This is page numbers 1733 to 1766 of the Hansard for the 16th Assembly, 2nd 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 highway.

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Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Not at this point.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

David Krutko

David Krutko Mackenzie Delta

I wasn’t too clear on what point he’s talking about. Not on what point? Do you have the information or don’t you?

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Mr. Chairman, we don’t have a list of subcontractors at this time. Once a contract is formalized and all the details are ironed out, then the main contractor will make their arrangements with their subcontractors, at which time we’ll have all that information. But at this particular time we don’t have a list of subcontractors.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

David Krutko

David Krutko Mackenzie Delta

Mr. Chairman, this is a negotiated contract. Negotiated contracts are a little more stringent than the tendering process. In most cases negotiated contracts ensure that there is local involvement, there is local hire, and there is local preference. In regard to those negotiated contracts, before the negotiated contract is approved by Cabinet, those aspects have to be part of a negotiated contract. So for this government to say, “Well, sorry; we don’t have that” or “We don’t know...” In order for Cabinet to approve a negotiated contract, there are certain obligations that the contractor has to meet in order to be able to have a negotiated contract signed off.

I’d like to know exactly the elements of the negotiated contract. A $100 million capital project, by way of a negotiated contract, the biggest one in this government’s history, can go by the books and not allow for that process to happen? I find it kind of

odd that this government has approved a $100

million contract without following the

negotiated contracting policy and guidelines. I’d like to know exactly why, in this case, that policy was not followed.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Mr. Chairman, all the appropriate policies and procedures have been followed. We are in the process of a negotiated contract process with Dowland, which is majority owned by the Inuvialuit. Once this appropriation is approved, hopefully, by this Legislature, then we will be moving forward to finalize the details. The issue of maximizing northern businesses and employment for Northerners in the contract will be clearly dealt with as well as part of that process moving forward. The initial step first, now, is to conclude the discussions here in this Legislature.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

David Krutko

David Krutko Mackenzie Delta

So, again, if that’s the case, why is it that a contract went out for 800 pilings in the Inuvik region for this project? A local Gwich’in company had bid on the contract. They didn’t even get a letter back to confirm that they had received their tender. If you’re talking about local preference and basically allowing for local companies to bid on these projects as subcontractors and not be notified, that tells me that this government is undermining the project by way of project management and not following contracting guidelines that are in place, where you have to identify what the local benefits are and exactly who your subcontractors are. So I’d like to know again: can we get an exact list of the subcontractors on this particular project? Exactly how far into this project are they in regard to these tenders being let, exactly who is bidding on these tenders and who can and who can’t bid on these tenders?

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Our assumption is that Dowland

is aware of this procedure, the

process that we’re in, and has not signed any contracts with subcontractors but is probably getting pricing and quotes so they can do their own numbers.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

David Krutko

David Krutko Mackenzie Delta

Now, this is a major megaproject, and I think that in order to get the maximum benefit out of this project, everyone should at least have an opportunity to bid on some of these items in this contract and ensure that the BIP is being followed. We do have a negotiating policy in regard to everyone having a fair process on bidding on these types of items, regardless if it’s site development, pilings or working in regard to roofing or siding or drywalling or whatever. This is a major project.

I’d like to ask the Minister again: can they ensure that they are following their guidelines? Would the government clearly state that they want to ensure that there’s local northern involvement in this project, that it’s a very high priority of this government? Well, it is. How can you illustrate that?

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

We will of course commit to following the policies and procedures that are going to maximize northern business and employment opportunities. As the contract proceeds, that information will become available, and that will be the evidence that we’d be supplying to the Member, keeping in mind, of course, that the main contractor is a northern owned business with a majority ownership by Inuvialuit as a starting point. We will follow through, as the Member has asked.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Glen Abernethy

Thank you, Minister Miltenberger. Time is up. We will go to the next person on my list. Mr. Yakeleya.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Norman Yakeleya

Norman Yakeleya Sahtu

Mr. Chairman, I would like to ask if I could defer a question until later.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Glen Abernethy

Thank you, Mr. Yakeleya. Next on my list is Mr. Bromley.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you, Mr. Chairman. I just want to follow up on a couple of things. First of all, Mr. Aumond, in responding to Mrs. Groenewegen, referred to a clause in the contract that was attached to the letter of award that states that the funds and go-aheads were pending approval or appropriation of funds by the House. I don’t recall seeing a reference to that, actually, or the attachment to that letter of award. Was that a draft contract that was attached, or was something specific there that we could see?

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Glen Abernethy

Thank you, Mr. Bromley. Mr. Aumond.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Aumond

Thank you, Mr. Chair. That would have been included. You would have seen something in the letter of award about it being consistent with the tender documents attached. The tender documents would form the contract. It’s a standard clause that we include in all our contracts. There has to be a sufficient uncommitted balance in the appropriation in order to fulfill and continue on with the contract.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Okay; thank you. I understand it wasn’t a full contract, but the tender documents would have included that contract, then.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Aumond

Mr. Chair, the tender documents do form the contract.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

The second thing I wanted to follow up on was

— let’s put it this way

— the potential

increasing conflict we have with the resolution of self-governance negotiations: MLAs that may end up being in a difficult position of basically serving two governments, one officially and one unofficially, when they are beneficiaries of those governments. I’m not levying accusations here or anything. I’m trying to highlight what’s potentially a new and increasing situation we have here.

To me, even a letter of recommendation from an individual — in this case our Premier, who was a beneficiary of the Inuvialuit…. This was an Inuvialuit company. When we’re dealing with something that potentially can directly benefit the beneficiaries, it’s placing an MLA in that position in a very difficult situation. I think our public expects rigour here to make sure that we deal with potential conflicts of interest. I’m just wondering if the Minister would think this does highlight a need for a review of our conflict of interest guidelines, given the settlement of self-government negotiations that are bound to put more and more of our MLAs in that sort of extraordinary level of potential for conflict of interest — serving two masters, so to speak.

I understand in this case the Premier, the Minister of Finance at the time, removed himself during discussions after he had written a letter of recommendation. But I’m just thinking that this is a sticky bunch of incidents or parameters in this situation, and perhaps it’s something that could be reviewed as potential for improving the process.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Glen Abernethy

Thank you, Mr. Bromley. Minister Miltenberger.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. If there was any interest to get an opinion from the conflict commissioner, I would suggest we’d have to very clearly articulate the question so that we could get some indication as to the clear question that the Member would want put to the conflict commissioner for his advice. I would suggest at this point that when negotiated contracts are in the mix or being considered…. Right now a letter of support from the appropriate MLA or MLAs is a part of the process. With a negotiated contract, if an MLA happens also to be a Minister, then once that letter’s written, the involved Minister, when that issue comes to the table for discussion, would declare their interest and leave the room. If there are further checks and balances that may be required in the opinion of the committee, then I’m sure we would all benefit from that clarity.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

I certainly agree with the Minister on this. For clarity, perhaps I could say a hypothetical situation, where we have a Minister of Finance who is also a direct beneficiary, potentially, who could benefit from a project being awarded or negotiated with a company….

Interjection.

Tabled Document 93-16(2): NWT Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Glen Abernethy

Point of order, Mr. Roland.

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. The discussion about this capital plan that’s before the House has now turned directly to a line of

questioning about the credibility of a Member of Cabinet and the process. Questions about the conflict of interest process letters are better held at another table if we’re going to go and see an overall piece. That’s the Legislative Assembly as a whole, not just Cabinet, who would deal with that piece of it.

I would say, Mr. Chairman, that again, with this line of questioning, under 23(i), I believe it is, the motive is being planted. I know the Member himself has stated that he’s not intending to do this, but by a line of questioning following other lines of questioning in this House, in a sense saying, where’s the information…. Well, all Members know the information was given. A full package was given to Members, so asking a question saying, “I don’t have it” is not correct. It’s there; it’s in front of Members. All Members of this Assembly have it.

Now, the process itself on this piece. Cabinet has gone out and sought that information, and we followed the process and the rules. Whether it’s a Member for the Dene, the Gwich’in or the Inuvialuit, it’s considered a broad class of citizen. That question has also been directed with.

Mr. Chairman, the fact is that this line of questioning is not following the capital plan itself. Thank you.

The Chair

The Chair Glen Abernethy

Thank you, Mr. Roland. I’ll take your point of order under advisement and provide my ruling at a later time or a later date.

Consideration in Committee of the Whole of Bills and Other Matters (Continued)
Consideration in Committee of the Whole of Bills and Other Matters (Continued)

The Chair

The Chair Glen Abernethy

TABLED DOCUMENTt 93-16(2):