Debates of June 2, 2016 (day 13)
Question 149-18(2): Fuel Delivery by Northern Transportation Company Limited
Thank you, Mr. Speaker. Mr. Speaker, when I spoke about NTCL and the community fuel delivery, my question is for the Minister of Public Works and Services. Mr. Speaker, my first question is: what is the GNWT doing to ensure that community fuel deliveries will be completed given the recent announcement that NTCL is pursuing creditor protection? Thank you, Mr. Speaker.
Masi. Minister of Public Works and Services.
Thank you, Mr. Speaker. The Department of Public Works and Services has had a long-standing working relationship with NTCL and we recognize that they're going through some difficulties, but we have re-established a different contract with them to make sure that they're going to transport fuel into the communities during the summer of 2016. Based on the renewed contract and the decision within the legal case that they just recently had, we're not anticipating any interruption in fuel provision for this year. Thank you, Mr. Speaker.
I thank the Minister for the response. My question is, Mr. Speaker, what impact will this have on the communities?
NTCL has advised Public Works and Services that this summer they intend to sell to all the communities that they typically served in prior years. That includes Sachs Harbour, Paulatuk, Ulukhaktok, Lutselk'e, Tulita, Fort Good Hope, Norman Wells, Tuktoyaktuk, Inuvik, and Aklavik. The fuel services division of Public Works and Services also ensure that there are fuel reserves in each of the communities to offset any unforeseen interruptions. This is a long-standing practice and we continue with that.
Mr. Speaker, my other question is: with the issues with NTCL will this affect the cost of fuel in Nunakput?
Thank you, Mr. Speaker. It's really kind of hard at this point to kind of determine how that will affect it. There's a few things that are impacting the cost of fuel at this stage. I mean, diesel is a little bit lower because of the fluctuating global markets, but there's also an interruption in the supply because of the Fort McMurray fires. It's a little bit too soon to determine what the fuel price changes we'll need to come into to what will affect the cost. If there is a cost differential we know that none of those changes will take place until after the summer season is finished. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Nunakput.
Thank you, Mr. Speaker. Thank you, Minister, for that response. Mr. Speaker, my final questions are: what are the next steps for the GNWT? Quyanainni, Mr. Speaker.
On May 25th of this year, the department has issued a new tender for a multi-year fuel supply and delivery contracts to serve the eight marine accessible communities as I stated before. The contract, once approved, will begin in 2017 and it will be a multi-year contract similar to NTCL. Also I want to raise that even though Public Works and Services doesn't transport too much of the dry goods, such as groceries, into the communities we still are concerned about that, so we will be ensuring that the supplier will be taking dry cargo as well to make sure. On a side note, we've also recently entered into a contract with E. Gruben's Transport Limited to store diesel fuel in their bulk tanks in Tuktoyaktuk and that will support the re-supply activities and establish a strategic fuel reserve in that region.
Masi. Oral questions. Member for Yellowknife Centre.