This is page numbers 847 - 881 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

Member's Statement 265-13(5): Telephone Rate Increases
Item 3: Members' Statements

Page 850

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. My comments today will be on the ever-increasing price of having a phone. A telephone is one of those modern conveniences that is hard to live without. Where would each of us be if we did not have this method of communicating with each other?

Here in the north it is becoming increasingly expensive to have a telephone. In 1995, NorthwesTel was allowed to boost its basic access rate by $3 a month. Last year, that basic cost went up by $4 more a month. Now, we have received word that basic access will rise by $10 a month by August, 1999. That is a raise of $17 per month in the past four years, Mr. Speaker.

The phone company says it has no choice but to bill us for more basic access and local use because it is dropping its long distance rates, but those rates are still amongst the highest in the country. NorthwesTel's long distance revenues of $75 million in 1996 accounted for more than 60 percent of all the company's revenues.

There was talk about opening the northern market to competition by the CRTC, but the CRTC has pushed that back to July 1, 2000. While NorthwesTel says it is making all these changes in order to become more competitive, I am left wondering, competitive with whom? For the next 30 months, NorthwesTel will reap higher local rates, but remains a monopoly and that just does not seem fair.

For a lot of our citizens $17 more a month for a phone is a huge expense. These rate hikes should have been pegged directly to the opening up of the market to competition, which at least would have given consumers an alternative. We are all forced to pay substantially more for what should be regarded as an essential service. It may just become too expensive for many people to have a telephone. Thank you, Mr. Speaker.

--Applause

Member's Statement 265-13(5): Telephone Rate Increases
Item 3: Members' Statements

Page 850

The Speaker Samuel Gargan

Thank you. Members' statements. Mrs. Groenewegen.

Member's Statement 266-13(5): Addressing Our Social Problems
Item 3: Members' Statements

February 16th, 1998

Page 850

Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. Mr. Speaker, it is no longer acceptable to recite our problems as the leaders in Canada in incarceration rates, suicide rates, infant mortality rates, fetal alcohol syndrome, FAE and alcohol consumption. Mr. Speaker, have we become too calloused as leaders that we do not cry when we read the letters, like those recently published in the newspaper by people who were the victims of abuse in residential schools when they were children.

Mr. Speaker, the north is in need of collective healing. We have men in our jails today who are returning there for the seventh and eighth time. Many of them are in the correctional facilities in our communities. It would do us well to go down to the Salvation Army or the YCC and have a meal with some of these inmates who will soon return to their communities with little hope of employment and little hope of avoiding the ability to resist the temptations that have messed up their lives in the first place.

Mr. Speaker, many people may see me as an affluent business woman from a comparatively affluent community, but I want to assure you that I have put my money where my mouth is. I have worked with people in our society who are in need of healing and in need of care.

Mr. Speaker, it is important, that we, as the leadership of this small territory, try to truly reflect the goals and aspirations of our people, not to be insulated, detached or completely preoccupied with process and managerial approach. The leadership must be visionary and passionate about our goals including the healing and wellness of our residents.

Today I would like to take our hats off to the people at the community level who address those social needs, and meet the needs of those people, including agencies such as the friendship centres. Thank you, Mr. Speaker.

--Applause

Member's Statement 266-13(5): Addressing Our Social Problems
Item 3: Members' Statements

Page 850

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Henry.

Member's Statement 267-13(5): Archaic Legislation
Item 3: Members' Statements

Page 850

Seamus Henry Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, I am confused by the comments made by some Ministers in this House in the past few days. Several Ordinary Members have pointed out there is an urgent need for legislative amendments to be made because we have several acts that are outdated and cumbersome. The Labour Standards Act and the Condominium Act, for example, are preventing people in the Northwest Territories from carrying out reasonable and necessary arrangements that any employer, purchaser or business person located elsewhere in Canada would be entitled to make.

Under our Labour Standards Act, an employer or employee in the Northwest Territories cannot even come to an agreement about the hours of work that best suit them both. We do not know how many employees our legislation is forcing to work outside of the system, possibly illegally. Another prime example is our Workers' Compensation Act. I venture to say there are no other Workers' Compensation Boards in Canada who have the ability to sue an employer.

Mr. Speaker, Members have been told by the Deputy Premier, by the Minister of Finance and by the Minister of Resources, Wildlife and Economic Development that the legislative agenda of this government is full and that the government has set its priorities and apparently, that is that. Division is coming and our hands are tied. There is very little they say they can do.

On the other hand, new initiatives are being brought forward and we cannot seem to get a clear answer as to whether legislation will be required to implement them or not and I refer to the Keewatin pilot project.

Mr. Speaker, the government seems to have its priorities misplaced. With division coming, there is even more reason to clean up the field. The last thing that the two new governments need, is to inherit obstructive legislation. Our outdated statutes are causing enough problems now. Surely, we do not want to duplicate them. Before we spend all our efforts putting into place grand new initiatives that may not even be appropriate for Nunavut, we need to make sure we do not perpetuate past mistakes. That is where our priorities should be. Thank you, Mr. Speaker.

--Applause.

Member's Statement 267-13(5): Archaic Legislation
Item 3: Members' Statements

Page 851

The Speaker Samuel Gargan

Thank you. Members' statements. Item 4, returns to oral questions. Mr. Antoine.

Return To Oral Question 322-13(5): Impact Of Freight Cost Increases
Item 4: Returns To Oral Questions

Page 851

Jim Antoine Nahendeh

Mahsi, Mr. Speaker. Mr. Speaker, I have two returns. The first one is one asked by Mr. Barnabas on February 13th in regard to the impact of freight cost increases.

On Friday, February 13, the Member for High Arctic directed a question to the Premier asking how NAV Canada's phase I introduction of fees for air navigation services on April 1, 1998 will affect the cost of living in the north. As the Premier indicated, this is not an easy question to answer precisely.

The creation of NAV Canada as a not-for-profit private corporation was the result of the federal government's decision to put Canada's air navigation system on a commercial footing. Commercialization meant that Canadians would pay for the cost of air navigation services differently than they had before. Formerly, the government of Canada paid for most of the costs of air navigation services through the Air Transportation Tax (ATT) that was added to the price of every air passenger ticket sold. As NAV Canada brings in its new service fees, collected directly from the air carriers instead of the passengers, the Air Transportation Tax will be eliminated. Passenger fares would go up to cover the new fees, but the old tax that was added on top of the ticket price will be gone.

NAV Canada's new fees will come in two stages, one effective April 1, 1998 and the second on November 1, 1998. At the same time, the Air Transportation Tax will disappear in two 50 percent reductions.

How the air carriers, in turn, plan to recover NAV Canada's fees from the customers is a matter of each carrier's corporate pricing strategy. Depending on its competitive position, a carrier may decide to pass on all or a portion of the fees. The carrier also has the additional flexibility to distribute its fee recoveries between its passenger fares and its freight rates.

The new fee structure could not be avoided as NAV Canada put the air navigation system on a full cost recovery basis. Nonetheless, in a vigourous lobbying campaign with the northern air carriers over the past year, the Department of Transportation has been successful in minimizing the impact of the new fee structure on northern routes.

The department was able to make NAV Canada recognize that the fee structure, as it was originally proposed, would have had a greater effect on northern than southern air routes. As a result, NAV Canada agreed to raise the weight limit of the aircraft which the phase I fees would apply from 5.5 to 8 tonnes. The higher weight limit exempts Twin Otters and aircraft of similar size from the phase I fees. The department also won the concession that the new fees would not apply to flights departing from northern and remote airports where the air navigation services are delivered by CARS stations.

The phase one fees are set to come into effect on March 1st. The department is still in discussion with NAV Canada on the phase two fees that will come into effect on November 1st. Although I cannot be specific at this point, I am confident that we will have similar success in reducing the impact of phase two fees as we have already had with phase one fees.

For all that, I am sorry, I cannot give the Member an exact answer on the overall effect the new passenger fares and freight rates will have on the cost of living in northern communities. Too much depends on how the air carriers themselves decide to factor NAV Canada service fees into their fares and rate schedules. The final effect on the delivery costs of air cargo will vary from community to community.

I can tell the Member that the effect of the new fees on the northern cost of living will is less than if the Department of Transportation had not intervened with NAV Canada as early and as vigorously as it did.

My second return to oral question, Mr. Speaker, was a question asked by Mr. Erasmus on February 13th, in regard to NorthwesTel rate increases.

Return To Oral Question 319-13(5): Northwestel Rate Increases
Item 4: Returns To Oral Questions

Page 851

Jim Antoine Nahendeh

First, I would like to remind Members that my role in relation to NorthwesTel is to ensure that the interests of the people of the Northwest Territories are made clear to the CRTC. It is the CRTC that makes the rules and sets the rates for phone companies.

I can tell you that providing local telephone service is very expensive, especially in the north. For a long time, phone companies structured their rates so that every house could afford to have a phone. This meant that long distance rates had to be higher in order to help pay for the local costs.

When phone companies were deregulated, competition for long distance services became intense. In order to compete for long distance customers, the companies that provided local access decided that the local system had to pay for itself, instead of depending on long distance revenues.

The rate increases we have seen so often in the Northwest Territories in recent years are the result of NorthwesTel getting ready for competition. They are increasing local access and balancing that with decreases to long distance rates. This works out well for customers who make a lot of long distance calls. Their total phone bill will probably go down. However, the CRTC has specifically ordered the introduction of long distance competition by July 1, 2000. NorthwesTel has been directed to increase local rates by $4 effective August 1, 1998 and by $6 effective August 1, 1999.

This government made a submission to the CRTC when they were holding hearings last year to decide on whether long distance competition should be implemented. We supported long distance competition. We realized that it would mean some increases in local rates, but we recommended to the CRTC that they introduce subsidies for areas like the Northwest Territories where costs of providing service are very high.

I am pleased to report that the CRTC took that recommendation seriously. They will be holding hearings across the country and in the north starting in May of 1998. We intend to continue to be aggressive on the need for subsidies to help northerners and we will be making a submission to the CRTC to make sure that northerners' interests are represented on this important issue. Mahsi, Mr. Speaker.

--Applause

Return To Oral Question 319-13(5): Northwestel Rate Increases
Item 4: Returns To Oral Questions

Page 852

The Speaker Samuel Gargan

Thank you. Returns to oral questions. Item 5, recognition of visitors in the gallery. Mrs. Groenewegen.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. Mr. Speaker, it is my pleasure today to recognize Roy Courtoreille, the chairman of the board of directors of the Soaring Eagle Friendship Centre in Hay River, also, Abbie Crook, long-time friendship centre and social activist and, also, on the national board of friendship centres. Also, Dawna O'Brien who is actively involved in our friendship centre. They represent many years of community service and I would like to recognize them for their efforts. Thank you.

--Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

The Speaker Samuel Gargan

Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Roland.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

Floyd Roland

Floyd Roland Inuvik

Thank you, Mr. Speaker. Mr. Speaker, it gives me great pleasure to introduce three members from Inuvik, Ann Kasook, the executive director of the Ingamo Hall Friendship Centre, Barry Greenland, a board member of Ingamo Hall Friendship Centre and Derek Lindsay, a town councillor and a board member of the Ingamo Hall Friendship Centre.

--Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

The Speaker Samuel Gargan

Thank you. Welcome to Assembly. Recognition of visitors in the gallery. Mr. Miltenberger.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. I am pleased to rise to recognize some of the members from Uncle Gabe's Friendship Centre. From the board, there is Lynn Dumont, Ethel Chalifoux, Tina McNeill, Al Dumont as well as Roger Rawlyk, the executive director. Thank you.

--Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

The Speaker Samuel Gargan

Thank you. Welcome to the Assembly. Recognition of visitors in the gallery. Mr. Krutko.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. I would also like to recognize Barry Greenland, the sub-chief from Inuvik and, also, Chuck Laroque and other members of the friendship centres who are all here today. Welcome.

--Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

The Speaker Samuel Gargan

Recognition of visitors in the gallery. Mr. Antoine.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, I am happy today to introduce two members of Fort Simpson, two of my constituents who are also here with the friendship centre delegation. First of all, I would like to introduce Dwayne Lafferty, he is the executive director of the Deh Cho Society Friendship Centre in Fort Simpson, as well as, Alexa Tsetso, she is a youth representative with the Deh Cho Society Friendship Centre in Fort Simpson. Mahsi and thank you.

--Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 852

The Speaker Samuel Gargan

Welcome to the Assembly. Recognition of visitors in the gallery. Item 6, oral questions. Mr. Ootes.

Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 852

Jake Ootes

Jake Ootes Yellowknife Centre

Mr. Speaker, I would like to ask the Minister of Transportation some questions in regard to telephone rates in the Northwest Territories. He mentioned in his return to an oral question today that they have asked the CRTC to hold hearings into providing subsidies for certain areas in the Northwest Territories. Could the Minister tell

us, is that for all of the Northwest Territories or only certain areas? Thank you.

Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 853

The Speaker Samuel Gargan

The Minister of Transportation, Mr. Antoine.

Return To Question 343-13(5): GNWT Role Regarding Telephone Rates
Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 853

Jim Antoine Nahendeh

Thank you, Mr. Speaker. I just want to clarify that I wear three different hats as Minister here in this House and, I think, my role as Minister of Public Works and Services is what my relationship with NorthwesTel is. Again, we are there to represent the interests of all the people in the Northwest Territories and the request that we made is for all the residents of the Northwest Territories in regard to the subsidies which they should consider in their increases to their telephone rates. Thank you.

Return To Question 343-13(5): GNWT Role Regarding Telephone Rates
Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 853

The Speaker Samuel Gargan

Oral questions. Supplementary, Mr. Ootes.

Supplementary To Question 343-13(5): GNWT Role Regarding Telephone Rates
Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 853

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. The Minister stated that they are starting hearings next summer. Could the Minister tell us, if it is only in the Northwest Territories that they are looking at a subsidy system? Is that the purpose of it?

Supplementary To Question 343-13(5): GNWT Role Regarding Telephone Rates
Question 343-13(5): GNWT Role Regarding Telephone Rates
Item 6: Oral Questions

Page 853

The Speaker Samuel Gargan

Mr. Antoine.