Masi. Oral questions. Member for Yellowknife Centre.

Thank you, Mr. Speaker. On March 2ndI asked the Minister of Finance to provide information on the Mackenzie Valley fibre optic link and the reports of our principal contractor on that project, Ledcor, firing its subcontractor over deficiencies in construction of the line. At that time, on the day of the media report, I asked the Minister what impact this would have on the cost and completion of the contract. I would like an update on that information. So my first question is: has Ledcor hired another subcontractor, and is the construction going ahead on the project now? Thank you.

Masi. Minister of Finance.

Thank you, Mr. Speaker. The issue that they faced back in March, I'd like to point out, was an issue that was identified by some of our Lands inspectors that were out, and they worked with the proponent to address those, and ultimately they let their subcontractor go. My understanding is that the main proponent, Ledcor, is doing the work themselves. I don't think there's much they can do in the summertime; it's more of a winter-type project. They have 733 km of the approximately 1,100 km done, and the plan is to carry on the work again this winter. Thank you, Mr. Speaker.

Thanks to the Finance Minister for that answer. When we spoke in March you said the project could be delayed into 2017, and obviously if it's a winter project, 2017 is the soonest it could be done. So is there any possibility it won't be finished next winter?

My understanding is that the intent is to have the project completed in 2017, and we can light up the Mackenzie Valley fibre optic line.

I wonder now about costs. When we spoke again in March, the Minister said that the firing of the subcontractor and the lawsuits would have no impact on the cost of the project to the GNWT. Can the Minister confirm that this is still the case?

My understanding is that the issue is between the main contractor -- the general contractor and the sub, and as far as I know that there would be no additional cost to the GNWT.

Masi. Oral questions. Member for Yellowknife Centre.

Mahsi, Mr. Speaker. Ms. Speaker, as the Minister said, it was the GNWT's own staff that discovered the deficiencies. I'm wondering what kind of validation will happen when the project is complete, that it's been done properly? Thank you.

I have to point out that it was identified by our staff actually working with the general contractor. A combination of the two parties discovered some of the issues that came up. As for the validation, I mean, our staff continue to monitor it on an ongoing basis. We have staff from the Sahtu regional office going up towards the north and we have staff from the Beaufort-Delta regional offices in Inuvik that are coming south. So they continue to monitor it, and I can assure Members that we'll do our -- we'll make sure that, when the project is completed, it's been done and it's been done in an environmentally friendly way, and to ensure that all the work has been done according to the terms of their land use permit.

Masi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker. Mr. Speaker, I have some follow-up questions from my previous statements in the House for the Minister of Transportation. Can the Minister of Transportation please explain the rationale for his rejecting the request for a negotiated contract for resurfacing of Highway No. 7, sections 38-53? Thank you, Mr. Speaker.

Masi. Minister of Transportation.

Thank you, Mr. Speaker. The objectives of the negotiated contracts are always balanced against other contracting objectives, including providing best value for spending public funds. Each request to negotiate is carefully considered by the department and a decision to proceed is seeking Cabinet approval to negotiate or, in some instances, a decision to proceed to tendering. In this case we decided to go to public tender, Mr. Speaker, and this resulted in a savings of $2 million. Thank you, Mr. Speaker.

I thank the Minister for his answer, but part of the negotiating process is to negotiate. So when he says it was a savings, it's a savings of when he went to a tendered process. So, Mr. Speaker, the Executive Council has heard numerous times that the decisions that are made by the Executive Council are hurting the smaller communities. I know that they're not doing it on purpose, but when they make decisions such as not going to a negotiated contract it has an impact on our smaller communities. Can the Minister please explain how his decision to say no to negotiated contracts is benefiting the smaller communities?

Negotiated contracts are pursued with the goal of building contractor capacity and maximizing local northern involvement. The department constantly has a high percentage of contracts awarded to local and northern businesses through the negotiated or tendered contracting process, Mr. Speaker. The successful proponents are maximizing local and northern hiring practices and I encourage individuals who want to be involved in these projects to contact the contractor.

I thank the Minister for that answer. Probably tomorrow I'll have some more questions that go on to his answer, there, but can the Minister advise the house if the federal government has changed the rules in regard to using a negotiated contract for bundle number two projects?

Thank you, Mr. Speaker. Infrastructure Canada has simplified the process, the administrative side of it, particularly relating to contribution agreements and infrastructure funding. Under this simplification, the one main thing that they have changed is Treasury Board approval is required for negotiated contracts. If this is the will of the Executive Council, if we bring something forward, then this process would add lengthy delays and it would have to go back to the Treasury Board for approval. Thank you, Mr. Speaker.

Masi. Oral question. Member for Nahendeh.

Thank you, Mr. Speaker. I thank the Minister for that answer. It clarifies a few issues. Can the Minister please tell the House how many negotiated contracts have been requested from the Department of Transportation during his tenure as the Minister of Transportation and how many have been declined? Thank you, Mr. Speaker.

The department receives numerous requests for negotiated contracts. We consider each one of them carefully. As far as answering the Member's question of how many I have personally had as the Minister of Transportation, I would have to get back to him on that.

Oral questions. Member for Kam Lake.

Thank you, Mr. Speaker. Mr. Speaker, other than the Film Rebate Program, what else has the Minister of Industry, Tourism and Investment done to implement Take One: NWT Film Strategy and Action Plan? Thank you, Mr. Speaker.