Debates of March 2nd, 2023
This Hansard is the unedited transcript and will be replaced by the final copy soon (generally within 5 business days). In the meantime, direct quotes should not be used, when the final is published it will seamlessly replace this unedited copy and any existing links should still work.
This is from 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.
Topics
- Oral Questions
- Members Present
- Prayer
- Minister's Statement 320-19(2): Lack of Transparency around Spills at Kearl Oil Sands Development North of Fort McMurray
- Minister's Statement 321-19(2): Infrastructure Climate Change Adaptation
- Minister's Statement 322-19(2): NWT Community Flood Response
- Member's Statement 1407-19(2): Spills at Kearl Oil Sands Development
- Member's Statement 1408-19(2): Yellowknife Liquor Stores
- Member's Statement 1409-19(2): Aftercare and Detoxification Services
- Member's Statement 1408-19(2): Yellowknife Liquor Stores
- Member's Statement 1410-19(2): Energy Strategy
- Member's Statement 1411-19(2): Operating Businesses in Public Housing
- Member's Statement 1412-19(2): Deh Gah Gotie School Trip to Mexico
- Member's Statement 1413-19(2): Public Corporate Structures
- Member's Statement 1414-19(2): Mining Royalties Modelling
- Member's Statement 1415-19(2): Eulogy for Diane Edwards
- Question 1416-19(2): Petroleum Spill in Alberta
- Question 1417-19(2): Energy Strategy
- Question 1418-19(2): Detoxification and Aftercare Services
- Question 1419-19(2): Mining Royalties Modelling
- Question 1420-19(2): Small Business in Public Housing
- Question 1421-19(2): Public Tender on Yellowknife Liquor Stores
- Question 1422-19(2): Crown Corporation Structures
- Written Question 60-19(2): Physician Recruitment and Retention
- Return to Written Question 57-19(2): Payments for Leased Space
- Bill 68: An Act to Amend the Child Daycare Act
- Committee Report 46-19(2): Standing Committee on Government Operations Report on Bill 67: An Act to Amend the Fire Prevention Act
- Tabled Document 865-19(2): Information for Return to Written Question 57-19(2): Payments for Leased Space
- Tabled Document 866-19(2): Canada's Guidance on Alcohol and Health: Final Report
- Tabled Document 867-19(2): Environment and Climate Change Canada Guidance for Using Climate Pollution Pricing Proceeds Tabled Document 868-19(2): GNWT Mineral Royalties Presentation to Yellowknife Geoscience Forum: Financial Modeling in Support of Revising the Royalty Regime of Mining in the NWT by Michael Doggett, Nick Dennahower, Hendrick Falk
- Tabled Document 869-19(2): Order of the Alberta Energy Regulator to Imperial Oil Resources Limited regarding the Kearl Oil Sands Processing Plant and Mine
- Bill 72: Opioid Damages and Health care Costs Recovery Act
- Bill 73: An Act to Amend the Legislative Assembly and Executive Council Act, No. 4
- Consideration In Committee Of The Whole Of Bills And Other Matters
- Report Of Committee Of The Whole
- Orders Of The Day
Question 1418-19(2): Detoxification and Aftercare Services
Oral Questions
Question 1418-19(2): Detoxification and Aftercare Services
Oral Questions

Frieda Martselos Thebacha
Mr. Speaker, since the contract between Poundmaker's Lodge and Health ended last year, the NWT has lacked an option to send NWT residents to an Indigenous-based addictions treatment centre in the south.
Can the Minister tell us if her department has decided on a new service provider for this and will it be on track to be ready for April 1st? Thank you, Mr. Speaker.
Question 1418-19(2): Detoxification and Aftercare Services
Oral Questions

Julie Green Yellowknife Centre
Thank you, Mr. Speaker. And thank you for the question. There were two responses for the request for proposals for Indigenous-focused aftercare -- pardon me, a facility-based treatment. And they are being reviewed at this time. It is still our intention to have something in place by April 1st. Thank you.
Question 1418-19(2): Detoxification and Aftercare Services
Oral Questions
Question 1419-19(2): Mining Royalties Modelling
Oral Questions
March 2nd, 2023

Kevin O'Reilly Frame Lake
Merci, Monsieur le President. My questions are for the Minister of Industry, Tourism and Investment.
I was surprised to see a presentation on modeling of mining royalties at the November geoscience forum from a consultant hired by her department. I understand that this Vancouver consultant was hired through a sole sourced contract for $75,000.
Can the Minister confirm the hiring process and amount for this consultant and explain why this work was sole sourced? Mahsi, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

The Speaker Frederick Blake Jr.
Thank you, Member for Frame Lake. Move Minister responsible for Industry, Tourism and Investment.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Caroline Wawzonek Yellowknife South
Thank you, Mr. Speaker. Mr. Speaker, there is -- right now there's actually two contracts, and individually I believe they both come under the limits for what is permissible for sole sourcing; however, they are going to one individual -- or one entity. So I'm certainly live to the reasons for that and very live to the reasons why a department would want to use a sole source. One of them is where the party or entity that you're contracting to is really -- is the only or essentially the only entity or person who can do certain work. In this case, models are, as I understand it, maybe not quite proprietary but certainly close to it. So rather than having to go out and have to rebuild and reexamine the entirety of the process, they are seeking to have the same person build these models and work off of those models in order to ensure that there's some consistency with the work that's been done and avoid any unnecessary risk to get everything done in a timely fashion.
I would note that this individual does have a fairly high degree of expertise in this area, does exactly this type of modeling for the federal government, and so that was the basis of going with this party. Thank you, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Kevin O'Reilly Frame Lake
Merci, Monsieur le President. I want to thank the Minister for that. This consultant seems to have already concluded the NWT is doing just fine with regard to its competitiveness and royalty regime. Can the Minister explain what this consultant has been asked to do and when that consultant's work will be made public? Mahsi, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Caroline Wawzonek Yellowknife South
Thank you, Mr. Speaker. Mr. Speaker, so again, this is work that's being done to develop models. This has been something that I know I've spoken about in this House more than once in the last year with respect to the process for as part of developing the regulations and specifically with royalties, that there would be a process by which different models were run through -- prototype models were run through to actually best understand what we're looking at before we make final policy decisions for the kind of royalty regime we want. That is the process that they're in right now and to develop exactly those different models and then to apply those models to different types of mines, different types of mine prototypes.
So once that's done, there will be an independent third party review done as a sort of verification process or an auditing process and that will go out through RFP to ensure that, again, that there's enough appropriate level of expertise and eyes on the different models and approaches before the final decisions are made. Thank you, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Kevin O'Reilly Frame Lake
Merci, Monsieur le President. The Standing Committee on Economic Development and Environment hired an independent expert with global experience, you know, helping governments manage resources. And that consultant found, quote, "NWT sells its nonrenewable resources more cheaply than most other jurisdictions in the world", end of quote.
ITI also commissioned the Natural Resources Governance Institute that found, quote, "NWT has one of the world's most charitable fiscal regimes for the mining sector", end of quote.
Can the Minister tell us whether her department considered hiring these other experts and what role, if any, these other studies will play in the modeling of mining royalties? Mahsi, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Caroline Wawzonek Yellowknife South
Thank you, Mr. Speaker. Mr. Speaker, this is an area that has been covered many times here with respect to whether or not, in fact, there's been a conclusion around competitiveness or non-competitiveness. And, Mr. Speaker, certainly one has to consider the fact that if there are no mines or less mines then there's no worry about there being any benefits because there won't be any benefits. There will be less benefits or no benefits. So, yes, the fact that there's going to be some disagreement on this one, I think, between the Member and I. That said, again, the feedback and response that we've had from standing committee, from other experts, has been considered; it is part of the "what we heard" report; it's part of the total package that goes to the technical working group of IGCS, or the Intergovernmental Council, and who then are able to direct what kinds of models should be done so that ultimately decisions can be made going forward as to what the final results should look like. Thank you, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Kevin O'Reilly Frame Lake
Merci, Monsieur le President. I want to thank the Minister for that. It's not clear who is really directing the modeling or how it's going to be done. Is it ITI alone, the Intergovernmental Council, the mining industry? Will there be any attempt to analyze past performance of the royalty regime or model what could have happened with government revenues or internal rates of return? We've got eight years now, Mr. Speaker, of real live data we could be working with. So can the Minister tell us who is directing the modeling, whether the public will get a say, and whether any modeling will be done of past performance? Mahsi, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions

Caroline Wawzonek Yellowknife South
Thank you, Mr. Speaker. I'm surprised it's unclear, Mr. Speaker. ITI is the government lead on the Mineral Resources Act and has been now for -- well many, many years, long before my time. And it's, I think, quite well known we're quite proud of the fact that this is being codeveloped with the ICGS, or Intergovernmental Council. There's a working group there, as I know I've spoken to many times before. And while ITI is the lead, certainly this has, of course, gone back to the partners and the co-development partners at ICGS. They've helped to develop the policy options that are being modeled and that -- and also we'll be basing that on historical production as well as looking to the future of what types of models are required such as, for example, base metals. So that is where it's at. That's who is directing it and looking forward certainly to seeing that work move forward, reminding of course that along the way certainly, Mr. Speaker, I remain available and open to having opportunities to speak to the Member or others about what is happening. Thank you, Mr. Speaker.
Question 1419-19(2): Mining Royalties Modelling
Oral Questions
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