Mr. Speaker, as incredible as it may seem in this day and age, this government still does not have a specific legislative or regulative mechanism for requiring financial security for mining lessors of Commissioner’s Land. Has this cost the taxpayer and the environment? You betcha — in spades — and I suspect with more costs to come.
Mr. Speaker, in his Budget Address in February 2006, the Minister of Finance noted that the operating surplus had actually changed to a deficit, due in part to the accrual of a $23 million liability for the Giant Mine Remediation. As party to an agreement with Canada on this project, the N.W.T. is also committed to a contribution of $1 million per year to this cleanup for the foreseeable future.
And yet, Mr. Speaker, as owners and land managers, we continue to issue leases to mining companies without any financial security whatsoever. In fact, in June 2002 this government issued a land lease to Miramar Con Mine Ltd., stipulating that a security deposit would be required when the legislation requiring it came into force.
Mr. Speaker, despite the minor change required to enable this condition to be fulfilled, we still do not have the legislation requiring such financial security. Thus, our government and our people remain vulnerable at a time when we clearly cannot afford such exceptional costs.
On January 15 of this year, at a public hearing of the Mackenzie Valley Land and Water Board for Miramar Con Mine Ltd.’s A-water licence — a meeting where G.N.W.T. chose to not even appear — it became painfully clear that our government has not only insufficient financial security with mine leases, it maintains none whatsoever. This, despite the fact that concerned members of the public have repeatedly raised this issue with the Minister of Finance over a period of years.
Mr. Speaker, this Assembly is supposed to be all about prevention. Well, here is an opportunity for this government to avoid additional financial burdens from downloaded mine cleanups, prevent needless tax burdens for our taxpayers, and prevent further damage to our reputation as land managers, not to mention provide an extra incentive for environmentally sound development. It’s not a large task, but it is important and it’s overdue. Let’s plug this hole and make the legislative change that will give us the ability to require financial security on leases of Commissioner’s Land.
There will be questions on this. Mahsi.