This is page numbers 1 - 34 of the Hansard for the 15th Assembly, 6th 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.

Topics

Economics Of The Mackenzie Gas Project
Item 4: Members' Statements

Page 9

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. I'd like to comment briefly today on the issue of resource development and, of course, the Mackenzie gas pipeline revised costs. Mr. Speaker, the land of the Northwest Territories and the resources in it and under it are our bank; the gold, the oil, the gas, the diamonds, the cobalt, the uranium, the lead, the zinc. Those are all resources that are in huge demand. The world population is six billion, slated to go to nine billion and beyond in the next 10 years or so. There is an insatiable and increasing demand for resources worldwide. We sit on that storehouse. The land is our bank.

Mr. Broiles, whose parent company Exxon reported $39.5 billion profits last year, the most in any corporation in the history of the world, has indicated that the project, the Mackenzie gas project, is not in a position to report double digit returns on their investment, therefore making it questionable. UBS Securities has indicated that, in their estimation, you need $7.75 per thousand cubic feet of gas to make this project viable to proceed without government support. The price of gas on Monday was $6.90 cents a thousand cubic feet. So I would suggest, with all the room there is for slippage and movement and fudging, that there's probably plenty of room to move on the viability of this particular pipeline.

We should also keep in mind, Mr. Speaker, that this project does not exist in isolation; that it's part of a larger global canvas of work that's being done and there are all sorts of guessing and supposition of what other pipeline motives and agendas are out there. One of the ones I've read about was that the figures have been inflated, because the pipeline is getting ready for some tough negotiations on fiscal certainty and arrangements with the federal government, that the pipeline is dead and they're just trying to come up with a face-saving way to walk away from $600 billion. Or that in fact this project is going to be partnered up somehow with the Alaska pipeline, which is now estimated at costing 40 to 50 billion dollars, to have some kind of joint project that will allow both those fields to be accessed through the Mackenzie pipeline, one would assume over the top.

So, Mr. Speaker, very clearly there are forces at play and there's been significant shift in the ground. Mr. Speaker, I seek unanimous consent to conclude my statement.

Economics Of The Mackenzie Gas Project
Item 4: Members' Statements

Page 9

The Speaker

The Speaker Paul Delorey

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

Economics Of The Mackenzie Gas Project
Item 4: Members' Statements

Page 9

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. Mr. Speaker, there has been a significant shift in the ground that we have been standing on and have stood on in the past which would seem to me would bring into question the need for us to take another look, as Imperial Oil has done with their revised costs, their $2 billion asked for so the federal government that the letter of comfort that we gave was for a point in time where the circumstances have drifted dramatically, that are going to require us, as a Legislature, as the stewards of the land and the resources for the people of the Northwest Territories, to take another look. I would suggest, Mr. Speaker, in the coming months, that that process would have to take place and the one benefit we have with this time, Mr. Speaker, is that we hopefully will conclude a resource revenue sharing deal that will be in the very best interests of the people of the Northwest Territories. Thank you.

---Applause

Economics Of The Mackenzie Gas Project
Item 4: Members' Statements

Page 9

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Miltenberger. Members' statements. The honourable Member for Deh Cho, Mr. McLeod.

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 9

Michael McLeod

Michael McLeod Deh Cho

Thank you, Mr. Speaker. Today I would like to acknowledge a former...(inaudible)...Mr. Speaker, today I'd like to acknowledge a former resident of Fort Providence who now lives in Hay River. Mr. Speaker, I wanted to recognize Mr. Richard Lafferty, who is retiring this year.

---Applause

Mr. Speaker, Mr. Lafferty spent 43 years of continuous service maintaining our NWT highways and it's not often that we, in this House, get a chance to acknowledge someone with that type of dedication and commitment and I'm glad to be able to do that today.

Mr. Speaker, in 1963, at the age of 18 years old, Mr. Lafferty started working for the federal government as a heavy equipment operator in Fort Providence. In 1975, Richard was promoted to the position of highway maintenance supervisor. In 1978, the position was transferred from the federal government to the territorial government, and after 43 years of government service with many job titles and changes in governments and departments, and many challenges and lots of progress and completions in highway projects in the transportation field, Richard has decided to retire from his position as the regional manager of the highways operations in the South Slave. I would like to share with you Richard's motto, and it goes like this: "Challenge keeps a man on his toes and life interesting." Certainly Richard has made these challenges very interesting and met them with great enthusiasm.

If someone can truly be recognized as a man that is content and dedicated with his chosen field of work, then Richard, in this position, is truly a role model for our people in the North and in our communities.

So I wanted to say to Richard, on behalf of the people in the Deh Cho and I'm sure all the Members of this House and the Government of the Northwest Territories, I commend you on your 43 years of service with the government. Mr. Speaker, I grew up next door to Richard and spent many nights listening to Richard and my brother John and Danny Bouvier learning how to play fiddle and guitar, and today Richard is well known for his accomplishments as a fiddler. Fiddling is something else that Richard has done for many years and I'd like to recognize him for that also. I'm sure he'll spend a lot of his time now playing fiddle, spending time with his grandkids, and enjoying retirement life.

Richard plans to retire this year in April, April 9th, 2007...

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 10

The Speaker

The Speaker Paul Delorey

Mr. McLeod, your time for Member's statement has expired.

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 10

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

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

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 10

The Speaker

The Speaker Paul Delorey

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

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 10

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. Mr. Speaker, Richard plans to retire on April 9th of this year and I wanted to wish Richard and his wife, Ruth, the best of luck in the future. Thank you.

---Applause

Tribute To Richard Lafferty, Sr.
Item 4: Members' Statements

Page 10

The Speaker

The Speaker Paul Delorey

Thank you, Mr. McLeod. Members' statements. Recognition of visitors in the gallery. The honourable Member for Yellowknife South, Mr. Bell.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

March 12th, 2007

Page 10

Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. I'd like to recognize a constituent and northern businessperson as well, Pat Thagard.

---Applause

Mr. Speaker, in addition, I'd also like to recognize from the gallery with her Dayle Handy, who is the homelessness coordinator for the City of Yellowknife. Thank you. Welcome.

---Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

Page 10

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Bell. Recognition of visitors in the gallery. Welcome everyone in the gallery today. I hope you're enjoying your proceedings. Oral questions. The honourable Member for Hay River South, Mrs. Groenewegen.

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. Mr. Speaker, in my Member's statement today I talked about the Mackenzie gas project, about the fact that from the information that's being put out in the media that this project is marginal, that in fact there's other sources of national gas. There's LNG from other countries that, in fact, the product that we would ship would be double per unit of some other sources of natural gas. Mr. Speaker, this is all very interesting, but when that is going to be used as the springboard and the basis for which these companies are now going to go to Ottawa to seek subsidies or incentives or inducements in order to keep the pipeline, I think it's important that this government have a position on that. We may not be able to entirely affect the end result, but I think our government should have a position on that, because fundamentally I have a problem with it and I think this government should as well, but I'll wait to hear what the Minister has to say about that and ask if there are other ways that the federal government could direct money that would be more beneficial to northerners than helping these large corporations. Thank you.

The Speaker

The Speaker Paul Delorey

Thank you, Mrs. Groenewegen. The honourable Minister responsible for Industry, Tourism and Investment, Mr. Bell.

Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. I think it's important, and our government has always been clear about this, this is an expensive project. We recognize that. We have never advocated for subsidies for the producers, Mr. Speaker. We have talked about the proper role that we believe the federal government can play, principally in backstopping the APG in providing loan guarantees for the APG, shipping commitments which will reduce some of their risk and in effect reduce the cost of borrowing and the cost of the project. In addition, we all recognize that if this project were built in Alberta or B.C. it would be much cheaper. What's driving some of the costs is our infrastructure gap and the infrastructure deficit in the North. We think the federal government can play a role in some marine landings and building all-weather roads, airport improvements, which will reduce the cost of this project and make it more economic. Thank you, Mr. Speaker.

Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Bell. Supplementary, Mrs. Groenewegen.

Supplementary To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. I can support financial support for initiatives that would see this project proceed; however, I have a problem with those benefits directly flowing to the producers group. I'd like to ask the Minister what kinds of discussions he's had with his counterparts in the federal government to convey this message. Thank you, Mr. Speaker.

Supplementary To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

The Speaker

The Speaker Paul Delorey

Thank you, Mrs. Groenewegen. Mr. Bell.

Further Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

Brendan Bell

Brendan Bell Yellowknife South

Mr. Speaker, the Premier and the Minister of Transportation have both had, especially the Premier, a number of conversations. They've spent a lot of time, over the last number of years, lobbying the federal government for infrastructure contributions. I, as well, have dealt with the same Ministers and the Minister of DIAND to talk about the support to the Aboriginal Pipeline Group. We think that this project will bring immense benefits to the people of the North. One way to ensure that those benefits accrue to the North is to have northerners and aboriginal people of the North own the project. So the APG support is critical. It underpins this project, Mr. Speaker, on a number of fronts. We have lobbied actively the federal government to see benefits flow north and talked about how this project can be made more economic. Thank you.

Further Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Bell. Supplementary, Mrs. Groenewegen.

Supplementary To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 10

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. I'd like to ask the Minister if, in his communications with the

federal government, he is able to convey that the viability of this project hangs on those types of investments and how strident has our government been in delivering that message? Thank you.

Supplementary To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 11

The Speaker

The Speaker Paul Delorey

Thank you, Mrs. Groenewegen. Mr. Bell.

Further Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 11

Brendan Bell

Brendan Bell Yellowknife South

Mr. Speaker, we've been very clear. We've been very forthright with the federal government in our belief that in order to make this project economic, in order to have the Aboriginal Pipeline Group be full beneficiaries of the arrangement that they have, it was going to require federal support. We've always recognized that and I think we've done a good job of articulating that; lobbying the federal government for the support, Mr. Speaker. We had talked about where we think governments play a logical role and that is in those areas related to infrastructure, in backing the APG. Make no mistake, Mr. Speaker, these mega projects around this country and others do benefit from things like enhanced depreciation schedules. So a depreciation schedule attached instead of to the length of the pipeline time of 30 years, appreciation that is worked out over 15 or 20 years, the length of the anchor fields. Something like that is very common in oil sands and offshore developments. That's another typical area the federal government could help a project without subsidizing. Thank you.

Further Return To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 11

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Bell. Final supplementary, Mrs. Groenewegen.

Supplementary To Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Question 1-15(6): Federal Subsidies For The Mackenzie Gas Project
Item 6: Oral Questions

Page 11

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you. I'd just like the Minister's commitment that our government, then, will categorically communicate to the federal government that we will not support any direct subsidy to the producers group that are moving this project; particularly in the fact that we are realizing not our share of the benefits, as far as I'm concerned, without the resource revenue sharing arrangements. So I'd like the Minister to just confirm that our government categorically disapproves of direct subsidies to these proponents to advance this project. Thank you.