This is page numbers 1543 - 1596 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

Pol And The Business Incentive Policy
Item 19: 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. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, the Member has basically voiced the concern that Cabinet has with this whole idea of privatization; pick those that are profitable and leave the rest with the government. We have to think of the consideration of the depths of the revolving fund. We have to take into consideration how we are going to access what is left. So it is not going to be just a matter of who makes the best offer. We have to take into consideration those communities like Lutselk'e. How are we going to continue to supply services to them at a reasonable rate? That is one of the questions that we have to address. Your concern is well taken. We have that concern as well.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1578

The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Nitah.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Steven Nitah Tu Nedhe

Thank you. I am happy that the Minister is addressing my concern. However, I would wish that he would address my question. My question was, does it cost more to bring fuel into Lutselk'e or one of those communities where people have to pay higher prices than it costs to bring into subsidized communities that cost a lot of money to supply? Thank you.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1578

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

March 6th, 2001

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, I am not familiar if Lutselk'e is one of the ones that are being subsidized or whether they subsidize somebody else. I will ask Ms. Chamberlin if she could address the Member's question.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1578

The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Ms. Chamberlin.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Chamberlin

Thank you, Mr. Chairman. Specifically at Lutselk'e, the residents at that community are paying premium on their fuel. They are subsidizing other communities.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Ms. Chamberlin. Mr. Nitah.

Pol And The Business Incentive Policy
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. Well, I hope that I am not starting to sound like Mr. Krutko.

-- Laughter

No pun intended, Mr. Krutko. Just under a Cabinet review of the community of Lutselk'e, knowing they are paying premium for the fuel and they could pay a cheaper rate, does not agree with the Cabinet decision to continue to purchase fuel from the Government of the Northwest Territories through whatever organization, maybe the Power Corporation. What kind of leeway do they have to go after their own contract? To supply their own fuel?

I have always suspected, now it is for sure, that the community is a premium. It is not much to get fuel into Lutselk'e. You rail it or truck it to Hay River, pump it into a barge, you barge the fuel to the community and you pump it into the tanks. There you go. Why should that community pay a premium to subsidize other communities?

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1578

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, there is nothing to stop anyone in Lutselk'e from setting up their own system and buying from wherever they want. What we would have to take into consideration is how do we address our stock that we have there and our facility.

We would have to take into consideration what would we do if somebody else sets up and starts selling cheaper. We would basically be in the same situation as we had in Tuktoyaktuk where the guy could undersell us. It was a situation where we negotiated and they took over our facilities. In the end, it was to their advantage in that the tank systems are there, everything is there. It was a matter of them taking over the system.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1578

The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Nitah.

Pol And The Business Incentive Policy
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 am glad the Minister brought up the stock. My understanding is the stock of fuel in Lutselk'e was purchased this spring and supplied this summer. Since then, the price of fuel is going up and accordingly, the price of fuel went up in Lutselk'e even though the stock was the same and was purchased for a lower price.

So from the Minister's answer, I take it that the department will be willing to negotiate with an interest group or the band corporation or the co-op in Lutselk'e, who has expressed an interest in negotiating with the department to take over the contract.

The question that I still have, based on the Minister's answers to Mr. Krutko's question, the Cabinet still has to review and still has to decide. If the Cabinet decides that the Power Corporation is going to be the choice for delivering fuel in the community, what avenue does the community have?

Pol And The Business Incentive Policy
Item 19: 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. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, the community would be back to square one. They are not required to purchase from us. They could set up themselves. Somebody could set up in the community and sell.

What we would have to take into consideration is our future in that community. What will we do with our facilities? Will we still offer to supply services in there? Those are the types of questions the department will have to take into consideration. There is nothing to stop somebody from setting up a private delivery system in Lutselk'e.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Nitah.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Steven Nitah Tu Nedhe

In a roundabout way, I think the Minister is committing to me or to the Assembly that the department is willing to negotiate with an interest group in the community to transfer the responsibility of delivering fuel services in the community of Lutselk'e. Is that correct, Mr. Chairman?

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1579

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, what the Minister is saying is that we would be in a different situation than in most communities, whereby we would have to consider what we will do with our facilities. In other words, it is to the advantage of the community. In most other cases, that is not the situation. In the other cases, communities are subsidized.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1579

The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Nitah.

Pol And The Business Incentive Policy
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. So the Minister is saying that if somebody could afford to bring in tanks and the other facilities, they may get into a complicated situation? At that point, they will decide if it is worth the government to stay in there and compete with our private industry or pull out entirely?

If that is the case, are they willing to spend all the money that they invested into the existing facilities rather than negotiate with an interest group in the community, whether they sell or just hand over the ownership of the facilities in the community? Is that what I am hearing, Mr. Chairman?

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1579

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Minister.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Vince Steen

Vince Steen Nunakput

Mr. Chairman, all the facts the Member mentioned will have to be taken into consideration.

Pol And The Business Incentive Policy
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Page 5-17, petroleum products, operations expense, total operations expense, $774,000.