Your Standing Committee on Government Operations is pleased to report on its review of Bill 10, Northwest Territories Heritage Fund Act, and commends it to the House.
The Standing Committee on Government Operations is pleased to report on its review of Bill 10, Northwest Territories Heritage Fund Act. The bill would establish a Heritage Fund for the present and future residents of the Northwest Territories, to extend the benefit of today’s economic development and resource development for future generations.
The bill sets up the framework for investing funds allocated to it by the Legislative Assembly. Those savings will become the principal of the fund, which are permanent contributions. Only gains on the principal can be withdrawn, and such withdrawals cannot begin for at least 20 years.
Bill 10 received second reading in the Legislative Assembly on March 10, 2011, and was referred to the Standing Committee on Government Operations for review. The review began May 19, 2010, with opening comments from the Minister of Finance. The committee then held a public hearing in Yellowknife on May 20th, and a public clause-by-clause review on August 12, 2011.
All submissions to the committee supported the creation of the Northwest Territories Heritage Fund, and included thoughtful suggestions for strengthening the bill. The committee received oral and written submissions from:
Canadian Federation of Independent Business;
Pembina Institute;
West Point First Nation;
Ecology North; and
Alternatives North.
In addition, a written submission was received from Weledeh MLA Bob Bromley. The committee thanks all those who contributed their time and effort to this important initiative for the people of the Northwest Territories.
Mr. Speaker, at this time I`d like to pass the floor over to my colleague and member of Government Ops, MLA Abernethy for Great Slave. Thank you.
Thank you, Mr. Hawkins. The honourable Member for Great Slave, Mr. Abernethy.
Thank you, Mr. Speaker. The majority of the submissions agreed on the following:
The act should describe the purpose of the fund as ensuring continuing benefits to current and future NWT residents from revenue generated by the development of non-renewable resources;
The act should specify what Heritage Fund withdrawals can be used for;
The act should set a fixed annual percentage of defined revenue sources for deposit into the Heritage Fund;
More than 10 years is required for funds to accumulate before any withdrawals (at least 20 years was the most common suggestion);
The fund and projects it contributes to should be free from political interference; and
The fund should be managed at arm’s length from government.
Half the submissions also recommended that the Heritage Fund be invested ethically, with standards for doing so described in the act.
One intervener suggested that one goal of the Heritage Fund should be to minimize future tax increases.
One submission advised that the Heritage Fund should be able to issue government-guaranteed bonds in which the public could invest.
Committee members carefully considered all this input, including the need for transparency and regular reporting to the public on the management and performance of the fund. The committee shared the Minister’s view that the cost of managing the fund in its early years be kept to a minimum in order to maximize returns.
Balancing public feedback and practical necessities, committee members brought five amendments forward at the public clause-by-clause review on August 12, 2011:
Describing the purpose of the fund as providing benefits from ongoing economic development, including the development of non-renewable resources;
Mr. Speaker, I`ll now pass over the final reading of the report to my colleague Mr. Hawkins.
Thank you, Mr. Abernethy. The Member for Yellowknife Centre, Mr. Hawkins.
Thank you, Mr. Speaker, and thank you, Mr. Abernethy.
Ensuring that Section 96 (as well as Sections 89, 97 and 100, as originally proposed) of the Financial Administration Act applies to the Heritage Fund, providing for properly detailed annual reports, tabled in the House;
Extending the “no withdrawal” period from 10 years to 20 years;
Providing for a committee review of the Northwest Territories Heritage Fund Act every 10 years, and determining that the first review should include:
An examination of the operation of the act;
Recommendations respecting how to obtain public input on the expenditures to be made from the fund;
Recommendations respecting independent oversight and management of the Heritage Fund; and
Recommendations respecting any amendments that should be made to the act;
and
Establishing the Northwest Territories Heritage Fund Act only be amended by a special two-thirds majority of Members of the Legislative Assembly.
The Minister of Finance concurred with all the amendments except the final one. Thus, the first four amendments are included in the bill as referred to the Assembly for consideration in Committee of the Whole. The Standing Committee on Government Operations appreciates the Minister’s cooperation in the development of this historic bill.
Members of the Standing Committee on Government Operations agree with the Minister of Finance that the Northwest Territories Heritage Fund Act, while a major step forward, represents a `bare-bones` framework for investment. It will be the job of future Assemblies to flesh out the act and regulations to ensure sufficient public input and accountable, independent management when the time is right. It will also be the job of future Assemblies to allocate money to the fund. Growth of the fund will be a significant challenge in the next several years. However, once the Heritage Fund is established, NWT residents will expect to see deposits made, even if they are modest.
Mr. Speaker, I have three recommendations.
The Standing Committee on Government Operations recommends that the 17th Legislative Assembly Standing Committee on Rules and Procedures strongly consider adding the automatic referral of the annual report of the Northwest Territories Heritage Fund to the terms of reference to the appropriate standing committee.
The Standing Committee on Government Operations recommends that the government draft regulations for the operation of the Heritage Fund and refer them to the appropriate standing committee for review and feedback in a timely manner.
The Standing Committee on Government Operations recommends that the Caucus of the 17th Legislative Assembly establish a process convention to facilitate the referral of a limited category of regulations to standing committee for review and comment prior to their final enactment.
Mr. Speaker, that now brings me to the motion.
Thank you, Mr. Hawkins. Motion is on the floor. Motion is in order. To the motion.
Question.
Question is being called.
---Carried
Committee Report 6-16(6) will be moved into Committee of the Whole for further consideration.
Colleagues, I would like to direct your attention to the presence in the visitors’ gallery of our Chief Electoral Officer, Mr. David Brock; Deputy Chief Electoral Officer Nicole Latour-Theede; and the returning officers for each of the electoral districts in the Northwest Territories: Phoebe Parent, Deh Cho; Shauna Morgan, Frame Lake; Tessie Gonzales, Hay River North, and a constituent of mine; Heather Coakwell, Hay River South; Arlene Hansen, Inuvik Boot Lake; Juanita Bourque, Inuvik Twin Lakes; Mary Beauchamp, Kam Lake; Daryn Erigaktuak, Mackenzie Delta; Harriet Koyina, Monfwi; Deborah Stipdonk; Nahendeh, Molly Nogasak, Nunakput; Marjolaine Larocque, Range Lake; Margrit Minder, Sahtu; Margo Harney, Thebacha; Tony Lafferty, Tu Nedhe; Pam Dunbar, Weledeh; Gazira Chan, Yellowknife Centre; and Pat Thagard, Yellowknife South.
I hope I got those names right or didn’t do too badly on the spellings. Welcome to the Assembly.
I would also like to recognize in the Assembly today the Speaker from the Ontario Legislature, Mr. Steve Peters, and his executive assistant, Maggie Head. Welcome to the Assembly.
The honourable Member for Monfwi, Mr. Lafferty.
Mahsi, Mr. Speaker. [English translation not provided]
Thank you. The honourable Member for Nahendeh, Mr. Menicoche.
Thank you very much, Mr. Speaker. I’d like to recognize Ms. Deborah Stipdonk, a resident of Fort Simpson. Welcome to the gallery. As well as Ms. Gazira Chan, a former resident of Fort Simpson. Welcome. Mahsi.
Thank you, Mr. Menicoche. I think I missed one name when I was calling out the returning officers: Brenda Kolson from Great Slave.
The honourable Member for Thebacha, Mr. Miltenberger.
Thank you, Mr. Speaker. It gives me great pleasure to recognize and acknowledge a very good returning officer, a fine lady and a friend, Margo Harney.
Thank you, Mr. Miltenberger. The honourable Member for Great Slave, Mr. Abernethy.
Thank you, Mr. Speaker. I’d like to recognize a constituent and the returning officer for the Great Slave riding, Ms. Bren Kolson.
Thank you, Mr. Abernethy. The honourable Member for Inuvik Boot Lake, Mr. Roland.
Thank you, Mr. Speaker. It’s not too often we get to recognize constituents from our communities. I’d like to recognize Arlene Hansen. And we can say this time there will be an election in Inuvik Boot Lake.
---Laughter
Thank you, Mr. Roland. The honourable Member for Nunakput, Mr. Jacobson.
Thank you, Mr. Speaker. Just like the Premier said, it’s not too often we get people from our home communities. I’d like to welcome Molly Nogasak from my home of Tuktoyaktuk.
Thank you, Mr. Jacobson. The honourable Member for Inuvik Twin Lakes, Mr. Robert McLeod.
Thank you, Mr. Speaker. I’d like to recognize a former constituent of Inuvik Twin Lakes who is also the returning officer. She didn’t move out of the riding; they actually moved the line. So welcome Juanita Bourque. Thank you.
Thank you, Mr. McLeod. The honourable Member for Frame Lake, Ms. Bisaro.
Thank you, Mr. Speaker. I’d like to recognize a number of people today over here on the left side of the gallery. We have a number of residents of Northland who are here to observe the proceedings: Cheryl Fountain and her daughter Rhiannon Hoddinott; Rebecca Alty; Vivian Hansen; Wade Friesen; and Celeste Coomber. You will note that some of them are young, and some of them are very young, and some of them are not so young.
I’d also like to recognize the returning officer for Frame Lake, Shauna Morgan. Welcome everyone.
Thank you, Mr. Speaker. The honourable Member for Yellowknife Centre, Mr. Hawkins.
Thank you, Mr. Speaker. I’d like to recognize a few members in the gallery at this time. I think they’re still up there. First of all, I recognize my constituency assistant who is a constituent of Yellowknife Centre and that would be Maud Robinson-Spence. As well as, I think, flanked somewhere up there I am recognized not as the MLA but also as the father; my two children are up there somewhere: McKinley Hawkins and Hudson Hawkins. Thank you.
Thank you, Mr. Hawkins. The honourable Member for Deh Cho, Mr. Michael McLeod.
Thank you, Mr. Speaker. I would also like to recognize the returning officer from the Deh Cho, Phoebe Parent. She has, I believe, been the returning officer for every one of the three times that I’ve run for an election, so hopefully the fourth time will be the charm. Thank you.
Thank you, Mr. McLeod. The honourable Member for Hay River South, Mrs. Groenewegen.
Mr. Speaker, I’d be remiss if I did not take this opportunity to recognize a Hay River South constituent, as well, the returning officer for Hay River South, Ms. Heather Coakwell, and a long-time friend and educator in Hay River, Ms. Tessie Gonzales.
Thank you, Mrs. Groenewegen. The honourable Member for Tu Nedhe, Mr. Beaulieu.
Mahsi cho, Mr. Speaker. I would like to recognize the returning officer from Tu Nedhe, Tony Lafferty.
Thank you, Mr. Beaulieu. The honourable Member for Weledeh, Mr. Bromley.
Thank you, Mr. Speaker. I’d like to also recognize the returning officer for Weledeh, a lady who has served in that capacity a number of times, I believe, Ms. Pam Dunbar.
Thank you, Mr. Bromley. The honourable Member for Sahtu, Mr. Yakeleya.
Thank you, Mr. Speaker. I’d like to recognize also the lovely returning officer from the Sahtu, Margrit Minder. I’d also like to recognize from this past summer a CANOL 50-mile hiker, Tia Hanna, from the Northland residents in Yellowknife.
Thank you, Mr. Yakeleya. If we have missed anyone in the gallery today, welcome to the Chamber. I hope you’re enjoying the proceedings. It’s always nice to have an audience in here.
Thank you, Mr. Speaker. I talked about the Nutrition North Program under the federal government’s responsibility and what type of a disaster our northern consumers are facing today as they used to operate the Food Mail Program. I want to ask this government, I don’t know which, maybe the Premier or the Minister who is responsible under the Food Mail Program, what types of monitoring initiatives are done to monitor the food costs in our small communities so that we are well informed as to how the new subsidies are being applied.
Thank you, Mr. Yakeleya. The honourable Minister responsible for Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. There are a number of ways that monitoring is done, some not specifically related to the Food Mail Program, as we look at our consumer price index to the food basket issue. We’ve committed, as well, to track the cost of food and the cost of living in the small communities tied into the electrical rate review.
Our role in the Food Mail Program is very modest. We were given about 390-some-thousand dollars through Health Canada to do nutrition education. Those are some of the areas where we’re involved and some of the monitoring that is done. Thank you.
Mr. Speaker, what I’m receiving as some of the complaints from the constituents are that the contract between the Northwest Company and the Nutrition North Program is that the retail store is not so concerned about the diet that’s supposed to be provided under the program for the residents; it’s more concerned with the bottom line profit. So the type of monitoring that this government is responsible for, how is it that this government is educating people on nutrition and northern healthy foods when we can’t even get them in our communities? If we do get them, they’re either spoiled rotten or they cost too damn much for people to buy. How is it that this government is telling the Northwest Company you need to have nutritional food here and some of those products are not getting in there? And if they are, they go bad after one day on the shelf.
The Member has to keep in mind that this is a federal program. It is an important program. There are concerns with it and I appreciate the Member’s concern, and we have the same concern that the savings that accrue to the retailers are not being passed on to the consumers. We still have a great interest in proper diet. Our whole focus on prevention, Get Active campaigns, proper nutrition to do with healthy eating, diabetes, all these other things are still critical pieces of the education that we can’t turn our back on. We have a small fiscal role with the funding from the federal government, but this is, first and foremost, a federal program.
I understand it’s the program. You look on the website, it is a federal program. However, this government here has tied itself to it by signing the contribution agreement to educate the public on healthy foods in our small communities. What advice has this government to date provided to the federal government to make sure the Freight Subsidy Program for food works for the people in the Northwest Territories? What I’m hearing right now is that in the Northwest Territories the freight subsidy isn’t working and we’re paying about 20 bucks for freight for five or 10 pounds of potatoes. Where’s the education part?
The education component focuses a lot on the personal choices of what’s available, what choices to make if you have a choice between healthy foods, vegetables, versus pop and chips. This is a program that has its flaws. It is a program that is of concern in all northern communities, and I will commit to the Member that they will have an opportunity here probably next week to pass on concerns when I get a chance to have a conversation with the Minister. Minister Aglukkaq knows this very well since she is from Nunavut, that there are challenges to meet with this program.
