· Web viewPRAYER. 1979. BUDGET ADDRESS. 1979. MEMBERS' STATEMENTS. 198. 8. Updates to Deh Cho...

NORTHWEST TERRITORIES LEGISLATIVE ASSEMBLY

3rd Session Day 5 16th Assembly

HANSARD

Thursday, February 5, 2009

Pages 1979 - 2010

The Honourable Paul Delorey, Speaker

Legislative Assembly of the Northwest TerritoriesMembers of the Legislative Assembly

SpeakerHon. Paul Delorey

(Hay River North)

___________________________________________________________________________________________________

Mr. Glen Abernethy(Great Slave)

Mr. Tom Beaulieu(Tu Nedhe)

Ms. Wendy Bisaro(Frame Lake)

Mr. Bob Bromley(Weledeh)

Mrs. Jane Groenewegen(Hay River South)

Mr. Robert Hawkins(Yellowknife Centre)

Mr. Jackie Jacobson(Nunakput)

Mr. David Krutko(Mackenzie Delta)

Hon. Jackson Lafferty(Monfwi)Minister of JusticeMinister of Education, Culture and Employment

Hon. Sandy Lee(Range Lake)Minister of Health and Social ServicesMinister responsible for the Status of WomenMinister responsible for Persons with DisabilitiesMinister responsible for Seniors

Hon. Bob McLeod(Yellowknife South)Minister of Human ResourcesMinister of Industry, Tourism and InvestmentMinister responsible for the Public Utilities BoardMinister responsible for Energy Initiatives

Hon. Michael McLeod(Deh Cho)Minister of TransportationMinister of Public Works and ServicesMinister responsible for the NWT Housing Corporation

Hon. Robert C. McLeod(Inuvik Twin Lakes)Minister of Municipal and Community AffairsMinister responsible for the Workers' Safety and Compensation CommissionMinister responsible for Youth

Mr. Kevin Menicoche(Nahendeh)

Hon. Michael Miltenberger(Thebacha)Deputy PremierGovernment House LeaderMinister of FinanceMinister responsible for the Financial Management Board SecretariatMinister of Environment and Natural Resources

Mr. Dave Ramsay(Kam Lake)

Hon. Floyd Roland(Inuvik Boot Lake)PremierMinister of ExecutiveMinister of Aboriginal Affairs and Intergovernmental RelationsMinister responsible for the NWT Power Corporation

Mr. Norman Yakeleya(Sahtu)

___________________________________________________________________________________________________

OfficersClerk of the Legislative Assembly

Mr. Tim Mercer

Deputy Clerk Acting Principal Clerk Principal Clerk, Law Clerksof Committees Operations

Mr. Doug Schauerte Ms. Jennifer Knowlan Ms. Gail Bennett Ms. Sheila MacPhersonMs. Sarah Kay

____________________________________________________________________________________________________

Box 1320Yellowknife, Northwest Territories

Tel: (867) 669-2200 Fax: (867) 920-4735 Toll-Free: 1-800-661-0784http://www.assembly.gov.nt.ca

Published under the authority of the Speaker of the Legislative Assembly of the Northwest Territories

TABLE OF CONTENTS

PRAYER............................................................................................................................................................ 1979

BUDGET ADDRESS..........................................................................................................................................1979

MEMBERS' STATEMENTS...............................................................................................................................1988

Updates to Deh Cho Region Highway Infrastructure (Menicoche).............................................................1988

Opportunities Fund Loan to Discovery Air Inc. (Ramsay)...........................................................................1988

Opportunities Fund Loan to Discovery Air Inc. (Krutko)..............................................................................1989

Opportunities Fund Loan to Discovery Air Inc. (Yakeleya).........................................................................1990

Health Care Investments (Abernethy).........................................................................................................1990

Initial Response to Budget Address (Bisaro)..............................................................................................1991

Initial Response to Budget Address (Bromley)...........................................................................................1991

Infrastructure Investments (Beaulieu).........................................................................................................1992

Proposed Changes to Supplementary Health Benefits Program (Hawkins)...............................................1992

Appreciation to Aklavik Recreation Leaders (Jacobson).............................................................................1993

RECOGNITION OF VISITORS IN THE GALLERY...........................................................................................1993

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ORAL QUESTIONS...........................................................................................................................................1994

REPLIES TO OPENING ADDRESS..................................................................................................................2004

PETITIONS........................................................................................................................................................ 2008

TABLING OF DOCUMENTS.............................................................................................................................2008

CONSIDERATION IN COMMITTEE OF THE WHOLE OF BILLS AND OTHER MATTERS...........................2008

REPORT OF COMMITTEE OF THE WHOLE...................................................................................................2008

ORDERS OF THE DAY.....................................................................................................................................2009

February 5, 2009 NORTHWEST TERRITORIES HANSARD Page 1979

YELLOWKNIFE, NORTHWEST TERRITORIESThursday, February 5, 2009

Members PresentMr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya

The House met at 1:37 p.m.

Prayer

---PrayerSPEAKER (Hon. Paul Delorey): Good afternoon, colleagues. Welcome back to the House. I would like to draw attention to the visitor’s gallery and the Commissioner Anthony J. Whitford who is with us today.---ApplauseI would also like to welcome all of our visitors in the gallery today. Colleagues, I would like you to join me in welcoming our new table officer to the gallery today, Ms. Jennifer Knowlan is with us.---ApplauseOrders of the day. Item 2, budget address. The honourable Minister of Finance, Mr. Miltenberger.

Budget Address

HON. MICHAEL MILTENBERGER: Mr. Speaker, I stand today to present the 2009-10 budget to this House and the people of the Northwest Territories. I would like to thank my Cabinet colleagues, the standing committees, and all the other groups and individuals, for the input and advice they have provided.We are gathered here in a time of unprecedented global economic turmoil that continues to worsen daily. Our collective task in the NWT is to work together during these difficult times, to meet the many challenges and seize the opportunities as they present themselves.Last year’s budget noted the storm warnings on the economic horizon and cautioned that we needed to put the GNWT on a sound fiscal footing. That storm has struck, and the NWT economy has not escaped its effects. The global economic crisis has caused everyone to review their fiscal and economic assumptions and to re-evaluate their plans. The GNWT is no different.

The economic downturn is likely to last at least into 2010, and possibly longer. No one can predict exactly what will happen next. In such

circumstances, we must still move forward, but we must proceed carefully and prepare to be flexible. The NWT economy has almost doubled in size over the past nine years, its growth fuelled by strong commodity prices. Demand for our resources spurred mining and oil and gas activity and encouraged interest in multi-billion dollar projects like the Mackenzie Gas Pipeline. The resource sector now directly or indirectly represents almost half of our economy. More than 20 percent of NWT residents work in this sector or for businesses that depend on it. However, the demand for our resources and the prices they command on world markets has fallen. Compared to their highs of last year, the price of oil is down by more than two-thirds, natural gas prices are down by more than half and polished diamond prices have declined 15 percent. Two critical elements of the current economic and financial situation present risks for our economic outlook. Tight credit conditions and falling stock prices are making it difficult for resource companies to raise capital to operate or expand. Falling commodity prices have made investment in the resource sector less attractive. We do not see anything right now that would cause us to expect the closure of existing mines, but we can expect to see less activity in the NWT over the next few years. Temporary shutdowns and layoffs have been announced at some of the existing mines and the environmental assessment process for the Gahcho Kué diamond mine has been suspended. We have seen signs of significantly reduced exploration activity in the Territory. This will mean fewer jobs and business opportunities for NWT residents and less income. There have already been layoffs in northern businesses that provide services for exploration companies. In January we saw the closure of a diamond cutting and polishing plant, with the loss of 40 jobs in Yellowknife. Although the overall NWT unemployment rate in December was still below the national average, the number of people employed in the Territory decreased by almost 600 from 2007 to 2008. This budget tackles these economic challenges without compromising our ability to invest for the long term. Even during these challenging economic times, we must not lose sight of the other challenges and opportunities that we face in the NWT. Our residents are concerned about the quality of life in our communities. They are

concerned about the education their children and grandchildren receive and the job opportunities those children will have in the years to come. They are concerned about access to appropriate health care when it’s needed.They are concerned about the cost of living. And they are concerned about climate change and the need to protect our environment and our land. This budget makes investments that will benefit the NWT for the long-term investments in our economy, in our environment and in our people.Fiscal StrategyMr. Speaker, our goal of long-term fiscal sustainability remains unchanged, but our fiscal plan must support our economy and our residents in this time of economic uncertainty. A serious economic downturn is not the time for governments to reduce overall spending, even though tax revenues may be decreasing. Government spending can provide the economic stimulus needed to maintain employment and sustain economic activity until the private sector can recover. In fact, in an economic slowdown, good economic policy dictates holding overall spending steady even if that means incurring deficits in the short-term. We want to avoid long-term deficits, however, and this means focussing on providing short-term economic stimulus, limiting the growth of ongoing operating costs and reducing spending once the recovery begins. A year ago, despite the strong NWT economy, our operating spending was growing faster than our revenues. We needed to correct this, to avoid threatening our ability to invest in critically needed infrastructure. We began to implement the right decisions with the budget we passed last June. We began to align our spending with our vision and put our government on a more solid fiscal foundation. We made the difficult decisions to restore fiscal sustainability by reducing expenditures in some areas and limiting overall growth. This allowed us to invest in key priorities, including making substantial commitments to new and renewed infrastructure across the NWT. Our overall goals have not changed, but we have reviewed our fiscal plans and adjusted them to reflect both the concerns we have heard from NWT residents, as well as rapidly changing economic conditions. As I announced in September, the GNWT has chosen not to pursue our original objective of eliminating $135 million in spending over two years. We have revised this target to $78 million over four years. We also believe it is prudent to wait, given how fast economic circumstances are changing, before making any decisions about introducing tax measures to raise an additional $30 million in 2010-11. We anticipate

that this will result in the GNWT incurring some debt to finance a portion of our infrastructure investments by the end of 2011-12. However, we remain committed to the GNWT’s Fiscal Responsibility Policy. We will not borrow to finance operating deficits and we will limit the amount we borrow to finance our investments in infrastructure.From a fiscal perspective, the GNWT is fairly well positioned to face the coming economic uncertainty. First, the GNWT currently has no direct debt and no immediate need to borrow, and so the current tightening in credit markets has not directly affected us. Second, if and when we do need to borrow, we can look to a sound Aa1 credit rating, reconfirmed by Moody’s Investors Service last month. Third, we have been assured by the federal government that no changes are planned for our territorial formula financing arrangements and health and social transfers. Since these and other federal transfers form almost 75 percent of our total revenues, this stability is important. This budget outlines our plans for the 2009-10 fiscal year. Given the uncertain outlook for the medium term, we will be reviewing our plans for 2010-11 and beyond and adjusting them accordingly as new information emerges in the coming year. We must also be prepared to adjust our plans for 2009-10 if circumstances change dramatically.Budget HighlightsThis budget proposes operating expenditures of just over $1.2 billion in 2009-10, an increase of 2 percent from last year’s budget. This growth rate is significantly less than the annual average of over 6 percent from 1999-00 to 2007-08. We have achieved this modest rate of growth through a combination of expenditure reductions and new investments. Last October this Legislature approved the government’s 2009-10 infrastructure budget. This investment plan will inject over $700 million into the NWT economy over the next five years. It will play a key role in stabilizing economic activity in our Territory in the coming fiscal year by providing business opportunities and employment for Northerners. After funding contributions from Canada are factored in, we will be investing $246 million in 2009-10 alone. The plan includes $58 million for highway and other road projects, $74 million in school replacements and renovations, $17 million for airport and runway improvements, $19 million for hospital and clinic renovations and $4 million for improvements to park infrastructure. Mr. Speaker, the NWT is faced with many challenges in how we develop, generate and use energy. We have a tremendous supply of energy resources, yet energy in our communities is very expensive, contributing significantly to our high cost of living and the high costs of operating businesses.

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We are also witnessing the serious impact of global energy use on our environment. Members of the Legislative Assembly, other northern leaders and NWT residents have expressed frustration with the high cost of energy, our reliance on imported fossil fuels, and our exposure to fluctuating world oil prices. Many have stated that we need to change our fundamental approach to energy use and supply in the Northwest Territories. We agree and have embarked on a process to review how we generate and distribute electricity. We are also looking at the role, structure and cost of operations of the NWT Power Corporation.Energy conservation and improved efficiencies are required to respond to the challenges we face. We are committed to providing NWT communities and residents with the tools they need to more effectively manage their energy use. In the long term, our focus is on reducing our dependence on imported diesel. There are alternative solutions to imported diesel for every community in the NWT, including wind, hydro, geothermal and biomass generation. This budget takes an important step toward achieving our energy goals. We are proposing an investment of $60 million over the next four years to make a real difference in the way we produce and consume energy in the Northwest Territories. The 2009-10 budget includes $15 million in energy investments. We also propose to fund $2.5 million in capital retrofits to install wood pellet boilers in government buildings and will be including this in a supplementary appropriation during this session. These investments will demonstrate the fact that our government is serious about reducing the NWT’s reliance on diesel fuel. In the long term, these investments will make a critical difference in the cost of living and sustainability of our smaller communities and form a lasting legacy of the work of the 16th Legislative Assembly. I will have more to say about these important investments later.On the revenue side of our budget we are forecasting 2009-10 revenues of $1.3 billion, a 3.4 percent increase over the current year. Our territorial formula financing arrangements will provide a stable and predictable revenue base. However, we do face risks on the revenue side. Corporate income tax revenues in particular are especially volatile and difficult to forecast. A slowing economy will likely mean several years of declining corporate and personal income tax, payroll tax and fuel tax revenues. Further, we face significant risks to our revenue base if our population continues to decline. This means we must continue to be vigilant with our expenditures. We project that we will need to borrow an estimated $81 million by the close of the fiscal year. This

short-term debt will be repaid early in the following fiscal year as new revenues are received. We need to do this because our forecast operating surplus of $58 million will not be sufficient to finance the planned investment in infrastructure in 2009-10. This level of debt is more than we had expected last year. However, we need to be responsive to changing economic circumstances and have chosen to act prudently in face of the current situation. Including the debt issued by the NWT Power Corporation and the NWT Housing Corporation, we will be within our $500 million borrowing limit, with over $260 million in remaining borrowing room. Mr. Speaker, the GNWT employs over 5,000 people. As some areas of our spending grow and others are reduced, our complement of staff will change accordingly. We estimate that only 14 employees will be affected by these measures. These employees have been advised of their status. Every effort will be made to retain these employees. Of the 140 positions eliminated as a result of last year’s budget, fewer than 14 employees were actually laid off. ExpendituresMr. Speaker, this budget continues to make strategic investments in the priorities of the 16 th

Legislative Assembly. The 2009-10 budget proposes to invest $44 million in new initiatives to advance our vision of strong individuals, families and communities sharing the benefits and responsibilities of a unified, environmentally sustainable and prosperous Northwest Territories. Investments In Our EconomyThe Northwest Territories is not alone in facing the current global economic slowdown and turmoil in the financial markets. It is particularly important that we work with the federal, provincial and other territorial governments to ensure that the appropriate and consistent fiscal and financial policies are put in place. A clear area of agreement has been the need to invest in infrastructure projects that will provide quick and direct stimulus to the economy. The GNWT is doing its part. Our $246 million capital budget for 2009-10 will employ Northerners and support NWT business as private sector investment slows. Canada has committed to invest a further $50 million in the construction of new social housing over the next two years. While not new money, the acceleration of federal Building Canada funding will see $75 million invested in NWT transportation and community infrastructure up to four years earlier than planned. We will be reviewing our priorities under this program before deciding how to reprofile this funding. We will also be pursuing the opportunities to cost share

investments in sustainable energy with Canada through the federal Green Infrastructure Fund.Mr. Speaker, although we are seeing a slowdown in our economy, the fundamentals of the Canadian and NWT economy are solid over the long term. That’s why we must invest now to support that future economy. We need to promote the NWT as a great place to live and do business, make investments to reduce the cost of living, implement programs that diversify the economy and encourage our residents to enhance their skills. We are proposing $15.7 million in new investments that will help us maximize future economic opportunities. In the long run these investments will promote a balanced, diversified and sustainable economy in the Northwest Territories. Let me provide some examples: this budget allocates $400,000 to design and implement a national marketing campaign to promote our Territory to other Canadians. This campaign will complement an investment of $2.4 million to promote and celebrate the NWT at the 2010 Olympic Games in Vancouver. In partnership with Yukon and Nunavut, we will be using these funds to showcase the NWT’s culture, heritage and identity and to provide opportunities for our youth ambassadors. This investment will raise the profile of the NWT in an international forum, supporting both our tourism sector and our artists and providing a unique and valuable experience for our youth.Growing the NWT economy will require a concerted effort to lower the cost of living, both to improve the well-being of existing NWT residents and to make it easier to attract newcomers to our Territory. This budget includes over $3 million in funding initiatives aimed directly at this goal. The NWT Housing Corporation will receive an additional $2 million to increase the number of homes that can be repaired under its Contributing Assistance for Repairs and Enhancements Program. The budget also includes $1 million for the Arctic Energy Alliance to undertake energy conservation programs.The budget also proposes to invest $3 million per year for the next three years to enhance our Territorial Power Subsidy Program. A key objective is to lower commercial power costs in order to increase the prospects for economic development and contribute to further reductions in the cost of living, including the cost of food. Specific proposals for the use of this funding will follow the completion of the GNWT’s consultation on the electricity review. This consultation will seek residents’ views on electrical rates, regulation and subsidy programs and will help us ensure that the NWT electricity system reflects the values of NWT residents and provides the most reliable power at the most affordable price.

Another piece of good news for NWT residents is the fact that lower oil prices have generally resulted in lower heating fuel and gasoline prices in most communities. Some communities, however, whose fuel was purchased last summer at record high prices, may not see the benefits of lower prices until they are resupplied this summer. On January 26th

we reduced the price of gasoline and heating fuel by 16 cents per litre in all communities served by the petroleum products division, regardless of their location or timing of resupply. We estimate that this measure will cost $263,000 in 2008-09.Mr. Speaker, the current volatility in resource prices reinforces the fact that Northerners know all too well -- we need to diversify our economy. We need to encourage our arts, tourism and renewable resource sectors. This budget provides a further $700,000 in grants and contribution funding to individuals, projects and organizations to further our support for NWT arts and culture. In the last two years we have increased our investment in the arts by $1.2 million. Our tourism industry will benefit from the exposure resulting from our participation in the Olympics. There will be further benefits from our $300,000 new investment to promote and market our sport hunting industry, including our barren ground caribou and polar bear outfitters. This new investment will complement the continued investment of almost $1.6 million to support the ongoing Tourism Product Diversification and Marketing Program. A strong small business sector is fundamental to a sustainable northern economy. Adding to investments made in last year’s budget, we will invest a further $750,000 in the recently implemented Support to Entrepreneur and Economic Development, SEED, Program, bringing our support for business and community development under this program to $3.2 million annually. We also intend to help businesses meet their labour demands, as well as further our goal of attracting new people to the Territory, by increasing immigration support. This budget provides $535,000 for the first year of a three-year Territorial Nominee Pilot Project. This program, which may bring 50 to 100 new immigrants in the first year, will help businesses looking to fill jobs that cannot be filled by residents or bring in individuals with special skills that will make a significant economic contribution to our Territory. We will do this while continuing to provide education and training supports to Northerners to enter and remain in the workforce.Country-wide, one of the most pressing issues for business and industry is access to credit. Governments across Canada are being asked to step forward. In these times of extraordinary economic upheaval, the Business Development and Investment Corporation loan program and the NWT Opportunities Fund provide tools to work with

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business and industry to make investments that will stimulate the economy, generate income, and create further value-added benefits for the Northwest Territories. Although our economy may be slowing, we should take advantage of this period to encourage our residents to prepare for the opportunities that will come with the eventual recovery. This budget invests $1.6 million in 2009-10 to improve NWT residents’ skills for both living and working, including $750,000 to help working age youths and adults develop the basic literacy skills they need to take advantage of education and employment opportunities. It includes an additional $495,000 to assist Northerners to prepare for and complete apprenticeship training, and another $100,000 increase to support women and aboriginal people to pursue training in the trades. This budget also provides the Aurora College with additional resources to support the Trades and Technology and Heavy Equipment Operator Training programs. We haven’t lost sight of the large resource projects that will provide lasting benefits to our economy. This budget allocates over $2.1 million to continue the work needed to ensure that we are ready for the proposed Mackenzie Gas Project. If approved and constructed, the MGP will be the single most significant project the Northwest Territories has experienced, and we want to be sure both that the benefits to NWT residents will be maximized and any negative impacts minimized. Our investment will continue support both for training and development of NWT residents and for businesses to ensure that all are prepared for the opportunities that the pipeline project will present.

Investments In Our EnvironmentUsing NWT land and water resources in a sustainable way and protecting these resources for future generations is a key priority of this government. The GNWT spends over $60 million, or 5 percent of its annual budget, to protect NWT land and water resources. Counting investments in energy development and supply, a total of $14.9 million in new initiatives will be provided in 2009-10 to advance work already underway. Almost $2 million will be spent to further the work on land, resource and self-government negotiations. These funds continue the work to ensure that once devolution of resource management is achieved, we will be ready to manage our resources in a sustainable and responsible manner. Almost $2 million will be spent on environmental stewardship including developing a new Wildlife Act, implementing the proposed new Species at Risk Act and completing and

implementing the proposed NWT Water Strategy and the Land Use Framework.Mr. Speaker, I have already mentioned investments in energy conservation in the context of reducing fuel costs and, therefore, the cost of living. But any initiative that reduces our fossil fuel consumption supports our efforts to reduce greenhouse gases. In addition to these energy conservation measures, this budget proposes to invest $9.8 million to develop alternative energy supplies to reduce our dependence on diesel fuel. We propose spending an additional $1.5 million in this coming fiscal year to implement our Hydro Strategy and continue the funding for the environmental, engineering and economic work currently underway. A further $3.6 million will be spent on specific hydro projects, including $800,000 for planning hydro projects in Lutselk’e and Whati and a transmission line from Hay River to Kakisa and Fort Providence as well as $2.5 million to bring the proposed Taltson Hydro Expansion Project to the point where a decision can be made regarding the project’s economic feasibility. This budget proposes increasing funding for energy conservation and efficiency in government buildings and public housing by $2.5 million. Included in this funding is $1.5 million to develop or expand residual heat systems in Ulukhaktok, Fort Liard, Fort McPherson, Fort Simpson and Inuvik. By capturing waste heat through heat exchangers and other proven technologies, these communities will reduce heating fuel consumption and greenhouse gas emissions. A further $3.3 million will be provided to develop alternative energy supplies and investigate the potential of emerging technologies such as biomass and geothermal heating. We expect the $1 million we have budgeted to install wood pellet boilers in some government buildings to be repaid in about four years through reduced fuel costs, which will in turn help fund other retrofits. These projects will also serve as a showcase to promote wood pellets as an economical alternative to diesel. A further $1.8 million will be used to install wind turbines in Tuktoyaktuk. And finally, additional funding will be provided to fund technical studies and business planning to determine the economic viability of developing deep geothermal resources.We will continue our efforts to prepare for the regulatory management of the proposed MGP as well as prepare NWT residents to take advantage of employment opportunities associated with the project. This Budget provides $250,000 to deliver environmental monitor training programs for NWT residents in the four regions that will be affected by the proposed pipeline. As part of the GNWT’s program to continually improve and expand our Waste Reduction and Recovery Program, we will be instituting a 25 cent

levy on single use retail bags to promote use of reusable bags by the fall of 2009. We will also add milk containers to the Beverage Container Program this year and advance development of commercial uses for waste paper and cardboard products in the NWT. This will reduce the amount of waste entering the environment and landfills and provide the funding necessary to expand the Waste Reduction and Recovery Program to include electronic waste, lead acid batteries, fuel drums, and tires in future years. Investments In Our PeopleWe are spending now to develop the skills, talents and abilities of our residents so that our future will include healthier, more self-reliant individuals. In 2009-10 alone, we will spend almost $740 million, or over 60 percent of our operating budget, on programs such as education, health care, housing, and policing services that directly serve our residents. The programs we provide for NWT residents, whether for health care, for seniors, for students, or for those in need of income assistance, compare favourably with those in the provinces. This budget includes almost $6 million in new initiatives to fund actions that focus on children and youth, promote healthy choices, address addictions, support families and seniors, and increase the safety and security of individuals and communities. This includes $1.2 million in expanded programs for youth and children; programs that will enhance the early childhood education opportunities in communities, give students in small schools access to a wider range of courses and continue the pilot projects for activities delivered through the NWT Youth Corps. Mr. Speaker, the 2009-10 budget allocates $313 million to the Department of Health and Social Services. A significant portion of this budget funds services for preventable conditions. We know that investment in prevention will reduce our costs in the future. This budget provides a further $1.5 million investment in health promotion and disease prevention programs that encourage healthy life choices, help prevent addictions and support after-treatment programs. The budget provides additional funding of $2 million to improve care for seniors, including $1.5 million for ongoing operational costs associated with the Territorial Dementia Facility in Yellowknife and additional funding for the operation of the Territorial Supported Living campus in Hay River. These are specific examples where the government is practicing what it believes: that funding should be directed where it serves the most vulnerable, the most in need, or where people are less able to help themselves. Last year, the federal government introduced Registered Disability Savings Plans, RDSP, to help

disabled persons and their families to save to financially support themselves. We have reviewed these plans and will be taking steps to fully exempt both the RDSP account and RDSP withdrawals in determining eligibility for income security programs administered by the Department of Education, Culture and Employment.Mr. Speaker, we are committed to providing stable funding to community governments to ensure these governments have the resources they need to deliver essential municipal services to our residents. This budget includes over $61 million for NWT community governments, an increase of 9 percent over 2008-09 levels. Creating an effective, sustainable public service is an important part of providing education, health care and community and other services. We are committed to developing a sustainable public service. This means offering competitive compensation, within our fiscal means, to attract employees and to ensure they want to stay. To this end, we successfully concluded settlements over the past year with the NWT Teachers’ Association and with the NWT Medical Association. We also propose to provide $2.3 million in 2009-10 to develop and implement programs that will help us attract and keep people in the GNWT and community government public service. We also intend to provide $1.5 million to develop programs to increase the supply of available housing for staff in those NWT communities where supply poses a barrier to recruitment. This, in turn, will improve our ability to deliver programs in these communities. This budget also proposes $390,000 to increase support for non-government organizations delivering services to NWT residents on behalf of the GNWT. Details of how this funding will be allocated will be provided by the fall of 2009 following a review and revision of our funding policy. RevenuesLet me turn now to the revenue side of the budget. The GNWT has limited flexibility on the revenue side as we only control about 25 percent of the $1.3 billion we receive in revenues. Last year’s budget announced that, after public consultation, the GNWT would be implementing $10 million in revenue increases, starting in 2009-10. In September we indicated that we would be looking for ways to increase our revenues by a further $30 million starting in 2010-11. We asked NWT residents how best to achieve these targets.Although there was some support for increasing taxes, or introducing new taxes, the overwhelming response from the public was that before government increases taxes that raise the cost of living or doing business, we should first be sure that we are getting the best value for the dollars we are

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already spending. There was support for the idea of generating new revenues through economic and population growth and for making the investments needed to encourage this growth.In December I announced that we would be deferring our decision to raise $30 million in 2010-11. Given the current economic climate, we have also reviewed our revenue target for 2009-10. Although we do not feel it is appropriate to raise the full amount at this time, we are prepared to implement measures that will raise $7.3 million in new revenues.During the revenue consultation, there was considerable support expressed for increasing taxes that would encourage NWT residents to pursue healthier lifestyles. In addition, where our tax rates have not been adjusted in recent years to keep up with inflation, we believe that there is room for some increase. Therefore, I am announcing that: Effective April 1st, the NWT tobacco tax will increase by an estimated $11.20 a carton, to reflect current prices. Our tobacco taxes were last changed in 2003. Also effective April 1st, our markups on liquor, beer, and wine will be increased an average of 10 percent. Our liquor markups were last changed in 2003.The 2009 property tax rates on mining, oil and gas, and pipeline properties will be adjusted to increase revenues from these sources by 15 percent. As well, the education mill rate for all properties in the general taxation area will be set to increase revenues by 15 percent. These rates have not changed since 2003 and 2000 respectively. Finally, many of the fees the government charges have not changed for many years. Some have not been adjusted since the 1990s. We have initiated a review of all our fees and will be making changes to our financial policies to ensure these fees keep pace with inflation. As a first step, the Department of Transportation will be increasing several fees effective April 1st to raise an additional $300,000 in areas such as vehicle licensing. Now, more than ever, we must look for other ways to raise the revenues we need to deliver programs and services to NWT residents. This budget includes a number of initiatives designed to grow our economy and increase our population and, therefore, increase our revenue base. We are pursuing these initiatives through support for the Immigrant Nominee Program, through investments in a national marketing campaign to promote the NWT as a great place to live, and through agreements with the NWT’s diamond mines to bring more of their non-resident workers to the Territory. These initiatives are important first steps, but we need to find other ways to do more to attract people to the NWT and encourage those who are already here to stay. Last year we were the only jurisdiction in Canada to lose population. We need to make

investments that will reduce the high cost of living in the NWT by lowering fuel, electricity, transportation, and housing costs, and we need to make investments that will grow our economy. The work done on revenues over the last few months shows that we need to take a closer look at how we raise revenues in the NWT, to see if there are changes to our tax system that might further our economic, social, and environmental objectives, without increasing the total amount of taxes we collect. We intend to continue this work in 2009. In addition, I have committed to reconvene another forum similar to that used in our revenue consultation to seek advice and input into this and other budget issues. Looking ForwardMr. Speaker, this budget builds on the foundation we laid in last year’s budget and is very much part of the work in progress to achieve the goals and priorities of the 16th Legislative Assembly. Our long-term fiscal plan is sound. It will give us the flexibility to make the investments today that will produce, in the longer term, the benefits of a protected environment, a stronger, more diversified economy, and healthy, self-reliant people.We have injected more dollars in the economy this year, particularly in infrastructure spending, in order to create jobs and stimulate the economy. However, we are also taking a longer-term perspective and investing in programs such as health promotion and prevention. We know that, overall, people in the NWT are happy with the health and social services that are available to them. But we also know that demand for these services is growing and service delivery costs are increasing, by 7 percent per year over the last nine years. This is not sustainable. We want an affordable health and social service system, but we also want to ensure we are providing the right services in the right way. To this end, the Department of Health and Social Services will be coming forward in the coming months with a plan for reforming the way we deliver health and social services in the Northwest Territories. I want to stress that this will not be a plan to cut total spending on these programs. We will be looking for ways to reduce or eliminate inefficiencies, but we will also be flagging those areas where investments will yield positive returns.Strengthening prevention programs will be a major focus of this work. Putting more dollars into our health care system is only part of the answer. We can all help reduce health care costs by taking more responsibility for our own health. We need to encourage Northerners to stop smoking, drink less, eat a proper diet, and exercise more. The government has a role to play, but so do individual Northerners.

Last December I outlined the next steps in board reform. We have proposed the creation of regional services boards that will manage service delivery of health, social services, education, and housing programs with continued input, direction, and participation from NWT residents on the delivery of programs and services in their regions. We are now proceeding with consultations on the general approach and will examine a variety of issues like board composition, authority, and organization. This board reform will be a major change to the way we deliver services and we look forward to public consultations to obtain feedback on the approach. We want to ensure that the changes improve service delivery through increased coordination and improved case management. We expect the changes to simplify governance, allow us to focus resources on programs and services, and maintain a strong role for regions and communities in setting priorities. By April of this year we expect to be in a position to decide whether to proceed with detailed implementation planning.Although our fiscal plan remains flexible to allow us to adjust to changing economic circumstances, we will maintain our fiscal goal of aligning overall expenditures with revenue growth. This will be critical if we are to avoid incurring long-term deficits. The program review office was established last year. Several projects are currently underway and are scheduled to be completed in the first half of 2009. They focus on such areas as schools’ funding, adult training, and health services cost drivers. We have made substantive changes to the GNWT’s approach to planning for, acquiring, and delivering the infrastructure required to deliver GNWT programs and services. For example, we have begun to address the need for maintenance to improve the useful life of our existing government buildings and have changed the timing of the capital budget; the 2009-2010 Infrastructure Acquisition Plan was approved last fall. As a result, work is now underway to implement projects that were approved last fall and many contracts are in place to address critical deferred maintenance issues. Implementation of other changes to improve how we plan to deliver infrastructure is continuing. Effective April 1st, we are consolidating the current Department of Finance and the Financial Management Board Secretariat into a new Department of Finance to better manage our fiscal planning. By combining resources, the new department will be better able to provide fiscal leadership to the GNWT and promote the principles of sound financial management.Mr. Speaker, devolution remains a priority of this government. It is unacceptable that the NWT’s lands, waters, and resources continue to be managed by Ottawa. We will continue to work with

the federal and participating aboriginal governments to achieve devolution for the management of our resources to the NWT. The GNWT has made a proposal to Canada that provides for the transfer of legislative authority over lands and resources to the GNWT. It would also establish an ongoing partnership with Canada on strategic infrastructure and major development in Canada. Resource revenues associated with devolution will help build our capacity to invest in the NWT’s resource development sector and related infrastructure. The Prime Minister has indicated a willingness to explore new options that would advance the devolution file. Discussions on the GNWT proposal are expected to resume now that the federal economic stimulus package has been announced. We are also exploring the concept of a heritage fund to save income from our non-renewable resources. A heritage fund could play an important role in preserving the benefits of resource development in NWT so that these proceeds can be reinvested to achieve sustainable economic development in NWT. We need to be concerned that the revenues earned from developing our resources benefit this and future generations. We will work with Members to advance this issue in 2009.ConclusionMr. Speaker, I have spoken today about the challenges we face as a Territory. But I have also spoken of the opportunities ahead, the ways we can work to grow our economy, increase our population, lower our cost of living and reduce our reliance on fossil fuels.We are facing difficult economic times, and there may be more bad news to come. We need to be monitoring events and are planning assumptions vigilantly, and we must be prepared to adjust our fiscal plans accordingly.Although this budget contains some expenditure reduction measures, overall operating expenditures will grow, albeit at a slower rate than we have seen in the past. While we will be implementing some modest revenue measures, we will also look within to ensure we are getting the best value for the dollars we are already spending and the tax dollars we currently raise. We need to focus on the core services government provides and be prepared to live with fewer extras. The expenditure reductions made in last year’s budget have given us some fiscal flexibility to act to address current economic circumstances, but our relatively small tax base and borrowing capacity mean that the room we have is limited compared with other jurisdictions. We must all be prepared to make sacrifices. We will ensure that the benefits of the dollars we spend and the contributions toward maintaining a sound fiscal

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position are allocated fairly. We will share the burden, but we will not leave anyone behind. Mr. Speaker, this budget keeps us on the path of fiscal sustainability we began at the onset of this 16th Legislative Assembly. It allows us to continue to invest in the NWT economy, people and environment for the benefit of NWT residents. Our collective task in the Northwest Territories is to work together during these difficult times, to meet the many challenges and seize the opportunities as they present themselves. I am confident that this budget gives us the flexibility to adjust to short-term challenges while continuing on our longer-term path. Thank you, Mr. Speaker.---ApplauseMR. SPEAKER: Thank you, Mr. Miltenberger. Colleagues, I never noticed before… I’d like to draw your attention to the visitor’s gallery to the presence of Mr. Leon Lafferty, former Member of the 14th

Legislative Assembly.---ApplauseNow, colleagues, I am going to call a short recess and invite everybody to join the Finance Minister out in the Great Hall for a short reception.---SHORT RECESSMR. SPEAKER: I would like to call the House back to order. The honourable Member for Hay River South, Mrs. Groenewegen.

POINT OF PRIVILEGE MRS. GROENEWEGEN: Mr. Speaker, I rise on a point of privilege. Mr. Speaker, yesterday afternoon before the commencement of the House, I returned to my private office in the Legislative Assembly to find a handwritten note from Jean-Marc Miltenberger on my desk. Mr. Miltenberger was in the Legislative Assembly yesterday as a guest of his brother, Minister Michael Miltenberger. As you know, Mr. Speaker, Members' offices are located in a restricted area of this Legislative Assembly, an area accessible only by Members and staff of the Legislative Assembly. As you also know, Mr. Speaker, it is the policy of this Legislature that guests who are signed into the restricted area of the Legislative Assembly must be accompanied at all times by the Member who signed them in.When I discovered the note from Mr. Jean-Marc Miltenberger, I was immediately concerned, because the paper used on which to write the note came from behind my desk beside my telephone. I was immediately concerned as there were sensitive and confidential documents in plain view on my desk. Included among these documents was a draft of the motion I provided in this House yesterday. Mr. Speaker, before I was able to give notice of that motion, Mayor Miltenberger gave an interview to the Hay River Hub criticizing the proposed motion.

The only reasonable conclusion I can come to is that Jean-Marc Miltenberger saw the draft notice of motion on my desk when he entered my office without permission and released its contents to the media before I was able to formally introduce it in the House.When I discussed this matter with Minister Miltenberger today, he confirmed that he did not accompany his brother to the Regular Members' office area or into my office. Unauthorized access to the private office space of any Member is a breach of that Member's parliamentary privilege. Mr. Speaker, this is particularly so when confidential and sensitive information acquired as a result of such unauthorized access is released to the public. In fact, Mr. Speaker, I view the release of this type of sensitive information to be contempt of this House. Mr. Speaker, this is a serious matter, and it should be of concern to all Members of this Legislature. Thank you, Mr. Speaker. MR. SPEAKER: Thank you, Mrs. Groenewegen. To the point of privilege, are there any other further comments? The honourable Member for Thebacha, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: Thank you, Mr. Speaker. I will confirm that Mayor Miltenberger from Hay River was with me and that he did want to go down and pay a quick courtesy call to the Member, who wasn’t there and he left her a message. I think the rest is assumption on the Member’s part. The news of that motion was all over the place. The word was out that there was something afoot. There were calls received from High Arctic up in the North. People had heard already, so she has made some fairly damning accusations against the mayor; making some very strong allegations about the contempt. I can assure this House that there is no point of contempt here. If I was remiss in letting my brother out of my sight for 30 seconds, then I guess I have to be held accountable for that. The Member came into my office this morning, demanding to know if I had been in her office. I had not been. I leave it to the Speaker to sort through this matter, but I can assure you the intent I think on both of our parts, the mayor and I, were honourable and there are some significant aspersions cast here without real evidence. Thank you.

SPEAKER’S RULINGMR. SPEAKER: Thank you, Mr. Miltenberger. Are there any further comments on the point of privilege? Thank you, Members. I will take the point of privilege under advisement and come back at a later date with my findings.

Orders of the day. Item 3, Ministers’ statements. Item 4, Members’ statements. The honourable Member for Nahendeh, Mr. Menicoche.

Members’ Statements

MEMBER’S STATEMENT ONUPDATES TO DEH CHO REGION

HIGHWAY INFRASTRUCTUREMR. MENICOCHE: Thank you, Mr. Speaker; I have spoken many times in the past about the need to improve the Dehcho Travel Connection and the positive economic and tourism benefits such improvements would provide. The Dehcho Connection, the portion of Highway No. 1 and No. 7 through the Deh Cho region, provides one of the most scenic wilderness road trips in the Northwest Territories. Tourists can drive north from Alberta and along the way experience the magnificent waterfalls, excellent camping facilities and visit several Deh Cho communities.They can continue their journey on to Fort Simpson and follow the beautiful Liard River to Fort Liard as they make their way to British Columbia. The circle route is well promoted by the Industry, Tourism and Investment department to national and international visitors to our Territory and is an important part of our tourism infrastructure.Mr. Speaker, this route is not just for tourists. The residents of the Deh Cho travel this route for work to visit family and friends. They depend on the road for the supply of goods and services to and from their communities.The number one concern for both residents and tourists, Mr. Speaker, is the safety of this road. Last year, this road was washed out and was closed for several weeks. This had a big impact on residents, particularly of Fort Liard. Goods and services had to be flown in, driving up the cost of groceries and other essentials. Store shelves were empty, negatively impacting small businesses. Visitors planning a trip to the NWT using this route thought twice and many actually chose not to make the trip. Highways No. 1 and No. 7 are key transportation routes in and out of the Northwest Territories. We must ensure this road is safe and reliable on a year-round basis for all those who travel it. The logical solution is to properly upgrade this part of our highway infrastructure with chipseal. This infrastructure investment is in keeping with the stated goals of this Assembly to improve transportation infrastructure to connect communities. I would be proud to have this chipseal project in our budget and in our future budgeting processes.I urge the Minister of Transportation to include the chipsealing of this Dehcho Travel Connection in the

capital plans so we can begin to address this serious issue. MR. SPEAKER: Thank you, Mr. Menicoche. The honourable Member for Kam Lake, Mr. Ramsay.

MEMBER’S STATEMENT ONOPPORTUNITIES FUND LOAN

TO DISCOVERY AIR INC.MR. RAMSAY: Mr. Speaker, I’m going to speak today about the lack of transparency and accountability shown recently by decisions that were made by FMB in regard to a loan to Discovery Air in the amount of $34 million.As we heard the news from Finance Minister Miltenberger earlier today that rough times are ahead for our economy, pressure will be put upon this government to continue with the programs and services it delivers to our people. This will be done amidst the backdrop of diminished revenues and an economy that will face some uncertainty. Given these factors, I’m completely amazed at how Cabinet and FMB could make a decision to put $34 million at risk.It is true that the money comes from an Immigrant Investor Fund and not directly from our own public purse. However, the reality is that the $34 million if not paid back four years from now will mean that will have a very negative impact on our operations at a future date. My issue is not with the government helping keep jobs here in the North. My issue is with the lack of any process or oversight of the loan. We had the Minister of Finance and the Minister of ITI call a meeting with Regular Members only to tell us that they had loaned the $34 million to Discovery Air. They told us it was coming out of the Opportunities Fund, which prior to the loan to Discovery Air was a passive investment vehicle. At some point, Cabinet made the decision to shift the focus of this fund from a low risk to a very high risk. The fund itself is set up as a society overseen by a group of senior bureaucrats. What I’d like to know, and I think many people in the Northwest Territories would like to know, is what was the recommendation from the society to FMB in regard to this loan? How is it that two Cabinet Ministers could show up to two consecutive meetings with Regular Members of this House to discuss this loan on the Opportunities Fund without giving us a single piece of evidence that it was a good deal? We had to write to both Ministers with questions and I’d like to thank them for trying to answer the questions, but it only raises many more questions about the process and decision-making surrounding this loan. I’ve heard from many people across the Northwest Territories -- Fort Simpson, Norman Wells, Deline, Inuvik, Hay River, Fort Smith, and here in Yellowknife -- that are upset and very

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concerned that our government has made this fund available to one company while many others across the Territory face hard times as well.Mr. Speaker, I seek unanimous consent to conclude my statement. ---Unanimous consent grantedMR. RAMSAY: The bottom line remains. Once again Regular Members found out about this loan after the fact. There was no opportunity for us to suggest creative ways in which we could look at using this fund to provide some tangible opportunities for businesses and people in our own Territory. I think what happened here is shameful.MR. SPEAKER: Thank you, Mr. Ramsay. The honourable Member for Mackenzie Delta, Mr. Krutko.


TO DISCOVERY AIR INC.MR. KRUTKO: Mr. Speaker, I, too, would like to raise the issue in regard to the government loan to Discovery Air. I’d like to ask the Minister of Finance if he was aware or did he receive any information that the Gwich’in Development Corporation was one of the businesses that loaned Discovery Air the amount of $10 million in regard to share equity in Discovery Air? Also, was the Minister aware that the Gwich’in Development Corporation offered an extension of the loan to Discovery Air based on the terms of the Gwich’in Development Corporation was prepared to accept? Also, was the Minister aware that the Gwich’in Development Corporation approached the board of directors of Discovery Air with a consolidation of lenders to extend the loan to Discovery Air under similar terms? Was the Minister aware that the Gwich’in Development Corporation is now in the process of reviewing the loan equity share in Discovery Air because of its decline in equity that basically the government’s put into it? Also, does the Minister accept the premise that one of the terms of the Gwich’in Comprehensive Land Claim Agreement is that this government will assist the Gwich’in to participate in the northern economy and not to compete against these Gwich’in land claim investments? During the evaluation of the loan requested by Discovery Air did government officials or Deloitte Touche provide any information about the possible ownership and management options that were available to those individuals and groups that had equity in regard to this loan, the Gwich’in Development Corporation and other private sectors and institutions who were willing to lend money to this organization? Was that even considered?Finally, I would like to know if this government is prepared to provide the Gwich’in Development Corporation with compensation on the basis of lost

equity in a business opportunity that they have made major investments in and now the government investment has taken that opportunity away. At the appropriate time I will ask the Minister with regard to the loan to Discovery Air for $34 million and putting the Gwich’in Development Corporation out $10 million.MR. SPEAKER: Thank you, Mr. Krutko. The honourable Member for the Sahtu, Mr. Yakeleya.


TO DISCOVERY AIR INC.MR. YAKELEYA: Mr. Speaker, I, too, would like to make my statement, along with the honourable Members from Mackenzie Delta and Kam Lake, in terms of the optics of this loan being discussed with Discovery Air and in terms of the newspaper that printed the story in our communities in the Sahtu. This afternoon I was on a call from the grand chief of the Sahtu region and I asked him what his thoughts were on the Discovery Air bailout loan and investment. He said, “Where is the government going? What are they thinking? We said we can use a percentage of that type of dollars in our region to help us with our roads and the airports and our infrastructure, even looking at a wellness, a regional health centre in the Sahtu.” The optics out there aren’t very good. As a matter of fact it stinks in terms of how this process rolled out after we had the two Ministers come and meet with us and talk to the Members as to what had taken place, what process was taken in terms of having this loan being discussed with Discovery Air. We weren’t privy to that information. The transparency wasn’t there. We weren’t told as to what happened. The due diligence was done and how it came to its decision and how the structure was set up through the requirements of the federal government in terms of how this board of directors of senior management have an Opportunities Fund that is at their disposal to help people in the Northwest Territories. We didn’t see that. I do agree with the Member from Kam Lake that the issue is not about jobs. It’s about how do we help the real people in our small communities like the Sahtu, like the Tlicho, Inuvialuit, Beaufort-Delta, any other regions that need help. Not to help other companies, but to help the real northern people and aboriginal businesses to have a say in their region. I will have questions for the Minister at the appropriate time.MR. SPEAKER: Thank you, Mr. Yakeleya. The honourable Member for Great Slave, Mr. Abernethy.

MEMBER’S STATEMENT ONHEALTH CARE INVESTMENTS

MR. ABERNETHY: Thank you to the Minister of Finance for his budget address today. We certainly live under tough financial times where everybody -- politicians, individuals, households, businesses -- is required to make tough financial decisions. However, it’s not just making tough financial decisions; it’s about making informed and responsible financial decisions. It will require thinking outside of the box for them to take individuals out of their comfort zone. As a government, I feel that the way we do business can often limit our ability to think outside the box. Specifically, the way we create silos that compartmentalize our decision-making based on established departmental structures limits our ability to stand back and take a holistic view of our finances and how we spend money.Prior to the last budget session each department was given marching orders to review their budgets and find reductions. Some departments met their targets and others still haven’t. The question is, is this the right way to do things? To me it doesn’t take a holistic approach to review our financial situation and fails to address those areas which are truly important to residents of the Northwest Territories. For example, ITI met the reductions during the last budget session and will be moving forward with renovations and upgrades in a number of northern campgrounds; clearly something that needs to be done. Health and Social Services didn’t meet their targets. This year, while other jurisdictions increase their health budgets anywhere from 7 percent to 10 percent, our health budget is increasing by just over 1 percent. On the face of it, it sounds good, but when you consider that forced growth is around 3 percent on a territorial level and just keeping pace with the delivery of health service budgets and other health systems have traditionally increased by around 6 percent or 7 percent, it means that Health and Social Services within the Northwest Territories is going to have to cut services to be on budget in 2009-2010.Here’s the problem: This government fails to stand back and take a look at the big picture. What is more important to the people of the NWT, I suggest that health care definitely affects and is more important than a few campground upgrades. Yet, because we don’t look at the whole picture, the priorities of one department can often overtake the priorities of another department, even when the priorities of that second department are far more important and have a greater impact on the people of the Northwest Territories. When it comes to financial planning, as a Legislature we can’t afford to look at each

department as their own little empire. They need to see the big picture. Yes, planning needs to be done at the departmental level and we should demand efficient running of each, but we also must look at the final budget on a global scale and how cuts in the department rank with cuts or new initiatives in another department. Our strategic direction, mission and mandate should assist us in prioritizing cuts and new investments. Where one of our main goals is healthy, educated people, it’s hard to understand why reductions affecting health…MR. SPEAKER: Mr. Abernethy, your time for your Member’s statement has expired.MR. ABERNETHY: Thank you, Mr. Speaker. I seek unanimous consent to conclude my statement.---Unanimous consent granted MR. ABERNETHY: Where one of our main goals is healthy, educated people, it’s hard to understand why reductions affecting health care we make are in the best interest of the people of the Northwest Territories. Yes, we need to be efficient and make sure that our system is running efficiently and we spend every dollar to its maximum benefit, but what is it in the best interest of the people of the Northwest Territories? I don’t believe cutting health is for the sake of the parks. MR. SPEAKER: Thank you, Mr. Abernethy. The honourable Member for Frame Lake, Ms. Bisaro.

MEMBER’S STATEMENT ONINITIAL RESPONSE TO BUDGET ADDRESS

MS. BISARO: Today I’d like to make a few comments in regard to the budget address we just recently heard. Firstly, I find little fault in the budget as presented. I certainly am in disagreement with parts of the budget. Things like the milk subsidy that is not included, a grant to Skills Canada that will be discontinued, that the budget continues to use the term “strategic initiative” to define costs which are actually forced growth. But in general I feel that the Minister of Finance has done a good job. The Minister has referenced the current global economic downturn a number of times and he’s stated that it will likely have an impact on the NWT. I’m encouraged that he’s recognizing that fact. He would be the proverbial ostrich with its head in the sand if he did not, but I encourage the Minister, as we move forward through the 2009-2010 fiscal year, to remain vigilant about the effects that we’re going to experience. We cannot wait for negative results. We have to be proactive and plan ahead. I am very happy to hear in his budget address that the Minister seems to think that will happen.

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We have to have contingency plans and strategies in place to respond to reduced revenues, if that’s what occurs. Too often governments react to a situation instead of planning ahead, and reacting can be disastrous.Further, I feel that this government must ensure that the budget’s infrastructure projects that have been referenced provide economic stimulus to our communities, and our smaller communities in particular. It’s very important that the Finance Minister makes sure that happens. These communities are struggling and it’s the duty of their government to assist them in surviving the current economic strife that they’re encountering. I support the $20 million investment in energy initiatives. If we’re ever to become self-sufficient in regard to our power needs we, as a Territory, have to remove ourselves from reliance on fossil fuels. These investments are long term, but I think it’s moving in the right direction.Lastly, I’d like to draw attention to a few of the Finance Minister’s words from the address where he stated, “The budget provides additional funding of $2 million to improve care for seniors; that funding should be directed where it serves the most vulnerable, the most in need, or where people are less able to help themselves.” I could only think about the Supplementary Health Benefits Program as proposed, and those words from the budget address hardly, to me, mean that we’re going to be assisting our seniors. I trust that the government means the words that are actually on the paper and that they apply this intent when redesigning this particular program.In conclusion, I look forward to debating this budget and I will have questions for the Minister at a later date. MR. SPEAKER: Thank you, Ms. Bisaro. The honourable Member for Weledeh, Mr. Bromley.

MEMBER’S STATEMENT ONINITIAL RESPONSE TO BUDGET ADDRESS

MR. BROMLEY: I wanted to start by saying I was very pleased to hear in the budget address whenever things were being considered they were being considered from the perspectives of the economy, people, and the environment. This is a three-legged stool that is so essential in our approach to all issues. This is the first budget I have actually heard this in, so I want to compliment the Minister on that.I’d like to also delve into the details, because that’s where the juice is, or not, on energy initiatives. I’d like to start by mentioning this recession that we’re in and the effect it’s had on the price of energy, particularly oil. Many believe that we hit peak oil and that’s what drove the prices up so high just before the recession hit. It may have contributed to

it. We have a window of opportunity now when prices are low to be very effective with our dollars. We can rest assured, and I’ve had people come up to me at the break and say this window of opportunity may be very brief. We need to be very effective with this time and deliver these programs very effectively and quickly. First of all, let’s get it done. Let’s have a community systems approach on the ground. Let’s deal with the revenue included and, in particular here, energy efficiency and, of course, dealing with heating. Electricity is more problematic and I’m not saying ignore that. We need to be talking about that too. One of the first things to me is we have a biomass opportunity. The Minister has identified that. We need community forest inventories, we need sustainable harvest plans, we need the development of wood cooperatives where people in the community can contribute and grow and harvest wood following the sustainable programs and so on. We need to look into wood classification. This is demonstrated to be the most efficient way to go for biomass and district heating in our communities. These are all off-the-shelf technologies available now. I’m pleased to see the interest in wind and geothermal. Mini-hydro, $800,000 towards planning. Lord, Lord. Let’s get to actually doing something on mini-hydro, please. Energy efficiency, I’d like to see us go after establishing EGH-80 in our public housing programs, especially with the federal dollars that are available.Thank you very much, Mr. Speaker. I see I’m out of time.MR. SPEAKER: Thank you, Mr. Bromley. The honourable Member for Tu Nedhe, Mr. Beaulieu.

MEMBER’S STATEMENT ONINFRASTRUCTURE INVESTMENTS

MR. BEAULIEU: Mahsi cho. [English translation not provided.]Mr. Speaker, with the downturn in our economy it has become crucial that the government put real action into spending its infrastructure dollars. I’m not asking the government to put new money in to our economy or to build up the huge deficit, but to actively spend money that is currently on our books so that opportunities can be afforded to our residents of the Northwest Territories. The government must do its best to stimulate our slumping economy so northern businesses can go back to work. This will be a huge benefit at the community level.In the recent federal government announcements millions of infrastructure dollars were earmarked for

the Northwest Territories. Our government must take full advantage of this money.In recent years this government has not spent all of its infrastructure dollars. These dollars need to be spent in order for our North and our people to benefit. The people of Tu Nedhe are counting on this government to spend the money that was targeted for the communities. Without that spending, the people will be in the poor house. Not to mention if our government does not spend its infrastructure dollars, it will have a very negative impact on the social purse. I repeat with no option but to ask the government for a handout just to put food on the table. Mr. Speaker, later today I will have questions for the Minister responsible for infrastructure departments. MR. SPEAKER: Thank you, Mr. Beaulieu. The honourable Member for Yellowknife Centre, Mr. Hawkins.

MEMBER’S STATEMENT ONPROPOSED CHANGES TO SUPPLEMENTARY

HEALTH BENEFITS PROGRAMMR. HAWKINS: Today I’m going to talk about the most important issue in the riding of Yellowknife Centre. Those are the potential changes that are being brought forward by the Health Minister about the Health Care Plan and the benefits. Mr. Speaker, if for only a moment we could imagine what it was like before the Minister made that horrible announcement before Christmas, you would hear from our seniors that they felt respected, cared for, loved, trusted, supported, maybe even safe and perhaps happy in the North because they knew the government loved and cared for them. Once this announcement came, that put an immediate halt to those wonderful feelings of those people who put their trust in us. Now the Minister has finally admitted she screwed up. So I would finally say we’re getting somewhere on this problem, and I thank her for admitting that. She says she will consult this time. I thank her for that, but what the fear now shifts to is what this consult means. The fear also continues on meaning will this be lip service? Is the department buying time? Will they listen? Will this be the same plan but with a new cover? Will the Members have a chance in a meaningful way to be involved prior to implementation? Will income thresholds be revisited in a fairer way? What about the cost of living? Will that be considered or will it be fraught with bias with a predetermined outcome that will never change anything? Mr. Speaker, the fear is out there and certainly it’s internal with me thinking that will we get to where we need to be. Mr. Speaker, I expect that consultation means meaningful dialogue, hearing

the voices, recognizing the vast petitions that have come in that have been laid before this House. The Minister needs to recognize the seniors are having difficult times keeping pace with this high-cost world and changing times that we live in. We need to make sure that they are shown dignity and that this new plan is clear and certainly fair. Mr. Speaker, respect is a hard thing to earn so I expect a lot of work brought forward by this Minister. I will have questions for her later today to make sure that we’re all achieving the same type of outcome, that we are taking care of our loved ones who need us most. MR. SPEAKER: Thank you, Mr. Hawkins. The honourable Member for Nunakput, Mr. Jacobson.

MEMBER’S STATEMENT ONAPPRECIATION TO AKLAVIK

RECREATION LEADERSMR. JACOBSON: Today I’d just like to bring up a recreation leader in Aklavik, Mr. Dean McLeod and his staff, and what a good job they’re doing. To let them know that they’re doing, I guess you could say, an awesome job. This past weekend we attended the hockey school in Aklavik with my two sons with Andy Nowicki from the Red Deer Rebels, he’s a goaltending coach. Over the past four years we’ve been attending the camp and it’s only getting better. We’ve got about 30 to 40 children on the ice at all times. Just to let them know and to thank them for doing an awesome job. Dean, at the same time was holding a curling bonspiel where Mr. Krutko’s team was eliminated pretty quickly.---LaughterThey did good, though. I’d like to thank Dean McLeod, Pat Kasook and the rest of the hamlet staff in Aklavik. I’d like to congratulate Dave McLeod and his wife Mina for the great weekend we had in Aklavik and also, congratulations to Dave McLeod’s team that took the A division curling title in Aklavik. If we had recreation leaders like that right across the Northwest Territories, we wouldn’t be hurting so bad for…Thank you, Mr. Speaker. MR. SPEAKER: Thank you, Mr. Jacobson. Item 5, reports of standing and special committees. Item 6, returns to oral questions. Item 7, recognition of visitors in the gallery. The honourable Member for Mackenzie Delta, Mr. Krutko.

Recognition of Visitors in the Gallery

MR. KRUTKO: I’d just like to recognize my dad, he just walked out the door, I believe.---LaughterHe couldn’t wait any longer. Also, I’d like to recognize Mr. Leon Lafferty, a former Member of the House, and also Chief Charlie Nitsiza . Welcome to the House.

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MR. SPEAKER: Thank you, Mr. Krutko. The honourable Member for Thebacha, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: I’d like recognize my wife, Jeri, the longest serving public librarian in the Northwest Territories; 23 years and with her former resident who got all his good upbringing in Fort Smith and now the president of the local chamber, Jon Jaque.MR. SPEAKER: Thank you, Mr. Miltenberger. The honourable Member for Great Slave, Mr. Abernethy.MR. ABERNETHY: I’d like to recognize a long-time Yellowknifer, a respected senior and a constituent of the Great Slave riding, Ms. Jan Stirling.MR. SPEAKER: Thank you, Mr. Abernethy. The honourable Member for Yellowknife South, Mr. Bob McLeod.HON. BOB MCLEOD: Thank you, Mr. Speaker. I have a very long list. I don’t know if everybody is still here, but I’d like to start by recognizing the executive director of the NWT Tourism, Mr. Jerry Laprieur; the executive director of the NWT Chamber of Commerce, Mr. John Curran; the president of the Yellowknife Chamber of Commerce, Mr. Jon Jaque; the president of Canadian North, Tracy Medve; vice-president Kelly Kaylo from Canadian North as well. I’d like to recognize Gord Clarke, the treasurer of NWT Chamber of Mines. Constituents: I have Anne Juneau, constituent of Yellowknife South; Gayla Wick, constituent of Yellowknife South; a long-time friend and classmate, Mary Carr; Mr. Ed Jeske -- I don’t know if he’s still here or not -- a long-time hockey booster and long-time friend, Mr. Bill Erasmus, president of the Dene Nation; and Darrell Beaulieu, the chair of the Business Development Investment Corporation. Thank you. MR. SPEAKER: Thank you, Mr. McLeod. The honourable Member for Kam Lake, Mr. Ramsay.MR. RAMSAY: I’ve got a few people I’d like to recognize today: Barb Wyness and Gayla Wick with the UNW. I’d like to thank both ladies for their help on the petition I’ll be presenting later today. Also, Mr. David Wind and Lydia Bardak, both Yellowknife city councillors, and a former colleague on Yellowknife City Council, Mr. Ben McDonald; also a former Member, Leon Lafferty. Welcome Chief Lafferty. I can’t see up behind me so welcome to any other Kam Lake constituents and other folks who are in the gallery today. Thank you.MR. SPEAKER: Thank you, Mr. Ramsay. The honourable Member for Monfwi, Mr. Lafferty.HON. JACKSON LAFFERTY: Mahsi, Mr. Speaker. I, too, would like to recognize my constituents and also my chiefs: Chief Leon Lafferty

of Behchoko, Chief Charlie Nitsiza of Whati. Also, I’d like to recognize David Reid, president of NWTTA sitting with us. Mahsi.MR. SPEAKER: Thank you, Mr. Lafferty. The honourable Member for Weledeh, Mr. Bromley.MR. BROMLEY: Thank you, Mr. Speaker. I’d like to recognize some constituents: Joyce Gilchrist, Dick and Loretta Abernethy, folks of my colleague here beside me. Also, Bill Erasmus, constituent of Weledeh and, of course, there’s other old timers that I recognize in the audience, many, but Bob and Loretta Gamble. Good to see them here and the chiefs from Tlicho. Thank you.MR. SPEAKER: Thank you, Mr. Bromley. The honourable Member for Range Lake, Ms. Lee.HON. SANDY LEE: Thank you, Mr. Speaker. I’d like to recognize a couple of constituents: Ms. Heidi-Ann Wild. Sorry, I hope I didn’t screw up the name. Sorry. I believe she’s here to represent the Public Service Alliance of Canada, and Mr. Guy Leblanc who has been my constituent for a long time. Thank you.MR. SPEAKER: Thank you, Ms. Lee. The honourable Member for Yellowknife Centre, Mr. Hawkins.MR. HAWKINS: I, too, wish to recognize Dave and Anne Wind, they’re up on the top floor of the gallery; Mr. Terry Testart, he’s next to the chiefs there; Ms. Lydia Bardak and Mr. Ben McDonald. Of course, if anyone else from Yellowknife Centre is here I’d like to welcome them. From my position it’s difficult to see the whole gallery. Thank you.MR. SPEAKER: Thank you, Mr. Hawkins. The honourable Member for Frame Lake, Ms. Bisaro.MS. BISARO: Mr. Speaker, I have three constituents here that I’d like to recognize today: Barb Wyness who’s here with the UNW; Jeff Corradetti, I don’t know if Jeff’s associated with anything in particular or not; and Kim Bailey, who is with PSAC. I’d also like to say that I would be remiss if I didn’t recognize the many respected Yellowknife elders who are up behind me and many other people who I can’t see. Welcome to those. Thank you.MR. SPEAKER: I would like to recognize a constituent of mine, Mr. Roy Courtoreille, who is in the gallery, regional vice-president of UNW. If we missed anyone in the gallery today, welcome to the House. I hope you are enjoying the proceedings. It is always nice to have an audience in here.Item 8, acknowledgements. Item 9, oral questions. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Oral Questions

QUESTION 60-16(3):PROPOSED CHANGES TO SUPPLEMENTARY

HEALTH BENEFITS PROGRAMMR. HAWKINS: Thank you, Mr. Speaker. The issues have been spoken to quite directly and a fair bit, are the potential changes to the extended health benefits as well as the Supplementary Health Benefits Plan. Mr. Speaker, in short, the Minister has offered to delay the plan to go out to further consultation. It does create a lot of fear and the worry is it predetermines. So I am going to ask the Minister clearly here: Is adjusting the time implementation, implementation time frame, just a delay tactic or what does she mean by getting out there to do meaningful consultation? MR. SPEAKER: Thank you, Mr. Hawkins. The honourable Minister of Health and Social Services, Ms., Lee.HON. SANDY LEE: Thank you, Mr. Speaker. Mr. Speaker, first of all, it’s really important for the seniors out there to know that this government will continue to provide a package of programs that are better than any of the other comparable, competitive, very good…We have very good packages for constituents. As the changes are laid out right now, for a single income senior, if your retirement income is around $60,000 to $70,000, you will still get supplementary health benefits. I think talking about net income has missed that point. When I travel across the country and the Territories and tell them that most people say that is fair, that is a good threshold. The problem we have now for the seniors is that we’ve got a couple or seniors in a different mix-up, mix of a family. We need to improve that a bit. I have no reason to think that we are going to do any less than about $70,000 retirement income. I have talked to everybody who has called me. I have been talking to many seniors for many weeks now and 90 percent of the time, the coverage will not be affected. I am really concerned the lack of information or misinterpretation is giving fear to the seniors in a way that they should not be.So, Mr. Speaker, in talking about public consultation, I mean it when I say we are going to have a good, meaningful consultation process. It’s going to be a two-way exchange of information. I have committed to be open minded and willing to listen to what seniors have to say. I think it’s really also important for seniors to know how these changes are going to affect them and I am committed to making sure they have all the information they need. MR. HAWKINS: Mr. Speaker, one of the issues that took my breath away is the fact that I didn’t feel consulted in this whole process and when it was finally launched to the public, I felt that I was

misinformed and didn’t have a chance to it. Now that may be as it may be, but the reality is I felt I didn’t have the full information at the time. So will the Minister clearly commit to this House that she will present the new plan or new policy before Members or some type of dialogue before there is any final implementation so we know what’s going out there and she has that type of support? Thank you.HON. SANDY LEE: Mr. Speaker, people in the gallery and ourselves should know that it is a regular practice in this Legislature that any policy changes go to the standing committee for review and consultation. That took place with the supplementary health benefits in December of 2008, and between 2003 and ’07 this proposal went to the standing committee at least five or six times. It is consulted with NGOs and with the NWT Seniors’ Society as well as the Yellowknife Seniors’ Society. So I understand that the depth and breadth of consultation is not as good as what people would like to have and I have committed that we will go back and we will continue on with the consultation. MR. HAWKINS: Mr. Speaker, the Minister did allude to it in a certain way. I just want to make sure that it’s absolutely clear and on the record, income threshold, when it comes to a couple of needs to be revisited in recognition of the cost of living and whatnot. So will the Minister make sure these are clearly on the record, that these are the types of things that would be looked at and considered in this consultation? Thank you.HON. SANDY LEE: Absolutely. MR. SPEAKER: Thank you, Ms. Lee. Final supplementary, Mr. Hawkins.MR. HAWKINS: Thank you, Mr. Speaker. Although the deadline target has been set and, in my view, I thought I got an answer yesterday that said if consultations were required beyond that, the deadline would come off. I just want to make sure it’s clear again in that spirit, if consultation hasn’t been fully fulfilled, due to weather, it’s summer, or they aren’t getting enough participation, people’s schedules are busy, will the Minister be clear today in this House to say if more time is needed not to rush this policy out to market? Will she say she will move the date if necessary to fully comply with fair consultation? Thank you.HON. SANDY LEE: Mr. Speaker, given the level of interest and the communication that we’ve been receiving from the public on these changes, I have a feeling that we are going to be able to seek and get input from the public as well as stakeholders to these programs. The department plans to have information sessions in all of the regional centres. We are going to do a full and meaningful consultation. The end date is to have it done by September 1st, but as I stated before, the important

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part of this exercise is to do the right work and we are committed to do that. MR. SPEAKER: Thank you, Ms. Lee. The honourable Member for Weledeh, Mr. Bromley.

QUESTION 61-16(3):PROPOSED CHANGES TO SUPPLEMENTARY

HEALTH BENEFITS PROGRAMMR. BROMLEY: I would like to follow up with the Minister of Health if I could briefly and ask, will the consultation include information on what the size of the different cohorts are in terms of the different thresholds? Thank you.MR. SPEAKER: Thank you, Mr. Bromley. The honourable Minister of Health and Social Services, Ms. Lee.HON. SANDY LEE: Thank you, Mr. Speaker. The document that the department will prepare as a point of start for discussion will include such information. Thank you, Mr. Speaker.MR. BROMLEY: Thank you to the Minister. Mr. Speaker, will it include what the character of those cohorts are? By that, I mean holistically what are their roles in the community and the community’s well-being? Will there be an assessment of that? Thank you.HON. SANDY LEE: Mr. Speaker, I am going to have to ask the Member to re-ask that question because I am not sure if I understand it. MR. BROMLEY: Yes, for clarification, obviously a new policy like this can have different affects on different cohorts depending on their ability to pay and depending on the role they play in our community. For example, let’s take the seniors. These are a cohort of people who have incredible expertise and experience, and often time and energy and willingness to contribute to the community. So when we have impacts on them, obviously it’s going to roll through the whole community and Territory. So I am looking for a commitment. Will the Minister commit to providing that sort of assessments for each of those cohorts? Thank you.HON. SANDY LEE: To be honest, I am not sure if that would be part of…That might be going outside of the work the Department of Health and Social Services would do in terms of addressing some of the major concerns that were brought up about the supplementary health benefit changes. Having said that, I do acknowledge that within the course of the last six or seven weeks since the policy changes were announced, we have heard lots of stories and background situations that does make us think about it and put it into context in thinking about how these changes will affect our population. So in general terms, I will make the commitment to make sure that that is part of that. So that would be my response to that question.

MR. BROMLEY: Again, thank you to the Minister for those comments. Yes, obviously there are different levels of complexity to this whole issue. Fundamentally, though, it can be expressed by if people leave the Territory, and especially talented and contributing members of our society, that is a great cost, so that needs to be considered. So will, finally perhaps, the public consultation also include the presentation of alternative solutions, some options for the public to consider? Thank you.HON. SANDY LEE: I think the information session...That is why we are calling it an information session workshop format; because that is what the NWT Seniors’ Society and other NGOs have done before in talking about changes to supplementary health format. In those discussions I think it would be a good opportunity to show the package of programs that we have available for seniors in the North, understanding, for example, we provide an exception for property taxes for seniors, which I don’t think other provinces do, and there are some other programs. We have to look at the attractiveness for seniors to retire here, and we have to remain competitive. So in that way I think that will be part of the discussion. Thank you.MR. SPEAKER: Thank you, Ms. Lee. The honourable Member for Kam Lake, Mr. Ramsay.

QUESTION 62-16(3):OPPORTUNITIES FUND LOAN

TO DISCOVERY AIR INC.MR. RAMSAY: Thank you Mr. Speaker. My question today is for the Minister of Finance, who is also the chair of the Financial Management Board. It goes back to the $34 million loan to Discovery Air. What I want to speak about today, Mr. Speaker, is the process that allowed this to happen. The way I look at it, if something like this happened in a province and the government made a decision to lend $34 million, that loan would come under some heavy scrutiny; there would be some accountability and there would be some oversight. In the case of the Government of the Northwest Territories, two Ministers show up to a meeting with Regular Members and tell us they lent $34 million and don’t have once ounce of information with them on two consecutive occasions. To me, that is wrong. That is why this is drawing so much fire from across the Territory, not just here in Yellowknife, but all across the Territory. I would like to begin by asking the chair of FMB, the Minister of Finance, if FMB makes the final decision on lending money from the Opportunities Fund, then what utility do the senior bureaucrats who form the society have?MR. SPEAKER: Thank you, Mr. Ramsay. Honourable Minister of Finance, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: Thank you, Mr. Speaker. The Opportunities Fund is under the oversight of the Minister of ITI, but this fund was

structured very specifically back in 2003 in its passive form. The criteria set, the government made a decision to put deputies on there when we were approached with this unsolicited proposal and given the economic circumstance. At that point FMB decided to play an active role. In this case, we made the decisions right away, the committee and the appropriate departments did a lot of the groundwork in conjunction with the consultants that were brought in, but the decisions were made by the Financial Management Board in this case. Thank you.MR. RAMSAY: The Opportunities Fund itself is a substantial amount of money, in the neighbourhood initially of $128 million. A decision like that by Cabinet to go from a passive investment vehicle to something which is very high risk, I think that’s a decision and a question that should have been asked of all Members of this House. There is a number of Members on this side of the House that have some good ideas about how to stimulate our own northern economy and perhaps even borrowing some of the money ourselves and looking at our own stimulus package. You know, we never had the chance, and like I said, the Minister showed up, and the reason I am asking the Minister of Finance this is because FMB made the decision, even though the Minister of ITI --and ITI oversees the Opportunities Fund; the decision was made by FMB, which is chaired by the Finance Minister. I would like to ask the Minister of Finance, did the society and the senior officials supply FMBS with a recommendation to pursue this risky investment and where is that recommendation, Mr. Speaker? Thank you. HON. MICHAEL MILTENBERGER: There was extensive work done. The due diligence part was done through FMB -- FMBS sorry -- and the Department of Finance. There is an extensive file, there is some due diligence that we shared, there was ongoing negotiations, there is a file. We recognize that there is risk. We didn’t think it was a high enough risk to preclude us, given the economic circumstances, from not making the loan. We looked at the jobs, the economy, the value-added as well as the $13 million in interest payments. So, yes, there is a file, there was recommendations brought in, the assessment of the due diligence, the level of risk, all the revenue projections, the health of Discovery Air, and the final decision was made by FMB. MR. RAMSAY: I would like to ask the Minister of Finance, the due diligence, as I have been told, was done by the company itself. I am not sure to what level FMB did its own due diligence on this, but the people I have talked to -- and myself, I am not an accountant, but looking at the financial statements, unaudited financial statements of that company dated October 31st of last year, they are $141 million in debt and I don’t know how their

cashflow projections are going to enable them to pay any money back at the end of four years. They are in an awful lot of trouble, Mr. Speaker. Again, I want to find out from the Finance Minister, it sounds like this was a political decision and to heck with the evidence, and maybe the next phone call I will be making here is to the Auditor General of Canada. MR. SPEAKER: Thank you, Mr. Ramsay. I didn’t hear a question there. The honourable Member for Frame Lake, Ms. Bisaro.

QUESTION 63-16(3):GNWT EMPLOYEE INPUT ON GOVERNMENT

EXPENDITURES AND INEFFICIENCIESMS. BISARO: My questions are directed to the Minister of Finance. I would like to go back to my Member’s statement in October of 2008 when I said, “We need a committee of GNWT employees, composed of only front-line and middle management staff who represent all departments and agencies, a committee which reports directly to MLAs of the Finance Minister, and the job of this committee would be to provide suggestions to reduce our costs.” I would like to ask the Minister, at this point, is this committee in place, and if not, why not? Thank you.MR. SPEAKER: Thank you, Ms. Bisaro. The honourable Minister of Finance, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: Thank you, Mr. Speaker. No, it is not. We have made a commitment to work with all of the other stakeholders through the round table that I have set up and we have indicated that we want to put other issues on the table. I have indicated today, as well, of interest in pursuing the process to take a broad look at the way we do our taxes and, as well, we will work through the departments for feedback and recommendations. But there is no government-wide employee committee that I am aware of. Thank you.MS. BISARO: Thanks to the Finance Minister for that clear answer. It is, unfortunately, not the answer that I was hoping that I would hear. I would like to explain to the Minister and perhaps to anyone who is listening, and to you, Mr. Speaker, there are employees who certainly have valuable ideas that would work in the front lines. They experience all kinds of situations where they can see that expenses can be reduced, where waste can be terminated. I would like to ask the Minister if he does not agree with those sentiments. Does he not feel that our front-line staff have the opportunity to provide valuable suggestions to reduce our expenses and keep our costs down? HON. MICHAEL MILTENBERGER: The Member is asking for my opinion and I would be happy to provide that. There is a valuable role for employees. As we forge ahead with this budget into

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the rough waters that are there economically, and the darkening skies economically, I will pursue with thinking outside the box -- as has been recommended by Mr. Abernethy -- and we can revisit those issues. There used to be a committee in the days of old and the value of that could be reviewed. So it is not that we don’t think it is valuable, it is just that at this point it has not reached an agenda. Thank you.MS. BISARO: Thanks again to the Finance Minister. I struggle with the answer that yes, it is valuable, but no, we are not going there. I would like to remind the Minister that given a very small piece of rope, I think our employees would provide us with a very large gain. So, no, they wouldn’t hang themselves. But I would like to know from the Minister when we might see that our employees might be given the opportunity, even if they form this staff committee by themselves or if they are certainly given licence to go ahead and make suggestions, when might we see a concrete date for that to happen. Thank you.HON. MICHAEL MILTENBERGER: Mr. Speaker, the Minister of ENR has been supportive in the department of setting up green teams. Over in the office building where they work there is a very dedicated, interested group of people who are currently working on all the opportunities that are available in terms of savings with paper, with copiers, with machines being left on, with recycling. I’m fully supportive of that and I’m sure the other Minister is. Maybe it’s a situation of having departments working with the Members to encourage that type of formation. They brown bag it at lunch. I think sometimes we help cover their lunch. I’ve met with them on a couple of occasions. I think it’s a very valuable resource. It does exist. As keeping with Mr. Bromley’s suggestion of keeping it small, keeping it local, maybe that’s the approach we should be considering. Thank you.MR. SPEAKER: Thank you, Mr. Miltenberger. Final supplementary, Ms. Bisaro. MS. BISARO: Thank you, Mr. Speaker. I commend the Minister of ENR for setting in place this green team and that particular initiative. My request is going beyond that. We need a committee that goes across all departments, that is representing the front line, the front end of our staff. I would like to ask the Minister… Sorry. I’ll go back again. I would like to say to the Minister that, yes, other departments have to follow the lead of ENR, but I think that in addition we need to have a committee that is broadly based across all departments. I would ask him again what date that might be initiated. Thank you.HON. MICHAEL MILTENBERGER: Mr. Speaker, I will commit to bringing the issue to the FMB or the Cabinet, whatever’s the most appropriate for the

initial discussions. I will commit to report back to the Member before the end of this session. Thank you.MR. SPEAKER: Thank you, Mr. Miltenberger. The honourable Member for Nahendeh, Mr. Menicoche.

QUESTION 64-16(3):UPDATES TO DEH CHO REGION

HIGHWAY INFRASTRUCTUREMR. MENICOCHE: Mr. Speaker, I just want to follow up on my Member’s statement with regard to the Dehcho Connection and Highway No. 1 and No. 7 to the Minister of Transportation. Many documents have been brought towards the work with the federal government. We’ve got the Connecting Canada document that went to the federal ministry, as well as the Dehcho Connection as part of the National Highway Strategy. I would like to ask the Minister what has been done to work with the federal transportation to find us some resources to build up Highway No. 1 and No. 7. Mahsi cho.MR. SPEAKER: Thank you, Mr. Menicoche. The honourable Minister of Transportation, Mr. Michael McLeod.HON. MICHAEL MCLEOD: Mr. Speaker, I believe the Deh Cho connection was spearheaded by ITI and we’re certainly trying to do our part to promote and help out with this program that’s been in place for some time. The issue of highways across the Territories has been on the forefront for many of our Members as our roads continue to hit their mid-life retrofit needs. Highway No. 7 is no different. Highway No. 7. In fact, it might be a highway that certainly needs more attention. It was built many years ago and it requires an upgrade and new construction, as we all know now. Last summer we certainly had a lot of problems with excess weather and drainage problems that led to having additional investment in that area. We have brought this forward. We have included it in our plans for the federal government and we have targeted some dollars to improve the structure of the road and also to look at some of the problem areas. Thank you.MR. MENICOCHE: I know that in the federal budget when they mentioned the highway systems in the Northwest Territories, of course, they mentioned the Yellowknife bypass road, but to the discern of my constituents I think our highway system should have been mentioned. I’d just like to question the strategy that the Minister had with the federal government in that regard. Just saying there, Mr. Speaker. I’d like to know how much work has been done in this budget towards speaking with… Sorry. The resources for highways No. 1 and No. 7. In particular, I’ve been always pressing for working towards the chipseal of highways No. 1 and No. 7. Have they been looking at that in this budget? Have

we had any discussions in the capital planning process, Mr. Speaker? Thank you.HON. MICHAEL MCLEOD: Mr. Speaker, I’m struggling to answer the Member’s questions. He’s asking questions about the acceleration of the Building Canada Plan where we do have a number of projects, and he’s asking me to disclose what has been discussed with the federal government. That has not come before the House. Our budget has just been introduced today and has not been on the floor of this House, so I can’t really start discussing issues and projects that are in the budget at this point. I’d certainly be glad, to when we come to the portion of the budget presentation that involves Transportation. I can assure the Member that we’ve had certainly a lot of discussion with the federal government on highways; Highway No. 7. We’ve also had a lot of discussion internally looking at the different issues that are challenging Highway No. 7 and highways across the North. MR. MENICOCHE: Thanks to the Minister for detailing this. He’s kind of limited in all the answers. I just, once again, want to reiterate the concern of Nahendeh residents that working towards chipseal of the Deh Cho connection is a priority. First and foremost, I’d like to see that on the long-term capital plan, Mr. Speaker, if the Minister can address that. Thank you.HON. MICHAEL MCLEOD: Mr. Speaker, our first priority in the reconstruction of most of our highways is to strengthen and reconstruct the road base; have that done on our roads and then we can start focusing on the secondary measures such as dust suppressants, including chipseal. Thank you.MR. SPEAKER: Thank you, Mr. McLeod. Final supplementary, Mr. Menicoche.MR. MENICOCHE: I’m glad he answered it that way, because that’s a goal. One of my goals in this term is to actually see the chipsealing program on the long-term capital plan. I’d like to ask the Minister again if he’ll work towards that with me. Thank you.HON. MICHAEL MCLEOD: Mr. Speaker, we’ve heard the Member loud and clear on many occasions now speaking about Highway No. 7 and Highway No. 1 and other transportation infrastructure in his riding. We’d be glad to work with him and it’s our goal to have our roads strengthened and reconstructed and at some point have chipseal applied or other dust suppression measures. MR. SPEAKER: Thank you, Mr. McLeod. The honourable Member for Mackenzie Delta, Mr. Krutko.


TO DISCOVERY AIR INC.MR. KRUTKO: Mr. Speaker, my questions are directed to the Minister of Finance with regard to my statement earlier about the loan to Discovery Air to the tune of $34 million. The Minister talks about due diligence and when we review the report it’s surprising to me that there was no market disruption review done in regard to this particular loan. There are other lending agencies out there who had loans in place, they had a major stake by way of shared equity in this company, but they weren’t even contacted in regard to this government’s $34 million loan which undermines their ability to basically provide that service in the northern economy. Yet, Mr. Speaker, the loan that the Gwich’in presented at $10 million was at 9.25 percent but the government loaned some $34 million at 10 percent, which is higher than what’s presently in place now. I find that kind of odd. I’d like to ask the Minister, during the evaluation of the loan request submitted by Discovery Air, did the government officials or Deloitte Touche provide information about the possible ownership, management options and what could be an exchange between the Gwich’in Development Corporation or other private investors such as lending agencies to take ownership of that loan? MR. SPEAKER: Thank you, Mr. Krutko. The honourable Minister of Finance, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: Mr. Speaker, Discovery Air came to us with an unsolicited proposal. We dealt with the company that came to us. We did not, nor do I think it was appropriate for us to try to sort out whatever things may have been going on outside of our purview in terms of other interests, other financing. We were aware the general credit market was very, very tight, that there was time constraints. The level of detail that the Member is asking about the Gwich’in and their plans and all the other possible players were not something that came to our table. Thank you.MR. KRUTKO: Mr. Speaker, it’s pretty obvious if he didn’t do a market disruption analysis of this loan, I guess you wouldn’t have got that information. But don’t you think by due diligence that that should have been done and why was it not done? HON. MICHAEL MILTENBERGER: Mr. Speaker, this was a loan for an existing financing arrangement. There was no expansion to the firm. It was not considered anything but that kind of loan agreement and didn’t require a market disruption. Thank you.MR. KRUTKO: Mr. Speaker, again, as I mentioned, there was an offer made by the Gwich’in Development Corporation and other

1998


lending agencies to the board of directors of Discovery Air based on an agreeable price and a percentage by way of the loan that they were willing to offer. They met with the board of directors before this government made the offer for $34 million. Was that ever considered and the question asked have you approached other lending institutions to see if they are willing to lend you the money versus you coming to the government for a $34 million loan?HON. MICHAEL MILTENBERGER: Mr. Speaker, Discovery came to us with a request for $34 million. I understand, from what the Member is telling us, the Gwich’in offered 10. Discovery Air made a choice and they came to us with their proposal which we then considered. Thank you. MR. SPEAKER: Thank you, Mr. Miltenberger. Final supplementary, Mr. Krutko.MR. KRUTKO: Thank you. I think the Minister was misled or something as the Gwich’in had already loaned Discovery Air $10 million at 9.25 percent. They were willing to lend them more to get an increased share in regard to that company. I’d like to ask the Minister again, is this government going to follow some rules and procedures that are in place for other loans where you have to go to other lending agencies, get a letter basically showing that you were not able to get a loan from a bank or another institution before you come to the Government of the Northwest Territories so that rules and procedures can be followed with any loans that this government gives out in regard to this Immigration Fund?HON. MICHAEL MILTENBERGER: Mr. Speaker, we followed the due diligence process. We did not think this was a market disruption. We did not query what other loans may have been out there. My understanding was that the $10 million loan had expired. We accepted and dealt with the company as they came to us with their request for $34 million, which we saw not only as a loan but as an investment with interest accrued and all the value-added at a time of extreme economic turmoil in the country, and in our own jurisdiction, a company that has hundreds of jobs, it has business relationships with other firms and aboriginal businesses up and down the valley. On that basis we reviewed this, did the appropriate due diligence and made the decisions. Thank you.MR. SPEAKER: Thank you, Mr. Miltenberger. The honourable Member for Tu Nedhe, Mr. Beaulieu.

QUESTION 66-16(3):INFRASTRUCTURE INVESTMENTS

MR. BEAULIEU: Mr. Speaker, in my Member’s statement I spoke about infrastructure spending by the government to stimulate the economy. I’d like to ask the Minister responsible for the various infrastructure departments, the Minister responsible

for the Housing Corporation, Public Works, and Transportation. Mr. Speaker, does the Minister have an actual plan in place that will ensure that his departments spend all of their infrastructure money that they have in the budgets? Thank you.MR. SPEAKER: Thank you, Mr. Beaulieu. The honourable Minister responsible for the Northwest Territories Housing Corporation, Mr. Michael McLeod.HON. MICHAEL MCLEOD: Mr. Speaker, that’s a, that’s a very good question. ---LaughterMr. Speaker, it’s always our intent and we always plan to spend all the dollars and proceed with all our projects that we bring forward as part of our capital budget. Historically, we carried over sometimes up to one-third and possibly more. Over the last while we have done some significant changes to the capital process where the timing of the budget approvals is done in the fall versus the winter months. We’ve changed the system so that we have better due diligence on the projects. We are now in the position where we can roll our projects out, design them and develop the contracts over the winter months and we expect that’s going to change to carry-overs. We expect better results, less carry-over. The short answer to the Member’s question is yes, we plan to spend all our money, however, we know the difficulties with some of the issues and we probably will end up with some carry-over, although less than one-third. Thank you. MR. BEAULIEU: Mr. Speaker, specific to highways, housing work and schools, some of the stuff that’s been in the plan previously. Does the Minister have a plan? What is the significant difference between this plan and all the other year’s plans that haven’t worked? Thank you.HON. MICHAEL MCLEOD: The difference is timing and a longer planning period and the ability to have more discussion and have more people on the ground, whether it’s contracted or our own forces. It will allow us to get the contracts out earlier. It will allow us to have more attention paid and more diligence at the project level. We expect that will help us deliver. Mr. Speaker, we are starting to see some of the dollars flying from the federal government, especially in the area of housing, where we will have to spend all the money. It’s a use it or lose it agreement so we expect to do that in the housing front also. Thank you.MR. BEAULIEU: Mr. Speaker, would the Minister commit to reporting progress from his various departments on the infrastructure spending to the House on a regular basis so that we can keep our constituents advised and our northern businesses and local businesses advised if these expenditures

are not going to occur, so that they too can plan for these activities? Thank you.HON. MICHAEL MCLEOD: Mr. Speaker, that’s going to be a very challenging commitment to make. We have, since this 16th Assembly came about ,we have, as a government, been investing a fairly significant amount in infrastructure. We’re close to the $300 million mark in the previous budget and we are looking at it again this time around. When you start adding all the different infrastructure initiatives in all the different departments including housing, some of the new housing trust money, comparing it to what we used to have, it’s probably triple. In 2001 I believe it was around $100 million; now we’re three times that. Having to deliver on a timely basis is going to require all our people on the ground all the time to ensure that we shorten up the carry-overs. We have many challenges. I would have to consider that. I’d certainly let the Members know through committee whether we can accomplish that. It’s going to be difficult to have all of the departments coordinated so we can present progress reports. We may be able to deal with it on a Member-by-Member basis, but I’d have to investigate to see if we have the resources to do that. Thank you.MR. SPEAKER: Thank you, Mr. McLeod. Final supplementary, Mr. Beaulieu.MR. BEAULIEU: Mr. Speaker, I can appreciate that reporting progress on all of that infrastructure spending would be difficult. Can the Minister then advise me, if he is able to advise this House or our committee, if the department is not able to carry out the planned infrastructure spending? Thank you.HON. MICHAEL MCLEOD: I think we already have that mechanism in place as part of our process. If there’s a project that’s not going to go forward or has been dropped from our budget, and there is a requirement through our Financial Administration Act to notify the Member and notify the appropriate committee. So I think we already have that mechanism in place. If that’s not enough, then I’d certainly have to have that discussion with the Member to see what he’s looking for. Thank you.MR. SPEAKER: Thank you, Mr. McLeod. The honourable Member for Sahtu, Mr. Yakeleya.


TO DISCOVERY AIR INC.MR. YAKELEYA: Mr. Speaker, my questions are to the Minister of Finance. The loan that one of the Members was mentioning is with Discovery Air. With our small government and with so many demands that we’ve heard in the last couple of years, especially in the last couple of months, especially in our small communities, why are we

willing to risk $34 million on a high-risk loan to a company which indications show through financial reports was close to bankruptcy? Why did we do this?MR. SPEAKER: Thank you, Mr. Yakeleya. Honourable Minister of Finance, Mr. Miltenberger.HON. MICHAEL MILTENBERGER: Thank you, Mr. Speaker. This fund is a federal Immigrant Investor Fund. We have an agreement with the federal government. We have agreed to back that guarantee, all the money in that fund. So any money that we lend, we have to be prepared to repay. This is not a grant fund. This is not a low-risk, low-value fund. We’re accountable for every cent. So we have the opportunity here. Due diligence indicated to us that it was, in fact, a tolerable risk that we’re prepared to take, given these tight economic times. The value added that it brought to the Territory is a good investment: $13 million in interest, or so; the jobs and the families and the headquarters moving north. The fund still exists. It’s for applications over $2 million. Below $2 million we have the BDIC fund, which is there for the specific purposes of working for small businesses in communities. Thank you. MR. YAKELEYA: Just on the due diligence that was done, due diligence was paid by Discovery Air. This is a loan that I think we should discuss with the Government of the Northwest Territories. This company is located in London, Ontario. The acquisition of loan is to pay out in Quebec. The Calgary helicopter base is closed.My question to the Minister is, what are we really getting out of this high-risk move in terms of people in the Northwest Territories that see this $34 million bailout, investment, loan, whatever we call it? What are we really getting out of this high-risk move for the people in the Northwest Territories in our small communities?HON. MICHAEL MILTENBERGER: Mr. Speaker, the due diligence was done by independent third parties that the Government of the Northwest Territories picked. The bill was sent as part of the deal to Discovery Air to pick up that tab, that they were hired by us and work for us. That was part of the arrangement.What we get out of this, Mr. Speaker, in a very tight economic situation where we’ve had slowdowns at the mines, layoffs at Laurelton Diamond polishers. What we have is assistance and a good business investment to a business that has a strong name and presence and employs hundreds of people, that has business arrangements up and down the valley, that’s going to bring some jobs to the North -- value-added in those ways -- a helicopter school, which runs during the summer months as well. When we looked at all the pieces in the context that

2000


we currently are in, the decision was made that this was a good investment. Thank you.MR. YAKELEYA: Certainly, I can argue for a lot of good business in the Northwest Territories that could certainly be welcomed to see this type of Opportunities Fund to come to their availability to talk about jobs, employment. These are home-grown, northern aboriginal people in our regions that would certainly welcome this type of opportunity. My question is, are there any other proposals in play for accessing this Opportunities Fund? If so, what processes are involved that require Regular Members on this side to have some of their consultation, decision, input in terms of this new policy? Certainly, this didn’t happen with Discovery Air and that’s why this deal doesn’t look very good of what they’re hearing in the public.HON. MICHAEL MILTENBERGER: There are some proposals that I understand are there. I’m not aware of any firm one currently being considered at this point. The intention, as we have moved from the passive to an active fund, is to make sure that the policies and procedures that used to guide that passive approach are updated to reflect a more active role we want to take, and the fact that the money that’s there, how do we make sure that it’s best put to use in a secure way that’s going to make sure that we can repay what the federal government is going to give us. Thank you. MR. SPEAKER: Thank you, Mr. Miltenberger. Final supplementary, Mr. Yakeleya.MR. YAKELEYA: Thank you, Mr. Speaker. Part of the requirements, I understand that a society has to be set up to manage and administrate the funds here. My understanding from ITI, the Honourable Robert McLeod, was in terms of the revisions of a policy that would look at...Would the policy look at forming a society as part of the directors? Would you see directors being involved in the input? Can we see some regional input in terms of the society?HON. MICHAEL MILTENBERGER: Mr. Speaker, the funds that previously existed -- Aurora I and II, I understand -- had a more arm’s-length board structure. In this case, given the passive nature of the fund, we will take a look at the structure as well as the move of adjusting the policies that are there for the passive approach, bringing them into line with the reactive approach. The issue of the board structure has not been finally dealt with. We do have the current structure at this point to keep us going in the interim. Thank you.MR. SPEAKER: Thank you, Mr. Miltenberger. The honourable Member for Kam Lake, Mr. Ramsay.

QUESTION 68-16(3): OPPORTUNITIES FUND LOAN

TO DISCOVERY AIR INC.MR. RAMSAY: I have some questions for the Minister of Industry, Tourism and Investment, Minister McLeod, and it gets back again to the Opportunities Fund. I want to stand up here today and say that I’m not trying to beat up Discovery Air. They provide valuable service to our residents here. They contribute a great deal to our economy. It’s not Discovery Air that I have an issue with, Mr. Speaker, it’s the process that allowed the government to lend money without any oversight or accountability. Like I said earlier, I’d be phoning the Auditor General of Canada to look after that aspect of it.The question I have for the Minister of ITI is, I do believe -- and it’s easy to ask questions. We want to work with you. We want to come up with creative ways so we can stimulate the northern economy. I’d like to ask the Minister what type of ways will the Minister of ITI engage Regular Members in a discussion on how we can stimulate the local economy here in the Northwest Territories. MR. SPEAKER: Thank you, Mr. Ramsay. Honourable Minister of Industry, Tourism and Investment, Mr. Bob McLeod.HON. BOB MCLEOD: Thank you, Mr. Speaker. We would like to work very closely with the committee as well. I’ve written to the chair of the standing committee and advised her of our decision on the most recent proposal, and indicated to her that we will be working with the committee and whatever other parties that we feel should be consulted with to develop investment policies and revised procedures. Thank you.MR. RAMSAY: Mr. Speaker, again it gets tiresome asking questions, asking questions. We want to be fully engaged with the Minister and with the government so that we can move some things forward here. This Opportunities Fund, the more I look at it, an opportunity here for us as a government to stimulate our economy would be to borrow some of this money ourselves and invest it in businesses here in the Northwest Territories, and get to work on stimulating our economy. Instead, decisions are being made without our input that we have to question. You know, we have to stand up here and question. It’s that adversarial and antagonistic thing that I don’t...You know, I’m starting to get really tired of that. I want to work with these guys. Will they work with us? Thank you. HON. BOB MCLEOD: Certainly, we’re very pleased and we want to continue to work with the committees. One of the things that we’ve looked at is investing the money in the government business programs. This is another area that we can look at, recognizing that the loans programs that we have

with the government, there’s a loss ratio of about 14 to 20 percent loss, which we have to come to this Assembly to write off, so we take that into consideration.We’d be very pleased to continue to work with the standing committees. We also have the Ministerial Advisory Panel on the Economy that we will be consulting with on all of our business programs and on how we deal with the economy.MR. RAMSAY: I’d like to ask the Minister if it would be possible for the Government of the Northwest Territories to access a portion of that Opportunities Fund to set up a program that would stimulate local business here in the Northwest Territories. Is that a possibility and if it is, can we get to work on that immediately?Other jurisdictions in this country are working diligently on propping up their economies and doing things in hard times that make some sense, and we should be doing the same here. Right now, I don’t think we’re doing enough and that might be an opportunity to get something done. Thank you.HON. BOB MCLEOD: The loan that we’re talking about is a northern company that we’ve invested in. We’re very pleased to and what we are trying to do is use that fund for that. We would be very pleased to work with the committee to do exactly that.I should point out that the Opportunities Fund is funded through the Immigrant Investment Program and the $400,000 that was invested by the immigrants has to be repaid within five years. The type of investments that we think would work best are companies that can pay a fairly high rate of interest, that can pay it all back within a five-year period. Also, the federal government charges 7 percent on the money. They take it right off the top. MR. SPEAKER: Thank you, Mr. McLeod. Final supplementary, Mr. Ramsay.MR. RAMSAY: Thank you, Mr. Speaker. The process right now...I mean, really there isn’t a process, but what there is is not fair and it’s not transparent. What I’m saying is we need to come up with something that’s fair to everybody in the Northwest Territories. Like I said, it’s nothing against Discovery Air. I know they’re a good company. I know they’re going to do everything they can to pay this off at the end of four years. The fact remains, though, that we have to do more for other businesses and in this process that’s there, it just isn’t fair. That’s what people are saying and that’s what people want to have addressed. So I’d like to ask the Minister again, while we haven’t had a discussion on what sectors of our economy may be even more important than others, can we have that discussion? If we have to pay a bit of a premium on the interest rates to get some stimulus package out there for our residents, maybe that’s a discussion that we should have, but we should

have it together, Mr. Speaker, not just Cabinet making decisions like this. It should all be all of us making these decisions together. Thank you. HON. BOB MCLEOD: We want to work with the standing committees and we also want to get out very quickly so we can find a way to come up with a revised investment policy that’s transparent, that meets everybody’s requirements, because we’d like to get this money out there and working. So we’ll get out there quickly to get it to the stage whereby we can get the money working. We definitely want to work with the Members. MR. SPEAKER: Thank you, Mr. McLeod. The honourable Member for Weledeh, Mr. Bromley.

QUESTION 69-16(3):HOUSING RETROFITS FUNDING

TO ACHIEVE ENERGY EFFICIENCIESMR. BROMLEY: My question is for the Minister of Housing. As I mentioned in my statement, energy costs are down right now. We have an opportunity to move on this, and move in ways that keep energy costs down in the long run for us. One, of course, is the Housing Program, a cost-shared program. Housing has committed to doing an evaluation of a sample of houses to determine requirements to bring them up to meet the EnerGuide for Houses 80 standard. Given the recognition of a need for an economic stimulus and the availability of federal dollars not matching funds, will dollars be accelerated and the program be accelerated so those assessments, which were planned over a year, I believe, could be done very quickly and we can get on to actually reducing energy requirements through those renovations? Thank you.MR. SPEAKER: Thank you, Mr. Bromley. Honourable Minister responsible for the Housing Corporation, Mr. Michael McLeod.HON. MICHAEL MCLEOD: Thank you, Mr. Speaker. The new housing trust dollars was announced a short time ago and we’re still working with our staff to come up with plans, and we’ll be drafting a letter that we’ll be submitting to the chair to request some time to make a presentation before we go out in the public as what we’re going to be doing. It’s expected that our dollars would be invested in the areas of homeownership in our public housing stock, and repairs and upgrades for energy efficiency. Thank you. MR. BROMLEY: Again I repeat, the opportunity is there. There is also a Green Infrastructure Program that this program could be applying aggressively on. Is the Minister aggressively going after these dollars and looking at this program to recognize this opportunity and act on it to bring these houses up in a much more accelerated way through the

2002


economic stimulus packages that we have before us?HON. MICHAEL MCLEOD: I like to think that I was actively pursuing dollars, as a result of this investment in our Territory. We’ve also had some success in a Home Repair Program that was announced recently. We’re calculating what our share would be, and I think there’s an additional three and a half million dollars. Yes, we are pursuing any additional dollars out there. We’ve been to Ottawa. The Premier has also been travelling to make that pitch to the people in the federal government, to help us with the situation in the area of housing and the high cost of living in the Territories. Thank you.MR. BROMLEY: All kudos to the Minister. He has been highly successful, and I recognize that. But today our public demands much more than just throwing dollars at issues. They want to know they’re getting good value for dollars. Where is the green infrastructure? Where is the cutting down our future expenses? What is this Minister doing to take those dollars and turn them into double the value through these energy efficiency programs?We had a small window of opportunity before our dollar value, oil value goes through the roof for our expenses. When are we going to take advantage of this window on the energy efficiency with public housing? HON. MICHAEL MCLEOD: Again, I’d like to have further detailed discussion through the committee process. But we intend to look at our current housing stock. We have 2,400 units and a lot of them are coming to the point where they need a midlife retrofit, they need to be looked at in terms of energy efficiency, and that’s what we’ll be doing. We’ll also be working with the homeowners in the different communities to provide programs that will help and assist upgrade and look at energy efficiency as part of the requirements. Of course, we’ll be looking at investing in Homeownership Programs.We certainly have many areas that need investment and we need to have that discussion with committee. There is probably a need for another 2,300, 2,400 units across the Territories. That probably is going to be a real challenge at any point to build, because these dollars are not coming with O and M dollars and the focus has to be what we have currently in our public housing stock, with energy efficiency in mind. Thank you. MR. SPEAKER: Thank you, Mr. McLeod. Final supplementary, Mr. Bromley.MR. BROMLEY: Thank you, Mr. Speaker, and thanks for those comments from the Minister. I appreciate the opportunity to discuss these things, and I’d like to think that the Minister has made a commitment to discussing all the opportunities.

Certainly, if we do deal with operation and maintenance costs in the short term, we’re going to have dollars for housing in the long term. We can no longer do business as usual. So can I assume that the Minister is committed to having discussions on ways to turn those dollars towards energy efficiency in ways that will give us many more returns than just building houses and business as usual? Thank you very much.HON. MICHAEL MCLEOD: Absolutely. In the area of public housing, we really don’t have a lot of choice. We either have to look at lowering the cost of operating these units through energy efficiency or through alternate fuels or things of that nature or we really have to consider reducing our stock or raising our rents. Those are our options in front of us. The federal government has been reducing the investment and the support for operation and maintenance for public housing for many years. This year it’s three quarters of a million and it just continues to the point where in 2038 we will have no investment for operation and maintenance of public housing. So it is something we are looking at very seriously and any way we can save money or any way we can introduce projects or programs that will help us save so we can reinvest in the O and M, it would be beneficial for us. We are interested in all areas. Thank you.MR. SPEAKER: Thank you, Mr. McLeod. The time for question period has expired. Item 10, written questions. Item 11, returns to written questions. Item 12, replies to opening address. Mrs. Groenewegen.

Replies to Opening Address

MRS. GROENEWEGEN’S REPLYMRS. GROENEWEGEN: Thank you, Mr. Speaker. The Members have the opportunity to speak once per session to any topic for as long as they wish or on any number of topics. As a senior Member of this Assembly, I am taking this opportunity today to speak about the state of the 16th Legislative Assembly. I do this with the hope to bring to light information and answers to questions that I truly believe are on the minds of many Northerners. I am not sure that our residents who are watching the performance of this government would be able to fully articulate what the problems are. But through communications with constituents, through the editorials, letters to the editors in our newspapers, media feedback, it is clear that there is much angst about the direction or lack of direction in this government. I find it pretty unbelievable myself, and I have seen a lot in the past 13 years. Much of what the public hears is portrayed through the media. I appreciate the role that media plays in the public and the democratic process of government, but much more

goes on behind the scenes than most people ever want to discuss. Governments evolve with heated eyes, in the early days of the federally appointed Members to our fully-elected Legislature, the reduction from 24 Members, including Nunavut, to the 14 post-division, to the 19 post-Friends of Democracy court challenge. When I came into the Legislative Assembly as a working Member in 1995, I saw things that I thought were wrong and I did what I thought was natural, try to be the voice of people who expected accountable, transparent, honest and responsible government leadership. Representing and capturing the sentiment of public concern and opinion is just as important today. It is perhaps easier than people would expect for Members to lose focus on why we are here. It is not about us, it is about the people we represent. It is not about power, but it is about the trust that people place in us to keep their well-being at the core of all of our actions and decisions. We can easily slip into thinking that we know best, but while leadership is about making decisions, it cannot be done in the absence of constantly going back to the people who put us here, placing their confidence in us. It is a very serious trust that goes to the heart of our time honoured traditions of democracy. To this issue of the 16th Legislative Assembly, I offer my observations from my own vantage point, but hopefully these observations will resonate to the people in the public who are wondering how this government lost its way.Every one of the 19 Members of this Assembly were elected by their constituents and everyone must be willing to serve in whatever capacity contributes to a meaningful and effective leadership to our Territory. When we gathered here for the first time we chose from amongst ourselves those we believed to have the abilities, skills, motivation and experience to bring leadership in various areas of responsibility. We do not delegate those responsibilities unconditionally. We do so, with the confidence, that our voices, as the voices of our constituents, will be respectfully engaged. That is what capable and responsible leadership, especially in our consensus style of government, strives to do: engaging, hearing the voices of all Members, and harnessing the various and unique perspectives of Members from diverse regions and backgrounds. When this attention to the role of effective leadership is lost, the whole institution suffers, but, most importantly, the confidence of the electorate is evaded, balance is lost and things begin to deteriorate. During good times of economic stability and opportunity, access to employment, quality health care and education opportunities, there is a sense of purpose and progress and often there is

diminished focus on the workings of government. But when there are uncertain times as experienced recently in unprecedented proportion, people become much more acutely aware of the leadership and look to that leadership to bring sound judgment and stewardship to those difficult challenges. To that end, it is time to take stock of where the 16 th

Assembly has been and where it should be placing its focus and energies. At the risk of sounding negative, I first need to articulate the events that have led me to lose confidence in the leadership of this government. When we elected our Executive Council I had high hopes for our four-year term in office. I supported Mr. Roland for Premier, as I told him I would, even before we were elected to the 16th Assembly, wherein his Premiership was contemplated during the 15th Assembly. I want to talk about those early days in my attempts to get answers to pretty straightforward questions. I asked about the Deh Cho Bridge. Under repeated and pointed questioning, the Premier, for the entire first sitting of our Legislature, failed to disclose that the contract for the bridge had been signed off three days before the October 31st election. Further questioning about the details of the Concession Agreement and our government’s liability to that point were met with vague responses. I thought the undertaking of the largest capital project in our Territory’s history required publically aired scrutiny, but Mr. Roland’s leadership on this issue sadly failed the test of openness and forthrightness. I started to wonder then if we had made a mistake. Today with the downturn of economic activity, I am very doubtful if the main forecasts that formed the basis of the business case of the Deh Cho Bridge will materialize in the near future, putting the financial responsibility for this piece of infrastructure, that few wanted or thought we needed, right into the lap of this government. Might I remind Members that it was $165 million? As is the usual practice, Members of the 16th

Assembly got together to develop a strategy to reflect the priorities we had so recently heard from our constituents. These priorities were detailed in our Strategic Plan: Northerners Working Together. Imagine our surprise when our albeit fiscally conservative newly-elected Premier started on the path of reductions and layoffs, that MLAs first heard of as word spread through the bureaucracy and onto the street. That is when Regular Members begged the Premier to be proactive in his communications and develop a strategy to explain the reasons for his assertion that we needed to reduce government spending by $135 million. A half-hearted resistant attempt was made at a press conference, but it was less than convincing. Repeatedly, the Premier told Members that communications is not his thing. It still is not his

2004


thing and it has caused us untold problems. Commitments to inform Members of potentially affected employees targeted in the layoff exercise went unfulfilled, leaving the Regular Members to find out that letters to potentially affected employees went out the day after session recessed, as we met constituents on the street who found it barely believable that we did not know about the specifics of their notifications. Strangely, the Premier himself didn’t seem to know what was going on, or the actions of his staff in the more senior positions. These kinds of breaches in communication led to several face-to-face recitings of our concerns and how they affected the meaningful role for input from Regular Members. After these talks we went away, hoping for the best, only later to find out that our concerns were either not heard, understood or taken seriously, we remained somewhat optimistic until the next failure to communicate; a pattern that emerged in very serious doubts about Mr. Roland’s capacity to lead this government. His demeanour was anything but inclusive. He was defensive and he seemed unable to accept any criticism, even of a constructive nature, passing off attempts to communicate frankly at other Members’ political ambitions. In other words, get in line, stay quiet or you will be tarred as only driven and motivated by personal political ambition. This creates a very dysfunctional working environment. Mr. Roland seemed incapable of taking responsibility for any of these failures and the only excuse he could offer for his shortcomings was to only try to angrily beat down and counter any criticism. His utter disgust as Regular Members stood together to affect changes to the ’08-09 budget was physically obvious and not becoming of a confident and professional leader. The inability to directly and clearly answer questions with answers was, to say the least, tiresome. Case in point, the questions about the Ministerial Benefits Policy which will be debated hopefully later in this session, which he conveniently laid at the feet of the previous Assembly, seemingly forgetting that he sat at the Cabinet table as the Finance Minister in that government. Of course, now we have a better understanding why he was so distracted and inattentive, failing to provide leadership to his own Cabinet and staff as it became evident that the right hand didn’t know what the left hand was doing. Case in point is our government’s response to a very important report undertaken by the federal government called the McCrank Report. It would appear that after repeated requests to the Premier’s office for a report on the status of our government’s response the Premier’s office was unaware when, in fact, another Minister had responded on behalf of our government weeks earlier.

That is the kind of dysfunctional leadership that Regular Members have to deal with everyday in this government. I don’t imagine it’s very easy for Cabinet Ministers to operate under these circumstances either. I don’t accept that as an excuse, however, for the absolute mishandling of the consultation and communication surrounding the proposed changes to the supplementary health benefits. I was put on the spot in a chamber of commerce meeting before Christmas, again caught completely unaware of this initiative as a Regular Member of this government. The unbelievable, unnecessary stress this has caused is an absolute affront to the citizens in our society most deserving of our care and attention, those families caring for members with chronic and often serious conditions and seniors on fixed incomes in a time of escalating costs of living. Hopefully, due to the strident and organized efforts of the affected citizens, this situation will be addressed before it’s too late to convince people not to leave the North.Another completely mishandled initiative to date is the Refocusing Government Initiative and the board reform proposed by the Minister of Finance. I’ve heard the interviews where there’s no doubt that Mr. Miltenberger has taken a high and heavy-handed non-consultative or informative approach to reducing the number of boards in our Territory. Quote: “We have 70 boards and we’re going to have seven boards.” I want to say here today, Mr. Speaker: I don’t think so. The consolidation of health, education and housing boards in all regions: I don’t think so. The cookie-cutter approach, whether in the Beau-del or the South Slave: I don’t think so. Just when we think it can’t be any worse, if there is some consensus government we get a briefing on the Opportunities Fund. I will not speak to the applicant but to the process or lack of process laid out by our government. We had all heard of the Aurora Fund back in the late ‘90s, a fund derived from immigrants who invest in the country of their choice to which they immigrate. These funds were then distributed to Canadian jurisdictions and in the case of the Aurora Fund, managed then, arm’s length from government, by a society and a fund manager. This fund, at some point, became passive, merely collecting a modest interest until federal government insiders who knew of the fund shared the information with companies that they represented. So where is the policy that would have protected the good name of the applicants and the impartiality of the Finance and ITI Minister? Again, sloppy, arrogant leadership ownership that didn’t consult with Regular Members before decisions were made and didn’t create a transparent application-based process for loan approvals. The idea of moving the... Immigrant Investment Opportunities Fund from passive to active at this time of economic downturn is a good idea, but

loaning $130 million to a couple of companies creates a perception of conflict and in reality of a liability to the resources of this GNWT. Heaven forbid that any recipients would get into financial difficulty, but in spite of all due diligence, if this were to happen, be sure that our government would be left with the option of either taking drastic measures to act on security pledge or find the losses from within. How about diversifying the risk for the government and helping more than two northern companies. I told the ITI Minister that he would be a hero if he stood up in the House and announced to Northerners that our government was borrowing $100 million from that fund and making it available to business to get through some difficult times on an interest-free or minimal interest basis through some kind of a revolving fund. The process, like the backing of the Deh Cho Bridge Project, is flawed and in that, although legislation exists enabling the establishment of these process, Regular Members have no ability to be included or involved in decisions that potentially put our limited financial resources at some level of risk even if the loans are secured. The people of the Northwest Territories aren’t blind. They see what is going on with this government and I do thank many of them for the e-mails that have been coming in, both the positive and the negative. People are desperate for leadership and we have been trying to do our part on this side of the House in consensus government to provide that leadership. But, Mr. Speaker, sadly it has been one offence after another. There is fear on the part of some Members on this side of the House to stand up for fear of being branded by the people that we elected to Cabinet, the people that we elected branding us as politically ambitious. That’s a bit of a laugh for anyone who has any recollection of the scene that played out by two angry Regular Members who didn’t make it into the Kakfwi Cabinet. Their anger continues today. Our concerns are met with threats, intimidation and bullying. We should have a Premier with a proven track record of experience and the skills needed especially during this difficult time ahead. What are the Premier’s reasons for being in that office? When it came to light before Christmas that the Premier was having an affair with one of our clerks, he should have done the honourable thing then and resigned. With all due respect, I didn’t out the Premier, but if I had, I didn’t know that it was my duty as a Regular Member to keep secret from the public the Premier’s affair with our staff. Some would say that this is a time for stability, and I agree. But how can we have stability when so many Northerners and so many Members, including me, have lost confidence in this Cabinet? I don’t mean all this Cabinet, Mr. Speaker, but some kind of

review process has to take place in order to reconfirm our confidence in those Members that we support. Why hasn’t anyone involved in this Cabinet stepped forward to say that they know the difference between right and wrong? We have lowered the bar so far as to allow this Premier to stay in office. We are heading into rough waters in terms of our economy and we need leadership that will turn their full attention to the needs of our constituents and not be preoccupied with their own personal problems. There is still two and a half years left in the term of this government. How much longer can we carry on in this state of dysfunction? The Premier and the Finance Minister don’t get it. The real issues facing our constituents need to be met with leadership that is able to listen and able to respond to those needs. The cost of living is a major concern and there is no reason why this government can’t deliver affordable short-term assistance to mitigate these pressures. The large, long-term, multi-million-dollar mega projects are well and good, but people in all of our communities are looking to our government for much desired leadership that affects them where they live.I hope that this statement today helps the public to understand my frustration as a Member. These are only a few of the instances that I have listed that we have encountered in this first 16 months and although there are several hardworking and capable Ministers, the lack of leadership and the demeanor from the Premier and the Finance Minister has brought us to a very sad state of affairs. It’s a good time, I mean it is not a good time. It is a sad time for consensus government. I, for one, will not stand by and say nothing as certain Members bring contempt to the commitment we all make as honourable Members. You can sweep things under the carpet but it doesn’t take away the smell. It is my job, Mr. Speaker, to ask questions, even the hard questions, and I could just coast along here and not care about this government, but I do care. I care about the government, I care about the North and I care about the issues of the people that we serve. If I didn’t, I wouldn’t be here. I don’t want to see us lower the bar any further, Mr. Speaker, and I felt it was time for me today to clearly put on the record what my concerns are as a Member of this Assembly. MR. SPEAKER: Thank you, Mrs. Groenewegen. Item 13, replies to the budget address, day one of seven. Item 14, petitions. The honourable Member for Great Slave, Mr. Abernethy.

2006


Petitions

PETITION 3-16(3): CHANGES TO SENIORS’ HEALTH

BENEFITS PROGRAMMR. ABERNETHY: Mr. Speaker, I’d like to present a petition dealing with the matter of seniors’ health benefits. Mr. Speaker, the petition today contains 1,306 signatures of Yellowknife residents. Mr. Speaker, the petition is a request that the GNWT continue to support the current Extended Health Benefits Program, Specified Medical Conditions Program, Additional Drug Assistance Program and Indigent Health Benefits Program, and that the GNWT not restrict eligibility to income testing and not reduce benefits provided through the above programs in order to fund extension to the supplemental health benefits for other segments of the NWT society. MR. SPEAKER: Thank you, Mr. Abernethy. The honourable Member for Kam Lake, Mr. Ramsay.

PETITION 4-16(3): CHANGES TO SENIORS’ HEALTH

BENEFITS PROGRAMMR. RAMSAY: I’d like to present a petition dealing with the matter of seniors’ health benefits. This petition contains 427 signatures of Northwest Territories’ residents from Inuvik, Fort Smith and Yellowknife. The petitioners request that the GNWT continue to support the seniors’ Supplementary Health Benefits Program and that the program be kept as it is. The petitioners do not want to see seniors lose their benefits, and request that the GNWT recognize the value of senior citizens and leaving the Health Benefits Program unchanged. ---ApplauseMR. SPEAKER: Thank you, Mr. Ramsay. Item 15, reports of committees on the review of bills. Item 16, tabling of documents. The honourable Minister of Finance, Mr. Miltenberger.

Tabling of Documents

TABLED DOCUMENT 11-16(3):NORTHWEST TERRITORIES MAIN ESTIMATES

2009-2010HON. MICHAEL MILTENBERGER: Thank you, Mr. Speaker. I hope I didn’t short out the whole sound system by knocking over my water. I wish to table the following document titled Northwest Territories Main Estimates 2009-2010; $1.3 billion of good progress.---ApplauseMR. SPEAKER: Thank you, Mr. Miltenberger. Item 17, notices of motion. Item 18, notices of motion for first reading of bills. Item 19, motions. Item 20, first

reading of bills. Item 21, second reading of bills. Item 22, consideration in Committee of the Whole of bills and other matters: Tabled Document 7-16(3), Ministerial Benefits Policy; Committee Report 2-16(3), Standing Committee on Rules and Procedures Report on Matters Referred to the Committee; Tabled Document 11-16(3), Northwest Territories Main Estimates 2009-2010, with Mr. Krutko in the chair.

Consideration in Committee of the Wholeof Bills and Other Matters

CHAIRMAN (Mr. Krutko): I’d like to call Committee of the Whole to order. We have three items: Tabled Document 7-16(3), Committee Report 2-16(3) and Tabled Document 11-16(3). What is the wish of the of the committee? Mr. Beaulieu.MR. BEAULIEU: Committee wishes to report progress.---CarriedCHAIRMAN (Mr. Krutko): I will rise and report progress. Again, just for the record, Mrs. Groenewegen.MRS. GROENEWEGEN: Mr. Chairman, I move that we report progress.---CarriedCHAIRMAN (Mr. Krutko): I will rise and report progress.

Report of Committee of the Whole

MR. SPEAKER: Can I have the report of Committee of the Whole, please, Mr. Krutko.MR. KRUTKO: Mr. Speaker, your committee would like to report progress. Mr. Speaker, I move that the report of Committee of the Whole be concurred with.MR. SPEAKER: Thank you, Mr. Krutko. Motion is on the floor. Motion is in order. Do we have a seconder to the motion? The honourable Member for Sahtu, Mr. Yakeleya.---CarriedItem 24, third reading of bills. Mr. Clerk, item 25, orders of the day.

Orders of the Day

CLERK OF THE HOUSE (Mr. Mercer): Orders of the day for Friday, February 6, 2009, at 10:00 a.m.:1. Prayer2. Ministers’ Statements3. Members’ Statements

4. Returns to Oral Questions5. Recognition of Visitors in the Gallery6. Acknowledgements7. Oral Questions8. Written Questions9. Returns to Written Questions10. Replies to Opening Address11. Replies to the budget address (Day 2 of 7)12. Petitions13. Reports of Standing and Special Committees14. Reports of Committees on the Review of Bills15. Tabling of Documents16. Notices of Motion17. Notices of Motion for First Reading of Bills18. Motions

- Motion 5-16(3), Executive Council Accountability and Performance Review Process

- Motion 7-16(3), Supplementary Health Benefits

- Motion 8-16(3), Revocation of the Appointment of the Premier and Executive Council

19. First Reading of Bills20. Second Reading of Bills21. Consideration in Committee of the Whole of

Bills and Other Matters- Tabled Document 7-16(3), Ministerial

Benefits Policy- Tabled Document 11-16(3), Northwest

Territories Main Estimates 2009-2010- Committee Report 2-16(3), Standing

Committee on Rules and Procedures Report on Matters Referred to the Committee

- Bill 1, An Act to Amend the Historical Resources Act

- Bill 3, International Interest in Mobile Aircraft Equipment Act

- Bill 4, Public Library Act- Bill 5, Professional Corporations Act- Bill 6, Species at Risk Act- Bill 7, An Act to Amend the Student Financial

Assistance Act22. Report of Committee of the Whole23. Third Reading of Bills24. Orders of the Day

MR. SPEAKER: Thank you, Mr. Clerk. Accordingly, this House stands adjourned until Friday, February 5th at 10:00 a.m.---ADJOURNMENT

The House adjourned at 5:03 p.m.

2008

· Web viewPRAYER. 1979. BUDGET ADDRESS. 1979. MEMBERS' STATEMENTS. 198. 8. Updates to Deh Cho...

Documents

Transcript of · Web viewPRAYER. 1979. BUDGET ADDRESS. 1979. MEMBERS' STATEMENTS. 198. 8. Updates to Deh Cho...