This is page numbers 1 - 21 of the Hansard for the 13th Assembly, 4th 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 community.

Topics

Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

November 26th, 1996

Page 12

Levi Barnabas High Arctic

Thank you, Mr. Speaker. Earlier today I explained how the people of Grise Fiord, the northern-most community of Canada have received real support and assistance from this government, in solving the problem with the failed sea-lift. I first raised this emergency issue with the government in the House on October 4, today is November 27, and it is my understanding that the government has still not committed any financial assistance to offset the increased costs of all the goods that have been flown into Grise Fiord.

Mr. Speaker, my question is for the Premier, can he please inform the House why this government has still not offered any concrete assistance to the people of Grise Fiord almost 8 weeks after this issue was raised in this House? Thank you, Mr. Speaker.

Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

Page 12

The Speaker Samuel Gargan

Mr. Premier.

Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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Don Morin Tu Nedhe

Thank you, Mr. Speaker. I would like to start off by supplying some background to this issue to the members of the Legislative Assembly. The government, the Canadian Coastguard and Sealift, went into Grise Fiord on August 30, 1996 and delivered all 88.15 tons of freight. Organizations served, include GNWT, Grise Fiord Inuit Cooperation, building materials, Hamlet Housing Association, NWT Power Corporation, RCMP and the school. There were also a number of private individuals who received freight on the Canadian Coastguard. The Grise Fiord Inuit Coop, the Housing Association, and the Hamlet decided not to ship all their goods through the government sealift this summer. Instead they chose to arrange the shipment through a private shipper who was unable to reach the community due to ice conditions.

Myself, as well as the Minister of Public Works and Services, committed that GNWT staff would be made available to provide administrative support, if affected organizations required assistance in making alternative arrangements for delivery. The GNWT would consider on a case by case basis, funding support, where there is evidence that residents would suffer unduly, the GNWT will not provide support to shipment of goods that are not considered essential for the community. Funding support will be considered only after alternative delivery of goods have been arranged and contract insurance claims have been investigated.

Mr. Speaker, the GNWT is prepared to consider, on a case by case basis, submissions for assistance where there was financial hardship incurred in the delivery of goods, essential to the community. This part is very important, all submissions for assistance should include an itemized cargo list, cost of alternate delivery, the results of efforts to recover money through shippers, or insurance policies and evidence of hardship. To date, Mr. Speaker, we have received one submission for financial assistance from Grise Fiord. The submission that was directed to MACA by the senior administrative officer in Grise Fiord and concerns assistance with air freight costs and that is being reviewed as we speak. Thank you.

Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

Page 12

The Speaker Samuel Gargan

Oral questions, supplementary. Mr. Barnabas.

Supplementary To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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Levi Barnabas High Arctic

(Translation) Thank you, Mr. Speaker. Now I wonder if this level of assistance would be provided if other circumstances had arisen. Thank you, Mr. Speaker.

Supplementary To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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The Speaker Samuel Gargan

Mr. Morin.

Further Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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Don Morin Tu Nedhe

Thank you, Mr. Speaker. I just have the information that I have with me. If they would have used the

government services then this would not have been an issue because the coast guard did get into Grise Fiord to re-supply that community. That is the only information I have. Thank you.

Further Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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The Speaker Samuel Gargan

Oral questions, supplementary, Mr. Barnabas.

Supplementary To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

Page 13

Levi Barnabas High Arctic

Thank you, Mr. Speaker. I feel that this government has determined to work more like a business than a government. Mr. Speaker, business exists to make a profit, as many of you are aware. Government exists to serve their people, as I am sure you all agree. I am sure that my constituents want the government to behave like a government that takes quick, efficient action, like any good business to assist its citizens when they are faced with an emergency.

Most of us come from small communities and have personal knowledge of emergencies and accidents. Anyone helps quickly and without thought of getting the money up front. Can the Premier please explain what concrete financial assistance this government is prepared to offered the people of Grise Fiord to offset the increases in prices caused by this emergency? I know that the insurance is already covered, but the offset is over $80,000. Thank you, Mr. Speaker.

Supplementary To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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The Speaker Samuel Gargan

Mr. Morin.

Further Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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Don Morin Tu Nedhe

Thank you, Mr. Speaker. The Government of the Northwest Territories is prepared to consider on a case-by-case basis submissions for assistance wherever there was financial hardship incurred in the delivery of goods essential to this community. We are fully prepared to do that, but as I said earlier, Mr. Speaker, as every member of this Assembly knows, we are responsible to the public and to the public purse. We need certain things to justify paying out dollars or the Auditor General will let us know that we did not do business properly.

What we are asking the organizations in the Grise Fiord community to do, and the residents, is to itemize their cargo list, cost out alternate delivery, and make sure that the insurance policies and money issued to their shippers is taken care of, give us some evidence of hardship which should be no problem and submit that to the government and the government will assist whatever way they can. So, how much more clear can we make it, Mr. Speaker, but it takes two to solve this problem, the community and the government. Thank you.

Further Return To Question 5-13(4): Grise Fiord Sealift Difficulties
Question 5-13(4): Grise Fiord Sealift Difficulties
Item 6: Oral Questions

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The Speaker Samuel Gargan

Oral questions. Mr. Ootes.

Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

Page 13

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. Earlier today I spoke about the increase in tax royalties for mining. I stated that this does not benefit the Northwest Territories, in my opinion, certainly not until we control northern resources. I feel that the proposed negatives certainly outweigh the positives. The three year royalty-free period is eliminated. The royalty rate has increased from 12 percent to 14 percent.

This tax increase adds to the cost of mining in the north which is already tremendously high, and there is a complicated approval process and impact benefits to consider. I feel that the royalties need to be kept low to stimulate employment returns to the communities through impact benefit agreements.

There is an interdepartmental committee consisting of the Department of Indian Affairs, Finance Canada, Natural Resources Canada, and National Revenue, as well as, representatives from the Government of the Northwest Territories that has proposed these royalty changes.

I wonder if the Minister could tell me if the Government of the Northwest Territories supports these increases in the royalty rates and the elimination of the three year royalty-free period. Thank you, Mr. Speaker.

Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

The Minister of Resources, Wildlife and Economic Development, Mr. Kakfwi.

Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, the Department of Resources, Wildlife and Economic Development has taken responsibility to initiate some work to coordinate a more detailed response by this government to the proposed royalty rates that has come from the Department of Indian Affairs. There has been a letter sent by the Premier to the federal government that has initially raised some concerns. We have it, without indicating either support or opposition to it at this time.

As the members may know there have been some discussion papers and proposals made over the last year by the federal government to look at changes to the royalty rates in the north since they have not changed for decades. This is the first attempt that the federal government has made to making some proposed changes to the royalty rates. At this time we are coordinating with other government departments, the preparation of a more detailed response for consideration of Cabinet. Thank you.

Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

Oral Questions, Supplementary. Mr. Ootes.

Supplementary To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. I wonder if I could also be informed as to the time frame for some resolution to this proposal.

Supplementary To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

Mr. Kakfwi.

Further Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, I would hope that we should try to conclude our own review, and I find myself, as a minister, in a position to offer some more detailed comments to the federal minister in the next week, or so. Thank you.

Further Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

Oral questions, Supplementary. Mr. Ootes.

Supplementary To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Jake Ootes

Jake Ootes Yellowknife Centre

Yes, Mr. Speaker, thank you. I wonder if the Minister could inform us whether this government is in agreement, or is not in agreement, with the increase in the tax royalty rate from 12% to 14%.

Supplementary To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

Mr. Kakfwi.

Further Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, there are, I think, a number of elements in the proposal that warrant some careful review. Commenting on the specific element without consideration of some of the other elements contained in the proposed changes would not be fair to the overall proposal itself. For instance, there are indications of, perhaps, an elimination of the tax holiday that has been in place for some time. The proposal speaks to changing the rates to take advantage of the larger, more profitable, mining operations that are in existence now, or are coming into existence now, and making some attempt to marginalize any changes in the royalty rates to existing operations.

Having said that those are just some of the general comments that we have already passed on to the federal government and are unable, at this point, to comment further until our officials have provided us with some basis for further discussion and formulation for our position. Thank you.

Further Return To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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The Speaker Samuel Gargan

Thank you, Oral questions, final supplementary. Mr. Ootes.

Supplementary To Question 6-13(4): Proposed Changes To The Nwt Mineral Royalties Regime
Question 6-13(4): Proposed Changes To The NWT Mineral Royalties Regime
Item 6: Oral Questions

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Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. I wonder if the Minister could update us with respect to this royalty regime. I could see the benefits of it to a small degree, if this territory was receiving the royalties, but since they are not I do not see the benefit of raising the royalties; however, can the minister apprise us as to the status of the Northern Accord negotiations, whether this is evolving for us? Thank you.