Thank you, Mr. Speaker. I just spoke to the gentleman responsible for reviewing, and right now they’re doing a review in regard to the requirements in Inuvik region. They’re telling me that there’s no need for that large an office building

in Inuvik, which will definitely have an effect on the market. If the private sector is already in Inuvik doing this review, how can the Premier tell me they’ve been talking to the sector that they are concerned about in regard to what effect this is going to have on them?

Again, I’d like to ask the Premier: could you put a hold on this project until a thorough review is done to ensure that all avenues have been taken so there will be no market disruption in that particular area in regard to Inuvik properties?

This project has been delayed since the events that happened with the Perry Building facility. There are limited amounts of space in the community, whether it’s one office or two offices, but not enough to properly run the departments, as we have been through — for example, the situation with the Perry Building. As well, we have a number of older assets in the community that are being used right now, and we’re either going to have to invest in fixing up the older properties we own or go into a newer facility to replace the space we lost with the closure of two floors in the Perry Building.

Again, the department has notified those who are leasing space from the Government of the Northwest Territories right now that they will not lose that space.

Thank you, Mr. Roland. The honourable Member for Kam Lake, Mr. Ramsay.

Mr. Speaker, I want to continue with some questions today for the Minister of Industry, Tourism and Investment. Again it has to do with diamond policy, strategy and vision of the Government of the Northwest Territories as it relates to our diamond file.

I mentioned yesterday that the previous government blew up the diamond division at ITI midway through the life of the last government. I know we are doing work in the area of developing a review of the policy that’s in place for diamonds. I’m wondering: if the division isn’t there, who exactly is doing the work of the review of the policy and the strategy?

Thank you, Mr. Ramsay. The honourable Minister of Industry, Tourism and Investment, Mr. Bob McLeod.

Since diamonds were discovered in the Northwest Territories ten years ago, the Government of the Northwest Territories has been working very hard to maximize the benefits of the diamond industry for NWT residents and businesses.

In particular, we’ve been successful in developing a secondary manufacturing industry here in the North. I’m very proud to say that it’s well recognized within the diamond industry that this has worked very well, and it’s being adopted by other countries that have diamonds. As far as reviewing our policies, it is has been ten years, so it is important work that has to be done. Right now we’re developing our framework internally, and we will be seeking input from the members of the standing committee. Once we have agreed on the framework, my expectation is that we would seek some outside expertise.

Mr. Speaker, I agree with the Minister that we have to maximize the return we get from having diamonds here in the Northwest Territories. I think the Minister stated that the work was being done internally and that it is a framework. Yesterday I said that time is of the essence. I think we need to be on this. I also heard the Minister yesterday state that we did have people attend the three town hall meetings in Vancouver, Montreal and Toronto as it relates to the feasibility of a diamond bourse. What was the purpose of the Government of Northwest Territories attending those meetings?

Mr. Speaker, I think it is important to recognize the difference between a province and a territory. Ontario as a province can collect royalties on diamonds that are being produced, so we have to find other ways to maximize benefits to the Northwest Territories. One of the ways we have done that is by requiring an allocation from the diamond mines and establishing a secondary diamond industry. So that is how we’re maximizing our benefits.

We had people attend the diamond bourse hearings that were held so that we could stay on top of it and monitor what was going on with regard to the diamond bourse. There has been no indication that this is something the Ontario government will continue with; we haven’t seen the report as yet. But we are staying on top of it.

Mr. Speaker, the Minister makes a good case. Ontario is a province. The Northwest Territories obviously is a territory, and I believe that it is vitally more important for us as a territory to maximize the opportunity. Ontario has a tremendous amount of other opportunities all over the province, and we are struggling here to find opportunities for our people. We have four operating diamond mines in our territory, yet as a government we just don’t seem to grasp that we can do more and we should be doing more in terms of diamonds. I want to get a better understanding from the Minister. Again, were we just there watching an opportunity pass us by?

Mr. Speaker, I guess the way I look at it is that the majority of the diamonds produced in Canada are produced in the Northwest Territories, and if we wanted to develop a diamond bourse and it was concluded that it would be something that would be worthwhile and would benefit the residents of the Northwest Territories, then we would look at doing something similar. But this was a Government of Ontario initiative. They had hired a consultant that went around and held hearings, so we went and listened and heard what people were saying.

Thank you, Mr. McLeod. Final supplementary, Mr. Ramsay.

Mr. Speaker, my point is: why is Ontario getting out in front ofthe Government of the Northwest Territories? Why aren’t we getting a consultant? Why aren’t we doing some meetings? Why aren’t we talking to the industry? Why aren’t we trying to set up a diamond bourse and exchange here in Yellowknife, which is the diamond capital of North America? It’s going to be located on Bay Street, not here in Yellowknife, where it should be, and that’s a shame. Again, we need to be in front of it.

Mr. Speaker, when diamonds were first discovered ten years ago and we developed our diamond policy, we concluded that we would maximize benefits to the Northwest Territories by having an allocation of diamonds provided for the Northwest Territories and developing a secondary manufacturing industry. We are now reviewing our policy. If it comes out that a diamond bourse would provide additional benefits to the Northwest Territories over and above what we already have, then certainly we will look at that as part of our review of our diamond policy.

Thank you, Mr. McLeod. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mrs. Groenewegen. The Hon. Premier, Mr. Roland.

Thank you, Mr. Speaker. The process of the negotiated contract policy that the government holds is one that has been put in front of aboriginal organizations and governments for their review and consultation with us, and some amendments have taken place. That policy has been on the books for quite a number of years. When the issue of the negotiated contracts comes up, that is when the claims are very specific. If we are going to negotiate a contract, then we have to go to the aboriginal organization that is in the area. In this case, both organizations, the Inuvialuit and Gwich’in, provided letters of support for the negotiation process.

Mr. Speaker, obviously I don’t have access to those letters of support. I have seen a list of the people who did provide letters of support, but I haven’t seen those letters of support.

I would like to know if the Premier would be prepared to make those letters of support available to this House and to the Members. Also, did the letter of support from the Gwich’in include anything about receiving part of the work that would be associated with this negotiated contract? It’s my understanding that Dowland Contracting is 51 per cent owned by the Inuvialuit, and it is also my understanding that….. Well, I’ll just leave it at that. Was there anything in the letter of support that could be interpreted as a condition with respect to receiving benefits for the Gwich’in under this negotiated contract?

Mr. Speaker, the letters of support I believe would be in the package. If they aren’t, we will ensure that Members get that. In fact, as the department goes through the process of finalizing the contract process, I understand that they are targeting about 90 per cent to fall within northern contractors. So that is one of the reasons the negotiation process is available for projects in the Northwest Territories.

With respect to this

negotiated contract, we have learned that a letter of award…. Well, first of all, when I asked the Minister of Education, he said the contract had been awarded. Then we found out that the contract had been awarded but it was just a letter of intent and that the actual contract had yet to be signed. I said: is it legally binding? They said: no; in fact we have secured a legal opinion to the contrary — that, in fact, the letter to Dowland Contracting is a legally binding document.

I would like to know on whose authority the deputy minister of Public Works was acting under in order to enter into that letter of intent to Dowland

Contracting. Was it the Minister of Finance? Was it the Premier? Whose authority was he acting on?

Mr. Speaker, this process and many of the questions that are being asked were asked early on as this went through the infrastructure acquisition plan that’s before Members. This project here, as awarded…. There are a number of phases that were awarded. First was the site development, and that is a northern company that is doing that work.

The issue with the construction company, which has now had an offer put in front of them…. But it is conditional, as was laid out through there. I haven’t seen the Member’s legal opinion, and we’d have to have a look at that if they are prepared to share that with us.

The other side of it is the fact that we followed the existing process that is in place; no changes to that process have been done. Whether it’s a tendered process or a negotiated process, the normal process has been followed.

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

Thank you, Mr. Speaker. I know that these capital projects come in phases and that appropriations are voted in various years related to the work that will be done in that fiscal year. However, I am concerned that a letter equivalent to a letter of award was offered to a construction company, Dowland

construction,

without the appropriation having been voted on in this House. That is still before us today; that appropriation under the Department of ECE is still before us today. So I’m concerned about the timing and the process. Whose authority it was under that that letter was sent is important to me, also whether or not we got the process straight, whether that letter should have been held off until such time as the appropriation was voted on. That’s what I’m getting at.

Mr. Speaker, once again, the process has been followed. All the steps we normally do, whether it’s this negotiated contract, negotiated contracts in other communities or other schools.... The process has been followed in this area. The deputy minister has that ability to send awards out. It is conditional, as was stated in Committee of the Whole, I believe. An award is conditional on them meeting their conditions as well as this Assembly passing the infrastructure plan.