This is page numbers 369 - 399 of the Hansard for the 12th Assembly, 7th 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 chairman.

Members Present

Mr. Allooloo, Mr. Antoine, Hon. Silas Arngna'naaq, Mr. Ballantyne, Hon. Nellie Cournoyea, Mr. Dent, Hon. Samuel Gargan, Hon. Stephen Kakfwi, Mr. Koe, Mr. Lewis, Mrs. Marie-Jewell, Ms. Mike, Hon. Don Morin, Hon. Richard Nerysoo, Hon. Kelvin Ng, Mr. Ningark, Mr. Patterson, Hon. John Pollard, Mr. Pudlat, Mr. Pudluk, Hon. John Todd, Mr. Whitford, Mr. Zoe

---Prayer

Item 1: Prayer
Item 1: Prayer

Page 369

The Speaker Samuel Gargan

Good afternoon. Item 2, Ministers' statements. Item 3, Members' statements. Mr. Pudlat.

New Rent Scale
Item 3: Members' Statements

February 28th, 1995

Page 369

Kenoayoak Pudlat Baffin South

(Translation) Thank you, Mr. Speaker. My statement will be fairly lengthy. Mr. Speaker, I wish to talk about the increase in rents. My constituents have an ongoing concern regarding the new rent scale. It has been discussed by many and people are interested in finding out exactly what the reasons are for implementing the increases. Many people are interested in finding out this information prior to April 1st.

Housing is a necessity in our communities. Perhaps the new rent scale might not be as great an issue to those who are outside of the communities, but people who live in the north and who are experiencing these increases need to express their concerns. Mr. Speaker, people have to be employed in these households but the fact is, very few people are actually employed. This will cause great stress for people who are the only income providers. The people who are employed will have to carry a bigger burden.

Mr. Speaker, I seek unanimous consent to finish my statement.

New Rent Scale
Item 3: Members' Statements

Page 369

The Speaker Samuel Gargan

The honourable Member for Baffin South is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Pudlat.

New Rent Scale
Item 3: Members' Statements

Page 369

Kenoayoak Pudlat Baffin South

(Translation) Thank you, Mr. Speaker and honourable Members. Because of the things that are happening, people both unemployed and employed, are bound to face more hardship, especially those who are working. Now, Mr. Speaker, we have a growing number of students who are leaving their communities to attend school. We have people entering the workforce. We understand there will be a 30 per cent increase and this is phase I. While this is being discussed, we're also aware across Canada that people are interested in home ownership and it is very difficult to buy your own property.

The rent increases are set to begin April 1st, with a rent increase to 30 per cent. In the following year, this will be increased to 60 per cent and in the third year, it will change to 90 per cent. Mr. Speaker, my last comment is that it will eventually become 100 per cent. With these things happening, people are thinking about the deadline of April 1st. Is there no other solution you can come up with before implementing this on that date? This is a concern for our constituents and we also heard on the news that there was some discussion on TVNC about it. People talked about how many people will have to start looking into buying or moving into other units as long as they have a steady income.

Elders will be paying $2.00 a month for their rent. While that might be the case, people in the workforce still have to deal with the paperwork and deal with a 30 per cent increase on top of everyday utilities such as telephones and oil. This will take a big chip out of people's incomes. On behalf of my constituents, I want to express the need to look for other solutions before you implement the rental increase as of April 1st.

Mr. Speaker, we are not simply against this idea. It is not that we just want to stop the implementation. We need more time to be able to look at other possible options. For those of us who have a good income and who can obtain our own housing, it is not too much of a problem but there are many people who are actually considering quitting their employment to remain in their own housing, to avoid the higher costs. I speak on behalf of the people who rent these units from the housing association. Be reminded that we do not just plan to put an end to this, we want to have some time to look at other options. Mr. Speaker, please give us more time for the people who are renting to see if we cannot look at other options. Thank you, Mr. Speaker.

New Rent Scale
Item 3: Members' Statements

Page 369

The Speaker Samuel Gargan

Thank you, Mr. Pudlat. Item 3, Members' statements. Mr. Lewis.

Excessive Regulation Of The Mining Industry
Item 3: Members' Statements

Page 369

Brian Lewis Yellowknife Centre

Thank you, Mr. Speaker. Today, March 1st, is the national day for the country that I came from many, many years ago, so I always celebrate it. Today I would like to read into the record, Mr. Speaker, a letter from a fellow Welshman who has been involved with mineral exploration and mining in the Northwest Territories for close to 30 years. He is the president of Aber Resources, his name is Grenville Thomas; this is what he says in his recent letter to Mr. Lovell, the mayor of Yellowknife: "Thank you very much for your call this morning in regard to Aber's closure of its Yellowknife office. I can assure you that it has nothing to do with any concern we have with the city of Yellowknife or the services supplied.

"I am enclosing a letter I wrote to Nellie Cournoyea a year ago expressing my concerns with over-regulation. This is a big problem in the Northwest Territories and in Canada as a whole. However, in addition to this you have devolution, division, land claims, native self-government, environmentalist and all manner of self-interest groups to cope with, in an Alice in Wonderland scenario. Great for Alice, but not for the mining companies striving to discover and develop northern deposits.

"The amount of hot air generated and the paper required to record it all is staggering for a population of 60,000 people. To paraphrase Winston Churchill, never has so much paper been generated by so many for so few. For example, Aber is currently prevented from working on Victoria Island land because of a dispute over jurisdiction between the federal government and the Inuvialuit. Bear in mind that Inuvialuit settlement was made in 1987. The north desperately needs someone to pull this desperate group together by emphasizing their common interest as northerners, not their differences."

The letter is signed by Mr. Thomas and at the bottom he has a PS that says "I'm going to Argentina in late February; just to look around you understand." Because things are obviously not going very well for his company even though they are still active in the Northwest Territories.

People are attracted to overseas, Mr. Speaker, because of greater security of tenure, reduced taxes and royalties, tax periods, greater possibility of owning things and also access to high-level mineral resources. Thank you very much, Mr. Speaker, my time is now up.

Excessive Regulation Of The Mining Industry
Item 3: Members' Statements

Page 370

The Speaker Samuel Gargan

Thank you. Item 3, Members' statements. Mr. Whitford.

Funding Cuts To Cbc
Item 3: Members' Statements

Page 370

Tony Whitford

Tony Whitford Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, the resignation of Tony Manera, the president of CBC, is a very upsetting sign. In my opinion, red flags should go up and sound an alarm about the future of Canada's national broadcasting system. Mr. Speaker, most northerners I know grew up with the CBC, when CBC was the only medium in the Northwest Territories, before the era of private radio stations. I recall as a boy putting together a crystal set and tuning into the CBC either from Winnipeg or from Sackville, New Brunswick; you could always get the best reception after dark. At that time, the CBC provided the only link to the south during the long winter months. Along with the news, they broadcast special features, sports stories, drama and a broad spectrum of music; especially Canadian musicians, Don Messer being one of them.

Northerners will recall that up until the early 1960s, the CBC provided the northern messenger service, a program dedicated to providing messages to people in the most remote and isolated communities of the high Arctic and on to the trap lines of the northern provinces and here to the Northwest Territories.

In recent times we can still enjoy, in nearly every community, a television receiver and the CBC on either am or fm frequencies. We produce our own radio programs in Iqaluit, Inuvik and Yellowknife as well as television in Iqaluit and Yellowknife. It has kept people in Tuktoyaktuk informed about what is happening in Iqaluit and help southerners understand our northern points of view.

Many aboriginal people have received quality training from the CBC and are now producers, technicians and broadcasters. Any cuts to the CBC funding will adversely effect them and a large part of our heritage as well. If these cuts take place and we lose any more of the current broadcasting or if we lose it all, I believe our lives will be much poorer for it.

The federal budget cuts to the CBC reflect a false cost-saving measure. It is true we will save a few bucks in the short term, but in the long run we will lose more valuable things. We will lose a large part of our heritage and of our culture.

At one time the railroad linked the country from coast to coast, but our national broadcaster has always linked Canada from coast to coast to coast. Thank you.

Funding Cuts To Cbc
Item 3: Members' Statements

Page 370

The Speaker Samuel Gargan

Thank you, Mr. Whitford. Item 3, Members' statements. Mr. Zoe.

Henry Zoe

Henry Zoe North Slave

Thank you, Mr. Speaker. Mr. Speaker, I want to add some clarification to a statement that I made in this House on Monday, February 20th. The statement I made concerned an ultimate removal package in the collective agreement our government has with the public service. Mr. Speaker, as more and more of the aboriginal population becomes better educated and skilled, there will be more opportunities to work with the territorial public service. This government should be doing everything in its power to promote this. This includes, Mr. Speaker, providing certain financial incentives to northerners such as the ultimate removal package.

Mr. Speaker, I don't think I was as clear as I could have been on this point in my February 20th statement. I support the government's proposed change to this entitlement, making it available after only 10 years of service. However, Mr. Speaker, this change should only be targeted at those public service employees who were hired from the south and are returning there.

Mr. Speaker, let me be very clear on this point, this should not effect northerners hired in the north and remain in the north after they retire or leave the public service. This entitlement should remain as is for northerners after serving four years of service. Mr. Speaker, the ultimate removal provision should only change as proposed for southern hires. Mahsi.

---Applause

The Speaker Samuel Gargan

Thank you, Mr. Zoe. Item 3, Members' statement. Mr. Patterson.

Increase To Gasoline Tax
Item 3: Members' Statements

Page 370

Dennis Patterson Iqaluit

Mr. Speaker, the gasoline tax was increased by the recent federal government, at least the federal portion on the gasoline tax, by 1.5 cents a litre. With the addition of the GST, this should have raised the price of gas by 1.61 cents a litre.

Mr. Speaker, I object to the federal tax increase apparently being used as an excuse to extract an additional 1.19 cents from my constituents who are solely dependent on this retailer. I object to being told that the new price of 77 cents a litre is based on the increased federal tax plus GST when it is quite apparently a federal tax increase, plus GST, plus a price increase. The product is delivered and purchased on an annual basis. The dealer has a monopoly and a lot of people in my community depend on that gasoline, including people who live on the land.

I'm going to explore what remedies might be available to deal with this situation and I'm glad for the chance to report to this House on this problem. Thank you, Mr. Speaker.

---Applause

Increase To Gasoline Tax
Item 3: Members' Statements

Page 371

The Speaker Samuel Gargan

Thank you, Mr. Patterson. Item 3, Members' statements. Mr. Koe.

Impact Of The Federal Budget On Nwt
Item 3: Members' Statements

Page 371

Fred Koe Inuvik

Mahsi, Mr. Speaker. Mr. Speaker, I have received and reviewed the information about the recent federal budget. I'm especially concerned about the financial impact on the average citizen in the Northwest Territories. From the information and analysis that I have seen, the major impact will be on the middle-class citizen, those who own vehicles, travel by air and live around Great Slave Lake.

The most notable impact -- and my colleague from Iqaluit mentioned it already -- will be on the pocketbooks of most residents who drive or purchase gasoline and that's because of the increase in gas prices. The federal excise tax on gasoline was increased by 1.5 cents per litre. Add to this the Government of the Northwest Territories gasoline tax of 17 per cent for another 0.255 cents a litre and, on top of that, GST of seven per cent for 0.123 cents a litre, and we have an increase of approximately 1.9 cents per litre of gasoline.

The price of aviation gasoline will also increase similarly. This means that probably all transportation company rates -- the trucking industry, airline industry, and taxi industry -- will increase to cover these fuel increases. The customer pays. The air transportation tax will also be increased by 10 per cent as of March 31, 1995. The maximum tax rate now imposed on all air travel will increase from $50 to $55 per ticket. This increase will impact northerners much more than other Canadians because of our heavy reliance on air travel. In many of our communities, people have no choice but to travel by air. This is another direct hit on the customer's pocketbook.

The other tax, called the public utilities income tax transfer, will be eliminated effective April 1, 1995.

Mr. Speaker, I seek unanimous consent to continue my statement.

Impact Of The Federal Budget On Nwt
Item 3: Members' Statements

Page 371

The Speaker Samuel Gargan

The Member for Inuvik is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Koe.

Impact Of The Federal Budget On Nwt
Item 3: Members' Statements

Page 371

Fred Koe Inuvik

Mahsi. This will impact over 8,000 customers living mainly around the Great Slave Lake area. The tax will mean that each customer will have to pay an average of about $2 per month on their electricity bill, or about $24 per year. This increase is on top of the charges already imposed to cover the low-water surcharge and the upcoming general rate increase proposed by the Northwest Territories Power Corporation.

Mr. Speaker, my concern is that, at first glance, these don't seem like large increases. But add them up, and the accumulated impact is large. The majority of these revenues from the tax increases will go directly to the federal government to help pay off the deficit. So, even though it may seem like the federal budget was relatively harmless to the average northerner, the federal government continually picks away at our incomes by increasing taxes on goods and services and on industry which we, in the Northwest Territories, consider essential for our survival: gasoline, air travel and electricity. Mahsi.

---Applause

Impact Of The Federal Budget On Nwt
Item 3: Members' Statements

Page 371

The Speaker Samuel Gargan

Thank you. Item 3, Members' statements. Mr. Antoine.

Consultation Re Implications Of Federal Budget
Item 3: Members' Statements

Page 371

Jim Antoine Nahendeh

Mahsi, Mr. Speaker. Like many Canadians, I listened carefully on Monday when the Honourable Paul Martin delivered his Budget Address in the House of Commons. For a long time, many people have been calling on the federal government to reduce the amount of money it is spending. Our national deficit has grown to the point where there is a risk that international financial institutions may stop investing in this country. This has weakened the federal government and Canada's financial status in the world.

With Mr. Martin's budget, Ottawa has cut spending drastically and will be privatizing many services like the railroads and Petro Canada, in an attempt to reduce the federal deficit. Some of these actions may be quite positive, but the federal budget has also raised many questions about how these spending cuts will affect the people of the Northwest Territories. It will be important for the Government of the Northwest Territories to make decisions about how to respond and it will be important to ensure that all northerners have input in those decisions.

Mr. Speaker, the budget announcement made in Ottawa on Monday carried significant implications for the Northwest Territories. The earliest projections suggest that we may lose about $58 million from next year's transfer payments and some federal positions will be lost, with the possible downgrading in government services and implications for community economies. The cost of transportation, already the highest in Canada, will be increased even more by new taxes on certain petroleum products, airport fees and possibly, eventual user fees for airports. Reductions in Canada assistance program funding and the so-called social transfer will undoubtedly impact on the most needy members of our society.

Mr. Speaker, these changes are here. I agree with our Minister of Finance, the Honourable John Pollard, that there is little to be gained in moaning about the tougher, tighter times that face our governments. However, it will be important that the Government of the Northwest Territories carefully plan out the specific measures we need to take in the face of this new budget. We must evaluate the impact of the federal downsizing and project reductions in the funding we receive from Ottawa. We will need to explore new and innovative approaches to delivering government programs and services and to identify areas where our own administrations can be made leaner and more productive.

Mr. Speaker, I seek unanimous consent to conclude my statement.

Consultation Re Implications Of Federal Budget
Item 3: Members' Statements

Page 372

The Speaker Samuel Gargan

The Member for Nahendeh is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Antoine.

Consultation Re Implications Of Federal Budget
Item 3: Members' Statements

Page 372

Jim Antoine Nahendeh

Mahsi, Mr. Speaker. Mr. Speaker, these decisions should not be made solely in government offices and boardrooms. I applaud the Minister's commitment to meeting with the Standing Committee on Finance for discussions on implications created by Mr. Martin's budget. I trust he will listen carefully to the views expressed not only by the committee but also by all honourable Members of this House. However, I will call on him to go even further and establish a consultation strategy that will allow community leaders, chiefs, mayors, aboriginal organizations, business people, chambers of commerce, social agencies and others in the community to become involved in our fiscal planning.

Mr. Speaker, it has been pointed out that the budgetary measures announced yesterday will reflect a fundamental change in the way federal and provincial governments operate in Canada. We have one year to prepare ourselves for this transformation in government relationships. In setting the Northwest Territories course for responding to this fundamental change, I believe it is essential to hear directly from the people who are affected and I will be urging our Minister of Finance to establish a broad and effective consultation process in this regard. Thank you, Mr. Speaker.

---Applause

Consultation Re Implications Of Federal Budget
Item 3: Members' Statements

Page 372

The Speaker Samuel Gargan

Thank you. Item 3, Members' statements. Item 4, returns to oral questions. Ms. Cournoyea.

Further Return To Question 174-12(7): Coverage Of Chiropractic Services Under Health Plan
Item 4: Returns To Oral Questions
Item 4: Returns To Oral Questions

Page 372

Nellie Cournoyea Nunakput

Mr. Speaker, I have a return to an oral question asked by Mrs. Marie-Jewell on February 27th regarding the coverage of chiropractic services under the health plan.

Mr. Speaker, chiropractic services are not considered a benefit under the non-insured health benefits program provided to registered Indian and Inuit clients.

However, Health Canada, the federal department which funds the program, does make exceptions on a case-by-case basis. The patient must be referred to a chiropractor by a physician. Health Canada reviews the chiropractor's treatment plan, the duration of treatment and the associated costs before they make a decision. Thank you.

Further Return To Question 174-12(7): Coverage Of Chiropractic Services Under Health Plan
Item 4: Returns To Oral Questions
Item 4: Returns To Oral Questions

Page 372

The Speaker Samuel Gargan

Thank you. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Mr. Whitford.