Thank you, Mr. Chairman. Under the Revolving Fund Act, our mandate is to break even on operating costs versus revenue. There is a special legislation attached to the Revolving Fund Act, the petroleum products division, which provides for a price stabilization fund. The price stabilization fund sits off to the side and the intent of that fund is to collect small losses or gains on a year-to-year basis, to a maximum of $5 million. So we are allowed to carry a deficit to a maximum of positive or negative $5 million. At the point it reaches that maximum, any shortage must be made up through an appropriation through the department. Any excess flows to general revenues.
Debates of July 6th, 2000
This is page numbers 533 - 596 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.
Topics
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Austin
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Charles Dent Frame Lake
Thank you, Mr. Chairman. I would note that today we are asked to approve figures that will take the closing balance from that stabilization fund to $5.25 million. Does the department have any plans to come forward with a proposal to balance the revenue to the expenses?
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Austin
Thank you, Mr. Chairman. Mr. Chairman, retail pricing within the petroleum products revolving fund is authorized through the Financial Management Board Secretariat. We are in the process now of developing a submission, requesting a price increase to allow us to avoid exceeding the fund. It will be the Financial Management Board Secretariat's decision to authorize that increase or otherwise.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Charles Dent Frame Lake
Thank you, Mr. Chairman. Since it would appear that this stabilization fund will be hitting the so-called debt wall of $5 million, does the department have the ability within to find the extra $255,000 if the Financial Management Board does not approve the retail price increase?
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Austin
Mr. Chairman, I defer the question to the Minister.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Vince Steen Nunakput
Thank you, Mr. Chairman. Mr. Chairman, within the whole petroleum product division's mandates, we have to stay within that specified $5 million. Whether we have the ability to cover would directly relate to whether we put forward a petition proposal to the Financial Management Board Secretariat to raise the price to stay within that debt wall. If we need money to stay within, we are going to have to come forward with a proposal to raise the price. We have already done that once last year. We put forward a proposal to the Financial Management Board Secretariat to raise the price and we raised the price of fuel petroleum products by ten cents in the communities in order to avoid going over the $5 million. If we in fact have to do that again, well we are going to have to put forward a proposal to the Financial Management Board Secretariat.
What we also have to take into consideration here is that the price of oil, as everybody knows, has increased, so we are going to have to come forward with a proposal to the Financial Management Board Secretariat to offset that as well. Thank you.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Charles Dent Frame Lake
Thank you, Mr. Chairman. I think that given the potential, it may come down or it may go up. When we are running this close to the limit on the stabilization fund, I would encourage the Minister and the department to move quickly to try and bring forward a plan to bring things into better balance. I am just slightly troubled that we are being asked here to approve something that shows us exceeding what is allowed in legislation and wonder whether or not that is actually the proper way to do it. I will have to trust the Minister to make sure that things are done as they should be, to bring things back into order. Thank you, Mr. Chairman.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Vince Steen Nunakput
Thank you, Mr. Chairman. Mr. Chairman, the Member has a very good point in that there is some sense of urgency here. That is what I tried to bring out earlier when discussing with the Member for Mackenzie Delta, Mr. Krutko, and how quickly we respond and make a decision as whether we are going to privatize POL and what we do if we do not privatize. Also, what do we do in order to wipe off the debt.
So all those things have to be taken to the Financial Management Board Secretariat and will be taken into consideration when we are discussing privatization and that is coming up in the very near future. Thank you.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Some Hon. Members
Agreed.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
The Chair Paul Delorey
Page 5-24, information item, petroleum products revolving fund, active positions.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Some Hon. Members
Agreed.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Some Hon. Members
Agreed.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Some Hon. Members
Agreed.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
The Chair Paul Delorey
Going back to page 5-7, Public Works and Services, department summary, operations expense, total operations expense, $39,148,000.
Committee Motion 25-14(3): Recommendation For A Revised Government-wide Record Management Plan For Incorporation By March 2001 (carried)
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 571
Some Hon. Members
Agreed.