This is page numbers 2775 - 2818 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 chairperson.

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Consideration In Committee Of The Whole Of Bills And Other Matters
Consideration In Committee Of The Whole Of Bills And Other Matters

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. So can someone tell me, is all of this carryovers, the -- I guess it's for some school work in Yellowknife and Inuvik. All of this is carried over from the previous year? Thanks, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Sorry, Madam Chair, I'm just -- I'm on the wrong page but, yes, it is all indeed carryovers.

CHAIRPERSON (MS. SEMMLER) Thank you. Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. I raised this in previous a capital budgets. I had understood the Department of Finance was going to develop some kind of a tracking system for carryovers, because we've had growing and very significant carryovers over a period of time and that's another question I'll ask at some point, but. And the tracking system was supposed to kind of categorize the reasons for carryovers. Sometimes it's got to do with cash flow from another party or, you know, inability to get the money out the door or there's no contractors available to do the work, or weather, or whatever. Is that tracking system now in place and what are we learning from it? Thanks, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member for Frame Lake. Minister of Finance.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. So, Madam Chair, there's certainly is a lot of work that's underway looking at broadly how the government manages carryovers and responds and reports on carryovers. So I can't say that I necessarily have a complete answer at this point. But, there are a few things in the works and perhaps I'll just pause. I'll turn it over to Mr. Koe, please, just to give an update as to what some of the most recent thinking is that we're at on that. Just knowing that, again, that some of that would have to, of course, come through -- any final decisions would have to come through of course this Assembly, as well as all -- any other process of consensus government. Thank you.

CHAIRPERSON (MS. SEMMLER) Thank you. Mr. Koe.

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Koe

Thank you, Madam Chair. So we've been working with departments on kind of the timing of their projects. These are -- mostly our carryovers are due to multi-year projects so we've been working with departments on the timing of those projects and their budget allocations and we work with them through the 21-22 capital estimates and we're working with them now on the 22-23 on those cash flows, so that is some work we've been doing with them recently.

We are developing a process right now to develop more standard substantiation sheets. I know members of the Financial Management Board and Members of the House would see substantiation sheets with those capital estimates. What we're doing is kind of going to roll that same process in to the carryover process. So when we do have carryovers, there will be a substantiation sheet that we can provide as a package to everybody, which kind of has the details for why that project is delayed and needs to be carried over, the new timing of the project, and some level of detail. And within that, we can classify those to see some -- look at some of the trends. Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. So I think I -- what I can take from our guest is that we're just setting up the system now and that we'll have a clearer sense, I don't know a year from now, of what some of the reasons are for the large carryovers that we're incurring; is that I guess what I'm hearing? Thanks, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member. Minister

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, there's a number of reasons why there'd be carryovers, and I think the goal right now is that rather than having each and every department provide the rationale or the reason, you know, department by department comes to MBS. MBS is going to be creating a system whereby it will be more uniformed so that it can be reported back to the -- to this Chamber in a way that, you know, again, is -- well, is more uniform and so that rather than, you know, having -- taking a bit of the subjectivity out of it and being able to report back more clearly so that if there are in fact trends across the whole of government, that those can be identified more readily. As it is right now, and I am certainly conscious of time but I can certainly speak to some broad thoughts on why there are sometimes large carryovers on, particularly on the large projects which is then what leads to the large dollar sums that are there. And I think those trends -- some of those trends are already apparent. But what we'd like to do is, again, provide a method and a methodology of reporting that is more clear and more uniform. Thank you.

CHAIRPERSON (MS. SEMMLER) Thank you, Minister. Member.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Okay, thanks, Madam Chair, and thanks to the Minister for that. I guess this gets back to some of the reasons why I actually voted against the capital budget, because I just felt it was unrealistic and there was I think almost half of the money in the capital budget was a carryover from the previous year, and I just felt that there's no way we're actually going to be able to get all this money out the door during a pandemic, and I'm concerned about getting some of this money out the door even in this sup as well. So, yeah, until we get a better tracking system and a more realistic capital budget that doesn't overspend, in my humble opinion, I have difficulty approving some of these items. But I do understand the need for some of this work to carry on, and I think that's all I've got to say for now. Thanks, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member. Are there any further questions, comments? Seeing none, Supplementary Estimates, (Infrastructure Expenditures), No. 1, 2021-2022, Department of Education, Culture and Employment, operations expenditures, junior kindergarten to grade 12 school services, not previously authorized, $2,566,000. Does committee agree? Thank you.

All right. So we'll move to supplementary estimates. Supplementary Estimates, (Infrastructure Expenditures), No. 1, 2021-2022. Department of Education, Culture and Employment, operations expenditures, total department, not previously authorized, $2,566,000. Does committee agree? Thank you.

Thank you. Committee will now consider the Department of Infrastructure on page 7. Supplementary Estimates, (Infrastructure Expenditures), No. 1, 2021-2022, Department of Infrastructure, operations expenditures, asset management, not previously authorized, $2,208,000. Questions? Member for Great Slave.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. I'm just curious, then, if the department or the Minister can speak a little bit to, was there any incurred or extra incurred costs as a result of deferring maintenance on some of these projects? And if so, would the additional costing be included in this 2.2, or would there be potentially further additional costs down the road? Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, I would propose to send that over, I think, probably to Mr. Courtoreille to speak to.

CHAIRPERSON (MS. SEMMLER) Mr. Coutoreille.

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Coutoreille

Thank you, Madam Chair. The amounts presented in the -- proposed in the carryover document do not include any additional costs for future periods. Thank you.

CHAIRPERSON (MS. SEMMLER) Thank you. Member for Great Slave.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. I'm done.

CHAIRPERSON (MS. SEMMLER) That's it. All right. Member for Yellowknife North.

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Rylund Johnson

Rylund Johnson Yellowknife North

Yes, thank you, Madam Chair. Could we just get some more information on what the deferred maintenance projects that weren't completed were and why. Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Chair, yes, for that level of detail, again, I'm going to send that to, if I might, to Mr. Courtoreille, please.

CHAIRPERSON (MS. SEMMLER) Mr. Courtoreille.

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Courtoreille

Thank you, Madam Chair. We don't have a detailed list of all the projects that are being proposed for carryover. This portion of the deferred maintenance is under the operations expense. So these are typically small maintenance projects less than $50,000. Thank you, ma'am.

CHAIRPERSON (MS. SEMMLER) Thank you. Member for Yellowknife North.

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Rylund Johnson

Rylund Johnson Yellowknife North

Yeah, thank you, Madam Chair. I guess this is just a comment for Finance and Infrastructure. I believe the last time I asked about our deferred maintenance deficit, it was about $462 million of deferred maintenance to get our assets up to par. I just don't understand when we have such a massive deficit, and the Department of Infrastructure has consistently, you know, stated that they need more money for deferred maintenance and if we're going to get our assets up, we need to be maintaining them. I fully support that. I just -- it becomes harder to navigate the Financial Management Board and through committee and through the Legislative Assembly to get more money for deferred maintenance if you let it lapse, and especially on these smaller projects. I don't understand how we're not getting this money out the door when our deferred maintenance budget is so enormously large. So, yeah, just a comment there to make sure we're maintaining our assets, because it only costs us a lot more money in the long run. Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Madam Chair, thank you. So there is a standing amount for deferred maintenance but, you know, a concern being raised on that regard, I would suggest perhaps a comment from the Minister of Infrastructure.

CHAIRPERSON (MS. SEMMLER) Thank you. Minister of Infrastructure.

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Consideration In Committee Of The Whole Of Bills And Other Matters

June 2nd, 2021

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Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Madam Chair. You know, I know the Member had mentioned this in a previous Assembly, and we talked about deferred maintenance programming. Yes, we have a high number of deferred maintenance and within some of our assets, you know, we look at some of the things that we're doing going forward as the Department of Infrastructure. The ongoing assessments are to be completed so we could determine the work plan for some of the upcoming years. We are in the process of developing an asset condition report card to be able to provide annual reporting on, you know, any of our assets and how we look at some of our deferred maintenance and, you know, just looking back to some of the maintenance. There are, you know, valid reasons to be able to -- to look at, you know, lengthy timelines for environmental assessments, consultation engagement process, procurement issues, and that's something the Department of Finance and Infrastructure are working on. And, you know, I'm not going to use up the Member's time talking about all the different reasons for some of our -- valid reasons for carry forward other than those are just to name a few. Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Any further questions, comments under this section? Seeing none.

Supplementary Estimates, (Infrastructure Expenditures), No.1, 2021-2022, Department of Infrastructure, operations expenditure, asset management, not previously authorized, $2,208,000. Does committee agree? Okay.

Supplementary Estimates, (Infrastructure Expenditures), No. 1, 2021-2022, Department of Infrastructure, operations expenditures, programs and services, not previously authorized, $8,046,000. Member for Great Slave.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. Madam Chair, I'm just curious -- I know that the Inuvik wind project was somewhat delayed or had been uncertain at one point of whether it was going to go forward, I don't know what the best way to phrase that is. So that would probably have resulted obviously in this lapse or this continuation. I'm just curious to know how often can this money continue to be carried over from year to year under the ICIP funding which perhaps I should know as a former Infrastructure Minister. But could it continue on and what is the likelihood of the Inuvik wind project continuing on and being completed in a timely manner in which case we wouldn't be worried about lapses of funding. Thank you.

CHAIRPERSON (MS. SEMMLER) Thank you. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, I don't know the specifics on that. Perhaps I'll turn it over to -- but the Minister of Infrastructure might.

CHAIRPERSON (MS. SEMMLER) Thank you, Minister of Infrastructure.

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Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Madam Chair. Madam Chair, the projects -- the ICIP for this project ends in 2027; my gosh, I wish it were done then. 2027-2028. And you know, each year, Madam Chair, we do get permission from Canada to be able to do some of these carry forwards, and with that, we're able to justify some of the reasons and rationales on, you know, the struggles we did have about, you know, trying to proceed ahead with the Inuvik wind project and, you know, trying to engage the community and form the partnerships to be able to do some of this work. Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Member for Great Slave.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. Madam Chair, I'm really glad to hear about the timeframe. And again, I probably should have known that and I also wish it was done in 2017 as well. I guess I just have questions a little bit about the $500,000 amounts for the two other funding pots there. I'm just curious to know if those were the contributions to get the dollars out of the federal government. Is that our -- the NWT contribution amount? Thank you, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you. Minister of Finance.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, I'm quite confident Mr. Courtoreille knows the answer to that, Madam Chair.

CHAIRPERSON (MS. SEMMLER) All right. Mr. Courtoreille.

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Coutoreille

Thank you, Madam Chair. The 500,000 proposed to carry over for those two projects is inclusive of GNWT money and federal money. It's to encompass work expected to be completed in the 2021-2022 fiscal year. Thank you.

CHAIRPERSON (MS. SEMMLER) Thank you. Are there any further questions or comments? Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. I remember sitting in the Chamber in August of 2019 when the House approved, I didn't agree with it, money for the Whati transmission line. Have we actually spent any money on this? Thanks, Madam Chair.

CHAIRPERSON (MS. SEMMLER) Thank you, Member. Minister.