This is page numbers 503 - 530 of the Hansard for the 15th Assembly, 3rd 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 policy.

Topics

Return To Written Question 14-15(3): Government Investment Into The Northern Manufacturing Industry Over The Last 10 Years
Item 8: Returns To Written Questions

Page 520

Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, I have a return to written question asked by Mr. David Ramsay on March 29, 2004, regarding government investment into the northern manufacturing industry over the last 10 years.

The Department of Resources, Wildlife and Economic Development has a number of programs that support manufacturing in the NWT. The business development fund provides contributions to a variety of businesses for a wide range of needs. The BDF contributions, plus additional Ministers' contributions, in the amount of almost $4 million have been provided since 1995 to businesses falling within the manufacturing category. Contribution tracking delineated sectors beginning in 1995. The range of businesses with this category is from individual arts and crafts producers to large businesses.

The NWT Business Credit Corporation provides loans to NWT businesses. Loans in the amount of $5.255 million were provided to manufacturing businesses since 1998, the first year that sector distinctions were made in BCC annual reports.

In addition to these programs, RWED has assisted both the Northern Manufacturers' Association and a Business Advisory Panel. The Business Advisory Panel was established to undertake a review and make recommendations on supporting the manufacturing sector in the NWT. Total assistance for these groups was approximately $164,000. The Northern Manufacturers' Association has been inactive since 2003.

The GNWT has also supported the manufacturing sector in other ways. Total purchases by the NWT Housing Corporation from northern manufacturers from 1993 to 2003-04 were $18.755 million.

With the development of diamond mines, the GNWT lobbied extensively for value-added processing in the NWT. That lobbying effort was backed up by the provision of loan guarantees to attract diamond cutting and polishing facilities to the North. These guarantees amount to $19.8 million.

In summary, this total investment in manufacturing amounts to just over $48 million. Thank you, Mr. Speaker.

----Applause

Return To Written Question 14-15(3): Government Investment Into The Northern Manufacturing Industry Over The Last 10 Years
Item 8: Returns To Written Questions

Page 520

The Speaker

The Speaker David Krutko

Item 8, returns to written questions. Mr. Clerk.

Return To Written Question 14-15(3): Government Investment Into The Northern Manufacturing Industry Over The Last 10 Years
Item 8: Returns To Written Questions

Page 520

Clerk Of The House Mr. Tim Mercer

Mr. Speaker, I am in receipt of two returns to written questions. The first one is a written question asked to the Premier by Mr. Braden on March 22, 2004, regarding land and resources devolution negotiations.

The second is a written question asked to the Honourable Brendan Bell by Mr. Yakeleya on March 29, 2004, regarding federal funding for northern oil and gas development. Thank you, Mr. Speaker.

Return To Written Question 5-15(3): Land And Resources Devolution Negotiations
Item 8: Returns To Written Questions

Page 520

Clerk Of The House Mr. Tim Mercer

The Member asked whether all of the parties are now fully engaged in devolution negotiations. While the parties are all engaged in the overall negotiation process of working towards an agreement-in-principle, the Aboriginal Summit is recruiting a new chief negotiator and doing some internal work on their mandate. Consequently, Canada and the Government of the Northwest Territories have agreed to the summit's request to postpone the next negotiations session until April. In the meantime, the GNWT officials continue to undertake the necessary research, analysis and other internal work required for the negotiation of an agreement-in-principle.

The Member also asked about whether the previously agreed to negotiation schedule with a target date for the implementation of a final devolution agreement by 2006 is still achievable.

I believe we can still achieve the targets for a final agreement and effective date as set out in the framework agreement. Although the target date for an agreement-in-principle specified in the framework agreement has passed, all parties have committed to an agreement-in-principle for the summer of 2004.

This should not affect the other target dates for a final agreement in 2005 and an effective date of 2006.

The Member enquired about the mandate of the GNWT negotiations in this critical process. The previous government approved a general negotiations mandate. The mandate will continue to be reviewed and amended as negotiations progress and to ensure our negotiators will pursue the priorities of this government. As major changes to the mandate are considered, I will ensure that Members of this Assembly will have input because, as the Member rightly pointed out, this is a critical negotiation process and all of us need to work together to ensure success.

Return To Written Question 12-15(3): Northern Oil And Gas Development
Item 8: Returns To Written Questions

Page 520

Clerk Of The House Mr. Tim Mercer

In their budget, the federal government has put $75 million for northern oil and gas development. There is also another $10 million for 2004-2005 in the northern economic development strategy. Can the Minister please provide details that explain the following?

1."What this funding is for?"

In his speech from the Throne, the federal Minister of Finance made a commitment to responsible energy development in the North. The federal budget 2004 provides $75 million over three years to increase federal and regional environmental assessment capacity and streamline the regulatory process. The federal government technical budget document states, "This announcement will also ensure resources are available to conduct scientific research on current and longer-term environmental challenges associated with development in the Mackenzie Valley, Mackenzie Delta and the Beaufort Sea." That document also shows budget amounts of $20 million for 2004-05 and $30 million for 2005-06.

The budget also provides for $90 million over five years to support a northern strategy for economic development. This allocation is directed at all northerners, including approximately 50,000 aboriginal people living in northern Canada. Ten million dollars of this funding has been allocated to the 2004-2005 years. There is no information available as to the amount that will be allocated to the Northwest Territories.

2."Who can access this funding?"

3."How can you access this funding?"

4."When will this funding be available?"

With respect to the $75 million for northern oil and gas development, the federal government has not yet made the details public. The understanding of the Government of the Northwest Territories is that this funding represents federal program dollars that will flow to a number of federal departments and agencies as part of the preparation for oil and gas development. These agencies likely include:

  • • DIAND
  • • Natural Resources Canada
  • • Canadian Environmental Assessment Agency
  • • Department of Fisheries and Oceans
  • • National Energy Board
  • • Transport Canada

This commitment of additional funding is viewed as a positive initiative as it represents increased federal attention to northern oil and gas development. However, the GNWT will continue to work with federal counterparts and push for additional resources in areas where required.

5."What other programs does the GNWT have to help the Sahtu take advantage of oil and gas development and what is the best way for the Sahtu to access them?"

The Department of Resources, Wildlife and Economic Development regional staff, I partnership with the Department of Education, Culture and Employment, industry and others utilize the Maximizing Northern Employment Program for regional training initiatives. In addition, program funding from the Mackenzie Valley development project may be used to assist with regional initiative related to oil and gas development. In 2002-2003, the Business Development Subcommittee was formed to ensure that NWT businesses participate in the sustainable benefits from oil and gas exploration and related sustainable economic development opportunities. The committee is currently investigating the adequacy and availability of business financing in the context of the Mackenzie Valley oil and gas development.

While not targeted specifically to the development of the oil and gas sector, RWED has a number of programs that are accessible to businesses in general. These programs include the business development fund, grants to small businesses, as well as term loans, loan guarantees and contract security provided by the NWT Business Credit Corporation. The NWT Development Corporation can also participate with businesses through minority equity investments.

Furthermore, the NWT provides a contribution to the Sahtu Business Development Centre to assist with the operational costs of the organization. This organization

provides business counselling services and is an additional source of business loans within the region.

These programs can be accessed through the local economic development officer, the regional business development officer, or the Sahtu Business Development Centre. Staff can provide assistance to the prospective clients in determining the needs and feasibility of a proposal. They can also assist in identifying which program or programs would be an appropriate source of financing for a specific proposal.

Return To Written Question 12-15(3): Northern Oil And Gas Development
Item 8: Returns To Written Questions

Page 522

The Speaker

The Speaker David Krutko

Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Item 11, reports of standing and special committees. Item 12, reports of committees on the review of bills. Item 13, tabling of documents. Mr. McLeod.

Tabled Document 27-15(3): Promoting Independence: NWT Housing Corporation 2002-2003 Annual Report
Item 13: Tabling Of Documents

Page 522

Michael McLeod

Michael McLeod Deh Cho

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document entitled Promoting Independence: NWT Housing Corporation 2002-2003 Annual Report. Thank you, Mr. Speaker.

Tabled Document 27-15(3): Promoting Independence: NWT Housing Corporation 2002-2003 Annual Report
Item 13: Tabling Of Documents

Page 522

The Speaker

The Speaker David Krutko

Item 13, tabling of documents. Mr. Roland.

Tabled Document 28-15(3): NWT Liquor Commission 49th Annual Report, 2002-2003
Item 13: Tabling Of Documents

Page 522

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. I have three documents to table. I wish to table the following document entitled NWT Liquor Commission 49th Annual Report, 2002-2003.

Tabled Document 29-15(3): List Of Interactivity Transfers For The Period April 1, 2003 To March 15, 2004
Item 13: Tabling Of Documents

Page 522

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, as well, by section 32.1(2) of the Financial Administration Act I wish to table the following document entitled List of Interactivity Transfers for the Period April 1, 2003, to March 15, 2004.

Tabled Document 30-15(3): Travel Expenditures By Department For The Fiscal Periods 1999-00 To 2003-04
Item 13: Tabling Of Documents

Page 522

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, further to my Return to Written Question 4-15(3) I wish to table the following document entitled Travel Expenditures by Department for the Fiscal Periods 1999-2000 to 2003-2004. Thank you, Mr. Speaker.

Tabled Document 30-15(3): Travel Expenditures By Department For The Fiscal Periods 1999-00 To 2003-04
Item 13: Tabling Of Documents

Page 522

The Speaker

The Speaker David Krutko

Item 13, tabling of documents. Mr. Braden.

Tabled Document 31-15(3): News Release - Increase In Child Benefit Aids Low Income Yukon Families
Item 13: Tabling Of Documents

Page 522

Bill Braden

Bill Braden Great Slave

Thank you, Mr. Speaker. I have two documents to table. One is a press release from the Government of Yukon dated March 29th in which it outlines increases of 50 percent in child benefit allowances.

Tabled Document 32-15(3): St. Christopher House - A Primer On The National Child Benefit Supplement (ncsb) Clawback For Advocates
Item 13: Tabling Of Documents

Page 522

Bill Braden

Bill Braden Great Slave

The second document, Mr. Speaker, from St. Christopher House, an advocacy house for social causes. The document is titled A Primer on the National Child Benefit Supplement Clawback for Advocates. Thank you, Mr. Speaker.

Tabled Document 33-15(3): Statutory Declaration Of Residence For Mr. Roger Allen
Item 13: Tabling Of Documents

March 30th, 2004

Page 522

The Speaker

The Speaker David Krutko

Item 13, tabling of documents. Pursuant to subsection 19(b) of the Legislative Assembly and Executive Council Act indemnities, allowances and expenses regulations, I wish to table a statutory declaration of residence for Mr. Roger Allen, Member for Inuvik Twin Lakes, who is seeking reimbursement for his capital accommodation pursuant to section 24(1) of the Legislative Assembly and Executive Council Act for fiscal year 2004-2005.

Item 13, tabling of documents. Item 14, notices of motion. Mr. Delorey.

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 14: Notices Of Motion

Page 522

Paul Delorey

Paul Delorey Hay River North

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Friday, April 2, 2004, I will move the following motion: I move, seconded by the honourable Member for Tu Nedhe, that the Government of the Northwest Territories use the spirit and intent of the business incentive policy to its fullest advantage in promoting and growing NWT-based businesses;

And further, that the government undertake to conduct a comprehensive cost and benefit analysis of the business incentive policy and table it in the House during the fall 2004 sitting of the Legislative Assembly.

Mr. Speaker, at the appropriate time I will seek unanimous consent to deal with this motion today. Thank you, Mr. Speaker.

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 14: Notices Of Motion

Page 522

The Speaker

The Speaker David Krutko

Item 14, notices of motion. Mr. Yakeleya.

Motion 7-15(3): Support For Mackenzie Valley Pipeline Development
Item 14: Notices Of Motion

Page 522

Norman Yakeleya

Norman Yakeleya Sahtu

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Friday, April 2, 2004, I will move the following motion: I move, seconded by the honourable Member for Hay River South, that the 15th Legislative Assembly is committed to working cooperatively in support of a Mackenzie Valley pipeline;

And further that this Legislative Assembly is committed to working cooperatively and endorses the efforts of the Premier and Executive Council to seek with the aboriginal governments and the Government of Canada the control of our natural resources and the sharing among northern governments of resource revenues arising from development;

And furthermore that this Legislative Assembly urges the Government of the Northwest Territories, in partnership

with aboriginal governments, to continue support for the development of the Mackenzie Valley pipeline;

And furthermore that the Government of the Northwest Territories seek to maximize the benefits and mitigate the adverse impacts to NWT residents and communities that will result from the development of the Mackenzie Valley pipeline.

Mr. Speaker, at the appropriate time I will seek unanimous consent to deal with this motion today.

Motion 7-15(3): Support For Mackenzie Valley Pipeline Development
Item 14: Notices Of Motion

Page 523

The Speaker

The Speaker David Krutko

Item 14, notices of motion. Item 15, notices of motion for first reading of bills. Item 16, motions. Mr. Ramsay. Mr. Delorey.

Motion 7-15(3): Support For Mackenzie Valley Pipeline Development
Item 14: Notices Of Motion

Page 523

Paul Delorey

Paul Delorey Hay River North

Thank you, Mr. Speaker. Mr. Speaker, I seek unanimous consent to deal with the motion I gave notice of earlier today.

Motion 7-15(3): Support For Mackenzie Valley Pipeline Development
Item 14: Notices Of Motion

Page 523

The Speaker

The Speaker David Krutko

The Member is seeking unanimous consent to deal with his motion today. Are there any nays? No, there are not. You have unanimous consent.

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 16: Motions

Page 523

Paul Delorey

Paul Delorey Hay River North

Thank you, Mr. Speaker.

WHEREAS the intent of the business incentive policy, as stated by the Premier in a return to written question on March 25, 2004, is to support the development and growth of NWT businesses;

AND WHEREAS northern businesses support the NWT economy by purchasing local goods and services, providing jobs and training, and reinvesting their earnings;

AND WHEREAS, due to the higher costs of operating a business and developing new products in the NWT, northern businesses may need preference adjustments to compete successfully with southern firms for government contracts and tenders;

AND WHEREAS there are instances where the government has waived the business incentive policy;

NOW THEREFORE I MOVE, seconded by the honourable Member for Tu Nedhe, that the Government of the Northwest Territories use the spirit and intent of the business incentive policy to its fullest advantage in promoting and growing NWT-based businesses;

AND FURTHER, that the government undertake to conduct a comprehensive cost and benefit analysis of the business incentive policy and table it in the House during the fall 2004 sitting of the Legislative Assembly.

----Applause

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 16: Motions

Page 523

The Speaker

The Speaker David Krutko

The motion is in order. To the motion. Mr. Delorey.

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 16: Motions

Page 523

Paul Delorey

Paul Delorey Hay River North

Thank you, Mr. Speaker. Mr. Speaker, the business incentive policy is an issue that has been before us for quite some time now. An enormous amount of time was spent on this issue during the life of the last Assembly. We tried to deal with this business incentive policy in many different ways trying to make changes to it. It was obvious from the discussions that we had with the public and industry during the last government in proposing to change the business incentive policy, that industry was not consulted in the changes that they were proposing. For the most part, they didn't realize where the changes had come from and they were not to address the issues that the northern businesses had issues with.

The contract that has brought this motion forward now that we're talking about was 22 mobile homes, or 42, whichever way you want to look at it, Mr. Speaker, is before us and brought this issue to the forefront again. On this particular issue, in bringing this motion forward I want to speak for a moment on the fact that I am going to support the Minister going ahead with this contract based on the fact that there is a need in the communities. The Executive Council has put a decision forward to do this to meet the demands in communities, however, I would support it to the tune of these first 22 trailers, and I am going to watch very closely and fight for the government to make a decision and look at northern industry, whether it's through a pilot project or a contract of some kind with northern businesses, to be able to build these units in the future in the North and create an industry that can handle that.

I know, Mr. Speaker, that there are many concerns with the BIP. It has been said that the Government of the Northwest Territories doesn't get any value for its money by using the business incentive policy. However, Mr. Speaker, when we dealt with this policy before it was very obvious that the government cannot quantify whether they do get value for money with using the business incentive policy or not. There are many things that northern businesses do by using the business incentive policy that we have to take into consideration when we're trying to determine whether the government does get any value for this policy.

I also heard that companies abuse this policy. But, Mr. Speaker, we have to remember that the policy was put in place for businesses to be able to establish themselves in the North and build capacity in the North. Businesses that have been successful in doing that, Mr. Speaker, have established their business here, they have built capacity, they employ our people, they contribute to our economy and, Mr. Speaker, for some part they have created a competitive base here in the Northwest Territories that in a lot of cases and a lot of contracts that go out take the business incentive policy right out of the picture anyway because it's one northern firm bidding against another one. In those cases, it's very hard to qualify what savings if any or what extra costs the business incentive policy puts to programs and contracts that the government is putting out there.

One of the biggest problems that we heard the last time with the business incentive policy in the last government was the fact that the business incentive policy in its present form is not policed enough, and that's what leads to abuse of the policy. There was nothing in the last set of negotiations that even indicated that there was going to be an increase in the policy, other than creating your registry for the business incentive policy. I think that that is still a major problem with this policy, is the policing of it and making companies and government live up to the intent of the policy when it was first put in place.

So, Mr. Speaker, I bring this motion forward to draw attention of this issue to the government, and I think that

we have to. It's a policy of this government and I think that we have to show clear direction in this and leadership in following our own policy. I know the Minister has said that the policy or guidelines, but I think it goes further than that, Mr. Speaker. I think that we can't use it to our advantage when we want to, and justify that and turn around on another occasion and waive it just so that it suits our needs. What can we do with the policy? I think that the motion speaks to what we can do with this policy. I think that the Minister and the government should look at doing a comprehensive analysis of what this policy is, and I know that there must be lots of contracts out there that they do. Come back to this House and explain to the Members exactly what the costs are, and give us a good reason to either support or not support the policy.

But one of the biggest problems has been all along -- and industry has been asking for it -- is what are you basing your decisions on? Waiving the BIP or making changes to the BIP, what does it cost government, what benefits are we getting, and what is it costing us? I think in looking at that we have to look at a lot of issues, not just the price that companies are putting on bidding on a contract. I think they have to look at the northern content in that. How many jobs are we creating? How much money is staying in the North? I think that those are some of the very basic questions that the government has a responsibility to produce for Members to be able to make an informed decision.

So for my part in bringing this motion forward, I want to force the government or strongly encourage the government to take some action to get some concrete information on this business incentive policy so we, as Members and as a House, can decide on what we're going to do with this policy. Thank you, Mr. Speaker.

----Applause

Motion 6-15(3): Spirit And Intent Of The Business Incentive Policy
Item 16: Motions

Page 524

The Speaker

The Speaker David Krutko

To the motion. Mr. Braden.