Colleagues, before we begin today, seeing this is our last day, I have a statement or two.

I would just like to start off by saying it was a pleasure and honour to serve with you all in the 19th Assembly. You know, we had a huge turnover and, you know, there's no shortage of challenges we faced in Assembly but at the end of the day, we worked through it together and here we are. I'll touch on that a bit more later.

I would like to start off by thanking the people of the Mackenzie Delta. You know, in 2011, even up until August, I wasn't even planning to run as MLA. It was until two former Members came to the community of Tsiigehtchic. At the time, we were having our Gwich'in Assembly and, at that time, a couple Ministers were at the Assembly taking questions, and that was R.C. McLeod and Michael McLeod. And at the end, after we were finished, they took a break and they pulled me aside and asked what I was up to because before that I was chief for four years. And they're like, so what's your plans? And I was like oh, no plans, just see what comes up. And they're like you should run for MLA. I was like oh,no, no, David's doing that. And they said oh no, he's not running. I said yeah, I'll think about it. And after a couple weeks there, I talked to a few people and decided to run and here we are today.

But, you know, it's so important, I think, like, a lot of times we, you know, because over the last 12 -- well, it's 16 years in leadership. It seems like most of the time we thank people is when it's too late, you know, because I've been to, oh I can't even keep track of the amount of funerals I've attended over the years, you know, paying respects. But I think it's so important to thank people, you know. Thank all those that gave me solid advice over the years and, you know, gave me their support. You know, people of the Mackenzie Delta, it started with the community of Tsiigehtchic as their chief. There, too, I wasn't planning on ever getting into politics but, you know, we don't know what our path holds in store for us because I'm a firm believer that the Lord shows us the way. You know, growing up in Tsiigehtchic, even back then religion was big in school and even to this day, I have my bible with me and something to protect me, and that was from our new Member from Monfwi. Thank you for that. It's got me over the last couple years here, but mahsi.

Like I said, it's so important to thank all those that stood by you. My wife and my children, my mom, who is here this week. She's flying home today, but. Also my constituency assistant for ten years, Ms. Wright, thank you for your service and, you know, I hope you're doing with as a chief in Fort McPherson. I know you are, but I'd just like to thank you. And also my new constituency assistant, Diane Koe, thank you for all the work you've been doing. And also Manny Arey, Dean, is my contact in Aklavik. And before that was Eugene Pascal. Thank you very much for your service.

For the people of the Mackenzie Delta. You know, I have so many friends and constituents in the communities and family members, you know, they -- that's one thing I learned in leadership is you'll never get a hundred percent support but it's usually 85 percent are behind you, and that's what you focus on. Nowadays, especially with Facebook, there's 15 percent -- you know, they say -- and this was told to me by a former leader in the band centre, you know, 15 percent, you could move mountains for them but it's never enough but they're the loudest. But just don't focus on that, just focus on your 85 percent and keep doing what you're doing, and that's one thing I learned -- or since that day, that's what I try to do. And, you know, just moving forward, like I said, I thank the people of the Mackenzie Delta because without them, I wouldn't be here.

And one more thing is, you know, growing up, my mother was a chief before me and even back then, they always said, you know, our younger generation, it's time for them to take over. And look at our Assembly today, you couldn't tell but Mr. Simpson is the youngest one here is I think -- or no, Rylund is now. But, you know, if you look around the room today, and about 30, 40 years ago, it was almost all our older -- the old school. But, you know, but it goes to show that, you know, what our elders wanted back then is happening here today and it's an honour working with some of the people I went to school with, Ms. Archie, Ms. Semmler, Jackie was before my time, but Paulie as well.

But before I move on to the speakers, I'd just like to thank Jackie. When I first got in, all the hotel rooms in the city were full and I had to spend two or three weeks with Jackie in his apartment. It was the longest two or three weeks of my life. No. Just kidding. I'm just kidding. But I never forget that. I'd like to thank Jackie. We had a lot of good conversations over the years.

And, you know, one thing that we were told in this Assembly was you can't become friends with anybody, like staff. You know 12 years in this facility with a lot of these staff, you know, you can't help but become friends with them, most of them. But, you know, it's almost impossible.

Even Members here, four years, and I feel like we've become good friends even though I never met you before, but that's just how it goes. And, yeah, it's challenging but, you know, end of the day, I think a lot of us have become good friends and stay friends.

So I'll just move on to some of the things in the Speaker's office. Every Speaker before me had a free ride up here. Oh boy. It was nothing but trips before I showed up. But, Members, I want to begin today's final sitting day of the 19th Assembly by sharing a few words on the challenges the Assembly faced.

As the 19th Legislative Assembly, we started strong, electing a record number of women to the legislature and to Cabinet. However, it was not long before we faced our first challenge - the arrival of COVID-19. As an Assembly, we had to stop our business mid sitting, resume sitting for a day to pass an interim budget, and then return home. The Assembly had to find a new way to work, including remote work, a new layout in the Chamber, and hybrid sittings. The challenges we faced were not only external but also internal. Allegations were made and investigations were conducted. It was a difficult and challenging time for all.

The Assembly belongs to the people and, for the first time, was closed to the public for extended periods of time during COVID-19 and the wildfire evacuations.

The 19th Assembly was the first with a binding Kindergarten. It was a learning opportunity for us all, and this Assembly made changes to the process based on what we learned.

Wildfires and evacuations on our final sitting, and on short notice we held the sitting outside of Yellowknife for the first time since 1989. Not only was this sitting held in Inuvik, it was our largest hybrid sitting.

The membership of our Assembly changed during our term with two by-elections and the election of a new Member for Monfwi and Tu Nedhe-Wiilideh. The election of the election for Monfwi made our Assembly the first elected Assembly in Canada to a majority of female Members. I believe this is the first Assembly where the mace was transported by skidoo when the road to Tsiigehtchic was blocked and we had to haul the mace and staff by skidoo and sled into the community.

The Office of the Clerk saw significant changes. The clerk, sergeant-at-arms, and manager of finance retired taking with them more than 80 years of experience and service. However, we are moving forward with the new people in these key roles. We have made significant changes and progress in our office and the clerk works with it, development and implementation of the workplace review and action plan. We may have had some rough time, but we started and will finish strong. Just this week, unveiling a new permanent memorial of the Murdered and Missing Indigenous Women and Girls and 2SLGBTQIA people.

Colleagues, once again, it was a pleasure serving with you all, and I thank again the people of the Mackenzie Delta. You know, like I said, we don't know what's in store for us and if it's the Lord's will,I will be here again in the 20th, and I will just wish everybody good luck in the elections. And those that are retiring, I wish you well. Kevin, Caroline, Julie, and Rylund, you know, we had some good times -- well, retire from politics. But you never know you might come back. We had some great committee meetings in the last Assembly with Ms. Green and Kevin.

Kevin, I think R.C. McLeod said it best. Yeah Kevin. Kevin. But he said, it's one thing about Kevin, you know, he's got his ways but he is a man of his word. He usually tells you what he is going to do, and he does it and stands up for what he believes in, and there is a lot of people that really appreciate that. I would like to thank you you all for the work that you have done. Some of you have been here only four years but made a good impact.

One thing about -- that I learned from territorial politics is things take time so maybe in eight years, you might see the DMV opened on a Saturday. Fingers crossed. But once again, thank you all very much, and I can't help but thank the people in the Mackenzie Delta as well for putting your trust in me. And just thank you very much. Mahsi.

Ministers' statements. Minister responsible for Education, Culture and Employment.

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

---Carried

MR. JOHNSON:

INTRODUCTION AND SUMMARY

Bill 92: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3 (Bill 92)1 received second reading on June 1, 2023, and was referred to the Standing Committee on Government Operations (Committee) for review.

On June 27, 2023, the Minister of Finance and departmental officials provided a public briefing on the Bill. Bill 92 requires the government to set up an unconditional carbon tax revenue sharing grant with community governments. Bill 92 also requires the government to prepare and release an annual report on the carbon tax. Bill 92 ultimately fulfills commitments from the Minister of Finance to improve the government's carbon tax approach, in response to Members' concerns during the third reading of Bill 60: An Act to Amend the Petroleum Products and Carbon Tax Act (Bill 60).

This report summarizes Committee's review of Bill 92, focusing on our amendments to improve the Bill. As originally drafted, Bill 92 fell short of the improvements many Regular Members wanted to see to the government's carbon tax approach - so much so that the Member for Frame Lake introduced a parallel private member's bill. Committee worked with departmental officials and the Member for Frame Lake to develop amendments to strengthen Bill 92 that everyone could support.

Ultimately, Committee put forward four amendments, which are included in Appendix B of this report. The Minister concurred with all four amendments, which were then adopted at the clause-by-clause review on July 28, 2023. Committee is satisfied that the changes to Bill 92 represent a reasonable compromise between the views of the Government of the Northwest Territories (GNWT) and of Regular Members.

AMENDMENTS

Motions #1 and #2: Legislative housekeeping

The Legislation Division initiated two minor changes to re-arrange the definitions in the Bill and make several resulting grammatical changes. These changes were minor and non-substantive. Committee agreed to both changes.

Motion #3: Discretion for a higher community grant amount

Bill 92 sets the amount of the community revenue sharing grant at 10 percent of net carbon tax revenues. While this amount is consistent with the Minister's commitment in the House, Committee was concerned that this may not be consistent with Committee's vision for the grant's purpose - to compensate community governments for the fiscal impacts of the carbon tax.

Using data from the Department of Finance, Committee projected communities' grant revenues with their tax burden. The projections included two scenarios: one in which communities' fuel use stays the same from 2021 through 2030, and another in which fuel use in 2030 is 15 percent lower than 2021 levels. A 15 percent reduction is consistent with a target in the 2030 Energy Strategy. Committee found that, in both scenarios, communities' total tax burden overtakes the total grant amount in 2025. The gap widens to between $1 million and $2 million after 2028.

When the Minister committed to the 10 percent grant amount, Regular Members assumed that meant the carbon tax would be revenue-neutral for community governments. Our analysis suggested that would not be the case.

Committee sought to confirm whether the government also projects that the carbon tax would not be revenue-neutral for community governments. The government did not confirm or deny this point and emphasized that the community grants were not intended to reduce communities' carbon tax burden to zero. The department characterized the 10 percent as a “minimum” revenue sharing rate.

However, as Bill 92 was originally drafted, the revenue sharing grants had to be “equal to” 10 percent of net carbon tax revenues. With this wording, the 10 percent was not really a minimum revenue sharing rate, but rather an exact revenue sharing rate.

Committee wanted to ensure that a future Minister would have legislative discretion to provide a bigger grant, above 10 percent of net carbon tax revenues. We would have preferred that the legislation require the carbon tax to be revenue-neutral for community governments, but this proposal was unlikely to receive support from the department. Instead, Committee developed a motion to tweak the wording for the revenue sharing rate from “equal to 10 percent” to “at least 10 percent.” The government accepted this compromise.

Committee therefore recommends:

Recommendation 1: That the Department of Finance ensure that the carbon tax is revenue-neutral for community governments. Total carbon tax revenue sharing grants should equal or exceed community governments' total carbon tax burden each year.

Motion #4: More prescriptive requirements for the annual report

Bill 92 requires the government to prepare and release an annual report on the carbon tax. Although the Department of Finance already does this work, reporting on the administration of the carbon tax was not previously required in legislation. Committee has sought legislative requirements for carbon tax reporting since the 18th Assembly, and more recently during our review of Bill 60. While Bill 92, as originally drafted, required an annual report, it did not specify a deadline for completing the report or what types of information must be disclosed.

The Member for Frame Lake, in particular, was dissatisfied with these omissions. He advocated unsuccessfully for these requirements to be included in the government's bill before it was tabled in the Assembly. As a result, the Member for Frame Lake introduced a private member's bill - Bill 91: An Act to Amend the Petroleum Products and Carbon Tax Act, No. 2 (Bill 91). Bill 91 provided a list of 17 types of financial and other items to be disclosed in the annual report, and a six-month deadline to prepare and release the annual report. Committee was tasked with reviewing Bill 91 alongside Bill 92. Committee received a public briefing on Bill 91 from the Member for Frame Lake on June 27, 2023.

Committee considered the competing visions for carbon tax annual reporting in Bills 91 and 92 and compared these with the department's current reporting practices. Committee found that Bill 91's reporting requirements surpass the department's current voluntary reporting practices. For example, the current annual report does not disclose information on penalties and fines, refunds, and emissions reductions. Our detailed analysis on this topic is available in Appendix A of this report.

Committee preferred the annual reporting approach in Bill 91, with its more prescriptive requirements, over the approach in Bill 92. Committee believes the detailed reporting requirements in Bill 91 would ensure transparency from future Ministers and promote accountability for the government's work to address the effects of climate change - without imposing an unreasonable burden on the department.

However, advancing the changes in Bill 91 presented a procedural challenge that implicated Bill 92. Bill 91 and Bill 92 both placed measures related to annual reporting in sections numbered '20.2'. The Legislative Assembly could not pass two section '20.2's' with different wording and legal effect.

Committee's preferred approach was to insert the list of required contents in the annual report from Bill 91 into Bill 92. Committee sought the Minister's support for this approach. The government was concerned that certain reporting requirements in Bill 91 would create legal obligations on matters that were impossible to measure. Two subclauses in Bill 91 highlighted this concern:

- Subclause 20.2(2)(k), which requires reporting on the anticipated reduction of emissions in the Northwest Territories thanks to the carbon tax; and

- Subclause 20.2(2)(l), which requires a description of the effectiveness of the carbon tax in reducing emissions. The government department further asserted that subclauses (k) and (l), with their focus on emissions, are outside the purpose of the Petroleum Products and Carbon Tax Act (Act), which focuses on tax rates and collection.

Committee accepted the government's concern with subclause (k), but not with subclause (l). Committee believes subclause (l) provides enough discretion on how to report on the effectiveness of the carbon tax. We also stress that emissions reductions are indeed integral to the purpose of the Act and should not be out of scope for the annual report. The Minister has said that the carbon tax is meant to meet the territory's commitments under the Pan-Canadian Framework on Clean Growth and Climate Change.

Under this federal framework, the government has committed to both a minimum level of carbon taxation and a target for emissions reductions. The 2030 Energy Strategy explicitly links the carbon tax with emissions reductions.

Committee therefore put forward a motion to insert the list of annual reporting requirements from clause 20.2(2) in Bill 91 into Bill 92, save and except for subclause (k). The wording of the motion contained several other minor differences from Bill 91, for clearer and more consistent wording. The Minister concurred with the motion and Committee approved the amendment at the clause-by-clause review.

Impact On Bill 91

Given the Minister's concurrence with motion #4, Committee decided to not proceed with Bill 91. The government's legislation now includes detailed annual reporting requirements that Committee supported. Committee is satisfied with this outcome. We thank the Member for Frame Lake for his tireless advocacy for greater transparency and accountability around the government's work to address climate change.

Conclusion

This concludes the Standing Committee on Government Operations' review of Bill 92. Typically, Committee includes a recommendation in each report requesting a response from government within 120 days. The recommendation is then moved as a motion in the House and Cabinet is required to respond. However, since the 19th Legislative Assembly will dissolve in less than 120 days, Committee has decided to leave out this recommendation and requests that the government provide a public response to this report, even of a preliminary nature, before the beginning of the 20th Assembly.

Good afternoon, colleagues. Please join me in thanking the Yellowknives Dene First Nation drummers for opening our sitting today.

---Applause

Colleagues, it was a long difficult summer. Many residents were displaced for weeks. Wildfires breached community boundaries. People lost their homes and businesses.
Frontline responders worked for weeks fighting back wildfires right on the doorstep of our communities. I want to thank everyone who worked to protect our territory this summer and continue this important work as we meet here today.

Natural disasters take a toll on all of us, physically, mentally and emotionally. While the wildfire season is not over, we are emerging from the most critical stages. We must recover from this natural disaster together. Do what Northerners do best and help one another. Be kind. Be patient. We still have to face the road ahead.

Since our last sitting, two former members of the Legislative Assembly, Robert Sayine and Tommy Enuaraq, have passed. Mr. Sayine was born in Fort Resolution and elected to the Legislative Assembly in 1979. He worked tirelessly for his community, serving as chief, sub-chief and councillor, in addition to many other roles. He is missed by his wife, children, grandchildren and great grandchildren. Mr. Enuaraq was elected to the Legislative Assembly in 1995 for the people of Baffin Central. A well-known community leader and author, he is missed by his wife Elisapee and six children.

I would also like to acknowledge the passing of Bronwyn Watters, the Northwest Territories Equal Pay Commissioner. Ms. Watters had an extensive career with the GNWT and voluntary service. The GNWT is fortunate to have been a recipient of her exemplary work ethic and dedication. She is dearly missed by her husband and family.

I would also like to take this time to acknowledge all the people who have passed on from all constituencies across the NWT. Our sympathy and condolences go out to those who are grieving.

Members, this is the final sitting of the 19th Assembly. As Members, we have navigated COVID-19 global pandemic, self-isolation and the impact this has had on our communities; we have responded to economic downturns; we have evacuated communities from flooding; and, we continue to manage emergency response to fires today. If there is anything we have learned with this unprecedented last four years as Members, it is how to get the job done in the face of uncertainty.

Members, this is our last sitting to enact legislation and pass the capital budget. I ask all Members to stay focused on the task ahead of us, to get our work done efficiently this week, so we can all go back to support our constituents across the NWT.
Colleagues, please join me in welcoming our pages to the Chamber. It is an honour to share this space with our youth.

---Applause

I would also like to welcome our interpreters back to the Assembly and thank them for their work. Our languages are vital to us as Northerners. They tie us to our culture, to our land, and to one another. During this sitting, I am honoured that we will be able to provide interpretation into the following languages: Dene Suline Yatie, Inuvialuktun, Dene Kede,
Dene Zhatie, Tlicho Yatii; and French

Now, colleagues, it is my duty to advise the House that I have received two messages from the Commissioner of the Northwest Territories.

The first letter reads:

Dear Mr. Speaker, I wish to advise that I assent to the following bills:

• Bill 97, An Act to Postpone Polling Day for the 2023 General Election;
• Bill 99, Supplementary Appropriation Act (Operations Expenditures), No.2, 2023-2024.

Yours truly, Margaret M. Thom, Commissioner.
The second letter reads:

Dear Mr. Speaker, I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories the passage of Supplementary Appropriation Act (Operations Expenditures) No. 3, 2023-2024 during the second session of the 19th Legislative Assembly. Your truly, Margaret M. Thom.

Thank you, colleagues. Ministers' statements. Madam Premier.

Members, by the order of the Commissioner of the Legislative Assembly, this sitting outside the capital in Inuvik. I thank mayor Clarence Wood and the town of Inuvik for the use of their chambers.

The Assembly last sat outside of Yellowknife in 1989 in Norman Wells. Under Rule 10.1, this sitting is a hybrid one. Members are here in person and virtually and is due to the state of emergency in the Northwest Territories. All Members are concerned for residents displaced by wildfires. Many Members are displaced themselves. Like you, we fear for the safety of your homes, businesses, and communities. On behalf of the Assembly, thank you to everyone working to keep our communities safe, the firefighters, military personnel, municipal staff and leaders, civil servants, contractors, and volunteers. We see your work and sacrifice.

At this moment, I want to acknowledge Northwest Territories firefighter Adam Yeadon. Adam died fighting wildfires near Fort Liard on July 15th, 2023. Adam was a young man who lost his life protecting others. I ask Members to join me in a moment of silence in his honour.

Thank you, Members.

Members, today's sitting will be different. Under Rule 10.5(2), I have issued special orders of the day to ensure the efficient operation of the Chamber. These orders reflect Members' desire for a business-focused sitting. We are here to deal with the timing of the election. We are also here to authorize additional spending to respond to these wildfires.

This is the largest hybrid sitting we have done. It is on short notice. We are in a community and not in the Chamber. There will be technical difficulties, technical challenges. This includes the live stream. Be patient, stay focused on why we are here. If we do, we will get through this together.

Members, I have received a letter from the Commissioner, the Honourable Margaret Thom. It reads:

Dear Mr. Speaker. I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories the passage of Appropriation Act (Infrastructure Expenditures) 2024-2025; Supplementary Appropriation Act (Operations Expenditures) No. 2, 2023-2024, during the second session of the 19th Assembly.

Members, the Member for Monfwi has provided me with notice that, pursuant to Rule 3.5(1), she wishes to move a motion for emergency debate calling upon the Government of the Northwest Territories to ensure that Indigenous governments are involved in the GNWT's response to end the current wildfire emergency. Under that rule, the Member would move the motion for an emergency debate at the conclusion of oral questions but those are not on the orders today. That means Rule 10.5(2) applies. That rule relates to remote sittings.

It states where the rules in this section are silent on a matter covered elsewhere in the rules, the Speaker may amend any rule or procedure as required to allow for the effective participation of Members appearing remotely. In the efficient operation of the Chamber under Rule 10.5 (2), I direct special orders of the day for today to ensure the efficient operation of the Chamber. This sitting could be characterized as an emergency sitting. The orders were issued to allow for a business-focused sitting, focused on dealing with two pressing matters:

• Changing the date of the election; and,
• Approving additional funding for wildfire response.

The Northwest Territories is under a state of emergency. We must be focused on the pressing matters at hand; however, Members will have their individual privileges. When a motion is made for an emergency debate, if it passes all of the remaining business of the day is set aside. That would mean dealing with the timing of the election and authorizing spending for wildfire response would not be dealt with today.

I am concerned that the Member's motion may not get fair consideration if Members are worried that the matter we were called together would be put aside. As a result, under Rule 10.5(2), I will amend Rule 3.5(1) such that at the end of third reading of bills, the Member may move to set aside the original business of the House to discuss a matter of urgent public importance requiring immediate consideration.

Members, I believe this balances the privileges of the Member and the Assembly and ensures the efficient operation of the Chamber. Thank you.

Tabling of documents. Minister responsible for Finance.

Members, before I adjourn our sitting until August 16th, 2023, I would like to thank you for a productive sitting. During this sitting, Members have appointed new law clerks to the Assembly, passed five pieces of legislation, and introduced four more bills to be reported in the next sitting. It was a short but productive sitting.

Please join me in thanking our interpreters for the important work they do making our proceedings available in our official languages.

Colleagues, also join me in thanking the pages. It was a pleasure having them back in the Chamber. Hopefully some of them will be back here one day as MLAs.

Members, you have raised and discussed many different and important issues this session. Members have discussed emergency response and impacts to fire evacuees, the importance of infrastructure and the vitality of small communities, holistic support required for those experiencing homelessness, support for those experiencing addictions, as well as youth in care.

Members, thank you for bringing forward the concerns and issues raised in your ridings. I also want to take this time to acknowledge the fire fighters and frontline responders working hard to manage the active wildfires across the Northwest Territories.

Colleagues, June is National Indigenous History Month. We must remember and celebrate that in 1975, the Northwest Territories Council, as it was known then, was the first Legislative Assembly in Canada to have a majority of Indigenous Members - a tradition we maintain to this day along with our sister territory Nunavut. The unique system of government we both share is not perfect but it reflects the Indigenous values of cooperation, respectful debate, and working together.

In reflection of the Assembly's shared commitment to diversity and reconciliation, this session we introduced Indigenous-styled cloaks for our table clerks. Many celebrations and assemblies lie ahead this summer, from National Indigenous People's Day to annual assemblies and other events. Members, enjoy this opportunity to get out and celebrate with your constituents.

While we look ahead, we cannot forget the challenges that face residents across the Northwest Territories. I want to take this time to acknowledge the families in the Northwest Territories who are looking for their loved ones. As mentioned in this House earlier, young Frank Gruben still remains missing. No parent should have to wonder where their child is. I encourage anyone who knows anything about Frank Gruben to call Crime Stoppers at 1-800-222-8477. Help bring Frank home.

Members, I want to acknowledge the residents of the K'atlodeeche whose community was greatly impacted from wildfire. This will be a season of repairing and rebuilding. I know you will all continue to support these residents.

I encourage you all, the residents of the NWT, to enjoy the days ahead with family and friends. Our summer is short, yet we are blessed with the Midnight Sun. Get out on the land and the water, but please be safe and encourage your constituents to do the same. Use caution when travelling on the land. Look out for one another. I look forward to seeing you all back in August for our final sitting of the 19th Legislative Assembly.

Mr. Clerk, orders of the day.

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.

Good afternoon, colleagues. Please join me in thanking elder Lillian Elias in leading us in prayer today.

Before we begin, I want to take a moment to acknowledge the wildfires and flooding impacting our communities across the territory. If you or your community has been impacted by the fires south of the lake, or by the flooding in my riding, please know that our thoughts are with you all. If you are impacted, I encourage you to work with local emergency officials.

I want to personally thank the leaders and staff, people who have been working tirelessly to help the affected residents. If you have not been impacted but you want to help those who are, I encourage you to make donations and reach out to those who are providing assistance. As Northerners, we help each other when and how we can. We are here for each other.

Colleagues, we have not been together in this House since March 30th, 2023, and I am pleased to welcome you back. It's great to be here. Although we have not met in this House in nearly two months, I know you have all been busy in our committees, have met numerous times, and have travelled and discussed legislation with residents. Cabinet Members have been busy with the ongoing operations of government. Each of us has been occupied with the needs of our constituents, the people who elected us and whom we represent in this Chamber. Colleagues, I hope you were also able to find time to connect with your family and closest friends, the people who support us as we work for the people of the territory.

Springtime in the Northwest Territories is a beautiful time. The days are getting longer, the birds have returned from the south, and the waterways are opening up. I know a lot of you and your constituents have been out on the land taking part in the spring hunt. I wish everybody success and safety on the land. And I hope you get a good tan like I did over the spring.

Colleagues, please join me in welcoming our pages to the Chamber. It is an honour to share this space with our youth. Mahsi.

Not only are we welcoming youth into this Chamber as pages for this sitting, but we also recently hosted our 19th Youth Parliament. It was inspiring to hear our youth read their statements and debate motions in this Chamber. Our Youth Parliament is a wonderful program that I am very proud of, and I want to thank the staff who made this successful again this year. I have said many times that I believe our youth are our future. Based on what I seen and heard during our Youth Parliament, I am confident our future is in good hands.

I would also like to welcome our interpreters back to the Assembly and thank them for their work. Our languages are vital to us as Northerners. They tie us to our culture and to the land and to one another. Our interpreters make it possible for us to use, strengthen, and honour languages. During this sitting, I am honoured that we will be able to provide interpretation into the following languages: Dene Suline Yatie, Inuvialuktun, Dene Kede, Dene Zhatie, Tlicho Yatii, and French.

Now, colleagues, it is my duty to advise the House that I have received the following message from the Commissioner of the Northwest Territories. It reads: Dear, Mr. Speaker, I wish to advise that I recommend to the Legislative Assembly of the Northwest Territories the passage of Supplementary Appropriation Act (Infrastructure Expenditures), No. 2, 2023-2024; and, Supplementary Appropriation Act (Operations Expenditures), No. 1, 2023-2024, during the second session of the 19th Legislative Assembly. Yours truly, Margaret M. Thom, Commissioner.

Thank you, colleagues. Ministers' statements. Deputy Premier.

Colleagues, please be seated. Colleagues, on behalf of the House, I thank the Commissioner, the Honourable Margaret M. Thom for being here today. It is an honour to have her join us in the Chamber. It has been a long sitting and I know we are eager to adjourn. But before we do, I would like to say a few words and I thank you for your time and attention.

First and foremost, I want to thank each of you. I know this sitting has been difficult at times but it has also been very productive. You have concluded consideration of the operations budget, three supplementary estimates, seven pieces of legislation, some of which I know were challenging, and 14 committee reports. This is in addition to numerous statements, questions and motions.

Colleagues, that's a lot of important work and you should be proud of yourselves. Mahsi.

Throughout this sitting, I have enjoyed your lively and thoughtful debates and discussions. We don't always see eye-to-eye and we don't always agree. Some discussions in this House are very intense or uncomfortable. That's the nature of our job as the representatives of our people. Even when we don't agree, we can always find ways to work together and be respectful of each other and this institution. Colleagues, that is consensus government in action.

Consensus government does not mean that we must always agree. Consensus government does not mean that we will always get our way. Consensus government means that we will have the opportunity to share our views, influence policy and legislation, and represent the people who have elected us. I thank each of you for contributing to a successful sitting.

Colleagues, I also want to thank the interpreters who have joined us throughout this sitting. We honour our languages when we use them. The interpreters make it possible for us to use our languages on a daily basis, and I thank them for their service and commitment to honouring our official languages, our people, and our cultures. I know it has been challenging at times, the speed of some of our speeches, but I thank you and I really respect the work that you do.

Colleagues, finally, I want to take a moment to thank our clerk, Mr. Tim Mercer, and congratulate him on his retirement. Mr. Mercer has served as clerk of this institution for twenty years. That's 870 sitting days. He has served six Assembly's, that's 63 Members and six Speakers, I am very proud to be one of those Members and also one of those speakers.

Tim, I want to thank you for your valuable advice you have given to me and to all Members for many years. It was always appreciated. And sometimes we even followed it.

Tim, as Clerk of the Legislative Assembly, your corporate and procedural knowledge is second to none. I know we are in good hands with Mr. Rutland taking the helm. You will be deeply missed. Tim, I know you love sailing and I hope you have the opportunities to spend many beautiful summer days on Great Slave Lake aboard the Picante. Mr. Clerk, hold fast and stay true.

Colleagues, please join me in thanking Mr. Mercer for his dedication and service.
Thank you, colleagues.

---Applause

Mr. Clerk, one last time, orders of the day.

Thank you. Colleagues, before we do the vote, I just wanted to say a few words myself while the staff are here.

Mr. Mercer, I know I could only see the back of your head right now and I know -- you know, this is my 12th year as an MLA, and Tim has been here for the majority of that. I know he took some time off for himself. But, you know, I really value all the -- I mean, I didn't come to his office that much but, I mean, as MLAs, you know, a lot of times, you know, there's pressures we get with this job and our personal lives and it's always good to bounce these issues off somebody, and Tim was that person for many of us. And, you know, it's usually you got pretty good sound advice but a lot of times he just asked you what you thought, and he'd be like ah, pretty much got it. But, you know, I really value that because a lot of times it was the right decisions to make and, you know, that's the kind of sound advice a lot of Members over the years have received. And, you know, that's what -- and a lot of the advice that we do get make us do our job 100 percent. And, you know, that's a role of the clerk, is to be there for the Members 100 percent and, you know, support you in any way they can and, you know, that means a lot to myself. And also the team that he put together. You know, look at the team up there that's seeing him off. I know you're all going to miss him as much as us but, you know, like you said it's a phone call away, but. Or just down the road. But, you know, to leave this Assembly, it's leaving on a good note and I wish him all the best and look forward to the future. And also for Tim, I know I have other words later on today, but I just thought I'd say that while the team is here. It's so important, you know. You know you have a lot of support with our incoming clerk, Mr. Rutland taking pictures. With that, I would just like to thank you all and thank Tim. Mahsi.

To the motion. All those in favour? All those opposed? Sure, it's up to Member for Thebacha.

The Member for Thebacha has requested a recorded vote. All those in favour, please rise.