This is page numbers 3165 - 3220 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

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President.

Recommendation 4

The Standing Committee on Economic Development and Environment recommends that the Government of the Northwest Territories analyse the net revenue benefits for the NWT.

The purpose of the Heritage Fund is to ensure that future generations of people of the Northwest Territories benefit from on-going economic development, including the development of non-renewable resources. Committee was concerned with the value of wealth that has been created through the Heritage Fund and recommends the Mining Fiscal Regime Review include an assessment of how to generate more wealth for future generations.

Recommendation 5

The Standing Committee on Economic Development and Environment recommends that the Government of the Northwest Territories generate greater mining revenues to benefit future generations.

As the GNWT can pursue wider government revenues from mining projects, those economic benefits will extend to Indigenous governments. Indigenous governments also have independent mechanisms to secure economic benefits directly from mining companies.

Recommendation 6

The Standing Committee on Economic Development and Environment recommends that the Government of the Northwest Territories expands Indigenous governments' economic benefit sharing.

Committee is not aware of any publicly available information on the steps, timelines, and opportunities for public engagement for the remainder of the review of the mining fiscal regime.

Recommendation 7

The Standing Committee on Economic Development and Environment recommends that the Government of the Northwest Territories make public, as soon as possible, information on the steps, timeline, and opportunities for public engagement for the review of the mining fiscal regime.

Mr. Speaker, I'd like to turn it over now to the MLA for Nunakput to conclude the committee report. Merci.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Frame Lake. Member for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Mr. Speaker.

Recommendation 8:

The Standing Committee on Economic Development and Environment recommends the Government provide a response to the recommendations contained in this report within 120 days.

Conclusion

Committee is committed to providing timely and constructive feedback during the review of the mining fiscal regime. Committee looks forward to a comprehensive, collaborative, and multi-phased approach with meaningful opportunities for the public and Indigenous government engagement.

Mr. Speaker, I'd like to hand it over to the Member from Great Slave. Thank you.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Nunakput. Member for Great Slave.

Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Mr. Speaker. Dissenting opinion of Katrina Nokleby, MLA for Great Slave.

Dissenting Opinion of Katrina Nokleby, MLA Great Slave

Introduction

The GNWT has committed to undertaking a review of its approach to the NWT's mining fiscal regime. As a first step, the GNWT commissioned a study by international firm PricewaterhouseCoopers (PwC) to provide an analysis of tax and royalty benchmark mining in the Northwest Territories. Some Members of the Standing Committee on Economic Development and Environment (SCEDE) had concerns regarding the scope of work of this research and proceeded to hire an independent economic consultant to provide an opinion on the GNWT's mineral benchmarking research.

This decision by SCEDE to question the GNWT's approach does not reflect my concerns or opinions in this area.

SCEDE established the following terms of reference for Committee's independent research:

  • Is the GNWT maximizing benefits from resource extraction?
  • Does the GNWT fiscal and regulatory structure maximize value for NWT residents and future generations?
  • Is the proposed approach by the GNWT to review this fiscal and regulatory regime comprehensive?
  • And will the proposed approach accurately assess whether the benefits of resource wealth are being maximized for the GNWT, NWT residents and future generations?

I disagree that these are the most important questions to be asking, particularly in a time when exploration is at an all-time low in the NWT. It is my opinion that this contravenes the mandate of the 19th Assembly which is to support our mineral resource industry. PwC's research is relevant, sound, and is indeed a credible report in which to inform the Mining Fiscal Regime Review, comparing the climate in the NWT of relevant and relatable jurisdictions like Australia and South Africa. Contextually, based on my extensive professional experience, PwC has captured the situation in the NWT quite well and provides data to back up its conclusions.

I believe that the most relevant questions to be considering right now as the GNWT undertakes the Mining Fiscal Regime Review is:

  • How will the GNWT create a climate that attracts high quality investors?
  • How can the GNWT aid and incentivize the existing diamond mines to extend the life of their operations and develop new projects?
  • How can the GNWT promote the exploration sector to ensure successive mines are coming online to help the territory avoid economic recession?
  • How can the GNWT incentivize mining corporations to establish and keep head offices in the NWT?
  • How can the GNWT support residents and businesses to increase participation in the mineral sector?
  • What are the spinoff industries that could be developed?
  • How can the GNWT support the development of energy and transportation infrastructure to attract investment in the territory?

Economic Conditions of the NWT

The NWT has always been a resource-based economy. Mining jobs keep families housed and people fed. Mining is the largest private sector employer in the NWT with diamond mining at the foundation of our current economy. This was only driven home further as the pandemic has progressed. Without the support of the mining industry and its dollars, the NWT would have been in economic ruin by now. The mines sent vulnerable people home with pay and set up some of the safest work sites in the entire territory, meeting weekly with our officials to ensure a coordinated effort was made to keep people healthy.

Diamond mining represented 26.7 percent of the territorial GDP in 2019, and is currently forecasted to contribute 20.7 percent of the territorial GDP in 2020 even though the industry declined 30.3 percent over that time period. There is no other sector that can replace the value that the mineral sector has brought to the NWT, unfortunately the NWT's economic outlook is not encouraging and taking jabs at this sector now is only going to be the nail in its coffin.

The value of our mineral productions is decreasing. The territorial GDP declined 10.4 percent from 2019 to 2020, the largest drop in the country, and for the first time ever is being surpassed by Nunavut's value of mineral production as predicted by the NWT and Nunvaut Chamber of Mines on July 29, 2021. The NWT and Nunavut are on opposing trends. Nunavut is surging up with the development of a new gold mine, and strong prices for iron and gold. While the NWT's mining industry is suffering from the effects of COVID-19; weak global diamond sales; and the short-term closure of Dominion's mine; and the slow rate of new mines coming online.

The value of exploration expenditures is also decreasing.

The NWT Mineral Development Strategy shows a similar trend exists for the NWT with respect to exploration expenditures. The total value of exploration expenditure in the NWT over the last five years has also declined to less than 3 percent of the Canadian total. In the meantime, Nunavut has attracted four times as much exploration investment as the NWT and about twice as much as the Yukon. Current NWT expenditures are mainly for advanced exploration projects and deposits with very few grassroots projects underway, something that is extremely worrisome for the long term prospects of a sector that employs a large portion of Northerners as well as accounts for so much of our GDP.

As Minister, I heard that the NWT is not viewed as a jurisdiction that is attractive to investment. The Fraser Institute Annual Survey of Mining Companies 2020 Investment Attractiveness Index ranked the NWT 46 out of 77 other jurisdictions. The NWT was among the very lowest ranked when compared to other Canadian jurisdictions, with Nova Scotia ranking the worst at 66 out of 77. Conversely Saskatchewan was at the top of attractive jurisdictions coming in at 3rd place, followed by Quebec in 6th, and Newfoundland and Labrador at 8.

While prospects don't look great, there has been some extension to the life of the diamond mines as detailed in the 2019 Socio-Economic Agreement Report. Diavik Diamond Mine's production life has been extended to 2025 due to the A-21 pit; Ekati's production life has been extended to 2034; and Gahcho Kue production life is estimated to run until 2030 with the discovery of new kimberlite pipes in 2019. However, this is not enough to sustain our economy and the lack of upcoming projects to replace the diamond mines is worrisome. Coupled with little oil and gas development, the sunsetting of the diamond mines will likely cause the NWT to be in an extremely weak and limited economic environment in as short of a time as 13 years. Even if ongoing exploration work proves fruitful, metal mines have nowhere near the economic impact as a diamond mine and production values will be extremely limited comparatively.

Diversification is key to developing our economy, but diversification needs to happen quicker and on a much greater scale than it is currently happening to be relevant. In the meantime, we cannot afford to have a territory with no economy. Without successful exploration and subsequent mining projects coming online, we are destined to become a government or public service economy, with little population, little territorial budget, and little private services. With a lack of jobs there will be little incentive for our youth to remain in their home communities or even in the NWT, and our talent drain to the south will continue.

Conclusion

For all the reasons above, I believe the scope of work for the Tax and Royalty Benchmark Report, Mining in the Northwest Territories is an effective benchmark report to understand the NWT's competitiveness in the mineral sector. I am disappointed that committee time and resources were spent on work that I see as largely irrelevant given the reputation of the authors of the original report as well as the current economic situation of the NWT. I encourage my colleagues to put our time and efforts towards improving the economic outlook of our territory instead. I support the work of the GNWT and ITI to advance the Mining Fiscal Regime Review expeditiously to enable the development of regulations and incentives that will ensure a prosperous future for the NWT and all residents. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Great Slave. To the report, Member for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Mr. Speaker. I move, seconded by the Honourable Member from Frame Lake, that Committee Report 21-19(2): Standing Committee on Economic Development and Environment Report of the Government of the Northwest Territories Approach to the Mining Regime Fiscal Review, be received in the Assembly, moved into Committee of the Whole for further consideration. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Nunakput. Motion is in order. To the motion?

Some Hon. Members

Question.

The Speaker

The Speaker Frederick Blake Jr.

Question has been called. All those in favor? All those opposed? Any abstentions? The motion is carried. The report will be moved into Committee of the Whole.

--Carried

The Speaker

The Speaker Frederick Blake Jr.

Reports of standing and special committees. Member for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Mr. Speaker. Your Standing Committee on Economic Development and Environment is pleased to provide the Report on Telecommunications and commends into the House.

The Executive Summary

Your Standing Committee on Economic Development and Environment is concerned about the growing digital divide in the NWT and the overall accessibility to connectivity and quality of internet services across the NWT.

The pandemic continues to highlight a growing gap between these with affordable, high-speed, reliable connectivity and those without. The communities in the NWT, especially more than remote communities, are suffering the most. And as the residents cannot afford it, the NWT falls below the rates of connectivity across Canada and yet also pay the highest price for service in - and the sporadic... [audio] The NWT witnessed over the course of the pandemic sporadic service in their community, limits accessibility for essential services.

The committee invited presentations from the Government of the Northwest Territories, (the GNWT), and the industry engagement informed committee submission. The Canadian Radio Telecommunications Commission 2020-367 (Appendix A) has also informed committee's recommendations to the GNWT.

In the committee's view, the GNWT has not completed a comprehensive business plan including financial costs required to provide internet access in the NWT at a comparable level of service in southern Canada. Without a complete picture of the total costs delivering the service, the GNWT continues to fall short of federal partners in industry to achieve this at the end.

The following report provides summary of what the committee heard from stakeholders and submits recommendations to the GNWT to improve accessibility, reliability, affordability of the telecommunications services in the NWT.

The Standing Committee on Economic Development and Environment has provided nine recommendations for the GNWT.

  1. The Standing Committee on Economic Development and Environment recommends the GNWT to continue into invest in publicly owned backbone internet infrastructure in the NWT. Specifically, the GNWT to prioritize the opportunity to create fibre redundancy to the NWT.
  2. The Standing Committee on Economic Development and Environment recommends the GNWT ensure fibre optic into home made available -- make fibre optic make -- made available to the residents of Tuktoyaktuk completion Inuvik-Tuk fibre line installation.
  3. The Standing Committee on Economic Development and Environment recommends the GNWT all backbone internet infrastructure in communities accommodates open wholesale access to NWT business to co-locate internet services a fair price in the NWT businesses.
  4. The Standing Committee on Economic Development and Environment recommends the GNWT advocate to the Canadian Radio Telecommunications Commission to set aside funding under the broadband fund for smaller service providers in Indigenous-owned businesses to help promote competition.
  5. The Standing Committee on Economic Development and Environment recommends the GNWT ensure all public funded internet backbone infrastructure in the NWT provide wholesale high-speed third-party internet access.
  6. The Standing Committee on Economic Development Environment recommends the GNWT address digital divide within the NWT by providing free access to basic internet packages through income assistance funding and NWT Housing Corporation for public housing units.
  7. The Standing Committee on Economic Development and Environment recommends to GNWT to address the digital divide building partnerships that can make free Wi-Fi services to all regional centres.
  8. The Standing Committee on Economic Development and Environment recommends that the GNWT encourage competition in the market by procuring internet services by smaller pieces and that local internet providers can effectively bid on these opportunities.
  9. The Standing Committee on Economic Development and Environment recommends a response and recommendations listed within 120 business days. Thank you, Mr. Speaker.
The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Nunakput. Member for for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Mr. Speaker. I move, seconded by the Honourable Member from Frame Lake, that Committee Report 22-19(2): Standing Committee on Economic Development and Environment, Report on Telecommunications, be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Nunakput. Motion is in order. To the motion?

Some Hon. Members

Question.

The Speaker

The Speaker Frederick Blake Jr.

Question has been called. All those in favor? All those opposed? Any abstentions?

Some Hon. Members

Agreed.

---Carried

Editors Note: Committee Report 22-19(2) can be read here:

https://www.ntassembly.ca/sites/assembly/files/cr_22-192_scede_report_on_telecommunications_0.pdf

The Speaker

The Speaker Frederick Blake Jr.

Reports of standing and special committees. Returns to oral questions. Acknowledgements. Oral questions. Member for Hay River South.

Rocky Simpson

Rocky Simpson Hay River South

Thank you, Mr. Speaker. Mr. Speaker, these questions will be for the Minister of Finance/Human Resources.

Mr. Speaker, some of the GNWT departments will require employees to confirm they have been vaccinated prior to showing up for -- for work starting today. And others not vaccinated may be accommodated or turned away.

So, Mr. Speaker, will the Minister explain to this -- to this Assembly the timing and process employees will be -- will be required to follow to confirm their vaccination status and is privacy, as it relates to private health information, a consideration when sharing that information and is it consistent throughout all departments, including NTPC and NWT Housing Corporation? Thank you.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Hay River South. Minister responsible for Finance.

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, let me just be clear first at the outset that it is, indeed -- everyone that has to be, at this point, providing a proof of vaccination or else they will be asked to comply with enhanced personal protective equipment and ultimately a testing regime.

In doing so, in asking our employees to comply with that policy, privacy absolutely was a top consideration, Mr. Speaker. The information that we are requesting, the records we are requesting, they are, indeed, going to be held on a need-to-know only basis at the Department of Human -- Department of Finance and Human Resources within the human resources information system. These folks are very accustomed to dealing with very sensitive information. It is secure, and it is private. I certainly would not let that to be a barrier to anyone complying with the policy to keep themselves and their families and their coworkers safe.

As for its application, Mr. Speaker, as I believe has been discussed this week, the Northwest Territories Power Corporation does have their own policy also in place. The Northwest Territories Housing Corporation does, however, fall within this one.

So, yes, Mr. Speaker, this is -- it's time -- this is time, it's now upon us, but, again, the information is going to be kept secure and confidential. So this -- if there's anyone out there who still hasn't provided their proof of vaccination, please, please get on the system and get that done today. Thank you.

Rocky Simpson

Rocky Simpson Hay River South

Thank you, Mr. Speaker. Mr. Speaker, knowing that departments or divisions have different vaccine policy requirements for employees to attend work, will the Minister confirm for those that are not vaccinated what process is in place to accommodate them when they show up for work tomorrow, and will they be required to provide any documentation as do those that are vaccinated; and if they do not have documentation, then what? Thank you, Mr. Speaker.

Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Mr. Speaker. Mr. Speaker, the vaccination requirements are not different-- are, again, asked- please, first of all, please go get your vaccine. It's your best way to protect yourself and to then provide that.

What does change department or division by division is in fact the specific guidelines around personal protective equipment. That's to accommodate the fact that certain different workplaces will have different levels of need or different levels of potential exposure to members of the public or to one another, you know, an office environment versus a frontline environment. But all of the departmental guidelines are available on the MyHR website. So if someone wants to go through, read them individually, they certainly can do that now. They are available on the website, and individual employees also, if they still have questions, should speak to their direct supervisors. Between the information on the HR website, between the information of their supervisors, employees should now be, I believe, quite clear on the level of personal protective equipment required for their workplace and testing will be coming shortly and that, again, same efforts, Mr. Speaker, to the MyHR website or to a supervisor. I've not had too many inquiries so I am hoping that, indeed, that information has rolled out successfully and there's no other paperwork that's required. Just to, you know, again, Number 1 is to go get your vaccine. If you are choosing not to do that, then to make sure you're clear with your supervisor what you need to do to keep yourself safe tomorrow. Thank you, Mr. Speaker.

Rocky Simpson

Rocky Simpson Hay River South

Thank you, Mr. Speaker. Mr. Speaker, I'm concerned that some of the vaccinated employees may find that working with staff that are not vaccinated will deem the workplace to be an unsafe environment as set out in WSCC legislation.

Mr. Speaker, will the Minister confirm what is the process that must be followed by those employees who feel unsafe when working alongside employees who are unvaccinated? What options or accommodations are open to them if they refuse to go to work? Has this been made clear to them? Thank you, Mr. Speaker.