Good afternoon. Father Francis Ebner will lead us in prayer, and following that we will have a Dene drum prayer. Father Ebner.

Oh God, our heavenly Father, we ask that Your Spirit may guide us in our deliberations and our work. We recognize the needs and dignity of all of those whom we serve. May we fulfill the wishes and hopes of all, in keeping this a country of beauty, freedom, justice and peace. We ask this through Christ our Lord. Amen.

---Drum prayer

Thank you. Please be seated. Mr. Clerk, would you ascertain if His Honour, the Commissioner of the Northwest Territories, is prepared to address the Legislative Assembly?

Please be seated. Mr. Speaker, Members of the Legislative Assembly, it is my pleasure to welcome you to the second session of the 12th Legislative Assembly.

During the session your government will be presenting its capital estimates for 1992-93 and an interim supply bill that will provide the administration with enough money to continue its operations until the end of July.

The Minister of Finance will be addressing you later on the Territories' financial position and budget process and the government will be tabling an implementation plan on reshaping northern government. The plan will include proposals regarding consolidating government departments, review of boards and agencies, and work that has to be done in order to transfer responsibilities from headquarters to local community governments.

Legislation

Legislation to be presented to the Assembly includes: Appropriation Act, No. 1, 1992-93; Supplementary Appropriation Act, No. 3, 1990-91; Supplementary Appropriation Act, No. 3, 1991-92; An Act to Amend the Borrowing Authorization Act; Loan Authorization Act, 1992-93; An Act to Amend the Tobacco Tax Act. Mr. Speaker, your government considers these bills essential to the good conduct of government business, and I want to recommend passage of each of them.

On a personal note, when I accepted the position of Commissioner of the Northwest Territories, I explained that I fully intended to carry on with the directions established by my predecessor. Those directions resulted in a more responsible government for the Northwest Territories, and, towards the end of his term, a reduction of his own responsibilities to more closely reflect the role of a provincial lieutenant-governor.

In recognition of this, I feel it is time for me to remove myself from the floor of this House. In all similar jurisdictions within Canada, the lieutenant-governor opens and closes each session but does not sit in the House. I will be following this practice, effective immediately.

---Applause

I also want to state that because of our budget situation, I have decided to end the practice of a Commissioner's dinner at the start of each session.

---Applause

While this will not result in a large financial saving, it does reflect the need for restraint at all levels of government.

Mr. Speaker, I thank you, and I now declare open, the second session of the 12th Legislative Assembly of the Northwest Territories. Thank you very much.

---Applause

Recognition Of Pages

Please be seated. Prior to proceeding with the orders of the day, I would like to mention and recognize the Pages that we have with us today. We have Pages from three Yellowknife schools: St. Patrick High School; St. Joseph School; and William McDonald Junior High School. Over the years these schools have provided us with excellent young people as Pages.

Today however, we have also with us three young people from outside the capital. We have Hilu Scottie and Abraham Iglookyouak, students from Baker Lake, and Amy Duffy, a student from Coral Harbour. These students have been sponsored by the Members for Kivallivik and Aivilik, who have afforded these young people a chance to travel to Yellowknife, not only to observe the Assembly in action but to actually work with Members for a week. I am supportive of this initiative by Mr. Arngna'naaq and Mr. Arvaluk and would like to see more of our young people involved with the running of the Legislature. Our young people are the future Members of this Assembly.

Welcome to all the Pages, and thank you for taking time away from your studies to study us.

---Applause

Orders of the day for Wednesday, February 12, 1992. Item 3, Ministers' statements. Mr. Pollard.

Thank you, Mr. Speaker, Members. Mr. Speaker, I want to give Members of the Legislature an update on our financial situation and then speak about how

we must work together to get more benefit from the limited resources we have.

During our last session I explained the effect of a recession on our annual grant from the federal government and that a weak national economy has driven us into a poor financial position. Mr. Speaker, the situation has not improved.

Largely as a result of the drop in our formula funding revenue, our 1991-92 operating deficit is now expected to be $50 million by the end of this year, March 31. In addition, the government is continuing to face growing expenditure pressures from many areas, particularly from user-driven programs like health and education.

By the end of March, Mr. Speaker, we will have had to borrow $55 million to cover our cash shortfall. And unless we take action to increase revenues and reduce expenditures, our future operating deficits will increase. We could have an accumulated deficit of close to $100 million by the end of 1992-93. This would result in additional borrowing of $100 million. The 1992-93 interest costs on this debt would be in the order of $10 million, Mr. Speaker.

We need to be realistic. We cannot afford to get into this much debt. The size of our financial problem demands that we continue to be vigilant over our spending; continue to restrict non-essential hiring and travel; bring salary and wage costs in line with what we can afford; and gain greater efficiencies in areas such as utility and energy use, and communication costs.

Mr. Speaker, spending restraint will not be enough. We must also consolidate and down-size government operations and programs; review how we use government institutions and facilities; review the levels of service we provide, and the capital standards and entitlements we base our capital program on; and review our need for specific assets and dispose of those that are no longer necessary for program delivery or no longer reflect government policy.

In some cases we can draw on the recommendations of the report, Strength at Two Levels. But that report is just one source of ideas. We must look well beyond the pages of that document to identify more areas for reduced spending and revenue generation.

Increasing our revenues through taxation and user-pay initiatives is not a preferred option because of our high costs and limited tax base. But they will have to be examined. So will the fact that Canada begins receiving a one-third share of Norman Wells oil field profits this year. The estimated $50 million per year the federal government has started to receive should not leave the Northwest Territories.

Hear, hear!

---Applause

Mr. Speaker, to prevent this outflow of revenues our government will continue to aggressively pursue the transfer of provincial-type responsibilities for oil and gas and minerals through processes such as the Northern Accord.

Mr. Speaker, the involvement and support of all Members of the Assembly is needed in order to eliminate the deficit and live within our reduced funding level. Emphasis must be placed on using whatever resources we can find to create job opportunities throughout the Northwest Territories. And we must implement changes in accordance with a long-term plan so that the choices and decisions we make now will take us in the direction we prefer to go.

Adding to the difficulty of our task is the short time frame in which a long-term plan must be developed and agreed to and major decisions taken. Our deficit is now $50 million. Unchecked, it could grow to $100 million by the end of 1992-93. We cannot let this happen. We must take action now before we get into so much debt that we cannot pay it back without drastic tax increases and huge reductions in services to NWT residents. In June of this year we will have to consider the 1992-93 phase of a deficit reduction plan. The goal of this phase should be to reduce the deficit to no more than $25 million in 1992-93. Before the start of the 1993-94 fiscal year we will have to consider the final phase of a plan for returning to a balanced budget.

The 1992-93 Budget Process

Mr. Speaker, the Government Leader and our cabinet are committed to a more open planning and decision-making process one that provides a greater role for ordinary Members of the Legislative Assembly than in the past. It will be a critical challenge for the cabinet and for our consensus system of government to agree on a process that provides greater input from MLAs and results in the major decisions being made within the time frames that are available for dealing with the deficit.

To a large extent, Mr. Speaker, the 1992-93 budget year will be unique. Due to the interruption of the normal budget cycle caused by the election last fall, the time available to make most of the budget decisions is much more limited than it would otherwise be. For this reason 1992-93 will form a bridge between the old decision-making process and the new.

The 1992-93 capital estimates are being dealt with before the main 1992-93 budget is presented. This is being done to meet the summer transportation and construction season. There is considerable merit in making this procedure permanent. We have recommended this change in scheduling to the standing committee on finance.

With the main 1992-93 budget being delayed until June or July, it will be necessary, Mr. Speaker, to seek the Assembly's approval of an interim appropriation for operations and maintenance for the first four months of 1992-93. This interim appropriation request is based on 1991-92 funding levels and will not contain significant organizational or program changes. MLAs will have the opportunity to review and approve any major changes in June and July when the main 1992-93 budget is presented.

That budget will reflect the first phase of many of the major changes necessary to deal with our deficit situation. These changes will demonstrate our commitment to living within our means; they will reflect our commitment to a more streamlined and simplified government structure; and they will reflect our commitment to community transfers. In addition, the Government Leader will be tabling an implementation plan for reshaping northern government, during this session.

The 1992-93 Capital Estimates

Mr. Speaker, the budget process for the 1992-93 fiscal year is unique, particularly in the area of capital planning. The previous government did most of the planning for the 1992-93 construction season last spring and summer, and over half of the capital projects contained in the estimates are simply the completion of projects already started. We have had little opportunity to change the 1992-93 capital plan from what had been developed by the previous government.

We did, however, make some changes in light of our deficit problem. In making decisions on capital projects we were guided by the following objectives: to achieve equity and fairness among communities; to ensure that vital community infrastructure is put in place; to honour commitments to communities; to allocate and deliver capital projects in a manner that maximizes the local employment and business opportunities that can be obtained from capital spending.

This will require that capital spending is spread more evenly between years. In this way we intend to reduce the amount of labour being imported into the NWT, and maximize the local employment and training opportunities afforded by government capital projects.

The 1993-94 Capital Process

For the 1993-94 capital estimates we are proposing a whole new approach to capital budgeting. This new approach will provide for greater involvement by ordinary MLAs and by communities. The major elements of this new process, Mr. Speaker, are: the provision of a capital needs assessment to MLAs and communities as a consultation document for capital planning; a permanent change to the planning and approval cycle so that the capital budget is dealt with in the fall; and the introduction of, and adherence to, a standardized schedule and procedure for MLA and community involvement in the capital planning process. I have provided the details of this new process to the standing committee on finance for its review, and I will be providing more information on the proposed new process later in this session.

Conclusion

There is no doubt that we will have less money to spend, but if we make the right changes and take a new approach to how we operate, we should be able to get more benefit from the money we do spend. I am convinced, Mr. Speaker, that this is possible, but we will need to work together in an open and constructive way. Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Pollard. Ministers' statements. Ministers' statements. Item 4, Members' statements.

Mr. Zoe, your time has expired. Are you seeking unanimous consent?

The Honourable Member seeks unanimous consent. Are there any nays? There are no nays. Proceed, Mr. Zoe.

Members' statements. Mr. Arvaluk.

(Translation) Thank you, Mr. Speaker. In preparing for the budget, we will be dealing with the main estimates in March and perhaps into April. We understand that we will be in a deficit, and I think we should be careful, particularly as the territorial government has identified different needs in the community. It has to be realized that the main estimates and appropriations must be formed from the needs.

For example, Mr. Speaker, a child was recently killed in an accident because there was no snow removal that week due to lack of capital assets. The communities of Baker Lake, Coral Harbour and Repulse Bay, including Clyde River, have very heavy snowfalls, and a lot of the communities have not received an equal amount of mobile equipment. I think we have to make sure these disparities are assessed. Thank you, Mr. Speaker.

Thank you, Mr. Arvaluk. Members' statements. Members' statements. Mr. Gargan.

Thank you, Mr. Speaker. Mr. Speaker, I rise today to express my concern about the operations of the Workers' Compensation Board. I believe that the Workers' Compensation Board has lost touch with the people of the northern workplace and, in particular, lacks an understanding about traditional occupations practised by aboriginal harvesters in our communities.

Members may recall that when the House sat in December, I posed a series of questions about the manner in which the board has been treating hunters and trappers who are injured in the course of their work, in the bush or on the trapline.

The board, composed entirely of people from Yellowknife, has decided that they are qualified to define who should be considered a hunter and who should be considered a trapper. Without telling the Legislature they established internal policies which set up income criteria for identifying who should be considered principally engaged as traditional harvesters. They did this behind closed doors, Mr. Speaker, without seeking input from harvesters' organizations or regional councils while they were developing the policy.

After their directive had been drafted and passed by the board, they did distribute it through hunters and trappers organizations as an information item, but when I had the material analyzed I learned that the policy and accompanying materials are written in legalistic language that is as difficult to read as the Harvard Law Review.

Although they distributed it to hunters' and trappers' organizations in the Eastern Arctic and in our smaller, more isolated communities in the West, they did not even have the courtesy to translate their information package into aboriginal languages. Then they sat back and claimed they had the support of hunters and trappers across the Northwest Territories because they received no written criticism.

Mr. Speaker, as a result the men and women who have lived their lives hunting and trapping, and are recognized in their communities as hunters and trappers, are unable to receive compensation from the Workers' Compensation Board because the Yellowknife-based administration does not believe that they are really principally engaged in harvesting occupations.

It is indicative of a lack of accountability that has prevented this board...

Mr. Gargan, you have gone over your time.

Mr. Speaker, I would like to get unanimous consent to continue with my statement.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Proceed, Mr. Gargan.

I would like to thank the honourable Members. Mr. Speaker, it is indicative of a lack of accountability that has prevented this board and administration from being responsive to the needs of aboriginal Northerners.

The Workers' Compensation Board cannot be allowed to operate as an organization which puts itself above the needs, the aspirations and the values of the communities it is supposed to serve. The board is a creature of this Legislative Assembly, and it must be made accountable to the Assembly and to the people of the Northwest Territories.

I am encouraged by the decision of the standing committee on agencies, boards and commissions to conduct a comprehensive review of this agency early in the new fiscal year, and I would urge that a high priority should be placed on this.

I will also be calling on the Minister responsible for the Workers' Compensation Board to bring forth amendments to the Workers' Compensation Act, including a legislative definition of who should be considered principally engaged as a hunter and trapper. Mahsi cho, Mr. Speaker.

Thank you, Mr. Gargan. Members' statements. Mr. Allooloo.

(Translation) Thank you, Mr. Speaker. It is my pleasure to provide you with an outline of what occurred at the Nunavut Leaders' Summit in Iqaluit last month. (Translation ends) It was an historic and significant meeting with all those present working together toward the common goal of determining the future of Nunavut.

In attendance at the meetings were presidents and other elected officers of national, territorial, and regional Inuit organizations; senators of our region; MP for Nunatsiaq; members of Pauktuutit, the Inuit Women's Association; representatives of our youth and elders, and all of the Nunavut MLAs from this Legislature.

At the summit in Iqaluit, Mr. Speaker, we covered many issues. We spoke of the land claim and its contents and importance to the future of the people of the Nunavut territory; we spoke of the plebiscite on the boundary of the land claim; we heard from Makivik and the Inuvialuit Regional Corporation of their successes and problems which have followed the resolution of their claim; and on the last day we looked inward and discussed our conduct as leaders of the Nunavut region and learned from each other as we shared our experiences dealing with the stress and lonely moments of leadership.

We made many important decisions regarding the future of Nunavut and the evolution of the Nunavut government. The leaders present were united in their recommendation to set May 4 as the date for the plebiscite on the boundary. This date was chosen so that all people in the Northwest Territories can be informed of the importance of this decision. As well...

Mr. Allooloo, you have exceeded your time limit.

Mr. Speaker, I seek unanimous consent.

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Proceed, Mr. Allooloo.

Thank you, Mr. Speaker. Thank you, Members. Although the land claim and the creation of Nunavut are not the same, many Inuit who are concerned about the extinguishment clause in the final agreement want to have a firm commitment about Nunavut before they can ratify the land claim agreement. For this reason the plebiscite about the boundary must be held before the land claim agreement is ratified. While the results of the plebiscite will not be binding, we can expect that the federal government will be influenced by a strong show of support for the boundary.

Another decision that was made in Iqaluit was to have the ratification vote for the land claim on June 30th, July 1st and July 2nd. This is another important step along the road to self-determination by the people of Nunavut.

Article 4 of the TFN claim deals with the creation of Nunavut and with the negotiation of a political accord by TFN and the two governments. We had a lengthy discussion about the contents of such an accord, and about the timing of the establishment of the new government for the Nunavut territory, should we be able to agree on the outstanding issues such as the financial implications of two new territories and the powers and authorities that the new territories will exercise.

There was also much discussion on the timing of the establishment of the territory of Nunavut and it was recommended that the first election of the new government would occur in 1999. This would allow for the seven year transition period beginning from the introduction of the legislation creating Nunavut into the House of Commons in 1992, and ending with the establishment of Nunavut in 1999. This transition period is essential for proper planning and preparation for the new territory.

It was agreed during this summit that the Nunavut caucus, with the assistance of TFN, will play a key role in the planning of the new territory and will participate actively in the new transition and implementation commission that will be established to negotiate the details of the new territory.

During the course of the summit we also heard from Roger Gruben, chairman of the Inuvialuit Regional Corporation, and from Senator Charlie Watt of Makivik Corporation. We appreciated hearing of the experiences and wisdom of these individuals in a post-claim period. Mr. Gruben spoke of the desire of the Inuvialuit to establish a Western Arctic regional municipality in the Beaufort Sea area. The Nunavut caucus can sympathize with the Inuvialuit and support them in their deliberations as part of a Western Arctic territory, but ultimately it will be up to the Western Arctic leadership to deal with the issue.

On the last morning of the summit we spoke on the responsibilities of leadership. Our leaders are working hard and are under a lot of stress. We discussed how we can work together and support one another. Our elders gave us good advice and guidance as they told of the changes that they have seen within their lifetime. They told us to learn from our mistakes and to respect ourselves and each other.

We heard from our youth. We keep saying that the youth of our society are the future of all of us, and we included them in the summit as full participants. Our women's associations spoke to us and clearly and forcefully pointed out the issue of leadership and the need to be examples for our people. They want to have an equal role in the creation of a Nunavut government and the work associated with it.

Mr. Speaker, we learned a lot from this summit. We made decisions affecting the future of Nunavut and built alliances among the leaders of Nunavut that will ensure that our plans can be realized. Also, Mr. Speaker, at the end of the conference there was a very good feeling and I would just like to quote our women's leader. At the end of the meeting they told us that they felt uplifted and lighter because of the discussions that took place regarding leadership. We need to be more responsible toward our women counterparts in the Northwest Territories. Qujannamiik.

Thank you, Mr. Allooloo. Members' statements. Item 5, oral questions. Mrs. Marie-Jewell.

Thank you, Mr. Chairman. I have a question for the Minister of Renewable Resources in respect to pulp mills. In December 1991, the federal government announced a series of new regulations to be formed, aimed at limiting the discharge of toxic substances from Canadian pulp and paper mills. At that time the federal government had allowed a 60-day comment period in order to receive submissions about the proposed regulations. The deadline for the receipts of these submissions is February 14. Mr. Speaker, I would like to know whether our government has taken advantage of this opportunity and submitted any formal comments on these new federal regulations dealing with pollution from pulp and paper mills.

Minister of Renewable Resources, Mr. Ningark.

Thank you, Mr. Speaker. I will take the question as notice.

The question is taken as notice. Oral questions. Mr. Arvaluk.

Thank you, Mr. Speaker. My question is to the Minister of Justice. We know the federal government has been cutting back on the RCMP services in some communities. We have been informed that in the communities that do not have any RCMP, their facilities cannot be used. For example, a cell cannot be used by by-law officers in the event there is a problem in the community. Will the Minister be looking into finding a way to get these kinds of services provided to the communities, especially those who do not have any RCMP in the communities?

Minister of Justice, Mr. Patterson.

Thank you, Mr. Speaker. I would like to thank the honourable Member for giving me notice of his question. I would like to assure him and Members of this House that even though there are some difficulties with the financial situation and the negotiations surrounding the RCMP contract and restraint imposed by the federal government, I want to assure him that our objective, in working with the RCMP, is to locate a policeman in every community, and in places like Coral Harbour where there is a single member detachment, to find ways of providing back-up when those members must leave, as they have to from time to time.

I want to assure the honourable Member that I do understand there have been some difficult situations arise in his constituency and I would certainly very much like to explore with the Member and the community, what can be done locally to provide back-up in those times when the member may not be in the community. Qujannamiik.

Oral questions. Mr. Gargan.

Mr. Speaker, February 5th must have been a very busy day for the Minister responsible for the Workers'

Compensation Board. Honourable Members will recall that back in December I had posed several written questions. On February 5th, exactly one week before this House was scheduled to sit, the Minister chose to provide me with his response and sent me a package with over 100 pages to read.

---Laughter

I have gone through the material, and I am interested in the Minister's assurance that the chairman of the Workers' Compensation Board has, in his public presentation, requested input and placed considerable emphasis on his desire to meet with the groups and discuss various issues.

Mr. Speaker, I wonder if the Minister could tell this House how many times the chairman has met with the newly formed support group of injured workers in Yellowknife.

Mr. Patterson.

Thank you, Mr. Speaker. Yes, February 5th was a very busy day. I signed all those letters, and I hope the honourable Member has had time to read them before the session opened today. It sounds like he has, Mr. Speaker.

To answer the Member's question, I am not aware of whether the chairman of the WCB has met with that group, and I will have to take it as notice.

The question is taken as notice. Oral questions. Mr. Arvaluk.

Mr. Patterson.

I will have to take that question as notice. I cannot recall if I have answered that letter or not.

The question is taken as notice. Oral questions. Mrs. Marie-Jewell.

Mr. Speaker, I would like to direct my question to the Minister of Justice. I would like to know if this government has been involved in any legal action with either the Pacific pulp mill or the Daishowa pulp mill. If so, would he be able to provide us with a status report?

Minister of Justice, Mr. Patterson.

Mr. Speaker, the Government of the NWT is involved with a case concerning the Daishowa pulp mill. The issue in that case is whether or not a proper environmental assessment review was conducted by the Province of Alberta before the permission was given to proceed with that mill.

Mr. Speaker, the status of that action is that the court hearing that case reserved the next step in the proceedings pending the Oldman Dam case, which touched on similar issues. Mr. Speaker, the Oldman Dam case was recently concluded in the Supreme Court of Canada and therefore the way will now be clear to address the issue in the Daishowa matter, but I would say, Mr. Speaker, that my understanding is that it is not likely to resume until sometime hence. Even with the Oldman Dam case being concluded, we may have to wait some number of months before the Daishowa matter proceeds to the next stage. Mr. Speaker, that is the only litigation that I am aware of that our government is involved in relating to pulp mill issues. Thank you.

Oral questions. Supplementary, Mrs. Marie-Jewell.

Mr. Speaker, since he indicated that it would be some months before they proceed to the next stage, I would like the Minister of Justice to be able to advise this House in what time frame does he anticipate that the next stage would be proceeding. Can he give us some time frame that he is looking at? Thank you.

Minister of Justice, Mr. Patterson.

Thank you, Mr. Speaker. As I said, the Oldman Dam decision was concluded January 23, 1992, and the Daishowa application had been adjourned pending that decision, although I would note, Mr. Speaker, that it was not the GNWT that agreed or consented to the adjournment. The adjournment pending the Oldman Dam case was granted by the court despite the objections of the Government of the Northwest Territories.

Mr. Speaker, as to when the case might again be adjudicated, I will have to get more detailed information and get back to the honourable Member as soon as possible. I do not know at the moment whether the next step has been taken, or what the status is at this time. Thank you.

Are you taking the question as notice, Mr. Patterson? The question has been taken as notice. Oral questions. Oral questions.

Item 6, written questions. Written questions.

Item 7, petitions. Petitions.

Item 8, reports of standing and special committees. Item 9, tabling of documents. Ms. Cournoyea.

Mr. Speaker, I would like to table Tabled Document 1-12(2), a document on the 1991 Annual Report of the Government of the Northwest Territories.

Tabling of documents. Tabling of documents.

Item 10, notices of motions. Notices of motions.

Item 11, notices of motions for first reading of bills. Notices of motions for first reading of bills.

Item 12, motions.

Item 13, first reading of bills.

Item 14, second reading of bills. Item 15, orders of the day. Mr. Clerk.

Mr. Speaker, meetings for the remainder of today: There will be a meeting of the standing committee on finance immediately after recess, followed by a meeting of the Nunavut caucus. Meetings for tomorrow: tomorrow morning at 9:00 a.m., a meeting of the ordinary Members caucus and at 10:00 a.m., of the standing committee on agencies, boards and commissions.

Orders of the day for Thursday, February 13, 1992.

1. Prayer

2. Ministers' Statements

3. Members' Statements

4. Returns to Oral Questions

5. Oral Questions

6. Written Questions

7. Returns to Written Questions

8. Replies to Opening Address

9. Petitions

10. Reports of Standing and Special Committees

11. Tabling of Documents

12. Notices of Motions

13. Notices of Motions for First Reading of Bills

14. Motions

15. First Reading of Bills

16. Second Reading of Bills

17. Consideration in Committee of the Whole of Bills and Other Matters

18. Report of Committee of the Whole

19. Third Reading of Bills

20. Orders of the Day

Thank you, Mr. Clerk. This House stands adjourned until 1:30 p.m., Thursday, February 13, 1992.

---ADJOURNMENT