Mr. Walker emphasized the need for the act and regulations to be strenuously enforced to prevent what he referred to as "bootlegging." One scenario he provided was a truckload of soft drinks or juice brought from Alberta into the NWT. The "bootlegger" would have paid the lower Alberta deposits, which would allow him or her to sell the drinks at a lower cost than drinks with the NWT deposit, and enjoy an unfair advantage over NWT businesses complying with the regulations. Depots would have no way of knowing the NWT deposit had not been paid on those containers, and so would pay for their return, potentially costing the environment fund thousands of dollars. Mr. Walker's fear, which the committee believes does need to be addressed, is that "an environment where legitimate wholesalers and retailers are at a serious price disadvantage will be created and we will not be in business for long given our slim margins, if this act and regulations are not carefully thought out and executed." Mr. Walker is also concerned that prosecutions under this legislation may not be a priority for either the GNWT Department of Justice of the federal Crown. The committee would like to stress that the government must be vigilant in finding ways to minimize the risk of illegal activities so that legitimate businesses are not put at an unfair disadvantage.

One potential solution suggested by our colleague, Mr. Brendan Bell, the MLA for Yellowknife South, is that containers could be marked in some way to show the NWT deposit has been paid. The Minister advised that this had been considered, but that preliminary studies had indicated marking all beverage containers would not be feasible. Members would suggest the Minister request the advisory committee to investigate all possibilities further.

Mr. Speaker, I would like to ask Ms. Lee to continue on with the report.

Thank you, Mr. McLeod. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Some presenters spoke about how critical public education will be to the success of a beverage container recycling program, and underlined the need to have funds available for this purpose. While voluntary programs are already operating successfully in some communities such as Inuvik, recycling will be new for others. Mayor Evelyn Storr from Aklavik provided the example of people taking cans of pop out to their camps. "What they want to bring back is their muktuk and their fish and they do not want to bring back empty cans...We are asking people to try to change their lifestyle when we ask them to separate their garbage. Before, garbage was garbage."

The committee sees this as one of the reasons why it will be so important to have representation from small communities on the advisory committee, so that programs and education strategies can be designed to be as relevant to them as to the larger centres where recycling is already more common.

The department shared with the committee estimates of the costs to the average NWT household of the proposed beverage container recycling program. The estimates are $2.61 per month for households that return their containers to claim their deposits back, and $7.95 per month for households that do not return their containers.

The committee would like to remind the government that these are averages only, and that some households with more family members, or who consume more beverage containers than average will have higher costs. These costs may be significant for people with fixed incomes, and this should be reflected in the income support program.

Members heard from Ms. Katherine Silcock, from the City of Yellowknife, that she has experienced a number of difficulties finding places in Alberta that are willing to take NWT waste products including pop cans and tires. The committee would urge the government to get to work immediately on discussions with businesses and governments in other jurisdictions in order to ensure there are places to send NWT products.

The department indicated it expects that depots will end up taking in some containers that are sold before the deposits begin to be collected. Although this will be a cost to the environment fund, on the whole the result will be positive as containers will be recycled rather than going to landfills. The department will need to ensure depots are given startup funds that are adequate to cover any deposits they may have to pay out if containers have been stockpiled in the community for some time.

The department assured the committee that if there is no group or business in a community that is interested in operating a depot, no one will be forced to do it. However, one witness, Ms. Barb Armstrong of AB Salvage in Inuvik, wondered about what would happen in the opposite situation, where there is more than one group or business interested in recycling. How will the government decide who has the opportunity to run the depot or processing centre?

The department will need to consult and communicate on this issue in the near future so that existing businesses and organizations will know where they stand.

The Minister has advised the committee that Hay River, Yellowknife and Inuvik are the proposed locations for processing facilities. Members would recommend the government give some consideration to locating these facilities in smaller communities so they too could see some economic benefits from the program.

Presenters had a number of suggestions for future programs to deal with materials such as electronic waste -- also called e-waste -- batteries, used motor oil, construction waste and tires. These are all good suggestions which the committee hopes government will look at in future years. The possibility of programs targeted at industry, in particular resource exploration and development companies who have usually buried their waste or brought it to community landfills, was also discussed. Members hope this legislation will encourage all citizens, including corporate citizens, to be more proactive about reducing, reusing and recycling waste. Ms. Armstrong summed it up well when she said, "long gone are the days of solution to pollution is dilution...You bring it in, take it out." The committee would also encourage the government to consider how programs under this legislation might be tied with other environmental initiatives such as cleanups of old industrial sites.

Members hope that interested communities will be able to access money from the environment fund to undertake pilot projects. For example, Mayor Winnie Cadieux from Enterprise indicated that her community would like to enter into discussions with the government about potential reuse programs that could be located there.

The committee was impressed with the number of private individuals, business people, and members of environmental groups who made submissions or came to speak on this bill, and who are clearly willing to do what it takes to make this legislation work. Members would encourage the government to take heed of the advice provided by these people, and to welcome them as partners in developing and implementing programs and regulations.

Bill 22 is only the first step, Mr. Speaker. As Ms. Erica Janes from Ecology North said, "the next government needs to be committed to this legislation and committed to the overall desire to protect our fragile environment." The committee very much hopes that this will be the case.

That concludes the report on Bill 22. Mr. Speaker, I would like to ask the Member for Hay River North to introduce Bill 25.

Thank you, Ms. Lee. The honourable Member for Hay River North, Mr. Delorey.

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.

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.

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.

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.

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

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