Thank you, Mr. Yakeleya. Mr. Ramsay.
Thank you, Mr. Speaker. I wanted to take a second to recognize Mr. Darrell Beaulieu. Darrell is also the chair of our Business Development and Investment Corporation and I know Margaret Gorman is with him from DDC. Welcome.
It often doesn’t get said, but I want to recognize Anthony W.J. “Tony” Whitford. He is my predecessor in the riding of Kam Lake, the last guy to serve as the MLA for Kam Lake. Welcome to the House.
As well, Jackie Milne. I know others have said she’s a real champion of agriculture here in the Northwest Territories and I want to welcome her to the House, as well as David Wasylciw as well.
Thank you, Mr. Ramsay. Welcome everybody here in the gallery. Thank you for taking an interest in our proceedings here today.
Thank you, Mr. Speaker. I’d like to ask a question to the Minister of Finance. On page 11 of the budget address in the fourth paragraph the Minister talks about the fiscal sustainability, meaning that growth in the total operations and maintenance budget, including compensation and benefits paid to employees, must not exceed our revenue growth.
I want to ask the Minister if he could explain to the House what ideas or what things can be considered to not exceed the benefits and compensation to our employees due to the lack of our growth in revenue.
Thank you, Mr. Yakeleya. The Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. Clearly, one of the biggest single costs in the government is in fact what we pay for our staff of over 5,000 employees, so having affordable compensation packages are going to be critical on a go-forward basis. As well, we have to clearly collectively look at the vacancy rates and then, by extension, as we’ve talked about but very rarely, move in a comprehensive way. Look if we have to make choices as part of programs and services and what’s critical and more of a priority to us, and if there needs to be some retrenching of our mandate, what would that be. Those are the areas that would be included. Thank you.
Mr. Speaker, I would ask the Minister of Finance, given the situation in which we may be in on a going-forward basis, does that mean everything is on the table with regards to the number of employees we have, compensation and benefits and programs and services that we’re going to deliver and sustain in our communities and that it might mean that we’re going to have to freeze or pause on our hiring with our employees in the Northwest Territories?
Yes, if we’re going to do this in an even-handed, comprehensive way, all things will be on the table. We need to look at all solutions and how creative we can be. Things that the Member has touched on would be some of those factors to be considered. We can leave no stone unturned as we look at fiscal sustainability and, at the same time, honouring our commitment to protect the programs and services.
We have to come to a hard decision about limits to growth, how big a civil service can we afford. Even though we’ve had restraint, every budget, including this one, has some positions in it. Every MLA, myself included, pushes hard to get government jobs in our communities and in our constituencies, which is all well and good through decentralization and those things. Every Member has asked, even though they know what our budget constraints are.
We need health centres, housing. You name the issue; we need those kinds of investments. So this is not a task for the faint of heart, but it is one that we’ll have to apply ourselves to. Thank you.
I think the Finance Minister has clearly laid it out on page 11 and he has had some discussions with us, and those are the choices that the Finance Minister has written about, the difficult choices that the Assembly will have to make.
I want to ask the Minister, given this reality, when will this exercise start to happen or we’ll start to see some beginning of what we have to start making decisions about?
Mr. Speaker, this process is started. We’ve been using passive restraint and fiscal prudence discipline. We’ve been working on that. Things have changed in southern jurisdictions that have affected our formula, the original escalator in terms of the money they spend, and other things that are dragging down our formula overall. Our own-source revenues are growing at about 3.7 percent. They’re projected to continue to grow. But when you look at some of the fiscal problems down south with the larger provinces, other provinces where they have severe challenges with their own budgets and debt and balancing their books as well as what the federal government is doing, it means we’ve been on this for a while.
So it starts now. I mentioned to the press this morning, we already have in Fort Smith the local housing folks on strike. We know we have collective agreements coming due, starting right away with the Power Corporation, and very shortly after that as we move forward into the 18th Assembly just about all the collective agreements are going to come due. We’re going to need to sit down and negotiate fair but affordable agreements that are going to reflect the need to keep our expenditures and our revenues in sync. We cannot have our expenditure growth exceed our revenue growth. That discussion is going to happen and that will lead to looking at how we manage the programs and services, things like vacancy rates, if we have to make choices, what are they? But there are very real things that are now underway and this budget, we’ve been setting the stage for that and this budget continues to lay out that plan.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Yakeleya.
Yes, indeed, Mr. Speaker. The Minister is correct that we’re going to have to make some real hard, cold fact decisions and some things that we know for sure that just need to stay in our communities or in our centres.
I want to ask the Minister, given that what he’s portraying right now, is that something that we need to look at within our Crown corporations or agencies and say it makes sense? I know one of the issues right now, the Minister of Health is putting the health boards together to reduce the cost and make it more efficient.
Do we look at that type of avenue with, say, our energy sectors and our other areas that we know that makes a lot of sense for our small territory?
Everything that’s funded by GNWT money, I believe, has to be considered. We talked about leaving no stone unturned. That doesn’t matter if it’s the Power Corp, the health boards, divisional boards, housing folks. It doesn’t matter. We have to make sure that we manage all the money. This body votes on every penny that runs those 5,000 employees, all our boards, agencies and our own government departments, so we have to look at them all. As the Member asked, are all options on the table, and the answer is, once again, yes.
Thank you, Mr. Miltenberger. The Member for Range Lake, Mr. Dolynny.
Thank you, Mr. Speaker. As we heard in today’s budget address, energy is now the new activity in the Public Works and Services portfolio. This new role appears to contain, as we are told, the new fuel services division, formerly called the petroleum products division. It will now look after energy conservation. We’ve heard about efficiency programs, alternative energy solutions and things about energy policy and planning. All these energy initiatives were previously fragmented throughout the GNWT, and because of these new found powers, my questions will be for the Minister of Public Works and Services.
I can understand the rationalization of trying to accumulate all the fragmentation of our energy programs, but to the question, if the Minister can answer here, what is the rationalization of putting energy now into Public Works and Services?
Thank you, Mr. Dolynny. The Minister of Public Works, Mr. Beaulieu.
Thank you, Mr. Speaker. In June 2013, a recommendation came from the Standing Committee on Priorities and Planning from the Regular Members. It recommended that Energy, Mines and Petroleum Resources be created into a separate department. Cabinet looked at that in May of 2014 and looked at that recommendation and made the decision that we would consolidate one of those functions, well, two of them actually, the energy and the petroleum into Public Works, so that was the reason for us making that move over to creating that division under Public Works and Services.
We’ll probably dissect that question more as we get into the budget, but how does the Minister plan to coordinate with departments such as Industry, Tourism and Investment, Environment and Natural Resources and the NWT Power Corporation, especially on energy policy and all these initiatives?
Actually, we feel that with these three divisions consolidated under one area of Public Works, it would be easier to develop comprehensive energy policies and strategies. We find that we’ll also be able to synchronize our planning for all of the energy functions. We also will be bringing people from ITI, three positions from ITI that were in energy policy and planning, along with the Northwest Territories Energy Corporation and positions that were there, along with one position from Environment and Natural Resources.
Thank you to the Minister. As I said earlier, PWS oversees its new Fuel Services Program, previously known as the petroleum products division. This Fuel Services Program deals with NWT communities not accessible by the private sector.
Can the Minister indicate how he intends to track the cost of fuel in these communities?
The petroleum products division will become the fuel services division, so all of the functions at this point where we’re buying fuel from the rack and then delivering and then having distribution at the community level, those costs and then the functions and the positions that are directly associated with those functions of delivering fuel to the communities will be the cost of fuel, and that’s how we will continue to determine the cost of fuel in these communities that we provide fuel services to.
Thank you, Mr. Beaulieu. Final, short supplementary, Mr. Dolynny.
Thank you, Mr. Speaker. Can the Minister indicate if he intends to make the cost of fuel in communities more easily accessible, more transparent to the public to view?
Yes. We try to, within the rules and the regulations that govern the revolving fund, we have some flexibility, so as now, when the opportunity comes where we anticipate the fuel costs continuing to go down for a little bit more, we’re lowering the cost of fuel for all of the communities where we provide a service, and the cost is going to be lowered from anywhere from seven cents to nine cents a litre at this time and anticipating some more costs of fuel being lowered when the delivery actually occurs.
Thank you, Mr. Beaulieu. The Member for Yellowknife Centre, Mr. Hawkins.
Thank you, Mr. Speaker. I’d like to ask some questions to the Minister of the NWT Power Corporation. Oddly enough, it’s not actually on rates, so those concerned can feel comfortable it’s not about that or, yeah, those who can feel a little at ease.
Late last year we were given the terribly shocking news that the government may have to look at bailing out the potential rate rider that would have carried about $20 million on the Power Corporation, and that would have been about $10 million each year. Since that time of the experience that led us to the particular problem, oil prices have significantly dropped.
My question for the Power Corporation Minister is: It was banked on that it was approximately $10 million each year to cover the shortfall through the generation of power, so I’d like to know what type of analysis is being done, because I guess we gave approval for $20 million, $10 million each year, to be spent to make up that shortfall in power. I guess we don’t need all that particular money, so what type of watch is happening, how much money are we actually saving from that initial $10 million each year that we gave them to spend? Because if you’re not spending it, I’d like to know what’s happening to it.
Thank you, Mr. Hawkins. The Minister responsible for the Northwest Territories Power Corporation, Mr. Miltenberger.
Thank you, Mr. Speaker. We will spend what is needed, so the volume will depend on the temperature. For example, when I came in here Tuesday from Fort Smith, it was about 40 below, and when I came over the hill every smokestack at Jackfish was going flat out with a great big plume of smoke, so it depends on the consumption.
There have been some projected savings with the cost of diesel. Diesel hasn’t come down as much as the price of oil. We’re tracking that. We’ll account for every penny and litre that we use and burn on an as required basis.
Ten million dollars has not gone into the NTPC coffers. It will only be done based on actuals and invoices, so it will all be accounted for, and we’re paying very close attention to that projected savings.
Once again, depending on the cold and what’s happening with fuel prices, it could be in the neighbourhood of $900,000 or maybe $1 million, but again it depends on a number of factors that we don’t control. Thank you.
Any savings is certainly good. Usually when Members approve a supplementary appropriation, we usually say goodbye to the money because we never see it again. The issue really is about accounting, and I’m glad to hear it’s going to be drawn down by bills and actuals.
When can the territorial residents and, more particular, when can the Members see the accounting of at least this first year? It’s difficult to predict next year, but when can we see the accounting and results of that particular money, because we want to make sure this money is being spent on what it’s intended for. Who knows where it goes once we give approval to it and that’s really the issue.
I would just like to clarify for the record for my young colleague for Yellowknife Centre, that a point of fact is when supplementary appropriations are voted on, we do see them, we see them visible all around us. They help us provide services to adults down south for health. They help fund projects. They help move money forward in the budget, so we can do the Tuk-Inuvik highway. Every cent that we put into supplementary appropriations and approve in this House is visible and brings added value to the Northwest Territories.
With regard to the Members, if there’s a wish, we can pull together an accounting today, if you’d like, but we’d be more than happy to meet with committee. I understand there’s a meeting coming up with the Power Corporation with the committees. We can have them make sure that they have that information at hand for committee members. Thank you.
Knowing the rules of the House as I do, I can’t speak to a specific example made in committee once, but the deputy minister said if they have money left over for a particular initiative, they just keep it. So that’s the point of this exercise and why I’m asking about this particular money, to make sure it’s accounted for properly. If all the money isn’t required – we went on good faith to support it – we’d like to see what isn’t used and returned to the good balances of the people of the Northwest Territories.
As far as reporting it, I’d be personally satisfied if you could report it when it’s completed in the cycle of the season. Thank you.
Once again to my young friend from Yellowknife Centre, my political life exceeds his by a couple of months and I can say to him with some certainty, plus some time in government, the rule that I’ve seen is the Legislature has been very careful all along that they always coffer the money. One of the conditions in the FMB that comes to the House is the money is spent on what it is voted for and if you don’t use it, it goes back. If you want to change the use, then you have to ask. So I will make sure that the staff of NTPC are ready to address the issues when they meet with committee. Thank you.
Thank you, Mr. Miltenberger. The honourable Member for Hay River North, Mr. Bouchard.
Thank you, Mr. Speaker. My questions will be for the Minister of Finance on a few things that were in the budget. The first thing I have is about the moving of the territorial parks positions to Hay River.
Can he indicate to me how many positions that includes?
Thank you, Mr. Bouchard. The honourable Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. It’s still in planning, but it will be at least two positions.
I would just like to get clarification on the scheduling of when this would happen and when we would get a report on how that transition will happen.
Work is being done in terms of the planning and potential notification, pending the passage of the budget and April 1st kicking in. If there are people that have to be moved or housed or relocated, those kinds of things, it could take as long as 18 months or two years to make the final move. Political commitment has been made. If the positions are vacant, things may move faster. The Minister of ITI would be well able to speak to that issue when his budget comes before the House. Thank you.
I look forward to those questions in the House. The Minister stated in his budget address, the 2,000 people plan.
Can he give us a bit of an update on where that plan is? Ms. Bisaro discussed this as well. Where are we at? We are one year in. Have we made any successes in getting 2,000 more people to live in the Northwest Territories?
The first year has been a planning year and we’ve been working with industry and we are looking at changes to the procedures. For example, in Human Resources, where we want to be able to go south to job fairs or recruiting, that we’re going to empower the folks that go down there to look at the resumes and do interviews. If the people meet the criteria, then a conditional job offer can be made pending the checking of references. That’s as opposed to the current process where we have to come back and months go by and people wander away. That’s one thing.
We are expecting and the Minister of ECE will be standing up in the House here in the very near future about good news issues where it pertains to the Nominee Program, the expedited process, the number of spaces we are going to have as a government, the ability to really ramp up our efforts in that area that will see a significant influx to the Northwest Territories. We are working with ITI on the work that they do, as well, with Make Your Mark and the other programs they have.
As a government we’ve made a decision that when we go south, now that we’ve sorted out education access to the names of the students in the various communities, want to start budgeting in our travel time to sit down with students in the communities we go to, Toronto, Edmonton, Calgary, you name it, to take them out and meet with them and do the recruiting that we talk about to ensure we don’t get superseded or bypassed by industry or other recruiters because we don’t make that effort. In fact, when we were down in Ottawa just recently, I and Minister Lafferty and Mr. Beaulieu were at breakfast with about eight or 10 of the students from Ottawa. We talked with them and the good news was that every one of the folks that came to breakfast indicated that they are definitely coming back to the North, but they really appreciated that effort, and that effort will pay dividends.
So, those that scoff or those that say you’ve had a year, you should have 500 people here already, sometimes ready, fire, aim is not the process to take. We want to get our aim clear first, before we pull the trigger, and that’s what we’ve done in this first year. Thank you.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Bouchard.
Thank you, Mr. Speaker. That was a great Minister’s statement. The Minister didn’t talk about the mine workers who fly in/fly out.
How are we working on them to make sure they come back and work in the Northwest Territories and quit flying over our heads? How do we get them to stay in the Northwest Territories?
That is an issue that bedevils every jurisdiction that has a lot of resource development, like Alberta. Probably many of us have been on planes, I know I have, when there’s a shift change coming out of Fort McMurray. So it is a challenge. What is happening with Dominion Diamonds, for example, they’ve taken that issue head on and they are doing away with their incentives and paying of travel back and forth to force the issue. It’s that kind of courageous corporate action that we’re hoping will bear fruit and add to our 2,000 in five year success. Thank you.
Thank you, Mr. Miltenberger. The honourable Member for Inuvik Boot Lake, Mr. Moses.
