Mr. Speaker, I would ask that the Minister of Energy, Mines and Petroleum Resources answer the question. He is the lead Minister on the northern accord, Mr. Speaker. Thank you.
Debates of March 9th, 1995
Topics
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
John Pollard Hay River
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Minister of Energy, Mines and Petroleum Resources, Mr. Todd.
Return To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
John Todd Keewatin Central
I stand to be corrected, but I believe at the present time that the royalty regime is somewhere around 12 per cent. The Member is correct, under the current regime, the benefits to the Northwest Territories and to all people are minimal. That is why we are moving forward in an orderly and, hopefully, cooperative way to reach a satisfactory arrangement with the aboriginal groups and then move forward to the federal government and try to have this responsibility transferred. That way, we can look at a new royalty tax regime that would be far more benevolent to the Northwest Territories and the federal government than the current one is. Thank you.
Return To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Thank you. Supplementary, Mr. Antoine.
Supplementary To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
Jim Antoine Nahendeh
Thank you, Mr. Speaker. I would like to thank the Minister for that reply. However, I was asking more of a technical question and he may not have it at his fingertips. What is the 12 per cent in terms of dollars? Thank you.
Supplementary To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Mr. Todd.
Supplementary To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
John Todd Keewatin Central
Thank you, Mr. Speaker. That is a good question. I am afraid I will have to take that question as notice. I don't want to give an inaccurate response, but I believe it is somewhere in the $8 million to $9 million range. But I would prefer to take that question as notice, and then give the Member a more accurate reflection of the current revenue that is raised under the present mining regime. Thank you.
Supplementary To Question 290-12(7): Federal Royalties To Nwt From Mining Activities
Question 290-12(7): Federal Royalties To NWT From Mining Activities
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Thank you. Item 6, oral questions. Mr. Ningark.
Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Item 6: Oral Questions
Page 561
John Ningark Natilikmiot
Thank you, Mr. Speaker. As I mentioned earlier, I was talking with the mayor of the hamlet of Gjoa Haven. During that conversation, the mayor also indicated to me that they are having problems with the airport lighting system. It has occurred about four times during a 12-month period. This can be a very costly endeavour for the operator to look after. It could also jeopardize the travelling public, especially those who travel by air. There is also the question of infraction upon the federal aviation administration regulations of the country. Would the Minister communicate with Gjoa Haven and try to deal with the matter as soon as possible? Thank you.
Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Thank you. Minister of Transportation, Mr. Todd.
Return To Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Item 6: Oral Questions
Page 561
John Todd Keewatin Central
Thank you, Mr. Speaker. Post-haste, we will deal with this important issue that the Member has raised. I will deal with it as soon as the House rises. Thank you.
---Applause
Return To Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Question 291-12(7): Problems With Airport Lighting System In Gjoa Haven
Item 6: Oral Questions
Page 561
The Speaker Samuel Gargan
Thank you. Item 6, oral questions. Mr. Patterson.
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
March 8th, 1995
Page 561
Dennis Patterson Iqaluit
Thank you, Mr. Speaker. I, too, have a question about mineral royalties in the Northwest Territories. I would like to direct it to the Minister of Energy, Mines and Petroleum Resources. Mr. Speaker, we got a very interesting briefing about diamond mines and their potential today at noon. I would like to ask the Minister, since a diamond mine may go ahead in the Northwest Territories-- and I think there's a prospect of one -- if we had a northern energy accord, could the Minister give us an indication of what revenues, on an
annual basis, might flow to the Northwest Territories from such a mine? Thank you.
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Minister of Energy, Mines and Petroleum Resources, Mr. Todd.
Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
John Todd Keewatin Central
Thank you, Mr. Speaker. Let me say that, under the current formula, it would be marginal. It really depends on how effective we are in getting the accord transferred back to the territories. Once it is transferred back, we would make appropriate adjustments after discussions with the industry and the House about what the tax regime would be. I don't want to be in a position to say it will be this amount or that amount. I will say this, and I have said it very clearly, once we get an arrangement with the federal government, we need to take a hard look at the tax regime. This tax regime, according to the notes here, is something like 45 years old. We need to make adjustments.
Will it bring significant resources to the Northwest Territories? I fundamentally believe it will. There is somewhere around a $650 million capital investment, and I'm told that the revenues on one mine alone will be somewhere in the region of $600 million and that the profitability is extremely high, in comparison with other mining industries. I'm not trying to evade the question. I'm merely saying to the honourable Member that the tax regime is antiquated, it's old, inappropriate for the 1990's and, once we get the legislative responsibility, we would then bring forward a competitive but more fair regime that would bring the kind of revenues to the Northwest Territories that we need to redistribute. After all, let's remind everybody -- including the industry, if they are listening -- they are our diamonds. Thank you.
Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Supplementary, Mr. Patterson.
Supplementary To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
Dennis Patterson Iqaluit
Mr. Speaker, the Minister referred to the figure of $600 million in terms of revenues. Was that $600 million a year? Thank you.
Supplementary To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Mr. Todd.
Further Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
John Todd Keewatin Central
Give or take a few million.
---Laughter
I'm told there is the ability to generate somewhere in the range of $600 million a year in revenues based upon one particular mining operation. I'm told the industry costs somewhere between 50 to 60 per cent. This industry, from what we've learned in other parts of the world, despite what some people may say, is a highly profitable industry at this time. So, yes, $600 million plus on an annual basis for 20 years, based on one mine. Thank you.
Further Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Thank you. Supplementary, Mr. Patterson.
Supplementary To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
Dennis Patterson Iqaluit
Mr. Speaker, that figure of $600 million in revenues per year from a new diamond mine, can I ask the Minister how does that kind of revenue compare with the value of production of existing mines in the Northwest Territories today? Thank you.
Supplementary To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Mr. Todd.
Further Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
John Todd Keewatin Central
Total accumulated revenues from all the mines in the Northwest Territories right now, on an annual basis, is $575 million. One diamond mine is $600 million. Thank you.
Further Return To Question 292-12(7): Potential Revenues From Diamond Mine
Question 292-12(7): Potential Revenues From Diamond Mine
Item 6: Oral Questions
Page 562
The Speaker Samuel Gargan
Thank you. Item 6, oral questions. Mrs. Marie-Jewell.
Question 293-12(7): Acquiring Responsibility For Processing Security Clearances
Item 6: Oral Questions
Page 562
Jeannie Marie-Jewell Thebacha
Thank you, Mr. Speaker. I have a question for the Minister of Justice. Mr. Speaker, currently the process of getting security clearance for individuals apparently requires documents to go to Ottawa. Some of my constituents are attempting to apply for positions which require security clearance, and it takes a long time for the process to be completed in Ottawa. I wonder if it's possible for the Minister of Justice to acquire the responsibility for doing security clearances for northern people in the Northwest Territories, in Yellowknife or RCMP detachments. Thank you.