This is page numbers 6207 – 6238 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 water.

Topics

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. The increase to our borrowing limit, the second one of this government, is part of the legacy that the 17th Legislative Assembly is going to

leave for the 18th Legislative Assembly, the ability to

have flexibility and choice. We went forward with the request and justification for the increase of the borrowing limit on the basis that we needed to be able to make critical investments in economic infrastructure that will help create the conditions for development that will help spur the economy and

increase our tax base and give us more money into our coffers in terms of revenue.

That has been the approach that we’ve used so far. We’ve used it consistently. We continue to use that fundamental approach that we cannot borrow money to invest in programs that are added to our base on a permanent basis, which would put us on a path that would be very quickly unsustainable, and we just have to look around at jurisdictions that have done that.

So, our focus is going to be on working, in the life of this government, with committee to have the initial discussions. There are budgeting and business plan processes already underway for the next budget, and all those discussions will take place within that process. Thank you.

Bob Bromley

Bob Bromley Weledeh

I have no problem with these funds, of course, going to infrastructure, but I hope the Minister will include consideration of the evidence, which is the faltering economy and raising debt and failure in many areas with the types of infrastructure we’re putting in place, as he makes those considerations. Although we’re making some progress in small communities, housing issues, for example, continue to plague us for a much worsening trend in Yellowknife. We have never had sufficient financial headroom to adequately address housing. Yet our disabled and young single mother families wither on the waiting lists.

How will this new room for infrastructure dollars be slated to alleviate the terrible housing situation that is accumulating and that exists for our people today? Mahsi.

Michael Miltenberger

Michael Miltenberger Thebacha

I appreciate the fact, the government has always appreciated the fact that there are far more needs than there are resources. There are two issues we have, two critical issues. First is we have to make sure that our expenditures don’t outstrip our revenues, and that is going to be a real challenge as we move forward, given some of the cost pressures. Then we have to make sure that we have processes to look at how we’re going to make critical investments in economic infrastructure, infrastructure that will create conditions for economic development.

Clearly, there are going to be a whole host of needs identified. In fact, the Member has raised some. Since the news came of the federal budget, the phones have been ringing with folks that all have good and well-needed projects that they want built and we are, in the life of this government, we started the business planning process for the 18th Assembly. The debate that the Member is talking about, about how will we fit these in, what choices do we make, what hard choices do we make to make sure that expenditures and revenues don’t strip each other are all things that are going to be

started in this Assembly but will be carried to fruition in the 18th Assembly’s budget. Thank you.

Bob Bromley

Bob Bromley Weledeh

Thanks to the Minister. I’ve always thought that a well-served people will generate their own economy and give their returns to government. The recent Localizing Our Economies forum indicated a huge amount of interest across the NWT in creating strong local economies that benefit the people of the North through local food and energy projects, as examples. Such projects need little investment, compared to large infrastructure projects and subsidies to boom and bust resource extraction industries, yet they create relatively many local lasting jobs that return perpetual benefits to our communities.

What are this government’s plans to invest this increased capacity in localizing our community economies, such as through locally owned and controlled renewable food and energy projects? Mahsi.

Michael Miltenberger

Michael Miltenberger Thebacha

I was briefly at the gathering the Member talks about, and there was a lot of interesting discussion. I will indicate two things, first that there is an enormous amount of activity already underway by ITI, by MACA, by ENR, in all the areas that we have a concern with in terms of local economies but also with the broader economic issues that we are all tasked with making sure that we manage the $ 1.9 billion budget, make sure our revenues match our expenditures. So, once again, there’s a process in place, as the Member is well aware in his eighth year as a Member of this Assembly, that will deal with the discussions through the main estimates process, the business planning process, of how do we move forward and what investments we make and can afford to make, keeping in mind this borrowing limit is not free money. This borrowing limit is money borrowed that has to be paid back, and that has to be factored in as well.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Bromley.

Bob Bromley

Bob Bromley Weledeh

Thank you, Mr. Speaker. Thanks to the Minister again. I don’t disagree with many of his comments, although I think if he looked at what our paybacks are with the current interest with the investments that this government has been doing, he would find that, in fact, the costs far outweigh the economic benefits to the people of the Northwest Territories. They’d certainly benefit people outside the Northwest Territories.

To date, this government has failed to address the growing lineup for seniors care beds across the Northwest Territories. As we heard earlier today, waiting lists are longer and longer while spending years servicing the proper protocols on capital the situation worsens, forcing seniors to leave or suffer the consequences.

Within this new debt limit is the government prepared, at last, to commit to addressing the growing needs of our elders, particularly in Yellowknife?

Michael Miltenberger

Michael Miltenberger Thebacha

I first think it’s important to make a note or a point for the edification of people listening, and that is that if we didn’t have the diamond mines we would be short about $1.5 billion a year out of gross domestic product, and I can tell you, if we had that big a hole in our economy that we would be in a far more difficult and bitter position than we would ever think by the loss of those types of activities.

We need to make sure we work with industry to have sustainable, balanced development. The Minister of ITI talked about that in his Minister’s statement today. We mustn’t forget that we have to do both. The local economies are good, but they won’t generate the types of revenues that we need to maintain the Northerners and the lifestyle and at the level that we have become accustomed to.

In regards to the seniors, those issues are being looked at. We have some of the best seniors’ benefits and programs in the country, and we will continue to have, and we will work on the capital requirements that are there.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Miltenberger. The Member for Yellowknife Centre, Mr. Hawkins.

Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you, Mr. Speaker. I’m going to use this opportunity to clear some of the air and we’ll call up this ATCO concerned problem about their ads and even some of the innuendos where they’re bemoaning on the street that they’re being muscled out of the Northwest Territories.

Frankly, let’s just put it on the table. I have questions for the Minister responsible for the Northwest Territories Power Corporation.

I want to ask clearly this: Is there any mandate by this Cabinet or certainly this Minister in any way to attempt to run ATCO out of Hay River or the Northwest Territories? We need to clear this up first.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Hawkins. The Minister of the Northwest Territories Power Corporation, Mr. Miltenberger.

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Speaker. The interest of the NWT Power Corporation is very clear that on Monday the Town of Hay River passed a motion to initiate a public process for the renewal of their franchise, and we have indicated that we would take part in that public process. There is no broader issue other than that. I am aware of some of the concerns and angst and

heartburn in different areas, in corporations, in board rooms and some of the Members of this House, but they are unfounded and ill-founded.

Robert Hawkins

Robert Hawkins Yellowknife Centre

When was the last time the Northwest Territories Power Corporation put a competitive bid in the Town of Hay River for the Hay River franchise? What would be helpful here to understand is how long each franchise agreement is put into place. It is my understanding that it has been years since the last one that the Northwest Territories actually fully competed in, because, as I understand it, they fully withdrew from the last process they may have been considering to be involved in.

Michael Miltenberger

Michael Miltenberger Thebacha

If my memory serves me correctly, it was during the life of the 15th Assembly there was a renewal process, and at that point there was some talk of the Power Corporation putting forward a proposal for that franchise. But at the end of the day, the government of the day instructed the Power Corporation not to proceed.

Robert Hawkins

Robert Hawkins Yellowknife Centre

I think, actually, the official record should note it’s probably the 14th Assembly that has

that credit from withdrawing from that particular competitive process.

That actually now leads perfectly into my third question, which is: Who directed the NWT Power Corporation to withdraw from fully competing in the competitive process for the Hay River franchise agreement – a tough word to say today – and was it politically motivated or was it done through any other reason, because they withdrew in that day?

The Speaker

The Speaker Jackie Jacobson

Mr. Hawkins, asking questions of previous governments, it has already been said. Could you restate your question to the Minister?

Robert Hawkins

Robert Hawkins Yellowknife Centre

That’s okay, Mr. Speaker. I think I have already sort of stated my issue for the record. I will go to the next question with no problem. Thanks for your guidance, Mr. Speaker.

Is there any reason that ATCO, the billion dollar company we talked about earlier today, could not bid on the upcoming Hay River franchise agreement? Thank you.

Michael Miltenberger

Michael Miltenberger Thebacha

I will limit my comments to making the observation that it’s a public process and I understand that the Town of Hay River has sent copies of the RFP to both ourselves, the Power Corporation, and to ATCO. Thank you.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Hawkins.

Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you, Mr. Speaker. Maybe we should just get down to the nitty-gritty here. Has the actual RFP been called for by the Town of Hay River, and if so, is the Minister aware when the NWT Power Corporation will be submitting a bid for this particular process? Lastly, on the same point,

how long does the cycle for review of this process take? Thank you.

Michael Miltenberger

Michael Miltenberger Thebacha

I understand the process is now open and will remain open until the end of June or the very first part of July. We anticipate that the Town of Hay River intends to move very quickly in terms of evaluating whoever submits bids and picking a successful proponent. Thank you.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Miltenberger. Member for Inuvik Boot Lake, Mr. Moses.

Alfred Moses

Alfred Moses Inuvik Boot Lake

Thank you, Mr. Speaker. Seeing as how we just did an induction into the Education Hall of Fame, I am going to have some questions today for the Minister of Education, Culture and Employment in regards to some of the Education Renewal and Innovation Strategy that his department has undertaken over the last few months.

Mainly in terms of the funding formula, I know there were discussions about how we fund our education authorities and I would like to ask the Minister, at what stage are we in finalizing and working on this new funding formula on how we finance our education authorities? Thank you, Mr. Speaker.

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Moses. Minister of Education, Culture and Employment, Mr. Lafferty.

Jackson Lafferty

Jackson Lafferty Monfwi

Mahsi, Mr. Speaker. The new formula framework that we were discussing with the standing committee a couple of days ago, it is at a stage of going through the final stages. We’re at the point of finalizing that in the fall of this year, 2015, and obviously that will be going to Cabinet and going to the standing committee once we go through the process.

The formula funding framework has not been changed for the past 25 years, the contribution that we give to the education school boards. This is the work that has been ongoing for a number of years now. Now we are at the final stages. In the fall of 2015 it will be available. Thank you.