Tom Beaulieu

Mr. Speaker, I would like to update Members on some recent activities of the Department of Public Works and Services with regards to fuel prices in communities served by its petroleum products division.

Recent changes in the market have seen oil prices go from all-time highs to record lows over the past year. This current market pricing has provided the petroleum products division with an opportunity to lower its costs and pass on these savings to residents.

The lower wholesale prices for fuel have made it possible to pass savings on to residents now, during the peak of the winter heating season...

I don’t have the expertise to indicate here in the House whether or not that would be a solution, but I would definitely go back to the department and discuss a solution with the deputy minister. If there are areas in addition to that one specific area referred to as Georgetown where flooding occurs at all times and the solution is something just south of our border there in the Yukon, we’ll have discussions with them and maybe be able to resolve that problem this winter. Thank you.

Yes, Mr. Speaker, it will be. We will be moving gasoline into communities on the winter road. Thank you.

Mahsi cho, Mr. Speaker. We were able to lower the costs by seeing that the fuel that we buy is referred to as fuel at rack prices that came down quite drastically over the last few months. We are anticipating that by the time you get the fuel into the community, it will be at a much lower cost. We are sort of blending at this point and lowering the costs. We do anticipate additional costs for heating fuel when we actually deliver the fuel sometime between the middle of this month and the middle of next month. Thank you.

Yes. We try to, within the rules and the regulations that govern the revolving fund, we have some flexibility, so as now, when the opportunity comes where we anticipate the fuel costs continuing to go down for a little bit more, we’re lowering the cost of fuel for all of the communities where we provide a service, and the cost is going to be lowered from anywhere from seven cents to nine cents a litre at this time and anticipating some more costs of fuel being lowered when the delivery actually occurs.

Actually, we feel that with these three divisions consolidated under one area of Public Works, it would be easier to develop comprehensive energy policies and strategies. We find that we’ll also be able to synchronize our planning for all of the energy functions. We also will be bringing people from ITI, three positions from ITI that were in energy policy and planning, along with the Northwest Territories Energy Corporation and positions that were there, along with one position from Environment and Natural Resources.

The departments of Public Works and Health and Social Services are at the stage when they are determining what design for the type of community. It’s almost like a little bit of a regional centre. In Fort Simpson that health centre can provide some services to the small communities in the immediate area, so the design will be a little more complex than just a community health centre, which is something that is being built in Fort Providence and Fort Resolution next year. I don’t know the letter associated with this particular design, but it would be a design that is something that fits the...

Thank you, Mr. Speaker. The RFP for a planning study for the Fort Simpson Health Centre will be released this month. Thank you.

The petroleum products division will become the fuel services division, so all of the functions at this point where we’re buying fuel from the rack and then delivering and then having distribution at the community level, those costs and then the functions and the positions that are directly associated with those functions of delivering fuel to the communities will be the cost of fuel, and that’s how we will continue to determine the cost of fuel in these communities that we provide fuel services to.

Thank you, Mr. Speaker. In June 2013, a recommendation came from the Standing Committee on Priorities and Planning from the Regular Members. It recommended that Energy, Mines and Petroleum Resources be created into a separate department. Cabinet looked at that in May of 2014 and looked at that recommendation and made the decision that we would consolidate one of those functions, well, two of them actually, the energy and the petroleum into Public Works, so that was the reason for us making that move over to creating that division under Public Works and Services.