Debates of February 19, 2009 (day 14)

Date
February
19
2009
Session
16th Assembly, 3rd Session
Day
14
Speaker
Members Present
Mr. 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
Topics
Statements

QUESTION 166-16(3): CONSIDERATION OF ATCO PROPOSAL

Mr. Speaker, I would like to direct my questions to the Premier today with respect to the ATCO proposal that… just to put it in a little bit of context, Mr. Speaker, we asked this government to look at supplementary health benefits so that the working poor can be looked after. We get a response that takes drastic measures on a whole lot of other people. We agree in the strategic planning that we want an efficient and an effective government and we get a proposal back from this government to wipe out virtually every board in the Northwest Territories.

Mr. Speaker, we stand up on a theme day and say the cost of power is too high in the Northwest Territories and a few members suggested the private sector seems to be doing a more effective job in delivering that. We get basically a proposal back from this government looking for a lot of manpower into considering just selling the Power Corporation. The rate is too high. Let’s just sell the Power Corporation. I know it is only in the investigative process right now, but, Mr. Speaker, it is causing so much angst and so much uncertainty in our community of Hay River. It just seems like this government is just responding to anything that kind of goes flying by. I’m not against constitutional discussions either but we can’t just every time something pops into our head...We need some direction.

Back to the issue of the ATCO proposal, Mr. Speaker, what actually precipitated this government’s decision to devote resources to analyzing and considering the ATCO proposal? Thank you.

Speaker: MR. SPEAKER

Thank you, Ms. Bisaro, The honourable Minister responsible for the NWT Power Corporation.

Mr. Speaker, the fact that the issue over the cost of living has been raised right from the start of this government, that we need to do something. We need to try to find ways to stabilize the cost of living in the Northwest Territories and lower it if at all possible, the theme day here, the Association of Communities making recommendations to this Assembly and to the Minister responsible to have a look at this. This is not just a fly-by-night look at something. This issue is a real one that we have to look at. It so happens that this initiative has come forward and we want to take a serious look at what is actually being put on the table or could be brought to the table. No decisions have been made as to what will happen there. I’ve committed that I would come back after I get a response to the preliminary work, sit down with Members and discuss what it’s looking like and go from there. Thank you.

Mr. Speaker, to devote resources to the extent that we have committed to examine the unsolicited proposal from ATCO is a decision in and of itself, because it’s not the only option. Another option would have been to take a look at the Power Corporation and do some kind of an analysis of their operations to see, first of all, if there was any way we could do anything differently, smarter, effectively, efficiently, that could have translated into lower power rates for people of the Northwest Territories. Why wasn’t that option considered? Thank you.

Mr. Speaker, the fact is we are. The other motion is to have a look at the review of the Power Corporation, that is ongoing. Another piece of that is the discussion paper that has gone out to the public around energy generation regulation rates. The structure has gone out for public discussion as well. There are a number of pieces we are looking at. They are not totally isolated from one another. We felt at this point, with an offer on the table, that we should at least have a look at that offer to see what it might mean for the people of the Northwest Territories and ourselves as a government. When you tie those pieces together, we will be looking at efficiency, we will look at things like, for example, a conservation rate, should that be looked at across the Northwest Territories as a way of doing it. Minister Miltenberger, in the past, has talked about dealing with the capital of the Power Corporation much like we deal with it as a GNWT. Those things will all be looked at in that process. The proposal, the initial piece, we’ll have a look at it and we’ll do a comparison as well to other providers in the Northwest Territories. Thank you.

Mr. Speaker, it still seems like a scattered approach to me and in the process we are doing damage in the fact that we are creating uncertainty again amongst a group of people who are starting to talk about, if this is the government’s first response to MLAs saying that we need cheaper power rates in the Northwest Territories, it’s an overreaction. We should first of all look at whether or not Power Corp operates too arms-length from the government and if there are opportunities to bring it in. Just the fact that somebody can walk up and throw a proposal on our desk and we will then devote resources to investigating that without laying other options out for all of us to consider to me has caused a problem for us now. What does the Premier say to that? Thank you.

Mr. Speaker, as I did a statement in this House just the other day about some of the decisions we have to make as Members of the Legislative Assembly, some of those will require some debate and making some tough decisions in the overall interest of the whole of the Northwest Territories. That’s the type of information we’re trying to get so we can sit down and look at that. Unfortunately, when we do go out through a process and make the public aware that we are doing a review or investigating an initiative or, as the Members have pointed out, a couple of the other ones that have gone out publicly, that does cause concern in the Northwest Territories. I believe that if we’re going to do our job we have to look at the options available to us and at least investigate them to see if we’re on the right track. If it does mean cost savings to people in the North and a stabilization of our rates then that is something we should follow up on.

Now, will it mean that? Not sure. What resources do they bring to the table? Not sure. We want to see what they’re prepared to put on the table in the sense of helping us stabilize rates and the cost of living and what it means for employment and securing the energy sector in the Northwest Territories and further development of our energy sector as well. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.

Mr. Speaker, I just think we can’t afford to chase down every trail without first looking at the fact that we own the Power Corporation and perhaps there are things that could be done, not just with the Power Corporation, but through other energy conservation. It’s a complex problem.

Mr. Speaker, we keep calling the ATCO proposal the unsolicited proposal. I just want to get to the bottom of was there a meeting between any representative of this government and ATCO that transpired prior to the unsolicited proposal being presented? Thank you.

Mr. Speaker, the fact that when we sat down as Members of the Assembly looking at some of our initiatives and the impacts of those directions we want to go in and trying to secure areas, cost of living was a big one. That’s why we put an initiative committee behind that to try to deal with that. When it comes down to was there a meeting? I had been down to Calgary meeting with a number of groups and sat down with representatives of ATCO in their initial interest and felt that at that point we were not prepared to look at initiatives or anything but I’d be prepared to sit down with Members to see what may come forward. After we had the work in this House and the Association of Communities do motions at their assemblies to do something about the Power Corporation and look at that initiative, then the proposal showed up and we’re starting that review. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. Oral questions. The honourable Member for Nahendeh, Mr. Menicoche.

QUESTION 167-16(3): JMR BIOMASS ENERGY INITIATIVE

Mr. Speaker, I just want to follow up on my Member’s statement and ask the Minister of Environment and Natural Resources about the biomass initiative and the Biomass Strategy, if he can share some of the details around that. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Menicoche. The honourable Minister of Environment and Natural Resources, Mr. Miltenberger.

Mr. Speaker, the intent of the Biomass Strategy is to do a number of things. One of the key areas we are interested in, of course, is lowering the cost of living in the small communities. We’re looking at heating; generation and distribution of electricity are two main areas. We are of the opinion that there is great potential and there is technology that is currently in existence. We know that the Member’s community of Jean Marie River has been very active in this area. We are very interested, should the budget be approved, to move forward to find a smaller community that could be used as a demonstration or a pilot project that would allow us to look at the type of technology that would work best in there, and to work with the community to, in fact, get it up and running. If it works then we’d be able to see how we could roll out the biomass potential all the way through the boreal forest area, which takes us almost up to Inuvik. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. The time for question period has expired; however, I will allow the Member supplementary questions. Mr. Menicoche.

I’d like to thank the Minister for that answer. As well, in terms of should we get to the feasibility or planning stages, are all the funding and resources available only in his department or are there other resources in other departments that can be accessed to move this proposal forward? Thank you.

Mr. Speaker, the budget speaks about $60 million basically over four years with this year to be the start-up year. The Ministerial Energy Coordinating Committee, chaired by Minister Bob McLeod, is overseeing the projects. The money would be located in different departments as we look at moving forward. The intent, though, is to have it coordinated through the Ministerial Energy Coordinating Committee to ensure that the whole range of projects move ahead, be it hydro, mini-hydro and wind and such. Thank you.

I would also ask the Minister at this time for any assistance accessing any federal dollars that can be used for this fund. I’m not too sure what specifically is in the federal budget but I’m sure that his staff can assist us in identifying the exact program that may fit this proposal. Thank you.

The one fund that we’re aware of is there’s a billion dollar Green Fund that the federal government has money for. It’s project-based. Once again, once the criteria is clear, we believe that we have a number of projects that may be eligible. We’ll have to get in line with every other province and territory across the land, but we believe we have two things: we have our share and we have projects that we think would be considered, by the federal terminology, as shovel ready. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Item 9, written questions. The honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. I seek unanimous consent to go back to item 8.

---Unanimous consent granted

Speaker: MR. SPEAKER

Oral questions. The honourable Member for Weledeh, Ms. Bromley.

Oral Questions (Reversion)

QUESTION 168-16(3): FEDERAL NAVIGABLE WATERS ACT

Mr. Speaker, I have a question for the Minister of Environment and Natural Resources. I think people are aware that the federal government has proposed an amendment to the Navigable Waters Protection Act. It’s really a measure that guts the environmental protection of recreational and traditionally used streams and rivers. I’m wondering if the Department of ENR has a position on that. I’m certainly aware that the Department of Transportation does. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Bromley. The honourable Minister of Environment and Natural Resources, Mr. Miltenberger.

Mr. Speaker, I’m aware that this act is being updated; it is very old. There are some things that we believe are of benefit to us. I’ve heard the concerns raised on the radio and I’ve seen the press release by the Member of Parliament, but at this point I don’t have much more detail than that. I know the Minister of Transportation has been looking at this and has been dealing with that issue. Thank you.

Thank you for those rather startling comments from the Minister of ENR. I would assure the Minister that this is an issue worthy of his attention. I’m wondering if the Minister would commit to learning promptly about this issue and offering comment to the federal government in a way that protects the long-held protection of traditional and recreational use of small rivers, which also happen to be the most productive water bodies that we have, these small, especially small, shallow and ephemeral streams. Thank you, Mr. Speaker.

Yes, Mr. Speaker, I will ensure that by this time tomorrow that I am conversant on this issue and able to engage in a meaningful discourse with the Member. Thank you.

I very much appreciate that commitment on the part of this Minister. This is something that has been put through very speedily by the federal government, this particular federal government, in a low profile way that has prevented substantive input such as this. I’m wondering if the Minister would commit to making his department’s position on this clear for the public, as well, and my concerned constituents. Thank you.

Mr. Speaker, I will look at this. I’ll talk to my colleagues and we would be more than willing and ready to share the government’s position on what’s being proposed for the upgrades to the Navigable Waters Act. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Final supplementary, Mr. Bromley.

I was particularly asking about this department’s perspective. I’m sure the government will once again follow the developer’s perspective and get rid of any environmental protection such as is offered by this act for these small streams. I’d be very interested in the department’s perspective as well as this government’s perspective. Will the Minister commit to providing that? Thank you.

Mr. Speaker, I would like to suggest that on these issues where the territorial government deals with the federal government, that the positions we are trying to make sure are consistent and one and the same so that we don’t send out confusing messages as a government. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Oral questions. The honourable Member for Mackenzie Delta, Mr. Krutko.

QUESTION 169-16(3): PROCESS FOR LETTING NEGOTIATED CONTRACTS

Mr. Speaker, my question is directed to the Minister of Public Works and Services in regard to a comment that was made in regard to one of the community leaders in which the staffer in Inuvik made reference: well, we don’t like negotiated contracts, it takes too long, so basically that’s not the process we like to follow. I’d like to ask the Minister who makes the decision on a negotiated contract. Is it someone in the field or is it Cabinet?

Speaker: MR. SPEAKER

Thank you, Mr. Krutko. The honourable Minister of Public Works and Services, Mr. Michael McLeod.

Mr. Speaker, the process requires that Cabinet review the request by the community with the required support letters and documents and that decision is made by Cabinet. Thank you.

Mr. Speaker, I’d like to ask the Minister if he could maybe direct his staff to avoid making those comments and to clarify that the position of this government is that negotiated contracts are the responsibility of Cabinet, not someone in the field, and that decision is made at the Cabinet table. I think it sends the wrong message and then you wonder why we’re having problems in the Inuvik region. I’d like to ask the Minister if he’d personally get involved or get his deputy involved to talk to the staff and notify them that they should not be making those comments to political leaders in light of we have a policy in place and they should be following these policies.

Mr. Speaker, we did have a sit down meeting with the Gwich’in leadership and one of the chiefs did raise some concern with a staff position and comments made. We will look into the situation and we will take the advice of the Member and provide the guidelines to all our staff. Thank you.

Mr. Speaker, I don’t know if there is going to be any reprimand to this but I think that there should be some consequences to those types of statements, especially when it does have a direct implication on that decision which caused grief at the top level and could have been avoided. If anything, we have to work together going forward. I’d like to ask the Minister, can he get back to me on exactly what the outcome of the discussions are with those individuals? Thank you.

Mr. Speaker, this issue was raised by the Gwich’in leadership. We will look into the situation and take the opportunity to talk to the Member in that area. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. Oral questions. The honourable Member for Mackenzie Delta, Mr. Krutko.

QUESTION 170-16(3): PARTNERSHIP ARRANGEMENTS AFFECTING ATCO PROPOSAL

Mr. Speaker, I, too, would like to get into the proposal that was brought forward in regard to ATCO. I, for one, being a previous Minister, know pretty well that ATCO has been trying to get their foot in the door in the North but that they already have their foot in the door. I’m just wondering why is it that this government is not in discussions with Northland Utilities, which is a northern company in partnership with ATCO but yet nowhere has there been any discussions with Northland Utilities in regard to their joint venture with the Dene Development Corporation. Why is that discussion not taking place?

Speaker: MR. SPEAKER

Thank you, Mr. Krutko. The honourable Premier, Mr. Roland.

Mr. Speaker, just to make Members aware of the situation, Northland Utilities is a subsidiary of ATCO company. Thank you.