Thank you, Mr. Speaker. In October 2009 the Government of New Brunswick and Hydro Quebec announced their proposed deal that would see Hydro Quebec buy the majority of New Brunswick power assets. Some call the proposal a win-win deal. New Brunswick power rates would freeze, the sale of the corporation would ease the provincial financial burden and Hydro Quebec would gain thousands of new customers. This could be either seen as golden and historic or simply just plain foolish giving up a birthright.
I wonder if a similar situation could happen here in the Northwest Territories. If the government chose to sell our Power Corporation or a significant portion of it to ATCO or any other investor, in essence the power generation, transmission and distribution would no longer be in the control of northern residents.
I asked Members in this House to consider the British Columbia model of power transmission. The Minister is required by law to hold 100 percent of the B.C. Hydro shares. B.C. Hydro performs a large portion of its activities through contracts with third parties, supporting businesses and aboriginal ventures that would operate in some parts of the province. However, power generation, transmission and distribution remains in the control of B.C. residents.
As Members continue the current electricity rate review, we must ever bear in mind that the interest of Northerners must come first. We must retain our ability to make decisions about how electricity is provided and controlled in the NWT. In fact, many Northerners believe that changes to the NWT Power Corporation are necessary in order to reinvigorate its approach and strengthen its accountability.
It may be time to consider whether the Power Corporation could be more effective and efficient if it was a government department. The GNWT Cabinet appoints the board, claims a financial dividend each year, is the largest customer for the Power Corporation and also subsidizes many of its consumers. These activities might all be simpler and more cost-effective if the Power Corporation were a department.
The GNWT has departmental structures, a capital planning system, has special arrangements such as a revolving fund for functions such as petroleum products which generate revenue to cover their costs. And don’t forget, if we didn’t have a PUB review process, there would be substantial savings there.
I think it’s time for the government to consider an unbiased approach, examine the various implications of establishing the Power Corporation as a GNWT department. Working with business, industry and aboriginal governments on specific projects is a great way, in the spirit of partnership, to approach for the future. Losing or selling off control is certainly unacceptable.
Thank you, Mr. Hawkins. The honourable Member for Kam Lake, Mr. Ramsay.
