Total

department, not previously authorized, $9.759 million. Agreed?

Page 5, Human Resources, operations expenditures, Human Resource Strategy and Policy, not previously authorized, $1,000. Agreed?

Management and recruitment services, not previously authorized, $1,000. Agreed?

Employee services, not previously authorized, $1,000. Agreed?

Regional operations, not previously authorized, $9,000. Agreed?

Labour relations, not previously authorized, $1,000. Agreed?

Total department, not previously authorized, $13,000.

Page 6, Finance, operations expenditures, deputy minister’s office, not previously authorized, $179,000. Mr. Bromley.

Thank you, Mr. Chairman. I would like to just confirm that under the Housing Corporation we are talking about some additional fuel costs because we went to synthetic natural gas which is the most expensive, as I understand it, of the three gas options, and we had to do that because of the emergency there. I understand that the liquid natural gas is about one-third less expensive, and natural gas itself, again less expensive.

Inuvik has recently chosen the liquid natural gas option so I am anticipating that this is a one-year cost, or at least next year should be less. I would just like to get that confirmed, and at the same time, the Minister has identified earlier that the biomass is a better option yet in the long term. We know that the Housing Corporation is looking at the possibility of biomass, including for the public housing in Inuvik. I am wondering if that is still considered an

option that is being examined, and if so, when we might hear on the results of that examination.

Thank you, Mr. Bromley. Minister Miltenberger.

Thank you, Mr. Chairman. The costs are, of course, predicated on the assumption that the liquid natural gas prices are going to stay within the range that we have budgeted for, so yes, we anticipate that there will be less costs compared to synthetic natural gas compared to diesel. Should the day come when natural gas is available locally that is appropriate for use, then yes there could be another lowering of costs.

We are committed to the biomass piece. Seven hundred thousand dollars was voted in this last budget for Housing to do the work to determine and sort out some of the technical and policy and liability issues in having biomass units in public housing. They are doing that work, and I would anticipate that as they come forward in the fall and the coming months with the business plan process, and we look at the budgets and main estimates in March, the Housing Corporation will be in a position to update the Assembly and committees on the results of their work and the $700,000. Thank you.

Thanks for that response from the Minister. I guess my last point is: We have been hearing from this government that they expect natural gas prices to go up considerably, and I understand that there might be some efficiencies, that we might be able to get liquid natural gas from closer source and ameliorate and mitigate that rising cost, but recognizing that the Minister does not have a crystal ball, what is our vulnerability there and what weight does that play in the decisions to go with a fossil fuel versus renewable energy alternative? Thank you.

If the Member will think back, we started on an emergency basis where the running out of natural gas in Inuvik was declared imminent, that there was a need to minimize the load and pressure on the existing gas reserves. That work was done, recognizing that synthetic natural gas was the short-term emergency option. That work was done. In the meantime, the market in the development of liquid natural gas has proceeded in Canada where that type of resource was available. We recognize at the same time, as we move across to the Northwest Territories with our alternative energy, that there is potential for biomass.

The issue with liquid natural gas, of course, is it’s going to be generating the power in Inuvik come October. The biomass piece where the type of technology that’s readily, I believe, available to have that combined heat and power in Inuvik on such short notice. So we are now into sort of the mid-term, mid-range response to the energy

situation in Inuvik. We’ve invested some money to do the biomass. That work will be done, it is being done and as we look at the broad change potentially or involvement or inclusion of biomass in Inuvik as we have other communities like Norman Wells or Yellowknife or Fort Smith or Hay River, and especially in public housing, we have some technical issues to work out and liability issues. So that work is all underway, as well, in the longer term.

We don’t want to forget, as well, that we’re also looking at wind power at Storm Hills as a site where there is a potential capacity of four to six megawatts. So there are a lot of energy options on the books with Inuvik; we just have to stage and sequence them in a way that makes sure that the community has a safe, secure supply of energy. Thank you.

Thank you, Mr. Minister. Deputy minister’s office, not previously authorized, $179,000.

Office of the comptroller general, not previously authorized, $560,000. Mr. Dolynny.

Thank you, Mr. Chair. I’d like to just spend a second here on the $667,000 entry on this line and it reads, “To provide funding for operational expenditures related to new office spaces for financial shared services in Norman Wells, Hay River, Fort Smith, Fort Simpson and Yellowknife.” If I can get a little bit more explanation as to what is the scope of that amount within that framework description. Thank you.