This is page numbers 19 - 43 of the Hansard for the 12th Assembly, 5th 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 first.

Topics

Question 28-12(5): Appraisals Of GNWT Housing In Coral Harbour
Item 5: Oral Questions

Page 29

The Speaker Jeannie Marie-Jewell

Thank you. The Government Leader, Ms. Cournoyea. The question was directed to the Minister of DPW, who is not in the House. Whoever is taking his responsibility...Ms. Cournoyea, go ahead.

Question 28-12(5): Appraisals Of GNWT Housing In Coral Harbour
Item 5: Oral Questions

Page 29

Nellie Cournoyea Nunakput

The Honourable Minister Pollard has been asked by Mr. Morin to answer any questions and look after House business in his absence. Thank you.

Question 28-12(5): Appraisals Of GNWT Housing In Coral Harbour
Item 5: Oral Questions

Page 29

The Speaker Jeannie Marie-Jewell

Thank you. Government House Leader, Mr. Pollard.

Return To Question 28-12(5): Appraisals Of Government Housing In Coral Harbour
Question 28-12(5): Appraisals Of GNWT Housing In Coral Harbour
Item 5: Oral Questions

Page 29

John Pollard Hay River

Thank you, Madam Speaker. Madam Speaker, I don't know why all the houses were not done when the appraisers first visited Coral Harbour, and I don't know why the trip was cancelled in September, because I understood it was going to go ahead. But, the government is anxious to sell and if there are people anxious to buy, then we will send appraisers in there just as soon as we possibly can, Madam Speaker. Thank you.

Return To Question 28-12(5): Appraisals Of Government Housing In Coral Harbour
Question 28-12(5): Appraisals Of GNWT Housing In Coral Harbour
Item 5: Oral Questions

Page 29

The Speaker Jeannie Marie-Jewell

Thank you. Item 5, oral questions. Just before we go on to written questions, I want to advise Members that I have been very lenient with the amount of time spent for preambles, and questions that have been posed during the past two days. However, in our new session in February, I will ask Members to be conscientious of the length of time used for preambles in questions posed. And, I would like to ask Ministers to be conscientious of the time spent in answering questions. Thank you.

Item 6, written questions. The honourable Member for Iqaluit, Mr. Patterson.

Item 6: Written Questions
Item 6: Written Questions

Page 29

Dennis Patterson Iqaluit

Thank you, Madam Speaker. My written question is to both the Ministers of Public Works and Personnel, as follows.

Written Question 1-12(5): Assessment Of All Housing Units For Energy Efficiency And State Of Repair
Item 6: Written Questions

Page 29

Dennis Patterson Iqaluit

Would the Minister responsible for the Department of Personnel please advise this House of the following:

As I understand the staff housing strategy, all staff housing units were to be assessed for energy efficiency and state of repair. The Department of Personnel was then to reassess and adjust rental rates and rental increases, to reflect the condition of the housing unit.

1. Was there an assessment of the condition of the so-called "white row housing" units in Iqaluit?

2. What were the results of those assessments?

3. Have those results been reflected in reassessed rents?

Written Question 2-12(5): Assessment Of All Housing Units For Energy Efficiency And State Of Repair
Item 6: Written Questions

Page 29

Dennis Patterson Iqaluit

Would the Minister responsible for the Department of Public Works please advise this House of the following. As I understand the staff housing strategy, all staff housing units were to be assessed for energy efficiency and state of repair. The Department of Personnel was then to reassess and adjust rental rates and rental increases to reflect the condition of the housing unit.

1. Was there an assessment of the condition of the so-called "white row housing" units in Iqaluit?

2. What were the results of those assessments?

3. Have those results been reflected in reassessed rents?

Thank you.

Written Question 2-12(5): Assessment Of All Housing Units For Energy Efficiency And State Of Repair
Item 6: Written Questions

Page 30

The Speaker Jeannie Marie-Jewell

Thank you. Item 6, written questions. The honourable Member for Nahendeh, Mr. Antoine.

Written Question 3-12(5): Results Of Harvest Of Big Game In The Nwt
Item 6: Written Questions

Page 30

Jim Antoine Nahendeh

Mahsi, Madam Speaker. I have a series of questions. They are all related to the same subject. This is for the Minister of Renewable Resources.

Would the Minister of Renewable Resources please provide the following information to this House. A breakdown of the following species of big game taken last year in each hunting zone in the Mackenzie mountains:

- moose - bull, cow and calves

- caribou - bull, cow and calves

- grizzly bears

- black bears

- Dahl sheep - rams, ewes

What did each outfitter do with the meat of the animals taken?

Did any of the meat go to the communities? If so, which communities and when?

What was taken out of the country? Trophies? Were there export permits issued? How were they issued?

What was the number of people employed by the big game outfitters from each committee in the Deh Cho region, the Sahtu region and the Gwich'in region? Who were they and when were they employed?

Mahsi.

Written Question 3-12(5): Results Of Harvest Of Big Game In The Nwt
Item 6: Written Questions

Page 30

The Speaker Jeannie Marie-Jewell

Thank you. Item 6, written questions. Item 7, returns to written questions. Item 8, replies to opening address. Item 9, petitions. Item 10, reports of standing and special committees. The honourable Member for Nahendeh, Mr. Antoine.

Item 10: Reports Of Standing And Special Committees
Item 10: Reports Of Standing And Special Committees

Page 30

Jim Antoine Nahendeh

I have a report here that I wanted to read, but there is so much paper here that I can't find it.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

December 13th, 1993

Page 30

Jim Antoine Nahendeh

Madam Speaker, this is in response to the options paper on deficit management by the Standing Committee on Finance.

Background

The issue of deficit management is one that has been addressed in a number of recent discussions between the Standing Committee on Finance, the Financial Management Board and the Department of Finance. The focus of these discussions has been financial management in general, the fiscal framework of the Government of the Northwest Territories and the 1994-95 capital estimates.

In its report on the review of the 1994-95 capital estimates, which was tabled on November 22, 1993, the Standing Committee on Finance said that, "We must all work toward solutions to the problem of deficit financing." Clearly, the Minister of Finance and Cabinet must provide the leadership to provide consensus on the strategies that are required to limit spending and maintain a strong fiscal position.

On December 9, 1993, the chairman of the Financial Management Board, provided the committee with an options paper on deficit management.

A Good Beginning

The problem addressed in this options paper is that large, unanticipated expenditures and revenue declines have placed the Government of the Northwest Territories in a significant deficit position for 1993-94. This deficit may carry forward to future fiscal years unless a plan of action can be agreed upon by the Legislative Assembly.

- The options paper briefly outlines the choices, that is, the basis options that are available for any government facing ongoing deficits;

- A framework for making choices - this section provides an illustration of how options can be evaluated based on overall government objectives and priorities; and,

- Options and actions - this section describes actions which could be taken within the context of the three basic options, outlined previously. The three basic options are: a) reduce spending, b) increase

revenues, and c) incur deficits and finance them through borrowing.

The options paper concludes with the following suggestions:

"The Government of the Northwest Territories faces a significant deficit which may continue and grow in future years if a deficit management plan is not agreed to.

To provide guidance in the development of a deficit management plan it is important that the government identify its fundamental objectives and priorities. Specific actions can then be selected and developed for subsequent approval and implementation."

Finance Committee's Assessment

The Standing Committee on Finance does not feel that the time is right to introduce the options paper in its present form, to committee of the whole for discussion. There are three basic reasons for this position. First, there is not enough time left in the current sitting to provide the attention that this matter requires. The options put forward in the paper are not specific enough to make discussion in committee of the whole really productive. Finally, because of a lack of clarity in the options presented, Members have not had an opportunity to discuss the government's fiscal position with their constituents.

Although committee Members were pleased with the framework presented in the options paper, they were, for a number of reasons, somewhat disappointed with its content. The reasons for the committee's dissatisfaction are outlined as follows:

- Members expected that the government would be further advanced in the process of deficit management than what is evidenced in this document.

- Members felt that the options paper reflected a lack of preparation and planning on the part of the government.

- The paper does not clearly specify or assess the details of the various choices available to deal with or avoid deficit financing.

- Members expected the government to assume a leadership role. The government should have used the vehicle of the options paper to present their preferred option, as well as the thinking and rationale behind that particular choice.

- The options paper does not provide a clear understanding of the potential implications of the choices presented. Ordinary Members and Members of the Standing Committee on Finance do not have the resources and the operational information available to Cabinet to accurately evaluate the implications of the various options.

- The government does not appear to have any clear and concrete guiding principles steering their overall fiscal policy.

The standing committee is left with two major concerns. The first issue is short term. The government does not appear to have a comprehensive set of priorities to guide its budgeting process. The second concern is longer term. The government does not have a comprehensive strategy which specifies and ties together, for the next ten years, various high priority issues such as: housing, health, the formula financing agreement with the federal government, education and training, land claims, official languages, transportation infrastructure, forestry and mining, the northern accord and the incremental costs of division of the Northwest Territories.

Issues And Recommendations

Although spending priorities were presented with the 1994-95 capital estimates, these were neither clear nor detailed enough to adequately guide the capital planning process. Furthermore, the detail of the capital estimates did not necessarily reflect the priorities as they were outlined by the government.

Committee Members are very concerned about the upcoming review of the 1994-95 operations and maintenance estimates. Members believe that the government must establish spending priorities which accurately reflect the current political realities of all Members of the Legislative Assembly and citizens of the Northwest Territories. Further, the 1994-95 operations and maintenance budget presented to the Standing Committee on Finance must clearly reflect these priorities. Finally, it is critical that strategies be developed to avoid deficit financing in the short and long term.

Recommendation 1

Therefore the committee recommends that the Department of Finance and the Financial Management Board develop a short-term strategy, aimed at avoiding deficit financing, to guide fiscal management for the 1994-95 fiscal year. This short-term strategy should be presented to the Standing Committee on Finance at the commencement of the committee's meetings on January 10, 1994, and should include the following:

- a discussion of the underlying principles, priorities and objectives;

- a discussion and assessment of deficit reduction options;

- a detailed deficit reduction plan for 1994-95; and,

- details of any federal/provincial/territorial plans for deficit reduction.

In the longer term, committee Members are very concerned by the fact that the Government of the Northwest Territories does not have a comprehensive strategic plan and fiscal policy in place to deal with high priority political issues. Further, Members feel that there is an urgency associated with the development and implementation of a long-term fiscal strategy and that it is essential that such a strategy be in place to ensure successful negotiations with the federal government who are also facing an ever worsening fiscal situation. The window of opportunity is very narrow and must not be missed.

Recommendation 2

issues and develop the political strategy to achieve the following results.

- Certainty of adequate funding to create and sustain two new territories with no diminished level of service.

- Each territory to be given the economic tools necessary to lessen their dependence on the federal government, for example, a northern accord and a mining accord.

- A ten-year financial agreement with the federal government to provide a basis of fiscal stability in order to facilitate the orderly constitutional evolution of two new territories.

The plan and the political strategy should be available to the Standing Committee on Finance for review in February, 1994.

Madam Speaker, that concludes the report of the Standing Committee on Finance on the committee's response to the options paper on deficit management.

Motion To Receive And Adopt Committee Report 1-12(5), Carried

I would therefore, move, seconded by the honourable Member for Yellowknife Frame Lake, that Committee Report 1-12(5) be received and adopted. Mahsi.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 32

The Speaker Jeannie Marie-Jewell

Thank you. Your motion is in order. To the motion. Mr. Pollard.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 32

John Pollard Hay River

Thank you, Madam Speaker. To the motion. Madam Speaker, the committee uses some rather strong language, "Members expected that the government would be further advanced in the process of deficit management". We are fairly advanced, Madam Speaker. "Lack of preparation", we are fairly well-prepared, Madam Speaker, in our opinion. I do admit that the paper does not clearly specify or assess the details of their various choices, but I heard in the review, from various Members, that it's consultation, consultation, consultation. If I had come forward with a paper and placed it upon the table and said, well this is what we intend to do, then I would have likely received a response from Members saying, well you never consulted us, you didn't priorize with us. So, I placed a rather bland paper before this House to enable Members to do exactly what it says here in the issues and recommendations on page five, "Members believe" and I quote Madam Speaker, "that the government must establish spending priorities which accurately reflect the current political realities of all Members of the Legislative Assembly and citizens of the Northwest Territories". Where else am I going to get that political reality except from Members of this House? Who better can I get the reading of the Northwest Territories and its constituents from, but the Members who represent those constituents right on the floor of this House. So, that was the information that I was looking for, Madam Speaker.

Madam Speaker, the report goes on to say that we must make an effort to have a plan for ten years. Madam Speaker, there is not a government across this country right now that can plan beyond three or four years. That's how fast this fiscal situation

is moving in the Northwest Territories, in the Yukon, in all of the provinces and with the Government of Canada.

Madam Speaker, it's like trying to keep up with a runaway train. What I wanted to do, by placing that discussion paper before this House, is to say look, give us some ideas of what the priorities are of this particular Legislative Assembly. I heard last week, I listened and I learned that social issues are a large concern. That's good, I know what to take to FMB the next time I'm there, to discuss with the Members the fact that you want to see senior citizens taken care of. You want to see the food basket money increase. You want to see that we have caring programs for people who are not as fortunate as us. I take that and understand it and I will do something about it.

But, you see, there are other things that we need to know. We need to know whether you want to priorize housing or whether you want to priorize education. We want to know whether you want to invest money in the economy. We want to know whether you want to continue with parks. We want to know whether you want to continue with an infrastructure for transportation. We want to know whether you want us to put pavement down on the road or leave it as gravel. We want to know if you want to put a new airport in or lengthen an airport or put in a new building. We want to know what Members are feeling, with regard to the political aspirations of their communities and the needs and the wants of their constituents. That was the reason that we placed this paper there.

Now, if you want us to come to you and say, well this is the decision that we've made based on what we've seen and heard maybe from Chambers of Commerce, maybe from the Association of Municipalities, maybe from a lot of the social organizations out there, that's fine. We'll bring that back to you and say, this is the budget as we see it. But, we really would have liked to get some discussion going to give us some direction about where you, the people who represent the people of the Northwest Territories, are coming from.

So, I will not be moving the motion today to move it into committee of the whole, Madam Speaker, as I think the committee report definitely suggests that I shouldn't do that. I want to let Members know that I am prepared to consult in groups, individually, any way you want to do it, on how we put together our budgets for the next three, four, five years and what emphasis should be placed upon those budgets. Thank you, Madam Speaker.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 32

The Speaker Jeannie Marie-Jewell

Thank you, Mr. Pollard. To the motion. The honourable Member for Iqaluit, Mr. Patterson.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 32

Dennis Patterson Iqaluit

Thank you, Madam Speaker. I would just like to respond to some of the comments made by the honourable Minister of Finance. Madam Speaker, first of all, I would like to assure the Minister that, as an ordinary Member, I am well aware of the responsibility that we have, especially in a consensus system, to take responsibility and participate in some of the difficult decisions that we know are ahead of this government and indeed other governments in this country, at this point in our history. At the same time, Madam Speaker, the Minister of Finance is correct when he says that there is a high expectation about consultation, but Madam Speaker, I don't believe that what the Minister himself has admitted is a bland paper, a paper with very little detail to it, a paper with

very little flesh to it, is adequate consultation. I think that the Minister must understand that, rather than shying away from participating in the tough decisions that have to be made, the hesitation on the part of Members on this side of the House, is that we simply don't have the detailed knowledge of departments, we don't have the detailed knowledge of the financial implications of various cuts and restraint measures to properly assess the implications of the various options presented.

I think that the problem here is that we are seeking a middle ground. Not, the extreme that the Minister of Finance has suggested would happen, where we would be presented with a fait accompli, where he would bring in a detailed package of restraint measures and take his chances in the House. That is not in the spirit of consensus or the spirit of consultation that we want, but neither is having a rather vacuous debate on a paper that is full of bland principles. I think what is missing here is that we would have liked to have some flesh put on those principle and on those options that were presented to us. With respect, that's what's deficient in this paper, it simply doesn't follow through and give us the concrete implications of some of those options.

That's the problem here, Madam Speaker. I think we would have liked to have seen a paper with more detail and more flesh to it. I hope that, as we work to face this crisis together, there still will be a mechanism developed whereby that kind of more detailed discussion of options can occur before we finalize the coming fiscal year's O&M budget. Thank you, Madam Speaker.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 33

The Speaker Jeannie Marie-Jewell

Thank you. To the motion. The honourable Member for Yellowknife Frame Lake, Mr. Dent.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 33

Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Madam Speaker. I would like to speak in favour of the motion and also address some of the concerns that the Minister of Finance has expressed. I think Mr. Patterson has addressed a number of them. Consultation is certainly one area that Members still want to be involved in, but I can't support an unfocused discussion, which this paper would lead to, on an issue as serious as this. It's incumbent on the government to provide the focus for our discussion by providing leadership and presenting the options. As ordinary Members, we don't have the inside knowledge of what's going on in the departments. So, if one Cabinet Minister should feel, for instance, that one area of responsibility isn't as important as some other and should be cut -- suppose someone were to say, let us cut all spending on parks -- how am I supposed to assess the impact on...(inaudible).

The Finance Minister said that the departmental officials could be here to answer questions. Madam Speaker, I don't think that it is right for us to make judgments of that nature based on oral testimony of the departmental officials before this House at the last minute. We are faced, again, with an important issue coming on the table at the last minute. If this was so important, why wasn't it brought in earlier? I don't think that anybody will fail to recognize that there is a great deal of pressure to end this session so that Members can get back home for Christmas. Bringing something in like this at the last minute doesn't leave us enough time to adequately discuss the issue. We are looking for not totally arbitrary decisions, we are looking for focused discussion.

We want the Minister to come back with an options paper that says, here is what we can do, here are the pros and the cons. Yes, we do want to discuss that. As has been said by the Chairman of the Standing Committee on Finance, we are willing to act, in that committee, as the sounding board for some of those ideas. If the Minister is willing to take that sort of approach, we will be willing to listen in January. Madam Speaker, I would urge all Members to support this motion.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 33

The Speaker Jeannie Marie-Jewell

Thank you. To the motion.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 33

An Hon. Member

Question.

Committee Report 1-12(5): Standing Committee On Finance Response To Options Paper On Deficit Management
Item 10: Reports Of Standing And Special Committees

Page 33

The Speaker Jeannie Marie-Jewell

Question has been called. All those in favour? All those opposed? Motion is carried.

---Carried

Item 11, reports of committees on the review of bills. Item 12, tabling of documents. The honourable Member for Deh Cho, Mr. Gargan.

Item 12: Tabling Of Documents
Item 12: Tabling Of Documents

Page 33

Samuel Gargan Deh Cho

Madam Speaker, I wish to table, Tabled Document 11-12(5), the First Annual Report of the Languages Commissioner of the Northwest Territories for the year 1992-93.

Item 12: Tabling Of Documents
Item 12: Tabling Of Documents

Page 33

The Speaker Jeannie Marie-Jewell

Thank you. Item 12, tabling of documents. Item 13, notices of motion. The honourable Member for Baffin Central, Ms. Mike.

Item 12: Tabling Of Documents
Item 12: Tabling Of Documents

Page 33

Rebecca Mike Baffin Central

Madam Speaker, I seek unanimous consent to go back to tabling of documents.