This is page numbers 297 - 329 of the Hansard for the 13th Assembly, 3rd 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 development.

Members Present

Hon. Jim Antoine, Hon. Goo Arlooktoo, Mr. Barnabas, Hon. Charles Dent, Mr. Enuaraq, Mr. Erasmus, Mr. Evaloarjuk, Mrs. Groenewegen, Mr. Henry, Hon. Stephen Kakfwi, Mr. Krutko, Mr. Miltenberger, Hon. Don Morin, Hon. Kelvin Ng, Mr. Ningark, Mr. O'Brien, Mr. Ootes, Mr. Picco, Mr. Rabesca, Mr. Roland, Mr. Steen, Hon. Manitok Thompson, Hon. John Todd

--- Prayer

Item 1: Prayer
Item 1: Prayer

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The Deputy Speaker John Ningark

Thank you. Item 2, Ministers' statements. Mr. Arlooktoo.

Goo Arlooktoo Baffin South

Mr. Speaker, I would like to make a short statement today to inform Members about the NWT Housing Corporation's new funding model for local housing organizations, LHOs. Over the past 22 years, the Housing Corporation funded the LHOs through a deficit funding arrangement where they paid for all overexpenditures and took back any savings generated at the community level. This mechanism has not rewarded or promoted good management in the communities.

In support of Cabinet's direction to live within our means, the Housing Corporation has developed and implemented a new funding model which achieves several objectives:

it promotes fiscal accountability and provides greater authority to our partners in the delivery of housing services to residents of the NWT. As well, the new funding formula provides a framework which equitably and fairly distributes our limited financial resources to the LHOs and provides incentives for LHOs to manage their resources as effectively and efficiently as possible. Under this new arrangement, the LHOs will be able to retain 50 per cent of any surpluses generated and these funds may be spent at the discretion of the LHOs for any community housing purposes. We expect that our residents will get more value for our housing dollars.

This new funding model is also designed to support the government's plan for community empowerment. Communities will be able to set their own housing priorities within minimum program standards. For those communities which are considering housing under the community empowerment initiative, the new funding model clearly identifies the resources available to each organization which administers public and staff housing at the community level.

Mr. Speaker, I believe the new funding model represents a major step forward ' in achieving the goals of this government. It gives LHOs more power to set priorities and will make them more accountable to their communities and residents. Thank you, Mr. Speaker.

The Deputy Speaker John Ningark

Thank you. Item 2, Ministers' statements. Mrs. Thompson.

Manitok Thompson Aivilik

Mr. Speaker, as Members of the Legislative Assembly know, the Department of Municipal and Community Affairs is the lead department for this government's community empowerment priority. This government is committed to ensuring that communities have the flexibility and authority that they need to manage their own affairs and the department is ready for this challenge.

The department is moving to respond to this government priority. A number of initiatives aimed at building community control are already in progress. One of these initiatives is to reform the community land development process.

Land reform has been given by many factors:

- foremost, the expressed desire of communities to strengthen their authority and responsibility;

- secondly, all Nunavut community governments will hold title to land within their boundaries by July 1996 and as outstanding claims are settled, the department will encourage ownership of land by community governments in the Western Arctic as well;

- finally, in the past, MACA has provided building lots for residents in non-tax-based communities in the NWT. The costs of developing land have not been recovered. This has resulted in a huge subsidy which everyone received regardless of their ability to pay. Mr. Speaker, as all Members know, this government faces the challenges of providing important programs and services with less money. We must utilize our resources in the most effective manner possible, to provide or assist community governments in providing these programs and services. A more reasonable level of recovery and land development costs is therefore necessary.

The department will be reviewing how land should be developed, financed and priced. This review will include all community governments and band councils and will focus on an opportunity to increase local control over land development. Where the GNWT continues to do land development, a fair and affordable method of cost recovery will be developed.

Mr. Speaker, as the first step of this process, the department has prepared a paper entitled: "Funding the Right Balance: Options for Changing Land Development Practices." This paper will be used to:

- inform community governments and organizations of the issues around land development;

- outline the options available to governments for new strategies for land development; and,

- help us to work together with communities to ensure that we find the right balance between the interests of governments and land users.

Mr. Speaker, the department is committed to providing the necessary training and funding to assist community governments in this area. The department has provided funding and training for community governments and residents. Examples include the community land administration certificate program; the community lands computer system; ongoing workshops with community governments; and, managing capital projects. The department recognizes that these training opportunities are very important to the success of this particular community empowerment initiative. They will continue to be a main component of assisting communities to take on these new authorities and responsibilities.

The department is also examining ways to increase community authority and responsibility through legislative changes. For land reform, this will involve enabling legislation for long-term borrowing for land development.

The department recognizes that meaningful and thorough consultation is very important to the success of this initiative. Over the next few months, we will be discussing with communities the pricing of building lots and options for new land development strategies. The strategies will reflect the evolving role of community governments in land development and pricing of building lots and options for new land development strategies.

The strategies will reflect the evolving role of community governments in land development and pricing of building lots and options for new land development strategies. The strategies will reflect the evolving role of community governments in land development and pricing. The department will be seeking feedback on what the GNWT needs to do to facilitate these changes. Once this input is received, I will be bringing my recommendations to Cabinet.

Mr. Speaker, although there are many challenges that lie ahead in reforming the community land development process, there are also many exciting opportunities. I am confident that, working with community governments and band councils, we can take advantage of these opportunities and better serve the people of the Northwest Territories. Thank you, Mr. Speaker.

---Applause

The Deputy Speaker John Ningark

Thank you. Item 2, Ministers' statements. Mr. Premier.

Don Morin Tu Nedhe

Mr. Speaker, on May 10 and 11, 1996, I attended the Nunavut Leaders' Summit in Arviat which was sponsored by the Nunavut Caucus. I would like to report on progress reached and on outstanding issues which need further discussion and action.

Substantial progress was made on appointment of an interim Commissioner. NTI, the federal government and the GNWT agreed on a number of key points regarding the appointment of this senior bureaucrat to assist in establishing the Nunavut government. We agreed that the appointment should be made by the fall of this year and that all three parties must be involved in instructing and advising the interim Commissioner. NTI, the federal government and the GNWT also agreed that they must all be involved in the recruitment process and must all agree on the candidate for the position. Officials have now been given direction to proceed with the recruitment of the interim Commissioner.

There was also agreement on the need for a comprehensive human resources and training strategy to ensure that the Nunavut government has a workforce that is representative of the population in Nunavut. It will be jointly managed by the three parties. The GNWT expressed its concerns with the amount of funding made available, especially since training is critical to the success of the Nunavut government.

While some progress was made on the issue of infrastructure, there remains a number of areas of uncertainty, particularly in relation to the adequacy of the identified funding. Just to illustrate the point: $150 million is roughly equivalent to six weeks of government spending in a single fiscal year. That amount, by any standard, is modest.

In fact, the most major area of concern raised by the majority of delegates was the overall adequacy of the funding and its effects on the formula financing arrangements post-1999. Federal officials again confirmed that a large portion of the incremental costs for division and the creation of Nunavut will be based on amounts identified in the formula financing arrangements for both territories. Needless to say, if that is the case, we need to fast-track negotiations on the structure and content of the post-1999 funding formulas for both Nunavut and the Western Territory. This government will be asking NTI to join us in calling upon the federal departments of Finance and DIAND to commence these negotiations no later than September 1996 and to conclude an agreement-in-principle no later than March 31, 1997. We can't leave uncertainty on this issue until 1998.

An important undertaking was reached between NTI and the Nunavut Caucus whereby they each agreed to work more closely together as partners. This can only benefit the people of Nunavut and the division process.

Mr. Speaker, while the discussions were often frank, I believe the Arviat meeting was a productive exchange which has brought the real issues into sharper focus.

Mr. Speaker, just to add, on a personal note, I would like to thank the people of Arviat; the mayor; and, the MLA, Mr. Kevin O'Brien, for their warm welcome and for their hospitality while we were there. Matna, thank you.

--- Applause

The Deputy Speaker John Ningark

Thank you. Item 2, Ministers' statements. Mr. Premier

Don Morin Tu Nedhe

Thank you, Mr. Speaker. I wish to advise Members that the Honourable Jim Antoine is travelling back from Fort Simpson and will be a little late for today's sitting. He should be here by about 2:30 p.m. Thank you.

The Deputy Speaker John Ningark

Thank you. Item 2, Ministers' statements. Item 3, Members' statements. Mr. O'Brien.

Nunavut Leaders' Summit, Arviat
Item 3: Members' Statements

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Kevin O'Brien Kivallivik

Thank you, Mr. Speaker. Mr. Speaker, my statement will also focus primarily on the Nunavut Leaders' Summit, hosted this past weekend by my home community of Arviat. You will note that a number of my comments will follow very closely in line with the Premier's statement.

The historical significance of this meeting cannot be overstated. Many respected leaders travelled to Arviat to participate in these important discussions. Some of these visitors include the following: the Honourable Ron Irwin, Minister of Indian and Northern Affairs; the Honourable Jack Anawak, MP for Nunatsiaq; the Honourable Don Morin, Premier of the Territories; Mr. Jose Kusugak, president of NTI; Paul Kaludjak, president of the Keewatin Inuit Association; Ms. Blandina Tulugarkjuk from the Baffin Regional Inuit Association; Mr. Charlie Evalik of the Kitikmeot Inuit Association and the commissioners of the Nunavut Implementation Commission. Regrettably, Mr. John Amagoalik was not able to attend due to illness.

Mr. Speaker, our dream of Nunavut is fast becoming reality. After many years of negotiations and three plebiscites, calling for almost unlimited patience on behalf of the people of Nunavut, we are only three years from the creation of this new Territory. The maps of Canada will change for the first time in 50 years to mark this occasion.

Many different decisions have been made and many more challenging decisions lie ahead of us. We were pleased to have the Honourable Ron Irwin present to discuss these issues and concerns, currently facing the leaders of the Nunavut.

Mr. Speaker, the summit agenda was lengthy and complex. We were dealing with such issues as the appointment of the interim Commissioner within the next few months, and the appointment of an Electoral Boundary Commissioner this summer. We must also appoint a Statute Revision Commissioner who will commence working on the laws that will govern Nunavut. New deputy ministers and other public servants must be hired to serve Nunavut.

Mr. Speaker, a very clear message was heard from the majority of the leaders, primarily the federal government, the GNWT, NTI, the various regional associations and other concerned groups. The message was that we must work very closely together in a genuine spirit of cooperation. We need and deserve this in order to establish a strong and vibrant Nunavut. We must act as partners in this most critical and historic process.

The extremely important issue of recruiting and training bright and talented residents of Nunavut was also addressed.

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

Nunavut Leaders' Summit, Arviat
Item 3: Members' Statements

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The Deputy Speaker John Ningark

The honourable Member is seeking unanimous consent to continue his statement. Are there any nays? There are no nays. Continue.

Nunavut Leaders' Summit, Arviat
Item 3: Members' Statements

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Kevin O'Brien Kivallivik

Thank you, Mr. Speaker. The extremely important issue of recruiting and training bright and talented residents of Nunavut was also addressed as it relates to employing individuals who will serve in the public service of our new Territory.

Mr. Speaker, there was much discussion and disagreement over the infrastructure development plan that will be necessary to govern such a large and sparsely populated region. Although we did not reach total agreement on this issue, it was understood that all parties would work together on an acceptable agreement on this major concern. The Canadian Constitution will have to be amended to ensure that the rights of Nunavut residents are reflected in that Constitution.

Mr. Speaker, there was also a great deal of concern about the $150 million incremental funding agreement that Mr. Irwin announced earlier this month. Members questioned if this sum was sufficient to build a strong Nunavut. It was, however, agreed that this issue would not be allowed to play any part is delaying our progress at this time.

Finally, Mr. Speaker, there was a general agreement that the primary responsibility of those attending was to ensure that the foundations established for the government of Nunavut should accurately reflect the will and wishes of the people of Nunavut. As Nunavut's creation is a direct outcome of the people's aspirations, it is imperative that leaders stay true to the visions of those residents. Our success will be reflected when generations from now, children reflect on the good job that their ancestors did at the Arviat summit.

Mr. Speaker, my last words are to say how proud I was to be representing the community of Arviat at this meeting. Special thanks go to the residents of Arviat, especially the elders who worked very hard to make our visitors feel very much at home. Thank you, matna, mahsi cho.

--- Applause

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The Deputy Speaker John Ningark

Thank you, Mr. O'Brien. Item 3, Members' statements. Mr. Enuaraq.

Access To Social Housing For Handicapped People
Item 3: Members' Statements

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Tommy Enuaraq Baffin Central

Thank you, Mr. Speaker. Before I start my statement, I would like to mention the warm hospitality of the people of Arviat.

Mr. Speaker, I wish to speak about access to social housing for handicapped people. Recently, I have been dealing with a request from the hamlet of Clyde River to provide access to public housing for a handicapped person. In looking into the matter, Mr. Speaker, with the Northwest Territories Housing Corporation, I learned that such requests are dealt with on a case-by-case basis.

I am concerned that there should be a policy in place to deal with these situations. People who are tenants in social housing should know that the corporation will respond to their request for the special facilities required by handicapped people in an orderly way.

The policy should include the Department of Health and Social Services, which obviously has resources and responsibilities for handicapped persons. I would like to see CMHC included in this policy, since the federal government should be cost sharing any new facilities which are put into houses for handicapped persons.

I hope, Mr. Speaker, the Minister responsible for the NWT Housing Corporation, the Honourable Goo Arlooktoo, will consider my advice and direct his officials to take the lead to develop a government-wide policy for access to social housing units for handicapped persons. Thank you, Mr. Speaker.

--- Applause

Access To Social Housing For Handicapped People
Item 3: Members' Statements

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The Deputy Speaker John Ningark

Thank you, Mr. Enuaraq. Item 3, Members' statements. Mr. Picco.

Success Of Nunavut Leaders' Summit In Arviat
Item 3: Members' Statements

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Edward Picco Iqaluit

Thank you, Mr. Speaker. Mr. Speaker, this past weekend, the Nunavut Caucus met with our partners in creating the new Nunavut Territory in Arviat. Mr. Speaker, the partners I am referring to are the GNWT, NTI and the federal government. NIC, in its role as an advisory body to the parties was also in attendance. We will have to work closely with our partners to ensure that the financial, administrative and logistic hurdles are overcome, so that on April 1, 1999, Nunavut will be up and running.

Mr. Speaker, the people of Arviat were most hospitable and I personally enjoyed seeing Simon Sejjirak perform live for the first time.

--- Applause

Mr. O'Brien and the community of Arviat have to be congratulated on the first-class entertainment and administration work they put in place to ensure a successful meeting.

Mr. Speaker, myself, Mark Evaloarjuk, Tommy Enuaraq and Levi Barnabas stayed with Mr. O'Brien. I would like to thank him for his comfortable couch and good food during our stay. Mr. Speaker, returning to Yellowknife from Arviat, we had to spend a few hours in Rankin Inlet. True to form, the Honourable John Todd greeted us with much hostility during our lay-over in his community. Thank you, Mr. Speaker. I mean hospitality.

--- Laughter

--- Applause

Success Of Nunavut Leaders' Summit In Arviat
Item 3: Members' Statements

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The Deputy Speaker John Ningark

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

Business Credit Corporation
Item 3: Members' Statements

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. Mr. Speaker, the NWT Business Credit Corporation was created to encourage economic development and employment in the NWT. The corporation does this for making loans to businesses, guaranteeing loans made by financial institutions to businesses and providing bonds for resident businesses.

Mr. Speaker, these are laudable goals. We all want to support northern business. However, I have some great concerns about how the Business Credit Corporation conducts its business, both on the lending side and when collecting loans. My concerns come from a belief that these areas need to be freed from the potential of political interference.

The board of the Business Credit Corporation is politically appointed. There is always the possibility that decisions made by board members will be seen as politically motivated. In order to assure the public that decisions are made objectively and without political interference, the board should not be involved in approving loans. The board's role should be to establish clear policies for granting loans and setting general policy for the corporation.

The actual approval process should be objective and gut of the hands of the board. It should be strictly a business decision. I also believe there is far more we could be doing in the area of loans collection. Many people will just pay back their loans. However, there are some that don't. The Department of Justice is currently responsible for loans collection. As a department reporting to a Minister, there is always a potential, no matter how small, of political influence.

As a resident of Fort Smith, even prior to becoming an MLA, I had grave concerns about the way the Business Credit Corporation deals with loans. Since becoming a Member and dealing with the loans forgiveness and write-off bills and business plans, my concerns are even stronger.

Business Credit Corporation
Item 3: Members' Statements

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The Deputy Speaker John Ningark

Mr. Miltenberger, your time is up.

Business Credit Corporation
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Michael Miltenberger

Michael Miltenberger Thebacha

I seek unanimous consent to conclude my statement.

Business Credit Corporation
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The Deputy Speaker John Ningark

The Member is seeking unanimous consent to continue. Are there any nays? There are no nays. Please continue.

Business Credit Corporation
Item 3: Members' Statements

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. Mr. Speaker, through the standing committees and the work of the House, I will be looking for improvements in the way the Business Credit Corporation conducts its business. In our current financial situation, this government cannot afford to allow loans to be written off when there is a chance they can be collected. We also need to ensure that we make the best use of business and loan dollars that we have. Thank you.

Business Credit Corporation
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The Deputy Speaker John Ningark

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