In the Legislative Assembly on October 20th, 1994. See this topic in context.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

October 19th, 1994

Page 414

The Chair John Ningark

Department Of Education, Culture And Employment

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The Chair John Ningark

Thank you. The committee will come back to order. The Department of Education, Culture and Employment 1995-96 capital estimates begins on page 16-02. When we concluded yesterday, we were on general comments. General comments. Do you want to go into detail?

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Some Hon. Members

Agreed.

---Agreed

Line By Line

Culture & Careers

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The Chair John Ningark

Page 16-9, culture and careers, building and works, headquarters, total region, $215,000. Agreed?

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Some Hon. Members

Agreed.

---Agreed

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The Chair John Ningark

Thank you. Fort Smith, total region, $3.863 million. Agreed?

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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Some Hon. Members

Agreed.

---Agreed

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. Inuvik, total region, $150,000. Agreed?

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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Some Hon. Members

Agreed.

---Agreed

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. Mr. Patterson.

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Dennis Patterson Iqaluit

I wonder if the Minister could outline, please, the proposed renovations to the Aurora Campus in Inuvik.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. The honourable Minister.

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Richard Nerysoo Mackenzie Delta

Mr. Chairman, first of all, I would like witnesses here, and, secondly the details of the project are not in yet. It's in future years. The planning is for this particular year.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. I take it Mr. Minister wants to bring in the witnesses. Do we have the concurrence of the committee?

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Some Hon. Members

Agreed.

---Agreed

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The Chair John Ningark

Thank you. Proceed, Mr. Minister. Sergeant-at-Arms, bring in the witnesses.

Mr. Minister, please introduce the witnesses.

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Richard Nerysoo Mackenzie Delta

Thank you. On my right, Mr. Jim Kaulbach, and on my left, the deputy minister of Education, Culture and Employment, Mr. Hal Gerein.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. Inuvik, total region, $150,000. Mr. Patterson.

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Dennis Patterson Iqaluit

Mr. Chairman, I appreciate the money here is for planning, but I would just like to ask the Minister, the department must have some idea of the nature of this project that they're planning for. What are they planning for? Thank you.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. The honourable Minister.

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Richard Nerysoo Mackenzie Delta

Let me, Mr. Chairman, read...Thank you, Mr. Chairman. The campus needs upgrading to meet expanding curriculum offerings, and the option to consider transfer into Grollier Hall appears to be viable. This decision is pending examination of student housing needs for the region. If the Grollier option is being considered, the future use of the utilidor has been raised as the town wants to remove it in its entirety. The unfortunate thing is Grollier Hall is one of the biggest users. At the present time, we're doing the consultation with the Baffin Divisional Board of Education for Arctic College on the student options and future use of Grollier Hall.

So the determination, even though the dollars are outlined, will determine the actual direction and also the expenditures.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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Page 415

The Chair John Ningark

Thank you. Culture and careers. Mr. Patterson.

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Dennis Patterson Iqaluit

Mr. Chairman, I would just like to make it clear that I have no hesitation or difficulties at all with seeing some $5.5 million, or I guess a total of $6 million forecast in future for renovations to the Aurora Campus.

As I recall, the Department of Education got this building for $1 from the military. It's an incredible facility, but old; very old. But still the replacement cost would be staggering to get that kind of square footage. So I'm really quite pleased to see this substantial expenditure envisioned as an investment in our human resources in that region.

What makes me curious, though, is that there's a similar ancient building inherited from the military in the Baffin region, namely the single student residence in Iqaluit, about which minor capital renovations I made such a fuss about last week. I guess what I would like to ask the Minister is, is the department thinking similarly that money should be budgeted to renovate the so called Federal Building in Baffin which includes, like the Aurora Campus, shops, residences, classroom space. I'm just curious why we don't see some planning money or some renovation money also in place for that building. It seems that it's very comparable to the old building in the Aurora Campus in Inuvik. Thank you.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you, Mr. Patterson. Mr. Minister.

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Richard Nerysoo Mackenzie Delta

Thank you, Mr. Chairman. Just so that the honourable Members here realize that new campus and classroom space was provided in Iqaluit. The issue that is being addressed here is program and administration needs.

That is why we are trying to address the actual needs with the review this particular year, because what we're finding is that we have more students that the original classrooms that were transferred. If the honourable Member has forgotten since his tenure as Minister, there are only basically three classrooms in the gymnasium area and, basically, I believe, about three classrooms in the administration building. Because of that, the unfortunate situation is that we cannot expand the programs. So what we're looking at is the renovation of those particular buildings to provide additional classroom space and the possibility of not building new space but, in fact, renovating and utilizing Grollier Hall as part of that expansion.

There are a number of considerations, and I think the honourable Member is correct in raising the issue on student housing. But that, in itself, is an additional issue that is going to be addressed once we've come to a conclusion on reviewing the plan that has been provided to us for student housing. So that's generally what is occurring right now.

On the other point that the honourable Member has raised, I have been made aware, as the Member knows, from my recent trip to Iqaluit. So we'll try to address the concerns that he's raised but, again, we have to do it, I think, on a collective basis, rather than just one campus versus another. This is a situation where we don't have enough program space for the students today.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. Culture and careers. Mr. Patterson.

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Dennis Patterson Iqaluit

That's well and good, Mr. Chairman. I appreciate that response. Just one final question on this one, and I want to, perhaps, make it abundantly clear that I welcome these expenditures at Aurora Campus and I'm not trying to see any competition between one campus and another. But I think if it's good for one area, it should be good for a comparable facility elsewhere.

I would just like to ask the Minister if he could elaborate a little bit on the...He made mention of plans in place to improve program facilities at the Nunatta Campus. Could I have a little bit more detail on that? Thank you.

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The Chair John Ningark

Thank you. The honourable Minister.

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Richard Nerysoo Mackenzie Delta

Mr. Chairman, what I indicated was that I understand the issue of the need for improvements in Nunatta. But I am also being pressed, Mr. Chairman, for other facilities in other regions; in particular, one that is lacking very substantial services is Kitikmeot, for instance. There is some basic infrastructure that most regions require. In order for us to be responsive in every region, we have to pay attention to at least some basic requirements. I do understand the concern that the honourable Member has raised. He pointed it out to me when we travelled to Iqaluit together, and when I met and toured the community. It's probably the same situation with most Members on the Standing Committee on Finance. So we're aware of it, and what we're trying to do is ensure that the basic services are there.

I believe the other point that needs to be made is the way in which we're going to fund projects in future. The board for Nunavut college, Nunavut Arctic College, will be instrumental in determining the expenditures in future. I am hoping that the new formula arrangement, the formula financing will, in fact, rectify some of the inequities. But a lot of it may take a little longer than we would want it to. That's the only thing I would be cautious about, Mr. Chairman.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. Total region, Inuvik, $150,000. I have Mr. Dent and Mr. Gargan. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. Mr. Chairman, I would like to seek committee's approval to go back to the Fort Smith region.

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The Chair John Ningark

Thank you. Do we have the committee's concurrence to go back to the Fort Smith region?

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Some Hon. Members

Agreed.

---Agreed

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The Chair John Ningark

Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. My question is about the applied arts and library building in Fort Smith. Mr. Chairman, I noted that in the budget in 1989-90, $6.68 million was the projected overall budget. By 1991-92, that had grown to $6.69 million. And I see in our books this year that if you include the future, we're looking at a total of $8.65 million. I would just like to ask the Minister, what has caused this budget to grow by this substantial amount over a short period of time.

Bill 1: Appropriation Act, No. 1, 1995-96Committee Report 10-12(6): Report On The Review Of The 1995-96 Capital Estimates
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The Chair John Ningark

Thank you. The honourable Minister.

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Richard Nerysoo Mackenzie Delta

Thank you, Mr. Chairman. A great deal of it, I think, deals with inflationary costs. Another deals with the program space as part of the two components.

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The Chair John Ningark

Qujannamiik. Total region. The honourable Member for Yellowknife Frame Lake.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. I'm just a little bit surprised by the answer that inflation had to do with this, considering what the inflation rate has been in the last couple of years. Can the Minister advise how much of that increase relates to inflation?

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The Chair John Ningark

Mr. Minister.

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Richard Nerysoo Mackenzie Delta

What happens is that we calculate the cost of the project. As we get to the actual construction itself, we get firmer and firmer calculations and that's the problem. It's one thing for us to forecast and another to actually expend the dollars, based on the projection.

The other component, of course, deals with the whole issue of other factors. We could be paying additional dollars for the application of the business incentive policy. Those are considerations that are all part of the additional costs to any particular project.

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The Chair John Ningark

Thank you. Fort Smith, total region. Mr. Dent; then I have Mr. Gargan. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. The Minister just mentioned the premium for the business incentive policy. I was just wondering if the department could tell us just what the premium was for the application of the business incentive policy.

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The Chair John Ningark

Qujannamiik. Mr. Minister.

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Richard Nerysoo Mackenzie Delta

Thank you, Mr. Chairman. We're just trying to make a quick calculation here. Mr. Chairman, I would like, maybe, to respond this way. I think with respect to the project, we are above the premium, you might say, being paid already, to be quite honest with you. But that's the nature

of the way we're conducting the project. That was a decision made about how we would approach this particular project.

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The Chair John Ningark

Thank you. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. I'm just trying to understand this fully. I didn't quite catch what the Minister meant when he said they were already above the premium for the BIP right now. Is the Minister saying that this project is expected to come in higher than this $8.4 million projected budget we are seeing in our books right now? Again, Mr. Chairman, I didn't quite understand the Minister's explanation. Perhaps he could try to make it simpler for me.

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The Chair John Ningark

Mr. Minister.

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Richard Nerysoo Mackenzie Delta

I'm not trying to make it confusing. But there are certain factors that have to be considered. I appreciate the comments made about the inflation issue. Since we even proposed the project, lumber prices have tripled. There are other prices of products that have gone up. That's one of the issues. The other thing is, in some instances, the concept of negotiating directly does cost us a few extra dollars. The application of the BIP costs us dollars.

But, generally speaking, we have been trying to keep within the dollars that have been voted. I'm not going to suggest to the honourable Member that it may be possible. There may be other factors that come in that force us to go beyond it. It is a matter of trying to make adjustments in the capital dollars that you voted for us.

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The Chair John Ningark

Fort Smith, total region. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. I can appreciate what the Minister is saying. I know lumber prices have gone up significantly. But, I also think that, in general, contract prices in the construction industry have gone down during the last few years due to our economy. I would have expected that this would have equalized the inflation rate to almost nothing. In other words, the prices of some groceries have gone up but the prices of others have gone down. Prices across Canada have tended to equal out so there is less than one or two per cent increase in inflation. I believe the construction prices across Canada have done pretty much the same.

I guess I remain unconvinced that there has been a significant increase in the cost of doing construction work in the past few years in the north. Leaving that aside, I would just like to ask, has the department done an analysis of what the premium for BIP is -- which the Minister has mentioned is perhaps one of the reasons for the increase -- and what the negotiated nature of the contracts here has been?

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The Chair John Ningark

Minister of Education, Culture and Employment, Mr. Nerysoo.

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Richard Nerysoo Mackenzie Delta

Thank you, Mr. Chairman. I apologize to the honourable Member, but the responsibility for delivering the project belongs to the Department of Public Works and Services. The difficulty for me in answering is that we have different interpretations of how the projects are being applied. But, I do want to say that there were other considerations. The unfortunate thing is, we haven't seen all the kinds of reductions in the cost of doing business that the honourable Member has pointed out have occurred across Canada. That has not necessarily been the case for northern business.

That's the unfortunate thing. One component of the BIP still forces us to incur costs that are higher than what other companies would bid. We are not seeing the advantages of the competition that exists across the country. We haven't seen the downgrading of prices. The other thing is, the incentive program has gone up an additional 5 per cent since this project was put into the capital budget, in addition to those that were already proposed. Those are the factors that should be considered.

The actual delivery agent is the Department of Public Works and Services for this project.

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The Chair John Ningark

Thank you. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. I understand that the Minister's department is now responsible for the delivery of the program. I want to make it clear that I wasn't trying to say anything nasty about the BIP, but I think it is important that we understand what the premiums are that we are paying sometimes.

I don't think there is anything wrong with getting them on the table for public awareness. That was the sort of information I was looking for. I thought the Minister's department might have an assessment of this. Knowing that dollars are budgeted within their department, it would seem to follow that, if prices go up, whether because of inflation, the BIP, or negotiated contracts or any other factor, the size of the project may have to be decreased. That was really what I was going to ask. Has the scope of this project been decreased since it was originally proposed?

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The Chair John Ningark

Thank you. Mr. Minister.

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Richard Nerysoo Mackenzie Delta

Thank you. Mr. Chairman, I thank the Member for the comments he made. Yes, the project has been decreased by 17 per cent from the original proposal.

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The Chair John Ningark

Qujannamiik. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Thank you, Mr. Chairman. Would it be possible to get a bit more information on that? For instance, does the 17 per cent mean that the size of the building has gone down by 17 per cent, or have we, perhaps, selected something that was to be included in the building and decided not to include it? I know that one of the things that was going to be in this facility was the Social Services program building, which were originally ATCO trailer units. I know it was proposed that we replace them. Are we still going to be able to replace them? Did we reduce everything, or did we pick one area and decide not to include it in this building?

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The Chair John Ningark

Qujannamiik. Minister Nerysoo.

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Richard Nerysoo Mackenzie Delta

I'll ask Mr. Kaulbach to be more specific about what it is that we didn't include in the project.

I do want to say that we cut out program needs by 17 per cent from the original concept that was proposed.

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The Chair John Ningark

Mr. Minister, are you asking Mr. Kaulbach to answer? Mr. Kaulbach.

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Kaulbach

Thank you, Mr. Chairman. The areas of the program cuts that were looked at were the areas of the existing building where we had anticipated to move over. Social Services, I believe, was one of the areas that we cut and rapography was another area that was looked at. The general intent is to streamline the original program to within our available funds. Thank you.

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The Chair John Ningark

Qujannamiik. Fort Smith, total region, $3.863 million. Mr. Dent.

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Charles Dent

Charles Dent Yellowknife Frame Lake

Just a question about Mr. Kaulbach's response. Can I assume then, that the ATCO trailer units, which are now being used for Social Services programming, will be maintained and used for that purpose?

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The Chair John Ningark

I believe the question is directed to the Minister, through Mr. Kaulbach.

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Kaulbach

Thank you, Mr. Chairman. A few trailers will be left in the campus facility for continued use.

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The Chair John Ningark

Fort Smith, total region. Mr. Gargan.

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Samuel Gargan Deh Cho

Thank you, Mr. Chairman. Mr. Chairman, under the community learning centre in Fort Providence, I understand that the actual building would be constructed in 1997-98. I've talked to the Minister and I've also invited him to come to my community to look at the building itself but I've also been in Hay River and seen the adult education centre there. Last year, my daughter was going to school there and one thing I've noticed is that one whole section of that education centre is empty. It's not being used. It's under-utilized. The only point I'm trying to make is that in Fort Providence itself, it's over-utilized, it's overcrowded. For that reason, Mr. Chairman, I would like to make a motion.

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The Chair John Ningark

Thank you, Mr. Gargan. Proceed, Mr. Gargan, with the motion.