This is page numbers 297 - 344 of the Hansard for the 14th Assembly, 2nd 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.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. I would like to look at an area regarding preparations for eventual gas development down in the Mackenzie Valley. In some of the briefing information that the department supplied to our committee, under a number of the department's initiatives, it talks about things underway under oil and gas. Under corporate management, reference to the Mackenzie Valley Development Planning Process, which I understand has petroleum and gas development at its core. Under environmental protection, there is reference to gas development. Under trade and investment, developing a report on issues related to value added potential. Under community, economic development services, developing economic models. Minerals, oil and gas, of course, three or four bullets talked about gas and pipeline development.

Our committee was also informed from a letter by the president of the Canadian Association of Petroleum Producers (CAPP) that organization has put together a northern group focused on gearing up for this. My question, Mr. Chairman, while all these things are taking shape under the Department of Resources, Wildlife and Economic Development, does the Minister see a kind of central or coordinating agency that will be an umbrella, that will be a central focus for not only this government's work, but other government's departments as well in gearing up for this?

The context of my question, I guess I can relate it back to the diamond development. When that potential really started to become evident early in the 1990s, government was scrambling to catch up on its intelligence and get up to speed on its capacity. I wonder if we are seeing the same thing with the pipeline development. Is the government trying to look at this in a coordinated fashion?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. We like to think we are. We know that we have to work with the producer or the developers as well as with the regulators. The federal government, groups like Industry Canada, Natural Resources Canada, Indian and Northern Affairs, will play a role. They need to find some ways to coordinate their work with us, or we do, mostly. As well, we need to coordinate our work with the aboriginal organizations or the aboriginal leaders to ensure that we know of the efforts they are making, we recognize the efforts, and where we can we support them in work and put our efforts in coordination with them.

We know that the federal government is prepared to work with us on that. We have asked for some money to provide support to the aboriginal groups so that they can get adequate advice and support in their quest to build and manage a northern pipeline. We need to work with the regions in the communities. We are providing them with some dollars as well. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. I am still looking for some indication that the department will be seeking some kind of a framework or an administrative arrangement that will be able to bring all this together, if you will. The phrase that we often use is a "one-stop shop", right now, if some inquiry came out of the blue and said "I would like to know something about oil and gas or the gas development in the Northwest Territories". I am wondering who or what office I would send them to start with, because it is certainly evident that there are many tentacles starting to grow from this thing. This is a good thing. We need to build our capacity, but to centralize and coordinate is what I am looking for, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. We do not have anything outside of the department as of yet. That probably would happen if it were something that is of interest to the federal government and the aboriginal representatives. At this time in the department, we have minerals, oil and gas division that is under Doug Matthews. This is the section that deals with all of our activities with regards to minerals, oil and gas. But there is no "one-stop shop" identified at this time outside of the department.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Nitah.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. I would just like to ask a couple of questions relating to Mr. Braden's questions. We know that in the Northwest Territories our economic backbone is going to be resource development. Minerals, oil and gas is going to be a big part of that, but the word industry comes to mind.

When I say industry, I am talking about the tourism industry. I am talking about the trapping industry. I am talking about the forestry industry. I am talking about the fisheries industry. Right now what I am seeing is dual Ministerial responsibilities in this area. Where you have one Minister responsible for diamonds, another Minister responsible for oil and gas. It is kind of confusing. I have a hard time picturing what processes are available within the government. If I am having a hard time, imagine how the average Joe out there in the communities will fare.

But if we are going to convince the aboriginal governments and the federal governments that resource development responsibilities are to be transferred to the Government of the Northwest Territories, I think we are going to have to do a better job at informing people about what we do. For that reason, I think that we should really consider having a stand-alone department to deal with this. If we are going to develop the resources in a responsible way, then we are going to have to let people know how it is going to be done, where it is going to be done, the rules and regulations.

The biggest stigma that is on the Northwest Territories right now is regulatory regime, and what kind of influence do we have on the Mackenzie Valley Resource Management Act to ensure that there is a clear, consistent route that investors could take in getting permits for resource development to happen. I do not see that.

Would the government consider establishing such a department where their concentration is for the management of resource development and industry separate from environmental protection? Environmental protection is very important to everyone in the Northwest Territories, including developers. But to try to do both under one umbrella sends mixed signals. So my question is, would the government consider creating a department solely for industry, the backbone of our financial future? Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. Mr. Chairman, a number of years ago, we had three departments: Economic Development and Tourism; Renewable Resources; and Energy, Mines and Petroleum Resources. When the federal government reduced our budget, we undertook to form one department out of three. The target was to initially save $5 million. About two months into the exercise, we were asked to cut $10 million. We met that target, and what resulted from that was a new department called Resources, Wildlife and Economic Development.

We think that we can make the argument that it has been a good approach to a "one stop shop" to deal with economic development. It has been efficient. We have saved ongoing costs of $10 million to the government and reduced the size of headquarters considerably. So, at this time, there are no intentions to review that with the idea of creating two or three departments, where one is currently serving the needs of this government. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Nitah.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. I understand the need to save dollars, but I would argue the fact we are in different situation than we were in a few years back. I think the people of Northwest Territories would like to see some form of movement. The question of transparency is still there. Who is responsible for what within Resources, Wildlife and Economic Development? It has been brought to my personal knowledge that even within Resources, Wildlife and Economic Development people responsible for the different areas that are under Resources, Wildlife and Economic Development are not working well together.

The morale is down because of new direction. Because of that, we are losing people with valuable skills. If that is the case, it is not working. I do not see anyone out there telling me that it is working. People from the communities are not telling me that it is working. People from the industry are not telling me that it is working.

The question about influence in the Mackenzie Valley Resource Management Act for care processes, for permitting processes, I do not see that being done or how it is going to work in the department. It is obvious by the dual Ministerial responsibilities within the department that it is too big for one Minister to handle. Therefore, it has been divided up between different Ministers.

Where an individual who may want to buy stocks in companies that are operating in the Northwest Territories, and he wants to ask information of the government; perhaps he is enquiring about Diavik or oil and gas, where he or she has been directed to one Minister for one area, and another Minister for the other area and the Minister responsible for that area... there are questions to be asked.

I think we could still do better. I know the reasons that we have done this. In light of our aspirations to develop the resources up here and to derive the benefits and financial resources from it, I think we have to do better than that to create an investment climate that is acceptable all around. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. I do not see the issue anywhere here in the interim appropriation, but it is always good to revisit larger issues from time to time. There is no question that we have a morale problem in the department. We had a lot of uncertainty when we first set up the department. Some felt we were constitutionally incapable of balancing, in a fair way, environmental concerns with wildlife concerns with interest in developing the economy, creating jobs, getting diamond mines to open and operate. But I think that we have dispelled that, and not through grandiose statements, but by the fact that BHP Diamonds is operating a mine, and Diavik is hopefully on its way to realizing that.

We have also shown the commitment to handle environmental issues and wildlife issues. This has been well done. We are currently setting up to do a huge undertaking in writing up the Wildlife Act, as no one has tackled that in over twenty years. We have successfully completed a Protected Areas Strategy, and we have, I like to think successfully, to date managed to get a substantial benefit out of diamonds that was not made readily available in the beginning.

Again, we have done that through a one-department approach. So the argument can be made that there is a substantial reason to believe that the idea of putting the environment, the wildlife, the economic initiatives under one department was a wise one, and it has substantially benefited this government and the people in the regions and communities. That is truly what I believe.

In any case, if there was some possible merit in thinking that we would be better served to have two or three departments again, we have even less money than we did a number of years ago. So there is no way that we can ever get Members, like the Member for Thebacha, to agree that we should create more jobs at the headquarters level, and proliferation of the bureaucracy would meet with very staunch opposition. I happen to disagree with the Member. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

I think Mr. Minister, if we could avoid using people's names, just so we do not have other people taking offence to comments. So if we could keep peoples names out of our statements. General comments? Mr. Roland.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. The departments provided information to the committee, breaking down its operations and maintenance, capital and so on. For example, under integrated resource management, there are actually seven areas where it is integrated resource management.

I believe, that for example, the first bullet is integrated resource management and in brackets 'dc', does that mean Deh Cho? Then integrated resources management 'ev', one is 'hq' that has to be headquarters. Another one is 'ns-dr'. I do not know if that is Dogrib region. And then 'ns-ns'. Could we get some clarification on that? This is information that was provided by the department for review.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. That is correct. Those are designated for different regions that we have within the department.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 333

The Chair

The Chair David Krutko

Mr. Roland.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Can he break that down, because there are a couple here such as 'vq'. I am not sure which one that is. And then 'ns-dr' and 'ns-ns'. Is that North Slave? I am not too sure of those two. Could we get clarification on that?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Thank you, Mr. Roland. Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. The first one, 'dc' is Deh Cho, 'ev' is the Inuvik, the Mackenzie Delta Beaufort area. Headquarters is 'hq'. The next one is North Slave, which is the Dogrib region. The next one is North Slave-North Slave, which is everything but the Dogrib region in this area. The next one is South Slave, and the last one, 'vq', is the Sahtu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Thank you, Mr. Minister. Mr. Roland.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Could we get information in the area of integrated resources? Is that the combination of oil, gas, diamonds, and environmental area? Can we get clarification on that?