Oral questions. Supplementary, Mr. Krutko.
Debates of May 27th, 1998
Topics
Return To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440
The Speaker Samuel Gargan
Supplementary To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440

David Krutko Mackenzie Delta
Thank you, Mr. Speaker. In regard to the whole area of marketing, the reason I asked the question is there two institutions in my riding, the Aklavik Fur Shop and also the Fort McPherson Canvass Shop, which make quality products, but I think we have to start linking it to the whole marketing, as the Minister stated, where we seem to be lacking. The reason I asked the question of the Minister is, is there a report or basically, a marketing strategy or plan which is presently being developed in-house through his department in relation to marketing of northern crafts and products through the Arctic Co-operative Institute?
Supplementary To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440
The Speaker Samuel Gargan
Mr. Kakfwi.
Further Return To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440

Stephen Kakfwi Sahtu
Thank you, Mr. Speaker. There is not a single document which I can provide for the Member that would provide the information he is seeking. I think I can prepare some sort of paper which could summarize in general terms the approach we are taking to this problem. The NWT Development Corporation has been reorganizing for the last two years some of the goods that they have historically produced through subsidiaries have been assessed as to whether or not there is actually a market for the things. A classic case is moccasins made by Dene craft people. We produce literally hundreds and hundreds of moccasins. They flood the stores for a certain price. The question comes up, is that really what the southern market is interested in or would they be more interested in some sewing to hang on the wall that is the sewing part of the flower designs and have those produced on a smaller scale for wall hangings or place mats. These types of questions have been asked.
We produce tents in Fort McPherson, but we do not have a reliable client who says we will require so many of a certain type of your goods every year. We look for it and we have been looking throughout Europe and the United States for markets and we are trying to identify ones which we can realistically accept, knowing that we can meet the requirements of the people whom we are dealing with. The Co-operative movement would be another agency that you would have to actually inquire as to their strategies in dealing with marketing of the goods that are produced. I can produce a summary document that would explain the work we have been doing and marketing for the Development Corporation for the last couple of years. Thank you.
Further Return To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440
The Speaker Samuel Gargan
Oral questions. Supplementary, Mr. Krutko.
Supplementary To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440

David Krutko Mackenzie Delta
Thank you, Mr. Speaker. That is exactly the point I am trying to get at, is that there has to be more initiatives made by this government to work along with organizations such as the Arctic Co-operative Limited, aboriginal organizations and the Development Corporation to assist us in regard to what they do best, which is basically selling products. I think we are good at making them, but we have to have someone out there to do the selling where there are a lot of stores throughout the Northwest Territories. We have to start taking advantage of the experience and the skill that these organizations have in regard to the Arctic Co-operatives Limited who has been here for 25 years. It has taken them years and years to develop that skill and quality, so I think it is important. If the Minister can tell me or report back to this House on the number of initiatives that have been taken not only with the Arctic Co-operatives Limited but other institutions and agencies such as aboriginal corporations? Can you do that?
Supplementary To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440
The Speaker Samuel Gargan
Mr. Kakfwi?
Further Return To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440

Stephen Kakfwi Sahtu
Thank you, Mr. Speaker. I would be pleased to provide a prepared document that would explain what the difficulty is and some of the ways in which we are trying to address the particular problem we face, how we think it can be resolved and how the Co-operative movement is addressing it as well. We would be prepared to look at it and provide detail with the different initiatives and projects and development corporations we have, and subsidiaries across the north. Thank you.
Further Return To Question 556-13(5): Arctic Co-operative Marketing Strategy
Question 556-13(5): Arctic Co-operative Marketing Strategy
Item 6: Oral Questions
Page 1440
The Speaker Samuel Gargan
Oral questions. Mrs. Groenewegen.
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1440

Jane Groenewegen Hay River
Thank you, Mr. Speaker. Mr. Speaker, my question today is for the Minister responsible for telecommunications. Mr. Speaker, on February, 1997, 69 first-world and developing countries agreed to liberalize their basic telecommunication services under the general agreement on trade and
services, negotiated through the World Trade Organization. Most participants in the agreement, including Canada, subscribed to a pro-competitive regulatory principal. How will NorthwesTel's request for this $30 million subsidy be reconciled in view of the general agreement on trade and services signed by Canada and 68 other countries? Thank you, Mr. Speaker.
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
The Speaker Samuel Gargan
The Minister responsible for Public Utilities. I am not too sure. Could I get some direction from the Premier, please?
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
Don Morin Tu Nedhe
Thank you, Mr. Speaker. Mr. Antoine will answer that question. Thank you.
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
The Speaker Samuel Gargan
Thank you. The Minister responsible for Public Works and Services, Mr. Antoine.
Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
Jim Antoine Nahendeh
Thank you, Mr. Speaker. Mr. Speaker, the honourable Member was talking about a World Trade Organization motion, which I am not aware of. It is not a document tabled in the House, so I am not familiar with the document. However, understanding the Member's statement in regard to NorthwesTel requesting additional support to carry on the service of providing telephone services in the north, I just wanted to perhaps, do some background to put it in context so it is understood where they may be coming from.
Mr. Speaker, the CRTC initiated the process in early 1997, on the introduction of long distance competition for NorthwesTel's operating area. The Government of the Northwest Territories is registered as an interested party. In June of that year, CRTC conducted hearings in Yellowknife and the Minister of the day made verbal presentations, stating the views of this government and as well, followed through with a written formal position in October.
The Government of the Northwest Territories indicated support for this long distance telephone competition in the north, as long as every citizen in the Northwest Territories continues to have access to affordable long distance telephone service.
The government also called for a way to subsidize high cost service areas, most likely to come from the long distance revenues from telephone companies themselves. This may be the area where NorthwesTel is finding difficulty in trying to deal with long distance competition and at the same time, provide local services in the smaller communities, as they do both now. As long distance competition comes in, then are they going to be able to continue to be able to provide services at the community and regional levels?
As a result of discussion, there is a process in place now, Mr. Speaker. As a result of the discussions and the decision that was issued by the CRTC in February, local access rates will be increased in 1998 and 1999 in order to allow NorthwesTel to prepare for long distance competitions which will begin July 1, 2000. Before that date, there will be a CRTC process on deciding the actual detailed terms of competition such as what rate the long distance providers must pay Northwestel for access to their system. The increase in local rates is to be balanced by a decrease in long distance rates in 1998/1999. This change should not cost this government any extra money. However, it is going to cost more for people at a community level to use telephone service. The process that I mentioned was introduced by the CRTC, issued Public Notice, calling for consideration of issues associated with providing telecommunication service to high cost areas. All the telephone companies in Canada are involved. At stake is the potential establishment of a national fund to be used in subsidizing high cost serving areas such as the Northwest Territories and our smaller communities.
The Government of the Northwest Territories is very much involved in these proceedings and submitted a formal position supporting the introduction on competition, provided that a high cost serving area fund is established. This government believes that without such a fund, competition could place a financial burden on Northwestel that could put at risk the local and long distance telephone services now available in our remote communities. I think that, Mr. Speaker, trying to put this issue in context is perhaps where the honourable Member is coming from. Thank you.
Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
The Speaker Samuel Gargan
Thank you. Oral questions. To remind the Members about written questions and oral questions that if the Members require detailed, long responses then, I ask that you consider it as a written question. Supplementary, Mrs. Groenewegen.
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441

Jane Groenewegen Hay River
Thank you, Mr. Speaker. I believe that Mr. Antoine may have had this within his answer some place, but could I find out, please, what this government's position is on the subsidy proposal for Northwestel?
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
The Speaker Samuel Gargan
Mr. Antoine.
Further Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
Jim Antoine Nahendeh
Thank you, Mr. Speaker. Mr. Speaker, in our presentations to the CRTC hearings last year, the government's position was that we took a formal position, supporting the introduction of competition as well as that a fund be established for providing the high cost serving areas. In a way, that may be a way of subsidizing NorthwesTel's request for this subsidy. Thank you.
Further Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441
The Speaker Samuel Gargan
Oral questions. Supplementary, Mrs. Groenewegen.
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1441

Jane Groenewegen Hay River
Thank you, Mr. Speaker. It would appear that there has been a subsidy in some remote and rural areas for the past seven years. It would appear that a subsidy of approximately $2.5 million per year was ample to address that. Does the Minister know why NorthwesTel projects that with the introduction of long distance competition, they are going to require $30 million worth of subsidies? Thank you, Mr. Speaker.
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1442
The Speaker Samuel Gargan
Mr. Antoine.
Further Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1442
Jim Antoine Nahendeh
Thank you, Mr. Speaker. Mr. Speaker, I do not know why NorthwesTel wants $20 million. I am just going to speculate that if long distance competition comes in and an outside company would probably grab the lucrative long distance market in our major communities that would leave the outlying smaller communities without a way of subsidizing their operation as it currently is. I am just speculating on that. Thank you.
Further Return To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1442
The Speaker Samuel Gargan
Oral questions. Final supplementary, Mrs. Groenewegen.
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1442

Jane Groenewegen Hay River
Thank you, Mr. Speaker. It does not sound like NorthwesTel is very optimistic about their fortunes when competition arrives. In fact other large monopolistic companies have had to sharpen their operations and have done very well in competitive market places in other jurisdictions. Would the Minister concede or acknowledge that competition may actually lower costs to consumers and actually improve local and regional service as has been proven when monopolies have been challenged by competition in other areas in the past? Thank you, Mr. Speaker.
Supplementary To Question 557-13(5): Telecommunication Services In The Nwt
Question 557-13(5): Telecommunication Services In The Nwt
Item 6: Oral Questions
Page 1442
The Speaker Samuel Gargan
Mr. Antoine.