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

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 870

The Chair John Ningark

Thank you. Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

February 16th, 1998

Page 870

Jim Antoine Nahendeh

Thank you, Mr. Chairman. Mr. Chairman, this department had disposed of some of the assets to two different groups for nominal fees in the past. I understand this information was provided to the Standing Committee on

Infrastructure when it was asked for. I am told there were very few of these buildings. We do not have the detailed information here, but we could provide that to this House. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Krutko.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. My other question is in regard to the way assets are disposed of. Is the decision made by the deputy minister or the Minister himself or is it made by Cabinet? Who makes the decision these assets are going to be disposed of for a dollar?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

Jim Antoine Nahendeh

Thank you, Mr. Chairman. Mr. Chairman, the decision for disposing of buildings in this manner is made by the Financial Management Board and the department who is relinquishing the building has to declare a grant in kind for financial purposes which is how it is recorded. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Krutko.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. Is it the Minister of FMBS or is it the deputy minister of FMBS? Who makes the decision from FMBS?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

Jim Antoine Nahendeh

Thank you, Mr. Chairman. All of the Ministers are on the Financial Management Board and it is made as a financial decision by Cabinet, which is the FMB. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Krutko.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. Are there any criteria for any non-profit organizations to acquire government assets, such as alcohol and drug centres in the communities which operate out of a government house and they do not have any operation and maintenance dollars? What is the arrangement for that class of people? Are there different classes of groups who can qualify for acquiring government assets for a dollar or do they fit into a different category altogether?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Lovely.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

Lovely

Thank you, Mr. Chairman. When government buildings are being considered for donation, which is the best way to describe a nominal sum, there are fairly clear guidelines on how the government makes those assets available. There is a list of whom the government must go to first, second, third and fourth.

The first, to my recollection, I do not recall all of the details, but we can provide a copy. My recollection of the first group on the list is other government department. For example, if a health centre is declared surplus, they might go to a variety of government departments and ask do you need it. If none of the other government departments need it, then the next group on the list is municipalities. My recollection of the next group is non-profit groups, but I would have to check that and I could provide a copy where you could see there is a sequence. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Krutko.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. The reason I raised the question is that Aklavik operates an Alcohol and Drug Treatment Program out of a housing unit that used to belong to this government. When we got rid of government assets and sold off houses, this is one area that myself, the mayor of Aklavik and the committee approached the previous Minister on to see if there was a way to acquire that building for a dollar. However, there were outstanding amounts owed against the facilities, which I was hoping could be written off. In this case we were disposing of an asset yet there may be liabilities attached to that asset once you get rid of it. Is there a way of disposing of the asset and also disposing of any outstanding liabilities that may be attached to such a building?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Perhaps Mr. Krutko is referring to a statement of interest from the group. Mr. Lovely.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

Lovely

Thank you, Mr. Chairman. Any assets that are declared surplus are declared surplus by whichever department has occupancy of the building. So if a learning centre in a community was to be declared surplus it would have to come from the Department of Education. When that is the case, they go down the list to the point where they are talking to non-profit organizations. They never transfer liabilities to them to my knowledge. In terms of the ones that I have seen, no liabilities have been transferred. It is simply the asset itself unencumbered by liabilities. I am not aware of a community where that has actually occurred. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

The Chair John Ningark

Thank you. Mr. Krutko.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 871

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Chairman. With regard to Aklavik, because that is one particular case that I have been involved in, I believe your department has been made aware of it. The process was that eventually we went through the municipality where it was distributed under your section of classes, it was classified as a second group that you allocated before you got to group three. Group three will probably be the alcohol centre because it is a non-profit society.

With regard to the outstanding amounts, what I was talking about is there was, apparently, an account that was revolving where they were supposed to eventually pay the different fees. When the building was put on the market for sale, there were operations and maintenance costs for that building because the government was still... it was being taken off as an asset, but there were still costs associated with that building where they had to pay the fuel, the power and whatever. What they did, because the alcohol centre was in that building, was they took those amounts and they charged them back to the alcohol and drug centre for those fees. Why, in this case, could the government not have recouped that cost through the department because it was put on the market and was no longer classified as a government asset? It is a complicated matter but, hopefully, you have received the gist of what I am saying, circumstances which were out of the control of the alcohol centre and out of the control of the government because they classified it as no longer a government asset because it was up for sale. Is there a way that the department can consider looking at recouping those costs which were billed to the alcohol and drug centre?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 872

The Chair John Ningark

Thank you. Mr. Lovely.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 872

Lovely

Thank you, Mr. Chairman. I can look into that one specifically. It is enough of an exception that I can talk to my colleague in the FMBS, which is the department that has ownership of those assets. I will provide some more detail on that and get back to the Member directly, if that is okay. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 872

The Chair John Ningark

Thank you. Is that okay? I thank you kindly, Mr. Krutko. Mr. Steen.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 872

Vince Steen

Vince Steen Nunakput

Thank you, Mr. Chairman. Mr. Chairman, I did not catch the exact amount that the deputy minister said was in the $32 million. I believe he referred to somewhere around $15 million was in asset management for leases. Mr. Chairman, this information I have, from last year's budget, shows for 1998-99, the requirement for this year was going to be $9.862 million. Why is $15 million needed for the leases this year?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 872

The Chair John Ningark

Mr. Lovely.