Mr. Chairman, I am not familiar with the contracts in your constituency, but any of the delivery contracts that had expired while we were considering privatization were extended to March 31, 1999. In some cases, though, we have had situations where contractors have said they do not want to continue. I can recall one in the Baffin and another where we had to withdraw the contract because of a non-compliance. Tuktoyaktuk may fall into the category of the contractor not being prepared to continue. We would not be going to tender unless that was the case. Thank you.
Debates of Feb. 17th, 1998
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 876
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 876
The Chair John Ningark
Thank you. 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 876
Vince Steen Nunakput
Thank you, Mr. Chairman. I presume the Minister will give me the information on my particular community. I am under the understanding that unless present contractors were not willing to carry on until 1999, there is no option to have those contracts tendered?
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 876
The Chair John Ningark
He is asking, there is no action to have those contracts tendered at this time? 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 876
Lovely
Mr. Chairman, if the contractor, whose contract has been extended to March 31, 1999, would prefer to be in a situation where we would go to tender, we are open to that and we can do that. We would not hold the contractor to the March 31, 1999 date unless they were prepared to continue. 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 876
The Chair John Ningark
Thank you. In other words, case by case. 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 876
Vince Steen Nunakput
Mr. Chairman, I want to make a point here. Ever since I was elected, I send to into the House that the people in my communities want those contracts tendered so that they would be paying the cheapest price possible for fuel and gas. We have been continuing this process on a month-to-month, six-month to six-month basis, with no opportunity to bring the price down. Therefore, I do not understand the department's move to now extend those contracts without going to tender until 1999.
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 876
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 876
Lovely
Thank you, Mr. Chairman. You will recall that one of the initiatives of this government was to consider the privatization of the petroleum products division. We had a range of delivery contracts that were in place in all 42 communities. Some of them were short-term and were due to expire while we were considering how we would go about privatization. Some of them were long-term and they extend to, I believe, 2002. We did not want to go out to tender on the short-term ones which had already expired because we did not know what was going to come out of the privatization study which might have recommended something totally different. We did not want to have a number of contracts in place that we could not get out of. We already have, I believe, 22 long-term ones that we cannot get out of until 2002. We are committed because we tendered those and we have entered into contracts. We said to the 20-some short-term contractors, we cannot go out to tender now, however, because we are not sure where this thing is going. This was done early in 1997. We will agree to extend the existing contract until 1999 to give them some certainty. We felt they had to have at least that degree of certainty to be able to do business for the community. We did it on that basis rather than trying to preclude our ability to go out to tender. We just did not know where we would be until we made the decision in late 1997 to cancel the privatization initiative. 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 876
The Chair John Ningark
Thank you. Petroleum products, page 5-11. 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 876
David Krutko Mackenzie Delta
Thank you, Mr. Chairman. My question is with regard to the private sector getting into the fuel delivery business, especially where there are existing contracts with this government. The case I am talking about is in Fort McPherson where there is now an organization looking at, not only selling gas but, also delivering fuel products, heating fuel and P50. I would like to ask the Minister, what do you do in that case? Do you go out to competitive bid or wait until the contract has run out?
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 876
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 877
Jim Antoine Nahendeh
Thank you, Mr. Chairman. Mr. Chairman, I understand that in Fort McPherson the Tetlit Gwich'in Council representatives met with my officials at the beginning of the month to discuss certain issues and the possibility that the locally owned fuel company, Dunnett Petroleum, would be interested in providing fuel services. Our officials explained to the representative that we had contract obligations for a local fuel deliverer up to the year 2001. There were potential business opportunities available other than that, as well, and we would like to explore those. We would like to try to live up to our contractual obligations to the year 2001. We are prepared to enter into discussions with the council to explore alternatives to increase or have them enhance their participation in providing fuel service in Fort McPherson. We are open for discussion to see how and what kinds of options are there for us. 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 877
The Chair John Ningark
Thank you. Petroleum products. 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 877
David Krutko Mackenzie Delta
Thank you, Mr. Chairman. My next question is with regard to the safety of storage facilities. In light of the report by the Auditor General, who identified some environmental liabilities to the government, and with regard to some communities where the tank farm was built in a flood plain, who does the assessment on that particular item? How often is there an assessment done on these particular facilities, to look at the whole question of environmental liability and to see if there are structural damage, permafrost shifts and other such things? The critical thing is these things have been built, in the case of Fort McPherson which is located within a flood plain, where when it floods there is water right around the facility. In that case if there is ever a major oil spill, it is going to affect not only Fort McPherson but probably the Delta. My question is what is being done to ensure that there are inspections and these facilities are checked periodically?
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 877
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 877
Jim Antoine Nahendeh
Thank you. This department made a decision to make an environmental assessment for this spring and summer. We are going to be providing a public tender to have that assessed. We understand that there is potential for environmental contamination around the Fort McPherson tank farm and we need to do a good assessment of it. As soon as it warms up this spring, we will be putting a contract out. 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 877
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 877
David Krutko Mackenzie Delta
Thank you, Mr. Chairman. Are there any other communities that have been identified on which to do such an assessment?
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 877
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 877
Jim Antoine Nahendeh
Thank you, Mr. Chairman. The environmental conditions of the petroleum products division's facilities are largely unknown. In 1996, this division had a visual inspection at most of the sites that it runs. It did not include soil or subsurface examinations. This division intends to issue requests for proposals to examine the environmental conditions at about 42 different sites this year. 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 877
The Chair John Ningark
Thank you. Mr. Roland.
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 877
Floyd Roland Inuvik
Thank you, Mr. Chairman. Under the petroleum products division, I notice under operations and maintenance you have nothing there for salaries and wages, although you do have employees because I know in Inuvik there are 36 employees. Where are these covered? You do not have salaries and wages under operations and maintenance?
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 877
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 877
Jim Antoine Nahendeh
Thank you, Mr. Chairman. On page 5-17 you have petroleum products revolving fund, the salaries and wages are covered under there. Thank you.