This is page numbers 505 - 540 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 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. Mr. Dent.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Chairman. I guess another question I would have is what role does the government play in an efficient, polished distribution system? I assume that that means that we play some role in the sale of polished diamonds once they have been polished in the North. I wasn't aware that the government was involved in that. I thought the factories worked with wholesalers and some directly with retailers throughout North America. I am just wondering what our role is in the polished distribution system, in other words, the sale system.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

The Chair

The Chair Paul Delorey

Thank you, Mr. Dent. Mr. Antoine.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

Jim Antoine Nahendeh

In the efficient polished distribution system, we are approached by the manufacturers in the North of the type of diamonds they get when they buy from their allotment from BHP Billiton. This is probably going to be the case once the Diavik distribution happens where the type of allotment that the producers sell to the manufacturers is an assortment of diamonds. They have the large ones with different colours and different qualities right down to the small ones. It's been raised in the House already and I mentioned that we, in the government, have to look at the package and have to work with the manufacturers now to see what is feasible to do in the North. We are told that the very tiny small ones are not economically feasible to do in the North. There's a certain size we can do in the North and the price is comparable to say New York cutting. So we are going to have to look at that and try to be efficient.

Like I said, the factories are gearing up. Through our efforts here and through our certificate program, we are told that a diamond that's cut and polished in the NWT and certified, there is a 10 to 15 percent premium for those diamonds. There is beginning to be a very high demand for the diamonds. I think the indication that the bigger players are buying into our operations here is an indication that the consumer is identifying with a Canadian diamond. It's a very big promotional tour for us. We also need to be involved in the certificate program to make sure it's efficient, to make sure the marketing is there and we interact with the producers to try to convince them to make the allotment to our manufacturers bigger and better. I think that's basically how we see the efficient polished distribution system. We interact all the time with the different manufacturers and different producers to make sure we have our manufacturing going in the right direction.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. Mr. Dent.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Chairman. If I understood the Minister correctly, what he spoke positively about is the government may have some influences on the packages of rough that the northern manufacturers can access. If that's the case, I would agree that that's an important role for the government to play. I was just concerned about the efficient polished distribution system, which the way I read it looked like we were trying to insinuate ourselves into the sales system of the finished goods. Thank you, Mr. Chairman. That's all the questions I have right now.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

The Chair

The Chair Paul Delorey

Thank you, Mr. Dent. Mr. Antoine, do you want to respond?

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 536

Jim Antoine Nahendeh

Yes, I take that comment. Our intention is not to be directly involved in the manufacturing of the diamonds, but we want to make sure that the secondary industry grows here. We are more or less concerned that the manufacturers are doing what they say they're going to do, producing their allotment of the diamonds that they get, and the products to be produced in the North. I think that is going to happen. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. At this time I'd like to recognize a few visitors we have in the gallery. We always welcome anyone to come in and observe our proceedings here, so welcome to the Legislative Assembly.

---Applause

Mr. Nitah.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. Mr. Chairman, just picking up on the questions and some answers between the Minister and Mr. Dent, is the Minister suggesting or saying that our government is able to influence the producers in the types of diamonds that are made available to the manufacturers in the Northwest Territories? Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Antoine.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Jim Antoine Nahendeh

I didn't say we influence them to give them bigger and better diamonds, but this is what the manufacturers are requesting and we pass that concern along. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. Mr. Nitah.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. Mr. Chairman, at the end of the day yesterday I did cover this a little bit. I find it hard to believe that as a government we will be able to influence the types of diamonds that the producers are going to be able to sell to the manufacturers, as this is a very accepted practice -- an assortment of diamonds being made available to manufacturers, cutters and polishers throughout the world. I think the area that we have to concentrate on as a government is the policy under which we govern our secondary diamond industry; the restrictive policy of not being able to take the lower quality, smaller diamonds which is costing our manufacturers dollars that they may not...It's costing more to cut and polish these diamonds than it generates revenues. I think that's an area that as a government we should concentrate on. Give them a little bit of breathing room in that area, if we can influence the producers and the types of diamonds that they make available to our manufacturers. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Antoine.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Jim Antoine Nahendeh

Thank you, Mr. Chairman. Mr. Chairman, our manufacturers have been telling us that they would like to get a better assortment. We bring that to the producers, and the producers are telling us that they will try to accommodate as best they can what the manufacturers are requesting. Our role is to try to bring the concerns forward. The response we got is that it is being considered, and I don't know whether it's actually being done. That's a different thing. But that's the role that we play. I know the industry is such that a producer has a package and usually there's an assortment. What they've told us is that they're trying to put in the assortment the best that they can for the manufacturers in the Territories.

As for the high cost of producing the small diamonds, it has been indicated earlier that we as a government are going to have a look at our policy again to see if we can accommodate the request from the manufacturers of how you deal with the smaller diamonds that are not economical to produce in the North. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. Mr. Nitah.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. Mr. Chairman, I think that's a wise move if we have the Minister start working on the areas that we do have some control over. I would like to ask a question under compensation benefits, Mr. Chairman. Mr. Chairman, we have $14.775 million under that. I'd like to ask what percentage of this is going to the South Slave district office in the area of economic development? This office is supposed to be providing programs and services and assisting the communities such as Lutselk'e and Fort Resolution in that area to develop business opportunities. How much of this budget is going to that office? How many personnel are we talking about? Thank you, Mr. Chairman.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Antoine. You're indicating that question be referred to Mr. Kennedy.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Kennedy

Thank you, Mr. Chairman. The salaries for the South Slave region is $2.68 million. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Kennedy. Mr. Nitah.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

March 5th, 2003

Page 537

Steven Nitah Tu Nedhe

Thank you, Mr. Chairman. Mr. Chairman, how many people are we talking about? How many people occupy that office? Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Nitah. Mr. Kennedy.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

Kennedy

Thank you, Mr. Chairman. The total number of employees we have in that region is 108. Thank you.

Bill 3: Appropriation Act, 2003-2004
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 537

The Chair

The Chair Paul Delorey

Thank you, Mr. Kennedy. Mr. Nitah.