Masi.

Budget address. Minister of Finance.

Thank you, Mr. Speaker.

Introduction

Mr. Speaker, this first budget of the 18thLegislative Assembly is about putting our fiscal house in order so that we can continue to provide quality programs and services and, over the life of this Assembly, focus on what matters to the people of the NWT. We have worked with Members of this Assembly through the various standing committees to make the choices to guarantee that we can continue to provide the core programs and services that NWT residents need and start to deliver on priorities identified in this Assembly’s mandate.

We intend to ensure fiscal sustainability over the life of this Assembly. The NWT economy is facing considerable challenges that have serious implications on our revenues. We have made this budget about balancing the needs of our residents for essential programs with strategic investments in infrastructure to help deliver these programs and to support the economy without compromising our financial sustainability.

Our course is clear: we must align our expenditures to revenues and reinforce that commitment through the life of this Assembly. This is what sustainability means. Our revenue outlook is flat while program and service demands continue to put pressure on expenditure growth. Revenue is largely from federal transfers, and our small tax base cannot fund the gap in expenditure needs without significantly raising the cost of living and doing business in the territory. Borrowing is also a limited option, and at some point the debt must be repaid. This is why actions to carefully manage our expenditures is the foundation of our strategy to ensure fiscal sustainability. Despite this, and let me be clear, the 2016-17 budget is not an austerity budget.

The GNWT will be spending $1.98 billion in 2016-17. Of this amount, $1.66 billion will be for operations, as outlined in the main estimates, and $320 million for investments in infrastructure that were approved in last fall’s capital estimates.

Clearly, $1.98 billion in spending lined up against $1.8 billion in revenue is not sustainable. For all intents and purposes, this shortfall will require the GNWT to increase short-term borrowing by $54 million to ensure that we meet our day-to-day needs. This rate of borrowing is like maxing out our credit cards. At some point, the balance has to be paid. This is why the $119 million operating surplus is critical to maintaining a prudent borrowing plan to pay for the infrastructure we need to deliver our programs and support the economy. We have limited revenue options and we can’t spend what we don’t have. If we don’t bring our operating expenditures in line with revenues, our ability to address our $3.4 billion infrastructure deficit will continue to erode. If we can’t make the difficult budget choices, if we can’t say no to things that are not priorities, if we are unwilling to admit that some things are not the best use of the money available, then we won’t be able to fund the priorities in our mandate like long-term care facilities, seniors’ housing, more affordable housing units, alternative energy infrastructure and transportation infrastructure to lower the cost of living. We need to put our financial affairs in order now to protect our fiscal future.

We have accepted the challenge of critically examining how we manage our finances. We intend to make good choices today while the situation can still be managed and the impacts of the NWT economy and GNWT programs can be minimized.

As NWT residents have been telling us through the budget dialogue that was started this spring, we need to eliminate unnecessary spending to ensure that we have the resources to fund essential programs and services. Our departments are doing that. For instance, residents have told us to reduce non-essential travel and contracting and, across the entire government, departments are planning to reduce expenditures in travel, telecommunications, fees, contracts, and other purchased services by almost $2.5 million this year. Others asked why we are closing the Mackenzie Valley Petroleum Planning Office for a savings of $665,000. We were told that it is not enough to keep everything the way it is and that we need to streamline programs to create a results-driven approach. We are doing that by combining employee services with financial shared services, saving $1.2 million annually.

Ultimately, this budget will allocate our limited resources as effectively as possible to pay for government programs and services to realize our vision of a strong economy that allows NWT residents to prosper with the jobs and opportunities in our communities that only a robust economy can provide.

Economic Outlook

Mr. Speaker, our dependence on the resource sector to provide good jobs and local business opportunities means that we have to take a longer-term view of our economic outlook and the implications for our fiscal situation.

Our economy in 2016 is the only one in Canada still smaller than its pre-recession 2003 to 2007 average. Despite posting three years of modest growth, we have Canada’s most volatile economy. Our small, open, resource-based economy is at the mercy of global events beyond our control, and we need to find the fiscal resources to support growing and diversifying our economy through strategic investments that lower the cost of living and doing business and finding more resources to develop our resident workforce.

Right the southern part of our territory is doing well as the Gahcho Kue diamond mine finishes construction and begins operations this fall. The construction of the Mackenzie Valley Fibre Optic Link has provided the incentive for more satellite dishes to be installed in the Inuvik Satellite Station Facility thereby enhancing opportunities for economic diversification in the Mackenzie Valley. The completion of the Inuvik to Tuktoyaktuk Highway will lower the cost of living in Tuktoyaktuk and provide more opportunities for tourism in the Beaufort Delta. The replacement of the Stanton Territorial Hospital will allow for the provision of better health services in the NWT, making our territory an even better place to live and work.

However, in as little as seven years, one, and possibly two, of our world-class diamond mines may close. New resource projects in the planning stage today will not replace the jobs and opportunity for NWT businesses and the government revenues that these mines represent.

New mines and other resource developments come from exploration investment and this investment is mixed at best. Low commodity prices have brought oil and gas exploration to a standstill and projects with promising mineral deposits are having difficulties securing financing.

The survey of capital investment intentions shows that the NWT businesses are approaching this year with caution; private capital investment is expected to decrease by 35 per cent from 2015.

Meanwhile, we recognize that we need to continue to advance economic diversification. We need to invest to support sectors that will be able to withstand the closure of the mines that have been the mainstay of our economy for many years. We need to manage our fiscal resources so that we are prepared for the change in our economy that will eventually happen. Just like we are meeting the challenge of climate change through the leading edge work we are doing to mitigate and adapt, we must also be ready for a different economy in the near future.

Fiscal Strategy

Mr. Speaker, our fiscal strategy remains grounded in the principle that you shouldn’t spend what you can’t afford. Flat population growth, low commodity prices, and the resulting slowdown in both the Canadian and NWT economies mean that total revenues are projected to be flat over the next five years. Without action on expenditures, we are facing a future that is not fiscally sustainable. No action means that we will be creating a bigger problem to fix in the future. If we refuse to meet the challenge of living within our means, we will create a future with no fiscal capacity to make strategic investments to support the economy, or to enhance the programs and services provided to NWT residents, or to withstand revenue and expenditure shocks.

In the spring, the International Monetary Fund stated, “Restoring robust growth is essential for addressing the fiscal challenges ahead.” We could not agree more. We want our government to have the fiscal flexibility to provide critical infrastructure to grow the economy and ensure that our residents can fully participate in this economy.

Our fiscal strategy addresses these challenges by matching expenditure growth to revenue growth. Since revenues are not growing, we have taken up the challenge to re-examine our spending in some areas. This has resulted in some reductions but more importantly, we have managed to re-align spending so we can continue to fund critical and necessary programs and services required by NWT residents and businesses and free up resources for this Assembly’s priorities.

These actions are confirmation of our ongoing commitment to the Fiscal Responsibility Policy. By following the policy’s guidelines for prudent financial management, we will not borrow to fund day-to-day operating spending and will manage our expenditures so that we generate operating cash surpluses to fund at least half of our infrastructure investments. These surpluses make it possible to take advantage of $45 million in federal cost-shared funding for infrastructure this year. These operating surpluses help us to maintain our good Aa1 credit rating, so that our borrowing costs do not increase and give us the flexibility to manage unexpected and unplanned spending, such as forest fires. Without these surpluses, we do not have the ability to make required infrastructure investment in such things as health facilities, schools, parks, highways, and runways that deliver essential government programs and keep our economy moving.

The time to build these surpluses starts with actions today. These actions include linking increases in expenditures to growth in the Territorial Formula Financing grant, which drives the growth in total revenues. Our target of $150 million in savings, or new revenues, to establish a short-term cash surplus position by the end of the 18thAssembly. This budget does the heavy lifting. We have identified $53 million in expenditure reductions, or 3 per cent of the total operating budget, and are raising $15 million in new revenues over the next four years. This combination of expenditure management and increased revenue brings us to a total of almost $68 million, 45 per cent of our target.

There is no doubt that the government expenditure restraint affects the economy and the type of expenditures that are reduced is an important consideration. We are working hard to limit the number of employees who will be affected and to minimize the negative effects on program delivery, while clearly understanding that the cost of doing nothing to put our finances in order will have more serious consequences for government programs and services in the future. Our government is prepared to act now and not punt what will be a much larger problem to future Legislative Assemblies to fix.

Budget Highlights

This budget proposes an operating budget of $1.66 billion, a testament to departments’ efforts to find savings and efficiencies where they can, so we can continue to deliver first class programs and services. Total revenue is estimated to decrease by almost one per cent from last year to $1.8 billion in 2016-17.

Although these efforts will produce an operating surplus of $119 million, this is still not enough to continue to invest in infrastructure and start relying less on short-term borrowing.

Revenues

Mr. Speaker, we have reviewed our tax regime to ensure that we are raising as much revenue as possible to pay for government programs and services without compromising our support for a strong NWT economy. The high cost of living, working, and doing business in the NWT is a key factor influencing our aim for a stable and competitive tax structure based on established tax policy principles that will generate the revenues we need to fund important programs and services, while also encouraging people to live and work in the NWT and for businesses to invest in growing our economy.

We are introducing no new taxes in this budget. Property taxes and some fees will be adjusted for inflation. We are also proposing to re-structure Yellowknife Airport fees to match industry averages.

The Yellowknife Airport is a well-run, vital asset of the NWT economy. Its dedicated workforce serves the entire territory. However, the airport is constrained by being inside a government department while operating in a competitive market. Our landing and terminal fees are low compared to similar and even smaller airports in the south and NWT taxpayers are in effect subsidizing the cost of operation to the tune of $3 million per year.

This budget proposes to eliminate the taxpayer subsidy by bringing airport fees in line with those charged by comparable airports in the south and by introducing an airport improvement fee of $20 per passenger travelling south and $10 for those flying north. Once fully implemented, these changes will provide an estimated $10 million in new revenue annually. We propose to establish a revolving fund for the Yellowknife Airport so it can use the revenues it generates to improve services, invest in capital, promote business development, and to be a key asset to help grow and diversify our economy.

We must be realistic about what we can and cannot do to increase revenues. The few revenue options that could generate significant revenues would discourage business investment and economic growth and would leave individuals and families with fewer dollars in their pockets while the cost of living continues to rise. Increasing revenues may be part of that solution, but we cannot solve our fiscal problems solely on the revenue side. Our tax base is simply too small. Our economy has not fully recovered from the last recession. The better option is to support and grow our economy so that our tax base expands and our own-source revenues and the Territorial Formula Financing Grant increases.

Expenditures

Mr. Speaker, our actions to responsibly manage our expenditures includes $35 million in new initiatives to address priorities of the 18thAssembly and $29 million for forced growth of existing program spending. We have accomplished this while controlling total budgeted spending from 2015-16 by removing $27 million for programs that were scheduled to end in 2015-16 and $31 million in ongoing program reductions starting in 2016-17.

Mr. Speaker, in the spirit of collaboration and cooperation that defines consensus government, our government has worked with various standing committees to protect $4.3 million in programing in this budget. Highlights include $900,000 for small community employment programming, and $650,000 in funding to support programs for our youth, communities, and volunteer organizations.

We are protecting our core social programs that support our residents with $1 billion of our proposed $1.66 billion budget. We have found the savings to be able to add $7 million to the Health and Social Services budget to fund health facilities, long-term care beds, and implement the new Mental Health Act, bringing the total spending in the department to $414 million.

The Department of Education, Culture and Employment budget will increase $6 million to $316 million this year. This increase will contribute to initiatives for enhancing support for post-secondary students, for supporting children of families with low and modest income, and for employment programs for people with disabilities. From within its existing budget, the department plans to significantly change the way it funds daycare and day home operators to strengthen these programs. These changes along with other ongoing initiatives that are part of the Right From the Start early childhood development strategy, demonstrate our continued emphasis on supporting our youngest residents.

We committed to avoid restraining our expenditures to the detriment of NWT communities and instead have increased community government core funding by two per cent in the Department of Municipal and Community Affairs $104-million budget. Together with $127 million budgeted for the Department of Justice, this funding demonstrates the priority we place on helping communities provide essential programs and services to their residents. Including our $82 million contribution to the NWT Housing Corporation, our total contribution for social programs is over $1 billion or 63 per cent of the total operating budget.

We are also spending $423 million to protect our environment and support our economy. This budget provides $90 million to protect and manage our environment and wildlife through the Department of Environment and Natural Resources and $28 million for the Department of Lands to manage sustainable use of public lands in a fair and transparent way, respecting ecological, social, cultural, and economic values.

The Department of Transportation has a budget of $125 million in 2016-17 to ensure safe and reliable movement of people and goods. The Department of Public Works and Services budget of $120 million will be used to provide appropriate facilities and information systems to deliver government programs and to provide expert support on energy solutions for the entire territory. The Department of Industry, Tourism, and Investment is allocated $60 million to manage mineral and petroleum resources responsibly and to partner with others to promote and support economic prosperity, diversification, and community self-reliance.

Governance - Improving Accountability, Transparency and Collaboration

Our commitment to modernize our fiscal reporting will greatly enhance accountability and transparency of our government’s finances. For the first time, we will be tabling our borrowing plan along with the main estimates for both the government and our public agencies. The borrowing plan will detail total estimate borrowing of $783 million for the 2016-17 fiscal period. The government’s $543 million share of this borrowing includes an estimated $312 million in short-term borrowing and $231 million in long-term borrowing. For fiscal flexibility to address any revenue or expenditure shocks, we will be requesting a short-term borrowing limit of $377 million in the 2016-17 Appropriation Act.

On August 1st, 2016, six of the existing health and social services authorities will be combined to form a new Territorial Health and Social Services Authority. This new structure will help set the stage for improved care and services for residents, allowing us to set territorial program standards, to ensure equitable access to services, and to use all our system resources more effectively. This new authority will oversee a budget of approximately $300 million, providing an opportunity to achieve efficiencies in non-clinical areas like procurement, and will bring together authority financial systems to support improved financial management throughout the system.

We are also proposing $5.4 million in new initiatives in this budget to address this Assembly’s priorities to improve accountability, transparency, and collaboration in our government’s actions.

This includes $1.6 million for continued collaboration with our neighbours to manage our shared water resources and to implement the trans boundary water agreements with the governments of Alberta and British Columbia. We will continue managing stewardship of our water resources through the Mackenzie River Basin Transboundary Waters Master Agreement. This proposed funding will continue our work to reach bilateral water agreements with Saskatchewan and Nunavut and to renew our agreement with the Yukon.

The GNWT supports building strong intergovernmental relationships with provincial-territorial governments and this budget proposes funding for cost-sharing initiatives to support the collaboration between provincial-territorial governments on the RCMP Contract Management Committee.

Strong intergovernmental partnerships with other governments within the territory are critical to the long-term economic success of the NWT. In addition to our ongoing support to help settle land claims and encourage successful self-government agreements, the 2016-17 budget proposes to further strengthen our ties to Aboriginal and community governments through an additional $450,000 in Aboriginal tourism initiatives, tourism and general infrastructure in communities under both the Tourism 2020 plan and Economic Opportunities Strategy, and Aboriginal capacity building under the Mineral Development Strategy.

We are also working with communities to strengthen partnerships in preventing and responding to violence with an additional $316,000 from the federal government under the Aboriginal Justice Strategy Fund. This will bring the total funding for community-based justice programs and projects to $1.6 million in 2016-17. This funding will flow directly to communities for community-based programs and services for alternative justice and crime prevention.

Cost of Living

Reducing the cost of living is a fundamental part of our strategies to strengthen the NWT economy and a significant part of our budget. The NWT Cost of Living Tax Credit alone puts $20 million into NWT residents’ pockets each year. Ongoing investments in energy conservation and alternative energies to reduce our dependence on fossil fuels help lower residents’ and businesses’ energy costs. Transportation infrastructure investments help reduce the costs of moving goods and people around our territory. Stable funding to community governments, contributions to non-government organizations for their work to enhance community living, and the $82 million contribution to the NWT Housing Corporation for affordable housing will contribute to lowering the overall cost of living.

Budget 2016-17 introduces an additional $11 million for cost-of-living initiatives. This includes an additional $7.5 million for subsidizing power generation while water levels are low in the Snare hydroelectric system. As we deal with the historically low water levels, this subsidy avoids the necessity for the Northwest Territories Power Corporation to apply rate riders that would range from five to seven cents per kilowatt-hour and raise electricity bills between 18 and 25 per cent. The recent changes to the board will save us $1 million annually.

This budget provides $82 million to the NWT Housing Corporation to help deliver housing programs and services in 2016-17. The corporation will also be delivering an additional $16.6 million in new federal funding for affordable housing projects through the Investment in Affordable Housing Agreement. This funding will enhance the corporation’s efforts to increase the number of NWT households with sound, suitable, and affordable housing. In addition, we are proposing to contribute $3.5 million to the Housing Corporation to help with the construction of six housing units to lease back to the RCMP in Fort Smith and to acquire land in Inuvik, Norman Wells, Hay River, and Fort Simpson to support future years’ delivery of 39 units over the next two years. The new houses will replace accommodations that are at the end of their life cycle with quality energy-efficient units. This partnership with the RCMP will eliminate the need to find alternative housing for officers and support the consistent delivery of police services in the NWT.

We are taking action in this budget to increase our support for NWT children from families with low and modest incomes, including changing the Income Assistance Program so that income from the Canada Child Benefit, the NWT Child Benefit, and spousal support is excluded in the calculation of income assistance payments. We will also be coming forward this fall with amendments to the NWT Income Tax Act to enhance the NWT Child Benefit, including different benefit amounts for children under and over the age of six. This benefit would be non-taxable and not included in other income assistance benefits. The basic amount would be paid to all families with less than $30,000 in family income and gradually reduced as income increases. Benefits would be paid to families with income up to $80,000. We look forward to engagement with standing committee to quickly move with the legislative changes so the enhanced credit can be implemented in 2017.

Education, Training and Youth Development

The best social program is a good paying job.

We need to ensure that NWT residents can take advantage of good education programs to participate in our economy. Budget 2016-17 provides $4.3 million in new initiatives for education, training, and youth development.

We propose to add $2.2 million to our Student Financial Assistance program to make post-secondary education more accessible and affordable for NWT residents and to support recruitment in rural and remote communities. Remission rates are proposed to increase from $4,000 to $6,000 for students who take up residence in Yellowknife and to $8,000 for students residing in Fort Simpson, Fort Smith, Hay River, Inuvik, and Norman Wells. The remission rate for students in all other communities will increase from $8,000 to $12,000. As well, the additional funding will be used to increase total grants by 27 per cent by raising the maximum grant for tuition by $475 to $2,400 and for books by $150 to $550 per semester.

We are using the proposed enhancements to the Student Financial Assistance program to attract and retain students to live and work in the NWT by introducing a $2,000 Northern Bonus payable against student loans for both students who were raised in the NWT and students who are from other parts of Canada but reside in the NWT for at least a year after graduation. As well, the budget proposes to eliminate the interest rate on repayable Student Financial Assistance loans for all students residing in the territory.

To support lifelong learning, the Student Financial Assistance program lifetime limit will be removed and will be replaced with a revolving limit. In addition, the 20-semester limit will be removed completely.

We propose to further help NWT residents with disabilities become suitably employed with additional investment under our labour agreement with the federal government. This new funding will be focused on enhancing our support for employer needs to improve the participation of persons with disabilities in the NWT workforce.

Community Wellness and Safety

Improving community wellness and safety enhances the lives of NWT residents and improves the government’s bottom line over the long term by reducing residents’ reliance on some social programs. We intend to further support improving the health of our communities through an additional $4.3 million in community wellness and safety initiatives in 2016-17.

This new funding includes $2.6 million to the Hay River Health and Social Services Authority to operate the new Hay River Health Centre which is set to open this year. These funds will also allow patients to remain in long-term care beds at the H.H. Williams Memorial Hospital until the Woodland Manor long-term care facility expansion is complete.

This budget proposes $1.1 million in contributions to the Tlicho Community Services Agency for the operation of the Jimmy Erasmus Seniors’ Home. When the second of two wings is complete this year, 18 beds will be available, an increase from the original eight.

The successful rollout of the new Mental Health Act

depends on adequate funding to support its implementation. This budget proposes $501,000 to help implement this important legislation. The funding will help establish a new review board to ensure the feedback of families, patients, and health care professionals is heard. As well, the funds will help develop assisted community treatment plans for patients so that they can stay in their communities while receiving ongoing care, supervision, and support. This funding will also help develop a training program for all Health and Social Services staff and other professionals involved in implementing the new provisions.

Economy, Environment and Climate Change

Understanding the connections between our economy, the environment, and potential implications of climate change are vital for the future of the NWT. We are actively working with our federal, provincial, and territorial counterparts to develop a pan-Canadian framework for clean growth and climate change. We support the need for Canada to move to a lower carbon economy and want to ensure the development of our natural resources sector continues in an environmentally sustainable and innovative way.

Budget 2016-17 proposes an additional $4.3 million to advance this Assembly’s priorities to support the economy, protect the environment, and address climate change.

The Western Arctic Centre for Geomatics was established to provide geomatic services and research support for lands, resource, and infrastructure management. These services and research will provide the GNWT with better information to improve the stewardship of our lands and resources. This budget proposes a $181,000 increase in the support for the Western Arctic Centre for Geomatics, bringing its total budget to $875,000.

We need better information to manage our water resources and this budget plans to expand our Hydrometric Network Monitoring System by providing $311,000 for the installation and operation of new water monitoring stations. Supporting the sectors of the economy that already contribute substantially to our economy and encouraging growth in new sectors will be critical in the long-term economic health of our territory. The GNWT has developed action plans to further work on the Mineral Development Strategy, Tourism 2020, and the Economic Opportunities Strategy. This budget adds $2.5 million to ensure the success of these actions. This includes $1.2 million for the Mineral Development Strategy to further support geoscience research to build the territory's exploration potential, to increase the Mining Incentive Program to help companies find potential ore bodies, and to support local businesses within the territory to enhance the economic benefit of the mining sector.

Tourism 2020 will help diversify the economy with $825,000 for marketing, research, community and industry engagement, and skills development and capacity building. The Economic Opportunities Strategy will receive $486,000 for tourism product diversification, a convention bureau, and the Film Rebate Program. We continue to make substantial investments in energy conservation and efficiencies and the development of renewable and alternative energy sources and support the efforts of communities to transition to sustainable sources of energy.

Supporting the use of energy efficient technologies in residential, commercial and public sectors is one of the most effective and cost efficient ways to reduce energy use, reduce cost of living, and address climate change. This budget proposes to provide the Arctic Energy Alliance with $3.5 million in funding this year, including $760,000 in additional one-time funding to support a number of new initiatives, including a territorial-wide LED lighting program. We are also investing in alternative energy systems. Wind speed monitoring and project development planning continue towards a wind project in Inuvik and $720,000 is being invested in a solar and high-efficiency generator system in Aklavik. A solar project is also being developed in Inuvik. Over the coming year, we will also be developing a new Energy Plan that will guide our continued investment in energy initiatives in the years to come.

Newcomers to our territory bring experience and skills that enhance our economy. For this reason, this budget proposes to provide an additional $169,000 to the NWT Nominee Program to encourage immigration into the territory.

Looking Ahead

Part of a responsible government is to look past the four-year outlook of this Assembly. With this budget we have charted a course that will align our expenditure growth with our revenue growth and will stop borrowing money to run the day-to-day operations of the government. The efforts taken to hold the line on operating expenses and the increases in revenues take us almost halfway to our goal of protecting our core services and programs and still having resources to invest in strategic infrastructure, while ensuring there is a reasonable amount of available borrowing room under the federally-imposed borrowing limit at the end of the 18thLegislative Assembly. This plan will generate the operating cash surpluses necessary to protect and extend the life of our existing infrastructure and let us begin to address our $3.4 billion infrastructure deficit, including advancing the Mackenzie Valley Highway, building an all-weather road from Highway 3 to Whati, and improving access into the Slave Geologic Province, which were identified in our mandate as the top three transportation infrastructure priorities.

As we continue to work to address the priorities of this Assembly, we must be prepared to make difficult choices to protect the GNWT's long-term fiscal sustainability. While we are almost half way to our $150 million target, we must not lose sight of our goal to find another $82 million in expenditure savings or increased revenues by the end of the 18thLegislative Assembly. This target represents the operating surpluses needed to invest in the health facilities, schools, community infrastructure and transportation critical to delivering government programs and services.

We see the positive results of past infrastructure investments. These investments support government programs and service delivery. We will continue to build infrastructure in a fiscally responsible and sustainable way under the Fiscal Responsibility Policy. We are building health facilities and renovating and expanding schools to deliver health and educational services. We are investing in tourism infrastructure to promote economic development and diversification. We are completing the Mackenzie Valley Fibre Optic Link to allow communities to join the 21

st-

century communication networks and to better deliver government programs. We are providing subsidized rental and homeownership programs for affordable and public housing.

Building the territory's transportation network helps lower the cost of moving goods and people and lowers the cost of living for everybody. Maintaining and retrofitting our own government buildings and equipment maintains and improves service delivery and affordability. Investing in information technology allows us to do more with fewer resources and increase productivity. This Assembly's infrastructure investments will provide a lasting legacy for the benefit of our current residents and future generations.

Conclusion

Mr. Speaker, this back-to-basics budget gives us the fiscal flexibility to address the 18thLegislative Assembly's priorities with actions today and the assurance that we are on a solid course for fiscal sustainability tomorrow.

We recognize the vulnerability of our economy to events outside our borders and the reality that over the longer term, mining, the driver of our economy, may be less of an influence than it is today. Situations outside of our influence highlight the uncertainty of our economic future and are demonstrated by the flat revenue growth forecast over the next four years.

We also recognize that our fiscal policy, whether on the expenditure or revenue side, needs to ensure we fully understand the impacts that our actions have on our economy and that we do not take any actions that will decrease investment and increase the cost of living for NWT residents or the cost of operating for businesses.

These facts reinforce that we must be responsible stewards of the $1.8 billion in revenue that we are estimating the GNWT will receive in 2016-17. Through this budget we have started the difficult task of aligning our expenditure growth to our revenue growth and have produced a plan that will generate sufficient cash surpluses to fund reasonable capital plans in the future. This not only protects our existing infrastructure, but begins to address our $3.4 billion infrastructure deficit. We are addressing this challenge directly with the clear understanding that the cost of doing nothing to put our finances in order will have more serious consequences for government programs and services in the future.

With the support of this Assembly and NWT residents we are on our way to meeting these challenges. Thank you, Mr. Speaker.

---Applause

Masi. I realize that Members are anxiously waiting to get to work on the budget. Colleagues, I'd like to draw your attention to the people in the gallery. The House would like to recognize former Members that are here with us. First and foremost, Ms. Wendy Bisaro, Bob Bromley, and also Roy Erasmus are here with us We also have a special guest, Mr. Billy Erasmus, NWT Grand Chief here with us. We do have, I believe, a couple of chiefs that are here with us, Chief Lloyd Chicot, and also Chief Wilfred McNeely are here with us. Last but not least I'm just introducing Darrell Beaulieu. He's the CEO of DDC. Welcome everyone.

At this time, the House will take a short recess. Please join us in the Great Hall for snacks and refreshments. Masi.

---SHORT RECESS

Masi. Item 3, Ministers’ statements. Minister of Health and Social Services.

Mr. Speaker, the Truth and Reconciliation Commission's Calls to Action highlighted the fact that there is a gap between the health status of Aboriginal people and the rest of Canadians. The recommendations call for all governments delivering health and social services to ensure that services are culturally appropriate and that service providers are culturally competent. The Department of Health and Social Services is committed to achieving that goal, and although we still have a lot of work to do we have made substantial progress led by the wise counsel and advice of a group of respected elders from across the Northwest Territories.

Mr. Speaker, today I would like to recognize the work of the Stanton Elders’ Council. Since 2007 this committed group of volunteers has worked directly with the public administrator and management at Stanton Territorial Hospital to recommend improvements in programming and services which made the hospital more welcoming for Aboriginal people. In 2013 when the department established our new Aboriginal Health and Community Wellness Division we asked the Stanton Elders’ Council to take on an expanded role and work with our staff to make sure we get it right.

Members of this Assembly will have seen the results of the advice of the Stanton Elders’ Council provided, whether it was the implementation of Stanton's Tobacco Free policy or the department's Northwest Territories Cancer Strategy. The Stanton Elders’ Council has advanced work across our entire system and should be commended for their services. Patients in Stanton will have benefitted from the council's advice on access to traditional foods and other services within the hospital. In July of this year we will be saying goodbye to the Elders’ Council as we move to our new Territorial Health and Social Services Authority. Consistent with our emphasis on integrated care and services throughout the system, it is my intent to establish an Indigenous advisory council with broader terms of reference which will provide advice on cultural responsiveness across our system.

Mr. Speaker, the mandate of the 18thLegislative Assembly commits us to working in collaboration with Aboriginal governments and building stronger relationships with communities and stakeholders. I've reached out to Aboriginal governments across the Northwest Territories, invited them to help us design the terms of reference for this new advisory group. Today I'd like to acknowledge the incredible work and dedication of the members of the Stanton Elders’ Council and I would like to thank the following people: Francois Paulette has been the chair for the past nine years; Gabriel Hardisty, Marie Adele Rabesca, Florence Barnaby, Mary Teya, Pat Martel, Robert Sayine, Ernest Pokiak and James Christie. Their contribution to our system has been beyond measure and it will certainly have a lasting impact. I'd like to thank all these individuals for their dedication and hard work. Thank you, Mr. Speaker.

Masi. Ministers' statements. Item 4, Members' statements. Member for Tu Nedhe-Wiilideh.

Marci cho, Mr. Speaker. [English translation not provided.]

Mr. Speaker, today I want to talk about cancer. On May 27, 2016, Donald Beaulieu passed away from cancer in Fort Resolution. Donald was a good ball player, hockey player, dog musher and an overall sports enthusiast. Mr. Speaker, Donald was the first person that I knew in the Northwest Territories that was hired at the Pine Point Mine so that he could be part of the men's hockey team.

Mr. Speaker, Donald was born in Fort Resolution November 15th, 1949. So he was still young enough to be active with the people that played sports in the community. He was considered to be the number one fan by the local ball team. Donald will be sadly missed by his spouse Carol Collins and his children. When he became sick many people came up to me and asked me how Donald was doing. Donald had many friends across the Northwest Territories, including our Premier.

In Tu Nedhe-Wiilideh many people pass away from cancer. The incidence of cancer in the riding I represent is very high. In the past, the people of Fort Resolution always feared the cancer death because of the high rates. The Department of Health and Social Services indicated most cancer deaths are due to lifestyle; however, the people blame the mine that operated across the Fort Resolution Bay from 1961 to 1987. Mr. Speaker, that mine was never fully cleaned up. The Department of Health and Social services has a cancer strategy, and the people would like to know how the strategy is being carried out; if any actions have been identified within the strategy.

The community of Fort Resolution has always had significant concerns about the high rates of cancer in their community. Also, many people from Fort Resolution have worked at that mine. Donald Beaulieu is an example of that person. He grew up in Fort Resolution as a child and worked in Pine Point and returned to Fort Resolution. Mr. Speaker, can I seek unanimous consent to conclude my statement.

---Unanimous consent granted

Sorry, Mr. Speaker, I had advised everyone that we were going to try to keep it to two and a half minutes but I spoke in the Aboriginal language and I assumed that I was getting an extra 30 seconds. Mr. Speaker, it appears that health professionals cannot make a connection between the cancer rates and Fort Resolution and the Pine Point Mine. However, local people have always said the two must be linked. Health experts continue to blame lifestyle choices in Fort Resolution. Local people say there is something in the water that diminishes their abilities to fight cancer. The people of the communities want to know what the overall plans are to prevent cancer in the communities. Later on today, I'll have questions for the Minister on the Cancer Strategy. Thank you very much, Mr. Speaker.

Masi. Members’ statements. Member for Deh Cho.

Mahsi, Mr. Speaker. Mr. Speaker, the residents of Kakisa were left in the dark earlier this year when the power went out in the community. Northland Utilities distributes power to Kakisa from a diesel generator plant at Dory Point. It's believed that the lines were knocked down by heavy snow. Some people were away from their homes at the time and came back to find their houses frozen up costing hundreds of dollars to repair damages from frozen pipes.

Mr. Speaker, the transmission lines were repaired, but if the power goes out again there is no backup. As government moves forward with another Energy Plan, I urge Cabinet to remember our goals of getting communities off diesel and provide reliable electrical power to all residents. We have a great opportunity for innovation. Kakisa is made up of 60 to 70 people. Small-scale power generation is entirely feasible. Just look at the man in Inuvik who is now completely off the grid because he installed a solar array on his property. Just look at Colville Lake, Mr. Speaker. Yes, they run diesel generators but they also recently installed solar panels that provide power to the community. Once in a while they can shut off the generators and enjoy the sounds of the settlement before it depended on fossil fuels.

Mr. Speaker, the Government of the Northwest Territories must look at ways to reduce the cost of providing power to communities. Not everyone has the resource or skills to install and operate their own solar array, but working together we can do something for an entire community. We can encourage people to take ownership of a functional system that benefits everyone. Mr. Speaker, Kakisa in the sunny Deh Cho is an ideal place to repeat the successes we're seeing in Colville Lake. Let’s stop talking about getting communities off diesel and focus on making the most of our renewable resources to provide efficient and reliable power to our rural and remote communities. Mahsi, Mr. Speaker.

Masi. Members’ statements. Member for Yellowknife Centre.

Mahsi, Mr. Speaker. Mr. Speaker, last month I had the pleasure of attending the Skills Canada NWT Regional Competition. As I walked through the venues I saw dozens of young people perfecting their skills in an impressive variety of fields from hairdressing to electrical wiring, from making a film to making a meal. I found all this activity inspiring. While 19 per cent of the labour force includes youth who are not in school but who want to work, there are many others who are working hard now to ensure their future employability and income.

The following day the GNWT released its Labour Market Forecast and Needs Assessment for the next 15 years. Here is the headline: 78 per cent of job openings will require a post-secondary certificate, diploma or degree. That means the incoming workforce will need a solid set of skills to work in almost any field. Those without high school will be eligible for only 10 per cent of the jobs, and it's important to note that most of the job openings will replace people who are now employed, who will retire or leave in the next 15 years. If we drill down into the study there are at least two more findings that are noteworthy. The first is that young people from rural and remote communities are more likely to be unemployed and to not have post-secondary training. In fact, one-third don't complete high school at all.

The report describes literacy and numeracy skills as inadequate in the Aboriginal population when compared to the non-Aboriginal population. As a result, special attention is required to close achievement and performance gaps between these two groups. The reward for closing this gap is substantial according to the study. An Aboriginal man with a bachelor's degree in the NWT makes on average $193 for every $100 he would make with a high school diploma. So college and/or university will double your income. That's a powerful incentive.

The second noteworthy point concerns the fly-in/ fly-out workforce. In 2014 there were almost 2000 people working in the NWT but living somewhere else; a total of 10 per cent of the workforce. Since this is worth $60 million to the GNWT in territorial transfer fund payments, it's an important gap to close as well. At the appropriate time, I'll have questions for the Minister of Education, Culture and Employment. Thank you.

Masi. Members’ statements. Member for Frame Lake

Mahsi, Mr. Speaker. Now that the Finance Minister has revealed the contents of his budget, our Regular MLAs, media and the public at large may be wondering what the past 12 months of austerity messaging of gloom and doom have been all about. For the past year, this government has barely made a public statement that wasn't prefaced with a reminder that this government must find money, now set at $150 million, through cuts or more revenues.

The public and our civil service have lived in anxiety at the prospect of deep cuts. Businesses, investors and homeowners have been warned of lean times. People considering a move to the Northwest Territories may have had cause to consider whether a move north is such a good idea with layoffs and reduced spending. As it turns out today, this has been much ado about much less than we have been led to fear. As the Minister of Finance reported today, removal of $27 million in program spending that sunsetted last year and $31 million in program reductions in this fiscal year are more than offset by $35 million in new initiatives and $29 million in forced growth. So spending will actually be higher than last year at 0.9 per cent, almost matching the rate of inflation.

In all, Cabinet's messaging over the past year has been counter-productive. Throughout this budgetary process, Regular MLAs have been firm in insisting that drastic austerity measures will not be supported and cause more harm through removal of spending in local economies. Just as the federal government has turned to fiscal stimulus and messages of hope and change, our government is turning in the opposite direction. While the budget may not seem as harsh as was expected, there will be real losses for the 58 GNWT employees that may be out of work, and in the wider economic impacts.

One has to wonder what the point of all of this has been. Throughout, Cabinet has based the budgetary discussion on the belief that programs and services must be cut to generate surpluses for unspecified capital projects like the so-called "Roads to Resources." Throughout the budgetary discussions, Members have insisted that this approach is not a foregone conclusion. Continued reliance on big capital projects does not provide the economic diversification and development of local economies this territory needs in order to build economic stability and get away from the boom and bust as we have all agreed in our priorities for the 18thAssembly.

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

---Unanimous consent granted

Mahsi, Mr. Speaker. Now we'll turn to debating the budget and the public will have the opportunity to see where and how hard the axe has fallen and where we'll be devoting public funds to pursue opportunities. Over the coming days, I'll have questions for the Ministers on their vision for our economy, environment and society, and how a more forthright budgetary dialogue could improve cooperative development of tomorrow's NWT. Mahsi, Mr. Speaker.

Masi. Members’ statements. Member for Nahendeh.

Thank you, Mr. Speaker. Today, Mr. Speaker, I would like to address a number of things regarding our ferry services at Fort Simpson. First off, I would like to thank the Department of Transportation Fort Simpson's staff, both in the office and out in the field, for the great service they provided. They are very much about serving the people of the NWT and I thank them for this. Mr. Speaker, I continue to fully support the Fort Simpson Chamber of Commerce's efforts to have the M.V. Lafferty's hours of service extended by two hours every morning. During my election campaign I spoke to a number of business owners and staff of the department and a number of constituents about this matter.

I have determined that the increase in the hours of service would create a number of benefits including:

● giving the community an extra two hours of ferry service daily;

● opening the ferry at 6:00 a.m. means the community is open for business earlier and allowing businesses and people the opportunity to go to Hay River, High Level and Yellowknife and return home on the same day, helping to save costs;

● people traveling out of town, whether for business or pleasure, will have two extra hours of travel time;

● road maintenance staff will be able to get out on the roads quicker and get working on the roads to make them safer for travel for all residents;

● supplies and services to the highway camps will happen in a more timely manner;

● safety and emergency services will be extended;

● the extra hours could potentially require an additional ferry crew, resulting in additional local employment.

Mr. Speaker, I have been speaking with the Minister on this matter and doing everything in my power to promote the extension of the ferry hours in time for the 2016 ferry season. Unfortunately, this hasn't been successful. I have stressed to the Minister that there is no local support for creating the extension by stopping ferry service for two hours in the afternoon. The community and region want the same service that was offered at the Fort Providence ferry crossing that served the people north of the lake. Mr. Speaker, additionally, I believe the Department of Transportation needs to study the idea of moving the ferry landing further up the Liard River to get away from the low spots at the current location as well as the potential of building a floating bridge or causeway using the islands further up the river.

Mr. Speaker, I hope the Minister and department will be visionaries and seriously look at these ideas and work with the community's political leaders, business leaders, and the residents of the Northwest Territories to make it happen. Later today I'll have questions for the Minister regarding this statement. Thank you, Mr. Speaker.

Masi. Members’ statements, Member for Mackenzie Delta.

Thank you, Mr. Speaker. Mr. Speaker, earlier this year, I spoke in this House about the elders' home under construction in Fort McPherson. As I said, the Hamlet Council of Fort McPherson has supported this project since February 2010, and the council, not to mention the elders and other residents of Fort McPherson, are eager to see the units in operation. Communities all over the Northwest Territories face housing challenges, Mr. Speaker, and our elders and seniors are strongly affected. Fort McPherson is no exception, and our elders deserve quality shelter and our support as they age in their home communities.

The elders' home under construction in Fort McPherson, with eight units for residents and one for a caretaker, will be able to do that, Mr. Speaker. In fact, it is supposed to be doing that by this November. But since last July, only pilings appear at the site. I was told that work stopped last August after the contractors hit water. Since then, residents raised their concerns that the building site was traditionally swampy ground. Is this why work seems to have stopped? Don't get me wrong, Mr. Speaker. I support this project. The facility is much needed, and will show our support for our elders right in their home community. Construction projects like this one are also a great opportunity to create local jobs.

Mr. Speaker, we need an update on the status of this project, and we need an explanation of the delays. Later today, I will have questions for the Minister responsible for Northwest Territories Housing Corporation. Thank you, Mr. Speaker.

Masi. Members’ statements. Member for Nunakput.

Masi. Members’ statements. Member for Hay River North.

Thank you, Mr. Speaker. Earlier, the Minister of Finance pointed out that there is money in this budget to allow the residents of a long-term care unit at H.H. Williams Hospital to remain in their homes. Given that we have no other long-term care beds available in Hay River, I'm excited to hear that the government isn't evicting my Nana or the other residents of long-term care. This highlights an important and urgent issue. On February 29th, the Long-Term Care Program Review was tabled in this House. It states that in 15 years, Hay River will require 46 long-term care beds. Right now, we have 25. Despite this, the Finance Minister also just announced that the government is moving forward with what I understand is a $10 million plan to reduce the number of long-term care beds in Hay River from 25 to 24.

Mr. Speaker, I want to make sure everyone understands this government math: 25 beds plus $10 million equals 24 beds. Well, we must be getting a brand new 24-bed facility, right? Wrong. We're building a new nine-bed facility and closing our ten-bed facility. Our other 15 beds are in a 27-year-old building nearing the end of its life. Furthermore, the new facility is being built on a site that currently doesn't allow for future expansion. This project clearly does not address our needs. The government dropped the ball when the long-term care beds were omitted from the new health centre, and it's dropping the ball again. I understand that this project was envisioned years ago when our needs weren't fully understood. Now that they are, why don't we take this $10 million we've committed to this project and put it towards a larger facility? On this very issue, Minister Abernethy has said that we need to think outside the box and make sure to get the "best bang for our buck". I'm calling on the government to do just that: re-examine this project and find a better option. Once we break ground, it's going to be too late to change course. The taxpayers will be on the hook for millions and we won't be any further ahead. I will have questions for the Minister of Health and Social Services. Thank you, Mr. Speaker.

Masi. Members’ statements. Member for Yellowknife North.

Thank you, Mr. Speaker. Mr. Speaker, I rise today to speak on an issue of public safety and security that affects residents in the Northwest Territories: the provision of a 911 emergency telephone service for northern communities. Just over a month ago, Yellowknife lost a 35-year-old business in the city to a massive fire. 911 was called, but the call didn't reach emergency responders. Instead, the fire hall had to be alerted by someone driving there. The business was lost, along with the associated jobs and economic activity. Thankfully, it was no worse than that. The City of Yellowknife has long been a supporter of 911. Other NWT municipalities are on board too. In the previous assembly, the Department of Municipal and Community Affairs studied the viability of a 911 service and concluded that we are very well positioned to implement it.

So why haven't we moved ahead? We invite visitors to join us in the North through our tourism promotion, our film and television industry, our festivals, fishing camps, canoe trips and hospitality industry. At the same time, we have recently experienced severe fire seasons. We can be grateful for a cool and quiet month of May, but we have the lesson of Fort McMurray to know how important it is to be prepared for emergencies and mindful of public safety. A basic 911 service has been budgeted to cost just over half a million dollars to establish, and only $266,000 a year to operate. Last year, MACA noted that the research is complete for a 911 system. The Standing Committee on Government Operations has recommended that since the value of life-saving potential of a 911 system far outweighs the small cost, it urged the department to move forward with 911. Now is the time for concrete steps to put this important public safety system into place. Mr. Speaker, I'll have questions for the Minister of MACA at the appropriate time. Thank you, Mr. Speaker.

Masi. Members’ statements. Member for Sahtu.

Thank you, Mr. Speaker. Like some of my other colleagues, this is my first budget presentation to be a partner with. It saddened me to say here during our reception, I just found out from the Fort Good Hope leadership our elder, Bernadette Manuel, who is in the Stanton Yellowknife Hospital right now is going to be taken off life support, so I ask my colleagues for support so I can dismiss myself to be with the elder. Growing up, she was a great giver of hospitality and generosity, and I think it is only respectful that I show her the same, so I thank my colleagues. Thank you, Mr. Speaker.

Masi. Members’ statements. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. Member for Nahendeh.

Thank you, Mr. Speaker. Today, Mr. Speaker, I would like to recognize three people in the gallery here. Respected elder from Wrigley, Gabe Hardisty, Mr. Nitsiza from Behchoko, Yellowknife, or wherever, colleague and friend, and Ms. Jennifer Williams who I had the opportunity to perform her wedding in Fort Simpson on Mackenzie/ Fort Liard River. Thank you.

Masi. Recognition of visitors in the gallery. Member for Nunakput.

Thank you, Mr. Speaker. Mr. Speaker, I wanted to recognize Mr. Ernest Pokiak, who is one of my constituents and also a member of the Stanton Elders’ Council. Also my high school buddy, Mr. Dolphus Nitsiza. Welcome.

Recognition of visitors in the gallery. Member for Inuvik Twin Lakes.

Thank you, Mr. Speaker. I am pleased to recognize my wife, Judy, who is with us in the gallery today who came down to support me during the Budget Address. I appreciate her being up in the gallery. Thank you very much.

Recognition of visitors in the gallery. Member for Thebacha.

Mr. Speaker, I would like to recognize the mayor of Fort Smith, Lynn Napier-Buckley, who is in the gallery. I would also like to recognize the victim services coordinators who are here. Unfortunately, I don't know all of their names but I would like to acknowledge and recognize them. I think they are at the back row. Thank you.

Recognition of visitors in the gallery. Member for Range Lake.

Thank you, Mr. Speaker. I would like to recognize three members of the Status of Women Council, Lorraine Phaneuf, Annemieke Mulders, and Samantha Thomas. Thank you for being here. We appreciate it. Lyda Fuller from the YWCA was here. I am not sure if she is here any longer. Amanda Mallon who was a huge help within my campaign. Faith Woodruff who used to be our prenatal worker and went to the government, so glad to have you on this side because she was a great prenatal worker. And David Wasylciw, who is within the Range Lake constituency. Thank you.

Masi. Recognition of visitors in the gallery. Member for Inuvik Boot Lake.

Thank you, Mr. Speaker. I would like to recognize the constituent of the riding Inuvik Boot Lake, Ms. Judy McLeod. Welcome. It is always great to see you here. I would also like to welcome the victim services coordinators. I appreciate all the work that you guys do throughout the Northwest Territories and also like to thank the Stanton Elders’ Council for the work, guidance, and wisdom that you have shown us throughout the Northwest Territories as well. Thank you.

Recognition of visitors in the gallery. Member for Great Slave.

Thank you, Mr. Speaker. Mr. Speaker, earlier today I talked about the work of the Stanton Territorial Hospital Elders’ Council. I wanted to take this opportunity to once again thank the members for their contributions and their dedication to ensuring that our health and social services are culturally appropriate and that service providers are culturally competent for the people that we serve. I would like to recognize a couple of the members of that council that are in the audience today. Gabriel Hardisty, Ernest Pokiak, Mary Teya, as well as Florence Barnaby are with us today. Mr. Speaker, I would also like to recognize Faaizah Joita from the Great Slave riding, who is one of our pages here today. She is a grade 7 student from William McDonald School and is paging for us this week. I would like to thank all the Pages for the incredible work they do and for being here with us today. Thank you, Mr. Speaker.

Masi. Recognition of visitors in the gallery. Member for Frame Lake.

Mahsi, Mr. Speaker. There were a lot of friends and even family in the gallery today. Not so sure if she is still here, she may be sitting behind me, but I did want to recognize my wife, Suzette Montreuil. Merci.

Masi. Recognition of visitors in the gallery. Member for Mackenzie Delta.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize a well-respected elder in Fort McPherson, Mary Teya. I seen her earlier in the gallery. Thank you, Mr. Speaker.

Recognition of visitors in the gallery. Member for Deh Cho.

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize several people from my riding. Chief Lloyd Chicot from the Kakisa First Nation. At the same time, I would like to acknowledge and recognize the National Chief Bill Erasmus from the Dene Nation as well, also some former elders that I had worked with in our community, especially Elder Gabe Hardisty from Wrigley First Nation. I don't know if he is still in the audience, but perhaps other members that might be here from the Elders’ Council including James Christy. Mahsi, Mr. Speaker.

Masi. Recognition of visitors in the gallery. Member for Yellowknife North.

Thank you, Mr. Speaker. I would like to take this opportunity to recognize a resident of Yellowknife North, also a former fellow Yellowknife city councillor and assistant to former MLA Wendy Bisaro, Ms. Amanda Mallon. Thank you.

Masi. Recognition of visitors in the gallery. Member for Yellowknife South.

Thank you, Mr. Speaker. I am pleased to recognize a constituent of Yellowknife South, Gayla Thunstrum. Also three Pages from Yellowknife South, Anika d’Argencourt, Emelia Robertson, and Richard Epelon. Thank you, Mr. Speaker.

Masi. Recognition of visitors in the gallery. I would like to recognize also Roberta Daniels who is here with us from Behchoko. And also Dolphus Nitsiza from Behchoko as well. Welcome. All those individuals in the gallery joining us here today, welcome. It is always nice to have an audience in the gallery. Masi. Item 6, acknowledgements. Item 7, oral questions. Member for Nahendeh.

Mr. Speaker, today you heard my Member’s Statement about the ferry service in Fort Simpson. Mr. Speaker, the Minister of Transportation did attend a Chamber of Commerce meeting in Fort Simpson regarding this issue on May 12th. I thank him for attending that and speaking on behalf of the government. The next day, on May 13th, I sent the Minister a question and asked has the department done a cost analysis of operating the ferry service for those extra two hours. The response I received today was: “the Department of Transportation acknowledges a question received from the Chamber of Commerce to extend the operation hours of the M.V. Lafferty Ferry. However, due to the current fiscal reality, the department is unable to provide the two-hour extension. The Department of Transportation will continue to work with the community to optimize the ferry hours while recognizing the existing fiscal conditions affecting all of the government, GNWT.” Unfortunately, he did not answer my question. Therefore, can the Minister please tell the House if a cost analysis was done on this request, and if it was, when? Thank you.

Masi. Minister of Transportation.

Thank you, Mr. Speaker. I thank the Member for his question on the ferry hours and the opportunity to meet with the Chamber in Fort Simpson. To my knowledge, to date we haven't done a complete cost analysis on the ferry for extending it by two hours for this particular. Thank you, Mr. Speaker.

I thank the Minister for this answer. However, then, how can the Minister come out and say that due to fiscal restraint or fiscal responsibility we can't do anything without a study being done? Thank you. Can you please explain that?

As the Member alluded to, how can we do a cost analysis? We are presently, I believe, undertaking this under his request. We haven't totally finished it to date. But the reality of the fiscal situation we are in, if we were to extend the ferry hours for the M.V. Lafferty in Fort Simpson, we would probably have to look at doing this for all other ferry systems within the Northwest Territories. Any solution that we would come towards with the community of Fort Simpson would have to probably be extended to other communities across the Northwest Territories. I must remind the Member that any solution that we work out with the communities needs to be within the fiscal realities and the regular territory framework of the Government of the Northwest Territories.

I again thank the Minister for his answer. I am a little confused with the responses that I got in my e-mail and today. It is a little bit different. Can the Minister please provide me with a historical cost to operate all the ferries of the NWT for the past three years including any over time?

Yes. We can provide that to the Member.

Masi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker. I thank the Minister for his answer. I look forward to getting that information. Mr. Speaker, will the Minister have his department look into the feasibility of moving the ferry landing further up the yard to get away from the low squats at the current location and alternatives such as a floating bridge or causeway using the island further up the river as part of their strategic plan? Thank you, Mr. Speaker.

As the Member knows, we have a 25-year strategic transportation strategy, and we look at all aspects of transportation across the Northwest Territories. I don't believe that this particular request is in there. But we can certainly have a quick study on it. One thing about moving that would be looking at realigning the highway and other things as such to doing that, which would be a great capital cost to the Government of the Northwest Territories. But I can talk to the department about it and get back to the Member.

Masi. Oral questions. Member for Nunakput.

Thank you, Mr. Speaker. Mr. Speaker, earlier I spoke about elders’ care and I have some questions for the Minister of Health and Social Services. Mr. Speaker, my first question: what care facilities and services are currently available to Ulukhaktok elders? Quyanainni, Mr. Speaker.

Masi. Minister of Health and Social Services.

Thank you, Mr. Speaker. Mr. Speaker, the health and social services staff in the community health centre provide elders in Ulukhaktok with support and nursing services in accordance to their needs. There is one home support worker in the community, as well as a community health nurse dedicated to providing some home-care services. The authority has a temporary, community social services worker who will be transitioning into the community next week, which I think is fantastic news. The health staff are supported by teams of professionals in the Beaufort Delta as well. So the seniors can get services from the health centre if they need acute care services or emergency-type services. Within the community, as far as units or housing facilities, there is a four-plex within the community that is available for seniors through the NWT Housing Corporation. Thank you, Mr. Speaker.

Mr. Speaker, my second question: what activities does the department take in 2016-17 to support Ulukhaktok elders?

Mr. Speaker, within the community specifically, there are a number of things that are happening. The Department of Health and Social Services is funding the Beaufort Delta Health and Social Services Authority to provide things like the elders’ afternoon tea program for elders so that they have the opportunity to get out of their homes and access resources and avoid social isolation, which many seniors across the North can face.

The authority is offering a variety of services in the community of Ulukhaktok to support elders, including assisting elders to complete forms and applications, some advocacy, facilitating referrals to other resources as required for the individual elders. There is some counselling available. Services for elders which we hope to enhance when we get that actual incumbent in the community, which is something we have struggled with in the past. We do have some different Elders’ Day events, like I have already mentioned. There are also activities planned in June to celebrate Elders’ Month. The authority will also be pursuing a joint presentation with the RCMP, the YCFC to co-facilitate a community presentation on elder abuse. There are a number of things that are happening specifically targeting the communities to provide support to the elders who do live there.

I thank the Minister for the response to that question. Mr. Speaker, as indicated earlier, there is a growing need for an elders' home in Ulukhaktok. Does the Department of Health and Social Services plan to build another facility for elders?

Mr. Speaker, as I already indicated there is a four-plex in the community for independent living for seniors in the community already which is supplied by the NWT Housing Corporation. When the Member made his statement, I had an opportunity to check with the Minister of Housing to see if there are any plans to put an independent living unit in the community or any additional independent living units. The Housing Corp is doing a needs survey across the Northwest Territories to determine where some of that need exists, at which point, I am certain they will get feedback from Ulukhaktok to help determine their needs. I would strongly encourage the Member and the community to provide the Housing Corp with that input.

With respect to long-term care facilities, we do have the long-term care report in front of us that demonstrates a shortage of 258 beds across the Northwest Territories. A number of those beds have been identified in the Beaufort Delta, and we are looking at working with the region and the communities to help us figure out how to move forward to put in those long-term care beds. Those long-term care beds right now are targeted for Inuvik as a regional centre. We try to keep people in the communities and in their homes as long as possible. Then they have to transition to independent living. Then they have to transition to long-term care. That long-term care plan is going to be for the region, but likely located in Inuvik.

Masi. Oral questions. Member for Yellowknife Centre.

Thank you, Mr. Speaker. Mr. Speaker, I would like to just begin by saying that I misspoke during my statement by saying that there were 20,000 non-resident workers. In fact, the right number is 2,000.

My questions are for the Minister of Education, Culture, and Employment. The Labour Market Forecast and Needs Assessment provides some valuable insights into the nature of the job market to come. But it is weak on the topic of how new workers will be attracted to the territory. The resident work force is forecasted to both age and shrink, so much so, the report says, that the conditions may "limit the territorial government's capacity to deliver public services." What steps is the government taking to attract new workers to prevent this outcome? Mahsi, Mr. Speaker.

Minister of Education, Culture and Employment.

Thank you, Mr. Speaker. As you heard in the budget address that our Minister of Finance had mentioned, we are also reaching out to students who are graduating with the $2,000 forgivable loan if they come up and do some work in the Northwest Territories. That is one area that we are working in.

We are also developing an action plan based on the labour market report. We are going to be working with Aboriginal governments, industry, business, and our education and training partners. As much as we want to attract residents to the Northwest Territories to fill in some of these positions, we also got to make it a priority to educate, train, develop skills within our own northern labour workforce as well. So we do have some programs, through our student financial assistance incentive programs, as well as working with some of our partners to ensure that we can get some of the skilled labour workforce from the south into the Northwest Territories. Thank you, Mr. Speaker.

Thank you to the Minister for that answer. The labour market forecast says that from 2015 to 2030 the NWT will need to recruit 777 elementary and kindergarten school teachers, as well as 577 secondary school teachers, 448 early childhood educators and assistants, and 382 college and vocational instructors. It is just staggering numbers. How is that going to happen?

This is the first time that the government has done a comprehensive review of the labour market needs, the demands of our jobs, in the Northwest Territories. It is something that we are building on. We have our post-secondary education partners that we are working with to try to develop some of these programs. Aurora College is going to be embarking on a strategic plan this summer and the program will be better aligned with the labour demands that we are seeing through the Labour Market Needs Assessment. All this stuff is brand new.

Like I said, this is the first time the Northwest Territories has done a comprehensive report like this. It is setting the stage for the decisions that we have to make as a government moving forward in the areas that are shown and identified in that needs assessment. As we have just seen the needs assessment now, we are going to be developing an action plan that will be hopefully tabled in the House in October that is going to identify how we move forward and address these needs in the years to come.

Thank you to the Minister for that answer. One of the things that seems to be a gap in this labour market forecast is that it looks primarily at the non-renewable resource sector jobs rather than some of those which might be part of diversification. I am wondering why the report did not look at diversification, for example filmmaking, traditional economies, agriculture, manufacturing, and so on, rather than concentrating on the declining sector of our economy.

When the work went out in terms of developing this comprehensive agreement, we got input from all the stakeholders across the Northwest Territories, a lot of it did come from the business side sector. But we also got other programs in place such as the culture and heritage framework and action plan. We also continue to provide funding for arts and culture initiatives.

When it was done, we had municipal governments, Aboriginal governments, business, industry, community members, all providing input into this Labour Market Forecast Needs Assessment. I think maybe some areas were just discussed more than others. But we did get a wide range of input from all sectors of the Northwest Territories.

Masi. Oral questions. Member for Yellowknife Centre.

Mahsi, Mr. Speaker. Thank you to the Minister for his answer. The fact remains that this forecast has gaps when it comes to renewable industry research or employment opportunities. I am wondering if there is a plan to do the same kind of research on them as has been done with the non-renewable resource sector. Thank you, Mr. Speaker.

As mentioned, we are going to be developing an action plan that hopefully will be tabled in the House in October, and we will be making sure that those areas are discussed as well. We will see what the action plan comes out of. We will be, once again, discussing that with our industry, business, our education, training partners, and Aboriginal and municipal governments.

Masi. Oral questions, Member for Frame Lake.

Merci, Monsieur le President. I have questions for the Minister of Finance. First off, I would like to learn more, and the public deserves to know, how the government has studied and analyzed the impacts of the 58 GNWT job cuts in the budget, including the impacts on the territorial economy as a whole. In planning these cuts, did the government analyze how these job losses would take money out of the economy and our tax and transfer revenues and pursue cuts that were proven to have the least negative impact in these areas? Mahsi, Mr. Speaker.

Masi. Minister of Finance.

Thank you, Mr. Speaker. I made the commitment while we were meeting with committee in Committee Room A that we would do the work in analyzing the effects that it would have. Historically, we have always been able to accommodate a lot of those folks that have been affected in moving them to other departments, and we are continuing to do that work. We will continue to keep committee apprised. In the briefing that I had with committee the other day, I did make a commitment that we would come before committee every Monday and give them an update on the work that we are doing to accommodate all those that are affected. Thank you, Mr. Speaker.

Thank you to the Minister for that response. We all know that loss of jobs in the public service ultimately results in loss of jobs in the private sector as customers move away or they stop spending. I have heard that for every ten government jobs cut in our economy, five jobs will be lost in the service sectors. What multiplier did the government use to evaluate the impact of government job losses into the private sector in the wider NWT economy?

We are doing what we can to mitigate the impact of the reduction exercise that we are going through. I think we have been fortunate so far. We have been able to accommodate a lot of those folks that have been affected. I think the number is quite low right now. I did share that number with committee the other day. As I said, we will continue to update them on the work that we are doing to accommodate those few government employees that are left.

I don't think I actually got an answer on the question about multipliers. But I also want to ask the Minister what this government has predicted from the job cuts in terms of losses to personal income tax, payroll, and other taxes and then the territorial transfer payments.

Mr. Speaker, I did make a commitment in the past that we do our work in trying to analyze the effects that it has on the NWT. We will continue to do that work. We share that with committee. For the particular detail on that, I don't have that detail right now as to what do I think we are going to lose if ten people leave the Northwest Territories. But we are doing what we can to mitigate the effect on the NWT as a whole.

Masi. Oral questions. Member for Frame Lake.

Mahsi, Mr. Speaker. I want to thank the Minister for his response. It is helpful to tell committee but I would prefer that he actually table that information in the House. Lastly, I want to ask about the job losses and if the Minister would be willing to table in this House a list of the communities where the cuts will be made and how many jobs will actually be lost in each community. Mahsi, Mr. Speaker.

I would be willing to share that information. I think I have shared it in the past. As we go through the budget, the committee of the whole process, I think there is an opportunity there too where a lot of the positions would be identified. I will commit to gathering the information and sharing it with the Member. It will be out there in the public as well.

Masi. Oral questions. Member for Tu Nedhe-Wiilideh.

Thank you, Mr. Speaker. Mr. Speaker, in my Member’s statement, I talked about the Cancer Strategy for Department of Health and Social Services. I have questions for the Minister. I would like to ask firstly, Minister, were there action plans put in the Cancer Strategy, action items that will be done this fiscal year? Thank you.

Masi. Minister of Health and Social Services.

Thank you, Mr. Speaker. The Cancer Strategy actually does come with a number of items that are falling from the strategy itself. The strategy includes specific supports to help communities, help individuals, make healthy choices by focusing on healthy eating through gardening and education, continuing to hold sharing circles, which we have seen has been quite effective in helping people deal with the issues. We do have funding that we have provided to different communities to support tobacco prevention for youth. The strategy commits us to find ways to increase education awareness so people can take advantage of cancer screening at the end of the day. Mr. Speaker, it is going to be incredibly important for people to attend the Well Man and Well Woman clinics to get early diagnosis. Early diagnosis is going to give us better results. There are a number of things that are direct actions that are available to communities and regions to help us fight and prevent cancer as much as possible. Thank you, Mr. Speaker.

Mr. Speaker, within those action plans, I would like to ask the Minister which particular preventive measures does the department see as a priority within the Cancer Strategy?

Mr. Speaker, the evidence shows that one of the best ways to combat cancer is to prevent cancer, which is why we are focusing on healthy eating initiatives and encouraging people to get their exercise. We are doing this in partnership with a number of different groups. There is fantastic work being done by sports and recreation, Sport North, the Department of MACA, to encourage people to be active. ITI is doing a number of fantastic things with respect to supporting agriculture as an economy, but also supporting small local gardens. We have had a number of individuals apply for money through the anti-poverty funding to support community gardens. So we are trying to encourage people to eat healthy, be active, and live healthy. But also, we are encouraging people to get early screening. We are working with communities on finding ways to encourage people. What is it going to take to encourage people to attend the Well Woman and Well Man on a regular basis in order to get that screening done early?

I would like to ask the Minister if he can direct the department to do some specific work with the community of Fort Resolution in developing an action plan to augment the cancer strategy.

Mr. Speaker, I hear the Member. I think it is important for us to be in partnership with Fort Resolution. But I wouldn't suggest that we should be developing the action plan. I think it would be better if we work with the community through their community wellness plans, work with them to develop a strategy that works for them. We could develop a strategy, but I would hate to impose it on any community.

I would like to sit down with the Member and maybe the representatives from the community and talk about how we can work through the community wellness plans and build upon the important work or good work that has been done in other jurisdictions. By way of example, Fort Good Hope has done some incredible work around sharing circles and cancer circles that the community of Fort Resolution could seriously learn from. A real opportunity to build upon the good work that has been done, but also tailor something specific to a community. I won't commit to developing the strategy or an action plan, but I sure would like to sit down with the community and see what opportunities we have to work together to support them in the development of a plan that meets their needs.

Oral questions. Member for Tu Nedhe-Wiilideh.

Thank you, Mr. Speaker. Mr. Speaker, I am happy with that response. Can the Minister provide me a timeframe as to when the department can start working with the community? Thank you.

Mr. Speaker, I do believe the community and the department already work together through the Aboriginal health and community wellness division on their wellness plan. We do have a significant amount of people working on the Cancer Strategy. What I will do, Mr. Speaker, is I will ask the Member through you to maybe work with the community to get in touch with us and have a conversation. I couldn't tell you the timeline because we have never been contacted to this degree in this nature. I think there is an opportunity here. So I would say let's work together. If the Member can put us in touch, we can start having discussions, work out a timeline together. Thank you, Mr. Speaker.

Masi. Oral questions. Member for Yellowknife North.

Thank you, Mr. Speaker. My question is for the Minister of MACA. Mr. Speaker, as I mentioned in my Member’s statement, a 911 emergency telephone service has the potential to be an important public safety measure. Such a system would be available for a relatively low initial cost and a relatively low annual operating cost. The risks of not having such a system are clear. During previous Assemblies, the government has engaged key participants in a 911 stakeholders group and engaged a study which concluded that the NWT is well positioned to implement 911. Mr. Speaker, I'd like to ask the Minister, would the government be willing to restart the discussion with Members about this important basic public safety measure? Thank you, Mr. Speaker.

Masi. Minister of Municipal and Community Affairs.

Mr. Speaker, 911 has been on the radar for the past assemblies and it received a lot of attention. There's a lot of work that's gone into it. We had a working group that was set up to analyze the implementation and how we could work 911 into the system. That work is being done, as the Member correctly stated. But to his question, 911 is not really a part of the NWT mandate, the mandate we just put together, but recognizing that it is an important safety service that's required across the NWT, I will commit to the Member that we will continue to have discussion on 911 service and how we can get the necessary funding to implement this so the discussion will carry on, Mr. Speaker. Thank you very much.

Thank you to the Minister for his reply. That appears to be a positive response. Mr. Speaker, would the Minister be willing to engage with other stakeholders to seek support for funding and partnerships to make a 911 service viable?

Mr. Speaker, absolutely, if there is opportunity for us to find other stakeholders or other community governments and that, we can partner up with them and we will explore all options in how we can move this forward. We have done a lot of work across the jurisdiction, across the country to see what their successes have been with the implementation and which systems might work best for up here. I think we have basically come up with a plan. The next step now is to identify finances, to try and implement across the NWT, and it's one of the reasons we go through the exercise that we go through so we can free up some funds that we are able to invest into initiatives like 911.

Finally, Mr. Speaker, will the Minister then commit to revisiting the possibility of establishing a 911 emergency telephone service for the NWT during the life of this assembly? In other words, what would be the expected timeframe to actually have a service in place?

Mr. Speaker, the Member has already raised it as an issue that continues to be on the radar. We have had a lot of the work done, the research work done, and so we know where we need to go. We know what it's going to cost, so our challenge now is to come up with the funding to try and implement this, see where it's going to work best. But as far as during the life of this Assembly, it would be ideal to -- because this work has been going on, I think, for the last eight, nine years, so if there is an opportunity to do it during the life of this Assembly, we will certainly explore that.

Masi. Oral questions. Member for Hay River North.