Good afternoon, colleagues. Welcome back to the Chamber. The honourable Minister of Finance, Mr. Miltenberger.

Introduction

Thank you, Mr. Speaker. This budget comes three months into the fiscal year. I would like to take this opportunity to thank all Members of the Legislative Assembly who worked individually and collectively to contribute to the interim appropriation for the current fiscal year.

We have started the 17th Legislative Assembly with

a difficult fiscal reality and Members worked hard to help build this first budget of the 17th Assembly. We

appreciate the advice of the standing committees during the recent business plan discussions. We are reviewing and considering the committees’ recommendations, and the government will address these recommendations through the supplementary appropriations process later this session.

During the recent recession, the Government of the Northwest Territories spent over $1 billion on important capital projects such as schools, highways, housing and community infrastructure. This investment helped shore up our economy during the slowdown in the private sector.

Although we are proud of the way our last government responded to the worst recession since the Great Depression, we knew it was not sustainable. Circumstances are also now changing.

Private investment is returning to the NWT. With most industries recovering, it’s time for government to step back, recalibrate and rebuild.

That’s what this budget is about. We are catching our breath after one of the most difficult economic downturns in modern times and restoring the

balance between our revenues and expenditures so that in two years we will be ready to start reinvesting in our growing infrastructure needs.

Economy

Mr. Speaker, the NWT economy is showing signs of recovery from the global economic downturn; however, we have not returned to our pre-recessionary peak. Although the economic outlook for the NWT is good, we are not expecting the double-digit growth we saw in the first half of the last decade.

Recovery in the NWT labour market is strong. The number of people working is the same as when the global recession first hit in 2008. In 2011 we added 1,200 new jobs.

Led by the diamond industry, mining is still the economic engine of the NWT, accounting for a third of our economy. Although carat production decreased in 2011, stronger diamond prices propelled diamond production values to $2.1 billion in 2011, the highest in seven years. Production targets are higher for 2012.

Exploration activity, a key precursor to actual mines, is set to increase by $20 million this year. However, while the other territories have exceeded their pre-recession peaks, we continue to lag behind. Our share of total exploration dollars has fallen from 7 percent in 2007 to 3 percent anticipated in 2012.

We’re also seeing the return of oil and gas exploration. Chevron is starting seismic work in the Beaufort Sea and last summer 11 exploration licences representing over $500 million in work bids were granted in the Sahtu. This summer two more parcels will be awarded in the Sahtu and six parcels were recently nominated in the Beaufort Sea.

Both retail and wholesale trade have picked up some growth over the past year, although they also remain below their pre-recession highs.

The private sector is reinvesting in the NWT. The extra $230 million expected in 2012 represents the largest percentage increase we’ve seen in more than five years. The Conference Board predicts a 14 percent rise in economic activity and 1,800 more jobs over the next two years.

Even with this forecast growth, 2012 GDP will be 20 percent lower than the highs reached in 2007. At

that time, our two operating diamond mines were producing record carats and undertaking heavy construction and our third diamond mine was being built. To return to busy times like we saw in 2007 requires another large project.

The good news is we’ve got quite a few in the wings. In approved, these projects could bring more than $2 billion in new investment, as well as 2,000 new jobs to a number of regions. Projects such as Avalon’s Rare Earth Element Project provide opportunities for the establishment of a non-precious metals secondary processing industry in the territory. Projects such as Prairie Creek and Pine Point will facilitate economic growth in the Deh Cho and South Slave. These and other future mines are critical to our economy over the medium term as our existing mines reach their half lives.

Fiscal Strategy

As Canada’s provincial and territorial economies recover, their governments face new fiscal realities. Recently, we’ve seen countries, states and cities face downgrades in credit ratings and, in some cases, bankruptcies. Inadequate fiscal management is not an option and we must ensure our fiscal house is in order.

We remain one of the best managed jurisdictions in Canada. Our Aa1 credit rating is the second highest rating obtainable from Moody’s Investors Service, with only Alberta and British Columbia receiving higher ratings in Canada. Our debt servicing costs are only 1 percent of revenues, and we have one of the lowest debt to GDP ratios in the country. And we intend to keep it that way.

There are two reasons for this. First, we don’t want to jeopardize our Aa1 credit rating by wavering in our commitment to the rules set in the Fiscal Responsibility Policy. We will not borrow for operating expenditures and we won’t borrow for more than half the cost of infrastructure. A strong credit rating is not just about lower debt costs. It also signals a fiscally strong, stable environment for outside investment. We are determined to maintain that advantage.

The second reason is that we are constrained by the federally legislated borrowing limit. We worked collaboratively with Canada to secure an increase to our borrowing limit from $575 million to $800 million. This provides us with the added flexibility to invest in capital but is not as substantial as the new limit would suggest if fiscal discipline is not maintained.

Our borrowing is made up of both long-term and short-term debt. Most of our long-term debt is self-financing through user fees or ratepayers. On the other hand, our short-term debt needs to be carefully managed to ensure we have both the borrowing room and cash to pay for future investments.

Over the past few years, we used short-term borrowing to cover cash shortfalls created by increased infrastructure spending during the recession. Our short-term debt increased substantially.

As our private sector rebounds, we are assured that the decision to use short-term borrowing to invest in more capital has paid off. Now it is time to reduce our short-term borrowing and start to rebuild our cash to more sustainable levels.

This means generating sufficient operating surpluses to repay short-term borrowing and fund a minimum of half of new capital investments with cash. We will do this by constraining growth in our spending on existing and new programs at rates lower than the growth in revenues and turning to a more affordable level of capital investment.

At the same time, we recognize that our current level of capital investment will not address the GNWT’s growing infrastructure deficit, which is currently estimated at $3 billion over the next five years. Just like the staff that occupy them, health centres, hospitals, schools and other facilities are essential tools needed to deliver our programs. Roads, airports, ice crossings and bridges are the lifelines for food, supplies, tourists and resources.

That’s why, Mr. Speaker, our plan for rebuilding will not be easy. Not only is our infrastructure deficit growing, but increased costs challenge us at every turn. Rising fuel and electricity prices put pressure on all residents and our programs. We are also expecting increased demand for services such as health care due to changing demographics. In 15 years the number of people 60 years of age and older will double in the NWT.

We are also under no illusions about our potential revenue growth in the near term. Our Territorial Formula Financing Grant makes up 70 percent of the GNWT’s budget for programs and services. Although the federal Minister of Finance has assured us that the formula will not change through to 2018-19, we know that the grant’s growth will slow significantly because of stagnant population growth and restraint in provincial government spending. While we will continue to work with Canada to secure federal transfers in priority areas such as health and infrastructure, the March 29th federal budget is a clear indication that new funding through federal transfers should not be part of our plan.

Despite these pressures, this government is committed to protecting the programs and services our residents rely on. This budget makes no cuts to the $1.4 billion earmarked for programs and services. We have worked hard through the collective bargaining processes to ensure that we retain the public service we need to deliver those programs. We are making good progress in finalizing the collective agreements and welcome

the fiscal certainty this will provide to the end of this Assembly.

In the face of decreasing growth in revenues over the medium term and a growing infrastructure deficit, decisions will have to be made on what the priorities for spending are to make our vision for the NWT come true. Mr. Speaker, as we heard in the throne speech, this government has made a commitment to doing things differently. We are reaching out to engage Northerners in building new partnerships. That means starting a conversation with residents about what they expect government to provide with limited resources.

We know we cannot fund everything. We also know we need the support of NWT residents to make these tough choices. This fall I will meet with residents, businesses and governments across the NWT. We want their input on how we can better serve our people and grow the economy.

Budget Highlights

Mr. Speaker, our fiscal strategy is highlighted by our return to operating surpluses with a $74 million surplus projected for 2012-13. We have accomplished this by holding 2012-13 operating expenditures to $1.4 billion, an increase of 3.7 per cent or $51 million from the previous year.

Increasing demand for, and costs of, existing services account for $33 million of the increased expenditures. An additional $35 million will be invested in the priorities of this government. These increases will be partially offset by sunsets.

The increase in our operations expenditures will be financed through an estimated $1.5 billion in revenue, an increase of 9.5 percent from the 2011-12 revised estimates.

Short-term debt is projected to be $216 million at the end of 2012-13. When combined with our long-term debt, and the debt of the NWT Power Corporation, NWT Housing Corporation and other public agencies, total GNWT debt will be $656 million at March 31, 2013.

Expenditures

Mr. Speaker, this budget makes investments in the goals and priorities set out by the 17th Assembly in

October.

Supporting our People

This budget continues to support individuals, children and families by perfecting the critical services they rely on, but also makes a number of strategic investments.

In 2012-2013 we’ve budgeted $818 million or nearly 60 percent of every dollar for education, health care, social services, housing, policing and corrections programs. Most of this money is an investment in health services and education to help

us meet our goal of having healthy and educated people.

Our health care facilities are at the top of our list of critical infrastructure needs. To address our territory’s health facilities deficit, we are spending $30 million this year on facility replacements and renovations.

New facilities, such as the H.H. Williams Memorial Hospital in Hay River, and renovations like the Fort Smith Health Centre, ensure our health system remains capable of serving our regional centres. As well, $3 million will be spent on a planning study for the Stanton Territorial Hospital. This money is the first step in extending the life of a facility that provides critical health care services to residents from all across the territory.

We also recognize that good physical and mental health starts at home. This is why improving housing conditions is a key priority of the 17th Assembly. This budget commits $2.2 million in new funding to implement the priority areas for actions identified by our recently completed shelter policy review. This funding includes $1 million for improving public housing rent scales and $1.2 million for a new rent supplement for private rentals.

Northerners have told us that the existing public housing rents aren’t working. The rents are complicated, unpredictable and create disincentive to work. The addition of $1 million starting in 2012-2013 will be used on a new public housing rent scale to fix the problem. The new scale will be simple, predictable and fair. It represents a huge step in the right direction to ensure that public housing promotes self-reliance.

We are also improving the quality of our public housing through a $13.2 million investment for the Housing Corporation’s capital plan. This investment will give a major refit to 118 public housing units and replace another 26 units. Twelve new or retrofitted units are for the Homeownership Entry Level Program, which provides assistance to prospective first-time home buyers.

We are also lowering public housing utility costs. With declining federal funding for operating public housing, we need to ensure our programs are as efficient as possible. The $700,000 budgeted for additional eco-energy retrofits will make the public housing program more affordable and sustainable over the long term by lowering operating costs.

Public housing is just part of the equation. We have too many working families that receive regular paycheques but struggle to pay both the rent and put food on the table. These are people who are not eligible for public housing or income assistance. The $1.2 million rent supplement included in this budget supports working families that are struggling to pay full market rents and is a step forward

towards our goal of having healthy, educated people free from poverty.

High power costs also contribute significantly to our residents’ costs of living. Recognizing how debilitating the rising cost of living can be, we are allocating $15.6 million to offset a portion of the NWT Power Corporation’s upcoming rate increase. Although we are unable to absorb the entire power generation cost increases at the NTPC, this investment will moderate the transition to higher rates.

Going forward, we are looking at regulatory improvements that will avoid the need for such drastic price increases by providing for an annual indexing mechanism.

We also want to help families lower power bills through initiatives that support energy conservation. That’s why we’re continuing the popular Energy Efficiency Incentive Program with an investment of $350,000. Rebates on more efficient models of appliances, such as fridges and washing machines, can help decrease overall power consumption.

This budget includes $500,000 to establish child and family services committees in five communities. These committees allow communities to take a more active role in supporting children and families in a culturally appropriate manner.

Children are our future and we all work together to ensure that they have the support they need. The legal system can be intimidating, difficult and stressful for them. The children’s lawyer gives children a voice in child custody or child protection actions, and helps the court in resolving matters more quickly and with better outcomes for children. This budget commits $150,000 to finalize the creation of this office.

This government understands that action is needed to address family violence. We remain committed to implementing the recommendations of the Framework for Action on Family Violence. Part of our plan is an investment of $137,000 for an RCMP family violence coordinator. This coordinator will ensure RCMP officers have consistent information and training to deal with family violence. The position can also provide a dedicated RCMP liaison for front-line workers and social program agencies. The result will be a more effective response to family violence.

Supporting our Communities

This budget not only supports our residents but also the communities in which they live. We know that people flourish in sustainable, vibrant and safe communities.

The 2012-13 budget provides over $69 million so community government can provide a variety of programs such as municipal services, water and

sewer and community sport and recreation programs.

We will continue to provide stable and predictable funding so that communities can manage their infrastructure. This fiscal year the GNWT will continue to provide $28 million to our 33 communities in addition to the flow-through of $15 million under the Federal Gas Tax Agreement to support community infrastructure priorities.

We will also continue our efforts to improve delivery and access to programs and services in our communities. In 2012-13 we will be opening five new single-window service centres in Sachs Harbour, Tsiigehtchic, Tulita, Fort Liard and Gameti. Building on the eight already in existence, these service centres will continue to improve access to government services in small and remote communities.

We remain committed to developing governance and autonomy at the municipal level. To help make this happen, we are investing $185,000 to conduct legal surveys to help transfer title of Commissioner’s land in and around Deline as part of the implementation of the Deline Self-Government Agreement. To further the goal of effective and efficient government, we are spending $462,000 to continue the Regional Land Administration Program right across the NWT.

Another step towards building sustainable communities is our investment in local and renewable sources of energy that reduce reliance on environmentally unfriendly and costly diesel-generated power. An investment of $100,000 will help the NT Energy Corporation match communities with potential hydro and other renewable energy projects to reduce energy costs and greenhouse gas emissions. To promote more energy efficiency, $200,000 is budgeted for the work of the regional energy advisors that visit communities to conduct home energy audits, training and workshops. These investments support our goal of creating sustainable communities in an environment that will sustain present and future generations.

The town of Inuvik is facing an imminent depletion of its natural gas source, and we are committing $100,000 to help the town’s residents and businesses install wood pellet stoves and boilers. In addition, $100,000 will be invested in exploring medium- to long-term options for Inuvik’s natural gas shortage. We will use what is learned in Inuvik to support other communities facing supply uncertainty, such as Norman Wells.

Mr. Speaker, community safety is a shared responsibility and we all have a role. While economic development is positive, we know that many communities are struggling with the impacts of high amounts of disposable income that could lead to higher levels of alcohol and drug abuse.

This budget invests $276,000 in actions to monitor the impact of economic development on our residents and implement a Community Safety Strategy. This work will involve assessing and sharing best practices and defining community strengths and resources that keep communities safer. This will include working in conjunction with the RCMP to develop specific plans based on the priorities of the communities. Together we will build safer communities where people can thrive.

Supporting our Economy

As our economy recovers, we will make sure Northerners and their communities benefit as much as possible from this growth. We will do this by expanding the economic opportunities available across the NWT.

We have been talking about the need to secure lasting benefits from economic growth to smooth out the boom and bust cycles of our resource-based economy. The implementation of the Macroeconomic Policy developed in the last Assembly will allow us to bring economic considerations to bear more heavily in our business planning. The policy will be used to evaluate investments made to grow the economy and to measure how our efforts are working.

We have to expand our conversation about economic diversification and growth from the need to do something to a plan to do something. In 2012-13 we will invest over $1 million to develop a Mineral Development Strategy and an Economic Development Strategy to guide our economic policies, programs and services. We look forward to hearing from Northerners about how we can craft strategies that will help us achieve our goal of a diversified economy where every community and region has opportunities and choices.

Mining is a cornerstone for robust growth in our economy. We have long heard about the rise of the west. Now it is time for the rise of the North and the cohesive strategy for mineral development will ensure we play a leading role. A territorial-wide Mineral Development Strategy for the NWT will celebrate the successes we have enjoyed as a result of mining, but it will also address the challenges. There is no time like the present to address the challenges of one diamond mine approaching the latter half of its life and the other nearing its midpoint. We also need to address exploration expenditures well below the historical highs and unfavourable industry perception of the NWT’s regulatory regime.

Developing a plan for mineral development with input from all levels of government, citizens and industry will help us sustainably realize our full mineral potential. As we near the completion of a devolution agreement for non-renewable resources, this strategy will guide our activities during and after the transition of responsibilities.

At the same time, we will continue to maximize the benefits from the mines we already have. We continue to invest in the Mining Workforce Initiative which is aimed at increasing the number of mine employees living in the NWT. Increasing our population will grow our revenue and economic base.

A diversified economy needs more than just mines. It needs tourism operators, manufacturers, thriving service and creative industries and much more. By engaging with our stakeholders, we will produce a new Economic Development Strategy to help us to achieve our goals to diversify and put us on a path of prosperity that works for everyone.

Once a proposed land use sustainability framework is completed, it will guide decisions on land use planning and management and will support the Mineral and Economic Development strategies. These three pieces will support our vision for sustainable development in our territory in the years to come.

Our commitment to the traditional economy is highlighted in this year’s 10th anniversary of the

revitalized Genuine Mackenzie Valley Fur Program, a model for other programs across the country. This program works because it provides income directly to trappers and because it gets youth out on the trap line. With this year’s record-breaking fur prices and nearly 2,300 youth in the Take a Kid Trapping Program, our traditional economy should continue to thrive for years to come.

Tourism remains a key economic priority in our plans for economic development and diversification. In 2012-13 the GNWT will invest $10.4 million in tourism. The new marketing plan for NWT Tourism contains some exciting ideas to bring new visitors to experience the natural beauty of our territory. As well, this year we are spending $100,000 to host the national Committee on Internal Trade meeting. This is an excellent opportunity to showcase the NWT’s economic and tourism potential to the rest of Canada. We are continuing our ongoing support for our outfitting industry with $300,000 for the Sports Hunter Outfitter Marketing Support Program.

NWT businesses will also benefit from over $137 million in capital investment planned for 2012-13. Our capital investment will employ Northerners and continue to provide a strong activity base for our construction industry. Combined with the increased activity expected in private and non-residential construction in 2012, our construction industry is well poised to see strong growth this year.

Recognizing the challenges experienced by small businesses, we continue to support small businesses in building our economy. In 2012-13, $3.9 million will be available under the Support for Entrepreneurs and Economic Development Program. We are also providing $200,000 in rebates to implement energy conservation and

efficiency measures by NWT businesses that save on heating, water and electricity bills.

Supporting our Environment

Mr. Speaker, sustainable economic development is only achieved by protecting the environment. We expect to spend almost $66 million in 2012-13 to protect our environment by making sure our resources are used wisely and that people understand their part in keeping the environment healthy.

In addition to ongoing work to implement environmental protection strategies started in previous Assemblies, we are investing $905,000 in this budget to negotiate transboundary water agreements. These agreements will protect the quality and quantity of water entering the NWT from neighbouring jurisdictions, particularly Alberta, and they are a promise to protect the ecological integrity of the Mackenzie River Basin while allowing people to continue to choose a traditional way of life. This additional funding will bring our total investment in our NWT Water Stewardship Action Plan to $3.2 million.

We are committed to reducing greenhouse gas emissions with the dual goal of reducing energy costs for residents and businesses. This budget invests $6.4 million to fund new and ongoing energy projects and initiatives. This includes $1.8 million in base funding to the Arctic Energy Alliance, $470,000 for ongoing energy planning work, $654,000 for capital asset retrofits and another $3.5 million in new initiatives.

The $3.5 million in new energy initiatives includes the $1.55 million previously mentioned for our energy efficiency programs, the NWT Housing Corporation’s retrofits and the alternative energy options in communities. We are also including $150,000 in this budget to renew the NWT Energy Plan, which will establish our priorities and approaches towards energy over the next decade.

We are exploring alternative energy sources such as biomass, geothermal, wind, water and solar that will help communities reduce their dependency on diesel-generated power. The forthcoming Solar Energy Strategy, exploration of our geothermal potential, and our $800,000 investment in the NT Energy Corporation continue our efforts to displace fossil fuels. Such investments use the natural endowments of the land to support our goal of creating an environment that sustains present and future generations.

Another $100,000 will be invested in the implementation of the Biomass Energy Strategy. As the price of fuel oil rises, generating heat and power using wood and wood pellets can help make our communities more sustainable. Over the long term, locally produced pellets could also help diversify our economy.

We are continuing our programs to reduce the government’s dependence on non-renewable energy with an additional $850,000 for the installation of biomass and electric boiler systems at the Deh Gah School in Fort Providence and Fort Smith’s Northern Lights Long-Term Care Facility. This capital investment will be brought forward as a supplementary appropriation later this session. It will displace another 172,000 litres of fuel oil annually, saving us $136,000 per year. These two projects will reduce greenhouse gas emissions by an estimated 470 tonnes per year.

We also recognize the challenges resulting from climate change. This budget adds $142,000 provided by the Building Canada Plan for research and pilot projects to be undertaken by the Department of Transportation to deal with the impacts of climate change on infrastructure, bringing total funding this year to $406,000. Such research will provide the GNWT and other interested stakeholders with the best practices to mitigate and adapt infrastructure to the impacts of climate change, such as permafrost degradation.

Revenues

Mr. Speaker, this budget introduces no new taxes. We will not be adding to the rising cost of living of Northerners. We also know that a stable and competitive tax system encourages job creation, as well as business and economic growth.

However, we will continue our policy of indexing taxes and fees to inflation where possible and practical. Steady and stable indexing avoids large, painful adjustments in the future.

We expect our modest economic recovery will bring in more tax revenues, but we will continue to closely monitor our revenues, particularly if the economic recovery is slower than expected. As our most volatile revenue source, corporate income tax exposes our budgets to swings in balances.

We are investigating the possibility of a Revenue Stabilization Fund, similar to that in other provinces, to more actively manage sharp increases and decreases in revenues.

Looking Forward

Mr. Speaker, this budget and fiscal plan it is built on sets the path for achieving this Assembly’s priorities. But this is a marathon, not a sprint. Today we are strategically investing in priorities for our people, our environment and our economy while rebuilding our cash reserves. Tomorrow we will be ready to invest in the big infrastructure projects that will further strengthen and diversify our economy.

Projects such as the Inuvik to Tuktoyaktuk portion of the Mackenzie Valley Highway in partnership with Canada. This 135 kilometre all-weather road is currently undergoing an environmental assessment and when complete will support sustainable

economic development and lower the cost of living in the region. It will also advance the dream of connecting Canada from coast to coast to coast.

Lowering the cost of living is not only achieved through road access but also through access to lower cost power generated by hydro and other alternative energy initiatives. The last few years have demonstrated a need to think outside the box as the energy resources that our communities have relied on are depleted. We will continue to make development of renewable energy sources a priority of this government so that NWT residents will benefit from new technology that will lower costs, diversify our economy and energy base, and reduce our greenhouse gas emissions.

Achieving our goal of healthy people free from poverty will require investments in improving our housing stock and addressing our health facilities deficit.

We will also continue to explore the possibility of a public-private partnership for a fibre optic cable from Fort Simpson to Inuvik. This $65 million fibre link project could transform the economic base of the NWT by promoting economic growth in knowledge-based industries, diversifying the private sector, and improving its competitiveness. We also look forward to its potential to revolutionize government service delivery by improving community connectivity up and down the valley.

We are confident that these and other new projects will become realities over the medium term as we build our cash reserves over the next two years through budgetary surpluses and fiscal restraint. We will talk to NWT residents, businesses, and governments to understand where they see opportunities for savings, as well as how they see the GNWT allocating future fiscal resources to make investments.

Infrastructure is not the only precursor for a strong, sustainable future. We need control over our lands to ensure our future reflects the vision of Northerners.

We are in negotiations to finalize the Devolution Agreement-in-Principle signed in 2011. Devolution means decisions about public lands, resources, and water will be made in the NWT instead of Ottawa. The final agreement will establish the funding to run the devolved programs as well as provide a net fiscal benefit through our resource revenue sharing agreement.

Every day without a final agreement means another $165,000 of resource revenue leaves the NWT; about $60 million a year. The resource revenue sharing agreement will return those revenues to the North to be used to benefit our people by helping meet the infrastructure needs of NWT communities and by building our legacy heritage fund.

The GNWT has offered to share 25 percent of the resource royalties generated by development on public lands with Aboriginal governments. This would be in addition to any resource royalties the Aboriginal governments themselves receive from development on settlement lands.

This budget provides $9.3 million for the negotiation and implementation of the final devolution agreement, including money for engaging Aboriginal governments and funding their participation in the final agreement negotiations. As this process unfolds we must ensure all of the players have a voice and place at the negotiating table. We hope to have an agreement completed by the end of 2012 and will work on implementing it over the following 18 months.

Devolution is critical to ensure the decisions about our lands and resources are based on northern priorities of sustainable development and that our future reflects our vision.

Conclusion

With this budget we are starting to build that future by firmly committing to our plan of long-term fiscal sustainability. This budget makes progress towards the priorities we set out just seven months ago. It won’t all happen in one budget, but we present this budget as a solid start.

Over the past three months we’ve seen budget after budget tabled across Canada calling for curbs or cuts to spending to raise governments out of years of deficits. Our residents can take pride in the budget that returns us to balance while protecting the value of programs and services we rely on.

This balance is critical to restoring fiscal sustainability, paying down short-term borrowing, and rebuilding cash reserves to invest in critically needed infrastructure in the future. Rebuilding today will put us on solid financial footing to invest aggressively tomorrow.

We believe the best way to predict the future is to create the conditions to achieve it. We see the challenges facing our economy but we also see the opportunities. Our sound financial management will allow us to address these challenges and seize these opportunities to plan and build the tomorrow we want for the NWT. Mahsi.

---Applause

Thank you, Mr. Miltenberger. Now we’ll recess for a 30-minute break in the Great Hall.

---SHORT RECESS

Colleagues, I would like to provide my ruling on a point of order raised by Mr. Hawkins during oral questions yesterday.

Last night when I had Hansard sent up to us, I was struck by the difference between this set of questions and answers and the exchange between Mr. Nadli and the Premier right before it: respectful, articulate in tone. The first set of the questions and answers remind me of how we just talk to people when we’re at home talking to people. They did justice to the civil nature of our system of this government. The second exchange that followed did not. It was really disrespectful for this House.

Mr. Hawkins and Mr. Ramsay are both experienced Members. Mr. Hawkins set the tone in his Member’s statement by using provocative, insulting language. He accused Mr. Ramsay of being thin-skinned, and then jumped up with a point of order when the Minister reacted in a strong language of his own. This is Mr. Hawkins’ third term as a Regular Member. He should be setting a good example for new Members on that side of the House.

Mr. Ramsay is also an experienced Member and now a Minister and a member of the Executive Council. When asked a question, a Minister can do one of three things: answer it, take it as notice, or refuse to answer it. When provoked, Ministers should stay focused on the issue rather than turn up the heat and make things worse.

In the response to Mr. Hawkins’ last question, Mr. Ramsay chose to criticize Mr. Hawkins’ manner of expressing himself, rather than use one of the three options available to him. He did this after I took the point of order under advisement and after I asked Members to stop taking shots at each other in yesterday’s oral questions.

This House is not a theatre. It may be that way in other jurisdictions, but not here. We’re elected by the people to lead, not to entertain each other or entertain the viewing public. I’m not suggesting that our questions and answers should be boring or uncontroversial, but yesterday it went too far. It was very personal and disrespectful.

Whatever is going on behind the scenes, I want Members to leave it at the Chamber doors when you come in here and focus on the work of the people when we’re in here. That is what they expect of us, to do the job for the people, and that’s what we owe each other. So there is no point of order.

Item 3, Ministers’ statements. Item 4, Members’ statements. The honourable Member for Hay River South, Mrs. Groenewegen.

Thank you, Mr. Speaker. Today I would like to talk about seniors housing in the Northwest Territories and the new rent scale that came about as the shelter review policy was undertaken.

During the last couple of weeks my colleague from Hay River North and I had the opportunity to meet with some of the seniors in Hay River to discuss this very topic. I would first like to articulate a few of the benefits seniors have living in the Northwest Territories.

We have from our government the fossil fuel subsidy, the reduction to the cost of drivers’ licences, supplementary health care benefits – including pharmacy formulary which is second to none. Now the shelter review policy has indicated that perhaps seniors living in public housing should be paying some rent.

This new rent scale will lower rent for families and will raise rent and actually begin charging rent to others, seniors included. The net benefit to this government is only $350,000, but I think there is a principle here. When we heard from the NWT seniors in their presentation, the representatives seemed to equate being elderly with being without means, with not having sufficient funds to support themselves. We know the cost of living is high in the North, but I don’t think that’s a direct correlation that we can draw.

I certainly know in the case of Hay River and in other places, as well, seniors living in public housing who are paying zero rent at this time who are over 60 are neither income nor means tested. Now, is that a policy that needs to be reviewed? In my opinion, yes, it is.

I do not believe that this policy is fair. I do not believe that it is sustainable. As Mr. Miltenberger said in his budget address today, the demographic of people living to be over 60 is growing everywhere in Canada, and as he said, in the next 15 years the number of people over 60 in the Northwest Territories will double. So we need to be very forward thinking as a government and say, is this policy on the books currently a sustainable policy. I do not believe it is.

We cannot afford to do it for everybody. I think that we need to look as a government also on the flipside of that of doing more to help sustain people who are living independently in their own homes right now. Whether that’s an annual maintenance program or emergency repairs or enhanced home care, I believe we need to look at the benefit and the cost saving of people living independently in

their own homes and put an end to this very unfair policy.

Thank you, Mrs. Groenewegen. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you very much, Mr. Speaker. Today I wanted to speak about tourism in the NWT. Last week I attended the Rendezvous Canada down in Edmonton. It was a great pleasure to attend it with Mr. Ted Grant of Simpson Air, as well as Loyal and Ria Letcher from North Nahanni Naturalist Lodge.

It was great to be there and it was great to see all the ideas that are there from all jurisdictions in Canada. All jurisdictions are very supportive of their tourism industry.

For years our Northwest Territories Tourism has worked hard, with a limited budget to promote the NWT around the world. Recently, ITI boasted that tourism contributed over $110 million to our economy every year and that 70,000 visitors were drawn to the NWT in 2001. In this year’s budget there is a reduced funding to tourism.

Yukon, our main competitor for tourists, invests easily twice as much in tourism as the Government of the Northwest Territories. Three hundred thousand visitors contribute over $200 million to the Yukon economy every year, making tourism their biggest private sector employer. Even Nunavut has found a way to make a small increment to its tourism investment in 2012-2013. Not our government.

Tourism is one of our greatest resources. Not all our communities benefit from mining but every community can benefit from tourism. For every dollar we spend on tourism we get at least two back. There is a guaranteed return on investments in conferences, festivals, cultural and sporting events, and Aboriginal tourism.

Infrastructure investment that supports tourism should also be a priority. NWT Tourism has developed a detailed marketing plan to target potential visitors worldwide. If we increase their budget, they could tell us line by line exactly what they will use those added dollars for. Instead, the funding will be decreased. We are only losing out on opportunities for economic growth.

Thanks to the hard work of people in our tourism industry, the Northwest Territories is recognized around the world. TV shows like Ice Pilots and Ice Road Truckers have put us on the map. We are no longer known as the territory somewhere east of Alaska. The Northwest Territories is the best northern destination on the planet and we need the resources to prove it.

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

Thank you, Mr. Speaker. The Arctic Energy Alliance has announced the winners of this year’s Energy Action Awards. As we turn our attention this session to the ballooning cost of energy, I want to salute the accomplishments of our citizens and businesses who are showing us the way to a more secure energy future.

Doug Whiteman of Norman Wells won the Individual Energy Action Award. Starting with a biomass pellet space heater, Mr. Whiteman then converted this home to forced air pellet heating. His annual heating costs dropped 40 percent, paying off the cost of purchase and installation in less than four years. He has since added pellet heating to his business workshop and commercial chicken operation. Best of all, he is now protected from the spiking heating costs facing most of us.

The YWCA Yellowknife’s institutions award recognized energy reduction of 15 percent through simple equipment replacements. Low-flush toilets, taps and showerheads, front-load washers, programmable plug-ins and motion sensing lights, LCD lights and lower corridor temperatures were introduced with help from DeBeers and the GNWT. The Y is looking at a pellet boiler to drive costs down even further.

The Hamlet of Enterprise took the communities award for similar measures across the community. Front-load washers, low-flow toilets and taps have reduced water use and the amount of water being trucked, lowering greenhouse gas output. Help from the GNWT energy efficiency incentives was key.

The business award went to the Yellowknife Co-op for its aggressive replacement of refrigeration units with energy-efficient models and capturing heat output of cooling units. New freezer and cooler cases consume an amazing 83 percent less energy.

Mr. Speaker, I salute the achievements of these energy leaders. Unfortunately, the very programs enabling such success are capped to small and oversubscribed budgets. We have meagre amounts available under the commercial energy conservation and energy efficiency incentives and EnerGuide programs and no money available for small-scale conversions to biomass. Every project under every one of these programs saves our consumers money, provides energy security, protects our environment and builds our local economies. We need to beef up our support for these vital programs. Mahsi.

Thank you, Mr. Bromley. The honourable Member for Sahtu, Mr. Yakeleya.

Thank you, Mr. Speaker. As I listened to the Minister of Finance in the budget address this afternoon, I’m hoping that throughout this whole session that we would have ample opportunity to have some of our wishes on this side here be included as part of the discussions.

Mr. Miltenberger talked about the Great Depression in his opening statement here on our finances in the Northwest Territories. Through the Great Depression I understand also there were many opportunities for people to get out there to find jobs, to find opportunities that would benefit them in the future. Also, a lot of wealth was created during the Great Depression, Mr. Speaker, because of the low prices of land and business and that.

That was a real opportunity for us in the Northwest Territories. We have that. You know, the economic outlook may not look so good. We had all our hopes on the Mackenzie Gas Project and right now it’s not getting much support, either, from the companies or even Ottawa. We don’t even know what’s happening with that. But we seem to be looking at, well, that’s still our great white horse that’s going to bring us the economic prosperity to the Northwest Territories. We need to wake up and look at it and say it’s not getting the attraction that we want. It has all the potential but it’s not there yet. We need to look beyond this and diversify.

One of the things we need to do is to get to those riches. This is something that I hope this government will look at, is a transportation strategy infrastructure to get to those resources. We’re rich in them but we just don’t have the means of getting into those areas that could produce a lot of prosperity for us.

This is what I’m looking for in this budget address and how do we get our people, get our infrastructure in place, get the education in place for our younger people, get the addiction programs in place. We need to wake up. This budget, I hope, gives us the opportunity to look at the reality for what it is and do something within the short time that we’re here.

I’ll have many questions for the Ministers on this budget throughout the next two to three weeks.

Thank you, Mr. Yakeleya. The honourable Member for Range Lake, Mr. Dolynny.

Thank you, Mr. Speaker. The Canada Health Transfer to provinces and territories has grown steadily from $20.3 billion in 2005 and is expected to reach $28.6 billion in 2012-13, at a growth rate around 6 percent. Under the federal government’s new unilateral funding formula, this growth will continue until 2017-18, and then proceed in line with nominal GDP growth at around the 3 percent per year level.

This all sounds pretty good and it’s simply an extension of what the provinces and territories have become accustomed to to receive from the federal government. Even the Minister of Finance has alluded earlier in this session that things should be good in the short order. However, there is a significant difference in how transfers will be calculated in the very near future.

Starting in 2014-15 the Canada Health Transfer will be allocated on an equal per capita cash basis only, where before payments were made on both a per capita basis and a points tax transfer. Because equity calculations can be complex, this new equal per capita cash payment is being sold as the simplest way to distribute money to the provinces and territories as a fair system. Yet, there is a difference between equity and equality, and treating everyone the same will prove very difficult, especially for the North and the Northwest Territories with its smaller population base and pending natural resource revenues with devolution.

Every province and territory is different in their fiscal capacity, rates of population growth, rates at which the population is aging, the proportion of Aboriginal and immigrant population or the incidence of various disease conditions. In essence, many believe that health transfers should be equalized to address regional differences in health and not just based on per capita funding.

The real solution that this government should pursue is a blended formula that combines the need for base core funding with recognition that variances in population characteristics and demographics create different regional spending pressures.

Therefore, the Canada Health Transfer payment for the Northwest Territories should be broken down into two components: one, an equal per capita cash payment recognizing fixed costs of operating a health care system with reasonable comprehensive range of services no matter the size of our territory, and two, a base payment on a formula that takes into account our population growth, differences in our age proportions and population, our proportion of Aboriginal and immigrant populations and our geographic hurdles of service delivery.

Mr. Speaker, only with this type of blended formula can the future federal health transfers be truly fair and sustainable for the people of the Northwest Territories. I wish to thank Dr. Matteo, professor of economics at Lakehead University, for allowing me to share some of his views today. I will be asking questions later for the Minister. Thank you.

Thank you, Mr. Dolynny. The honourable Member for Inuvik Boot Lake, Mr. Moses.

Thank you, Mr. Speaker. I wanted to touch on in my Member’s statement today about the experience I’ve had since I’ve been in this Assembly. It’s been quite the eye opener in terms of reading reports, interacting with Ministers and with the government. There are a lot of things that I do shake my head at sometimes, and there are a lot of times where I do get a little bit overwhelmed with some of the responses that I do get, specifically around reporting.

In past governments and this government, that we can make a positive change here. We can put a lot of these recommendations that are in reports that I’ve been reading into reality. We have an opportunity over the next four years to do that, working with Ministers on that side of the table and working with government. In fact, there are recommendations that I’ve seen in reports when I was working for government, when I was working on committees and volunteered, that have not been actioned. There are a lot of people in the Northwest Territories who put a lot of work into these strategic plans, work plans, and hoping that when it does get to this House that it’s just not tabled and it gets action to.

Well, I can make a commitment today that over the next four years, as I learn about these reports, as I see these reports, that I will bring it into the House and question the government to make sure that some of these recommendations that are put forward, if they haven’t already been addressed, do get addressed or looked into for future business plans.

I do know that the GNWT staff do a lot of work, and based on resources and funding, you know, there are some restraints in what we can and cannot do, but if we start putting our efforts to what these specialists recommend and the front-line workers recommend, then I think we can start seeing a positive change in the health and wellness of our people, our economy and everything that was mentioned in the statement earlier today with the financial budget address.

I just wanted to talk about reporting and that when it comes to the House that it just does not get tabled and left at that. That recommendations do get a serious look at and that we do work on them.

Today I will have some questions on a report where I had some input on recommendations when I was working for the government and also as a volunteer of the public. Thank you, Mr. Speaker.

Thank you, Mr. Moses. The honourable Member for Hay River North, Mr. Bouchard.

Thank you, Mr. Speaker. Today’s Member’s statement will be about the happiness that I am having with a lot of my friends who are expecting children. However, the difficulty is they are having to travel to Yellowknife or southern destinations, Grande Prairie, Edmonton, to have these children, because in Hay River we cannot deliver babies.

My question today will be to the Minister of Health. Now that the Midwifery Program has been completed, I am looking to know when we can see the implementation of these recommendations to put the delivery of children closer to home. The Midwifery Program review indicated that there is a cost savings to allowing these ladies to have their children closer to home and in the regional centres. There is also a benefit to the families and the young children that are being born to be closer to home.

As I have indicated to the Members here earlier a couple of months ago, we had the joy in Hay River of actually accidentally delivering a baby in Hay River. It gave great joy to myself and several friends and family that were able to be close to the family when they are right in Hay River. As well, the staff at the hospital were happy to see a newborn baby, like I indicated in my Member’s statement a couple of months ago. They could see the start of life as opposed to always having to see the dark side in the illness in the hospital.

I look forward to hearing from the Minister on the implementation of midwifery. I do believe that we need to get the names of Hay River, Fort Smith, Inuvik, Norman Wells, Fort Simpson back on the birth certificates of residents and to our future voters of the Northwest Territories. Thank you, Mr. Speaker.

Thank you, Mr. Bouchard. The honourable Member for Frame Lake, Ms. Bisaro.

Thank you, Mr. Speaker. There is an urgent need for a stand-alone Aurora College campus in Yellowknife. At this time the other two NWT communities with comprehensive college curriculums, Inuvik and Fort Smith, both have stand-alone campus buildings and designated student housing infrastructure. Yellowknife has neither, however. Aurora College students attending courses in Yellowknife take their classes in a crowded, leased space in a high-rise building. The lease on that space was renewed last year but only for a short time.

The housing stock at Yellowknife North Slave Campus is very limited and all units are rented, not owned. So do we have plans for the future? I sure hope so.

This government prides itself on being fair and equitable on striving to provide the same opportunities to all residents. Students taking programs in Yellowknife deserve the same treatment and the same support and campus amenities as the other campuses. But the current campus situation in YK cannot be said to be fair to the students nor can it be considered a situation equal to that of the other two campuses.

We should be much further ahead in the planning for a stand-alone Yellowknife campus than we are. It is the responsibility of the Minister to ensure NWT education facilities are up to expected standards and as fair and equal as possible. The Minister should be working with the college board and president to get this project started, to get this project beyond just the talking stage. There has been a lot of talk about this project but so far no concrete action. We should be anticipating the start of actual construction in three or four years’ time. Are we there yet? I think not.

I recognize that our fiscal situation is tight right now and that it will be so for the next couple of years. I can accept that it is necessary to reduce our capital budget, that we need to be fiscally prudent, but what I cannot accept is that future infrastructure plans for this government do not include a Yellowknife Aurora Campus project.

We need college programs which have relevance to the employment realities of today. A stand-alone Yellowknife campus will help with that, and it must be a high priority for this Assembly. Thank you, Mr. Speaker.

Thank you, Ms. Bisaro. The honourable Member for Deh Cho, Mr. Nadli.

Mahsi, Mr. Speaker. Earlier this month elders from across the territory gathered in this Chamber for the second ever Elders Parliament. The Deh Cho riding was well represented by Mrs. Georgina Fabian from the K’atlodeeche First Nation Reserve. I especially would like to thank Mrs. Fabian for her participation, as well as all the elders who came from all over the Northwest Territories to make the Parliament a success.

The topics discussed by the elders included the proposed changes to the public housing rent scales, the need for an elders ombudsman, and care and respect for elders.

The elders worked hard throughout the week to prepare themselves for the public debate on May 10th . During the public debate they passed motions

calling for the Government of the Northwest Territories to:

• delay making any changes to the public housing

rent scales for seniors until such time as full consultation has taken place with elders, communities and the Northwest Territories Seniors’ Society;

• make public a full cost-benefit analysis of the

proposed changes to the rent scales;

• work with elders, communities and the

Northwest Territories Seniors’ Society on a comprehensive framework to ensure consistency across seniors’ programs;

• introduce legislation within one year to establish

a fully independent elders ombudsman to investigate complaints and to promote fair, reasonable, appropriate and equitable administrative practices and services for elders; and

• work with elders’ organizations and communities to identify and remove barriers in GNWT regulations, programs and institutions that prevent or hinder elders from maintaining connections to their families and communities.

The elder parliamentarians put a great deal of thought and discussion into their recommendations and I hope that the Premier and the Ministers listened carefully and take those recommendations seriously.

Also, I would also like to point out that the Elders Parliament called on all Northerners to become engaged in elders’ issues, and to work within their families and communities to identify local resources and solutions to ensure that the elders have the means to age with dignity and respect. I would encourage everyone in the Northwest Territories to hear this message and to think about what they

might be able to do in their own homes and communities to help our elders.

Once again, I thank Mrs. Fabian and all the other elder parliamentarians for their thoughtfulness and hard work. I look forward to the next Elders Parliament in two years’ time. Thank you, Mr. Speaker.

Thank you, Mr. Nadli. The honourable Member for Mackenzie Delta, Mr. Blake.

Thank you, Mr. Speaker. Today I want to share the reality of the Grade 1 and 2 class in Moose Kerr School in Aklavik. It is a combined class of 18 students. It has a teacher and one assistant. That is based on the funding formula that the Department of Education uses with their regional authorities. The funding is not based on what the school and its students actually need.

The Grade 1 and 2 class have students who are struggling to master kindergarten expectations along with those who are almost at Grade 2 level. Some have severe special needs. One student is a runner, who will not participate in classroom learning and needs constant watching. It is a safety issue as well as a learning issue when a classroom assistant is busy with another student.

This fall four non-verbal students will be entering this classroom from kindergarten. They will join other students who need one-on-one support. Two students are working with speech pathologists. Altogether, three-quarters of the class need one-on-one attention.

Past experience at the Aklavik school shows that students who cannot read at grade level by the end of Grade 2 continue to struggle in later years. These students need help now. Grade 1 and 2 students need to be separated for math. This move has been a success at Moose Kerr School, although one teacher and one assistant cannot do all that.

The local education authority is asking for another teacher. It has been refused by the Beaufort-Delta Education Authority. As always, there is no money to fund what is an extra position according to the department’s formula. I cannot accept that answer, Mr. Speaker. That answer means that we value the formula more than the students. That answer means that we will condemn children to a life with only…