Mr. Speaker, in following up the question that I was asking, I’m quoting from unedited Hansard:
“The lending agent itself went and got a review. They’re the ones at risk for $165 million if, in fact, they want to lend this money to this project and to make sure it’s a valid project.”
Mr. Speaker, my question for the Premier today is: is it not true that in the event of a default on the loan that he’s referring to, the G.N.W.T. shall step in and receive the project company’s rights benefits to the debt and loan documents, and assume and be bound by all current, future and overdue liabilities and obligations of this project?
Thank you, Mr. Speaker. The Member is quoting the worst-case scenario, if the project were to fail. As we’ve laid out, the traffic counts and volumes, our commitment to the project…. As was stated in this House, we recognize, as the G.N.W.T., that we are backstopping this project. So yes, through the process, through the whole arrangement, it’s been known that we will end up backing this project if it was a worst-case scenario.
But I did point out, as she was reading from Hansard, responding to a part of a question, the fact is that the lending agent who is lending the money to the Deh Cho Bridge Corporation has made sure that they’re covering all their bases, as well, to ensure that it’s a worthy project to invest in.
Mr. Speaker, now that we have established that, in fact, the G.N.W.T. is bearing some of the risks — if something goes wrong, all of the risk — for this project, I’d like to ask the Premier — and he’s the Finance Minister, so he should know this — how is this liability being reflected in the records of the G.N.W.T.? Because as everyone knows, we have a legislated debt limit of $500 million.
The bridge corporation process is being treated the same way we deal with capital leases and is recognized as well — as Members would know who are familiar with the Financial Administration Act — under that area. So we account for it in that area, but like many of our leases throughout many communities in the Northwest Territories, they don’t show up on our guaranteed debt position.
I can’t ask a hypothetical question, but I would like to project the scenario if something should go wrong and the Deh Cho Bridge Corporation cannot meet the obligations of this debt. Right now, we currently have, I believe, around $300 million of debt, and another $165 million would put us right at our limit. I want people to be fully aware of that.
Mr. Speaker, as we speak today, I’d like to ask the Premier: today is February 21st. What is being signed on behalf of our government today and by whom?
Mr. Speaker, all the documents that are required to bring this deal to a closure. There are a number of schedules. I don’t have a list handy with me right now, but those will bring this whole process to closure, and the banks will be satisfied. The Deh Cho Bridge Corporation, ourselves, all parties would be signing the appropriate documents. It could be at the close of the day, if we can get them all together, or tomorrow.
Final supplementary, Mrs. Groenewegen.
Thank you, Mr. Speaker. The Premier did not identify who is signing these documents on behalf of the G.N.W.T., and he doesn’t seem too familiar with what they are, anyway.
Anyway, Mr. Speaker, in case I don’t get a chance to ask any more questions, I want to let the record show that today, February 21, 2008, I sat in this Chamber and said that this process has not done justice to due diligence and to the people of the Northwest Territories. It has put them at undue risk.
My question for the Premier here today is: will he endeavour to find out…? We’re going to leave here now, but I want to know if the folks who establish the credit rating of this government have been made aware of this particular agreement, and how that has affected, or will affect, our credit rating as the G.N.W.T.
Mr. Speaker, in fact, as we have our credit rating established through Moody’s and we looked at this borrowing situation, we have been in contact with them. They’re aware of the situation, they have reviewed it, and they feel we’re in a healthy situation and this is something that is affordable if things were to go wrong. The fact is we’re planning things will move along, and we’ll show that this was a good investment for the future of the Northwest Territories.
