Thank you, Mr. Speaker. We have, as the Member indicated, a contract with the Joint Venture group up in the Beaufort-Delta. No one has ever run a project of this type before with this type of material on this type of terrain, so this is absolutely a new thing for this North and for anywhere in the world actually. We brought in the experts that we think can work with that type of material. As the material is put on the road and embankments are built, it comes down. We recognize that we’re working with a budget that is limited and we have a small contingency. It’s that small contingency that we would rely on to keep this entire highway on budget. Thank you.
Thanks to the Minister for that response. The Minister mentions a small contingency, but I didn’t hear him reference basically what would happen if we get a number of change orders and we have used up that small contingency. What then occurs if we have more change orders or we have more cost overruns that are required? What exists in the contract that can guarantee to me, as a Member overseeing this project and looking after the finances of the government, what exists in that contract that will make me feel better about the fact that we are not going to have cost overruns? Thank you.
We do recognize that a project of this magnitude does have some risks associated with it. The only guarantee that we do have is that we’ve negotiated with the Joint Venture group, we’ve negotiated with a group of contractors, big contractors actually, that we felt were in the best position to build this highway with the amount of money that we were putting into the highway. That is the thing that we have to back us up. We can’t provide a solid guarantee that this is going to come right in on budget, but at this point this is how all contracts start. We come up with a price, we negotiate a price, the contractors tell us they can do it within that price and we’re confident that they can, so we proceed. Thank you.
I guess I have to say to the Minister that that doesn’t give me much comfort. What is the purpose of negotiating a price? What is the purpose of having a guaranteed contract if there is no guarantee that we won’t go over cost?
I understand that there are still a number of financial elements that are being negotiated that haven’t yet been finalized. I would like to ask the Minister what elements of the project are still under negotiation and have yet to be finalized. Thank you.
We do have a cost for all components. The one risk is that the material that would go on the very last application and the very top granular material is a little further away from the actual road than we would like. There could be some risks associated there, but generally we have our numbers and we are proceeding with the budget in every area at this point. Thank you.
Thank you, Mr. Beaulieu. Final, short supplementary, Ms. Bisaro.
Thank you, Mr. Speaker. I understand that there are risks. My concern is that these risks are out there. Once bitten, twice shy. I went through the bridge project, as did the Minister of Transportation, so I think he knows why I am a little circumspect.
I would like to ask the Minister, knowing that this is a big project, knowing it’s going on for a number of years, if he will be providing updates to Members and to the general public as the project progresses. Will he let us know not only how many kilometres have been completed, but an accounting of how much has been spent and whether the project is on budget? Thank you.
We have an oversight committee with Cabinet to ensure that our level, that we are continuing to communicate with each other, staying on top of the project. The project is cash-flowed, so the work that is scheduled is cash-flowed and we anticipate that we will be following the cash flow and the construction simultaneously, and at the end of the day, I am anticipating that the project will finish. If the project, in any way, shape or form, is starting to exceed the cash flow, we are going to know immediately. We also committed to continue to provide updates to the Standing Committee on Economic Development and Infrastructure. Thank you.
Thank you, Mr. Beaulieu. The honourable Member for Inuvik Boot Lake, Mr. Moses.
QUESTION 35-17(5):
INUVIK EMERGENCY
Thank you, Mr. Speaker. I have a follow up to my Member’s statement and I have questions for the Minister of Health and Social Services. With the emergency wet shelter happening in Inuvik and some of the research that’s been done in Alaska such as in Nome and Juno, how is the Minister staying on top of this pilot project that has already shown some great success in just over the two months in terms of services being provided as well as a number of residents and a number of things happening in the community such as less call-outs and disturbances, those kinds of things? How is the Minister keeping in contact with the health authority and other partners to ensure that the project is continuing to move in a positive manner? Thank you, Mr. Speaker.
Thank you, Mr. Moses. The honourable Minister of Health, Mr. Abernethy.
Thank you, Mr. Speaker. CEOs regularly communicate with the Department of Health and Social Services in all sorts of initiatives that are going on within their jurisdiction. This happens to be one of them. I do know that the community was very eager to have this shelter and was a proponent for doing it. We continue to have dialogue with the community organizations who have put this together and we are hearing positive feedback on a regular basis. I look forward to further discussions, or the Beaufort-Delta Health and Social Services Authority having further discussions with those organizations about future opportunities as well. Thank you, Mr. Speaker.
We’ve said in this House time and time again, I guess you could say we’ve criticized the government and the Department of Health with regard to a lack of programs and services in areas of mental health and addictions, specifically detox facilities. That is something we really tried to get to the point here. This project itself serves a great purpose in terms of detox under a supervised setting and also doesn’t exhaust resources of the RCMP or the medical staff at the hospital.
With such a great project in place where people can go if they are intoxicated – a wet shelter – and be supervised during the night, would the Minister be willing to commit further funding in future budgets to such a project, specifically the one in Inuvik which is already over the two months due to heating costs and other expenses, have already gone over budget with the money that was provided to them from the initial start-up costs from the health authority? Is the Minister willing to commit future funds to this project? Thank you, Mr. Speaker.
During this fiscal year that we’re currently in, we allocated $75,000 in the Beaufort-Delta for a day shelter in Inuvik, and the community approached us and indicated that they would prefer to actually have the damp shelter that the MLA is talking about. These dollars that were allocated in 2013-14 are ongoing funds, so when the budget is approved for ‘14-15, we will have the same dollars carrying forward. Thank you.
Thank you. As I mentioned in my previous question, the budget that this organization is already working with is already over budget with the initial start-up costs, and although we are going to continue to have this money allocated on a yearly basis, there are still some costs that need to be covered to ensure that the service is provided only during the winter months, but the heating costs in Inuvik, as we all know with the Inuvik gas situation, are pretty high. So, I was wanting to get a commitment on whether or not we will see extra funding going into this with this project moving forward. Thank you.
Thank you. As I indicated, there’s $75,000, and should the budget be approved for ‘14-15, there would be $75,000 for that fiscal year as well. As far as additional costs and additional start-up costs, I’m certainly willing to have a conversation with them, but we don’t currently have anything in the budget for additional costs above and beyond the $75,000 allocated. Thank you.
Thank you, Mr. Abernethy. Your final, short supplementary, Mr. Moses.
Thank you, Mr. Speaker. In my Member’s statement I mentioned how this can be the layout or the blueprint to lay out the framework for future shelters throughout the Northwest Territories and not just Inuvik.
Just to the Member’s previous question, in addition to Beaufort-Delta Health and Social Services Authority, I’d encourage the organizations who are interested in providing these shelters to apply to the NWT Housing Corporation’s Small Community Homelessness Fund to see if there are any opportunities there given that the individuals who are often attending these facilities are homeless.
As far as this being a template, I just want to remind the Member that as a government we don’t operate shelters. The authorities fund organizations who operate shelters to meet the needs of their communities, but as the Member has clearly articulated, this shelter is working and it’s getting some really positive results, and obviously we’re interested in learning from successes of ours as well as our partners and sharing that information as much as possible.
So, it is early days. We need to really see how this plays out over the long term. Today it looks good and we will continue to monitor and share information as it comes in. Thank you.
Thank you, Mr. Abernethy. The Member for Range Lake, Mr. Dolynny.
Thank you, Mr. Speaker. Earlier today I raised the issue of unresolved property damages in Yellowknife, Behchoko and Detah in the wake of an extended power outage on December 29, 2013. As indicated conservatively, 231 residents did come forward with approximately $350,000 in damages directly related to this outage. Now, I realize that regulated public utilities in Canada are not permitted to reimburse customers for property damage caused by weather-related incidents or acts of God. However, I believe in Inuvik some years ago a power surge caused significant damage to which NTPC took ownership and compensated all customers with damages.
So with this precedent in mind, when does the act of God cease and equipment failure begin? Can the Minister responsible for the Northwest Territories Power Corporation please explain to the House why it took over three hours to fire up the diesel-powered generators at Jackfish plant on the evening of December 29, 2013?
Thank you, Mr. Dolynny. The Minister responsible for the Northwest Territories Power Corporation, Mr. Miltenberger.
Thank you, Mr. Speaker. There was a triggering event out on the line caused by some of the heavy icing events that occurred prior to the cold snap, causing one of the cross members to collapse. It had a line on it which triggered a series of cascading events. We were not alone in the country as we experienced all of these significant severe weather events. Ontario, Quebec, the Maritimes, and on a comparative basis when you look at the three hours it took here to get things back and running compared to the, in many cases, weeks that it took in other jurisdictions, while it was unfortunate and long, given the cold snap, on a comparative basis I think we were very fortunate that everything was up and running in the time that it did take. Thank you.
I thank the Minister for elaborating on the triggering event and we’ve heard about cascading events, which lead me to believe that we did have faulty equipment that caused an extended outage for no reason. Again, to compare other outages across Canada, minus 30 or minus 40 to minus 3 is not comparable.
Can the Minister indicate whether his office or NTPC has performed a full cost accounting of this recent power outage to evaluate the extent of current and future damage caused either to residents or to business, and if not, why? Thank you.
Thank you. I would suggest that when the power goes out in the wintertime, while the temperature is a variable, when you have no power in some cases for weeks, it is a crisis event. Up in the Northwest Territories, here in Yellowknife and Behchoko, we had the power on in a range of three hours, and we have watched with interest as the Member has solicited his feedback and input from the public about costs. We have some direct contact with folks that have raised concerns, but we did find the letter by the executive director of the Chamber of Commerce that was sent to all MLAs, including the public, that set the framework for what acts of God and how all costs would be put onto the ratepayers helped clarify that issue and was very helpful. Thank you.
Thank you. I’m unaware that we get our directions from the Chamber of Commerce when it comes to our business. But that letter was good, indeed enlightening to read here.
Can the Minister indicate if the concept of an income-tested or a contingency fund disaster relief directly associated with such things as an extended power outage at extreme cold temperatures has ever been discussed with this government? Thank you.
No, Mr. Speaker.
Thank you, Mr. Miltenberger. Your final, short supplementary, Mr. Dolynny.
Thank you, Mr. Speaker. As I thought. Given that the reported damages of almost $2 million, and given the fact that we heard today that faulty equipment is to blame for NTPC’s diesel generators not working property, and given that this government has not performed any cost accounting with this recent disaster, how can the Minister sit here in this House and indicate very little to satisfy public outcry for financial help? What is this Minister prepared to do to mitigate the situation? Thank you.
Thank you. The NTPC takes its responsibility as it does very, very seriously about keeping the power on. There was an enormous amount of effort and time put into place to make sure that the power was put on in what I see on a comparative basis a very timely way. The issue of acts of God versus man are a debate we can have separate from this issue and we are learning from this exercise, as well, this unfortunate incident, in terms of adding improvements and more investments into the system. We’re going to continue to provide a high quality of service. Thank you.
Thank you, Mr. Miltenberger. The Member for Nahendeh, Mr. Menicoche.
Thank you very much, Mr. Speaker. I’d like to ask the Minister of Transportation some questions on the construction of the Trout Lake Airport project. As the MLA, I was very proud of the work that I’d done with my colleagues to get the airport project on the books in 2008. Construction started in 2009 and here we are five years later, it’s not scheduled for completion until next year. That’s a six-year project. Yellowknife gets a new bypass road that’s completed within the year. The government wants to build the Inuvik-Tuk highway, almost $300 million, in four years. Why is my airport taking six years?
Thank you, Mr. Menicoche. The Minister of Transportation, Mr. Beaulieu.
Mahsi cho, Mr. Speaker. The work on the embankment of the Trout Lake Airport is now about 95 percent complete, but we did run into some issues with the material. The material that was being used when the construction originally started on the Trout Lake Airport was not of the quality and quantity that was acceptable to the department, so we had to deal with that issue. Now that we’ve had some delays because Trout Lake is not on an all-season road, there are certain times when we can get certain equipment into the community. But the delays are there. We’ve had weather issues, as well, but the bottom line is that that project will be finished in the fall of this year.
That’s kind of a weak answer. The people, we want a win-win situation where we’ve got a nice capital project, the community wins, the government wins, but building for five years… That is just completely unacceptable. Working with the community and the community meetings, there’s a management team in the Department of Transportation that continually delays these.
I’d like to ask the Minister, can he do an assessment of the management team and see why this project is taking so long? Colville Lake doesn’t have an all-season road. Their airport was built in two years, so was Deline. I’d like some answers from this Minister. Thank you.
If the material to construct the airport is good material then the issue of them being off an all-season road is not an issue. However, if the material was not proper material then that becomes an issue, and that’s all I was trying to indicate.
I will go back to the department and look at the management team. We recognize that the Department of Transportation continues to work with the Sambaa K’e Development Corporation and also the contractor. Our organization, the contractor and the local development are working together to try to get this job done as quickly as possible, and the intention is to finish that airport this year.
I look forward to the Minister’s internal assessment, because that’s what the community is telling me, that there’s a bottleneck there every time they want to do something. In fact, this gravel haul should have been done two years ago, but it was the department that kept stalling and putting it off and then finally the weather got too warm that they couldn’t do it. I’d like to ask the Minister, can he assess the whole project and why is it taking so long?
I will commit to reviewing the entire project, review that entire project with our senior management team from Yellowknife, and we will report back to the Member in detail as to where the delays occurred in the construction of the Trout Lake Airport.
Final, short supplementary, Mr. Menicoche.
Thank you very much, Mr. Speaker. If the Minister had said it was going to be completed this year, I would like him to meet with the community and myself and say that’s what is going to happen, because the reports I saw, it won’t be completely completed until next year.
Yes, the indication I have from the department is it would be completed in 2014. I would be pleased to meet with the community to advise them of that as well.
Thank you, Mr. Beaulieu. The Member for Hay River South, Mrs. Groenewegen.
Thank you, Mr. Speaker. As I briefly alluded to in my Member’s statement, the population of the Northwest Territories is declining. This presents problems on many fronts for us as a government. I’d like to direct my question to the Minister of Finance and ask him if he has, and I’m sure he has… I mean, I have my theories about why the population is going down, but I’d like to ask the Minister of Finance if his department has done some extensive analysis of this situation and what kinds of reasons are emerging for this decrease in population.
Thank you, Mrs. Groenewegen. The Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. There are a number of areas that have been a source of persistent concern in regard to the issue that the Member raises. Things like the fly-in/fly-out population, things like our own vacancy rate, things like the amount of students that we pay to go to school, as the Member indicated in her opening comments, that we don’t recruit back here. We need to do a better job. We’ve put in place an immigrant Nominee Program, as well, that we believe needs to be improved and beefed up so that it can, in fact, help address some of the many jobs across government, not only across government but across the Northwest Territories, including industries that are currently going begging. Those are sort of four major areas.
The Minister of Finance cites many of the obvious reasons why our population is going down. I was just wondering: within the government, in order to come up with some creative ways to address this problem, who will be taking the lead role in addressing this? Like I said in my Member’s statement, we can be very optimistic and excited about the future of the Northwest Territories, but the fact is we are going to be challenged in many ways if our population continues to decline.
The Premier has given me the responsibility of being the chair of the Economic and Employment Development Committee of Cabinet, and this issue falls under the mandate of that committee, so I will be chairing that committee, and the deputy minister of Finance will be chairing the committee of deputies. If the Member would be patient for one day, in the budget address I would provide greater clarity as to the intent, how to proceed on this particular issue.
