This is page numbers 157 - 184 of the Hansard for the 18th Assembly, 2nd 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 community.

Topics

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. I do appreciate the answers from the Minister. Once again, though, I am very concerned that this happened under our watch, part of it, and my objective in asking these questions here today is to show the importance of that division, the work that they do, and I know that they have started this work to get some sort of guidelines, policy framework, in place. They even changed legislation so that there are mandatory requirements for financial security, looking at the forms of the security, and even mandatory requirements for closure plans.

As a smaller government, we just can't afford to not get this right. We are not like the federal government.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Mr. O'Reilly, your time is up, but seeing no one else on my list, I will let you continue.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. I'm not really sure I have much else to say. I was trying to get it all within my time frame there. But once again, I do thank the Minister for his responses. I look forward to the information he has committed to provide. I'm glad he has agreed to have an inspector go out and check out the site, Mactung, for liabilities and I look forward to working with the Minister and this particular division to make sure that we have our devolution house in order to prevent this sort of thing from happening again. But I’m worried about what is going to happen with Prairie Creek as well.

Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. O'Reilly. Mr. Testart.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Chair.

This is more a question or comment on process, but my understanding is that, notwithstanding the excellent exchange of questions between the Minister and the Member for Frame Lake, special warrants are not something that this House need approve. They are already at the discretion of the Financial Management Board or Executive Council. I’m just wondering if there is any further requirement to address this by this committee.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

It's my understanding that we need agreement, and I’m allowing Members to make comments if they wish. Mr. Testart.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kieron Testart

Kieron Testart Kam Lake

That's fair. I guess I object to that special warrant existing in here, because, even if we disagree, the money is still allocated. It's more a comment on process. I recognize that it is a change to debate and talk about it, but there are other avenues for that as well.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Testart. Finance Minister McLeod.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Chair. Mr. Chair,

a decision had to be made on this, and there was a timeline attached to it so the decision was made to use a special warrant. As far as special warrants go, in future, with your indulgence I will have Mr. Aumond speak to that.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Minister McLeod. Mr. Aumond.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Aumond

Thank you, Mr. Chair.

On April 1, when the new Financial Administration Act comes into force, special warrants will no longer be part of the supplementary appropriation process. Instead, the Minister will simply table a report in the Legislative Assembly for any special warrants that were approved by the Financial Management Board between sittings, and then that report will be subject to debate in the House. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Aumond. Mr. Testart.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Kieron Testart

Kieron Testart Kam Lake

Thanks for the clarification of process. I think that is a much better option than the current approach. Nothing further, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you. Mr. Thompson.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Chair.

Can the Finance Minister please explain to me why we bought it and why we did not allow them to use the bids? Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Thompson. Minister McLeod.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Chair. Mr. Chair,

we decided to purchase it because the bids that came in were all very low. They were very low. We then purchased the property, and Canada agreed to be responsible for the remediation. Should the price of tungsten ever rise, we are sitting on a piece of property that could potentially be worth a few dollars. That's why the decision was made. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. McLeod. Mr. Thompson.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Chair.

I'm still a little confused why we would actually not allow somebody else to purchase it, to invest and work it, deal with this mine. We are just holding it and waiting for tungsten to go up. I'm still trying to figure out why we as a government would not just allow a company to purchase it and try to manufacture it from there.

Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Thompson. Mr. Aumond.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Aumond

Thank you, Mr. Chair.

Under the devolution agreement, the GNWT is required to make best efforts to maximize the value of the Mactung property, if Canada was going to accept Cantung, and so as the Minister said, the bids came in low. The GNWT was not satisfied with the bids. Canada certainly was not satisfied with the bids. So part of the decision-making process that was undertaken by the GNWT at the time was either to accept Cantung and all its liabilities, or to purchase Mactung. Canada then would accept Cantung with its liabilities and the GNWT could wait for the price of tungsten to increase, making that property more attractive, and get a better price than what they paid for it. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Aumond. Mr. Thompson.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Chair.

If I understand this correctly, the Government of Canada said, “If you don't buy it, you are going to get stuck with the responsibility to look after the other mine and the issues with it”?

Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair R.J. Simpson

Thank you, Mr. Thompson. Minister McLeod.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Chair. Mr. Chair,

Canada's position is that, if we didn't take best efforts to sell the property, then my belief was we were going to be responsible for the liabilities, so we had to make best efforts. We weren't pleased with the prices that came back. Canada wasn't pleased with the prices that came back. As a government, we made the decision that we would purchase the property, knowing that if we did, then Canada would be responsible for the remediation of the property, then if there is an opportunity, if the price of tungsten goes up, then we would move that property.