This is page numbers 203 - 236 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 communities.

Topics

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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Michael McLeod

Michael McLeod Deh Cho

Thank you, Mr. Chairman. I wanted to ask a question here regarding oil and gas and realizing opportunities from resource extraction activities in the North, as the fifth paragraph states here. For many, many years, we have known in the communities, I am sure this government must have known -- I was not here so I cannot speak about that part of it. I do know since I became elected, I have been raising the concept of oil and gas. There has always been discussion about the benefits of oil and gas and it has even been compared to the jobs and the value-added activities that we have seen in the diamond industry. I know the territorial government, RWED, has put a lot of energy, many dollars and many resources towards developing the diamond industry. I am just wondering if they are looking at oil and gas and some of the benefits that we could see in terms of value-added.

I think we have lost some opportunity because nobody is really watching and monitoring. There is a pipeline being built in the Cameron Hills. For many years, many of us assumed that we would be looking at a refinery. However, there was no discussion on that idea, no discussion on that concept. I wanted to know if this department had done any research or cost/benefit analysis, or had raised this issue at any time, regarding the potential for a refinery in the Cameron Hills.

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 David Krutko

The Minister responsible for Resources, Wildlife and Economic Development, Mr. Antoine.

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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Jim Antoine Nahendeh

Thank you, Mr. Chairman. Mr. Chairman, the secondary industries and value-added activities study regarding the Mackenzie Valley Development Planning Committee is looking at the different resource development that is starting to occur in our area. The planning committee that I mentioned did a study, as I indicated, on the secondary industries and value-added activity. In that study, they did look at the possibility of a refinery as a result of Cameron Hills activity. 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 David Krutko

Thank you, Mr. Minister. Mr. McLeod.

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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Michael McLeod

Michael McLeod Deh Cho

Thank you, Mr. Chairman. I have not seen the contents of that study. I am not familiar with it. However, I am very concerned that we are treating the oil and gas sector a lot differently than we treat the other sectors. We do not allow the timber industry to take the merchantable timber out of the North whole. We insist that they machine them up here.

We are fighting. We see the Premier on the news, in the media fighting to keep the diamonds in the North so that we can have them polished in the North. We do not want unpolished diamonds to go south. We are not doing anything about oil and gas. We are allowing them to come in and build a pipeline without even consideration for a refinery.

I would like to get a commitment from the Minister that we are going to start to look at these things seriously. I also want to ask him who sits on this planning committee? I am not familiar with who the membership is.

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 David Krutko

Thank you, Mr. McLeod. The Minister responsible for Resources, Wildlife and Economic Development, Mr. Antoine.

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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Jim Antoine Nahendeh

Mr. Chairman, I will ask the deputy minister to reply to that. 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 David Krutko

Mr. Bob McLeod.

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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Bob McLeod

Thank you, Mr. Chairman. As the Minister indicated, we have the Mackenzie Valley development project team that has been set up. It involves all departments of our government. It also involves aboriginal governments that participate on a regular basis. There are a number of committees that have been tasked with dealing with different issues. One of the committees has been looking at value-added. It involves people from the different departments. We had people from RWED, people from Transportation and from the Financial Management Board services. We commissioned a study that was done and presented to the Mackenzie Valley project team. That study was circulated to all of the standing committee members. 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 David Krutko

Mr. McLeod.

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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Michael McLeod

Michael McLeod Deh Cho

Mr. Chairman, I want to ask one final question regarding the number of planning committees. I cannot keep track of everybody who is on every committee. However, I received a call from one of my constituents, who raised a concern that RWED has put the president of Paramount Resources [RA1]on one of their planning committees, Clay Rydell. Is that indeed the case?

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 235

The Chair

The Chair David Krutko

Mr. Minister. Mr. Bob McLeod.

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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Bob McLeod

I am not aware of it, unless he is representing some of the industry members. Perhaps he might be representing an oil and gas industry group, but I am not aware of it as such, but we can check on it.

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 David Krutko

Ms. Lee.

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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Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Chairman. I have a question on the Business Credit Corporation, if that is okay. I wanted to know about the criteria for getting loans from the Business Credit Corporation and in particular, the market disruption section. I would like to know, what is the extent of research that people do to figure out whether or not a specific loan application in question has any impact on existing markets in Yellowknife specifically?

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 David Krutko

Mr. Minister.

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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Jim Antoine Nahendeh

Mr. Chairman, I would like to ask the deputy minister to reply to that. 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 David Krutko

Thank you, Mr. Minister. Mr. Bob McLeod.

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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Bob McLeod

Thank you, Mr. Chairman. Generally, if it involves a loan, we let the private sector, or the market, take care of itself. We do not take any market disruption factors into consideration.

However, when it comes to grants and contributions that are made available by our government, if there is market disruption, we generally do not make the grant or contribution available, unless the company that is being affected agrees that is okay for us to give them the money. Generally, that is the rule of thumb that we operate under.

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 235

The Chair

The Chair David Krutko

Thank you, Mr. McLeod. Ms. Lee.

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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Sandy Lee

Sandy Lee Range Lake

Just to be clear, Mr. Chairman, am I to understand that for the loan section, there is no consideration about market disruption? It does not matter about whether or not there is already a company or entity that is providing the exact same service?

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 David Krutko

Mr. Bob McLeod.

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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Bob McLeod

Thank you, Mr. Chairman. No, because there is really no benefit from getting a loan through our corporations because we charge a higher rate than the banks, and we are a lender of last resort, so generally, we do not lend to -- first of all, they have to have a viable project. Secondly, they have to have a rejection from the bank in order to get a loan from us, so I do not think there is a significant benefit. Although, as I say, it is more risk venture areas that we are into. 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 235

The Chair

The Chair David Krutko

Ms. Lee.

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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Sandy Lee

Sandy Lee Range Lake

Mr. Chairman, I wonder, what is the going rate that the credit corporation charges on a loan?