This is page numbers 1255 - 1298 of the Hansard for the 14th Assembly, 6th 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 Report 19-14(6): Report On The Review Of Bill 22: Waste Reduction And Recovery Act And Bill 25: Municipal Statutes Replacement Act
Item 11: Reports Of Standing And Special Committees

Page 1277

Paul Delorey

Paul Delorey Hay River North

Bill 25, Municipal Statutes Replacement Act

Introduction

Thank you, Mr. Speaker. The Standing Committee on Governance and Economic Development is pleased to report on its review of Bill 25, Municipal Statutes Replacement Act.

The committee would like to commend the work of the NWT Association of Communities and the department over the last several years to bring this bill before the Assembly. President Blake Lyons of the NWT Association of Communities informed committee that this review has continued through two territorial elections and at least three municipal terms. Members understand that municipal governments are looking forward to these long-awaited changes. As President Lyons stated, "Municipalities need adequate powers and discretion to deal with community needs now and in the future. The broader grants of power and discretion found in the proposed legislative changes will enable council to meet future needs."

The committee would also like to thank all the witnesses for their presentations and insights on this bill.

Public Review

The committee held public hearings in Inuvik on September 2, 2003, in Aklavik on September 3rd, in Hay River on September 8th, and in Yellowknife on August 26th, September 17th and 18th and October 1st. During the clause-by-clause review, which took place on October 1st, 52 motions to amend the bill were carried by the committee and concurred with by the Minister. Twelve of these motions were of a minor and non-substantive nature. The substantive motions are explained in the appropriate sections of this report. Following clause-by-clause review of the bill, a motion was carried to report Bill 22 as amended and reprinted back to the Assembly as ready for consideration in Committee of the Whole.

Settlements

The committee is very concerned that this bill does not include amendments to the Settlements Act, which it understands had been part of this initiative until very recently. The Minister and department advised the committee that these amendments were not brought forward because of a lack of capacity to draft the Settlements Act amendments at the same time as the proposed Charter Communities Act, Cities, Towns and Villages Act and Hamlets Act contained in Bill 25, as well as the proposed Tlicho Community Government Act. The Minister indicated that work has since been completed on the Settlements Act amendments, and that they would be ready for introduction early in the life of the new Assembly.

There are 20 communities that are incorporated under the three municipal acts listed above. Prior to 1999, that number was even higher as it included Iqaluit and the Nunavut hamlets as well. In contrast, there are only three communities incorporated as settlements: Enterprise, Fort Resolution and Colville Lake. The committee heard that despite the political strength of 20 or more municipalities, it took several years for Bill 25 to be brought before the Assembly. Will three small communities on their own be able to convince government to make their legislation a priority?

Further, the committee heard from Mayor Winnie Cadieux of Enterprise that the proposed amendments to the Settlements Act, which the Minister has said are now ready, may not adequately address the needs of those three communities. This also causes Members a great deal of concern.

The committee strongly recommends that the department consult with the three settlements on whether the proposed amendments to the Settlements Act will meet their needs; and further that the next government bring forward appropriate amendments to the Settlements Act in the early life of the 15th Assembly.

Liability

Bill 25 contains several provisions that will protect municipal governments from legal liability. This means that in some cases, people who are hurt, or whose property is damaged, will not be able to sue the municipal government for compensation. For example, one provision says that a municipal government "is not liable for loss or damage caused by snow, ice or slush on highways in the municipality, unless the municipal government is grossly negligent."

The committee understands that the NWT Association of Communities has been requesting these protections for years because insurance costs are constantly rising. These amendments would help to keep municipal insurance costs under control. The committee is also aware that all of the liability protections in Bill 25 are also found in various other Canadian territories and provinces.

Members gave a great deal of thought to these provisions. The right of people to go to the courts to get compensated for injuries or losses should never be limited or taken away lightly. Members were also concerned that municipal governments could take the liability protections as a licence to reduce levels of service and/or to be less diligent about safety. A related concern was that government could use municipalities' reduced legal obligations to justify providing them with less funding.

What most reassured Members that the liability provisions are reasonable was the information they received about the new insurance scheme being put in place for NWT communities. Committee was informed that this plan has a strong focus on risk management, and will reward communities that have a good risk management program. It is expected that this will in turn translate into safer communities. Ms. Yvette Gonzalez, from the Association of Communities, explained that, "the key words are responsibility and accountability. Under the program, because it is the members' program, the focus on risk is much higher. It is their dollars that remain in their fund for their premiums." This satisfied Members that in spite of the new liability protections, there will be a strong incentive for municipal governments to practice due diligence to protect the public from harm.

Mr. Speaker, I would ask that my colleague from Tu Nedhe, Mr. Nitah, continue with the report.

Committee Report 19-14(6): Report On The Review Of Bill 22: Waste Reduction And Recovery Act And Bill 25: Municipal Statutes Replacement Act
Item 11: Reports Of Standing And Special Committees

Page 1278

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Delorey. The chair now recognizes the honourable Member for Tu Nedhe, Mr. Nitah.

Committee Report 19-14(6): Report On The Review Of Bill 22: Waste Reduction And Recovery Act And Bill 25: Municipal Statutes Replacement Act
Item 11: Reports Of Standing And Special Committees

Page 1278

Steven Nitah Tu Nedhe

Employees On Council

Mahsi cho, Mr. Speaker. Bill 25 would have allowed municipal employees, other than managers, bylaw officers, or finance staff, to sit on council. The current Local Authorities Elections Act does not allow permanent full-time municipal employees to also be council members under any circumstances. Members and witnesses had a number of concerns about the conflicts that could happen in practice. Mayor Evelyn Storr of Aklavik gave the example of a clerk who receives payments for water bills on behalf of the hamlet, and who is also a councillor. As Mayor Storr said, "it all goes back to what the public sees and how the public looks at that...How could that person who receives cash from people for seven-and-a-half hours a day...the first person you see when you go into the office, sit on council and make decisions regarding the water rates?"

The committee eventually heard from the Association of Communities that all their members now agree no exceptions should be made to allow municipal employees to sit on council. During the clause-by-clause review, the committee passed and the Minister concurred with four motions which removed the provisions in the bill that would have allowed some permanent full-time municipal employees to sit on council.

Long-term Financial Commitments

Bill 25 defined long-term leases of one year or more as "long-term financial commitments." Municipal governments must meet the same conditions before entering into such leases as they do for long-term borrowing. This means that Ministerial and/or voter approval could be required for these leases.

The City of Yellowknife and the Association Communities told the committee that this requirement would be extremely cumbersome for both the municipal government and the Minister's office. Leases for vehicles, computers and photocopiers would need the same approvals as borrowing for large capital projects such as arenas and roads. Mayor Van Tighem of Yellowknife and President Lyons of the Association of Communities both suggested the definition of long-term financial commitment should be changed so that it includes only leases for terms of five years or more. The committee agreed this was a reasonable approach. During the clause-by-clause review, the committee and the Minister agreed to three motions to make these changes.

Market Disruption Policies

A provision of great concern to at least one presenter, Councillor Kevin O'Reilly of Yellowknife, requires that before engaging in any commercial or economic development activity, a municipal government must have a market disruption and conflict of interest policy. The provision further states that municipal governments may not engage in these activities if they would cause a serious adverse effect to existing businesses. There are no such provisions in the existing municipal legislation, and the committee understands there are no such provisions anywhere else in Canada either.

Councillor O'Reilly suggested that this is an "unreasonable and unnecessary intrusion into the affairs of the municipal order of government." He went on to point out that there is already an accountability mechanism in place, as municipal councils go to the polls every three years, and the public reaction will be swift if a council is supporting activities that stifle the private sector.

Councilor O'Reilly also advised committee that these provisions would create serious operational difficulties. It is not clear what municipal governments would have to do in order to satisfy the requirements of the legislation. Bill 25 does not provide definitions of "commercial" or "serious adverse effect." Councillor O'Reilly set out several scenarios that demonstrate the problems these provisions could create. For example, the city typically rents out the swimming pool for children's birthday parties. The privately owned bowling alley is also rented out for birthday parties. Is this market disruption? The city offers a variety of courses. If the city offers an art class or a cooking course, would this be a commercial activity? Would it cause a serious adverse effect on a business that also offers a similar course?

The department has not provided any guidance or draft policies to municipal governments, and was not able to explain the rationale behind these provisions to Councillor O'Reilly's, or to the committee's satisfaction.

The committee wishes to make it clear that it does not support municipal government activities that cause market disruption or compete unfairly against the private sector. It is likely a good practice for municipal governments to have market disruption policies. It may even be necessary for a council's political survival. The committee's difficulty is with placing a requirement for a market disruption policy in legislation, without making it clear what standard a municipal government has to meet in order to comply with the act. It may indeed be impossible to legislate a single standard for market disruption, and definitions for key terms like "commercial" and "serious adverse effect" that would be appropriate for all NWT communities. That is why committee believes the issue of market disruption is best left to local councils, and ultimately to local electorates.

The committee passed six motions during clause-by-clause review of the bill, which have the effect of removing the market disruption policy provisions. The Minister concurred with these amendments.

Unsightly Property

Bill 25 included new provisions setting out a procedure for municipal governments to apply to the Supreme Court for orders to require people to clean up their property. This created confusion because the Environmental Protection Act already gives municipal governments the power to make and enforce unsightly property bylaws. The City of Yellowknife interpreted the new provisions to mean they could no longer rely on their bylaws, but would have to seek court orders instead, requiring a great deal more time and expense.

The Minister and department advised the committee that their intention was to provide a process for municipal governments that do not have unsightly property bylaws to obtain clean-up orders from the courts. The intention was not to override or replace the provisions of the Environmental Protection Act.

Because of the time and expense involved in obtaining court orders, the committee does not believe these provisions would provide a reasonable process for municipal governments. Members expect that in most cases a council could draft and pass a new unsightly property bylaw more quickly than it could obtain an order from the Supreme Court. The committee concluded that the provisions are at the very least confusing, and is likely of little real value to municipal governments.

The committee passed six motions with the effect of removing the unsightly property provisions from Bill 25. The Minister concurred with these motions.

Imminent And Serious Dangers

Members were concerned with the provisions which allow municipal officers to order people to provide labour, equipment or materials where there is an imminent and serious danger to public health and safety. The committee understands these powers were intended for emergencies such as structural fires and gas leaks. However, the committee noted that in the Civil Emergency Measures Act, and also in some municipal legislation elsewhere in Canada, there are provisions for people to be compensated in these circumstances. The committee and the Minister agreed to three motions during the clause-by-clause review of the bill which provide for municipal governments to pay reasonable compensation to a person ordered to provide labour, equipment or materials in an emergency, unless that person caused the danger to arise in the first place.

Now, Mr. Speaker, I would like to ask that my colleague, the Member for Boot Lake, to conclude the report.

Committee Report 19-14(6): Report On The Review Of Bill 22: Waste Reduction And Recovery Act And Bill 25: Municipal Statutes Replacement Act
Item 11: Reports Of Standing And Special Committees

Page 1279

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Nitah. The honourable Member for Inuvik Boot Lake, Mr. Roland.

Committee Report 19-14(6): Report On The Review Of Bill 22: Waste Reduction And Recovery Act And Bill 25: Municipal Statutes Replacement Act
Item 11: Reports Of Standing And Special Committees

Page 1279

Floyd Roland

Floyd Roland Inuvik Boot Lake

Other Amendments

Thank you, Mr. Speaker. Eighteen additional motions to amend the bill were passed by the committee at the Minister's request in order to address concerns brought to the department's attention after Bill 25 was introduced. These amendments have the effect of:

  1. Removing the provisions that would have allowed councils to appoint officers other than the senior administrative officer to report directly to the council.
  2. Removing the requirement for the Minister to approve bylaws providing for the remuneration of council members. There was a consensus that it should be up to residents to hold councils responsible and to take action if they believe the remuneration is too high.
  3. Providing that orders made by municipal supervisors apply to "employees or agents" rather than to "all persons interested in or affected by them." There was a concern that the original wording would be too broad and could include, for example, all the community residents.
  4. Continuing the requirement that each municipal land transaction be made in accordance with both a general land administration bylaw and a bylaw specific to that transaction.
  5. Requiring that the senior administrative officer attend and record at all council committee meetings. Bill 25 already provided for the senior administrative officer's attendance and recording at council meetings.
  6. Changing council's bylaw making authority from "wild and domestic animals" to "domestic and feral animals". This was to clarify the intention that the authority was meant to include stray animals, and not wild animals such as bears and wolves.

Other Issues: Approval For Long-term Borrowing

The City of Yellowknife asked that consideration be given to removing the requirement for voter approval for long-term borrowing bylaws which are made in accordance with an approved debt management plan. The committee noted that although debt management plans require a public hearing process, they do not require voter approval. If the voter approval were no longer necessary for specific borrowing bylaws, there would be no mechanism for voters to veto a borrowing they do not want the municipal government to make. Members agree with the Minister and department that it is appropriate for voters to have an opportunity at some point in the process to approve or disapprove any borrowing and, therefore, did not support the city's request.

Appeals To Council

The City of Yellowknife also raised concerns with the provisions that allow residents to appeal orders made by municipal officers to the council. The committee agreed with the Minister's stated intention to provide an individual with the opportunity to have council review an order requiring that individual to take remedial action. The committee also noted that the Association of Communities suggested this issue could be addressed in the implementation phase of the legislation. Members, therefore, did not support the city's request to delete or amend this provision.

Remedial Orders

The Association of Communities and the City of Yellowknife both requested confirmation that the new provisions allowing municipal governments to issue orders requiring people to remedy dangerous situations would not affect the ability to issue other types of orders, such as cleanup orders under unsightly property bylaws or stop-work orders under zoning bylaws. The Minister confirmed the intention is that the ability of municipal governments to issue other types of orders, such as stop-work orders and cleanup orders, will not be affected by the new provisions.

Balanced Budgets

The Association of Communities requested that a requirement to prepare balanced budgets be included in the legislation. The department proposed amendments that would have required municipal governments to prepare balanced budgets, except where impracticable. Although the committee supports the objective of balanced budgets, it had difficulty with the wording proposed by the department, and also did not see the necessity of including a provision in the legislation that would be confusing and clearly unenforceable. Members would suggest that directions for balanced budgets could be included more appropriately in guidelines.

Conclusion

The committee is pleased that this long-awaited initiative could be brought forward in time for consideration by the 14th Assembly. Should Bill 25 be passed, Members would offer their congratulations to the department and the NWT Association of Communities, and wish them success in implementing their new legislation. Mr. Speaker, that concludes the report on the Governance and Economic Development.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1279

Floyd Roland

Floyd Roland Inuvik Boot Lake

I move, seconded by the honourable Member for Range Lake, that Committee Report 19-14(6) be received by the assembly and be moved into Committee of the Whole for consideration. Thank you, Mr. Speaker.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1280

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Roland. We have a motion on the floor. The motion is in order. To the motion.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1280

Some Hon. Members

Question.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1280

The Speaker

The Speaker Tony Whitford

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

The honourable Member for Inuvik Boot Lake, Mr. Roland.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1280

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. I request unanimous consent to waive Rule 93(4) and have Committee Report 19-14(6) ordered into Committee of the Whole for today. Thank you, Mr. Speaker.

Motion To Receive Committee Report 19-14(6) And Move Into Committee Of The Whole, Carried
Item 11: Reports Of Standing And Special Committees

Page 1280

The Speaker

The Speaker Tony Whitford

Thank you. The honourable Member is seeking unanimous consent to waive Rule 93(4) and have his report ordered into Committee of the Whole for today. Are there any nays? There are no nays. The report will be ordered into Committee of the Whole for today. Item 11, reports of standing and special committees. The honourable Member for Frame Lake, Mr. Dent. Just a minute, the chair asked for the report of standing committee. The honourable Member put up his hand and the chair recognized his hand. Item 11, reports of standing and special committees. None. Item 12, reports of committees on the review of bills. The chair now recognizes the honourable Member for Frame Lake, Mr. Dent.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 12: Reports Of Committees On The Review Of Bills

October 7th, 2003

Page 1280

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. Mr. Speaker, the Standing Committee on Accountability and Oversight wishes to report Bill 34, Tlicho Land Claims and Self-Government Agreement Act, back to the House for consideration in Committee of the Whole. Thank you, Mr. Speaker.

---Applause

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 12: Reports Of Committees On The Review Of Bills

Page 1280

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Dent. Item 12, reports of committees on the review of bills. Item 13, tabling of documents. The honourable Member for Hay River South, Mrs. Groenewegen.

Tabled Document 101-14(6): Letter From NWT Biathlon Association In Opposition To The Proposed Recreation And Sport Council
Item 13: Tabling Of Documents

Page 1280

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. Mr. Speaker, I wish to table a letter from the NWT Biathlon Association expressing opposition to the proposed recreation sport council. Thank you, Mr. Speaker.

Tabled Document 101-14(6): Letter From NWT Biathlon Association In Opposition To The Proposed Recreation And Sport Council
Item 13: Tabling Of Documents

Page 1280

The Speaker

The Speaker Tony Whitford

Thank you. Item 13, tabling of documents. The honourable Member for Nahendeh, Mr. Antoine.

Tabled Document 102-14(6): Business Credit Corporation, 2003 Annual Report
Item 13: Tabling Of Documents

Page 1280

Jim Antoine Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document entitled Business Credit Corporation, 2003 Annual Report. Thank you, Mr. Speaker.

Tabled Document 102-14(6): Business Credit Corporation, 2003 Annual Report
Item 13: Tabling Of Documents

Page 1280

The Speaker

The Speaker Tony Whitford

Thank you. Item 13, tabling of documents. Item 14, notices of motion. The honourable Member for Mackenzie Delta, Mr. Krutko.

Motion 21-14(6): Censure Of The Minister Of Health And Social Services
Item 14: Notices Of Motion

Page 1280

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Thursday, October 9th, I will move the following motion:

NOW THEREFORE I MOVE, seconded by the honourable Member for North Slave, that the Assembly hereby censures the conduct of the Honourable J. Michael Miltenberger, Minister of Health and Social Services, for the lack of attention paid to the residents of small communities in the delivery of health care programs and services and in particular the inaction in failing to address the inequities in the delivery of services in many small communities.

Motion 21-14(6): Censure Of The Minister Of Health And Social Services
Item 14: Notices Of Motion

Page 1281

The Speaker

The Speaker Tony Whitford

Thank you. Item 14, notices of motion. Item 15, notices of motion for first reading of bills. Item 16, motions. Motion 16-14(6). The honourable Member for Hay River South, Mrs. Groenewegen.

Motion 16-14(6): To Develop Strategies For Diversified Diamond Processing, Carried
Item 16: Motions

Page 1281

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker.

WHEREAS the Government of the Northwest Territories has undertaken significant efforts over the past several years to ensure that the benefits of secondary industries related to diamond mining are enjoyed by Northwest Territories residents;

AND WHEREAS the benefits of secondary diamond industries include employment opportunities and other economic and social benefits;

AND WHEREAS despite the concerted efforts of communities such as Hay River, Fort Simpson, Inuvik and Rae-Edzo, all of the diamond cutting and polishing facilities are located in Yellowknife;

AND WHEREAS it is anticipated that De Beers diamond mine at Snap Lake will be in production by the year 2006;

AND WHEREAS the Premier has announced that he is confident that De Beers will honour a commitment for a Snap Lake of rough diamonds for processing in the Northwest Territories;

AND WHEREAS there is a strong need to support and enhance the economic and social conditions of all communities and regions through diversification of economic opportunity such as diamond processing;

AND WHEREAS whenever possible, our government should strive to ensure that the positive impact and benefits of resource development should be realized by a broad range of Northerners as articulated in our commitment to community economic development in "Towards a Better Tomorrow" and numerous other fora;

AND WHEREAS the Government of the Northwest Territories was actively involved in the establishment of the existing cutting and polishing facilities through training and financial inducements for companies willing to locate in the North;

AND WHEREAS other communities also deserve the same amount of support in their efforts to identify and attract potential operators in the field of diamond processing;

NOW THEREFORE I MOVE, seconded by the honourable Member for Hay River North, that the Government of the Northwest Territories, immediately undertake the development of a strategy to secure a stable supply of NWT mined rough diamonds of an economic size and shape for cutting and polishing;

AND FURTHER that the strategies must encompass communities outside of Yellowknife to ensure the distribution of direct and residual benefits as widely as possible;

AND FURTHERMORE that the Government of the Northwest Territories ensure that this strategy is adequately resourced to provide assistance and support for communities wishing to participate in the secondary diamond industry.

Thank you, Mr. Speaker.

Motion 16-14(6): To Develop Strategies For Diversified Diamond Processing, Carried
Item 16: Motions

Page 1281

The Speaker

The Speaker Tony Whitford

Thank you, Mrs. Groenewegen. We have a motion on the floor. To the motion.

Motion 16-14(6): To Develop Strategies For Diversified Diamond Processing, Carried
Item 16: Motions

Page 1281

An Hon. Member

Question.

Motion 16-14(6): To Develop Strategies For Diversified Diamond Processing, Carried
Item 16: Motions

Page 1281

The Speaker

The Speaker Tony Whitford

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

---Applause

Item 16, motions. Item 17, first reading of bills. The honourable Member for Weledeh, Mr. Handley.

Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 17: First Reading Of Bills

Page 1281

Joe Handley

Joe Handley Weledeh

Mr. Speaker, I move, seconded by the honourable Member for Sahtu, that Bill 32, Supplementary Appropriation Act, No. 2, 2003-2004, be read for the first time. Thank you, Mr. Speaker.

Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 17: First Reading Of Bills

Page 1281

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Minister. We have a motion. The motion is in order. All those in favour? All those opposed? The chair counted two in favour and two opposed. In the opinion of the chair the vote is tied. Order, please. The chair would just like to caution Members that when a vote is taken, it's a serious matter. The chair recognized a tie, therefore, the chair has to break the tie. The chair will vote in favour of the motion. Therefore, in the chair's opinion, the motion is carried.

---Carried

Bill 32 has had first reading. Item 17, first reading of bills. Item 18, second reading of bills. The chair recognizes the honourable Member for Weledeh, Mr. Handley.