Floyd Roland

Thank you, Mr. Chairman. Mr. Chairman, number one, the federal Finance Minister, as I worked in the previous Assembly as the Finance Minister in the first year of this government and developed a working relationship with Minister Flaherty, has been very straightforward in the sense of where he’s at when he says that he will work on certain issues with us, he has always delivered. When he says no, we’re unable to do that, he says it right up front and is clear with that. So following that discussion I had with him, the further commitment that I have seen that is evidence of that commitment is...

Thank you, Mr. Speaker. I wish to table the following document entitled Supplementary Appropriation No. 2, 2010-2011 (Infrastructure Expenditures). Thank you, Mr. Speaker.

Thank you, Mr. Chairman. I guess the first part of that is the weight I would place in the call that I had and the following actions from that call. February 27th I believe was the date. I had a call with Minister Flaherty discussing with him the fiscal situation we could find ourselves in as the Government of the Northwest Territories when it comes to the debt situation and the Deh Cho Bridge Project and the call of the lenders to assume that debt. At that point he said he would work with us to deal with that debt.

Following that, we have had discussion between Finance Canada staff and our...

Regardless of our debt situation as the Government of the Northwest Territories, even the bridge project aside, we are unable to, as the Government of the Northwest Territories, guarantee the debt of the Taltson. With drawing this down and bringing it into our books does not impact us that way. We’re going to have to find partners out there or have the federal government make an investment. There are a couple of funds that we have made application to try to help offset some of those costs.

Thank you, Mr. Chairman. Just for clarification, he’s talking about the specific debt to the Deh Cho Bridge Project or the debt of the Government of the Northwest Territories, including the Housing Corporation?

Thank you, Mr. Speaker. The options for us, there are a number of things that could be developed and the Member has put the idea of the Opportunities Fund as part of a solution that could be looked at paying out a debt early. The situation that we would have to look for is, for example, the Opportunities Fund has a time amount once borrowed that it has to be paid back. The concession agreement and the agreement with the lenders that stands is already built into our fiscal strategy for the 35 years. There will come a time as interest rates go up and real bonds and the real bond market, we could...

Mr. Chairman, as the Members are aware, we’ve, in the last couple of years, had some of the largest capital spending in the history of the Government of the Northwest Territories, and to have that happen requires a large cash flow. It’s when those projects are being done and put into service and finishing the construction that we run into the problem of our debt wall if we did not have relief from the federal government. So with this relief, our cash requirements drop down because we go back to the typical capital plan of the Government of the Northwest Territories which is $75 million. Then...

Mr. Speaker, the alternate routes have been looked at by the Hydro Corporation and the Power Corp because through the environmental review they were asked for additional information. That was provided. This project will not work. We will not be able to sell energy to the mines for an acceptable rate. They will not sign power purchase agreements for a cost higher than they’re able to develop it for in today’s environment. Adding approximately $100 million-plus to the project by going around the west side of the lake would put that project in a place where it is uneconomical and we have no...

Thank you, Mr. Chairman. Mr. Chairman, the debt will be handled on our books as we’ve laid out here by accepting that, and the issue of having a letter or the Order-in-Council, as it would be referred to, from Minister Flaherty, my understanding from the staff having discussions between Finance Canada and our own finance staff here that his department is working on the temporary adjustment that will allow us to go beyond that current limit that is set, again, relief from this project. I’ve had that verbally from the Minister of Finance. I put a lot of weight in that and the fact that his staff...

Thank you, Mr. Speaker. Mr. Speaker, the NWT Hydro Strategy does set out the development of a grid over the long-term life of the Northwest Territories. This piece of our plan is based on the business case, a business model that sees revenue accruing to the partnership and to the Hydro Corporation. From there, the benefits then would flow in other areas, Mr. Speaker, that would see, for example, the GDP of the Government of the Northwest Territories remain or grow because we’re able to supply electrical power to industry at a lower rate than is being done, so now because they have to build...