This is page numbers 971– 988 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 work.

Members Present

Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Robert McLeod, Mr. Nadli, Mr. Nakimayak, Mr. O’Reilly, Hon. Wally Schumann, Mr. Simpson, Mr. Thompson, Mr. Vanthuyne.

The House met at 10:00 a.m.

---Prayer

The Speaker

The Speaker Jackson Lafferty

Good morning colleagues. Item 2, Ministers' statements. Minister of Finance.

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. Mr. Speaker, I want to take this opportunity to update the Members and residents on our fiscal situation.

The passage of the first budget of the 18th Legislative Assembly in June, just four short months ago, was the start of our commitment to three objectives in our fiscal strategy. First, we need to ensure we demonstrate discipline in our spending so that our expenditure growth is aligned with revenue growth. Currently, this is particularly challenging as most of our revenues are based on federal transfers that are expected to have little growth in the medium term.

Secondly, we need to lower our operating expenditures or increase our revenues to increase our fiscal capacity. This requires us to make difficult decisions on what programs and services are no longer needed or that can be funded at a reduced level or making decisions on increasing revenues knowing that these decisions impact cost-of-living and doing business in the Northwest Territories. However, these decisions also allow us to have the fiscal capacity needed to invest in infrastructure, to invest in actions outlined in the mandate of the 18th Assembly, and to ensure we are addressing our overall debt.

Finally, we need to start reducing our reliance on our line of credit to finance operations and return to a more manageable level of short-term borrowing position by the end of the 18th Assembly. Our large cash deficit is the most obvious sign that we are continuing to live beyond our means and impacting our fiscal capacity by using a significant portion of the GNWT's authorized borrowing limit. Reversing and eliminating this will be no small feat and requires the strength and determination to stick to the fiscal strategy outlined in our latest budget.

Budget 2016-17 was the first step in achieving these objectives by finding $68 million in savings and new revenues over four years. The actions outlined in Budget 2016-17 improved the fiscal outlook that was presented at the start of the 18th Assembly but do not prevent the operating surpluses from falling later in our term and do little to reduce the short-term debt. The work leading up to the 2017-18 Budget will be critical in accomplishing our fiscal strategy objectives and putting us on a fiscal sustainability path going forward.

We continue to see no new signs that the NWT economy will be able to rescue us from making the fiscal choices we need to make. While we have some positive news with the Gahcho Kue diamond mine starting to process ore and recover diamonds, and the Ekati Mine reopening after recovering from a fire that halted production for three months. This, however, does not change the longer-term outlook.

Exploration investments are positive but are not expected to grow this year. Current mine plans are projecting the closure of one major mine by 2023 and for the remaining mines by 2033. New mines may take many years from discovery to beginning production. Moreover, potential mines that we are aware may be developed, though positive, are not large enough to replace the economic activity of today's mines when they close.

We need to create the environment that supports a vibrant economy and provides our residents with good economic opportunities. This means we need the fiscal resources to invest in infrastructure to support economic development, our communities, and deliver government programs and services. Examples of this include:

The Inuvik to Tuktoyaktuk Highway. Work on the highway has progressed well and is expected to be complete by fall 2017. This project has involved more than 50 local businesses, dispersing close to $120 million directly into the local NWT economy. It has provided training opportunities for over 120 NWT residents, and over 70 per cent of its 530 person workforce at the peak of construction have been NWT residents.

1. The Mackenzie Valley Fibre Link. This project is scheduled to be completed in June 2017. To date, the project has employed about 160 NWT residents, involved 60 local businesses and organizations across the territory and contributed $32 million to the local NWT economy.

2. The Stanton Territorial Hospital Renewal Project. As Members can see, the progress on the new hospital is going well, with a target completion set for the end of November 2018. Although it is still early in construction, the project has involved 50 local companies and invested over $13 million in the local economy.

We are continuing to make critical infrastructure investments. Later today, I will be tabling the 2017-2018 Capital Estimates. These estimates will propose the continued investment to our transportation corridors, housing stock, key education and health facilities, and stable funding to our community governments.

Mr. Speaker, we would not be able to table this ambitious capital plan if the 18th Assembly did not endorse the fiscal strategy and start making the tough decisions to get our fiscal house in order. The first steps we took with the 2016-17 Budget must not be our last steps. The upcoming budget will need to include additional actions.

I am frequently asked why we have to take these steps. The answer is simple: to do otherwise is not sustainable and would be irresponsible. We need money to invest in our priorities, our people and communities that we simply do not have today. In recent years, the GNWT’s expenditures have been growing more rapidly than our revenues. Our cash deficit was large and projected to grow. We were adding short-term debt with no plan on how to repay it, and it was adding to our overall total debt. Our borrowing has a limit imposed on us by the federal government and we need the borrowing room to have fiscal flexibility to take advantage of federal cost-sharing opportunities, to make strategic investments, and to have a cushion for the unexpected fiscal shocks.

Our fiscal strategy is working. The current fiscal projections have revenues expected to grow 1.7 per cent annually while expenditure management results in an average annual spending growth of 1.1 per cent over the same period. This reverses the trend in the February 2016 Fiscal Update, where spending was projected to outpace revenue.

As reflected in the mandate of the 18th Assembly, we have many issues that need to be addressed within our communities and we have identified actions that will help create a better future for our residents. I look forward to working with Members to continue to advance the items in our mandate but we must be realistic that many of the items in our mandate will require investment. This investment will be on top of the fiscal resources needed to address the forced growth pressures that increase the costs to deliver our current programs and services and to maintain our existing infrastructure stock. We need to adhere to this fiscal strategy and achieve its objectives or we simply will not be in a financial position to address any of the challenges and priorities we have identified in our mandate.

I need to be clear with the people of the Northwest Territories and the Members of the Assembly in saying that there are still hard decisions that need to be made to ensure the future prosperity of the people of the NWT and the ongoing fiscal sustainability of the GNWT. We all like to talk about how special and unique consensus government is where 19 Members can work together on a course of action that is in the best interests of the residents of the NWT; where reason and common sense plays a greater role than party doctrine or election promises. We all need to take a hard look at what legacy we will leave for the people of the NWT. Simply delaying tough choices for future Assemblies to make is not an option in my view.

Mr. Speaker, we are on the right fiscal track and with the support of our residents and this Assembly we will remain fiscally sustainable, yet still have the funds to invest in individuals, families and communities to ensure the NWT is a place where our people can thrive and be healthy, where a well-managed environment contributes to our economic wellbeing and quality of life, and where a strong economy provides jobs and opportunities for our communities. Thank you, Mr. Speaker.

---Applause

The Speaker

The Speaker Jackson Lafferty

Masi. Ministers' statements. Deputy Premier.

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Mr. Speaker, I wish to advise Members that the Honourable Bob McLeod will be absent from the House today for a personal matter. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Ministers' statements. Item 3, Members' statements. Member for Nahendeh.

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, today I stand to speak about a young lady who has been selected to be part of the Prime Minister's Youth Council from my riding.

Mr. Speaker, I understand that Sylvia Pascua-Matte is the youngest member on this council. She's 17 years old. She will be completing her grade 12 this year and she is a student from Thomas Simpson School. This fall she plans on attending university. She is narrowing her research as we speak.

Some of the returning Members may recognize her name as she represented Nahendeh in the youth parliament in Yellowknife where she had the opportunity to be MLA and represent our riding in front of her peers right here in this Legislative Assembly. Mr. Speaker, this young lady has been engaged in a number of organizations in Fort Simpson throughout her young life. This includes student council, past president and now their treasurer, the Historical Society, the Garden Society, and during her free time she works part-time for the Open Doors Society.

Sylvia has attended a three-day session in Ottawa which ran from September 28th to the 30th. During the orientation, she had the opportunity to meet some of her fellow council members and partook in some of the One Youth World Summit sessions and met delegates from around the world. In speaking with her about the council, she said the focus was on how the council would work and the communication strategies they would use when they returned to their community. Some of the highlights of her trip were a tour of the hill and their buildings, watching Question and Answer Period, and meeting Members and Ministers of the Parliament. As well, she had the opportunity to hear a fellow member speak about her experience as a refugee.

I asked Ms. Pascua-Matte why she applied to be part of this council. She said her past positive experiences as a member of the student council, youth parliament, and her volunteer and work experience were part of it and the desire to have a say in the future development of the country as a member of the generation likely to be impacted by future development.

Mr. Speaker, Sylvia is very excited about the next

steps. She's already back engaging the community

and listening to the youth on what they think and care about and will bring the information back to the council where they will discuss their decision. She is hoping to have them understand what it is to be a Northerner for the past, present and future.

Mr. Speaker, like young people like her and others, I feel good about our future. I would like to congratulate her, and I know we're going to hear great things about her. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Item 2, Members' statements. Member for Yellowknife Centre.

Sole-Source Contracting
Members’ Statements

Julie Green

Julie Green Yellowknife Centre

Mahsi, Mr. Speaker. Mr. Speaker, in February, the Finance Minister announced changes in the limits for granting sole-source contracts. To recap, sole-source contract limits were increased from $5,000 to $25,000, $50,000, and $100,000 for different categories of purchases. That means GNWT purchasers can spend up to these amounts without having to go to tender or a negotiated contract.

I spoke on these changes in the June session, and the Minister may remember I questioned him on what controls are in place to ensure there is diligent oversight of the awarding of these sole-source contracts. I didn't get the reassurance I was looking for from the Minister at that time. I also asked for the release of the 2015-16 Report on Contracts over $5,000 and have yet to receive the promised report from the Minister, even though we're now six months on from the end of that fiscal year.

Judging from the upswing in sole-source spending between 2014 and 2015 year-end reports, there's good reason to be vigilant. In the 2015 end fiscal year, that is before greatly increasing the spending limits came into place, sole-source spending soared to $90 million to 25 per cent of all contracts let, more than double the previous year.

Even more unsettling, the report reveals how some well-placed suppliers get major sole-source contracts again and again. For example, one former deputy minister received 22 sole-source contracts, totalling $567,000. Another former DM got 10 contracts, worth $242,000. Media has reported, and I can confirm, a former Premier received 15 sole-source contracts, totalling almost $600,000 over the last eight years. A consultant in BC has received 22 sole-source contracts since 2011-12, totalling $1 million. This is significant spending, Mr. Speaker, all awarded without the test of tender or negotiation to periodically determine whether the public is getting the best value for its tax money spent, and that was under the much more modest limits on sole-source spending. So, to go back to my question about oversight -- I think I'm going to have to ask you, Mr. Speaker, for unanimous consent to conclude my statement. Thank you.

--- Unanimous consent granted

Sole-Source Contracting
Members’ Statements

Julie Green

Julie Green Yellowknife Centre

Mahsi, Mr. Speaker. So, back to my question about oversight, when the same consultants are repeated beneficiaries of sole-source contracts, shouldn't we occasionally look to see whether other suppliers might not provide value for money? The only review of sole-source contracting I can locate is the 2009 Auditor General's review of GNWT contracting. The OAG reported that one in five sole-source contracts was not properly awarded. Mr. Speaker, the increased limits make the stakes that much higher. I will have questions for the Finance Minister. Mahsi, Mr. Speaker.

Sole-Source Contracting
Members’ Statements

The Speaker

The Speaker Jackson Lafferty

Masi. Item 2, Members' statements. Member for Frame Lake.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I would like to call this statement, "What I Did for My Summer Holidays," if I may. Right after last session ended, the Standing Committee on Economic Development and Environment held a strategic planning session that I participated in and dealt with the legislative proposal. I'll have more on that legislative proposal a little later in this session.

Rules and Procedures Committee met in July to continue work on a mid-term review, code of conduct review, and improving public engagement of standing committees. In August, my wife and I travelled to Labrador's southern coast, where tourism is just beginning. We share a lot in common, including a long history of Indigenous peoples and settlers, resource-dependent economies, and changing ways of life. Later in August, we had our Caucus retreat in Fort Providence. A big mahsi cho to the community and our colleague, the MLA for Deh Cho, for a warm reception and productive meetings.

In September, more committee work took place to review the 2017-18 capital and departmental budgets. Later in September, harvesting from our home garden began in earnest. We produced over five buckets of carrots, around 150 pounds or 65 kilograms. Some Members in this very Chamber have savoured these carrots, and I'm open to offers for exchanges.

More seriously, Mr. Speaker, I personally delivered a special summer newsletter to about 900 households in my riding and engaged residents wherever possible. The top issues were housing and homelessness and the state of Yellowknife's downtown area, followed closely by the need for childcare, the Con headframe, and high cost of electricity. Mr. Speaker, I will continue to work on these issues. I'll be looking for investments in housing, Yellowknife's downtown, and renewable energy in the 2017-18 budget. These issues are part of our mandate. We need a costed plan to get our housing out of core need, a costed plan to get our communities off diesel, and some assistance with other heating costs and transportation, as well. That's what the federal government has said it was willing to invest in, too, and these should become the focus of our federal engagement strategy. I look forward to working towards these matters during this session. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Item 2, Members' statements. Member for Deh Cho.

Michael Nadli

Michael Nadli Deh Cho

Mahsi, Mr. Speaker. Fall time is a time for traditions, preparing for winter by stocking up on moose meat, berries, fish for the long winter ahead. The Ka'a'gee Tu First Nations have been taking their people out on the land to the area of Tathlina Lake. Recently, three young men, Chaal Simba, Takek Chicot, and Dawson Landry, shot their first moose. The young hunters travelled with their relatives and uncles. They were honoured in the recent opening of the community hall in Kakisa. Meat from the moose they harvested was on the menu during the feast.

Mr. Speaker, this age-old story highlights how important traditional lifestyles remain to this day. Our culture, traditions are vital to our identity. As government, we must do all we can to encourage the traditional economy by being good stewards of the land, first of all, and offering supports to people who want to make harvesting integral to their lives.

Mr. Speaker, the Ka'a'gee Tu protected area in these hunters' region is being advanced through their former protected area strategy process to create a permanent level of protection for that area. I encourage the GNWT to work towards the full implementation of the conservation areas network which will replace the protected area strategy. I encourage other regions with candidate areas to work proactively to protect habitat in their areas. Mr. Speaker, the NWT has some of the last great wilderness left on earth and the survival of one species is essential to others. Government and industry must seriously consider traditional knowledge and critical wildlife habitat thresholds when writing and reviewing project proposals.

Mr. Speaker, the GNWT supports wise and responsible traditional land use through programs like the Genuine Mackenzie Valley Fur Program, Take Your Kid Trapping, and has worked with Aboriginal governments to develop wildlife management plans for caribou and those bison that like to trample through our communities. It is also preparing to roll out hunter education courses under the new Wildlife Act. This government needs to ensure that work with Aboriginal counterparts lays the groundwork for future cooperation and positive relationships in communities and on the land where these matter the most. Mr. Speaker, the three young men I spoke of earlier will always remember their first moose. One day, they will want to share this experience with their nephews and sons. The decisions we make today will determine whether they share it as a memory or as they did themselves, at a feast to mark a special day. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Members' statements. Member for Kam Lake.

Kieron Testart

Kieron Testart Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, the legacy I want to leave for the Northwest Territories is one where we are no longer the weakest economy in Canada's North, one where we are no longer the second-worst when it comes to social ills in this country. I want a Northwest Territories that is stronger going forward into the future and can be a leader for Canada and the entire circumpolar world. We created a mandate together to take us there and that mandate is the centrepiece of this 18th Assembly. If we are going to fulfill that mandate, then we need to start investing in that mandate.

One thing seems to be holding that back, and that is this government's fiscal policy, a fiscal strategy that is cutting $150 million out of programs, services and jobs, and not returning that investment to areas of our economy where they're so desperately needed. At a time when our economy is stalling, our investors, our businesses, they need capital, capital that's not available to them in this time of recession. Our government needs to be spending more, spending more to support small business, spending more to fix social problems. We're seeing health costs continue to rise, we can't cut those back. We need to find fiscal flexibility to implement them now. Waiting for three or four years to start delivering on promises, that's not what my constituents want. They want a government that follows through on its commitments, and starts making real progress on the mandate. Until we start to see that from this government, there's going to be continued debate around that number, that big $150 million number. That needs to change so we can start delivering on the commitments we made to the people of the Northwest Territories. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Members' statements. Member for Yellowknife North.

Cory Vanthuyne

Cory Vanthuyne Yellowknife North

Thank you, Mr. Speaker. Mr. Speaker, similar to the previous speaker and also as the Minister previously spoke about, in the North we are living in some challenging times regarding the economy. The commitments we made in the 18th Legislative Assembly mandate are broad and cover a lot of ground. We need exploration and mining, we also need communications, we need roads, but we also need to invest in healthy communities. We need paved airstrips, but we also need vibrant schools. We need more businesses and jobs, but we also must invest in education, health, innovation, technology and in our well-being.

Now is not the time to rest and wait for the economy to somehow come around. It's our job to invest, to provide the boost that Northerners need to see in their economy. More recent economic indicators would attest that now is not the time for massive government cutbacks. As of late, the NWT has lost the Snap Lake Mine, and the De Beers head office has moved south. Long-time northern transporter NTCL is in decline and unlikely to rebound. Imperial Oil is in the midst of selling off its assets after almost 100 years operating in the Norman Wells area.

Equally troubling are the resulting impacts of the economy: less disposable income for families; a significant downturn for local small business growth; residents relocating south, accompanied by reduced federal transfer payments.

Mr. Speaker, I agree with the Minister of Finance, that it would be irresponsible and risky to live beyond our means. I do not support running a deficit. However, if we don't invest in what's possible, we cannot hope to meet the goals we have set as a government and as a territory. While we continue to rest on the pillars of resource development, the 18th Assembly has committed to diversifying the economy through support for emerging industries like tourism, agriculture, film production, arts, fisheries and trapping, and the renewable sector. Mr. Speaker, solutions can be found in our commitment to invest in our communities. Our mandate recognizes that a thriving economy needs healthy, educated people, a vibrant environment for small business, and opportunities for education and training. We need to invest in the resources we have already proven in sectors that are ready to grow.

Mr. Speaker, at the appropriate time, I'll have questions for the Minister of Industry, Tourism and Investment. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

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

R.J. Simpson

R.J. Simpson Hay River North

Thank you, Mr. Speaker. Mr. Speaker, last month in my role as deputy speaker I had the honour and pleasure of hosting her Excellency Petronila Garcia, the Philippine Ambassador to Canada, as well as Consul General Neil Ferrer and his consular outreach team. We spoke on various topics, but primarily we discussed the Filipino Community in the Northwest Territories, and particularly in Hay River.

I was proud to be able to inform her Excellency of the countless positive contributions made by the Filipino Community in Hay River, and I believe she took pride in hearing about how strong and well-respected they are in our community. So, Mr. Speaker, I'd like to take this opportunity to officially thank and recognize the 200+ members of Hay River's Filipino Community for all they do. They are a driving force in fundraising in Hay River. They are always happy to prepare a Filipino dinner for any organization that needs to raise money. This not only involves preparing and storing food, but also dressing in traditional clothing and performing traditional dances and music. In fact, there is a Filipino dinner tomorrow to help raise money for the CIBC Run for Our Lives. I encourage anyone who wants good food and good company to attend.

In 2014 they raised $13,000, which was donated to the Red Cross to support relief efforts in the Philippines after the destructive typhoon season. They're also very active volunteers and can be found donating their time at almost any event in town. Most of the Filipino women in Hay River are members of the Women's Catholic League where, among other things, they volunteer to prepare and serve food for funerals and other community events. They also donate much of their time to the soup kitchen and feeding individuals in need. These are a few examples of the generosity of the Hay River Filipino Community.

In addition to freely donating their time, they also contribute to our community through their positions as nurses, caregivers, financial professionals, journeymen, and more. I use the term Filipino community, but I don't mean that they're separate from the community of Hay River as a whole. They're an integral part of the fabric of our society. Her Excellency was surprised that so many Filipinos had set down roots in Hay River. She noted that it was a common practice for Filipinos to move to an area, work for a few years, then leave. Mr. Speaker, Hay River has been lucky enough to break that trend, and we're a better community for it. Thank you.

The Speaker

The Speaker Jackson Lafferty

Masi. Members' statements. Member for Tu Nedhe-Wiilideh.

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Marci Cho, Mr. Speaker. Mr. Speaker, I, today, would like to again send some condolences to families, to the family of Keith McDermott of Fort Resolution who passed away on July 9, 2016 here in Yellowknife. Keith was born June 29, 1975. He was a very kind-hearted person who loved to work hard for his family. He wanted to make everyone happy, so always took time to say hi to family and friends. His passion for playing guitar and singing made him feel good, and he loved wearing his cowboy hat and boots. Keith enjoyed going out on the land, travelling, was a good athlete and he was a good mechanic. Keith lived with me when he was a student at Hay River High School a few years back.

Keith is survived by his spouse, Maria Mantla, and three stepchildren, his father Larry McDermott, his brothers Arthur and Arlow McDermott. He's predeceased by his mother Viviane Balsillie-McDermott. Keith will be sadly missed by all who knew him.

I'd like to also send my deepest condolences to the Lynn family of Detah, for Mark Lynn who passed away on August 24, 2016. Born on November 21, 1994, he was only 21 years old. Mark enjoyed sports such as hockey, biking, and was an outgoing person, had a great sense of humour, he loved his hats, boots, and had a huge collection.

Mark is survived by his father Jim and mother Julia, his sisters Diane, Theresa and Kateri. He had many nephews, nieces, cousins, aunts, uncles, grandparents and friends. Mark was a relative of mine. Mark will be sadly missed by his family and friends. I'd also like to send my condolences to the family of Delta McKay of Fort Resolution. Delta passed away here in Yellowknife on September 6, 2016. She was born June 30, 1994. Mr. Speaker, I would like to seek unanimous consent to continue my statement.

--- Unanimous consent granted

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Speaker and colleagues. Delta was born June 30, 1994. She was only 22 years old. Delta was a well-liked young woman from Res and will be truly missed by her parents, Marvin and Brenda, her sister Rena, brother Ryan, grandparents Lena and Henry McKay and grandmother Violet Beaulieu. Delta had many friends, and she has left a huge void in many lives. She, too, was a relative of mine. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Our condolences and prayers to the family members as well. Masi. Member’s statements. Member for Nunakput.