Please be seated. Good afternoon. Welcome back to the House, Members. Honourable Member for Deh Cho, Mr. McLeod.

Point Of Privilege

Mr. Speaker, I rise on a point of personal privilege to clarify the response provided yesterday to the Member of Hay River South concerning parking stalls at the Yellowknife Airport.

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I wish to inform the House that there was, in fact, a stall provided for the Premier. However, since the Premier neither requested a reserved parking stall nor wants one, that sign has been removed. Thank you, Mr. Speaker.

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Thank you, Mr. McLeod. Members, I would also like to draw your attention to the Pages that are serving us today. They are from 825 Elk's Royal Canadian Air Cadets Squadron.

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Orders of the day, Ministers' statements. The honourable Minister for Justice, Mr. Bell.

Thank you, Mr. Speaker. Mr. Speaker, yesterday police and emergency personnel responded to a serious situation in Yellowknife. After many hours of emergency action, police were able to diffuse a standoff in a local residence and apprehend a young man before he could commit harm to others or to himself.

I would like to take this opportunity to thank the RCMP emergency response team, personnel from the city municipal enforcement division, public safety department, the fire and ambulance department, Yellowknife Health and Social Services, Joint Task Force North, the local school boards, the media, and everyone involved in bringing this serious incident to a peaceful conclusion.

This incident took place in the riding of Yellowknife South. In order to ensure public safety, emergency personnel acted proactively to secure the area and provide information to residents. The area around Finlayson Drive was cordoned off for several hours while the police conducted negotiations with the individual. The local schools ensured that parents came to collect their children directly at school so they would not be walking home. The RCMP, through local media, kept the public well advised of the situation and the need to keep the area clear while they took all available means to deal with this serious situation.

Mr. Speaker, yesterday, we were reminded that potential threats to public safety are not unique to southern Canada. As elected officials, we must continue to find ways to ensure the safety of our families, our homes, our streets and our communities. We are also reminded of the brave men and women who risk their lives in the line of duty to deal with violent and dangerous situations. Yesterday the RCMP and emergency personnel in Yellowknife displayed once again how their training and dedication ensured the prompt and professional handling of a serious incident. Thank you, Mr. Speaker.

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Thank you, Mr. Bell. Ministers' statements. The honourable Minister of Finance, Mr. Roland.

Thank you, Mr. Speaker. I would like to take this opportunity to provide an update on the government's fiscal position and outlook.

Later today I will be tabling the public accounts for the 2005-06 fiscal year. I am pleased to report that the government ended the previous fiscal year with an operating surplus of $36 million, $18 million higher than the amount projected in last February's budget. This is good news as a sufficient operating surplus is critical to the funding of our infrastructure plan.

The current interim territorial formula financing arrangements with Canada are scheduled to end on March 31, 2007. There has been considerable discussion of potential changes to the federal government's approach to formula financing, including the release this past spring of two important reports on the matter by the federally appointed Expert Panel on Equalization and Territorial Formula Financing and the Council of the Federation Advisory Panel on Fiscal Imbalance. These reports have received careful consideration by the provinces and territories since their release. We are pleased both reports support the joint recommendations of the three territories with respect to TFF.

Following the release of the reports, the Government of Canada indicated that it would be considering the

recommendations it had received and would be developing proposals both for TFF and for equalization for discussion with the provinces and territories. I had the opportunity to privately discuss TFF with the federal Finance Minister, the Honourable Jim Flaherty, and my provincial/territorial colleagues at a meeting of Finance Ministers in Niagara-on-the-Lake in late June. Canada's message was to expect measures to restore fiscal balance to the federation in the 2007 federal budget.

It has become clear that consensus regarding some critical aspects of equalization, such as the treatment of resource revenues, will be difficult to reach. However, both the Premier and I were able to secure the support of our provincial counterparts in calling for Canada to proceed with the development of TFF arrangements that would serve as the basis for federal transfers to Nunavut, Yukon and the NWT.

In addition to the review of TFF and equalization, Canada has been pursing the consultation process laid out in the federal budget for other intergovernmental fiscal issues, such as the federal spending power, the allocation of unplanned federal surpluses, infrastructure and transfers for programs such as training and post-secondary education. These issues are also expected to be addressed in the 2007 federal budget.

We have requested Canada to lift the current $300 million limit on our government's authority to borrow. Our intention in pursuing this change is to permit borrowing for careful investment in infrastructure across the NWT in accordance with the GNWT's fiscal responsibility policy. Infrastructure investment is vital if the government is to effectively support economic and social development in the NWT.

An increased borrowing limit will provide flexibility to meet our cash requirements in a fiscally sound manner. Minister Flaherty has advised me a response to our proposal on the borrowing limit will be provided later this year.

Mr. Speaker, in his speech in the Great Hall in August, Prime Minister Harper stated that he is committed to renewing and strengthening TFF. In September, Minister Flaherty stated the federal government is determined to be a government of practical progress on the crucial economic, geopolitical and social infrastructure priorities that reflect the values and principles of Canadians, including the restoration of fiscal balance. We are encouraged by these statements and look forward to renewed and strengthened TFF arrangements to help us achieve practical progress towards the priorities of NWT residents.

Until our future fiscal arrangements with the federal government are known, the GNWT must continue to exercise caution in spending. This means we must carefully consider all information, including input from legislative committees, before we confirm incremental growth to government spending.

Mr. Speaker, I would like to note the GNWT's intention, subject to anticipated federal increases to increase the dividend tax credit for NWT residents investing in Canadian corporations. The change to the NWT Income Tax Act will parallel measures announced in the May 2006 federal budget designed to minimize the incidence of double taxation of dividends. The higher dividend tax credit will reduce the personal income taxes NWT residents pay on taxable dividends. In addition, a more comparable treatment of dividends, interest and flow-through disbursement will encourage NWT businesses to base their legal structures on solid business reasons rather than tax considerations.

This government remains committed to doing its part to manage GNWT fiscal resources wisely and to invest in the needs and economic future of NWT residents. We look forward to Canada moving forward on key fiscal issues, so that we can plan with certainty for the challenges we face. Thank you, Mr. Speaker.

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Thank you, Mr. Roland. Ministers' statements. The honourable Premier, Mr. Handley.

Thank you, Mr. Speaker. Mr. Speaker, about this time last year we sought input from the Members on our options to improve planning and coordination at headquarters and in the regions.

An important component of this initiative was the creation of a regional director position while maintaining a ministerial order of government. These offices are critical to ensuring:

• • government programs and services are consistently implemented within regions;
• • effective coordination of interdepartmental initiatives within regions;
• • improved communication on government strategic initiatives within regions; and,
• • that the government gets the required regional input into planning.

Emerging self-governments and the creation of the Mackenzie gas project impact fund are two good examples of how critical increased coordination and communication within the government and with key stakeholders is at the regional level.

In setting up executive offices in the North Slave, South Slave, Deh Cho, Sahtu and the Beaufort-Delta regions, the government has taken a significant step forward in improving planning and coordination at all levels. Regional directors have been hired; Bob Sanderson for the South Slave region; Dan O'Neill in the North Slave; Andy Short in the Sahtu; Andrew Johnston in the Deh Cho. In the Beaufort-Delta, Helen Sullivan is acting regional director while staffing of that position is at the final stage. Mr. Speaker, at the appropriate time today I will introduce these regional directors in the Legislative Assembly.

Their offices are now being set up and I am sure I can speak for all Members in welcoming these individuals to their new positions and that the government looks forward to working with them to advance our goals and priorities.

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

Thank you, Mr. Speaker. Mr. Speaker, good afternoon. Mr. Speaker, I would like to share some good news with you about education results from the 2005-2006 year and enrolment for this school year.

We have our high school graduation numbers for this past year and, Mr. Speaker, the results are excellent. Overall, our graduation numbers are up from 343 in 2005 to 359 this year. This includes an increase in the number of both aboriginal and non-aboriginal graduates. For the first time, Mr. Speaker, the number of aboriginal graduates is higher than the number of non-aboriginal graduates, moving towards a more accurate reflection of our total school population. Additionally, the number of graduates is up in our smaller communities, our regional centres and in Yellowknife.

Our students are succeeding beyond high school as well. Our overall enrolment numbers at Aurora College have increased and the number of northerners working towards a skilled trade remains strong. Additionally, over 1,400 northern students are currently accessing student financial assistance in order to complete a diploma, certificate or degree.

We are seeing increasing numbers of adult northerners returning to the classroom, including many who began with low literacy skills. Since 2001, there has been an increase in Aurora College adult literacy and basic education students successfully completing Grade 12 departmental exams.

At the NWT literacy awards at the beginning of this month, I presented the Council of the Federation Literacy Award on behalf of the Premier. The award went to Cindy Voudrach of Inuvik, a single mother of three. Two years ago, when her oldest child entered kindergarten, Cindy enrolled in an adult literacy and basic education, ALBE, program at Aurora College in Inuvik. Cindy completed the equivalent of nine years of schooling in just two years and is now ready for post-secondary education. She has become a role model for northerners and a great spokesperson for literacy. Cindy has also inspired her niece to return to school. Cindy's story is inspiring because she is achieving everything that is intended for adult learning programs. She will encourage many others in her community to continue their education.

Mr. Speaker, with examples like that set by Cindy, our overall education results and growing enrolments, we are making significant improvement in education levels. We still have a lot to do to prepare northerners for future labour market needs, but the numbers show that many more are working to develop their potential.

I congratulate all northerners who have taken up the challenge of pursing further education and particularly those who have graduated in the past year. I hope they will serve as role models and inspiration for others in their communities.

Mr. Speaker, I would like to take this time as well to acknowledge the important contribution made by parents, families, friends, educators and others who support our students. Thank you, Mr. Speaker.

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Thank you, Mr. Dent. Ministers' statements. Colleagues, before I go on to the next item on the agenda, I would like to call your attention to the presence in the gallery of Mr. Hans Driesser and his wife, Marijki. Mr. Driesser is Consul General for the Netherlands and he's here visiting Yellowknife for the first time.

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Welcome to the Legislative Assembly. I hope you are enjoying your visit to Yellowknife and to the Assembly. Members' statements. The honourable Member for Kam Lake, Mr. Ramsay.

Thank you, Mr. Speaker. Today I am going to begin discussing a very important issue and that is the state of health care here in the Northwest Territories. This, for me, Mr. Speaker, will be a recurring theme over the next three weeks. A guiding principle for any politician is they always strive to do their best to represent their constituents. I take this principle very seriously and that's why, Mr. Speaker, I must stand up in this House today and say that I do not believe that we are, in fact, doing our best.

Is it fair or right that the Premier and the Members of this House are allowing the Minister of Health and Social Services to do double duty and also be responsible for the portfolio of the Environment and Natural Resources? In any other jurisdiction across this country, the Minister of Health is the Minister of Health and that is their sole responsibility. What does this say about our commitment as a government to our residents' health and well-being? Why is our government different? Why is this not so important to us as it is in other jurisdictions?

We spend close to 30 percent of our annual budget in Health and Social Services and the best we can do is have a Minister that is half time on the case and half time on the environment. Mr. Speaker, our residents deserve better and as a Member of this House I deserve better. Is this fair to our front-line health care workers who are struggling with numerous staffing issues and management who are not intent on listening? Is this fair to my constituent who has been living in chronic pain for three years waiting for a diagnosis and is no closer to help today than he was three years ago?

Mr. Speaker, last week I met with 17 constituents, all of them health care professionals, who had some very distressing and disturbing issues that they brought to my attention. These issues are occurring at Stanton Territorial Hospital. Now, more than ever, we need and deserve the Minister's undivided attention to correct the problems. These problems, Mr. Speaker, are eerily similar to those of 2002 when the Minister said that the problems would go away after an operational review was done. I'd like to know if any of the recommendations included in that

review were in fact ever followed up on. Judging by the current state of affairs at Stanton, I would say no.

If the Premier and the rest of Cabinet can't sort out priorities and responsibilities, then perhaps it's time that the Regular Members on this side of the House help them do that. Thank you, Mr. Speaker.

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

Thank you, Mr. Speaker. Mr. Speaker, the NWT Housing Corporation has a role as a Crown corporation under the GNWT to provide housing and housing programs to northern residents in need. Their degree of accountability to this Assembly is different because their budget comes from various sources, only a portion of which is voted by this government. As such, the line-by-line level of information in accompanying scrutiny by committee or Members is different and far less than the regular line departments of this government.

In years past there was a board of directors to provide governance to the NWT Housing Corporation. This currently does not exist. They have a great deal of autonomy and, needless to say, some of the activities they have undertaken in the past are lacking in positive outcomes, and that's putting it politely.

As if that isn't bad enough, they forge ahead to implement and undertake more large initiatives. In my opinion, they do so without having been required to visit the failures and shortcomings of their past. This gives me no confidence that the results are going to be any more focused, targeted, or successful than the work that they've done in the past.

I know there's a comprehensive audit underway by the Auditor General's office. By the time these findings come to light I believe more resources and more efforts will have gone awry. I can stand here and list a long litany of past boondoggles, but one only has to travel to some of the small communities to see what I saw this summer to know that this corporation has serious problems.

During our pre-budget consultation tour in August and driving around the community of Fort Liard and seeing the number of yards that had pallets of construction materials piled up, stamped 2003, 2004, 2005, for housing construction and retrofit, just sitting there collecting dust, sitting in people's yards. In almost all the small communities we drive by boarded up dilapidated housing units. Why? And here we are having trouble finding developed land to build new units.

With this as a backdrop, imagine that the Housing Corporation is now embarking on a $100 million affordable housing initiative. When I've asked the Minister for information about the basis of this initiative, he holds up a four-page, four-year-old Bureau of Statistics housing survey. We can't get straight answers to our questions. There's a three-year rollout on this affordable housing initiative and I'd like to ask the Minister where the community consultation is and where is the credible needs survey? We do have housing needs in the North, but this continued approach by the Minister to throwing out plans and resources without sound planning and needs assessment...

Mrs. Groenewegen, your time for Member's statement is expired.

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

The Member is seeking unanimous consent to conclude her statement. Are there any nays? There are no nays. You may conclude your statement, Mrs. Groenewegen.

Thank you, Mr. Speaker, and thank you, colleagues. Mr. Speaker, we cannot afford to continue to throw out resources in this shotgun approach without proper planning and consultation. We can't wait for the findings of the Auditor General to tell us that we have a problem. We need a concise mandate. We need a competent Minister who can answer our questions because there's too much at stake and there's too many people in need to be running this Housing Corporation the way it's being run now. I'll have questions later on in question period. Thank you, Mr. Speaker.

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Thank you, Mrs. Groenewegen. Members' statements. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, I would like to join my colleague Mr. Ramsay in speaking today about issues that need immediate attention by the Minister of Health and Social Services and this government. Mr. Speaker, that has to do with the general human resources and operation issues at Stanton Territorial Hospital that threatens to affect public safety and general health care delivery, not to mention the low morale and frustration of the staff that is resulting in a significant exodus of valuable long-term employees from the hospital.

Mr. Speaker, one that concerns us the most notably are the nurses and other health care professionals, but I must advise you that the problems are not limited to them. It seems to be pervasive throughout the hospital and they are losing long-term, life-long northerners, Mr. Speaker, in talking to the constituents, as Mr. Ramsay mentioned. I've met with a half dozen of them as well. What I can deduce from that, it has to do with the lack of staffing, largely due to ineffective recruitment and retention strategy, lack of resources at the hospital, lack of support for front-line workers, lack of means for the workers to express their view and have their views and opinions acted upon. As some employees have stated to me, Mr. Speaker, it's not everywhere, but in some parts of the hospital the environment is toxic.

Mr. Speaker, I want to tell you that I bring this issue up and I have talked personally with the Minister and the CEO of the hospital and I have confidence in them and the management of the human resources and the Minister of Human Resources. I believe there is good will in this hall that we can act on this, and if we can put our heads

together we could resolve some of the major issues at the hospital in the interest of saving not only our public health system, but also the workers that work at the hospital. I will be pursuing further questions for the remainder of the day and the session. Thank you, Mr. Speaker.

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Thank you. Thank you, Ms. Lee. Members' statements. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you, Mr. Speaker. Yesterday I spoke about a new North, a prosperous North, a united North; a North that would be leading not only Canada, but also the world in many areas. Well, Mr. Speaker, this cannot be accomplished if we do not have the adequate skilled workforce and journeyman tradespeople.

In my recent tour of the constituency I was made aware that we do not have an adequate succession plan to replace our skilled workforce and tradespeople. Once our government was a model of training by providing each journeyman tradesman with an apprentice. For the last 12 years, Mr. Speaker, some trades have not had an apprentice. That's three skilled workers that this North does not have, and times that by the many missed opportunities and you get what we have today; a workforce that simply cannot keep up to the demand for trades and skilled workers.

I ask why, during an unprecedented economic growth and increasing national shortage of skilled workers, is this government continuing with policies that do not support this sector and support our own needs for journeymen and skilled trades.

It takes years of training, apprenticeship and commitment to have a skilled workforce. This lack of action to replace an aged and retired workforce will have long-term impacts directly on our government. I am encouraged to see our youth actively pursuing their careers and skills and we, as a government, must support them. Education and technical skills is very critical to progressive development and capacity building not only in the North, but also all over Canada. We must take issues such as worker shortage seriously or we will continue to see our youth go south for opportunities.

Investing in programs such as apprenticeship benefit our territory in several ways, but, most importantly, the skilled workforce for our future. We have all been hearing that in Fort McMurray, not so far away, people are receiving $10,000 to $20,000 signing bonuses just for an apprenticeship. As the Northwest Territories economy and natural resource activities increase, training opportunities must be available for all the residents through our government, Mr. Speaker. I will be asking questions regarding this issue at the appropriate time. Mahsi cho.

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Thank you, Mr. Menicoche. Members' statements. The honourable Member for Monfwi, Mr. Lafferty.