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.