Thank you, Minister Miltenberger. General comments. I have Mr. Bouchard.

Thank you, Madam Chair. I just have some general questions to the Minister about the ENR expenditure on the US purchase of these aircraft.

My fir

st question is: Why wouldn’t we have hedged

the major purchase of these assets and are we making that correction going forward? We know we have multiple payments to make in US currency and are we making that in the future so that we don’t have to spend $400,000 every time we try to make a payment?

Thank you, Mr. Bouchard. Mr. Miltenberger.

Thank you, Madam Chair. The whole practice of hedging is a separate, highly volatile profession of its own, and if we could with any certainty know which way things were going to go as hedgers, as has been pointed out, I’d probably be sitting in lavish luxury somewhere in maybe another locale. Be that as it may, we don’t normally buy a lot of things in US funds and, no, we did not hedge, buy any dollars to hedge on this. Yes, we are looking at how we could possibly ameliorate that impact. But I would also point out that earlier in this process we came before the Legislature and we moved some money up to take advantage of an opportunity that saved us, about a year or so ago, about $350,000, so things are close to balancing out. But the issue of hedging and having to pay money because of the exchange rate is something that we are, as I indicated, trying to ameliorate

. I’ll ask the deputy minister if he wants

to add anything further, Madam Chair.

Thank you, Minister Miltenberger. Mr. Aumond.

Thank you, Mr. Aumond. Mr. Bouchard.

Thank you, Madam Chair. Obviously, my next question is for Public Works and Services spending another $1.5 million on

more office space in Yellowknife. Obviously, this is a concern. I know we just built a whole building. I know we have millions and millions of dollars out there in rental space in Yellowknife, and obviously, it’s been key to me to do some decentralization and promote decentralization and now we’re spending another $1.5 million to do some more office upgrades.

Can the Minister just give me an explanation of this $1.5 million being spent, and how often do we spend another $1.5 million on office space in Yellowknife?

Thank you, Mr. Bouchard. Minister Miltenberger.

Thank you, Madam Chair. This money in question is money that was provided to us as an inducement to help encourage and make lease renewal more of a possibility, so the money is sitting there in an account as an inducement given to us and we are just now seeking approval to put that money to use to do different improvements. Once again, Madam Chair, I’d ask if the deputy minister wanted to add anything further.

Thank you, Minister Miltenberger. Mr. Aumond.

Any other general comments? Mr. Dolynny.

Thank you, Madam Chair. I’d like

to welcome the department here today, bringing forward another supplementary estimates before the House.

Kind of dovetailing on what we’ve heard earlier from Mr. Bouchard regarding the additional costs here for the 802 bombers that we’re purchasing, I tried to pay particular attention to some of the description used earlier as to how come we kind of know this was coming. We know this was a multi-year purchase and that these airplanes are bought in US dollars. That’s a given. That’s how the industry works. But I want to zone in on one of the things that was said today that the deputy minister indicated, “We’re looking for a facility or institution for more certainty.” Can I get an explanation of what that really meant?

Thank you, Mr. Dolynny. Mr. Aumond.

If Members remember, last year we were accelerating the program to take advantage of, I believe, the dollar, I think, if memory serves me right, and now we’re this year looking at a cost varied to the currency value.

I guess my question is: What did we learn from this project and what changes are going to be made to mitigate purchases of this magnitude, especially in US dollars in the future? Has the department managed to come up with a different set of policies or directives on how to deal with purchases in US dollars?

I give some credit where credit is due. This is a bit of an exception to the rule, but notwithstanding, I’m sure this is not the first time our government has had to purchase expensive items in US funds and I’m assuming we will continue to do so for years to come.

My role here as a legislator is to protect the public purse, and in doing so it’s incumbent upon myself to make sure the department is working towards the betterment of processes, the betterment of procedures so that we have a high degree of certainty when we do a desktop analysis as to what these projects will cost in the future. As I said, every year it seems to be something different with respect to these 802 Fire Bosses. This year now it’s about the evaluation of the Canadian currency vis-à-vis the American currency, so I’m a bit disenfranchised that through it all we’re still looking into it, we may see we s

till don’t have a project or a directive or a

policy that clearly says these are the things to do when we’re buying items, these are the issues of

hedging or whatever the case, whatever you’ve heard from the previous Member here that clearly give Members on this side

of the House when we’re

buying something for millions of dollars in this case here.

My next question is that, if memory serves, this project was a little over $30 million, I believe, a three-

year period. We know that there’s another

installment coming forward in infrastructure possibly for next year, so what does that mean for the next year now? If the dollar stays the same, are we going to be facing the same type of question next year for those who are going to be here for the future 18th Assembly?

Thank you, Mr. Dolynny. Minister Miltenberger.

Thank you, Madam Chair. The issue of buying in US dollars anything of significance, both gentlemen at the table here have a combined experience of over 50 years, and this is the first situation of this nature that either one, with that extensive experience, has experienced or been involved in. I have much less experience in the finance field but could add a few years to that as well.

As the deputy minister indicated, we are taking the steps with one of the institutions and a facility to be ready, should that need arise, and we’re going to, of course, be prepared, and this has now been documented that if that issue comes up and as we move forward before we get to the stage of having to actually pull the trigger on some type of investment, the US dollars, between ourselves, the very qualified staff we have, all the experts we use and of course the due diligence and vigilance of the communities and the Legislatur

e that I’m sure that

we will make sure that we are well prepared. Thank you.

Thank you, Mr. Miltenberger. Anything further, Mr. Dolynny?

Thank you, Mr. Dolynny. Mr. Kalgutkar.