This is page numbers 1063 - 1106 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 rights.

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Further Return To Question 375-14(5): Repairs To Highways No. 5 And No. 6
Question 375-14(5): Repairs To Highways No. 5 And No. 6
Item 6: Oral Questions

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The Speaker

Thank you, Mr. Minister. Item 6, oral questions. The honourable Member for Mackenzie Delta, Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, my questions are for the Minister of Resources, Wildlife and Economic Development, Mr. Antoine, regarding my Member's statement, that we do have a lot of developments happening and we do have different initiatives on the go, but I believe there is very little happening at the community front. I think it is important, Mr. Speaker, that this government takes the initiative. I mentioned in my statement that the Government of the Northwest Territories has established socio-economic agreements with the diamond industry. I would like to ask the Minister, has this government considered a similar approach when we deal with the oil and gas industry?

The Speaker

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

Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, when I took over this portfolio last November, and knowing and understanding what happened at the diamond mines in regard to socio-economic agreements and impact benefit agreements, I was told by officials in RWED that were briefing me on all aspects of this job on the oil and gas side that...can we apply the same type of proposals to the oil and gas sector. I was told that in the Mining Act, there were no provisions for socio-economic agreements. Through the review of the Mackenzie Valley Environmental Impact Review process, the aboriginal leaders, as well as our government, pushed to make sure that we have strong socio-economic agreements on the mining side. I asked if we could do it on the oil and gas side. Apparently, there is federal legislation on oil and gas, Canadian oil and gas legislation that allows for socio-economic agreements, not on the exploration part of it but during the development, once there is a significant find, once they do the drilling and oil and gas exploration, then there are provisions in the federal legislation for oil and gas for socio-economic agreements. Because this agreement is there, we did not pursue similar types of arrangements we had on the mining side, but there are perhaps ways of approaching it. I have asked the department to explore what the possibilities are during the exploration part of the oil and gas phase. To this point in time, we do not have any similar types of arrangements with oil and gas like we do on the diamond mining side. Thank you.

Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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The Speaker

Thank you, Mr. Minister. Supplementary, Mr. Krutko.

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, there is an avenue in place in this government. There is, under the oil and gas act that the Minister mentioned, a provision that clearly states that benefit agreements have to be reached by the affected communities on the affected developments. Also, the Mackenzie Valley Resources Act, under the environmental assessment process, calls for social impact benefit agreements to be negotiated with the affected communities. So there are provisions in legislation -- federal legislation or not -- that we have an opportunity to look at these different areas. I would like to ask the Minister exactly, what is the department doing to ensure that we as a government receive the maximum benefit from these developments and to ensure that when the effects are taken on by our communities, that we as a government ensure that we do whatever we can to protect our communities from these developments.

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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The Speaker

Thank you. That was a very long question, Mr. Krutko. If you could maybe be a little more specific, but...Minister Antoine.

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, this is my question to members in the department, why can we not do that? This was when I was getting briefed up. Up until now, I have instructed the department to look at what we could do in this area.

Mr. Speaker, there are some communities that make their own arrangements. For example, Fort Liard, when there was a big...(inaudible)...going on there with exploration and a significant find with oil and gas, they wanted to do it themselves. They did not want the GNWT to be involved. So we have communities in the North that do not want us involved. There are regions in the North that have told us that the GNWT is not their government. So we have to be cognizant of that, yet I have instructed the department to look at what we can do as a template if communities and regions want to work in this area. So we are doing some work in this regard. Thank you.

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

Page 1076

The Speaker

Thank you, Mr. Minister. Supplementary, Mr. Krutko.

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, again, we do have a responsibility to ensure that the socio-economic agreements benefit our people, are in place to protect us, to ensure that we have trained people, we have job opportunities, and to ensure the economic opportunities stay in the North.

Mr. Speaker, I would like to ask the Minister again, what is the Minister doing to work with communities to build that capacity to ensure we receive the maximum benefit from the oil and gas developments that are taking place in the Mackenzie Valley today.

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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The Speaker

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

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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Jim Antoine Nahendeh

Thank you, Mr. Speaker. The Department of Resources, Wildlife and Economic Development as the Government of the Northwest Territories, we do not have that jurisdiction. It is the federal jurisdiction to license the exploration as well as the development of oil and gas. It is difficult for us to get right in there with the oil companies and tell them that they have to have socio-economic agreements. Our staff are monitoring what is going on in the communities and in the regions, and if we are asked to help out and support them that is when we get involved at this point in time.

Again I have asked the department to look at what sort of template we could develop that would be applicable to the communities and the regions, and there is work going on at this point in time to see how we could help out better in the communities where there is oil and gas activity. Thank you.

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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The Speaker

Thank you, Mr. Minister. Final supplementary, Mr. Krutko.

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

Page 1076

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, with regard to court cases and whatnot that have happened where the Government of the Northwest Territories has definitely been identified as being independent from the federal government system, where we do have the right to make our own decisions, I would like to ask the Minister, have you asked the Department of Justice for a legal opinion with regard to the independence of ourselves as a government and how we can intervene in those federal processes either through the environmental assessment process or benefit agreements?

Supplementary To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

Page 1076

The Speaker

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

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, again once we have concluded devolution discussions with the federal government perhaps we would be in a better position to be directly involved with telling the oil and gas companies what sort of conditions they have to meet once they get their permits and licences, but at this point in time we do not have that authority. It is still the federal government's responsibility and we are involved. We are trying to influence what is going on. I agree that perhaps we could play a bigger role, but we need to work with the communities and the leadership in the different regions if they ask us to get involved. Up to this point in time there are a few communities that are asking for our support and help, and we certainly will do it.

In terms of asking for legal advice, I am going to have to ask the department and the Department of Justice about the question that the MLA has asked. Thank you.

Further Return To Question 376-14(5): Support For Oil And Gas Development
Question 376-14(5): Support For Oil And Gas Development
Item 6: Oral Questions

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The Speaker

Thank you, Mr. Minister. Item 6, oral questions. The honourable Member for Range Lake, Ms. Lee.

Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. Mr. Speaker, my question today goes to the Minister responsible for Resources, Wildlife and Economic Development with regard to the contract negotiations being engaged in on the water bomber contract. Mr. Speaker, I believe the hall mark of good government is one that respects equality, fairness and transparency and what I have been hearing in the House of late on this issue shows a lack of consistency and clarity that is making the people on the street shake their heads about where exactly this government's economic and business policies lie.

Mr. Speaker, in answering questions in this House the Minister indicated that the government is undertaking contract negotiations in order to keep the costs down and because this business is northern and because it has capacity. I agree that Buffalo Airways is a good northern company, but if he is not open to any other bidders how does he know that the costs will stay low? Thank you, Mr. Speaker.

The Speaker

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

Return To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

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Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, we are negotiating with Buffalo to provide air tanker services in the Northwest Territories. They have been doing that for the last seven years. I have said in the House and the honourable Member also reiterated that the object of the exercise here is to try to get the good service that we require at a lower cost. Through the negotiation process we are trying to negotiate a lower price than has been there in the past, and that is what I base my answer on. Thank you, Mr. Speaker.

Return To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

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The Speaker

Thank you, Mr. Minister. Supplementary, Ms. Lee.

Supplementary To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

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Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. I do not believe the Minister answered as to why and on what basis the department is advising, or the Cabinet believes, that this process will ensure a low cost -- or whether or not Buffalo Airways is the only one that could provide this service. I ask the question again, Mr. Speaker, what information does the department or the government have to lead them to believe that this is a cost saving measure? Thank you, Mr. Speaker.

Supplementary To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

Page 1077

The Speaker

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

Further Return To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

Page 1077

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, we are negotiating as we speak here, but just to reply to the question, Buffalo Airways has done an excellent job in developing a northern business. Ten years ago we had a huge debate in this House in trying to grapple with this and trying to help develop a northern company that could have the capacity and ability to provide air tanker services in the North, and I think we have succeeded through Buffalo Airways. They have developed a northern business. They own the business. They are operating it and they are maintaining northern aircraft with northern residents and northern businesses.

They are also providing training in the North with their value-added facilities. They have also offered to increase the benefits and reduce the annual charges for aircraft. Most importantly, there are at this point in time no northern businesses that own and operate air tankers in the Northwest Territories, and any new operator that would like to have a chance at it, if they are successful would have to either joint venture with a firm that has air tankers and probably would most likely have to come from the south.

Seven years ago when this government through a huge debate and discussion decided to develop a northern aircraft fire fighting business and bring the equipment and benefits north, I think we have succeeded in that. Thank you.

Further Return To Question 377-14(5): Negotiated Contract For Air Tanker Services
Question 377-14(5): Negotiated Contract For Air Tanker Services
Item 6: Oral Questions

Page 1077

The Speaker

Thank you, Mr. Minister. Supplementary, Ms. Lee.