We try to work very closely with the city. It’s been recognized some years ago that the city has raised the concern that approvals for development on airport land is within the municipality, but at the same time the authority lies with the Minister to make those decisions. We have made the commitment that we will work together with the city to ensure that we’re all working in harmony for the most part.

Mr. Chairman, the taxes on airport lands is collected by the city for the improvements and I think the whole amount of this tax goes to them.

It’s not so much whether or not the city gets the taxes but whether or not the tax amount is the same as what it would be for a business that is not on airport land. I think that’s more their concern.

Has the department, in their discussions with the city, been talking about writing and/or signing a memorandum of understanding relative to commercial development on airport lands? Thank you

The city collects the taxes on the development. We pay a grant-in-lieu to the city for the airport lands. There are no services, I don’t believe, from the city to these lands, so they are making money on the lands.

I’ll repeat the question. In the conversations that the department has had with the city, have there been discussions about signing a memorandum of understanding with the city in terms of how commercial development will occur on airport lands within the municipal boundaries of the City of Yellowknife? Thank you.

Yes, Mr. Chairman. We have, as I indicated a number of times, where we agreed how we’d work together and we would consider signing an agreement on the commercial development.

Okay. I was given to understand that there was a memorandum that was being discussed. Is that the case or not? Thank you.

Yes, Mr. Chairman. Just checking with my staff here, but there has been some discussion historically on an agreement. There is no formal agreement at this point, but that’s what we’re working towards.

Thank you, Mr. McLeod. Next on my list is Mr. Menicoche.

Thank you very much, Mr. Chair. With regard to airports, just a couple issues that I’d like to raise at this point. The first is, of course, the Trout Lake Airport. I continue to highlight the importance of that project in the next capital planning project or else the next round of the budgeting cycle. That’s something that’s critical to the traffic and movement of people and freight in our region. It’s only by the grace of God that landing in crosswinds for the last 10, 15 years that there hasn’t been an incident.

Aside from that, Mr. Chair, I want to capitalize on the Minister’s good mood and ask for some infrastructure which is like...There’s only a small item that I’ve been asking for and that’s runway lights in Jean Marie and Nahanni Butte. I think last time we had this discussion, I think I raised it in the House, and I said repair the runway lights in Nahanni Butte. I just have to correct myself. There actually are no runway lights in Nahanni Butte and that’s something I believe should happen. It’s manageable. I know that in the Sahtu that they had some runway lights installed, as well in the Tlicho Territory. Over time I’ve been getting lots of “no” answers, but at the same time they’re doing it in other communities in the regions. I just want to point out that it is something that I’ve been consistent with, and the communities have been consistent with in raising with me and raising with the Ministers as they travel through my riding there, Mr. Chair. I’d just like to get the Minister’s assessment of this need for my communities. Well, actually, I know his assessment, but what I’d like to see is a commitment that at least they’ll look at it.

That’s something that’s a priority for myself. Thank you, Mr. Chair.

Thank you, Mr. Menicoche. Minister McLeod.

Mr. Chairman, the Trout Lake Airport relocation is something that’s on the drawing board. It’s something that is being discussed for consideration for Building Canada acceleration projects. That’s something that will come before committee, hopefully fairly quick, and a decision can be made on the future of this project.

Mr. Chairman, the runway lights is an issue that is an ongoing challenge. We have a number of communities that have runway lights. That is the system similar to what is in Nahanni Butte. The other communities are managing for the most part to operate them in a safe manner and operate them in a way that is not damaging them.

Mr. Chairman, we have to recognize if a community is listed on the aircraft carrier’s itinerary that has indication that it has airport lights and they don’t work, it really can be cause for some concern especially for our dark environment in the North here.

Mr. Chairman, there are a couple of communities that have really been struggling to have lights. We replaced them a number of times. They are fairly costly. They could cost anywhere up to $300,000 only to have them damaged again. It is terrible. It is not like going to Wal-Mart to go and buy new Christmas lights. These are very costly.

I have asked my staff to see what we can do to ensure that we have communities that know how to handle and look after the lights and incorporate proper operating maintenance practices that don’t damage them. Apparently a number of these things have been tried. Certainly I don’t want to rule out putting new lights back into the communities, but I need to be able to convince Members of this House, I am sure, that they are going to stay there and we are not going to be back trying to replace them in a year, because that is the history on them. I would be glad and I would be happy to let the Member know that I am willing to talk to the community leaders and see if there are any solutions there. Thank you.

I thank the Minister for that answer. I just want, well, it’s not so much a question, but just to reiterate that I will continue to raise the issue. The communities will continue to raise the issue with me as well. I will continue to follow up with the Minister. Thank you.

Thank you, Mr. Menicoche. There is no real question. It is more of a comment. Next on my list is Mr. Ramsay.

Thank you, Mr. Chairman. I have been speaking with a number of aviation companies located at the YZF. One of the concerns that they have had goes back to a loan that was given out of the Opportunities Fund. The government didn’t do any market disruption analysis or anything, but there are aviation companies in the Northwest Territories, specifically here in Yellowknife, that are going to be in some difficult times with the downturn in the economy. One of the aviation companies was telling me that their lease at the Yellowknife Airport went up 50 percent. It is a tough one to explain to them how their lease would go up 50 percent one month, and then the next month they hear of a $34 million loan going out to another aviation company to help them out. Does the department have any compassion or any heart when it comes to companies that are going to find themselves in some tough predicaments out at the Yellowknife Airport and paying increased lease rates? Thank you.

Thank you, Mr. Ramsay. Minister McLeod.

Mr. Chairman, we are assessing all our fees and all our leases at the airports and trying to bring them in line with other jurisdictions and bring in some of the increases that have not happened historically. Our approach, I believe, was to have it phased in. We are looking at all our fees, not only this outfit or this company or this area. I will have Mr. Neudorf speak to the specifics of how we are planning to move forward on it.

Thank you, Minister McLeod. Mr. Neudorf.

Thank you, Mr. Neudorf. Mr. Ramsay.

I am just wondering, if the government would entertain…In order to keep some of these businesses in business during these tough times, it might take some creative

manoeuvring from your department underneath that act to allow them to go into arrears for a certain period of time and pay it back when things get better. I’m not sure, but if we are going to demand 50 percent more for lease rates out at the Yellowknife Airport, it is a tough pill for aviation companies to swallow, especially considering the fact that we can give a loan for $34 million to one of them and the other ones are…They all should be treated fairly. Some of the aviation companies out there I talked to don’t feel that they have been treated fairly. With the rates going up, like I said, 50 percent, that is something I think we need to address. If there is a way to keep the wolves from the door, I think we need to be looking at that and keep the jobs here and keep the businesses open. Is there any creative thinking there, Mr. Minister? Thank you, Mr. Chairman.

Thank you, Mr. Ramsay. Minister McLeod.

Mr. Chairman, I certainly would be willing to see if there is a hardship case that is really there. Our intentions, and we are going to have to go back and confirm, is to look at a phased-in approach. A lot of the companies have been getting a very good deal in terms of agreements. We certainly cannot look and accept an arrears type of solution to this, but we certainly can look at what it is that is a real concern. A 50 percent increase may be concerning but if it is not a whole lot of dollars in terms of what it amounts to the company, then maybe we don’t have something that we can be concerned about. If there is a hardship case that is being caused by us moving forward maybe too rapidly, we will certainly look at that.

What I am hearing from the Minister is, if there are situations where companies are having trouble paying their leases and I understand that they were in a favourable position in the past when times were good, but times aren’t so good right now. The leases are going up. The work is not there. Will the Minister, if it is not the Minister it would be his staff, but would they entertain a meeting with companies to go over their needs? If they are having trouble paying their lease, obviously they are going to have trouble staying in business. Will the government look at helping them out in some way? Thank you, Mr. Chairman.

Mr. Chairman, I believe we have already done what the Member is asking in terms of meeting with the different companies to inform them of our intentions. We certainly can have another discussion with them to see if there are certain areas that are challenging them and if there are ways we can incorporate our increases to not affect them as much. I would be glad to provide that direction to our staff.