Committee chair ready for public feedback
Derek Neary
Northern News Services
Yellowknife (Jan 26/01) - If the territorial government goes ahead with the proposed five per cent hotel room tax, it seems they would largely be taxing themselves.
"There is some truth to that," said Floyd Roland, chair of the standing committee evaluating the bill, citing the NWT Teachers Association, the Union of Northern Workers and even municipal employees as examples of GNWT-funded bodies.
GNWT employees government-funded organizations make up a significant portion of hotel clientele, adds Roland.
The potential for the tax to deter tourists from visiting the NWT has also been raised by MLAs in the legislature, Roland noted.
Regardless, it's what he and the rest of the committee hear from hotel owners and members of the public that will be reported to Minister of Finance Joe Handley.
The committee is scheduled to hold hearings in Yellowknife, Inuvik and Hay River during the week of Feb. 5-9.
Written submissions will also be reviewed.
If there's enough opposition, the government may be forced to re-evaluate its position, Roland acknowledged.
"If it becomes very clear and very strong that the people of the Northwest Territories are not happy with that, then the committee would have to look at recommending an alternative course of action -- either delay it... or (the minister) takes a chance of it not going ahead in the House," he said.
The GNWT has informed the standing committee that it expects to generate approximately $1 million in taxes annually through the proposed hotel room tax, Roland noted.
The hotel tax, being a new tax, would be exempt from federal government claw backs, at least until 2003 when the territorial government's formula financing agreement is renegotiated, he said.
If the Bill goes on to become law, Roland said the tourism industry and hotel owners aren't necessarily unanimous in how they'd like to specifically see the revenue applied to benefit tourism, based on the outcome of a previous meeting between the groups.
"We're hoping if this thing does go through that there's a plan in place," he said.
"The pieces are in place already. It's a matter of if it gets support to go through."
The proposed hotel tax barely scraped through second reading by a 10-8 vote in the legislature in November.
Nahendeh MLA Jim Antoine supported the bill, as did all members of cabinet. Deh Cho MLA Michael McLeod, however, voted against it.
