Good afternoon, colleagues. Welcome back to the Chamber. Orders of the Day. Item 2, Ministers’ statements. The honourable Minister of Finance, Mr. Miltenberger.

Mr. Speaker, I would like to provide an update on the fiscal planning being undertaken by the Government of the Northwest Territories for the coming fiscal year.

The government’s planning for the 2009–10 fiscal year began almost as soon as the review of the 2008 budget was completed. The 2008 budget outlined a fiscal strategy that included making significant reductions to our operating expenditure base — $135 million over two years, with a portion reallocated to investment priorities over the next four years. Operating expenditure forced growth would be capped at 3 per cent per year, excluding compensation and benefits, and we would increase revenues by $10 million starting in 2009–10.

The fiscal plan included in the budget identified spending reductions of $33 million in 2008–09 and a further $28 million in 2009–10. Further reductions would be identified through a variety of review processes. These measures were necessary to ensure the government avoids incurring operating deficits and instead achieves the operating surpluses we need to finance our infrastructure investments.

Nonetheless, to be effective no strategy can be cast in stone. A strategy is simply a plan to achieve a goal. We have reduced our target for expenditure reductions and increased our target for new revenues. This will bring our fiscal target to $111 million in reductions and incremental revenues.

In this case our fiscal goal is clear: to put the Government of the Northwest Territories on a sound, long term fiscal footing that allows us to achieve our vision and goals largely within our own fiscal resources. We cannot continue to spend every dollar we bring in to do the same things we have always done but pay more every year to do it.

We want to be able to make the investments needed in programs and infrastructure that will make a difference in the lives of NWT residents. We want to be able to approach the federal government from a position of fiscal strength rather than need, and we want to be able to assure the residents and businesses of the Northwest Territories of our commitment to fiscal stability.

These objectives become increasingly important in light of the very uncertain economic conditions we are currently experiencing, both in financial markets and in the energy sector. The NWT economy is strong. However, we must ensure that we are able to respond to changes that may result from international and national events.

Mr. Speaker, budget making is about making choices, and we want to ensure that the choices included in the government’s fiscal plans reflect the best advice, input and suggestions available. GNWT departments are currently preparing business plans for the coming fiscal year that will outline how our proposed actions and investments will further the achievement of the vision set out by this Assembly. We will be reviewing those plans with standing committees in November with a view to preparing the 2009–10 budget. We look forward to receiving input from Members on these plans.

Over the summer my Cabinet colleagues and I reviewed the fiscal strategy adopted last year, and we believe that some adjustments are needed to ensure that we stay on course. We have heard the concerns raised by MLAs and the public about the impacts of reductions on government services, on staff and on communities. We have heard the concerns from standing committees that we need to explore revenue options. We remain committed to the expenditure reductions already identified for 2009–10 and to finding ways to make government spending more efficient and effective, but we are also looking for alternatives to further large scale spending cuts.

This means looking at our revenues. We have set a target for raising a further $30 million starting in 2010–11, bringing our total revenue targets to $40 million.

Last month I began a consultation process to seek the views of NWT residents on how we can increase our revenues. We have laid out a wide range of revenue options for people to consider, and although it is not our intention to implement all of these options, we need to ensure we consider those that might best meet our needs.

Last week I attended a two day round table discussion at which representatives from all segments of the Northwest Territories provided their thoughts on how the government could achieve its fiscal objectives. The consultation is not meant to focus solely on tax increases. We want people to consider other ways to increase our revenue capacity; for example, through economic and population growth.

I would like to stress, however, that there are no easy ways to raise revenues from taxes. Each option will have some negative implications. We need to weigh those possible effects against those of further expenditure reductions. If it is not possible to identify some revenue measures that we can get general agreement on from residents and business, it will be necessary to revisit the expenditure side of our budget.

I encourage anyone with an interest in this issue to submit your comments to the Department of Finance by October 15. The results of the consultation will be shared with the public and discussed with the standing committee in November. Decisions on revenue measures will be announced in the budget in February.

Mr. Speaker, the 2008 budget spoke to the need to change the way we invest in infrastructure in order to get the maximum value for our capital dollars. This year will mark a significant change in the way we do our capital budgeting. The 2009–10 Capital Estimates will be presented for review by the Legislative Assembly during this session rather than in February with the Main Estimates. This earlier approach to capital planning will ideally allow contractors to fit our projects into their schedules, encouraging more bids and greater competition for GNWT projects. In addition, we continue to examine other ways to improve the GNWT’s capital planning process.

Before I conclude, Mr. Speaker, I would like to share some excellent advice I received during last week’s revenue round table regarding what a government should strive for in its fiscal planning.

First, the government must offer a vision for the future. This vision provides governments with guideposts that keep us on the road to long term success while we struggle with problems that may

sidetrack us temporarily. Yesterday the Premier reminded us of the vision set by this Assembly: strong individuals, families and communities sharing the benefits and responsibilities of a unified, environmentally sustainable and prosperous Northwest Territories.

Second, government must strive to provide value for money. Our goal should be to provide the best quality government services at the lowest cost to our citizens.

Third, the government should save revenues collected from taxation of non-renewable resources so that future generations may enjoy the same benefits that we do.

Fourth, government should avoid passing on to future generations the cost of providing goods and services enjoyed by the current generation. This means not running deficits.

This is timely advice. We must keep the long term horizon in view while we deal with the short term challenges. We have had a tendency in the GNWT to do fiscal planning within a fairly short horizon of three to four years. We should not limit ourselves to looking ahead only a few years. We need to take a longer term view to picture what our territory could look like and what steps we might need to get there. We need to think about where we want to be 15 to 20 years from now and what this means for the investments we make today. We must also ensure we don’t mortgage our children’s future in doing so.

Thank you, Mr. Miltenberger. The honourable Minister of Education, Culture and Employment, Mr. Lafferty.

Mahsi, Mr. Speaker. This week is NWT Literacy Week. Earlier this week we celebrated some special northern contributions to literacy.

Mardy Voudrach of Tuktoyaktuk was awarded the 2008 Council of the Federation Literacy Award for the Northwest Territories. Ms. Voudrach was honoured for her success in learning and improving her education while dealing with a disability.

Hilary Gemmell of Fort Smith won the Ministerial Literacy Award for Educators for her service to the North through her work at Aurora College and abroad. She has worked very hard for adult literacy in the Northwest Territories. Even in retirement she continues to volunteer, teaching learners with disabilities.

The Hay River Literacy Society also was honoured with the Ministerial Literacy Award for Organizations. This group of volunteers hosts education events for all ages and sponsors literacy

programs in Hay River. They help make educational support available to all learners.

Mr. Speaker, the Department of Education, Culture and Employment’s new Northwest Territories Literacy Strategy will soon be in place. During this time of rapid economic expansion education is of paramount importance, because many northern residents lack the basic skills to fill the jobs that are being created or to meet the entrance requirements for job specific training programs. Effective learning initiatives are crucial for the evolution of an equitable northern society where all residents are able to access new opportunities and benefit from the prosperity of our region.

In the 21st century the black and white concept of

people either being literate or illiterate is somewhat outdated. In today’s society literacy is a continuum of skill development, which includes reading a variety of printed materials, writing, numeracy, use of technology, oral communications, critical thinking and problem solving.

The NWT Literacy Strategy addresses the needs of northern residents of all ages in the various roles they play at home, in the workplace and also in the community.

The strategy sets out four major goals that will contribute toward NWT literacy development over the next ten years:

•

increasing literacy levels of Northwest

Territories residents of all ages;

•

supporting literacy in the official languages of the Northwest Territories;

•

promoting

literacy partnerships;

•

building community capacity to meet local

literacy needs.

Included in the Literacy Strategy are objectives and actions that address the learning needs of young children and families, out of school youth, working age adults and seniors.

Now that the Literacy Strategy has been completed, the Department of Education, Culture and Employment is proceeding with implementation. An accountability framework is being developed so that we will be able to measure progress on the Literacy Strategy goals, objectives and actions. A multi-stakeholder Literacy Strategy advisory committee has been established to guide implementation of the Literacy Strategy. As well, a Literacy Strategy communications plan will be developed.

The new NWT Literacy Strategy is a key component in achieving the vision of strong individuals, families and communities sharing the benefits of a prosperous Northwest Territories that this Legislative Assembly laid out in Northerners Working Together. Northern residents without

adequate education skills experience challenges participating in the labour market, earning sufficient income, managing their own health and contributing to community development.

Through the new Literacy Strategy the Department of Education, Culture and Employment will address these learning challenges and work towards the fulfillment of our overall Government of the Northwest Territories vision of healthy, self-reliant people and also prosperous communities.

In addition to NWT Literacy Week, October is also the home of Canadian Library Month, a month dedicated to raising awareness of the role that libraries play in our lives. A library can be a haven for learners of all ages and literacy levels. Libraries can be a way to experience other worlds, cultures and opinions.

Our community libraries play a sometimes quiet but always important role in supporting literacy. In the Northwest Territories we are proud to offer excellent library services. The Government of the Northwest Territories supports Canadian Library Month by purchasing promotional materials for all of our public libraries. We would like to encourage everyone to recognize the role that public libraries play in their communities. Mahsi, Mr. Speaker.

Thank you, Mr. Lafferty. Item 3, Members’ statements. The honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. Today I’d like to read out a fax that’s distributed to all the communities in the Mackenzie Delta. It comes from Beaufort-Delta Health and Social Services.

“Re: Reduction of Core Services — Susie Husky Health Centre, Aklavik, NT.

“The Northwest Territories is experiencing a nursing shortage, along with the rest of Canada. This means that at times the Beaufort-Delta Health and Social Services Authority has to restrict the services we normally provide to our clients. Your community will be affected as follows.

“Essential services only:

“From Friday, August 29, 2008, at 0830 a.m. to Friday, August 29, 2008, at 1700 p.m. there will be no scheduled appointments or clinics.

“A nurse will be available for urgent cases and emergencies at (867) 978-2516, or you may contact the Inuvik Hospital emergency department at (867) 777-8161.

“Tele-Care NWT is a family health and support line which will help you decide what to do, such as how to: take care of yourself (example: health information); call your local nurse or social worker; every day — 24 hours a day — 7 days a week, call 1-888-255-1010.

“We regret the inconvenience and want to assure the community that the BDHSSA has been exploring every possible option to resolve this problem.”

Mr. Speaker, we get this letter distributed to our communities almost every month, but health care is an essential service. We’re still having problems providing services to the communities in the Northwest Territories, especially in the region of the Beaufort-Delta.

This has been going on for quite some time. I think that as a government we have to find unique ways to deal with these challenges that we face. We have to find ways to get around the collective bargaining agreement, to allow for nurses who want to go into the communities, who have admitted they’re willing to go into the communities, but because of union issues we’re having challenges.

Mr. Speaker, at the appropriate time I will be asking the Minister of Health and Social Services in regard to this urgent matter.

Thank you, Mr. Krutko. The honourable Member for Weledeh, Mr. Bromley.

Thank you, Mr. Speaker. There are myriad ways we can build our local economies, provide opportunities for jobs in our communities and reduce environmental impacts of energy generation. One effective way is to provide for net metering. This is the chance for residents to generate their own power from renewable energy and to be connected to the power grid so they can contribute power when they have excess and draw power when they need it.

This issue has been before the Public Utilities Board for several years, and the Power Corporation has been asked to provide the option for this service. I believe some connection standards are being set. Yet today, when a Weledeh constituent stands prepared to fund a residential solar system to be tied to the grid and the Department of Environment and Natural Resources is prepared to support the project through existing incentives, our utilities are unprepared to respond. There is currently a policy void, a lack of net metering capability and no method of purchasing excess power.

Many northern residents like my constituent wish to be more self-sufficient and environmentally

responsible through generation of renewable energy and contributing to the power grid. Last year 17 per cent of Yellowknife’s power requirements were met through diesel generation, an amount probably greater than any of our diesel powered communities. No wonder NTPC is back at the trough, as my old friend Johnny Dennison used to say, seeking to raise electricity rates. Diesel is expensive and environmentally costly as well. Depending on it leaves us vulnerable to the vagaries of global markets.

Mr. Speaker, there are literally millions of residential solar systems around the world, including Canada, where net metering is simply business as usual. In fact, ATCO, the parent company of one of our utility firms, Northland, provides net metering service in some of their regions of operation. This is not a new science. This is off the shelf technology that residents have been requesting for many years.

Building capacity to meet increasing power demands in communities is expensive, yet here is an opportunity where residents themselves are willing to cover the upfront capital costs for long term reductions in overall costs. It’s a win-win situation.

Mr. Speaker, several specifics have been identified here. Northerners have waited patiently on this issue without results. Given today’s economic and environmental circumstances, this is not acceptable. Rather than slogging through the typical experience where utilities set up hurdles to net metering, like expensive systems, let’s get everyone to the table, define a reason….

Mr. Bromley, the time for your Member’s statement has expired. The honourable Member for Great Slave, Mr. Abernethy.

Thank you, Mr. Speaker. Yesterday there were a number of Members’ statements and oral questions on revenue options identified by the Minister of Finance in September. Before I get into details, I want to acknowledge, first, that I know that the list of potential taxes proposed by Cabinet is not official. They are simply discussion points to help encourage us, Cabinet and the public to identify real and acceptable options to revenue generation.

What I don’t understand is why the Finance Minister would put forward options that clearly have negative ramifications, options that radically increase the cost of living for all Northerners, thus resulting in a mass exodus, or a potential mass exodus, from the Northwest Territories. These are options that most people, including many of the MLAs on this side of the House, will be unable to

support. Why cause the unnecessary panic and frustration?

A territorial sales tax: it’s clearly a horrible idea. A hotel room tax: this doesn’t make any sense. Most of the hotel rooms in the NWT are being used by people from the NWT, and we would simply be recirculating money as opposed to bringing in new money. An airport departure tax: there is some merit to this, considering the number of non-resident workers who fly in and out of the NWT. Unfortunately, it also penalizes those of us who choose to live here. It is already expensive enough to travel out of the NWT. We simply can’t make it tougher.

The solutions to our financial difficulties should not focus on increasing taxes on our residents. Rather, they should be focused on finding ways to increase our population and ensure that we as Northerners get benefits from all the resource extraction that is current in the NWT. Has the Minister of Finance met with the diamond mines to ensure that they are meeting their obligations under the socio-economic agreements with respect to northern employment? Let’s reduce the number of fly in/fly out workers. Has Cabinet pursued the completion of legislation that will make it easier for local businesses to recruit international and foreign workers, workers who will move to and live in the Northwest Territories?

What progress has Cabinet made on getting the federal government to increase our northern tax credits? The rate for zone A has not increased in over 20 years. It’s time for an increase that will decrease the cost of living for all Northerners.

A resource tax: I keep hearing that we can’t get this done, that it can’t happen. Why not? It would be in the best interest of the people of the NWT and would bring in needed dollars from our northern resources. I keep hearing references to all the good things the government is doing to reduce the cost of living: $140 million in subsidies to help lower our cost of living. The problem is that these subsidies don’t help reduce the cost of living. Rather, they simply provide northern residents who are struggling with an ability to pay for the basic needs: housing, food and heat….

Mr. Abernethy, your time for Members’ statements has expired.

I seek unanimous consent to conclude my statement.

Unanimous consent granted.

There’s not much left, Mr. Speaker; thank you. Has Cabinet pursued opportunities that actually reduce the cost of living in the NWT? If so, what are their options?

Mr. Speaker, during the last session the Members on this side of the House asked government to

increase revenue in order to avoid cutting programs and laying off employees. Unfortunately, many of the revenue options introduced in September are not acceptable and should not be pursued.

Later today I’ll be asking the appropriate Ministers some specific questions on revenue options for the Government of the Northwest Territories.

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

Thank you, Mr. Speaker. I want to use my Member’s statement today to continue to talk about the cost of living here in the Northwest Territories. Yesterday I spoke about how offside the government is with their proposed tax initiatives and how by even discussing increasing the cost of living they are scaring residents and potential residents away.

Last winter I heard from many residents who were having a difficult time paying their home heating fuel bills, and now this winter it is going to be 25 per cent more than last winter. I really am worried that coupled with the proposed 19 per cent rate increase for power, residents are going to be buried by utility bills this winter.

In regard to home heating fuel and gasoline I’m very curious as to what role the government can play in protecting the consumer from what I would view as gouging at the pump and at the fuel truck. When world oil prices fall, residents here in Yellowknife watch enviously as prices of gas at the pump fall by 12 to 15 cents per litre in southern Canada. Here, for some reason, they stay at levels that just do not seem to make sense to me or to residents. Why are residents here subjected to over-inflated prices? And I do not buy the argument that fuel is stored here and that the supplier paid a certain price for it and now has to sell it at the higher price. If that were true, why is it that when world oil prices rise, the price at the pump rises the next day?

Again, who is protecting the consumer, and is there gouging going on? Watching fuel prices this past year would certainly lead me to believe that gouging is taking place. Why do retailers all sell at the exact same price? Isn’t that called price fixing, Mr. Speaker? We live in a climate where heating our homes is life and death. For starters, the Government of the Northwest Territories should be demanding that the federal government immediately take the 5 per cent GST off of home heating fuel. This would at least provide a little bit of relief for our residents this coming winter.

Mr. Speaker, even though there is a 9.1 cents per litre tax on diesel fuel, there was a period late last

winter when diesel fuel, which is essentially the same as home heating fuel, was less per litre at the pump. Residents would have saved money by filling up their diesel vehicle at Circle K and siphoning it into their home fuel tank, saving them some money. These types of scenarios should never be allowed to exist. Someone should be watching the prices and protecting the consumer.

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

Unanimous consent granted.

Thank you, Mr. Speaker. The federal Competition Bureau should be consulted, and I’d like to see an investigation conducted here in the Northwest Territories market communities. Does it really cost 30 cents a litre to transport fuel from Edmonton? The scary thing for residents here in the North Slave region is that we’re building a $170 million bridge that we don’t need with money we don’t have, only to charge tolls and make goods like fuel more expensive for residents here in the North Slave. Mahsi.

Thank you, Mr. Ramsay. The honourable Member for Inuvik Twin Lakes, Mr. McLeod.

Thank you, Mr. Speaker. Every year the Government of the Northwest Territories, through EC&E, helps many students through university. During the course of the four years at university the students, as we all know, have a habit of gathering a lot of belongings. We pay their way to and from school. They come back after they’re done university, and they provide return of service.

However, Mr. Speaker, there is a gap, as we do not assist them in shipping their items back home. Many of them would like to bring their items back home after four years of gathering them. They are put in a position where they have to either sell or ship the items home at their own cost.

I bring this issue forward after hearing the story of a student who’d just completed four years of university and was coming back up North to work. She wanted to bring all her furnishings back home, yet after making some inquiries was told that she couldn’t. They looked into it, and they decided, “Yes, we will assist you,” but by then it was too late. She had sold most of her belongings. A couple of more students may be finished this year. They have similar concerns, and I’ve heard from them.

Mr. Speaker, we bring a lot of new people in from down South to work up North, and we pay for shipping everything they have up here. Then when

they finish here — sometimes it’s not very long — we pay to ship their items back to wherever it is they’re from. The students are Northerners: northern born, northern raised for the most part. They’re going to spend their entire career working in the North because it’s their home, and sometimes I think we send them the wrong message. In our attempt to attract and recruit so many new hires from down South, I think we unintentionally overlook or take our own for granted.

Mr. Speaker, it’s a matter of a slight policy change. If we as an Assembly, or the department itself, have the authority to make that policy change, then I think that is something that should be done without question. If it’s something that they’ve overlooked, I think they should deal with it so we do not have to have students who spend four years at university having to worry about what they’re going to do with everything they’ve gathered over the course of four years.

I’ll have questions for the Minister of EC&E at the appropriate time.

Thank you, Mr. McLeod. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Thank you, Mr. Speaker. As I said yesterday, the problem with this government is it has a spending problem, not a revenue problem, and it continues to be obvious more so even today. I only wish there were a program like the Tree of Peace to send the Finance Minister to, to make sure he understands that, but we don’t.

So it’s about time this government realizes that you could lower the cost of living in government and do business better at the same time without raising taxes. We need someone over there on that Cabinet side of this building to understand that we don’t need new taxes.

Again, Mr. Speaker, we need imagination to solve this problem. This problem we face is no different from what I would normally call kitchen table economics. When money is tight in my house, we ask the question: what are we are spending it on? We take a look at the realities we live under, and we say: well, we can’t afford that; we’ll have to work around that. But this government does not take into account its spending choices and would rather consider laying off the public service and raising taxes than looking at itself.

The reality is here. This government has enjoyed the Dijon mustard lifestyle far too long, and it should start shopping at the Co-op, because that is just as good when times are tight.

Let me tell you again: good financial policies will encourage investments that will help grow our tax base in the North. They will encourage businesses to hire more employees. I hope the Finance Minister is listening.

Last week in my riding of Yellowknife Centre, the Shoppers Drug Mart opened up. It has hired 20 more people. That’s bread and butter economics that the Finance Minister should start to pay attention to, because those people will bring in new taxes and that’s additional grant money from the federal government. But, no, that’s too shocking, this new business trend to working with business and fostering this. We’d rather help subsidize, at a $140 million subsidy, than help people get jobs, because the system sometimes pulls them back into social programs instead of getting them up on their own two feet.

Mr. Speaker, where is the zero based program review? It’s been asked for, for about a year now, by this side of the House. It’s obvious that we wouldn’t want to rush into anything. Maybe the Finance Minister just wants to get to know about this good idea before he marries into it. Of course, we wouldn’t want to rush him on this issue. We’d rather tax first, from what seems to be obvious.

Mr. Speaker, I seek unanimous consent at this time to conclude my statement.

Unanimous consent granted.

Mr. Speaker, we need a program review. Of course, it’s obvious we can’t review all the government all at the same time, but we could start, as other Members have said here, with two or three departments to see how we could achieve business by doing things better. It’s true that not all programs are bad, but let me tell you, a number are working properly.

Mr. Speaker, in closing, I don’t want to see us raise taxes just to bail out health boards to the tune of $217 million in write-offs without going to the taxpayer and saying: we tried our very best. We’re not trying our best. Pay attention, Finance Minister.

Thank you, Mr. Hawkins. The honourable Member for Tu Nedhe, Mr. Beaulieu.

Mahsi cho, Mr. Speaker. [English translation not provided].

Today I’d like to talk about the slow response by the Department of Transportation regarding issues raised by residents of Fort Resolution for repair and reconstruction of Highway No. 6.

Mr. Speaker, I first raised this issue last February by asking the former Minister of Transportation

questions about repairs and future plans for Highway No. 6. The Minister committed to allocating $1 million of repair work to be carried out this summer. The condition in this section of highway is worse than when I first raised the issue last winter. We are talking about a serious safety issue here on this highway. I was listening to the Minister’s responses to questions raised by my colleagues from Nahendeh and Mackenzie Delta about their highways. A common denominator I heard in the Minister’s response was that the number one priority for the department was safety.

Mr. Speaker, if the department considers safety a top priority for all NWT highways, then this work on Highway No. 6 must be done quickly. I have driven this highway many times this summer and did not see any improvements being made. We are fortunate not to have lost lives on this section of the road. The worst section in this road is approximately 13 kilometres long, from kilometre 70 to 83, where some of the sections of the road are washing away, some other sections are below grade, and there are sections only six metres wide. I believe the standard is eight metres.

This highway is maintained by a local contractor, but the safety and the meeting of minimum standards is the responsibility of the Department of Transportation. With the potential of a mine opening along Highway No. 6, this highway will see increased use, and we don’t want to see any lives lost on this highway.

Later on I will have questions for the Minister of Transportation on this issue.