The standing committee supports the bills and recommends their passage to all members.
We met with the minister and his officials and had a good chat, as the chairman mentioned in his opening comments. I’m a little concerned in the minister’s opening comments that he didn’t mention the commitments that we agreed to this morning.
I’d like to, I guess, maybe from what I understood earlier today that the minister will, by early March, introduce a higher level for single income parents. Also that he would instruct his staff to review the consultants and contractors, their locations with respect to paying some of the Payroll Tax in Nunavut, leaving some of the money in Nunavut, and said this is for all of Nunavut, so we hope that monies that are paid in Nunavut will stay in Nunavut.
I believe, again, that he would instruct his staff to look into the junk food, as well. I’d like to get a commitment on the record from the minister as to what he will agree to.
We’re on general comments right now.
I remind the member just for general comments. Minister Simailak, I think that was a question from Mr. Peterson.
We’ll now proceed to Bill 28.
This morning we met with the minister and his officials to discuss Bill 28. We were concerned that individuals in the lower two tax brackets weren’t sufficiently protected from the increase in the Payroll Tax, so we’re asking the minister to commit to introduce an amendment to the Income Tax Act in March 2007 that would establish a cost of living benefit to single parents up to the $71,190.00 tax bracket.
If the minister could give that commitment.
I will commit to returning to the Legislative Assembly in the March, 2007 sitting with such a legislative proposal, as was mentioned by the honourable member.
I thank the minister for that commitment. I have no further comments or questions.
As noted in my opening comment I am just wondering if the government or the minister could give us an idea of what efforts that the government is taking to ensure that the Payroll Tax is being collected from the residents that are out there that should be paying it.
I would like a recap, what are they doing to make sure we’re getting what we’re supposed to from people out there?
There a number of steps that we are taking. First of all, all employers that have employees in Nunavut are required to be registered and remit the Payroll Tax to the government on behalf of their employees. We also do desk audits to ensure that returns are filed on time and are accurate, and penalties are issued to non-filers.
We also review WCB lists and the Nunavut Gazette to identify new businesses and lastly compliance and…inaudible…audits will be done to ensure that employers adhere to the Payroll Tax act.
On the Payroll Tax I know the minister mentioned it in his comments, and I appreciate that; as well, comments that I have raised in my opening comments and here in the past is the issue of contract employees and consultants.
His department would be looking at reviewing and recommending some different options and ways in which we could tap into that because I really believe that there’s a much more significant amount of dollars leaving the territory there than there are through employees right now working here and living outside the territory.
So again, on the record, I would like to ask the minister if he would commit to bringing forward measures to the Legislative Assembly to ensure that any money earned is taxed appropriately and the revenue given to Nunavut so that we don’t have these gaps there.
I thank the member for bringing that very important issue to my attention. What I’ve done is instructed my officials to make this a priority and to develop options for Cabinet and the Financial Management Board to consider and I’m hoping that I will be able to present something next fall to the House.
The only other question I have to look at on this is the increase in Tobacco Tax and that’s one of the sin taxes that cost the government a lot of money to look after the people that get sick because of smoking and smoking related illnesses and one could say it’s the same thing with the amount of junk food that is consumed.
I think one of our young parliamentarians that were here during the Youth Parliament considered it an addiction to junk food. That was how she phrased it. But the health costs related to over consumption in some cases of junk foods like a lot of the dental problems, dental costs, diabetes and heart problems and things like that, I would venture to say also place a high cost burden on our health care system.
In the same way we’re asking, we’re saying if you’re going to smoke, you’re going to get sick from smoking, we’re going to have to look after you when you get sick, so you’re paying this tax now, so like you’re paying up front for some of the costs that it’s going to cost us to look after you when you get older, and you get sick.
I think it might not be a bad idea if we want to try and promote a healthy lifestyle and that is to do the same thing with the junk food that’s out there.
Your pops, your chips, your chocolate bars and things like that that is significant factor in a lot of those health related issues that I talked about earlier.
I’m just wondering if the minister would commit to also looking at avenues where they could look at doing something in that area and possibly bringing forward some options to look at and capturing some revenues as well.
I thank the member for bringing that up.
It is actually an area that we have been examining possibly a junk food tax, which is the best term that I can come up with at the moment.
This area is being studied at the moment.
Options will be developed by my officials and at which point we will be making a recommendation to the FMB and to the House if possible.
We will now proceed to a page by page review of Bill 28.
Bill 28, Deficit Reduction Act.
Chairman: Does the committee agree to Bill 28 as a whole?
Chairman: Are you agreed that Bill 28 is ready for third reading?
Now we will now deal with Bill 29, An Act to Amend the Income Tax Act.
Chairman: Thank you. Does the committee agree to Bill 29 as a whole?
Chairman: Are you agreed that Bill 29 is ready for third reading?
Those are all the bills.
Thank you, Minister Simailak, Mr. Tumilty and Mr. Ma. Last words, minister?
Hon. David Simailak: Thank you, very much to you Mr. Chairman and to the members for dealing with these two items.
Your committee has been considering Bills 8, 16, 23, 24, 25, 26, 28, and 29 and would like to report that Bills 16, 24, 25, 26, 28, and 29 are immediately ready for third reading, and that Bills 8 and 23 are immediately ready for third reading as amended, and that two Committee Motions were adopted.
And Mr. Speaker, I move that the Report of the Committee of the Whole be agreed to.
Thank you, Minister Aglukkaq.
I would like to get back to Item 10.
I would like unanimous consent to go back to Item 10. Thank you.
Speaker (interpretation): The member is seeking unanimous consent to go back to Item 10. Petitions.
Revert to Item 10: Petitions
Petition 006 – 2(3): Dissatisfaction with Gas Tax Rebate Program (Arvaluk)
I wish to table the following petition from the community of your riding, Pangnirtung. This petition is to;
State the dissatisfaction of the many unilingual traditional harvesters who found the application process for the gas tax rebate program too difficult, too stringent, and which was forwarded to the communities with no resources or personnel to assist them in following the application forms.
Where they ask this government to make the necessary changes to open this program for all part time and full time employees and allowing them to get equal consideration.
They ask for the breakdown of eligible groups including reasons why southern companies are being made to benefit more than our residents through this program.
There are 63 signatures from the community. Members of Pangnirtung in English and Inuktitut signed petitions.
I apologize, Mr. Arvaluk, thank you.
I was just thinking about the Chairman of the Committee.
Bill 16 – Family Abuse Intervention Act – Third Reading
I move, seconded by the Honourable Member for Nattilik, that Bill 16, Family Abuse Intervention Act, be read for the third time.
I would like to ask for a recorded vote on this motion.
Speaker (interpretation): Thank you. Recorded vote has been requested and all those in favour please stand and then sit down when I have called your name.
Mr. Tootoo. Mr. Evyagotailak. Mr. Barnabas.
Mr. Arvaluk. Mr. Akesuk. Ms. Aglukkaq.
Mr. Picco. Mr. Simailak. Premier Okalik.
Ms. Brown. Mr. Tapardjuk. Mr. Netser.
Mr. Arreak. Mr. Mapsalak. Mr. Alagalak.
Mr. Peterson. Mr. Kattuk.
Speaker: I declare the motion is carried unanimously.
Bill 08 – Statistics Act – Third Reading
I move, seconded by the Honourable Member for Baker Lake, that Bill 8, Statistics Act, be read for the third time.
Speaker (interpretation): Thank you, Minister Okalik. The motion is in order.
Question has being called.
The motion is carried and Bill 8 has been read for the third time.
Bill 27 – An Act to Amend the Pharmacy Act – Third Reading
I move, seconded by the Honourable Member for Iqaluit East, that Bill 27, An Act to Amend the Pharmacy Act, be read for the third time.
The motion is carried and Bill 27 has been read for the third time.
Bill 23 – Supplementary Appropriation (Operations & Maintenance) Act #4, 2005-06 – Third Reading
I move, seconded by the Honourable Member for Iqaluit East, that Bill 23, Supplementary Appropriation (Operations and Maintenance) Act #4, 2005-06, be read for the third time.
The motion is carried and Bill 23 has been read for the third time.
Bill 24 – Supplementary Appropriation (Operations & Maintenance) Act #2, 2006-07 – Third Reading
I move, seconded by the Honourable Member for Nattilik, that Bill 24, Supplementary Appropriation (Operations and Maintenance) Act #2, 2006-07, be read for the third time.
The motion is carried and Bill 24 has been read for the third time.
Bill 25 – Supplementary Appropriation (Capital) Act #2, 2006-07 – Third Reading
I move, seconded by the Honourable Member for Baffin South, that Bill 25, Supplementary Appropriation (Capital) Act #2, 2006-07, be read for the third time.
The motion is carried and Bill 25 has had its third reading.
Bill 26 – Appropriation (Capital) Act, 2007-08 – Third Reading
I move, seconded by the Honourable Member for Iqaluit West, that Bill 26, Appropriation (Capital) Act, 2007-08, be read for the third time.
The motion is carried and Bill 26 has been read for the third time.
Bill 28 – Deficit Reduction Act – Third Reading
I move, seconded by the Honourable Member for Amittuq, that Bill 28, Deficit Reduction Act, be read for the third time.
The motion is carried and Bill 28 has had its third reading.
Bill 29 – An Act to Amend the Income Tax Act – Third Reading
I move, seconded by the Honourable Member for Iqaluit West, that Bill 29, An Act to Amend the Income Tax Act, be read for the third time.
The motion is carried. Bill 29 has had its third reading.
Thank you. I would like to ask the Clerk to see if the Commissioner is ready to enter the House to assent to bills.
Commissioner (interpretation): Thank you, Mr. Speaker. I am sorry that I am going to be reading the bills in English but the rest of it I’ll speak in Inuktitut.
As Commissioner of Nunavut, I hereby assent to the following Bills:
Bill 08 – Statistics Act – Assent
Bill 16 – Family Abuse Intervention Act – Assent
Bill 23 – Supplementary Appropriation (Operations & Maintenance) Act #4, 2005-06 – Assent
Bill 24 – Supplementary Appropriation (Operations & Maintenance) Act #2, 2006-07 – Assent
Bill 25 – Supplementary Appropriation (Capital) Act #2, 2006-07 – Assent
Bill 26 – Appropriation (Capital) Act, 2007-08 – Assent
Bill 27 – An Act to Amend the Pharmacy Act – Assent
Bill 28 – Deficit Reduction Act – Assent
Bill 29 – An Act to Amend the Income Tax Act – Assent
I am pleased to take this opportunity to extend to all the members my warmest wishes for the holiday season.
As you conclude your work here and prepare to return to your families and communities, I wish you all a safe journey. I would like to extend my warmest holiday wishes to your families.
I hereby prorogue the Third Session of the Second Legislative Assembly and advise you that the Fourth Session will convene at 1:30pm on March 6, 2007, here in Iqaluit.
Speaker (interpretation): Thank you, Madame Commissioner, and Members.
Orders of the Day for March 6, 2007:
I would like to, as we prorogue this Assembly, I would like to thank the staff, the members, and the interpreters, and our Pages as well.
I would also like to wish everyone a happy journey.
I would like to say to Tagak Curley, and his wife Sally, and their whole family; I wish them well during the Christmas holidays. And, we will see them in the New Year. And I will see the Members of the Legislative Assembly in the New Year.
I would like to wish everyone a safe holiday.
During Christmas, we will be with our families, and I wish all the members well, and all the people of Nunavummiut.
>>House adjourned at 20:25
4th Session
Tuesday, March 6, 2007
Commissioner’s Address 2
Ministers’ Statements 11
Members’ Statements 12
Tabling of Documents 31
Tuesday, March 6, 2007 1
001 – 2(4): Minister Picco Absent from the House (Okalik) 11
002 – 2(4): Notice of Budget Address (Okalik) 11
001 – 2(4): Concerns Raised During Member’s Community Tour (Barnabas) 12
002 – 2(4): Congratulations to New Canadian (Tootoo) 13
003 – 2(4): Congratulations to Canada Winter Games Medal Winner (Arvaluk) 14
004 – 2(4): Kitikmeot Cup – Hockey Tournament (Aglukkaq) 15
005 – 2(4): Opening of Canada Winter Games (Tapardjuk) 15
006 – 2(4): Thank Constituents for Support (Akesuk) 16
001 – 2(4): Hiring Agency Nurses (Arreak) 18
002 – 2(4): RFP Award Process on Medivac Contract (Tootoo) 20
003 – 2(4): Vital Statistics Contact Information (Barnabas) 21
004 – 2(4): Funding Consideration for Nursing and NTEP Programs (Arvaluk) 23
005 – 2(4): Teachers or Nursing Graduates Guaranteed Employment (Tootoo) 26
006 – 2(4): Hiring Priority for Long Term Northerners (Tootoo) 28
001 – 2(4): Clyde River Old Town Clean Up - Letter from the Minister of Environment and Photos (Arreak) 31
002 – 2(4): Statutory Requirements for Tabling of Reports and Other Documents in the Legislative Assembly of Nunavut - March 2007 (Speaker) 32
003 – 2(4): Languages Commissioner of Nunavut Annual Report 2005/2006 (Speaker) 32
004 – 2(4): Towards a Representative Public Service – Statistics as of September 30, 2006 (Tapardjuk) 32
005 – 2(4): Return to Written Question 020 – 2(3) Social Worker Positions in Cambridge Bay* (Clerk) 33
006 – 2(4): Return to Written Question 021 – 2(3) Status of Decentralization* (Clerk) 33
007 – 2(4): Return to Oral Question 379 – 2(3) Assistance for Business Community (Clerk) 33
008 – 2(4): Return to Oral Question 399 – 2(3) Mandatory Leave Without Pay (Clerk) 33
009 – 2(4): Return to Oral Question 400 – 2(3) CLEY Response to Elder Abuse (Clerk) 33
010 – 2(4): Response to Petition 5 – 2(3) Rent Scale Review (Clerk) 33
011 – 2(4): Response to Petition 6 – 2(3) Dissatisfaction with Gas Tax Rebate Program (Clerk) 33
Honourable Leona Aglukkaq, Honourable Olayuk Akesuk, Mr. James Arreak, Mr. James Arvaluk, Mr. Levi Barnabas, Honourable Levinia Brown, Honourable Peter Kilabuk, Honourable Paul Okalik, Honourable Louis Tapardjuk, Mr. Hunter Tootoo.
Speaker (Hon. Peter Kilabuk)(interpretation): Welcome elders, ladies and gentlemen, and visitors.
At this time, I would like to ask Mike Gardener to say the opening prayer.
Everyone, I would like to congratulate Reverend Mike Gardener on his recent appointment to the Order of Canada.
Reverend Gardner had his calling at the young age of 12 years to share his faith with northerners.
Mike and his wife moved up here and he has made the North his permanent home. Mike and his wife moved up here in 1955 from England and he has made the North his permanent home ever since.
Thank you, Reverend Gardener.
Welcome. I would like to welcome everyone to the Legislative Assembly. I would like to thank everyone for coming.