That is correct. That was based on the landed costs from last summer. Of course, we are looking at some higher pricing of fuel at this time, which would at least add to that.
Debates of March 29th, 2000
This is page numbers 391 - 424 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.
Topics
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 411
Austin
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 411
The Chair Leon Lafferty
Thank you. Mr. Nitah.
Records Management
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. Add to the savings or add to the price of fuel?
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 411
The Chair Leon Lafferty
Mr. Austin.
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Austin
That would be a matter for the Financial Management Board to determine whether they were going to offset those higher costs with increased prices.
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Leon Lafferty
Mr. Nitah.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Steven Nitah Tu Nedhe
Does the department have any influence on the Financial Management Board when it makes a decision on this?
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Leon Lafferty
Mr. Austin.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Austin
Mr. Chairman, our mandate is to recover our operating costs through retail pricing of fuel. That is the mandate we have. So of course, when we are not making that mandate, we have to return to the Financial Management Board and advise them what kind of price we would need to meet the operating cost recovery, or what the implications in terms of incremental loss would be if the price increase was not provided.
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 411
The Chair Leon Lafferty
Mr. Nitah.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Steven Nitah Tu Nedhe
Thank you. In our committee meetings, you agreed to provide a fuel pricing rationale for review by Members. I have not seen this rationale yet. Is it forthcoming?
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Leon Lafferty
Mr. Steen.
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Austin
Thank you, Mr. Chairman. Yes, it is in progress, we should expect to have it to you within the next week or two.
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The Chair Leon Lafferty
Mr. Nitah.
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Steven Nitah Tu Nedhe
Thank you. At this committee meeting, Members also recommended that by absorbing increases in the price of fuel, there may very well be savings for government in other activities, such as in the social envelope. Am I to understand now that it is up to the Financial Management Board to make that decision?
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Leon Lafferty
Minister Steen.
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Vince Steen Nunakput
Mr. Chairman, the price of the fuel includes a subsidy. It is up to the Financial Management Board as to what we would charge in order to recover our costs. If the Financial Management Board indicates there should not be a subsidy, that is done by suggesting to us what we are going to charge.
However, we have been trying to identify the subsidy. We have taken the trouble to inform the communities as to the subsidy that is applicable to the price of fuel in their communities. We have identified that subsidy to them. Whether it is five cents, whether it is ten cents a litre, whatever.
What we as a department and I think as a government have been trying to do is identify all subsidies, including this particular subsidy, so we can see that it is applied where it is needed.
When we apply subsidies to fuel, it is included in the price of fuel. Anybody who buys at that pump is subsidized, which means some people who do not necessarily need a subsidy will be enjoying a subsidy.
Therefore, it is very important we identify the subsidies where they are being applied. That is what we have been trying to do, to identify these subsidies and where they are being applied. Thank you.
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Leon Lafferty
Thank you, Mr. Steen. Mr. Nitah.
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Steven Nitah Tu Nedhe
Thank you, Mr. Chairman. So my understanding is that the subsidy may not be realized at the pumps because we are afraid others will enjoy that subsidy when they really do not need it.
If we look at the price of fuel, especially in the small communities where the income level is hovering around $30,000, a lot of people fall through the cracks when it comes to subsidies and other government programs.
When fuel prices hike up dramatically the way we have experienced through the ten cent increase in the beginning of the year, through the actions that might be taken through the department to get back some of the cash from the recent increases in the price of fuel, I would argue others that have fallen through the cracks may become users of income support.
There are a lot of people in smaller communities who are just barely meeting their needs with their jobs now because their fuel costs increased. They do not make more money when they are on income support. This puts more pressure on this government, especially where hunting and trapping are used for country food to help with their income. The cost of fuel is so important.
If we cannot, with the 17 projects that we have, all of which are in small, isolated communities that really depend on hunting and fishing...they really rely on the fuel. If we cannot take care of the subsidy of the pumps, then it just leaves more administration problems for this government to deal with down the road, which is going to cost more money to this government. I would strongly encourage the department to consider all these factors when and if they decide to raise the price of fuel in the communities.
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The Chair Leon Lafferty
Mr. Steen.
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Vince Steen Nunakput
Thank you, Mr. Speaker. Mr. Speaker, the Member raises some very good points. The department will be taking those points into consideration.
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The Chair Leon Lafferty
Mr. Nitah.
Records Management
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
March 28th, 2000
Page 412
Steven Nitah Tu Nedhe
Can the department tell me where they get their fuel? Do they get bulk sales at a preferential price? And is that preferential price reflective in the prices of pumps?
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The Chair Leon Lafferty
Mr. Steen.