This is page numbers 639 - 668 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

Members Present

Honourable Jim Antoine, Honourable Goo Arlooktoo, Mr. Barnabas, Honourable Charles Dent, Mr. Enuaraq, Mr. Erasmus, Mr. Evaloarjuk, Honourable Sam Gargan, Mrs. Groenewegen, Mr. Seamus Henry, Honourable Stephen Kakfwi, Mr. Krutko, Mr. Miltenberger, Honourable Don Morin, Honourable Kelvin Ng, Mr. Ningark, Mr. O'Brien, Mr. Ootes, Mr. Picco, Mr. Rabesca, Mr. Roland, Mr. Steen, Honourable Manitok Thompson, Honourable John Todd.

Oh, God, may your spirit and guidance be in us as we work for the benefit of all our people, for peace and justice in our land and for the constant recognition of the dignity and aspirations of those whom we serve. Amen.

Item 1: Prayer
Item 1: Prayer

Page 639

The Speaker Samuel Gargan

Thank you, Mr. Ningark. Good afternoon. Orders of the day. Item 2, Ministers' statements. Mr. Kakfwi.

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, this government has an economic vision. We see a prosperous, diverse economy built on the strengths of our people and the wise use and conscientious protection of our natural resources, one which attracts investment and provides communities and individuals with opportunities to be productive and self-reliant.

Developing a sustainable economy that provides employment and income opportunities for northerners is a key priority of this government. This is a significant challenge and there is no easy answer or one simple solution to meet the increasing demands of job creation. The Department of Resources, Wildlife and Economic Development (RWED), tasked with addressing this challenge, has developed new strategies and approaches, which are seeing positive results.

Mr. Speaker, over this past year, the department has developed several fundamental principles which have been applied in finding new, cost effective alternatives for job creation. Briefly, these principles are as follows:

-The NWT's rich natural resources must be managed responsibly, particularly since they are the basis of our economy. Economic activity in natural resource areas must ensure northern benefits and must consider environmental stewardship.

-The government is not the engine of economic growth. Business and community development drive economic growth and are the lifeblood of job creation in a sustainable economy.

-New partnerships must be formed at every regional level to provide cost-shared sources for programs and services that maximize capital formation, job creation, labour force development and economic growth.

-Regional and community based organizations must have more say and control over their own development to ensure local involvement in finding solutions.

These principles have been applied and have resulted in fundamental changes to program delivery and how results are achieved. All the department's program and Northern Employment Strategy budgets have been allocated on a regional basis and regional superintendents are now responsible for making decisions on where to place investments for best results.

Mr. Speaker, it is important to point out that the department of Resources, Wildlife and Economic Development would not have been able to fund $34 million in projects on its own. Only through our new approach, which allows for increased access to flexible debt financing programs and cost sharing with regional partnerships, have we been able to achieve this volume. The impact on the economy of these investments has been significant. RWED superintendents and partners have been aggressive in supporting new businesses and community economic development, resulting in the creation of 376 full-time and 948 part-time jobs. In today's difficult economic climate many existing businesses and community development organizations require assistance to expand or maintain employment. Assistance was provided, with the result of 459 full-time and 554 part-time jobs maintained. A full-time job is calculated to be a minimum of 40 weeks of employment and a part-time job to be a minimum of ten work weeks of employment. The total work weeks of employment created and maintained as a result of projects was 48,434 which is the equivalent of 1,210 full-time jobs.

RWED's contribution costs per full-time work week of employment were $196, which clearly indicates a good return on investment in providing opportunities for northerners. Mr. Speaker, these results are very positive and clearly show that RWED is headed in the right direction in meeting this government's priorities. The bottom line is that we are devolving the money and authority to the regions and providing flexibility within each region to invest in its priorities. In closing, Mr. Speaker, I would like to thank colleagues and staff for their support in assisting RWED to achieve such positive results. Their hard work and efforts are greatly appreciated. Thank you.

--Applause

The Speaker Samuel Gargan

Thank you, Mr. Kakfwi. Ministers' statements. Mr. Arlooktoo.

Goo Arlooktoo Baffin South

Thank you, Mr. Speaker. I am pleased to announce that Cabinet has approved the regulations to be made under the Business Corporations Act and that this act will be proclaimed in force on April 1, 1998. This act is one of the cornerstones of the commercial law reform program announced by my colleague, Mr. Kakfwi, when he was the Minister of Justice.

This act is a very significant step forward in the evolution of commercial law, adapting the present Companies Act to modern commercial practices and reducing overlap with other legislation. In the past 20 years, most of the provinces and the Yukon have adopted legislation based upon the Canada Business Corporations Act.

The Business Corporations Act strikes an appropriate balance between the interests of the majority and minority shareholders, creditors and the public dealing with companies. The act is also simplifies procedures, eliminates unnecessary applications to the court and eliminates areas of duplication with other legislation.

The new act:

-simplifies the procedure for incorporating a company;

- provides greater flexibility in a corporation's share structure and in the relations between shareholders;

-simplifies the procedure for major amendments to the corporation's internal structure by reducing the need for court approval of significant changes.

-expands minority shareholder rights by providing for specific rights for shareholders who are not in agreement with fundamental changes; and

-simplifies the procedures for dissolving and reviving companies

Mr. Speaker, the act was also drafted with the creation of the two new territories in mind. By providing that the transitional requirements under the new act must be completed by March 31, 1999, the Companies Act and Companies Winding-up Act will be repealed and no longer apply in either territory on April 1, 1999.

By establishing a greatly improved legal framework within which existing and future Northwest Territories and Nunavut companies may operate, this act will support the economic development which is so critical to both territories. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you, Mr. Arlooktoo. Ministers' statements. Item 3, Members' statements. Mrs. Groenewegen.

Jane Groenewegen

Jane Groenewegen Hay River

Thank you, Mr. Speaker. Mr. Speaker, last week saw a meeting of the joint territorial/federal task force on value-added diamond industries here in Yellowknife. It was obvious to me, Mr. Speaker from reports on the meeting, that by sending only one of the three deputy ministers that are on the task force, that the federal government might not consider this process to be as high a priority as we do.

I wonder how much federal development money would be available to create value-added diamond industries if this diamond find was in Ontario or Quebec where nearly 200 of our federal representatives originate from, as opposed to our two Members of Parliament from the Northwest Territories. What Canada has to realize is that the more economically self-sufficient the north is, the less we have to rely on the resources of Ottawa and the rest of the country. I hope the diamond companies do not think that we are overstepping our bounds and dabbling in issues that no government has the right to be involved in a free-market economy. I heard, Mr. George Burne, the manager of the newly established De Beers presence in Canada, tell us this weekend that we should concentrate on diamond mining and leave everything else up to the professionals. Mr. Speaker, we are far too accustomed to the paternalistic attitude of Ottawa when it comes to charting our own course and being involved in where we want to take our northern economy.

Mr. Speaker, I have seen no quantifiable reports, studies or any other evidence that would convince me that value-added diamond industries would not flourish if located in the Northwest Territories. I see no major or insurmountable hurdles at the territorial, municipal or federal level that cannot be worked out in conjunction with the diamond producers and marketers. Mr. Speaker, the western NWT is fighting for our economic future. We have boomed and busted several times. The economy must diversify and expand.

Finally, Mr. Speaker, as the MLA for Hay River, I would like to thank Mr. Burne of De Beers for attending the NWT Chamber of Commerce meetings and banquet this weekend, the NWT Chamber for holding their meetings in Hay River and I would also like to thank the Honourable John Todd for taking the time to come to Hay River, being the keynote speaker for the banquet and also squeezing in several meetings with a number of my constituents and taking Hay River hospitality like a good sport. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr.

Barnabas.

Levi Barnabas High Arctic

(Translation) Thank you, Mr. Speaker. Good afternoon. Mr. Speaker, I would like to address the issue of the water reservoir in Grise Fiord. The water reservoir has to be very clean because it is used for other household uses. There was a problem earlier with the reservoir. Mr. Speaker, because this is the main water reservoir, it is very important that it has to be clean for the health of the residents. The people, talking to the mayor of Grise Fiord, understood the reservoir was going to be cleaned. The mayor was told that the reservoir was going to be fenced in so that human and animal waste would not reach the reservoir. If the water reservoir was to be fenced in, this would be healthier for the people of Grise Fiord. Mr. Speaker, I will be asking the Minister of Municipal and Community Affairs on this issue later on. Thank you, Mr. Speaker. (Translation ends)

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Enuaraq.

Tommy Enuaraq Baffin Central

(Translation) Thank you, Mr. Speaker. Good afternoon. I will also be speaking in Inuktitut. On January 12, 1998, there were 11 students going to Arctic College from Pangnirtung. They were from the Adult Education Centre. These students went to attend school from January 12 to February 6, and were given their per diem for two weeks. After their student allowance was paid for this time period, they received only $30 after their initial student allowance. Some students have children to feed. I would like the government to realize that the amount of money they were making was as low as ten dollars a day. Considering that they were students and have children, this is not very much. I would be embarrassed if I was the government paying this amount of money to students who have many children to support. During question period, I will be asking the Minister of Education, Culture and Employment on this issue. Thank you, Mr. Speaker. (Translation ends)

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, I rise again to speak about the plight of income support workers in my constituency and the problems they encounter in trying to do their jobs on a minimum budget.

The community of Tsiigehtchic receives approximately $4,000 to administer the Income Support Program. They are unhappy about the work that has to be done to carry out these responsibilities and the amount of money that this government provides. At this point, Mr. Speaker, the communities of Tsiigehtchic and Aklavik are considering withdrawing from administering the Income Support Program for the department. This is to be expected, Mr. Speaker, with the method the department uses to calculate the Formula Financing Program. There are certain things that have to be looked at in regard to the background materials and the notes. The case numbers are based on how many times the income support worker sees a client. However, Mr. Speaker, it does not mention the number of clients that see the income worker who are rejected or do not receive income support, also the amount of time it takes for the income support worker to spend to evaluate the client or clients who have been rejected. Working on each case load, I know of income support workers who have to take their work home and spend many hours after work to conclude the reports. Mr. Speaker, taking into account all these problem areas, the income support workers are working at below minimum wage. Mr. Speaker, I would like to ask the Minister at the appropriate time, would he reconsider looking at the way this program is being evaluated? Thank you.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Miltenberger.

Member's Statement 183-13(5): Fiscal Caution
Item 3: Members' Statements

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. Mr. Speaker, as an Assembly, we have achieved some significant progress in regard to balancing the budget and achieving a small surplus this year. I think we should all be very proud of that achievement. We cannot loose track of the fact, in the enthusiasm of the moment, that there are significant problems still before us, financial and social. Mr. Speaker, we have an accumulated debt of about $40 million. There are a lot of forced growth issues we have yet to address in the social envelope. For example, we are short 4,000 housing units. We have not addressed the needs of education for a number of years where they have had no increases to their budget in spite of an increased population. We have pay equity before us with a price tag of anywhere from $40 to $200 or $250 million. We have a P3 proposal that has a lot of potential providing it is done right with the proper check and balances. If we do not have the proper checks and balances, an amortization schedule and it is not coordinated properly by the government, then we have the potential, almost overnight, to put ourselves back in the same financial situation we have just spent two years digging ourselves out of. While we should be very proud of our achievements, we cannot loose track of the fact we have a lot of work to do. We are not out of the fiscal woods yet, and that we have to stay the course in a lot of ways as we plan for the future. Time is running short but we cannot afford to stray. We have to keep an eye on the fact that we are now fiscally solvent for the time being We want to stay that way and build on that. Thank you, Mr. Speaker.

--Applause

Member's Statement 183-13(5): Fiscal Caution
Item 3: Members' Statements

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The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Ootes.

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. Mr. Speaker, this is a busy time of year for Yellowknife, with worthy events nearly

every weekend. Last Friday, I had the privilege of attending a reception for some pretty amazing young ladies. Twenty-four from Yellowknife's two high schools are involved in a national pilot program where they learn the construction trade. It is fairly intense, four afternoons a week and one and a half hours at a time for the next two years. At least some of these girls will likely graduate to a construction site one day, and we, as a society, will be all the better for it. I would like to salute them for breaking into what has traditionally been a male domain.

Another event I would like to mention is the Ball in the Mall, which is coming up this Saturday night . It is the second time the Yellowknife Association for Community Living has organized this major fundraiser benefiting the Abe Miller Centre. Many of you are probably familiar with the centre. It has been offering programs for people with intellectual disabilities for the past 20 years. The association's work is no longer limited to Yellowknife. Over the past few years, its programming has been expanded to several communities, including Rae-Edzo and Rankin Inlet. Programs are currently being developed for Inuvik. The Ball in the Mall is a fundraiser that raises more than money. It promotes community awareness and the acceptance of adults with a mental handicap into the community at large. I am pleased to say I will be attending the ball, and I would encourage all of you to support such a worthy cause.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Henry.

Seamus Henry Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, I listened to a CBC news report this morning in which a Mr. George Burne from the Central Selling Organization, De Beers was interviewed. Mr. Burne told us in a nutshell to pay attention to the jobs the northerners can obtain through diamond mining and not worry about other activities after that diamond process. I would invite Mr. Burne to spend some time in the north and listen to what northerners would like and find out what they would like from their diamond industry. Sometimes, Mr. Speaker, mining companies mine diamonds. The Central Selling Organizations or a similar organization market diamonds. The Central Selling Organization charges the mining companies 11 percent for that service to sort and market their diamonds. BHP's annual production is scheduled to start later on this year and it is estimated between $50 million and $600 million a year. From my calculation, that service to market their diamonds is going to cost them, regardless whether they go with CSO or some other organization, it is going to cost them $55 million a year.

I visited London and Antwerp, Mr. Speaker, and I found the costs to be extremely high. Much higher than I found them to be in Yellowknife. What I would suggest is that De Beers, with some consultation with the mining industry and our government, look at spending as much of that $55 million in the Northwest Territories as possibly can be accomplished.

--Applause

Mr. Speaker, if that service is provided in the north, the sorting for marketing, it will create infrastructure in the north. It will provide employment for northerners through security personnel that will be employed, maintenance people who will fix the equipment, banking and brokerage houses that will also come as part of that industry. It has been said we do not have the expertise to provide many of these services in the north. Mr. Speaker, I suggest that there are many things we do not have the expertise for, but we could bring it in. I would encourage that mining companies and so forth, do the same.

I would also demand, Mr. Speaker, that the federal government, the mining companies and the CSO, along with De Beers, listen to what the GNWT want for northerners so we can have some semblance in the north of self-sufficiency. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Rabesca.

James Rabesca North Slave

Thank you, Mr. Speaker. Mr. Speaker, today I would like to take this opportunity to congratulate one constituent of mine, Mr. Moise Rabesca, for his reappointment to the Stanton Regional Health Board. Moise is a very strong person that has provided a voice for our region on this important board. Over his past term, he has dedicated himself to provide his input in all decisions made by the board, and I am sure he will continue to do the same for this term. Once again, I would like to congratulate Moise on behalf of Rae-Edzo and region. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statement. Mr. Roland.

Floyd Roland

Floyd Roland Inuvik

Thank you, Mr. Speaker. Mr. Speaker, this past weekend I was able to travel home and touch base with constituents and my family. Mr. Speaker, I spoke to many people and held a constituency meeting while I was at home for the weekend. A number of issues came forward. There is a continuing concern with the education that is provided to the students and children of the Northwest Territories. There is concern in my community with the self-government process and what is happening. How will the Beaufort Delta self-government work and tie into the whole constitutional effort that we are going through as the Government of the Northwest Territories? Mr. Speaker, an issue that came forward as well is the ongoing concern with government and how it does its business. Mr. Speaker, as I said earlier in one of my other Member's statements, sometimes we need to nip things in the bud. They are like weeds because if they start growing, they will continue to grow. The concern out there, no matter how much information we put forward, the seed has been planted. It is a hard one to turn around. I would urge this government

and all Members of this Assembly that we need to start doing some weeding. We need to get the Weedex out and clean up our image and show the people of the territories that we truly represent the people and their interests in the Northwest Territories as we know it. It is time to put action our words. It is time to move forward. It is time to be responsible. Thank you.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Ningark.