Clause 6.

We'll go back to the preamble, page 1. Ms. Lee.

Thank you, Mr. Chairman. I wanted to ask this question earlier, but I was told that I had to wait until we had reviewed the bill as a whole. The question I have about the preamble, first of all I think we are aware that a preamble of any legislation is very, very important. It sets out the contacts and the framework and the overarching power of that legislation. It's a statement of the purpose and intent of that legislation, as well as clarifying to the public why it is that the legislature took the action of passing the legislation. May I ask the Minister what this preamble says, and what he is telling the public about the purpose and intent of this act? Thank you.

Minister responsible for the bill, Mr. Handley.

Mr. Chairman, the first paragraph, "Whereas the principle of equal pay for work of equal value has been internationally recognized as a human right," the purpose of that is to explain the policy, the law it intended to achieve. The preamble's clauses can be useful in interpreting the various specific provisions of the statute.

The second paragraph, "Whereas the Government of the Northwest Territories is committed to ensuring that male and female persons in the public service continue to be protected against systemic wage discrimination through the recognition and exercise of the right of equal pay for work of equal value." This clause explains that male and female public service employees currently have the right of equal pay for work of equal value in the NWT, and that this protection against systemic discrimination will continue in the future.

In the third paragraph, "Whereas the provision of a right to equal pay for work of equal value in the public service furthers the leadership of the Government of the Northwest Territories on employment equality issues among employers in the Northwest Territories." This clause confirms that employment equality is a matter of concern in the GNWT, and in its capacity as an employer, it's well positioned to set a positive example for other NWT employers. Thank you, Mr. Chairman.

Preamble. Ms. Lee.

Thank you, Mr. Chairman. By virtue of this legislature passing this legislation, we are setting up a regime that is to implement this legislation and it will need people to do that. So I would like to know from the Minister if he could advise as to what sort of workforce he's looking at that will be established to implement this legislation, especially the person who would... I mean, the Commissioner will do his or her job, but I'm sure he or she will have staff that work under him that would do the technical analysis for what constitutes equal pay for work of equal value. So could the Minister advise as to what the cost of equal pay and workforce numbers are? Thank you.

Mr. Handley, to the preamble.

Mr. Chairman, in addition to the equal pay commissioner who will be retained on a retainer as required, we expect that there's a requirement for one person who will work in FMBS doing research, monitoring equal pay for work of equal value issues. So, Mr. Chairman, at this point we expect one employee. Thank you.

To the preamble. Ms. Lee.

Thank you, Mr. Chairman. Mr. Chairman, does the Minister have any idea when this legislation will come into force? I guess that depends on how quickly the government can get organized to set up the office to establish that. Thank you.

Ms. Lee, the question that you asked could have been better put under clause 6, but, Mr. Minister, if you would like to answer.

Mr. Chairman, the next step, of course, is for us to get an exemption through section 66 of the Canadian Human Rights Act. Second is that we would have to have our human rights commission in place and operating so that this one coincides with our Human Rights Act. Thank you.

To the preamble.

Bill as a whole, as amend.

Does the committee agree that Bill 14 is ready for third reading, as amended?

Mr. Chairman, yes, I have opening comments. Mr. Chairman, it is my pleasure to appear today before Committee of the Whole to consider Bill 13, Deh Cho Bridge Act.

Almost everyone in the Northwest Territories knows the costs, inefficiencies and inconveniences of having our transportation links cut seasonally for uncertain periods of time. Freeze-up, of course, comes during our Christmas season and can play havoc with our plans for the holidays. Students are caught at break-up trying to return from postsecondary schools in southern Canada. The first motor tourists of the season make the unhappy discovery that spring comes later in the North than it does in the South. Shipments we're counting on are delayed and do not arrive when we need them. The prices of consumer perishables are subject to the added costs of alternative transportation and extra handling. We pay either the direct cost of carrying extra inventories to get us through the interruption, or the indirect cost of doing without items we need because stockpiles are depleted.

The proposed Deh Cho Bridge will eliminate the supply irregularities in the day-to-day operation of our North Slave economies and beyond. Anyone who has been subject to these unpredictable disruptions will recognize the benefits of dependable transportation.

There is no practical way of measuring the economic benefits of reliable transportation exactly. Some people, no doubt, will benefit more or less than others. Some businesses will benefit more or less than others. Some communities might benefit more or less than others. There is no way to calibrate the toll rates so finally as to take into account the precise economic benefits of a permanent bridge crossing.

We want a system of tolls that is simple to administer and that people can easily understand. A more complex system that tried to tie toll charges to measurable economic benefits would have intolerably high administration costs. Suffice it to say that everyone who has been subject to disruptions in the ferry service at Fort Providence will appreciate the big difference a permanent bridge will make. People are willing to accept toll charges that are collected efficiently and go directly to paying down the bridge.

The Deh Cho Bridge Act is the essential enabling legislation that will authorize the Minister of Transportation and the Government of the Northwest Territories to enter into a public/private partnership with the Deh Cho Bridge Corporation. As set out in the memorandum of agreement of November 15, 2002, the Deh Cho Bridge Corporation will obtain the regulatory approvals, raise the financial capital, design, build and operate and maintain a highway bridge over the Mackenzie River at Fort Providence. Under this arrangement, the Deh Cho Bridge Corporation is a true partner with government in the construction and operation of this new piece of highway infrastructure. As this is much more than a conventional contractual relationship, the legislative authority is required to give the Minister of Transportation and the Executive Council the authority to complete the partnership arrangement.

Mr. Chairman, I think we should all be pleased with the provisions of Bill 13 that make the disposition of toll revenue clear and transparent for all parties, directly or indirectly affected by the tolls. The proposed Deh Cho Bridge is a large capital infrastructure commitment for which the government will assume financial obligations that it must carry over the next 35 years. The government will meet its obligations mainly through the collection of tolls. It is in everyone's interest that the collection and disbursement of the toll revenues should be subject to the test of public scrutiny.

Bill 13 establishes a special purpose Deh Cho Bridge fund to enable the close monitoring of the toll revenues in and out of a special fund. In addition, the bill requires the Minister to prepare an annual report on the transactions of the Deh Cho Bridge fund. With these transparency provisions in place, I have every confidence that the management and administration of the toll rates and revenues will be subject to close and open scrutiny. The Assembly, the public at large, the Deh Cho Bridge Corporation and the trucking industry should all be satisfied that the toll rates in effect at a given time are sufficient to meet the government's obligations, and are directed solely to that purpose. It is in no one's interest that year after year the bridge fund should accumulate either a surplus or a deficit. The government of the day will be anxious to demonstrate that its administration of the toll rates strikes just the right balance between payables and receivables.

In short, Mr. Chairman, Bill 13 has all the mechanisms in place to ensure that the toll rates and revenues are managed soundly.

The Deh Cho Bridge Act is an important piece of legislation that has been carefully drafted for this special purpose of enabling a public/private partnership to build a bridge across the Mackenzie River. I think all of the Members will agree that the proposed Deh Cho Bridge is a worthwhile and long overdue addition to the territorial transportation system. I urge all Members to give their support to the Deh Cho Bridge. Thank you, Mr. Chairman.

---Applause

Thank you, Mr. Handley. Before I go to the standing committee for comments, I would like to take this opportunity to recognize and introduce a gentleman on my right, Mr. Adrian Wright, who the Speaker has appointed as special Law Clerk to review the Deh Cho Bridge Act. I'll call on the standing committee that reviewed Bill 13 for comments. Ms. Lee.

Standing Committee On Governance And Economic Development Comments

Thank you, Mr. Chairman. Mr. Chairman, as deputy chair of the Governance and Economic Development committee, I'm pleased to report our committee's report on Deh Cho Bridge Act, Bill 13.

Mr. Chairman, the Standing Committee on Governance and Economic Development conducted public hearings on Bill 13, the Deh Cho Bridge Act, on April 30, 2003, in Fort Providence; on May 28 in Rae-Edzo; and on April 24, May 16, and June 5 in Yellowknife. The committee would like to thank the witnesses who appeared before us and the Minister and his staff for presenting the bill.

The committee heard broad support for the Deh Cho Bridge from witnesses including representatives of the NWT Motor Transport Association, the Dogrib Rae Band, Dogrib Treaty 11 Council and members of the public, and was made aware of resolutions of support from the NWT Association of Communities, the Dene leadership and the Fort Providence Combined Council Alliance. The committee is also supportive of the Deh Cho Bridge project, and applauds the work of the government and the Fort Providence Combined Council Alliance to make this project a reality.

Members and witnesses did, however, have a number of questions and concerns about how the bridge will be built, operated and financed.

The bridge is expected to be a $55 million project that will be amortized over 35 years and financed in large part by tolls on commercial vehicles. The viability of the project, as currently envisioned, depends on there being enough traffic to provide sufficient toll revenues. Members and some witnesses had a number of questions about the government's and Bridge Corporation's traffic projections. The Minister and Bridge Corporation indicated that in their opinion the risk of the bridge losing money over the 35-year period is minimal. The Minister advised that even with half of the current traffic to mines, the project would still be viable.

Committee heard that in spite of the proposed tolls on commercial traffic, the bridge will, for the most part, lower overall freight expenses, in particular by eliminating costly delays caused by break-up and freeze-up, and line-ups at the ferry. For example, information provided by the Deh Cho Bridge Corporation estimates a savings to the Yellowknife Direct Charge Co-op of about $300,000 per year. However, some Members and witnesses are concerned the tolls will result in increased costs to fly-in communities north and east of Great Slave Lake. The Minister advised committee that the estimated cost increases to fly-in communities are one-third cent per pound of freight, or about $10,000 total per year for all these communities together. Some Members suggested a subsidy should be put in place to compensate residents of these communities.

The Minister was asked about whether the bridge would foreclose the possibility of government support for other potential routes. The Minister indicated that the GNWT would still be open to other routes if there is good public reason and they can be shown to be viable.

The committee heard that there may be opportunities to use the bridge to carry utilities such as pipelines, power lines or communications cables. The bill is silent on who would decide whether the bridge could be used for these additional purposes. Members would have preferred this issue be addressed in the bill, however, the Minister advised that it is currently being negotiated with the Bridge Corporation and that including provisions in the bill would interfere with the negotiation process. The Minister did indicate that in his view the GNWT should retain final say on what the bridge could be used for.

Mr. Chairman, because the bridge will be the only route for motorists and will be operated by a private corporation, Members had a number of questions about how the public interest will be protected. It is the committee's understanding that regardless of who operates the bridge, it will be considered a highway and, therefore, subject to legislation such as the Motor Vehicles Act. There is also provision in the bill for the GNWT to take over operation of the bridge as a last resort if this is necessary to protect the public interest. Questions were asked about who will be liable for any accidents that might happen on the bridge, or any damage to the bridge. The Minister's staff indicated that as this is a public/private partnership, risk and responsibility will be shared between the GNWT and Bridge Corporation. Provisions on indemnities and insurance will be negotiated between the parties.

One witness informed the committee he was concerned about how the people currently employed by the ferry operations and ice road construction will be affected by the bridge. The committee was made aware that no GNWT employees will be affected, and that no assistance is planned by the GNWT for contracted employees as it is anticipated there will be a net increase in jobs as a result of the bridge.

The Deh Cho Bridge Corporation was asked what the process would be for awarding work contracts for construction of the bridge. The corporation indicated that the major contract will go to a bondable, reputable contractor, and that because of the specialized nature of the project there are some components of the construction, such as steel fabrication, that no northern company would be able to do independently. The corporation advised that it will try to separate out as many small contracts as possible, such as concrete, fuel, earthworks and camp/catering, so that northern contractors have an opportunity to bid on them.

The Minister and Bridge Corporation advised committee the initial toll will be between $5 and $6 per tonne. The NWT Motor Transport Association has suggested the tolls should be on a per axle basis, that vehicles of less than one ton should be exempt, and that fines for failing to pay tolls should be set at five times whatever the toll would have been. The committee does not have any position on these recommendations, but would urge the department to continue its consultations with the association in order to arrive at a mutually satisfactory agreement.

One member of the public suggested the tolls should apply to passenger vehicles as well as commercial vehicles. The Minister indicated this is not being pursued because the cost of collecting small fees from each passenger vehicle would likely exceed the revenue generated. The majority of committee agreed that passenger vehicles should not be tolled.

The committee had lengthy discussions on who should set the bridge tolls. The bill provides for the tolls to be established in regulation by the Commissioner in Executive Council. Members were not satisfied that the annual reporting requirement in the bill would provide an adequate check on the government raising tolls unfairly. The committee's initial suggestion was that tolls be set by act of this Assembly, or in regulations made on the recommendation of the Legislative Assembly as a whole. The Minister advised this would be unworkable as it would create an unacceptable level of uncertainty and risk for the project if the government did not have clear authority to set tolls.

During clause by clause review of the bill, the committee made four motions to amend the bill to protect the public interest by placing conditions on the government's ability to set tolls. One motion would have required tolls to be "fair and reasonable". The Minister did not concur with this motion as there was concern it could open up the door to legal challenges which would undermine the toll system.

The committee and the Minister did agree to two motions to amend the bill which will require toll revenues to be paid into a separate Deh Cho Bridge Fund. These amendments address some of the Members' concerns as they will prevent the government from using tolls to pay for programs or projects other than the bridge.

The committee and Minister also agreed to amend the bill in order to require the government to give 90-days' notice of proposed changes to tolls in the NWT Gazette and newspapers, and to hear representations from any interested parties. Members will be supporting an additional motion today to amend the bill to strengthen this provision so that 90-days' notice of changes to toll rates will be given to representatives of the trucking industry, businesses, aboriginal and municipal governments, and Members of the Legislative Assembly.

A minor technical amendment to the French version of the bill was also agreed to during the clause-by-clause review.

Following the committee's review, a motion was carried to report Bill 13, Deh Cho Bridge Act, to the Assembly as ready for Committee of the Whole. This concludes the committee's opening comments on Bill 13. Individual Members may have additional questions or comments as we proceed. Thank you, Mr. Chairman.