This is page numbers 1675 - 1714 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 going.

Written Question 78-15(3): Positions Related To The Diamond, And Oil And Gas Industries
Item 7: Written Questions

Page 1691

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. My question is to Floyd Roland, Minister responsible for the Financial Management Board.

Can the Minister provide all GNWT positions and their locations related to the diamond, oil and gas industries?

Thank you.

Written Question 78-15(3): Positions Related To The Diamond, And Oil And Gas Industries
Item 7: Written Questions

Page 1691

The Speaker

The Speaker Paul Delorey

Thank you, Mr. McLeod. Item 7, written questions. 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. The honourable Minister of Municipal and Community Affairs, Mr. McLeod.

Tabled Document 116-15(3): GNWT Declaration On Volunteering
Item 13: Tabling Of Documents

Page 1691

Michael McLeod

Michael McLeod Deh Cho

Mr. Speaker, I wish to table the following document entitled GNWT Declaration of Volunteering.

Tabled Document 117-15(3): NWT Volunteer Support Initiative
Item 13: Tabling Of Documents

Page 1691

Michael McLeod

Michael McLeod Deh Cho

I would also like to table the NWT Volunteer Support Initiative. Thank you, Mr. Speaker.

Tabled Document 117-15(3): NWT Volunteer Support Initiative
Item 13: Tabling Of Documents

Page 1692

The Speaker

The Speaker Paul Delorey

Item 13, tabling of documents. Item 14, notices of motion. Item 15, notices of motion 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 17, Modernization of Benefits and Obligations Act; Bill 19, Appropriation Act, 2005-2006; Bill 20, Supplementary Appropriation Act, No. 3, 2004-2005; Committee Report 9-15(3), Standing Committee on Accountability and Oversight Report on the Review of the Draft 2005-2006 Main Estimates; Committee Report 10-15(3), Standing Committee on Governance and Economic Development Report on the Review of the Draft 2005-2006 Main Estimates; Committee Report 11-15(3), Standing Committee on Social Programs Report on the Review of the Draft 2005-2006 Main Estimates; Committee Report 12-15(3), Standing Committee on Rules and Procedures Report on the Review of the Report of the Chief Electoral Officer on the Administration of the 2003 General Election; Minister's Statement 86-15(3), Northern Strategy; Minister's Statement 88-15(3), Update on Oil and Gas Development in the NWT; Minister's Statement 89-15(3), Community Leaders' Conference Report: Preparing for the Pipeline; Minister's Statement 90-15(3), Social Impacts of the Mackenzie Gas Project; Minister's Statement 91-15(3), Preparing for the Mackenzie Gas Project; and, Tabled Document 108-15(3), Nation Building: Framework for a Northern Strategy. By the authority given to me as Speaker, by Motion 2-15(3), I hereby resolve the House into Committee of the Whole to sit beyond the hour of adjournment until such time as the committee is ready to report progress, with Mrs. Groenewegen 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 1692

The Chair

The Chair Jane Groenewegen

I call Committee of the Whole to order. We have a number of things on our agenda for Committee of the Whole. What is the wish of the committee for today? Mr. Menicoche.

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 1692

Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Thank you, Madam Chair. The committee wishes to consider Minister's Statement 86-15(3), Minister's Statement 88-15(3), Minister's Statement 89-15(3), Minister's Statement 91-15(3), Tabled Document 108-15(3) and then consider Bill 19, Appropriation Act, 2005-2006, particularly with the NWT Housing Corporation.

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 1692

The Chair

The Chair Jane Groenewegen

Is the committee agreed?

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 1692

Some Hon. Members

Agreed.

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 1692

The Chair

The Chair Jane Groenewegen

Then we will proceed with that after a break.

---SHORT RECESS

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 1692

The Chair

The Chair Jane Groenewegen

Okay, committee, I am going to call us back to order. The next item on our agenda is the discussion on the Northern Strategy. To start things off, I am going to ask the Premier if he will please provide some background and some opening remarks on the Northern Strategy. Mr. Premier.

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

March 1st, 2005

Page 1692

Joe Handley

Joe Handley Weledeh

Thank you, Madam Chair. I would like to take some time this afternoon to set the context for the debate on the Northern Strategy. Then the Minister of Finance will speak on some of the specific financial issues we face. I want to say that, while one of the most important tasks that we have as MLAs is to deal with our constituents and with specific issues that are of importance to them, we cannot ever forget that we also have a responsibility to take a lead on charting the course of the Northwest Territories over the next number of generations.

I believe the impact of decisions that we make as a government over the next couple of years is huge, because they will determine like never before in our history the direction that we take. The Northern Strategy provides a unique opportunity for northerners to involve themselves in discussion of the policy issues that shape the future of this territory; not just the next three or four years, but for generations. The potential of our territory is unlimited. I believe, and this government believes, that if we do it right, the Northwest Territories has the potential to be a have territory. The Northern Strategy can provide us with even more tools to allow our territory to grow politically, economically and socially.

To achieve this, devolution and resource revenue sharing must be at the heart of the Northern Strategy. We have an opportunity, through the management of our resources, to find that balance between economic development and environmental protection, to ensure northerners are primary beneficiaries of the development of northern resources, to diversify our economy in a way that limits the boom-and-bust cycle resulting from resource development, and to become a contributing member of the federation. It has been noted many times in the Legislative Assembly that our government has limited fiscal flexibility. Although we are doing what we can to mitigate the negative impacts associated with development, we cannot do it alone, especially for projects such as the Mackenzie gas project.

Madam Chair, I want to be absolutely clear that this government fully supports the Mackenzie Valley project. We support the Aboriginal Pipeline Group in negotiating taking an equity position in this project; something that would have been unheard of in the past projects of this magnitude. We support the work that is being done by the Producers' Group to negotiate access and benefit agreements. We support the Joint Review Panel process in reviewing this project. The piece that remains to be completed, and I repeat, is a fair devolution through a resource revenue sharing agreement. To accomplish this to ensure that northerners are primary beneficiaries of their resources, the federal government must step up to the plate. This means delivering on the Prime Minister's commitment to make substantial progress on this file by spring and a final agreement in 2006. We are concerned that without this commitment from the federal government, support for the pipeline in the territory will fade. That is why we need to stand united and continue to make the case that federal investments in the North are in the national interest.

We don't have much time for the North to compete with many other priorities in Ottawa. Nevertheless, we want to be as inclusive as possible in the development of the Northern Strategy. We have and will continue to engage northern leaders and key stakeholders over the next few months, respecting the vision, priorities and actions contemplated in the context of the Northern Strategy. Today, we look to you to hear the views of the Members

on how to proceed. Guided by the seven goals proposed in the Northern Strategy framework document, my colleagues and I would like to share some ideas of types of actions and initiatives we might want to pursue under each of the categories. I want to ensure that any initiative or action we pursue in the Northern Strategy are consistent with and built on the hard work we have done together in developing the strategic plan.

For example, under the Northern Strategy framework goal titled Strengthening Governance, Partnerships and Institutions, we must have a completed AIP on devolution and resource revenue sharing by spring 2005 for the Northern Strategy to have any relevance to the Northwest Territories. What this means specifically is obtaining the administration and control of public lands and waters and related jurisdictions and authorities normally held by a province, which are currently administered by the Department of Indian and Northern Affairs Northern Developments, Northern Affairs Program and the National Energy Board.

It means creating an effective, efficient coordinated resource management regime in the Northwest Territories that fosters sustainable development and provides certainty of process and outcomes. It also means receiving an adequate net fiscal benefit from resource revenue to provide for the provisions of necessary programs and services by Northwest Territories governments, and incentive for continued development.

In the Northern Strategy, devolution of resource revenue sharing is about nation building, about making the Northwest Territories self-sufficient and self-determined. However, a key component of any nation building in the Northwest Territories must include aboriginal people's desire to be self-determining. Emerging aboriginal self-governments will also need the resources to implement their self-government agreements. They will require the fiscal resources to provide programs and services, invest in infrastructure and maintain flexibility to address their own priorities; similar to other governments. This will be critical as you move away from the negotiation-type relationship with aboriginal governments, to a mutually-respectful intergovernmental relationship. Ultimately, it will be up to the Government of the Northwest Territories and aboriginal governments, in partnership, to fully realize the vision of a strong, unified self-reliant Northwest Territories.

Under the goal of establishing strong foundations for economic development, I want us to think about what inputs are critical to building a strong economy and what actions could help us diversify our economy. The NWT is facing an unprecedented rate of economic growth, but often the benefits of resource development are not felt equitably throughout the Northwest Territories, so we need to diversify our economy and level the playing field. Appropriate infrastructures such as transportation and communication are needed to support economic development and provide access to resources. Research and baseline data related to resources will assist in identifying opportunities for growth in various sectors. Tourism is a major opportunity to diversify our economy, particularly in our smaller communities. Tourism requires sustainable development for product development and marketing and a Northern Strategy can be a vehicle to advance this.

For example, while we have been successful in getting development in our non-renewable resource sector, we also need to focus attention on our renewable resources; one of the biggest ones is hydro energy. As Members are aware, the NWT is at a critical stage with respect to development of NWT hydroelectric resources. We have made the required investments up to this point, but now require additional resources for detailed engineering and environmental feasibility studies. Federal investments in hydro development appear to be ideally suited for inclusion in the strategy. There is a level of awareness of our potential within the federal government in Ottawa as well. The response has been very positive. Investments in hydro development can fit many federal programs, from Kyoto implementation and environmental funding, to infrastructure and economic development funding.

Under the goal of protecting the environment, there are opportunities for both the Territories and federal government to work together on various environmental issues, such as climate change and contaminant cleanup programs. There is a need to establish a monitoring and mitigation regime for the biophysical environment. Past environmental management practices have left an undesirable legacy of a number of contaminant sites in the Northwest Territories which must be addressed.

Under the goal of building healthy and safe communities, we need to work on priority issues such as healthy lifestyles, building community infrastructure and improving housing for our residents. Our government has re-affirmed its commitment to support a healthy lifestyle. Together with other social program departments, we are working to engage our federal counterparts to proceed with active living and healthy choices programming for all northerners.

We were pleased with the recent announcement of the federal government on MRIF and the new federal deal which will provide full GST rebate and a portion of federal gas tax revenues to communities. Both of these are welcome. Together with the commitment made by our government in the budget on additional funding for community infrastructure, we believe we are beginning to address the infrastructure deficit we have in many of our communities.

Under the goal of reinforcing sovereignty, national security and circumpolar cooperation, we are looking to engage the federal government on issues such as security and surveillance in the North, reinforcing Canada's sovereignty in the North, effective northern-based search and rescue capacity and leadership in matters of circumpolar cooperation.

Under the goal of preserving, revitalizing and promoting culture and identity, we can discuss issues of critical importance to northerners; issues such as the preservation and promotion of aboriginal languages for present and future generations; recognition and promotion of linguistic and cultural diversity of people in the North; promotion of the use of traditional knowledge and practices in northern decision-making; and, preservation and promotion of our unique northern history and culture.

Under the goal of developing northern science and research, there are opportunities for better coordination to set pan-territorial research and management agendas using a more collaborative ecosystem-based and integrated approach. Northern boreal forests are a unique

NWT resource. Knowledge of our forest, lands and environment is incomplete, and we need assistance to understand the impact on our wildlife habitat.

Large-scale development projects, in the past, have identified gaps and have promoted considerable research. Land-use planning efforts often identify further research needs. Programming specific to vegetation inventories, forest productivity, and ecological land classification require greater support. A cooperative approach is required to gather all of the baseline data prior to any major development.

I have only touched on the surface of the issues that can be addressed through a Northern Strategy process. There are many critical issues that I have not addressed due to the time constraints today. I know that Members of the Legislative Assembly will raise many of these issues. I look forward to hearing your views on the issues that we should consider in the development of a Northern Strategy.

I also want to take this opportunity to encourage fellow MLAs to seek input from their constituents and from other stakeholders in their communities. Thank you, Madam 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 1694

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Handley. Next, I have Mr. Roland.

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 1694

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Madam Chair. The vision adopted by the Assembly last May begins with the word self-reliant. The vision that leads off the Northern Strategy framework uses this phrase in its first sentence. Self-reliance means that we look to ourselves first to tackle our challenges and to improve our lives and our communities. If the NWT is truly to achieve our vision of self-reliance for individuals, families, communities and as a territory, we need the right tools and we need the resources.

There is much work to be done. With adequate financial resources, our job will be made easier and our chances of success enhanced. Governments in the NWT, territorial and aboriginal, need to ensure that fiscal arrangements meet the needs of our residents. These arrangements must provide adequate funding. They must include appropriate incentives to encourage economic development and growth. They must allow the territorial and aboriginal governments to work together to effectively and efficiently provide programs and services to the people of the NWT.

The Northern Strategy framework sets as a goal the strengthening of governments and institutions, in order to provide northerners with effective governance and greater control over decisions central to our future.

If this is to be achieved, the strategy must address the need for a fair resource revenue sharing agreement between Canada and the NWT governments. It must include adequate and responsive funding under both formula financing and aboriginal self-government financing arrangements. As a territory, we rely on the federal government for about 70 percent of our revenues. This large percentage recognizes that the cost of providing public services in the North is very high compared to the capacity of the NWT's 42,000 residents to finance those services.

In 2005-06, NWT residents and businesses will contribute over $240 million in territorial taxes and other own-source revenues. Furthermore, on average, for every dollar of expenditure made by the federal government in the NWT, more than 50 cents of federal revenue, or almost $500 million per year, is generated in the NWT for the federal government in the form of taxes and other payments. It is estimated that, between the diamond mines and the Mackenzie Valley pipeline, government revenues from resource development over the next 20 years will approach $20 billion. However, the federal government currently receives virtually 100 percent of royalties from resource activities in the NWT.

Although the GNWT does receive some tax revenue from development, under recent arrangements, much of this tax revenue is clawed back through a lower grant from Canada. Until we negotiate new arrangements with the federal government, Canada will continue to receive more than 90 percent of the total royalty and tax revenues from non-renewable resource development.

This is not sustainable. Given that it is northern governments, the GNWT and aboriginal self-governments will bear the brunt of the expenditure impacts created by development. It is northern governments that will face expenditure demands for job training, for counselling and for addition programs, for policing, for infrastructure repair and upgrading, and for environmental protection, to name just a few. We must ensure the that NWT governments have the fiscal resources to provide our residents with levels of public services comparable to those anywhere else in Canada.

The federal government has recognized that recent agreements with the governments of both Newfoundland and Labrador and Nova Scotia are a step towards self-reliance for those provinces. Clearly the negotiation of a resource revenue sharing agreement that ensures that northern governments receive a fair share of resource revenues is a critical requirement for continued development in the NWT. A major component of the Northern Strategy is the federal commitment that the conclusion of a devolution and revenue sharing agreement is a priority and that we will see significant progress in the negotiations by this spring.

Last October the federal government announced significant changes to our formula financing arrangement. The previously separate although similar arrangements between the federal government and the NWT, Nunavut and the Yukon have now been amalgamated. There will now be a fixed amount of funding for formula financing for all three territories: $1.9 billion for 2004-05; $2 billion in 2005-06; and, after that, the funding will grow at a rate of 3.5 percent a year. Canada will establish an expert panel to provide recommendations on the allocation of these fixed amounts among the three territories. These recommendations are expected before the end of 2005.

It is critical that new arrangements respect the fundamental principles that have guided formula financing since it was first implemented 20 years ago. They must ensure that each territorial government has adequate funding to provide public services in a high-cost environment. Arrangements must recognize that the territories provide programs and services to small populations in remote locations, often with health and social indicators well below national averages, with limited infrastructure and in the harshest climate in Canada.

New arrangements must also be responsive to changing circumstances within the territories. Territorial governments must be able to respond to changes in program and service needs brought about by population change, or economic changes affecting their jurisdictions. Arrangements must provide the territorial governments with the incentives to become as fiscally independent as possible. The territories should be encouraged to develop their economies and growing their tax bases and excessive clawbacks should be removed.

Finally, the new arrangements must not pit the territories against each other in order to meet our fiscal needs. The expert panel is tasked with making recommendations on territorial financing, and its work must reflect the vision articulated in the Northern Strategy framework; strong, responsive government working together to build a prosperous and vibrant future. This vision, however, does not apply only to territorial governments nor to the GNWT in particular. In the future, the GNWT will not be the only government in this territory delivering government services.

Aboriginal governments, as they conclude self-government agreements and draw down their jurisdictions, will assume some of these responsibilities for their citizens. Aboriginal governments must have the capacity to be self-governing. The establishment of aboriginal self-governments will lead to additional costs to run new self-government institutions and to build capacity in those institutions.

The GNWT, given its limited fiscal capacity, cannot fund incremental costs without reducing funding available for other programs and services. It is incumbent on the federal government to fully fund these incremental costs. Fiscal agreements on funding arrangements, including tax sharing, will need to be negotiated between each aboriginal government, the federal government and the GNWT. The primary objective of these arrangements should be to ensure that aboriginal governments have adequate funding over the long term to deliver programs and to run their government structures.

Fiscal arrangements between aboriginal governments, the GNWT and Canada must be structured so that all governments can operate effectively and efficiently. The arrangement must be workable, sustainable and consistent. They must adhere to the same principles that we expect in our formula financing arrangements with Canada. They must be adequate, sustainable and responsive.

The GNWT and the Aboriginal Summit have had very successful discussions over the years on how self-government fiscal arrangements could look and how they could be integrated into formula financing, resource revenue sharing and tax sharing. These discussions would even be more productive if the federal government were to participate as well. The Northwest Territories wants to be more self-reliant and, to accomplish this, we must have the right tools. Thank you, Madam Chairperson.

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 1695

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Roland. Next on the list, I have Mr. Ramsay.

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 1695

David Ramsay

David Ramsay Kam Lake

Thank you, Madam Chair. I thank both the Premier and the Minister of Finance for their brief overview of the Northern Strategy. It does cover a tremendous amount of ground. I know I have 10 minutes here; I am going to try to cover the points that I feel I need to cover and then I will pass it on to some of my colleagues here.

The first thing is that I am still not 100 percent convinced of the Northern Strategy and how the Northwest Territories is going to be seen by the rest of the country as being different than Nunavut or being different than the Yukon. I know that both the Yukon and Nunavut have a lot to offer Canada as well but, in terms of being an economic engine for the country, the Northwest Territories is by far a much better vehicle for that. I know our economy grew 21 percent last year, whereas Nunavut's actually shrank and the Yukon's was stagnant. I see it as being more pan-territorial in nature, rather than specific what it can do for us. That does cause me some concern; and I know that the Premier has talked about it, that the Northwest Territories is going to get it's say, is going to have it's specific needs addressed, but I have yet to really see how that is going to work out or be played out.

What I see is a bunch of lofty goals and objects how we are going to fit our own specific needs into those but, for what it is worth, I am going to try to do some of that. The fact that the federal government has actually figured out that there is life north of 60, after being in power in Ottawa for over 12 years, is something that I am really glad to see. Finally somebody woke them up in Ottawa and they realize that there is life north of 60 and this Northern Strategy, in my mind, is years overdue, it is about time. That is all I have to say and I do look forward to hopefully some good things coming out of it.

In the Premier's opening remarks, he was mentioning the fact that we have to ensure that northerners are primary beneficiaries of development and northern resources. I know that the Premier and Cabinet and the rest of my colleagues here have known for some time that I have been interested in developing a resource trust fund for the residents of the Northwest Territories. I am a believer that the federal government should have some time ago, perhaps even before diamonds were discovered here, maybe even when oil was discovered at Norman Wells, started to put some money aside for the residents who live here. They haven't done that and we are here, we have been talking about devolution and resource revenue sharing for almost 20 years and I really do hope -- and I do put a great deal of faith in the Premier and the Finance Minister -- that this government, after many governments before it, can finally deliver the goods on devolution and resource revenue sharing because it is long overdue.

I know the concept of a trust fund is something that, unless you had money to put into it, you don't have one. So the money that is leaving our territory today, I don't understand why and I know it is a complicated subject, but why couldn't Ottawa just look at putting some of this money aside? Both sides agree that there is an obvious dispute over who gets what and are we getting our fair share, and until such time as that dispute is resolved, I believe that Ottawa should be putting the money aside. Maybe not necessarily to us right away, but put it aside so that when that money starts to build up, we know the type of magnitude that we are talking about.

One of the things, and I know it comes up in the Northern Strategy, that I think needs to have some attention brought to it is the fact that Canada has long sovereignty in the Arctic and in the North and we have to try to find

ways of attracting people here to the Northwest Territories and to the Yukon and Nunavut, as well, but specifically the Northwest Territories. Ways in which we can do that have to be fully explored. I talked the other day about perhaps looking at making interest you pay on your mortgage as a tax credit, some things like that. We have to start thinking about these things and we have to start putting it back.

If the federal government is indeed interested in the Northern Strategy, in trying to develop the Northwest Territories, then I think they should be looking at helping us pay the price by instituting some kind of tax break or a beneficial tax regime. It's already somewhat beneficial to live here, but we have to make every effort to make it as advantageous for people to live here as possible. I think that will certainly go a long way towards giving us more of a population base, more of a workforce. We will hopefully get some type of market housing economy, even in some smaller communities, if we start looking at this; trying to get people into homeownership and thinking about owning their own home, putting down roots in the Northwest Territories. I think those types of things are things that I believe should be in a Northern Strategy.

The federal government has to understand that we are different; has to understand that the cost of living here is phenomenal. If you filled your fuel tank in your home lately you know what that is all about, or put gas in your car, or bought groceries at the store. It is more expensive to live here. We have had a difficult time in trying to attract professionals, especially teachers, doctors, nurses, and we need to look at ways that we can keep people here; get them here, keep them here and keep them happy.

That is something that I would like to see contained in here somewhere, is the federal government to make some kind of effort to give us that ability or to help us pay for tax breaks for people to live here. That just hasn't happened, for whatever reason. Again, I know the Premier and the Finance Minister and the rest of Cabinet have done a great deal of work. Actually, we have come a long way in the short time I've been here. The Premier has done a heck of a lot of work in this regard and I think he is on the right track.

One of the things that does concern me, however, is the recent deal with Nova Scotia, Newfoundland and Labrador, and the fact that now some of the other provinces are crying foul about that deal. I wouldn't want to see a potential deal with the Northwest Territories being sidetracked now because some of the other provinces are upset. We are in a different position here, we are different than Ontario, we are different than Saskatchewan and I just hope that we don't get lost in the shuffle in Ottawa again and get pushed to the back of the bus.

I do certainly appreciate all the hard work that the Premier has put in on this and look forward to supporting him on it and moving forward and finally one day getting what we deserve here, and that is devolution and resource revenue sharing. Thank you, Madam Chairperson.

---Applause

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 1696

The Chair

The Chair Jane Groenewegen

Thank you, Mr. Ramsay. Next on the list, I have Mr. Menicoche.

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

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Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Thank you, Madam Chairperson. I, too, have some grave concerns over the exploitation, I would say, of our natural resources and who gets the true benefits here. Our struggle and our goal and our objectives for gaining province-like powers or province-like stature or, indeed, even provincehood as an eventuality. I hope that everybody shares that dream along with me. It has been with us a very long time. It's about a 125-year-old dream. As soon as they labelled us a territory, then we wanted to break free.

I come from a riding that is predominantly aboriginal. The majority there are aboriginal and during my campaigning period, Madam Chairperson, when I talked about resource revenue sharing and keeping our resources, self-reliance, self-government; everybody knows what that means, because that is something that we want to achieve as aboriginal people as well. Everybody knows what those mean and when I came to the Legislature, we are talking about the same thing.

It is a consistent dream throughout the North, with all the aboriginal claimant groups and ourselves, so when I look at it I say, okay, we do have something in common; we have a common thread that runs through us all, throughout the whole North now, it's just a matter of getting there.

Everybody has different ways of doing things, of seeing things. Their realities are different, but I know that we are dialoguing, we are talking with each other. We may be at an impasse or a standstill at some points, but I think that eventually we will stand together and we are working towards that aspiration, that goal of being free. In fact, it is like our opening prayer every morning at this Legislature, it's up to us to take care of the aspirations of those we serve, and I truly believe the aspirations are to be free to control our own destiny. I believe we are going to achieve that.

I think one of the ways to do it, is that a lot of the barriers that are standing in our way are many of our own imbalances up here in the North. That gets in the way of many things. I am going to say disparities that are between the communities and power rates are one way of doing it. Everybody is asking why are we all different. If we are all the same, why are we doing things differently? It is the little things, it's the little victories, the little things that are making life easier in the communities that can bind us and, I really believe, lay a path for us to be marching to Ottawa with one voice.

Our base needs must be addressed and that is all that is ever asked of me and that is all that I am asking of this government too, on a daily basis. Let's just take care of the real needs of our people and we will move forward from there. A lot of it is having to hear people and that is all it is. When I talk about base needs, it's something that I have been pursuing, too, for a long time. Ever since I have been elected, I have been talking about a base need in Nahanni Butte, like the gymnasium and that is all it is.

---Applause

---Laughter

That is my vision. That is all it is, is listening to our communities and making it a priority. On a territorial-wide scale, too, like I mentioned, we have been trying to do this for 125 years and finally, Madam Chairperson -- the federal government calls us a frontier, they have been investing into us for like 125 years and we have been like

a transfer for the federal government -- finally now we are like a net contributor to Canada. The Treasury Board has a long memory and, I don't know how they do it but, over 125 years they are saying, now the NWT is going to have to pay until it balances out and we're all even. But I don't think it has to be that way, Madam Chair. I believe that there must be a way for us to keep the benefits of our resources, but Ottawa is continuing to treat it as a boon to their coffers. It's simple. People are studying colonialism and there's only one way to subjugate your people, and that's to make them dependent on you and don't give them the resources to be independent. It's textbook. I believe that.

In order to break out of that, one of the biggest barriers we have is the current royalty regime. We're talking about we want resource revenue sharing, but we're just going to get a percentage of the three percent royalties that they're getting from our coffers. I have some friends who are saying, look, Kevin, you guys want to run your billion-dollar government on resource revenue sharing, but if it's true resource revenue sharing, you guys are only making $120 million a year. How the heck are you going to run your government on $120 million a year as it currently exists? So the royalty regime has to be changed too.

So I kind of look at that and say we have a long ways to go, but it begins today and our predecessors in the 14th, 13th and 12th Assemblies all made little major steps. I'm looking forward to this NWT Day that's going to happen in Ottawa, because that's going to make a huge impact. I think we did that in the 12th Assembly when we brought more power and ability to our job back here in the Northwest Territories.

So that's the way I see it, because the only ones who are benefiting are the multinational corporations and we're the ones who should be benefiting. Because when I go home, that's what people are saying. They're truly saying that. Hey, if I'm not going to benefit from this pipeline, then I don't want it.

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Some Hon. Members

Hear! Hear!

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Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Then I think about what they're saying and I say no, but the business is wanted. Then I think about it and the businesses are kind of leaning that way too. If my business is not going to grow or get opportunities, then there's no benefit for me supporting it; therefore, I've got nothing to gain. Go around me; I don't want it. So we do have to let Ottawa know that, hey, taking care -- like the Premier says in his statement and the Finance Minister in his -- take care of our people, our communities and then people will see there's a benefit here. Then they'll support it.

Today, at first face, it doesn't appear that it will benefit us because I look at these multinational corporations and that's their job. That's their sole existence; to rape and pillage. They're coming and taking everything they can for free. It's like that first pipeline. They built that first 12-inch oil pipeline in 1985 and they got it for free. They're sitting there laughing, and I keep saying we can still go after these guys. We can't go backwards, but we could tell them today, look, you guys are contributing to our communities, our infrastructure and our people. We can and I believe we have the power to do that. What we're still learning, people have memories, too, Madam Chair. They see this pipeline, they got it for free and what's going on is that we have this new mega-development, another pipeline, and industry is not doing anything. They are saying it's between the First Nations groups and Ottawa. They're just sitting there laughing because they know if worst comes to worst and Ottawa has to draft a national interest legislation to get that pipe installed, based on the Continental Energy Strategy, they'll put it in and then they have no obligations like they did the last time. That's what happened, is that they used the old technique of divide and conquer again.

We're so busy fighting that we're not spending our energy and resources training and developing our people, developing capacity, because we've been talking about it for two years and we have no foundation on which to base it on. It's just around the corner, Madam Chair. They're talking finishing and completing the application in 2006. If you think about it, that's 12 months from now. Then they'll get their permits and then construction starts in late 2007. This is mind boggling. People said it's going to move quick, and it is, and people don't see that.

Perhaps, Madam Chair, I'll just stop with that point. But I believe that if we did get more province-like powers, because I know they're not going to give us provincehood today from Ottawa, control over the lands and resources and water then, yes, we'll be able to do a heck of a lot more than we're able to do now. So just bringing little bits and pieces home. I'm a patient type and I don't mind bits and pieces because I'm also logical and know they're not going to give it all to us on a platter. We're going to work hard and show them that we have structures and we have things in place to handle these extra responsibilities because the time is right. I'll just stop there, Madam Chair. Mahsi cho.

---Applause

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Jane Groenewegen

Thank you, Mr. Menicoche. Next I have Ms. Lee.

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Sandy Lee

Sandy Lee Range Lake

Thank you. I didn't know I was up next. I'm happy to make some comments about the Northern Strategy. Certainly the documents we received, especially the Framework for a Northern Strategy, provides such a large scope of issues to discuss. It really covers everything under the sun. We're not only just talking about the issues involving the NWT, but now we're talking pan-territorial. I must say, I'm not conversant on various specific issues of Yukon and Nunavut to argue or make statements from that point of view. I will focus my thoughts on the Northern Strategy from the Northwest Territories' angle.

I think I share with the Premier in saying that we are certainly at a very exciting time. There is so much going on and I think this Northern Strategy is just another layer of process accompanying what's going on at the tables for devolution negotiation and resource revenue sharing. We have so many economic and resource development projects happening. So economically, politically and in many different areas, we are certainly living a very exciting time. I think that we are very well placed in terms of getting our voice heard in Ottawa, as well. I think we need to recognize that. I think it benefits us that our current Prime Minister took the time...While he was waiting to be Primer Minister and while he was Minister of Finance for 10 years he crisscrossed the country a lot. He came up North a lot. I do believe he has firsthand knowledge about the issues and challenges and

opportunities of the North and I think that's reflected in the federal agenda.

I think that also helps in that we have an MP in Ottawa who is responsible for this file who has been in that office for over a decade. I think that has to be helpful in getting our challenges and our issues and our uniqueness to the table not only for the NWT, but all of the North. I think Premier Handley and this Cabinet is really well placed to capitalize on that and fast forward this file that has been going on for a long time. As Mr. Menicoche mentioned, we are building on the works of all the previous assemblies. It has only been about 20 years since we had first elected a Government Leader, in the name of another Mr. Braden, and a lot of these issues have been on the agenda for the whole time. I remember reading a former MLA here, Mr. Ballantyne's pamphlet and I could not believe how many items on his platform included all the things that we're talking about. But I'd like to think that while a lot of things seem to remain the same, we have made a lot of progress and I really believe that we are fortunate enough to live in a political era within the next two, three, four, five years where if we are fortunate enough to make that leap into the next world where all the things that we have been working on and our predecessors have worked on are going to result into something real.

Having said that, I want to make a general comment about what I'd like to see. Let me just say, on the governance side I think what I'd like to see from northern strategies is, we have to figure out...The devolution and resource revenue sharing and all that, I agree with. But we also know that we have various aboriginal and land claim settlements and negotiations going on and I would like to see them all settled, of course. But I think, given what's going on, we need to set up a process more clearly that would determine how everybody, all the governments, work together. Because I believe truly that none of this separates us or gets us onto our independent road where we don't need you anymore, we're going to do it on our own. I think it is really about creating a different relationship for the federal government, territorial government and all the aboriginal governments. As we get more agreements settled, it's more important that we have that understanding. If we had devolution from the federal government for many of the province-like responsibilities, for example, there has to be a redefining of the role about the presence of DIAND in the North and exactly what they're supposed to do. The same for the territorial government. We will have to have a redefining of roles in that. Whatever happens, I think it's really important and I think it's something we have not done enough of, is getting a clearer picture of how we're all going to fit together. I have so many little things I wanted to add.

An agreement on intergovernmental affairs relationships would be an issue I would like to see the Northern Strategy deal with. Another thing is related to that, the financing, taxation and sharing of revenue. I think we all agree, and I think all the aboriginal governments agree, that we need to get a bigger share of our revenue. I think something that has to be dealt with is how we're going to share that revenue. This morning I heard on the radio that as of August 4th, once the relevant laws are passed in Tlicho, the people who live on Tlicho land, their federal tax will go to the Tlicho government and that's a reality that's happening. That's what it means for that government to be there. I think things that have to go with these political developments is an understanding and framework for the people to understand this is what it means. We're going to have four levels of government and people are going to pay taxes to this or that, and who's going to provide services? I think if we're going to succeed in having all of these aboriginal governments settling their claims and having a new relationship and a new world, there is more room and need for information and understanding and education to all the people that are here and living together.

I think that can be said about so many different things we're doing in the framework for the Northern Strategy. There is an issue of circumpolar cooperation and preserving, revitalizing and promoting culture and identity, developing northern science and research. These are all the things that you just have to get really excited about. I really do believe that we are placed in a very unique situation. We are doing really exciting things politically, in terms of resource development. But there are lots of things, I think, we can do in a different way in terms of promoting culture and identity. We have the most powerful aboriginal people in the country. We can show the rest of the country about how we preserve our language, how we preserve our culture. How do we have eight or nine strong aboriginal governments and their people living together? How do we do governing differently? All those things are not clear yet, I don't believe.

I think there is so much going on that we cannot do enough to get the people that we represent to understand what we are doing. Because the more information and buy-in you have, the better. I speak not just for non-aboriginal people, I'm just talking about regular people up and down the valley, up and down the river who want to know what all this means to us and how that affects us and who's going to look after us and what's going to happen to our culture, our identity. I do believe, also, we could be a leader. We could be right out there in northern science and research and even political development. We could have a school on aboriginal self-government negotiations for all the people around the world to come and study.

I just ran out of time, but I think I can get another chance to speak. So I'm very excited about that, but we need a clearer framework understanding, much more dialogue and a clearer vision at all levels of government to be able to tell the people that we all serve this is where we're heading, this is what it's going to look like, this is why it's going to be better for all of us, and this is how we can show it to the rest of the country and the rest of the world. Thank you.

---Applause

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The Chair

The Chair Jane Groenewegen

Thank you, Ms. Lee. Next I have Mr. Hawkins.

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Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you for recognizing me, Madam Chair. Madam Chair, when I think of this, it's about making tracks again. I stress the word "again" because I was reading one of Marleau and Montpetit's books, and I was perusing one of the pages, and in 1881 the Northwest Territories Legislative Assembly was fully elected. If you really wonder what that means out there, that's what Mr. Menicoche was referring to: 125 years ago we were a government. We were a big region, but that government was dissolved and in 1905 the Northwest Territories was elected. It was dissolved and it was replaced by an appointed council. But it wasn't until 1975 that we then

proceeded forward and became a Legislative Council and then proceeded again to be known as the Legislative Assembly in 1976.

The reason I'm saying this is because there was a Premier of the Northwest Territories many years ago. His name was Premier Haultain and his phenomenon, at the day before the creation of Saskatchewan and Alberta in 1905, his fundamental principal belief for western Canada was to think big. It's time we made tracks again and it's time that we think big. We shouldn't be selling ourselves short on what we do in Canada. I think we can prove that over and over again. I think it's time we take our rightful place.

When I watch television and I see people like David Peterson, who is a former Premier in Canada from Ontario, and he questions the ability of the Northwest Territories for being a full participant at the table, a full partner in Canada, it really bothers me. Because he even questions the right for P.E.I. to be involved at that level. So I really wonder if we're thinking big enough. Canada recognizes us only when it's called to their attention that we've gotten up from the kid's table, for goodness sake. I'm tired of that type of attitude that they have in Ottawa about this.

There has been endless discussion about moving Indian and Northern Affairs jobs to the Northwest Territories, at least being governed on the ground in the Northwest Territories by our colonial department called DIAND. But their refusal to do that is still there. I think the Government of Canada is completely out of touch with the Northwest Territories, as well as the Yukon government and the Nunavut government. At least this Northern Strategy, if I may say, is starting to think big, as I've said earlier.

Madam Chair, I'm really looking forward personally, as well as other Members are, to NWT Day in Ottawa. I had my sandwich bag packed, as I've told the Premier I would. I'm serious, we need to go in with a big bang and let them know that we're very serious. I can appreciate we've got a Member in Parliament who's going to try and open up the doors for us to talk to the right people. I appreciate that the Premier has been talking to the Minister of Indian and Northern Affairs about the right timing but, again, we have to ensure we think big and respect is drawn to the attention of our needs.

I have to express my concern, though, by continually being linked at the hip with the other two territories. The Northwest Territories, as everyone knows in Canada, is such a net producer. We're trying hard, we're going forward, I think we're a progressive area. Yet we're being held back in conjunction with the other two territories and I think what we're being told is just because you can win the race, you can't run ahead of the others. So I'm concerned that we're being held back from our potential. With thinkers like David Peterson and who else knows who is out there who wants to hold us back, I'm not even sure. I honestly cannot fathom a reason why the Government of Canada does not have respect for our Legislative Assembly to put us on a level playing field at the full table of discussion on any matter. Madam Chair, they still call our Premier a Government Leader.

Now there are a lot of inroads that have been made by many governments that have come before this Assembly and I think we're starting to get that attention. But this government needs to get the acknowledgement I think it deserves. Someday they will change that NWT legislation and call our Premier a Premier, rather than referring to him as the Government Leader, as I've seen in the correspondence from the Prime Minister's office.

As far as negotiations go, I see the vision here and I really can't say much about it. I can support it, absolutely. I mean, everything here is something that I want and I'm sure it's something everyone around this room wants. It's still about independence and taking control and governing the people that we're elected for. I'm still concerned about the fact that we should be in a situation here where we're kept at bay, when eventually, back in 1881 when we were a Legislative Assembly fully elected back in those days, it's like our powers and responsibilities were dissolved forever. I honestly cannot come up with a reason for why we are being held back and, like I said earlier, at bay.

The Premier has told us himself that to deal with the Government of Canada we had to deal with Finance Canada on one side and Indian and Northern Affairs on the other and get the attention of everybody. I really wish the Prime Minister himself would take this file and say, okay, if we're going to deal with the Territories finally, let's deal with them with one lead Minister only, where one lead Minister can deal with all related items. If it's Finance, it doesn't matter; if it's Indian and Northern Affairs, it doesn't matter to me. But I think to be progressive, we need to again think big.

Madam Chair, I don't really have much more to add other than the fact that I'm an advocate for bold moves because bold moves are important. I want to recognize, other than obviously the flag lowering of Newfoundland's Premier, but Danny Williams I really think was thinking big. He stood his ground, he pled his case and told Canada that Newfoundland needed a better deal. It's being held back from its rightful place.

I think our Premier -- and I would give him my support -- if he needed to think big along those lines to get out there and beat the drums and say we're thinking big, we're here, we're loud and we need to be treated with respect. So whatever the Premier needs from me, I am more than willing to support that. Again, we have to think big. Thank you, Mr. Chairman. That's all I have to say right now. I may come back later, but at this time that's all. Thank you.

---Applause

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The Chair

The Chair David Ramsay

Thank you, Mr. Hawkins. I have Mr. Yakeleya next.