This is page numbers 231 - 258 of the Hansard for the 15th Assembly, 4th 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 energy.

Members Present

Honourable Brendan Bell, Mr. Braden, Honourable Paul Delorey, Honourable Charles Dent, Mrs. Groenewegen, Honourable Joe Handley, Mr. Hawkins, Honourable David Krutko, Mr. Lafferty, Ms. Lee, Honourable Michael McLeod, Mr. McLeod, Mr. Menicoche, Honourable Michael Miltenberger, Mr. Pokiak, Mr. Ramsay, Honourable Floyd Roland, Mr. Villeneuve, Mr. Yakeleya

---Prayer

Item 1: Prayer
Item 1: Prayer

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The Speaker

The Speaker Paul Delorey

Good afternoon, colleagues. Welcome back to the House. Before we begin, I would like to remind Members that the second language in the House today is French. Orders of the day. Item 2, Ministers' statements. The honourable Premier, Mr. Handley.

Minister's Statement 25-15(4): Energy
Item 2: Ministers' Statements

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Joe Handley

Joe Handley Weledeh

Mr. Speaker, this winter all Canadians face higher energy prices, and Northwest Territories residents are no exception. The global trend towards higher energy costs, combined with the impact of hurricanes Katrina and Rita, have driven up the price of oil considerably.

To help residents prepare for increased energy costs, we have developed information and tips on simple and effective conservation measures homeowners and businesses can take, and we have increased funding for energy conservation assistance programs through the Arctic Energy Alliance. Conservation is the most effective way to save energy and offset the cost of increased home heating fuel, gas and power.

During the coming weeks and months, residents will hear public service announcements and will see advertising, information brochures and posters containing useful information to help them conserve energy. A number of regional workshops are also planned to offer advice and guidance to those people interested in making their homes and businesses more energy efficient.

I am inviting my fellow Members of the Legislative Assembly to participate in our energy conservation campaign and to join me in leading by example by reviewing our own personal energy conservation practices in our workplace here in the Legislative Assembly and in our homes. I hope we can all work together to help our constituents make the tough choices in their personal spending to help deal with the effects of these increases on their household bills.

Higher fuel costs also impact government operations, and we are taking steps to lower our own energy consumption. I have met with all deputy ministers and reinforced the urgent need for conservation within government departments throughout the NWT. We have plans in place to ensure energy is used responsibly and to advise staff of steps they personally can take to conserve energy in the workplace.

Energy conservation has always been an important consideration in the design and construction of GNWT facilities. Many of the tried and proven conservation practices have been included in the Good Building Practices for Northern Facilities document that Public Works and Services has developed for use by staff and consultants. This guideline is being updated to capture new technologies and practices and will be more rigorously applied to GNWT projects.

In the long term, we recognize the value of securing more stable and reliable energy sources. We are working to realize our region's potential as a supplier of alternate energy such as hydroelectric power. There is enormous potential for hydro generation in the Northwest Territories, and we continue to explore this potential to its fullest.

The 15th Assembly's commitment to care and protection of the natural environment includes responsible energy consumption and conservation of resources by all governments, industries and individuals in the Northwest Territories. We intend to play our part to ensure residents are fully informed of the choices available to them. Mahsi.

---Applause

Minister's Statement 25-15(4): Energy
Item 2: Ministers' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Handley. Item 2, Ministers' statements. Minister Roland.

Minister's Statement 26-15(4): Taxes On Fuel
Item 2: Ministers' Statements

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, higher fuel costs are a concern for northerners and a concern for this government. As Minister of Finance today, I would like to provide some detail about how our tax system affects fuel pricing.

  • • The GNWT does not set or regulate the price of gas or other fuel products. The petroleum products division supplies 15 NWT communities on a full-cost recovery basis but does not set the initial price.
  • • There is no GNWT tax on home heating fuel.
  • • There is no GNWT tax on natural gas.
  • • There is no GNWT tax on propane, whether it is used to heat homes or power vehicles.
  • • The GNWT tax on aviation fuel is less than half the national average.
  • • Only three Canadian jurisdictions have on-highway fuel tax rates lower than the NWT.
  • • Only two Canadian jurisdictions have lower diesel tax rates than the NWT.

The GNWT fuel taxes are set at a fixed rate per litre. We receive no extra revenue when fuel prices increased. The government does not intend to increase the tax on fuel, but we will not be decreasing or eliminating it either.

Reducing taxes on gasoline and diesel fuel will not help residents conserve energy; however, a reduction in taxes could result in decreased funding for much needed programs and services for our residents. The GNWT does not directly benefit from the royalties of oil and gas production and doesn't receive any financial advantage from higher oil and gas prices.

Our government believes the most effective approach to higher fuel costs is each northerner's commitment to reduce consumption. During this session, we will be introducing a supplementary appropriation bill requesting funds to be directed towards a conservation and education campaign designed to help residents cope with the increases in the fuel bills they will experience this winter. The federal government has recently announced that Natural Resources Canada will establish an office of petroleum price information, or OPPI. The OPPI will provide information on how markets work through ongoing analysis of the factors affecting petroleum supply and demand.

In mid-October, representatives from the Department of Industry, Tourism and Investment will attend the federal/provincial/territorial workshop to discuss the terms of reference and rules of engagement for the office of petroleum price information. We will have some general discussion on the role of the OPPI.

It is the intention of this government to work closely with the OPPI as a single-window access to consumer information and federal government programs in areas such as energy efficiency. Thank you, Mr. Speaker.

---Applause

Minister's Statement 26-15(4): Taxes On Fuel
Item 2: Ministers' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Item 2, Ministers' statements. The honourable Minister of Municipal and Community Affairs, Mr. McLeod.

Michael McLeod

Michael McLeod Deh Cho

Mr. Speaker, as we know too well, the price of fuel and power over the last several years has been continuing to escalate, and the price of crude oil has risen more than 40 percent since January of 2005. This has prompted the Department of Municipal and Community Affairs and the Department of Transportation to take actions to mitigate the impact and to continue to plan for future conservation initiatives.

Transportation has taken a number of initiatives in the past to conserve on energy consumption, including rehabilitation and refits of major buildings. An example includes the retrofit of some of our maintenance garages with many translucent overhead doors to improve our energy efficiency and provide more natural light. We have also undertaken, in partnership with the Arctic Energy Alliance, numerous energy audits to determine what buildings and what retrofits should be considered. These audits resulted in building modifications to conserve energy.

Mr. Speaker, energy conservation is an ongoing issue for Transportation, and a number of initiatives are being pursued with this objective. This includes establishment of an equipment management system to better track equipment utilization expenditures and costs, and the development of an environmental strategy to consider, amongst other items, a wide range of activities to address conservation both in the departmental activities and wider transportation industry.

To address the many concerns for energy conservation, there are a number of initiatives being considered. This includes the implementation of a smart driving program for all operational drivers. The department will work with other GNWT departments in a broader implementation of energy conservation measures.

Mr. Speaker, the Department of Municipal and Community Affairs is also working to address the impact of rising energy costs, not as a direct user but as a key supporter of community governments.

We have seen, through the progressive work of communities such as Whati, where energy conservation and alternative energy use are a priority, that there are innovative ways for communities to reduce consumption and related costs.

In addition, Mr. Speaker, the department is working to finalize negotiations with the federal government on the transfer of gas tax funding to the Northwest Territories, and the funding is expected to flow to the NWT communities starting in this fiscal year.

Some Hon. Members

Hear! Hear!

Michael McLeod

Michael McLeod Deh Cho

This funding is intended to promote environmentally sustainable municipal infrastructure. Municipal and Community Affairs has pushed to broaden the project criteria for gas tax funding so that communities can use it to support energy efficient components of other infrastructure; for example, solar panels on a community office.

Mr. Speaker, Whati has been a leader in exploring options for energy conservation and alternative energy sources. However, Whati is not the only community undertaking work in this area. For example, Jean Marie River is looking into solar panel options for the band office, and Colville Lake is exploring alternative energy sources for the new water treatment plant.

---Applause

Mr. Speaker, we may never be able to keep up with the cost of fuel, especially at the current consumption level, so it is critically important to look at alternatives, and to support the community governments to lead the work on this at the community level.

In conclusion, Mr. Speaker, the departments of Transportation and Municipal and Community Affairs are taking action to address the ever-rising costs of energy. Rising costs will continue to be an ongoing issue, so it is essential that we look for innovative approaches to reduce energy consumption, limit costs and increase efficiency in

our use of non-renewable resources. Thank you, Mr. Speaker.

---Applause

The Speaker

The Speaker Paul Delorey

Thank you, Mr. McLeod. Item 2, Ministers' statements. The honourable Minister responsible for the Housing Corporation, Mr. Krutko.

David Krutko

David Krutko Mackenzie Delta

Mr. Speaker, I am pleased to inform the House about some of the steps that have been taken by the Northwest Territories Housing Corporation to further improve our energy management.

The Housing Corporation has taken a proactive approach to energy efficiency in its construction projects for many years. Additionally, the corporation has benefited greatly from the historically low rates of utility consumption by public housing tenants as compared to residents of private rental accommodations. Both efforts have lessened the impact of increased fuel and energy prices on the corporation and its clients and have helped to reduce greenhouse gas emissions for the Northwest Territories. These benefits will be further realized through the continued education and awareness of our clients regarding energy consumption.

Specific corporation efforts in this area are too numerous to list in this statement; however, there are some that I would like to highlight today. Local housing organizations have made a concerted effort to make use of energy-efficient appliances, fluorescent lighting and other measures intended to further reduce energy costs. In partnership with the Arctic Energy Alliance, the corporation has held energy conservation workshops in communities and conducted a comprehensive evaluation of the use of low consumption bathroom fixtures to replace the older, high volume units used in public housing units.

The corporation has also acted independently to further improve its energy efficiency. As an example, in 2004-05 the corporation installed four solar water pre-heaters for public housing units to determine cost effectiveness. The corporation also meets regularly with industry leaders with the goal of finding technologies that can further reduce energy use in our public housing units. One such meeting resulted in an initiative currently underway to field test high efficiency heating systems. These systems will be installed and evaluated in Hay River, Norman Wells and Inuvik.

Mr. Speaker, there are many other energy management initiatives that the corporation has implemented in recent years. I extend an invitation to all Members to contact me should they wish to discuss these initiatives in greater detail. Thank you, Mr. Speaker.

---Applause

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Krutko. Item 2, Ministers' statements. The honourable Minister of Education, Culture and Employment, Mr. Dent.

Minister's Statement 29-15(4): Energy Awareness
Item 2: Ministers' Statements

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Charles Dent

Charles Dent Frame Lake

Thank you, Mr. Speaker. Good afternoon. The recent rise in energy costs will have an effect on many NWT residents. While market forces may see the price of energy decrease, unfortunately there is no expectation that this will happen in the near future. Long-term solutions are needed.

This issue is broader than just the cost of department programs. We must also make a concerted effort to use our energy resources more wisely.

With this in mind, I would like to outline measures the Department of Education, Culture and Employment is considering to keep our overall costs down, while building public understanding of the importance of effective conservation practices. During the upcoming year we plan to:

develop an energy awareness campaign for our schools so that young people are aware of the need to be wise consumers of energy. This will help us address not only short-term objectives, but also create a future generation of citizens who exercise wise decisions around energy use. The campaign will build upon aspects of the curriculum that are already in place that focus on issues surrounding the environment and human habitation;

work with education authorities to document current practices in the use of energy in schools, set targets for decreasing consumption, and develop a plan to implement and monitor actions and outcomes. To do this, we will work closely with our partners -- those who utilize our facilities -- to ensure that plans are well understood and remain supportive of our program delivery;

develop an energy awareness campaign for residents who utilize our programs and services, including those accessing income support and seniors' programs. By providing information and referrals to experts, we will assist our plans in building their understanding of conservation techniques;

finally, we will work closely with organizations such as the Arctic Energy Alliance and Environment and Natural Resources to ensure that our awareness campaigns are coordinated in a manner that maximizes effectiveness and avoids duplication.

Mr. Speaker, I mentioned earlier that we are all faced with rising costs to meet our energy needs. Our social programs provide a safety net for people in greatest need. For example, our Income Support Program covers the full cost of utilities for qualified individuals. Our senior Home Heating Subsidy Program provides support based on the amount of fuel rather than the cost.

The Department of Education, Culture and Employment will be working with divisional education authorities and councils to determine how we can work together to address the high cost of fuel. I plan to discuss energy conservation when I meet with board chairs in November.

Mr. Speaker, energy conservation is an important goal. If we are to achieve success, we will need to enlist the support of all residents. By encouraging students to think and learn about energy conservation in school, they will help spread that message in their homes and communities. Thank you, Mr. Speaker.

---Applause

Minister's Statement 29-15(4): Energy Awareness
Item 2: Ministers' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Dent. Item 2, Ministers' statements. The honourable Minister of Environment and Natural Resources, Mr. Miltenberger.

Michael Miltenberger

Michael Miltenberger Thebacha

Mr. Speaker, the Department of Environment and Natural Resources is responsible for promoting energy conservation and the use of energy-efficient technology in the Northwest Territories.

Reduced energy consumption not only helps northerners deal with the increased cost of fuel, but it helps reduce the impact of fossil fuels on our environment.

Between 1996 and 2001, greenhouse gas emissions from the Northwest Territories rose by 60 percent, related to the increase in major development in the Northwest Territories. However, the NWT accounts for a very small portion of Canada's total annual greenhouse gas emissions: less than .3 percent. On a per capita basis, the NWT releases 40 tonnes of emissions per person per year, significantly higher than the national average of 22 tonnes per person per year.

These emissions have the potential to cause a change in our climate, which could significantly disrupt the global environment, and affects our ability to lead healthy and productive lives.

This government supports global and local actions to reduce emissions of greenhouse gases believed to cause climate change. These global actions include the Kyoto Protocol negotiated under the United Nations Framework Convention on Climate Change. The Northwest Territories has a responsibility to contribute to the Kyoto Protocol and support Canada's position as a leader amongst nations in protecting the global environment.

We are aggressively working to control greenhouse gas emissions. The Greenhouse Gas Strategy identifies a wide range of initiatives and proposed actions to achieve this.

I have met with the federal Minister of the Environment, the Honourable Stephane Dion, a number of times in the past few months to continue to work towards a bilateral MOU for cooperation on addressing climate change with the Government of Canada. Through the MOU we will be requesting a federal partnership fund to support hydro development in the NWT. We are hoping to be able to sign an MOU in early December at the Eleventh Conference of the Parties, COP11, which is a major international United Nations meeting on climate change being held in Montreal.

We are committed to working with the federal and provincial governments to develop an equitable approach to Canada's international commitment to reduce national emissions to six percent below 1990 levels by the year 2013.

Actions to control greenhouse gas emissions in the Northwest Territories are being developed in cooperation with a broad range of stakeholders. These actions will reduce the negative impacts of greenhouse gas emissions on our health and environment while minimizing negative impacts on our economy and taking advantage of the economic opportunities arising from the use of more efficient equipment and materials. Thank you, Mr. Speaker.

---Applause

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Miltenberger. Item 2, Ministers' statements. The honourable Minister of Industry, Tourism and Investment, Mr. Bell.

Minister's Statement 31-15(4): NWT Energy Plan
Item 2: Ministers' Statements

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Brendan Bell

Brendan Bell Yellowknife South

Mr. Speaker, reliable energy services such as electricity and heating fuel are essential.

The Premier and my Cabinet colleagues have outlined many of the measures that NWT residents, businesses and governments can and will take to counter the rising costs of these energy services in the short term.

However, conservation is just one element of the GNWT's responsibility for energy management. We must also address the underlying cause of increased energy costs.

In the long term, we will continue to require access to affordable and reliable energy sources to meet our daily needs and those of our growing economy.

Today almost all of our territory's annual energy supply is imported, in the form of fossil fuels, from southern Canada. We can neither control nor regulate the cost of this energy, and as we have seen, it is subject to sudden and large increases in response to world events, tragedy and the supply and demand nature of the global economy.

Mr. Speaker, I would like to seek unanimous consent to conclude my statement.

Minister's Statement 31-15(4): NWT Energy Plan
Item 2: Ministers' Statements

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The Speaker

The Speaker Paul Delorey

The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. You may conclude your statement, Mr. Bell.

Minister's Statement 31-15(4): NWT Energy Plan
Item 2: Ministers' Statements

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Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker and colleagues.

Mr. Speaker, we have significant renewable and non-renewable energy resources, including an extensive potential in natural gas and hydroelectricity right in our backyard.

The Department of Industry, Tourism and Investment, through its newly created energy unit and working with other departments and agencies, is now leading the development of a GNWT energy plan to develop and secure access to its own future and alternate energy sources. Developing these resources will serve not only to reduce energy costs in our communities, but also to generate new economic growth for our territory as a whole.

In the coming months, I will be collaborating with the Minister of Environment and Natural Resources to present a discussion paper revisiting our energy future. It will set the stage for a full and complete consultation on a broad scope of energy issues, beginning with the fundamental elements of supply, demand and regulation.

Together we will consider domestic and export markets for the development and use of our non-renewable,

renewable and alternative energy sources, like powering more of our communities and industries such as the diamond mines with hydroelectricity and identifying options for natural gas conversion in communities. It will mark, I hope, the emergence of the Northwest Territories as a supplier of secure, affordable and sustainable energy, first and foremost for itself, Mr. Speaker, and then for all Canadians and the North American marketplace. Thank you, Mr. Speaker.

---Applause

Minister's Statement 31-15(4): NWT Energy Plan
Item 2: Ministers' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Bell. Item 2, Ministers' statements. Item 3, Members' statements. The honourable Member for Nunakput, Mr. Pokiak.

Tuktoyaktuk To Inuvik All-weather Road
Item 3: Members' Statements

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Calvin Pokiak

Calvin Pokiak Nunakput

Thank you, Mr. Speaker. Mr. Speaker, I may be starting to sound like a broken record, but during the life of the 15th Assembly I will continue to pursue and raise the issue of a Tuktoyaktuk/Inuvik all-weather road.

---Applause

Over the last couple of months, the Mackenzie Valley highway has garnered national attention when our Premier managed to get support from his provincial and territorial counterparts advancing the project.

Mr. Speaker, this project can become a reality provided this government can work with the federal government to secure the necessary funding. I know that in the GNWT's Corridors for Canada there was a $15 million partnership agreement proposed to build an access road to gravel source 177. This is the start of the Tuktoyaktuk to Inuvik highway. It has been a couple of years, and I am hoping that the project can start to gain momentum.

Not to detract from the Mackenzie Valley highway, Mr. Speaker, the fact remains that the simplest way to connect the Canadian highway system from the Atlantic to the Pacific to the Arctic Ocean is to build the Tuktoyaktuk/Inuvik all-weather road first.

Canadian sovereignty is of interest to all Canadians, and connecting the Arctic Ocean to our national highway system would show the world that we are serious. An added benefit would be the increased economic development opportunities that would obviously follow the construction of an all-weather road, all-weather highway to Tuktoyaktuk. I could see many tourists waiting, wanting to drive the extra distance just to see Tuktoyaktuk and the Arctic Ocean. Prices should also go down for residents of Tuktoyaktuk.

Mr. Speaker, in closing, we need to make this dream a reality. We need to excite Canadians about a highway system that goes from coast to coast to coast, so that we can get funding from the federal government. We can make this happen and ensure our people are employed and not relying on income support. A highway would decrease the reliance on government programs in the Beaufort-Delta. Thank you, Mr. Speaker.

---Applause

Tuktoyaktuk To Inuvik All-weather Road
Item 3: Members' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Pokiak. Item 3, Members' statements. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Land For Development In Yellowknife
Item 3: Members' Statements

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Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you, Mr. Speaker. Once again I rise to bring the House's attention to the City's difficulty in getting the land it needs for development.

Yellowknife is a growing city; it needs land for homes, businesses and green space. It shouldn't come as a surprise to the MACA Minister. Although the Premier indicated in June that the government had no requests for residential land from the city before it, I understand now that that was not the case and that there were several applications still outstanding at that time.

I was pleased to hear the MACA Minister has recently made a timely decision on some parcels for the City of Yellowknife, but I was surprised and very disappointed that the majority of the requests were still at bay waiting further negotiations and the land selection process.

Despite the Premier's assurance last June that MACA and the Ministry of Aboriginal Affairs were working effectively and cooperatively with both the City of Yellowknife and the Yellowknives Dene, I don't know how other people define "effectively," but to me "effectively" means getting results in a timely way.

Mr. Speaker, people need houses and land to grow their businesses in our city. It is growing, and it needs help from this government. I know that we can come up with an arrangement respecting the rights and definitely the needs of the Yellowknives Dene that also recognizes the city's needs because it is growing.

I am here today to tell you that the City of Yellowknife wants to grow in a fair and reasonable way with clear, direct and fair consultation with the Yellowknives Dene. I don't believe that there will be a loser in any way. We can work so everyone can win together. At some point, consultation needs to end and decisions need to be made by this MACA Minister so the city of Yellowknife can grow in a fair and reasonable way.

Later today, Mr. Speaker, I will have thought-provoking questions for the Minister of MACA, and I look for defined leadership from that government over there. Thank you, Mr. Speaker.

Land For Development In Yellowknife
Item 3: Members' Statements

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The Speaker

The Speaker Paul Delorey

Thank you, Mr. Hawkins. Item 3, Members' statements. The honourable Member for Hay River South, Mrs. Groenewegen.