This is page numbers 691 - 718 of the Hansard for the 12th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was ---agreed.

Topics

Members Present

Hon. Titus Allooloo, Mr. Antoine, Mr. Arngna'naaq, Mr. Arvaluk, Hon. Michael Ballantyne, Hon. Nellie Cournoyea, Mr. Dent, Hon. Stephen Kakfwi, Mr. Koe, Mr. Lewis, Mrs. Marie-Jewell, Ms. Mike, Hon. Don Morin, Hon. John Ningark, Hon. Dennis Patterson, Hon. John Pollard, Mr. Pudlat, Mr. Pudluk, Mr. Todd, Hon. Tony Whitford, Mr. Zoe

--Prayer

Item 1: Prayer
Item 1: Prayer

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The Speaker Michael Ballantyne

Good morning. Before proceeding with orders of the day I would like to recognize in the gallery, students from two grade eight classes from William McDonald Junior High School, accompanied by their teachers, Mr. Webster and Mr. Sutherland.

-Applause

Orders of the day for Monday, June 22, 1992. Item 2,

Ministers' statements. Ms. Cournoyea.

Nellie Cournoyea Nunakput

Mr. Speaker, I am rising to announce, with deep regret, that effective today at 5:00 p.m. I will be accepting the resignation from cabinet of the Member for Natilikmiot. I understand that he will be making a statement, but until his replacement is selected the following acting Ministers will be in place: for Renewable Resources, Steve Kakfwi; Government Services, Don Morin; Status of Women, Dennis Patterson.

I would like at this time to ask the Members to join me in sharing your appreciation for the hard work that this Minister has done. Thank you.

--- Applause

The Speaker Michael Ballantyne

Ministers' statements. Mr. Morin.

Don Morin Tu Nedhe

Thank you, Mr. Speaker. I am pleased to announce that the review of the government's business incentive policy, BIP, is now complete. The BIP is one of numerous business incentive initiatives and is intended to ensure the provision of goods and services to the government, the private sector and the general public at a reasonable price, while compensating northern business for the higher cost of operating a business in the North, and to provide financial support to the northern economy through the reinvestment of corporate earnings.

Key points of the revision to the policy are: Previously the BIP excluded various types of contracts such as legal and engineering consulting contracts. The policy will now apply on all GNWT purchasing and contracts, including consulting contracts. 2) The revised policy will apply to all contracting authorities whenever 51 per cent or more of the funding is received from the territorial government. This includes boards, agencies and municipal authorities in addition to all GNWT departments. 3) Companies will be considered northern-based

on their compliance with the spirit and intent of the business incentive policy. This will be administered by a senior committee of deputy ministers and should result in a reduction of storefront businesses. 4) On projects that are competitively tendered, the following tender adjustments will be made at the time of tender evaluation: preference increased from 10 to 15 per cent for northern businesses; an additional five per cent preference will be given to local businesses.

I am also pleased to announce today, Mr. Speaker, that the Canada Mortgage and Housing Corporation has recently agreed to allow the application of the business incentive policy on all future projects cost-shared between CMHC and the NWT Housing Corporation.

An Hon. Member

Hear, hear!

Don Morin Tu Nedhe

CMHC's agreement is significant because it means that northern and local contractors will now receive preference, through the BIP, on housing contracts in their own communities.

The NWT Housing Corporation will be carefully monitoring the implementation of the BIP on its projects, and I look forward to reporting to this House in the future about the increased participation of Northerners in housing construction. Thank you, Mr. Speaker.

-Applause

The Speaker Michael Ballantyne

Ministers' statements. Mr. Morin.

Don Morin Tu Nedhe

Thank you, Mr. Speaker. As Members are aware, I was absent from this House on Wednesday, June 17, and Thursday, June 18, for the purpose of a meeting in Ottawa with the Hon. Elmer MacKay, Minister responsible for CMHC. Last February, the federal government announced that the federal funding for social housing in Canada was being reduced. Although the first indication was that only the rate of growth was being reduced, the true impact became evident later when all provinces and territories were advised that the provision of new housing units would have to be reduced substantially and that most of the available funding must go toward operating and maintaining existing housing in Canada. The impact on the NWT would be to reduce the number of new units we could provide by 59 per cent for the 1993-94 construction year.

As we still have a major shortfall of housing in the NWT, of approximately 3100 units, the effect of these reductions would be to eliminate the possibility of providing adequate, reasonable and affordable housing to NWT residents for the foreseeable future. As this clearly is not an acceptable situation, we have been working extensively with both the federal government and the provinces to restore funding to the 1991-92 levels.

In my recent meeting with Elmer MacKay, I was able to present to him the facts of our unique circumstances in the NWT that would justify and support the restoring of the funding levels. I am pleased to advise you that Mr. MacKay understood our needs and our unique circumstances. He indicated his intention to work with his colleagues, the Hon. Tom Siddon, Minister of Indian Affairs and Northern Development, and the Minister of Finance, the Hon. Don Mazankowski, to pursue ways and means of allocating significant federal funding for northern housing.

I will be meeting with the Hon. Elmer MacKay and the provincial and territorial Ministers of Housing on June 29 to address the planned federal funding reductions. I will report further progress to the House and to the standing committee on finance in early July following the ministerial meeting at the end of June. Thank you, Mr. Speaker.

The Speaker Michael Ballantyne

Ministers' statements. Item 3, Members' statements. Mr. Ningark.

Resignation From Cabinet
Item 3: Members' Statements

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John Ningark Natilikmiot

Thank you, Mr. Speaker and my colleagues. Having been pressured to sign my undated letter by the other side of the House, my resignation, at the beginning of a four-year journey; having been unable to balance the boat because of the unstable waves of events; having had to defend underfunded vessels across the Arctic Ocean not able to deliver goods at every port in my designated area, Mr. Speaker; and having seen my fellow cabinet Members not being given a chance to complete one-quarter of the four-year journey; knowing that people of Gjoa Haven, Spence Bay and Pelly Bay, and I am sure the public, want direction, construction jobs and business development, not uncertainties, delays and destruction of the centre machinery, I have tendered my resignation from cabinet as of 5:00 o'clock today, June 22, 1992.

Madam Government Leader has accepted my resignation from cabinet accordingly, and now I will devote my time to my family and the people of Gjoa Haven, Spence Bay and Pelly Bay. They need attention, not ignoring. Thank you.

--Applause

Resignation From Cabinet
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Members' statements. Mr. Lewis.

Appreciation Of Hon. John Ningark
Item 3: Members' Statements

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Brian Lewis Yellowknife Centre

Thank you, Mr. Speaker. I would like to express my appreciation to John Ningark. He has been a model, in my opinion, a person who listens to people and spends a lot of time thinking about what he has to do so that he does the

right thing. It is one of the unfortunate things in public life, Mr. Speaker, that it is very, very difficult to make a lot of people happy when we have a consensus kind of government or when that is the aim. I think that perhaps it gives all Members a chance to reflect on the kinds of pressures that we put ourselves under in trying to solve the problems of a vast area; on the incredible problems that we have to resolve, and the fact that among the Members that we chose last fall to serve on our Executive Council, probably John was one of the people who got the most votes.

So since that kind of appreciation and confidence drove us in the first place to do what we did, we should recognize the kind of pressures that we operate under and contemplate that when we make our next big decision. Thank you.

Appreciation Of Hon. John Ningark
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Thank you. Members' statements. Mrs. Marie-Jewell.

Jeannie Marie-Jewell Thebacha

Thank you, Mr. Speaker. I did want to do two things. One is with regard to Rule 21(5): I move, seconded by the honourable Member for Keewatin Central, that Ministers' Statement 71-12(2), entitled, Federal Funding, Social Housing, NWT, be moved into committee of the whole.

The Speaker Michael Ballantyne

Your motion is in order. There is no debate on the motion. All those in favour? Opposed? The motion is carried.

---Carried

The item will be moved into committee of the whole. Mrs. Marie-Jewell.

Resignation Of Hon. John Ningark From Cabinet
Item 3: Members' Statements

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Jeannie Marie-Jewell Thebacha

Thank you, Mr. Speaker. I just wanted to make a brief Member's statement with respect to the recent announcement by the Hon. John Ningark resigning from his ministerial portfolio. I do want to tell him that, as a Member of this Assembly, I certainly have appreciated his efforts and his work that he has put into his responsibilities that have been placed on him. I know that he feels the pressure and the criticism may have been directed at him, and It is unfortunate that he felt that way. However, it is unfortunate at times that criticism has to be granted in order to get our points across.

I do know that Mr. Ningark, within time, if he would have allowed time, would have made an excellent Minister because of the fact that he is a very honest man; he is a very open man; and that is one of the fundamental things that you need to become a Minister. It is unfortunate that he did not allow for time to develop because I know he would have developed to be an excellent Minister representing all the people in the Territories.

With that, I wish you the very best with your family. I know it has been very difficult for you to be here in Yellowknife without your family at your side, and it has made it extremely difficult for you to continue with your work and the demands placed upon you and your office. But I thank you very much personally, for the work that you have given and shown to this Assembly.

-Applause

Resignation Of Hon. John Ningark From Cabinet
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Members' statements. Mr. Zoe.

Resignation Of Hon. John Ningark From Cabinet
Item 3: Members' Statements

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Henry Zoe

Henry Zoe North Slave

Point of privilege.

Resignation Of Hon. John Ningark From Cabinet
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Point of privilege, Mr. Zoe.

Point Of Privilege

Resignation Of Hon. John Ningark From Cabinet
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Henry Zoe

Henry Zoe North Slave

Mr. Speaker, I rise on a point of privilege today concerning a CBC; news report that was aired this morning at 8:30. Mr. Speaker, the news report in question concerned the resignation of my colleague, Hon. John Ningark, from cabinet and the process to be used for his replacement. Mr. Speaker, the reporter involved here, Suzanne Morphet, used a quote of mine taken on Friday for the story, and used it in a way to create a media-generated controversy between Western and Eastern Arctic Members over how cabinet Ministers are chosen.

Mr. Speaker, I am on record in support of a particular process that would see puffing the best people forward for cabinet positions, rather than the present system we have now with an equal number chosen from the East and the West. However, in saying this, whatever process we use must be arrived at in a democratic fashion, and to attempt to create a controversy by implying that the East and West are already fighting over the method to be used to choose cabinet Ministers, even before the full caucus has had the opportunity to discuss it, helps no one.

The general public has not been given a true reflection of what is going on, and CBC, Mr. Speaker, should behave in a more honest and responsible fashion. Mahsi cho.

Resignation Of Hon. John Ningark From Cabinet
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Thank you. Mr. Zoe filed his concern within the guidelines set out by the rules. Members' statements. Mr. Todd.

Comprehensive Import Subsidy Strategy
Item 3: Members' Statements

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John Todd Keewatin Central

Thank you, Mr. Speaker. A sound and effective northern preference policy is only one stop along the journey toward economic viability in the North. An issue that must be addressed by this government, and now, is the fact that millions of dollars' worth of goods and services are imported into the Territories from southern Canada each year because they are not produced here. That is millions of dollars that could be invested in our northern economy. Obviously, the government must move now to help northern businesses expand the range of goods produced and services provided in the Northwest Territories. A comprehensive import substitute strategy is sorely needed.

Mr. Speaker, this is not a new issue. In October of 1990, the 11th Assembly's special committee on the northern economy, co-chaired by the honourable colleagues for Yellowknife Centre and Tu Nedhe, recommended that a comprehensive import substitute strategy be developed and implemented to stop the flow of money south. To quote the SCONE report, Mr. Speaker, the government should take the concept of import substitution seriously. It should target particular areas of the economy where import substitution has the best chance of success. It should then develop a long-term strategy to make import substitution a reality.

SCONE knows that our government always seems to be having difficulty getting beyond the idea stage. It is time to get beyond the idea stage. We must put principles into practice. Much more must be done to encourage regional industry development, and growth in the service sector. We need a strategic plan that will allow our money to stay home in the North.

There are many areas that the government could look at as a

starting point. The items that we import from the South are many and varied: lumber, food, furniture, housing materials, at cetera. The list goes on. For example, Mr. Speaker, the NWT Housing Corporation imports fibreglass; tanks every year that are built in Manitoba. There is no reason why these tanks could not be built in the North.

--- Applause

I realize that implementing a substitute strategy cannot be done by one department alone. This means that Ministers will have to talk to each other about the policy. It means that the Government Leader will need to co-ordinate interdepartmental initiatives and provide the leadership we require to test out new prospects for production and supply. There must be a long-term focus which compares the reality of high production costs in the North to the overall benefit that will be realized in the North. Thank you.

Comprehensive Import Subsidy Strategy
Item 3: Members' Statements

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The Speaker Michael Ballantyne

Thank you, Mr. Todd. You exceeded your time limit. Members' statements. Mr. Arvaluk.