This is page numbers 1345 - 1368 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 north.

Topics

Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1352

The Speaker Samuel Gargan

Just to remind the Members that when you recognize a Minister, you should also recognize his office. The Minister of Finance, Mr. Todd.

Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1352

John Todd Keewatin Central

Thank you, Mr. Speaker. Well, I think the opposition has been consistent. We have indicated to both the federal government as recently as last week when I met Mr. Martin, the Finance Minister, and Ms. Stewart, the new DIAND Minister, that we want to see diamond sorting and valuation done in the north. We went down for a variety of reasons. Both my colleagues from Yellowknife and Hay River outlined that earlier today. The most important reason for us is to make sure that we get an accurate reflection of the value of the

diamonds, so that the royalty in the tax regime is reflected accordingly. As you know, we are currently trying to reconcile with our federal counterparts for an expanded tax window to ensure that some of these revenues fall back into the north. So the position of this government is clear. We are advocates of the need for northern diamonds to be sorted in the north, Botswana diamonds in southern Botswana. Yakutia diamonds are sorted in Yakutia. Northern diamonds better be sorted in the north.

Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

The Speaker Samuel Gargan

Oral questions. Supplementary, Mrs. Groenewegen.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

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Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. Minister Todd referred to his meeting with Minister Paul Martin and Minister Jane Stewart. Could he advise the House as to what kind of response, assurances or reactions he got to his delivery to those Ministers in Ottawa? Thank you, Mr. Speaker.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

The Speaker Samuel Gargan

Mr. Todd.

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

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John Todd Keewatin Central

I think it is important for everybody to understand that Mr. Lazarovich does not determine what Canadian public policy is, as it relates to diamond sorting and valuation. So really, Mr. Lazarovich or whoever he is is some nondescript bureaucrat that gives advice to the federal ministers. As I have indicated many times, he may think he is the Canadian expert on diamonds. I would like to think I am the Canadian expert on northern diamonds.

The position in terms of trying to determine what an appropriate public policy should be as it relates to diamonds in the Northwest Territories will be made by politicians, not bureaucrats. I have assurances from both Ministers that the northern position and the position we are taking will be included in the public policy that will eventually develop and will meet the needs not just of northerners, but of Canada as a whole. Thank you.

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

The Speaker Samuel Gargan

Oral questions. Supplementary, Mrs. Groenewegen.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

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Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. I am glad to hear that Mr. Todd feels he is the Canadian expert after his most recent trip to Antwerp and London. I am sure he comes back with more knowledge than ever. Mr. Speaker, I am wondering if the Minister could advise the House, for the benefit of the public, on what some of the extended benefits are? We have been talking about the royalty regime and how Canada can benefit from the royalty. But there are expanded benefits to be realized from sorting and valuating diamonds in the north. I wonder for those of us, who were not along on the trip, if he could update us on that kind of information? Thank you.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

The Speaker Samuel Gargan

Mr. Todd.

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

John Todd Keewatin Central

Well, of course, my honourable colleague could have come along on the trip, but she chose to stay home and so did her mayor. Mr. Speaker, I think it is important to differentiate between the two types of sorting. Sorting for royalty purposes is slightly different from marketing purposes. For marketing purposes, you sort them in certain categories to determine where you are going to sell them, who you are going to sell them to, what the value is, et cetera. Our position has been if we are only going to sort for valuation purposes, we really are not that interested. We need to ensure that the level of sorting is sufficient to give us, as I said, an accurate reflection of what the overall value of that production is. It was suggested to us, I believe in Antwerp, that we can determine what the royalty is based on the balance sheet. It just borders on ludicrous. This was from the industry itself and that is why, to put it mildly, I was more than offended with respect to that discussion that was undertaken.

It is my belief that if we can get an appropriate level of sorting and valuating done in the Northwest Territories, that will bring some jobs and bring some of the diamond industry into the Northwest Territories. My primary interest as a Finance Minister is to ensure that the sorting is done to a level that provides, as I said, an accurate level of valuation so the royalties and the tax regime are to a maximum. So that we can get our share when we negotiate that with Mr. Martin and Ms. Stewart in the coming months. Our principal concern is on the royalty side, because it brings significant fiscal rewards if we can make the right arrangement. Our secondary concern is to ensure that any job associated with Canadian diamond valuation and sorting be Canadian jobs. Is the industry suggesting that the Canadian diamonds should be sorted by Belgians? I hope not. Canadian diamonds are going to be sorted by Canadians. Thank you.

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1353

The Speaker Samuel Gargan

Thank you. Oral questions. Supplementary, Mrs. Groenewegen.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

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Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. As you can tell by the Members around the table here today, we are keenly interested on how we can be involved in participating and ensuring that this valuation sorting comes to fruition and realization in the north. What kind of a window of opportunity

do we have here? Where do we go from here? What is in the immediate offering on this subject? Thank you.

Supplementary To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1354

The Speaker Samuel Gargan

Mr. Todd.

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

Page 1354

John Todd Keewatin Central

Mr. Speaker, Mr. Kakfwi is developing a paper for Cabinet which is going to put together an overall, one window, strategic approach to this issue. There will be a political as well as bureaucratic component to it. I am optimistic that will be concluded this week. I have already committed in the House, along with Mr. Kakfwi, to sit down with both federal Ministers to try to give them another point of view as it relates to Canadian and northern diamonds.

As I said to Mr. Martin, "Would Mr. Tobin allow this to happen in Voisey Bay? Would Mr. McKenna allow this to happen in New Brunswick? Why should Mr. Morin be allowed to let this happen in the Northwest Territories?"

Further Return To Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Question 551-13(4): Government Of The Northwest Territories Position On Diamond Sorting/valuation
Item 6: Oral Questions

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The Speaker Samuel Gargan

Thank you. Oral questions. Mr. Picco.

Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

Edward Picco Iqaluit

Thank you, Mr. Speaker. Mr. Speaker, my question is for the Premier. Mr. Speaker, can the Premier inform this House if there is a policy of this government concerning giving contracts or tenders to former employees of the government formerly in senior positions like a deputy minister, an ADM, et cetera? Thank you, Mr. Speaker.

Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

The Speaker Samuel Gargan

Mr. Premier.

Return To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

Don Morin Tu Nedhe

Thank you, Mr. Speaker. I think that the Member had said, "to give contracts?" Normally contracts are tendered and people are allowed to tender on contracts if they are the best. Supposedly they can take that contract or win it. Thank you.

Return To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

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The Speaker Samuel Gargan

Thank you. Oral questions. Supplementary, Mr. Picco.

Supplementary To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

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Edward Picco Iqaluit

Thank you, Mr. Speaker. That was not my question. My question was is there a policy for the awarding of these contracts? I will ask the question again. Is there a policy of this government that precludes top former senior positions in getting contracts? Thank you.

Supplementary To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

The Speaker Samuel Gargan

Mr. Morin.

Further Return To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

Don Morin Tu Nedhe

Thank you, Mr. Speaker. I will be willing to look into the matter for the Member and speak to him on the issue to make it more clear what he is asking for and then I will provide him with that policy. Thank you.

Further Return To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

The Speaker Samuel Gargan

Thank you. Oral questions. Supplementary. Mr. Picco.

Supplementary To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

Edward Picco Iqaluit

Thank you, Mr. Speaker. Mr. Speaker, I would be very interested in sitting down with the Premier and talking to him, but I would like an answer to my question first. Is there a policy or regulation of the government concerning giving contracts or awarding tenders to former employees of this government in senior positions like a former ADM or a former DM, et cetera?

Supplementary To Question 552-13(4): Policy On Contracting Former Employees
Question 552-13(4): Policy On Contracting Former Employees
Item 6: Oral Questions

Page 1354

The Speaker Samuel Gargan

Mr. Morin.