Agreed.

---Agreed

The committee will now come to order. I believe Madam Premier has opening remarks for the Northwest Territories Power Corporation. Madam Premier.

Northwest Territories Power Corporation, Introductory Remarks

Thank you, Mr. Chairman. Mr. Chairman, while the Northwest Territories Power Corporation has been established as a Crown corporation every effort has been made, where appropriate, to allow it to operate at arm's length from usual government process as an independent regulatory utility. Today the corporation is fully regulated and operates in competition with both Northland Utilities Ltd. and Centra Power Inc.

Mr. Chairman, the corporation's 1993-94 O and M budget was recently approved by the corporation's board of directors. A package including the corporation's capital budget, O and M budget and corporate plan is near completion for submission to the Financial Management Board.

In June, 1992, the corporation's board of directors approved a set of principles to guide the development of a staff housing policy. These principles provided direction to increase rents and utilities through a phased-in approach. In addition, direction was given to develop a method for selling staff accommodation and to withdraw from providing accommodation in communities that have road access.

The NWT Power Corporation is required to consult with the Union of Northern Workers when initiating new policies that affect employees' terms and conditions of employment. Consultation on the housing policy has commenced with a meeting held February 18, 1993.

During the last sitting of this Assembly, a preliminary report by Mr. Fred Abbott on privatization of the Power Corporation was provided to Members. This report outlined the opportunity for privatization and issues for further consideration. A commitment was made to provide a report on Mr. Abbott's assessment and model for privatization during this session. That report is very near completion, will be made available to Members and should be ready for tabling on Monday.

Finally, Mr. Chairman, the corporation's recently concluded agreement with the Dogrib Power Corporation will stand as a landmark for development in the Dogrib/North Slave region. This agreement will see the Dogrib Power Corporation design, construct and own two hydroelectric sites and the NWT Power Corporation assume operating responsibility upon their completion. This agreement, for a term of 65 years, will result in greater price and supply stability in this region.

The corporation is also participating in a review of potential mineral development sites and is exploring the opportunity for power supply through new hydro development or transmission line extensions. In addition, the corporation is exploring the opportunity for utilization of the excess generating capacity at Taltson.

Mr. Chairman, that concludes my opening statement and I would be pleased to answer any questions which the Members may have.

Thank you. There are no comments from the Standing Committee on Finance. Are there any general comments or questions? Mr. Koe.

General Comments

Thank you, Mr. Chairman. Can the Minister advise us of the current status of the privatization initiatives for the NWT Power Corporation?

Madam Minister.

Mr. Chairman, the report is ready for tabling. We would have had it earlier, however, it is still being translated, it should be ready for tabling on Monday.

Merci. Are there any general comments? Mr. Koe.

Mr. Chairman, the staff of the Power Corporation currently lease houses which I assume are owned by the Power Corporation. Can the Minister advise us if the lease arrangements for these houses are similar to those of other government employees?

Thank you. Madam Minister.

Mr. Chairman, I believe they are. The officials are present should the Members wish to go into detail on this. The officials would be prepared to expand on that particular issue and other issues which are more detailed.

Thank you. It is your prerogative, Madam Minister, do you wish to bring in witnesses?

Yes, Mr. Chairman.

Can the Sergeant-at-Arms please escort the witnesses.

For the record, can you please introduce the witnesses.

Thank you, Mr. Chairman. Mr. Gordon Green, vice president of finance and administration, will expand on the question which was asked by Mr. Koe.

Mr. Green.

Thank you, Mr. Chairman. The corporation has extensive housing throughout the Northwest Territories whereby it does lease its facilities to its employees. Not being readily familiar with the government's lease amount, I think ours are a little bit lower and we also have a flat charge for utilities.

Thank you. Mr. Koe.

Do Power Corporation employees get subsidized power and fuel rates?

Mr. Green.

Thank you, Mr. Chairman. The corporation does not charge its employees based on the amount of fuel they use when in corporation housing. In fact, it is a flat charge. In my case, living in Hay River, we pay the utility charge to Northland Utilities based on the amount we use. However, an employee in Iqaluit or Coppermine would pay the flat $120 per month for utilities.

Madam Minister.

As an information note it was on June 12, 1992, that the Power Corporation's board of directors approved a set of principles in which to guide the development of a staff housing policy. These principles provided direction to increase rents and utilities through a phased-in approach which relates to the comment in my statement. This is so the employees would be responsible for the actual costs associated with fuel, utilities and rental rates which were more in line with market rates of rent in communities. In addition, direction was given to develop the method for selling staff accommodation and withdrawing from providing accommodation in communities which have road access.