This is page numbers 6211 - 6256 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.

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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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The Chair

The Chair Lesa Semmler

Thank you. I will now open the floor for general comments. Are there any general comments? Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Yeah, thanks, Madam Chair. I'd like to find out what impact the supplementary spending will have on the supplementary reserve for operations. Thank you, Madam Chair.

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
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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. So, Madam Chair, we have -- no, not this one, Madam Chair. Just one moment, or actually perhaps I will see if deputy minister or Mr. Courtoreille has it up in front of them.

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

The Chair Lesa Semmler

Deputy minister.

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

Thank you, Madam Chair. So the impact on the supplementary reserve of this will -- the total impact is $32,890,000, and that is -- that's inclusive of federal contributions to the government, so the net impact is $32.8 million. So we have a $35 million reserve so there's $2.1 million left in the reserve. 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 Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Yeah, thanks, Madam Chair; that's what I was worried about. So there's only $2 million left in this supplementary reserve and we're, what, about maybe two months into the financial year, and there's probably likely to be maybe two, three more supplementary appropriations. What happens when that reserve is finished? Do we have to go short-term borrowing and pay increased borrowing costs and so on; what happens? Thank, 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.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Yes, so, Madam Chair, if we do exceed the amount that's available in the supplementary reserve, then that does potentially draw down on what would have been in anticipated or projected to be as a surplus. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you. Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Okay, thanks. And so the supplementary reserve two years ago was $65 million, and I'm just wondering if someone can tell me why it was reduced to $35 million in this year's budget. Thank you.

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The Chair

The Chair Lesa Semmler

Thank you. Minister.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, this is an amount that's more in line with what historical amounts for a supplementary reserve would have been, although I think even then still perhaps a bit enhanced. The $65 million was a number that we added or increased supplementary reserve to during COVID when it was apparent that, and very obvious, all governments were facing significant and unexpected needs that were arising over the course of that period of time. Obviously with the end of COVID, it was hoped that we would not continue to require that level of increase to the supplementary reserve. 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 Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Yeah, thanks for that. I guess given the experience with climate variability, or dare I say climate emergency, over the last couple of years with floods, fires, etcetera, I think we have to seriously look at revising that supplementary reserve so we don't have to resort to short-term debt and additional spending. What is the department going to do about this? 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.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. Madam Chair, that's likely a question that requires not only the Department of Finance to be involved but also the Department of Infrastructure and ECC. So certainly can commit to taking that back to my colleagues and having that bigger conversation. It doesn't necessarily speak to the reason why we are seeing -- or certainly not the only reason why we're seeing this impacts here on this sup. A lot of our impacts -- some of the impacts are due to the floods last year but there's also some fairly significant amounts attached to health and social services here.

So one thing I would note, Madam Chair, we did -- we are seeing and you would see -- have seen it at the time of our main estimates that ECC does have very a much more significant increased fire suppression budget now than what they had historically, and there is a small amount here to further enhance that. So, again, whether it needs to be the sup reserve or whether it should more appropriately be within the budgets of the departments that do that work, I think that's probably a bigger conversation to be had. Thank you.

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 Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Yeah, thanks, Madam Chair. Yeah, and I appreciate the Minister's commitment to have that conversation. So I just want to confirm there's no money in this sup for the fire suppression and relief work that's going on for Hay River and K'atlodeeche, is that the case? 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.

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Caroline Wawzonek

Caroline Wawzonek Yellowknife South

Thank you, Madam Chair. There's nothing extra in this. There is just shy of $19 million, though, in ECC's budget for fire suppression efforts this fiscal year. So obviously the efforts that have been undertaken already to fight that fire would have come out of that budget, and then with respect to the emergency evacuation and emergency response, I mean that, again, the EMO sits as well under MACA so certainly a lot of that would be expected at least to be fronted from there.

A large expense -- 90 percent of any Disaster Assistance Program monies would be refundable, but obviously that remains to be seen exactly how that comes out in the course of time. And the enhancements that we've made to support the communities to support the United Way and to support individuals with income disruptions, those are currently being funded from within. Thank you.

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The Chair

The Chair Lesa Semmler

Thank you. Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Yeah, thanks, Madam Chair. I guess I have a funny feeling, though, that there's going to be some more -- another supplementary appropriation that's going to contain money that's required to help people in Hay River, and I'll certainly support that, but I think we're going to be making a bigger hole in that supplementary reserve than we would have liked. But I guess I'd like to get an explanation from the Minister, even with this supplementary appropriation, how does this affect the operating surplus in compliance with the fiscal responsibility policy? Thanks, Madam Chair.

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

The Chair Lesa Semmler

Thank you. Minister.