This is page numbers 101 - 132 of the Hansard for the 14th Assembly, 3rd 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.

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 125

The Chair

The Chair Paul Delorey

Thank you, Mr. Miltenberger. Mr. Handley.

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

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Joe Handley

Joe Handley Weledeh

I see the Energy Alliance as more than just providing advice and input. I see the Energy Alliance as being the vehicle. I hope we do not have to create another one. We want to work with the Energy Alliance because it represents a lot of other agencies besides our department.

I support it. I only hesitate in terms of the capacity we have in a department, but it is a high priority. We need to have it well coordinated. We need an overall strategy, but we also have some immediate things we have to continue on with: completion of the greenhouse strategy, beverage containers, all the other things I mentioned. So it is a matter of capacity, Mr. Chairman. 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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. The chair recognizes Mr. Dent.

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

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Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Chairman. I would like to start off by congratulating the Minister for, in his opening remarks, committing as a priority to explore a revenue neutral beverage container recovery program. I heard about this several times in the past year, particularly around election time from constituents who thought that we should be doing something in this area and I did commit to them that I would do my best to encourage the government to follow up on it. So I would just like to compliment the Minister on taking that as a priority and encourage him to conclude the development of the program this year and ensure that we have one in place for next year.

One of the other points that the Minister talked about as a priority in his opening comments was the development of a tourism strategy for the Northwest Territories. I know, I think, the Minister has heard from a number of Members in this House already that we think this strategy is long overdue. I too think it is long overdue.

I really have to say that I am somewhat disappointed by the commitment that has been shown by the department to tourism. I think that if we really did have that commitment, while the cutbacks have been pretty broad through government, I would argue that over the past four or five years, the cuts to tourism have been disproportionate within this department in comparison to other areas.

So I do not think it is any surprise now when the Minister of Finance proposes a five percent hotel tax in order to get some money to market tourism, that some operators are going to come out in favour of that. They have been beaten down and ignored for so long that they are willing to grasp at anything, no matter how punishing to the industry to try and help out.

I really think that in a $75 million budget, finding $1 million, if that is what we are talking about in terms of net money, to more properly promote tourism to the Northwest Territories, to get the promotion back up to the level that it has been in the past, would be something that should be done within. I think that we should recognize the priority there and try and work from within, rather than looking only to be able to do it with money from outside.

One other sort of general comment that I would like to make is in economic development. I think that, certainly from the constituents who I know have worked with the department, there has been a feeling that they have been able to access the programs reasonably. So I would like to say that I congratulate the department for having a pretty good reputation among people who I know who have tried to access programs.

The department does seem to have been fairly responsive in that area. The one thing I would wonder about is whether or not there is a conscious decision when you are looking at economic development programs within the department to put a certain amount of money into the small capital projects as opposed to the larger ones.

The reason I ask that is that I think that we have seen in the past some tremendous successes with small programs where people could get $5,000 to $7,000 to help them bring their equipment up to a certain standard or to invest in some equipment that would get them into, perhaps not a real business, but an occupation that they might be able to undertake, whether that is fishing or trapping or something, that helps them become more self-reliant.

So perhaps if the Minister could advise, is there a clear distinction between the small capital programs and the larger programs? Do we maintain some funds so that there is always some money available for the smaller programs?

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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Dent. Mr. Handley.

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

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Joe Handley

Joe Handley Weledeh

Thank you, Mr. Chairman. With regard to tourism, I share the Member's feeling that over the past years we have not paid enough attention to tourism. It has a tremendous potential.

When the responsibility for a large part of tourism was devolved out to the Northwest Territories Tourism Association, it was done with the expectation that there would be a partnership arrangement where the private sector would bring in 50 percent of the dollars and the government would provide 50 percent. That has not really happened. The industry just has not been able to do that.

I really believe in tourism we need to have that arrangement. I hope we can someday achieve that because I think it was a good objective to begin with.

The finding money from within...you know, we not only have to get to the level we were at, I think we have to get higher than that because we need to promote this more as an industry. So if, throughout the year, I could find additional dollars from within then certainly, there is a priority in the department when we do not have other things that are more pressing needs, then we need to put it into tourism, because it is a priority for me. I think it is too important of an industry.

With regard to the economic development programs, we do have small business grants that are specifically for small business, and I think they cap out at about $5,000, and there is a total of $287,000 within that category. We are also looking, because we do not have an EDA, we do not have a lot of money to make available in grants and loans and so on to small businesses. We are looking at the possibility of putting some sort of ceiling, even on the so called larger ones, of possibly $100,000 or so. Anything beyond that would have to be viewed differently, because the small business sector is a real driver within our economy.

We are trying to do it. I am hopeful that through the document, the common agenda, we can put a new argument to the federal government. Get us some EDA dollars to help this sector out because we are not doing nearly as much as the demand is out there. 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 126

The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. Mr. Dent.

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

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Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Chairman. I certainly welcome the Minister's commitment to put some extra money this year into tourism if possible, and I have no doubt that the operators will welcome that as well. However, I would point out that if it is not base money, and we are talking only about money that is extra this year, it creates the problem of proper planning and taking advantage of opportunities that may present themselves in an ongoing basis. So that is not the best way, sometimes, to manage your dollars, to only be able to fund it in the short term.

One other thing I was surprised to see no mention of in the Minister's opening comments as a priority, was work on the Northwest Territories Wildlife Act. Over the past year there has been extensive consultation undertaken on this act. Could the Minster outline for me, what the timetable is from this point on until when we expect to see a new act introduced in this legislature?

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 126

The Chair

The Chair Paul Delorey

Thank you, Mr. Dent. Mr. Handley.

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

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Joe Handley

Joe Handley Weledeh

Thank you, Mr. Chairman. We have gone out to consultation with an initial document on the identified issues in the Wildlife Act. That round of consultations has been, essentially, completed. The revision of the Wildlife Act is being sort of dove-tailed with the species at risk legislation. The two fit together. Both of them require a tremendous amount of consultation.

We are now doing a discussion paper, doing consultation and building a discussion paper as we move along with that. We anticipate having the discussion paper, which would largely take in recommendations and advice from various groups, ready to come to Cabinet in the spring of 2001. We would then go back out again for further consultation with the objective of having legislation into the Assembly by the fall of 2002.

But as everybody knows, it is a very complex process because we get involved with other legislation, including our tourism act, and other ones. There is certainly a lot of interest from land claim organizations, renewable resource councils, hunters and trappers associations, bands, Metis councils, so it is a very complex exercise.

We are aiming at fall of 2002 for legislation. 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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. The chair recognizes Mr. Nitah.

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

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Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. I will make my comments brief and questions to the point.

Can I ask the Minister what the mandate of the Northwest Territories Development Corporation is? Thank you, Mr. Chairman.

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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Handley.

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

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Joe Handley

Joe Handley Weledeh

I could read you the formal mandate but I could give that to the Member instead. Essentially, the mandate, though, is to provide support to businesses where the private sector either is not interested in going or just cannot afford to go because the business may not be viable on its own. But at the same time, with a modest amount of support, a business could be supported and provide jobs in the community.

So it is aimed at those communities where it is marginal.

A second part of the mandate is to assist new ventures that are being established or having difficulty in getting through those few first years. So the Development Corporation does get involved in various ventures in a partnership arrangement to help keep them viable.

Those would be the two main purposes. 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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. Mr. Nitah.

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

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Steven Nitah Tu Nedhe

Thank you. In your opening remarks, you wrote the Northwest Territories Development Corporation provides financing to community investments. In the Northwest Territories, the corporation is mandated to provide investment and ongoing support for ventures in small communities where the prospects of profitability may be weak, but benefits for employment creation are high. Continued efforts will be directed towards providing assistance and strengthening management and production capacity at the community level and developing markets and the products to satisfy the needs for those markets.

That is what you wrote in here.

You mentioned getting into business ventures and what not. What is the policy of the Development Corporation when it comes to joint ventures with the community organizations in getting into small business?

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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Handley.

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

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Joe Handley

Joe Handley Weledeh

Generally, Mr. Chairman, the policy in entering into joint ventures is that the Development Corporation will take out preferred shares in a venture. It will do that, though most often where there is a likelihood that the venture will be able to buy back those preferred shares and, at some point, operate on its own again.

The Development Corporation does not want to enter into a long-term, forever arrangement with a joint venture that is never viable. So at some point, they have to assess whether or not this is really a joint venture or whether it should be looked at as a subsidiary. Subsidiaries are those cases where we do, with a modest investment, continue to subsidize where the private sector will not go.

Examples of those would be the Fort McPherson Tent Factory, where we have been in there a long time and supporting it as a subsidiary because of the employment it generates.

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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. Mr. Nitah.

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

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Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. I asked Mr. Fred Koe that same question and he told me that for the Northwest Territories Development Corporation to begin a joint venture with any organization or individuals, the corporation would have to own 51 percent of the management. That goes totally against what I am reading here, "strengthen management at the community level". Take Fort Resolution, for example, the sawmill has been the forefront of a lot of discussion.

Since I have been elected, I have had meetings in the community with the leaders, with Mr. Koe, and what I have heard really disturbed me. I am concerned about management and the whole way the Development Corporation handled that project.

There was one manager after another going in there working for the Development Corporation. They set up an advisory board consisting of people from the community, who have an interest in the sawmill. The sawmill was the only major employer in the community. Now, Fort Resolution has experienced the most depressing economic times in 20 years.

The advisory board that was set up by the Development Corporation advised the manager and the president of the Northwest Territories Development Corporation and through him, the board, on the way the business was managed.

For example, the sawmill was $750,000 in debt, but the manager, who was working for the NWT Development Corporation, saw fit to go buy two new $650,000 loaders. You do not do that kind of stuff when you are in the hole.

Another example is the sawmill used local contractors to cut roads into timber areas for an average of $30,000. Another manager came in, did away with the local contractors, went to Hay River, hired a contractor to do the same work, and paid this individual and this company $350,000. Was the NWT Development Corporation trying to kill this project?

The local advisory board was making such a fuss, they were dismantled by the president of the NWT Development Corporation. He flew in there, dismantled it and said we have a manager in there doing the job.

Understanding and having the information on all of this, this statement does not hold water for me. I support what Mr. Krutko had spoken to on the amalgamation of all of these different corporations this government developed.

Will the Minister look at the NWT Development Corporation and provide this House with a track record of the joint ventures they are in, for the last five years, the success rate, the failure rate, how many dollars have been spent, how many people have been employed, how many of those businesses do they own 51 percent of and manage completely, the results of those businesses, et cetera? Thank you, Mr. Chairman.

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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. I would like to remind the Members that we are on general comments. We do not want to get right into the specifics of the departments. I will allow Mr. Handley to answer, if he wishes.

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

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Joe Handley

Joe Handley Weledeh

Thank you, Mr. Chairman. I think some of the examples the Member was referring to are precisely the reason why we have Mr. Koe as president of the NWT Development Corporation. I am sure, with his board, they will make very responsible decisions. The 51 percent is a decision the board will make. They operate within a limited budget. I can tell you the NWT Development Corporation has changed its ways of operating considerably since Mr. Koe has been there.

I would be pleased to provide the information to the Member. I believe it is already included in the annual report and the corporate plans. I will check that. If it is not and there is more information the Member wants, I would be happy to provide it. 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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Handley. Mr. Nitah.

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

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Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. Are you sure the 51 percent is at the discretion of the board or is it a policy? 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

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The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Handley.