Debates of February 6, 2015 (day 54)

Date
February
6
2015
Session
17th Assembly, 5th Session
Day
54
Speaker
Members Present
Hon. Glen Abernethy, Hon. Tom Beaulieu, Ms. Bisaro, Mr. Blake, Mr. Bouchard, Mr. Bromley, Mr. Dolynny, Mrs. Groenewegen, Mr. Hawkins, Hon. Jackie Jacobson, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Moses, Mr. Nadli, Hon. David Ramsay, Mr. Yakeleya
Statements

Thank you, Mr. Speaker. As a man with a passion for pharmaceuticals, I am happy the Member has raised this question here today. The department is not at this time pursuing a catastrophic drug program here in the Northwest Territories. Rather, we’re working on the development of a pharmaceutical strategy which is building on the work that has been done over the past few years, including the report the Member mentioned that was done by Alberta Blue Cross – Pharmaceutical Strategy Options for the Government of the Northwest Territories – as well as ongoing work that is being done by the Program Review Office in the Department of Finance.

The pharmaceutical strategy is going to adhere to a number of principles moving forward and those principles are access, safety, effectiveness and appropriateness for use, as well as system sustainability.

Among other things, part of this pharmaceutical strategy is actually going to include a program to cover catastrophic coverage or provide catastrophic drug coverage, a program to cover expensive drugs for rare diseases, exactly what the Member is talking about, as well as moving to an NWT-specific formulary. So we’re not moving forward with a specific catastrophic drug program. We’re moving forward with a pharmaceutical strategy that will include the types of things the Member is talking about today. Thank you, Mr. Speaker.

I do appreciate the Minister reminding us about this pharmaceutical strategy that had not ever come to light here in the Assembly. It is not the panacea for all the solutions to the questions today.

So with that, in 2010 the honourable Minister Abernethy, in his former capacity as a Regular Member, recommended that the GNWT create a benefits plan for low-income families that do not have prescription drug coverage. The Minister responsible has been acting in this capacity for the past 585 days.

Can he inform the House if he has made good on his very own recommendation? Thank you.

Recognizing that we do have an Extended Health Program, we are moving forward with the pharmaceutical strategy, which is going to actually cover the exact types of issues that the Member is talking about. We will continue to move forward and work with other provinces and territories who are trying to put forward programs to address the high cost of pharmaceuticals as well. Thank you, Mr. Speaker.

I’m trying to create a pattern of a department dragging its heels. In February 2013 the deputy minister of Health and Social Services, Ms. Debbie DeLancey, stated in this Legislative Assembly, “We need to look at our catastrophic drug coverage, expense of drugs and possible review of our formulary.”

Can the Minister indicate why his department had not followed through with this promise two years ago? Thank you.

It’s not a matter of dragging our heels; we are in fact working on this particular issue. However, lack of in-house pharmaceutical expertise does make the project of this nature quite challenging.

The department has actually hired an expert consultant on pharmaceuticals to assist in the guiding of the understanding of this complex issue. As a pharmacist, I know the Member does understand how complex this can be. We have made recent amendments to the Pharmacy Act to enable a prescription drug monitoring program to be implemented here in the Northwest Territories. The Program Review Office is completing a review of pharmaceutical management, purchasing, coverage and regulation. The final report is expected this winter. We’re also doing a review of the current use of group purchasing organizations by authorities to identify cost-saving opportunities by improving formulary management, drug purchasing as well as looking at moving away from the NIHB formulary to an NWT formulary. We certainly look forward to input from committee as we move forward.

So, it is moving slowly but it is in fact moving forward and we will get this done. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Abernethy. Final, short supplementary, Mr. Dolynny.

Thank you, Mr. Speaker. Things are moving slowly. Issues and concerns surrounding the efficiency of our current Extended Health Benefits Program are well-enshrined in this House.

As I indicated earlier, the Minister has been acting in office for 585 days, has had ample time to review this file and has made unfulfilled promises to committee and to its residents.

Can the Minister indicate how many more days he needs to implement a proper catastrophic drug plan for all Northerners? Thank you.

If committee would like, I’d be happy to come and have a briefing with committee to show them where we are to date and help us get some advice and guidance as we move forward. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Abernethy. Member for Hay River North, Mr. Bouchard.

QUESTION 568-17(5): IMPACTS OF INCREASED MINIMUM WAGE

Thank you, Mr. Speaker. I have questions to the Minister of Education, Culture and Employment about his statement today on increasing the minimum wage in the Northwest Territories.

Can the Minister indicate to me, did the department look at the economic impact of increasing this minimum wage?

Speaker: MR. SPEAKER

Thank you, Mr. Bouchard. Minister of Education, Mr. Lafferty.

Mahsi, Mr. Speaker. As I stated, we did establish a committee that did their research across the Northwest Territories and outside the Northwest Territories with our provincial counterparts. So we did look into those matters as well. Mahsi, Mr. Speaker.

I sent that information out when the department sent out the minimum wage, and I got a pretty good response that most people had concerns about it affecting the minimum wage people, the students and those people that are around the minimum wage.

Does this entice businesses to cut back on employment by increasing this minimum wage? Has that been looked at?

Those are just some of the areas that we did seriously look at, as well, whether it be small business or big business. But at the same time, I did make a statement that most of the organizations pay well beyond $10 an hour and there’s just a small number that’s still paying $10 an hour. So those are areas that we explored. We did our research. We have worked with businesses as well. We had the Chamber of Commerce, both NWT and Yellowknife, so that covers the broad sector of organizations. We want to make sure we cover all areas, which we have done. Mahsi.

That is exactly my point. I think most people think it’s a good thing to get an increase in wages, obviously, but the minimum wage earners that are there are the students out there, the students that are coming back, the students that are working after school. If we have increased that minimum wage by 25 percent, I am thinking that some of those employers will consider cutting back on those types of positions, so have we looked at that impact?

Yes, we have looked at those potential impacts, and the research is telling us that there is minimal impact in those areas.

Again, most of the businesses are paying well beyond $10 an hour. When we did our research, $12 to $15 per hour is the starting point for these businesses. We have talked to a lot of businesses and they have already told us, a lot of them, that they are way beyond $10 per hour. Mahsi.

Speaker: MR. SPEAKER

Thank you, Mr. Lafferty. Final, short supplementary, Mr. Bouchard.

Thank you, Mr. Speaker. Does this increase in the minimum wage include, have we considered the impact on the subsidy programs that we do for students in the summertime? Thank you, Mr. Speaker.

Mr. Speaker, these are just some of the areas that we have initiated as a department. We have considered those areas for our students as well. As Minister Miltenberger has indicated, we have met with various students in Ottawa. That’s a starting point for us. We want to track those students to come back to the North and create employment for them here in the Northwest Territories. This is a really good starting point as an increase in minimum wage from $10 to $12.50 an hour on June 1st. That is a really good news item. We have shared that with the students, as well, and they are quite happy with that as well. Mahsi.

Speaker: MR. SPEAKER

Thank you, Mr. Lafferty. Member for Deh Cho, Mr. Nadli.

QUESTION 569-17(5): IMPACTS OF CLIMATE CHANGE

Mahsi, Mr. Speaker. My questions are for the Minister of Environment and Natural Resources. It’s pretty clear that over the course of the past summer the NWT experienced the worst forest fire season in history. Water levels tend to fluctuate in terms of the mighty Mackenzie and other tributaries that flow into the NWT, plus we have seen anomalies in terms of the migration patterns of the wildlife.

My question to the Minister, as I said earlier, is that science is irrefutable and climate changes are affecting the Arctic regions in dramatic ways. Will the Minister elaborate on this government’s plans for reversing climate change? Mahsi.

Speaker: MR. SPEAKER

Thank you, Mr. Nadli. Minister Miltenberger.

Thank you, Mr. Speaker. There are two things, two main approaches we need to take as we deal with the impacts of climate change.

First, we are going to have to adapt to the changing world, and the changes that are coming have been coming for decades and the changes that were needed to be put into effect are going to take decades to be impacted. In the meantime, we have been adapting to the permafrost issues that the Member has mentioned. We are adapting and paying for issues like low water, but at the same time we are investing millions, tens upon millions of dollars on alternate energy, changing our consumption patterns, looking at leading the country on biomass, investing in solar, investing in wind. The borrowing limit that we are talking about with the federal government is focused on two main areas. One is roads, the other is looking at the energy issues to bring down the cost of living and reduce our dependence on diesel. Those two areas have been centrepieces to just about all the work we’ve done. Adaptation has affected our roads; we had to replace all the piles in various houses, those types of things. We don’t argue with the science. We know it’s there, we live it every day, and every budget we’ve had in this House reflects that. Thank you.

I think one prominent point that I fail to hear from the Minister is the measurable gauge that every country in the world has been using and that’s the emissions of greenhouse gases and I didn’t hear that from the Minister.

I would like to thank the Minister for highlighting the major initiatives that this government has taken. I think we all, in the NWT, really enjoy the beauty of the NWT. We have very nice cultural areas, but at the same time very prominent are some of the special areas that we value. There are calving grounds and, more recently, the encroachment of invasive species that people bring up from other parts of the country. Minerals, oil and gas development threaten a number of sensitive ecological areas.

Will the Minister articulate the government’s position on protecting delicate ecosystems, such as the Peel Watershed at the Yukon-NWT border? Mahsi.

We have a Greenhouse Gas Strategy, as well, to address the Member’s initial comment on his second question. It is up for renewal this year. We are going to hit the targets we have in there. We are looking at modernizing and updating it to reflect the current realities.

When it comes to development, we have a very fundamental approach of sustainability and balance that’s required with protection of the environment and resource development. We have quite a rigorous environmental assessment and review process for all project applications where ENR, ITI and Lands work together collaboratively to administer the new responsibilities post-devolution that are going to see us make sure we address all the requirements and all our obligations. ENR, as well, is moving forward with the protected areas that were there pre-devolution and we are looking at concluding some of those and working with communities and regions on areas of specific concern and sensitivity.

In regards to the Peel Watershed, we are in the process of renewing and revitalizing our transboundary water agreement with the Yukon government. Thank you.

I would like to thank the Minister for his reply. Climate change is a big concept. At the community level, people are, in some respects, anxious in terms of its implications. At the same time, they want to see some mitigated measures that they can see at a practical level.

This government has not shown a clear commitment to sustainable, renewable energy sources in our small communities. With electricity prohibitively expensive, economic development becomes less viable.

What is the government doing to ensure that renewable and affordable fuel sources are available in our small communities? Mahsi.

I would argue that we have shown an enormous interest and support for alternative energy in the communities. In the Member’s riding, for example, we have been working very, very closely with the communities. In Fort Providence, for example, and Fort Resolution to formalize forest management agreements that is going to allow the business opportunity to put in a $20 million pellet plant, creating not only environmental benefits but a huge economic opportunity. We lead the country in biomass applications here in the Northwest Territories. We have put in a significant array in Fort Simpson. We are going to look at combining solar with diesel along with batteries in Colville Lake. The government facilities that Public Works is administering across the North in all the communities have biomass. We have rebate programs, incentive programs and we see industry, as well, with Diavik putting a significant array of wind which is going to cut their costs.

I would suggest to the Member that we should be recognized collectively for the work we have done in that area and we are paying very, very close attention and definitely putting our money where our good intentions are. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Nadli.

Thank you, Mr. Speaker. I would like to thank the Minister for highlighting a lot of the initiatives that the 17th Assembly has accomplished. I think we could do more and it’s good that there has been a strong working relationship, especially at the community level.

I wanted to ask, in terms of this year’s budget, the ‘15-16 budget and going forward, what are some of the prominent and significant, perhaps, commitments that the Minister’s department will be focusing on? He has mentioned biomass initiatives, he has mentioned forest management agreements that are still in the development stages and looking forward to addressing the overall concerns in terms of trying to mitigate climate change and how those policies and initiatives could take on a prominent and significant form. Mahsi.

The budget lays out our ongoing commitment to alternative energy, to the rebate incentive programs, to working with communities, but I think the biggest commitment is there in the charrette, and the Premier referenced it in one of his earlier responses, that as we deal with our borrowing limit and we get the borrowing limit raised, one of the key areas we’re looking at, and the budget address says this, as well, that we know that energy issues, especially generation issues in Yellowknife and all the thermal communities are critical issues to bring down the cost of living, reduce our reliance on fossil fuels and be more environmentally friendly. We’re intending, once that borrowing limit is resolved in a favourable way, to put the very, very many tens upon tens of millions of dollars that are needed to start that process in a very serious way. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. The Member for Yellowknife Centre, Mr. Hawkins.

QUESTION 570-17(5): POWER RATES AND DISTRIBUTION PROCESS

Thank you, Mr. Speaker. We all know that the trappings of progress may be marching forward in a way that not only are helping us but on some days they put us in peril. You’ve often heard the peril argument from Mr. Bromley, but that’s not what I’m here to describe.

The benefits of progress sometimes provide us the opportunities such as power and being able to turn your lights on and the great opportunities that they create.

My question for the Minister of the NWT Power Corporation is: Can he explain in simple terms how power can be supplied to a particular community in single digits, such as the Hay River region to the Pine Point area, picked up by the franchise holder and sold to its customers at over 30 cents a kilowatt? I’m trying to understand how the distribution works, the fairness of how it works and certainly the evaluation the NWT must be keeping a keen eye to this particular problem. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Hawkins. The Minister responsible for the Northwest Territories Power Corporation, Mr. Miltenberger.

Thank you, Mr. Speaker. I would like to observe first, though the budget address is replete with references to the cost of living, an issue that the Member raised earlier in the House and about the McLeod government not paying close enough attention. I would suggest when you read the full budget address you would note that it’s replete and I’m somewhat offended at the fact that the Member didn’t notice that when he perused it in great detail because they are standout in significant numbers.

As it relates to the issue that the Member raised, I think the fundamental piece that we’re looking at as a territory that ties into the Member’s statement is the cost of living and how do we bring down the cost of living, we bring it down by reducing the cost of energy, and when we do he has raised some good points about how we do the generation, how are we structured to deliver power and distribute power and how are the costs distributed. Those are all good, legitimate questions that we intend to address as we move forward with the whole initiative of bringing down the cost of living. Thank you.

I want to thank the fine, old Minister because he was calling me young Member yesterday. So the very old and elderly Minister of NWT Power Corporation of pointing out the budget dialogue that he read. By the way, I followed it keenly word for word, I enjoyed reading and I will enjoy reading it for years to come if I ever get sleepless and have to find ways to cure that.

---Laughter

On a serious note, though, it’s my understanding that some hydro communities are subsidized. Rather than pointing out a particular hydro community, one over another, maybe the Minister can put officially on the record which communities are subsidized and to what cost they’re being subsidized. Furthermore to the point, what are we doing about that subsidized problem to hydro communities that were supposed to be baseline costs for power? Thank you.

The intent of the Territorial Power Support Program was to make sure that thermal communities are subsidized to the Yellowknife rate, and as the Members have heard, there’s one hydro community whose rates are higher than the Yellowknife rate and that’s Hay River. Thank you.

One of the particular problems I’ve noted is that power, in my view and the view of many others, by the way, including the mayor of Hay River, Andrew Cassidy, is power, in our opinion, should be delivered a lot cheaper than it is.

Competition could be argued as a good thing for everything, but maybe not, as well, but the argument I usually see is competition is good. So the question for the Minister of the NWT Power Corporation is: In their capacity as an organization, why have they not bid to provide the distribution services in these types of communities that do have franchise agreements in communities like Yellowknife and Hay River, which would create a bit of competition and hopefully those who’ve been receiving these sole-sourced franchise agreements would probably have to really sharpen their pencil? Thank you.

The ability to put out a franchise call is the community’s responsibility and right. They’ve done that. We can’t speak to the past. There is a current one coming out. We’ve been asked to consider bidding on it and we are considering that and we’re looking at it, as we discussed in this House earlier this week.

I would just point out that when it comes to the NWT Power Corporation, and I believe all of us in this room, we would see that provision of electricity is an essential service and the same as we deliver and we look after all the fuel in the small, off-road communities to ensure that there are those essential services there, we provide that service at cost. Our interest is keeping the cost of energy down, keeping the cost of living down and the Power Corporation over the years has evolved out of Alberta and out of Edmonton coming north and it’s a vehicle for our Energy Strategy and our fiscal policy and we are intent on, across the land as we’ve said as a priority, looking at the cost of living and energy is one of those key factors. We’d have to look at all facets of how that issue is generated and delivered. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Hawkins.

Thank you, Mr. Speaker. I’m really glad that the Minister described it as an essential service because that’s very important. We all know that the government, or I should say the Power Corporation through the government is working to create generation of power as cheaply and efficiently as possible. We know without more customers it’s difficult to continue getting it any cheaper without, of course, technology as well.

We know customers are encouraged through energy efficiency programs and encouraged to reduce their consumption, and that’s a very important element, but the distribution side seems to continue to be the solution, or maybe the obvious problem that’s evading us. The Minister did say the other day about how they are looking at this. Perhaps the Minister could explain a little further into the detail as how they’re evaluating the distribution process in these communities, if not in all communities, how we can lower the cost of that delivery of power to our citizens, which is absolutely an essential service.

We’re looking at a number of things. In fact, we’re looking at the whole range of challenges as we look at how we’re structured historically and as we look to the future, distribution is definitely one. The question was posed at the Energy Charrette, it was posed by myself to the attendees at the charrette with the question of how many distributors of power do we need in the Northwest Territories to make this as efficient as possible. That is a question that we have to look at. We know we have to look at generation in thermal communities, bring down the costs. Total reliance on diesel is not acceptable and we’ve made a commitment with the government that with the borrowing limit one of the big areas we would make critical economical investment would be in the thermal communities and Yellowknife to look at using alternative energy, looking at generation where there’s a significant need in Yellowknife and the small communities.

I might as well put on the record again here, I put it on the record in the budget yesterday, that does include looking at the efficacy and value of liquid natural gas as well as other alternative energies like biomass and solar, batteries, wind. Anything that’s better and cheaper than diesel is being considered. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. The honourable Member for Mackenzie Delta, Mr. Blake.

QUESTION 571-17(5): DEMPSTER HIGHWAY REPAIRS

Thank you, Mr. Speaker. I would like to ask the Minister of Transportation a few questions about the flooding of Georgetown, as it’s known, across from Tsiigehtchic at kilometre 140. Over the last 15 to 20 years, we’ve had flooding there almost every year.

Will the Minister ensure that the culvert is replaced over this summer and have a heat trace line in place? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. Blake. The honourable Minister of Transportation, Mr. Beaulieu.

Thank you, Mr. Speaker. The Member is correct that both ourselves and the Housing Corporation have spent substantial sums of money to resituate the house, rent equipment to remove ice from that area. Recently, the Member has indicated to me that there may be a solution, so we’ve just begun discussions with the department from my office to talk about that solution of maybe placing the culvert at a different angle and maybe using some heat trace so it doesn’t freeze in there. We’re just beginning to look at that now, Mr. Speaker. Thank you.

We actually have five places along the Dempster that have overflow over the winter months. As I travel through the Yukon, close to Dawson City I saw where they have heat trace lines. Where we have flooding, all they have to do is put a generator there and plug it in and that thaws out the culvert.

Will the Minister ensure that this is in place as we fix the culvert? Thank you, Mr. Speaker.