Debates of May 27, 2008 (day 16)

Date
May
27
2008
Session
16th Assembly, 2nd Session
Day
16
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, Mr. McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Hon. Norman Yakeleya.
Topics
Statements

I’d like to recognize Mr. Jim White. He’s the executive director of the Yellowknife Housing Authority here in Yellowknife and has come to a number of sessions. He does a good job down there.

Sorry to disappoint Mr. Abernethy, but I’d also like to recognize Mr. Blake Lyons as my constituent.

Speaker: Mr. Speaker

If we’ve missed anyone in the gallery today, thanks for being here. I hope you’re enjoying the proceedings. It’s always nice to have an audience in here.

Oral Questions

Question 192-16(2) Devolution and Resource Revenue Sharing

Earlier this afternoon I spoke about the impact that the diamond mines have on the Tu Nedhe riding in relation to the diamond industry and the resource revenue arrangements for the NWT. I’d like to ask the Premier if he would tell us what discussions his government has had with the federal government regarding resource revenue sharing.

Speaker: Mr. Speaker

Thank you, Mr. Beaulieu. The Hon. Premier, Mr. Roland.

We’ve had a number of discussions, both with the federal government as well as with the regional aboriginal leadership, around the issue of devolution and resource revenue sharing. I’ve had an opportunity to speak with the Prime Minister on this issue, as well as with Minister Strahl, regarding devolution and resource revenue sharing. We continue to have some discussions and try to see where we may be able to move this file.

Can the Premier tell us: what is the position of this current government with respect to resource revenue sharing?

The first position we came forward with was one to see where we were as the Government of the Northwest Territories, have an initial meeting with the regional aboriginal leadership and see if there was continued support from the groups on moving forward with this file. In the last government there was a proposal sent forward to the government. We had that discussion. We know the same groups continue to be on side. Others say they’ve got other initiatives to proceed with before they want to see this file moved along. So we’ve had that discussion.

From our perspective, as Members know, we’re looking to improve programs and services across the North. We know we need a new revenue source. We continue to work along the lines of wanting to move this file forward and, hopefully, bringing it to a conclusion so all Northerners can benefit from the development that happens here in the Northwest Territories.

Can the Premier tell us what impacts resource revenue sharing could have on our budget and our current transfer payment system?

Past numbers have been put out there; for example, dollar figures in the area of $224 million a year that flow to Ottawa in the form of royalties. Now the federal government says the Norman Wells situation has to be excluded from that. We look at the last public accounts that were filed with the federal government, and the most recent figure that we’ve seen from the other mining industries has shown that it’s been in the neighbourhood of $34 million. You take a look at the equalization program that has formulated along with the territorial formula financing, and the inclusion and exclusion — 50 per cent included and 50 per cent excluded. That means, for example, the last public account number of $34 million: if you split that in half, that’s how we would benefit in the North.

Just a question for the Premier on whether or not the $17 million benefit as a result of resource revenue sharing is a full increase of what we get now or if that’s what we’re going to get — period.

Under the existing scenario it would fluctuate year to year, depending on what the industry in the North pays to the federal government. It did at one point — I believe it was 2003–2004 numbers — and then we combined it with the mining, oil and gas development in the North, along with Norman Wells, and we came up with a figure of approximately $224 million.

Estimates have been made. For example, if the Mackenzie gas pipeline falls in place, that could almost double or even go larger, depending on the royalty rate that’s put in place. But we know, for example, that royalties aren’t paid until some of the corporate costs are paid off. That’s what happened, for example, with our mining industry. So if they reinvest again, as the mines have done in the North, we’ve also seen the reason for the drop in the royalty payments.

Speaker: Mr. Speaker

The Member for Great Slave, Mr. Abernethy.

Question 193-16(2) Cost of Maintaining Vacant Housing in Fort Resolution

My questions today are to the Minister Responsible for the NWT Housing Corporation and relate specifically to the houses that were constructed in Fort Res that now sit vacant. It’s my understanding that at least three of these homes were built by the Housing Corp. through the home ownership program and that, once constructed, there were no eligible candidates to actually take over those houses. So they’ve been sitting vacant for two years.

My question to the Minister is: what criteria are used in determining which community these homes are built in, in anticipation that they will be purchased through the home ownership program?

Speaker: Mr. Speaker

Thank you, Member. The honourable Minister Responsible for the Housing Corporation, Mr. Miltenberger.

Thank you, Mr. Speaker. There are a number of criteria. Availability of clients would be one, of course. Another key piece is the whole issue of land and the interest by the community.

Once again to the Minister Responsible for the Housing Corp. Clearly, in this case there were no eligible candidates. I’d be curious, first, why they were actually built in that community.

Secondly, now that we know there are no candidates and the houses have sat vacant for two years, I’m wondering what the Housing Corp. is planning to do and whether they’re planning to work with, say, Education, Culture and Employment to find alternative uses for those houses. Every day that we leave those houses vacant and we have to pay for heat, it costs the government. So what are the plans, and how does the Housing Corp. plan to dispose of this asset, whether through selling it or giving it to another department to use it another way?

There are a number of possibilities that are being considered. In other communities we have rented the units to professionals, those who want to rent it at market rent. We’re possibly looking at replacing some of the older units, those that aren’t worth fixing, with public housing, because O&M money is a significant issue. We have to keep our portfolio in check. We’re prepared, in some cases, to sell the units if there’s interest in the community as well. So there are a number of options that are available.

I was wondering if I can get from the Minister some sort of commitment as to when something might actually happen with these houses. The longer they sit vacant, the more they cost us. At a time of fiscal restraint it seems like a bit of a poor use of our public funds. Can I get some commitment or a timeline on when we might see those assets disposed of in some way?

Mr. Speaker, I will commit to provide to the Chair of the Social Programs Committee a brief note that lays out the plan for the units in Fort Resolution.

Speaker: Mr. Speaker

Thank you, Minister. The Member for Frame Lake, Ms. Bisaro.

Question 194-16(2) Housing for Families with Disabled Parents

Thank you, Mr. Speaker. I’d like to follow up on the Member’s statement by my colleague Mr. Krutko. As he stated, there’s certainly recognition that the availability of housing for disabled persons is a problem in the Territories.

Within Yellowknife the Housing Corporation recently built an eight-plex unit that was specifically earmarked for people with disabilities. That’s great that it was built, but these eight units are only open to people who are single or who are married couples. I’d like to ask the Minister for the Housing Corporation how a disabled single mother with children would be accommodated under this scenario.

Speaker: Mr. Speaker

Thank you, Ms. Bisaro. The honourable Minister Responsible for the Housing Corporation, Mr. Miltenberger.

Mr. Speaker, every effort would be made to accommodate the hypothetical scenario put forward by my colleague. I’d need a bit more of the specifics to be able to look at exactly what may be available not just for those particular units; there may be other options as well in Yellowknife.

I understand that things have to be looked at, but this family is currently housed in public housing. They have a lease that is going to be expiring on the 30th of June, and they’ve been advised that their lease will not be renewed. I’d like to ask the Housing Minister what policy or what restrictions are in place that would force this family to move out of their home.

Mr. Speaker, if the Member would give me the particulars outside this House, I would be happy to check into those issues she’s raised. I can’t answer specifically in this House. She’s referring to some folks who are clearly in need, but it’s an issue for which I need particulars I could track down. It’s not appropriate to talk about those particular issues in this House.

I will follow up with you.

I’d like to know whether or not the Minister can advise if there are any plans in the near future to build housing units within the city of Yellowknife for families where the parent or parents may be disabled and they happen to have children — two children, let’s say, or three or four.

Mr. Speaker, we’re in the final year of the fiscal year we’re currently in of the Affordable Housing Initiative. I don’t have, off the top of my head, the configuration of what’s actually been planned for the city of Yellowknife, but I’ll commit, once again, to get that information, and I’ll provide it to the Chair of the Social Programs Committee so he can share that information.

Speaker: Mr. Speaker

The Member for Kam Lake, Mr. Ramsay.

Question 195-16(2) Accumulated Deficit at Stanton Territorial Hospital

Mr. Speaker, my questions today are for the Minister of Health and Social Services. It gets back to my Member’s statement from earlier today, when I talked of the accrued deficit that’s building up at Stanton Territorial Hospital. It’s nearing 11 and a half million dollars. I mentioned earlier that it was just two and a half years ago that Members of this House approved millions of dollars to help address the deficit situation at Stanton through supplementary appropriation.

I’d like to ask the Minister, first of all, what is the government’s plan to address the 11 and a half million dollar deficit that’s been allowed to accrue due to mismanagement or underfunding at that hospital?

Speaker: Mr. Speaker

Thank you, Mr. Ramsay. The honourable Minister of Health, Ms. Lee.

Mr. Speaker, over the last two or three years, as the Member stated, the Stanton health authority has been experiencing a significant amount of deficit. It did have surpluses even before that. The government, over the years, has provided infusions of cash, but it was thought that it was important to figure out exactly what was causing the deficit — whether or not the authority was being underfunded or whether there were others ways to control the growth of spending. So there has not been any infusion of cash while we’re going through this.

I would like to advise the Member that I believe the document to deal with the deficit is now in the hands of the standing committee, and we will be able to debate and then work on that issue during the life of this session, Mr. Speaker.

Mr. Speaker, the Minister mentioned that we haven’t provided an infusion of cash, but just two and a half years ago we spent millions of dollars as an infusion of cash to address the deficit at that hospital. I’m asking the Minister: what is the government’s plan today to address the 11 and a half million dollar deficit at Stanton Territorial Hospital?

Mr. Speaker, when the Member states that the government has given millions and millions of infusion, I think it should be noted that it was in the amount of about $1.3 million two years ago. The policy is that each authority has to be responsible for 50 per cent of a deficit. That’s been the policy that we’ve been following. I think that it was incumbent on the government to know exactly what was causing the cost overruns not only with the Stanton Territorial Health Authority but also with the Beaufort-Delta Health and Social Services Authority, which has another significant deficit, as well as some of the minor ones.

Mr. Speaker, I can advise you — and the Member is well aware of this, because I did provide a briefing to the Standing Committee on Social Programs on April 30, where the Member was present. I did go through the initial findings of the zero-based review, which did review some of the spending questions. I have appointed a new public administrator with a very wide mandate to look at more details into what might be possible reasons. I have asked that the public administrator make recommendations to me within three months, which I have committed to the committee to go back to.

Mr. Speaker, I’d like to thank the Minister for letting everybody know that I attended that committee briefing. Thank you.

I also wanted to ask the Minister — and she mentioned it. Between a year and a half and two years ago, when it appeared through a supplementary appropriation, and today, what is causing the cost overruns and the accrued deficit in our health authorities? The Minister should know what is causing that, and we should be able to address it, Mr. Speaker.

Mr. Speaker, I believe this is an issue about health care costs. It’s not about a this-side or a that-side issue. It’s a consensus government issue, and it’s one that we need to work on together.

I can tell the Member, Mr. Speaker, that the zero-based review has given us an idea about how much shortfall the authorities are experiencing, and it’s strictly financial cost accounting kind of information.

I need more information, more detailed information, as to whether or not there should be changes needed in the way we deliver our programs, whether we should be delivering the programs that we are, and if not, how. Should there be amalgamation of programs, or are there programs that we can no longer afford? Are there other ways of doing this? Those are the kinds of questions that the Member should expect the Minister of Health to do. I am doing that. I will have those results, and I will be reporting to the House through the committee.

Speaker: Mr. Speaker

Final supplementary, Mr. Ramsay.

Thank you, Mr. Speaker. I guess it’s consensus by convenience some days in the Legislative Assembly of the Northwest Territories.

I’d like to ask the Minister: who today is currently paying the payroll at Stanton Territorial Hospital? Thank you.

Mr. Speaker, as the Member has already stated — and this is public information — Stanton territorial authority has an accumulated deficit of $11 million, and it is not able to make all of its payrolls. FMBS is assuming that responsibility at the moment. Thank you.

Speaker: Mr. Speaker

The Member for Nahendeh, Mr. Menicoche.

196-16(2)

Mr. Speaker, my questions today are for the Minister of Transportation. I’ve been getting numerous phone calls from the community of Wrigley. As well, I’ve received a petition with regard to the N’Dulee ferry not being operated, and they’re very concerned about it being delayed a week already. They do not know how much longer it’ll be delayed. If the Minister can answer that question. Mahsi.

Speaker: Mr. Speaker

The honourable Minister of Transportation, Mr. Yakeleya.

Mahsi. Mr. Speaker, the N’Dulee ferry has undergone some major refits. I’d advise the Member and the good people of Wrigley that our department has put a lot of resources into this issue. We’re keeping the community of Wrigley and also the Member updated on the status of when we can get the ferry into the water to deal with the issue of their children going to Hay River for the track and field event.

Absolutely that’s the content of the petition. The schoolchildren are very concerned about making the track and field event, which is one of the best attended events in our North, and with our gracious host.

Once again, the communities still don’t understand why the department waited until springtime to conduct these repairs when they should have been done before and not interrupt the travelling public, not to mention the residents of Wrigley who want to get out, too, for their grocery shopping, et cetera.

Mr. Speaker, our first priority within the department is the safety of our facilities, our streets, our roads.

When we originally looked at the refit for the N’Dulee ferry, when the scope of work was laid out, it was planned that we would do this before any of this type of delay would be happening for this specific ferry.

When we looked at the refit and saw that further work needed to get done within the ferry, that required us to put in extra resources and time, and those other circumstances that happened are out of our control.

Again, we want to make sure that we do a proper job. Safety is number one, and sometimes it does make it inconvenient for people in small communities.

I come from a small community in our region, in Sahtu, and we are also aware of these winter roads and the undue circumstances that happen that hinder our transportation of goods — and people to events such as the well-attended event that is happening in Hay River.

Well, the next logical question. They’ve been telling me: “Our trip’s been interrupted. We’ve done our planning; the department didn’t. Is the department willing to contribute to some of the costs of getting us across the river, getting us to our sporting event?” Indeed, constituents are also asking for assistance to get out, because it’s not their fault, Mr. Speaker.