Thank you, Mr. Speaker. Mr. Speaker, through the Formula Funding Review, the communities did identify a shortfall in funding that they receive. We are still in the early stages with that, and it's not infrastructure funding, it's actually O and M funding, so we are still in the early stages with that, and we will have to come up with a strategy on how we are going to deal with that as a Legislative Assembly. Thank you, Mr. Speaker.

Yesterday, this House adopted the mandate of the Northwest Territories for 2016 to 2019. In that, there is a commitment that we will develop a strategy to close the gap in funding levels to meet municipal core needs. The Minister just alluded to that. Can we have some timelines on when that strategy will be prepared for consideration by the government or this House?

We have to take into account the fact that we've already done the Formula Funding Review, and that was work that we accelerated during the life of the 17th Assembly. That was actually supposed to start at the beginning of the 18th, but we felt that it was important that we identify what the communities would need and then, at the beginning of the 18th Assembly, or during the life of the 18th Assembly, see if we can come up with plans to fund some of the funding shortfalls that were identified. We have to recognize, though, in our challenging fiscal situation, and with the rest of the mandate and some of the costs that might be associated with that mandate, I think we are going to have to prioritize our issues going forward. With the challenges that we are facing financially, we'll have to determine what are some of our priorities. I just said it twice.

Can the Minister answer if this strategy will include spending money or if it will just be a strategy on paper?

You have to have money to spend it.

---Laughter

Mahsi. Oral questions. Member for Kam Lake.

Thank you, Mr. Speaker. Perhaps I might encourage the Minister to ask our friends in Ottawa if they can provide $27 million to fund our communities that are badly in need of it. Thank you, Mr. Speaker.

We have been very fortunate in the last number of years where we have received infrastructure money from Ottawa. We had the Building Canada Plan from a few years back that put over $245 million into the Northwest Territories. A lot of that money flowed to the communities. The communities actually did a very good job with the projects. Through the New Building Canada Plan, we had $258 million booked for the Northwest Territories. Out of that, $38.4 million was allocated to the communities. The rest of the money actually went into our transportation projects. We just approved bundle 2, and we have another bundle that we have to approve, and we're going to have that. We have been very fortunate that we've been able to access a lot of money from the federal government to help with our communities, and through the gas tax money, too. They changed a lot of the criteria in the gas tax funding to include more projects. I think that's where we see our communities are challenged now on the O and M side to deal with a lot of the O and M on the infrastructure money that they've been given. We’ve worked with them to allow them to use some of the CPI funding they get from Municipal and Community Affairs to help deal with some of the O and M on projects. We will continue to work with our counterparts in Ottawa, with the new federal government, and the commitments that they have made as far as infrastructure spending go, we have to hold them to that. We have to be sure that we're down there getting our share of the infrastructure dollars on a base plus basis, not a per-capita base. We'll continue to work with them and we'll keep the committee informed as to the work that we're doing.

Mahsi. Oral questions. Member for Mackenzie Delta.

Thank you, Mr. Speaker. Mr. Speaker, in follow-up to my earlier questions on the crusher for Aklavik, it's quite clear there's a lack of representation of small communities on the Cabinet side. Otherwise, they would know the challenges we have in our small communities. Just to say, “Oh, just go to the private sector.” It's not that easy for these communities. From what I understand these crushers are in the department for communities such as this, so I'd like to ask the Minister: Will the Minister be willing to work with the community, which is trying to come up with a training plan for opportunities that will arise out of this and build capacity? Will the Minister work with the community to set up a time that this will be available? Thank you.

Thank you, Mr. Speaker. The department is willing to work with all communities, big or small, for the needs of the citizens of the Northwest Territories. I'd be glad to sit down with the Member and discuss what their possible needs are. Thank you, Mr. Speaker.

That sounds promising. My last question for today is: Will the Minister be willing to come to Aklavik to see first-hand the challenges, and also to meet with the community?

Yes, I would be willing to go to Aklavik and discuss this.

---Applause

Mahsi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker. Mr. Speaker, today, I have a question for the Minister of Transportation. As the Minister has heard numerous times in this House, in the small communities, not the big centres like Hay River, Inuvik, Yellowknife, Fort Smith, it is very important to have projects done with local contractors where possible, or with a joint venture, so the money can stay in the community.

Therefore, can the Minister please explain the process used to set up negotiated capital projects with his department? Thank you, Mr. Speaker.

Mahsi. Minister of Transportation.

I thank the Minister for his short but sweet answer. Can the Minister please explain how the department works with small communities so they can address their desire to go into negotiated contracts?

The department considers contracting methodology based upon the scope of work; safety requirements of the scope in the construction industry. When a community expresses an interest in a project and in contrast, the methodology affords itself to a negotiated contract, the department will assist by advising on policy requirements. On the other hand, when contracting methodology does not suit a negotiated contract, the department will advise communities to partner with contractors having those specialized trades and equipment. We also encourage communities to take part in training offered by the Department of Municipal and Community Affairs School of Community Government.

I thank the Minister for a better answer, and a longer answer I should say.

---Laughter

Can the Minister please explain to me how the Somba K’e Runway internal project was dealt with, since the runway was done by a negotiated contract with the First Nation and a regional company, and the air terminal wasn't?

As mentioned, these decisions are made based on the scope of the contract, safety requirements of the scope, and the construction industry. The work associated with construction of a runway is primarily gravel hauling and moving and compaction. It was completed through a variety of approaches, including construction management initially, and then through a negotiated contract with Rowe's Construction in the community. The ATP was a smaller contract that required bonding and specialized skills that could not be learned and transferred based on the duration of that contract. During the tendering period, the community was encouraged to partner with the general contractor who has the necessary trades and equipment and bonding capabilities to finance this project during construction.

Mahsi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker, and I thank the Minster for his answer. I did ask this question to the Minister in an email, if the terminal is going to modular built or stick-built. The response I received it was going to be stick-built, but it was going to be done outside the community and will be trucked in. The reason for doing this was they needed special tools. Can the Minister please explain what special tools were needed that could not be brought into the community to do the stick-built project for Somba K’e? Thank you, Mr. Speaker.

The air terminal project was delivered through a public tender. Determining the methodology is a responsibility of the contractor delivering the project. In this case it is speculated that the contractor use an off-site construction because of the proximity of specialized trades and building materials in Hay River. This keeps the cost of construction down and avoids unnecessary delays. I'll add that the new air terminal building for the Trout Lake Airport is designed as a stick-built structure that will be transported by truck and arriving in Trout Lake soon as one item. The building is expected to arrive on site during the first week of March, and the Department of Transportation encourages the community to contact Rowe’s Construction to identify local job opportunities for the final delivery and set-up of the building.