Thank you, Mr. Speaker. The Government of the Northwest Territories released a draft hydro strategy in 2010. The hydro potential was noted to be 11,520 megawatts in the energy report produced by the Government of the Northwest Territories in May of 2011. Hydro development is included in the vision for the 2030 Energy Strategy and Energy Action Plan. The Taltson Hydro Expansion Project is the best understood option that we have to develop industrial-scale hydro potential in the near term that connect three legacy hydro assets you've mentioned. There is no specific plans in place beyond that exploratory work. Thank you, Mr. Speaker.

I thank the Minister for the clarity. We are really, when it comes to Hydro, just talking about the existing dams and hydro systems that we currently have. Mr. Speaker, it's been also stated that hydro power is not "green" energy. What is the GNWT's position on hydroelectric power? Is it ecologically and environmentally sound, or is it an unsafe way to generate renewable energy?

The Government of the Northwest Territories believes that hydro power can be developed in an ecologically sensitive and environmentally safe manner for the benefit of the residents of the communities and our economy in the Northwest Territories.

Mr. Speaker, I appreciate that the Minister believes that this is a safe, ecological, and sound way in which to produce energy. I am happy to hear that the government believes in that. I would like to ask the Minister: is it the intent of expanding the Taltson to lower the cost of living for residents, or is it to mitigate impacts on climate change, or is it in fact to provide carbon-free energy to the mineral development industry?

Yes, we believe that all three of those can be achieved through doing this and as well as for future resource development in our territory.

Masi. Oral questions. Member for Yellowknife North.

Mr. Speaker, sometimes we are criticized that, if we put money in one area, then another area is going to suffer. Does the money from the GNWT or the federal government that gets directed at hydro power take away from money and/or resources to develop or expand alternative energy opportunities in our thermal, remote communities?

No, it does not. Mini hydro is a firm and renewable energy option for three of our thermal communities that we will consider as part of our existing funding agreements with the Government of Canada, and we can set aside the funds necessary to build those projects where communities feel it is the best option to pursue. We will also consider other alternatives. Feasibility stage costs for the Taltson hydro expansion are included in the energy action plan, but significant new sources of funding and financing will be needed before it can proceed to construction. Thank you, Mr. Speaker.

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

Marsi cho, Mr. Speaker. Today I made a Member's statement on Avalon rare earth resources. I have questions for the Minister of ITI. I would like to ask the Minister if the Minister has been engaged in any discussion with the mining company that is hoping to continue or start operations at Thor Lake? Thank you.

Masi. Minister of Industry, Tourism and Investment.

Thank you, Mr. Speaker. When we were down at the mineral roundup in Vancouver last week, I had a chance to have a discussion with the CEO, Mr. Bubar, and he actually introduced me to their new potential partner, a private Australian company, Cheetah Resources, and I had a brief discussion with them of their exciting new project that they want to take on at Nechalacho.

Does the Minister know if that company has any discussions or any engagements at all with the Aboriginal groups, Indigenous groups in the area, specifically I think maybe Lutselk'e, YK Dene, and Fort Resolution?

I would have to check into that, but my suspicion, talking to Mr. Bubar and his new partner, is Avalon would still be the lead on this project through engagement and the permitting process and the work that would have to be completed, and I would suspect that their new concept of a new mini, micro-mine concept, that they will have to engage our Indigenous partners and have discussions with them, as well, and update them.

Has the Minister at any point during his discussions gotten into what might make that project viable and what might get that project started with the company?

What I can tell the Member and the Assembly is, in my discussion with them, they are looking at a very small-scale development of a -- I know the acronyms for the elements are Nd- and Pr-rich concentrate. They want to do a low-cost mining operation for crushing, an ore-sorting operation, to have a look at specifically their T-zone and the resource that is there.

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

Thank you, Mr. Speaker. I would like to ask the Minister if during his discussion there was any feel for whether or not they will go beyond this small-scale mining operation that they are planning now? They must be doing it because of the current situation with rare earths right across the globe. I am wondering if the Minister had any indication whether or not the company wants to move beyond a small-scale mining operation?

From the conversation I had with their financial partner there from Australia, his approach he says has been always a small-scale approach to see what the real potential is there without a whole large investment. This was over a $1 billion investment to actually get Avalon up and going, their original pre-feasibility study, what they wanted to do. This is a new approach, and the department wants to follow this closely. Any type of economic opportunities that we can bring to the Northwest Territories for the residents and our Indigenous governments is a welcome opportunity, and we will work very closely with Avalon and their new partner to try to move this small-scale project forward and have collaboration and meaningful input from everybody in the NWT. Thank you, Mr. Speaker.

Masi. Oral questions. Member for Kam Lake.

Masi. Minister of Finance.

Thank you, Mr. Speaker. Mr. Speaker, the chart, and I wish I had it in front of me here, the chart the Member is speaking of does talk to the fact that, if you start at a pay level below level 16, pay level 1, you get this amount of dollars through the pay grade system and the step system. Once you get to step 8, I believe is the highest you can go, then it would be a significant increase. I do not think we are double counting our benefit. We are just stating the facts.

The fact, as I see it in this document, is that, when an employee would start at $60,000, in five years they would be making $72,000. Again, that is not a $30,000 increase. Why is this information on the government website when it is hard to understand, paints a picture of an overly generous benefit from what is being presented to the public, and prevents the public from clearly understanding what is on offer?