Thank you, Mr. Speaker. Mr. Speaker, I appreciate the opportunity today to address some concerns around the budget, Mr. Speaker. It's maybe a little more of an elongated Member's statement but certainly, it certainly ties in closely to the items that we're reviewing in the budget this session.
Mr. Speaker, there is no doubt we find ourselves in some challenging times. The current budget, I think, and I feel, doesn't offer a lot in the way of reduction, nor does it move us away from basically a status quo budget, Mr. Speaker. The supplemental appropriations we passed in the House to offset the challenges of transportation due to low water, the continuing issues with road deterioration on the Dempster Highway and other road systems in the territory basically, Mr. Speaker, ate any surplus we had budgeted for 2024-2025. And of course Forced growth has also played a contributing factor. I anticipate, Mr. Speaker, that there may be difficult decisions ahead that may affect programs, services and staffing.
Now, Mr. Speaker, I want to speak a little to the economy.
In my address to the budget last year, I spoke about how between 2011 and 2017, we missed the boat on a major gas development opportunity. We had an Indigenous-led pipeline group that were forced to sit helplessly as the regulatory regime slowly choked the life out of what could have been a monumental game-changing project for our territory.
I spoke about all the wellness and housing projects we could fund together, the jobs we could create for our residents, the influx of others wanting to move to our amazing territory to work in these industries, bringing with them spouses and partners that may be nurses, teachers, doctors, or early child care workers, any many other professions that we so desperately need. Again, a year later, Mr. Speaker, we still find ourselves resource rich and cash poor.
If the current polls are any indication, we may be looking at a change in our federal government. The leader of that government, if he indeed becomes our next Prime Minister, has been speaking publicly about repealing Bill C-69 and once again fast-tracking LNG projects, restarting the ring of fire mining industry, and making Canada an energy powerhouse. I understand, Mr. Speaker, there is a lot of political rhetoric here but as a territory rich in resources, we have to be prepared in this budget to engage and indeed incentivise to ensure that we are tracking those national and international
companies to our territory.
Our economy must be key, Mr. Speaker. My fear is that with no meaningful economic growth in any sector other than the government, much of our talent will leave or have already left. We must streamline our regulatory regime so that national and international businesses do not look at us as a place with too much regulatory burden that require too much time and the costs that come with that burden.
Mr. Speaker, on energy, the GNWT energy action plan is set to have a significant 5-year review and update to the overarching energy strategy. The current energy action plan, Mr. Speaker, focused exclusively on renewables and reducing emissions. Exclusively. How is that, Mr. Speaker, a comprehensive energy plan?
I agree we have to have a path for renewable energy and emission reductions, but we need to step back and look at the big picture, Mr. Speaker. Biomass and solar is great but what is it doing to the grid in the communities that rely on non-renewables? The town of Inuvik is putting in a massive solar array to power its Midnite Sun Complex. That's the pool, hockey rink, curling rink, and community centre, 100 percent federally funded to the tune of $5.5 million -- and great for the town of Inuvik -- but what does taking such a large user from our current NTPC grid mean for the cost of power production in Inuvik? Has there been any analysis or even engagement on significant projects of this size? Has Northwest Territories Power Corporation kept up with the technology to have the proper integration of such large-scale renewable energy systems, Mr. Speaker? Mr. Speaker, the answer is no, we have not.
In my response to the budget last year, I also pointed out that In April of 2021, the Government of the Northwest Territories completed a report entitled Mackenzie Delta Liquified Natural Gas, or MDLNG Project. In this report, it studied the up to 19 trillion cubic metres of natural gas in the Mackenzie Delta that could be developed for export and will provide economic benefits to the Inuvialuit settlement region, the Northwest Territories and Canada. In short, the MDLNG report stated that project is technically feasible. Natural gas production facilities and associated pipelines have been operating safely in Arctic climates such as Alaska and Russia for over forty years, Mr. Speaker. Russia has shipped LNG in the Arctic waters since 2017 using LNG and condensate ice breaking carriers. The ice breaking carrier technology proposed in this pre-feasibility study is based on Russia's operating experience. These are the kind of projects that change the direction of our territory, Mr. Speaker.
Mr. Speaker, the Inuvialuit get it. The $293 million Inuvialuit-led M-18 well project involves the construction of a new plant to produce natural gas and synthetic diesel to secure a supply of fuel for energy, heating, and transportation.
The project will reduce reliance on transporting liquefied natural gas and synthetic diesel from southern regions thereby enhancing local energy security, reducing transportation emissions, and providing economic benefits for the region. The well will provide a stable supply of natural gas and synthetic diesel to meet the energy needs of the ISR for over 50 years, Mr. Speaker, and that's based on current consumption rates.
Mr. Speaker, the project will reduce energy costs for households and businesses. It will create much needed employment opportunities, and Mr. Speaker, it is expected to reduce up to 40,000 tonnes of emissions annually. These are the shoulder to shoulder projects we must be working on to find a path to develop our LNG, Mr. Speaker. The benefits would reach all of the residents of the Northwest Territories.
Mr. Speaker, transportation. I spoke earlier about the additional funding required to offset the cost associated due to the inability of MTS to complete its barging season in the Sahtu. We are all keenly aware of the dire consequences and effects it has had on the residents. This is not the first time we have had additional cost due to low water levels and cancelled service. In previous Member statements, I have encouraged this government to re-evaluate the current structure of MTS. I appreciate the long history it has in its current location and by no means am I suggesting it no longer operate in Hay River, but Mr. Speaker the reality is such that it would make sense to also have infrastructure in Inuvik or Tuktoyaktuk. This infrastructure, Mr. Speaker, that can service upriver as far as Fort Good Hope, the Inuvik region, and the coastal communities in the Inuvialuit settlement region. This work needs to happen immediately, Mr. Speaker, to ensure our supply chain does not continue to see residents without essential fuel, building supplies, and consumables, as well as supplemental appropriation costs that cost the GNWT millions of dollars.
Mr. Speaker, I have worked in finance for over half of my career. I have worked with corporate tax, personal tax, I have completed business plans and feasibility studies, I have created companies and prepared budgets and cash flows but, Mr. Speaker, after a little over a year as an MLA I am still often mystified with how the NWT housing corp budgets and forecasts its spending.
We have all agreed that housing is a priority for this government, likely the number 1 priority for most. What we need is a detailed plan of exactly what we intend to spend, what we intend to build, broken down by region, and we need to ensure that the regions with the most need are prioritized, and that the communication is clear on what we intend to spend and what we intend to build.
Mr. Speaker, we need to ensure the existing inventory of units are maintained and that the repairs are planned, scheduled, and completed so we can finally address the long waitlists that I know every community has.
Mr. Speaker, I have no doubt that the Members that we elected to Executive Council are working hard. I know they care just as much as myself and my collegues about the state of affairs of this government. But Mr. Speaker, we need to start thinking outside the box. We can no longer afford these cost overruns on projects that continually show after the fact that they were not properly managed or had proper analysis completed. Maybe its time we start to look, Mr. Speaker, at economic working groups that utilize the expertise we have in the regions. We have many long-term residents, Mr. Speaker, that have worked across many sectors and have a vast amount of knowledge to share. In energy, transportation, information technology like the Inuvik satellite station in Inuvik, and other major projects that have happened in regions outside of Yellowknife as well, there is a wealth of business expertise out there, Mr. Speaker, that if given the opportunity to be part of a think tank could provide ideas that we as a government may not have considered.
Mr. Speaker, we need to further engage our Indigenous business community. The Indigenous development corporations are doing some amazing work in the NT. They are partnering with long established Canadian companies to foster economic growth. The private sector has the expertise and experience that often governments do not. Any economic plans we produce must, again, be less about statistical overviews and more about strategic roadmaps to prosperity.
Mr. Speaker, again, I appreciate the Executive Council that we elected in this House; I know how hard they're working; I know it's a difficult time, but I know if we continue to working together and we put the economy first and make sure that we are creating jobs, we're creating opportunities and we're building industry in this territory, Mr. Speaker, that will to take us to prosperity. That will solve the issue we have around social issues, around housing issues. We need to find a way to generate revenue, Mr. Speaker, and I know working together, working with this group, we can get there. Thank you.