Just one last question in this regard. Are they seen as a territorial board for egg producing or are they seen as a local micro-board looking after a smaller region? I would just hate to think that somebody expressed interest from the Sahtu to start raising layers and the Hay River-stacked board says no to protect their interest in the market. I guess, to demonstrate public confidence and surety, how do you describe the board in its role at the territorial level? Are they a local microcosm board or are they a territorial board?
Debates of Feb. 19th, 2013
This is page numbers 1937 – 1976 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
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Peter Vician
They represent a Northwest Territories board overseeing the entire territorial egg production arrangements. Thank you.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Daryl Dolynny Range Lake
Thank you, Madam Chair. Before we leave this page of 12-9 on general revenue, I’m just looking for inconsistencies in reporting years and looking at patterns. I notice in the interest earned in the NWT Opportunities Fund in 2011-2012, there was nothing noted. Yet, in 2012-2013, $1.043 million and again in 2013-14, nothing recorded. Can the Minister indicate why the pattern and maybe an explanation as to why we see only the one entry in the 2012-13 Main Estimates.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
David Ramsay Kam Lake
Thank you, Madam Chair. That would be as a result of a one-time exit of interest earned through the NWT Opportunities Fund, but for a more detailed response, we can go to the deputy minister.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Peter Vician
Thank you, Madam Chair. It’s shown as a one-time revenue to the Government of the Northwest Territories. As we spoke previously, revenue earned by the NWT Opportunities Fund is considered separately from the revenues from the GNWT. As part of the decision to invest part of the retained earnings of the NWT Opportunities Fund into economic investment programs for the GNWT, a payment was made by the NWT Opportunities Fund in 2012-13 and that payment is hereby reflected as $1.043 million. That funding was received by the GNWT and shown as revenue in the Department of ITI’s budget, but it’s treated as revenue to the general revenue to the Government of the Northwest Territories. Thank you, Madam Chair.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Daryl Dolynny Range Lake
So just a point of clarification, this $1.040 million here, would this not be considered interest charged to the proponent, let’s say, who had access to these opportunity funds? Thank you.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Peter Vician
No, Madam Chair. This would be treated as strictly revenue for the GNWT. Interest earned by the NWT Opportunities Fund would be reflected in the income statements of the Opportunities Fund which are accounted for independently. They are recorded on the public accounts as a stand-alone entity and, in doing so, they would not show up at that point. The overall revenues would show up as interest earned on that particular financial statement. Thank you, Madam Chair.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Daryl Dolynny Range Lake
I’m still a bit unclear here exactly where the source of this interest, where it’s coming from and why just the one-time insertion in the main estimates. Can you explain again so I can follow the deputy minister? Thank you, Madam Chair.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Peter Vician
The NWT Opportunities Fund was established as an independent entity. Obviously under the direction and management of the Financial Management Board, but in doing so, a separate entity and accounting for as an independent entity on the public accounts in a separate account. Interest earned by that entity with its loan management and portfolio was reported in that income stated. Under the FMB’s direction, any retained earnings would be invested in that fund but at some point in time would have to be remitted or returned to the GNWT under its economic plan. In the case of 2012-13, the $1.040 million was paid to the GNWT from the NWT Opportunities Fund as part of the earnings it received over time from the interest on one particular loan and interest earned by the overall account by deposit. So it really is two different accounts and to reflect the accounting, you would have to refer to the stand-alone financial statements of the NWT Opportunities Fund. Thank you, Madam Chair.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Daryl Dolynny Range Lake
Much clearer, Madam Chair. The point I have under my assumption, there was only one proponent who had access to the Opportunities Fund during the life of this fund and the only way that I can see that that money was derived into this fund, in terms of earnings or revenue, was by means of interest. How can just one year have interest-bearing revenue when this loan was over a number of years? Would this not be reported as multi-year, very similar amounts of interest or straight line interest calculations on the amount borrowed or lent to that one proponent? If I can get clarification why we only see one entry in those three years and the explanation to what about other entries to the interest charges of that loan.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
David Ramsay Kam Lake
Thank you, Madam Chair. Interest was derived from the Opportunities Fund. Yes, there is the one big loan but there are a number of other investments through the Opportunities Fund that would have built up the
interest. This is a portion of that interest that was taken out to be used for the Economic Opportunities Strategy and the Mineral Development Strategy, Madam Chair. Thank you.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Daryl Dolynny Range Lake
Thank you, Madam Chair. Would the Minister characterize this as a balloon payment that came and originated from the Opportunities Fund?
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
David Ramsay Kam Lake
It was a payment when the government decided to roll up the NWT Opportunities Fund. That loan came back and the interest that accrued on it was in the account. So, yes, the answer would be yes.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Bob Bromley Weledeh
Thank you, Madam Chair. Just very quickly, would the Minister know off hand what amount was not transferred to ITI that was gained as interest? Thank you.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
Bob Bromley Weledeh
Was there an internal competition for these dollars? Obviously you had a couple of projects here, economic mineral development strategies. How did that work? Thank you.
Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
David Ramsay Kam Lake
There wasn’t a competition, no. The stipulation for interest earned through the NWT Opportunities Fund was to be earmarked for economic opportunities and pursuits in the territory. We are currently putting together a proposal through FMB to look at what we do with the remaining balance that’s there. As soon as we get that proposal complete, we’d certainly look at taking it to FMB and Members will also get to see that proposal.