This is page numbers 5353 - 5396 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 know.

Recognition Of Visitors In The Gallery
Recognition Of Visitors In The Gallery

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R.J. Simpson

R.J. Simpson Hay River North

Thank you, Madam Speaker. We have a couple of pages from Hay River North here today with us, and so I want to welcome them - Madeline Fabien and Francis Cook. And I have a feeling we'll be seeing them back in this Assembly in our seats one day. Thank you.

Recognition Of Visitors In The Gallery
Recognition Of Visitors In The Gallery

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The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. Recognition of visitors in the gallery. Member for Frame Lake.

Recognition Of Visitors In The Gallery
Recognition Of Visitors In The Gallery

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Madame la Presidente. I've had two pages in the House this week from Frame Lake, Aiden Tate and David Munford, and I would like to thank them for their service. Mahsi, Madam Speaker.

Recognition Of Visitors In The Gallery
Recognition Of Visitors In The Gallery

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The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. Recognition of visitors in the gallery. Replies to budget address. Member for Hay River South.

Mr. Rocky Simpson's Reply
Replies To Budget Address

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Rocky Simpson

Rocky Simpson Hay River South

Thank you, Madam. Speaker. Madam Speaker, I rise here today to reply to the last tabled budget of this 19th Assembly. I have to ask myself, what in the three plus years have we accomplished for those people who are struggling with addictions, mental health, unemployment, high cost of living, education, and homelessness as it is support in these areas where a difference can be made in one's life.

At the start of, and during my time here, I was not naive in thinking this government would provide everyone with everything they ever wanted. It was my intent first and foremost to provide residents, not only from Hay River but throughout the NWT, with access to their public government. To accomplish that, it meant an open office, being accessible, listening to each issue, being responsive, following up, and at times taking the matter into one's own hands.

Madam Speaker, it is important to recognize that most of the budget covers the day-to-day operations of this government. This budget has somewhat of a surplus and in this case approximately $178 million. This may seem to be a sizable sum, but we know all too well the need to have reserves to account for the unknowns, emergencies, and providing supports to residents that are facing hardships.

In the last three plus years, this government had to address the pandemic, major flooding, increased cost of living, rising interest rates, all of which had a financial cost for this government, businesses and residents, which we are still feeling today. Now I am expecting this government to make use of some of that surplus to help those residents who are facing day-to-day hardships.

Madam Speaker, we must recognize that the Northwest Territories is made up of haves and have-nots, with those in the regional and smaller communities having the least. Many are without housing, many are unemployed, many are living on less than a basic income, many are living with addictions, many are struggling with mental health, many are struggling with education, and the list goes on.

Madam Speaker, I want to talk about what is not offered up or what I believe is not sufficient in this budget. My comments will be directed at those supports and services needed by the many residents that are struggling day to day to make ends meet.

Madam Speaker, first and foremost, we see limited to no support for those facing the harsh reality of rising costs of goods and services. With an increase in the carbon tax coming and the talk of dropping the home heating fuel rebate, we know all too well that both will cause further hardship for many in the regional centers and smaller communities. This government and the federal government must come to grips with the severity of those issues resulting in an ever-increasing cost of living in the Northwest Territories. It is only worsening. We must find and offer up solutions to either eliminate or offset those cost-of-living increases experienced by residents. Families need to keep food on the table and a roof over their head and not be placed in a situation where they have to choose between the two. Residents are finding the NWT too expensive and are looking for solutions to reduce that cost. For many, the solution is to move away from here. The question is how we can keep people here and how we can encourage more people to make the NWT their home.

Madam Speaker, I see little in this budget to address this problem and would recommend that we make additional supports available to offset higher utility and living costs through added financial supports and for the establishment of a pilot program for a living wage for seniors.

Madam Speaker, we have seen an uptake in the use of illicit drugs and alcohol in the NWT and an increase in health problems resulting from that use. This brings me the issue of lack of supports for addiction services and, more specifically, I am talking about detox and aftercare services. These two components are essentially missing in the NWT and, in part, is why we are failing those who are seeking treatment. When one decides they need help, they first need a safe place to detox. Currently, persons who are looking to overcome addiction cannot get past that first step which is access to the dedicated detox bed and detox medical services they need. If in an off-chance they are successful with detox, they are then subjected to a long wait time to get into a treatment centre. This may result in one relapsing and having to start the process all over. When returning home from treatment, many are finding that they have limited to no aftercare support services. Many want structure upon their return with help and time to process what they just went through. They need wraparound supports that will help rebuild their life. Failing to address this issue will only result in more people dying.

Madam Speaker, with added healthcare funding committed by the federal government, I am looking for this government to correct the deficit we are facing with respect to detox and aftercare facilities in the NWT. These supports are an immediate priority for the residents of the NWT who are seeking addiction treatment. To reduce this detox and aftercare deficit, as a start I would ask that funding of no less than $3 million be added to this budget.

Madam Speaker, the Hay River Health and Social Services Authority, through the department of health, receives funding to operate the facility which includes, with the exception of doctors, recruitment and hiring of healthcare personnel. Recruitment for Hay River doctors is done through the NTHSSA, which is somewhat of a problem for the community. It appears that when there is a shortage of doctors in Yellowknife, doctors in Hay River disappear to Yellowknife leaving Hay River without a doctor thus resulting in reduced healthcare services for extended periods of time. This reduction in services not only affects Hay River but affects the surrounding communities of K'atlodeeche, Enterprise, Fort Resolution, Kakisa, and Fort Providence.

Madam Speaker, I am asking the department of health to turn physician recruitment over to the Hay River Health and Social Services Authority, along with the funding from this budget that goes with it.

Madam Speaker, our senior population is increasing and with the increased cost of living, along with a continued decrease in access to healthcare and healthcare services throughout the NWT, this is contributing to many of our seniors moving or considering moving to places outside the NWT that provide a lower cost of living and a stable and accessible healthcare system. Seniors who are looking to age in place are finding that homecare services are limited. And for those that can live independently, but do not own their own home, are faced with a severe shortage of seniors' housing. Many of these seniors have retired in the North and want to live out their life here but we are making that difficult, unaffordable, and unattainable.

Madam Speaker, I am looking for this budget to include added funding directed towards regional centers and small communities to increase the number of homecare staff and more paid hours under the caregiver program.

Madam Speaker, we say our youth are our future, and yet when it comes to supporting them, we fall short on support for sport and cultural programs in regional centers and small communities. If we expect our youth to succeed, if we expect our youth to avoid drugs and alcohol and the problems it creates, we then need to provide them with positive sport and cultural options. If one comes from an affluent family, one is still not guaranteed to succeed but it does provide those youth with advantages that many in the smaller communities do not have and that is funds to participate in various activities.

Madam Speaker, I have stood up in this House on several occasions and advocated for additional multiyear funding for the Hay River Ski Club and the Kole Crook Fiddle Association. And I know there are many organizations looking for the same however, although I've had some, but limited success in getting any substantive commitment from this government at a time when we talk about youth suicide, youth addictions, youth mental health, and youth justice issues. To encourage youth to grow, sports and cultural activities are but two areas where we can make a difference.

Madam Speaker, I am looking for this government to include additional funding of not less than $1 million in the budget to support opportunities for sports and cultural activities in the regional and smaller communities through multiyear agreements.

Madam Speaker, NGOs are the heart and soul of the NWT. We need to increase and support multiyear funding for services and supports they provide on behalf of this government. The services and supports I am alluding to include seniors' programs, youth programs, education and training, addiction and mental health supports, shelters, work placement, justice services, sports and cultural activities, food hampers, meal programs, emergency funds, meeting space, and much more. There are many organizations throughout the NWT that, on a shoestring budget, not guaranteed from year to year, take on the outreach work of this government. This underfunding and lack of multiyear agreements not only places the NGO at risk, but it also affects those NWT families that rely heavily on the services and supports provided.

Madam Speaker, I ask this government include additional funding of not less than $1 million with multiyear agreements to support those NGOs that provide a multitude of programs and services throughout the NWT.

Madam Speaker, another area that seems forgotten is that of our small retail businesses. COVID, timely access to products, increased overhead costs, and labour shortages, all affect the viability of small retail businesses throughout the North. Many are struggling to keep their doors open which is not only apparent in Yellowknife when one looks at the downtown core but as well throughout the regional and smaller communities. It was not only the pandemic that struck a blow to small business. It is now easy access to online retailers. It is an access to big box stores not only in Yellowknife but in centres such as Grande Prairie, Edmonton, and Whitehorse. If we want to encourage people to move to the NWT, we need to have more than higher wages. We need them to have access to local retail services and other amenities found in southern communities.

Madam Speaker, we need to include additional funding of not less than $500,000 in this budget to support small retailers who are looking to survive. This funding will provide them with an opportunity to reinvent themselves so that they can then compete in a very competitive market.

Madam Speaker, there are many good initiatives in this budget already, but it is the gaps the need to be filled in. There is immediate need to place some of that surplus in programs and services where it will make the most difference, and that is to direct it to the people and organizations of the NWT who are struggling with the many issues I noted in this, my reply to the budget. Madam Speaker, thank you.

Mr. Rocky Simpson's Reply
Replies To Budget Address

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The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Member. Replies to the budget address. Member for Great Slave.

Ms. Nokleby's Reply
Replies To Budget Address

February 16th, 2023

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Speaker. Madam Speaker, a lot of my colleagues have already spoken about what they feel is lacking in this budget, and I think I'm pretty vocal about what I also think. So instead I wanted to focus today on the economic outlook of the Northwest Territories going forward.

The Northwest Territories economy has shaken off the effects of the COVID-19 pandemic. Economic activity, output, and employment expanded throughout 2021 and 2022, recovering much of the economic loss that occurred in 2020. Labour markets have performed particularly well with resident employment and the employment rate rising to record highs. This has helped support wages and incomes, which in turn has boosted consumer spending and retail sales. Diamond production has also returned to pre-pandemic levels and exploration spending intentions are up. However, the recovery from the pandemic returns the economy to its pre-pandemic path of slow decline. Maturing diamond mines, labour shortages, and a lack of economic diversification will continue to dampen economic growth.

These challenges are heightened by high inflation and higher interest rates. Most pressing is the lack of workers that is putting a brake on private sector activity, as well as the impending closure of the Diavik Diamond Mine. There are currently no other projects on the horizon large enough to fill the economic gap that will be left by the closing diamond mines.

The recent performance of the Northwest Territories economy is evaluated using the 13 Macro-Economic Policy Framework performance indicators. The Macro-Economic Policy Framework was developed in 2007 following a consultation with Northwest Territories residents that resulted in a consensus that the future economic growth should be balanced, diversified and sustainable. The Macro-Economic Policy Framework provides a comprehensive policy and planning framework to guide government spending and investment decisions that support economic development.

The framework's 13 performance indicators evaluate the economic well-being of the territory and provide an indication of the effectiveness of the GNWT's investments in developing the economy. The performance indicators compare current indicator values to their 2007 baseline levels. The year 2007 was chosen as the baseline because it is the year the economic policy framework was developed but also because it marked a period of great expansion and optimism in the Northwest Territories when the Snap Lake Diamond Mine was being built. For such a small economy, returning to this abnormally high level of economic output and activity may not be possible.

Five of the 13 indicators have improved. These include incomes, population growth, retail sales, and non-resident workers. Earnings, population, and retail trade are all higher now, and the number of fly-in/fly-out workers is lower than in 2007, which all point to favourable labour market conditions and a high quality of life. However, seven of the 13 indicators have worsened. These include real GDP, productivity, new investment, imports, wholesale trade, and resource sector services.

The indicators are all smaller now than in 2007, signalling economic decline. The employment rate is unchanged. Today and in 2007, close to three-quarters of the working age population in the NWT is employed. However, the composition of employment between industries has changed.

The Northwest Territories economy has shaken off the effects of -- oh sorry, I seem to have repeated myself.

Over the near term, the NWT labour market is expected to remain robust while a real economic output is forecast to persist at lower levels compared to pre-pandemic conditions. The real GDP is projected to shrink by 2.9 percent in 2023 after dipping by an estimated .4 percent in 2022. Declines in economic output are due to the unwinding of pandemic-related government spending that supported residents, businesses, and industry as well as lower export values because of decreased diamond production. Household spending, while still growing, is slowing down as pent-up demand from the pandemic dissipates and consumer price inflation erodes purchasing power, forcing many households to draw down savings and cut back on purchases. Investment, however, is forecast to rise by 8.2 percent in 2023 after increasing by an estimated 9.4 percent in 2022.

The Northwest Territories economy has been contracting prior to the pandemic. Despite a strong rebound in 2021, several years of decline will leave the Northwest Territories economy nearly 9 percent smaller in 2023 than in 2019, before the COVID pandemic. This is largely because of low investment and a significant drop in exports. Household and government spending are expected to be higher than before the pandemic.

Resident employment is projected to increase by 1.2 percent in 2023 after rising by 5.5 percent, or 1,300 people in 2022. Strong employment gains lifted the territorial employment rate to 73.1 percent in 2022, indicating that the NWT is nearing full employment. A robust labour market is expected to continue in the near term as job vacancies and labour shortages of skilled and unskilled workers remain high. Resident employment is projected to reach a record high of 25,200 people in 2023.

Tight labour markets will help push wages over the near term. Average weekly earnings are projected to increase 2.8 percent in 2023 after rising an estimated 2.1 percent in 2022. There is variation of average weekly earnings across communities which will affect wage growth. As well, wage growth is being outpaced by the consumer price growth.

The consumer price inflation is projected to slow this year as many of the geopolitical events that caused global supply chain disruptions and commodity price fluctuations are resolved. High inflation is eroding the purchasing power of Northwest Territories residents and exacerbating the already elevated costs of living and doing business in the North.

After a decade of low and stable prices, inflation, as measured by the Yellowknife consumer price index, increased 6.8 percent in 2022 and is further forecast to rise 3.3 percent in 2023. Consumer price growth is projected to outpace wage growth in 2023 thereby muting real wage growth for workers. Should CPI stay elevated for an extended period, and depending on reactions to inflation in other jurisdictions, the Northwest Territories comparative advantage of offering high wages and salaries may be diminished. Eventually consumer price inflation may push wages up and create further labour cost pressures on business.

Near term risks facing the Northwest Territories economic outlook are the continued disruptions to global supply chains, persistently high inflation, and decreased demand for Northwest Territories exports such as diamonds and Aurora tourism. These risks, which are driven by international factors, including China's pandemic policies and the Russian invasion of Ukraine, are expected to persist throughout 2023. This could lead to increased costs of living and doing business, lower consumer spending and investment, and reduced export values. Taken together, these could cause economic growth to decline further than currently projected.

However severe these short-term risks may be, failure to prepare for inevitable structural shifts to the Northwest Territories economy, such as the closure of the remaining diamond mines within the next decade, poses a more significant threat than the short-term economic disruptions.

Structural challenges specific to the Northwest Territories include ongoing labour shortages, a lack of economic diversification, and maturing diamond mines. These challenges pose both intermediate and long-term risks to our economy. Most pressing of these challenges is labour shortages in key Northwest Territories industries such as healthcare, construction and education, as well as the impending end of the diamond mining in the Northwest Territories, which has been the engine of private sector for the last two decades.

A persistent lack of skilled and unskilled workers will further hamper private sector activity and reduce the quality of living and working in the Northwest Territories while the expected closure of all operating diamond mines by 2030 will lead to a severely diminished NWT mining sector. Several mineral resource projects, including the Nechalacho rare earth project, are currently underway in the NWT. However, at this time there are no mining projects on the horizon large enough to fill the gap in economic output and well-paid jobs that will be left by the closure of the diamond mines.

Persistently high inflation poses a downside risk to the economic outlook because households and businesses are likely to reduce or delay purchases while prices rise. This will lead to less economic activity. Consumer spending, which supported the Northwest Territories economy throughout the pandemic, slowed in 2022 as pent-up demand dissipated and consumer prices rose by 6.8 percent. Although inflation is moderating, prolonged or rising inflation risks accelerating the slowdown in consumer spending.

High inflation has triggered several rounds of interest rate hikes by the Bank of Canada. The bank's target for the overnight rate increased by 425 basis point last year, rising from .25 percent in January of 2022 to 4.5 percent in January of this year. Higher interest rates make borrowing and investing in the NWT more expensive and increases the risk of loan defaults. This has the potential to stifle spending by households and industry.

Total investments by the private and public sector are forecast to grow by 8.2 percent in 2023 helping to soften the contraction in real output. However, should the Bank of Canada raise interest rates further, private sector capital investment may be lower than currently forecast.

The unemployment rate dipped to 5.1 percent in 2022 and the employment rate, or the share of working age residents that are employed, rose to 73.1 percent, a 4 percentage point increase from 2021 and an 8 percentage point increase from 2022 -- or sorry, 2020.

This suggests the NWT is near full employment. Tight labour markets are occurring at a time of rising job vacancies, and this has resulted in labour shortages in several industries including healthcare, construction, food services, and education. Labour shortages pose short-term and long-term risks to the economic outlook because an inability to fill vacant positions may hamper private sector activity; i.e., businesses cannot maintain or expand operations and may reduce the quality of life for Northwest Territories residents as previously available services become limited or unavailable.

Labour shortages are a chronic issue for the Northwest Territories due to the small population and is one reason for a large number of non-resident workers. Between 2008 and 2018, the number of non-resident workers fluctuated between 5,500 and 8,500, representing between one-quarter and one-third of the Northwest Territories workforce. These jobs including seasonal, rotational, temporary, and special projects that fill gaps that are not met by the resident workforce. Total aggregate earnings paid to non-resident workers ranged from $275 million to $440 million a year between 2008 and 2018, representing close to one-fifth of all employment income generated in the territory. This employment income earned in the territory by non-residents represents lost income that could have been spent in our economy.

One contributing factor to chronic labour shortages is the outsized footprint of the government in the economy. Government administration at all level - federal, territorial, municipal and Indigenous - is the largest industry in the Northwest Territories, generating over a fifth of the economic output. It is the largest employer, employing close to 6,500 Northwest Territories residents, or a third of all NWT employees. Public administration includes courts, policing services, correction services, firefighting, defense and government administrative work but excludes the health, social assistance, and education sectors. The public sector typically offers pay packages that small and medium-sized businesses in the NWT cannot compete with, and this may be worsening staff shortages in the private sector.

For the first time, there are now more residents employed in the public sector than in the private sector. This significant and concerning development occurred during the pandemic and continues to persist. If the composition of the employment does not reserve, there is a risk that the NWT economy will become increasingly dependent on the government leading to a hollowing out of our private sector.

Aging diamond mines are a significant risk to the economic outlook of the NWT. Diamond mining is a primary driver of our economy but currently producing mines are set to end in 2030 as stated. The Diavik Diamond Mine is scheduled to close first, in 2025, followed by the Ekati Mine in 2029, and Gahcho Kue in 2030. Ekati resumed production in January of 2021 and could operate for an additional decade if underwater mining is successful and the Sable Deep, Fox Deep, and Point Lake Deep kimberlite expansions go ahead. Decisions to expand existing diamond mines and develop new kimberlite pipes will depend on a range of economic and financial factors, including global, capital, credit conditions, consumer demand, and rough diamond prices.

Diamond values and production have recovered from steep declines in 2020 caused by weak consumer demand for this luxury good, the pandemic disruptions, as well, in 2022 Northwest Territories diamond shipments were valued at $17.8 million, a 17.9 percent increase from 2021, due to the widening spread between prices for rough and polished diamonds, and a 42 percent rebound in the rough diamond prices for the last two years.

Madam Speaker, I think I actually have way too much stuff here to talk about, so I am going to stop there with this. But I did want to say if any of my words here sound familiar, they can be found attached to the Minister of ITI's address on the budget. And the reason that I chose to read this, and unfortunately did not get all the way through the economic forecast -- and I thank ITI for all their work on it -- was that I'm really concerned to see this shift in our economy to the public sector. And I have actually heard in this House almost a sense of pride or of such for keeping that sector going and in fact growing it during the pandemic.

For me, we had a very missed opportunity when it came to the pandemic. At that time, the federal government was quite flexible. They were open to new ideas. They were trying to think creatively. And, really, they just wanted us to come up to them with solutions. And I really think that rather than taking this time to really re-evaluate and come up with some new thinking, we just kept with the status quo and we just kept doing things the same way. And now that that money was dried up and we didn't use it to be innovative or to make any changes, we're now in the exact same boat that we were prior to that. All that did was offset the time for our economy to fail, you know, from that period of time until much later.

I am encouraged by what we have heard from the diamond mines and that perhaps there is an expansion to their timelines. However, that is not anything that we can rely on as a government. So where I want to go with this is that I would hope that I can encourage Cabinet and departmental people looking at government renewal to really look at the public sector and start evaluating job descriptions better. Look at the people that come to me and tell me that they only really work about 50 percent of the time and should they try to take on more work, they are stopped by union processes, etcetera. So I really think that given the state that we're at, now is the time to make some risky moves. We have nothing to lose, Madam Speaker. We're going to fail. We're at that stage, at that point. So I just want to urge my Cabinet colleagues to get creative, to start thinking about ways to diversify. Let's look into cold climate storage for computer systems. Estonia, when I was at COP, is doing that kind of work where they use their climate to host a bunch of servers. We could be doing things like that. We should definitely be supporting the agriculture sector after everything that we heard at our food security panel, which I would encourage all members of the public to watch. It's on the Legislative Assembly's website and social media pages. Really, I think that could be our key way to solving our problems here, not only from the supply chain perspective but also then from an employment perspective. As well as mental health and that grounding. You know, there is literally a mental health technique about -- and it is called grounding -- where you go outside, you take off shoes and you stand on the ground. And as human beings, we become very disconnected from nature and the earth, and I feel like this is a way that could provide benefits in many of our departments, not just from a food supply perspective.

So I'm going to leave it there, Madam Speaker. I want to thank everyone for indulging me and listening to the very dry economic forecast and not so hopeful, I guess. But, you know, I'm looking forward to a new Assembly and a new term and some new ideas coming in and hopefully we're going to be able to turn this economy around, Madam Speaker. Thank you.

Ms. Nokleby's Reply
Replies To Budget Address

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The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Member. Replies to budget address. Member for Kam Lake.

Ms. Cleveland's Reply
Replies To Budget Address

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Caitlin Cleveland

Caitlin Cleveland Kam Lake

Thank you, Madam Speaker. Madam Speaker, this is the Northwest Territories and we do things a little different up here. The way we live, work, and govern together is different than southern Canada. It's a product of a different history.

Madam Speaker, the North continues to be a place of unrivalled opportunity. We're open for business, adventure, and life. We want to grow our population and our economy. During the budget address, the Minister of Finance stated the primary economic driver for the NWT economy will be government investment. I would agree that this is the case, at least for the short term, until we further diversify our traditionally resource-based economy.

As long as government investment is driving the economy of the Northwest Territories, the government has an obligation to ensure that we maximize the benefits of this investment for Northerners. This is what we meant when we agreed that adopting a benefit retention approach to economic development would be a priority of this 19th Assembly. This means we cannot settle for -- wait, Madam Speaker, this is my 2020 budget address or maybe a 2021 or a 2022. They all kind of start to blend together, much like our main estimates over the years.

I start to feel like we're in our own version of the movie Groundhog Day, Madam Speaker, and I hated that movie.

Madam Speaker, ultimately this is a business as usual budget, a status quo budget that does not serve us at a time where we need to innovate and transform. It should create a vision, know where we want to go, and plan on how to get there. I get that we're only here for four years but our budget needs stars that are so effective that the next Assembly wants to carry them forward to build on our success. That got me thinking, Madam Speaker - how can I do my budget address a little different this year and maybe help break the Groundhog Day.

Cycle and together build a better blockbuster.

I want to start with a positive, to pay some gratitude to the other side of this House, and then I want to focus on three things I think would have helped this government release a blockbuster less reminiscent of Groundhog Day.

As a promised start, some gratitude. Madam Speaker, I want to highlight the bold move taken by the finance minister in the fall when she broke the cycle of a traditionally unrealistic large capital budget that once required an even larger borrowing plan commitment. This was once used as promises for political gain, or an easy way to say yes to everything while accomplishing very little of it. This change will not only make the GNWT more fiscally responsible, it will also enable the difficult conversations about what actually is a priority of this government. So kudos to the other side.

Madam Speaker, I would also like to acknowledge the work of staff across government who have worked hard to prepare the budget within the parameters they were given.

So three things to build a better blockbuster. First is a budget. You don't make a movie with the same budget you made the last one. You build a new budget that makes sense for the landscape, stars, and potential return on investment of this one. And that brings me to government renewal.

I want to see results-based budgeting where we make budget decisions that position us with flexibility, strength, and courage to choose wisely and be well prepared to shift. What we have here is starting from what we've always done and then adding some forced growth. This shift is reliant on a successful government renewal. I support the intent of government renewal, Madam Speaker. We need to be able to cut the redundancies and increase the effectiveness of public dollars to achieve our goals. This budget is missing any visible success of government renewal. While I support the intent, I do not feel a sense of urgency that needs to purvey government renewal exercises.

I hope the government renewal process will evolve GNWT program evaluations to focus on outcomes and value for dollar of the programs, but that needs to hurry up and show some results or it will sadly fade away.

Ensuring the government is using public funds to better serve NWT residents is half of the picture. Revenues are the other piece of government renewal, or building our blockbuster. The GNWT was built over decades during a different time and has today given risk aversion the starring role in an action adventure world. This government needs to raise revenues for a more balanced approach to fiscal sustainability. We need to build a bustling North with population growth and a flourishing private sector, achieved by government getting out of the way of business, diversification, and proactively helping people figure out how to make their plans fly rather than asking if they were ever meant to fly in the first place.

Where there is a will, there is a way, Madam Speaker. Sometimes we just need to step out of the box of how it's always been done and out of the cubicle from where it's always been done. Empower staff to get out of the office. You do not change lives from a cubicle, Madam Speaker. Be present and be proactive.

The second piece of building a blockbuster is supporting characters. Any good movie has a cast, not just one character. The GNWT's leading support characters are municipalities and NGOs. This budget does not go far enough to begin to close the municipal funding gap. Closing the municipal funding gap would bring 220 more jobs into the territory spread across every single community. So closing the municipal funding gap is huge. It means jobs, recreational programming, and infrastructure that have direct impacts on mental and physical health - the frontline operations that build connected, vibrant communities, Madam Speaker.

Our NWT NGOs struggle to keep the lights on and are ones the GNWT relies on the most when it comes to frontline service delivery to our territory's most vulnerable residents. Multiple GNWT departments are transitioning to application-based funding pots aimed at NGOs. But empowering them to keep the lights on and keep staff paid is just as important as program dollars. One-time increases, far below inflation, do not keep these organizations running. So I agree with colleagues that inflationary increases need to be delivered to all NGOs this government relies on and on an annual basis if this change is going to be sustainable.

Honourable mention here, Madam Speaker, is Jordan's Principle. This territory's incredibly reliant on Jordan's Principle. Our office has helped residents access Jordan's Principle supports for treatment, rent, food, while communities across the territory rely on them for so much more. Jordan's Principle floods tens of millions of dollars into this territory every year. If Jordan's Principle funding were cut to our territory, it would suffer immensely and this needs to be better tracked.

Madam Speaker, the third piece this blockbuster needs is a star. A star is the character almost everyone can connect with, leave something behind, and ultimately you don't forget them. Hansard could tell you who the star of this Assembly has been, but this budget could not. This term, where the most regular thing we did as Regular MLAs, was host housing-themed days on top of housing-themed days. Social development made housing its one and only priority on top of its regular work, and we'll continue to table another housing report this sitting. This week alone, Regular Members spent three days in Committee of the Whole reviewing the Housing NWT budget - the fifth smallest budget of the government. And a small fraction of the health budget. We have worked hard to force the hand of the government in choosing its blockbuster star, but this script has no star, no legacy. On multiple occasions, Cabinet Members have said housing is a priority of this Assembly, but talk is cheap and houses are not. True, Madam Speaker, this Assembly has invested more in housing than any other but when you're starting from crumbs, a cookie looks like a feast.

Let's be honest, I would have loved an NWT version of the ambitious action adventure Nunavut 3000, but we're celebrating a hundred houses, the same number of houses Nunavut has built every year for the last three years in a row. Housing NWT is not sustainability funded. With inflation and rising cost of living, access to affordable housing in the NWT has gotten worse. Housing drives economic development, education, health outcomes, population growth, and climate change mitigation and adaptation. The impacts are huge. Housing NWT needs to shift, evolve, be bold, and also be prepared to let go.

I know that April 1st is supposed to bring a new era of Housing NWT but I'm not confident the changes will go far enough to address the NWT's affordable and accessible housing crisis. I want to know the future of housing funding models and if they will include realistic and sustainable O and M, the evolution of autonomy of Indigenous governments and organizations and empower housing delivery, if unintended policy barriers will be addressed, if shelters and safe spaces will be fairly funded, and if the vision of Housing NWT will be as ambitious as it needs to be to carry the starring role.

So there you have it, my three recommendations to help turn Groundhog Day into a blockbuster.

Madam Speaker, I took a risk today, loosely comparing a very serious budget to a movie production, but both ultimately are big business where people's livelihoods rely on their successes.

Today my message is this: Take risks, shake up the way things have always been done, don't forget about your supporting characters, and choose a star, build a legacy.

Madam Speaker, this budget is not a done deal, and I look forward to the continued budget negotiations of 2023. Thank you, Madam Speaker.

Ms. Cleveland's Reply
Replies To Budget Address

Page 5360

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Member. Members, we are going to take a short recess. That was a lot. I think our translators deserve a little bit of a break.

---SHORT RECESS

Ms. Cleveland's Reply
Replies To Budget Address

Page 5360

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Acknowledgements. Oral questions. Member for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Madam Speaker. Madam Speaker, today I brought up, across my communities, apprenticeship programs, you know, the lack of -- I ain't going to say lack of trying, it's just a lack of manpower, I guess, in having certified people across the territory in all communities and especially my riding. Madam Premier -- Madam Speaker, you got a promotion there. No, I'm hoping that with trades with the local LHOs, how many communities in my riding in Nunakput right now have a trades apprentice in the community? Thank you. Or communities I represent. Housing. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. Minister of Housing NT.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Madam Speaker, and thank you to the Member for his question, and it's very important that, you know, we address these -- we address these situations in the smaller communities, especially when it comes to trades and especially when dealing with the higher Arctic communities. I don't have the numbers in front of me right now, but I can follow up with the Member. But I look forward to continuing this conversation. Thank you, Madam Speaker.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Madam Speaker. Madam Speaker, we have the trades trailer sitting in Inuvik outside of the Aurora College. I'm just wondering, we've been asking for those in the communities, like Paulatuk and Ulu and Tuk. Are they able to utilize those trailers to get a trades program going on in the communities? With all these new houses that we have being built, it would be good to tag along with that and to have youth because youth are graduating now and they have -- basically we have nothing, really nothing going on in our communities, Madam Speaker. Are we able to put trades programs in the local communities where the new houses are being building built with our local LHOs? Thank you, Madam Speaker.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Madam Speaker. We don't -- Housing NWT doesn't own the trades trailers in the Beaufort Delta. But I can follow up with my colleague in looking at what opportunities we can come up with in looking at the collaboration with the Member's riding as well too. And I just want to say that it's trades and looking at apprenticeship is what housing has really prided on within this government. We've made significant improvement building the requirement for trades apprenticeships also into our contracts that -- for our hundred unit builds that are being constructed within the lifetime of this government. I look forward to further conversation with the Member. Thank you, Madam Speaker.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Madam Speaker. Will the Minister commit to working with the community governments in Nunakput riding to increase housing apprenticeships in the region? Thank you, Madam Speaker.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Madam Speaker. Absolutely. I would like to look at those numbers, look at the interest. I do understand that the communities in Nunakput are quite isolated. I'm interested to see what else we can be doing different in the Member's riding. Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. Final supplementary. Member for Nunakput.

Jackie Jacobson

Jackie Jacobson Nunakput

Thank you, Madam Speaker. In regards to that, I just want to say again, we have youth that are graduating that are potentially able to go into the trades program. We could take care of our own units, housing units in the communities and having our own local people taking care of the -- taking care of ourselves and caretakers for that.

Will the Minister commit to establishing local apprenticeships in the Nunakput riding, in all four of my communities, working with the local leadership, ask Aurora College to get the trades trailers in and start working towards that? Thank you, Madam Speaker.

Paulie Chinna

Paulie Chinna Sahtu

Thank you, Madam Speaker. And absolutely, this already has been a success in the territory. I want to just mention Ne'Rahten Developments in my riding has taken a hands-on approach and have worked directly with CMHC and directly with the federal government. They were able to access federal funding. I was fortunate enough to attend their housing forum. It's quite interesting what that Indigenous group and government have come together to establish and work towards trades and home and repair programs within our community. Very optimistic about what we can do in Nunakput. I'm more than willing to work with the Member and work with his Indigenous governments as well in Nunakput. Mahsi, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you. Oral questions. Member for Yellowknife North.

Rylund Johnson

Rylund Johnson Yellowknife North

Madam Speaker, is this going to be the year that the Minister of holidays gives us Family Day? Well let's find out. When will we get a statutory holiday in February? Thank you, Madam Speaker.

The Deputy Speaker

The Deputy Speaker Lesa Semmler

Thank you, Member. Minister for Education, Culture and Employment.

R.J. Simpson

R.J. Simpson Hay River North

Thank you, Madam Speaker. Well, since the last time the Member asked this, I did add another holiday. It's not the holiday he was looking for though. So there will not be a statutory holiday on February 21st. The Member is well aware that that takes legislative change and that is not in the works. So it won't be happening this year. However, as I stated last year, this is the year that we are going to look at the Employment Standards Act and see what changes need to be made. So there will be engagement on the act including the potential establishment of a holiday in February. So the department will be going in the spring and consulting on that. Thank you.