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.
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.
The Member for Great Slave, Mr. Abernethy.
