Mr. Dent.
Debates of Oct. 7th, 2003
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
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Charles Dent Frame Lake
If I understand it then, if we have 20 fires and each one is worth an average of $500,000, that totals $10 million in a year. The first $10 million we just pay for the replacement ourselves. We don't put in a claim for insurance. So that's up to $10 million a year that we could be spending out of our pockets in replacing fire damaged...The balance then. After $10 million, is there any deductible? Say there's a fire and the damages are worth $1,000, do we just put in for $1,000 and get that or is there a deductible? Excuse me, let me start again. Is there a deductible that would reduce the amount we would receive in claims after $10 million?
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Joe Handley Weledeh
Mr. Chairman, first of all, we would say our loss history has not been such that we would be seeing $10 million a year in losses. So there's a savings there. So I think our losses have been somewhere closer to $4 million on average. So it's unlikely we are going to, hopefully, see $10 million losses happening.
Once we reach that $10 million mark, if we had that kind of misfortune, there is no deductible after $10 million. Thank you.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. That amount the Minister just gave us on the losses that we have averaged in a year, is that the net amount after we receive...Right now, the existing program, or before this comes into effect -- maybe it already has -- anything over $1 million is claimable under insurance. So is that amount you gave us on average losses including the amount we receive back from insurance companies to replace facilities burnt, or is that just straight losses? Thank you.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Joe Handley Weledeh
Mr. Chairman, the amount I gave is the gross loss. Under the old program, we were liable for the first $1 million on each loss. But the number I am giving you is the gross loss we have seen on average.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Paul Delorey Hay River North
Thank you, Mr. Chairman. On this self-insurance program, could I get a little detail on how that's going to be set up? Are we going to start a fund that we would use to pay claims or losses from or will we always see expenditures in that coming forward as a supplementary appropriation? Is it the government's intention to set up a fund to recreate their own insurance program?
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Joe Handley Weledeh
Mr. Chairman, we will not set aside a fund from which to pay these. We will expense them as they happen. If there is no urgency, that would go into the capital planning process. If there is an urgency, then you might very well see it in a supp. But with our current fiscal situation, we wouldn't set aside a fund.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair David Krutko
Finance, operations expense, treasury, not previously authorized, negative $1.475 million.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
Department Of Public Works And Services
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair David Krutko
Public Works and Services, operations expense, management, not previously authorized, $36,000.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Brendan Bell Yellowknife South
Thank you, Mr. Chairman. Can the Minister reconcile for us the net book value and the market value that was put on the facility and explain how the market value was arrived at?
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1291
Voytilla
Thank you, Mr. Chairman. When disposing of this asset, we went out and got a market appraisal because our policy is we have to record it as a grant-in-kind, the fair market value of the property. So we had to determine that. We did retain an appraiser who went and appraised the property using two methods; the cost approach, which showed a fair market value of $780,000 and then they did the income approach, which showed no value and we blended the two approaches to come up with an estimate of what would be reasonable as a fair market value and arrived at a $390,000 fair market value for the tanks, and then there was land and other components that were transferred to get you to the $523,000 fair market value. The reason that showed as a grant-in-kind is because that is our estimate of the value of the property transferred to the business. The additional loss of $209,000 is to get us from the fair market value up to what the book value was of the asset on our accounts because we have to clear the entire asset off our books as it's no longer owned by us. So that's the reconciliation.
Bill 32: Supplementary Appropriation Act, No. 2, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1292