Thank you. Member for Hay River South.
Debates of March 2nd, 2021
This is page numbers 2243 - 2298 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 going.
Topics
Consideration In Committee Of The Whole Of Bills And Other Matters
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Rocky Simpson Hay River South
Thank you, Madam Chair. Now, just moving down to shipyard, $3.4 million, what makes up that revenue? Is it work on other vessels or supply and material? Thank you, Madam Chair.
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Diane Archie Inuvik Boot Lake
Thank you, Madam Chair. Some of this shipyard, terminal operations were based on a consulting plan, Ernst & Young business plan, and was drafted prior to purchase, so some of the revised amounts were reduced to reflect some of the actual work underway and completed. I know I am not answering the Member's question right now because he wants a little more detail in terms of cost. I am going to get ADM Brennan to answer a little more into detail.
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Brennan
Yes. Thank you, Madam Chair. Just to confirm what the Minister added was that shipyard cost is essentially third-party work that we do in the shipyard. We currently do work on coast guard vessels, and we charge back for that work. We also do work for the Arctic Research Foundation vessel, the Nahidik. Thank you, Madam Chair.
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Rocky Simpson Hay River South
Thank you, Madam Chair. Under "other items," there is $10 million there, and that is about 25 percent of the revenue. What is that? What makes up that $10 million? Thank you, Madam Chair.
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Diane Archie Inuvik Boot Lake
Thank you, Madam Chair. That revenue line consists of some of our federal funding to be able to retrofit our tugboats, and the other part is the Oceans Protection Plan, which is to be able to provide four double-hulled barges. Thank you, Madam Chair.
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Rocky Simpson Hay River South
Thank you, Madam Chair. Going down to expenditures and shipyard, terminal operations, the $8.7 million, what makes up that $8.7 million? Thank you, Madam Chair.
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Diane Archie Inuvik Boot Lake
Thank you, Madam Chair. I am going to ask Mr. Brennan to answer that. Thank you.
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Brennan
Yes. Thank you, Madam Chair. The shipyard, terminal operations are essentially the cost of both salaries and materials that are used in the actual shipyard. When we do work on vessels, we charge time and materials to each vessel, so that would be the cost that we incur to do the shipyard work for revenue that is generated above. Thank you, Madam Chair.
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Rocky Simpson Hay River South
Thank, Madam Chair. The labour cost charged for shipyard personnel by ORSI, is that included in that number? Thank you, Madam Chair.
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Rocky Simpson Hay River South
Thank you, Madam Chair. That has always been a concern of mine, is that we are hiring southern firms to basically crew our shipyard terminals and our boats, and I am just wondering if the department, I know they put the contract out, and I think it's only out in a year. I don't know if there are any option years in it, but maybe the Minister can comment on, going forward, crewing both the shipyard and the vessels, if we're looking at a contract being tendered in a year from now, or are they going to go to auctioneers? Thank you, Madam Chair.
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Diane Archie Inuvik Boot Lake
Thank you, Madam Chair. Within the Marine Transportation Services, we are trying to maximize local and northern employment within the department. We do have 10 indeterminate GNWT employees who reside in the South Slave. Through MTS recruitment, the first priority for employment resides with resident locals, residents of the NWT, and third, non-residents. We do have a number of local employments. As the Member is aware, the majority of our transportation headquarters is in Hay River. I do want to note that about 90 percent of our shipyard staff hired were Northwest Territories residents last year. In terms of the contract, I'm going to ask ADM Brennan to speak a little bit more about where we're at with our contract. I just recently understood we had it tendered and closed, but I would just like more detail from the ADM. Thank you.
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