Bill will likely die on the order paper
Kevin Wilson and Tara Kearsey
Northern News Services
Yellowknife (Mar 02/01) - They jokingly refer to themselves as the "GEDIs", but the Legislature's Standing Committee on Government and Economic Development didn't need a light sabre to strike down Bill 13.
Citing overwhelming "negative criticism and outright opposition," the committee effectively killed a controversial tax on hotel rooms.
Bill 13, the Hotel Room Tax Act was under review by the committee after passing second reading.
"After a detailed review," the committee concluded, a majority of the committee has come to a position that we cannot support the implementation of the Hotel Room Tax."
Committee member Paul Delory had voted in favour of the bill on first and second reading, but indicated after meeting with representatives of the hospitality industry that he would no longer support the bill "as it was written."
After the committee completed its report in the Legislature, Delorey acknowledged that his public shift against the bill had an impact.
However, he said, "the numbers were already very tight before I switched."
The proposed tax would have imposed a levy of five per cent on hotel rooms in every NWT establishment having a capacity of more than five rooms.
A groundswell of opposition by hotel and lodge owners made it clear to committee members that the government would have a rough ride if the bill passed.
Nothing was official prior to the tabling of the report, but reliable sources outside the chamber quietly let it be known that the proposed tax was dead.
"I'd say that's a pretty safe bet," said one source in the cabinet office when asked if the Bill would die. Following the tabling of the committee's report, the bill had one of two options; it could be brought forward for debate by the whole house and third reading, or it could die on the order paper.
The committee's thumbs-down virtually assures that the bill is dead. As soon as the Legislature stops sitting, the bill dies.
Finance Minister Joe Handley, who included the projected revenues from the tax in last month's budget, said he was "disappointed" about the committee's report.
"I guess now we'll have to consider (tourism the way we do all the other priorities of government," he said.
"We're certainly delighted that this initiative didn't go through," said Harry Symington, president of the NWT Hotel Association.
Symington said the hotel tax was not a logical decision. He believes the time has come for the Association to meet with the minister to determine how to fund marketing initiatives for the tourism industry.
Gary Jaeb, vice president of NWT Arctic Tourism, was a supporter of the hotel tax. Since the tax revenue was to be re-invested in tourism initiatives, Jaeb said he hopes the government will find some other way to bring more money to the industry.
"Our statistics have shown over time that with the decrease in expenditures in tourism our visitation is down.
"So it's really in everybody's interest to get money back into marketing and get our visitation back up," said Jaeb.
He hopes there is enough political will to find an alternative to the hotel tax.
