Debates of March 7th, 2013

This is page numbers 2429 – 2482 of the Hansard for the 17th Assembly, 4th 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 going.

Topics

Oral Questions
Prayer
Minister’s Statement 41-174): Anti-Poverty Strategy
Minister’s Statement 42-17(4): Availability Of Rentals For Critical Staff
Minister’s Statement 43-17(4): Alcohol Ignition Interlock Program
NWT Electoral Boundaries Commission Interim Report
Devolution Agreement Plebiscite
Hay River Community Wellness Planning
Inuvik To Tuktoyaktuk Highway Project
Medical Travel Escort Policy For Seniors
Real Estate Agents’ Licensing Act
Aboriginal Prison Populations
Committee Report 1-17(4): Standing Committee On Government Operations Report On The Review Of The 2011-2012 Northwest Territories Human Rights Commission Annual Report
Motion To Receive Committee Report 1-17(4) And Move Into Committee Of The Whole
Recognition of Visitors in the Gallery
Inuvik-Tuktoyaktuk Highway Project
Real Estate Agents’ Licensing Act
Hay River Community Wellness Planning
Alcohol Ignition Interlock Program
Correctional Centre Treatment Programs
Medical Travel Escort Policy For Seniors
Meeting With Federal Minister Of Aboriginal Affairs And Northern Development
Devolution Agreement Plebiscite
Aboriginal Prison Populations
Alcohol Ignition Interlock Program
Alcohol Ignition Interlock Program
On-The-Land Treatment Programs
Correctional Centre Treatment Programs
Written Question 23-17(4): Incarceration Rates For NWT Correctional Facilities
Tabled Document 41-17(4): Transportation Of Dangerous Goods 2012 Annual Report
Tabled Document 42-17(4): Report Of The Auditor General Of Canada 2013: Northwest Territories Income Security Programs - Department Of Education, Culture And Employment
Consideration in Committee of the Whole on Bills and Other Matters
Report of Committee of the Whole
Orders of the Day

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Okay. Page 5-18, Finance, activity summary, fiscal policy, grants and contributions, grants, $23.6 million. Does committee agree?

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Agreed.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you. Page 5-19, Finance, information item, fiscal policy, active positions. Are there any questions?

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Some Hon. Members

Agreed.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you. Page 5-21, Finance, activity summary, budget, treasury, debt management, operations expenditure summary, $26.762 million. Mr. Bromley.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you, Mr. Chair. Just in terms of managing our debt, am I correct that we only have short-term debt, we don’t have long-term debt?

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you, Mr. Bromley. Minister Miltenberger.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. We have both. We have some long-term debt with the bridge. We have other long-term debt against our borrowing limit that’s self-financing. As well, we have short-term debt. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Okay. All of the debt that is not self-financing is the amounts that we pay in interest the cost of that debt indicated on this page, or could the Minister tell me what it is or which ones would fall under that category? Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you, Mr. Bromley. For that we’ll go to Mr. Kalgutkar.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you, Mr. Chair. If the Member would look at the other expenses section of the page, that $13.1 million includes $8.2 million for the Deh Cho Bridge interest payment and $5 million for short-term interest costs as well. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Okay. So our short-term debt has been in the order of $5 million, I have three years in front of me, it looks like our short-term debt has gone up from $580,000, to $5 million, to the $13.2- roughly million. Am I correct in that? Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

March 6th, 2013

Kalgutkar

Thank you. What we have provided for is an allocation of $5 million for short-term interest costs, but as the Member has alluded to, our short-term interest costs have been lower than that. If Members recall, we increased them for the ‘12-13 budget because we were projecting some pretty significant short-term borrowing debt during that year and also if Members recall, we increased our authorized borrowing limit for short-term debt to $275 million. So the amount that we have provided for is just to have some kind of buffer there just in case we have increased borrowing needs during the course of the fiscal year. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you. I appreciate Mr. Kalgutkar’s comments there. I knew it wasn’t that simple. So we’re proposing $8.166 million for Deh Cho Bridge interest payments for this coming fiscal year. Will it stay at that amount and for how long? Or what’s the forecast for amounts there and longevity of that payment? Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you. The long-term debt payments on the Deh Cho Bridge debt are linked to inflation. So they won’t start going up, but for the medium term they’re going to be around the 8.1 to 9 million dollar range. They are about half offset by the bridge tolls. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you, and just the second part of that was how many years we will be paying that amount. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you. For the term of the loan which is 36 years. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you. My second topic of interest here was the Mackenzie Valley fibre link contribution. I think this is a project that we all are looking forward to seeing completed. There’s $7 million listed for this coming fiscal year. Is that a one-time cost or, again, do we have a forecast into the future for that project? Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you. Right now the $7 million is accounted for if we procure the project as a pure P3 type model. So there will be an initial cash contribution to the project to help offset the capital cost of $7 million, and then ongoing there’s an availability payment of $7 million to help service the debt payment. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Just to complete the picture for me, and ongoing for how many years? Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kalgutkar

Thank you. Right now we’re modeling a 20-year bond issue. That’s what it will be based on. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you, Mr. Kalgutkar. Minister Miltenberger.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Miltenberger

Michael Miltenberger Thebacha

So it is clear for the Member or for this House as well, we are actively pursuing discussions with some of the Aboriginal governments looking to set up a joint venture, which would be separate and wouldn’t involve the P3 approach. So what structure we choose to go forward could possibly affect the dollars. The other thing, of course, is if this project in fact generates the revenue we think it will, then the increased revenue will more than offset and diminish what’s owed. Thank you.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Daryl Dolynny

Thank you, Mr. Minister. Mr. Bromley.

Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Bob Bromley

Bob Bromley Weledeh

Thank you, and thanks for the additional details. That was my next question, was to what degree this would be a self-financing project, and I believe I heard the Minister say that the anticipation is that this would be, to some degree, a self-financing project. Maybe I can just get that confirmed. Thank you.