Thank you, Madam Chairperson. Can the Minister clarify in regard to development funds to be matched by the GNWT Assistant on a rate of 2.1 ratio in a nine month period, after the price of gold is reached and remains at $400 US? Can the Minister clarify exactly what is meant by the 2.1 ratio and nine months after the price of gold has reached the $400 mark?
Debates of Sept. 25th, 1998
Topics
Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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John Todd Keewatin Central
Thank you, Madam Chairperson. It is pretty straightforward. We put in one, they put in two.
Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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David Krutko Mackenzie Delta
Can the Minister elaborate in the next section, where it refers to the nine months after the price of gold has reached and remains at $400? Does that mean the price of gold has to remain at $400 and ounce for nine months? Gold fluctuates, I would like to ask the Minister exactly what the intention of that wording is?
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Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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John Todd Keewatin Central
Mr. Voytilla was involved in the intimate detail of the arrangement here. If it is okay with you, Madam Chairperson, I would ask him to respond so I make sure I give full clarity to this question that seems to never want to end. Thank you.
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The Chair Jane Groenewegen
Thank you, Mr. Todd. For the record, I would like to indicate that Mr. Voytilla, the secretary the Financial Management Board has joined the Minister, at the witness table in the Chamber. Mr. Voytilla is going to answer the question. Mr. Voytilla.
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Voytilla
Thank you, Madam Chairperson. What it means is Giant is obligated to match our contribution 2 to 1 for exploration expenses. If they have not done that fully, and the price of gold has been over $400 per ounce, for nine months, they would have to start to refund the government, part of the contribution the government had made.
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David Krutko Mackenzie Delta
Thank you, Madam Chairperson. In the fluctuation of the price of gold, does the nine month thing, that there has to be a stable price of gold which has to be over $400 a month for nine months, is that what that is intended to mean?
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The Chair Jane Groenewegen
Thank you, Mr. Krutko. There was just a break in the sound, did you get the full question? You understood the question? Thank you. Mr. Todd.
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John Todd Keewatin Central
Yes, I can, Madam Chairperson. That is what it means, is the price of gold has to be $400 US or over, for an extended period of time. Correct.
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Committee Motion 6-13(6): Motion To Delete $1.5 Million From Bill 9: Supplementary Appropriation Act, No. 2, 1998-99
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David Krutko Mackenzie Delta
Thank you, Madam Chairperson. So in the Minister's statement, reaching and remaining at nine months, so if it fluctuated at any time, that means whatever amount of months that it accumulated before it drops to another rate below $400, is totally eliminated, so it means you have to start all over again, in order to require the nine-month clause in the agreement? Technically they may never have to pay back this money because the price of gold may never remain at $400 over a nine month period?
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John Todd Keewatin Central
That is correct, Madam Chairperson.
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The Chair Jane Groenewegen
Thank you. I have Mr. Krutko and then I have Mr. Miltenberger. Mr. Krutko.
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David Krutko Mackenzie Delta
Thank you, Madam Chairperson. Is this Minister saying this money may never be paid back to this government because of the terms we have agreed to lend it under, to reach and remain at the $400 level, which basically is an opt out clause for the mine, never to pay this money back?
At what point in time is the gold going to remain above $400 US, which is almost $600 Canadian? With what is happening in regard to the economic crisis around the world, gold prices also dropped and so has everything else.
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The Chair Jane Groenewegen
Thank you, Mr. Krutko. I believe Mr. Todd already answered that question previously, saying in fact your summary, Mr. Krutko, is correct. Mr. Krutko.
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September 24th, 1998
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David Krutko Mackenzie Delta
So is he stating from that comment that this loan may never be paid back to this government, based on the terms and conditions that it is presently under?
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John Todd Keewatin Central
That is correct, Madam Chair. The fact of the matter of this is an assistance program that is an effort to extend the life cycle of the mine, to ensure the fiscal benefits and revenues this government gets, to redistribute across the territories, remains solid in our fiscal projections, moving into the year 1999, 2000 and on.
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The Chair Jane Groenewegen
Thank you, Mr. Todd. Resource Management and Economic Development, not previously authorized, $1.5 million. Agreed?
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Some Hon. Members
Agreed.
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The Chair Jane Groenewegen
Agreed. Thank you. Forest management, special warrants, $9 million. Agreed?