This is page numbers 357 - 395 of the Hansard for the 13th Assembly, 7th 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 highway.

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Further Return To Question 139-13(7): Auditor General's Report On Development Corporation Operations
Question 139-13(7): Auditor General's Report On Development Corporation Operations
Item 6: Oral Questions

Page 369

The Speaker Samuel Gargan

Oral questions. Mr. Henry.

Seamus Henry Yellowknife South

Thank you, Mr. Speaker. We have heard many questions posed to the Minister of Resources, Wildlife and Economic Development, and I believe I was the only one who has not asked him any questions, so I would not want him to feel left out. So I will address my question to him, Mr. Speaker. The Minister and his officials, sometime ago, made a presentation to the Infrastructure and Resources Committee on the Development Corporation, which I found most informative. Mr. Speaker, it was clear then and it is even more clear in the Main Estimates that we are looking at that there is a lack of funds to support the present corporation's endeavour, not to mention looking at new programs. Mr. Speaker, my question to the Minister is, could the Minister tell the House how proposals for funding are evaluated for consideration by the corporation to joint venture with or to financially support? Thank you, Mr. Speaker.

The Speaker Samuel Gargan

The Minister of Resources, Wildlife and Economic Development, Mr. Kakfwi.

Return To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. Mr. Speaker, I believe that there is some criteria that the Development Corporation uses to decide which projects to become involved in. What type of subsidiaries or initiatives that could be supported. For instance, we get involved in buying shares in certain businesses and we become partners in certain business initiatives.

How those decisions are made, I would have to provide that to Members at a later date as I am not privy to the exact criteria that are used. For instance, if subsidies are going to be provided, what is the percentage of the subsidy in relation to the overall cost of the operation. That is one of the issues that is going to be raised. As I said, some of the subsidies that we fund, all of them have subsidies that are approved to the level by the Financial Management Board. In some cases, the amount of funding that is directed by the Development Corporation to the subsidiaries has gone far beyond the level that was approved by the Financial Management Board. We are working on that to make sure we operate in a way that is acceptable to the FMB and to the Auditor General of Canada. Thank you.

Return To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

The Speaker Samuel Gargan

Question period is over. Mr. Henry do you wish a final question? Supplementary, Mr. Henry.

Supplementary To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

Seamus Henry Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, we have heard many times about having funds evenly distributed in this House between the regions. Can the Minister tell us if the Development Corporation funds are evenly distributed through all the regions of the Northwest Territories? Thank you, Mr. Speaker.

Supplementary To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

The Speaker Samuel Gargan

Mr. Kakfwi.

Further Return To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. Some of the subsidiaries that we have operating in our communities require less than $100,000. For instance, one particular community would take $93,000 as an operating subsidy. Others would be approved for $380,000, in fact, in excess of $700,000 and the projections are even higher as to perhaps exceed $1 million. We are working to make sure that the subsidiaries operate within acceptable guidelines and that we are not taking money from other places in order to off-set the losses that some of them incur. That the subsidiaries should operate within an approved amount each given year and that if they are not, then it is the responsibility of the Development Corporation and the board to set up a plan to address this. As I have said earlier, there are other communities and other initiatives that could be funded if we shore up our present operations and make sure that they do not become a drain on the very limited resources we have at this time.

In response to the Member's question, we do not allocate on a regional basis or on a community basis. It is a first-come, first-served basis. The different subsidiaries have been set up so there is no way that we can say that it is not fair the way in which we disburse the funds that the Development Corporation has to operate with. Thank you.

Further Return To Question 140-13(7): Development Corporation Project Evaluation Criteria
Question 140-13(7): Development Corporation Project Evaluation Criteria
Item 6: Oral Questions

Page 369

The Speaker Samuel Gargan

Item 7, written questions. Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

My question is to the Premier, Jim Antoine.

1. Was the decision to decentralize personnel functions to the departments a cost-saving measure? How much is being spent annually for all human resources costs (staffing, advertising, et cetera) currently compared to what was spent prior to decentralization?

2. Is there evidence that the quality of service has improved since decentralization?

3. How many people were staffed in the Personnel Department prior to decentralization?

4. How many people are currently staffed in the area of human resources in each department?

5. Prior to decentralization, how many aboriginal senior staff were in the Personnel Department and in Financial Management Board Secretariat (FMBS)? How many senior human resources personnel in this government are non-aboriginal?

6. Since the decentralization of the Personnel Department, how many appeals have been filed annually? How many have been upheld?

7. What training has been provided to departmental human resources staff?

8. Have there been any government-wide professional development initiatives?

9. How is consistency of the staffing process being maintained across the GNWT?

10. Who is responsible to deal with individual complaints from the public or to respond to technical questions from human resources staff?

11. What are the current affirmative action statistics by position in each department? What were the affirmative action statistics prior to decentralization for each department?

12. Is there evidence that human resources services have improved to each department and the general public since decentralization?

13. Since the decentralization of Personnel, is there evidence that the relationship between the general public and the government has improved?

14. Is there any evidence that the departments and the general public view the staffing process as more positive now as compared to before decentralization?

15. Are staffing procedures consistent throughout the Government of the Northwest Territories?

16. Who has the authority to ensure staffing procedures are consistent among the departments?

17. Where can a person go if they want to file a complaint in relation to the staffing procedures for various departments?

The Speaker Samuel Gargan

Written questions. Item 8, returns to written questions. Mr. Steen.

Vince Steen

Vince Steen Nunakput

Thank you, Mr. Speaker. Mr. Speaker, I have a return to written question asked by Mrs. Groenewegen on April 23, 1999.

Report of the Minister of Public Works and Services on Issues Raises by the Conflict of Interest Commissioner

1. The decision to proceed with an independent third party review of the issues raised in the Report of the Conflict of Interest Commissioner was taken by the deputy minister of the Department of Public Works and Services in consultation with the former Minister of Public Works and Services, the Honourable Floyd Roland.

2. The legal consultant was recommended by the Financial Management Board Secretariat and chosen by the Department of Public Works and Services after consultation with the Department of Justice. Cabinet approved award of the negotiated contract on February 12, 1999.

3. The review was conducted by Mr. Graham McLennan, a partner in McLennan Ross, a well respected Edmonton law firm with expertise in labour law. Mr. McLennan is a Member of the Law Societies of Alberta and the Northwest Territories and has extensive experience at all levels of the court system, as well as boards of inquiry. He was appointed as an Inquiry Officer under the Expropriations Act of Alberta in 1993, acted as co-counsel for a major participant at the public inquiry into the collapse of the Principal Group of Companies and is co-counsel for the RCMP Public Inquiries Commission.

4. The cost of the review was approximately $47,000.

Thank you, Mr. Speaker.

The Speaker Samuel Gargan

Returns to written questions. Item 9, replies to opening address. Item 10, replies to budget address. Mr. Ootes.

Budget Reply 4-13(7)
Item 10: Replies To Budget Address

Page 370

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. The budget continues on a fiscally responsible course. We have maintained this over the last several years, ensuring that the books are balanced. It continues to fund the same programs perhaps with a few adjustments here and there, but no radical changes. The budget contains no surprises, except for the decision to use up the surplus. Budgets generally have two purposes. One is to balance the books, and two, is to give a new vision and a renewed momentum to our economic and social priorities. I was surprised that so much emphasis was placed on the Minister's Forum on Education and then the budget included little funding to address the forums recommendations. Now a similar forum

is planned for social services. I hope the approach will be different. We are quickly exhausting the public's patience with all our consulting and no action because of financial restrictions.

On another matter, every time I have gone to discuss matters with people delivering outreach programs like those at the YWCA, the NWT Seniors Society, and the Yellowknife Women's Centre, there is constant discussion of the need for multi-year commitments so staffing can be maintained and people can build on program successes.

On the economic and job creation front, the government just finished spending in the neighbourhood of $0.5 million dollars on developing a new economic strategy. It was my impression that the economic strategy was to identify areas where we could find dollars to invest in the tourism industry, improve existing road systems, further develop the Roads to Resources Initiative and continue building community infrastructure and improve social needs. There is a need to stimulate private sector investment to build a sustainable base for jobs and profits. We need initiatives that will foster trade and investment to bring new money and jobs into our territory. Our small business sector continues to play an ever greater role in our economy. We need incentives to encourage the start-up and expansion of small and medium-sized northern businesses. The economic strategy should have been designed to address our budget needs. We need to figure out how to achieve our potential. I had hoped the economic strategy would do that.

For the immediate future, no sector of the economy holds more promise than the mining industry. Our gold mines have been through a lot of upheaval over the last several years. In the immediate short term, Giant Mine may continue operations, but we need a long-term outlook for this particular operation. As a government we need to be proactive in regard to the problems of Giant Mine. We should be seeking the support of the federal government for an employee/business consortium approach, or to seek other opportunities for operators of this mine, and a plan to address the arsenic cleanup. I would like to see the federal government, through its Department of Indian and Northern Affairs, focus on the economic development needs of our gold mines and our need for value-added industries in the diamond business. Canada has over the last decade sold off much of its gold reserves. Instead of protecting a major segment of our mining industry, the sell-off has helped drive the price of gold to all-time lows.

As a matter of fact, last month the federal government continued with another large sell-off of gold. Canada is a gold producing country. The federal government needs to be constructive and show confidence in the industry by buying gold. At today's low prices, gold is a bargain for government to buy and there are spinoff benefits. The purchases would help stabilize gold prices, and give Ottawa added revenues from royalties from income taxes. In the local economies it would mean employment and corporate taxes to communities. I have suggested before that the northern development part of the DIAND portfolio deserves more attention from the Minister. The north is a large storehouse of mineral, oil and gas wealth. When the rest of Canada benefits from the royalties reaped from these resources, surely we have a right to demand fair effort from the federal government in ensuring the long-term benefits of the north which also benefit all of Canada.

There is an urgent need for the settlement of land claims and then to settle the Northern Accord so that northerners can control northern resource development. Funds received under a Northern Accord can be used to improve such areas as education, health and social services, youth programs and economic development.

That is my statement, Mr. Speaker. I know it is rather short in comparison to other Members, but I thought I would pass on my comments and I appreciate all the Members being here. I know it was a very interesting statement. Thank you, Mr. Speaker.

Budget Reply 4-13(7)
Item 10: Replies To Budget Address

Page 371

The Speaker Samuel Gargan

Thank you. Replies to the budget address. Again, for those Members that are not aware, this is the final day for the budget reply. Mr. Rabesca.

Budget Reply 5-13(7)
Item 10: Replies To Budget Address

Page 371

James Rabesca North Slave

Thank you, Mr. Speaker. As we now start our journey in this new territory of ours we find many challenges facing us. Through my review of the Budget Address presented by the Honourable Minister of Finance, I can see many of my concerns are being addressed, however, the main problem that I see is we still need additional funding.

Although we are spending additional dollars in education which will help assist in solving some of the problems of overcrowding in classrooms, I feel this is far below what we should be allocating. We have many areas within education that must be addressed and this budget does not go far enough.

I am rather disheartened that the Working Together Program will only be extended for one more year, even though this has proven to be a very good program with a good number of young northerners employed. I think this should be extended for future years as well. We do have some very good programs within the education, culture and employment portfolio, however, the one thing that is needed and we have heard over again is the need for more dollars to be allocated.

As I continued to review this Budget Address, it was good to see a focus to increased funding for recruitment and training local residents for careers in the health and social services area. We have heard many times how the nursing staff in any community are over worked and are constantly under pressure, which does result in burnout and relocation to the south. I hope for the good of our residents that these initiatives will help relieve the stress and pressures that our staff currently face. We must also look at ways that we can assist residents with the many social problems that our communities face. Spousal assault, alcohol and drug abuse are all becoming very prevalent in today's society and we must react to these problems now.

Every year across this country we lose loved ones and property as a result of fire. Over the last number of years we have witnessed many terrible tragedies, communities losing their schools, their stores and houses. We acknowledge the need for a well-trained fire department and good equipment for all communities. Through this Budget Address it looks like we may be heading in the right direction. It is very important to allow communities the ability to protect against fire. I hope future budgets will continue to stress the need for further fire prevention and support.

I have heard that the Down Payment Assistance Program has been a success and it is good to see many residents are taking advantage of this, however, I wonder how many residents in the smaller communities were able to take advantage of this. We must also look for ways to increase housing units within our communities. We need affordable housing for all residents across our territory.

Throughout the next year we have many important issues to deal with. If we can get our people trained as we are attempting to do with the continuation of some programs, we must also be in the position to have jobs available. By supporting and developing local economies within all our communities of the NWT our people will find jobs and will create business opportunities. It is important that we realize everything does not have to be diamond related. We have many areas that local people can create and develop successful businesses within all communities. It is good to see the lustre of diamonds as it is an important part of our lives for many years to come, but there is much more to develop.

Our territory is vast and we are blessed with renewable and non-renewable resources that are waiting for us to utilize and develop. We must work together, to ensure the NWT as a whole prospers not just the large centres. I feel an economic strategy for the territory is essential to a better economic future, however, I also feel this is more important at the local community level and the communities should be encouraged to develop their own strategy, for it is at the community level that most of our economic activities take place.

In closing, I am hopeful that this year's Budget Address covers a good number of solid initiatives and programs that we need to provide for our residents and businesses. However, the one main problem that this government still faces is the lack of dollars to continue to upgrade our infrastructure, rebuild our sagging economy, provide training at all levels. I continue to believe that our government will be able to negotiate a win-win situation with the federal government over the royalties issue. I would also like to congratulate the Honourable Minister of Finance for this year's first, truly, NWT budget. Thank you, Mr. Speaker.

--Applause

Budget Reply 5-13(7)
Item 10: Replies To Budget Address

Page 372

The Speaker Samuel Gargan

Thank you. Replies to the budget address. Item 11, petitions. Item 12, reports of standing and special committees. Item 13, reports of committees on the review of bills. Item 14, tabling of documents. Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. I would like to table a letter from the Inuvik Regional Health Board in which they attach a motion in regard to requesting the Minister of Health to return northern referral dollars to the Inuvik Regional Health Board.

The Speaker Samuel Gargan

Thank you. Tabling of documents. Item 15, notices of motion. Item 16, notices of motion for first reading of bills. Item 17, motions. Item 18, first reading of bills. Item 19, second reading of bills. Item 20, consideration in committee of the whole of bills and other matters. Bill 17, Appropriation Act, 1999-2000, and Committee Report 1-13(7), with Mr. Krutko in the chair.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

April 26th, 1999

Page 372

The Chair

The Chair David Krutko

We are dealing with Bill 17, Appropriation Act, 1999-2000, and Committee Report 1-13(7). What is the wish of the committee? Mr. Ootes.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 372

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Chairman. I recommend that we continue with Bill 17, Appropriation Act, 1999-2000, and the Department of Public Works and Services followed by the Department of Transportation.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 372

The Chair

The Chair David Krutko

Thank you, Mr. Ootes. We will be dealing with the Department of Public Works and Services after a short break.

--Break

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 372

The Chair

The Chair David Krutko

I would like to call the committee to order. We are reviewing the Main Estimates. We are dealing with the Department of Public Works and Services. At this time I would like to ask the Minister responsible if he has any opening comments. Mr. Steen.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 372

Vince Steen

Vince Steen Nunakput

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Public Works and Services main estimates for the fiscal year 1999-2000. The estimates propose a department operations and maintenance budget for 1999-2000 of just over $37 million and a capital budget of just under $1.5 million. The department will have approximately 200 positions funded within the appropriation. In addition, the department manages the petroleum products revolving fund and provides systems and communication services, which are funded through charge back to client departments. A further 32 positions are associated with these non-appropriated activities.

Mr. Chairman, this proposed budget is very close to the funding level anticipated in the department's division plan. Through normal staff adjustments over the next year or two, it is expected that PWS will decrease to the planned size. In the meantime, the department will be carrying a number of extra positions and will have to manage those within the current budget. Many of these extra positions will be providing support to Nunavut in 1999-2000, through Nunavut service agreements.

There are two unique challenges for the coming year, Mr. Chairman. First, we will be continuing to support our former colleagues in Nunavut through service arrangements. Contracts have been established for service in the areas of asset management, petroleum products, and systems and communications. The second challenge will be in the preparation and response to the Year 2000. In addition to ensuring that the department's own information systems and workstations continue to function, we also have to ensure that the government's mainframe computer systems, telecommunications networks and building systems are ready for the century turnover. We have our computer systems ready. Non-complaint workstation computers and servers in the department have been upgraded or replaced. Work is also proceeding on embedded computer services, such as those in vehicles and building systems. Staff have worked with many of the manufacturers of building systems to review testing and updating procedures. PWS employees have been visiting each community in order to review GNWT assets and ensure service disruptions are avoided. Staff will also be giving presentations on Year 2000 compliance and providing assistance to other departments, communities and agencies. Overall, Public Works and Services and most GNWT buildings will be well prepared when the calendar turns to 2000.

Another departmental objective concerns the assessment and remediation of environmental liabilities at community tank forms. PWS has made substantial progress. In June, 1998, the department hired Deton'Cho Corporation, in partnership with Rescan Environmental Services and Vista Engineering, to do environmental assessments of community tank farms. In addition to inspections and sampling, a remediation plan will be designed for each location. This year plans will be developed for several communities assessed in 1998-99. These include Fort McPherson, Tsiigehtchic and Tuktoyaktuk. Assessments will be done this year in Paulatuk, Sachs Harbour, Rae Lakes, Wha Ti, Wekweti, Wrigley, Trout Lake, Nahanni Butte, and Jean Marie River. Mr. Chairman, I want to conclude my opening remarks by saying that I look forward to the year ahead of us. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 373

The Chair

The Chair David Krutko

Thank you, Mr. Minister. Does the standing committee responsible for the Department of Public Works have any comments? Mr. Rabesca.