This is page numbers 1653 - 1688 of the Hansard for the 19th 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 indigenous.

Topics

Shane Thompson

Shane Thompson Nahendeh

Thank you, Madam Speaker. As I have tried to explain here, and maybe I am not getting the message out there properly, there is a process, and we need to respect the process. On reserve lands, it's federal jurisdiction. We need to work with the federal government, Salt River First Nation, and the departments to deal with this matter. I understand it's been a long-standing issue for this Member, from when she was former chief, but we are willing to work with it. We have reached out to the federal government. We are working with EIA on this, so it's March, the whole department is working on it. Madam Speaker, we are working on it.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Minister. Member for Thebacha. Final supplementary.

Frieda Martselos

Frieda Martselos Thebacha

Madam Speaker, the claim was signed in 2002 on June the 22nd. That is 18 years. That is a long time without enforcement on reserve lands. I think it's time that this Minister and the Premier and the executive realize Salt River's goals to ensure that we get enforcement on reserve lands. Wouldn't he agree? Thank you, Madam Speaker.

Shane Thompson

Shane Thompson Nahendeh

I will wear my ENR hat here. Yes, I agree we need enforcement in there. We need to do it right, and that means we have to work with the federal government and Salt River First Nation to deal with this matter. I understand it's been since 2002. Again, we need to work with everybody in place so we do it right. I understand the Member, and I am hearing her. We have reached out, like I said, to EIA, Salt River First Nation to have this as a discussion, and we are working on it. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Minister of Lands. Time for oral questions has expired. Item 8, written questions. Item 9, returns to written questions. Minister of Finance.

Returns To Written Questions
Returns To Written Questions

Page 1671

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Speaker. I do have two returns to written questions, which I understand will be tabled by the clerk.

Returns To Written Questions
Returns To Written Questions

Page 1671

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Minister. Mr. Clerk.

Deputy Clerk Of The House Mr. Glen Rutland

Thank you, Madam Speaker. I do have a return to written question 17-19(2) asked by the Member for Kam Lake on October 15, 2020, regarding COVID-19 spending impacts.

As of September 30, 2020, the Government of the Northwest Territories has spent approximately $61 million on COVID-19 related expenditures. As with all government spending, these COVID-19 related expenditures will directly contribute to NWT gross domestic product. Government of the Northwest Territories' expenditures account for between 50 and 60 percent of NWT nominal gross domestic product.

Madam Speaker, the GNWT is projecting expenditures and foregone revenues to be approximately $175 million for 2020-2021. There has been total support announced by the Government of Canada of just over $92 million, which results in a potential impact on the GNWT of $83 million. The COVID-19 related expenditure shocks will reduce the operating surplus that is needed to fund the capital budget.

Madam Speaker, COVID-19 related spending has helped NWT businesses retain staff, make rent and mortgage payments, and has provided other financial relief. Efforts to understand the needs of the NWT's business community and the effectiveness of the Government of the Northwest Territories' COVID-19 economic support programs cannot be determined without polling businesses directly. While government support has helped numerous NWT businesses, businesses have also shown their own ingenuity in finding ways to keep their doors open. Business innovations, like curb-side pickup, "stay-cations" targeting local tourists, and phone or video appointments, have allowed NWT businesses that would otherwise have been forced to close to continue to operate during the pandemic.

NWT businesses most severely affected by the pandemic, and those that were most at risk when the coronavirus pandemic hit in March 2020, are concentrated in four areas of the economy: hospitality, retail, air transportation, and personal services. The Government of the Northwest Territories' and the Government of Canada have provided financial support targeted towards these severely affected and at-risk economic sectors.

COVID-19-related spending has directly aided NWT aviation companies and prevented them from closing despite severe drops in air passengers. To date, not a single NWT aviation company has been forced to close their business, which in turn has supported other businesses that rely on aviation services to transport goods and the government that needed air transport in response to the health crisis.

The Government of the Northwest Territories' has supported NWT businesses through Business Development and Investment Corporation Loan Payment deferment or reduction, and Business Development and Investment Corporation working capital loans. To date:

  • 162 Business Development and Investment Corporation accounts representing 126 NWT businesses were approved payment deferment or reduction.
  • Of these 162 accounts, 107 were approved extensions through the end of the fiscal year, bringing the total deferment/reduction savings from April 2020 to March 2021 to $3.3 million. This total consists of $3.1 million in deferments for 145 accounts and $183,208 in loan payment reductions for 17 accounts.
  • 89 Business Development and Investment Corporation accounts representing 88 NWT businesses were approved working capital loans of $2.3 million. A further seven accounts were withdrawn after approval.

As of October 23, 2020, the Support for Entrepreneur and Economic Development Policy program has supported NWT businesses as follows:

  • 187 grants have been approved, totally nearly $2.1 million.
  • 59 of these approved grants, totaling $319,588, are directly related to providing support due to the effects of COVID-19. These grants have helped NWT businesses purchase personal protective equipment, and supplement their operations in order to operate under the Chief Public Health Officer restrictions.

Madam Speaker, the NWT lost roughly 4,000 jobs during the coronavirus pandemic. Between February 2020 at the pre-COVID employment peak and May 2020, the COVID-19 trough, the number of jobs in Canada declined 18 percent, while the number of jobs in the NWT fell by 14 percent. Since then, the number of jobs has begun to recover, and as of July 2020, which is our most recent month of data, NWT jobs were 12.7 percent lower than what they were a year ago. By December 2020, it is projected that NWT jobs will have recovered to 90 percent of January 2020. The NWT jobs decline was less severe than the national average due to a combination of the following measures:

  • Innovation by NWT businesses, which allowed many companies to find new markets and ways of delivering products and services;
  • Large public sector, which acted as a stabilizer in the economy, allowing nearly 8,000 employees to work from home with regular income which was then spent at local NWT businesses, keeping consumer demand for NWT goods and services strong; and
  • Active GNWT and federal government support programs, which supported both businesses and employees directly through such programs as aviation sector supports and the wage top-up program.

In May 2020, the hardest hit month of the pandemic, there were 820 active businesses in the NWT. For context, an active business is a business with at least one employee. This number was 79 fewer than in May 2019, and 66 fewer than in January 2020. Of the 79 fewer NWT active businesses between May 2019 and May 2020, 85 percent were in the Services sector. Industries with the largest decline in NWT active businesses between May 2020 and May 2019 were:

  • Retail Trade with 24 fewer active businesses;
  • Accommodation and Food Services with 18 fewer active businesses;
  • Other Services with eight fewer active businesses; and
  • Construction with seven fewer active businesses.

Industries with the largest declines in active businesses were not necessarily the industries with the largest concentration of job losses. Compared to a year earlier, industries with the largest job losses in May 2020 were:

  • Mining & Utilities with 830 fewer jobs;
  • Accommodation and Food Services with 800 fewer jobs;
  • Construction with 375 fewer jobs; and
  • Retail with 330 fewer jobs.

The discrepancy between declines in active businesses and declines in jobs reflects the capital-use intensity of different industries and the distribution of large, medium, and small businesses across different industries. The decline in active businesses has been less severe in the NWT than in Canada as a whole. Between May 2019 and May 2020, there were 13 percent fewer active businesses in Canada compared to but just 8 percent fewer in the NWT. Thank you, Madam Speaker.

Deputy Clerk Of The House Mr. Glen Rutland

I do have a return to written question 18-19(2) asked by the Member for Kam Lake on October 15, 2020, regarding capital budget carry-overs.

The Member asked for information about the amount of the capital budget that the Government of the Northwest Territories has carried over in each of the last five years. Madam Speaker, in response to the Member's question, later today, at the appropriate time, I will table a summary of the total annual capital carry-over by category. Additionally, the Member asked for a description of the reasons for the carry-overs by category. It is worth noting for a capital project to be considered for carry-over, it must meet specific eligibility criteria under the Financial Administration Act and Financial Administration Manual:

  • The amount requested for carry-over must be lapsed in the previous fiscal year; and
  • A contractual obligation must exist, or substantial work has commenced on the project and cannot be completed in the planned timeframe.

Madam Speaker, over the past five years, capital carry-overs have been requested for a variety of reasons. There are some common reasons why projects experience delays, including:

  • in the procurement process including the time required to develop and release tenders, project scope changes, bids in excess of approved budgets, and time required to negotiate final contract value;
  • projects substantially completed but final contract payments withheld until deficiencies have been corrected by the contractor;
  • multi- delays due to the regulatory and environmental assessment process;
  • delays due to delivery times for materials and supplies and timing issues due to barge deliveries of materials;
  • delays due to unfavorable weather that had a significant impact on the project delivery dates;
  • delays year projects that required additional time for consultation with Indigenous partners, community governments and other stakeholders;
  • delays due to negotiations with stakeholders on land use;
  • delays due to time required to obtain land use permits and geotechnical survey results; and
  • specific to the 2019-2020 capital carry-over requests, delays as a result of COVID-19, including the redeployment of contractor resources and GNWT employees.

While lengthy, this list is not exhaustive as each project is unique and there may be other more specific reasons in addition to these general examples.

In the Member's third question, she asked whether the reasons identified for a project to be carried-over point to internal or external capacity challenges within the Northwest Territories. Madam Speaker, the detailed explanations provided by departments for capital project delays point to more than just internal or external capacity challenges. In some instances, delays in delivery of materials and supplies have had significant impacts on capital project timelines, which are often outside the control of either the contractor or the GNWT project management staff. Negotiations with stakeholders and external parties also impact project delivery timelines and are not within the control of the project management team. The short construction season in the NWT impacts also contractors' ability to complete projects on time. Any delays, internal or external, have an impact on project timelines, which is intensified by the short construction season.

Finally, the Member has asked what gaps the Government of the Northwest Territories has been able to identify to facilitate spending government capital dollars.

Madam Speaker, the capital carry-over process is a key mechanism used by the GNWT to facilitate capital spending; funding cannot transfer from one year to the next as the Financial Administration Act does not provide for multi-year appropriations. Using the carry-over process allows overall project budgets to remain unchanged; it is just spread over more fiscal years than was previously appropriated. This process reflects the reality of capital projects, the delays are often unavoidable and outside of the control of either the contractor or the project manager, and that projects are not often complete on the last day of the fiscal year. The capital carry-over process ensures that funding committed by the GNWT to be spent is available to be spent in the appropriate fiscal year.

As mentioned earlier, the criteria required to be met for the Financial Management Board to recommend a carry-over includes two specific criteria that an equal amount is lapsed and that a contract is in place or substantial work is completed. This ensures that departments do not continue to carry-over projects indefinitely as there must be a plan for expenditure. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Mr. Clerk. Returns to written questions. Item 10, replies to Commissioner's address. Item 11, Petitions. Item 12, reports of committees on the review of bills. Item 13, Reports of standing and special committees. Item 14, tabling of documents. Minister of Industry, Tourism and Investment.

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Speaker, I wish to table the following six documents: "What We Learned: Tourism Strategy Stakeholder Engagement Strategy (1) September to December 2019;" "What We Learned: Tourism Strategy Stakeholder Engagement Strategy (2) May to June 2020;" "Northwest Territories (NWT) Film Commission 2020 NWT Film & Media Sector Stakeholder Engagement Report: What We Heard;" Inter-Activity Transfers Exceeding $250,000 (April 1 to June 30, 2020);" "Public Service Annual Report 2019/2020;" and further to my return to Written Question 18-19(2), I also wish to table the "Summary of Capital Budget Carry-overs from April 1, 2015 - March 31, 2020." Thank you, Madam Speaker.

Shane Thompson

Shane Thompson Nahendeh

Thank you, Madam Speaker. I wish to table to following document: "Follow-up Letter for Oral Question 368-19(2): Contracts to Northern Territories Businesses at Giant Mine Remediation Project." Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Tabling of documents. Minister of Municipal and Community Affairs.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Madam Speaker. I wish to table the following two documents: "2019 Annual Report - Office of the Fire Marshall" and "Northwest Territories 911 2019-2020 Annual Report." Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Tabling of documents. Item 15, notices of motion. Item 16, motions. Item 17, notices of motion for the first reading of bills. Item 18, first reading of bills. Minister of Finance.

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Speaker, I move, seconded by the Honourable Member for Nahendeh, that Bill 21, Supplementary Appropriation Act (Operations Expenditures), No. 2, 2020-2021, be read for the first time. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. The motion is in order and is non-debatable. All those in favour? All those opposed? Motion is carried.

---Carried

Bill 21 has had its first reading. First reading of bills. Item 19, second reading of bills. Minister of Education, Culture and Employment.

R.J. Simpson

R.J. Simpson Hay River North

Madam Speaker, I move, seconded by the Honourable Member for Inuvik Boot Lake, that Bill 20, An Act to Amend the Employment Standards Act, be read for the second time. This bill amends the Employment Standards Act to provide an entitlement to unpaid emergency leave for employees who are unable to perform their duties because of an emergency; definitions that in apply in respect of emergency and extend the definition of care to apply in respect of emergency leave; establish regulation making authorities in respect of emergency leave and provide that regulations made under this authority may have retroactive effect; establish confidentiality requirements in relation to leave; provide an exception to the periods of notice required for group terminations that applies in the case of an unforeseeable event or circumstance; clarify that a notice of termination for group termination may be given to concurrently with an individual notice of termination; and correct inconsistencies and errors identified in the act. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. The motion is in order. To the principle. Member for Frame Lake.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Madame la Presidente. I support part of this bill. I support the emergency leave provisions that are being brought forward. In fact, I think it probably can and should have been done as part of an omnibus bill as part of our response to the COVID pandemic.

The part of the bill that causes me great concern is the exceptions to that it may provide for large layoffs. Currently, in the Legislation, if an employer has more than 50 employees, four weeks' notice is required, eight weeks if it's between 50 and 100 employees, 12 weeks between 100 and 300, 16 weeks if it's 300 or more employees. Clearly, the intention of the legislation was to ensure that, the larger the employer, that there is some advance notice given to their workers so that we don't flood the labour market with people being laid off. Larger employers, I think, are also better able to provide notice of this nature, given the greater size of their business.

I will be asking questions around what kind of cross-jurisdictional analysis has been done, what kind of consultation was done with organized labour in the preparation of this legislation, because I think that this will affect workers' rights. I will ask what kind of additional costs may be incurred by our government when a large employer lays off a large number of the employees and they come into the workplace and they may require income assistance, other kinds of support. I think there is going to be a cost for our government with these particular provisions.

I think it's also important that decisions around exceptions need to be made by a Minister. A Minister needs to be making that kind of decision, and the Minister should be held accountable. It should not be delegated to a staff person, and I think that we also need to look at what kind of appeal provisions may be required for this kind of a process. I certainly have a number of concerns with this bill. I look forward to a very thorough public review for the Standing Committee on Social Development, and I certainly will be encouraging organized labour to express their views on that part of the bill, as I would all members of the public, as well. In short, Madam Speaker, I am very support of the emergency leave provisions but providing exceptions to the advanced notice for larger employers, that's something that caused me great concern. Mahsi, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. To the principle.

Some Hon. Members

Question.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Bill 20 has had second reading and will be referred to standing committee. Second reading of bills. Minister of Finance.

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Speaker, I move, seconded by the Honourable Member for Nahendeh, that Bill 21, Supplementary Appropriation Act (Operations Expenditures), No. 2, 2020-2021, be read for the second time. This bill makes supplementary appropriations for operations expenditures of the Government of the Northwest Territories for the 2020-2021 fiscal year. Thank you, Madam Speaker.