This is page numbers 2819 - 2866 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 mrspeaker.

Topics

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

Page 2848

Some Hon. Members

Agreed.

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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The Chair

The Chair Lesa Semmler

Supplementary Estimates (Operations Expenditures), No. 1, 2021-2022, Department of Executive and Indigenous Affairs, total department, not previously authorized, negative $554,000. Does committee agree?

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

Page 2848

Some Hon. Members

Agreed.

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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The Chair

The Chair Lesa Semmler

Committee, we will now consider the Department of Finance on page8.

Supplementary Estimates, No. 1, (Operation Expenditures) Department of Finance, directorate, not previously authorized, negative $133,000. Does committee agree?

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

Page 2848

Some Hon. Members

Agreed.

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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The Chair

The Chair Lesa Semmler

Supplementary Estimates, No. 1, (Operations Expenditures) 2021-2022, Department of Finance, human resources, not previously authorized, negative $116,000. Does committee agree?

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

Page 2848

Some Hon. Members

Agreed.

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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The Chair

The Chair Lesa Semmler

Supplementary Estimates, No. 1, (Operations Expenditures) 2021-2022, Department of Finance, information shared services, not previously authorized, negative $50,000. Does committee agree?

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

Page 2848

Some Hon. Members

Agreed.

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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The Chair

The Chair Lesa Semmler

Thank you. Supplementary Estimates (Operations Expenditures), No. 1, Department of Finance, management board secretariat, not previously authorized, $15,882,000. Does committee agree?

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

Page 2848

The Chair

The Chair Lesa Semmler

Member for FrameLake.

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. Yeah, there's a large item here, almost $15 million support for the NWT aviation industry. I understand most of this money comes from the federal government. But can someone explain to us how this money is allocated amongst various airlines that operate in the Northwest Territories. Thanks, Madam Chair.

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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The Chair

The Chair Lesa Semmler

Thank you. Minister.

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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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Yes, Madam Chair. I would be happy to provide that, and see if I have it. Madam Chair, I'm happy to read it out here if the purpose is to have that put on the record. The listing is fairly lengthy. So just to confirm, I'm happy to provide it to the House, or to table it, perhaps that might be more efficient, or I can read it out. Just to confirm, please.

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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The Chair

The Chair Lesa Semmler

Member for FrameLake.

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. Rather than gobble up our valuable time, I'd rather have the Minister table it. But if someone could explain generally how the allocations are made, I think that's what I'm looking for. Thanks, Madam Chair.

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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The Chair

The Chair Lesa Semmler

Thank you. Minister.

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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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, Mr. Koe was the lead on this so I'll have him perhaps just describe the process that was used, please.

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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The Chair

The Chair Lesa Semmler

Thank you. Mr.Koe.

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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Koe

Thank you, Madam Chair. I'll try not to get too accountant specific on my response here, but. Since this is the third round of the aviation funding, we've had some pretty good dialog with all the airlines. Actually it's been pretty transparent on both ends but we do ask for all their financial information from their revenue and expenditure projections, so -- their income statements, their cash flow statements and their balance sheets. So we have a good understanding of their entire organization and how they operate. From there, we specifically earmark some time to meet with each airline and go through all their financial statements and ask our questions to do our due diligence to fully understand-- to fully understand their operations and their pressures and how they're evolving as the pandemic as evolved.

From there, we do a calculation of what we call a gross margin approach. So just looking at kind of their revenues and their variable expenses and what we're looking at here is kind of just the cost to operate, the cost to operate the essential flights that they are undertaking within the Northwest Territories to ensure that supplies and patients and people can move around the territory.

So once we do that calculation, you know, we kind of apply that calculation to the overall funding that's available to come down to a breakdown of the funding for each airline. Thank you, Madam Chair.

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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The Chair

The Chair Lesa Semmler

Thank you. Member for FrameLake.

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. I notice that one of the stories on CBC today is that Air Canada used $10 million of this sort of funding to pay bonuses to its senior executives. Is any of this money that is being given, is it being used for the same sort of purposes here? Thanks, Madam Chair.

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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The Chair

The Chair Lesa Semmler

Thank you, Member. Minister of Finance.

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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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, I saw that story too. When I saw it, I think the headline actually was that the airlines got a bit of a tongue-lashing from one of my federal colleagues if I might, so. And no, to be short, the contribution agreement that we have in place that is -- that has to be signed by the recipients who are -- the recipient airlines who are receiving this funding are not to be using that for the payment of any sort of bonuses or dividend payments. It is really meant to be provided solely to provide essential air services. There is a holdback provision in the contribution agreement as well so that they are expected to report back in to the Department of Finance so that the officials in the Department of Finance can review their financial information and, indeed, confirm that they have abided by all of what is in the contribution agreement. So, you know, this is our third go around. You know, I think the arrangements with the federal airlines are fairly different. This is our third go now. As Mr. Koe's indicated, there's a good relationship. They're certainly familiar with the information that they are receiving from the airlines, even if each one of them may structure their financial affairs differently. At this point, we've now had three times now gone through them, and three opportunities to review and be familiar with how it is that they are structuring their operations. So, you know, fairly able to look at the materials and I'm confident that indeed they are performing as they are expected to under the contribution agreements. Thank you, Madam Chair.

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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The Chair

The Chair Lesa Semmler

Thank you, Minister. Member.