This is page numbers 3475 – 3500 of the Hansard for the 17th Assembly, 5th 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 positions.

The House met at 1:31 p.m.



The Speaker

The Speaker Jackie Jacobson

Good afternoon, colleagues. Item 2, budget address. The honourable Minister of Finance, Minister Miltenberger.

Budget Address
Budget Address


Michael Miltenberger

Michael Miltenberger Minister of Finance

Mr. Speaker, in 54 days we will be taking responsibility for the management of our lands, waters and resources. With only 605 days left in the life of the 17th Legislative Assembly, when most governments are taking stock, we are taking on new challenges and embracing new opportunities.

Two years ago this Assembly set out to restore fiscal balance, protect programs and services, and responsibly fund infrastructure investment. We achieved this in the last two budgets by reducing spending growth to half of what it was five years ago. Entering year three of our fiscal plan, we have shown that by working together to manage the spending pressures on programs and services, we can attain our fiscal goals in the face of slow revenue growth.

Thanks to that discipline, we are in a strong fiscal situation to embrace new program responsibilities for lands, waters and resource management being transferred from Canada, invest in the priorities we set two years ago to address housing needs, poverty, addictions and early childhood development, and we have achieved our goal to increase our capital plan by $100 million over two years to invest in strategic infrastructure to grow our economy.

The 2014-15 budget represents that continued cooperative approach in balancing fiscal discipline with the urgent priorities of this Assembly. I would like to thank the Members of the Legislative Assembly for their help in putting this budget together.

These investments represent difficult choices between funding program priorities and funding for

infrastructure. Going forward we will continue to make the disciplined choices to maintain fiscal

sustainability while still providing the quality programs our residents expect and making infrastructure investments to encourage economic growth.

Making disciplined choices about priorities is even more critical as we plan to invest in the infrastructure needed to turn around our fiscal reality through economic growth.

Last decade’s dramatic economic growth has been replaced with below average growth since the recession. The Northwest Territories economy has grown in only two of the past five years and we are projecting modest growth in 2013. However, our growth prospects for 2014 are more positive as increased resource exploration activity, the preconstruction work for a new diamond mine, and construction of the Inuvik to Tuktoyaktuk highway and the Mackenzie Valley fibre link, point to a strengthening in the economic base.

While resident employment and income have remained healthy, the impacts of reduced economic growth are most readily observed in our declining population. In 2013 the natural increase in our population did not keep pace with the number of people leaving for opportunities elsewhere. A stagnant or declining population over the medium term reduces economic growth and our ability to fund programs and services critical to Northerners.

If we are to stem this trend, we must do things differently.

Devolution is a very important step in the right direction. We are entering a new type of relationship with resource companies where decisions formerly made in Ottawa will now be made by the territorial government that is accountable to NWT residents. We are looking forward to the responsibility for the management of NWT lands, waters and resources and we take that responsibility very seriously. We, along with our Aboriginal partners, are creating an Intergovernmental Council to continue to move forward in our management of land and resources. We, as a government, are also committed to creating a strong cooperative partnership with the private sector built on mutual respect and trust to create an environment where the full potential of

the NWT’s many resources are used sustainably to ensure lasting prosperity for NWT residents and communities.

Our economic future rests equally on our ability to develop the infrastructure necessary to support today’s and tomorrow’s industries and protect our environment. Energy infrastructure that lowers costs, improves system reliability and reduces environmental impacts will serve as the backbone of an economic transformation. Communications infrastructure that changes the way we transmit and use information will allow diversification into knowledge-based industries. All-weather roads make it easier for people and goods to travel between communities and reduce costs of doing business. Quality community infrastructure, including housing, is critical to attract the skilled workers we need to strengthen and diversify our economy. Infrastructure that opens new markets turns previously unprofitable ventures into growth opportunities and helps our communities prosper is key to a sustainable economy that balances economic development with respect for our environment.

Our fiscal future is closely linked to our economic prospects and healthy population growth. Our ability to seize economic opportunities as they present themselves means having our fiscal house in order.

Our fiscal strategy is built on our commitment to adhering to our Fiscal Responsibility Policy and achieving the operating surpluses necessary to fund at least half of our planned capital investment and ensuring debt service payments do not exceed 5 percent of total revenues. Within that commitment, we continue to concentrate on our objective of ensuring that the available borrowing authority at the end of the 17th Legislative Assembly

is at least $100 million. This is more important than ever as we have been reminded this year of the downside risks in tax revenues.

Both personal and corporate income tax revenue estimates for 2013-14 are lower than what was forecast in the 2013-14 budget, and beyond 2014-15 both personal and corporate income tax revenue forecasts have been reduced by a combined $30 million.

We are also aware of the risks slow economic growth and a declining population pose for the Territorial Formula Financing Grant, which accounts for an overwhelming majority of our revenues. Over the next five years, our projections for slow NWT population growth and restraint in provincial government spending show that the grant will grow on average 2.3 percent per year, less than half of what we’ve enjoyed over the past five years and less than 1 percent above projected inflation.

The most effective way we can grow our revenues is to grow our economy and our population, put

more money into NWT residents’ pockets, and slow the outflow of residents to other jurisdictions. Therefore, this government is embarking on an initiative to increase the NWT’s population by 2,000 people over the next five years. Some of the areas of concern are the hundreds of vacant jobs in the NWT, the continued high rate of fly-in/fly-out workers, the need to improve the results of the immigrant Nominee Program and the need to get more of our post-secondary students to return home after graduation to live and work. We are already discussing this initiative with other governments and the private sector and look forward to working with all Northerners to make this initiative a success.

At the same time, we continue to deliver training programs for the people who are already here, and we will also be undertaking a review of our adult education and post-secondary programs to ensure that NWT residents have the skills to successfully compete for the jobs that exist now and into the future.

Discipline in managing our operating budget is key to generating the surpluses necessary to fund infrastructure to stimulate economic growth. We have little direct control over our revenues, but through control over expenditure growth we can ensure fiscal sustainability into the future. This strategy has given us the fiscal room to invest with the federal government to build the Inuvik to Tuktoyaktuk highway, for the GNWT to fund the Mackenzie Valley fibre link, and the major Stanton Territorial Hospital renovation, expected to cost $350 million, in addition to the approved capital plan.

Looking forward, however, our ability to take further advantage of cost-shared projects under the new forthcoming Building Canada Plan, including for the benefit of community governments, or private partnership opportunities to advance the Mackenzie Valley Highway, is being challenged by competing pressures. Our fiscal attention is split between addressing our $3 billion infrastructure deficit, and the continuous pressure to expand programs, services, and introduce new initiatives. Reduced revenue means that disciplined choices to continue on the fiscally sustainable path we’ve set for ourselves will not be enough, and we are prepared to borrow responsibly to make strategic infrastructure investments.

We have a record of sound fiscal management as shown by our Aa1 credit rating from Moody’s Investors Service and debt servicing costs below 1 percent of revenues. Our fiscal discipline demonstrates that we’re capable of managing our own financial affairs, and supports our argument that we have the ability to manage debt should the borrowing limit be increased. We are not looking for handouts, but the financial leeway and tools

needed to build our territory. We are in discussions with the federal government to increase the borrowing limit by an additional $1 billion so we can seize opportunities to transform the economic potential of this territory by making critical infrastructure investments such as the proposed transmission grid expansion and the Wrigley-Norman Wells portion of the Mackenzie Valley Highway for the benefit of our residents and industry.

Mr. Speaker, resource revenues have not changed our fiscal strategy because we are starting from the principle that resource revenues from devolution will not be spent on programs and services. We heard overwhelming support for this principle during the budget consultations we held last fall.

Our current fiscal plan is based on 5 percent of resource revenues flowing to the Heritage Fund so that there will be enough remaining resource revenues to make a meaningful investment to address the infrastructure deficit in the immediate term. Current and future generations can equally enjoy the use of roads, hospitals and energy infrastructure as well as the economic benefits that flow from a growing but sustainable NWT economy.

Should this Assembly choose to take a different approach, we will have to change the fiscal strategy, which will mean reducing our capital plan, modifying programs and services, and preventing our full participation in infrastructure programs to grow our economy such as Corridors for Canada III under the forthcoming Building Canada Plan. We must also remain nimble in our fiscal planning as resource revenue forecasts are very sensitive to commodity price swings and operational decisions outside our control.

Mr. Speaker, the biggest highlight of our $1.612 billion budget is the $59 million to administer our new land, water and resource management programs and services. This will be funded through a $67 million increase in the gross expenditure base in the Territorial Formula Financing Grant, and will grow annually at the same rate. After adjustments, we have about $9 million in flexibility to address unanticipated expenditures associated with implementing devolution and pressures associated with economic growth.

With our new responsibilities come new revenues. Starting 2014-15, we will collect NWT resource revenues and have included an estimate of $120 million in gross resource revenues in this budget. However, half of the 2014-15 gross revenues will be offset against future Territorial Formula Financing Grants and we will share 25 percent of the resulting net fiscal benefit with Aboriginal governments.

For budgeting purposes we have included the $15 million Aboriginal government share of the net fiscal benefit in this budget, but the actual amount will be

determined in late 2015 when actual 2014-15 resource revenues are collected and the net fiscal benefit for the year is determined.

Devolution stands out as the largest single reason for the $146 million, or 10 percent increase in expenditures in this budget, but we have also chosen to make $27 million in new investments in healthy and educated people and to expand economic opportunities. The remaining 3 percent of the growth in spending includes $54 million to address increased salary costs and other forced growth pressures for existing programs and $24 million in other adjustments and amortization, partially offset by $34 million in sunsets.

These expenditures will be funded through a total of $1.846 billion in revenues, leaving an operating surplus of $200 million after infrastructure contributions and deferred maintenance are considered. Consistent with our Fiscal Responsibility Policy, we will use the surplus to fund the $223 million capital investment approved by this Assembly for 2014-15. The shortfall will increase our short-term borrowing to $236 million and bring total borrowing to $658 million by the end of 2014-15, leaving $142 million in borrowing room.

We remain committed to keeping a stable tax system. While we continue to index property taxes and fees to inflation where practical, this budget does not introduce any new taxes.

If we exclude the revenue increases from devolution, other revenues are forecast to increase 2.8 percent in 2014-15 from the 2013-14 Main Estimates as modest increases in transfers from the federal government are offset almost entirely by a decline in income tax revenues.

Despite declining tax revenue growth, increasing the tax burden on individuals or businesses would not be fiscally prudent. Our tax bases are too small to generate the revenues we need to deliver comparable programs and services to the provinces and we rely on federal transfers for three-quarters of our revenues. These federal transfers are partly determined by our population growth, which means the risk that tax increases may cause a population decline outweigh the potential benefit of more own-source revenues. We are in competition with other jurisdictions for investment and human capital. The most direct path to grow tax revenues is to increase the tax base by fostering sustainable economic growth, growing our population and investing in critical economic infrastructure. This is the path we will continue to follow.

Mr. Speaker, in addition to reflecting the assumption of new responsibilities for lands, waters and resources, this budget includes investments in strategies to tackle our most intractable issues of poverty, addictions, early childhood development and slow economic growth. By taking charge of managing our resources and directly addressing

issues that have a stranglehold on the potential of this territory, we move closer to achieving this Assembly’s vision of strong individuals, families and communities sharing the benefits and responsibilities of a unified, environmentally sustainable and prosperous Northwest Territories.

Gaining control of resource management has been a goal of this territory for decades, and this budget reflects the financial resources necessary to undertake these new responsibilities and duties.

In total, we have allocated $59 million to undertake the new responsibilities and duties under the Devolution Agreement on April 1, 2014. We have budgeted prudently, leaving fiscal flexibility to fund any additional, and as yet unanticipated, activities necessary to deliver our new Resource Management Program responsibilities. The new funds include $27 million for a new Lands department to support, manage and administer the sustainable use of public land in the NWT and $32 million to fund expanded mandates and responsibilities of existing departments. The Department of Environment and Natural Resources will have an additional $14 million to manage water resources, contaminated sites and remediation, conservation planning and cumulative impact monitoring. The budget for the Department of Industry, Tourism and Investment will increase by $13 million to deliver program responsibilities for petroleum and mineral resource exploration, development and rights, administration of the royalty regime, and related Aboriginal consultation and NWT regulatory system guidance. The remaining funding is allocated to central agencies to support the new responsibilities for handling assets and additional administration.

This program transfer is the last major transfer of responsibility to the GNWT. We have highly skilled and effective teams with experience devolving programs, who have been fully engaged with their federal counterparts to ensure that goal of a successful and seamless transition on April 1st is

achieved. There will be no dramatic changes coming in the administration of land, rights in respect of water, and resources, other than the GNWT will be responsible, not Ottawa. We are committed to creating a transparent and stable program for land, water and resource management to enable environmentally sustainable economic development.

Mr. Speaker, this budget continues to support our most vulnerable populations: children, those living in poverty and those suffering from mental health and addictions issues. Investments targeting these vulnerable groups will help us achieve our goal of healthy people free from poverty.

Beginning with the youngest ones, who depend on the right supports in their first years to set them on a path for a healthy future, this government will be

implementing junior kindergarten for four-year-olds. Research shows that a child’s level of development at the age of five can predict the child’s academic future. Unfortunately, over one-third of NWT children start school already significantly behind in their overall health and development. Creating a junior kindergarten at no cost to families will put our resources where they will have the greatest impact. Beginning with a reallocation of $1.8 million in 2014-15, junior kindergarten will be implemented in the smallest NWT communities where the greatest need has been identified. The goal is to have junior kindergarten available in all communities within three years at an ongoing cost of $7.2 million.

In addition to this transformative step, we are devoting $2 million in new funding to initiatives to support other aspects of the Early Childhood Development Framework. Of that, $511,000 will increase the number of qualified early education and care professionals in licensed programs through wage and training incentives, and $1.5 million is provided to improve outreach to expectant mothers, strengthen regional Healthy Family programs and raise awareness on the importance of early childhood.

We are also continuing our efforts to expand midwifery programs, including the hiring of two full-time midwives in Hay River. This year’s $515,000 investment is the second year of a multi-year plan to expand service options to expectant mothers, bringing our total investment to nearly $1 million.

Taking action to respond to the Anti-Poverty Strategic Framework is a priority for this Legislative Assembly and we have added $2.6 million in new funding for actions to support this framework. This funding includes $1 million to provide healthy and nutritious food to children and youth through early childhood, school and after-school programs, $500,000 to fund non-governmental organizations and Aboriginal governments for projects that support the priorities in the framework, and $680,000 for transitional housing units in four non-market communities to support hard to house residents unable to access other housing options.

We are addressing the recommendations of the Minister’s Forum on Addictions and Community Wellness with $2.6 million in new funding above the $4 million in direct spending already included in this budget to support mental health and address addictions issues. This includes $900,000 to establish community-based on-the-land healing programs that are rooted in Aboriginal culture and tradition and build on best practices for treating addictions. The mental health funding also includes $500,000 for a Children and Youth Resiliency Program that supports community programming aimed at mental and physical development for children and youth. Our prevention and early intervention programs are designed to promote

wellness and healing, and to reduce the need for treatment programs in the longer run.

Finally, $305,000 will be invested in developing and implementing a specialized Wellness Court that would benefit clients who come into contact with the justice system and are suffering from issues related to mental health, addictions, and cognitive impairments. Offering an innovative approach to wellness and reducing contact with the justice system supports this Assembly’s goal of sustainable, vibrant and safe communities. In order to support the success of such a court, this budget also invests $895,000 to establish a collaborative case management pilot program. Breaking down barriers between departments and agencies, and integrating case management for common clients with mental health and addictions needs is essential to improving the experience of those clients when interacting with various social programs and managing common outcomes.

Mr. Speaker, in our first budget dialogue a year and a half ago, NWT residents made it clear that they wanted us to improve outcomes by doing things better and more efficiently within our normal programming. We were able to fund junior kindergarten through savings in other school programs and we are responding with investments in this budget to improve program delivery for our residents while, at the same time, making program delivery more efficient and cost effective.

This budget invests $790,000 to continue the implementation of the new med-response service, which will provide community health care practitioners with remote emergency clinical support, and will triage and coordinate NWT air ambulance services. Another $1.36 million will allow health authorities to tap into shared information systems expertise at the Technology Service Centre, and $1.15 million will establish an Information Systems Service Centre to consolidate support for enterprise-wide health and social services application systems.

Nearly $1 million will be used to complete the Financial Shared Services implementation, an initiative aimed at improving the GNWT’s service orientation, providing broader career options for regional finance staff and improving organizational efficiency and timeliness. Work also continues on the establishment of a government-wide Procurement Shared Services Centre on April 1, 2014, which will standardize practices and processes and allow departments to focus on program delivery by merging the support functions specializing in the management of procurement. These investments continue the work of the last Assembly to refocus government to improve the effectiveness and efficiency of government operations.

Mr. Speaker, this government continues to press forward on its goal to increase employment opportunities where they are most needed by decentralizing GNWT positions. We started phase 1 in 2013-14 when we decentralized 18 positions outside Yellowknife. Phase 2 starts in 2014-15, as we build our decentralization objectives into our post-devolution organization. We are placing 52 new positions created to deliver our new land, water and resource management programs in the regions and an additional 50 positions to administer other programs will be placed outside of Yellowknife. Phase 3 is also starting this year and is to develop a longer-term plan that considers existing obligations, regional capacity and vacancies, and the impact of government spending. Bringing government closer to the people it serves not only improves service delivery but also helps build a better understanding of programming needs.

The GNWT is also working to build capacity in the regions to prepare for decentralization. This includes a planning study for office space to address potential office space shortfalls as well as investments in housing stock. The lack of adequate housing options in non-market communities has long been a concern, and our efforts to move more government positions into these communities are creating an even greater demand for housing. We are spending $7.5 million in 2014-15 as the first year of a three-year $22.6 million investment to add 100 units for rent at market rates in smaller NWT communities and up to 69 additional units through partnerships with communities or private developers.

Service delivery in smaller communities often suffers when we can’t recruit or keep the right people because of a lack of housing options, and adding new housing will improve program delivery and may save money in the long run. This investment is above the $5 million we are already adding to the NWT Housing Corporation’s 2014-15 capital budget for housing, which is part of the $10 million we will invest over the next two years to improve the quality of our public housing stock.

We are using key initiatives like the GNWT Workforce Planning Strategy and the Regional Recruitment Program to address barriers to employment in communities and ensure that our decentralization efforts are successful. The Regional Recruitment Program helps departments, boards and agencies recruit NWT residents to fill regional job vacancies and helps placements be successful through up to one year of on-the-job training.

Mr. Speaker, economic prosperity not only reduces social program pressures by engaging people in productive employment and healthy choices but determines our ability to fund social programs and services. If we do not attend to our slow economic

growth now, we will jeopardize our ability to fund programs and services our residents rely on in the future.

This government is partnering with NWT residents and businesses to expand private sector economic opportunities. Over the past year we have undertaken several collaborative efforts to understand how we can best support sustainable mineral development, expand economic opportunities in other sectors, and leverage alternative energy to reduce our dependence on fossil fuels and lower the cost of living. This budget invests in the priorities that emerged from those efforts.

We are devoting $1.9 million in new funding in this budget to address the recommended actions in the Mineral Development Strategy. This funding includes $655,000 to provide better and more comprehensive geoscience information and research, $400,000 for a NWT mining incentive program aimed at attracting mineral exploration, and $200,000 to market the NWT as an attractive place for mineral exploration and development investment. Work will also be undertaken to investigate ways to improve access to the mineral-rich Slave Geologic Province. Investments will be made in mining workforce development, including the delivery of geoscience field assistant training and linking NWT businesses with supply opportunities for the mining industry.

We continue to invest to ensure the Sahtu oil and gas exploration takes place in an environmentally sustainable manner and to the benefit of local residents and businesses. In addition to the $1.2 million announced in last year’s budget to support NWT residents in capturing benefits and managing impacts, we are adding $742,000 in 2014-15. Our response includes a new environmental health officer, enhanced assessment, monitoring and mitigation of environmental impacts, and hiring highway maintenance supervisors and transport officers to respond to higher traffic volumes on the Mackenzie Valley winter road with additional monitoring and enforcement resources.

Our work continues to diversify our economy away from dependence on non-renewable resources through $1.2 million in new funding to initiatives supporting the Economic Opportunities Strategy. This work will include the development of an agriculture strategy and regional economic plans. Direct support will be provided to small businesses outside regional centres to attract critical human resources through a pilot rebate program for the film industry and increased support to the tourism industry, including the establishment of a convention bureau; 2014-15 will also be the first year of a two-year $1.7 million investment to support the commercial fishing industry in

capitalizing on domestic commercial market demand.

However, the long-term health and growth of local industries and business cannot be achieved through piecemeal approaches, but requires a fundamental change in the economic equation they are facing. In a territory of more than one million square kilometres, infrastructure is the best mechanism by which that equation can be changed. Infrastructure opens markets, lowers costs and improves productivity in all sectors.

This year, this government took the first step in advancing one of the most important infrastructure projects of our time: an all-weather highway down the Mackenzie Valley. The first section, the Inuvik to Tuktoyaktuk highway, will connect Canada from sea to sea to sea. This partnership with the federal government provides a much needed immediate economic stimulus to the region, but also the potential for longer-term economic growth.

Our fiscal strategy plans to leverage more federal partnership opportunities in infrastructure investment with the new Building Canada Plan.

We also look forward to private partnership opportunities to connect Norman Wells to Wrigley, should the Sahtu oil play prove viable. The vision of a highway that spans the entire Mackenzie Valley will not be accomplished overnight, but we are doing the regulatory legwork now to be ready to take advantage of the opportunity to advance that vision.

The right type of infrastructure investment can also spark diversification into new industries, transforming challenges, such as geography, into economic opportunities. Capitalizing on Inuvik’s location by building the Mackenzie Valley fibre link will transform the Inuvik Satellite Station Facility into a world-class satellite receiving station. Reliable high-speed Internet in our communities will transform the way services are delivered and expand the breadth of opportunities available to residents, from training to small business ventures. The Mackenzie Valley fibre link is on target to begin construction in the winter of 2015, with completion expected in the summer of 2016.

The NWT Power Corporation is commissioning a new LNG facility in Inuvik, the northernmost LNG installation in North America and the first of its kind in northern Canada, saving money and benefitting the environment. We anticipate further LNG use in all off-grid communities with a permanent road connection and in areas potentially requiring significant new generation capacity like the North Slave.

This year we will also complete the business case for an integrated power transmission grid between the North Slave and South Slave hydro systems and the Canadian grid. An NWT grid will stabilize

costs and services. It will help us maximize the benefits of existing hydroelectric generation assets and reduce our reliance on imported diesel and its associated greenhouse gas emissions. This is a cornerstone of our 20-year vision for electricity supply which, in combination with the Energy Plan, supports a brighter economic and environmental future for our territory.

The sustainability of our environment is inseparable from our economic sustainability. The air, land, water and wildlife are the riches on which our economy is built.

Mr. Speaker, this budget devotes $5.4 million to support Energy Plan initiatives that will reduce greenhouse gas emissions by lowering our fossil fuel use, including $1.4 million to finish the business plan and design for the proposed 65 km transmission line connecting Whati to the Snare hydro system. Funding will be provided for a broad range of alternative energy projects, including $450,000 for biomass, $625,000 for solar, $100,000 for wind, and $700,000 to continue the NWT Energy Corporation’s pursuit of renewable energy options. Support will also be given directly to communities, businesses and residents in support of their efforts to implement energy efficiency measures and alternative energy projects such as small scale biomass heating.

We continue to invest in lowering utility costs in public assets, including $700,000 for energy efficiency improvements in public housing units. The GNWT is already reaping the benefits of past energy conservation investments under its Capital Asset Retrofit Fund program and renewable energy projects. In 2014-15 realized savings of $832,000 in utility costs generated from previously completed energy conservation and renewable energy measures, mainly biomass conversions, will be reinvested in the program to undertake new projects that will help manage our future energy consumption and further reduce our dependence on fossil fuels. As of 2011-12 investments in our building infrastructure have helped us re-profile nearly $1.5 million in annual operating costs to support future investments through the Capital Asset Retrofit program.

The NWT continues to lead in the area of biomass development. We initially focused on building a market. Now we are lending support to forest management agreements with Aboriginal governments. With a committed northern business, we will see the building of the biomass industry in the NWT, using northern resources and labour, in partnership with Aboriginal governments. This industry will meet northern demand as well as the growing export market. Construction is expected to start this year.

Work is also continuing to implement the Water Stewardship Strategy to protect this fundamental

component of our cultural, spiritual, economic and social well-being. The management of waters is a shared responsibility, and transboundary agreements with upstream jurisdictions are critical in helping ensure the waters of the NWT remain clean, abundant and productive. This budget invests $655,000 to support transboundary water negotiations in support of the NWT Water Stewardship Strategy Action Plan. Expansion of community-based water monitoring programs and development of a practical community-based cumulative effects monitoring framework will continue.

The GNWT is also enhancing efforts at ensuring the NWT boreal caribou population is self-sustaining and its critical habitat is protected. This budget includes an additional $425,000 in ongoing funding for boreal caribou monitoring and development of range management plans. Implementation of the NWT Barren-ground Caribou Management Strategy includes the deployment of satellite collars in preparation for population surveys of all barren-ground caribou herds in 2015, support for a multi-party effort to develop a range plan for the Bathurst herd as well as the development of a long-term mechanism to manage the herd.

In looking ahead it is useful to imagine the next generation looking back at what we’ve done today. Will they say that we have provided them with good educations and created the conditions through infrastructure and skills training to support a robust and diversified economy while protecting our environment?

We have protected our core programs and services and at the same time enhanced those that needed more resources, especially those that help improve the lives of NWT residents. At the same time, we met the challenge of managing expenditure growth so that we have the resources to invest in infrastructure and take advantage of federal cost-shared infrastructure programs such as the forthcoming Building Canada Plan.

The scale of infrastructure needed to grow the economy cannot be funded through operating surpluses alone and we are prepared to borrow for strategic infrastructure. We are working with the federal government to enable that investment through an increase to the federally-imposed borrowing limit.

This budget made good on the promise made two years ago that if we made the disciplined choices to manage expenditure pressures, we would be able to increase our infrastructure investments in years three and four of our plan. We succeeded despite a decrease in forecasted revenues. That success gives us renewed strength to stick to our fiscal sustainability plan and continue to meet the challenge of competing spending priorities.

Our success is only guaranteed by our commitment to our fiscal strategy to generate operating surpluses to fund at least half of our infrastructure, and to our fiscal discipline as we maintain a $100 million cushion in our borrowing room. By sticking to our fiscal plan, we keep borrowing costs down through a well-earned Aa1 credit rating. This budget demonstrates our continued commitment to fiscal discipline and fiscal sustainability.

Mr. Speaker, this budget represents the cooperative effort of this Legislative Assembly to make the disciplined choices about what program priorities to fund while still leaving enough operating surpluses to take advantage of federal cost-shared funds to start making a dent in our infrastructure deficit and grow our economy. As we take over responsibility for the management of our lands, waters and resources, we have a renewed sense of what we can achieve together to sustainably grow our economy, to provide good jobs for our residents and to protect our environment. Through this budget we are collectively embracing these new challenges and opportunities. Thank you.


Budget Address
Budget Address

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Miltenberger. Before we continue I’d like to welcome our Commissioner. Honourable George L. Tuccaro is in the House with us today.


Chief Superintendent of the “G” Division, welcome to the House. Wade Blake, welcome.


Our first lady, I guess, of the Northwest Territories, of our Premier, Mrs. Melody McLeod, welcome to the House.


All community leaders are welcome.

We’re going to call a 30-minute break for a reception in the Great Hall and for us to visit a little bit.


Budget Address
Budget Address

The Speaker

The Speaker Jackie Jacobson

Good afternoon, colleagues. Item 3, Ministers’ statements. Premier McLeod.

Minister's Statement 8-17(5): Ministerial Travel Reports
Ministers’ Statements

Bob McLeod

Bob McLeod Yellowknife South

Mr. Speaker, I would like to take this opportunity to review with Members the history, intent and features of the ministerial travel reports.

The ministerial travel report summarizes each trip undertaken by a Minister with respect to his or her particular portfolios. The reports itemize the

destination, purpose, dates, method of travel and the total costs of any ministerial travel over $250 charged to the Government of the Northwest Territories.

For the purposes of these reports, travel costs include the Minister’s transportation costs and associated meals and accommodations. When Regular Members of the Legislative Assembly are invited to accompany a Minister, their expenses are not currently included.

The ministerial travel reports also report on any air charters specific to ministerial travel, but do not report on departmental air charters involving several passengers on duty travel which may include, but are not dependent upon, a Minister’s participation.

Mr. Speaker, the ministerial travel reports are published by the Department of Executive on a quarterly basis and are posted to the government’s website. There is no legislative or policy-based requirement to post these reports, but they have been posted, within six months of the end of each quarter, for the past decade. Currently, there are 38 individual travel reports posted to the website. These reports cover the period from January 1, 2004, to June 30, 2013. The report for the quarter ending September 2013 is scheduled to be posted by the 14th of this month.

The reports are intended to provide the interested public with information sufficient to make an informed request for more detailed information should any resident feel more detailed information is required. Over the last 10 years, the ministerial travel reports have led to several requests under our Access to Information and Protection of Privacy Act for more specific records. Mr. Speaker, I am pleased to report that each of those requests received positive responses which satisfied both the individual applicants and the requirement of our legislation. This is testament to the efficacy and value of the ministerial travel reports. Thank you, Mr. Speaker.

Minister's Statement 8-17(5): Ministerial Travel Reports
Ministers’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. McLeod. Item 4, Members’ statements. The honourable Member for Range Lake, Mr. Dolynny.

Student Mathematics Achievement Testing
Members’ Statements

Daryl Dolynny

Daryl Dolynny Range Lake

Thank you, Mr. Speaker. Canada’s recent decline on the global stage on math performance has sent a shiver of anxiety to every parent. The first step is to try to understand the issues both nationally and here at home.

The Program for International Student Assessment, known as PISA, recently released a damaging

alarm call where it showed our Canadian 15-year-olds have slipped in global rankings in math competency; in fact, Canada’s downward spiral from sixth to 13th among participating countries

since 2000. This, ironically, coincides with the adoption of Discovery Learning.

Now, the NWT, Yukon and Nunavut do not participate in PISA rankings as our population is not large enough to acquire meaningful data to match provincial or international benchmarks. We do, however, use the Alberta achievement tests, or AATs, to monitor student performance in math.

Historically, our Grade 9 AAT performance in maths has been a bit of a concern. In 2012 only 34.1 percent of our NWT students achieved acceptable standards on this test. I know, Mr. Speaker, deplorable.

However, we all know the years of poor AATs have attributed directly to the recent development of the Education Renewal and Innovation Initiative that is currently being rolled out by the department.

So why am I still concerned? For starters, there is still the ongoing debate on whether Discovery Learning is really effective or that going back to traditional basics is the key.

Quebec, for example, has kept to a more traditional math teaching and has remained steadfast in international rankings and was also our nation’s top scorer. Alberta, where our NWT curriculum is mostly based, has been petitioned by many parents to return to basic math skills with their government defending their position.

So what does this mean for the NWT? Many have attended some of the early presentations of the ERI Initiative, coming away with probably more questions than answers. Has the department clearly demonstrated and convinced all stakeholders the pathway of our students’ success is solely depending on this ERI Initiative, or do people still feel a bit fuzzy on this program? Firstly, I think the jury is still out on this one.

So, despite the overwhelming calls from parents nationally to dial back so-called discovery math, obviously this government is paddling hard to get our students the best math education out there, but I have to honestly question the almost zero testing indicated during this ERI transition and with no vision of tying our territory to some form of national grading strategy, the department might be up a creek without a paddle if they don’t clearly find this path for this math debacle. Thank you.

Student Mathematics Achievement Testing
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Dolynny. The Member for Deh Cho, Mr. Nadli.

Accomplishments Of Ms. Kathleen Graham
Members’ Statements

February 5th, 2014

Michael Nadli

Michael Nadli Deh Cho

Thank you, Mr. Speaker. According to National Chief Shaun Atleo, Kathleen Graham’s mother did an awesome job. As chancellor of Vancouver Island University, the chief met with Kathleen and her family following last Friday’s convocation when she received her Master’s degree in business administration.

Kathleen is an inspiration for all Northerners, but especially for Aboriginal youth.

[Translation] Kathleen Graham grew up in Hay River and her grandmother was Anne Buggins, who taught them how to bead and do handicraft work in Dene. She often used moosehide to do craftwork and she also was taught to do fire ceremonies. She was also taught how to live traditionally. She also said they came from Hay River and when she went to university, her way of life changed. [Translation ends]

She was always returning, out of sheer determination, to get her diploma. Indeed, perseverance is one of Kathleen’s signature traits, rounding out her friendly personality and Dene values of living a balanced and spiritual life.

Another hard-won achievement was her bachelor’s degree in environmental studies from the University of Manitoba. Her latest success, the MBA, allowed her to befriend fellow students from India and Africa and the Middle East. “That’s exciting,” she said. “Having those contacts all over the world really opens doors.”

The MBA program was completed in a compressed 12-month format, so she basically lived at the library last year. “They should have charged me rent,” Kathleen jokes. She is quick to credit her husband and mother who cared for her four-year-old son in the evenings, freeing her up to write and pour over books.

What do these achievements mean to other northern peers? According to Kathleen, “I know a few girls who went back to university when they found out I was doing my MBA. I really hope other kids will get connected to my story and get inspired by it.”

Based in Fort Smith, Kathleen now teaches in the business program at Aurora College. Her courses include micro and macroeconomics and community economic development.

Kathleen Graham is a bright light in the North. On behalf of my constituents, I want to congratulate her for these tremendous accomplishments. Mahsi.

Accomplishments Of Ms. Kathleen Graham
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

The Member for Hay River North, Mr. Bouchard.

Reflections On Budget Address
Members’ Statements

Robert Bouchard

Robert Bouchard Hay River North

Thank you, Mr. Speaker. As I started yesterday, I indicated that we were in an exciting time here, and the Minister of Finance’s presentation of the budget today is no exception to that excitement. We’re going to show a $200 million surplus. He’s indicated that there’s a bunch of indications for Hay River’s opportunity: midwifery, obviously the biomass industry is of great interest in the Hay River area and the South Slave, and also investment in the fishing industry.

Devolution brings a lot of excitement. We’re seeing $59 million for new employees, revenue of $27 million. Everything should be bright and shiny.

Over the next few weeks, we’ll be deliberating and discussing issues that we are having difficulties with. One of the biggest issues is the Heritage Fund. We’re getting resource revenue sharing, the budget indicates we’re putting 5 percent of that away, we’re saving for the future. But I and my colleagues believe that we should be investing more; 25 percent is kind of the indicator.

We need to be putting money away for the future generations. These resources are non-renewable. They are things that once they’re gone we won’t have in the future. I know there’s a lot of development potential, but we still need to be putting away money for the future, and 5 percent is just not enough.

What are we going to do? We’re down $30 million in revenue. How are we going to generate that revenue? How are we going to get people back in the Northwest Territories? How are we going to deal with the fly-in/fly-out situation and students that are being paid by our Education but yet decide to stay in the South?

People in the North are looking for our guidance in several different areas: education, early childhood development, health and wellness, legal aid, translations for legal, and the film industry. I support development and the growing of our economy. One billion dollars more debt, though, how are we going to carry that forward? How are we going to carry that debt?

We need to be careful of all the projects that we’re removing or all we’re doing with that $1 billion…

I seek unanimous consent to conclude my statement.

---Unanimous consent granted

Reflections On Budget Address
Members’ Statements

Robert Bouchard

Robert Bouchard Hay River North

Our Minister of Finance has been travelling through the Northwest Territories and he’s indicated to the public that with that resource revenue sharing money we’re going to put some money into the Heritage Fund, we’re going to pay down debt. But, really, we’re not paying down

debt. We’re looking at taking on another billion dollars’ worth of debt.

The general public supported the concept of putting money away, and I think the way we put money away is through our Heritage Fund, and we should be putting money away at 25 percent per year, not 5 percent.

Reflections On Budget Address
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

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

Onsite Daycare Facilities At Aurora College Campuses
Members’ Statements

Wendy Bisaro

Wendy Bisaro Frame Lake

Thank you, Mr. Speaker. Today I want to address the lack of daycare facilities at our Aurora College campuses. In the NWT we have Aurora College and the government is rightly proud of providing post-secondary education to our residents so they can achieve a higher education in their home territory. NWT residents can, and do, enrol in the many Aurora College programs, and with hard work and effort they can graduate successfully. That is unless they are parents and need child care.

None of our three Aurora College campuses has daycare on site. Students who have little or no family support in their college community must rely on existing daycare services in that community, and the well-documented reality is that there is a definite lack of daycare in our three college communities. Students with children must bear an extra financial burden to complete their schooling.

Women are the majority of students in post-secondary settings, and they also make up a larger proportion of student parents. Those students who can’t make arrangements with family are forced to take on jobs to pay for outside daycare, cutting into their study time and threatening their chances of graduating. Some students resort to bringing their children to class, a distraction for other students and not an optimal learning environment for the mom or the dad.

Yes, Education, Culture and Employment has a Childcare Subsidy Program for students, but from what I hear it is not easily accessible and funding levels fall far short of actual child care costs. Aurora College administration should be looking at other post-secondary institutions that run daycares on campus and use them as a model to develop its own service. They won’t have to look far.

Nakwaye Ku is a non-profit child care centre for children of students, staff and the general public, located at the Yukon College Ayamdigut Campus. It serves a dual purpose as a daycare and as a practicum setting for students in the Early Childhood Development program. ECD students can observe, evaluate and teach real subjects in a real ECD setting.

Another example at Nunatta Campus in Iqaluit: 12 spaces are reserved for the Kids on the Beach Daycare for children of Nunavut Arctic College students. The Rankin Inlet campus daycare has space for 21.

I seek unanimous consent to conclude my statement.

---Unanimous consent granted

Onsite Daycare Facilities At Aurora College Campuses
Members’ Statements

Wendy Bisaro

Wendy Bisaro Frame Lake

This government has a stated goal to increase our focus on early childhood development programming. We have a brand new revised early childhood framework. Daycare centres at our college campuses would fit nicely into actions coming from that framework. Is it doable? Absolutely. Will it happen? I challenge the Aurora College to make it so. Thank you.

Onsite Daycare Facilities At Aurora College Campuses
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Ms. Bisaro. Member for Nahendeh, Mr. Menicoche.

Infrastructure Investments In The Deh Cho Region
Members’ Statements

Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Thank you very much, Mr. Speaker. While I support many of the initiatives in the 2014-15 budget, I remain very concerned about the funding to schools and highways in my region. I recognize the hard work involved in bringing forward a budget that meets residents’ expectations within challenging constraints and competing priorities; however, I cannot overemphasize some of the real needs that continue to put pressure on program delivery in communities within the Nahendeh riding.

I was disappointed that my favorite two words, Highway 7, did not make it in the budget speech. Highway No. 7 did receive some support in the capital infrastructure budget that was passed late last year and I would like to remind the House, and especially my Cabinet colleagues, that important work on Highway No. 7 needs to take a front seat as we consider our spending priorities. When words are mentioned in the budget speech, I feel then it’s a real priority.

Even in the Northwest Territories, the days are getting longer and the groundhog detects an early spring. It is never too soon to think about maintenance on Highway No. 7 and begin work as soon as we can. We must ensure safe and reliable transportation throughout the region and to prepare for the coming thaw.

Leading up to this budget, Members spent a lot of time discussing social envelope initiatives and changes to programming in education. Some of the proposed changes may be good for the youth and their families, but the community of Trout Lake still does not even have a proper school.

Expected changes with education reform cannot make up for lack of appropriate facilities that allow effective delivery of these programs, no matter how good they are. Without real schools that meet community needs, we will continue to struggle to recruit and retain teachers and compromise students’ success.

Putting together this budget on the eve of devolution is also an ambitious task. In order to move ahead on additional programs and services, I insist that Nahendeh receive adequate facilities, safe and reliable transportation as well as quality buildings for our schools. Mahsi cho.

Infrastructure Investments In The Deh Cho Region
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Menicoche. Member for Hay River South, Mrs. Groenewegen.

Reflections On Budget Address
Members’ Statements

Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. I would like to commend the government on this – yet another – budget address here today for the fiscal year 2014-2015.

We have many challenges in the Northwest Territories and we also have many opportunities, so it becomes the task of this government and our Finance Minister to balance all of those interests and try to do the best we can to manage our territory.

I think of a few things that are mentioned in here today. I think the initiative to try to increase the population of the Northwest Territories with a set target and a set goal within a certain time frame is a very good idea. We can talk about infrastructure deficit and all the things that we need to build, but let me tell you that if we do not have children in our schools, if we do not have people living in our communities, there is going to be little need for more infrastructure. So, it becomes a catch-22 sometimes. Does more infrastructure attract more people, or what comes first, the people or the infrastructure?

We have a difficult and challenging course ahead of us. As I said yesterday, there’s a hole in the bucket; it’s the people that are leaving the Northwest Territories. Like I said, I will have numerous statements throughout this sitting of the Legislature on how – I want to phrase it, I want to coin it in this way – not what is the government doing wrong, how can we do it better.

Of course, we do employ our students and our local people. You talk to some people in industry, they will tell you that every able-bodied, sober, sound-minded person in the Northwest Territories is working at this time. I disagree with that. I think there is lots of room in our public service for people who want to advance, who want to enhance their training and who want to get into private sector employment and who want to get into public sector

employment. There are lots of people out there and I think that we can do better as a government. That’s going to be my motto as we look at all of these things over the next six weeks. What can we as a government do better? What do we have the resources to do and how can we affect change in areas where we can improve circumstances?

Speaking overall and generally, again I would just like to commend the government for this balanced approach to our fiscal forecast for the upcoming year and I look forward to working with them on the initiatives laid out. Thank you.

Reflections On Budget Address
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Mrs. Groenewegen. Member for Inuvik Boot Lake, Mr. Moses.

Educational Investments
Members’ Statements

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Mr. Speaker. I, too, would like to commend the government and their work towards this ’14-15 budget and the budget address that was given to us earlier today. Obviously, we do have some challenges in the Northwest Territories that we have seen since the beginning of this government.

Looking at the budget address and listening very closely to what was in there and what wasn’t in there, where we need to put some focus, one area that kind of caught my attention is one area where the Minister did mention that we must do things differently in our ability to fund programs and services that are critical to Northerners, but that’s a statement based on the declining population that’s been mentioned here that reduces our economic growth in the Northwest Territories.

In the budget address, one thing I was really looking forward to – speaking of doing things differently – was some information, some commitments to education. One statement that was in here was over one-third of our children are not healthy or developmentally ready to go into the school system. That’s an issue, because in the future that means that’s going to affect one of our goals, which is healthy, educated people for the Northwest Territories, a goal of the 17th Legislative

Assembly. Those are, on average, the stats for the Northwest Territories. Those stats get higher as you get into the smaller communities.

One initiative that can address those is the e-learning that has been brought up in this House many times. One thing that was not brought up in the budget address that is of concern to me are any funds or commitments made to all the hard work and effort that staff, organizations, committee and the department has gone for the Education Renewal Initiative. So, where is all the funding that’s going to go into this should this document be prepared for the ’14-15 education school year?

We have to do things differently. The Beaufort-Delta has done a great job in getting higher education and higher learning into the small communities in the Beaufort-Delta region, yet I didn’t see any commitment or funding for that program in here.

There was a really good news article in the Inuvik Drum today that talked about the Sunchild E-Learning Initiative that provided higher education and got older adults educated and graduated. I was a little disappointed not seeing that in the budget, and hopefully in the future we can see something coming down the pipes, maybe through a supplementary appropriation. Thank you, Mr. Speaker.

Educational Investments
Members’ Statements

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Moses. Member for Yellowknife Centre, Mr. Hawkins.

Reflections On Budget Address
Members’ Statements

Robert Hawkins

Robert Hawkins Yellowknife Centre

Mr. Speaker, it is once again budget day in the NWT, or I’ve started to see it as it’s Cabinet day once again, a day once a year where all of Cabinet’s dreams are realized and Members’ requests are simply daunted off for yet another year.

When the Finance Minister continues to school us about discipline choices and that we must be thinking about a fiscally sustainable path, that’s become consensus talking for saying we have no money for Members’ initiatives, but don’t worry, your day will one day come.

When the government talks about fiscal restraint, I go to my dictionary and it reads they’re telling me your initiatives are about to be cut.

This budget falls short to respond to Members’ concerns and what the public wants. Members have been asked to review a budget. We looked at a 99 percent completed budget. Our advice of less than 1 percent was ignored.

The government will decry, “we are broke,” they say. But you know what? The bottom line doesn’t fall out, because we heard earlier today there was a large surplus. But rather, scaling back on their initiatives, what do they do? They cut ours.

This doesn’t reflect the trueness of consensus government in any manner. One might assume they would give us a little give and take, the things we desire on behalf of our constituents, rather than watching them be trimmed to fall to the floor.

Today represents yet another fine example of this McLeod government schooling us and saying we know best, and they continue to act like a healthy majority government. So this government will stop at saying everything and will stop at no stop by saying we are a collaborative government. But I

look and ask anyone to say, where are Members’ recommendations in this budget?

Over the coming days the government will hear continually about the shortfalls of programs that we need to invest better in, and of course, we’ll hear the response from government: No, no, no. The failure of this budget isn’t just on the Finance Minister, but I say it’s on all seven Cabinet Ministers not fulfilling their obligations of working with Members on this side of the House.

With an operating surplus of $232 million, there must have been the smallest amount of room for MLA concerns. We want more for cost of living. We want more in the Heritage Fund. The public would be shocked by how little is represented.

So, in closing, the Chinese will say this year is the year of the House, or horse. I’ll say it again one more time.

Sorry, Mr. Speaker, I seek unanimous consent to conclude my statement.

---Unanimous consent granted