Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Thursday, March 6, 2003, I will move the following motion: I move, seconded by the honourable Member for Deh Cho, that the implementation of the harmonization of income support and social housing strategy be discontinued in its entirety; and further, that any future initiatives to address income support and public housing inequities consider the inherent difficulties encountered by seniors and students in the North. Thank you, Mr. Speaker.
Debates of March 4th, 2003
This is page numbers 473 - 504 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
Motion 6-14(6): To Discontinue The Strategy To Harmonize Income Support And Social Housing
Item 14: Notices Of Motion
Page 487
Leon Lafferty North Slave
Motion 6-14(6): To Discontinue The Strategy To Harmonize Income Support And Social Housing
Item 14: Notices Of Motion
Page 487
The Deputy Speaker David Krutko
Item 14, notices of motion. Item 15, notices of motions for first reading of bills. Mr. Handley.
Bill 11: Supplementary Appropriation Act, No 3. 2002-2003
Item 15: Notices Of Motions For First Reading Of Bills
Page 487
Joe Handley Weledeh
Mr. Speaker, I give notice that on Thursday, March 6, 2003, I will move that Bill 11, Supplementary Appropriation Act, No. 3, 2002-2003, be read for the first time. Thank you, Mr. Speaker.
Bill 11: Supplementary Appropriation Act, No 3. 2002-2003
Item 15: Notices Of Motions For First Reading Of Bills
Page 487
The Deputy Speaker David Krutko
Item 15, notices of motions for first reading of bills. Item 16, motions. Item 17, first reading of bills. Item 18, second reading of bills. Item 19, consideration in Committee of the Whole of bills and other matters: Bill 2, Bill 3, Committee Reports 3-14(6), 4-14(6), 5-14(6), 6-14(6), and 8-14(6), with Mr. Lafferty in the chair.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 487
The Chair Leon Lafferty
I will call the committee to order. What is the wish of the committee? Mr. Dent.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 487
Charles Dent Frame Lake
Mr. Chairman, I would like to recommend the committee continue consideration of Bill 3 and Committee Reports 3-14(6), 4-14(6) and 5-14(6) concurrently, first of all to deal with the Department of Resources, Wildlife and Economic Development. Should we get through that, then move into Public Works and Services.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 487
The Chair Leon Lafferty
Does the committee agree?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
Some Hon. Members
Agreed.
---Agreed
Department Of Executive
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
The Chair Leon Lafferty
Before we take a break, I would like to draw the attention of the Members to the Executive office program summary, page 2-11. We need to conclude that item. Sorry, we were on the wrong page. It's page 2-5, operations expense, total operations expense, $50.183 million.
Department Of Executive
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
Some Hon. Members
Agreed.
---Agreed
Department Of Executive
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
The Chair Leon Lafferty
Does the committee agree that that concludes the Department of Executive?
Department Of Executive
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
Some Hon. Members
Agreed.
---Agreed
Department Of Executive
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
The Chair Leon Lafferty
We will now take a break.
---SHORT RECESS
Department Of Resources, Wildlife And Economic Development
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
The Chair Leon Lafferty
I will call the committee back to order. We are dealing with the Department of RWED. Does the Minister have any opening comments?
Minister's Opening Comments
Department Of Resources, Wildlife And Economic Development
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 488
Jim Antoine Nahendeh
Yes, Mr. Chairman, I have opening comments. Mr. Chairman, I am pleased to present the 2003-2004 main estimates for the Department of Resources, Wildlife and Economic Development. The main estimates propose total operational expenses of $85.509 million for 2003-2004. This is a $2.935 million or 3.6 percent increase from 2002-2003. There are no new initiatives but additional funding is proposed for a number of forced growth initiatives. The proposed capital infrastructure acquisition plan requests $2.935 million.
The proposed main estimates reflect the continuation of existing departmental initiatives aimed at preserving and protecting the environment while fostering the prudent and sustainable development of both renewable and non-renewable resources. I will now highlight the major initiatives that the department is undertaking this upcoming fiscal year.
Mr. Chairman, the Northwest Territories has experienced an unprecedented level of economic growth during the past few years. Our challenge today is to build on that growth, to encourage it, and to balance it with a resolute stewardship of our natural environment.
The department will undertake a number of major initiatives to protect the environment. Firstly, the proposed $1 million investment in the western NWT biophysical study will gather the baseline data needed to measure the impact of natural gas development on the land, air, water and wildlife. As well, the number and focus of wildlife studies conducted will increase and expand this year. These studies will determine the health and status of both endangered species, such as wood bison, as well as other species, including moose, grizzly bears and caribou.
Second, the department is currently developing and implementing new regulations to protect the environment. We will create new regulations governing the proper handling of used oil and waste fuels, revise the existing contaminated sites guideline to incorporate current Canadian standards, and develop a new air quality code of practice for the oil and gas industry.
Third, in June we intend to introduce the Waste Reduction and Recovery Act to create a legislative framework for a territory-wide waste recovery and reduction program that will include beverage containers. This should reduce the amount of waste going to land fill sites.
Fourth, to ensure that environmental and socio-economic impacts from northern development are fully considered, the department will expand its environmental assessment unit to increase the number of staff handling the environmental reviews of various projects in the NWT. There was $335,000 allocated in forced growth to fund these environmental assessment initiatives.
The department's role in protecting the environment is critical to maintain the healthy wildlife and forest resources that are the basis of the renewable resource economy and tourism. The department will continue with the following initiatives in these sectors.
Trapping is an important part of northern life and continues to provide seasonal income for many people living in our smaller communities. The department has increased the number of species covered under the fur pricing program and is developing further changes to the payment schedule of the program. Meetings with trappers will be held later this year to finalize changes to the fur pricing program before the next fur-trapping season that begins in November 2003. Our goal is to improve the opportunity for existing trappers to maximize their returns and to encourage new entrants into fur harvesting.
A healthy arts and crafts sector in the Northwest Territories will provide income for our residents, diversify our economy and promote our unique cultures around the world. The report of the NWT Arts Strategy Advisory Panel will guide the development of an effective arts and crafts strategy in the Northwest Territories during the next year.
The Government of the Northwest Territories has joined the federal government, the provinces and Yukon territory in signing two major agricultural agreements, the agricultural risk management agreement and the agriculture policy framework agreement. Together, these agreements will provide a framework able to support cost-shared initiatives valued at up to $2.5 million over a five-year period.
Mr. Chairman, the Northwest Territories is a major tourist destination for visitors from around the world. The proposed amendments to the Territorial Parks Act will enable us to better protect and preserve our territorial parklands, and plan more effectively for sustained economic development.
The department will continue to work with NWT Arctic Tourism Association and the Canadian Tourism Commission to market the Northwest Territories as a prime tourist destination. We will be providing the NWT Arctic Tourism Association with another $900,000 next year, which they will use to leverage up to a total of $1.8 million for marketing, through the CTC and others.
Forested lands in the NWT are primarily publicly owned. Land claim organizations in settled land claim areas own forest resources on their private land. The GNWT has the authority to issue a number of different licences and permits, including timber-cutting licences, under forest legislation.
A forest inventory, at a landscape level involving the classification of vegetation types from satellite imagery, has been completed for virtually the whole NWT. More detailed inventories have been completed for over forty thousand square kilometres in the NWT. The establishment of commercial timber operations can be carried out in areas where detailed forest inventories have not yet been competed. Interim timber supply analyses can be prepared to support applications for significant volumes of timber. Some communities are quite active in utilizing their timber resources to support their forest industry. The department continues to conduct forest inventories at a more detailed level in areas where there is potential for commercial opportunities. Inventory is an ongoing process, as forest areas change over time through growth, harvest, insect damage, disease, other industrial developments and fire.
Further growth in the NWT forest industry is contingent on the successful settlement of outstanding aboriginal land claims and the easing of a very tight labour market. The department is currently working with aboriginal leaders, including the Tetlit Gwich'in Council in Fort McPherson, to encourage employment in the forestry industry.
In the coming year, the department will revise its training strategy for forest fire management. Our goal is to enhance and upgrade the skills of contract and other personnel to meet the new national standards for the incident command system. Canadian fire agencies have agreed to adopt this system to facilitate the international exchange of fire personnel.
Mr. Chairman, the Standing Committee on Governance and Economic Development noted in their report on the draft main estimates that some members indicated that a negotiated contract was used in awarding the original 1995 contract to Buffalo Airways Ltd.. I would like to clarify for the record that the air tankers contract originally awarded to Buffalo Airways Ltd. in 1995 was done through a public request for proposal process.
Much of the economic growth the Northwest Territories has enjoyed in recent years can be attributed to our developing diamond industry. The start of production at the Diavik diamond mine at Lac de Gras earlier this month is yet another example of the growth and importance of this industry to our economy. We are currently working to conclude a socio-economic agreement with De Beers to cover its proposed diamond mine at Snap Lake. We want an agreement that will maximize primary business opportunities, maximize spin-off business opportunities and maximize jobs in the Northwest Territories.
Our secondary diamond industry also continues to grow. However, for it to reach its full potential, we need to persuade the competition bureau to change its definition of a Canadian diamond. The Canada Customs and Revenue Agency has defined a Canadian diamond as one mined, cut and polished in Canada. We agree, and we will continue to press the Competition Bureau to adopt this broader and fairer definition of a Canadian diamond.
In the oil and gas sector, the Government of the Northwest Territories will continue planning and preparing for the construction of the proposed Mackenzie Valley pipeline, including the negotiation of a socio-economic agreement that will ensure that the residents of the Northwest Territories receive their fair share of the benefits. This work is being done with the expectation that a preliminary information package will be filed shortly by the Mackenzie Delta Producers Group.
With our diverse and growing economy, the Northwest Territories is not only an energy producer, it is also a major energy consumer. The NWT energy strategy will provide a blueprint for reducing the high cost of energy to consumers, while ensuring continued access to reliable energy services. We are expecting to table this document during the June session.
Mr. Chairman, small businesses are critical components of our economy and the department will also continue work to support them. Our intent is to introduce legislation to create a new Business Development and Investment Corporation in June. The new corporation will combine the operations of the Northwest Territories Development Corporation, the Business Credit Corporation and the department's business programs under a single board and administration. It will provide community and economic development services, including financial assistance, business information, and promotion and mentoring services to existing and potential entrepreneurs in the Northwest Territories. The department now supports seven community futures organizations which provide small business lending activities to all the communities in the NWT. The department plans to reduce its overall budget by $500,000 per year once the new corporation is in full operation.
Through the Maximizing Northern Employment Strategy, the department will continue to support workplace-based training and other community capacity-building projects financed by the private sector partnership fund. We will also implement the memorandum of understanding on contracting signed with the Gwich'in Tribal Council, which will promote the awarding of government contracts to local aboriginal businesses.
Lastly, the Business Advisory Panel has submitted its report on manufacturing in the NWT. We will distribute the report widely, and based on the input received, we will develop and implement a strategy to support and encourage the growth of this important sector of our economy.
In conclusion, Mr. Chairman, the main estimates of the Department of Resources, Wildlife and Economic Development clearly indicate how it intends to preserve and protect our natural and cultural heritage. They also describe how the department intends to promote sustainable economic development that will benefit all the residents of the Northwest Territories. This budget reflects our best efforts to strike a balance between these important objectives and to do so in a way that is prudent and cost-effective. Mahsi, Mr. Chairman.
Department Of Resources, Wildlife And Economic Development
Bill 3: Appropriation Act, 2003-2004
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 489
The Chair Leon Lafferty
Thank you, Mr. Antoine. The Chair for GED, Mr. Roland.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
March 3rd, 2003
Page 490
Floyd Roland Inuvik Boot Lake
Thank you, Mr. Chairman. The Standing Committee on Governance and Economic Development met with the Department of Resources, Wildlife and Economic Development, or RWED, on January 20, 2003, to review the department's draft 2003-2004 main estimates.
The department is proposing a net decrease of $6,000 from its prior 2003-2006 business plans. This decrease is due to an adjustment in amortization expense for the department.
Division Of Department
As members reviewed the extensive and varied responsibilities of the department, the committee reiterated their opinion from prior years. The committee has expressed their concern that the combination of wildlife and environmental protection with economic development creates unnecessary complications and competing interests within one department. The committee also is concerned that as the focus of the NWT has turned to its increasing economic growth, the need for a focused program to monitor the effects of development on the environment, wildlife and communities is even more vital than before.
The committee has suggested in previous reports that there may be a need to divide the department into the two respective departments. One department would maintain responsibility for environmental and wildlife protection, as well as forest management and land use. The other department would manage all aspects of economic development programs and divisions. The committee feels that the division of RWED into two departments would eliminate the possibility of one activity overshadowing another vital activity.
The committee would like to suggest that the Premier's Task Team on Corporate Review and Transition Planning take the committee's suggestion to divide the Department of RWED into consideration for its final report.
Forest Fire Pre-Suppression Contracts
In September of 2002 the committee reviewed the business plans for the Department of RWED and was told that the pre-suppression water bomber contracts were due to be renewed shortly. The Minister stated that he had received Cabinet approval to proceed with another negotiated contract with Buffalo Air to renew for a further five years.
Several members of the committee noted that negotiated contracts were used in awarding the original contract to Buffalo Air and in the previous renewal for a total of seven years. At the time of their last renewal, Members of the 13th Assembly were assured that any future contracts would be put out for tender. Members are aware of the significant amount of these two contracts totalling almost $21 million dollars. In order to open up the process and allow for equal competition in the NWT as well as to guarantee the GNWT's provision of services at a competitive price, the committee had recommended that the water bomber contracts up for renewal be open to requests for proposals.
In its response to the committee, the department stated that it recognizes that contract services obtained by the GNWT must be provided at a reasonable cost. However, the department also stated that if contracts were awarded to a company other than Buffalo Air, the new company would require time to build the needed skills and incur costs associated with capital for infrastructure and the development of training programs. These costs would be reflected in the cost of the contracts to the GNWT.
On December 20, 2002, members and the public were informed that the two five-year contracts for air and land-based tanker services for forest fire management contracts were awarded to Buffalo Air.
Members are not convinced that there was an urgent need to renew the existing air contract with Buffalo Air for five years, rather than offering the contracts up for RFP. However, members were pleased to hear that the Minister had written letters to all the airline companies based in the NWT explaining his decision to award the contract.
The Minister also stated that a new RFP would be offered to NWT airline companies by year three of the current five-year contract with Buffalo. The government feels that this will allow local companies enough time to build up the necessary infrastructure and training programs in order to adequately compete with a well-established firm that has been operating the contract for a dozen years. The standing committee hopes that this process will allow for competitive bids from local businesses so that they, too, may continue to flourish.
NWT Business Development Corporation
Members noted the planned incorporation of a new NWT Business Development Corporation within the department. The committee has expressed concern repeatedly in prior reports about the need to streamline business development funding to reduce duplication and to clarify the process for business operators in the NWT.
Members had also expressed concern during the business plan review that any proposed changes to the department would require extensive legislative change. The committee received the legislative proposal for the new corporation in January and reviewed the proposal on January 22, 2003. The committee raised several issues that were of particular concern to them and made numerous recommendations in letters to the department.
In particular, members would like to be assured that the process of distributing funds throughout the NWT is fair to all communities and not focused on areas that are already experiencing significant economic growth. Members also raised concern about the methods of business development funding delivery within small communities, especially those without economic development officers or those ineligible for community futures funding.
During the review of the draft main estimates for the department, however, members limited themselves to the issue of potential savings that had been proposed by the department by the amalgamation of the numerous business funding programs operated by the GNWT.
In the initial discussions with the department, the committee was informed that the proposed amalgamation would see an annual savings of $500,000. However the committee was unable to identify this savings within the draft main estimates. Upon questioning, the department stated that the Financial Management Board Secretariat has taken the $500,000 off the top and had restated funds in the draft main estimates to take that into consideration.
However, the committee then noted an increase in the draft main estimates for the new NWT Business Development Corporation of $174,000. Members must conclude then that the proposed savings of $500,000 are now being reduced to a mere annual savings of $326,000. As the new corporation will ultimately be responsible for distributing over $8 million dollars in business development funding, m embers are concerned that the proposed amalgamation is not resulting in the desired outcome of administration expenditure savings.
Members look forward to reviewing the bill in committee and ensuring that their concerns are addressed prior to the planned incorporation for the summer of 2003.
Arctic Canada Trading Corporation
The Arctic Canada Trading Corporation, ACTC, has been a long-standing project of the NWT Development Corporation to provide a marketing outlet for local artisans. The ACTC purchased goods from local artists and proceeded to market these goods to retail organizations both in the NWT and throughout Canada. Members are aware that during its heyday the corporation provided a large supply of native art and crafts to the southern markets.
It would appear from the comments made by the president of the NWT Development Corporation during the review of RWED's main estimates that the ACTC is no longer operating in its former capacity. In fact, the president of the NWT Development Corporation stated that the ACTC is now down to a staff member of one.
Members also became aware that the Arctic Canada Trading Corporation had recently attempted to promote discount sales of items over the Christmas season through a promotional flyer. Retail outlets were upset to see a government-funded operation directly competing with local businesses. The committee asked if the new Business Development Corporation would attempt to directly compete with thriving independent businesses in the NWT. The committee was advised that there will be a retail representative on the new board for the Corporation and that the board will reconsider its current retail policy.
Finally, the committee feels that considerably more attention must be paid to assisting local artisans in marketing their wares. Many small communities in the NWT lack the resources to sustain a viable retail business community. Therefore, local artisans require assistance in both marketing their goods and/or shipping their pieces to NWT or southern markets. Members would like to see the development of a program to provide workshops and assistance directly to artisans within their own communities. Successful artists could provide these workshops and develop a valuable network of artisans throughout the NWT.
Petroleum Specialists
The issue of providing oil and gas specialists for those communities which will be significantly impacted by upcoming oil and gas exploration in their area was discussed.
During last year's review of the department's business plans and main estimates, the department committed to providing four new oil and gas specialist positions within impacted areas of oil and gas development. In specific relation to the oil and gas position in the Deh Cho region the Minister stated during the review of the main estimates on January 21, 2002, that he would fill that position. (Hansard, GED review of the 2002-2003 Main Estimates, RWED, p. 60)
The Minister followed up that commitment by stating in the House on February 27, 2002, in reference to the position in the Deh Cho region, "The position is not filled and we have to fill it." (Hansard, Feb.27, 2002, p. 222)
The Member for the Deh Cho region is particularly concerned that the communities impacted by new development in the region are currently unable to adequately negotiate with large multi-national oil and gas companies due to a lack of expertise in this area. Negotiations regarding impact benefit agreements, wildlife management, environmental concerns and the social impacts caused by increased activity in this sector are all vital areas that need to be addressed by community leaders. The Standing Committee on Governance and Economic Development recommends the Department of RWED hire an experienced person to assist the Deh Cho communities with negotiations related to increased oil and gas activity within their area as soon as possible.
Energy Strategy
The new Energy Secretariat was announced during the main estimates for 2002-2003. Members were told at that time that the secretariat would produce an energy strategy to help the NWT address serious concerns regarding the consumption of fuel, possible alternative methods of energy production and savings as well as future considerations for the pricing of fuel and distribution.
Some Members at the time expressed support for the secretariat but felt that the issue of energy would be better handled by RWED as opposed to the Department of the Executive. Members were pleased to see the Premier agreed with their recommendation and transferred responsibility for this new secretariat to RWED.
As the committee reviewed the business plans for the departments in September 2002, Members were disappointed to hear that the draft energy strategy was still unavailable for distribution. As many crucial decisions related to energy development, such as the proposed one-rate zone for the Power Corporation, were to be based on this report, members were concerned that they lacked this information heading into the final year of their term.
During the main estimates review, members were informed that the original draft energy strategy had to be substantially rewritten into a discussion paper before Cabinet would consider its release for public consultation. After the considerable amount of resources committed to this Energy Secretariat, Members had expected to receive a more detailed report than a discussion paper and in a much more timely fashion.
Forestry Management
The committee remains concerned about forestry management issues, especially given the complicated ownership and authority of forest lands in the NWT. As the committee pointed out in the last main estimates report, the lack of a timber inventory for the NWT is severely hampering efforts to establish commercial forestry operations.
While the committee recognizes that a detailed forest inventory will never be complete, it would like to be assured that the department has at least an estimate of the current forest inventory in the NWT or could at the very least provide a new timeline of when that estimate would be available. Until communities are provided with a basic knowledge of the resources within their areas, they cannot attempt to develop economic opportunities based on those resources. Baseline data is crucial for those communities to diversify their economic development. That concludes the Standing Committee on Governance and Economic Development's report on Resources, Wildlife and Economic Development. Thank you.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
The Chair Leon Lafferty
Thank you, Mr. Roland. At this time, I would like to ask the Minister if he would like to bring in witnesses.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
Jim Antoine Nahendeh
Yes.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
The Chair Leon Lafferty
Does the committee agree?
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
Some Hon. Members
Agreed.
---Agreed
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
The Chair Leon Lafferty
Sergeant-at-Arms, please escort in the witnesses.
I would like to ask the Minister if he can introduce his witnesses at this time.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
Jim Antoine Nahendeh
Yes, Mr. Chairman. I have with me today, to my left is deputy minister of Resources, Wildlife and Economic Development, Bob McLeod; and, to my right is Jim Kennedy, director of corporate services in the same department. Thank you, Mr. Chairman.
Standing Committee On Governance And Economic Development Comments
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 492
The Chair Leon Lafferty
Thank you. General comments. Ms. Lee.
General Comments