This is page numbers 335 to 362 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 appropriation.

Topics

Question 95-16(2) Reduced Speed Limit On Kakisa River Bridge
Oral Questions

Jane Groenewegen

Jane Groenewegen Hay River South

I’d like to ask the Minister: is he quite satisfied that the signage leading up to the bridge is adequate to communicate to people that they need to slow down? Has he seen the signage? Is it bright enough? Does it start back far enough? Is it sufficient?

Question 95-16(2) Reduced Speed Limit On Kakisa River Bridge
Oral Questions

Sahtu

Norman Yakeleya

Norman Yakeleya Minister of Transportation

Mr. Speaker, the bridge remains safe to the travelling public. The signage on the bridge is as much as we can do, and if we can, to do more. I’m satisfied that the signage that we have there, the message we have out for the public — to slow down when they cross the Kakisa Bridge — is there. We’ve been monitoring that traffic.

I myself have driven that road. I have crossed that bridge at five kilometres an hour. I myself am satisfied that all we can do now is up to the public to make wise choices, in terms of travelling all our roads in the N.W.T.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

February 14th, 2008

David Krutko

David Krutko Mackenzie Delta

Mr.

Speaker, it has come to my

attention that there have been some tenders let in the Mackenzie Delta region. Yet some of these items haven’t even been approved by this House. In one case, it was deferred ’til the May-June session. Mr. Speaker, also part of those tendering documents called for materials to be delivered in 2009.

I’d like to ask the Premier: are we spending money in this fiscal year which hasn’t been budgeted for in this House? Also, why is it that we are allocating contracts for next year, which is April 2009, when we’re not even to April 2008 yet?

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr.

Speaker, in our

processes, we are beginning our budgeting cycle. Normally, budgets would be brought in place and voted in this House for April 1 and beyond. We’re coming forward with an interim process, and then May-June is the main sitting, as we’ve worked out with Members.

Some departments, as stated in the House yesterday, have come forward with a larger part because of some contracting issues, and those may be incorporated. But without the specifics, I am unable to give a full response.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

David Krutko

David Krutko Mackenzie Delta

Mr.

Speaker, the information was

provided to the Government House Leader this morning, when I had a discussion with him on this matter.

Again, as a government we are going through a deficit-cutting process here. Yet the departments are spending money for the following year, when we are telling people we have to cut our budget and we have to cut programs and services. But the departments continue to put out contracts for services they don’t need, almost, in some cases, two years down the road.

I’d like to ask the Premier: could he look into this situation? If this is a trend of the departments, I think that we should maybe put the brakes on that in light of the deficit situation we find ourselves in.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Again, once I have the details of those specific issues that the Member has raised, I would be willing to look into that and get the proper information to see why these are happening, if they’re tied to previous monies.

Everything we put out there, there’s a caveat that if departments are going forward, it’s based on approvals of this Assembly for new dollars. But I would gladly sit down with the Member and get that detail.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

The Speaker

The Speaker Paul Delorey

The time for question period has expired; however, I will allow the Member a supplementary question.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

David Krutko

David Krutko Mackenzie Delta

Mr. Speaker, also in one case the project was deferred until we went through a line item with the Premier in regard to an appropriation in which certain items were withdrawn from the budget because they weren’t classified as urgent.

I’d just like to ask the Premier: if they’re not classified as urgent, why are government departments putting out contracts, and yet we’re deferring projects in our budget process?

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, we’ll be — later on today, I hope, and throughout the rest of our session — dealing with specifics as we proceed and looking for approvals from this Assembly.

Again, for the specific areas, I need to get the details and actually sit down with the Member and see where things are.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

The Speaker

The Speaker Paul Delorey

Final, short supplementary, Mr. Krutko.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

David Krutko

David Krutko Mackenzie Delta

Mr. Speaker, the construction industry gets frustrated with government contracts when they put out tenders. They put them on the bind for one or two years where they have to hold these products, or they deliver the products a year or two in advance, yet they have to front the money.

I’d just like to ask the Premier if he can maybe look at how we’re putting out contracts and work with either the Construction Association or the private industry to see if there are ways that we can do this better by way of our tendering process.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, we are in fact looking at the whole area of our contracting practices, the timing we let out our contracts, our processes that are incorporated to date. We’ve instructed a committee led by Minister Michael McLeod to review this process and come back with recommendations on the area of contracting and existing practices. Thank you.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

The Speaker

The Speaker Paul Delorey

The time for question period has expired.

Question 96-16(2) Allocating Expenditures For Materials Required For Future Construction Projects
Oral Questions

Jane Groenewegen

Jane Groenewegen Hay River South

Mr. Speaker, I would like to seek unanimous consent to return to item 5, recognition of visitors in the gallery.

Unanimous consent granted.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Jane Groenewegen

Jane Groenewegen Hay River South

Mr. Speaker, I would like to recognize two pages that have been serving in our Legislature this week who are from Hay River South. I would like to thank them for a job very well done. They are Mikaela Muller and Danelle Stelmack. Thank you, girls.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Tom Beaulieu

Tom Beaulieu Tu Nedhe

I’d like to recognize and thank the Chipewyan interpreter, trainees, instructors and elders that have been here all week.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Michael McLeod

Michael McLeod Deh Cho

Mr. Speaker, I’d like to recognize today a constituent from Enterprise who is in town for business. Winnie Cadieux is a former mayor of Enterprise. I’d like to say welcome to her.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

David Krutko

David Krutko Mackenzie Delta

Mr. Speaker, I’d like to recognize two pages in the House from my constituency, Brooke Edwards and Steve Gruben, who are from Aklavik and who are here this week. I’d like to thank them for coming, and I hope they enjoy their stay. Mahsi.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

The Speaker

The Speaker Paul Delorey

Later on today, colleagues, I will be tabling a report from the Auditor General’s office on the review of NWT Housing Corporation. I’m pleased to welcome into the House three individuals from the office of the Auditor General: Mr. Andrew Ross, Stephanie Nielson, and David Bourne. Welcome to the proceedings of the House.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Bob Bromley

Bob Bromley Weledeh

Mr. Speaker, I’d like to recognize the pages, Alexandra and Kaitlyn, from the Weledeh riding. They’ve been doing a great job. It’s great to see them here. Thank you.

Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

The Speaker

The Speaker Paul Delorey

If we’ve missed anyone in the gallery, welcome to the House. I hope you’re enjoying the proceedings.

Item 8, written questions, Mr. Beaulieu.

Question 7-16(2) Sport And Youth Funding From The Mackenzie Recreational Association
Written Questions

Tom Beaulieu

Tom Beaulieu Tu Nedhe

Mr. Speaker, this week I talked about funding for sports, recreation and youth programs and services from sources other than the G.N.W.T. I’d like to follow up my statement with the following questions.

Lutselk’e and Fort Resolution are both members of the Mackenzie Recreation Association. I understand that the MRA received an increase in core funding this year.

I’d like to ask the Minister of MACA:

1) What is the total funding that Lutselk’e and Fort

Resolution received in each of the last five years from the MRA, and what was the purpose of the funding?

2) What is the total funding that other road access

and fly-in-only communities received from the MRA in each of the last five years, and what was the purpose of the funding?

3) Fly-in-only communities are at a significant

disadvantage to fully participate at the same level of those communities on the road system. Does the MRA recognize this, and if so, how do they address it? Do they provide travel assistance to those communities that are isolated?

Question 7-16(2) Sport And Youth Funding From The Mackenzie Recreational Association
Written Questions

The Speaker

The Speaker Paul Delorey

Item 9, returns to written questions. Item 10, replies to opening address. Item 11, petitions. Item 12, reports of standing and special committees, Mrs. Groenewegen.

Committee Report 1-16(2) Standing Committee On Priorities And Planning
Reports of Standing and Special Committees

Jane Groenewegen

Jane Groenewegen Hay River South

I would like to provide a report from the Standing Committee on Priorities

and Planning. It’s a report on the 2008-2009 draft Interim Appropriation.

The Standing Committee on Priorities and Planning met to review the draft 2008-2009 interim appropriation between January 14 and 23, 2008. The draft interim appropriation included operations expenditures needed for the first quarter of the 2008-2009 fiscal year as well as a preliminary infrastructure acquisition plan. The operations expenditures are based on the 2007-2008 main estimates and do not include any new initiatives or reductions.

The committee agreed to support the operations component of the draft interim appropriation in the interest of the government being able to continue to provide programs and services without disruption, pending the approval of the full 2008-2009 main estimates.

This report should in no way be seen as an endorsement of the status quo. The committee fully expects that operations expenditures will be reconsidered in the context of our caucus priorities and that changes will be reflected in this year’s business plan and main estimates.

In the course of our discussions on the preliminary infrastructure acquisition plan, it became clear to Members that an overhaul of the entire capital planning process is urgently needed.

Over time, the plan that Members vote on at the outset of the fiscal year has come to bear less and less resemblance to the reality of the work that actually gets completed. Price estimates provided in the plan are often inaccurate and out of date. As a result, Members are not sufficiently informed of the full cost of the project under consideration.

Schedules and time frames are unrealistic and do not reflect the limited availability of contractors to undertake the work. This, along with insufficient accountability for project completion, has led to substantial carry-overs from one fiscal year to the next and an ever growing infrastructure backlog.

With every day of delay, the price of addressing the backlog is inflating as construction costs are rising at a rate well above the overall Consumer Price Index. The carry-over for capital projects and infrastructure contributions from 2006-2007 to 2007-2008 was a staggering $97 million.

Further, energy efficiency does not appear to be a consistent component of new infrastructure design. Members fear that this pay-later approach will leave us with buildings that we cannot afford to operate as fuel prices continue to rise.

Finally, the committee sees a need to revisit the overall fiscal strategy and the amount of infrastructure investment projected over the next

several years. In light of these concerns, the committee was pleased to hear that the Premier has assigned a cabinet committee to examine the capital planning process. The Standing Committee on Priorities and Planning has requested that two Regular Members participate directly in this review as our representatives.

Members also expressed concerns that some projects included in the ‘07-08 main estimates are no longer in the plan while some new projects appear to have been fast-tracked. The committee requested and received detailed explanations for these changes. In order to ensure that new projects are properly considered in context, the committee recommended that the government revise the plan to include only those items which absolutely require approval prior to the ‘08-09 main estimates and provide a justification for the need to include each of those items in the interim appropriation. The committee agreed that acceptable justification might include addressing urgent safety issues, honouring existing contractual obligations and meeting shipping deadlines for materials.

This concludes the report of the Standing Committee on Priorities and Planning on the draft 2008-2009 interim appropriation. Individual Members may have questions and comments as we proceed. Thank you.

Mr. Speaker, I move, seconded by the honourable Member for Tu Nedhe, that Committee Report 1-16(2) be received and adopted. Thank you.

Motion carried.

Committee Report 1-16(2) Standing Committee On Priorities And Planning
Reports of Standing and Special Committees

The Speaker

The Speaker Paul Delorey

Item 13, reports of committees on the review of bills. Item 14, tabling of documents, Hon. Michael McLeod.