Finance committee  Unfortunately, there are not that many tools. It's either reduce spending, which would be very difficult considering the needs of populations in the north, or increase taxes, which is not a very palatable solution in many jurisdictions. It's either that, a combination of that or seeking additional transfers from the federal government, but the TFF, territorial formula financing, is already quite generous compared with other transfer programs.

Finance committee  Certainly. Any investments that would increase the GDP or enhance the productivity of the territorial governments or the territorial businesses, that would increase the tax base more generally, would reduce that gap. It would contribute to faster growth in the north. It would certainly help businesses grow and the private sector expand, and expand the tax base, generating more revenues for the territorial governments.

Finance committee  Whom are you asking, Mr. Chair?

Finance committee  I think if it's whoever wants to answer, nobody will answer.

Finance committee  I'll answer. It's the purchase of an asset at this time, but time will tell whether it's the purchase of a revenue-generating asset or a loss-making asset. When we find out the resale value, because the government's intention has always been to sell it back to the private sector, if the government sells it for less than the price it cost, it will have been an indirect subsidy.

Finance committee  I have probably one general comment. Based on my general knowledge of businesses in the country, what I've seen is that when you ask entrepreneurs and business owners what their biggest irritant is, they will always rank as the top two—and they will compete for top spot—taxes and red tape.

Finance committee  I was once told early in my career that what interests my boss becomes my passion.

Finance committee  If the committee has an interest in this type of work and passes a motion to that effect, we will certainly become very passionate about this issue.

Finance committee  It's something that we wanted to look at, especially the issue of loan forgiveness, in the previous Parliament, but we ran out of time. The election arrived, as it was scheduled to arrive, but we never got to that part on our work plan: the issue of how loans get written off and the implications.

Finance committee  A motion would be very useful, because that would take precedence over many other things in my work plan. The more precise the parameters are, the more helpful it is for me as I align the work of the office with the direction the committee wants to hear about. We can have discussions with the clerk of the committee and analysts of the committee to see what would be the best way forward in terms of specific parameters.

Finance committee  I'd offer an answer to that question from a slightly different angle. It's very difficult to measure the benefits of investments or expenditures such as research and development supports or credits that will encourage young people to learn non-university trades through an apprenticeship system, because there is often a strong attraction to university.

Finance committee  Exactly.

Finance committee  In my opinion, it is very clear that flexibility at the federal level is due to the fact that federal spending—again, it is important to say that it's within the current parameters—are mainly transfers to the provinces and to individuals. Transfers to the provinces are legislated.

Finance committee  I can get back to you probably in writing with an estimate. For example, if we can provide you with a rule of thumb, we will get back to you on that. The other alternative.... You mentioned taxation. The government can also spend money or invest—whatever words we choose to use—through borrowing.

Finance committee  If that's a motion of the committee, I would be happy to consider that.