Debates of February 6, 2008 (day 1)
QUESTION 1-16(2) Impact of Power Rates on the High Cost of Living
My question is directed to the Premier in regard to my statement considering the rate structure we have in the Northwest Territories, which is very unfair. In some communities you pay 15 cents; in other communities you pay $2.85. Because there are such vast differences in prices, we in the Territory have to seriously look at some sort of a system that's fair, equitable and affordable.
I would like to ask the Premier if he would consider the possibility of looking at levelized rates. It’s been done in other jurisdictions across Canada. It’s been looked at in the Yukon, Nunavut, Labrador and Newfoundland, and other places where we have isolated communities. It’s important that we tackle this issue in light of the financial situation we find ourselves in. This is something that we have to seriously look at.
I would like to ask the Premier if he, as Premier of the Northwest Territories, is willing, along with his cabinet colleagues, to seriously take a close look at this matter and try to find a solution to this problem.
The cost of living is an important factor in the Northwest Territories, as I stated earlier. We do have to look at how we try to either slow the cost drivers that are involved in delivering energy in the Northwest Territories or, in fact, change the way we develop power.
There are a number of things we can look at, as I talked about: a continued expansion of hydroelectricity in the Northwest Territories; or, for example, when the Mackenzie pipeline is built, we can run gas in the communities and displace the diesel fuel that's being used, as a potential option.
One of the other areas, which the Member touched base on, is looking at how the rate structure is done. I know that was discussed in previous Assemblies, but we as the government of the 16th Assembly would have to look at how we address that in the Northwest Territories, knowing that the costs continue to climb in that area.
As we know, there have been efforts in the past to look at this issue. There was talk about a one-rate zone, but the government of the time fired the whole board of the Power Corporation, so I don't think you'll want to try that again.
I would like to ask the Minister: will he look at an alternative, a one-rate-zone system, and consider looking at a levelized rate system in the Northwest Territories so that it’s fair, it’s transparent and everyone knows exactly what the real cost is? More importantly, how we can afford power in our communities instead of continuing to subsidize this power arrangement where it’s going to cost the government in the next two years $11 million a year by way of a subsidy?
I think we have to find a better use of that subsidy than simply continuing to subsidize people’s power and bring down the rates. So will the Premier and his cabinet seriously consider levelized power rates?
Mr. Speaker, the Member is correct that we do have to look at that rate structure. We do have an energy committee amongst cabinet. They’re looking at the whole area of energy and how it’s produced and delivered, and that can be one of the areas they look into. Ultimately, it will come to this Assembly for a decision if we’re to make any changes, so it would have to be this Assembly that would make a decision for any actual changes.
Mr. Speaker, as a Member I’m willing to bring a motion forward if that’s what it’s going to take to get this government to move. So I’d just like to put the Premier on notice that I will be bringing a motion forward, preferably next week, on this matter, and we can at that time debate it in this House.
Time for question period is not to make statements. I didn’t hear a question there.