The Speaker Frederick Blake Jr.

Ministers' statements. Minister responsible for Infrastructure.

Diane Archie Inuvik Boot Lake

Mr. Speaker, today I am providing an update on the Prohibition Creek Access Road Project to correct the public record, refute some misinformation, and also address some of the recent allegations raised in this House about the procurement process for this project.

First, the Prohibition Creek Access Road Project is, and always has been, advanced as a capacity-building project. The goal is to help prepare businesses, workers and residents to make the most of opportunities provided by the eventual construction of the entirety of Mackenzie Valley Highway.

Mr. Speaker, the Government of the Northwest Territories originally received federal funding to advance the design and construction of 13-kilometres of all-season road from Canyon Creek to Prohibition Creek, which is near Norman Wells, in June 2020. That same month, the GNWT announced this project would be procured through a public tendering process, following the receipt of a regulatory approval, and completion of final design. In November 2020, the GNWT obtained approvals to advance the project. However, prior to initiating the procurement process, an environmental and engineering issue was identified at the Christina Creek Crossing, which is approximately halfway between Canyon Creek and Prohibition Creek, which would require additional design and regulatory work. In an effort to keep the project and capacity-building in the region moving forward, a decision was made to split the construction project into two phases.

Phase 1 construction included building 6.7-kilometre all-season road between Canyon Creek and Christina Creek, and Phase 2, the construction would also include the remaining 6.3 kilometres from Christina Creek to Prohibition Creek.

The GNWT initiated a public procurement process for Phase 1 construction in October of 2021. The amount of time that lapsed between securing regulatory approval and initiating the procurement process was caused by the engineering challenges at Christina Creek and the change in project approach that I just described.

HRN Contracting Ltd. was the only business to submit a bid for Phase 1 construction through that public procurement process. Ultimately, the sole bid exceeded the available funding, and the procurement process was cancelled to re-evaluate the project's budget and financing.

The Prohibition Creek Access Road Project is one of several infrastructure projects that have experienced cost escalations recently. Large and systemic cost increases associated with the COVID-19 response, supply chain issues, inflation, material and labour shortages, and rising fuel prices have had an impact on project costs.

Following the cancellation of the public tender, the Department of Infrastructure engaged with Canada to revise the project delivery plan and very recently secured additional funding for Phase 1 construction, as well as design and engineering work required for the remainder of the 13-kilometre road, including the Christina Creek Crossing.

Mr. Speaker, I can also confirm that a negotiated contract request from HRN Contracting Ltd. for Phase 1 construction was also received following the cancellation of the public tendering process. This request is currently being advanced as per the provisions in of the GNWT's Negotiated Contracts Policy. HRN Contracting Ltd. is a GNWT Business-Incentive-Policy registered business in the Sahtu, owned by a Sahtu beneficiary and, as mentioned, was the sole bidder through this previous public procurement process.

Mr. Speaker, while it would be inappropriate for me to discuss the specifics of a contract on the floor of this House, I can assure you that it's our intent to advance this project to see the local and regional benefits maximized within the GNWT procurement and Negotiated Contract Policy, all of this to say, Mr. Speaker, this project has not been without its challenges. However, the allegations of nefarious dealings raised in the House are fundamentally untrue. It is our hope that procurement will be finalized in the near future, construction on this important capacity building project can begin this fall, and we are hopeful that this can be celebrated as the important milestone that it is, and that the years of work to get to this point are not tarnished by these recent allegations. Thank you, Mr. Speaker.

The Speaker Frederick Blake Jr.

Thank you, Minister. Ministers' statements. Minister responsible for Housing NWT.

Paulie Chinna Sahtu

Mr. Speaker, partnerships are key to addressing the territory's housing crisis.
Through partnership with Indigenous governments and communities, we are effectively finding housing solutions that recognize the unique needs of communities across the Northwest Territories. As we advance the Housing NWT Renewal Strategy, I am pleased to report that these partnerships are already leading to real, meaningful work that will improve quality of life for residents.

When this House was last in session, I spoke about the memorandum of understanding on housing we had just signed with the Tlicho government. Today I am pleased to say that Housing NWT has also signed a memorandum of agreement with the Sahtu Secretariat Incorporated. This MOA provides a framework for intergovernmental cooperation on housing-related matters, including community housing planning, procurement, coordinated program delivery in the Sahtu communities, and information and data sharing.

Housing NWT recognizes that the Sahtu region faces significant housing challenges. By working in partnership with the Sahtu Secretariat, we will maximize federal funding, increase affordable housing for residents, provide training opportunities, increase economic activity in the region, and build the capacity of Indigenous governments and communities. The MOA sets a path for a more collaborative relationship between Housing NWT and the Sahtu Secretariat, consistent with the Housing NWT's new approach to Indigenous partnerships under the new mandate.

Mr. Speaker, discussions between Housing NWT and other NWT Indigenous governments are also underway to develop cooperative agreements on housing. Last June, Premier Cochrane and I committed to a joint review of Housing NWT's policies and programs, with participation of the Council of Leaders housing working group, and it is already changing how we will be doing work with Indigenous governments. This is consistent with Article 23 of the UN Declaration that states that Indigenous people have the right to be actively involved in developing and determining social and other programs that affect them.

Mr. Speaker, I am pleased to say through the renewal of Housing NWT and programs and policy review, we are putting those words into action. We are increasing our engagement with Indigenous governments about the location and design of housing units. We are having open discussions with Indigenous governments on how to maximize economic opportunities that come with housing construction and operation. We are also looking at new partnerships and innovative approaches for building housing across the NWT.

Mr. Speaker, this collaborative work is helping us develop housing solutions that will benefit residents and the communities in which they live in. I am pleased to see Indigenous governments seize an increasing role in housing, and that the federal government is now flowing distinction-based funding to Indigenous governments in the NWT.

Housing NWT recognizes that there is no "one size fits all" solution. Individual Indigenous communities and governments have different needs, capacities, and aspirations, and it is important that their housing solutions cater to their unique circumstances.

Mr. Speaker, through collaboration and partnership with Indigenous governments, Indigenous organizations and communities, we will be able to effectively address the NWT's housing crisis and meet our mandate commitment to increase the number of affordable homes and reduce core housing need in communities across the territory. Housing NWT will continue to build its relationships with Indigenous governments so that together we can find housing solutions that fit the needs of their residents and all the residents of the Northwest Territories.

Mr. Speaker, I would also like to thank the staff of Housing NWT for working collaboratively with the Indigenous groups and helping us build our relationships. Mahsi, Mr. Speaker.

The Speaker Frederick Blake Jr.

Ministers' Statements. Members' statements. Member for Thebacha.

Frieda Martselos Thebacha

Thank you, Mr. Speaker. Mr. Speaker, colleagues, it was my great honour to travel last week and early this week with the Premier and my colleague from Kam Lake to the Arctic Circle Assembly in Reykjavik, Iceland. In an increasingly troubled world, Canada, and in particular Canada's North and its Indigenous people, need to work hard to strengthen our international bonds with the nations of the circumpolar world.

I had the opportunity to sit on a panel examining the potential benefits of public/private partnerships that include Indigenous governments and organizations and came away with a new and better appreciation of the full participation of our people in the modern economy.

Mr. Speaker, I want to thank my colleague from Hay River South who, as deputy chair of Caucus, introduced motions last night in Committee of the Whole to implement the recommendations of two independent Commissions - one to review MLA compensation and the other to recommend new electoral boundaries in the upcoming general election.

With less than a year remaining until the next election, it is critical that we clarify the size of this House and its boundaries at the earliest opportunity. Residents, potential candidates, and our election management bodies need to know what the landscape looks like to make informed decisions in the run up to next October. I don't intend to reflect on the decision that was made in the Committee of the Whole last night to reject the recommendation of the 2021 Electoral Boundaries Commission, but as Caucus chair I think it is crucial that the public understands what that decision meant and could mean.

Had the motion carried, I would have introduced legislation next week to establish new electoral boundaries for the 2023 election. As it stands now, the status quo will remain. That leaves us with a number of ridings, particularly Yellowknife North and Monfwi, that are unacceptably larger than the average riding size. It remains to be seen whether this will result in a legal challenge. But as we all know, the boundaries have been challenged twice before.

In 2015, the House accepted the recommendations of the independent Electoral Boundaries Commission, and a challenge from the City of Yellowknife for more seats was unsuccessful; however, in 1998, in the infamous Friends of Democracy case, the Assembly, like last night, rejected the recommendations of the independent Commission. This successful court challenge is why the number of MLAs from Inuvik and Hay River increased from one to two and why the number of MLAs from Yellowknife increased from four to seven.

Electoral boundaries are very political and challenging to get just right. It's not just about the arithmetic. It's about how we organize our public government politically and constitutionally. Yes, Yellowknife has roughly half the population of the NWT and less than half the number of seats in this House. But that doesn't mean Yellowknife's underrepresented in our government or at a disadvantage compared to the rest of the NWT. Far from it. Mr. Speaker, I seek unanimous consent to finish my statement.

---Unanimous consent granted

Mr. Speaker, the independent Commission's report wasn't perfect. It proposed a new and somewhat clever way to avoid adding seats to our legislature and avoiding increasing the numerical influence of Yellowknife Members in this House. In my view, the recommendation of the best possible outcome for small communities in the NWT who are always struggling for greater influence in the halls of government. Some may think that last night's vote was the end of the matter for another eight years. Mr. Speaker, I'd be surprised if that was the case.

Last night's decision has effectively turned this matter, a very political matter, over to the courts to decide for us. So far history has shown that the courts tend to defer to the Legislative Assembly when it follows the advice of an independent commission chaired, by the way, by a sitting or retired Supreme Court judge. History also has shown that results can be very unpredictable when we ignore that advice and let the courts decide for us.

I fear that we may find ourselves scrambling to implement court-ordered boundaries in the weeks and months leading up to the next election; boundaries that could very well see more seats added to this House and more seats for Yellowknife, Mr. Speaker. I hope that I'm wrong on that but in this uncertain world, political instability can spring up anywhere. As leaders, we need to see both the short-term and long-term implications of our decisions we make in this House and do our best not to sleepwalk into constitutional issues of our own making. Thank you, Mr. Speaker.

The Speaker Frederick Blake Jr.

Thank you, Member for Thebacha. Members' statements. Member for Nunakput.

Jackie Jacobson Nunakput

Thank you, Mr. Speaker. Before I get started, I'd like to send thoughts and prayers home. Today they're laying my Uncle Henry Steen to rest. So thoughts and prayers are with my family back home.

Mr. Speaker, I've said in this House many times before, housing in Nunakput faces major issues. Residents in my riding deal with the highest cost of living in the territory. We face overcrowding. We don't have enough homes. And the homes that we do have are in need of major repairs.

In Nunakput, the riding as we know, 13 percent of our homes are overcrowded. 28 percent of our homes need major repairs. 25 percent of our homes are in core need. Mr. Speaker, I have constituents who have put blankets on their floors in the winter so the snow wouldn't come in from the door and the windows. So it's very confusing to me, Mr. Speaker, when residents in my riding want to purchase a housing unit that the corporation doesn't fast track these requests. These units in the Housing Corporation are barely maintaining with the wind and the snow blowing right through homes in the winter. If a resident wants to purchase a unit, shows interest, the Housing Corporation should make it happen.

It's been said in this House many times the Northwest Territories is in a state of housing crisis. One solution to housing is to increase the number of our homeowners. So it's very troubling for me, Mr. Speaker, and my constituents in my riding, that have been waiting, in cases for years, to advance homeownership options.

I have a couple in Sachs Harbour who have been waiting for two years since they submitted their complete application to the Minister and her staff in Inuvik on December 2020, an agreement to enter a rent-to-own housing option. Since December 2020, the couple's been waiting and paying rent with no assurance that the Housing Corporation is under the rent-to-own agreement. My constituents already the highest cost of living in the Northwest Territories. Now the local housing organization in Inuvik appears to be creating more financial hardship by delaying long-term housing solutions for this young family in Sachs Harbour.

Mr. Speaker, this is not only one example. There is a constituent in Paulatuk who has have been waiting for almost six months for an answer from the local housing organization. Mr. Speaker, this is unacceptable. I will have questions for the Minister of Housing at the appropriate time. Thank you.

The Speaker Frederick Blake Jr.

Thank you, Member for Nunakput. Members' statements. Member for Kam Lake.

Caitlin Cleveland Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, over the last week I had the opportunity to attend and speak on a panel at the Arctic Circle Assembly. Arctic nations from around the world discussed the unique challenges and opportunities faced by circumpolar nations in the face of climate change. Youth, Indigenous leaders, bureaucrats, politicians, researchers, and even royalty, discussed an array of topics from Arctic biodiversity to green energy and mental health to critical infrastructure.

Infrastructure development is a key circumpolar focus as the world continues to warm. In September this year, the Arctic ice covering the Northwest Passage reached its lowest levels on record. Researchers noted it was pretty close to ice-free in major channels.

Mr. Speaker, 80 percent of the world's biodiversity is found in the Arctic and stewarded by 6 percent of the world's population, largely Indigenous people who have protected the land since time immemorial.

Today, the world is looking to the Arctic for its resource wealth, efficient shipping routes for legal and illegal trade, and military presence in the continued assertions of Arctic sovereignty. In response, circumpolar countries are evolving both their responses to climate change and Arctic infrastructure. Countries like Iceland now extract 85 percent of their energy needs using renewable energy infrastructures with lofty goals of reaching 100 percent. The US is pushing grant commitments to ensure 100 percent of Alaskans can access broadband internet. And Greenland is building three new international airports. The Arctic world is opening whether we want it to or not, and circumpolar nations are taking note and taking action.

Arctic sovereignty is reliant on Arctic security, Mr. Speaker, and Arctic security is reliant on healthy communities. Healthy northern communities rely on security in healthcare, education, employment, food, and yes, housing.

My biggest take home this week, Mr. Speaker, is that Canada's Arctic infrastructure drastically lags behind the rest of the circumpolar world. In 2019, the federal government released its Arctic and northern policy framework. But the policy lacked timelines, measures, and probably most importantly, Mr. Speaker, a budget to achieve its goals. While the way forward is a global collaboration and maintained Arctic zone of peace, Canada still needs social and economic infrastructure and healthy Arctic communities to maintain a seat at the table.

We are not ready for the future of the Arctic. Arctic security and Arctic sovereignty needs social and economic infrastructure in the Arctic today. If Canada does not offer the much-needed Arctic infrastructure to build healthy communities in the Canadian Arctic, we know that someone else will, but at what cost, Mr. Speaker? I will have questions for the Premier at the appropriate time. Thank you, Mr. Speaker.

The Speaker Frederick Blake Jr.

Thank you, Member for Kam Lake. Members' statements. Member for Frame Lake.

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I have some good news. Our government says it has sold the Mactung mining property; a zombie that just keeps on giving.

The owner, North American Tungsten, went into creditor protection after GNWT agreed to take on this operation under devolution. GNWT allowed that company to keep the Mactung property as part of its financial security for its water license. Cabinet ended up buying Mactung for $4.5 million through a special warrant that bypassed the Legislative Assembly. Cabinet then spent almost $480,000 on a partial clean-up of that property, plus all the work trying to sell it, not including months of staff time. The GNWT hired a southern consultant to submit a land use application to the Yukon government for an imaginary exploration program to hype the value of the property.

Just after the May-June 2022 sitting and with no advance notice to Regular MLAs, Cabinet accepted a letter of offer from Fireweed Zinc Ltd., a Vancouver-based junior mining company, to buy the property for a total of $15 million subject to a number of strict conditions:

1. Fireweed pays the GNWT the sum of $1.5 million on signing the letter of intent;
2. Fireweed will pay GNWT an additional $3.5 million within 18 months of finalizing of a definitive agreement, apparently targeted before the end of this year;
3. Fireweed will pay GNWT an additional $5 million upon announcing its intention to construct a mine at either the Mactung or any other portion of their mineral interests in the Yukon at Macmillan Pass; and
4. Fireweed will pay GNWT an additional $5 million upon announcing its intention to construct a mine at Mactung.

I am doubtful that GNWT will ever get all the money and staff time back from the Mactung property, or that it will ever go into production.

In terms of lessons learned, there don't seem to be any. I was hoping that GNWT would recognize that mandatory financial security in forms that are irrevocable and liquid are required to ensure this kind of mess does not happen again. Eight years after devolution, GNWT has failed to fix the problems with resource mismanagement left for us by the federal government. It's past time that the Auditor General of Canada looks at the promise and practice of post-devolution resource management. I will have questions for the mining minister later today. Mahsi, Mr. Speaker.

The Speaker Frederick Blake Jr.

Thank you, Member for Frame Lake. Members' statements. Member for Inuvik Twin Lakes.