This is page numbers 367 - 401 of the Hansard for the 13th Assembly, 5th 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.

Topics

Motion 11-13(5): Referral Of Tabled Document 19-13(5) Guidelines For Implementing Public/private Partnerships To Committee Of The Whole
Item 17: Motions

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The Speaker Samuel Gargan

Thank you. Your motion is in order. To the motion. Question has been called? All those in favour? All those opposed? Motion is carried. Item 18, first reading of bills. Item 19, second reading of bills. Item 20, consideration in committee of the whole of bills and other matters. Bill 8,

Committee Report 2-13(5), Committee Report 3-13(5), Committee Report 4-13(5), Committee Report 5-13(5), and Tabled Document 15-13(5). With Mr. Steen in the chair.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

I call the committee to order. For consideration in the committee of the whole, we have Bill 8, Appropriation Act, 1998-99; Committee Report 2-13(5); Committee Report 3-13(5); Committee Report 4-13(5); Committee Report 5-13(5); Tabled Document 15-13(5) and Tabled Document 19-13(5), P3 guidelines. Mr. Ootes, could you give me some direction on how the committee wishes to proceed?

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Jake Ootes

Jake Ootes Yellowknife Centre

Yes, Mr. Chairman, I move that we consider Tabled Document 15-13(5); followed by Bill 8, Appropriations Act and Committee Report 2-13(5), and when we are considering Bill 8, Appropriations Act that we continue with the Executive offices followed by Financial Management Board Secretariat and Aboriginal Affairs. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Ootes. Does the committee agree? Mr. Todd.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Mr. Chairman, I am slightly confused. I thought yesterday we had gotten to the detail on the Department of the Executive. Is my honourable colleague now saying that we are not going to continue with that, and we are going to leave that in abeyance and go back to some other document?

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Mr. Todd, it is my understanding that the committee would open the floor for comments on Budget Address, and then if there are none, we would revert back into Bill 8, Executive offices. Mr. Todd.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Mr. Chairman, I sat in this House for six years and I tell you, it just changes by the minute. Anyway, Mr. Chairman, fair enough.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Todd, for your comments, but I believe I have a majority consensus that this is the way we will proceed. After a 15-minute break, we will proceed in that manner. Thank you.

--Break

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

I would like to call the committee back to order. We have before us for consideration Tabled Document 15-13(5) which is the Budget Address for 1998-99. Are there any more general comments on this particular item? Mr. Krutko.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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David Krutko

David Krutko Mackenzie Delta

My question is in regard to the private partners arrangement that has been tabled in the budget. There has to be some way of monitoring exactly how it is going to play out in regard to having some regulated in such a way we know exactly who is receiving these arrangements and also how the benefits are going to flow directly to the communities, especially in regard to the construction of the school in Fort McPherson where the big push there was to ensure that we have as many jobs generated from such a facility being built and ensuring the monies stay within the geographical region in regard to purchasing of materials, the generation of jobs and looking at a way of training the individuals in the smaller communities where we have high unemployment in the area of taking on apprentice programs when these opportunities come along and going for their journeyman tickets. I would like to ask the Minister in regard to the proposal, is there going to be criteria put there to ensure the communities will benefit to the maximum on any of these projects that take place within the ridings and the communities that these opportunities will happen? Thank you, Mr. Chairman.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Krutko. Before I ask the Minister to respond, I would just like to remind Members that we have Tabled Document 19-13(5) which is the P3 guidelines. This particular type of question may also be posed at that time, but as it is mentioned in the Budget Address, I will put forward the question to the Minister? Mr. Todd.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Well said, Mr. Chairman. Mr. Chairman the P3 policy that we have developed will operate under the same conditions as we operate under now which are conditions like the business incentive policy, like training and employment, like incentives for acquisition of local, both employment and services. I am fairly confident, Mr. Speaker, that at the end of the day, this new initiative will actually bring about more economic benefits for the communities, based upon the fact that the current Business Incentive Program, I am told that 94 percent of the monies we spend under the BIP are northern businesses. So we are optimistic that the P3, while as I have said on a number of occasions is not a panacea for all our economic woes, will in fact merely add to the existing fine policies that this government has put in place to ensure that northerners benefit from its spending. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Todd. Mr. Krutko.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. In regard to the whole construction industry I think one area we should concentrate our efforts on in regard to the possibility of looking toward 1,000 new houses and the whole area of the manufacturer industries that we have the potential of in a lot of our smaller communities. I am talking about the riding I represent where we do have timber resources that could be used to make a lot of these products locally and also generate a local industry, especially where we have high unemployment. In regard to the manufacturer businesses that do presently exist in Yellowknife and Hay River that are making door frames, windows, siding for buildings; I think that has to be looked at in context of these new opportunities, not only the P3 but also the whole housing industry has to look at the possibility of bringing down the cost of importing a lot of these goods and manufacturing them locally.

In regard to that area and the spin-offs that will come from that sector, I would like to ask the Minister exactly how does he see that fitting into the overall picture of these new initiatives?

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Krutko. Mr. Todd.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Thank you, Mr. Chairman. Just to remind my colleague the $40 or $50 million we have assigned to build new housing is in the form of the expanded HAP program and where we are actually providing, if you want, the equity for a number of people who perhaps are not in a position to afford the equity or for that matter afford a conventional long-term mortgage. The conditions that currently exist where we provide expanded EDAP grants will remain in place for this new initiative. My understanding is there are both incentives and encouragements for the utilization of northern manufactured products.

The choice of where people purchase them or how they build their houses will be up to the individual purchaser. While we are putting up, if you want, the front-end equity in the form of a grant, they have also got to seek the long-term debt from mortgage organizations, banks, et cetera. Like the P3, I am confident that this new initiative will accomplish what we want it to. That is to create, to provide if you want, an opportunity of approximately 1,000 houses. We are currently in a shortfall of about 4,500 across the territories. To people who have the capability to afford a long term mortgage or a partial long-term mortgage, it will also provide some economic stimulus in terms of employment and purchasing of goods both northern and southern goods. We will continue to monitor, as we currently do, where the money is spent to try to ensure we get maximum northern benefits from this very important initiative of putting more private housing stock into the Northwest Territories. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Todd. Mr. Krutko.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. In regard to the expenditure of the P3 initiative and also the other initiatives we have such as the housing proposal, will there be a limit on the expenditures of this government in regard to so much percent of the overall budget will be spent in that particular envelope at any one time or will there be a limit on how much we can spend in that particular area because, as you know the social envelope is still sky rocketing as to exceeding the 60 percent level of the overall budget? Is there going to be a cap on the costs of this program and the cost of the other programs in the budgets so we know there will be an actual percentage or amount allocated at any one time to this particular initiative that we do not exceed that amount?

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Krutko. Do you wish to respond, Mr. Todd?

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Yes, Mr. Chairman. Thank you. Under the P3, I believe, in my budget speech we had projected we would like to increase our overall capital expenditures for infrastructure to the tune of over and above what we are currently spending, about $140 million a year, by about another $100 million in each year. We believe at this stage of the game and looking at the affordability issue in terms of the cost to service that $100 million that we have the capabilities to do that at this time. So that would be the top end, we would be looking at it, somewhere around $100 million in P3 projects this year and next year.

On the housing, it is fairly clear we feel that - remember we have to borrow those monies and it means monies that are borrowed that we have to pay back - it is somewhere in the region of $40 to $50 million that will meet some of the requirements of the shortage of housing we have for many of our residents across the territories. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Todd. Mr. Krutko.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. In regard to the way this program is going to be delivered, what kind of assurances can the communities have that there is going to be some portion of these monies allocated to any particular community or riding? Is there going to be a way that we know for a fact that not one region or one riding is going to be left out in the cold with nothing in that particular riding? Is there some means of ensuring that will be done so it will be of some comfort? In a lot of communities they have not seen any major infrastructure projects for a number of years which has had an effect on all our communities and I think there has to be some assurance made to, not only to ourselves in the House, but to the public out there that the communities will receive some way of knowing that there will be some percentage of these monies allocated to each of our ridings and communities we represent.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Krutko. Mr. Todd.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Todd Keewatin Central

Thank you. I was just looking at my good friend, Mr. Picco, combing his hair. He looks very charming. Mr. Chairman, if I may, as I indicated in my budget speech, what we are having our Ministers and deputy ministers do, as we speak, is to re-examine the current capital budget, which is in the region of $140 million to see if, in fact, some of these projects could end up being Public/Private Partnerships projects. We are fast-tracking and looking at the long-term five-year capital plan to see what new projects would fall under the category and criteria that we have set under the P3 policy. I am hopeful at the end of the day there will be transparency and equity in terms of where the money is spent. I have made a commitment to the House that I am prepared to table all the P3 projects for public consumption so that everybody sees where the money is going and what projects they are involved with. I am confident that the concerns that my honourable colleague has with respect to fairness and equity will be answered at that time. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Vince Steen

Thank you, Mr. Todd. Your time is up Mr. Krutko. I recognize Mr. Picco.