Thank you, Member for Hay River South. Minister responsible for Infrastructure.

Thank you very much, Mr. Speaker. Mr. Speaker, and I -- you know, I recognize the Member's concerns. You know, I've been to Hay River several times to have a community meeting and, you know, it is important to the Member's constituents that, you know, there's great concern that, you know, we're not getting our tugs out of Hay River on time and, you know, it reflects a lot of our disruption up the valley. So, you know, I think the Member's going to be really happy right now because we are getting this started. And I appreciate that, you know, we have talked about this and talked about this but, you know, we really seen -- you know, last year where we just had struggles getting our supplies into Sachs Harbour. That is still the point that we're at.

So Mr. Speaker, I want to let the Member know that we are just finalizing an RFP for the initial phrase of the dredging. We want to call it harbour restoration, and it will be posted in the next couple days, Mr. Speaker; either today or Monday. And I will give a head's up notice to both the Members from Hay River on where we're at with the RFP process.

But I also want to take this opportunity, Mr. Speaker, to thank the Members for their patience as we worked through a number of things, such as the engineering permitting process to get the first phase underway, which will concentrate on the channel. And the fisheries, so that they can have access to the harbour, Mr. Speaker. I would be remiss if I didn't thank the federal government on their assistance in funding this phase of the harbour restoration.

Mr. Speaker, we need our tugs out there in order to keep schedule this year. We need them. It's, you know, very important to some of the Members. It's important to this government as well as the communities to get supplies and fuel up the valley. We've spent a lot of money in the last year from this government, and we can't afford to do that anymore. So I just want to thank the Member for the question. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. That was pretty well the only question I had. And I'd like to thank the Minister for the work that the department has done to make this happen. Like I say, you know, in the last probably 20 years we haven't seen anything happen with the channel, and I think people in Hay River will be pleased to hear, you know, the efforts that the department and this government has made to make this happen this year. So more of a comment than anything. Thank you.

Thank you, Member for Hay River South. Taken as a comment. Colleagues, our time for oral questions has expired. Member for Kam Lake.

Thank you very much, Mr. Speaker. Mr. Speaker, it's Friday so I figured I'd seek unanimous consent to return to oral questions, number 7 on the orders of the day. Thank you.

Thank you, Member for Kam Lake. The Member is seeking unanimous consent to return to item 7. Are there any nays?

---Unanimous consent denied

Sorry. Written questions. Member for Tu Nedhe-Wiilideh.

Yeah, thank you, Mr. Speaker. Written questions I have is a document for unresolved matters of the federal Indian Day School. I'd like to table this document -- or sorry written question, I'd like to put this on the record. Thank you. I thought we were done. Okay, thank you, Mr. Speaker.

Unresolved matters of the federal Indian Day School. My questions are to the Premier regarding the unresolved matter of the federal Indian Day School:

1. On April 1, 1969, the Roman Catholic Church and Anglican Church relinquished control of the federal Indian Day Schools and transferred the programs to the Northwest Territories. There were 29 federal Indian Day Schools in the NWT where Indigenous children and youth were subjected to physical, emotional, sexual abuse, and cultural genocide. Can the Premier provide in detail the steps the Government of the Northwest Territories has taken to formally acknowledge and document these abuses;
2. Survivors want an opportunity to share their experiences and stories and preserve these for historical records. Can the Premier describe in detail what the GNWT has done to set up a commission to listen to these experiences and stories and establish an archive for on-going learning and research similar to the Truth and Reconciliation Commission of Canada;
3. The Prime Minister of Canada and the Pope formally apologized to residential school survivors and acknowledges the intergenerational damages caused by residential schools. What is the rationale for the Premier not apologizing for the GNWT's role in its abuses and cultural genocide of Indigenous children and youth with federal Indian Day Schools; and,
4. What position would the GNWT take on a class action lawsuit brought forward by survivors of the federal Indian Day Schools?

Mr. Speaker, I'd like to put this on the record. Mahsi.

Thank you, Member for Tu Nedhe-Wiilideh. Written questions. Returns to written questions. Replies to the Commissioner's address. Petitions. Reports of committees on the review of bills. Reports of standing and special committees. Member for Nunakput.

Thank you, Mr. Speaker. Your Standing Committee on Economic Development and Environment is pleased to provide a Report on Supporting Northern Businesses and commends it to the House, Mr. Speaker.

EXECUTIVE SUMMARY

The Standing Committee on Economic Development and Environment made it a priority early in the life of the 19th Legislative Assembly to increase the northern responsiveness by government policies and services in an effort to stimulate diversity among northern businesses, particularly Indigenous businesses. To achieve this goal, committee reviewed Government of the Northwest Territories (GNWT) policies, programs, and legislation related to business development. Committee also conducted internal research and engaged with stakeholders and the public at large. Several Members of the 19th Assembly raised concerns with support for the private sector especially in response to the COVID-19 pandemic. The committee has considered all this information and used it to inform a range of recommendations to the GNWT with the intent and purpose of building and diversifying the NWT economy and improving business support services and programs.

Recommendation 1:

The Standing Committee on Economic Development and Environment recommends that the GNWT increase transparency to all capital projects and especially public three-year capital plans of projects of small communities and regional centres so businesses can plan.

Recommendation 2:

The Standing Committee on Economic Development and Environment recommends that the GNWT track and limit sole source contracts by creating a target to ensure:

1. No more than 15 percent of all contracts over $25,000 are issued to sole source contracts;
2. Regular public reports and achievement target be provided within six months of the end of each fiscal year; and,
3. That these public reports outline sole source contracts given to non-NWT businesses as well as the departments using sole source methods most often.

Recommendation 3:

The Standing Committee on Economic Development and Environment recommends that contractual provisions limit change orders to no more than 15 percent of the original cost of the project and that be a regular review of change orders requiring ministerial oversight and no change orders greater than $10,000.

Recommendation 4:

The Standing Committee on Economic Development and Environment recommends to improve public reporting actual benefits achieved under negotiated contracts to better track the impact of this spending; and, further recommends that the GNWT's public reports on this spending indicate the local accommodations used and the number of jobs created.

Recommendation 5:

The Standing Committee on Economic Development and Environment recommends that the GNWT review the U.S. Small Business Administration 8(a) Program, which currently serves Indigenous businesses, such as those owned by the Alaska native corporations and native Hawaiian organizations with the purpose of developing similar programs like this in the NWT.

Recommendation 6:

The Standing Committee on Economic Development and Environment recommends that the GNWT create and implement an Indigenous Procurement Policy that addresses economic gaps in the NWT by giving preference to Indigenous businesses.

Thank you, Mr. Speaker.

Thank you, Member for Nunakput. Member for Nunakput.

Thank you, Mr. Speaker. I move, second by the honourable Member from Deh Cho, that the Committee Report 53-19(2), Standing Committee on Economic Development and Environment Report on Supporting Northern Businesses deemed read and printed in Hansard.

Member for Nunakput, we'll have to make a short correction here.

I'll start over again. I move, second by the honourable Member from Frame Lake, that the Committee Report 53-19(2), Standing Committee on Economic Development and Environment Report on Supporting Northern businesses be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.

Thank you, Member for Nunakput. The motion is in order. To the motion?

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The report will be deemed read and printed in Hansard.

Executive Summary

The Standing Committee on Economic Development and Environment (Committee) made it a priority early in the life of the 19th Legislative Assembly to increase the responsiveness of government policies and services in an effort to stimulate diversity among northern businesses, and particularly Indigenous businesses. To achieve this goal, Committee reviewed Government of the Northwest Territories (GNWT) policies, programs, and legislation related to business development. Committee also conducted internal research and engaged with stakeholders and the public at large. Several Members of the 19th Assembly raised concerns with support for the private sector especially in response to the COVID-19 Pandemic. Committee has considered all this information and used it to inform a range of recommendations to the GNWT with the intent and purpose of building and diversifying the NWT economy and improving business support services and programs.

Recommendation 1: The Standing Committee on Economic Development and Environment recommends the GNWT increase transparency for all capital projects and especially provide public Three-Year Capital Plans for projects in small communities and regional centres, so businesses can plan.

Recommendation 2: The Standing Committee on Economic Development and Environment recommends the GNWT track and limit sole source contracts by creating a target to ensure:

no more than 15% of all contracts over $25,000 are issued as sole source contracts,

regular public reports on the achievement of this target be provided within six months of the end of each fiscal year,

and that these public reports outline sole source contracts given to non-NWT businesses as well as the Departments using sole source methods most often.

Recommendation 3: The Standing Committee on Economic Development and Environment recommends that contractual provisions limit change orders to no more than 15% of the original project cost and that there be a regular review of change orders requiring Ministerial oversight for change orders greater than $10,000.

Recommendation 4: The Standing Committee on Economic Development and Environment recommends the GNWT improve the public reporting of actual benefits achieved under Negotiated Contracts to better track the impact of this spending, and further recommends that the GNWT's public reports on this spending indicate the local accommodations used and the number of jobs created.

Recommendation 5: The Standing Committee on Economic Development and Environment recommends that the GNWT review the U.S. Small Business Administration 8(a) program, which currently serves Indigenous businesses, such as those owned by the Alaska Native corporations and Native Hawaiian organizations, with the purpose of developing similar programs in the NWT.

Recommendation 6: The Standing Committee on Economic Development and Environment recommends the GNWT create and implement an Indigenous Procurement Policy that addresses economic gaps in the NWT by giving preference to Indigenous businesses.

Introduction

The Standing Committee on Economic Development and Environment (Committee) made it a priority early in the life of the 19^th Legislative Assembly to increase the responsiveness of government policies and services in order to stimulate diversity among northern businesses and in particular Indigenous businesses.

To achieve this goal, Committee reviewed Government of the Northwest Territories (GNWT) policies, programs, and legislation related to business development. Committee also conducted internal research and engaged with stakeholders and the public at large. Several Members of the 19^th Assembly raised concerns with support for the private sector most especially in response to the COVID-19 Pandemic. Committee has considered all this information and used it to inform a range of recommendations to the GNWT.

Why Does It Matter

A mandate item of the GNWT in the 19th Legislative Assembly is to implement the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Committee recognizes this commitment and believes the recommendations provided in this report support the GNWT towards the implementation of UNDRIP.

To advance reconciliation, the implementation of the recommendations below should follow the priorities set out in the Articles. According to the UNDRIP, Indigenous peoples have the right to self-determination and to freely pursue economic development in all their traditional and other economic activities (Articles 3, 5 and 20). The GNWT must take effective measures to ensure continuing improvement of economic conditions and Indigenous peoples have a right to be actively involved in administering economic programs affecting them (Article 21 and 23). They must also consult and cooperate in good faith when making decisions that impact Indigenous resources.

Several UNDRIP Articles address Indigenous people's right to lands and natural resources.

Article 32(2)

“States shall consult and cooperate in good faith with the indigenous peoples concerned through their own representative institutions in order to obtain their free and informed consent prior to the approval of any project affecting their lands or territories and other resources, particularly in connection with the development, utilization or exploitation of mineral, water or other resources.”

Engagement Process

Committee invited submissions or presentations from all Indigenous governments. Committee also solicited presentations from Indigenous economic development corporations and businesses across all regions of the Northwest Territories. Committee advertised its requests for public submissions and public presentations were live streamed. The following stakeholders presented to Committee. Recordings can be viewed in full on the NT Legislative Assembly YouTube channel,^{[1] and are included in the Appendix to this report:}

• Yukon First Nation Chamber of Commerce (Yukon Indigenous Procurement Policy)
• Gwich'in Tribal Council
• Tłı̨chǫ Investment Corporation
• Yellowknife Chamber of Commerce
• NWT Métis Nation
• Det'on Cho Corporation
• NWT Indigenous Leaders Economic Coalition
• Yellowknife Chamber of Commerce

Several internal briefings were held with the Minister of Industry, Tourism and Investment regarding the Procurement Review, mining, and the Mining Royalty Review, supports for businesses during the COVID-19 Pandemic, the Knowledge Economy Action Plan, Regional Economic Development Plans as well as the Business Development Investment Corporation.

Internal briefings were also held with the Minister of Infrastructure regarding major infrastructure projects and support for regional economic development through GNWT infrastructure projects.

Recommendations to Government

Based on this engagement, Committee provides several recommendations to the GNWT around the following themes:

• Building the NWT economy,
• Building a diversified economy, and
• Improving business support services and programs.

Building The NWT Economy

The GNWT is a significant player in the NWT economy. The Bureau of Statistics reports in 2021, the GNWT created $458.2 million dollars of value-added goods and services in the NWT economy. This represents 11% of the NWT's total GDP overall. The Bureau of Statistics also shows public administration was one of the fastest growing sectors in the NWT economy after Mining, Oil and Gas activities.

The impact of GNWT spending in the NWT economy, however, is significantly more than just the GNWTs impact on the territory's GDP. The GNWT's 2023-24 budget proposes spending $2.206 billion dollars. The 2023-24 Main Estimate budget shows the GNWT plans to spend over $1 billion dollars on grants, contributions, and transfers; $432 million is to be spent on compensation and benefits; $307 million on contract services and $126 million on fees and payments.

Procurement

Early in its review of business supports, Committee recognized that GNWT procurement is a significant contributor to the economic health of the NWT overall, especially in the regional centres and small communities. Procurement was both a focal point for SCEDE discussions and a concern for many regular Members of the 19^th Assembly. The topic of ‘procurement' was discussed over 500 times in the 19^th Assembly, far surpassing other Assembly discussions on this topic. Members advocated for a variety of changes related to improving administration, payment timelines, targeting procurement in small communities, etc.

A 2019-2023 Mandate of the GNWT is to “ensure government procurement and contracting maximizes benefits to residents and businesses.” The GNWT has set out to achieve this by:

• strengthening procurement policies and practices
• increase awareness of GNWT contracting opportunities, and
• improve NWT companies' participation in Business Incentive Policy (BIP)

Committee heard from stakeholders on this topic and received a variety of suggestions on how to improve procurement in the GNWT related to:

• planning and strategic administration of procurement
• improving payment timelines
• expanding the use of negotiated contracts
• improving vendor performance management
• increasing Indigenous business
• targeting procurement in small communities
• strategic procurement to build local business, especially indigenous businesses and businesses in remote communities

On November 4, 2021, the GNWT tabled a Report of the Procurement Review Panel. An independent panel reviewed GNWT procurement and issued over 50 recommendations. The GNWT responded to this panel's report, releasing an operational workplan on the Procurement Review September 2022.

On March 27, 2023, the Minister acknowledged this response was a summary of the work underway, but that the Government would be providing a more comprehensive response to the Panel's 50 recommendations later this summer.

While Committee supports the work of the GNWT to review procurement policies with independent experts, the public, and Indigenous governments, Committee believes more urgency is needed to affect meaningful change within the NWT's private sector and economic health overall.

Committee recognizes that the NWT economy is resource dependent and the current lifespan of diamond mining in the NWT is finite. And while efforts are underway to extend the life of diamond mines, expand critical mineral resource development, and diversify the economy, Committee also recognizes that none of these initiatives, at this point, will replace the economic value that diamond mining brings to the NWT. Other factors impact this sector of the economy as well:

Decades high inflation rates are impacting diamond mines operating costs, as well as labour, fuel, electricity, and equipment costs.

Diavik diamond mine is expected to end production in the first quarter of 2026.

Ekati (Arctic Canadian Diamond Company) may cease conventional mining in 2028.

Gahcho Kue (Mountain Province) has made positive steps in refinancing to reduce debt which “places the company in a position to pursue exciting growth opportunities in the Hearne discovery and Kennady North project”.

With mines potentially closing, the GNWT is the largest employer in the territory; public administration is the fastest growing sector. This speaks to the urgency behind Committee's efforts to improve GNWT procurement, and therefore how the GNWT spends its money can significantly alter the health of the NWT economy.

Committee held a public hearing with the independent panel to discuss the findings and recommendations. The themes of recommendations from this Panel are listed below:

• Establish a strategic approach to procurement
• Increase procurement opportunities and impact
• Make it easier to do business with the GNWT
• Create greater capacity to support procurement.

Committee agrees with the recommendations of the panel. Committee also acknowledges that the GNWT has made progress on procurement and that the GNWT has had to respond to a global pandemic in which several new GNWT programs were rolled out. However, Committee felt the GNWT's urgency to re-shape programs to respond to COVID-19 is the same urgency needed today to ensure the economic health of the NWT in the future.

Strategic Procurement

Committee agrees with the independent panel that more planning and communication around government procurement could maximize benefits for northern businesses.

The independent panel recommended that procurement should be treated like a ‘program' requiring things like objectives, targets, measurables, etc. By treating procurement as a program, the GNWT would ensure more supports to each stage of the procurement process such as:

• identifying and planning for the contract,
• advertising, communicating and outreach of the contract,
• awarding the contract,
• monitoring the project, and
• evaluating value for money spent.

Improved communications and advance planning

In the NWT, while there are a few highly developed companies and corporations, much of the private sector is still developing. Committee remains concerned that a large portion of GNWT procurement is benefitting southern companies; and that within the NWT the smaller, more remote, or emerging businesses are unable to compete with established businesses.

Stakeholders expressed concern about procurement processes and viewed inclusion in procurement processes as part of reconciliation.

There was concern that businesses miss opportunities by not being aware of what projects are being advanced. For businesses in regional centres and more remote communities, advance notice is necessary to provide time for adequate preparation.

Committee analyzed the distribution of BIP'd businesses, GNWT grants, and contributions, by region and community. It is clear that capital and regional centres are driving business in the NWT.

The NWT economy is weakest in the remote communities.

Committee agreed that to support businesses locally, increased communications is key. But for businesses in regional centres and small communities, this advance notice and communication is essential to allow for fair competition.

Without advance notice and preparation time to secure partners or make business relationships, businesses in small communities will always be significantly disadvantaged.

Committee agreed that the GNWT should be able to increase transparency with the private sector regarding both upcoming capital projects and procurement plans that will be delivered in small communities. Increasing local communications where a project is planned allows for local industry to respond and prepare for the work. For example, the Government of Yukon publishes a public Five-Year Capital Plan to provide a transparent view into the government's priorities. This report reviews how the government has delivered on its commitments, provides project budget updates, and discusses on-going capital projects.^{[2] A model like this could serve the need to keep communities informed.}

On April 1, 2021, media reports stated that the GNWT reduced the sole source contract limit for general goods and services from $25,000 to $10,000 on a short-term basis.[3] The reason cited for this change was to prevent people from “gaming the system.” However, the current rules allow sole source contracts for goods and services up to $25,000.

The government has stated publicly the use of sole source contracts is largely related to urgency.[4] Committee questions the use of urgency.

Such a limit on change orders would be consistent with practices in other jurisdictions. For example, the British Columbia Construction Association (BCCA) agreed to a provision determining contractor markup on change orders by percentage: “to the cost of the work performed by the contractor directly, the contractor may add a maximum of 20% markup for overhead and profit combined” with a provision for a maximum of 10% for subcontractors.[5] For change orders in Alberta, contractors can receive 15% for actual direct costs related to changes in work for overhead costs and profit, and subcontractors are entitled to the same, provided the province and contractors agree to the written change order.[6]

Other Canadian jurisdictions have developed similar approaches. The Social Procurement Brief for Alberta notes that by increasing participation from disadvantaged businesses owners, public institutions can improve economic and social outcomes for economically marginalized groups.[7]

The economic measures as set out in the Gwich'in,[8] Sahtu,[9] and Tłı̨cho[10] land claim agreements all provide stipulations around GNWT using preferential contracting policies in settlement areas, with approaches intended to maximize local, regional, and northern business opportunities and employment. When there is activity on settlement land, beneficiaries shall be given first opportunity to negotiate contracts, and the GNWT shall consult with communities when there is opportunity for financial, training, or economic activity within that community. Notifications for preferential contracting policies shall be provided.

In the NWT, Indigenous people make up over half (50.7%) of the population at 20,860 people, yet income, employment rates, and education levels rank significantly lower than in the non-indigenous population. According to the Indigenous Peoples 2016 Census, median income for NWT Indigenous people at $29,747, was considerably lower than the NWT non-Indigenous median of $71,400. Among the NWT Indigenous population, Metis people had a median income of $56,502 almost double that of the median Inuit income of $25,743.[11]

Statistics Canada data indicates that Indigenous entrepreneurship is increasing relative to the rest of Canada. Yet, Indigenous people are still less likely than non-Indigenous people to be self-employed.[12] The same study notes that there are 54,255 Indigenous Canadians who were self-employed at the time of the report, and 375 self-employed Indigenous people in the NWT, and of those self-employed Metis comprised 53.2%, followed by 41.1% First Nation, and 1.8% Inuit.

Thank you, Mr. Speaker. Your hard working Standing Committee on Economic Development and Environment, I move, second by the honourable Member from Frame Lake, that the Committee Report 53-19(2), Standing Committee on Economic Development and Environment Report in Supporting Northern Businesses be received today by the Assembly and referred to Committee of the Whole. Thank you, Mr. Speaker.

Thank you, Member for Nunakput. The motion is in order. To the motion?

Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. Committee Report 53-19(2) is referred to Committee of the Whole.

---Carried

Reports of standing and special committees. Tabling of documents. Minister responsible for Environment and Climate Change.

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following document: Government of the Northwest Territories Response to Committee Report 39-19(2): Report on the Prevention and Management of Contaminated Sites. Thank you, Mr. Speaker.

Thank you, Minister. Tabling of documents. Minister responsible for Finance.

Thank you, Minister. Tabling of documents. Madam Premier.