This is page numbers 947 - 980 of the Hansard for the 14th Assembly, 5th 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

Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 963

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. Mr. Speaker, my questions have to do with the dissolution of the Power Corporation board as well. I will be asking the Premier about that.

It has come to my attention that I neglected to mention and thank Rod Hardy for his work on the board. He was probably the longest serving member at the time of his removal from the board.

Mr. Speaker, I would like to ask the Premier, once we obviously had this failure in communication and the board had gone ahead and filed the application, why did the government not consider filing an intervention in opposition to the application instead of providing a directive to the corporation?

Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 963

The Speaker

Thank you, Mr. Dent. The honourable Premier, Mr. Kakfwi.

Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 963

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, the Cabinet met in early August and it was felt that there was a clear political understanding, an understanding of the Ministers about what that decision was, which was to direct that the Power Corporation defer any further consultation on a range of things, including a single-rate zone. For whatever reason, this was not understood by the Power Corporation and conveyed to them. It was important to get that clear.

We had a meeting two weeks ago. Cabinet reviewed that and we had that clarified and confirmed and simply asked the board to withdraw their application at this time, so that the energy strategy could be completed and the Members of the Legislature could have a debate about the draft Energy Strategy, the public could have a look at it and within that context discuss what is the best way for the Power Corporation to operate, what are the goals and objectives that we have in the strategies that we set out, and then deal with specific issues of single-rate zones. That was the direction we gave in August and it was a decision we thought was clear.

It was brought up again. It was revisited and we asked our board to comply. They chose not to comply so that was the action we took. Thank you.

Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 963

The Speaker

Thank you, Mr. Premier. Supplementary, Mr. Dent.

Supplementary To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 963

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. What is the Premier doing to make sure that communications around Cabinet decisions are clear and direct from now on? It is hardly any wonder that the corporation did not know what to expect, or the board did not know what to expect when on August 6th the Cabinet apparently made a decision, August 13th the Minister was in front of AOC and he came out in support of the one-rate zone application to AOC. He was then heard on the radio subsequent to the application being filed saying that he supported it.

How could the board ever get the impression that this was a clear decision of Cabinet? Has the Premier dealt with that issue so that we know that we are going to hear publicly now what Cabinet positions are from Cabinet Ministers?

Supplementary To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Dent. The honourable Premier, Mr. Kakfwi.

Further Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. Cabinet Ministers were not asked what their preferences were in regard to the issue of rate zones. The Cabinet was asked to make a decision about what type of a process and sequence in which things should happen because we had a draft strategy that all of us had been waiting to discuss and review. We felt that it was the right decision to do, to ask the Power Corporation to defer any further consultation specifically on the single-rate zone until the Energy Strategy had been completed.

All Ministers agreed with that, that consultation should be deferred. It was confirmed again in the recent Cabinet meeting. Thank you.

Further Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Premier. Supplementary, Mr. Dent.

Supplementary To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. Mr. Speaker, has the Premier discussed with his Cabinet then how in the future we are going to make sure we do not get into this situation where there is not a clear understanding of what the position of Cabinet is?

Supplementary To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Dent. The honourable Premier, Mr. Kakfwi.

Further Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, I believe that all of us are aware that there was a communication problem with the August Cabinet decision and for whatever reason, the Power Corporation did not understand the intent and direction given by Cabinet. I am sure the staff will review that and ensure that this is addressed so that it does not happen again. Thank you.

Further Return To Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Question 326-14(5): Dissolution Of The Power Corporation Board Of Directors
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Premier. Item 6, oral questions. The honourable Member for Inuvik Boot Lake, Mr. Roland.

Question 327-14(5): Mechanism For Revoking Board Appointments
Item 6: Oral Questions

October 15th, 2002

Page 964

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, there is obviously much confusion around this whole issue, the Power Corporation and the board and the revoking of the authority of the board. There are a number of avenues I would like to take on this, but realizing we are late in our time in question period, I am just going to go off to one and try to get information out there for our constituents.

It is the area of authority to revoking the appointment. Under what portion of the act or what area has the Minister revoked the authority of the board? Thank you.

Question 327-14(5): Mechanism For Revoking Board Appointments
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Roland. The honourable Minister responsible for the NWT Power Corporation, Mr. Handley.

Return To Question 327-14(5): Mechanism For Revoking Board Appointments
Question 327-14(5): Mechanism For Revoking Board Appointments
Item 6: Oral Questions

Page 964

Joe Handley

Joe Handley Weledeh

Mr. Speaker, I will have to take that as notice. I do not have the document with me to confirm exactly what area. Thank you.

Return To Question 327-14(5): Mechanism For Revoking Board Appointments
Question 327-14(5): Mechanism For Revoking Board Appointments
Item 6: Oral Questions

Page 964

The Speaker

Thank you. The question has been taken as notice. Item 6, oral questions. The honourable Member for Yellowknife South, Mr. Bell.

Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 964

Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. My question is for the Minister of RWED and it is about the BIP provision process, a process that the Minister has characterized as very open, Mr. Speaker. The presentation from RWED to our committee, when we were talking about BIP adjustment thresholds, the case was made that this would allow cost containment, Mr. Speaker. Cost containment was the rationale. Go to RWED's web site, why are thresholds being introduced? During our consultations, the business community expressed the need for a dollar cap on the application of BIP adjustments -- nothing about cost containment.

Mr. Speaker, why are we not being forthright and honest with the people of the Northwest Territories? Thank you.

Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 964

The Speaker

Thank you, Mr. Bell. The honourable Minister responsible for the Department of Resources, Wildlife and Economic Development, Mr. Antoine.

Return To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 964

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, my instructions to the department were to be open and to receive all the concerns and take every concern that was raised very seriously. I am hoping that is still the case. As I indicated to the honourable Member for Hay River North earlier on, this process is not completed yet. The concern raised by the honourable Member Bell from Yellowknife is that the comments on cost and the comments on the different thresholds and of that nature have not been taken into consideration. They are currently being incorporated into a revised BIP that the Cabinet has not had the opportunity to see.

I have not seen those changes myself. I have been briefed in the last couple of days by the department to see where they are at. I am told there is a decision paper that will be coming forward to Cabinet with the finished product. Hopefully the concerns of the Members here and the concerns raised by the stakeholders are all included. The reason why I am saying it is open is that the concerns have been taken, not only through the web site but also through the discussions face to face with the stakeholders will be included. I say that we are open and I am hoping the department is following through with that type of condition. Thank you.

Return To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

The Speaker

Thank you, Mr. Minister. Supplementary, Mr. Bell.

Supplementary To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. So behind closed doors, we are being told that it is about cost containment. In public, we make no mention of cost containment. I have a theory, Mr. Speaker. I think it is because if you tell people it is about cost containment, they would ask you what the BIP is costing us, and the truth is that we have no idea, Mr. Speaker.

Will the Minister endeavour to figure out what the BIP is costing this government?

Supplementary To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

The Speaker

Thank you, Mr. Bell. The honourable Minister responsible for the Department of Resources, Wildlife and Economic Development, Mr. Antoine.

Further Return To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, I personally would like to know how much the BIP has cost this government over the years. I think we all want to do that. I think people have a right to know that. We have tried in our first discussion paper on the proposed BIP to use a mechanism of labour rebates and tax credits, and we thought that such a system would have allowed us to assess the cost of BIP. However, this approach was not accepted during the stakeholder discussions and through the consultation that took place. I think this was a way of trying to find out how much BIP is costing us, but since it was not accepted by the stakeholders, we are not going to pursue that avenue. We will have to find another way of trying to figure out how much BIP is costing.

Frankly, the Business Incentive Policy has been in place for some time and it is difficult to have baseline information of where to start. Of course, there is the BIP administration that we are involved with. There is also a contract administration that takes over after BIP has been analyzed and a contract given out, so it is a responsibility that the Minister of Finance and FMB has on the contract administration part of it. We need to go there as well if we really need to know how much BIP is going to cost us. Thank you.

Further Return To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

The Speaker

Thank you, Mr. Minister. Supplementary, Mr. Bell.

Supplementary To Question 328-14(5): Business Incentive Policy Revisions
Question 328-14(5): Business Incentive Policy Revisions
Item 6: Oral Questions

Page 965

Brendan Bell

Brendan Bell Yellowknife South

Mr. Speaker, I am not even going to wade into this dispute about what are contract administration issues and what are BIP administration issues. This is one of the biggest shell games I have ever seen, Mr. Speaker. I am glad the Minister raised the issue of labour rebates. We have had store-fronting problems with BIP. That is no surprise to anybody. We figured, I guess, with this revision that we are going to change all that because we are going to now allow it. What we are going to do is we are going to apply BIP to companies purporting to have a percentage of northern content or northern labour in their proposals and we are going to take their word for it, Mr. Speaker. How does this make any sense? Why are we proposing that we will go back after the fact and audit these things when we know that we do not have the capability to do that? Thank you, Mr. Speaker.