This is page numbers 57 - 80 of the Hansard for the 13th Assembly, 6th 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 tax.

Topics

Members Present

Honourable Jim Antoine, Mr. Barnabas, Honourable Charles Dent, Mr. Erasmus, Mr. Evaloarjuk, Honourable Sam Gargan, Mrs. Groenewegen, Mr. Henry, Honourable Stephen Kakfwi, Mr. Krutko, Mr. Miltenberger, Honourable Don Morin, 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 57

The Speaker Samuel Gargan

Thank you Mr. Evaloarjuk. Good afternoon, Members. Before we begin today, I would like to remind Members that today is the 47th anniversary of a historic event for the Northwest Territories and for this Assembly. On September 17, 1951, for the first time some Members of the Council were elected to office.

There were three Members elected in 1951 to represent the whole Northwest Territories. They were, Mr. Mervyn Hardie, representing the Mackenzie North constituency; Mr. James Brodie representing Mackenzie South and Mr. Frank Carmichael, representing Mackenzie West. At that time, there were also six appointed Members on the Council, as well as the Commissioner, Major General Hugh Young.

There have been many changes in this Assembly and in the Northwest Territories as a whole since 1951. Forty-seven years ago we began the process toward responsible government. For the last 47 years, Members of this and previous Legislatures have worked to ensure that all residents of the Northwest Territories are represented responsibly and effectively.

With the creation of two new territories, we will see many more changes and will continue to break new ground. As elected Members, we will remain committed to the principle of responsible government that is reflective of the interests of all northern residents.

If I may, it is appropriate today that we have in the gallery four of the 19 returning officers, who will conduct the first election for the Nunavut Legislative Assembly. They are in Yellowknife for training this week. They are:

Mona Autut, Returning Officer for Baker Lake - from Baker Lake

Nancy Kalluak, Returning Officer for Arviat - from Arviat

Jean Kaniak, Returning Officer for Cambridge Bay - from Cambridge Bay

Sarah Kidlapik, Returning Officer for Akullik - from Repulse Bay

Welcome to the Assembly.

--Applause

Orders of the Day. Item 2, Ministers' statements. Mr. Kakfwi.

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. Mr. Speaker, this is an important and historic day for the Northwest Territories. This morning, Ministers and several MLA's participated in the sod turning ceremony for the NWT's first diamond sorting valuation facility.

--Applause

The facility at the Yellowknife airport will allow BHP Diamonds to sort their production. It is also where the federal government will assess the value of that production, and where sales will be made to qualified and approved northern manufacturers.

Mr. Speaker, the discovery and development of diamonds in the NWT continues to be a momentous time in the history of the north. It is now accepted nationally and internationally that the NWT will become a major producer of diamonds. It has also become widely known that this government is committed to providing northerners with jobs and opportunities in the value added industries. The GNWT appreciates the efforts that BHP Diamonds has made in listening and responding to our interests in providing the maximum benefits to northerners from the mining and production of diamonds.

The BHP diamond sorting and valuation facility is one step along this path. For BHP Diamonds and the manufacturers, the challenge now is to move forward along this path towards the NWT becoming the "Diamond Centre" of North America. Thank you.

--Applause

The Speaker Samuel Gargan

Thank you. Ministers' statements. Mr. Todd.

John Todd Keewatin Central

Thank you, Mr. Speaker. Mr. Speaker, the Workers' Compensation Board has experienced several years of exceptional financial results since finding itself in a deficit position in 1992. In 1997, it achieved an operating surplus of over $20 million. To date, the board has an accumulated operating reserve of over $35 million. These positive results can be attributed to several factors.

The total number of registered claims dropped last year to its lowest level in four years. On the other hand, increased economic activity in the NWT meant that employer revenue was higher than anticipated. Perhaps the most significant influence on the financial health of the WCB has been the success of its investment portfolio. In 1995 and 1996, the WCB made significant changes to its investment policy and asset mix model. A more aggressive and better balanced investment strategy has resulted in three successive years of solid investment performance. Mr. Speaker, since 1996, the WCB has consistently reflected its financial success by decreasing employer assessment rates and increasing benefits to injured workers.

Mr. Speaker, effective January 1, 1999, a further 35 percent decrease in the average assessment rate will take effect. This means the assessment rate for NWT employers will decrease from $1.87 to $1.21 per $100 of assessable payroll. This new average rate has been approved by the board of directors and will be maintained for three years. As well, Mr. Speaker, I will be introducing legislation in the Assembly this fall to increase the YMIR from $52,000 to $60,000, effective January 1, 1999.

--Applause

If approved, the new YMIR in the NWT will become the highest YMIR in the country.

This increase will allow the board to fully compensate 85 percent of the NWT workforce. The new YMIR will also provide greater coverage to the mining industry, where currently only 35 percent of the workers are fully covered. It should also be mentioned, Mr. Speaker, that increasing the YMIR will create inequities between those workers and their dependants who will be receiving pensions and those whose pensions are based on earlier YMIR's.

--Applause

The Speaker Samuel Gargan

Thank you. Ministers' statements. Mr. Antoine.

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, Members of the Assembly, late yesterday afternoon I learned through a general press release from NAV Canada that the federal Minister of Transport, the Honourable David Collenette, gave his approval to NAV Canada's fee proposal last Friday. I want to inform the House that I am greatly disappointed with the consistent refusal of NAV Canada and the federal government to recognize the impact the new fee structure will have on northern Canada.

NAV Canada's announcement makes much of the fact that, as a special concession to the north, it will phase in the new fees over a two year period. This is merely a delay. The pain will come in small cuts over time rather than all at once. Delays or deferrals were not what we had asked NAV Canada or the Minister of Transport to consider. NAV Canada also makes much of the fact that the former Air Transportation Tax is to be removed as the new fees are introduced to replace it. Unlike the Air Transportation Tax that was added to the fares of paying passengers, the new service fees are charged on aircraft movements - regardless of whether the aircraft is empty or loaded. Since the fees are based on aircraft movements, the air carriers must recover the fees from their passengers and freight. The new fees have and will impose added cost to the movement of freight. This is a new cost to northerners and the substance of our criticism. The announced deferrals do not change the fact that, in the end, fresh groceries and other essential air cargoes delivered to our northern and remote communities will cost more.

Next week I will be meeting in Regina with the federal Ministers and my provincial and territorial counterparts. I intend to take up the issue of the NAV Canada fees at the meeting and I have already had the item included on the agenda. The deferrals do give us time. With the support of this Assembly, the people who live in our communities and the northern air industry, I intend to pursue every avenue at our disposal to mitigate this added increase to our high cost of living in the north. Mahsi, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you. Ministers' statements. Item 3,

Members' statements. Mr. Evaloarjuk.

Mark Evaloarjuk Amittuq

(Translation) Thank you, Mr. Speaker. Mr. Speaker, I rise today out of concern regarding my visit to Pond Inlet and the issues I wish to bring to your attention. These problems still have not been resolved;

First of all, the school and gymnasium that was planned for the community was designed to be too small, and the foundation for the building remains very muddy. The marina/dock that was to be built still has not gone through. More and more people are buying their own boats and this facility is required for safety purposes, as Pond Inlet has no safe harbour. The travel routes by air also remain the same. In order to travel between Hall Beach, Pond Inlet and Arctic Bay, they still have to stop over in Iqaluit.

Also, they need a nursing station, which they were told they would get. To date, they have never heard anything more. They have had only two nurses all this time even though they should have five according to ratio and population numbers. There should also be nursing training provided for Inuit but this has also been discontinued.

Mr. Speaker, these issues I speak of will be brought forward in question period at the appropriate time. Thank you, Mr. Speaker. (Translation ends)

--Applause

The Speaker Samuel Gargan

Members' statements. Mr. Picco.

Edward Picco Iqaluit

Thank you, Mr. Speaker. Mr. Speaker, this past summer has seen unprecedented growth occur in Iqaluit. There are numerous single family and multi-plex housing units as well as office buildings and the new Legislative Assembly building being built. This activity has meant increasing numbers of people moving to Iqaluit and this has pushed resources to their limit. Housing shortages remain very serious and the homeless shelter was over flowing before it was closed down. A new shelter is now being built to help deal with the problem of homelessness. Mr. Speaker, with all this growth and activity the youth of Iqaluit have not been forgotten. With support from Frobisher Developments Limited they kindly donated a housing unit to be used as a youth centre. Over the past several months, I have chaired a committee of community volunteers that have tried to put together a sound plan to open the youth centre. We have had support from various organizations and companies Mr. Speaker, but we have had no luck with this government.

Our latest request for core funding to help us hire a full-time staff person who would be available to counsel youth and coordinate activities was rejected. Mr. Speaker, last Friday we met to review our options and the committee is scheduled to meet again tomorrow. We now plan on preparing a funding proposal to the federal government. Mr. Speaker, many of our youth are in crisis. The youth centre would be a safe place where they could hang out with their friends and we would have someone available to help and talk to. a trained councillor. I do not understand why this government cannot find a way to help fund such a worthwhile project.

We pay lip service to many of the problems affecting youth. When youth get in trouble or when we have to deal with suicide, crime or drug related problems, we talk about diversion type programs. Mr. Speaker a dedicated environment for youth with trained staff on hand is what is needed. A safe place to go. Later today, I will ask the appropriate Minister about these issues. Thank you, Mr. Speaker.

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, my statement today is in regard to the timing of contracts that have been let go in the Mackenzie Delta region. A lot of these projects that should have been constructed over the summer period are now just being put out for tender. A lot of the access clients who have made attempts to get the program in which their units are only now being constructed. With the short construction season in the north, Mr. Speaker, it is crucial that these tenders be let go and opened sooner so we can take advantage of the summer season and the work that is needed in a lot of our smaller communities which depend on these small projects. Mr. Speaker, I will be asking the Minister questions later on the timing of allocating contracts, tenders for capital projects and housing units in our communities. I do not think it is appropriate for contracts be let go in August and that construction starts in September or October. These are essential projects that communities look forward to for the work and also the needed construction during that short period of the season. Thank you, Mr. Speaker.

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Ootes.

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. Mr. Speaker, my comments today will be in regard to the economic strategies that the government of the NWT has undertaken. This summer we learned that the GNWT is undertaking the development of two economic strategies - one for the NWT in the west here and one for Nunavut. There is no question in my mind of the importance of strategizing our economic future. I have had concern expressed to me by several consultants and people in Yellowknife about the short time frame that the request for proposal was advertised.

In preparing a proposal for a $500,000 project usually requires a good deal of preparation time. I would say a normal minimum time for a project of this size would be about three weeks, but the government only allowed ten days. The question is why was such a short time frame given for submitting proposals for such a major project?

In addition to this question, I have my own concern with respect to our process of consulting MLAs in this matter. In a news release dated March 31st, Premier Morin announced plans to create an economic strategy and in that release he is quoted as saying: "I look forward to working with my cabinet colleagues and the standing committees of the Legislative Assembly to make sure this strategy moves forward in a coordinated manner..." The release concludes by saying that, "It is anticipated a preliminary schedule and framework outlining the strategy will be available for discussion at the next session of the Legislative Assembly", namely the May session. That preliminary schedule and framework was never made available at our May session, nor was our Standing Committee on Resource Management ever consulted.

This government proceeded without input from ordinary MLAs, I do not see where public consultation is taking place, nor that there is visible involvement by community or business groups in this strategy. What does that mean? Are we regurgitating government reports and working with the bureaucrats? I think it should be noted, not everyone is a happy camper here on the western front, nor perhaps on the eastern front in Nunavut, with this development. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Members' statements. Mr. Erasmus.

Roy Erasmus Yellowknife North

Thank you, Mr. Speaker. Mr. Speaker, I rise today to also talk about the sod turning at the BHP valuation sorting facility that I had the opportunity to attend at noon hour. Mr. Speaker, I can honestly say that this is a momentous occasion. This is the first such facility in North America and there will be around 15 jobs to start and more will be coming of course with other mines opening and greater development. Mr. Speaker, this is a win-win situation. First of all BHP gets its facility, secondly, the City of Yellowknife gets much need tax dollars at the full economic rate. There were no concessions made. Thirdly, the valuator as a consortium of the Yellowknives Dene First Nation, the Dogrib First Nation and the Kitikmeot Inuit Association. These three birthright organizations will be able to get jobs and other economic opportunities from this venture. I say birthright organizations because there are three land claimant groups.

Mr. Speaker, this could not have happened without the hard work of a lot of people and I believe they are to be congratulated for a job well done. Hopefully, this is just the start of a full value added secondary diamond industry in the north, meaning diamond polishing, jewellery making and so on. Mr. Speaker, this of course means more jobs and less social programs for not only Yellowknife, but also for the surrounding communities. Indeed, we can say we have a bright and glittery road ahead of us. Thank you.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Steen.

Vince Steen

Vince Steen Nunakput

Thank you, Mr. Speaker. Mr. Speaker, I would like to take this opportunity to complement the actions of the mayor and hamlet council of Holman for their efforts and determination to work closely with the GNWT Division Secretariat over the last few months to assure the residents of Holman are not adversely effected by division in April 1999. The Mayor, Mr. Gary Bristow, and council have had numerous meetings with officials of GNWT departments to assure a smooth transition of government services from the Kitikmeot regional office to the Inuvik regional office. On behalf of the residents of Holman, I wish to thank the Honourable Kelvin Ng and the Honourable Jim Antoine, for travelling to the community of Holman in July of this year to meet with the hamlet council to discuss division issues, as well as other O and M and capital projects.

Mr. Speaker, I encourage officials from all the departments to continue to work closely with the mayor and council, as well as myself as the MLA for Nunakput on the ongoing divisional issues. I wish to thank the Premier, Honourable Don Morin for his assistance in this matter as well. I hope the end result will be a community that will experience a minimum of negative impacts resulting from division into two new territories. Thank you, Mr. Speaker.

The Speaker Samuel Gargan

Members' statements. Mr. Rabesca.

James Rabesca North Slave

Thank you, Mr. Speaker. Mr. Speaker, today I rise to inform this House that my region is hearing how important education is. Over the past number of years, our leaders have been telling young and old that education is the backbone to a better life. We all try to ensure that our children have the best we can offer. Be it a good warm home, food on the table, a caring and loving family, it is our duty as parents to ensure these things are provided. It is also our duty to ensure our children can achieve their goals. We must enforce and encourage our children to attend school and get as much education as is possible.

With this in mind, I would like to inform this House that for this current school year we have had tremendous response for individuals to attend post-secondary schools as well as getting a high school education. This year we have 47 students out attending post-secondary schools throughout Canada. The Chief Jimmy Bruneau High School has had an increase of almost 100 students over the same period last year. This is all very good news for our region and our residents.

We cannot stop now, we must continue to encourage our residents to get educated, our government must continue to develop new and interesting programs and methods that focus on our ever changing environment. New opportunities are becoming available and we must respond to these. To end, I would like to commend our students for their achievements and keep up the good work. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Thank you. Members' statements. Mr. Miltenberger.

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. Mr. Speaker, almost three years ago when we took office, one of the first hard and necessary tasks we had to do was to balance the budget and instituted a deficit measures act to which everybody had to contribute, including our employees, with their wages and benefits rolled back. It is now half way into the fiscal year and our last year in office, and while the excluded members of our civil service and Hay Plan people have been able to realize some of the benefit of their hard work now that the budget is balanced and we see a surplus projected, unfortunately the vast majority of our employees sit empty handed with their deficit and reduced wages. Still the only wages that they get with no recognition for their contribution that they put into this balancing of the budget. There are tens of millions of dollars on the table waiting to go into the pockets of the people who worked long and hard for this government and continue to do that.

It is my sincere hope that they will be able to soon see that money in their pay cheques and they will put that back into the economy of the north and their communities and they should benefit as soon as possible for all the hard work and hardship they had to put up with as part of their contribution to balancing the budget. So I would strongly encourage both parties to not forget and loose sight of the fact that the people we represent are the people in the communities. This should not be a high level political issue. It should not be driven from Ottawa. It has to get resolved. One of the key seasons of the year, Christmas time is coming, gifts for our young ones and children all sorts of important issues. Mr. Speaker, my position on this is let the people have a vote on this and let us get the money into the pockets of the people who have worked hard and have earned every penny of it. Thank you, Mr. Speaker.

--Applause

The Speaker Samuel Gargan

Members' statements. Mrs. Groenewegen.