I know what I’ve been paying for hunting licences and I know they increased in recent years and I’m sure the revenue is a lot more than that. This is nothing short of shameful. Does the Minister plan on upping these fees?
We’re mirroring the regulations that are in place and it remains to be seen what will happen once that happens and into the future. I guess that’s a decision for another day past April 1st.
I know we’re collecting $10,000 in fees from the petroleum industry here, an amazingly small amount. At the same time, I suppose we’re now proposing to subsidize this same industry, the richest corporations in the world, with millions of taxpayer dollars from GNWT funds. That’s just an observation.
Thanks to the Member.
Okay. It was a comment. Anything further on page 12-9, information item, revenue summary? Mr. Dolynny.
Thank you, Madam Chair. I know it might be premature, but we know the diamond manufacturing sector is, hopefully, on its way to production here in this fiscal year. Is there a reason or rationale that we would not have included at least some degree of money in main estimates?
Thank you, Mr. Dolynny. Minister Ramsay.
Thank you, Madam Chair. We don’t have any forecasted revenues from the manufacturing sector as of yet. That remains to be seen.
I would assume these are referring to trademark type dollars and enhancing the brand. If and when that money does come in as a revenue item for ITI, is the intent still that this money be used 100 percent to reinforce that trademark?
Absolutely, that would be our goal to do that and our anticipation is, hopefully, that some of those dollars would roll in this year.
Thank you, Minister Ramsay. Information item, revenue summary, page 12-9. Agreed?
Agreed.
Thank you. Page 12-10, information item, active position summary. Any questions?
Agreed.
Thank you. Page 12-11, active positions, Business Development Investment Corporation, information item. Any questions?
Agreed.
Thank you. Page 12-13, activity summary, corporate management, operations expenditure summary, $8.451 million. Mr. Bromley.
Thank you, Madam Chair. I just wanted to ask: I don’t see in the organizational chart, which is at the beginning of the document here, where the regulator is. I understand the Minister is taking on the regulator role from the NEB and I didn’t see a recognition of that office in the personnel summary either. I don’t know whether it’s in corporate management, and I’d be happy to ask my questions on that wherever it’s appropriate, but I thought I would bring it up at my first general opportunity here. Thank you.
Thank you, Mr. Bromley. Mr. Vician.
Thank you, Madam Chair. To the point the Member raised on the table on page 12-3, the organizational chart does reflect a reference to a regulator; however, the department and the GNWT are in the process today of making changes to the proposed arrangement, which would subsequently involve some changes to the proposed organizational design for the department. We would anticipate, through the Minister and through this House, coming forward with some changes to that matter in the coming session. Thank you.
Given that we’ve got 34 days left before this office would take over this responsibility, is there an interim plan? Thank you.
Yes, there is a full plan with regard to the ongoing and seamless transition of administration of oil and gas regulation in the Northwest Territories. We currently are in the final stages of an agreement with the National Energy Board and with the Alberta Energy Regulator, and those processes will be in place well in advance of the transition date and, in fact, would incorporate the National Energy Board’s ongoing responsibility during that transition period to ensure safety and environmental matters are fully overseen by an appropriate regulator. Thank you, Madam Chair.
I asked because sitting on the Standing Committee on Economic Development and Infrastructure, and I think it’s okay to speak about what we don’t know in those committees, I have not seen any briefing whatsoever on what’s going on with this 34 days before its implementation, and there’s been a huge about-face from the last time we were given a briefing. I have serious concerns about costs here.
The people aren’t here. The structure is not here. Is the budget here in this document?
Madam Chair, within the proposed funding for 2014-15 there is a provision for a $2 million allocation for regulatory responsibility and that’s included in the minerals and oil and gas portion of the main estimate proposal for that year, and that would incorporate the cost of the proposed contracts that I had previously mentioned. Thank you, Madam Chair.
Thanks for that information. I’m willing to hold further until we get to that page. I would like to comment, however, that this process is going on without Members being fully informed and having any opportunity for input in this major piece of work. So much for the government’s claim to be consulting with anybody. Mahsi.
Thank you, Mr. Bromley. Minister Ramsay.
Thank you, Madam Chair. I look forward to the Member’s questions at a later date. Thank you.
Thank you. Page 12-13, activity summary, corporate management, operations expenditure summary, $8.451 million. Mr. Yakeleya.
Madam Chair, my question is on the contracting services from 2012-13. We were at a low number and it increases quite substantially to 2014-15. Can the Minister just briefly explain why the spike in the contracting services?
Thank you, Mr. Yakeleya. Ms. Magrum.
Thank you, Madam Chair. I can respond to the breakdown for the $753,000 in ’14-15 Main Estimates. There are increases as a result of devolution. There’s an additional $200,000 in policy, legislation and communications sections related to increased activity responsibilities with devolution. Directorate has approximately $300,000 in contract services; PLC, policy, legislation and communications, has approximately $400,000; finance and administration, a small amount, $5,000; corporate services, $5,000; North Slave, $9,000; $13,000 in the South Slave region; $11,000 in Inuvik corporate management; $24,000 in Sahtu; and $30,000 in Deh Cho, so the increase from ’13-14 to ‘14-15 is largely the increase in the policy, legislation and communications. Thank you.
Thank you for the information. I wanted to ask with regard to the National Energy Board, I thought maybe that might be something that the Minister might have considered having some on-the-ground people in the Sahtu, in light of the oil and gas early exploration activities that are going on with the hydraulic fracking and other activities that would…(inaudible)…to having the National Energy Board closer in the Sahtu region, just to make things okay and give people some confidence and comfort that we are taking our issues seriously and that we have on-the-ground people with the National Energy Board there as activity is happening for a short period of time. Thank you.
Thank you, Mr. Yakeleya. Minister Ramsay.
Thank you, Madam Chair. That’s ongoing with the National Energy Board and we are making that effort. Thank you.
I appreciate the Minister’s response, Madam Chair. So, making the effort, would that then look at the possibility of having some period of time when the National Energy Board would actually be in the Sahtu, working out of there for a period of time, rather than coming from a different region or coming from Alberta or Calgary, coming up to the Sahtu? We need some man hours in the Sahtu for some comforting level of the ongoing operations with the oil companies.
Thank you, Mr. Yakeleya. Mr. Vician.
Thank you, Madam Chair. The proposal with the National Energy Board specifically speaks to their oversight of works in the Sahtu region particular to oil and gas exploration as it’s seen. We have conveyed to the National Energy Board our intent to see a permanent presence as it relates to activity levels. Those discussions are ongoing, will be part of the contract discussion, but at this point cannot commit to a position, but those discussions are underway. Thank you, Madam Chair.
Thank you, Mr. Vician. Anything further, Mr. Yakeleya?
Thank you, Madam Chair. This is my last question. Mr. Vician talked about a permanent position. I’m not too sure if that’s in the Sahtu or Yellowknife or Inuvik or in ongoing discussions with the National Energy Board. Need we remind the Minister that we are taking over this responsibility? We are in the driver’s seat. We’re contracting the National Energy Board. I think it works that we sign the cheque, so they should be able to go to work wherever we tell them to go to work. If they can’t do it, then we certainly can find other regulators or we can train our own people to do that work in the Sahtu. Thank you.
Thank you, Mr. Yakeleya. Minister Ramsay.
Thank you, Madam Chair. I will make the commitment. We need to get in front of committee to have a discussion about next steps, where we’re going and what is going on, and I look forward to the discussion, ensuring much more information in the days ahead with committee members on the regulation of oil and gas in the Northwest Territories post-devolution. Thank you.
Thank you, Minister Ramsay. Activity summary, corporate management, operations expenditure summary, $8.451 million. Agreed?
Agreed.
Agreed. Thank you. Page 12-15, information item, corporate management, active positions. Any questions?
Agreed.
Agreed, thank you. Page 12-17, activity summary, minerals and petroleum resources, operations expenditure summary, $19.349 million. Mr. Dolynny.
Thank you, Madam Chair. We were on page 12-17, right, Madam Chair? Thank you very much.
I just want to follow up on the question I asked earlier about the reinvestment of the Polar Bear Brand of diamonds. I did get an indication here that every dollar will be going back into investment. Once the diamond manufacturing plants will be operational, can the deputy minister indicate what sort of investment, once this money is flowing in, will be done to promote this brand? Thank you.
Thank you, Mr. Dolynny. Mr. Vician.
Thank you, Madam Chair. Historically, the department has worked closely with manufacturers in the Northwest Territories to promote the premiums brand of the cut and polished diamonds mined in the Northwest Territories. That would be the fundamental objective. We have achieved a premium value for the Polar Bear trademark. Part of that would be carried forward. Again, the process, in terms of what we’d do next, we’d be working closely with the manufacturers to determine what is the premium approach to marketing that brand. The Premier and the Minister have participated in efforts in the Asia market to promote our brand. We continue to see the brand taken up in the North American market as well as the European market. We would continue to do that, but with advice from the manufacturers on how to achieve that best possible return. The objective is to put a premium value on the mined, cut and polished diamonds of the Northwest Territories. Thank you, Madam Chair.
