All right. Thank you for that explanation. Do we just pick an arbitrary number, or is this a typical percentage of the larger amount? Thank you, Mr. Chair.
Debates of March 6th, 2019
This is page numbers 5203 - 5254 of the Hansard for the 18th Assembly, 3rd 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 going. View the webstream of the day's session.
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Stewart
Thanks, Mr. Chair. I mean, largely, it is a best estimate that we can come up with, knowing past events that have happened and those sorts of things. It's not based on a formula, or anything like that. It's just to give us that room that might be needed. I think anything beyond that, you'd want to be coming back for those borrowing authorizations. Thanks, Mr. Chair.
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Cory Vanthuyne Yellowknife North
I appreciate that. If we look at the NWT Hydro Corporation, in their short term, they look like they're going to be borrowing a significant amount over this next year. I have two questions. One is: can we just get a reminder as to why we're going to see that significant increase? Then: why is it that no other corporation seems to have a contingency, or is that just not a necessary thing? Thank you, Mr. Chair.
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Stewart
Thanks, Mr. Chair. In terms of the Hydro Corporation and their short-term debt, there were some estimates built-in, and they were quite generous in terms of things that they might have to borrow for. There are some resource-related projects that they've responded to RFPs to provide power there, that they would have to borrow to have the generation available for that. They have some other things out there that they may have to borrow some money on. That was all built-in. Not all of those may necessarily happen, but we wanted to make sure they had the room to be able to do that.
In terms of the contingency, we don't see the Hydro Corporation or the Housing Corporation having the same type of that emergency situation, like a forest fire, that would be needed to have that contingency built in. They have other mechanisms that are there in terms of being able to deal with those things, so we don't include contingencies on those. Thanks, Mr. Chair.
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Cory Vanthuyne Yellowknife North
All right, thank you. Just my last question. To see such a significant increase in one year in this type of borrowing, can I get some slightly better description of what the intention is for that? I recall, at some point in time, the previous president of the Power Corporation indicating that, yes, there were going to be some necessary investments with regard to the NT Power Corporation. We're also aware, of course, of the whole scenario that is under way as it relates to Power Corporation potentially being a power distributor for the Town of Hay River. I'm trying to understand, are there some asset acquisitions that are being made? I mean, we're talking about a $100-million increase here, so I'm just trying to get some justification, some substantiation, on why the big increase. Thank you, Mr. Chair.
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Stewart
Thank you, Mr. Chair. Maybe we can provide some additional detail on that, as well, but I will say that I think the Member hit on a couple of big areas. One, the Hay River franchise. They're still going through that process, but there will have to be some borrowing to be done to be able to purchase the assets when the franchise turns over for Hay River. There are two other resource projects that I know they put in a request for proposal. There was a request for proposal to be the power provider for the NICO project, should it proceed. This gives them the capacity, if they were successful in that, to be able to provide power for that. I believe another project down in the southwest corner of the NWT also will be looking for a power provider, so it gives them that room, as well. I think those are the main components that are in there, but maybe we can get some additional detail and provide it to the Member. I don't have it in front of me, but that's the kind of thing that's in there. Thank you.
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Cory Vanthuyne Yellowknife North
That's appreciated. Then maybe what I'll do is I'll ask the Minister if he can commit to providing that additional detail so that we have it. Thank you, Mr. Chair.
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Robert C. McLeod Inuvik Twin Lakes
Yes, thank you, Mr. Chair. We'll be glad to provide it to the Members. Thank you.
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The Chair R.J. Simpson
Thank you. Seeing nothing further, I will call this activity. Borrowing Plan for the Government Reporting Entity and Established Borrowing Limits for the Government of the Northwest Territories, established limits for 2019-2020 Appropriation Act, total government borrowing, $809,276,000. Does committee agree?
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Some Hon. Members
Agreed.
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The Chair R.J. Simpson
Thank you, committee. Does committee agree that we have concluded consideration of the Borrowing Plan for the Government Reporting Entity and Established Borrowing Limits for the Government of the Northwest Territories?
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Some Hon. Members
Agreed.
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The Chair R.J. Simpson
Thank you, committee. Thank you to the Minister and to the witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. What is the wish of committee? Mr. Thompson.
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Shane Thompson Nahendeh
I'd like to move that the Chair stand and report progress. Thank you, Mr. Chair.