Debates of May 28, 2004 (day 15)

Mr. Speaker, thank you. My questions this morning are for the Honourable Brendan Bell, Minister of Resources, Wildlife and Economic Development, and our Minister responsible for the tourism portfolio as relates to the difficulties now encountered by Aurora World Corporation and the GNWT's involvement in this corporation. I would like to ask the Minister what is the Government of the Northwest Territories' exposure in the difficulties encountered by this corporation? Thank you, Mr. Speaker.

Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Return To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. Obviously this is a difficult situation, but I think it's going to eventually be a good-news story going forward for the industry. We know that aurora visitation numbers have declined drastically, after 9-11 and other geopolitical events: the war in Iraq, there was also SARS and a number of events I think Mr. Braden has alluded to. Things have been a little more difficult since then, obviously. I think things are starting to turn around. I'm hopeful; I'm optimistic. Obviously this company had a couple of choices to make while things were improving. I think they felt that there was just too much to overcome, so they filed for protection from creditors under the Bankruptcy and Insolvency Act. Hopefully a workable business model will emerge from that. Obviously our exposure as a territory is twofold. There are a lot of people employed in this industry. We want to see it successful. We want to see it back up to pre-9-11 levels and even better in the years beyond. There are a lot of businesses that rely on this tourism. There are a lot of people whose jobs are at stake if the tourism sector isn't viable. As well, we are also a creditor, as the Member knows, so there is financial exposure in that respect, and obviously I have an interest in seeing us protect the public purse. Thank you.

Supplementary, Mr. Braden.

Supplementary To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. I want to thank the Minister for that response. I had asked what is the GNWT's exposure. There may be conditions in the business agreement that do not permit the Minister to disclose that. I would like to leave that question on the table, and further ask, Mr. Speaker, is the GNWT considering investing any new money in this corporation? Thank you, Mr. Speaker.

Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Further Return To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. I think the Member is looking for the amount of money owed to the government, or the BCC specifically, from this company. I am unable, because of our legislation, to give the Member the number. The Member will remember we have had many past discussions about the need to balance the privacy and the protection of proprietary interest with the need for the public to know. This is a difficult balance. I think it is a discussion that we'll continue to have going forward. I look forward to that discussion, but without the agreement of the parties involved, I can't divulge the amount of money. Thank you.

Supplementary, Mr. Braden.

Supplementary To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. What is the Government of the Northwest Territories doing to promote and sustain the continuation of the aurora tourism industry? Thank you, Mr. Speaker.

Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Further Return To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you. The Member will remember the $250,000 contribution that this government made at the end of the last assembly. It was for aurora recovery. That money was further levered through the Canadian Tourism Commission and amounted in what we believe is around $900,000 in investment spent both domestically and in Japan to try to reinvigorate the industry. We are hearing from the NWT Arctic Tourism Association and others that they believe this has been very successful. They are thankful for the support. Really the proof will be in the pudding with the upcoming season in terms of visitation numbers, but we're very optimistic that with this level of support that we'll have made significant inroads. Thank you.

Final supplementary.

Supplementary To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. It might be a bit early yet, but from my experience in the tourism industry, now is when the sales teams should be out there filling the order books for the coming season. Given the trends in world tourism, in local tourism and the situation at hand, Mr. Speaker, what information could the Minister provide on the viability and strength of this industry going into the winter of 2004-05? Thank you.

Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Further Return To Question 167-15(3): GNWT Involvement In The Aurora World Corporation

Thank you, Mr. Speaker. I would say that the individual tourism providers, I believe, are out at tourism shows. I know they will participate going forward and are out, as the Member indicates, with their sales books and trying to book tours for the upcoming season. My information, looking at the numbers from this past season, is that things are improving, if only slightly. We haven't seen the dramatic recovery that we were looking for, but I have spoken with two of the three operators who are involved in aurora visitation, and they are optimistic about the numbers and recognize that this may be a slow recovery but we're going in the right direction. Thank you.